| --- | --- | --- | --- | --- | --- | --- | --- | |---------------------------------|-------|-------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | Q4 2021 | | | | | | | | | Investor Update | | | | | | | | | Quarterly Results March 1, 2022 | | | | | | | | | | | | | | | | | | | | | | | | | | The acquisition of Diamond Resorts presents a transformational opportunity 1 Significant value creation from scale benefits of combining the largest independent timeshare ...

Financial Data and Key Metrics Changes - Total revenue for Q4 2021 was $872 million, which is 97% of 2019 pro forma combined revenue, excluding sales deferrals [32][35] - Q4 adjusted EBITDA was $281 million, nearly 40% of pro forma combined 2019 EBITDA, reflecting strong operational efficiency [35][36] - Contract sales for the quarter were $521 million, representing 85% of pro forma combined 2019 levels [21][38] Business Line Data and Key Metrics Changes - Real Estate segment profit was $155 million with record margins of 39%, driven by a higher mix of owner sales [41] - Financing segment profit was $34 million with margins of 61%, benefiting from growth in the receivable book [41] - Club and Resort revenue was $144 million for the quarter, with segment profit of $113 million and margins of 76% [45] Market Data and Key Metrics Changes - North America contract sales were over 91% of 2019 levels, while APAC sales finished at 70% of 2019 levels, up 5 points from Q3 [21][22] - Occupancy levels remained strong at roughly 80%, with Orlando meeting 2019 levels [25] - The company expects a gradual recovery in the Japanese market, with positive news regarding the elimination of quarantine requirements [22][23] Company Strategy and Development Direction - The company is focused on integrating Diamond Resorts and enhancing its brand through rebranding initiatives and a new membership program [8][10] - A target EBITDA goal for 2022 has been established, exceeding prior expectations, reflecting confidence in forward demand indicators [8][49] - The company aims to optimize its financial leverage, raising its target leverage range to 2x to 3x [49] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery trajectory despite challenges from the Omicron variant and other external factors [24][30] - The integration of Diamond Resorts is progressing well, with expectations for revenue synergies to ramp up in the second half of the year [20][86] - The company anticipates some margin compression in 2022 but expects to remain above 2019 levels [36][58] Other Important Information - The company has harmonized benefits across its workforce and is focused on training to ensure a consistent service experience [16] - The LPGA Tournament of Champions was a significant success, generating substantial media coverage and sponsorship revenue [17][18] - Adjusted free cash flow for the quarter was $189 million, reflecting strong cash generation capabilities [47] Q&A Session Summary Question: What are the biggest buckets bridging the gap in guidance? - Management highlighted confidence in achieving the guidance of $915 million to $935 million, excluding one-time costs associated with rebranding and synergies [56][57] Question: What is the status of conversions on the Diamond side? - Management noted that Diamond sales have returned to 2019 levels in February, despite some impact from Omicron in January [63] Question: Can you provide details on revenue synergies included in the updated guidance? - Management indicated that revenue synergies will be driven by the rebranding of sales centers and the launch of a new membership program, with significant progress expected in the second half of the year [84][86]

Hilton Grand Vacations Inc. (NYSE:HGV) Q3 2021 Earnings Conference Call November 9, 2021 11:00 AM ET Company Participants Mark Melnyk – Vice President-Investor Relations Mark Wang – President and Chief Executive Officer Dan Mathewes – Chief Financial Officer Conference Call Participants Stephen Grambling – Goldman Sachs Patrick Scholes – Truist Securities Brandt Montour – JPMorgan Operator Good morning, and welcome to the Hilton Grand Vacations Third Quarter 2021 Earnings Conference Call. A telephone replay ...

Hilton Grand Vacations Inc. (NYSE:HGV) Q2 2021 Earnings Conference Call July 29, 2021 11:00 AM ET Company Participants Mark Melnyk - VP of IR Mark Wang - President, CEO & Director Dan Matthews - Executive VP & CFO Conference Call Participants David Katz - Jefferies Patrick Scholes - Truist Brandt Montour - JPMorgan Operator Good morning, and welcome to the Hilton Grand Vacations Second Quarter 2021 Earnings Call. A telephone replay will be available for 7 days following the call. The dial-in number is (844) ...

1 2Q21 Investor Update Quarterly Results and Update July 29, 2021 Forward Looking Statements 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 ...

