Cards Alliances Program

© Bank Alfalah (Confidential)

 Our Discussion Today…

 Alliances Program - Strategic Objectives

 2019 – H1 Financial Performance Review

 2019 – H2 Action Plan & Methodology

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Bank Alfalah - Confidential
 2019 H1 - Alliances Action Plan & Achievements

• Alliances Budget was revised from Rs. 90Mn in 2018 to Rs. 100M for 2019

• Visibility and market buzz was enhanced during Ramadan and Eid period.

• Special focus was given to FOC alliances

• Debit, Corporate & Amex cards were added for all FOC and Paid Alliances

• Acquiring- Alliances synergy strengthening with 360 view of partner

• YOY analysis based selection of exclusive partners

• Budget allocation based on forecasted analysis.

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Bank Alfalah - Confidential
 The Over Arching Strategy
Key
1 # Market 2 # Customer Considerations
Visibility Engagement 2019
• Focus on large/popular Reach more customers • 176 potential
chains and customers’ through alliances merchants were
behavioral data. diversification & targeted shortlisted for alliance
• Target high end events & communication partnership.
brands
• To maintain focus on
3 # Top of the Wallet Card 4 # Our Card -Our FOC partnerships
/Grow Spend Machine
• Total Customer Spend
Target 32 BN
• Invest smartly in alliances Use merchant acquiring
• Maximum recall relationships for alliance
• Alliance budget 100 M
• Capturing channels (Exclusive of CIP Lounge)

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Bank Alfalah - Confidential
 H1 - 2018 & 2019 Alliances Highlights H1 2019 Key
Highlights
Total Spend
Alliance Partners Marketing Expense on Alliances Customers Spend at Alliances 419 MN
(Number) (Million) (Million) 172 Mn
----------------
%
Category 2018 2019 2018 2019 % Change 2018 2019 % Variance Customer spend per
Variance
Alliance
Dining 60 103 72% 27 41 21% 170 302 78% 2.6MN
0.1Mn
Lifestyle 36 57 58% 3 7 0% 61 92 51%
----------------
Travel & Lodging 3 3 - - - 0% 14 25 79%
Expense per Alliance
Total 99 163 65 30 48 18% 247 419 70% partner
0.3MN
Shortlisted Partnership Spend on Alliances Exclusive Partners 0.0Mn
93% 419 BN 0% ----------------
Successful 172Mn 1
--------------- --------------- ---------------
Key Inferences
• Expanded & Diversified Alliances program through additional Marketing
investment.

• ‘Dining’ continued to be the major card spend & funded Alliances category.

• ‘Lifestyle’ alliances mostly merchant funded

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Bank Alfalah - Confidential
 Alliances Program Review H1 2019

New Alliances enrolled during 2019

New Alliances 30 Lahore 13
Paid 6 Islamabad 9
FOC 24 Karachi 8

Total Alliances for 2019

New Alliances 163 Lahore 28
Islamabad 58
Paid 71 Karachi 41
FOC 92 LHR-KHI-ISL 5
LHR-ISL 6
KHI-LHR 15
Nationwide 10

Key Takeaways:
- Alliances concentrated on Tier 1 cities.
- Special focus on FOC alliances with the number of FOC almost doubling the Paid alliances. 6
Bank Alfalah - Confidential
 Spend Increase – Top Alliances (Paid)
PKR (000)

Issuing Spend H1 2019 Change YOY 2019 Vs 2018 Spend Change Strategy
Month Alliance
Alliance Partners S/C*
Onboard Payment VC VG VP VPP MT Total VC VG VP VPP MT 2018 2019 Vs 2018 H2 2019

Bar B Q Tonight Jan-15 5,772 5.86 6,340 6,877 19,006 755 855 33,834 14.2% 16.2% 98.5% 152.4% 50.1% 54.4% 11,922 Continue

Cafe Aylanto Nov-16 5,844 3.68 1,033 2,980 15,104 1,917 457 21,491 35.2% -13.0% 63.2% 70.7% 33.4% 44.1% 6,579 Continue

Fuchsia Nov-16 2,138 3.71 409 1,182 5,408 741 192 7,932 24.6% 10.0% 21.1% 65.6% 149.8% 24.1% 1,540 Continue

Pie In The Sky Nov-17 2,407 4.80 3,686 3,344 3,847 79 584 11,540 1.7% 9.7% 31.6% 39.3% 30.4% 14.2% 1,438 Continue

