3. LEVERAGING A STRONG FOUNDATION TO ACTIVELY
BUILD OUR FULL-SUITE OF PRODUCTS & SERVICES
LOYALTY Canada Overview (FY 2011)
COALITION PROPRIETARY
ANALYTICS LOYALTY
LOYALTY
Total Gross Billings $1.3B
Collects, analyzes
Manages Canada’s Designs, builds and
and derives actionable
flagship premium manages customer and
multi-partner
insight from customer
employee
AEBITDA $373M
data to deliver
loyalty program loyalty programs for
measurable marketing
individual clients
ROI for our Margin1 29%
clients and partners
Employees 1,895
Intelligent Shopper
Solutions
• 4.6M members • 1 grocery anchor client • >65 clients
• >75 partners,150 brands • 23 programs
• 5,000 retail locations • > 14M members
• 1.5M travel redemptions • 10 CPGs signed
1 AEBITDA / Total Gross Billings
4. DELIVERING SUSTAINED HEALTHY
FINANCIAL PERFORMANCE
Gross Billings (Millions)
+11%
1,249 1,299
1,047
2009 2010 2011
Consistent delivery of leveraged growth Gross Margin1 (Millions)
+20%
Healthy and growing margins 604
419 498
Driving productivity to enable investment
Important contributor to Aimia globally
2009 2010 2011
AEBITDA (Millions)
+16%
338 373
277
2009 2010 2011
Proprietary Loyalty
1 Before depreciation and amortization
Aeroplan
5. A STRONG HISTORY OF IMPORTANT INDUSTRY AND
COMMUNITY RECOGNITION AND SUPPORT
Employees Commercial Community
Best Airline Credit Card (2009,2010,2011,2012)
Airline Program of the Year (2010, 2011)
Best Airline Promotion for Earning (2010, 2011)
Best Airline Redemption Ability (2010, 2011)
Best Customer Service (2011)
4 years running
6. BUILDING ON RECENT ACCOMPLISHMENTS AND
CONTINUING TO INVEST FOR FUTURE GROWTH
2010 2011 2012
New Aeroplan brand launch Enhanced Flight Search Tool Significant savings in Proprietary Rewards Platforms
supported by 25% increase in productivity
marketing Air redemption
volumes up 12%
Investments in new ventures Launch of Destination Miles Digital enhancements Distinctive Capabilities
• Innovation
• Business Intelligence
• Data & Analytics
7. WHILE LOYALTY IS WELL DEVELOPED IN CANADA,
SIGNIFICANT POTENTIAL FOR GROWTH REMAINS
Market Characteristics Growth Potential ($Billions)
World’s most sophisticated and developed Loyalty currently capturing only 50% of total household expenditures
loyalty market
Current
Consumers Aimia Market
- 9 / 10 Canadians belong to at least Penetration Opportunity
1 loyalty program 1.3 3.0
1.3
- 6.5 programs per household
$6B - Over 90 million loyalty program memberships
1.8 1.8
3.0
Business
- Domestic and global loyalty services leaders Other
- Emerging and new payment technologies / players
Significant further growth available in Canadian Market
• Deeper loyalty penetration of consumer spending
• Evolution of loyalty value chain brings new opportunity
Source: PMB, Aimia proprietary research
8. WE SEE SIGNIFICANT ROOM TO GROW BEYOND
OUR CURRENT FOOTPRINT
Sources of Growth Addressable loyalty market size by 2015 ($ Millions)
800
Deeper Penetration of existing
$3B
650
clients / partners
600
New clients in already active 400
sectors / verticals 300
250
Underpenetrated and / or
new sectors
Financial Grocery and Retail CPG Telco and Other
Institutions Pharmacy Media
9. THE TRADITIONAL LOYALTY VALUE CHAIN IS
BEING TRANSFORMED, CREATING OPPORTUNITIES
WHAT I BUY
EVERY
CONSUMER
ACTION SEARCH REVIEW MOBILE DEVICE
CREATES DATA & PAYMENTS
ALWAYS ‘ON’
’ QUOTE RECOMMEND SOCIAL
CONSUMERS NETWORKS
What I think What I’m interested in What I read Who I talk to What I’ll do next
Where I am What I watch What I do What I aspire to
10. WE ARE UNIQUELY POSITIONED TO
TAKE ADVANTAGE OF THESE NEW OPPORTUNITIES
Customer Loyalty Needs Our expanding portfolio of businesses covers
