HGV Investor Overview M A R C H 2 0 2 6 Forward Looking Statements This 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 the future of HGV, and are based on management's beliefs, expectations, assumptions and such plans, estimates, projections and other information available to management at the time ...

Core Insights - Hilton Grand Vacations (HGV) reported a 35% growth in HGV Max memberships, driven by the introduction of Max to Bluegreen members and upgrades from the legacy member base [1] - The company achieved a 10% growth in contract sales and an adjusted EBITDA of $1.15 billion for 2025, reflecting a 4% year-over-year increase [2][7] - HGV returned over $600 million to shareholders in 2025, with plans for continued capital returns as a primary use of free cash flow [1][17] Financial Performance - For the fourth quarter, total revenue reached $1.3 billion, up 1%, with adjusted EBITDA to shareholders of $324 million, marking a 12% increase [12] - The real estate segment saw contract sales grow by 2% to $852 million, with tours increasing by 9% year-over-year to 225,000 [13] - The financing segment reported revenue of $134 million and profit of $81 million, with a 60% margin [14] 2026 Outlook - HGV's guidance for 2026 targets adjusted EBITDA between $1.185 billion and $1.225 billion, with low single-digit contract sales growth anticipated [6][18] - The company expects expense headwinds of approximately $15 million to $20 million from license fee step-ups and $10 million to $15 million from financing optimization [6][18] - HGV plans to maintain a disciplined approach to leverage, with an ending net leverage of approximately 3.78x and over $1 billion in liquidity [20] Operational Highlights - The company achieved a $100 million cost synergy target ahead of schedule and expanded its marketing efforts by opening 41 new sites with partners [9][2] - HGV Max adoption has increased the lifetime value for Max members by over 20% compared to non-Max members [9] - The company is evaluating its inventory strategy, particularly regarding acquired properties that may not align with its long-term vision [21] Shareholder Returns - In 2025, HGV returned $600 million to shareholders through share repurchases, reducing the float by over 20% [17] - The company has repurchased an additional 1.9 million shares for $89 million in early 2026, with plans to continue repurchasing approximately $150 million per quarter [18] Member Dynamics - HGV has over 720,000 members, with 266,000 being Max members, of which 175,000 are new buyers from the last four years [21] - The company noted that the Max membership skew is relatively newer, contributing to a higher lifetime value [21]

Financial Data and Key Metrics Changes - Contract sales grew by 10% in 2025, marking the highest growth since 2022, with Adjusted EBITDA of $1.15 billion, a 4% increase year-over-year [16][18] - Total revenue before cost reimbursements for the quarter increased by 1% to $1.3 billion, with Adjusted EBITDA to shareholders growing 12% to $324 million [18][19] - Adjusted free cash flow for the year was $756 million, or over $8.25 per share, with 79% of that cash flow returned to shareholders [17][26] Business Line Data and Key Metrics Changes - In the real estate business, contract sales for the quarter grew 2% to $852 million, with tours up 9% year-over-year to 225,000 [18][19] - The financing business reported revenues of $134 million for the fourth quarter, with profit margins of 60% [20] - The resort and club business saw revenue growth of 6% to $219 million for the quarter, with segment profit margins of 73% [24] Market Data and Key Metrics Changes - The company surpassed pro forma consolidated 2019 tour flow levels for the first time, indicating strong recovery and growth in market demand [11][18] - The annualized default rate for consolidated portfolios improved to 9.86%, reflecting a 24 basis points improvement from the previous quarter [21] Company Strategy and Development Direction - The company is focused on four strategic priorities: attracting new customers cost-effectively, enhancing member lifetime value, product evolution and innovation, and driving operational excellence [10][12] - The introduction of HGV Max has driven a greater than 20% increase in lifetime value for Max members compared to non-Max members [12] - The company aims to maintain a robust pace of share repurchases at approximately $150 million per quarter without increasing leverage [27][56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a stable consumer environment where travel remains a priority, carrying significant momentum into 2026 [9] - The guidance for 2026 anticipates low single-digit contract sales growth and mid-single-digit