Q2 2026 Aimia Inc Earnings Call

August 11, 2026

Operator 2: Good morning, ladies and gentlemen, and welcome to the Aimia Inc. Q2 2026 results conference call. At this time, all lines are in listen only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Tuesday, 11 August 2026. Now I would like to turn the conference over to Joe Racanelli. Please go ahead.

Operator: Good morning, ladies and gentlemen, and welcome to the Aimia Inc. Q2 2026 Results Conference Call. At this time, all lines are in listen only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Tuesday, 11 August 2026. Now I would like to turn the conference over to Joe Racanelli. Please go ahead.

Speaker #1: Good morning, ladies and gentlemen, and welcome to the Aimia Incorporated's second quarter 2026 results conference call. At this time, all lines are in listen-only mode.

Speaker #1: Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press *0 for the operator.

Speaker #1: This call is being recorded on Tuesday, August 11, 2026. And now, I would like to turn the conference over to Joe Racanelli. Please go ahead.

Speaker #2: Thank you, operator, and good morning, everyone. Joining me on today's call are Rhys Summerton, Aimia's executive chairman, and Steven Leonard, the company's president and chief financial officer.

Steven Leonard: Thank you, operator, and good morning everyone. Joining me on today's call are Rhys Summerton, Aimia's Executive Chairman, and Steven Leonard, the company's President and Chief Financial Officer. Before we begin with our prepared remarks, I do want to point out that we issued our final financial results for Q2 earlier this morning. All of our materials, including the news release, MD&A, and financial statements, are available from our website as well as from our profile page on SEDAR+. We will be using a presentation today, and for those listening to our discussion by phone, a copy is available on the IR section of our website. Most importantly, some of the statements made on today's call may contain forward-looking information and future results may differ materially from what we discuss.

Joe Racanelli: Thank you, operator, and good morning everyone. Joining me on today's call are Rhys Summerton, Aimia's Executive Chairman, and Steven Leonard, the company's President and Chief Financial Officer. Before we begin with our prepared remarks, I do want to point out that we issued our final financial results for Q2 earlier this morning. All of our materials, including the news release, MD&A, and financial statements, are available from our website as well as from our profile page on SEDAR+. We will be using a presentation today, and for those listening to our discussion by phone, a copy is available on the IR section of our website. Most importantly, some of the statements made on today's call may contain forward-looking information and future results may differ materially from what we discuss.

Speaker #2: Before we begin, with our prepared remarks, I do want to point out that we assured our final financial results for the second quarter earlier this morning, all of our materials, including the news release, MD&A, and financial statements, are available from our website as well as from our profile page on Cedar Plus.

Speaker #2: We will be using a presentation today, and for those listening to our discussion by phone, a copy is available on the IR section of our website.

Speaker #2: Most importantly, some of the statements made on today's call may contain forward-looking information and future results may differ materially from what we discuss. Please refer to the risks and uncertainties that may affect our future performance referenced in our presentation as well as in the MD&A.

Steven Leonard: Please refer to the risks and uncertainties that may affect our future performance referenced in our presentation as well as in the MD&A. In addition, we will be making note of GAAP and non-GAAP financial measures. Reconciliation of these items is provided in the appendix of our presentation. Following today's presentation, please reach out to me if you have any outstanding questions or require any clarification of the items that we discuss today. Please go ahead, Rhys.

Joe Racanelli: Please refer to the risks and uncertainties that may affect our future performance referenced in our presentation as well as in the MD&A. In addition, we will be making note of GAAP and non-GAAP financial measures. Reconciliation of these items is provided in the appendix of our presentation. Following today's presentation, please reach out to me if you have any outstanding questions or require any clarification of the items that we discuss today. Please go ahead, Rhys.

Speaker #2: In addition, we will be making note of GAAP and non-GAAP financial measures. Reconciliation of these items is provided in the appendix of our presentation.

Speaker #2: And following today's presentation, please reach out to me if you have any outstanding questions or require any clarification of the items that we discussed today.

Speaker #2: Please go ahead, Rhys.

Speaker #3: Thanks, Joe. Good morning, everybody. Thank you for joining us. Before we head over to questions on this call, Steven and I will briefly discuss some of the salient highlights of the second quarter.

Rhys Summerton: Thanks, Joe. Good morning, everybody. Thank you for joining us. Before we head over to questions on this call, Steve and I will briefly discuss some of the salient highlights of the second quarter. Just to kick off with, we were especially active this quarter. We're kind of getting used to being especially active. We've completed several objectives that we set out for in the year. In particular, we closed the sale of Bozzetto, which generated net proceeds of CAD 270 million. We grew our net book value by 22% to reach $3.74 per share. We completed a tender offer to purchase senior notes due in January 2030, reducing our interest cost materially.

Speaker #3: Just to kick off with, we were especially active this quarter; we kind of getting used to being especially active. We've completed several objectives. That we set out for in the year.

Speaker #3: In particular, we closed the sale of Bizetta, which generated net proceeds of $270 million. We grew our net book value by 22% to reach $3.74 per share. We completed a tender offer to purchase Senior Notes due in January 2030, reducing our interest cost materially. We took action to improve call times and ability to capitalize on the opportunities, and we're quite excited about this, which we'll elaborate on more in the presentation.

Rhys Summerton: We took action to improve Cortland's ability to capitalize on the opportunities, and we're quite excited about this, which we'll elaborate on more in the presentation, and also to grow market share in Cortland. Importantly, we started to deploy capital in some investment opportunities consistent with our strategy. We renewed our buyback program to buy up to 5 million common shares, which will take us through to June 2027. Our performance and milestones completed in the quarter provide clear evidence that we are making progress against our strategy. We have a lot more that we would like to report in the future, and we look forward to doing that. I'll expand on the outlook and priorities as we go through the presentation. But first, I will ask Steve to review our financial results.

Speaker #3: And also to grow market share in Courtland. And importantly, we started to deploy capital in some investment opportunities consistent with our strategy, and we renewed our buyback program to buy up to $5 million common shares which will take us through to June 2027.

Speaker #3: So our performance and milestones completed in the quarter provide a clear evidence that we are making progress against our strategy. We have a lot more that we would like to report in the future, and we look forward to doing that.

Speaker #3: And I'll expand on the outlook and priorities as we go through the presentation. But first, I will ask Steve to review our financial results.

Speaker #3: Before Steve gets going, though, we want to congratulate him for becoming a granddad in the early hours of this morning and still being dedicated enough to make the call a few hours later.

Rhys Summerton: Before Steve gets going, though, we want to congratulate him for becoming a granddad in the early hours of this morning and still being dedicated to make the call a few hours later. Steve, over to you and congratulations.

Speaker #3: So Steve, over to you, and congratulations.

Speaker #4: Thank you, Rhys. Good morning and good afternoon, everyone. Before we look at our financial performance in more detail, I wanted to begin my discussion today by reviewing the key highlights of the Bizetto transaction and its impact on our Q2 results, as outlined on slide 7.

Steven Leonard: Thank you, Rhys. Good morning and afternoon, everyone. Before we look at our financial performance in more detail, I wanted to begin my discussion today by reviewing the key highlights of the Bozzetto transaction and its impact on our Q2 results, as outlined on slide seven. First, it is important to understand that Bozzetto was classified as discontinued operations. As a result, Bozzetto's contributions were excluded from Aimia's Q2 results from continuing operations, with the exception of cash flow from operations and net earnings, which are presented on a consolidated basis and include Bozzetto's results. Second, the transaction generated net proceeds of CAD 270 million, including CAD 1.8 million received in July relating to our finalization of the working capital and the debt closing accounts.

Speaker #4: First, it's important to understand that Bizetto was classified as discontinued operations, as a result, Bizetto's contributions were excluded from Aimia's Q2 results from continuing operations, with the exception of cash flow from operations and net earnings which are presented on a consolidated basis and include Bizetto's results.

Speaker #4: Second, the transaction generated net proceeds of $270 million, including $1.8 million received in July relating to our finalization of the working capital and the debt closing accounts.

Speaker #4: Third, the transaction resulted in a net gain of $21.7 million, a total that favorably impacted our EPS and our net book value per share at quarter end.