are becoming more sophisticated the entire loyalty spectrum
Basic
Deliver customer value to fuel increased sales
COALITION
LOYALTY
Optimize contribution of core customer segments,
with focus on key profitability drivers
Complex
PROPRIETARY LOYALTY
Optimize marketing ROI, and commercialize LOYALTY ANALYTICS
loyalty investment Intelligent Shopper
Solutions
11. LOOKING FORWARD: OUR VISION AND OBJECTIVES
Vision Objectives
1 Strengthen and grow our core
2 Accelerate the development of our full suite
Canada's recognized
3 Build a world class operating system
leader in loyalty
4 Drive Aimia brand awareness and reputation
Create an inspiring and highly engaged work environment
5 (best people, best culture)
12. A FEW ADDITIONAL THOUGHTS
COMPETITION KEY
2013 MILEAGE
TRIBUNAL PARTNER
EXPIRY
RULING RENEWALS
14. 1 Strengthen and grow our core
AEROPLAN:
CANADA’S FLAGSHIP PREMIUM COALITION
Canada’s Most Affluent Unique and Flexible set of Partnership Models
Member Base
4.6M EXCLUSIVE
Actives Leveraging the power of our
brand and member base on
behalf of our partners…
CO-EXISTENCE
CONVERSION
…with our members as our
partners’ best customers
PROMOTIONAL
34M Canadians & OTHER
15. 1 Strengthen and grow our core
READY TO EMBARK ON THE NEXT ERA OF LEADERSHIP
Travel + Financial
Travel – World Class FFP Travel + Financial + Retail Looking Forward
• Added more than 60 travel
partners
• Expanded the financial • Extend partner relationships
• Air Canada’s Frequent Flyer • Canada’s first mass market, offering with American
travel-rewards financial card – grounded in data and value
Program Express
CIBC Aerogold Visa • Innovate to address evolving
• Established a foundation in competitive landscape and
everyday retail consumer expectations
• Address key program
priorities:
- Burn : Earn
- Renewals of key partners
- Competition tribunal ruling
1990’s
1984 2004 +
16. 1 Strengthen and grow our core
UNIQUELY POSITIONNED FOR
PREMIUM MARKET OWNERSHIP
A position of strength Based on, and building
from, six value levers
• $1.1B1 and growing top-line
Strong Premium
Loyalty Brand
• Strong bottom line delivering Most Attractive Premium
leveraged growth Membership Consumer Data
Base Asset & Insight
• Supporting core partner
Industry Leading Powerful Partner
market leadership Travel Rewards Network
World Class
Marketing
Capabilities
1 FY 2011
17. 1 Strengthen and grow our core Strong
Premium
Loyalty Brand Premium
Most Attractive
Consumer
Membership
Data Asset &
Base
OUR MEMBERSHIP BASE IS THE MOST
Insight
Industry Powerful
Leading Travel Partner
Rewards Network
AFFLUENT IN CANADA, AND STILL GROWING
World Class
Marketing
Capabilities
Premium Consumers Passionate and Engaged Driving Spend and Profit
1.5
88% of our most premium cardholders
prefer to collect Aeroplan miles over
any other program’s currency
30%
85% of our most premium cardholders
collect more miles with Aeroplan than
in any other program
81% of our most premium cardholders
50%
1.0
engage with Aeroplan communications
at least once a month
70%
Canadian Aeroplan
Population
Source: Aimia proprietary research
18. 1 Strengthen and grow our core Strong
Premium
Loyalty Brand Premium
Most Attractive
Consumer
Membership
Data Asset &
Base
LEVERAGING DEEP INSIGHT INTO PREMIUM
Insight
Industry Powerful
Leading Travel Partner
Rewards Network
CANADIAN CONSUMERS
World Class
Marketing
Capabilities
Premium Canadian consumers are Competitive landscape is Next Generation Aeroplan
motivated by seven drivers of satisfaction intense and reframed
customer expectations
Availability
• Build on the outstanding value of our
Flexibility travel rewards product
Simplicity / Certainty
Value • Deliver an unparalleled member
