Slide 1: Q4 2019 highlights
Q4 2019 highlights FEBRUARY 25, 2020
Slide 2: Forward-looking and cautionary statements
FORWARD-LOOKING AND CAUTIONARY STATEMENTS Forward-looking statements are included in this presentation. These forward-looking statements are typically identified by the use of terms such as “outlook”, “guidance”, “target”, “forecast”, “assumption” and other similar expressions or future or condition
Slide 3: Non-GAAP financial measures
NON-GAAP FINANCIAL MEASURES Aimia uses the following non-GAAP financial measures which it believes provides investors and analysts with additional information to better understand results as well as assess its potential. GAAP means generally accepted accounting principles in Canada and represents In
Slide 4: GAAP to non-GAAP reconciliation
GAAP TO NON-GAAP RECONCILIATION* Three Months Ended Years Ended December 31, December 31, (in millions of Canadian dollars, except share and per share information) 2019 2018 2019 2018 Continuing operations Operating loss (20.4) (63.7) (73.2) (134.7) Depreciation and amortization 1.4 4.0 4.5 16.4 Imp
Slide 5: Q4 & FY 2019 income statement
Q4 & FY 2019 INCOME STATEMENT Three Months Ended Years Ended December 31, December 31, (in millions of Canadian dollars) 2019 2018 2019 2018 Restated Restated Revenue $ 35.0 $ 36.8 $ 134.0 $ 167.1 Operating expenses Compensation and benefits 25.8 35.8 95.9 129.4 Technology 17.2 14.8 65.8 67.1 Profes
Slide 6: Today's speakers
TODAY’S SPEAKERS JEREMY RABE STEVEN LEONARD Chief Executive Officer Chief Financial Officer © 2019 Aimia. All rights reserved. 6
Slide 7: Agenda
AGENDA Q4 2019 Financial highlights highlights © 2019 Aimia. All rights reserved. 7
Slide 8: Q4 2019 highlights
Q4 2019 highlights JEREMY RABE
Slide 9: 2019 year of accomplishments
2019 YEAR OF ACCOMPLISHMENTS Achieved key objectives set at the beginning of the year Improving Realizing value Maximizing Deploying Govern effectively performance of investments performance capital to to ensure transparency of operating at strong of travel loyalty generate and accountability busine
Slide 10: Club Premier has a solid financial track record with no debt and a strong outlook
CLUB PREMIER HAS A SOLID FINANCIAL TRACK RECORD WITH NO DEBT AND A STRONG OUTLOOK Solid financial track record (US$ mm) Impressive financial performance in 2019 despite challenging operating and economic +8% environment in the short-term: 244.1 263.3 +8% • Lower capacity from grounding of 737 MAX 78
Slide 11: Cost transformation driving a leaner operating model
COST TRANSFORMATION DRIVING A LEANER OPERATING MODEL TO DELIVER FUTURE PROFITABILITY • 450 FTE at Q4 2019, • Renegotiated IT down from last infrastructure contract to quarter (520) and reduce run-rate cost from Headcount Technology beginning of the this IT spend by more than year (750) 40% once full
Slide 12: Positive momentum in commercial business with new client wins and strategic partnerships
POSITIVE MOMENTUM IN COMMERICAL BUSINESS WITH NEW CLIENT WINS AND STRATEGIC PARTNERSHIPS Loyalty Solutions Strategic Partnership Proprietary Research New Client Wins: • Leading South American food retailer • U.S. travel entertainment company New Strategic Partnerships: • Co-sales of Aimia’s loyalty
Slide 13: Loyalty Solutions 2020 strategic focus on continued operational excellence
