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TECHNOLOGY CUSTOMER LOYALTY: AIMIA … of Aeroplan Program enhancements and a new financial card...

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Page 1: TECHNOLOGY CUSTOMER LOYALTY: AIMIA … of Aeroplan Program enhancements and a new financial card partnership and associated cardholder ... Mobile Social Real-time ... • Mobile Loyalty

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Page 2: TECHNOLOGY CUSTOMER LOYALTY: AIMIA … of Aeroplan Program enhancements and a new financial card partnership and associated cardholder ... Mobile Social Real-time ... • Mobile Loyalty

TECHNOLOGY ENABLES ROBUST

CUSTOMER LOYALTY: AIMIA LOYALTY

PLATFORMS

Susan Doniz /

Michael Zea

September 18, 2013

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Page 3: TECHNOLOGY CUSTOMER LOYALTY: AIMIA … of Aeroplan Program enhancements and a new financial card partnership and associated cardholder ... Mobile Social Real-time ... • Mobile Loyalty

FORWARD-LOOKING STATEMENT

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Forward-looking statements are included in the following 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”, ”should” and similar terms and phrases, including references to assumptions. Such statements may involve but are not limited to comments 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. Any forecasts, predictions or forward-looking statements cannot be relied upon due to, among other things, changing external events and general uncertainties of the business and its corporate structure. Results indicated in forward-looking statements may differ materially from actual results for a number of reasons, including without limitation, dependency on top Accumulation Partners and clients, the effective implementation of Aeroplan Program enhancements and a new financial card partnership and associated cardholder migration, conflicts of 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 and capacity costs, unfunded future redemption costs, failure to safeguard databases and consumer privacy, changes to coalition loyalty programs, seasonal nature of the business, other factors and prior performance, foreign operations, legal proceedings, reliance on key personnel, labour relations, pension liability, technological disruptions and inability to use third party software, failure to protect intellectual 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 and throughout our public disclosure record on file with the Canadian securities regulatory authorities.

Certain slides of this presentation contain forward-looking statements with respect to certain financial metrics in 2014 and 2015, respectively. These statements are not intended to constitute, nor should they be considered as, financial outlook or guidance within the meaning of applicable securities laws.

The forward-looking statements included in this presentation exclude the effects of fluctuations in currency exchange rates and Aimia Inc. (“Aimia” or the “Corporation”) has made a number of general economic and market assumptions in making these statements, including assumptions regarding the performance of the economies in which the Corporation operates and market competition and tax laws applicable to the Corporation’s operations. In addition, Aimia has made a number of specific assumptions in making these statements, including, (i) a level of growth for Aeroplan’s financial card business that is consistent with the general Canadian premium credit card market, and (ii) growth in the Corporation’s non-Aeroplan related business consistent with the Corporation’s three year plan. The Corporation cautions that the assumptions used to make these statements, although reasonable at the time they were made, may prove to be incorrect or inaccurate. In addition, these statements do not reflect the potential impact of any non-recurring or other special items or of any new material commercial agreements, dispositions, mergers, acquisitions, other business combinations or transactions. The financial impact of these transactions and non-recurring and other special items can be complex and depends on the facts particular to each of them. We therefore cannot describe the expected impact in a meaningful way or in the same way we present known risks affecting our business. Accordingly, our actual results could differ materially from the forward-looking statements made in this presentation.

The forward-looking statements contained herein represent the Corporation’s expectations as of September 18, 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 new information, future events or otherwise, except as required under applicable securities regulations.

For further information, please contact Investor Relations at 416 352 3728 or [email protected].

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INTRODUCTIONS

• Appointed Regional President in Jan 2013 to invigorate US business development and growth

• Former McKinsey Partner where he led the Global Loyalty Marketing Practice; 20+ years of experience in marketing and strategy

• Started career in revenue management and sales for United and American Airlines

• Appointed Global CIO in June 2011 to define the strategy to deliver innovation and growth

• Recipient of Canada’s Most Powerful Women Top 100 in 2011, Trailblazers & Trendsetters category and serves on several boards

• 17 years of experience in Technology, including senior leadership roles at Procter & Gamble

Michael Zea PRESIDENT & CEO – U.S. REGION

Susan Doniz GLOBAL CHIEF INFORMATION OFFICER

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Page 5: TECHNOLOGY CUSTOMER LOYALTY: AIMIA … of Aeroplan Program enhancements and a new financial card partnership and associated cardholder ... Mobile Social Real-time ... • Mobile Loyalty

TECHNOLOGY ENABLES CUSTOMER LOYALTY AND IS CENTRAL TO OUR VALUE PROPOSITION

Mobile Social

Real-time Achievement Analytics

Scale

Interaction Centricity

Insight & Operations

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Page 6: TECHNOLOGY CUSTOMER LOYALTY: AIMIA … of Aeroplan Program enhancements and a new financial card partnership and associated cardholder ... Mobile Social Real-time ... • Mobile Loyalty

Analytics self serve (ISS) currently deployed with CVS Aimia Loyalty Platform in beta testing with US client

US EXAMPLE: DEPLOYING CAPITAL SELECTIVELY TO STRENGTHEN IT PLATFORMS AND COMPETITIVE ADVANTAGE

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US$28 million acquisition of

