Aimia Inc. · TSX:AIM
Aimia — Groupe Aeroplan — 2011 Credit Suisse Customer Services Conference
41 slides from Aimia's conference presentation, Mar 15, 2011
Slide 1: 2011 Credit Suisse Customer Services Conference
y_N 2011 Credit Suisse GROUPE AEROPLAN Clots Services Conference TSX:AER March 15, 2011
Slide 2: Forward-Looking Statements
Forward-Looking Statements Forward-looking statements are included in this presentation. 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”, “would”, and
Slide 3: President & CEO
y oeiee t NZ . nt & CEO
Slide 4: Groupe Aeroplan: Leading Global Loyalty
Groupe Aeroplan: Leading Global Loyalty • Pursuing significant opportunities for organic growth in current business and through acquisitions and greenfield development • Strong 6-year financial track record with a solid performance in 2009 and 2010 despite the challenging global economy • Superior f
Slide 5: Strong Track Record of Operating Performance
Strong Track Record of Operating Performance Gross Billings and Adjusted EBITDA (C$ millions) 2011 Outlook: $2,500 4% - 6% 2,188 Gross Billings growth $2,000 1,501 (in C$ millions) $1,500 1,447 $1,000 2011 Outlook: Adjusted EBITDA $500 319 342 of $355M365 - $365M 282 $0 (1) 2008 2009 2010 2011E Adju
Slide 6: 2011 Outlook
2011 Outlook For the year ending 2011, Groupe Aeroplan expects to report the following on a consolidated basis: Target Range Gross Billings Between 4% and 6% growth Adjusted EBITDA Between $355M and $365M Free Cash Flow 1 2 Between $190M and $210M Capital expenditures for 2011 are expected to be app
Slide 7: Global Loyalty Market Represents Potential $100 Billion Opportunity Within Five Years
Global Loyalty Market Represents Potential $100 Billion Opportunity Within Five Years 7
Slide 8: The Only Full Suite Loyalty Offering
THE ONLY Full Suite Loyalty Offering
Slide 9: Our Full Suite of Services Has a Unique Positioning in the Global Loyalty Industry
Our Full Suite of Services Has a Unique Positioning in the Global Loyalty Industry 9
Slide 10: Unparalleled Knowledge & Expertise
UNPARALLELED Knowledge & Expertise
Slide 11: Greenfield Programs: A Strategically Important and Profitable Growth Strategy
Greenfield Programs: A Strategically Important and Profitable Growth Strategy • Greenfield programs, which require relatively little start-up capital, play an important part in our international growth strategy and long-term shareholder return • Criteria for greenfield program development: – an oppo
Slide 12: Largest Geographic Presence
LARGEST Geographic Presence
Slide 13: Pursuing The Global Loyalty Market
Pursuing The Global Loyalty Market Canada UK USA Italy Middle East Consolidated Gross Billings Mexico India Hong Kong (F2010) Malaysia Indonesia Singapore Rest of Aeroplan Australia World Canada 43% 49% Chile New Zealand 8% Carlson Marketing Canada 13
Slide 14: Aeroplan Canada: The Most Successful Transformation of a Frequent Flyer Program
Aeroplan Canada: The Most Successful Transformation of a Frequent Flyer Program Into a Coalition Loyalty Program • Aeroplan Canada is the premier coalition loyalty program in Canada with gross billings of more than $1 billion • Membership base represents majority of high income Canadians (household
Slide 15: Club Premier: An Opportunity to Replicate the Successful and Profitable Aeroplan Model
Club Premier: An Opportunity to Replicate the Successful and Profitable Aeroplan Model • Strategic investment allows us to leverage our proven expertise and experience and replicate the Aeroplan Canada model • Creates a solid platform for Groupe Aeroplan’s entry into Latin America • Provides an oppo
Slide 16: Nectar UK: The Largest and Most Popular Loyalty Program in the UK
Nectar UK: The Largest and Most Popular Loyalty Program in the UK • Largest and most popular loyalty program in the UK with 17.5 million members • Nectar UK is a scalable business at the point of inflection • Despite the deep recession in the UK – March 2011 – announced the addition of easyJet, the