Steven Leonard: Third, the transaction resulted in a net gain of CAD 21.7 million, a total that favorably impacted our EPS and our net book value per share at quarter end. Finally, I should point out that we did not incur any income tax on this transaction as we offset approximately CAD 45 million of the taxable capital gain by utilizing our capital loss carryforwards. Turning to our financial highlights, as you see from slide eight, our results from continuing operations, that is Cortland and the Holdco segment in Q2, were largely in line with the prior year period. Revenue was CAD 36.4 million compared to CAD 37.8 million last year. Gross profit was CAD 8.7 million compared to CAD 8.8 million in Q2 2025. Adjusted EBITDA was CAD 2.3 million compared to CAD 2.8 million last year. The modest decline to reflect the impact of geopolitical and macroeconomic developments on our rope and netting solutions business.

Speaker #4: Finally, I should point out that we did not incur any income tax on this transaction, as we offset approximately $45 million of the taxable capital gain by utilizing our capital loss carry forwards.

Speaker #4: Turning to our financial highlights, as you see from slide 8, our results from continuing operations—that is, Courtland and the whole co-segment—in Q2 were largely in line with the prior year period.

Speaker #4: Revenue was $36.4 million compared to $37.8 million last year. Gross profit was $8.7 million compared to $8.8 million in Q2 2025. Adjusted EBITDA was $2.3 million, compared to $2.8 million last year.

Speaker #4: The modest decline to reflect the impact of geopolitical and macroeconomic developments on our rope and netting solutions business. We expect those conditions to improve in the second half of the year.

Steven Leonard: We expect those conditions to improve in the H2 of the year. One positive item to note relates to the continued reduction in SG&A expenses at the holding level. The decrease reflects the benefits of ongoing efforts to reduce Holdco costs for items such as insurance, rent, and professional services. I should point out that our Holdco expenses, in particular, would have been lower by CAD 600,000 if not for costs incurred relating to one-time strategic initiatives, particularly related to dual listing activities in the UK. Cortland results for the second quarter are presented on slide nine. In Q2, Cortland generated CAD 36.4 million of revenue, down CAD 3.7 million from last year. The year-over-year decline was due to lower sales volume, particularly in projects for the offshore energy sector and lower demand across the broader market due to higher selling prices.

Speaker #4: One positive item to note relates to the continued reduction in SG&A expenses at the holding level. The decrease reflects the benefits of ongoing efforts to reduce local costs for items such as insurance, rent, and professional services.

Speaker #4: I should point out that our HoldCo expense, in particular, would have been lower by $600,000 if not for costs incurred relating to one-time strategic initiatives, particularly related to dual listing activities in the UK.

Speaker #4: Courtland results for the second quarter are presented on slide 9. In Q2, Courtland generated $36.4 million of revenue, down $3.7 million from last year.

Speaker #4: The year-over-year decline was due to lower sales volume, particularly in projects for the offshore energy sector, and lower demand across the broader market due to higher selling prices.

Speaker #4: Courtland revenue decline was partially offset by pricing surcharges implemented in response to the rising raw material and freight costs, which have impacted which were impacted by the rising oil prices related to the geopolitical events in the Middle East.

Steven Leonard: Cortland revenue decline was partially offset by pricing surcharges implemented in response to the rising raw material and freight costs, which were impacted by the rising oil prices related to the geopolitical events in the Middle East. Cortland's adjusted EBITDA in Q2 2026 was CAD 4.4 million, down from CAD 4.9 million last year. The decline was mainly due to lower sales volume. To capitalize on emerging opportunities, we implemented a number of changes at Cortland aimed at improving sales, strengthening relationships with customers, improving operations, and consolidating leadership. In part of these efforts, Thomas Cherian, a finance leader with more than 30 years of experience, will join Cortland CEO Wolfgang Wandl as CFO in our Houston office.

Speaker #4: Courtland's adjusted EBITDA in Q2 26 was 4.4 million, down from 4.9 million last year. The decline was mainly due to lower sales volume. To capitalize on emerging opportunities, we implemented a number of changes at Courtland aimed at improving sales, strengthening relationships with customers, improving operations, and consolidating leadership.

Speaker #4: In part of these efforts, Thomas Cherrien, a finance leader with more than 30 years of experience, will join Courtland's CEO, Wolfgang Wandel, as CFO in our Houston office.

Speaker #4: Given the increased focus on growing sales and building customer relationships, we are optimistic that Courtland is primed for a stronger second half of the year, pending the easing of tensions in the Middle East.

Steven Leonard: Given the increased focus on growing sales and building customer relationships, we are optimistic that Cortland is primed for a stronger H2 of the year, pending the easing of tensions in the Middle East. We ended the quarter with CAD 294.5 million of cash on a consolidated basis, up from CAD 100.3 million at the end of March. Slide 9 shows a waterfall of cash movements in the quarter. The key driver in the increase in liquidity was CAD 268.2 million of cash proceeds from the Bozzetto transaction. As I mentioned earlier, we received another CAD 1.8 million in July related to the closing the working capital and the debt balances. Other increases in Q2 include CAD 2.7 million of cash flow from operations.

Speaker #4: We ended the quarter with $294.5 million of cash on a consolidated basis, up from $100.3 million at the end of March. Slide 9 shows a waterfall of cash movements in the quarter.

Speaker #4: The key driver in the increase in liquidity was $268.2 million of cash proceeds from the Bizetto transaction. And as I mentioned earlier, we received another $1.8 million in July related to the closing the working capital and the debt balances.

Speaker #4: Other increases in Q2 include $2.7 million of cash flow from operations. The increase in liquidity was offset by an outflow that included $22.6 million of principal repayments on the Bozzetto credit facilities prior to closing, $25 million of Bozzetto’s cash at closing, $7.5 million of interest payments, $4.3 million of investments in property, plant, and equipment, $1.8 million towards the buyback of shares, and $11.8 million in net marketable security investments.

Steven Leonard: The increase in liquidity was offset by an outflow that included CAD 22.6 million of principal repayments on the Bozzetto credit facilities prior to closing, CAD 25 million of Bozzetto's cash at closing, CAD 7.5 million of interest payments, CAD 4.3 million in investments in property, plant, and equipment, CAD 1.8 million towards the buyback of shares, and CAD 11.8 million in net marketable security investments. Looking at our liquidity more closely on slide 11, you see a breakdown of our cash position by segment at the end of June. Our consolidated liquidity includes CAD 268.8 million of cash held at the holding segment and CAD 7.7 million at Cortland. Looking ahead, we plan to deploy the capital towards investment opportunities consistent with the strategy outlined previously. Over the next 12 months, we anticipate that Holdco expenses will approximate CAD 7 million.

Speaker #4: Looking at our liquidity more closely on slide 11, you see a breakdown of our cash position by segment. At the end of June, our consolidated liquidity includes $268.8 million of cash held at the holding segment and $7.7 million at Courtland.

Speaker #4: Looking ahead, we plan to deploy the capital towards investment opportunities consistent with the strategy outlined previously. Over the next 12 months, we anticipate that whole co-expenses will approximate $7 million.

Speaker #4: Earlier, we mentioned that key development in Q2 was the completion of the offer to purchase our senior note set mature in January 2030. The purchase offer was triggered by the sale of Bizetto, the offer expired on June 26, and we made a payment of $131.4 million for validly tendered notes and interest owing on July 3rd after our reporting period.

Steven Leonard: Earlier, we mentioned that key development in Q2 was the completion of the offer to purchase our senior notes that mature in January 2030. The purchase offer was triggered by the sale of Bozzetto. The offer expired on 26 June, and we made a payment of CAD 131.4 million for validly tendered notes and interest owing on 3 July after our reporting period. In the interest of transparency, slide 12 illustrates the impact of the tender offer on our liquidity on a pro forma basis. When taking into account the senior notes repayment, our pro forma liquidity was CAD 173.2 million, which consisted of CAD 163.1 million of cash, CAD 12 million of marketable securities, less CAD 2 million of other current borrowings. Post paydown of the notes tendered, we have a balance of CAD 11.2 million in principal notes outstanding through the maturity in January 2030. That concludes my prepared remarks.

Speaker #4: In the interest of transparency, slide 12 illustrates the impact of the tender offer on our liquidity on a pro forma basis. When taking into account the senior notes repayment, our pro forma liquidity was $173.2 million, which consisted of $100 consisted of $163.1 million of cash, $12 million of marketable securities, less $2 million of other current borrowings.

