ANNUAL INFORMATION FORM FOR THE FINANCIAL YEAR ENDED DECEMBER 31, 2014 March 20, 2015 i TABLE OF CONTENTS EXPLANATORY NOTES ............................................................................................................................................ 1 Forward-Looking Statements .................................................................................................................................... 1 Trademarks ................................................................................................................................................................ 2 CORPORATE STRUCTURE ....................................................................................................................................... 2 Name, Address and Incorporation ............................................................................................................................. 2 Intercorporate Relationship ....................................................................................................................................... 2 GENERAL DEVELOPMENT OF THE BUSINESS .................................................................................................... 3 History ....................................................................................................................................................................... 3 THE BUSINESS ........................................................................................................................................................... 6 Overview ................................................................................................................................................................... 6 Strategy ..................................................................................................................................................................... 8 Financial Highlights .................................................................................................................................................. 9 Coalition Loyalty ..................................................................................................................................................... 13 Proprietary Loyalty ................................................................................................................................................. 27 Enhancement Services ............................................................................................................................................. 30 Employee, Channel & Business Customer Loyalty ................................................................................................ 31 Analytics & Insights ................................................................................................................................................ 35 Competition ............................................................................................................................................................. 37 Logos and Trademarks ............................................................................................................................................ 38 Regulatory ............................................................................................................................................................... 39 Employees ............................................................................................................................................................... 40 Facilities .................................................................................................................................................................. 40 Environmental ......................................................................................................................................................... 40 RISKS AND UNCERTAINTIES AFFECTING THE BUSINESS............................................................................. 40 Risks Related to the Business and the Industry ....................................................................................................... 41 Risks Related to Aimia ............................................................................................................................................ 49 DESCRIPTION OF CAPITAL STRUCTURE ........................................................................................................... 50 Common Shares ...................................................................................................................................................... 50 Preferred Shares ...................................................................................................................................................... 51 Senior Secured Notes .............................................................................................................................................. 54 Ratings..................................................................................................................................................................... 56 Debt Financing ........................................................................................................................................................ 56 Redemption Reserve ............................................................................................................................................... 56 DIVIDENDS AND DISTRIBUTIONS ....................................................................................................................... 57 Dividend Policy ....................................................................................................................................................... 57 MARKET FOR SECURITIES .................................................................................................................................... 58 Trading Price and Volume ...................................................................................................................................... 58 PRIOR SALES ............................................................................................................................................................ 60 DIRECTORS AND OFFICERS .................................................................................................................................. 60 Directors .................................................................................................................................................................. 60 Officers .................................................................................................................................................................... 61 Biographies ............................................................................................................................................................. 61 Cease Trade Orders, Bankruptcies, Penalties or Sanctions ..................................................................................... 66 Conflicts of Interest ................................................................................................................................................. 66 AUDIT COMMITTEE INFORMATION ................................................................................................................... 67 Charter of the Audit Committee .............................................................................................................................. 67 Composition of the Audit Committee ..................................................................................................................... 67 Relevant Education and Experience of the Audit Committee Members ................................................................. 67 - ii - Pre-approval Policies and Procedures ..................................................................................................................... 68 Audit Fees ............................................................................................................................................................... 68 LEGAL PROCEEDINGS AND REGULATORY ACTIONS .................................................................................... 69 VAT Litigation ........................................................................................................................................................ 69 Class Action Contesting Changes to Aeroplan’s Mileage Accumulation and Expiry rules .................................... 70 Canada Revenue Agency Notice of Reassessment .................................................................................................. 70 Revenue Quebec Notice Of Assessment ................................................................................................................. 70 INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS ........................................... 71 TRANSFER AGENT AND REGISTRAR .................................................................................................................. 71 MATERIAL CONTRACTS ........................................................................................................................................ 71 INTERESTS OF EXPERTS .......................................................................................................................................