Aimia Inc. · TSX:AIM
Aimia — Investor Day (2012)
52 slides from Aimia's investor day presentation, 2012
Slide 1: Creating Long-Term Shareholder Value
CREATING LONG-TERM SHAREHOLDER VALUE
Slide 2: US and Asia Pacific: Positioned for Profitability & Growth
US AND ASIA PACIFIC: POSITIONED FOR PROFITABILITY &GROWTH Liz Graham President & CEO US and Asia Pacific EVP & Chief Operating Officer Aimia
Slide 3: The US Loyalty Opportunity
THE US LOYALTY OPPORTUNITY The US economy remains challenged at a However, 83% of loyalty program modest pace of recovery... marketers expect to maintain or grow their budgets in 2012: • Real (inflation-adjusted) GDP will grow at an annual rate of 2¼ percent • Unemployment rate will stay above 8% fo
Slide 4: The US Proprietary Loyalty Model and Aimia's Unique Position
THE US PROPRIETARY LOYALTY MODEL AND AIMIA’S UNIQUE POSITION IN THE MARKETPLACE We have a unique model We reach and engage the end customer DIRECT $$ through B2B, B2E2C and B2B2C loyalty approaches . ))) COMPANY RETAIL Creating a 360 degree aligned customer d experience as a binding framework EMPLOY
Slide 5: Asia Pacific Loyalty Opportunity
ASIA PACIFIC LOYALTY OPPORTUNITY The Asia Pacific region is growing, with Expansion of loyalty in APAC will track population and overall wealth very strong. the maturation of consumer buying power Aimia Presence • Region is growing as markets come to maturity Mature/Affluent Emerging •Japan •India •
Slide 6: Strengthening Our Position in Asia Through Full Acquisition of Interact
STRENGTHENING OUR POSITION IN ASIA THROUGH FULL ACQUISITION OF INTERACT IN INDONESIA Interact has leadership position in Indonesia's loyalty sector •Indonesia is one of Asia’s fastest growing emerging economies Aimia will take full ownership position •Interact has a solid portfolio of blue chip in I
Slide 7: US and Asia Pacific Tremendous Opportunities for Growth
US AND ASIA PACIFIC TREMENDOUS OPPORTUNITIES FOR GROWTH US Asia Pacific Continue investments in capabilities and Leverage our local presence in the talent to differentiate our proprietary loyalty mature markets. business Provide end-to-end, integrated loyalty Set strategies for growth aligned to Asi
Slide 8: Growing Loyalty with Proven Leadership
GROWING LOYALTY WITH PROVEN LEADERSHIP Jay Lee Chief Strategy Officer As head of Strategy for the US Region, Jay Lee brings together the latest loyalty thinking from Aimia’s global products, services and expertise to help companies build better relationships with their customers.
Slide 9: Customer Loyalty
CUSTOMER LOYALTY Jay Lee Chief Strategy Officer
Slide 10: Loyalty Programs More Important Than Ever; US Largest Loyalty Market
LOYALTY PROGRAMS ARE MORE IMPORTANT THAN EVER AND THE US IS THE LARGEST LOYALTY MARKET Global Addressable Loyalty Spend • US Loyalty program membership is increasing and has exceeded 2B in 2010 • Number of loyalty memberships in the US has more than doubled since 2000 • And the number of programs pe
Slide 11: Loyalty Programs Augmented by Digital and Mobile Commerce Innovations
LOYALTY PROGRAMS ARE BEING AUGMENTED BY DIGITAL AND MOBILE COMMERCE INNOVATIONS Competition for Innovations in Millennial mobile wallets mobile payments mobile preference
Slide 12: Loyalty a Natural Hub of Personal and Transactional Information
LOYALTY HAS BECOME A NATURAL HUB OF VAST AMOUNTS OF PERSONAL AND TRANSACTIONAL INFORMATION The individual is at the center of Consumer acceptance of the corporate diverse types of personal data use of personal data SEARCHES SOCIAL CALENDARS GRAPH THE INDIVIDUAL INTERESTS LOCATION PURCHASES World Eco
Slide 13: Loyalty Programs Are a Trusted Communications Channel
LOYALTY PROGRAMS ARE A TRUSTED COMMUNICATIONS CHANNEL THAT CREATES A COMPETITIVE ADVANTAGE % who always read email or text communications from this source Aimia Digital Consumer Research , Aug, 2012 unpublished
