Aimia Inc. · TSX:AIM
Aimia — Investor Presentation (February 2014)
25 slides from Aimia's investor presentation, February 2014
Slide 1: Aimia Investor Meetings February 2014
AIMIA INVESTOR MEETINGS February 2014
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Forward-looking statements are included in the following 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”, “wo
Slide 3: Aimia Financial Track Record
AIMIA FINANCIAL TRACK RECORD Gross Billings 2009-2013(1) Free Cash Flow 2009-2013(1) ($M) ($M) 2,366 2,188 2,233 2,243 299.5 1,447 265.0 268.1(2) 221.2 197.6 F2009 F2010 F2011 F2012 F2013 F2009 F2010 F2011 F2012 F2013 (1) Gross Billings pre-2010 as reported under previous Canadian GAAP; 2010 and 201
Slide 4: Continued Focus on Returns to Shareholders
CONTINUED FOCUS ON RETURNS TO SHAREHOLDERS Consecutive Increases in Quarterly Dividend ($ per common share) Double-digit returns from previous Investments 0.17 0.16 0.15 0.13 Repurchased ~$350M of common shares between 2010 and 2012 pursuant to NCIB F2010 F2011 F2012 F2013 4
Slide 5: …With Substantial Room to Grow
…WITH SUBSTANTIAL ROOM TO GROW Market Size $B, 2012 900 -740 160 -60 May be subject $90-100B $13-20B $80-87B to disruptive strategies from loyalty players Global Non-loyalty Loyalty Non- Aimia’s Coalitions Proprietary marketing marketing marketing addressable addressable spend spend spend by geograp
Slide 6: The External Environment Will Drive New Opportunities and Challenges
THE EXTERNAL ENVIRONMENT WILL DRIVE NEW OPPORTUNITIES AND CHALLENGES OPPORTUNITIES BOTH CHALLENGES Technology enables loyalty Consumers more New monetisation models by beyond purchase aware of the value new entrants of personal One-to-one customer relationships information and Loyalty and mobile req
Slide 7: Focusing Our Investments in the Market Context
FOCUSING OUR INVESTMENTS IN THE MARKET CONTEXT Canada EMEA APAC US Market overview Stable market with Mature but Commercial Highly competitive and current mature programs growing market results picked market focus up strongly Investments Reinvestment in Scaling/ replicating Investments Investments b
Slide 8: Continuing to Drive an Attractive Investment Proposition
CONTINUING TO DRIVE AN ATTRACTIVE INVESTMENT PROPOSITION Strategic Aspiration Strategic Pillars Investment Proposition “Be the recognized 1 Strengthen our current position Attractive business global leader in model with more diversification of loyalty management. profitability and We believe in ma
Slide 9: Strengthening Existing Business Driving Business Mix Changes: Gross Billings
STRENGTHENING EXISTING BUSINESS DRIVING BUSINESS MIX CHANGES: GROSS BILLINGS F2013 Consolidated Gross Billings (GB) $2.366B Consolidated Gross Sale of Loyalty Units by Major • Existing business to continue to Billings Accumulation Partners grow but investments will also drive towards higher Canada (
Slide 10: Driving Diversification of Adjusted EBITDA
DRIVING DIVERSIFICATION OF ADJUSTED EBITDA F2013 Adjusted EBITDA, business mix • Aeroplan transformation to reset of Canadian margin level from 2014 • Distributions from investments to Proprietary & Analytics contribute to Adjusted EBITDA Coalitions • Changes to operating model and F2013 Adjusted EB
Slide 11: A Transformed Aeroplan Program Launched with Two Leading Canadian Issuers
A TRANSFORMED AEROPLAN PROGRAM LAUNCHED WITH TWO LEADING CANADIAN ISSUERS • The $38 billion Aeroplan financial card portfolio, which 1st represents around 12% of total purchase volume in the Canadian credit card market and a total of 1.2 million 4.7m Cardholder accounts, was confirmed as an attracti
Slide 12: Agreements Signed with TD and CIBC
AGREEMENTS SIGNED WITH TD AND CIBC • 10-year financial credit card agreements with each of TD and CIBC • A purchase agreement between CIBC, TD, and Aimia, pursuant to which TD will acquire approximately half of the Aeroplan card portfolio from CIBC, which at September 2013, represented approximately
Slide 13: What the Agreements Deliver for Shareholders
