Aimia Inc. · TSX:AIM
Aimia — Q1 2012 Earnings Presentation
22 slides from Aimia's earnings presentation, May 3, 2012
Slide 1: Q1 2012 Financial Highlights
Q1 2012 FINANCIAL HIGHLIGHTS May 3, 2012
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Forward-looking statements are included in the following presentations. These forward-looking statements are identified by the use of terms and phrases such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “intend”, “may”, “plan”, “predict”, “project”, “will”, “w
Slide 3: David Adams, Executive Vice-President & CFO
DAVID ADAMS EXECUTIVE VICE-PRESIDENT & CFO
Slide 4: Q1 2012 Consolidated Financial Highlights
Q1 2012 CONSOLIDATED FINANCIAL HIGHLIGHTS Three Months Ended % Change (5) March 31, Year Constant ($ millions except per share amounts) 2012 2011 Over Year Currency (6) Gross Billings(1) 536.6 527.9 1.7% 1.2% Gross Billings from sale of Loyalty Units 386.0 362.7 6.4% 6.6% Total Revenue 567.7 546.2 3
Slide 5: Consolidated Gross Billings
CONSOLIDATED GROSS BILLINGS Q1 2011 Q1 2012 ($ millions) ($ millions) $536.6 $527.9 ($4.7) $523.2 +1.7%growth; +1.2% in c.c.(1) +2.6%growth; +2.1% in c.c.(1) 2011 Reported Loss of Qantas Business Excluding Noted Items 2012 Reported (1) Constant Currency excludes the translation effect of foreign ope
Slide 6: Consolidated Adjusted EBITDA
CONSOLIDATED ADJUSTED EBITDA Q1 2011 Q1 2012 ($ millions) ($ millions) $88.9 $72.6 ($3.4) $3.3 $72.5 $69.2 +22.5%growth; +22.5% in c.c.(1) +28.5%growth; +28.6% in c.c.(1) 2 0 11 R e po rt e d B re a k a ge A djus t m e nt E xc luding B re a k a ge R e s t ruc t uring a nd E xc luding N o t e d It e
Slide 7: Free Cash Flow
FREE CASH FLOW Free Cash Flow (1) FCF/ Common Share (2) ($ millions) $18.3 $0.09 $0.09 $197.6 ($21.2) Q1 2012 Q1 2011 Q1 2012 Q1 2011 -$0.13 ($0.13) (1) Free Cash Flow before common and preferred dividends paid. (2) Calculated as: (Free Cash Flow before common and preferred dividends paid, less pref
Slide 8: Canada – Q1 2012 Financial Highlights
CANADA – Q1 2012 FINANCIAL HIGHLIGHTS Three Months Ended % Change (3) March 31, ($ millions) 2012 2011(2) Year Over Year Gross Billings Aeroplan 273.7 275.2 (0.6%) Proprietary Loyalty 58.5 59.0 (0.7%) Intercompany eliminations (19.0) (14.3) na Positive results despite 313.2 319.9 (2.1%) challenging
Slide 9: EMEA – Q1 2012 Financial Highlights
EMEA – Q1 2012 FINANCIAL HIGHLIGHTS Three Months Ended % Change (3) March 31, existing clientsConstant Wins with Year in (2) (4) ($ millions) 2012 2011 Wins with existing both Customer Over Year clients Loyalty andin Currency both Customer Loyalty and Business Loyalty Gross Billings 143.9 120.9 Busi
Slide 10: US & APAC – Q1 2012 Financial Highlights
US & APAC – Q1 2012 FINANCIAL HIGHLIGHTS Three Months Ended % Change (3) March 31, Year Over Constant ($ millions) 2012 2011(2) Year Currency (4) Gross Billings 80.9 88.0 (8.0%) (11.7%) Total revenue 79.3 88.3 (10.2%) (13.6%) Gross margin (1) 35.3 35.7 (1.1%) (3.8%) Gross margin (%) 44.6% 40.5% Prop
Slide 11: Club Premier (PLM)
CLUB PREMIER (PLM) 2010 2011 2012 Quarter Quarter Quarter Quarter Quarter Total Sept. 12, Sept. 13 to ended ended ended ended 2010 Dec.31, 2010 ended March Sept. 30, Wins with existing March 31, clients in 31, 2011 June 30, 2011 Dec. 31, 2011 2011 Wins with2012 existing both Customer clients Loyalty
