investor day 2012: canada

Vince TimpanoPresident and Chief Executive Officer, Canada

FULL SUITE OPPORTUNITY

LEVERAGING A STRONG FOUNDATION TO ACTIVELY BUILD OUR FULL-SUITE OF PRODUCTS & SERVICES

• 4.6M members• >75 partners,150 brands• 5,000 retail locations• 1.5M travel redemptions

• 1 grocery anchor client

• 10 CPGs signed

• >65 clients• 23 programs• > 14M members

LOYALTYANALYTICS

Collects, analyzes and derives actionable insight from customer

data to deliver measurable marketing

ROI for our clients and partners

COALITION LOYALTY

Manages Canada’s flagship premium

multi-partner loyalty program

PROPRIETARYLOYALTY

Designs, builds and manages customer and

employee loyalty programs for

individual clients

Intelligent Shopper Solutions

Canada Overview (FY 2011)

Total Gross Billings $1.3B

AEBITDA $373M

Margin 1 29%

Employees 1,895

1 AEBITDA / Total Gross Billings

419

+20%

2011

604

2010

498

2009

277

+16%

2011

373

2010

338

2009

1,047

2010

1,249 1,299

2009

+11%

2011

DELIVERING SUSTAINED HEALTHYFINANCIAL PERFORMANCE

Gross Billings (Millions)

AEBITDA (Millions)

Gross Margin 1 (Millions)Consistent delivery of leveraged growth

Healthy and growing margins

Driving productivity to enable investment

Important contributor to Aimia globally

1 Before depreciation and amortization

Proprietary Loyalty

Aeroplan

A STRONG HISTORY OF IMPORTANT INDUSTRY AND COMMUNITY RECOGNITION AND SUPPORT

Commercial CommunityEmployees

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

BUILDING ON RECENT ACCOMPLISHMENTS AND CONTINUING TO INVEST FOR FUTURE GROWTH

2010 2011 2012

Distinctive Capabilities

• Innovation• Business Intelligence

• Data & Analytics

Proprietary Rewards PlatformsSignificant savings in productivity

New Aeroplan brand launch supported by 25% increase in

marketing

Enhanced Flight Search Tool

Air redemption volumes up 12%

Investments in new ventures Digital enhancementsLaunch of Destination Miles

3.01.3

1.8

WHILE LOYALTY IS WELL DEVELOPED IN CANADA, SIGNIFICANT POTENTIAL FOR GROWTH REMAINS

World’s most sophisticated and developedloyalty market

Consumers- 9 / 10 Canadians belong to at least

1 loyalty program- 6.5 programs per household- Over 90 million loyalty program memberships

Business- Domestic and global loyalty services leaders- Emerging and new payment technologies / players

Market Characteristics Growth Potential ($Billions)

$6B

Significant further growth available in Canadian Market• Deeper loyalty penetration of consumer spending• Evolution of loyalty value chain brings new opportunity

Current Aimia

PenetrationMarket

Opportunity

Other

Loyalty currently capturing only 50% of total household expenditures

Source: PMB, Aimia proprietary research

3.01.8

1.3

WE SEE SIGNIFICANT ROOM TO GROW BEYONDOUR CURRENT FOOTPRINT

800

650600

400

300250

Telco and Media

CPGRetailGrocery and Pharmacy

Financial Institutions

Other

Deeper Penetration of existing clients / partnersDeeper Penetration of existing clients / partners

New clients in already active sectors / verticalsNew clients in already active sectors / verticals

Underpenetrated and / or new sectorsUnderpenetrated and / or new sectors

Sources of Growth Addressable loyalty market size by 2015 ($ Millions)

$3B

THE TRADITIONAL LOYALTY VALUE CHAIN ISBEING TRANSFORMED, CREATING OPPORTUNITIES

Who I talk to

What I do What I aspire to

What I’ll do next

WHAT I BUY

What I think

Where I am

What I’m interested in

What I watch

SEARCH

QUOTE

REVIEW

RECOMMEND

MOBILE DEVICE & PAYMENTS

SOCIAL NETWORKS

ALWAYS ‘‘‘‘ON’’’’CONSUMERS

EVERYCONSUMER ACTION CREATES DATA

What I read

Bas

ic

WE ARE UNIQUELY POSITIONED TO TAKE ADVANTAGE OF THESE NEW OPPORTUNITIES

Customer Loyalty Needs are becoming more sophisticated

Deliver customer value to fuel increased sales

Optimize contribution of core customer segments, with focus on key profitability drivers

