Aimia Inc. · TSX:AIM
Aimia — Q3 2013 Earnings Presentation
29 slides from Aimia's earnings presentation, Nov 13, 2013
Slide 1: Aimia - Inspiring Loyalty
/\IMI/A\ INSPIRING LOYALTY
Slide 2: Q3 2013 Highlights
Q3 2013 HIGHLIGHTS November 13, 2013
Slide 3: 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 4: David Adams, Executive Vice-President and CFO
DAVID ADAMS EXECUTIVE VICE-PRESIDENT AND CFO
Slide 5: Q3 2013 Gross Billings Growth
Q3 2013 GROSS BILLINGS GROWTH ($ MILLIONS) (1) $10.1 $8.2 $576.7 $20.2 $537.0 EMEA Canada US & APAC • Consolidated: +7.4% growth; +6.3% in c.c.(2) US & APAC: +29.5% in c.c.(2) Canada: +3.2% EMEA: +1.7% in c.c.(2) 2012 Reported 2013 Reported (1) Variance related to intercompany eliminations of $1.2 m
Slide 6: Q3 2013 AEBITDA Growth
Q3 2013 AEBITDA GROWTH ($ MILLIONS) ($1.7) $3.5 ($6.3) $3.0 $8.3 ($2.7) EMEA US & APAC PLM $97.9 ($12.2)(1) $93.7 Corporate Stock Based $85.7 Canada Compensation Breakage Adjustment +4.5% +4.5% 2012 2013 2013 Reported Excluding Reported Breakage Adjustment (1) Breakage Adjustment relates to the decr
Slide 7: YTD 2013 Consolidated Financial Highlights
YTD 2013 CONSOLIDATED FINANCIAL HIGHLIGHTS Nine Months Ended % Change (1) September 30, Excluding Noted Items(2) Breakage VAT Reported Reported Year Constant ($ millions) 2013 Adjustment Impact 2013 2012 Over Year Currency (6) Gross Billings (3) 1,708.4 - - 1,708.4 1,628.0 4.9% 4.6% Gross Billings f
Slide 8: YTD 2013 Financial Highlights - Canada
YTD 2013 FINANCIAL HIGHLIGHTS - CANADA Nine Months Ended % Change (1) September 30, Excluding Breakage Adj. Breakage Reported Reported Year Over ($ millions) 2013 Adjustment 2013 2012 Year Gross Billings down Gross Billings (2) Aeroplan 832.3 - 832.3 843.7 (1.4%) 0.3% with continued Air Proprietary
Slide 9: Aeroplan Key Metrics
AEROPLAN KEY METRICS Average Selling Price (cents/mile) Cost Per Mile Redeemed (cents/mile) 1.27 0.90 1.26 0.88 1.25 0.88 1.25 0.86 1.24 1.24 0.84 1.23 0.82 0.81 1.22 0.80 2011/12 1.21 2011/12 0.78 2012/13 2012/13 1.2 0.76 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 9
Slide 10: YTD 2013 Financial Highlights - US & APAC
YTD 2013 FINANCIAL HIGHLIGHTS – US & APAC Nine Months Ended % Change (1) September 30, Reported Reported Year Over Constant ($ millions) 2013 2012 Year Currency (3) Gross Billings growth reflects Gross Billings 251.7 212.9 18.2% 17.3% inclusion of EIM Total revenue 253.5 213.8 18.6% 17.7% billings a
Slide 11: YTD 2013 Financial Highlights - EMEA
YTD 2013 FINANCIAL HIGHLIGHTS - EMEA Nine Months Ended % Change (1) September 30, Excluding VAT VAT Reported Reported Year Constant ($ millions) 2013 Adjustment 2013 2012 Over Year Currency (3) Gross Billings 504.1 - 504.1 462.3 9.0% 8.2% Operating leverage Gross Billings from on higher volumes 450.
Slide 12: Bridging Q3 AEBITDA to Free Cash Flow
BRIDGING Q3 AEBITDA TO FREE CASH FLOW ($ MILLIONS) Q3 2013 $47.1 ($41.3) ($15.3) $5.9 $85.7 ($1.3) ($12.2) $68.6 Non cash items Adjusted Stock Based Change in FRC Working Capital Net Cash Cash Taxes Capital Free Cash Flow EBITDA Compensation ex Items and Other Interest Expenditures ex Dividends Q3 2
Slide 13: Free Cash Flow
FREE CASH FLOW Free Cash Flow (1) ($ millions) $222.4 $185.2 $124.8 $129.9 $147.7 $95.8 $99.6 $68.6 $132.8 $100.6 $36.4 $53.1 Q3 2011 Q3 2012 Q3 2013 YTD 2011 YTD 2012 YTD 2013 Free Cash Flow Dividends Free Cash Flow Dividends Free Cash Flow/ Common Share (2) $1.24 $0.98 $0.74 $0.81 $0.69 $0.38 Q3 2
Slide 14: 2013 Outlook
2013 OUTLOOK* Original Guidance (as provided on February 2013 Target Range (as updated on November 13, Key Financial Metric 2012 Actual 27, 2013) 2013)1 Consolidated Outlook Gross Billings $2,243.0 million Growth of between 3% and 5% No change To approximate $350 million (excluding the impact of Adj
Slide 15: Summary of Financial Implications Related to Program Changes and Card Agreements