Avari Tower Jan-15 250 89.34 3,060 7,209 11,041 154 850 22,315 1.9% -0.8% 12.3% 74.5% 22.4% 6.9% 1,436 Continue

Gloria Jeans Jul-14 51 185.13 2,826 3,113 3,193 62 326 9,519 11.8% 7.3% 24.5% 114.9% 55.0% 15.6% 1,285 Continue

Pizza Hut Oct-16 5,795 4.15 11,448 7,574 3,842 57 1,121 24,042 -5.0% 9.5% 16.6% 367.6% -0.2% 2.8% 646 Continue

Delfrio Oct-16 472 10.05 1,558 1,469 1,398 9 305 4,739 -0.2% 12.0% 44.9% 64.9% 14.8% 15.3% 630 Continue

Liberty Books Jan-15 308 9.85 873 1,131 791 25 214

3,034 12.7% -0.5% 20.9% 318.5% 50.9% 11.8% 320 Continue
140.9
Grand Total 23,036 6.01 31,233 34,879 63,630 3,799 4,904 138,445 10.8% 5.6% 37.1% % 45.2% 21.0% 25,796

Key Takeaway:
• Platinum & Premier Platinum have been the primary target of alliances strategy which is reflected in relevant
spend growth
7
• The spend has enhanced by 21% for 2019 for the above mentioned partners,
 Spend Increase – Top 15 Alliances (FOC)
PKR (000)
Month Alliance Issuing Spend H1 2019 Change YOY 2019 Vs 2018 Spend Change Strategy
Alliance Partners Onboard Payment
S/C*
VC VG VP VPP MT Total VC VG VP VPP MT 2018 2019 Vs 2018 H2 2019

Islamabad Diagnostic Centre Jun-17 - - 3,861 3,497 1,592 5 511 9,467 49.3% 48.5% 41.0% 0.0% 88.9% 49.3% 3,126 Continue

Esajees Jan-17 - - 1,260 3,121 4,931 70 225 9,606 51.7% 9.8% 70.7% 263.1% 162.6% 44.1% 2,940 Continue

Nike Jan-17 - - 4,002 5,295 4,985 53 589 14,924 15.3% 12.2% 13.9% 27.7% 53.1% 14.9% 1,932 Discontinued

Metro Shoes Jan-17 - - 4,293 1,812 356 - 168 6,629 33.8% 43.0% 33.6% 0.0% 42.2% 36.4% 1,769 Continue

Charcoal Dec-16 - - 8,041 4,516 2,383 71 661 15,672 4.0% 4.8% 38.5% 140.8% 97.4% 10.9% 1,544 Continue

Islamabad Hotel Jul-14 - - 483 759 551 - 431 2,224 15.8% 92.9% 36.3% 0.0% 189.8% 63.2% 861 Continue

Cote Rotie Mar-17 - - 118 273 442 - 68 901 905.4% 422.9% 421.4% 0.0% 337.7% 448.5% 736 Discontinued

1969 Jan-14 - - 785 1,182 552 - 182 2,702 41.5% 32.3% 0.6% 0.0% -37.1% 18.1% 415 Discontinued

Falcon Adventure Club Jul-14 - - 302 - 132 - - 434 0.0% -100.0% 0.0% 0.0% 0.0% 785.7% 385 Continue

Bella Vita Oct-16 - - 566 692 866 12 91 2,227 -3.8% 3.8% 31.4% -9.5% 12.9% 10.9% 219 Continue

Des Pardes Jul-14 - - 485 391 304 - 61 1,241 26.8% -14.8% 87.6% 0.0% 38.9% 18.5% 194 Continue

Wang FU Feb-17 - - 261 121 85 - 5 473 163.3% 21.7% 16.8% 0.0% -88.4% 49.4% 156 Continue

Ranchers Fast Food Jan-17 - - 366 154 43 - 30 593 20.1% 56.3% 154.6% 0.0% 53.0% 34.8% 153 Discontinued

The Spa Jul-15 - - 256 300 159 - 4 719 44.3% 68.3% -22.0% 0.0% -85.4% 23.2% 135 Continue

Cone Heads Mar-17 - - 221 69 25 - 10 324 90.4% 53.9% -21.2% -100.0% 224.6% 65.5% 128 Continue

Grand Total - - 25,300 22,184 17,405 210 3,036 68,136 97.2% 50.4% 60.2% 21.5% 72.7% 111.6% 14,694

