Bread Financial Holdings, Inc. · NYSE:BFH

Bread Financial — Alliance Data Systems — Investor Presentation (August 2013)

13 slides from Bread Financial's investor presentation, Aug 6, 2013

  1. Slide 1: Third Quarter 2013 Investor Presentation: Alliance Data Company Overview

    ©2013ADS Alliance Data Systems, Inc. Confidential and Proprietary NYSE: ADS | 3rd Quarter 2013 * Third Quarter 2013 Investor Presentation Alliance Data Company Overview NYSE: ADS Exhibit 99.1

  2. Slide 2: $400 Billion Opportunity

    ©2013ADS Alliance Data Systems, Inc. Confidential and Proprietary NYSE: ADS | 3rd Quarter 2013 * $400 Billion Opportunity Opportunity: $400 Billion in North American marketing spend expected by 2016 Over half has shifted to data-enabled, multi-channel direct marketing Alliance Data: The largest and

  3. Slide 3: Financial Snapshot

    ©2013ADS Alliance Data Systems, Inc. Confidential and Proprietary NYSE: ADS | 3rd Quarter 2013 * Financial Snapshot Revenue CAGR: 14% ($ billions ) Core Earnings per Share CAGR: 17% Segment Revenue1 2012 revenue mix ¹ Segment revenue exclude corporate and eliminations. ² Adjusted EBITDA values are n

  4. Slide 4: Business Segment Review

    ©2013ADS Alliance Data Systems, Inc. Confidential and Proprietary NYSE: ADS | 3rd Quarter 2013 * Business Segment Review

  5. Slide 5: Major Coalition Loyalty Programs

    ©2013ADS Alliance Data Systems, Inc. Confidential and Proprietary NYSE: ADS | 3rd Quarter 2013 * Major Coalition Loyalty Programs Reliability & Visibility Total Marketing Spend - Canada $23 bn +3% CAGR LoyaltyOne has two coalition loyalty programs: the AIR MILES® Reward Program in Canada and the dot

  6. Slide 6: AIR MILES Reward Program (Canada) Overview

    ©2013ADS Alliance Data Systems, Inc. Confidential and Proprietary NYSE: ADS | 3rd Quarter 2013 * AIR MILES Reward Program (Canada) Overview 10MM Collector Households Reward Suppliers Grant AIR MILES Redeem AIR MILES Purchase Rewards Supply Rewards Purchase Products & Services Reward with AIR MILES P

  7. Slide 7: Mix Shift on Marketing Spend: Away from traditional media

    ©2013ADS Alliance Data Systems, Inc. Confidential and Proprietary NYSE: ADS | 3rd Quarter 2013 * Mix Shift on Marketing Spend: Away from traditional media To ROI-based digital marketing Overall marketing spend: +3% CAGR through 2015 But digital marketing spend: +19% CAGR through 2015 Epsilon provide

  8. Slide 8: Why do Retailers prefer Alliance Data's private label card?

    ©2013ADS Alliance Data Systems, Inc. Confidential and Proprietary NYSE: ADS | 3rd Quarter 2013 * Why do Retailers prefer Alliance Data’s private label card? Transaction-level data for deeper understanding of customers Reach their customers in meaningful ways with relevant, tailored offers Replace br

  9. Slide 9: Private Label's Market Position

    ©2013ADS Alliance Data Systems, Inc. Confidential and Proprietary NYSE: ADS | 3rd Quarter 2013 * Source: The Nilson Report, 2012 (Capital One acquisition of HSBC finalized in May, 2012) Private Label’s Market Position Private Label’s Strategic Niche The only sizable non-bank, marketing-services focu

  10. Slide 10: Financial Model

    ©2013ADS Alliance Data Systems, Inc. Confidential and Proprietary NYSE: ADS | 3rd Quarter 2013 * Financial Model Focus on Organic Growth 2012 and 2013e: high-single digits → 3x real GDP Double Digit EPS Growth Minimal CAPEX and solid operating leverage Robust and Growing Free Cash Flow $720 million

  11. Slide 11: ADS 2013 Guidance

    ©2013ADS Alliance Data Systems, Inc. Confidential and Proprietary NYSE: ADS | 3rd Quarter 2013 * ADS 2013 Guidance ($MM, exception per share) 2011 2011 2012 2012 2013 2013 Avg. Share Price $90 $130 $178 (assumed) $178 (assumed) Revenue $3,173 +14% $3,641 +15% $4,275 +17% Core Earnings $441 +35% $559

  12. Slide 12: Safe Harbor Statement and Forward-Looking Statements

    ©2013ADS Alliance Data Systems, Inc. Confidential and Proprietary NYSE: ADS | 3rd Quarter 2013 * Safe Harbor Statement and Forward-Looking Statements This presentation may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E

  13. Slide 13: Financial Measures

    ©2013ADS Alliance Data Systems, Inc. Confidential and Proprietary NYSE: ADS | 3rd Quarter 2013 * Financial Measures In addition to the results presented in accordance with generally accepted accounting principles, or GAAP, the Company presents financial measures that are non-GAAP measures, such as c

Alliance Data Systems — Investor Presentation (August 2013) on 6ix