LOYALTY SOLUTIONS 2020 STRATEGIC FOCUS ON CONTINUED OPERATIONAL EXCELLENCE Loyalty Solutions priorities to compete with greater impact 1 2 Improving operating Evolving our proprietary performance and delivering SmartJourney® methodology to growth from higher base of uncover the highest impact recurr
Slide 14: Financial highlights
FINANCIAL highlights STEVEN LEONARD
Slide 15: Q4 2019 and FY 2019 financial highlights
Q4 2019 AND FY 2019 FINANCIAL HIGHLIGHTS* Consolidated results from continuing operations Reported figures (CAD$ M) Q4 2019 Q4 2018 FY 2019 FY 2018 Revenue 35.0 36.8 134.0 167.1 Strong Q4 2019 Operating expenses (55.4) (100.5) (207.2) (301.8) results to Operating loss (20.4) (63.7) (73.2) (134.7) fi
Slide 16: Segment performance
SEGMENT PERFORMANCE* Loyalty Solutions Reported figures (CAD$ M) Q4 2019 Q4 2018 FY 2019 FY 2018 Revenue 35.0 36.8 134.0 167.1 Cost Operating Expenses (40.1) (85.7) (161.2) (250.4) transformation driving Operating Income (loss) (5.1) (48.9) (27.2) (83.3) improved operating Adjusted EBITDA(1) (2.7) (
Slide 17: Corporate and other
CORPORATE AND OTHER* Reported figures Other (CAD$ M) Q4 2019 Q4 2018 FY 2019 FY 2018 Operating expenses (15.3) (14.8) (46.0) (51.4) Benefits from reduced PLM distribution 4.8 4.6 35.3 17.9 compensation Adjusted EBITDA(1) (10.5) (10.2) (10.6) (33.1) and advisory fees offset by impact of one- time cos
Slide 18: PLM gross billings and member base
PLM GROSS BILLINGS AND MEMBER BASE* Strong top line growth 12% Members enrolled Largest coalition (million) loyalty program in +9.8% YoY Mexico with 6.7 6.5 6.6 6.3 engaged base 5.6 5.7 5.9 6.1 of 6.7 million Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 members and favourable secu
Slide 19: PLM adjusted EBITDA and distributions
PLM ADJUSTED EBITDA AND DISTRIBUTIONS* Rewards mix & digital transformation driving steady AE results PLM has a PLM Adjusted EBITDA(1)(3) (million USD) FY 2019: $84.9 (+8.3% YoY) robust balance FY 2018: $78.4 sheet with (1.4)% YoY CAD$114.3M in 20.2 19.1 22.0 20.4 21.3 21.5 21.7 17.1 cash and no deb
Slide 20: Q4 2019 Adjusted EBITDA to free cash flow walk
CONTINUING OPERATIONS Q4 2019 Adjusted EBITDA to Free Cash Flow walk* (CAD$ M) - (2) (1) (1) Q4 (23.9) (5.5) (1.8) - 15.8 (12.8) 3.5 (0.9) 2018 *This presentation contains both IFRS and non-GAAP financial measures. Non-GAAP financial measures are defined and reconciled to the most comparable IFRS me
Slide 21: Robust balance sheet
ROBUST BALANCE SHEET* Substantial cash reserves with no debt (CAD$ M) (1) (2) CASH & INVESTMENTS Dec 31, 2019 PREFERRED SHARES Dividend Shares Out. Book value at (CAD$ M) (CAD$ M) Rate (Million) Dec 31, 2019 Cash and cash equivalents 98.6 Preferred Shares (Series 1) 4.50% 2.9 71.5 Restricted cash 97
Slide 22: Q4 Conclusion
Q4 Conclusion JEREMY RABE
Slide 23: Key takeaways
KEY TAKEAWAYS* Tremendous opportunity to create long-term value Delivered strong Q4 2019 results with dramatic progress in (1) Adjusted EBITDA Achieved key objectives set for 2019 to substantially improve operating performance Reconstituted Board in place to lead the company forward Confident in fut
Slide 24: Questions
Questions . © 2018 Aimia. All rights reserved. 24
Slide 25: Contact
CONTACT Tom Tran Director, Investor Relations T +1 416 352 3728 E tom.tran@aimia.com
Slide 26: . © 2018 Aimia. All rights reserved.
. © 2018 Aimia. All rights reserved. 26