Bread Financial Holdings, Inc. · NYSE:BFH

Bread Financial — Alliance Data Systems — Investor Presentation (April 2008)

13 slides from Bread Financial's investor presentation, Apr 16, 2008

  1. Slide 1: Alliance Data Q1 2008

    Exhibit 99.1 Alliance Data Q1 NYSE:ADS 2008 ©2008 ADS Alliance Data Systems, Inc.

  2. Slide 2: Alliance Data's Safe Harbor Statement/Forward-Looking Statements

    2008 Q1 ADS Roadshow 2 Alliance Data’s Safe Harbor Statement/Forward-Looking Statements • This presentation may contain 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 sta

  3. Slide 3: Financial Measures

    2008 Q1 ADS Roadshow 3 Financial Measures • In addition to the results presented in accordance with generally accepted accounting principles, or GAAP, the Company presents financial measures that are non-GAAP measures, such as adjusted EBITDA, operating EBITDA and cash earnings per share. The Compan

  4. Slide 4: Alliance Data: A Unique Business Model

    2008 Q1 ADS Roadshow 4 Alliance Data: A Unique Business Model Largest and Most Comprehensive Provider of Transaction- based Marketing and Loyalty Solutions • Highly sophisticated transaction-based programs are measurable, trackable and allow for micro-segmentation of clients’customers. • Drives high

  5. Slide 5: Compelling Growth Company – Four Financial Metrics

    2008 Q1 ADS Roadshow 5 Compelling Growth Company – Four Financial Metrics 1. Double-digit Organic Growth 2. Strong Free Cash Flow Conversion • Double-digit organic business growth, plus • Margin expansion: 14% (2000) 32% (2007); >250bps a year • Capex improving from 5% 3% of top-line 3. Strong Visib

  6. Slide 6: 2008 Guidance

    2008 Q1 ADS Roadshow 6 2008 Guidance • Reiterate Organic Growth Targets: • Operating EBITDA >$730MM • Adjusted EBITDA >$700MM • Cash EPS $4.30 Cash EPS: Mid-teens Organic Growth Q1: Flat (-) Lane Bryant Drag ($.98-1.00) (-) 2008’s Most Difficult Comps Q2: Low to Mid-teens (-) Lane Bryant Drag (+) Pr

  7. Slide 7: 2008 Est. Free Cash Flow

    2008 Q1 ADS Roadshow 7 2008 Est. Free Cash Flow ($MM, Except per Share) Adjusted EBITDA > $700 Loyalty Adjustment 30 Operating EBITDA > $730 Less Capex/Int./Taxes (330) Free Cash Flow $400 Per Share $5.00 (11% yield) + Asset Sales / Other Initiatives TBD ©2008 ADS Alliance Data Systems, Inc.

  8. Slide 8: One Business Model Drives Multiple Service Offerings

    2008 Q1 ADS Roadshow 8 One Business Model Drives Multiple Service Offerings Through our We develop, We capture analysis over Our micro- implement and segmentation past and the past 25 drive complex current years we know drives marketing and significant ROIs consumer this is the best loyalty transact

  9. Slide 9: 2008 Outlook: Loyalty Services - Canada

    2008 Q1 ADS Roadshow 9 2008 Outlook: Loyalty Services - Canada • AIR MILES ® Reward Program is the Largest Mass Consumer Coalition Loyalty Program in Canada • 70% of Canadian Households Active in the Program • One of Canada’s Most Recognizable Brands • Despite Name, Revenues are not Driven by Airlin

  10. Slide 10: 2008 Outlook: Epsilon Marketing Services

    2008 Q1 ADS Roadshow 10 2008 Outlook: Epsilon Marketing Services • Only Recognized Leader in Both Database Marketing and Email Marketing Services by Forrester • Most Comprehensive and Only Integrated Database Marketing Services Firm in the Industry • Marketing Strategy • Database Management • Propri

  11. Slide 11: 2008 Outlook: Private Label Services

    2008 Q1 ADS Roadshow 11 2008 Outlook: Private Label Services • Fully Integrated Loyalty-driven Private Label and Co-brand Programs • Loyalty & Marketing Programs • High-end Customer Care • Transaction Processing • Consumer’s Choice Driven by Loyalty and Relationship to Retailer, not a Need for Credi

  12. Slide 12: 2008 Outlook: Private Label Credit

    2008 Q1 ADS Roadshow 12 2008 Outlook: Private Label Credit • 11MM Active Households Each Month • 85% Female; Mid-to High-Income • Customer Views as Loyalty Program, not an Extension of Credit • 700 Average Bureau Score; Small Average Balances ($350/acct.) • No Sub-prime Targeting • 2007 Adjusted EBI

  13. Slide 13: 2003-2008e Adjusted EBITDA and Cash EPS

    2008 Q1 ADS Roadshow 13 2003-2008e (in $MM, except per share) Adjusted EBITDA Cash EPS >$700 $4.30 $632 $3.88 $3.14 $498 $321 $1.99 $255 $1.54 $189 $1.00 2003 2004 2005 2006 2007 2008e 2003 2004 2005 2006 2007 2008e ©2008 ADS Alliance Data Systems, Inc.

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