Speaker #4: Post paydown of the notes tendered, we have a balance of $11.2 million in principal notes, outstanding through the maturity, in January 2030. That concludes my prepared remarks.

Speaker #4: I'd like to turn the call back to Rhys for his closing remarks. Rhys,

Steven Leonard: I'd like to turn the call back to Rhys for his closing remarks. Rhys?

Speaker #2: Yeah, thank you, Steve. Well done. So going to slide 14, previously I mentioned that one of our strategic objectives was to grow intrinsic value and it's up to each investor and those that are interested to kind of calculate the intrinsic value of Aimia.

Rhys Summerton: Yeah. Well done. So going to slide 14. Previously, I mentioned that one of our strategic objectives was to grow intrinsic value, and it's up to each investor and those that are interested to calculate the intrinsic value of Aimia. But the net book or net asset value per share does indicate the trajectory of it. And if you measure net asset value per share, you'll notice that we increased this by 22% to CAD 3.74 after the sale of Bozzetto. We don't expect similar gains to come through regularly or on a quarterly basis. Obviously, this was episodic. There will be some lumpiness in the periods ahead. But as I wrote in the chairman's letter, what you should expect over time is that this net book value per share should appreciate if we make the right decisions.

Speaker #2: But the netbook or net asset value per share does indicate the trajectory of it. And if you measure net asset value per share, you'll notice that we increased this by 22% to $3.74 after the sale of Bizetto.

Speaker #2: We don't expect similar gains to come through regularly or on a quarterly basis, obviously this was episodic. There will be some lumpiness in the periods ahead.

Speaker #2: But as I wrote in the chairman's letter, what you should expect over time is that this net book value per share should appreciate if we do, if we make the right decisions.

Speaker #2: And we would hope that that would outperform any of the benchmarks that are out there, like the S&P 500. That's what we regard as what would be par.

Rhys Summerton: And we would hope that that would outperform any of the benchmarks that are out there, like the S&P 500. That's what we regard as what would be par. So we want to do a bit better than that over the long term, and that will benefit all shareholders. Going on to slide 15. As you have heard on this call, Q2 was particularly active. And as I said, I think that's something that we're getting used to. We will be active going forward. Our focus on the coming months will be to continue this momentum. In particular, our priorities in the near term will center on continuing and following through on the improvements that we are seeing at Cortland from both a sales point of view and operations. That's starting to already bear fruit. We continue to identify and work very hard at identifying target investment opportunities.

Speaker #2: So, we want to do a bit better than that over the long term, and that will benefit all shareholders. Going on to slide 15, as you have heard on this call, the second quarter was particularly active.

Speaker #2: And as I said, I think that's something that we're getting used to. We will be active going forward. Our focus in the coming months will be to continue this momentum. In particular, our priorities in the near term will center on continuing and following through on the improvements that we are seeing at Courtland, from both a sales point of view and operations.

Speaker #2: That's starting to already bear fruit. We continue to identify and work very hard at identifying target investment opportunities. We're deploying the capital in a very disciplined way with the ultimate goal, as always, to enhance shareholder value. And finally, we'll complete the listing in the UK, which will be a secondary listing on AIM.

Rhys Summerton: We're deploying the capital in a very disciplined way, with the ultimate goal, as always, to enhance shareholder value. And finally, we'll complete the listing in the UK, which will be a secondary listing on AIM. But over the longer term, which is really the important part, our focus will be, as I said, to grow the net book value or net asset value per share, which will benefit all of us. So with that, thank you for your time thus far. We'll open to questions. Joe?

Speaker #2: But over the longer term, which is really the important part, our focus will be, as I said, to grow the net book value or net asset value per share, which will benefit all of us.

Speaker #2: So, with that, thank you for your time thus far. We'll open it to questions. Joe?

Speaker #3: Thank you. Ladies and.

Operator 2: Thank you. Ladies-

Operator: Thank you. Ladies-

Speaker #2: For the operator.

Rhys Summerton: Or the operator.

Speaker #3: Apologies on that. Ladies and gentlemen, we will now begin the question and answer session. If you have any question, please press start, followed by the number one on your touchstone phone.

Operator 2: Apologies on that. Ladies and gentlemen, we will now begin the question and answer session. If you have any question, please press star followed by the number 1 on your touchtone phone, and you will hear a prompt that your hand has been raised. If you wish to decline from the polling process, please press star followed by the number 2. Your first question comes from the line of Surinder Sain of Jefferies. Please go ahead.

Operator: Apologies on that. Ladies and gentlemen, we will now begin the question and answer session. If you have any question, please press star followed by the number 1 on your touchtone phone, and you will hear a prompt that your hand has been raised. If you wish to decline from the polling process, please press star followed by the number 2. Your first question comes from the line of Surinder Sain of Jefferies. Please go ahead.

Speaker #3: And you will hear a prompt that your hand has been raised. If you wish to decline from the polling process, please press star followed by the number two.

Speaker #3: And your first question comes from the line of Surrender Saint of Jeffries. Please go ahead.

Surinder Sain: Thank you. A few different questions in a few different areas. I would like to start with Cortland. Given the changes that you guys are making at this point, from your perspective, what would constitute success over maybe the next 12 to 24 months? Is the idea the focus on the top line, the margin component, or anything else? What is the timeframe that we should be thinking about that you are trying to benchmark yourself over so that the changes that you are making are kind of visible to the front?

Surinder Singh: Thank you. A few different questions in a few different areas. I would like to start with Cortland. Given the changes that you guys are making at this point, from your perspective, what would constitute success over maybe the next 12 to 24 months? Is the idea the focus on the top line, the margin component, or anything else? What is the timeframe that we should be thinking about that you are trying to benchmark yourself over so that the changes that you are making are kind of visible to the front?

Speaker #4: Thank you. A few different questions in a few different areas. I'd like to start with Courtland. Given the changes that you guys are making at this point, from your perspective, what would constitute success over maybe the next 12 to 24 months?

Speaker #4: Is the idea of the focus on the top line, the margin component, or anything else? And then maybe just, what is the timeframe that we should be thinking about that you're trying to benchmark yourself over so that the changes that you're making are kind of visible to the front?

Speaker #2: Yeah, I'll take that, and Steve might want to add on afterwards. But let me just give you some context around Courtland, which might be useful.

Rhys Summerton: Yeah. I will take that, and Steven might want to add on afterwards. Let me just give you some context around Cortland, which might be useful. When I got involved in Aimia just over a year ago, we reviewed the portfolio of investments. Since I have been involved, there have been multiple opportunities where we could have taken the opportunity to exit Cortland and turn that into cash and raise a lot of money from it. It has been my decision to turn that down. The reason is that I see a lot of opportunity to make Cortland into a long-term kind of serial acquirer or growth platform, if you like. The building blocks that we have put in place thus far are just the start.

Speaker #2: When I got involved in Aimia just over a year ago, we reviewed the portfolio of investments. And since I've been involved, there have been multiple opportunities where we could have taken the opportunity to exit Courtland.

Speaker #2: And turn that into cash and raise a lot of money from it. It's been my decision to turn that down, and the reason is that I see a lot of opportunity to make Courtland into a long-term, kind of serial acquirer or growth platform, if you like.

Speaker #2: And the building blocks that we've put in place thus far are just the start. So and I appreciate you kind of want a time horizon about when you will start to see the turnaround and how to quantify it.

Rhys Summerton: I appreciate that you kind of want a time horizon about when you will start to see the turnaround and how to quantify it, and I will get there. What I would say is that there is such low-hanging fruit to improve Cortland that the changes that we have made, even just in this very early stage, are easy things to do. You will start to see the improvement, we believe, in the H2 of this year already. We are not asking you to look even 24 months down the road for that improvement. We think you will start to see them already. We are seeing that coming through in the forward load and in the numbers on a weekly basis. We want to make sure that that is sustainable, and that is the important part.

Speaker #2: And I'll get there. But what I would say is that there's such low-hanging fruit to improve Courtland that the changes we've made, even just in this very early stage, are easy things to do.

Speaker #2: And you'll start to see the improvement, we believe, in the second half of this year already. So we don't ask you to look even 24 months down the road.