Performance & Recovery - Open domestic regional markets, like Myrtle Beach, Park City, Hilton Head, and Southern California, showed strong performance, recently exceeding 2019 levels and accounted for 10% of contract sales in 2019[3] - Open domestic destination markets, including Las Vegas and Orlando, experienced a steady recovery with a notable late-quarter uptick and accounted for 40% of contract sales in 2019[5] - Japan demonstrated strong close-rate performance, driving a contract sales rebound and accounted for 12% of contract sales in 2019[6] - Forward bookings are stable at approximately 400,000 and are at 98% of 2019 levels[7] - Forward arrivals are at 91% of 2019 levels[8] Package Sales & Future Tours - 83% of marketing and sampler packages have not yet been booked, indicating a substantial pipeline for future tours[8] - The company's substantial pipeline of prepaid vacation packages will convert to future tours, with 83% still un-booked compared to 81% in the prior year[9] - Package sales trends continue to support the pipeline[10] Acquisition of Diamond Resorts - The acquisition of Diamond Resorts presents a transformational opportunity for the company[11] - The acquisition is expected to generate over $125 million in run-rate cost synergies within the first 24 months following the deal's closure[12] - The acquisition is expected to increase recurring EBITDA streams and drive overall cash flow, with adjusted free cash flow per share accretion in year one[12]

Financial Data and Key Metrics Changes - Total first quarter revenue was $267 million, up 15% sequentially from the fourth quarter [24] - Reported adjusted EBITDA was $60 million, reflecting sequential top line improvement and a material improvement in EBITDA margins [24] - Net income for the quarter was $11 million [25] - The provision for bad debt was $16 million, with an overall allowance on the balance sheet of $270 million or 18% of gross financing receivables [26] Business Line Data and Key Metrics Changes - Total contract sales for the quarter were $139 million, or 57% of the prior year, with tour flow at 42% of the prior year [25] - VPG was up 33% year-over-year and improved sequentially by 8% [25] - Rental and ancillary revenues were $32 million, up 60% from Q4 due to improved travel activity [27] Market Data and Key Metrics Changes - Contract sales in regional markets were nearly 15% higher than 2019 levels [11] - Orlando saw a 16% sequential growth, while Las Vegas properties recovered to nearly 40% of their 2019 contract sales levels [11] - In Japan, contract sales were at 70% of 2019 levels due to lockdowns and travel restrictions [12] Company Strategy and Development Direction - The company is optimistic about the recently announced transaction with Diamond Resorts, which is expected to bring significant scale and product diversity [19] - The focus remains on domestic leisure travel, with expectations for continued recovery as vaccination rates increase [18] - The company plans to enhance its marketing strategies and improve performance through rebranding and cross-selling opportunities post-acquisition [69] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery trends, particularly in Las Vegas and Orlando, while acknowledging risks in Hawaii due to ongoing travel restrictions [34] - The company expects a modestly better Q2, with a sharper ramp in Q3 and Q4, but does not anticipate returning to 2019 levels until 2022 [40] - The management highlighted the importance of monitoring international travel restrictions, particularly from Japan, which could impact future performance [34] Other Important Information - The company has filed its initial antitrust regulatory submission for the Diamond Resorts transaction and is in the process of arranging permanent financing [18] - The liquidity position as of March 31 included $400 million of unrestricted cash and $139 million available under the revolving credit facility [29] Q&A Session All Questions and Answers Question: How to model the back half of the year considering positive data points? - Management acknowledged the positive recovery but cautioned about high comparisons on VPG and the need to monitor international travel restrictions [33][34] Question: Is there a rule of thumb for how a point of conversion may correspond to margin improvement? - Management indicated that while there is considerable flow-through from VPG improvements, the current environment's volatility makes it difficult to provide a blanket rule [42][43] Question: What should be considered in the 5-year revenue and EBITDA outlook? - Management emphasized that 2021 is a recovery year, with expectations to return to 2019 levels in 2022, and highlighted the importance of inventory spend as a sensitivity factor [45][48] Question: How will the acquisition impact marketing channels? - Management expressed excitement about the potential for revenue synergies and improved performance through rebranding and innovative marketing strategies post-acquisition [51][69] Question: What percentage of Diamond customers fit into the HGV product profile? - Management noted that Diamond's customer quality is good, with FICO scores slightly below HGV's, and highlighted the potential for cross-selling opportunities [74]

Hilton Grand Vacations Inc. (NYSE:HGV) Q4 2020 Earnings Conference Call March 1, 2021 11:00 AM ET Company Participants Mark Melnyk - Vice President-Investor Relations Mark Wang - President and Chief Executive Officer Dan Mathewes - Chief Financial Officer Conference Call Participants Patrick Scholes - Truist Securities Ben Chaiken - Credit Suisse David Katz - Jefferies Brandt Montour - JPMorgan Stephen Grambling - Goldman Sachs Operator Good morning, and welcome to Hilton Grand Vacations Fourth Quarter 2020 ...

1 4Q20 Investor Update Quarterly Results and Update March 1, 2021 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 ...

Hilton Grand Vacations, Inc. (NYSE:HGV) Q3 2020 Earnings Conference Call October 29, 2020 11:00 AM ET Company Participants Mark Melnyk – Vice President-Investor Relations Mark Wang – President and Chief Executive Officer Dan Mathewes – Chief Financial Officer Conference Call Participants Jared Shojaian – Wolfe Research Stephen Grambling – Goldman Sachs Patrick Scholes – Truist Securities Brandt Montour – JP Morgan David Katz – Jefferies Operator Good morning, and welcome to Hilton Grand Vacations Third Qua ...