Aimia Inc. · TSX:AIM
Aimia — Investor Presentation (May 2020)
23 slides from Aimia's investor presentation, May 2020
Slide 1: Investor Presentation May 2020
INVESTOR PRESENTATION MAY 2020 1
Slide 2: Forward-Looking and Cautionary Statements
FORWARD-LOOKING AND CAUTIONARY STATEMENTS This presentation contains statements that constitute “forward-looking information” within the meaning of Canadian securities laws (“forward-looking statements”), which are based upon our current expectations, estimated, projections, assumptions and beliefs.
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 March 31, (in millions of Canadian dollars, except share and per share information) 2020 2019 Continuing operations Operating loss (5.5) (19.0) Depreciation and amortization 1.1 1.0 Operating loss excluding depreciation, amortization and impairment
Slide 5: Q1 2020 Income Statement
Q1 2020 INCOME STATEMENT Three Months ended March 31, (in millions of Canadian dollars) 2020 2019 Restated Revenue $ 29.6 $ 34.7 Operating expenses Compensation and benefits 15.1 25.9 Technology 10.4 17.1 Professional, advisory and service fees 4.9 4.1 Rent and office costs 0.9 2.0 Travel and employ
Slide 6: Aimia Inc. Snapshot
COMPANY OVERVIEW AIMIA INC. SNAPSHOT Strong leadership team Valuable Assets Robust Balance Sheet Core Holdings % Stake(2) • Significant cash reserves • World-class Board overseeing new with proforma $190 (3) management team 49% million • Highly skilled capital 49% • Debt-free balance sheet allocator
Slide 7: Corporate Transformation
COMPANY OVERVIEW CORPORATE TRANSFORMATION • New corporate strategy, overseen by new management and board of directors with long track records of creating stakeholder value, and an ownership mentality purchasing stock in the open market • Investment Committee established to manage the deployment of t
Slide 8: Definitive Value Creation in Less Than 90 Days
COMPANY OVERVIEW DEFINITIVE VALUE CREATION IN LESS THAN 90 DAYS Feb Apr Apr May May 25 2 29 12 13 Board and management are fueled by an • Reconstitution of urgency to create Board of Directors stakeholder value as quickly and • Aimia expands • Investment efficiently as relationship with policy Aerom
Slide 9: New Value-Enhancing Corporate Strategy
COMPANY OVERVIEW NEW VALUE-ENHANCING CORPORATE STRATEGY Ad-Hoc Strategic Review Committee members Core strategy to deploy cash and tax assets on acquisitions of Free Cash Flow generating David Charles Karen Sandra Rosenkrantz (Chairman) Frischer Basian Hanington businesses in diverse industries • St
Slide 10: Investment Committee Formed to Deliver Value
COMPANY OVERVIEW INVESTMENT COMMITTEE FORMED TO DELIVER VALUE Current Investment Committee members Highly skilled capital allocators with decades of proven experience as professional Michael Charles Phil Jordan Lehmann (Chairman) Frischer Mittleman Teramo investment managers • New Ad-Hoc Investment
Slide 11: Core Holding: PLM – Established Travel Loyalty Program in Mexico
CORE HOLDING: PLM ESTABLISHED TRAVEL LOYALTY PROGRAM IN MEXICO Gross Billings (mm US$) Adjusted EBITDA (mm US$) 263.3 84.9 Key Highlights: 2015 2016 2017 2018 2019 TTM 2015 2016 2017 2018 2019 TTM • Launched in 1991, PLM is the owner and operator of Club Members enrolled (million) Premier, an establ
Slide 12: Aimia Expands Aeromexico Relationship with LOI
CORE HOLDING: PLM AIMIA EXPANDS AEROMEXICO RELATIONSHIP WITH LOI • Proposed amendments to the CPSA: ➢ 20-year extension to the CPSA to September 13, 2050 between Aeromexico and PLM • Proposed amendments to the Shareholder Agreement: ➢ Grant Aeromexico an option to acquire Aimia’s 48.9% equity Provid
