Travel Leisure Co. · NYSE:TNL
Travel Leisure — Investor Presentation (May 2025)
36 slides from Travel Leisure's investor presentation, May 2025
Slide 1: Investor Presentation May 2025
+ INVESTOR PRESENTATION May 2025 M A N H AT TA N , N Y
Slide 2: Presentation of Financial Information; Forward-Looking Statements
Presentation of Financial Information Forward-Looking Statements Financial information discussed in this presentation includes non-GAAP measures This presentation includes “forward-looking statements” as that term is defined by such as Adjusted EBITDA, Adjusted EBITDA margin, Adjusted diluted EPS, A
Slide 3: Company Overview
C O M PA N Y Q U A R T E R LY R E S U LT S ADDITIONAL FINANCIAL NON-GAAP OV E R V I E W A N D O U T LO O K I N F O R M AT I O N R E C O N C I L I AT I O N S L I M E T R E E B E AC H R E S O R T B Y C LU B W Y N D H A M S T. T H O M A S , V I Company Overview 3
Slide 4: Travel + Leisure Co.: The Leader in Vacation Ownership
C O M PA N Y Q U A R T E R LY R E S U LT S ADDITIONAL FINANCIAL NON-GAAP OV E R V I E W A N D O U T LO O K I N F O R M AT I O N R E C O N C I L I AT I O N S Travel + Leisure Co.: The Leader in Vacation Ownership LEA DI NG THE • Industry has consolidated around large, branded-name companies T R A NS
Slide 5: Travel + Leisure Co.: By the Numbers
C O M PA N Y Q U A R T E R LY R E S U LT S ADDITIONAL FINANCIAL NON-GAAP OV E R V I E W A N D O U T LO O K I N F O R M AT I O N R E C O N C I L I AT I O N S Travel + Leisure Co.: By the Numbers 270+ 3,600 809K Resorts Worldwide Affiliated RCI Resorts Timeshare Owners 2024 2024 2024 3.4M ~19,000 391K
Slide 6: Vacation Ownership and Travel and Membership Overview
C O M PA N Y Q U A R T E R LY R E S U LT S ADDITIONAL FINANCIAL NON-GAAP OV E R V I E W A N D O U T LO O K I N F O R M AT I O N R E C O N C I L I AT I O N S VA C AT I O N O W N E R S H I P T R AV E L A N D M E M B E R S H I P + Overview + Overview • Sales of vacation ownership interests •E xchange s
Slide 7: Consolidation + Product Evolution Driving Industry Transformation
C O M PA N Y Q U A R T E R LY R E S U LT S ADDITIONAL FINANCIAL NON-GAAP OV E R V I E W A N D O U T LO O K I N F O R M AT I O N R E C O N C I L I AT I O N S Consolidation + Product Evolution Driving Industry Transformation TO DAY: S CA L ED & P O I SED HISTORICAL FO R AC CEL ER ATED G R OW TH Fragme
Slide 8: Favorable Trends in the Business
C O M PA N Y Q U A R T E R LY R E S U LT S ADDITIONAL FINANCIAL NON-GAAP OV E R V I E W A N D O U T LO O K I N F O R M AT I O N R E C O N C I L I AT I O N S Favorable Trends in the Business + Secular Growth + Strong Owner + Attractive + Generational In Travel Satisfaction Product Shift • Global leis
Slide 9: New Owner Sales Create Solid Foundation for Future Revenue Growth
C O M PA N Y Q U A R T E R LY R E S U LT S ADDITIONAL FINANCIAL NON-GAAP OV E R V I E W A N D O U T LO O K I N F O R M AT I O N R E C O N C I L I AT I O N S New Owner Sales Create Solid Foundation for Future Revenue Growth STR ONG P IP EL I N E OF P OT ENT IAL M O R E TH A N 75% O F R EV EN U E S FU
Slide 10: Stable of Brands to Appeal to a Wide Range of Consumers
C O M PA N Y Q U A R T E R LY R E S U LT S ADDITIONAL FINANCIAL NON-GAAP OV E R V I E W A N D O U T LO O K I N F O R M AT I O N R E C O N C I L I AT I O N S Stable of Brands to Appeal to a Wide Range of Consumers Throughout the Stages of Their Lives PR OVEN BRANDS WITH EXPANDED B RAN DS IN BR ANDS G
Slide 11: Resilient Business with Strong Adjusted EBITDA Margins
C O M PA N Y Q U A R T E R LY R E S U LT S ADDITIONAL FINANCIAL NON-GAAP OV E R V I E W A N D O U T LO O K I N F O R M AT I O N R E C O N C I L I AT I O N S Resilient Business with Strong Adjusted EBITDA Margins Vacation Ownership Segment Adjusted EBITDA Margin (1) 30% 24% (2) 24% 24% 25% 23% 23% 22
Slide 12: Consumer Financing Drives Substantial Earnings Stream
C O M PA N Y Q U A R T E R LY R E S U LT S ADDITIONAL FINANCIAL NON-GAAP OV E R V I E W A N D O U T LO O K I N F O R M AT I O N R E C O N C I L I AT I O N S Consumer Financing Drives Substantial Earnings Stream Weighted Average Interest Rate FICO(1) 800 18.0% 17.0% 736 736 739 744 748 735 725 726 16
