Bread Financial Holdings, Inc. · NYSE:BFH
Bread Financial — Alliance Data Systems — Investor Presentation (March 2017)
13 slides from Bread Financial's investor presentation, Mar 1, 2017
Slide 1: Alliance Data - Who Are We and What Do We Do? - Outlook Investor Presentation 2017
Alliance Data - Who Are We and What Do We Do? - Outlook Investor Presentation2017 Exhibit 99.1
Slide 2: Marketplace Challenge Today: How to reach the end consumer effectively?
2 Marketplace Challenge Today: How to reach the end consumer effectively?Audience fragmentation → traditional channels less effectiveInformation overload → consumers only want what’s relevant to themRise of online → pricing pressure forcing ROI measurement on marketing spendMassive shift from Genera
Slide 3: Build Customer Loyalty Platforms
Build Customer Loyalty PlatformsUse Unique Data: SKU (requires client permission)Link SKU with ConsumerAdd Demographic/Psychographic Data 3 Who are we and what do we do?
Slide 4: Example: Mary Smith purchase at Ann Taylor Loft
On September 14th Mary Smith spent $60 at Ann Taylor Loft, Store #128 She bought a blue dress, size 10 (SKU)Dress was 20 percent offMary is upper middle incomeTends to buy complete wardrobesLooks for value (i.e., sales)Mom who works > busy Example: 4 Who are we and what do we do?
Slide 5: Use Data/Insights to Create Specialized Offers
Use Data/Insights to Create Specialized Offers ⌵On September 15thMobile offer to MaryShoes & belt would work nicely with dressClick & buy now > 20 percent off sale⌵ We use data to gain insights which drive sales & loyalty for our clients 5 Who are we and what do we do? “Rinse and repeat” millions of
Slide 6: Different Platforms/Same Model
AIR MILES®Coalition loyalty (Canada) 6. Different Platforms/Same Model 6 Card Services Loyalty program with credit component Epsilon®Single client programs BrandLoyalty® Grocer loyalty specialist (Int’l) Who are we and what do we do? LoyaltyOne®
Slide 7: Growth Company: Financial Results Since IPO in 2001
Growth CompanyLong track record of consistent performanceStrong free cash flow generationHistory of returning capital (buybacks and recently added dividend) 7 Financial Results Since IPO in 2001 @ $12/share Financial Model Revenue Includes: 1. network & processing 2. credit 3. US domiciled customer
Slide 8: Outlook - LoyaltyOne
Outlook - LoyaltyOne Long-term significant contributorCombo organic/M&A2016:BrandLoyalty: strong yearCanada: new law passed by Ontario Parliament upended business modelOne-time charge, pull forward of revenue → lots of noise2017:BrandLoyalty: 10% revenue/adjusted EBITDACanada: revenue flat at $760 m
Slide 9: Outlook - Epsilon
Outlook- Epsilon Long-term significant contributorCombination of organic/M&A2016: Disappointing year (revenue flat, adjusted EBITDA declined)Technology Platform business (26% of Epsilon) dragged down growthPrice point too high, time to market too slow2017: Return to modest growth (+4% revenue/adjust
Slide 10: Outlook - Card Services
Outlook – Card Services Riding secular trend favoring SKU-driven Private Label programs2016:Double-digit revenue & adjusted EBITDA, netIncluded absorbing $165 million drag from credit losses “normalizing” Cut 12 points off of core EPS growth2017:Strong growth to continue: double-digit revenue & adj
Slide 11: Outlook - Consolidated
Outlook - Consolidated Tracking to ‘17 guidance: $7.7BN revenue, $18.50 core EPS1st half muted -Retool AIR MILES modelComplete Technology Platform product at EpsilonProgress on Card Services’ wedge narrowing2nd half –Acceleration begins2018: all businesses at full run rate + transition from increasi
Slide 12: Forward Looking Statements
Forward Looking Statements 12 This 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
Slide 13: Financial Measures
13 Financial Measures In addition to the results presented in accordance with generally accepted accounting principles, or GAAP, the Company may present financial measures that are non-GAAP measures, such as constant currency financial measures, adjusted EBITDA, adjusted EBITDA margin, adjusted EBIT
Alliance Data Systems — Investor Presentation (March 2017) on 6ix