Key Takeaway:
• Going forward FOC will be applicable on all Credit, Debit & Corporate Cards including the Islamic card portfolio 8
 Top 15 Spend increase - Existing (Overall)
PKR (000)
Issuing Spend H1 2019 Change YOY 2019 Vs 2018 Spend Change Strategy
Month Alliance
Alliance Partners S/C*
Onboard Payment VC VG VP VPP MT Total VC VG VP VPP MT 2018 2019 Vs 2018 H2 2019

Bar B Q Tonight Jan-15 5,772 5.86 6,340 6,877 19,006 755 855 33,834 14.2% 16.2% 98.5% 152.4% 50.1% 54.4% 11,922 Continue

Cafe Aylanto Nov-16 5,844 3.68 1,033 2,980 15,104 1,917 457 21,491 35.2% -13.0% 63.2% 70.7% 33.4% 44.1% 6,579 Continue

Islamabad Diagnostic Centre Jun-17 - - 3,861 3,497 1,592 5 511 9,467 49.3% 48.5% 41.0% 0.0% 88.9% 49.3% 3,126 Continue

Esajees Jan-17 - - 1,260 3,121 4,931 70 225 9,606 51.7% 9.8% 70.7% 263.1% 162.6% 44.1% 2,940 Continue

Nike Jan-17 - - 4,002 5,295 4,985 53 589 14,924 15.3% 12.2% 13.9% 27.7% 53.1% 14.9% 1,932 Discontinued

Metro Shoes Jan-17 - - 4,293 1,812 356 - 168 6,629 33.8% 43.0% 33.6% 0.0% 42.2% 36.4% 1,769 Continue

Charcoal Dec-16 - - 8,041 4,516 2,383 71 661 15,672 4.0% 4.8% 38.5% 140.8% 97.4% 10.9% 1,544 Continue

Fuchsia Nov-16 2,138 3.71 409 1,182 5,408 741 192 7,932 24.6% 10.0% 21.1% 65.6% 149.8% 24.1% 1,540 Continue

Pie In The Sky Nov-17 2,407 4.80 3,686 3,344 3,847 79 584 11,540 1.7% 9.7% 31.6% 39.3% 30.4% 14.2% 1,438 Continue

Avari Tower Jan-15 250 89.34 3,060 7,209 11,041 154 850 22,315 1.9% -0.8% 12.3% 74.5% 22.4% 6.9% 1,436 Continue

Gloria Jeans Jul-14 51 185.13 2,826 3,113 3,193 62 326 9,519 11.8% 7.3% 24.5% 114.9% 55.0% 15.6% 1,285 Continue

Islamabad Hotel Jul-14 - - 483 759 551 - 431 2,224 15.8% 92.9% 36.3% 0.0% 189.8% 63.2% 861 Continue

Cote Rotie Mar-17 - - 118 273 442 - 68 901 905.4% 422.9% 421.4% 0.0% 337.7% 448.5% 736 Discontinued

Pizza Hut Oct-16 5,795 4.15 11,448 7,574 3,842 57 1,121 24,042 -5.0% 9.5% 16.6% 367.6% -0.2% 2.8% 646 Continue

Delfrio Oct-16 472 10.05 1,558 1,469 1,398 9 305 4,739 -0.2% 12.0% 44.9% 64.9% 14.8% 15.3% 630 Continue

Grand Total 22,728 8.57 52,417 53,022 78,079 3,973 7,343 194,833 77.3% 45.7% 64.5% 92.1% 88.5% 56.3% 38,385

Key Takeaway
• The spend has enhanced by 56.3% for 2019 for the above mentioned partners,
9
 Top 15 Spend Increase New & Existing - (Paid Only)
PKR (000)
Spend
Month Alliance
Alliance Partners S/C* Issuing Spend H1 2019 Change YOY 2019 Vs 2018 Change Strategy
Onboard Payment
VC VG VP VPP MT Total VC VG VP VPP MT 2018 2019 Vs 2018 H2 2019
Yum Sep-18 2,756 6.75 2,087 4,329 11,477 329 382 18,604 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 18,604 Continue

P.F Chang Oct-18 4,843 3.61 1,057 2,862 12,513 756 317 17,504 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 17,504 Continue

Spice Bazar Sep-18 1,610 8.44 1,509 2,452 9,008 442 183 13,594 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 13,594 Continue

Mandarin Kitchen Jul-18 931 14.38 406 2,006 10,589 312 84 13,397 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 13,397 Continue