Speaker #2: For that improvement, we think you will start to see them already and we have seen that coming through in the forward load and in the numbers on a weekly basis.

Speaker #2: Now, we want to make sure that that's sustainable, and that's the important part. So we will—I think it's very likely, barring some geopolitical issue, that you will see the improvement coming through.

Rhys Summerton: I think it is very likely barring some geopolitical issue that you will see the improvements coming through. Over the longer term, what is the opportunity for Cortland? This gets really exciting, is if you take all the opportunities around where Cortland perhaps does not have a presence or could be enhanced with local on-the-ground participation, you will start to see that there are opportunities for Cortland to grow. We have world-class manufacturing out of India. We can improve distribution. We are improving sales already, and we can improve the product delivery around all of that. If you put all those points together, I think that you will see, both in the short term and the longer term, a vastly improved Cortland as a group. Will it require us to make some bolt-on acquisitions along the way? Definitely.

Speaker #2: Now, over the longer term, what's the opportunity for Courtland? And this gets really exciting. Is if you take all the opportunities around where Courtland perhaps doesn't have a presence or could be enhanced with local on-the-ground participation you'll start to see that there's opportunities for Courtland to grow.

Speaker #2: So, we have world-class manufacturing out of India. We can improve distribution. We've improved sales already, and we can improve the product delivery around all of that.

Speaker #2: And if you put all those points together, I think that you will see, both in the short term and the longer term, a vastly improved Courtland as a group.

Speaker #2: Will it require us to make some bolt-on acquisitions along the way? Definitely. And I think what those acquisitions do is they small, but they improve our geographic coverage.

Rhys Summerton: I think what those acquisitions do is they are small, but they improve our geographic coverage, and they also make the overall business less reliant on a few key markets. We want to be a global player in this, and I think there is a real opportunity for Cortland to get there. To answer your question, short term, we think you will see an improvement. Longer term, I think you will see that Cortland becomes a very important part of Aimia going forward.

Speaker #2: And they also make the overall business less reliant on a few key markets. So we want to be a global player in this. And I think there's a real opportunity for Courtland to get there.

Speaker #2: So, to answer your question: short term, we think you'll see an improvement. Longer term, I think you'll see that Courtland becomes a very important part of Aimia going forward.

Speaker #4: That's helpful. And then, maybe, could you expand upon the near-term outlook? In the sense of, as you expect things to get better, is that primarily a reflection of the macro getting better, or what are the conditions you're assuming that are leading to things getting better in the near-term or in the back half of '26?

Surinder Sain: That is helpful. Then maybe could you expand upon the near-term outlook in the sense of, as you expect things to get better, is that primarily a reflection of the macro getting better? Or maybe what are the conditions you are assuming that are leading to things getting better in the near term or in the back H2 of 2026?

Surinder Singh: That is helpful. Then maybe could you expand upon the near-term outlook in the sense of, as you expect things to get better, is that primarily a reflection of the macro getting better? Or maybe what are the conditions you are assuming that are leading to things getting better in the near term or in the back H2 of 2026?

Speaker #2: I think… surrender that. Sorry. Okay, go ahead, Rhys. No, you go, Steve. You go.

Steven Leonard: I think, Surinder, that

Rhys Summerton: Sometimes that

Steven Leonard: Sorry. Okay, go ahead, Rhys. No.

Surinder Sain: No. You go, Steve. You go.

Surinder Singh: No. You go, Steve. You go.

Speaker #1: No, I think what we're seeing is what happened as we came into 2026 what happened coming mid-Q1 to end of Q1 with what happened in the Middle East and impact on oil that rippled through the cost structure.

Steven Leonard: No, I think what we are seeing is what happened as we came into 2026, what happened coming mid Q1 to end of Q1 with what happened in the Middle East and impact on oil, that rippled through the cost structure. We made some changes, as you have seen in our prepared remarks, on adjusting our selling prices. This was not just Aimia, or sorry, Cortland. This was other competitors as well doing that. Some of the downstream users of these products were making decisions on drawing down inventories and delaying purchasing decisions with an expectation that things would improve. We have seen some of that happen, as it depends on the week or the day, what is going on with the geopolitical events. But we are seeing, as Rhys said, stronger orders in H2. So we are seeing some of that.

Speaker #1: We made some changes, as you've seen in our repair remarks on adjusting our selling prices. And this wasn't just Aimia—or sorry, Courtland—this was other competitors as well doing that.

Speaker #1: And some of the downstream users of these products were making decisions on drawing down inventories and delaying purchasing decisions. With an expectation that things would improve.

Speaker #1: And we've seen some of that happen as it depends on the week or the day what's going on with the geopolitical events. But we are seeing, as Rhys said, stronger orders in the second half, so we're seeing some of that ultimately these downstream users of these products still need to.

Steven Leonard: Ultimately, these downstream users of these products still need them. So, the delays that they made in Q2 are starting to get pulled through in H2. So that is one thing we are seeing. Then obviously, another area that we expect to be improving is on the margin side, both on gross margin and EBITDA. So you should see an improvement of that in H2.

Speaker #1: So, the delays that they made in the second quarter are starting to get pulled through in the second half. So, that's one thing we're seeing.

Speaker #1: And then, obviously, another area that we expect to be improving is on the margin side, both on gross margin and EBITDA. So you should see an improvement of that in the second half.

Speaker #4: That's helpful.

Surinder Sain: That is helpful.

Surinder Singh: That is helpful.

Speaker #2: And I'll just add there.

Rhys Summerton: I will just add there.

Speaker #4: Yep.

Surinder Sain: Yep.

Surinder Singh: Yep.

Speaker #2: Sorry, if I just add, the way to look at Courtland Courtland in the past and we see this a lot with different businesses. You get businesses that are simply accident-prone.

Rhys Summerton: Sorry. If I could just add. The way to look at Cortland in the past, and we see this a lot with different businesses. You get businesses that are simply accident-prone. What do I mean by that? I mean that whatever event happens in the world, it seems to have a negative impact on them. What that really means is that a business isn't resilient. There's no backup. It doesn't have this built-in resiliency that we want. The changes that we've made in Cortland is to make it a lot more resilient and defensive against macro events that happen. We don't want to be necessarily exposed each and every time there's some kind of issue in the world. Cortland needs to stand on its own and to be able to deliver good results almost in spite of the environment around it.

Speaker #2: So what do I mean by that? I mean that whatever event happens in the world, they seem to have it seems to have a negative impact on them.

Speaker #2: And what that really means is that a business isn't resilient. There's no backup. It doesn't have the built-in resiliency that we want. So, the changes that we've made in Courtland are to make it a lot more resilient and defensive against the kind of macro events that happen.

Speaker #2: So we don't want to be necessarily exposed each and every time there's some kind of issue in the world. Courtland needs to stand on its own and to be able to deliver a good result almost in spite of the environment around it.

Rhys Summerton: The way we're going to get there is by diversifying where we get the revenues from a lot more and relying on the management team, which are now in place and operating very well, to deliver.

Speaker #2: And the way we're going to get there is by diversifying where we get the revenues from a lot more, and relying on the management team, which are now in place and operating very well, to deliver.

Speaker #4: Thank you. And then maybe I'll sneak in one more when we look back at maybe the Bozeto acquisition and can you maybe talk about the lessons learned there or maybe how this is going to influence kind of the future acquisition framework?

Surinder Sain: Thank you. Then maybe I'll sneak in one more. When we look back at maybe the Bozzetto acquisition, can you maybe talk about the lessons learned there or maybe how this is going to influence the future acquisition framework? Any color there would be helpful, and then maybe any areas that maybe are off-limits from an industry perspective and areas that you're definitely interested in.

Surinder Singh: Thank you. Then maybe I'll sneak in one more. When we look back at maybe the Bozzetto acquisition, can you maybe talk about the lessons learned there or maybe how this is going to influence the future acquisition framework? Any color there would be helpful, and then maybe any areas that maybe are off-limits from an industry perspective and areas that you're definitely interested in.

Speaker #4: Any color there would be helpful and then maybe any areas that maybe are off-limits from an industry perspective and areas that you're definitely interested in, so.

Speaker #2: Yeah, that's a good question. So obviously, Bozeto was kind of before my time. And when I reviewed what was in Aimia, obviously, we knew what was in Aimia before we even got involved.