Optimize marketing ROI, and commercializeloyalty investment

Com

plex LOYALTY

ANALYTICS

COALITION LOYALTY

PROPRIETARYLOYALTY

Our expanding portfolio of businesses covers the entire loyalty spectrum

Intelligent Shopper Solutions

LOOKING FORWARD: OUR VISION AND OBJECTIVES

Canada's recognized

leader in loyalty

Strengthen and grow our core1

Accelerate the development of our full suite2

Build a world class operating system3

Drive Aimia brand awareness and reputation4

Create an inspiring and highly engaged work environ ment (best people, best culture)5

Vision Objectives

A FEW ADDITIONAL THOUGHTS

COMPETITION TRIBUNAL

RULING

KEY PARTNER

RENEWALS

2013 MILEAGE EXPIRY

Kevin O’BrienChief Commercial Officer, Aeroplan

STRENGTHEN ANDGROW OUR CORE

AEROPLAN: CANADA’S FLAGSHIP PREMIUM COALITION

Canada’s Most Affluent Member Base

4.6MActives

34M Canadians

Leveraging the power of our brand and member base on

behalf of our partners…

…with our members as our partners’ best customers

EXCLUSIVE

CO-EXISTENCE

CONVERSION

PROMOTIONAL & OTHER

Unique and Flexible set of Partnership Models


READY TO EMBARK ON THE NEXT ERA OF LEADERSHIP

Travel – World Class FFP

• Air Canada’s Frequent Flyer Program

Travel + Financial

• Added more than 60 travel partners

• Canada’s first mass market, travel-rewards financial card –CIBC Aerogold Visa

Travel + Financial + Retail

• Expanded the financial offering with American Express

• Established a foundation in everyday retail

• Extend partner relationships grounded in data and value

• Innovate to address evolving competitive landscape and consumer expectations

• Address key program priorities:

- Burn : Earn

- Renewals of key partners

- Competition tribunal ruling

19841990’s

2004 +

Looking Forward


UNIQUELY POSITIONNED FOR PREMIUM MARKET OWNERSHIP

Strong Premium Loyalty Brand

Most Attractive Membership

Base

Premium Consumer Data Asset & Insight

Industry Leading Travel Rewards

Powerful Partner Network

World Class Marketing

Capabilities

A position of strength Based on, and building from, six value levers

• $1.1B1 and growing top-line

• Strong bottom line delivering leveraged growth

• Supporting core partner market leadership

1 FY 2011


OUR MEMBERSHIP BASE IS THE MOST AFFLUENT IN CANADA, AND STILL GROWING

Premium Consumers

30%

50%

70%

Passionate and Engaged Driving Spend and Profit

88% of our most premium cardholders prefer to collect Aeroplan miles over any other program’s currency

85% of our most premium cardholders collect more miles with Aeroplan than in any other program

81% of our most premium cardholders engage with Aeroplan communications at least once a month

Strong Premium

Loyalty BrandMost Attractive Membership

Base

Premium Consumer

Data Asset & Insight

Industry Leading Travel

Rewards



Capabilities

Canadian Population

Aeroplan

1.0

1.5

Source: Aimia proprietary research


LEVERAGING DEEP INSIGHT INTO PREMIUM CANADIAN CONSUMERS

Premium Canadian consumers are motivated by seven drivers of satisfaction

Availability

Flexibility

Value

Simplicity

Exclusivity/VIP privileges

Engagement

Customization

Next Generation Aeroplan

• Build on the outstanding value of ourtravel rewards product

• Deliver an unparalleled member experience, with a focus on next generation loyalty and the member journey

• Build out the premium coalition to provide additional relevant accumulation opportunities

Strong Premium


Base

Premium Consumer



Rewards



Capabilities

Competitive landscape is intense and reframed

customer expectations

Value

Sim

plic

ity /

Cer

tain

ty


WE CONTINUE TO INNOVATE THE MEMBER EXPERIENCE: DESTINATION MILES

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

Strong Premium


Base

Premium Consumer



Rewards



Capabilities


Source: Credit Suisse: Aeroplan Analysis

AeroplanRBC Avion

TD Plat Travel

BMOWorld Elite

RBCWestJet

1.5¢ 1.9¢ 1.5¢2.0¢

Cap OneWorld Elite

2.2¢

2.1 ¢ = at maximum ticket price1.4 ¢ = based on average fare

6.6¢

AmexGold

1.0¢1.0¢

2.1¢

1.4¢

Classic Flight Rewards ExecutiveClassic Flight Rewards Economy

Strong Premium


Base

Premium Consumer



Rewards



Capabilities

OUR AIR TRAVEL REWARDS VALUE IS UNPARALLED

• Industry leadership in rewards value; unrivalled in business class

• Classic Flight Rewards guarantee 8% of Air Canada capacity on every route

• Star Alliance provides access to 1,356airports through 27 member airlines globally

