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FULL SUITE OPPORTUNITY
Vince Timpano
President and Chief Executive Officer, Canada
LEVERAGING A STRONG FOUNDATION TO ACTIVELY
BUILD OUR FULL-SUITE OF PRODUCTS & SERVICES
LOYALTY
ANALYTICS
COALITION
LOYALTY
Collects, analyzes
and derives actionable
insight from customer
data to deliver
measurable marketing
ROI for our
clients and partners
Manages Canada’s
flagship premium
multi-partner
loyalty program
PROPRIETARY
LOYALTY
Designs, builds and
manages customer and
employee
loyalty programs for
individual clients
Intelligent Shopper
Solutions
•
•
•
•
4.6M members
>75 partners,150 brands
5,000 retail locations
1.5M travel redemptions
•
1 grocery anchor client
•
10 CPGs signed
1 AEBITDA / Total Gross Billings
•
•
•
>65 clients
23 programs
> 14M members
Canada Overview (FY 2011)
Total Gross Billings
$1.3B
AEBITDA
$373M
Margin1
29%
Employees
1,895
DELIVERING SUSTAINED HEALTHY
FINANCIAL PERFORMANCE
Gross Billings (Millions)
+11%
1,047
2009
Consistent delivery of leveraged growth
1,249
1,299
2010
2011
Gross Margin1 (Millions)
+20%
Healthy and growing margins
419
498
2009
2010
604
Driving productivity to enable investment
Important contributor to Aimia globally
2011
AEBITDA (Millions)
+16%
277
2009
Proprietary Loyalty
1 Before depreciation and amortization
Aeroplan
338
373
2010
2011
A STRONG HISTORY OF IMPORTANT INDUSTRY AND
COMMUNITY RECOGNITION AND SUPPORT
Employees
Commercial
Best Airline Credit Card (2009,2010,2011,2012)
4 years running
Airline Program of the Year (2010, 2011)
Best Airline Promotion for Earning (2010, 2011)
Best Airline Redemption Ability (2010, 2011)
Best Customer Service (2011)
Community
BUILDING ON RECENT ACCOMPLISHMENTS AND
CONTINUING TO INVEST FOR FUTURE GROWTH
2010
New Aeroplan brand launch
supported by 25% increase in
marketing
Investments in new ventures
2011
Enhanced Flight Search Tool
2012
Significant savings in
productivity
Proprietary Rewards Platforms
Digital enhancements
Distinctive Capabilities
Air redemption
volumes up 12%
Launch of Destination Miles
• Innovation
• Business Intelligence
• Data & Analytics
WHILE LOYALTY IS WELL DEVELOPED IN CANADA,
SIGNIFICANT POTENTIAL FOR GROWTH REMAINS
Growth Potential ($Billions)
Market Characteristics
World’s most sophisticated and developed
loyalty market
$6B
Consumers
- 9 / 10 Canadians belong to at least
1 loyalty program
- 6.5 programs per household
- Over 90 million loyalty program memberships
Loyalty currently capturing only 50% of total household expenditures
Current
Aimia
Penetration
1.31.3 3.0
Market
Opportunity
3.0
1.8 1.8
Business
- Domestic and global loyalty services leaders
- Emerging and new payment technologies / players
Other
Significant further growth available in Canadian Market
• Deeper loyalty penetration of consumer spending
• Evolution of loyalty value chain brings new opportunity
Source: PMB, Aimia proprietary research
WE SEE SIGNIFICANT ROOM TO GROW BEYOND
OUR CURRENT FOOTPRINT
Sources of Growth
Addressable loyalty market size by 2015 ($ Millions)
800
Deeper Penetration of existing
clients / partners
$3B
650
600
400
New clients in already active
sectors / verticals
300
250
Underpenetrated and / or
new sectors
Financial Grocery and
Institutions Pharmacy
Retail
CPG
Telco and
Media
Other
THE TRADITIONAL LOYALTY VALUE CHAIN IS