WHAT THE AGREEMENTS DELIVER FOR SHAREHOLDERS • Ground breaking transformation of the Aeroplan program, as announced in June 2013, which will drive longer-term growth and benefits to Air Canada • Momentum and marketing behind the program with two leading credit card issuers to drive market share • A
Slide 14: Q4 2013 Gross Billings Growth
Q4 2013 GROSS BILLINGS GROWTH ($ MILLIONS) $8.8 $658.1(1) $22.5 $10.8 $615.1 Canada US & APAC EMEA Consolidated: +7.0% growth; +4.3% in c.c.(2) EMEA: +5.2% in c.c.(2) Canada: +3.2% US & APAC: +5.3% in c.c.(2) 2012 Reported 2013 Reported (1) Variance related to intercompany eliminations of $0.9 milli
Slide 15: Q4 2013 AEBITDA
Q4 2013 AEBITDA ($ MILLIONS) $4.2 $1.8 $(2.5)(2) $(3.3) $118.2 $(4.5) US & $(12.9) EMEA Canada Stock APAC based Corporate $(12.1) compensation Breakage $88.9(1) Impact PLM (24.8)% 2012 Reported 2013 Adjusted (1) Adjusted EBITDA was adjusted to exclude the $150.0 million payment to CIBC and the card
Slide 16: Full Year 2013 Consolidated Financial Highlights
FULL YEAR 2013 CONSOLIDATED FINANCIAL HIGHLIGHTS* YEARS ENDED DECEMBER 31, (in millions of Canadian dollars) 2013 2012 Items included in 2013 reported Breakage VAT Impairment Reported Conveyance items Adjusted Reported Gross Billings - - - 2,366.4 - 2,366.4 2,243.0 Gross Billings from the sale of Lo
Slide 17: Full Year 2013 Financial Highlights – Canada
FULL YEAR 2013 FINANCIAL HIGHLIGHTS – CANADA* Years Ended December 31, (in millions of Canadian dollars) 2013 2012 Items included in 2013 reported Breakage Reported Conveyance Adjusted Reported Adjustment Items Gross Billings Aeroplan - 1,133.2 - 1,133.2 1,135.0 Proprietary Loyalty - 247.3 - 247.3 2
Slide 18: Aeroplan Key Metrics
AEROPLAN KEY METRICS Cost Per Mile Cost Per Mile Redeemed (cents/mile) Redeemed (cents/mile) 0.85 0.81 104.4% 25.0 110.0% Miles Redeemed (billions) 84.3% 79.1% Burn / Earn Ratio (%) 20.0 71.2% 90.0% 70.0% 15.0 50.0% Avg. Selling Price Avg. Selling Price 10.0 21.4 21.4 17.5 17.4 17.9 18.3 17.0 16.3 3
Slide 19: Full Year 2013 Financial Highlights – US & APAC
FULL YEAR 2013 FINANCIAL HIGHLIGHTS – US & APAC* YEAR ENDED DECEMBER 31, (in millions of Canadian dollars) 2013 2012 Items included in 2013 reported Impairment Reported Reported Gross Billings 362.7 315.2 Gross Billings from the sale of Loyalty Units - - Revenue from Loyalty Units - - Revenue from p
Slide 20: Full Year 2013 Financial Highlights – EMEA
FULL YEAR 2013 FINANCIAL HIGHLIGHTS – EMEA* YEAR ENDED DECEMBER 31, (in millions of Canadian dollars) 2013 2012 Items included in 2013 reported VAT Reported Reported Gross Billings - 704.1 639.9 Gross Billings from the sale of Loyalty Units - 625.6 548.6 Revenue from Loyalty Units - 625.3 528.4 Reve
Slide 21: Free Cash Flow
FREE CASH FLOW Free Cash Flow (1) $299.5 ($ millions) $268.1(3) $197.6 $120.4(3) $77.1 $12.4 Q4 2011 Q4 2012 Q4 2013 FY 2011 FY 2012 FY 2013 Free Cash Flow / Common Share (2) $1.73 $1.55(3) $1.10 $0.70(3) $0.45 $0.07 Q4 2011 Q4 2012 Q4 2013 FY 2011 FY 2012 FY 2013 (1) Free Cash Flow before common an
Slide 22: 2014 Outlook
2014 OUTLOOK* CANADA EMEA US & APAC AND CORPORATE (-) Slightly softer household spend (+) Improving UK economy with slightly (+) Improved US consumer spend environment and impacting spend per card softer grocery sector healthy economic outlook in APAC (+) Aeroplan growth driven by new card acquisiti
Slide 23: 2014 Guidance
2014 GUIDANCE* 2013 2014 Guidance 7% to 9% growth Gross Billings $2,366.4 million (constant currency)(1) Adjusted EBITDA margin of Adjusted EBITDA $350.5 million(2) approximately 12.0%(1) Free Cash Flow before dividends paid $268.1 million(3) Target range of $230 to $250 million (1)(4) Capital expen
Slide 24: Balance Sheet at December 31, 2013
BALANCE SHEET AT DECEMBER 31, 2013 AVAILABLE CASH DEBT Annual December 31, Interest December 31, $ millions 2013 $ millions Rate Maturing 2013 Cash and cash equivalents 449.1 Revolving Facility(1) Apr. 23, 2016 - Restricted cash 33.7 Senior Secured Notes 2 7.9% Sept. 2, 2014 150.0 Short-term investm
Slide 25: Aimia – Inspiring Loyalty
/A\IMIA INSPIRING LOYALTY