Bread Financial Holdings, Inc. · NYSE:BFH
Bread Financial — Alliance Data Systems — KBW Virtual Fintech Payments Conference 2021
14 slides from Bread Financial's conference presentation, Feb 23, 2021
Slide 1: Alliance Data KBW Virtual Fintech Payments Conference
Alliance DataKBW Virtual Fintech Payments ConferenceFebruary 23, 2021Ralph Andretta – President & CEOTammy McConnaughey – EVP, Card Ops & Credit RiskTim King – EVP & CFO Exhibit 99.2
Slide 2: Forward-Looking Statements
Forward-Looking StatementsThis presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements give our expectations or forecasts of future events and can generally be
Slide 3: Agenda
Agenda Presentation Ralph Andretta – President & CEO Opening Remarks A Year in Review (Ralph’s one year anniversary with ADS) Business Updates Areas of FocusTammy McConnaughey – EVP, Card Services Operations & Credit Risk Macroeconomic Impacts on Credit Lending Philosophy & Underwriting Portfolio Mi
Slide 4: Alliance Data Overview
Leader in payment and lending solutions Branded private label and cobrand credit card programs with over 40 million active cardmembersDiversified across growing verticals, including beauty, pet, and homeBrand-centric programs supported by data and analytics, digital capabilities, and our balanced ri
Slide 5: A Year in Review
Expand digital offeringsTechnology flexibility & upgradesEnhance data & analyticsPrudent balance sheet management Associate safety & healthRecession readiness planRight-size expense baseDisciplined risk management Review partner economics 5 A Year in ReviewDeliberate and thoughtful progress balancin
Slide 6: LoyaltyOne Update
LoyaltyOne UpdateExpectation for revenue growth in 2021 Continued gradual recovery in Reward miles issued and redeemed in 2H20AIR MILES continues to pivot the rewards portfolio to emphasize more non-travel options, driving higher merchandise redemptionsBuilding potential opportunity in 2H21 due to p
Slide 7: Card Services Update
Card Services Update Gradual recovery in credit sales continues from pandemic lows 7 Active program sales Total sales Year-over-year credit sales improving at a modest pace for total & active program sales Credit sales declined 14% year-over-year through February 15 with active* program sales down 4
Slide 8: Bread Update
Bread UpdateFull-spectrum product offering with improved customer experience 8 Installment loan and BNPL product can be white-labeled or branded Bread in the Direct Acquisition and Distribution model Direct Acquisition(e.g. Bread / ADS) Distribution(in discussions) Tech Platform(e.g. RBC) Merchant R
Slide 9: Areas of Focus
9 Areas of FocusContinued progress on the execution of our strategic initiatives TechnologyInnovation Product Diversification and Development DigitalAdvancement Data Science and Analytics Proactive risk management Prudent balance sheet management Disciplined expense management Key Foundational Eleme
Slide 10: Tammy McConnaughey, EVP, Card Services Operations & Credit Risk
Tammy McConnaughey EVP, Card Services Operations & Credit Risk
Slide 11: Macroeconomic Impacts on Credit
11 Macroeconomic Impacts on CreditNear term payment rates remain strong; uncertainty remains in 2H21 Position for Growth Stabilization Unemployment rate remains elevated Low withholding rate on UE may impact tax refunds +Mortgage forbearance expires January stimulus + new stimulus package incl. mort
Slide 12: Lending Philosophy
12 Lending PhilosophyProfitable, fair, and responsible full-spectrum lending Alliance Data enables responsible and fair lending to meet consumers’ desires. We facilitate purchases through frictionless payment options designed to reward consumers and inform our partners to their customer’s needs whil
Slide 13: Portfolio Mix
Portfolio MixBalanced product mix for strong returns and well managed losses and growth 13 Applications – “Buy Box” Softgoods PLCC Big Ticket PLCC Co-Branded Cards Credit Risk ~5% ~15% ~80% 2009 2020 Product mix is a key driver of profitability and credit risk Risk Adjusted Return 30% 40% 30%
Slide 14: Questions & Answers
Questions & Answers
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