Slide 14: Market Changes Have Created Significant Complexity for Businesses
THESE CHANGES IN THE MARKETPLACE HAVE CREATED SIGNIFICANT COMPLEXITY FOR BUSINESSES Greater need to Greater need for incorporate new Greater need for trusted and relevant payment customer insights communications technologies from data Rate of innovation in the Data is overflowing from Customers are
Slide 15: Positioning Our Business for Large-Scale Needs of the US Market
WE’RE POSITIONING OUR BUSINESS TO ADDRESS THE LARGE-SCALE NEEDS OF THE US MARKET LOYALTY • Significant activity in helping companies reimagine their loyalty strategy LOYALTY STRATEGY • Raising the bar in modeling the economic impacts of loyalty program designs STRAEGY LOYALTY LOYALTY • Deploying ana
Slide 16: Procter & Gamble Uses Loyalty to Affect Purchase Decisions
PROCTER & GAMBLE USES LOYALTY TO AFFECT PURCHASE DECISIONS AT EACH STAGE IN THE CUSTOMER LIFECYCLE • Leverages proprietary Code on Pack intellectual property • Delivers personalized offers at key points in the purchase lifecycle • Scales loyalty currency spend to match the behavior and desired outco
Slide 17: Delivering Measurable Results Using Deep Loyalty Analytics
DELIVERING MEASURABLE RESULTS USING DEEP LOYALTY ANALYTICS • Vertical-specific predictive model delivers 34% increase in ROI • Leveraging multiple data sources enabled better discriminate between pet owners • Reached 6.7 million households with an 82% higher response ROI in 2011 was 122%, highest in
Slide 18: Kellogg's Family Rewards Unify Customer Data Across Brands
KELLOGG’S FAMILY REWARDS USE LOYALTY MARKETING TO UNIFY CUSTOMER DATA ACROSS THEIR BRANDS • Hundreds of brands and SKUs using the same Code on Pack business process • Goal is to cross-sell and up-sell consumers within the Kellogg’s Morning Foods Frozen Foods Snacks & Cookies family of products • Com
Slide 19: Positioning the US Customer Business for Growth
POSITIONING THE US CUSTOMER BUSINESS FOR GROWTH We’re investing in technology, leveraging intellectual property and delivering high value analytics
Slide 20: Growing Loyalty with Proven Leadership
GROWING LOYALTY WITH PROVEN LEADERSHIP Fay Beauchine President, US Business Loyalty A proven leader in Aimia US Business Loyalty since 2007, Fay brings a variety of expertise in cross-enterprise marketing and sales strategy, and has held executive positions in the travel sector. She leads the team t
Slide 21: Business Loyalty
BUSINESS LOYALTY Fay Beauchine President, US Business Loyalty
Slide 22: Marketers Know What They Need
MARKETERS KNOW WHAT THEY NEED Global CMOs share the perspective that data across all channels is critical to interpreting and solving their business challenges. deliver value capture value, foster lasting Areas for Improvement to empowered connections measure results customers Source: IBM Oct. 2011
Slide 23: But Recognize They Are Underprepared and Need Help
BUT RECOGNIZE THAT THEY ARE UNDERPREPARED AND NEED HELP Areas where CMOs feel most underprepared Data explosion Implications of social media 66% of respondents said Growth of channel and device choices improving quality of leads, Shifting consumer demographics and maximizing selling time are most im
Slide 24: Aimia's Analytics Provide Critical Information to Target and Convert Sales
AIMIA’S ANALYTICS PROVIDE CRITICAL INFORMATION TO TARGET AND CONVERT SALES OPPORTUNITIES 42% of organizations have Hi Tech insufficient knowledge of needs of prospective buyers for user conferences Automotive 40% are unable to identify the most likely buyer of their warranty service Source: Aimia De
Slide 25: Investing in Human Capital and Customer Relationships Will Bridge the Gap