Bar B Q Tonight Jan-15 5,772 5.86 6,340 6,877 19,006 755 855 33,834 14.2% 16.2% 98.5% 152.4% 50.1% 54.4% 11,922 Continue

Dvago Nov-18 263 31.93 3,058 2,433 2,299 74 525 8,389 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 8,389 Continue

Cocochan Oct-18 1,378 5.81 805 2,988 3,716 92 400 8,000 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 8,000 Continue

Zenith May-19 21 326.35 1,970 2,109 2,350 19 323 6,771 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 6,771 Continue

Royal Taj Oct-18 447 14.90 3,215 2,233 801 - 416 6,666 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 6,666 Continue

Cafe Aylanto Nov-16 5,844 3.68 1,033 2,980 15,104 1,917 457 21,491 35.2% -13.0% 63.2% 70.7% 33.4% 44.1% 6,579 Continue

Cosanostra Jul-18 227 21.27 436 1,384 2,804 113 97 4,835 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 4,835 Continue

Chashni Aug-18 371 9.21 568 891 1,890 18 51 3,418 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 3,418 Continue

Necos Natural Store Jun-18 282 11.36 446 1,166 1,327 19 241 3,200 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 3,200 Continue

Marcels Jul-18 202 12.83 215 561 1,706 18 88 2,588 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 2,588 Continue

Key Takeaway
Bamboo Union Mar-19 144 14.86 180 488 1,300 125 44 2,136 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 2,136 Continue

• Strategic
Grand Total moves being designed to improve
25,090 spend
6.55 on high35,758
23,325 yield alliance partners
95,889 4,990 4,464in164,426
terms of Spend
3.3% per
0.2% Rupee
10.8% 14.9% 5.6% 6.6% 127,603
10
of cost incurred.
 Top 15 Spend Increase New & Existing - (FOC Only)
PKR (000)
Spend
Month Alliance
Alliance Partners S/C* Issuing Spend H1 2019 Change YOY 2019 Vs 2018 Change Strategy
Onboard Payment
VC VG VP VPP MT Total VC VG VP VPP MT 2018 2019 Vs 2018 H2 2019
D Watson Sep-18 - - 4,405 3,962 3,537 - 649 12,554 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 12,554 Continue

Hardees Sep-18 - - 4,884 3,872 2,872 20 538 12,187 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 12,187 Continue

DHL Jul-18 - - 2,589 3,244 1,151 - 410 7,393 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 7,393 Continue

English Tea House Sep-18 - - 816 1,723 3,429 120 129 6,217 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 6,217 Continue

Samsung outlet Jan-18 - - 2,488 3,284 4,648 128 364 10,912 113.4% 67.7% 102.1% 0.0% 64.5% 93.3% 5,267 Continue

Chaaye Khana Jun-18 - - 2,140 2,148 1,509 23 299 6,119 602.5% 443.0% 503.4% 377.5% 325.1% 496.7% 5,094 Continue

Salt & Pepper May-19 - - 1,391 1,249 657 4 73 3,373 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 3,373 Continue

Islamabad Diagnostic Centre Jun-17 - - 3,861 3,497 1,592 5 511 9,467 49.3% 48.5% 41.0% 0.0% 88.9% 49.3% 3,126 Continue

Esajees Jan-17 - - 1,260 3,121 4,931 70 225 9,606 51.7% 9.8% 70.7% 263.1% 162.6% 44.1% 2,940 Continue

Okra Jul-18 - - 128 415 2,077 38 18 2,677 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 2,677 Continue

FHS Dec-18 - - 795 721 600 8 51 2,175 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 2,175 Continue

Nike Jan-17 - - 4,002 5,295 4,985 53 589 14,924 15.3% 12.2% 13.9% 27.7% 53.1% 14.9% 1,932 Discontinued

Metro Shoes Jan-17 - - 4,293 1,812 356 - 168 6,629 33.8% 43.0% 33.6% 0.0% 42.2% 36.4% 1,769 Continue

Charcoal Dec-16 - - 8,041 4,516 2,383 71 661 15,672 4.0% 4.8% 38.5% 140.8% 97.4% 10.9% 1,544 Continue

Superfeet Aug-18 - - 239 485 457 32 1 1,215 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 1,215 Continue

Grand Total - - 41,333 39,345 35,184 571 4,687 121,120 58.0% 41.9% 53.5% 53.9% 55.6% 49.7% 69,463