EIM in August 2012 to

advance position in

business loyalty; integration

nearly complete and client

list intact

US$18 million acquisition of

Smart Button in July 2013

to deliver new “Plug and

Play” solution to SaaS

clients

Leverage

acquisitions to

strengthen

existing

positions and

access new

capabilities

Invest in global

product-based

platforms

which address

US needs but

enable

economies of

scale

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EVOLVING OUR OPERATING MODEL: PURSUING A PRODUCT-BASED APPROACH TO TECHNOLOGY

• Maintain a catalogue of products

• Consolidate and export products across regions

• “Innovate often and fail fast” approach for new ideas

• Manage Aimia global products

• Establish Global Product Center to for our product suite

• Standardize for optimization and speed

• Represent regional market needs

• Integrate regional and global products to create solutions

• Leverage regional and global centers for scale delivery

Global

Product

Management

Global Product

Strategy & Management

Regional Execution & Delivery

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US EXAMPLE: ADDRESSING 75% OF THE US RETAIL IT PLATFORM MARKET WITH PRODUCTIZED SOLUTIONS

• Straightforward needs/buyer

• Typically a single program and brand

• “DIY” solution; $50K-1M spend

$500M Mid-Market ~10,000 retailers

$400M

Small Business ~200,000 retailers

$1.6B

US Retail Loyalty Platform Market

• Complex needs/buyer

• Typically global or multi-brand company

• Comprehensive solution with significant system interconnections; $2-5M spend

$700M

Enterprise ~300 retailers

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Page 9: TECHNOLOGY CUSTOMER LOYALTY: AIMIA … of Aeroplan Program enhancements and a new financial card partnership and associated cardholder ... Mobile Social Real-time ... • Mobile Loyalty

Verticals Retail CPG

Fin Svcs

BU’s Proprietary Coalition Regions

EMEA, US, CAN & APAC

Winning

Loyalty

Platform

Robust Feature Set

1,000+

Requirements

Functional Groupings

160 Core

Functions

Prioritization Process

Ongoing

Release

Plan

3rd Party Experts

External

Validation

Distinctive Functionality

• Loyalty Toolkit

• Dashboard Reporting

• Local or Store Manager Portal

• Social by Design

• Gamification – Challenges

• Real-Time Offer Management

• Location-Based Services

• Mobile Loyalty Applications

• Reduced Time to Market

Competitive Functionality

Baseline Functionality

OUR ENTERPRISE PLATFORM LEVERAGES EXPERTISE FROM ACROSS OUR BUSINESSES GLOBALLY

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Page 10: TECHNOLOGY CUSTOMER LOYALTY: AIMIA … of Aeroplan Program enhancements and a new financial card partnership and associated cardholder ... Mobile Social Real-time ... • Mobile Loyalty

THE AIMIA LOYALTY PLATFORM PROVIDES OUR ENTERPRISE SOLUTION FOR COMPLEX PROGRAMS

Aimia Loyalty Platform

Groups & Households

Partner Monetisation

Interactions & Transactions

Global Currencies

Advanced marketing tools for complex program management

Customer Service

Members

Marketer

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Demographic program level

segment targeting

80/20 configuration

& customization

Multi-program regional by brand

by channel

Page 11: TECHNOLOGY CUSTOMER LOYALTY: AIMIA … of Aeroplan Program enhancements and a new financial card partnership and associated cardholder ... Mobile Social Real-time ... • Mobile Loyalty

First 10 SaaS clients

First 10M+ member

retail client

First 1M+ member retail client

50 SaaS clients

Acquired by

Founded

1994 2000 2007 2008 2012 2013

SMART BUTTON HAS BEEN IN BUSINESS SINCE 1994, TARGETING THE RETAIL MID-MARKET WITH 50+ CLIENTS

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SMART BUTTON DELIVERS SELF-SERVICE PROGRAM MANAGEMENT WITH AN OUT-OF-THE BOX SOLUTION

Simple Configuration

Tools

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Customer Experience Product Approach Continuous Innovation

• Enhanced user experience design to drive increased program engagement

• Intuitive tools that put control in the hands of the marketer

• Flexible set of platforms targeted to address specific market segments to win

• Features and delivery models to match solutions with buyer needs to drive value

• Innovative products that are cost efficient to deal with today’s marketing challenges

• Combining deep and broad loyalty expertise with leading loyalty technology features

OUR PRODUCT APPROACH WILL CONTINUE TO EVOLVE, BUT WILL ALWAYS START WITH THE CUSTOMER

Our People and Platform Capabilities Combined to Deliver Results

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OUR IT PRODUCTS ARE DESIGNED TO ENABLE OUR STRATEGY BY DELIVERING OUR LOYALTY EXPERTISE

“Be the recognized global leader in loyalty, inspiring brands to build

unparalleled relationships with their customers by

making engagement more rewarding, lasting, and fun”

Break away from the pack

Codify and replicate successful models globally

Strengthen our current position

Evolve our operating model

Develop or acquire solutions for new market segments

Strategic Aspiration Strategic Pillars Focus Areas

Scalable global product model in development and delivery

Embed our loyalty experience into our Enterprise platform

Match platforms and delivery models to specific market segments

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