Download - Investor Day 2012: PLM
CLUB PREMIER: MEXICO’S LEADING BROAD BASED COALITION LOYALTY PROGRAMJeremy Rabe, CEO
Premier Loyalty & Marketing, S.A.P.I. de c.v.
8.09.2 10.2 10.5 11.0
2009 2010 2011E 2012E 2013E
Source: IMF, World Economic Outlook Database (Apr. 2012)
5.6%
3.9%
3.9%
3.6%
3.0%
1.7% 2.0% 2.3%
7.5%
2.7%
2.5% 4.
6%
2010 2011 2012 2013
MexicoUSA
Source: IMF, World Economic Outlook (Jul. 2012)
Source: INEGI
GDP Per Capita (thousands of US dollars)
Middle Class Households (millions)
GDP Growth
29%
13%25%
Mexico USA BrazilSource: Population Reference Bureau, 2011
Percentage of Population Under 15
8% CAGR
POSITIVE TRENDS DRIVING ECONOMIC GROWTH IN MEXICO
5.1 5.5 5.8 6.5 7.9 9.211.9
16.3 15.8
1992 1994 1996 1998 2000 2002 2004 2006 2008
LOYALTY MARKET PENETRATION IS RELATIVELY LOW IN MEXICO
52.846.9
35.731.0 29.6 27.3
23.7 23.521.0
18.0 15.7 14.0 13.4 13.09.4
4.4 3.8 2.3
Program membership as % of population
Source: Multiplus Investor Relations Presentation (2011), Club Premier analysis
EBITDAR evolution (Q2, pesos millions)
AEROMEXICO, MEXICO’S FLAG CARRIER, IS DELIVERING STRONG FINANCIAL RESULTS
Operating Margin 2011-12(12-month moving average)
Current management has completed a successful turnaround since the airline was privatized in late 2007
Aeromexico has a higher operating margin than the average of US and Latin American Carriers
Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012
Aeromexico
LatAm avg.
US avg.
Note: LatAm includes Lan, Tam, Copa and Gol; US includes UA, AA, DL, US Airways, Alaska and Southwest
1,789
00 01 02 03 04 05 06 07 08 09 10 11 12
2,000
1,500
1,000
14%
12%
10%
8%
6%US avg.
3,609
4,142
Q1 2012 Q2 2012
+14.7%
2012* Adjusted Net Debt vs. EBITDAR
*Aeromexico as of Jun-12. Other airlines as of Mar-12; Including 7x aircraft leasing
TRANSLATING INTO A STRONG BALANCE SHEET
Cash & Cash Equivalents(pesos millions)
3.60
5.62
Latin American Average
MARKET GROWTH IN OUR THREE MAJOR ACCUMULATION VERTICALS
Source: Morgan Stanley Research
Flights Per Capita(Population >$15K USD Per Year)
0.6 0.6
0.8
1.4
2.4
Mexico China Brazil Europe USA
Cards Per Capita
0.130.38
1.4
Mexico Brazil Canada
• Only 9% of consumer payments are with cards, but growing at 11% CAGR (´06-´11)
7% 10%
31%
Classic Gold Platinum
Credit Cards(Dec-09 to Feb-12 CAGR)
Source: Banxico, Euromonitor
Retail Sales(USD Billions)
182.7205.7 223.2 237.6
2009 2010 2011 2012
CAGR 9%
• Supermarket space per capita is only 25% of the U.S. level
• High frequency of shopping trips/week • Internet retailing growing above 20%
per year (internet penetration still low 31% vs. 40% in Brazil)Source: Euromonitor
Travel Financial Retail
• Team focused on captur-ing loyalty of frequent flyers
Profit Center
Aeroplan of México
Coalition Loyalty
• Business unit that sold Kms and ensured profitability through internal transfer pricing
• Increased loyalty of frequent flyers
• New legal entity (PLM) managing Club Premier, owned by GrupoAeromexico and Aimia Inc.