Key Takeaway
11
• The spend has enhanced by 49.7% for 2019 for the above mentioned partners.
 Top 15 Spend Increase New & Existing - (Overall)
PKR (000)
Spend
Month Alliance Issuing Spend H1 2019 Change YOY 2019 Vs 2018 Change Strategy
Alliance Partners S/C*
Onboard Payment
VC VG VP VPP MT Total VC VG VP VPP MT 2018 2019 Vs 2018 H2 2019

Yum Sep-18 2,756 6.75 2,087 4,329 11,477 329 382 18,604 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 18,604 Continue

P.F Chang Oct-18 4,843 3.61 1,057 2,862 12,513 756 317 17,504 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 17,504 Continue

Spice Bazar Sep-18 1,610 8.44 1,509 2,452 9,008 442 183 13,594 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 13,594 Continue

Mandarin Kitchen Jul-18 931 14.38 406 2,006 10,589 312 84 13,397 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 13,397 Continue

D Watson Sep-18 - - 4,405 3,962 3,537 - 649 12,554 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 12,554 Continue

Hardees Sep-18 - - 4,884 3,872 2,872 20 538 12,187 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 12,187 Continue

Bar B Q Tonight Jan-15 5,772 5.86 6,340 6,877 19,006 755 855 33,834 14.2% 16.2% 98.5% 152.4% 50.1% 54.4% 11,922 Continue

Dvago Nov-18 263 31.93 3,058 2,433 2,299 74 525 8,389 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 8,389 Continue

Cocochan Oct-18 1,378 5.81 805 2,988 3,716 92 400 8,000 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 8,000 Continue

DHL Jul-18 - - 2,589 3,244 1,151 - 410 7,393 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 7,393 Continue

Zenith May-19 21 326.35 1,970 2,109 2,350 19 323 6,771 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 6,771 Continue

Royal Taj Oct-18 447 14.90 3,215 2,233 801 - 416 6,666 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 6,666 Continue

Cafe Aylanto Nov-16 5,844 3.68 1,033 2,980 15,104 1,917 457 21,491 35.2% -13.0% 63.2% 70.7% 33.4% 44.1% 6,579 Continue

English Tea House Sep-18 - - 816 1,723 3,429 120 129 6,217 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 6,217 Continue

Samsung outlet Jan-18 - - 2,488 3,284 4,648 128 364 10,912 113.4% 67.7% 102.1% 0.0% 64.5% 93.3% 5,267 Continue
Key Takeaway
Grand Total 23,864 8.28 36,663 47,355 102,499 4,963 6,032 197,512 10.9% 4.7% 17.6% 14.9% 9.9% 12.8% 155,044 12
• The spend has enhanced by 12.8% for 2019 for the above mentioned partners
 Spend Dropped - Major 9 Alliances (Paid)
PKR (000)
Spend
Alliance Partners
Month Alliance
S/C* Issuing Spend H1 2019 Change YOY 2019 Vs 2018 Change Strategy
Onboard Payment 2019 Vs
VC VG VP VPP MT Total VC VG VP VPP MT 2018 H2 2019
2018

Kitchen Cuisine Nov-16 164 13.72 834 693 635 2 80 2,244 -57.4% -63.5% -60.8% -84.4% -52.9% -60.3% (3,411) Discontinued

Movenpick May-17 244 59.42 1,821 5,510 6,452 48 641 14,472 -16.2% -25.6% -11.2% 157.1% -15.7% -17.9% (3,153) Continue

Veranda Bistro Jan-16 336 8.96 86 1,046 1,771 63 48 3,013 -65.5% -39.5% -2.8% 89.7% 111.9% -21.8% (842) Continue

China Town Jan-14 172 28.95 1,362 2,023 1,391 30 161 4,967 -22.8% -13.0% -5.9% 35.4% -15.3% -14.1% (813) Continue

Kababjees Nov-16 3,103 5.49 5,481 2,481 8,450 249 377 17,039 -6.4% -9.2% -1.8% 122.9% 25.3% -3.2% (571) Continue

Shapes Jan-14 2,097 4.10 1,337 2,668 4,315 80 189 8,590 -14.6% -5.7% -4.2% -15.6% 15.9% -6.2% (565) Continue

Beach Luxury Hotel Jan-15 22 98.83 606 630 615 - 276 2,127 -14.9% -28.3% -30.4% 0.0% 338.2% -16.2% (411) Continue