INVESTING IN HUMAN CAPITAL AND CUSTOMER RELATIONSHIPS WILL BRIDGE THE GAP GLOBAL LEADERS RECOGNIZE THE POWER INHERENT IN THEIR EMPLOYEES AND CHANNELS TO INFLUENCE RELATIONSHIPS WITH CUSTOMERS Source: IBM 2012 Global CEO Study
Slide 26: Our Insights and Strategic Design Connect B2B and B2C Initiatives
OUR INSIGHTS AND STRATEGIC DESIGN CONNECT B2B AND B2C INITIATIVES B2B: B2C: COMPANY-TO-DEALER & COMPANY-TO-EMPLOYEE COMPANY-TO-CUSTOMER • Insight & Strategy • Data Management • Product & Skills Training • New Customer Acquisition Programs • Recognition & Reward Programs • CRM & B2C Communications •
Slide 27: Driving Deeper Engagement Using Game Mechanics in Employee Channel
DRIVING DEEPER ENGAGEMENT USING GAME MECHANICS IN EMPLOYEE CHANNEL Innovating through new channels 27 (gamification) Centurylink
Slide 28: Engaging the Sales Channel Through Education and Communication
ENGAGING THE SALES CHANNEL THROUGH EDUCATION AND COMMUNICATION Aimia’s Positive Engagement methodology applied to Subaru dealership employees drives increased sales DRIVERS OF and customer satisfaction scores POSITIVE ENGAGEMENT Certified salespeople sell 2X more vehicles than non-certified Innovati
Slide 29: We Have Acquired EIM, Solidifying Our Position in Business Loyalty
WE HAVE ACQUIRED EIM, SOLIDIFYING OUR POSITION IN BUSINESS LOYALTY • Leader in business loyalty management • Our combined company has a significant market footprint –11 of Fortune 20 –24 of Fortune 100 –7 of top 10 auto manufacturers –4 of top US telecom providers –3 of top 5 pharmaceutical companie
Slide 30: EIM Strengthens Aimia's Value Proposition
EIM STRENGTHENS AIMIA’S VALUE PROPOSITION The combination reinforces Aimia as a world-class loyalty management company enhanced with global execution abilities, strong employee and EIM adds industry expertise and leadership, talent and capabilities channel capabilities that enhance Aimia’s engagemen
Slide 31: Excellent Customer Experience Drives Performance
EXCELLENT CUSTOMER EXPERIENCE DRIVES PERFORMANCE 81% of companies with strong capabilities for delivering an excellent customer experience outperform their competition 31 Source: Peppers and Rogers Group
Slide 32: Asia Pacific
ASIA PACIFIC Karl Schuster President Asia Pacific
Slide 33: Growing Asia with Proven Leadership
GROWING ASIA WITH PROVEN LEADERSHIP Karl Schuster President, Asia Pacific • 12 year Asia Pacific Aimia veteran • Previous experience includes executive roles at Bates, Rapier and Ogilvy across three continents. • Resides in Singapore to stay close to the big opportunities in the emerging and mature
Slide 34: Asia - Key Facts: Global Population 2010
ASIA - KEY FACTS GLOBAL POPULATION 2010
Slide 35: Asia: Percentage Share of Global Total GDP
ASIA: No rth Am e ric a We ste r nE ur op e Af f lu en tA s ia So u th Am e ric a Ea s ter nE ur N op Af e ri ca /M Ea s t PERCENTAGE SHARE OF GLOBAL TOTAL GDP Ch in a De v. As ia In d ia
Slide 36: Aimia in Asia – Market Types
AIMIA IN ASIA – MARKET TYPES Mature Frontier •Japan •Cambodia •Australia •Philippines •Hong Kong •Laos •New Zealand •PNG •Singapore •Burma •Mongolia •North Korea Emerging •Bangladesh •India •Vietnam •China •South Korea •Malaysia •Indonesia •Taiwan •Thailand
Slide 37: Aimia in Asia – Geographic Footprint
AIMIA IN ASIA – GEOGRAPHIC FOOTPRINT Mature Frontier Japan •Cambodia Australia •Philippines Hong Kong •Laos New Zealand •PNG Singapore •Burma •Mongolia •North Korea Emerging •Bangladesh India •Vietnam •China •South Korea Malaysia Indonesia •Taiwan •Thailand
Slide 38: The Consumer in Asia
THE CONSUMER IN ASIA The main story for the next decade is a lifecycle wave that brings together rapid growth in the 40+ age bracket with a sharp rise in their spending power. Smartphone Owners in Select Countries Likelihood that Internet Users and Regions Who Access Mobile Internet Worldwide Will B
Slide 39: The Consumer in Asia
