Bread Financial (BFH) 8-K Alliance Data’s Safe Harbor Statement/Forward-Looking Statements

©2008 ADS Alliance Data Systems, Inc.

Alliance Data

NYSE:ADS

Q1

2008

Exhibit 99.1

2008 Q1 ADS Roadshow

2

©2008 ADS Alliance Data Systems, Inc.

Alliance Data’s Safe Harbor Statement/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.

These

risks,

uncertainties

and

assumptions

include

those

made

with

respect

to

and

any

developments

related

to

the

proposed

merger

with

an

affiliate

of

The

Blackstone

Group,

including

the

risk

that

conditions

to

closing,

including

the

condition

relating

to

OCC

approval,

may

not

be

satisfied

and

that

the

proposed

merger

may

not

be

consummated,

as

well

as

risks

and

uncertainties

arising

from

actions

that

the

respective

parties

to

the

merger

agreement

may

take

in

connection

therewith.

The

Company

cannot

provide

any

assurance

that

the

conditions

to

closing

the

transaction

will

be

satisfied

or

that

the

proposed

merger

will

be

completed.

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.

2008 Q1 ADS Roadshow

3

©2008 ADS Alliance Data Systems, Inc.

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 adjusted EBITDA, operating EBITDA and cash earnings per share. The

Company believes that these non-GAAP measures, viewed in addition to and not in lieu of

the Company's reported GAAP results, provide useful information to investors regarding its

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.

Definitions

of

these

financial

terms

and

reconciliations of these financial measures to comparable GAAP measures are available

on the Company's website, except where, as in the case of adjusted EBITDA, operating

EBITDA and cash earnings per share, the appropriate GAAP financial measure is not

available on a forward-looking basis. The financial measures presented are consistent with

the Company's historical financial reporting practices, except as noted with respect to the

Company’s revised segment reporting. The non-GAAP measures presented herein may

not be comparable to similarly titled measures presented by other companies, and are not

identical to corresponding measures used in our various agreements or public filings.

2008 Q1 ADS Roadshow

4

©2008 ADS Alliance Data Systems, Inc.

Alliance Data:  A Unique Business Model

•

Highly sophisticated transaction-based programs are measurable,

trackable

and allow for micro-segmentation of clients’

customers.

•

Drives high ROIs

for our clients and displaces traditional marketing

channels, a $670 billion market.

•

Comprehensive nature of our programs cuts across many traditional

industries.

Largest and Most Comprehensive Provider of Transaction-

based Marketing and Loyalty Solutions

Very “sticky”

programs:  recession resistant and resilient pricing power

•

Multi-channel marketing strategy

•

Data products

•

Database design and build

•

Analytics

•

Permission-based email

•

Customer care

•

Processing

•

Credit

2008 Q1 ADS Roadshow

5

©2008 ADS Alliance Data Systems, Inc.

Compelling Growth Company –

Four Financial Metrics

1.

Double-digit Organic Growth

2.

Strong Free Cash Flow Conversion

•

Double-digit organic business growth, plus

•

Margin expansion:  14% (2000)

32% (2007); >250bps a year

•

Capex

improving from 5%

3% of top-line

3.

Strong Visibility, Predictability and Transparency

•

27 consecutive quarters since IPO

•

High recession resiliency

4.

Excellent Liquidity

•

$3.8BN Capacity in Place

$1.8BN Unused

•

Leverage <1x

Comfort at 3x

$2.0BN Available

$3.8BN Unused/Available

(“investment grade”)

2008 Q1 ADS Roadshow

6

©2008 ADS Alliance Data Systems, Inc.

2008 Guidance

•

Reiterate Organic Growth Targets:

•

Operating EBITDA

>$730MM

•

Adjusted EBITDA

>$700MM

•

Cash EPS

$4.30

Cash EPS:  Mid-teens Organic Growth

Q1:  Flat

(-) Lane Bryant Drag

($.98-1.00)

(-) 2008’s Most Difficult Comps

Q2:  Low to Mid-teens    (-) Lane Bryant Drag 

(+) Private Label Ramp-ups

($1.00)

(+) Funding Benefits

Q3:  Mid to High-teens    (-) Lane Bryant Drag    

(+) Private Label Ramp-ups

($1.15)

(+) Funding Benefits 

(+) Loyalty & Epsilon

Q4:  Mid-20’s

(+) Lane Bryant Anniv.

(+) Private Label Ramp-ups

(>$1.15)

(+) Funding Benefits

(+) Loyalty & Epsilon

Note: Adjusted EBITDA Will Follow A Similar Distribution

2008 Q1 ADS Roadshow

7

©2008 ADS Alliance Data Systems, Inc.

2008 Est. Free Cash Flow

($MM, Except per Share)

Adjusted EBITDA

> $700

Loyalty Adjustment

30

Operating EBITDA

> $730

Less Capex/Int./Taxes

(330)

Free Cash Flow

$400

Per Share

$5.00

+ Asset Sales / Other Initiatives

TBD

(11% yield)

2008 Q1 ADS Roadshow

8

©2008 ADS Alliance Data Systems, Inc.