Galitos Mar-17 193 1.60 164 65 73 1 4 307 -50.1% -70.2% -27.1% 14.1% -59.3% -53.3% (351) Discontinue

Tuscany Courtyard Jul-14 260 20.00 819 1,352 2,860 23 137 5,191 -6.7% -25.9% 22.4% 55.7% -1.3% 0.0% (1) Continue

Grand Total 6,589 8.80 12,509 16,469 26,563 496 1,914 57,951 -28.3% -31.2% -13.5% 41.7% 38.5% -21.5% (10,118)

Key Takeaway
• Kitchen Cuisine has been moved to tactical alliances
13
 Top Value for Money Alliances - (Paid)
PKR (000)
Issuing Spend H1 2019 Change YOY 2019 Vs 2018 Spend Change Strategy
Month Alliance
Alliance Partners S/C*
Onboard Payment VC VG VP VPP MT Total VC VG VP VPP MT 2018 2019 Vs 2018 H2 2019

Zenith May-19 21 326.35 1,970 2,109 2,350 19 323 6,771 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 6,771 Continue

Gloria Jeans Jul-14 51 185.13 2,826 3,113 3,193 62 326 9,519 11.8% 7.3% 24.5% 114.9% 55.0% 15.6% 1,285 Continue

Beach Luxury Hotel Jan-15 22 98.83 606 630 615 - 276 2,127 -14.9% -28.3% -30.4% 0.0% 338.2% -16.2% (411) Continue

Avari Tower Jan-15 250 89.34 3,060 7,209 11,041 154 850 22,315 1.9% -0.8% 12.3% 74.5% 22.4% 6.9% 1,436 Continue

Movenpick May-17 244 59.42 1,821 5,510 6,452 48 641 14,472 -16.2% -25.6% -11.2% 157.1% -15.7% -17.9% (3,153) Continue

Dvago Nov-18 263 31.93 3,058 2,433 2,299 74 525 8,389 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 8,389 Continue

China Town Jan-14 172 28.95 1,362 2,023 1,391 30 161 4,967 -22.8% -13.0% -5.9% 35.4% -15.3% -14.1% (813) Continue

Wasabi Mar-19 76 23.43 158 332 1,235 35 33 1,792 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 1,792 Continue

Cosanostra Jul-18 227 21.27 436 1,384 2,804 113 97 4,835 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 4,835 Continue

Tuscany Courtyard Jul-14 260 20.00 819 1,352 2,860 23 137 5,191 -6.7% -25.9% 22.4% 55.7% -1.3% 0.0% (1) Continue

Royal Taj Oct-18 447 14.90 3,215 2,233 801 - 416 6,666 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 6,666 Continue

Bamboo Union Mar-19 144 14.86 180 488 1,300 125 44 2,136 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 2,136 Continue

Mandarin Kitchen Jul-18 931 14.38 406 2,006 10,589 312 84 13,397 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 13,397 Continue

Marcels Jul-18 202 12.83 215 561 1,706 18 88 2,588 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 2,588 Continue

Grand Total 3,309 31.78 20,131 31,382 48,636 1,015 4,001 105,165 -3.4% -6.2% 0.8% 31.3% 27.4% -1.8% 44,916
Key Takeaway
14
• The spend has decreased by (1.8)% for 2019 for the above mentioned partners
 High Maintenance Cost - (Paid)
PKR (000)
Month Alliance Issuing Spend H1 2019 Change YOY 2019 Vs 2018 Spend Change Strategy
Alliance Partners Onboard Payment
S/C*
VC VG VP VPP MT Total VC VG VP VPP MT 2018 2019 Vs 2018 H2 2019
Galitos Mar-17 193 1.60 164 65 73 1 4 307 -50.1% -70.2% -27.1% 14.1% -59.3% -53.3% (351) Discontinued

Lals Chocolates Oct-18 220 2.19 100 189 192 2 - 482 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 482 Continue

P.F Chang Oct-18 4,843 3.61 1,057 2,862 12,513 756 317 17,504 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 17,504 Continue

Cafe Aylanto Nov-16 5,844 3.68 1,033 2,980 15,104 1,917 457 21,491 35.2% -13.0% 63.2% 70.7% 33.4% 44.1% 6,579 Continue

Fuchsia Nov-16 2,138 3.71 409 1,182 5,408 741 192 7,932 24.6% 10.0% 21.1% 65.6% 149.8% 24.1% 1,540 Continue

