Aimia Inc. · TSX:AIM
Aimia — Merger or Acquisition (February 2018)
16 slides from Aimia's merger presentation, Feb 1, 2018
Slide 1: Aimia
/\IMIA
Slide 2: Aimia Sale of Nectar and Related Businesses
AIMIA SALE OF NECTAR AND RELATED BUSINESSES FEBRUARY 1, 2018
Slide 3: Forward-Looking and Cautionary Statements
FORWARD-LOOKING AND CAUTIONARY STATEMENTS Forward-looking statements are included in this presentation. These forward-looking statements are identified by the use of terms and phrases such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “intend”, “may”, “plan”, “predict”, “project”, “will
Slide 4: Transaction Recap and Rationale
TRANSACTION RECAP AND RATIONALE DAVID JOHNSTON
Slide 5: Evolution of Sainsbury's within Nectar
EVOLUTION OF SAINSBURY’S WITHIN NECTAR • Sainsbury’s transformation in a highly competitive retail landscape and its existing concentration within Nectar provided more limited prospects for adding new partners of scale and adding value to Aimia Nectar’s largest issuance and redemption partner Sainsb
Slide 6: Transaction Rationale
TRANSACTION RATIONALE • A sale of Nectar and related assets to Sainsbury’s was the optimal risk-adjusted outcome and allows for a seamless transition for collectors and employees • The transaction sharpens our focus on Aeroplan, further simplifies the company’s operations and preserves a robust bala
Slide 7: Financial Summary of Transaction
FINANCIAL SUMMARY OF TRANSACTION(1) • Nectar and related business assets in the U.K. to be sold to J Sainsbury plc for a gross consideration of approximately $105 million (£60 million) • Around 300 employees to transfer with the business • Cash of approximately $183 million (£105 million) providing
Slide 8: Aligned to Our Key Areas of Focus
ALIGNED TO OUR KEY AREAS OF FOCUS • Sharper focus on the potential of Aeroplan, our most profitable business, and progressing key strategic and commercial partnerships • Ongoing business simplification and Aligned to and acceleration of cost savings, with driving more headcount expected to be down t
Slide 9: Credit Facility
CREDIT FACILITY MARK GRAFTON
Slide 10: Credit Facility Amendments
CREDIT FACILITY AMENDMENTS(1) • Aimia obtained the required consent for the release of one of its subsidiary guarantors • In connection with the consent, Aimia has agreed: – $100 million early repayment to be made at closing of Nectar transaction – Overall size of facility reduced to $208 million, w
Slide 11: Expected Cash Impact
EXPECTED CASH IMPACT (in millions of Canadian dollars) (1) Close to $400m of cash(1) ahead of reporting our As at Sept Net Debt Total impact As at Sept most cash- 30, 2017 transaction repayment (prior to Q4 30, 2017 (Actual) impact impact cash (adjusted)(1) generative quarter generation) Cash and ca
Slide 12: Preserving a Robust Financial Position
PRESERVING A ROBUST FINANCIAL POSITION Summary capitalization table (in millions of Canadian dollars) As at Sept 30, 2017 As at Sept 30, 2017 (actual) (adjusted(1) and prior to Q4 cash generation) Cash + cash equivalents $669 $395 Equity and equity-accounted $214 $214 More than investments (book val
Slide 13: Key Takeaways
KEY TAKEAWAYS DAVID JOHNSTON
Slide 14: Key Takeaways
KEY TAKEAWAYS • Continued focus on execution with ongoing simplification to prioritize our most profitable business Continued focus on execution and • Providing more certainty around shape of the more certainty for business and further reducing debt levels shareholders 14
Slide 15: Thank You
AIMIA INSPIRING LOYALTY
Slide 16: Nectar and Related Assets Sold to J Sainsbury plc
NECTAR AND RELATED ASSETS SOLD TO J SAINSBURY PLC Americas Coalitions Sold to J Sainsbury plc: • Coalitions (Aeroplan) • Canada Rewards Nectar business including employees, assets and liabilities, systems, licences and trademarks International Coalitions • Coalitions Shopper Insights & Communication