• Focused on generating loyalty to commercial partners among mid- to high-income members in the travel, financial and retail sectors
• Shareholder evolution, including potentially public company
• Focused on generating loyalty to commercial partners among mid to high income customers with a variety of earn and burn options, leading to an increase in the member value proposition
Distant Past
Pre Sept. 2010 Post Sept. 2012
Branch Marketing
Sept. 13, 2010 Today VALUE TO SHAREHOLDERS
Sept. 2010 - 2012
CLUB PREMIER LOYALTY JOURNEY: WE ARE FOCUSED ON THE EXECUTION OF OUR STRATEGIC PLAN
THE BUSINESS HAS CHANGED DRAMATICALLY IN THE PAST TWO YEARS
Q4 2010* Q2 2012 Change
Gross 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%
Service channels Call center, ticket offices, emailCall center, ticket offices, email, online,
lounges, chat+3 channels
Air redemption options Aeromexico, Sky Team Airlines (12) Aeromexico (basic+dynamic), Sky Team
Airlines (17)+6 options
Non-air redemption options Occasional auctionsMerchandise (2,500+), hotels (50,000+), almost daily auctions, concerts, raffles,
games (7)+50K options
FTE’s ~190 ~400 111%
*Q4 2010 adjusted to reflect start of operations on Sep. 13, 2010
SUCCESSFUL PARTNERSHIPS WITH BANAMEX, AMEX AND AEROMEXICO
Banamex
• Launch in March 2011 has been characterized as one of the most successful in the history of Mexico
• Both Gold and Platinum cards continue to perform well
American Express
• Re-launch of corporate card portfolio with earn flexibility
• Renewed long term Membership Rewards agreement
Re-launch of personal card portfolio with enhanced value proposition
Aeromexico
• Re-launch of corporate accrual program• Launch of new Titanium frequent flyer level
RELATIONSHIPS WITH ALMOST ALL MAJOR BANKS OFFERING PREMIUM CREDIT CARDS IN MEXICO
• Launches include Banorte, Inbursa, HSBC, Mifel, Scotiabank, Invex, and Bancomer
49%
95%
Jun-11 Sep-12
% of Premium Credit Cards with Direct Earn or Conversion Ability to KmP
Source: Banxico, Club Premier estimates
WE HAVE PARTNERSHIPS WITH SOME OF MEXICO’S TOP RETAILERS
#2 retailer in Mexico
Launch in March 2012
#2 office supply retailer in Mexico
Nearly 100 locations
Launch in July 2012
Top 25 retailer in Mexico
Convenient department store
format
Launch in August 2012
SME self-service earn platform
Launch in May 2012 at inaugural Loyalty
World Mexico conference
Over 70 locations
Launch in September 2012
CLUBPREMIER.COM NEW HOMEPAGE
14
Clásicos Premier24000
Clásicos Premier24000
WE ARE CONSTANTLY INNOVATING IN AN EFFORT TO OFFER NEW ENGAGEMENT OPPORTUNITIES TO OUR MEMBERS
RafflesGames
BadgesAuctions
MASS MEDIA CAMPAIGN RECENTLY LAUNCHED TO COMMUNICATE COALITION VALUE PROPOSITION
• Continue to innovate with new redemption categories
• Further develop one-to-one marketing and personalization
• Develop mobile app
• Experiment with additional member engagement products and promotions to create customer buzz and excitement
• Sign additional everyday spend partners in retail and CPG market
• Enhance self-serve platforms for small and medium sized businesses
• Further penetrate base with co-branded credit cards
• Develop one-to-one marketing campaigns designed to generate clear ROI for partners
GOAL: DELIVER GREAT VALUE TO STAKEHOLDERS, AS MEXICO’S LEADING COALITION PROGRAM
MEMBERS
PARTNERS
Let’s FlyTogether
The sky is not the limit!
THANK YOU!
¡GRACIAS!