THE CONSUMER IN ASIA MIDDLE EAST & The main story for the next decade is a AFRICA lifecycle wave that brings together rapid LATIN AMERICA growth in the 40+ age bracket with a sharp NORTH AMERICA rise in their spending power. EUROPE ASIA-PACIFIC Broadband Household Share Worldwide, by Region 2009-201
Slide 40: The Loyalty Landscape in Asia
THE LOYALTY LANDSCAPE IN ASIA Key Trends Business Opportunity South East Asia • Fast-growing smaller economies • Proprietary loyalty a big opportunity • Largely immature from a loyalty standpoint • Limited medium term coalition plays • Low client sophistication • Limited medium term ISS opportunitie
Slide 41: Unmatched Profile in Asia
UNMATCHED PROFILE IN ASIA Singapore Headquarters Cross-region and local delivery capability Experienced in region Leadership Team • 500 people across eight markets • Management • Multi-market solutions • Operations Enviable portfolio of leading global, regional and local brands • Finance • IT • Lega
Slide 42: Strength in Relationships
STRENGTH IN RELATIONSHIPS TENURE MARKET SERVED SERVICES Australia’s 11 years Australia Proprietary No 1 Bank Singapore World’s largest oil 9 years Malaysia Proprietary company Hong Kong Pamper’s: $10bn 2 years Japan Proprietary global brand Australia’s Australia 7 years Proprietary No 2 airline New
Slide 43: Benefiting from the Aimia Full Suite
BENEFITING FROM THE AIMIA FULL SUITE MARKET SERVED SERVICES Australia’s Australia ISS No 2 supermarket chain Asia’s fastest growing 15 markets across Proprietary bank Middle East and Asia India’s leading private India Proprietary bank JV partnership with India’s leading Coalition India industrial/co
Slide 44: Key Facts
KEY FACTS 86,865 employees Operations in 71 markets Operating income $17.6bn PBT $6.7bn Focus on Asia, Africa and Middle East 6 million credit card customers in scope for Aimia
Slide 45: Our Solution Set
OUR SOLUTION SET 5 Languages Reporting 15 Markets and Analytics Catalogue Bank Systems Data AIMIA Travel Rewards Integration Payment Gateway Loyalty eVouchers Platform Third Parties Affiliate Mall Fulfillment Member Rewards Support Portfolio >5M Members Website Contact Centre Mobile
Slide 46: Developing in Indonesia
DEVELOPING IN INDONESIA • Aimia takes full ownership position in key strategic Asian markets • Long term relationship with Jakarta based on integrated agency – 40% shareholding in Interact • Binding LOI signed to acquire balance of equity by year end • Indonesia is one of Asia’s fastest growing emer
Slide 47: The Opportunity and Challenge in Asia
THE OPPORTUNITY AND CHALLENGE IN ASIA The opportunity The challenges • Buoyant economic environment • Many early stage opportunities: sorting the • Expertise gap in emerging markets presents potential winners from losers proprietary opportunities • Adapting the business model to local • Large afflue
Slide 48: Aimia's Asia Advantage
AIMIA’S ASIA ADVANTAGE As a region, Asia Pacific is and Aimia is the largest player in the Significant business will continue to be in positive region and has a solid platform development activity and growth territory for business development success We are in the best place We have the best footpri
Slide 49: Recap – Asia Pacific
RECAP – ASIA PACIFIC • Partnering with leading brands • Evaluating opportunities to expand full suite • We are aggressively exploiting a first mover advantage • Expanding footprint
Slide 50: Recap – US
RECAP – US • Investing in: Acquisitions to expand market share and footprint Standardizing and enhancing our global technology platforms Analytics to add scale and broader range of vertical specific capabilities • Leveraging Aimia generated IP • Good progress on a next generation coalition loyalty p
Slide 51: Thank You
/A\IMIA INSPIRING LOYALTY
Slide 52: Creating Long-Term Shareholder Value
CREATING LONG-TERM SHAREHOLDER