• 1.5 M Air redemptions in 2011 (+8% YOY), more than any other loyalty program in Canada

We have performed our own study using a proxy for C anadian travelers and taking into account fuel & other surcharges, wi th similar results


WE CONTINUE TO BUILD UPON OUTSTANDING VALUE OF OUR TRAVEL REWARDS PRODUCT

Enhanced Flight Shopping Tool Last Minute Travel

Address member appetite for certainty to complement our industry leading value

Next Area of Focus

186K Last Minute Travel redemptions in 2012506K Star Alliance redemptions in 2011

• +42% YOY growth

Strong Premium


Base

Premium Consumer



Rewards



Capabilities


WELCOME TO THE CLUB BRAND RESONATING WITH PREMIUM CANADIAN CONSUMERS

Strong Premium


Base

Premium Consumer



Rewards



Capabilities


DELIVERING PARTNER VALUE: ROI THROUGH DATA AND ANALYTICSDrive enhanced value delivery to move relationships along the Strategic Partnership Spectrum

Strong Premium


Base

Premium Consumer



Rewards



Capabilities

Strategically Integrated and Inter-

Dependent


Low

Low

High

HighData sharing & interdependency

Partner relationship & strategic collaboration

Transactional

Customer Strategy

Life Cycle ROI

Corporate Strategy

Loyalty Strategy

Targeting

DELIVERING PARTNER VALUE: DIRECT ENERGY CASE STUDY

Strong Premium


Base

Premium Consumer



Rewards



Capabilities

Global Aimia relationships and best practices

Deep customer insight to surgically target most receptive

customer segments

Supports Direct Energy’s Customer Strategy and drives

profitability

FROM TO

Acquisition

Up-sell

Retention

Cost-to-serve

Acquisition

Up-sell

Retention

Cost-to-serve


EXTENDING OUR PREMIUM COALITIONExpanded, Multi-Year Relationships

This image cann

ot

Strong Premium


Base

Premium Consumer



Rewards



Capabilities

Core Renewals

New Partners: Retail

New Partners: Manufacturers


Michael O’SullivanPresident, Proprietary Loyalty, Canada

ACCELERATE DEVELOPMENT OF OUR FULL SUITE

NEW LOYALTY REALITIES: CONSUMER PURCHASE BEHAVIOUR HAS CHANGED

Multiple Channels

Mobile Local Independent

Online

International Discount

App

Grocery/‘c’ stores

AllEvaluated

Concurrently

InfiniteInfluencers &

Triggers

Online App

News

Bloggers

Direct Mail

Personal social

networks

Infinite Product Options

Whole

Skim

Organic

Glass Bottles Chocolate

Soy

Accelerate development of our full suite2

PROPRIETARY LOYALTY: HELPING CLIENTS DRIVE ENGAGEMENT

Consumers Employees Channels

Enhancement Services

Consumer Loyalty Programs

Sales Incentives & Rewards

Employee Recognition

700+ employees

Working for 17 anchor clients,

Supporting 23 programs,

Serving over 14M members,

Generating $171M in Gross Billings


End to end Consumer Loyalty Services - Analytics, Customer service, Web & IT Platforms and Rewards fulfillment (travel,

merchandise and gift cards)

EXAMPLES: CONSUMER LOYALTY & EMPLOYEE ENGAGEMENT PROGRAMS

BMO World Elite MasterCard Program BMO Bravo Employe e Reward and Recognition program

Employee Engagement program support -design, web/IT platform, communications, rewards fulfillment


SIGNIFICANT GROWTH AVAILABLE BEYOND OUR CORE FINANCIAL INSTITUTIONS VERTICAL

90100180

350450

Telco & MediaCPGTravel and Hospitality

RetailFinancialInstitutions

Addressable Proprietary Loyalty Market by Vertical – 2015($ Millions)

60100

150150175225

300

CreativeCustomerExperience

StrategyContactCenter

AnalyticsMedia &Messaging

IT

Addressable Proprietary Loyalty Market Service – 2 015($ Millions)

Significant opportunity in the market in core verticals – Financial Institutions, Retail & Consumer Packaged Goods