Shapes Jan-14 2,097 4.10 1,337 2,668 4,315 80 189 8,590 -14.6% -5.7% -4.2% -15.6% 15.9% -6.2% (565) Continue

Pizza Hut Oct-16 5,795 4.15 11,448 7,574 3,842 57 1,121 24,042 -5.0% 9.5% 16.6% 367.6% -0.2% 2.8% 646 Continue

Pie In The Sky Nov-17 2,407 4.80 3,686 3,344 3,847 79 584 11,540 1.7% 9.7% 31.6% 39.3% 30.4% 14.2% 1,438 Continue

Kababjees Nov-16 3,103 5.49 5,481 2,481 8,450 249 377 17,039 -6.4% -9.2% -1.8% 122.9% 25.3% -3.2% (571) Continue

Cocochan Oct-18 1,378 5.81 805 2,988 3,716 92 400 8,000 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 8,000 Continue

Bar B Q Tonight Jan-15 5,772 5.86 6,340 6,877 19,006 755 855 33,834 14.2% 16.2% 98.5% 152.4% 50.1% 54.4% 11,922 Continue

Yum Sep-18 2,756 6.75 2,087 4,329 11,477 329 382 18,604 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 18,604 Continue

Spice Bazar Sep-18 1,610 8.44 1,509 2,452 9,008 442 183 13,594 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 13,594 Continue

Veranda Bistro Jan-16 336 8.96 86 1,046 1,771 63 48 3,013 -65.5% -39.5% -2.8% 89.7% 111.9% -21.8% (842) Continue

Chashni Aug-18 371 9.21 568 891 1,890 18 51 3,418 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 3,418 Continue

Grand Total 38,862 4.87 36,109 41,928 100,612 5,580 5,160 189,391 -4.4% -6.1% 13.0% 60.4% 23.8% 3.7% 81,399

Key Takeaway
• The spend has enhanced by 3.7% for 2019 for the above mentioned partners 15
 Top 15 Alliances Analysis for Platinum (Avg. per card spend)

All Cards Platinum

Top 15 Alliances
Unique Customers Spending H1 2019 Avg Spend Per Card Unique Customers Spending H1 2019 Avg Spend Per Card

Bar B Q Tonight 4,279 33,866,776 7,915 2,569 19,761,457 7,692

Cafe Aylanto 1,441 21,499,673 14,920 1,485 17,020,642 11,462
P.F Chang 1,510 19,829,019 13,132 1,268 13,268,258 10,464
Yum 1,800 18,617,285 10,343 1,398 11,805,841 8,445
Avari Tower 1,272 22,727,056 17,867 714 11,195,910 15,681
Mandarin Kitchen 901 13,632,184 15,130 1,044 10,901,407 10,442
Spice Bazar 1,013 13,593,566 13,419 746 9,450,347 12,668
Kababjees 2,169 17,038,926 7,856 1,134 8,699,490 7,672
KFC 24,044 58,113,740 2,417 4,281 7,887,293 1,842
Movenpick 860 14,890,400 17,314 399 6,500,065 16,291
Fuchsia 555 7,932,244 14,292 547 6,148,755 11,241
Nike 1,332 15,359,270 11,531 474 5,038,498 10,630
Esajees 1,080 9,605,655 8,894 706 5,000,467 7,083
Mothercare 1,131 11,698,477 10,343 455 4,786,749 10,520
Samsung Outlet 200 10,917,109 54,586 60 4,775,495 79,592

Grand Total 43,587 289,321,379 14,664 17,280 142,240,673 14,782

KEY TAKE AWAY

- Avg. per card spend Platinum = PKR 14,782.
- Platinum ‘s contribution in total alliances spend is 40% which is an increase from 8% from last year.
16
- KFC & Nike are discontinued.
 H2 2019 Alliances Continuation Plan

Business Recommendation
Total Budget 2019 PKR 100 Mn
To be Continued
Alliances
Total
Particulars
Paid FOC
Budget Consumed PKR 48 Mn

Current 71 92 163

Budget Remaining *PKR 52 Mn

Onwards 71 92 163

• Estimated Cost of Alliances for the year 2019 = Rs. 100Mn (includes ~11.5Mn for shapes)
• Business support share Rs. 60Mn budgeted
• Rs. 40Mn to be added from Visa support fund
• Alliances spend increase factor is 15% YoY: provisioned @ 18%

* Premier Platinum Alliances Budget 2019 of Rs.22.3Mn has not been included in this. 17
Bank Alfalah - Confidential
 Profitability Analysis – H1 2018 vs. H1 2019