Rhys Summerton: Yeah, that's a good question. Obviously, Bozzetto was before my time. When I reviewed what was in Aimia, obviously, we knew what was in Aimia before we even got involved. What we realized about Bozzetto is that it was an asset that had really good management. It was operating as well as it possibly could be operating. But it lacked one crucial thing for Aimia as a permanent capital vehicle. There would be a struggle, and it would be the wrong thing to take cash away from Bozzetto and to use that cash to pay down debt all the time. I would say the mistake that was made, at least from an outsider's point of view, is that the gearing was too high on Bozzetto at an Aimia level.

Speaker #2: And what we realized about Bozeto is that it was an asset that had really good management. It was operating as well as it possibly could be operating.

Speaker #2: But it lacked one crucial thing for Aimia as a permanent capital vehicle. There would be a struggle, and it would be the wrong thing to take cash away from Bozeto and to use that cash to pay down debt all the time.

Speaker #2: So I would say the mistake that was made at least from an outsider's point of view is that it was the gearing was too high on Bozeto.

Speaker #2: And at Aimia level, and it meant that we were then having this 9.75% debt at the whole core level. Which needed to be serviced.

Rhys Summerton: And it meant that we were then having this 9.75% debt at the Holdco level, which needed to be serviced. And so you were kind of starving Bozzetto of cash that it could use to make acquisitions and grow, simply because you were trying to fuel a Holdco in Aimia. So the key lesson I think is, and obviously we all know this, is when we look for acquisitions, we are looking for things that are not going to take up large amounts of funding. Everything that we have looked at thus far has got net cash on the balance sheet. And we now have cash at the center, and we will deploy it into opportunities where we will enhance our cash balance rather than reduce our cash balance. And we really do not want to get into the game of taking on big debt at the Aimia Holdco level.

Speaker #2: And so you were kind of starving Bozeto of cash that it could use to make acquisitions and grow. Simply because you were trying to fuel a whole core in Aimia.

Speaker #2: So the key lesson, I think, is and obviously, we all know this, is when we look for acquisitions, we are looking for things that are not going to take up large amounts of funding.

Speaker #2: Everything that we've looked at thus far has got net cash on the balance sheet. And we now have cash at the center. And we will deploy it into opportunities where we will enhance our cash balance rather than reduce our cash balance.

Speaker #2: And we really don't want to get into the game of taking on big debt at the Aimia wholecore level. So, if I had to say what was the key takeaway, that would be the primary one.

Rhys Summerton: So, if I had to say what was the key takeaway, that should be the primary one. The secondary one is that anything we buy, we have to make sure that the management teams that we acquire understand that we will make the capital allocation decisions. We will allocate the capital that they generate. It is not up to them to allocate the capital. So those are really good points that I guess Aimia has learnt. I would also probably say that the motivation to do some of those acquisitions in the past is not the same motivation as today. Today, I am a significant shareholder, directly, indirectly. The board of Aimia has, I do not know, close to 45% of the shares. And every acquisition we do is reviewed by the board. Even before we buy 1% of it gets reviewed by the board. So there is a lot of alignment.

Speaker #2: The secondary one is that anything we buy we have to make sure that the management teams the management teams that we acquire understand that we will make the capital allocation decisions.

Speaker #2: We will allocate the capital that they generate. It's not up to them to allocate the capital. So those are really good points that, I guess, Aimia has learned.

Speaker #2: I would also probably say that the motivation to do some of those acquisitions in the past is not the same motivation as today. Today, I'm a significant shareholder, directly and indirectly.

Speaker #2: The board of Aimia has I don't know if close to 45% of the shares. And every acquisition we do is reviewed by the board even before we buy 1% of it.

Speaker #2: It gets reviewed by the Board. So there's a lot of alignment. We're not trying to rush to do any acquisitions, but we're very excited about all the acquisition potential that's out there.

Rhys Summerton: We are not trying to rush to do any acquisitions. But we are very excited about all the acquisition potential that is out there because there is just so many. And so, we are very excited about the opportunity set.

Speaker #2: Because there are just so many, we're very excited about the opportunity set.

Joe Racanelli: Rhys, before we go on to the other-

Speaker #4: Rhys, before we go.

Surinder Sain: That is really helpful. So I appreciate that. Thank you.

Surinder Singh: That is really helpful. So I appreciate that. Thank you.

Speaker #2: That's really helpful.

Speaker #4: I appreciate that. Thank you.

Joe Racanelli: Good. Thank you. Rhys Summerton, before we go on to other callers with questions, have received a couple of emails since the start of our presentation. So one question to you in particular. You mentioned that you are excited about Cortland's opportunities for growth. How much of Aimia's cash are you willing to deploy towards funding its growth instead of investing in new companies?

Speaker #1: Thank you. Rhys, before we go on to other callers with questions, we have received a couple of emails since the start of our presentation. And so, one question to you in particular.

Speaker #1: You mentioned that you're excited about Courtland's opportunities for growth. How much of Aimia's cash are you willing to deploy towards funding its growth, instead of investing in new companies?

[Unknown Analyst]: You mentioned that you are excited about Cortland's opportunities for growth. How much of Aimia's cash are you willing to deploy towards funding its growth instead of investing in new companies?

Rhys Summerton: That is also a good question. I would say that, bear in mind that Cortland is cash flow generative already. So, we think that the bulk of acquisitions that we would look at in Cortland would be self-funded by the business. Also, Cortland has some cash and has no debt. So there is a potential to take on some gearing in Cortland if the acquisition opportunity presented itself. But the opportunities that we have looked at so far wouldn't require cash from, or significant cash from Aimia, from the Holdco at all. We would try and self-fund it from the Cortland level.

Speaker #2: That's also a good question. I would say that bear in mind that Courtland is cash flow generative, already. So we think that the bottom acquisitions that we would look at in Courtland would be self-funded.

Speaker #2: By the business. Also, Courtland has some cash and has no debt. So there's a potential to take on some gearing in Courtland if the acquisition opportunity presented itself.

Speaker #2: But the opportunities that we've looked at so far wouldn't require cash, or significant cash, from Aimia from the whole core at all. We would try and self-fund it from the Courtland level.

Speaker #1: Good. Should we be using netbook value as the main metric to measure Aimia's progress?

Joe Racanelli: Should we be using net book value as the main metric to measure Aimia's progress?

[Unknown Analyst]: Should we be using net book value as the main metric to measure Aimia's progress?

Speaker #2: I think that net book value per share—it's important to stress the per share part—because we do have a share buyback program, which executes virtually daily.

Rhys Summerton: I think that net book value per share, it is important to stress the per share part because we do have a share buyback program, which executes virtually daily. Net book value per share would indicate the direction of travel of the intrinsic value. There are some swings and roundabouts, there is some positives and some negatives to what I would perhaps estimate intrinsic value is, but that is not something we will share. For investors, it might be a good heuristic to use net book value per share, and certainly the change in net book value per share, I think would be a very useful metric to measure Aimia's success on. In fact, I would think it would be unlikely that net book value per share would grow and intrinsic value per share would not grow along the same kind of path as the book value per share.

Speaker #2: So, net book value per share would indicate the direction of travel of the intrinsic value. There are some swings and roundabouts, there are some positives and some negatives to what I would perhaps estimate intrinsic value is.

Speaker #2: But that's not something we will share. For investors, it might be a good heuristic to use net book value per share—and certainly, the change in net book value per share, I think, would be a very useful metric to measure Aimia's success on.

Speaker #2: In fact, I would think it would be unlikely that netbook value per share would grow and intrinsic value per share would not grow along the same kind of path as the book value per share.

Speaker #2: So it's a useful metric. It's one of the useful metrics. But obviously, every investor must decide for themselves what metric they use.

Rhys Summerton: It is a useful metric. It is one of the useful metrics, but obviously every investor must decide for themselves what metric they use.

Speaker #3: And your next question comes from the line of Rob Bide of Zeus Capital. Please go ahead.

Operator 2: Your next question comes from the line of Rob Bid of Zeus Capital. Please go ahead.

Operator: Your next question comes from the line of Rob Bid of Zeus Capital. Please go ahead.