One Business Model

Drives Multiple Service Offerings

We capture

past and

current

consumer

transactions

Through our

analysis over

the past 25

years we know

this is the best

predictor of

future behavior

We develop,

implement and

drive complex 

marketing and

loyalty

programs

Our micro-

segmentation

drives

significant ROIs

for clients

2008 Q1 ADS Roadshow

9

©2008 ADS Alliance Data Systems, Inc.

2008 Outlook:  Loyalty Services -

Canada

•

AIR MILES

®

Reward Program is the Largest Mass

Consumer Coalition Loyalty Program in Canada

•

70% of Canadian Households Active in the Program

•

One of Canada’s Most Recognizable Brands

•

Despite Name, Revenues are not Driven by Airline

Industry.

•

Revenues Generated from Consumers’

Non-discretionary, High Frequency, Everyday Spend

•

Gas, Grocery, Pharmacy, Etc.

•

Long Term Contracts with High Renewal Rate

•

2007 Operating EBITDA of $174MM

•

(Adjusted EBITDA plus Loyalty Adjustment)

•

Expect Mid-teens

Adjusted EBITDA Growth in 2008

•

100% Organic; driven by network effect, new sponsors, and

larger commitments from current sponsors

Shell Oil of Canada

2008 Q1 ADS Roadshow

10

©2008 ADS Alliance Data Systems, Inc.

2008 Outlook:  Epsilon Marketing Services

•

Only Recognized Leader in Both Database Marketing and Email

Marketing Services by Forrester

•

Most Comprehensive and Only Integrated Database Marketing

Services Firm in the Industry

•

Marketing Strategy

•

Database Management

•

Proprietary Data Services

•

Analytical Services

•

Distribution (35 BN+ Permission-based Emails Sent Annually)

•

Coalition Programs: Abacus, Citi

ThankYou

Network

•

Individual Programs: Hilton HHonors, Barnes & Noble, Pfizer

•

Top 25 Clients have Average Tenure of 10 Years

•

2007 Adjusted EBITDA of $118MM

•

Expect Mid-teens

Adjusted EBITDA Growth in 2008

•

$670BN Market:  TV, radio, newspapers, magazines, outdoor,

direct response & mail, events & promos

•

Massive Shift to ROI-based Programs

•

100% Organic: Larger Commitments from Existing Clients and

New Clients

2008 Q1 ADS Roadshow

11

©2008 ADS Alliance Data Systems, Inc.

2008 Outlook:  Private Label Services

•

Fully Integrated Loyalty-driven Private Label and

Co-brand Programs

•

Loyalty & Marketing Programs

•

High-end Customer Care

•

Transaction Processing

•

Consumer’s Choice Driven by Loyalty and Relationship

to Retailer, not a Need for Credit

•

2 of 3 Services (Loyalty/Marketing and Customer Care)

Provide “Special Sauce”

That Makes the Business

Unique

•

High Renewal Rate; Key Clients with Long Tenure

•

2007 Adjusted EBITDA of $99MM

•

Expect Mid-single

Digit Adjusted EBITDA Growth in

2008

•

Grow-over from Lane Bryant

•

280+ potential clients (50% have a program today)

•

Sign 4-5 new clients per year

2008 Q1 ADS Roadshow

12

©2008 ADS Alliance Data Systems, Inc.

2008 Outlook: Private Label Credit

•

11MM Active Households Each Month

•

85% Female; Mid-to High-Income

•

Customer Views as Loyalty Program, not an Extension of Credit

•

700 Average Bureau Score; Small Average Balances ($350/acct.)

•

No Sub-prime Targeting

•

2007 Adjusted EBITDA of $350MM

•

Expect

Mid-single Digit Adjusted EBITDA Growth in 2008 –

It’s Not the Macro Issues;

It’s Lane Bryant v. ramp-ups

•

(+) Yields Solid

•

(+)

Portfolio

Growth

Solid

–

excl.

Lane

Bryant:

6%;

including

:

flat

•

(+)

Portfolio

Sales

Decent

–

excl.

Lane

Bryant:

5%;

including:

flat

•

(+) Funding Rates 

•

(-)

Slight

Creep

in

Credit

Losses

–

Master

Trust

Sep ‘07

Oct ‘07

Nov ‘07

Dec ‘07

Jan ‘08

Feb ‘08

Delinquencies

5.4%

5.5%

5.3%

5.1%

5.4%

5.3%

Losses

5.7%

5.4%

6.2%

5.7%

6.5%

6.3%

}

Offset –

Natural Hedge

2008 Q1 ADS Roadshow

13

©2008 ADS Alliance Data Systems, Inc.

2003-2008e

(in $MM, except per share)

Adjusted EBITDA

>$700

2003             2004           2005           2006         

2007           2008e

Cash EPS

2003           2004            2005           2006             2007            2008e

$1.00

$1.54

$1.99

$3.14

$3.88

$4.30

$189

$255

$321

$498

$632