PKR (000)

Financial Drivers H1-2018 H1-2019 Growth %age KEY HIGHLIGHTS

Total Spend 12,914,462 15,302,507 2,388,045 18%
ENR 1,198,001 1,360,351 162,350 14% - Markup income is increased by 30% in H1 2019 vs. H1
Markup 60,807 79,066 18,259 30% 2018
FTP (34,644) (67,084) (32,439) 94%
NII 26,163 11,983 (14,180) -54% - Non-Funded income is increased by 36% in H1 2019 vs.
IRF 180,802 229,538 48,735 27% H1 2018
Other Fee 23,074 29,347 6,273 27%
Base II (103,316) (122,420) (19,104) 18% - Alliances Spend to cost efficiency has improved
NFI 100,561 136,464 35,903 36% significantly in H1 2019 vs. H1 2018
Total Revenues 126,724 148,447 21,723 17%
Administrative expenses (8,915) (15,420) (6,505) 73%
- Net Profit reflects the impact of Fund Transfer Pricing
Alliances payment (30,125) (48,145) (18,020) 60% change and expense driven by new alliances strategy
Operating Profit 87,683 84,882 (2,801) -3%
General Provision (47,920) (54,414) (6,494) 14%
Specific Provision - - - -
Net Profit / (Loss) 39,763 30,468 (9,295) -23% 18
Bank Alfalah - Confidential
 Success Factors & Future Focus Areas

Program Success Factors : Points to Focus:

• 70% Spend increase on Alliances YoY basis • Visibility at partner sites need to be improved with more

placement of marketing collateral like standees, push/pull

• Focus on FOC Partners Spend increased despite decrease
signs. Menu branding, table tops etc
in number of alliance partners
• Partnership reasoning & exclusivity based on analytical data &
• Brand equity was elevated with selective partners for 2019
strong relationship management
• Rs. 15Bn Retail Spend contribution by customers in the
• Diversification in alliance categories need to be included
year 2018 inclusive of Rs.419 Mn at specific Alliance
especially FOC alliances needs to be focused to curtail cost
partners
• Acquiring & SBS relationship deepening strategy needs to be
• Acquiring partnership was strengthened
implemented along with discount program.

19
Bank Alfalah - Confidential
 Thank You!

Bank Alfalah - Confidential

 New Alliance Onboarding Plan 2019

PKR (000)
Spend 2019 (F) Spend 2018 (A) Discount %
New Partner Name
Total Platinum Premier Gold Total Platinum Premier
NIKE 47,294 14,381 288 14,022 28,690 10% 25%
Adidas 43,853 14,287 286 12,600 27,172 10% 20%
Next 36,225 11,925 238 11,741 23,904 10% 25%
THE BODYSHOP 30,863 8,022 160 9,937 18,119 10% 25%
Cinepax 29,939 4,591 92 6,856 11,539 15% 25%
Fazal Din 25,343 4,196 84 7,193 11,473 0% 20%
Kausar Medicos 18,773 3,907 78 5,629 9,613 20%
STREET 1CAFE 7,897 2,331 47 3,001 5,379 15% 25%
Nir vana Cafe 7,725 2,630 53 2,408 5,091 10% 30%
Neuplex Cinema 7,091 1,422 28 1,856 3,307 15% 20%
SCENTSATION 6,665 1,459 29 2,098 3,586 10% 20%
Str uctur e 5,641 2,278 46 1,771 4,094 10% 25%
READINGS 5,305 1,628 33 1,644 3,305 10% 20%
Saeed book bank 5,148 2,300 46 1,223 3,569 10% 30%
WASABI 4,627 2,202 44 1,226 3,472 10% 25%
BAMBOO UNION 4,535 1,994 40 1,272 3,305 15% 25%
CORE 3,994 1,526 31 1,178 2,735 15% 20%
Metafitnosis 103 87 2 - 89 25% 40%
CFU - - - - -
Total 291,019 81,166 1,623 85,653 168,443

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 Scoring Logic 2018 vs. 2019

2018 2019

• Spend based score- 50% weightage
• Google score – 25% weightage
• Business recommendation – 25% weightage
• Spend based score(On US & Off US) - 65%
weightage
• Google score – 35% weightage
• Brand equity based recommendation by
business

The weightage for analytical data was increased in 2019 scoring model

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Bank Alfalah - Confidential