Speaker #5: Hi there, everybody. Two from me, please. Can you talk a little bit more about the reasons for the further listing in the UK? And perhaps give a little bit more color on the sectors or industries you're going to be focusing on.

Rob Bid: Hi there, everybody. Two from me, please. Can you talk a little bit more about the reasons for the further listing in the UK? Perhaps give a little bit more color on the sectors or industries you are going to be focusing on. Is this just UK or are you going to be looking at the wider European market? My second one was, I guess, closer to home, just on Cortland. You talk in your statement about price surcharges. Could you talk a bit about how frequently you can adjust prices? Is this a quarterly or annual process? Thank you.

Rob Byde: Hi there, everybody. Two from me, please. Can you talk a little bit more about the reasons for the further listing in the UK? Perhaps give a little bit more color on the sectors or industries you are going to be focusing on. Is this just UK or are you going to be looking at the wider European market? My second one was, I guess, closer to home, just on Cortland. You talk in your statement about price surcharges. Could you talk a bit about how frequently you can adjust prices? Is this a quarterly or annual process? Thank you.

Speaker #5: And is this just UK or are you going to be looking at the wider European sort of market? And then my second one was, I guess, closer to home, just on Courtland.

Speaker #5: You talk in your statement about price surcharges. Could you talk a bit about how frequently you can adjust prices? Is this a sort of quarterly or annual process?

Speaker #5: Thank you.

Speaker #2: Thanks. I'll take the first one and Steve. I don't know if you want to answer the second one now and then I can revert back to the first question.

Rhys Summerton: Thanks. I'll take the first one. Steve, I don't know if you want to answer the second one now, then I can revert back to the first question. Yeah, I'll do that, Rhys, then you can come back.

Rhys Summerton: Thanks. I'll take the first one. Steve, I don't know if you want to answer the second one now, then I can revert back to the first question.

Speaker #4: Yeah, I'll do this, I'll do that, Rhys, and then you can come back.

Steven Leonard: Yeah, I'll do that, Rhys, then you can come back. Yeah. Cortland has a dynamic pricing model with its clients where with the implementation or the impact on the input pricing, mainly on raw materials, they were adjusting their pricing. That is not daily and it's not annually. It's more on a more frequent, 2 or 3 times a month that they're looking at this in terms of pricing.

Speaker #2: Yeah. Courtland has a dynamic pricing model with its clients where with the implementation or the impact on the input pricing, mainly on raw materials, they were adjusting their pricing.

Steven Leonard: Yeah. Cortland has a dynamic pricing model with its clients where with the implementation or the impact on the input pricing, mainly on raw materials, they were adjusting their pricing. That is not daily and it's not annually. It's more on a more frequent, 2 or 3 times a month that they're looking at this in terms of pricing.

Speaker #2: And that is not daily, and it's not annually. It's more on a frequent basis—two or three times a month—that they're looking at this in terms of pricing.

Speaker #4: Yeah. On your first question, so the most of the opportunities that we are looking at are in the UK. And so it does make sense to have a listing in the UK.

Rhys Summerton: Yeah. On your first question, most of the opportunities that we are looking at are in the UK. So it does make sense to have a listing in the UK for opportunities that might present themselves. I think we've discussed this on prior calls as well. But we're certainly not going to have listings in every place that we want to make acquisitions. But where the bulk of the acquisitions may sit, we'll probably have a listing there. But I would say that if you had to look at Aimia maybe 10 years from now, I would expect the primary listing to be in the US and not anywhere else. So, that's kind of the direction of travel. How we get there, we'll have to do a little bit of an excursion into the UK. Obviously we do have a listing on the JSE as well.

Speaker #4: For opportunities that might present themselves. I think we've discussed this on prior calls as well. But we certainly are not going to have listings in every place that we want to make acquisitions.

Speaker #4: But where the bulk of the acquisitions may sit we'll probably have a listing there. But I would say that if you had to look at Aimia, maybe 10 years from now, I would expect the primary listing to be in the US and not anywhere else.

Speaker #4: So that's kind of the direction of travel, how we get there. We'll have to do a little bit of an excursion. Into the UK and obviously, we do have a listing on the JSC as well.

Speaker #4: Now, the opportunities that we see at the UK, there are so many. And so attractive. That we don't really see a need to look at Europe.

Rhys Summerton: Now, the opportunities that we see in the UK, there are so many and so attractive that we don't really see a need to look at Europe. We're kind of not fans of socialism that much. So, we've avoided Europe. We've actually exited Europe with the sale of Bozzetto. So to go back there would be pretty interesting, and it would have to really be attractive. But just to give you some flavor about the opportunities that we've looked at and are looking at, we are looking at things in Canada, the UK, and other markets, other kind of Western countries as well. So, it's really driven by where we see the most value. We are completely agnostic. Now, eventually, though, and we don't want to take too much time with getting to the eventually, we want to utilize the tax losses because that's where there's real value.

Speaker #4: We're kind of not fans of socialism that much, so we've avoided Europe. We've actually exited Europe with the sale of Busetta, so to go back there would be pretty interesting.

Speaker #4: It would have to be really, really, really be attractive. But just to give you some flavor about the opportunities that we've looked at and are looking at, we are looking at things in Canada, the UK, and other markets, other kind of Western countries as well.

Speaker #4: So it's really driven by where we see the most value. And we are completely agnostic. Now, eventually, though, eventually, and we don't want to take too much time with getting to the eventually.

Speaker #4: We want to utilize the tax losses because that's where there's real value. So the sooner we get to utilize those losses, the better. Now, we use a little we utilize a little bit of that with the sale of Busetta and we'll utilize a little bit more in the first in the third quarter.

Rhys Summerton: The sooner we get to utilize those losses, the better. We utilized a little bit of that with the sale of Bozzetto and we will utilize a little bit more in Q3. But where we want to get to is to be able to utilize those tax losses, having made good acquisitions along the way, that will generate lots of free cash flow for Aimia to continue compounding.

Speaker #4: But where we want to get to is to be able to utilize those tax losses having made good acquisitions along the way. That will generate lots of free cash flow for Aimia to continue compounding.

Speaker #5: Thanks, Rhys. Thank you.

Rob Bid: Thanks, Rhys. Thank you.

Rob Byde: Thanks, Rhys. Thank you.

Speaker #4: Thank you.

Rhys Summerton: Thank you.

Speaker #3: As a reminder, if you wish to ask a question, please press star one to join the queue. And we have another question.

Operator 2: As a reminder, if you wish to ask a question, please press star one to join the queue. We have another question.

Operator: As a reminder, if you wish to ask a question, please press star one to join the queue. We have another question.

Joe Racanelli: Sure. Rhys, we have received a couple other email questions. One relates to Clear Media. What are your plans for Aimia's investment in Clear Media?

Joe Racanelli: Sure. Rhys, we have received a couple other email questions. One relates to Clear Media.

Speaker #4: Sure. Rhys, we've received a couple other email questions one relates to Clear Media. What are your plans for Aimia's investment in Clear Media?

[Unknown Speaker 1]: What are your plans for Aimia's investment in Clear Media?

Rhys Summerton: Clear Media is turning around. The results are definitely improving year-on-year. I still think there is a long runway to go with that business, and this would be the wrong time to monetize that investment. At the right time, we will obviously have something to report back to our investors. For now, it is turning around and the results are improving. We are kind of happy sitting with that going along for the journey to recovery.

Speaker #2: Clear Media is turning around. The results are definitely improving. Year on year. I still think there's a long runway to go. With that business.

Speaker #2: And this would be the wrong time to monetize that investment. At the right time, we will obviously have something to report back to investors.

Speaker #2: But for now, it's turning around and the results are improving. So we kind of happy sitting with that going along for the journey to recovery.

Joe Racanelli: Great.

Speaker #2: Sorry, Joe, was there another question?

Rhys Summerton: Sorry, Joe, was there another question?

Speaker #4: One more question and I noticed somebody else in the queue. So can you talk or explain the process that you're using to identify investment targets?

Joe Racanelli: One more question and I noticed there is somebody else in queue. Can you talk or explain the process that you are using to identify investment targets?

Joe Racanelli: One more question and I noticed there is somebody else in queue.

[Unknown Speaker 2]: Can you talk or explain the process that you are using to identify investment targets?

