Bread Financial 8K Regulation FD Disclosure | BFH 15 Feb 12

Confidential and Proprietary

Alliance Data
Company Overview
NYSE: ADS

First Quarter 2012

NYSE: ADS | 1Q2012

Confidential and Proprietary

Three Businesses. One Focus.

The largest and most comprehensive provider of
transaction-based marketing and loyalty solutions.
These solutions are delivered through three businesses:

Designs and executes
ROI-based marketing
programs that deliver
measurable results

Designs, delivers and
manages a suite of
loyalty marketing
programs and services to
profitably change
customer behavior

Drives sales for our
clients by providing
marketing driven
branded credit programs
that build customer
loyalty

Private Label

Opportunity: $400+ Billion Addressable Market

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 $400+ billion prize

NYSE: ADS | 1Q2012

Confidential and Proprietary

The Alliance Data End-to-End Solution

Strategy/

Creative

Analytics
and Insights

Distribution

Data and

Database

LoyaltyOne | Epsilon | Private Label

Results and
Measurement

Mobile

Direct Mail

In-store

Permission-
based Email

Social Media

On-line

Call Center

NYSE: ADS | 1Q2012

Confidential and Proprietary

Attractive Industry Trends

LoyaltyOne Epsilon Private Label

• Loyalty programs:

• Track high-frequency transactional
data …

• to drive consumer insight…

• to improve the relevance of
marketing messages…

• to create meaningful and
profitable results for retailers

• LoyaltyOne AIR MILES Reward
Program has leading market position -
about 2/3rds of households

Total Marketing Spend - Canada

Total Marketing Spend - US

Private Label Card Sales Volume

$22BN

+5%

$129BN

+6.6%

AdAge, 12/19/11

Nilson Report 2010

Reliability & Visibility

• Mix Shift on Marketing Spend:

• Away from traditional media

• To ROI-based digital marketing

• Overall marketing spend:
+3% CAGR through 2015

• But digital marketing spend:
+19% CAGR through 2015

• Epsilon provides end-to-end,
integrated, digital solutions

Innovation & Growth

• Total Credit Card Sales Volume of
$2.1 Trillion

• Private Label Cards represent
6.2% of total volume

• Private Label Sales Growth
6.3% CAGR 2001 - 2010

• ADS Private Label Sales Growth
9.5% CAGR 2001 - 2010

• PL Cards enhance consumer
loyalty and marketing ROI

Retailer-Niche Leader

ZenithOptimedia
2011 Forecast

NYSE: ADS | 1Q2012

Confidential and Proprietary

ADS Operating Results
($MM, except per share data)

NYSE: ADS | 1Q2012

Confidential and Proprietary

* Shares covered by counterparty hedge agreements, which the Company has no obligation
to settle.

ADS 2012 Guidance
($MM, except per share data)

NYSE: ADS | 1Q2012

Confidential and Proprietary

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 the potential
effects of the Epsilon data theft incident, and 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 | 1Q2012

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, adjusted EBITDA net of funding costs, core earnings and core earnings per diluted share (core EPS).
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.

Bread Financial (BFH) 8-KRegulation FD Disclosure