BEING TRANSFORMED, CREATING OPPORTUNITIES
WHAT I BUY
EVERY
CONSUMER
ACTION
CREATES DATA
ALWAYS ‘ON’’
CONSUMERS
SEARCH
QUOTE
What I think
RECOMMEND
What I’m interested in
Where I am
MOBILE DEVICE
& PAYMENTS
REVIEW
What I watch
What I read
Who I talk to
What I do
SOCIAL
NETWORKS
What I’ll do next
What I aspire to
WE ARE UNIQUELY POSITIONED TO
TAKE ADVANTAGE OF THESE NEW OPPORTUNITIES
Basic
Customer Loyalty Needs
are becoming more sophisticated
Our expanding portfolio of businesses covers
the entire loyalty spectrum
Deliver customer value to fuel increased sales
COALITION
LOYALTY
Complex
Optimize contribution of core customer segments,
with focus on key profitability drivers
Optimize marketing ROI, and commercialize
loyalty investment
PROPRIETARY
LOYALTY
LOYALTY
ANALYTICS
Intelligent Shopper
Solutions
LOOKING FORWARD: OUR VISION AND OBJECTIVES
Vision
Canada's recognized
Objectives
1
Strengthen and grow our core
2
Accelerate the development of our full suite
3
Build a world class operating system
4
Drive Aimia brand awareness and reputation
5
Create an inspiring and highly engaged work environment
(best people, best culture)
leader in loyalty
A FEW ADDITIONAL THOUGHTS
COMPETITION
TRIBUNAL
RULING
KEY
PARTNER
RENEWALS
2013 MILEAGE
EXPIRY
STRENGTHEN AND
GROW OUR CORE
Kevin O’Brien
Chief Commercial Officer, Aeroplan
1
Strengthen and grow our core
AEROPLAN:
CANADA’S FLAGSHIP PREMIUM COALITION
Canada’s Most Affluent
Member Base
4.6M
Actives
Unique and Flexible set of Partnership Models
EXCLUSIVE
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
34M Canadians
PROMOTIONAL
& OTHER
1
Strengthen and grow our core
READY TO EMBARK ON THE NEXT ERA OF LEADERSHIP
Travel + Financial
Travel – World Class FFP
• Added more than 60 travel
partners
• Air Canada’s Frequent Flyer
• Canada’s first mass market,
travel-rewards financial card –
CIBC Aerogold Visa
Program
Travel + Financial + Retail
Looking Forward
• Expanded the financial
• Extend partner relationships
offering with American
Express
• Established a foundation in
everyday retail
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
1990’s
1984
2004 +
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
leveraged growth
• Supporting core partner
market leadership
Most Attractive
Membership
Base
Premium
Consumer Data
Asset & Insight
Industry Leading
Travel Rewards
Powerful Partner
Network
World Class
Marketing
Capabilities
1 FY
2011
1
Strengthen and grow our core
OUR MEMBERSHIP BASE IS THE MOST
AFFLUENT IN CANADA, AND STILL GROWING
Premium Consumers
Passionate and Engaged
Most Attractive
Membership
Base
Industry
Leading Travel
Rewards
Strong
Premium
Loyalty Brand
World Class
Marketing
Capabilities
Driving Spend and Profit
1.5
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
1.0
Canadian
Population
Aeroplan
Source: Aimia proprietary research
30%
50%
70%
Premium
Consumer
Data Asset &
Insight
Powerful
Partner
Network
1
Strengthen and grow our core
LEVERAGING DEEP INSIGHT INTO PREMIUM
CANADIAN CONSUMERS
Premium Canadian consumers are
motivated by seven drivers of satisfaction
Competitive landscape is
intense and reframed
customer expectations
Most Attractive
Membership
Base
Industry
Leading Travel
Rewards
Strong
Premium
Loyalty Brand
World Class
Marketing
Capabilities
Next Generation Aeroplan