Speaker #2: Yes. That's a good one. Where can Aimia compete? That's the real question. At the moment, you're finding a lot of companies are getting acquired by private equity and they're obviously looking at the same kind of companies that we are.

Rhys Summerton: Yeah. That is a good one. Where can Aimia compete? That is the real question. At the moment, you are finding a lot of companies are getting acquired by private equity. They are obviously looking at the same kind of companies that we are. Aimia can compete in a slightly better way, I would say. That is that if you take an average sort of competitor of Aimia or somebody else looking for opportunities or acquisitions, they are going to screen the market, start doing due diligence, knock on the company's door, and make an offer. We try to look for hidden value that might be in some of these companies that the rest of the market has not seen. So far we have been able to identify situations that really are neglected by the market. There might be very low interest from existing investors.

Speaker #2: But Aimia can compete in a slightly better way, I would say. And that is that if you take an average sort of competitor of Aimia or somebody else looking for opportunities or acquisitions, they're going to screen the market by doing due diligence and knock on the company's door.

Speaker #2: And make an offer. What we try to do is look for hidden value that might be in some of these companies that the rest of the market hasn't seen.

Speaker #2: And so far, we've been able to identify situations that really are neglected by the market. There might be very low interest from existing investors.

Speaker #2: You can kind of see that with AGM turnouts. You can see that some shareholders are kind of suffocated in that share register and that they might want to get out for whatever reason, but they can't.

Rhys Summerton: You can kind of see that with AGM turnouts. You can see that some shareholders are kind of suffocated in that share register and that they might want to get out for whatever reason, but they cannot. We can help them raise liquidity by buying their shares. It gives us the opportunity to actually buy into these companies at far more attractive prices than what private equity can buy into these companies at. Private equity sort of makes these premium offers and then sees what happens afterwards. With us, we can build equity stakes beforehand, which may or may not lead to an offer, depending on what happens to the share price. The other thing that is in our favor is if we start building a position in an investment or a target, there is nothing stopping us from reversing course and exiting that investment.

Speaker #2: And we can help them raise liquidity by buying their shares. And it gives us the opportunity to actually buy into these companies at far more attractive prices than what private equity can buy into these companies at.

Speaker #2: Private equity sort of makes these premium offers and then sees what happens afterwards. With us, we can build equity stakes beforehand, which may or may not lead to an offer.

Speaker #2: Depending on what happens to the share price. And the other thing that is in our favor is, if we start building a position in an investment or a target, there's nothing stopping us from reversing course and exiting that investment.

Speaker #2: So for example, if we buy into a company and the share price rallies, and we no longer think it's all that attractive, we can then exit that investment at a realized profit.

Rhys Summerton: For example, if we buy into a company and the share price rallies, and we no longer think it is all that attractive, we can then exit that investment at a realized profit. There are multiple reasons why we should be able to execute better than what our competitors are doing. When it comes to actually screening the market for ideas, I do not think there is any substitute for hard work. We are visiting companies, meeting with companies, reading annual reports, doing all the things that just the basic due diligence would require to develop a framework and find opportunities. Like I said earlier, there are multiple opportunities that we are looking at.

Speaker #2: So there's multiple reasons why we should be able to execute better than what our competitors are doing. But when it comes to actually screening the market for ideas, I don't think there's any substitute for hard work.

Speaker #2: And we are visiting companies, meeting with companies, reading annual reports, doing all the things that just the basic due diligence would require to develop a framework and find opportunities.

Speaker #2: And like I said earlier, there are multiple opportunities that we are looking at.

Speaker #3: And your next question comes from the line of Conrad Scherkogel of Goldman Sachs. Please go ahead.

Operator 2: Your next question comes from the line of Conrad Surcugo of Goldman Sachs. Please go ahead.

Operator: Your next question comes from the line of Conrad Surcugo of Goldman Sachs. Please go ahead.

Speaker #5: Thank you for the opportunity. The Busetta transaction is interesting because it's Italian-based and despite that, maybe Steve or Rhys, you can give me a bit of an accounting lesson.

Conrad Surcugo: Thank you for the opportunity. The Bozzetto transaction is interesting because it is Italian-based. Despite that, maybe Steven or Rhys, you can give me a bit of an accounting lesson. When the transaction was finalized, you were able to utilize the tax losses, the capital loss carry forwards. How did that come about? Linked to that and also linked to your previous response, Rhys, where you said if you make an investment and there is a capital gain or if the stock remains listed, I would assume, has moved beyond intrinsic value and you exit. Will you always structure your transactions in such a way that in the back of your mind, because this capital losses now has become alive, it is a real number we can look at because it has been utilized, that that can be utilized?

Conrad Scheurkogel: Thank you for the opportunity. The Bozzetto transaction is interesting because it is Italian-based. Despite that, maybe Steven or Rhys, you can give me a bit of an accounting lesson. When the transaction was finalized, you were able to utilize the tax losses, the capital loss carry forwards. How did that come about? Linked to that and also linked to your previous response, Rhys, where you said if you make an investment and there is a capital gain or if the stock remains listed, I would assume, has moved beyond intrinsic value and you exit. Will you always structure your transactions in such a way that in the back of your mind, because this capital losses now has become alive, it is a real number we can look at because it has been utilized, that that can be utilized?

Speaker #5: The when the transaction was finalized, you were able to utilize the tax losses. The capital loss carried forwards. How did that come about? And then link to that and also link to your previous response, Rhys, where you said if you make an investment and there's a capital gain or the stock price if the stock remains listed, I would assume, is has moved beyond intrinsic value.

Speaker #5: And you exit. Will you always structure your transactions in such a way that in the back of your mind, because this capital loss is now become alive, it's a real number we can look at because it's being utilized.

Speaker #5: That can be utilized, or it's going to be very rule-based depending on the geographies where you make your investments. And I bring back a previous questioner's question about UK listing.

Conrad Surcugo: Or it is going to be very rule-based depending on geographies where you make your investments? I bring back a previous questioner's, the question about a UK listing. Is that part of it is to be structured in such a way that if you upstream dividends or cash flow again, that these tax losses can be utilized? That is my one question. The second question is just on, I noticed that there is CAD 12.1 million of securities that has come about. If you can give us a little bit of detail on that. Thank you.

Conrad Scheurkogel: Or it is going to be very rule-based depending on geographies where you make your investments? I bring back a previous questioner's, the question about a UK listing. Is that part of it is to be structured in such a way that if you upstream dividends or cash flow again, that these tax losses can be utilized? That is my one question. The second question is just on, I noticed that there is CAD 12.1 million of securities that has come about. If you can give us a little bit of detail on that. Thank you.

Speaker #5: Is that part of it is to be structured in such a way that if you upstream dividends or cash flow, again, that these tax losses can be utilized?

Speaker #5: That's my one question. The second question is just on I noticed that there's 12.1 million dollars of securities that has come about. If you can give us a little bit of detail on that.

Speaker #5: Thank you.

Rhys Summerton: I will answer the tax question, Rhys. You can answer the first. Yeah. Yeah, you go for it. So Aimia, as we have disclosed in our notes on the tax losses, the capital losses, which represent about half of our losses that we have quoted, so about CAD 500 million. Those losses are held by the Canadian Aimia Inc. company in terms of the structure. So when we are placing investments or doing certain activities on the investing side, our preferred approach in the structure, unless there is other good reasons to do it differently, but in the case of Bozzetto, we held the Italian business under the Canadian company parent, which had the taxable losses, capital losses. So when we realized the taxable capital gain, even though the business is located in Italy, the owner of the business of that 94% in Bozzetto was Aimia.

Speaker #2: I'll answer the tax question, Rhys. Yeah, you go.

Speaker #4: So yeah, so Aimia as we've disclosed in our notes on the tax losses, the capital losses that we which represent about half of our losses that we've quoted.

Speaker #4: So, about $500 million Canadian. Those losses are held by the Canadian Aimia Inc. company in terms of the structure. So, when we are placing investments or doing certain activities on the investing side, our preferred approach in the structure—unless there's other good reasons to do it differently—but in the case of Busetta, we held the Italian business under the Canadian company parent.

Speaker #4: Which had the taxable losses capital losses. So when we realized the taxable capital gain, even though the business is located in Italy, the owner of the business of our that 94% in Busetta was Aimia.

