Investor Presentation
May 7, 2024
Forward-Looking Statements
This presentation and accompanying schedules contain "forward-looking statements" within the meaning of federal securities laws, including statements about expectations for future growth and projections for full year 2024. Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward-looking terminology such as the words "believe," "expect," "plan," "intend," "anticipate," "estimate," "predict," "potential," "continue," "may,""might," "should," "could" or the negative of these terms or similar expressions. We caution you that these statements are not guarantees of future performance and are subject to numerous and evolving risks and uncertainties that we may not be able to predict or assess, such as: a future health crisis and responses to a health crisis, including possible quarantines or other government imposed travel or health-related restrictions and the effects of a health crisis, including the short and longer-term impact on consumer confidence and demand for travel, and the pace of recovery following a health crisis; variations in demand for vacation ownership and exchange products and services; worker absenteeism; price inflation; difficulties associated with implementing new or maintaining existing technology; changes in privacy laws; the impact of a future banking crisis; impacts from natural or man-made disasters and wildfires, including the Maui wildfires; global supply chain disruptions; volatility in the international and national economy and credit markets, including as a result of the ongoing conflicts between Russia and Ukraine, Israel and Gaza, and other conflicts elsewhere in the world and related sanctions and other measures; our ability to attract and retain our global workforce; competitive conditions; the availability of capital to finance growth; the impact of changes in interest rates; the effects of steps we have taken and may continue to take to reduce operating costs; political or social strife; and other matters referred to under the heading "Risk Factors" in our most recent Annual Report on Form 10-K, and which may be updated in our periodic filings with the U.S. Securities and Exchange Commission. All forward-looking statements in this presentation are made as of the date of this presentation and we undertake no obligation to publicly update or revise any forward- looking statement, whether as a result of new information, future events, or otherwise, except as required by law. There maybe other risks and uncertainties that we cannot predict at this time or that we currently do not expect will have a material adverse effect on our financial position, results of operationsor cash flows. Any such risks could cause our results to differ materially from those we express in forward-looking statements.
Non-GAAPFinancial Measures. In this presentation we report certain financial measures that are not prescribed by United States generally accepted accounting principles ("GAAP"). We discuss our reasons for reporting these non-GAAP financial measures herein, and reconcile the most directly comparable GAAP financial measure to each non-GAAP financial measure that we report (in the appendix). Non-GAAP financial measures are identified in the footnotes in the pages that follow and are further explained in the appendix. Although we evaluate and present these non-GAAP financial measures for the reasons described in the appendix, please be aware that these non-GAAP financial measures have limitations and should not be considered in isolation or as a substitute for revenues, net income or loss attributable to common stockholders, earnings orloss per share or any other comparable operating measure prescribed by GAAP. In addition, other companies in our industry may calculate these non-GAAP financial measures differently than we do or may not calculate them at all, limiting their usefulness as comparative measures.
Brands. We refer to brands that we own, as well as those brands that we license, as our brands. All brand names, trademarks, trade names, and service marks names cited in this presentation are the property of their respective owners, including those of other companies and organizations. Solely for convenience, trademarks, trade names, and service marks referred to in this presentation may appear without the ® or TM symbols, however such references are not intended to indicatein any way that MVW or the owner, as applicable, will not assert, to the fullest extent under applicable law, all rights to such trademarks, trade names, and service marks.
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Driving Sustained Long-Term Growth
Unique and resilient business model
Consistent and sustainable growth
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Leading Provider of Vacation Experiences
Vacation Ownership - 87% of Adjusted EBITDA Contribution*
• Sales of vacation ownership products & financing • Management & rentals
7 | ~120 | ~700,000 | Leader in | |||
Iconic Brands | Resorts | Owner Families | Upper Upscale Resorts | |||
Exchange and Third-Party Management - 13% of Adjusted EBITDA Contribution*
- Exchange • Third-party management
~1.6M | >3,200 | Premier | >90 | |||
Interval International | Exchange Resorts | Exchange Company | Countries and Territories | |||
Members | ||||||
All values as of 12/31/2023 and Adjusted EBITDA contribution based on full year 2023 results.
*Adjusted EBITDA contribution and Adjusted EBITDA are non-GAAP measures. For definitions and reconciliation, please see appendix. | 4 |
Evolving and Resilient Business Model
Pre-2011
Today
Outcome
Products | Timeshare + residence + | Timeshare + | Diverse cash flow | ||
fractional ownership | exchange | ||||
Brand | 3 brands | 7 brands | Now selling Marriott- and | ||
Expansion | Hyatt-branded products | ||||
Perpetual sales centers | |||||
Sales Centers | Site-specific | "Sell the system" | across system and more | ||
efficient marketing channels | |||||
Product | Deeded | Primarily points-based | Capital efficient | ||
Structure | weeks-based | ||||
Development | Capital intensive | Capital efficient | High margins and | ||
Model | free cash flow | ||||
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Large and Attractive Addressable Market and Customer Base
Vacation Ownership
~48M
735
~80%
~$125K
Households - addressable market in U.S. alone
Average FICO score
Owners with no loan
Owner median annual income
Addressable households based on 2022 data from the American Community Survey. FICO score based on buyers in full year 2023. Annual income and owners without loans based on all owners as of 12/31/2022. | 6 |
On-Site Guests Drive Vacation Ownership Sales
Pre-paid Vacations Drive | Most Vacation Ownership | ||
High Resort Occupancy | Sales Come from | ||
On-Property Guests1 | |||
88% | 89% | 88% |
~85%
from resort
guests
2019 2022 2023
1. Sales from resort guests based on full year 2023 contract sales. | 7 |
High-Margin Exchange and Third-Party Management Business with Low Capital Intensity
~40% of Members are MVW Vacation Ownership Owners
$130M
Segment
Adjusted EBITDA*
1% | 52% |
Capital Expenditure | Segment |
as % of Revenue (excluding | Adjusted EBITDA Margin* |
Cost Reimbursements) |
All numbers based on full year 2023 results.
*Segment Adjusted EBITDA and Segment Adjusted EBITDA margin are non-GAAP measures. Please see appendix for definitions and reconciliations. | 8 |
Substantial Adjusted EBITDA from Recurring Sources
Adjusted EBITDA Contribution*
Development | Management |
and | |
Exchange |
30%
40%
10% 20%
Financing
Rentals
~35%
of Adjusted EBITDA contribution from recurring sources
All numbers are approximate.
*Adjusted EBITDA Contribution is based on full year 2023 results and is a non-GAAP measure. For definition and reconciliation, please see appendix. | 9 |
Well Positioned To Grow
4 | High margin/cash flow business | |
• Efficient capital and cost controls | ||
provide substantial free cash flow | ||
3 | Strong value proposition | |
• Versus lodging average rates |
2 Spacious upper upscale resorts
- Product well aligned with current vacation style
1 100% leisure focused
- Flexible and resilient to changing work trends
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Marriott Vacations Worldwide Corporation published this content on 07 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 May 2024 11:19:39 UTC.