Slide 13: Kognitiv Merger to Form a Visionary Leader in Loyalty
CORE HOLDING: KOGNITIV KOGNITIV MERGER TO FORM A VISIONARY LEADER IN LOYALTY Transaction Highlights ✓ Merger of Aimia Loyalty Solutions with Kognitiv concurrent with a cash investment of ~$35 million from Aimia Inc. and existing Kognitiv investors (~$21 million from Aimia and ~$14 million from exist
Slide 14: Merger Leverages the Strengths of Both Companies
CORE HOLDING: KOGNITIV MERGER LEVERAGES THE STRENGTHS OF BOTH COMPANIES Kognitiv’s unique business model and commerce marketplace complements Aimia’s Loyalty Solutions product offerings Inbound Trading Subscribers Entertainment Receive Capital From Client Trading Accounts Loyalty Program Bank Retail
Slide 15: Aimia Acquires Stake in Clear Media Limited
CORE HOLDING: CLEAR MEDIA LIMITED (HK: 100) AIMIA ACQUIRES STAKE IN CLEAR MEDIA LIMITED • Approximately $75 million invested in Clear Media Limited (HK: 100), representing a 11% equity stake in a company that is one of the largest outdoor advertising firms operating in China with market shares of mo
Slide 16: One of the Largest Loyalty Programs Across Asia
CORE HOLDING: BIGLIFE ONE OF THE LARGEST LOYALTY PROGRAMS ACROSS ASIA • Beginning in January 2014, Aimia invested a total of $24.3 million in BIGLIFE for an equity interest of 20% • BIG Loyalty has a growing base with over 25 million members at the end of 2019, across 10 countries in Asia including
Slide 17: Accretive Acquisition of Mittleman Brothers LLC
CORE HOLDING: MITTLEMAN BROTHERS, LLC ACCRETIVE ACQUISITION OF MITTLEMAN BROTHERS LLC • Accretive acquisition of Mittleman Brothers LLC, for US$5 million in cash and 4 million in Aimia common shares • Key personnel will be employed to deepen investment expertise and M&A capabilities: Phil Mittleman
Slide 18: Robust Balance Sheet with No Debt and Cash-Rich
FINANCIAL HIGHLIGHTS ROBUST BALANCE SHEET WITH NO DEBT AND CASH-RICH* (CAD$ M) Includes $(22.0)M in restricted cash and $(5) million in working capital movements CASH & INVESTMENTS Mar 31, 2020 PREFERRED SHARES Dividend Shares Out. Book value at (CAD$ M) (CAD$ M) Rate (Million) Mar 31, 2020 Cash and
Slide 19: Strong Leadership Team to Lead the Company
GOVERNANCE AND LEADERSHIP STRONG LEADERSHIP TEAM TO LEAD THE COMPANY Board of Directors Charles Phil Sandra Michael Karen Jordan David Frischer Mittleman Hanington Lehmann Basian Teramo Rosenkrantz Management World-class board team with significant company ownership Phil Mittleman Steven Leonard Int
Slide 20: Share Purchases in the Open Market
SHARE PURCHASES IN THE OPEN MARKET PROVEN OWNERSHIP MENTALITY BY THE BOARD Board members share purchases in the open market (million of common shares) 7.0 (2) 6.18 (million of common shares) 6.0 5.0 Reconstituted 4.0 board with proven ownership 3.0 mentality through 2.0 stock purchases in the open m
Slide 21: Proven Ownership Mentality by the Board
SHARE PURCHASES IN THE OPEN MARKET PROVEN OWNERSHIP MENTALITY BY THE BOARD (1) Board members share purchases in the open market by month Reconstituted board total share purchases 6,175,414 5,369,100 Continued buying 55x times more by Board directors shares have been purchased by the with over 6 mill
Slide 22: Investment Highlights
KEY TAKEAWAYS INVESTMENT HIGHLIGHTS • WORLD-CLASS BOARD with proven ownership mentality and the right skills mix to oversee and lead the company • HIGHLY EXPERIENCED MANAGEMENT TEAM with deep investment expertise and M&A capabilities to Right management implement the new strategy team and highly • A
Slide 23: Contact
CONTACT Tom Tran Director, Investor Relations T +1 416 352 3728 E [email protected]