Speaker #4: So the gain taxable gain would be mitigated by the utilization of the capital losses. And that's we applied 45 million of our capital losses against the Busetta gain.

Steven Leonard: So the taxable gain would be mitigated by the utilization of the capital losses. We applied CAD 45 million of our capital losses against the Bozzetto gain. That was the tax gain on the transaction. On the investments that we are making, it is a similar scenario where in the first course, we will invest through the parent company that has the capital losses, and then subsequently, when we sell those businesses, we would use those losses against taxable gains. I hope that answers your question on the tax piece.

Speaker #4: That was the tax gain on the transaction. On the investments, that we're making, it's a similar scenario where in the first course, we'll invest through the parent company that has the capital losses and then subsequently when we sell those businesses, we would use those losses against taxable gains.

Speaker #4: I hope that answers your question on the tax piece.

Speaker #5: And then if you can just expand on dividends and cash flow that's being upstreamed.

Conrad Surcugo: And then if you can just expand on dividends and cash flow that is being upstreamed.

Conrad Scheurkogel: And then if you can just expand on dividends and cash flow that is being upstreamed.

Speaker #4: Yeah. So, I mean, there are different elements tied to certain sources of income. Dividends, we would look to use on the operating side—so again, the Canadian business. Holdco has Canadian operating losses that we can mitigate.

Rhys Summerton: Yeah. So, there are different elements tied to certain sources of income. Dividends, we would look to use the operating side of the. So again, the Canadian business Holdco has Canadian operating losses that we can mitigate. Likewise, if we put a downstream loan into one of the businesses, that is another way where you have interest income coming up to the parent company, and you can mitigate.

Speaker #4: And likewise, if we put a downstream loan into one of the businesses, that's another way where you have interest income coming up to the parent company and you can mitigate them.

Speaker #4: So, there are different ways you can structure things in order to utilize your tax attributes efficiently, and we look at all of those when we're considering our structures.

Steven Leonard: So there are different ways you structure things in terms to utilize your tax attributes efficiently, and we look at all of those when we are looking at our structures.

Speaker #5: Perfect. Thank you.

Conrad Surcugo: Perfect. Thank you.

Conrad Scheurkogel: Perfect. Thank you.

Speaker #2: Yeah. And just the it's a good point because when people talk about serial acquirers and what makes a good serial acquirer, they always mention it's the sort of autonomous management structure and then they go next and talk about those long runway of potential acquisitions, etc., etc.

Rhys Summerton: Yeah. It is a good point because when people talk about serial acquirers and what makes a good serial acquirer, they always mention it is the sort of autonomous management structure. Then they go next and talk about this long runway of potential acquisitions, et cetera. But one of the real things that you need to look for in a serial acquirer is having an advantaged tax base, and that is what Aimia has, which really is why it is such an attractive business for me to look at. We are running NOLs of CAD 1.1 billion, which we can utilize through different ways. One will be utilizing them for acquisitions that we make eventually in Canada and the US, and also through any other profitable transactions we enter into in the rest of the world. Rest assured, we will utilize it, and it is a real strength of Aimia as a serial acquirer.

Speaker #2: But one of the real things that you need to look for in a serial acquirer is having an advantaged tax base, and that's what Aimia has, which really is why it's such an attractive business for me to look at.

Speaker #2: We've running NOLs of 1.1 billion. Which we can utilize through different ways. One will be utilizing them for acquisitions that we make eventually in Canada and the US and also through any other profitable transactions we enter into.

Speaker #2: In the rest of the world. So rest assured, we will utilize it, and it's a real strength of Aimia as a serial acquirer. I think your other question was about the $12.1 million in marketable securities.

Rhys Summerton: I think your other question was about the CAD 12.1 million in marketable securities and

Speaker #2: And obviously, we're not going to talk about that. These are investments that we've made, and it's kind of a little bit like getting your toes wet with your socks on.

Conrad Surcugo: Right. Yeah.

Conrad Scheurkogel: Right. Yeah.

Rhys Summerton: obviously, we are not going to talk about that. These are investments that we have made, and it is kind of a little bit like getting your toes wet with your socks on, really. They are really preliminary investments in companies that we think are very attractively priced and ones that potentially we would love to own eventually. Now, that very much depends on the price, that we are able to acquire those companies. If the share prices rally away from the price that we paid, clearly they are not as attractive as they were. We will reevaluate each time. That is why I say we have enormous flexibility, and that is something that we must never lose in Aimia. We must maintain and even enhance the flexibility we have to be able to pursue transactions.

Speaker #2: They really preliminary investments in companies that we think are very attractively priced. And ones that potentially we would love to own eventually. Now, that very much depends on the price.

Speaker #2: That we're able to acquire those companies at. If the share price is rally away from the price that we paid, clearly, they're not as attractive as they were.

Speaker #2: And so we will re-evaluate each time, and that's why I say we have enormous flexibility—and that's something that we must never lose in Aimia.

Speaker #2: We must maintain and even enhance the flexibility we have. To be able to pursue transactions. So I would caution against trying to work out what Aimia's kind of wanting to do next with its with the investments that we make because we might swing around and change given price changes.

Rhys Summerton: I would caution against trying to work out what Aimia is kind of wanting to do next with the investments that we make because we might swing around and change given price changes. I would say, though, that there are really good opportunities which we are starting to deploy the capital into. I think each one of the core ones I am very excited about. I just hope we can execute on it.

Speaker #2: I would say though, that the opportunities they are really good opportunities which we are starting to deploy the capital into and I think each one of them each one of the core ones I'm very excited about.

Speaker #2: I just hope we can execute on it.

Speaker #5: Okay. Thank you very much. But in essence, I'm not of the names. It was more sort of see that you now start to live the one of the four parts of the strategy, the underlying investments in undervalued assets.

Conrad Surcugo: Okay. Thank you very much. But in essence, I am not after names. It was more sort of see that you now start to live one of the core parts of the strategy, the underlying investments in undervalue assets.

Conrad Scheurkogel: Okay. Thank you very much. But in essence, I am not after names. It was more sort of see that you now start to live one of the core parts of the strategy, the underlying investments in undervalue assets.

Speaker #2: Absolutely, Russ. Yeah, we want to—they're in marketable securities. So that's very much the strategy: to build stakes without paying premiums. And that's really why I caution against trying to work out what we may or may not do, because we don't want to be paying premiums if we do decide to buy out a company.

Rhys Summerton: Absolutely, Russ. They are in marketable security, so that is very much the strategy, to build stakes without paying premiums. That is really why I caution against trying to work out what we may or may not do because we do not want to be paying premiums if we do decide to buy out a company. Investors are way better off being invested in Aimia, I think, because that is where the benefit should ultimately flow into. It is not going to flow into kind of the private equity model of 30% to 40% premiums on an acquisition.

Speaker #2: So investors are way better off being invested in Aimia I think because that's where the benefit should ultimately flow into. It's not going to flow into kind of the private equity model of 30, 40% premiums on an acquisition.

Speaker #5: Perfect. Thank you. Thank you, Rhys.

Conrad Surcugo: Perfect. Thank you. Thank you, Rhys.

Conrad Scheurkogel: Perfect. Thank you. Thank you, Rhys.

Speaker #2: Thank you.

Rhys Summerton: Thank you.

Speaker #1: And there are no further questions at this time. I will now turn the call over to Joe Racanelli. Please continue.

Operator 2: There are no further questions at this time. I will now turn the call over to Joe Racanelli. Please continue.

Operator: There are no further questions at this time. I will now turn the call over to Joe Racanelli. Please continue.

Speaker #4: Thank you everyone for joining us today. And as mentioned earlier, if you do have any follow-up questions or if we didn't address any issues that you would like for us to expand on, please do reach out to me.

Joe Racanelli: Thank you everyone for joining us today. As I have mentioned earlier, if you do have any follow-up questions or if we did not address any issues that you would like for us to expand on, please do reach out to me. We will make ourselves available. Have a good day, everyone.

Speaker #4: We'll make ourselves available. Have a good day, everyone.

Operator 2: Ladies and gentlemen, this concludes today's conference call. Thank you all for your participation. You may now disconnect.

Operator: Ladies and gentlemen, this concludes today's conference call. Thank you all for your participation. You may now disconnect.

Q2 2026 Aimia Inc Earnings Call

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