Slide 12: Liquidity
LIQUIDITY Mar 31, 2012 Dec 31, 2011 ($ millions) • On April 13, 2012, Aimia extended the term of its existing Cash and cash equivalents $179.8 $202.1 $300 million revolving facility by 2 years to Restricted cash $17.4 $15.1 April 23, 2016 and obtained an additional Short-term investments $52.9 $58.4
Slide 13: Common Dividends
COMMON DIVIDENDS AIM Payout Ratio Dividend Yield Dividend policy will continue to be reviewed annually to ensure that growth in the payout ratio is proportionate to Aimia’s free cash flow generation. 6.0% Dividends 5.0% ($ millions) 4.0% $113 $108 $100 3.0% 2.0% $29 1.0% 0.0% Q110 Q210 Q310 Q410 Q1Q
Slide 14: Common Share Repurchase Summary
COMMON SHARE REPURCHASE SUMMARY Average Common Total Price Per Common Shares Repurchased (MM) Initial NCIB Shares Consideration Common Repurchased (MM) Average Price per Common Share Share Total Shares Repurchased to May 13, 2011 19,983,631 $233.0 $11.66 $12.58 $12.34 Renewed NCIB May 16, 2011 – Dec
Slide 15: 2012 Outlook
2012 OUTLOOK For the year ending December 31, 2012, Aimia expects to report the following: Key Financial Metric Target Range Consolidated Outlook Gross Billings Growth 1 Between 3% and 5% Adjusted EBITDA2 Between $370 and $380 million Free Cash Flow 2,3 Between $220 million and $240 million Capital
Slide 16: Appendix
APPENDIX INSPIRING LOYALTY
Slide 17: Gross Billings
GROSS BILLINGS Three Months Ended % Change (3) March 31, Year Over Constant ($ millions) 2012 2011(2) Year Currency (4) Canada Aeroplan 273.7 275.2 (0.6%) (0.6%) Proprietary Loyalty 58.5 59.0 (0.7%) (0.7%) Intracompany eliminations (19.0) (14.3) na na 313.2 319.9 (2.1%) (2.1%) EMEA (1) 143.9 120.9 1
Slide 18: Adjusted EBITDA
ADJUSTED EBITDA Three Months Ended % Change (1) March 31, Year Over Constant ($ millions) 2012 2011 Year Currency (2) Canada Aeroplan Canada 90.5 77.2 17.3% 17.3% Proprietary Loyalty 6.9 10.8 (36.4%) (36.4%) 97.4 88.0 10.7% 10.7% EMEA 4.0 3.2 25.9% 35.6% US & APAC 1.8 (6.9) 126.6% 122.7% Corporate (
Slide 19: Aeroplan – Revenue and Miles
AEROPLAN – REVENUE AND MILES Revenue Breakdown Three Months Ended March 31, (in $ millions) 2012 2011 Change % Change Miles revenue 263.2 243.3 20.0 8.2% Breakage revenue 57.2 52.9 4.3 8.2% Other 11.9 13.6 (1.6) (12.0)% Total Revenue 332.4 309.7 22.7 7.3% Aeroplan Miles Issued & Redeemed Average Sel
Slide 20: Gross Billings from Sale of Loyalty Units by Major Partner
GROSS BILLINGS FROM SALE OF LOYALTY UNITS BY MAJOR PARTNER Q1 2012 Gross Billings Q1 2011 Gross Billings from sale of Loyalty Units from sale of Loyalty Units 22.9% 20.2% 33.5% 34.6% $386.0M $362.7M 20.3% 17.6% 16.2% 15.3% 9.8% 9.6% Partner A Partner B Partner C Air Canada Other Q1 2012 Financial Hi
Slide 21: Foreign Exchange Rates
FOREIGN EXCHANGE RATES Period Rates Q1 2012 Q1 2011 Change % Change Period end rate £ to $ 1.5940 1.5595 0.0345 2.2% Average quarter £ to $ 1.5734 1.5803 (0.0069) (0.4%) Average YTD £ to $ 1.5734 1.5803 (0.0069) (0.4%) Period end rate AED to $ 0.2714 0.2646 0.0068 2.6% Average quarter AED to $ 0.272
Slide 22: Thank You
AIMIA INSPIRING LOYALTY