Availability
Value
Simplicity
Exclusivity/
VIP privileges
Engagement
Customization
• Build on the outstanding value of our
travel rewards product
Simplicity / Certainty
Flexibility
• Deliver an unparalleled member
experience, with a focus on next
generation loyalty and the member
journey
Value
• Build out the premium coalition to
provide additional relevant
accumulation opportunities
Premium
Consumer
Data Asset &
Insight
Powerful
Partner
Network
1
Strengthen and grow our core
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
Most Attractive
Membership
Base
Industry
Leading Travel
Rewards
Strong
Premium
Loyalty Brand
World Class
Marketing
Capabilities
Premium
Consumer
Data Asset &
Insight
Powerful
Partner
Network
1
Strengthen and grow our core
Most Attractive
Membership
Base
OUR AIR TRAVEL REWARDS VALUE
IS UNPARALLED
Aeroplan
• Industry leadership in rewards value; unrivalled
in business class
• Classic Flight Rewards guarantee 8% of Air
Canada capacity on every route
Cap One
TD Plat
BMO
RBC
Travel World Elite WestJet World Elite
Classic Flight Rewards
Classic Flight Rewards
World Class
Marketing
Capabilities
Amex
Gold
Executive
Economy
6.6¢
2.1 ¢ = at maximum ticket price
1.4 ¢ = based on average fare
• Star Alliance provides access to 1,356
airports through 27 member airlines globally
• 1.5 M Air redemptions in 2011 (+8% YOY),
more than any other loyalty program in Canada
RBC
Avion
Industry
Leading Travel
Rewards
Strong
Premium
Loyalty Brand
2.1¢
2.2¢
1.4¢
1.5¢
1.0¢
1.9¢
1.5¢
2.0¢
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
Premium
Consumer
Data Asset &
Insight
Powerful
Partner
Network
1
Strengthen and grow our core
WE CONTINUE TO BUILD UPON OUTSTANDING
VALUE OF OUR TRAVEL REWARDS PRODUCT
Enhanced Flight Shopping Tool
Last Minute Travel
Most Attractive
Membership
Base
Industry
Leading Travel
Rewards
Strong
Premium
Loyalty Brand
World Class
Marketing
Capabilities
Next Area of Focus
Address member appetite for
certainty to complement our
industry leading value
506K Star Alliance redemptions in 2011
• +42% YOY growth
186K Last Minute Travel redemptions in 2012
Premium
Consumer
Data Asset &
Insight
Powerful
Partner
Network
1
Strengthen and grow our core
WELCOME TO THE CLUB BRAND RESONATING
WITH PREMIUM CANADIAN CONSUMERS
Most Attractive
Membership
Base
Industry
Leading Travel
Rewards
Strong
Premium
Loyalty Brand
World Class
Marketing
Capabilities
Premium
Consumer
Data Asset &
Insight
Powerful
Partner
Network
1
Strengthen and grow our core
DELIVERING PARTNER VALUE:
ROI THROUGH DATA AND ANALYTICS
Drive enhanced value delivery to move relationships
along the Strategic Partnership Spectrum
Strategically
Integrated and InterDependent
High
Corporate
Strategy
Partner
relationship &
strategic
collaboration
Customer
Strategy
Loyalty
Strategy
Targeting
Low
Life Cycle
ROI
Transactional
High
Low
Data sharing & interdependency
Most Attractive
Membership
Base
Industry
Leading Travel
Rewards
Strong
Premium
Loyalty Brand
World Class
Marketing
Capabilities
Premium
Consumer
Data Asset &
Insight
Powerful
Partner
Network
1
Strengthen and grow our core
Most Attractive
Membership
Base
DELIVERING PARTNER VALUE:
DIRECT ENERGY CASE STUDY
Global Aimia relationships and
best practices
Deep customer insight to
surgically target most receptive
customer segments
