Investor Day 2012: PLM

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    07-Dec-2014

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Investor Day 2012: PLM

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  • 1. CLUB PREMIER: MEXICOS LEADINGBROAD BASED COALITION LOYALTYPROGRAMJeremy Rabe, CEOPremier Loyalty & Marketing, S.A.P.I. de c.v.
  • 2. POSITIVE TRENDS DRIVING ECONOMIC GROWTH INMEXICO GDP Growth GDP Per Capita (thousands of US dollars) Mexico 8% CAGR 11.0 7.5% USA 10.2 10.5 9.2 8.0 3.0% 5.6% 2.3% 2.0% 4.6% 1.7% 3.9% 3.9% 3.6% 2.7% 2.5% 2010 2011 2012 2013 2009 2010 2011E 2012E 2013ESource: IMF, World Economic Outlook (Jul. 2012) Source: IMF, World Economic Outlook Database (Apr. 2012) Middle Class Households Percentage of Population Under 15 (millions) 16.3 15.8 11.9 9.2 29% 25% 6.5 7.9 5.1 5.5 5.8 13% 1992 1994 1996 1998 2000 2002 2004 2006 2008 Mexico USA BrazilSource: INEGI Source: Population Reference Bureau, 2011
  • 3. LOYALTY MARKET PENETRATION ISRELATIVELY LOW IN MEXICOProgram membership as % of population 52.8 46.9 35.7 31.0 29.6 27.3 23.7 23.5 21.0 18.0 15.7 14.0 13.4 13.0 9.4 4.4 3.8 2.3Source: Multiplus Investor Relations Presentation (2011), Club Premier analysis
  • 4. AEROMEXICO, MEXICOS FLAG CARRIER, ISDELIVERING STRONG FINANCIAL RESULTS EBITDAR evolution Operating Margin 2011-12 (Q2, pesos millions) (12-month moving average)Current management has completed a Aeromexico has a higher operating margin thansuccessful turnaround since the airline was the average of US and Latin American Carriersprivatized in late 2007 14% LatAm avg.2,000 1,789 12%1,500 10%1,000 8% Aeromexico 6% US avg. US avg. 00 01 02 03 04 05 06 07 08 09 10 11 12 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Note: LatAm includes Lan, Tam, Copa and Gol; US includes UA, AA, DL, US Airways, Alaska and Southwest
  • 5. TRANSLATING INTO A STRONG BALANCE SHEET 2012* Adjusted Cash & Cash Equivalents Net Debt vs. EBITDAR (pesos millions) 5.62 4,142 +14.7% 3.60 3,609 Latin American Q1 2012 Q2 2012 Average*Aeromexico as of Jun-12. Other airlines as of Mar-12;Including 7x aircraft leasing
  • 6. MARKET GROWTH IN OUR THREE MAJOR ACCUMULATIONVERTICALS Travel Financial Retail Flights Per Capita Cards Per Capita Retail Sales (Population >$15K USD Per Year) 1.4 (USD Billions) CAGR 9% 0.38 0.13 237.6 205.7 223.2 2.4 182.7 Mexico Brazil Canada Only 9% of consumer payments are with cards, but growing at 11% CAGR 1.4 (06-11) 2009 2010 2011 2012 0.8 0.6 0.6 Credit Cards Supermarket space per capita is only (Dec-09 to Feb-12 CAGR) 25% of the U.S. level 31% High frequency of shopping trips/week 10% Internet retailing growing above 20% 7% Mexico China Brazil Europe USA per year (internet penetration still low 31% vs. 40% in Brazil) Classic Gold PlatinumSource: Morgan Stanley Research Source: Euromonitor Source: Banxico, Euromonitor
  • 7. CLUB PREMIER LOYALTY JOURNEY: WE ARE FOCUSEDON THE EXECUTION OF OUR STRATEGIC PLAN Sept. 13, 2010 Today VALUE TO SHAREHOLDERS Distant Pre Sept. Sept. Post Sept. 2012 Past 2010 2010 - 2012 Coalition Loyalty Shareholder evolution, including potentially public company Aeroplan of Mxico Focused on generating loyalty to commercial New legal entity (PLM) partners among mid to Profit Center managing Club Premier, high income customers owned by Grupo with a variety of earn and Branch Marketing Business unit that sold Aeromexico and Aimia Inc. Kms and ensured burn options, leading to an Focused on generating increase in the member Team focused on captur- profitability through internal loyalty to commercial ing loyalty of frequent transfer pricing value proposition partners among mid- to flyers Increased loyalty of high-income members in frequent flyers the travel, financial and retail sectors
  • 8. THE BUSINESS HAS CHANGED DRAMATICALLYIN THE PAST TWO YEARS Q4 2010* Q2 2012 ChangeGross billings per quarter 22.2 36.4 +64%Members Enrolled 2.7 3.2 +16%Partners 57 72 +26%Financial partners 4 12 +200%Number of Rewards Issued 63,603 90,424 +42%New Members Enrolled 35,568 74,983 +111% Call center, ticket offices, email, online,Service channels Call center, ticket offices, email lounges, chat +3 channels Aeromexico (basic+dynamic), Sky TeamAir redemption options Aeromexico, Sky Team Airlines (12) Airlines (17) +6 options Merchandise (2,500+), hotels (50,000+),Non-air redemption options Occasional auctions almost daily auctions, concerts, raffles, +50K options games (7)FTEs ~190 ~400 111%*Q4 2010 adjusted to reflect start of operations on Sep. 13, 2010
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