SUMMARY OF FINANCIAL IMPLICATIONS RELATED TO PROGRAM CHANGES AND CARD AGREEMENTS* 2013 2014 and Beyond Gross Billings +3 to 5%, with Canada at Increased selling price per mile under new financial card agreements lower end of +1 to 3% Benefit of upfront program contribution payable to Aimia by TD Adj
Slide 16: Rupert Duchesne, Group Chief Executive
RUPERT DUCHESNE GROUP CHIEF EXECUTIVE
Slide 17: Thank You
AIMIA INSPIRING LOYALTY
Slide 18: Appendix
APPENDIX
Slide 19: Q3 2013 Consolidated Financial Highlights
Q3 2013 CONSOLIDATED FINANCIAL HIGHLIGHTS Three Months Ended % Change (1) September 30, Reported Reported Year Constant ($ millions) 2013 2012 Over Year Currency (5) Gross Billings 576.7 537.0 7.4% 6.3% Gross Billings from sale of Loyalty Units 419.1 398.9 5.1% 3.9% Total Revenue 499.7 498.8 0.2% (0
Slide 20: Balance Sheet
BALANCE SHEET AVAILABLE CASH DEBT Annual September Interest September $ millions 30, 2013 $ millions Rate Maturing 30, 2013 Cash and cash equivalents 532.1 Revolving Facility(1) Apr. 23, 2016 - Restricted cash 35.0 Senior Secured Notes 2 7.9% Sept. 2, 2014 150.0 Short-term investments 53.1 Senior Se
Slide 21: YTD 2013 Gross Billings Growth
YTD 2013 GROSS BILLINGS GROWTH ($ MILLIONS) $38.8 ($3.2)(1) $1,708.4(2) $41.8 $1,628.0 US & APAC Canada EMEA • Consolidated: +4.9% growth; +4.6% in c.c.(3) EMEA: +8.2% in c.c.(3) US & APAC: +17.3% in c.c.(3) Canada: (0.3%)(1) 2012 Reported 2013 Reported (1) Canada region variance includes $5.5 milli
Slide 22: YTD 2013 AEBITDA Growth
YTD 2013 AEBITDA GROWTH ($ MILLIONS) $24.0 ($37.0) $23.7 ($12.9) $284.5 (1) ($5.6) (3) ($17.8) $269.2 VAT US & APAC $10.4 Breakage Canada EMEA Corporate PLM Noted Items (2) 2012 Reported 2013 Reported (1) Variance on a consistent breakage rate basis. Canada region variance includes $5.5 million in t
Slide 23: Q3 2013 Financial Highlights - Canada
Q3 2013 FINANCIAL HIGHLIGHTS - CANADA Three Months Ended % Change (1) September 30, Reported Reported Year Over ($ millions) 2013 2012 Year Gross Billings Strong growth in Aeroplan 281.1 275.0 2.2% Gross Billings in Proprietary Loyalty 57.5 53.3 7.9% Intercompany eliminations (17.5) (17.2) na the Pr
Slide 24: Q3 2013 Financial Highlights - EMEA
Q3 2013 FINANCIAL HIGHLIGHTS - EMEA Three Months Ended % Change (1) September 30, Reported Reported Year Constant Gross Billings growth ($ millions) 2013 2012 Over Year Currency (3) during the quarter Gross Billings 169.0 160.8 5.1% 1.7% driven by Nectar UK Gross Billings from and Air Miles Middle 1
Slide 25: Q3 2013 Financial Highlights - US & APAC
Q3 2013 FINANCIAL HIGHLIGHTS – US & APAC Three Months Ended % Change (1) September 30, Reported Reported Year Over Constant ($ millions) 2013 2012 Year Currency (3) Gross Billings growth Gross Billings 86.6 66.4 30.4% 29.5% mainly reflects the impact Total revenue 85.0 66.1 28.7% 27.8% of EIM Gross
Slide 26: Aeroplan Revenue Breakdown
AEROPLAN REVENUE BREAKDOWN Three Months Ended September 30, (in $ millions) 2013 2012 Change % Change Miles revenue 210.1 213.4 (3.3) (1.5%) Breakage revenue 25.7 46.3 (20.6) (44.5%) Other 11.8 12.9 (1.1) (8.5%) Total Revenue 247.6 272.6 (25.0) (9.2%) 26
Slide 27: Aeroplan Key Metrics
AEROPLAN KEY METRICS Aeroplan Miles Issued & Redeemed Average Selling Price & Cost (billions) (cents / mile) 21.2 21.5 1.24 1.25 17.4 17.0 0.88 0.81 Aeroplan Miles Redeemed Aeroplan Miles Issued Average Selling Price Average Cost/ Aeroplan Mile Redeemed Q3 2012 Q3 2013 Q3 2012 Q3 2013 27
Slide 28: Gross Billings from Sale of Loyalty Units by Major Partner
GROSS BILLINGS FROM SALE OF LOYALTY UNITS BY MAJOR PARTNER Q3 2013 Gross Billings Q3 2012 Gross Billings from sale of Loyalty Units from sale of Loyalty Units 23.2% 23.2% 33.6% 35.1% $419.1M $398.9M 13.8% 15.1% 10.1% 19.3% 9.1% 17.5% Partner A Partner B Partner C Air Canada Other 28
Slide 29: Foreign Exchange Rates
FOREIGN EXCHANGE RATES Period Rates Q3 2013 Q3 2012 Change % Change Period end rate £ to $ 1.6618 1.5895 0.0723 4.5% Average quarter £ to $ 1.6097 1.5725 0.0372 2.4% Average YTD £ to $ 1.5820 1.5814 0.0006 0.0% Period end rate AED to $ 0.2803 0.2677 0.0126 4.7% Average quarter AED to $ 0.2828 0.2710