Slide 17: Advancing Nectar's Rewards Strategy with easyJet
Advancing Nectar’s Rewards Strategy with easyJet – the Largest Airline in the UK • Nectar UK advances reward strategy with the addition of easyJet, the UK’s largest airline, as a redemption partner • Flight rewards contribute to aspirational saving, which in turn positively impacts life of a point a
Slide 18: Nectar Italia: From Greenfield Start-up to Largest Loyalty Program in Italy
Nectar Italia: From Greenfield Start-up to Largest Loyalty Program in Italy in Only 12 Months • Greenfield programs, which require relatively little start-up capital, play an important part in our international growth strategy and long-term shareholder return • Extensive expertise and experience all
Slide 19: Air Miles Middle East: The Leading Coalition Loyalty Program in the Gulf Region
Air Miles Middle East: The Leading Coalition Loyalty Program in the Gulf Region • More than 1.7 million members in the UAE, Qatar and Bahrain • Partnered with over 120 market leading companies, including HSBC (40% partner in Air Miles Middle East) • Through our strong partnership with HSBC, we are w
Slide 20: Partnership with Cencosud
Partnership with Cencosud Cencosud’s Expansion • Largest retailer in Latin America, in South America 80th in the world (source Deloitte 2009) • Presence in 5 countries – Chile, Argentina, Brazil, Peru, Colombia • Annual turnover estimated to be ~US$11.6 billion • Cencosud also operates several other
Slide 21: LMG Insight & Communication: World Leading Expert in Customer Centric Retailing
LMG Insight & Communication (I&C): Proving Itself as a World Leading Expert in Customer Centric Retailing ● 104 Self Serve CPGs • 33 dedicated consultants • 130 CRM CPGs ● 100% Renewal Rate & analysts • £87m of targeted offers • Over 2000 Sainsbury distributed to 8.4m ● 1,900+ CPG Users analytics pr
Slide 22: I&C: Taking Aim at a Significant Global Opportunity
I&C: Taking Aim at a Significant Global Opportunity Second major retail Strong worldwide retail Third retail engagement engagement launched pipeline signed with major European retailer # 1 drug retailer in the Over 100 retailers with world with: sales in excess of $10bn Build of team and tools -$98b
Slide 23: Carlson Marketing: A Leading International Loyalty Marketing Services Provider
Carlson Marketing: A Leading International Loyalty Marketing Services Provider • A pivotal acquisition for Groupe Aeroplan – broadens our loyalty capabilities – provides access to a larger portion of the loyalty market and new skill sets – diversifies our consolidated gross billings base – extends o
Slide 24: Unique Mobile Proposition
Unique Mobile Proposition LEADER IN MOBILIZING RELATIONSHIPS PROPRIETARY MOBILE SEGMENTATION We know mobilizing loyalty requires: Only we can provide real world, data-driven •Keen understanding of consumer behaviors and insights to enable us to develop the right strategy attitudes for reaching the r
Slide 25: Actively Innovating Across The Mobile Loyalty Landscape
Actively Innovating Across The Mobile Loyalty Landscape PATENT PENDING mCERTS™ “THE CODE CAPTURE” MOBILE APP INSTANT REWARDS Developing voice and image recognition technology Allows for instant redemption of points leveraging a mobile device’s microphone and camera to delivered as a mobile gift cert
Slide 26: Comparable Companies Analysis
Comparable Companies Analysis Enterprise Value / 2011E Adjusted EBITDA* 15.5x 11.3x 10.9x 9.8x 9.8x 8.7x 7.7x na Amex Edenred Multiplus Visa Mastercard Groupe Aeroplan ADS * 2011E is based on analyst consensus . Calculation is based on closing share prices on March 7, 2011. 26
Slide 27: Compelling Investment Thesis
Compelling Investment Thesis • Barriers to Entry / Member, Partner and Client Stickiness Attractive • Full-Suite Offering / Proprietary Systems / Unparalleled Expertise Business Model • Strong Brands / Solid Market Share/Operating Leverage • Low Capital Intensity/ High ROIC Strong FCF • $0.50 Annual