experience, with a focus on next
Simplicity generation loyalty and the member
journey
Exclusivity/
VIP privileges
• Build out the premium coalition to
Engagement Value provide additional relevant
accumulation opportunities
Customization
19. 1 Strengthen and grow our core Strong
Premium
Loyalty Brand Premium
Most Attractive
Consumer
Membership
Data Asset &
Base
WE CONTINUE TO INNOVATE THE MEMBER
Insight
Industry Powerful
Leading Travel Partner
Rewards Network
EXPERIENCE: DESTINATION MILES
World Class
Marketing
Capabilities
A valuable and compelling offer
• One stop shop simplicity to complement air rewards
redemptions
• Unrivalled accumulation opportunity for leisure travel
bookings
• Multiple touch-point opportunities to drive member
engagement
• Extends our data asset on premium Canadian consumers
• Broadens the trusted advisor / travel service provided by
Aeroplan
• Leverages multiple direct channels to drive new sources
of revenue by addressing member needs
20. 1 Strengthen and grow our core Strong
Premium
Loyalty Brand Premium
Most Attractive
Consumer
Membership
Data Asset &
Base
OUR AIR TRAVEL REWARDS VALUE
Insight
Industry Powerful
Leading Travel Partner
Rewards Network
IS UNPARALLED
World Class
Marketing
Capabilities
RBC TD Plat BMO RBC Cap One Amex
Aeroplan Avion Travel World Elite WestJet World Elite Gold
• Industry leadership in rewards value; unrivalled
in business class Classic Flight Rewards Executive
Classic Flight Rewards Economy
• Classic Flight Rewards guarantee 8% of Air 6.6¢
2.1 ¢ = at maximum ticket price
Canada capacity on every route 1.4 ¢ = based on average fare
• Star Alliance provides access to 1,356
airports through 27 member airlines globally 2.1¢
• 1.5 M Air redemptions in 2011 (+8% YOY), 2.2¢ 1.4¢
1.9¢ 2.0¢
1.5¢ 1.5¢
more than any other loyalty program in Canada
1.0¢ 1.0¢
We have performed our own study using a proxy for Canadian travelers
and taking into account fuel & other surcharges, with similar results
Source: Credit Suisse: Aeroplan Analysis
21. 1 Strengthen and grow our core Strong
Premium
Loyalty Brand Premium
Most Attractive
Consumer
Membership
Data Asset &
Base
WE CONTINUE TO BUILD UPON OUTSTANDING
Insight
Industry Powerful
Leading Travel Partner
Rewards Network
VALUE OF OUR TRAVEL REWARDS PRODUCT
World Class
Marketing
Capabilities
Enhanced Flight Shopping Tool Last Minute Travel Next Area of Focus
Address member appetite for
certainty to complement our
industry leading value
506K Star Alliance redemptions in 2011
186K Last Minute Travel redemptions in 2012
• +42% YOY growth
22. 1 Strengthen and grow our core Strong
Premium
Loyalty Brand Premium
Most Attractive
Consumer
Membership
Data Asset &
Base
WELCOME TO THE CLUB BRAND RESONATING
Insight
Industry Powerful
Leading Travel Partner
Rewards Network
WITH PREMIUM CANADIAN CONSUMERS
World Class
Marketing
Capabilities
23. 1 Strengthen and grow our core Strong
Premium
Loyalty Brand Premium
Most Attractive
Consumer
Membership
Data Asset &
Base
DELIVERING PARTNER VALUE:
Insight
Industry Powerful
Leading Travel Partner
Rewards Network
ROI THROUGH DATA AND ANALYTICS
World Class
Marketing
Capabilities
Drive enhanced value delivery to move relationships
along the Strategic Partnership Spectrum Strategically
Integrated and Inter-
High Dependent
Corporate
Strategy
Partner
relationship & Customer
strategic
collaboration Strategy
Loyalty
Strategy
Targeting Life Cycle
ROI
Low Transactional
Low High
Data sharing & interdependency
24. 1 Strengthen and grow our core Strong
Premium
Loyalty Brand Premium
Most Attractive
Consumer
Membership
Data Asset &
Base
Insight
DELIVERING PARTNER VALUE: Industry
Leading Travel
Rewards
World Class
