Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - ALLIANCE DATA SYSTEMS CORP | d8k.htm |
 ©2010 ADS Alliance Data Systems, Inc.
Confidential and Proprietary
Alliance Data
Strategic Outlook
NYSE: ADS
Q2 2010
Exhibit 99.1 |
 NYSE:
ADS | Q2 2010 2
©2010 ADS Alliance Data Systems, Inc.
Confidential and Proprietary
A Unique Business Model
Alliance Data is the largest and most comprehensive provider of
transaction-based marketing and loyalty solutions.
Three Platforms: One Model |
 Alliance Data: ~$300 Billion Market in Play
•
Marketing spend is shifting from traditional mass marketing to data-enabled,
multi-channel direct marketing
•
The digital channel spend directed toward transaction-based, ROI
solutions: •
Strong double-digit growth market
•
Still less than 10% of $300+ billion prize
Traditional
Mass
Marketing
Direct and
Digital
Marketing
47%
36%
DMA 2010 Statistical Fact Book; and
Forrester US Interactive Marketing Forecast 2009
$190 Billion
$128 Billion
Alliance Data’s
Addressable
Market
In 2009 $26B
spent in digital,
and expected to
grow to $40B in
2012
NYSE: ADS | Q2 2010
3
©2010 ADS Alliance Data Systems, Inc.
Confidential and Proprietary
Sources: ZenithOptimedia for Core Advertising March
2010; |
 Driving the Shift: The Rise of the Niche Market
•
Highly segmented customer groups are
more difficult to reach
•
ROI-based, data-enabled marketing
programs allow for micro-segmentation to
reach these customers
Source: The Long Tail: Why the Future of Business is Selling Less of
More; Chris Anderson, 2006
Branding
Advertising
Email
Online Ad
Web site
Social Media
-52%
-64%
38%
40%
44%
47%
•
In
face
of
budget
cuts,
CMO’s
shift
spending
to
measureable data-enabled channels
•
Traditional media are losing share and hardest
hit given sheer size of these channels
•
Marketing dollars are moving to interactive
channels as consumers continue their
migration on line
Alliance Data’s
know-how is reaching
micro-customer segments
40% of consumer opportunity
Source: Forrester Research 2009, “Marketing Budgets Suffer Significant
Cuts.” NYSE: ADS | Q2 2010
4
©2010 ADS Alliance Data Systems, Inc.
Confidential and Proprietary |
 NYSE:
ADS | Q2 2010 5
©2010 ADS Alliance Data Systems, Inc.
Confidential and Proprietary
The Alliance Data End-to-End Solution
Three Platforms, One Model
Strategy/
Creative
Analytics
Distribution
Data/
Database
LoyaltyOne
|
Epsilon
|
Private
Label |
 NYSE:
ADS | Q2 2010 6
©2010 ADS Alliance Data Systems, Inc.
Confidential and Proprietary
2010 Guidance
($MM, except per share data)
Pro forma
2009
Guidance
2010
%
Change
Revenues
$2,513
$2,762
10%
Adjusted EBITDA
$734
$792
8%
Core EPS
Excluding non-recurring
$5.16
$4.64
$6.00
$6.00
16%
30%
Affirming 2010 Guidance of $6.00 |
 NYSE:
ADS | Q2 2010 7
©2010 ADS Alliance Data Systems, Inc.
Confidential and Proprietary
Alliance Data’s Safe Harbor Statement and
Forward-Looking Statements
This presentation may contain forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended,
and
Section
21E
of
the
Securities
Exchange
Act
of
1934,
as
amended.
Such
statements
may
use
words
such
as
"anticipate," "believe," "estimate," "expect,"
"intend," "predict," "project" and similar expressions as they relate to us or our
management. When we make forward-looking statements, we are basing them on our
management's beliefs and assumptions, using
information
currently
available
to
us.
Although
we
believe
that
the
expectations
reflected
in
the
forward-looking
statements
are
reasonable,
these
forward-looking
statements
are
subject
to
risks,
uncertainties
and
assumptions,
including
those discussed in our filings with the Securities and Exchange Commission.
If one or more of these or other risks or uncertainties materialize, or if our
underlying assumptions prove to be incorrect, actual results may vary
materially from what we projected. Any forward-looking statements contained in this presentation reflect our
current views with respect to future events and are subject to these and other
risks, uncertainties and assumptions relating to our operations, results of
operations, growth strategy and liquidity. We have no intention, and disclaim any obligation, to
update or revise any forward-looking statements, whether as a result of new
information, future results or otherwise. "Safe Harbor" Statement
under the Private Securities Litigation Reform Act of 1995: Statements in this presentation regarding
Alliance Data Systems Corporation's business which are not historical facts are
"forward-looking statements" that involve risks and
uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those
contained in the forward-looking statements, see "Risk Factors" in the
Company's Annual Report on Form 10-K for the most recently ended fiscal
year. Risk factors may be updated in Item 1A in each of the Company's Quarterly Reports on Form 10-Q
for each quarterly period subsequent to the Company's most recent Form
10-K |
 NYSE:
ADS | Q2 2010 8
©2010 ADS Alliance Data Systems, Inc.
Confidential and Proprietary
Financial Measures
In addition to the results presented in accordance with generally accepted
accounting principles, or GAAP, the Company presents financial measures that
are non-GAAP measures, such as constant currency financial
measures,
adjusted
EBITDA,
adjusted
EBITDA
margin,
core
earnings
and
core
earnings
per
diluted
share.
These non-GAAP financial measures exclude costs associated with the terminated
merger with affiliates of The Blackstone Group and other costs. The Company
believes that these non-GAAP financial measures, viewed in addition to
and not in lieu of the Company’s reported GAAP results, provide useful information to
investors regarding the Company’s performance and overall results of
operations. These metrics are an integral part of the Company’s internal
reporting to measure the performance of reportable segments and the overall
effectiveness of senior management. Reconciliations to comparable GAAP financial measures are
available in the accompanying schedules and on the Company’s website. The
financial measures presented are consistent with the Company’s
historical financial reporting practices. Core earnings and core earnings per
diluted share represent performance measures and are not intended to represent liquidity measures. The
non-GAAP financial measures presented herein may not be comparable to similarly
titled measures presented by other companies, and are not identical to
corresponding measures used in other various agreements or public
filings. |