Slide 28: Q&A
Slide 29: 2011 Credit Suisse Customer Services Conference
y_N 2011 Credit Suisse GROUPE AEROPLAN Clots Services Conference TSX:AER March 15, 2011
Slide 30: Financial Highlights
Financial Highlights
Slide 31: Q4 2010 Consolidated Financial Highlights As Reported & Adjusted for Constant Currency
Q4 2010 Consolidated Financial Highlights As Reported & Adjusted for Constant Currency 3 Months Ended December 31, 2010 (Excluding Impact of Impact Foreign 2010 2010 VAT of VAT 2009 % Exchange Constant 2009 % ($ thousands) (Reported) Judgment Judgment) (Reported) Change Impact Currency* (Reported) C
Slide 32: Full Year Consolidated Financial Highlights As Reported & Adjusted for Constant Currency
Full Year Consolidated Financial Highlights As Reported & Adjusted for Constant Currency For the Years Ended December 31, 2010 (Excluding Impact of Impact Foreign 2010 2010 VAT of VAT 2009 % Exchange Constant 2009 % ($ thousands) (Reported) Judgment Judgment) (Reported) Change Impact Currency* (Repo
Slide 33: Non-Comparable Items
Non-Comparable Items ($ Millions) Q4 2010 F2010 Effect on Effect on Adjusted Free Cash Flow Adjusted Free Cash Flow ($ millions) EBITDA (net of dividends) EBITDA (net of dividends) Impact of ECJ VAT Judgment ($2.5) ($56.1) Nectar Italia launch costs ($20.4) ($20.4) Corporate costs (strategic consult
Slide 34: Consolidated Gross Billings
Consolidated Gross Billings ($ Millions) $602.1 $8.5 Fx Impact $173.0 Carlson Marketing (as reported) $386.7 $386.7 $420.6 Groupe Aeroplan Groupe Aeroplan excluding Carlson Marketing (as reported) (as reported) Q4 2009 Q4 2010 34
Slide 35: Consolidated Gross Billings
Consolidated Gross Billings ($ Millions) $2,216.0 $45.6 Fx Impact $617.9* Carlson Marketing $1,447.3 ($635.3 reported less Q2 adjustment of $17.4M) $1,447.3 Groupe Aeroplan $1,552.5 Groupe Aeroplan (as reported) excluding Carlson Marketing (as reported) F2009 F2010 * In connection with the integrati
Slide 36: Consolidated Adjusted EBITDA
Consolidated Adjusted EBITDA(1) ($ Millions) $95.0 $0.3 Fx impact $2.5 impact of VAT judgment(2) $7.3 Non-comparable costs(3) $69.6 $84.9 Groupe Aeroplan (as reported) $69.6 Groupe Aeroplan (as reported) Q4 2009 Q4 2010 (1) Calculated in accordance with the definition included in the Corporation’s M
Slide 37: Consolidated Adjusted EBITDA
Consolidated Adjusted EBITDA(1) ($ Millions) $344.8 $2.8 Fx impact $281.6 $56.1 impact of VAT judgment(2) $30.2 non-comparable costs(3) $255.7 Groupe Aeroplan $281.6 Adjusted EBITDA (as reported) Groupe Aeroplan (as reported) F2009 F2010 (1) Calculated in accordance with the definition included in t
Slide 38: Consolidated Free Cash Flow
Consolidated Free Cash Flow ($ Millions) Effect on Q4 2010 Effect on F2010 ($ millions) Free Cash Flow Free Cash Flow Reported Free Cash Flow (net of dividends)* $55.3 $113.7 Nectar Italia launch costs $20.4 Corporate costs (strategic consulting fees) $1.9 $9.1 Carlson Marketing migration costs $4.3
Slide 39: Liquidity
Liquidity ($ Millions) (in $ millions) Dec 31, 2010 Dec 31, 2009 Cash and cash equivalents 538.6 609.9 Restricted cash 12.6 4.2 Short-term investments – 14.4 Long-term investments (1) 176.9 – 728.1 628.5 Loan receivable from Air Canada (2) – 150.0 Long-term debt (including current portion) 643.9 780
Slide 40: Share Repurchase Summary
Share Repurchase Summary Shares Repurchased Total Consideration Average Price Per Share May 12 – June 30, 2010 2,500,000 $23,700,000 $9.48 July 1 – September 30, 2010 8,150,600 $88,900,000 $10.91 October 1 – December 31, 2010 2,372,300 $29,900,000 $12.60 Total Shares Repurchased in F2010 13,022,900
Slide 41: 2011 Credit Suisse Customer Services Conference
y_N 2011 Credit Suisse GROUPE AEROPLAN Clots Services Conference TSX:AER March 15, 2011
Groupe Aeroplan — 2011 Credit Suisse Customer Services Conference on 6ix