Powerful
Partner
Network
DIRECT ENERGY CASE STUDY Marketing
Capabilities
Global Aimia relationships and Deep customer insight to Supports Direct Energy’s
best practices surgically target most receptive Customer Strategy and drives
customer segments profitability
FROM TO
Acquisition Acquisition
Up-sell Up-sell
Retention Retention
Cost-to-serve Cost-to-serve
25. 1 Strengthen and grow our core Strong
Premium
Loyalty Brand Premium
Most Attractive
Consumer
Membership
Data Asset &
Base
Insight
Industry Powerful
Leading Travel Partner
Rewards Network
EXTENDING OUR PREMIUM COALITION
World Class
Marketing
Capabilities
Expanded, Multi-Year This
imag
e
cann
ot
Relationships
Core Renewals
New Partners:
Retail
New Partners:
Manufacturers
27. 2 Accelerate development of our full suite
NEW LOYALTY REALITIES:
CONSUMER PURCHASE BEHAVIOUR HAS CHANGED Skim
Infinite Whole Multiple
Product
Organic Channels
Options
Glass
Bottles App
Chocolate
Soy
Mobile Local
All Independent
Evaluated
Concurrently International
News Discount
Online
Grocery/
‘c’ stores
Infinite Online Bloggers
App
Influencers &
Triggers
Personal
Direct social
Mail networks
28. 2 Accelerate development of our full suite
PROPRIETARY LOYALTY:
HELPING CLIENTS DRIVE ENGAGEMENT
Consumers Employees Channels
700+ employees
Working for 17 anchor clients,
Supporting 23 programs,
Consumer Loyalty Employee Sales Incentives &
Serving over 14M members, Programs Recognition Rewards
Generating $171M in Gross Billings
Enhancement
Services
29. 2 Accelerate development of our full suite
EXAMPLES: CONSUMER LOYALTY &
EMPLOYEE ENGAGEMENT PROGRAMS
BMO World Elite MasterCard Program BMO Bravo Employee Reward
and Recognition program
End to end Consumer Loyalty Services - Analytics, Customer
Employee Engagement program support -design, web/IT
service, Web & IT Platforms and Rewards fulfillment (travel,
platform, communications, rewards fulfillment
merchandise and gift cards)
30. 2 Accelerate development of our full suite
SIGNIFICANT GROWTH AVAILABLE BEYOND OUR CORE
FINANCIAL INSTITUTIONS VERTICAL
Addressable Proprietary Loyalty Market by Vertical – 2015
($ Millions)
450
$1.2B
350
180
100 90
Significant opportunity in the market in core
verticals – Financial Institutions, Retail &
Consumer Packaged Goods Financial Retail Travel and CPG Telco & Media
Institutions Hospitality
Addressable Proprietary Loyalty Market Service – 2015
Analytics, Strategy, Customer Experience & ($ Millions)
Digital are focus areas
300
225
175 150 150
100
60
IT Media & Analytics Contact Strategy Customer Creative
Messaging Center Experience
31. 2 Accelerate development of our full suite
POSITIONING FOR SUSTAINED PROFITABLE GROWTH
Objectives Priorities
5 1
Strengthen Leadership in Core Financial SUPPORT
BUILD OUT
Institutions Vertical FULL
AIMIA MARKET
PROPRIETARY
LEADERSHIP
OFFERING
Diversify Revenue Across New Verticals
4 2
INVEST IN MARKET
ENHANCEMENT LEADING
Drive Growth Through Bringing Next SERVICES REWARDS
Generation Loyalty Products To Market PLATFORMS
3
EXPAND TO
Leverage Unique Capabilities For Aimia’s NEW
International Markets VERTICALS
32. SUPPORT BUILD OUT
2 Accelerate development of our full suite AIMIA
MARKET
FULL
PROPRIETAR
LEADERSHIP Y OFFERING
INVEST IN MARKET
ENHANCEMENT LEADING
SERVICES REWARDS
BUILD OUT FULL LOYALTY OFFERING
PLATFORMS
EXPAND TO
NEW
VERTICALS
LOYALTY Loyalty
Digital Customer
LOYALTY
STRATEGY Strategy
Loyalty Experience
Blueprint
STRAEGY
LOYALTY
LOYALTY Liability
Modeling &
ANALYTICS
ANALYTICS Management
Engagement
Reward & Partner Social Revenue
LOYALTY Management Loyalty (Cardlytics, Daily
OPERATIONS Deals, Affinity Malls)
33. SUPPORT BUILD OUT
2 Accelerate development of our full suite AIMIA