Industry
Leading Travel
Rewards
Strong
Premium
Loyalty Brand
World Class
Marketing
Capabilities
Supports Direct Energy’s
Customer Strategy and drives
profitability
FROM
TO
Acquisition
Acquisition
Up-sell
Up-sell
Retention
Retention
Cost-to-serve
Cost-to-serve
Premium
Consumer
Data Asset &
Insight
Powerful
Partner
Network
1
Strengthen and grow our core
Most Attractive
Membership
Base
EXTENDING OUR PREMIUM COALITION
Expanded, Multi-Year
Relationships
Core Renewals
New Partners:
Retail
New Partners:
Manufacturers
This
imag
e
cann
ot
Industry
Leading Travel
Rewards
Strong
Premium
Loyalty Brand
World Class
Marketing
Capabilities
Premium
Consumer
Data Asset &
Insight
Powerful
Partner
Network
ACCELERATE DEVELOPMENT
OF OUR FULL SUITE
Michael O’Sullivan
President, Proprietary Loyalty, Canada
2
Accelerate development of our full suite
NEW LOYALTY REALITIES:
CONSUMER PURCHASE BEHAVIOUR HAS CHANGED
Skim
Infinite
Product
Options
Whole
Multiple
Channels
Organic
Glass
Bottles
App
Chocolate
Soy
Mobile
Local
Independent
All
Evaluated
Concurrently
International
Discount
News
Online
Grocery/
‘c’ stores
Infinite
Influencers &
Triggers
Online
App
Direct
Mail
Bloggers
Personal
social
networks
2
Accelerate development of our full suite
PROPRIETARY LOYALTY:
HELPING CLIENTS DRIVE ENGAGEMENT
Consumers
Employees
Channels
Consumer Loyalty
Programs
Employee
Recognition
Sales Incentives &
Rewards
700+ employees
Working for 17 anchor clients,
Supporting 23 programs,
Serving over 14M members,
Generating $171M in Gross Billings
Enhancement
Services
2
Accelerate development of our full suite
EXAMPLES: CONSUMER LOYALTY &
EMPLOYEE ENGAGEMENT PROGRAMS
BMO World Elite MasterCard Program
End to end Consumer Loyalty Services - Analytics, Customer
service, Web & IT Platforms and Rewards fulfillment (travel,
merchandise and gift cards)
BMO Bravo Employee Reward
and Recognition program
Employee Engagement program support -design, web/IT
platform, communications, rewards fulfillment
2
Accelerate development of our full suite
SIGNIFICANT GROWTH AVAILABLE BEYOND OUR CORE
FINANCIAL INSTITUTIONS VERTICAL
Addressable Proprietary Loyalty Market by Vertical – 2015
($ Millions)
$1.2B
450
350
180
Significant opportunity in the market in core
verticals – Financial Institutions, Retail &
Consumer Packaged Goods
Analytics, Strategy, Customer Experience &
Digital are focus areas
Financial
Institutions
Retail
Travel and
Hospitality
100
90
CPG
Telco & Media
Addressable Proprietary Loyalty Market Service – 2015
($ Millions)
300
IT
225
Media &
Messaging
175
Analytics
150
Contact
Center
150
Strategy
100
Customer
Experience
60
Creative
2
Accelerate development of our full suite
POSITIONING FOR SUSTAINED PROFITABLE GROWTH
Objectives
Strengthen Leadership in Core Financial
Institutions Vertical
Diversify Revenue Across New Verticals
Drive Growth Through Bringing Next
Generation Loyalty Products To Market
Leverage Unique Capabilities For Aimia’s
International Markets
Priorities
5
1
SUPPORT
AIMIA MARKET
LEADERSHIP
BUILD OUT
FULL
PROPRIETARY
OFFERING
4
2
MARKET
LEADING
REWARDS
PLATFORMS
INVEST IN
ENHANCEMENT
SERVICES
3
EXPAND TO
NEW
VERTICALS
2
SUPPORT
AIMIA
MARKET
LEADERSHIP
Accelerate development of our full suite
INVEST IN
ENHANCEMENT
SERVICES
BUILD OUT FULL LOYALTY OFFERING
LOYALTY
LOYALTY
STRATEGY