EBITDA growth, with expectations for improved cash flow conversion [28][29] - Management highlighted the importance of operational excellence and cost management as key drivers for future performance [14] Other Important Information - The company achieved $100 million in cost synergies from the Bluegreen acquisition ahead of schedule [16][14] - The company has a liquidity position of over $1 billion, consisting of $239 million in unrestricted cash and $809 million available under its revolving credit facility [31] Q&A Session Summary Question: Can you provide expectations for quarterly cadence, specifically for tour growth and VPG? - Management indicated high single-digit growth for tour flow in Q1, with a high single-digit decline in VPG due to tough comparisons from the previous year [34][39] Question: Can you clarify the uptick in the fourth quarter loan loss provision related to upgrades? - Management explained that the increase was due to changes in underwriting processes and the release of reserves associated with upgraded loans, which should stabilize in 2026 [42][43] Question: What is the company's strategy regarding excess inventory and potential asset streamlining? - Management confirmed ongoing analysis of the portfolio to optimize assets, indicating that some acquired properties may not align with long-term goals [50][51] Question: How is the sales force performing and are there any strategic changes? - Management praised the sales force for achieving significant growth and indicated ongoing improvements in team capabilities across various markets [67][68]

Financial Data and Key Metrics Changes - Contract sales grew by 10% in 2025, marking the highest growth since 2022, with Adjusted EBITDA of $1.15 billion, a 4% increase year-over-year [16][18] - Total revenue before cost reimbursements for the quarter increased by 1% to $1.3 billion, while Adjusted EBITDA to shareholders grew by 12% to $324 million, with margins of 26%, up 250 basis points from the prior year [18][19] - Adjusted free cash flow for the year was $756 million, or over $8.25 per share, with $600 million returned to shareholders through share repurchases [17][26] Business Line Data and Key Metrics Changes - In the real estate business, contract sales for the quarter increased by 2% to $852 million, with tours up 9% year-over-year to 225,000 [18][19] - The financing business reported revenues of $134 million and profit of $81 million, with margins of 60% [20] - The resort and club business saw revenue growth of 6% to $219 million for the quarter, with segment profit of $160 million and margins of 73% [24] Market Data and Key Metrics Changes - The company surpassed pro forma consolidated 2019 tour flow levels for the first time, indicating strong recovery and growth in market demand [18][11] - The annualized default rate for consolidated portfolios improved to 9.86%, reflecting a 24 basis points improvement from the previous quarter [21] Company Strategy and Development Direction - The company is focused on four strategic priorities: attracting new customers cost-effectively, enhancing member lifetime value, product evolution and innovation, and driving operational excellence [10][12] - The introduction of HGV Max has driven a 35% increase in memberships, with a greater than 20% increase in lifetime value for Max members compared to non-Max members [8][12] - The company aims to maintain a robust pace of share repurchases while avoiding increased leverage, targeting $150 million per quarter [27][56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a stable consumer environment where travel remains a priority, carrying significant momentum into 2026 [9] - The guidance for 2026 anticipates Adjusted EBITDA between $1.185 billion and $1.225 billion, with low single-digit contract sales growth expected [28][29] - Management highlighted the importance of operational excellence and cost management as key focuses for future growth [14][15] Other Important Information - The company achieved $100 million in cost synergies from the Bluegreen acquisition ahead of schedule [16][14] - The weighted average interest rate for originated loans was reported at 14.6% [20] Q&A Session Summary Question: Can you provide expectations for quarterly cadence, specifically for tour growth and VPG? - Management indicated high single-digit growth for tour flow in Q1, with a high single-digit decline in VPG due to tough comparisons from the previous year [34][39] Question: Can you clarify the uptick in loan loss provision related to upgrades to legacy Bluegreen owners? - Management explained that the increase was due to changes in underwriting processes, requiring more capital from consumers during upgrades, which has improved loan performance [42][43] Question: Is there a plan to streamline assets and locations due to excess inventory? - Management confirmed ongoing analysis of the portfolio to optimize for both members and shareholders, with potential updates to be provided in the future [50][51] Question: What is the philosophy around share buybacks and the decision to maintain a $150 million quarterly repurchase? - Management emphasized the importance of maintaining current leverage levels while executing a robust share repurchase program, viewing the stock as a compelling value [55][56]