Analytics, Strategy, Customer Experience & Digital are focus areas

$1.2B


BUILD OUT FULL

PROPRIETARY OFFERING

1

SUPPORT AIMIA MARKET LEADERSHIP

5

INVEST IN ENHANCEMENT

SERVICES

4

EXPAND TO NEW

VERTICALS

3

MARKET LEADING

REWARDS PLATFORMS

2

POSITIONING FOR SUSTAINED PROFITABLE GROWTH

Strengthen Leadership in Core Financial Institutions Vertical

PrioritiesObjectives

Diversify Revenue Across New Verticals

Drive Growth Through Bringing Next Generation Loyalty Products To Market

Leverage Unique Capabilities For Aimia’s International Markets


BUILD OUT FULL LOYALTY OFFERING

LOYALTYSTRAEGY

LOYALTYANALYTICS

LOYALTYSTRATEGY

LOYALTYANALYTICS

LOYALTYOPERATIONS

BUILD OUT FULL


SUPPORT AIMIA

MARKET LEADERSHIP


SERVICES

EXPAND TO NEW

VERTICALS

MARKET LEADING

REWARDS PLATFORMS


Loyalty Strategy Blueprint

Customer Experience

DigitalLoyalty

LiabilityModeling &

Management

Reward & Partner Management

Engagement Revenue

(Cardlytics, Daily Deals, Affinity Malls)

Social Loyalty

BUILD OUT FULL LOYALTY OFFERING –DATA DRIVEN LOYALTY STRATEGY

+200

Leveraging Aimia’s Loyalty expertise, we are buildi ng a new business to drive data driven Loyalty Strategy Every

step of the purchase journey

BUILD OUT FULL


SUPPORT AIMIA

MARKET LEADERSHIP


SERVICES

MARKET LEADING

REWARDS PLATFORMS

EXPAND TO NEW

VERTICALS

Digital

Social

C-suiteCustomer Loyalty Strategy

Data

Emerging business models

Customer Experience


MARKET LEADING REWARDS PLATFORMS

• 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

Invest to strengthen leadership in Travel Merchandise and gift card rewards business

BUILD OUT FULL


SUPPORT AIMIA

MARKET LEADERSHIP


SERVICES

MARKET LEADING

REWARDS PLATFORMS

EXPAND TO NEW

VERTICALS


EXPAND TO NEW VERTICALS –HUSKY ENERGY CASE STUDY

35

Husky’s StrategicLoyalty Needs

•Deeper relationships and brand differentiation

•Compelling relevant proposition, across all audiences

•Seamless cross-channel experience

•Ongoing strategic loyalty support

Aimia’s end to endvalue proposition

•Program strategy & design

•Loyalty analytics

•Program liability management

•Multi channel communications

•Rewards fulfilment

Monetize Deliver

Measure & Analyze

Optimize

Early Results

11,000 Registered Membersper week

77% Greater Fuel Volumes

15% Greater Ancillary Sales

4.2 transactions per month

BUILD OUT FULL


SUPPORT AIMIA

MARKET LEADERSHIP


SERVICES

MARKET LEADING

REWARDS PLATFORMS

EXPAND TO NEW

VERTICALS


INVEST IN ENHANCEMENT SERVICES

Strengthen leadership position in Canada through continued product innovation

Export ES to Aimia’s coalition programsaround 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

BUILD OUT FULL


SUPPORT AIMIA

MARKET LEADERSHIP


SERVICES

MARKET LEADING

REWARDS PLATFORMS

EXPAND TO NEW

VERTICALS


SUPPORT AIMIA MARKET LEADERSHIP

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

BUILD OUT FULL


SUPPORT AIMIA

MARKET LEADERSHIP


SERVICES

MARKET LEADING

REWARDS PLATFORMS

EXPAND TO NEW

VERTICALS


Skills / Capabilities

BUILD A WORLD CLASS OPERATING SYSTEMInnovation Product Development

Productivity

LOYALTYSTRAEGY

LOYALTYANALYTICS

LOYALTYANALYTICS

LOYALTY STRATEGY

LOYALTY OPERATIONS

Grassroots Aimia Process & Culture

• Regional shared services model• Next wave of synergies e.g.

processes and systems

• Data and analytics• Strategy & account management• Business intelligence

Build a world class operating system3

MAXIMISING THE ‘FULL SUITE’OPPORTUNITY IN CANADA

One Successful

Team

Where we started Where we are today

LOYALTYANALYTICS

COALITION LOYALTY

PROPRIETARYLOYALTY

IntelligentShopperSolutions

Where we are going

LOYALTYANALYTICS

COALITION LOYALTY

PROPRIETARYLOYALTY

New ventures

New Models

IntelligentShopperSolutions

THANK YOU

investor day 2012: canada

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