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 Annual Meeting of Shareholders
 

Annual Meeting of Shareholders

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Annual Meeting of Shareholders

Annual Meeting of Shareholders

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     Annual Meeting of Shareholders Annual Meeting of Shareholders Presentation Transcript

    • ANNUAL GENERAL MEETINGMay 14, 2013
    • ROBERT BROWNCHAIRMAN
    • BOARD OF DIRECTORS4JoanneFerstmanRupertDuchesneAlanRossyJohnForzaniHon.MichaelFortierDouglasPortBethHorowitzChairmanRobertBrownDavidLaidleyRomanDoroniuk
    • A MULTINATIONAL COMPANY INSPIRING LOYALTYTHROUGH A FULL-SUITE GLOBAL OFFERING5LOYALTYANALYTICSCOALITIONLOYALTYPROGRAMSPROPRIETARYLOYALTYSERVICES
    • • Attractive business model• Strong brands and long term member engagement• Thoughtful deployment of capital to fund growth• High quality financial results and exceptional free cash flow in 2012• Further strengthening of the balance sheet• Increased dividend• Global management aligned to shareholder interestsINVESTMENT HIGHLIGHTS6
    • TOTAL RETURN: LAST 3 YEARS7Source: BloombergLast Three Years Ending March 31, 2013-20%-10%0%10%20%30%40%50%60%70%Mar-10Jun-10Sep-10Dec-10Mar-11Jun-11Sep-11Dec-11Mar-12Jun-12Sep-12Dec-12Mar-13Aimia: 60.9%TSX: 15.3%TSX Cons.Disc.: 37.2%
    • 1. Formal Part of the Meeting2. Financial Highlights3. Strategic Overview4. Q&A5. Closing RemarksTODAY’S AGENDA8
    • Forward-looking statements are included in the following presentations. These forward-looking statements are identified by the use ofterms and phrases such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “intend”, “may”, “plan”, “predict”, “project”, “will”,“would”, and similar terms and phrases, including references to assumptions. Such statements may involve but are not limited tocomments with respect to strategies, expectations, objectives, goals, aspirations, intentions, planned operations or future actions.Forward-looking statements, by their nature, are based on assumptions and are subject to important risks and uncertainties. Anyforecasts, predictions or forward-looking statements cannot be relied upon due to, among other things, changing external events andgeneral uncertainties of the business and its corporate structure. Results indicated in forward-looking statements may differ materiallyfrom actual results for a number of reasons, including without limitation, dependency on top Accumulation Partners and clients, conflictsof interest, greater than expected redemptions for rewards, regulatory matters, retail market/economic conditions, industry competition,Air Canada liquidity issues, Air Canada or travel industry disruptions, airline industry changes and increased airline costs, supply andcapacity costs, unfunded future redemption costs, failure to safeguard databases and consumer privacy, changes to coalition loyaltyprograms, seasonal nature of the business, other factors and prior performance, foreign operations, legal proceedings, reliance on keypersonnel, labour relations, pension liability, technological disruptions and inability to use third party software, failure to protectintellectual property rights, interest rate and currency fluctuations, leverage and restrictive covenants in current and future indebtedness,uncertainty of dividend payments, managing growth, credit ratings, as well as the other factors identified throughout this presentation andthroughout our public disclosure record on file with the Canadian securities regulatory authorities.The forward-looking statements contained herein represent the expectations of Aimia Inc., as of May 14, 2013 and are subject to change.However, Aimia disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of newinformation, future events or otherwise, except as required under applicable securities regulations.FORWARD-LOOKING STATEMENTS9
    • DAVID ADAMSEVP AND CFO
    • +2.3%GROSSBILLINGSSTRONG FINANCIAL PERFORMANCE IN 2012(1) In constant currency, excluding the impact of Qantas in-sourcing rewards fulfillment and EIM results of operations.(2) Free Cash Flow before payment of preferred and common dividends.(3) Calculated as: (Free Cash Flow before common and preferred dividends paid, less preferred dividends paid)/ weighted average common shares outstanding.11(1)$402.6MADJUSTEDEBITDA(2)$299.5M$1.67 PER SHAREFREECASH FLOW(2)(3)