Financial Data and Key Metrics Changes - Contract sales grew by 10% in 2025, marking the highest growth since 2022, with Adjusted EBITDA reaching $1.15 billion, a 4% increase year-over-year [6][16] - Total revenue before cost reimbursements for the quarter increased by 1% to $1.3 billion, while Adjusted EBITDA to shareholders grew by 12% to $324 million, with margins of 26%, up 250 basis points from the prior year [18] - Adjusted free cash flow for the year was $756 million, or over $8.25 per share, with 79% of that cash flow returned to shareholders through share repurchases [17][26] Business Line Data and Key Metrics Changes - In the real estate business, contract sales for the quarter grew by 2% to $852 million, with tours up 9% year-over-year to 225,000 [18][19] - The financing business reported revenues of $134 million and profit of $81 million, with margins of 60% [20] - The resort and club business saw revenue growth of 6% to $219 million for the quarter, with segment profit of $160 million and margins of 73% [24] Market Data and Key Metrics Changes - The company surpassed pro forma consolidated 2019 tour flow levels for the first time, indicating a recovery in market demand [11][18] - The annualized default rate for consolidated portfolios improved to 9.86%, reflecting a 24 basis point improvement from the previous quarter [21] - The weighted average interest rate for originated loans was 14.6%, with combined gross receivables for the quarter at $4.3 billion [20][21] Company Strategy and Development Direction - The company is focused on four strategic priorities: attracting new customers cost-effectively, enhancing member lifetime value, product evolution and innovation, and driving operational excellence [10][12] - The introduction of HGV Max has significantly increased the lifetime value of Max members by over 20% compared to non-Max members [12] - The company aims to maintain capital returns as the primary use of free cash flow, with a commitment to repurchase approximately $150 million of shares per quarter [27][56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a stable consumer environment where travel remains a priority, carrying significant momentum into 2026 [9] - The guidance for 2026 anticipates low single-digit contract sales growth and mid-single-digit EBITDA growth, with expectations for strong cash flow conversion [28][30] - Management highlighted the importance of operational excellence and cost management as key drivers for future performance [14][15] Other Important Information - The company achieved $100 million in cost synergies from the Bluegreen acquisition ahead of schedule [16] - The company is undergoing a rebranding process for Bluegreen resorts, with plans for additional rebrands in the coming years [15] - The liquidity position as of December 31 was over $1 billion, consisting of $239 million in unrestricted cash and $809 million available under the revolving credit facility [31] Q&A Session Summary Question: Quarterly cadence expectations for 1Q and beyond - Management indicated high single-digit growth in tour flow for Q1, with a slight decline in VPG due to tough comparisons from the previous year [34][38] Question: Clarification on loan loss provision increase - Management explained that the increase in loan loss provision was due to upgrades to legacy Bluegreen owners and changes in underwriting processes that require more capital upfront [41][42] Question: Thoughts on excess inventory and potential asset streamlining - Management acknowledged the need to optimize the portfolio and indicated that some acquired properties may not align with long-term goals, but further details will be provided later [49][50] Question: Philosophy around share buybacks - Management confirmed a commitment to a $150 million quarterly buyback, emphasizing a preference to maintain current leverage levels rather than increasing them for repurchases [54][56] Question: Sales force effectiveness and strategic changes - Management expressed satisfaction with the sales force's performance and noted ongoing efforts to improve capabilities across a broader range of markets [66][68]