MARKET
FULL
PROPRIETAR
LEADERSHIP Y OFFERING
BUILD OUT FULL LOYALTY OFFERING – INVEST IN
ENHANCEMENT
SERVICES
MARKET
LEADING
REWARDS
PLATFORMS
DATA DRIVEN LOYALTY STRATEGY EXPAND TO
NEW
VERTICALS
Leveraging Aimia’s Loyalty expertise, we are building a
new business to drive data driven Loyalty Strategy Every
step of the
Emerging purchase
business models journey
Digital
C-suite
Customer Loyalty Data
Strategy
Customer
Experience
Social +200
34. SUPPORT BUILD OUT
2 Accelerate development of our full suite AIMIA
MARKET
FULL
PROPRIETAR
LEADERSHIP Y OFFERING
INVEST IN MARKET
ENHANCEMENT LEADING
SERVICES REWARDS
PLATFORMS
MARKET LEADING REWARDS PLATFORMS EXPAND TO
NEW
VERTICALS
Invest to strengthen leadership in Travel
Merchandise and gift card rewards business
• Rewards platforms updates –
heavy investments paying off
• New features showing 10+%
increase in conversion
• 3 year roadmap will drive core
rewards fulfillment growth
• Heavy emphasis on digital
35. SUPPORT BUILD OUT
2 Accelerate development of our full suite AIMIA
MARKET
FULL
PROPRIETAR
LEADERSHIP Y OFFERING
EXPAND TO NEW VERTICALS – INVEST IN
ENHANCEMENT
SERVICES
MARKET
LEADING
REWARDS
PLATFORMS
HUSKY ENERGY CASE STUDY EXPAND TO
NEW
VERTICALS
Husky’s Strategic Aimia’s end to end Early Results
Loyalty Needs value proposition
• Deeper relationships and brand 11,000 Registered Members
differentiation per week
• Compelling relevant proposition,
across all audiences
• Seamless cross-channel experience 77% Greater Fuel Volumes
• Ongoing strategic loyalty support
Monetize Deliver • Program strategy & design 15% Greater Ancillary Sales
• Loyalty analytics
• Program liability management
Measure • Multi channel communications 4.2 transactions per month
Optimize
& Analyze
• Rewards fulfilment
35
36. SUPPORT BUILD OUT
2 Accelerate development of our full suite AIMIA
MARKET
FULL
PROPRIETAR
LEADERSHIP Y OFFERING
INVEST IN MARKET
ENHANCEMENT LEADING
SERVICES REWARDS
PLATFORMS
INVEST IN ENHANCEMENT SERVICES EXPAND TO
NEW
VERTICALS
Strengthen leadership position in Canada
through continued product innovation
Export ES to Aimia’s coalition programs
around the globe
Export credit card model to new growth /
developing markets:
• Adopting an incubator approach to enter selected countries in APAC
where Aimia has a footprint
• LOI signed with Thanachart Bank, Thailand to launch 3 Enhancement
Services products
37. SUPPORT BUILD OUT
2 Accelerate development of our full suite AIMIA
MARKET
FULL
PROPRIETAR
LEADERSHIP Y OFFERING
INVEST IN MARKET
ENHANCEMENT LEADING
SERVICES REWARDS
PLATFORMS
SUPPORT AIMIA MARKET LEADERSHIP EXPAND TO
NEW
VERTICALS
Supporting Aimia’s market leadership in Canada
• Driven several millions in synergies over past 12
months
• Non Air rewards procurement
• Launch of Destination miles
• New e-catalogue in 2012 – cash + points, tickets, e-
vouchers, m-certs
• Aeroplan Enhancement services trial
38. 3 Build a world class operating system
BUILD A WORLD CLASS OPERATING SYSTEM
Innovation Product Development
Grassroots Aimia Process & Culture
LOYALTY
STRAEGY
LOYALTY LOYALTY LOYALTY LOYALTY
ANALYTICS STRATEGY ANALYTICS OPERATIONS
Productivity Skills / Capabilities
• Regional shared services model • Data and analytics
• Next wave of synergies e.g. • Strategy & account management
processes and systems • Business intelligence
39. One
MAXIMISING THE ‘FULL SUITE’ Successful
Team
OPPORTUNITY IN CANADA
Where we started Where we are today Where we are going
New Models
COALITION New
LOYALTY ventures
COALITION LOYALTY PROPRIETARY
LOYALTY ANALYTICS LOYALTY
PROPRIETARY LOYALTY
LOYALTY ANALYTICS
IntelligentShopper
Solutions
IntelligentShopper
Solutions