    • EVOLUTION OF AIMIA GROSS BILLINGSPercentage from Loyalty Units12F2005 ConsolidatedGross Billings $755 million100%F2012 ConsolidatedGross Billings $2.243 billion73%48 | 25 | 27Loyalty Units - CanadaLoyalty Units - EMEAProprietary and OtherLoyalty Units – Canada
    • FY 2012 AEBITDA GROWTH13(1) Adjusted EBITDA for the year ended December 31, 2011 included $23.3 million in restructuring and reorganization charges including $7.8 million in the Canada region, $3.4million in the EMEA region, $11.8 million in the US&APAC region and $0.3 million in Corporate. Slightly offsetting this impact, EMEA included a $4.9 million favourable impactrelated to the revision of an estimate associated with online store activities .(2) Constant Currency excludes the translation effect of foreign operations on the consolidated results. For more information on Constant Currency, please refer to Aimia’sFebruary 27, 2013 earnings press release.2011 Reported 2012 Reported342.2(1)402.6342.2m402.6m($ millions)Canada+23.5(1)+21.0(1)EMEAUS&APAC+19.0(1)PLMdistribution+15.7 -6.8Share basedcompensationCorporatecosts-12.0(1)+17.7% growth; +17.9% in c.c.(2)2011 Reported 2012 Reported($ millions)
    • GENERATING STRONG FREE CASH FLOW (1)14F2010 F2011 F2012 F2013E255-275221.5299.5(2)(3)(1) Free Cash Flow before common and preferred dividends paid.(2) As reported of $197.6 million excluding funding of the prepaid card liability of $23.9 million in the US business in the fourth quarter of 2011.(3) As reported, includes $34 million of working capital benefit.($ millions)221.2
    • Q1 2013 Highlights• Gross Billings of $561.1 million, up 4.6%• Adjusted EBITDA $82.8 million• Free Cash Flow before dividends paidwas $(9.5) million2013 Guidance• Gross Billings growth of between3% and 5%• Adjusted EBITDA of around $425 million• Free Cash Flow before dividends paid ofbetween $255 and $275 millionQ1 2013 AND FULL YEAR GUIDANCE15(1) Please refer to the May 13, 2013 press release for a description of the assumptions made and the risks related to forecasts.(1)
    • 16RETURNING CAPITAL TO OUR SHAREHOLDERS$0.50$0.60$0.64 $0.642010 2011 2012 20132013: Third Consecutive Increasein Annual Common Share DividendDEPLOYINGCAPITALTO FUNDGROWTHRETURNINGCAPITALTO OURSHAREHOLDERSVALUECREATION2010 2011 2012 2013$0.50$0.60$0.64 $0.68
    • RUPERT DUCHESNEGROUP CHIEF EXECUTIVE
    • A RECOGNIZED LEADER IN LOYALTY1RESULTSDELIVEREDOURINSIGHTSYOURBUSINESS
    • UNMATCHED GLOBAL SCALE AND SCOPE19F2012ConsolidatedGross Billings$2.243 billion100%58 | 42CanadaRest of the WorldMexicoUSAChileUKItalyQatarIndia Hong KongMalaysiaIndonesiaSingaporeAustraliaNew ZealandBahrainUAEJapanBrazilCanadaEgyptOmanJordanLebanonChina100%58 | 42Switzerland
    • PRIORITIZING THE GROWTH OF AEROPLAN20AREOPLAN REMAINS ASIGNIFICANT DRIVER OFPROFITABILITY“Every 21 Seconds” campaignhighlights member takeup ofbenefits
    • DEPLOYING CAPITAL TO FUND GROWTH21Deploying Capital: 2012 Highlights• Building businesses through transfer of expertise and deployment ofcapital into travel-based coalition programs such as Mexico’s ClubPremier, with ownership stake increased to 49%• Investing in data analytics through Cardlytics and our new joint venturewith Sainsbury’s, i2c• Joint ventures and minority investments with local industry leaders:China Rewards, Prismah in Brazil• Expanding on our US presence and our business loyalty offeringthrough Excellence in Motivation (EIM)DEPLOYINGCAPITALTO FUNDGROWTHRETURNINGCAPITALTO OURSHAREHOLDERSVALUECREATION
    • DRIVERS OF PROFITABILITY22COALITIONREDEMPTIONSPREADINVESTMENTFLOATBREAKAGEOPERATINGLEVERAGEREDEMPTIONSPREADECONOMIESOF SCALE INPURCHASINGPROPRIETARYLOYALTYANALYTICS
    • CONNECTING THE DOTS OF BEHAVIOUR DATABEHAVIOURCENTRICDATABASEDo collectorsDO what theysay they will?CONSUMER OPINIONSAND MOTIVATIONSTargeted SamplingMoment of TruthTrigger Based SurveysLongitudinal Studies
    • • At Aimia we believe that companies, theiremployees and partners, can readily apply theskills and creativity that drive commercialsuccess to help solve the complex problems weall face as citizens of the world.• Aimia has chosen two fundamental principles ofloyalty — trust and reciprocity — to guide ourSocial Purpose• Our Social Purpose aims to bring peopletogether, inspiring innovative ideas that createeconomic, environmental and social value forour stakeholders.A SENSE OF SOCIAL PURPOSE24
    • A STRONGER TEAM TO DELIVER25
    • Q&A
    • THANK YOU