3Q20 INVESTOR UPDATE
QUARTERLY RESULTS AND UPDATE
OCTOBER 29, 2020
This slide presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements convey management's expectations as to HGV's future, and are based on management's beliefs, expectations, assumptions and such plans, estimates, projections and other information available to management at the time HGV makes such statements. Forward-looking statements include all statements that are not historical facts, including those related to HGV's revenues, earnings, cash flow and operations, and may be identified by terminology such as the words "outlook," "believe," "expect," "potential," "goal," "continues," "may," "will,"
"should," "could," "seeks," "approximately," "projects," predicts," "intends," "plans," "estimates," "anticipates" "future," "guidance,"
"target," or the negative version of these words or other comparable words.
HGV cautions you that forward-looking statements involve known and unknown risks, uncertainties and other factors, including those that are beyond HGV's control, that may cause its actual results, performance or achievements to be materially different from
the future results. Factors that could cause HGV's actual results to differ materially from those contemplated by HGV's forward-looking statements include: the material impact of the COVID-19 pandemic on HGV's business, operating results, and financial condition; the extent and duration of the impact of the COVID-19 pandemic on global economic conditions; HGV's ability to meet its liquidity needs; risks related to HGV's indebtedness; inherent business risks, market trends and competition within the timeshare and hospitality industries; HGV's ability to successfully source inventory and market, sell and finance VOIs; default rates on HGV's financing receivables; the reputation of and HGV's ability to access Hilton brands and programs, including the risk of a breach or termination of its license agreement with Hilton; compliance with and changes to United States and global laws and regulations, including those related to anti- corruption and privacy; risks related to HGV's acquisitions, joint ventures, and other partnerships; HGV's dependence on third-party development activities to secure just-in-time inventory; the performance of HGV's information technology systems and its ability to maintain data security; regulatory proceedings or litigation; HGV's ability to attract and retain key executives and employees with skills
and capacity to meet its needs; and natural disasters or adverse geo-political conditions. Any one or more of the foregoing factors could
adversely impact HGV's operations, revenue, operating margins, financial condition and/or credit rating.
For additional information regarding factors that could cause HGV's actual results to differ materially from those expressed or implied in the forward-looking statements in this slide presentation, please see the risk factors discussed in "Part I-Item 1A. Risk Factors"
of HGV's Annual Report on Form 10-K for the fiscal year ended December 31, 2019, as supplemented and updated by the risk factors discussed in "Part II-Item 1A. Risk Factors" of HGV's subsequent Quarterly Reports on Form 10-Q, as well as those described from time to time other periodic reports that it files with the SEC. Except for HGV's ongoing obligations to disclose material information under the federal securities laws, HGV undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments, changes in management's expectations, or otherwise.
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EXECUTED ON KEY INITIATIVES WITHIN OUR STRATEGIC PRIORITIES
1 | 2 | 3 | 4 |
Safeguard | Streamline | Protect | Grow |
our owners, guests and | spending to maintain our | recurring revenue streams | demand and implement |
team members | strong liquidity position and | and embedded value | opportunities to create |
optimize inventory assets | incremental value | ||
Continued rigorous cleaning | Rationalized our cost structure, | Allowed members to roll unused | Grew our package pipeline |
standards under the HGV | removing an annualized $20-25 | points into 2021 to preserve their | sequentially to fuel future |
Enhanced Care Guidelines | million of operating expenses | value | tour growth |
Implemented social distancing, | Identified 31 months of | Maintained positive NOG, adding | Began re-opening our Hawaii |
temperature checks, and PPE use | available liquidity1 | to embedded value | resorts |
by guests and team members | |||
Streamlined our on-site sales & | |||
marketing operating model | |||
Priorities to win the fight today… | …and in the future |
2 | 1. Under a September 2020 run-rate real estate and rental revenue scenario |
2
Grow
OPEN DOMESTIC REGIONAL MARKETS 1 - RAPID RECOVERY
- Our outdoor-oriented beach and mountain destinations have recovered quickly
- Accounted for 10% of our contract sales in 2019
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Rapid Tour Recovery | Coupled With Strong Close Rates | Driving A Strong Contract Sales Recovery | |||||||||||||||||||||||||||||||||||||||||||||||||
Percent of Prior Year | Percent of Prior Year | ||||||||||||||||||||||||||||||||||||||||||||||||||
100% | 40% | 100% | |||||||||||||||||||||||||||||||||||||||||||||||||
75% | 20% | 75% | |||||||||||||||||||||||||||||||||||||||||||||||||
50% | 50% | ||||||||||||||||||||||||||||||||||||||||||||||||||
0% | |||||||||||||||||||||||||||||||||||||||||||||||||||
25% | 25% | ||||||||||||||||||||||||||||||||||||||||||||||||||
0% | -20% | 0% | |||||||||||||||||||||||||||||||||||||||||||||||||
Apr May Jun | Jul | Aug Sep | Apr May Jun | Jul | Aug Sep | Apr May Jun | Jul | Aug Sep | |||||||||||||||||||||||||||||||||||||||||||
YOY Change (% pts) | Close Rate | ||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Source: HGV company data |
1. Open regional markets include Myrtle Beach, Park City, Hilton Head, Southern California | |
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Hilton Grand Vacations Inc. published this content on 29 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 October 2020 14:39:02 UTC