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| 8-K - FORM 8-K - ALLIANCE DATA SYSTEMS CORP | form_8k.htm |
Alliance DataDeutsche Bank Virtual Technology Conference © 2021 ADS Alliance Data Systems,
Inc. September 9, 2021 Ralph AndrettaPresident & CEO Exhibit 99.1
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements give our expectations or forecasts of future events and can generally be identified by the use of words such as "believe," "expect," "anticipate,"
"estimate," "intend," "project," "plan," "likely," "may," "should" or other words or phrases of similar import. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking
statements. Examples of forward-looking statements include, but are not limited to, statements we make regarding, and the guidance we give with respect to, our anticipated operating or financial results, initiation or completion of strategic
initiatives including the proposed spinoff of our LoyaltyOne segment, future dividend declarations, and future economic conditions, including, but not limited to, fluctuation in currency exchange rates, market conditions and COVID-19 impacts
related to relief measures for impacted borrowers and depositors, labor shortages due to quarantine, reduction in demand from clients, supply chain disruption for our reward suppliers and disruptions in the airline or travel industries.We
believe that our expectations are based on reasonable assumptions. Forward-looking statements, however, are subject to a number of risks and uncertainties that could cause actual results to differ materially from the projections, anticipated
results or other expectations expressed in this release, and no assurances can be given that our expectations will prove to have been correct. These risks and uncertainties include, but are not limited to, factors set forth in the Risk Factors
section in our Annual Report on Form 10-K for the most recently ended fiscal year, which may be updated in Item 1A of, or elsewhere in, our Quarterly Reports on Form 10-Q filed for periods subsequent to such Form 10-K. Our forward-looking
statements speak only as of the date made, and we undertake no obligation, other than as required by applicable law, to update or revise any forward-looking statements, whether as a result of new information, subsequent events, anticipated or
unanticipated circumstances or otherwise. 2 Forward-Looking Statements
Business Development, Pipeline, & ProductStrong business development activities and pipelineBalance
and diversification of portfolio and productsContinued investment in Bread to scale for growth in 2022 Card Performance Credit sales improvement offset by impact of non-renewalCredit metrics remain strongPayment rates remain elevated, but
expected to move lower over time 3Q21 Business Update 3 LoyaltyOne® PerformanceModest sequential improvement as Delta variant delays further recoveryGood visibility on 4Q21 recovery (majority of program contracts signed)Business activity
continues to gain momentumSpin remains on track for 4Q21
Full Year 2020Actuals Full Year 2021Outlook Commentary Average receivables $16,367 million Down
mid-single-digits Flat year-over-year in 2H21Expect year-end receivables to be in line with year-end 2020Credit sales up double-digits in 2021 Total revenue$4,521 million Down low-single-digits LoyaltyOne full year revenue growth in
20211Q21 Card Services revenue suppressed with receivable balances rebuilding from pandemic-related reductionsCard Services gross revenue yield remains steady Total expenses*(Excludes provision for loan loss)$2,861 million Flat Includes
accelerated digital investment and an increase in marketing spend from depressed levels in 2020Impacted by Bread® & Fiserv investment transition expenses Net loss rate2020 = 6.6% Net loss rate in the low 5% range 2021 Financial
Outlook 4 * Total expenses represent total operating expenses excluding provision for loan loss plus total interest expense, net