STRAEGY
Loyalty
Strategy
Blueprint
LOYALTY
LOYALTY
ANALYTICS
ANALYTICS
LOYALTY
OPERATIONS
Digital
Loyalty
EXPAND TO
NEW
VERTICALS
Customer
Experience
Liability
Modeling &
Management
Reward & Partner
Management
Social
Loyalty
BUILD OUT
FULL
PROPRIETAR
Y OFFERING
Engagement
Revenue
(Cardlytics, Daily
Deals, Affinity Malls)
MARKET
LEADING
REWARDS
PLATFORMS
2
SUPPORT
AIMIA
MARKET
LEADERSHIP
Accelerate development of our full suite
BUILD OUT FULL LOYALTY OFFERING –
DATA DRIVEN LOYALTY STRATEGY
Leveraging Aimia’s Loyalty expertise, we are building a
new business to drive data driven Loyalty Strategy
Emerging
business models
INVEST IN
ENHANCEMENT
SERVICES
BUILD OUT
FULL
PROPRIETAR
Y OFFERING
MARKET
LEADING
REWARDS
PLATFORMS
EXPAND TO
NEW
VERTICALS
Every
step of the
purchase
journey
Digital
C-suite
Customer Loyalty
Strategy
Data
Customer
Experience
Social
+200
2
Accelerate development of our full suite
SUPPORT
AIMIA
MARKET
LEADERSHIP
INVEST IN
ENHANCEMENT
SERVICES
MARKET LEADING REWARDS PLATFORMS
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
BUILD OUT
FULL
PROPRIETAR
Y OFFERING
MARKET
LEADING
REWARDS
PLATFORMS
EXPAND TO
NEW
VERTICALS
2
SUPPORT
AIMIA
MARKET
LEADERSHIP
Accelerate development of our full suite
EXPAND TO NEW VERTICALS –
HUSKY ENERGY CASE STUDY
Husky’s Strategic
Loyalty Needs
Aimia’s end to end
value proposition
• Deeper relationships and brand
differentiation
INVEST IN
ENHANCEMENT
SERVICES
BUILD OUT
FULL
PROPRIETAR
Y OFFERING
MARKET
LEADING
REWARDS
PLATFORMS
EXPAND TO
NEW
VERTICALS
Early Results
11,000 Registered Members
per week
• Compelling relevant proposition,
across all audiences
77% Greater Fuel Volumes
• Seamless cross-channel experience
• Ongoing strategic loyalty support
Monetize
Deliver
• Program strategy & design
15% Greater Ancillary Sales
• Loyalty analytics
• Program liability management
Measure
& Analyze
Optimize
• Multi channel communications
4.2 transactions per month
• Rewards fulfilment
35
2
Accelerate development of our full suite
SUPPORT
AIMIA
MARKET
LEADERSHIP
INVEST IN
ENHANCEMENT
SERVICES
INVEST IN ENHANCEMENT SERVICES
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
BUILD OUT
FULL
PROPRIETAR
Y OFFERING
MARKET
LEADING
REWARDS
PLATFORMS
EXPAND TO
NEW
VERTICALS
2
Accelerate development of our full suite
SUPPORT
AIMIA
MARKET
LEADERSHIP
INVEST IN
ENHANCEMENT
SERVICES
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, evouchers, m-certs
•
Aeroplan Enhancement services trial
BUILD OUT
FULL
PROPRIETAR
Y OFFERING
MARKET
LEADING
REWARDS
PLATFORMS
EXPAND TO
NEW
VERTICALS
3
Build a world class operating system
BUILD A WORLD CLASS OPERATING SYSTEM
Innovation
Product Development
Grassroots Aimia Process & Culture
LOYALTY
STRAEGY
LOYALTY
ANALYTICS
Productivity
•
•
Regional shared services model
Next wave of synergies e.g.
processes and systems
LOYALTY
STRATEGY
LOYALTY
ANALYTICS
LOYALTY
OPERATIONS
Skills / Capabilities
•
•
•
Data and analytics
Strategy & account management
Business intelligence
One
Successful
Team
MAXIMISING THE ‘FULL SUITE’
OPPORTUNITY IN CANADA
Where we started
Where we are today
Where we are going
New Models
COALITION
LOYALTY
COALITION
LOYALTY
LOYALTY
ANALYTICS
New
ventures
PROPRIETARY
LOYALTY
PROPRIETARY
LOYALTY
LOYALTY
ANALYTICS
IntelligentShopper
Solutions
IntelligentShopper
Solutions
THANK YOU