Slide 1: Alliance Data Q1 2006
Alliance Data NYSE: ADS Q1 2006
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements contained in this presentation may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements may use words such as "anticipate,"
Slide 3: Alliance Data - Financial Profile
Alliance Data - Financial Profile Growth Company Double-digit Organic Growth Baseline Targets 12% Topline 15% EBITDA 18% Cash EPS Strong Visibility & Predictability Free Cash Flow > Reported Earnings Free Cash Flow > Reported Earnings Free Cash Flow > Reported Earnings Free Cash Flow > Reported Earn
Slide 4: 2000 - 2006 Revenue, EBITDA, Cash EPS
2000 - 2006 (in $MM, except per share) '00 '01 '02 '03 '04 '05 '06E '00 '01 '02 '03 '04 '05 '06E '00 '01 '02 '03 '04 '05 '06E $670 $770 $865 $1,047 $1,257 $1552 $97 $123 $144 $211 $279 $350 $2.06 $1.54 $1.03 $0.59 $0.49 $0.40 Revenue EBITDA Cash EPS 17% CAGR 27% CAGR 34% CAGR ^$1680 ^$400 ^$2.36
Slide 5: Operating Leverage: EBITDA Margin
Operating Leverage EBITDA Margin Goal: 50bps Expansion per Year 16.0% 13.8% 14.5% 16.7% 20.1% '99 '00 '01 '02 '03 '04 '05 06E Averaging over 100 bps per Year 22.2% 22.6% 23.8%
Slide 6: 2006 Guidance
2006 Guidance Revenues ^$1.68 Billion EBITDA ^$400 Million Cash EPS ^$2.36 Free Cash/Share ^$2.60 Free Cash/Share ^$2.60 Free Cash/Share ^$2.60 Free Cash/Share ^$2.60 Free Cash/Share ^$2.60
Slide 7: 2006 Est. Free Cash Flow
2006 Est. Free Cash Flow ($MM, Except per Share) EBITDA $400 Loyalty Cash Flow Adj. 25 Operating EBITDA $425 Less Capex / Int. / Taxes (205) Free Cash Flow $220 Per Share ^ $2.60
Slide 8: Marketing Services: Canada Loyalty AIR MILES Program
Marketing Services (1) Canada: Loyalty AIR MILES(r) Program Solid Mid-teens Growth Coalition Loyalty Program Based Upon Everyday Spend - - Not an Airline Program 2/3 of Canada Active Clients: Shell Oil, Safeway, American Express, Bank of Montreal Three Sources of Future Growth: New Sponsor Categorie
Slide 9: Marketing Services (cont.): US Epsilon
Marketing Services (cont.) (2) US: Epsilon Solid Mid-teens Growth Top 25 Clients: 10 Year Average Tenure Customer Management and Loyalty Solutions: Customized Marketing Campaigns Design and Management of Loyalty Databases Analytical Services Back-end Processing Clients: Hilton Hotels, Principal Fina
Slide 10: Utility Services
Utility Services Serving Both Regulated & De-regulated Services: Core Processing Customer Care / Call Center Database and Marketing Services Income Stream: Earnings Based on Monthly # Statements Clients: Duke, Entergy, Puget Sound, AEP, Centrica, Georgia Natural Gas, Orlando, City of Austin Market O
Slide 11: Private Label Services
Private Label Services Attractive Market - 1998-03: Double-digit Annual Growth for Outsourcers Services: Private Label Processing Customer Care / Call Center Credit: 700 Score, No Sub-Prime Targeting Database Marketing Services Income Streams: Split Between Processing and Credit Clients: Victoria's
Slide 12: Private Label Market
Private Label Market Adding New Clients Expanding Into New Retail Segments Expanding Our Product Offering Consumer Commercial Co-Brand Gift Card Product Expansion Solid Foothold Market Leader Position Emerging Other Outdoor Recreation Hard Goods Jewelry Online/ Catalog Home Furnishings Apparel Consu
Slide 13: Services with Pricing Power
Services with Pricing Power Long-term Relationships 10 - 12 New Clients per Year 10 - 12 New Clients per Year 10 - 12 New Clients per Year 10 - 12 New Clients per Year Our Keys for Success