Slide 13: Disciplined Approach to Underwriting Has Improved Loan Portfolio
C O M PA N Y Q U A R T E R LY R E S U LT S ADDITIONAL FINANCIAL NON-GAAP OV E R V I E W A N D O U T LO O K I N F O R M AT I O N R E C O N C I L I AT I O N S Disciplined Approach to Underwriting Has Improved Relative Position of Loan Portfolio 12/31/2008 12/31/2019 3/31/2025 Weighted Avg. FICO 680 72
Slide 14: Our Travel and Membership Business is Transforming
C O M PA N Y Q U A R T E R LY R E S U LT S ADDITIONAL FINANCIAL NON-GAAP OV E R V I E W A N D O U T LO O K I N F O R M AT I O N R E C O N C I L I AT I O N S Our Travel and Membership Business is Transforming T R AV E L EXC HA NGE T R AVEL CLU B S A N D ME MB E R S H IP • Pressure on volumes as indus
Slide 15: Disciplined and Balanced Capital Allocation Framework
COCM O PA M PA NY NY QUARQT UEAR RLY TERELYS URLT E SSU LT S A D D I TAI D ODN IATLI OFNI N AAL NFCI N I AALN C I A L N O N -N GOAN A-P OV OEVREV RIV E IW EW AND AONUD TLOO UOTK LO O K I N F O RI N MF AT OR IOMNAT I O N R E C O N CGI L AIA ATPS IONS Disciplined and Balanced Capital Allocation Framew
Slide 16: Shareholder-Focused Capital Allocation
C O M PA N Y Q U A R T E R LY R E S U LT S ADDITIONAL FINANCIAL NON-GAAP OV E R V I E W A N D O U T LO O K I N F O R M AT I O N R E C O N C I L I AT I O N S Shareholder-Focused Capital Allocation D IVI D E N D G ROWS S U B STANTIAL I N LI N E WITH B U S I N E S S S HAR E R E PU RC HAS E S CAPITAL I
Slide 17: Cumulative Capital Returned to Shareholders Since Spin
C O M PA N Y Q U A R T E R LY R E S U LT S ADDITIONAL FINANCIAL NON-GAAP OV E R V I E W A N D O U T LO O K I N F O R M AT I O N R E C O N C I L I AT I O N S Cumulative Capital Returned to Shareholders Since Spin (1) $3,000 Repurchases Diluted Weighted Average Shares Outstanding Dividends $2,623 $2,5
Slide 18: Solid Balance Sheet with Manageable Debt Maturities
C O M PA N Y Q U A R T E R LY R E S U LT S ADDITIONAL FINANCIAL NON-GAAP OV E R V I E W A N D O U T LO O K I N F O R M AT I O N R E C O N C I L I AT I O N S Solid Balance Sheet with Manageable Debt Maturities C O RP O RATE D EBT M ATURITIE S (3) STATS As of March 31, 2025 ($ in millions) Revolving C
Slide 19: Results and Outlook
C O M PA N Y Q U A R T E R LY R E S U LT S ADDITIONAL FINANCIAL NON-GAAP OV E R V I E W A N D O U T LO O K I N F O R M AT I O N R E C O N C I L I AT I O N S C LU B W Y N D H A M S E D O N A SEDONA, AZ Results and Outlook 19
Slide 20: 1Q 2025 Results
C O M PA N Y Q U A R T E R LY R E S U LT S ADDITIONAL FINANCIAL NON-GAAP OV E R V I E W A N D O U T LO O K I N F O R M AT I O N R E C O N C I L I AT I O N S 1Q 2025 Results TH R E E M O NTH S E N D E D 3/3 1/2 0 2 5 Net Revenue Gross VOI Sales(1) Adj. EBITDA(1) Adj. Diluted Earnings Per Share(1) $93
Slide 21: Adjusted EBITDA — Q1'24 v. Q1'25
C O M PA N Y Q U A R T E R LY R E S U LT S ADDITIONAL FINANCIAL NON-GAAP OV E R V I E W A N D O U T LO O K I N F O R M AT I O N R E C O N C I L I AT I O N S Adjusted EBITDA — Q1’24 v. Q1’25 (1) 16 28 1 (13) 202 191 (21) Q1’24 Gross VOI Sales(2) Revenue-related Loan loss Net interest Other Q1’25 cost
Slide 22: Utilizing a Proven Capital Allocation Framework
C O M PA N Y Q U A R T E R LY R E S U LT S ADDITIONAL FINANCIAL NON-GAAP OV E R V I E W A N D O U T LO O K I N F O R M AT I O N R E C O N C I L I AT I O N S Utilizing a Proven Capital Allocation Framework STR ONG CA SH SHAR EHOLD E R S O L ID GENERATI ON R ET U R N S BA L A N CE S H E E T ADJUSTE D
Slide 23: Expectations for 2025
C O M PA N Y Q U A R T E R LY R E S U LT S ADDITIONAL FINANCIAL NON-GAAP OV E R V I E W A N D O U T LO O K I N F O R M AT I O N R E C O N C I L I AT I O N S Expectations for 2025 PR OVIDING 202 5 SEC OND QUART ER TA R G E TS GU IDANCE Q2 ‘ 2 5E 202 5E Adj. EBITDA (1) $245M–$255M $955M–$985M Gross VO
Slide 24: Additional Financial Information
C O M PA N Y Q U A R T E R LY R E S U LT S ADDITIONAL FINANCIAL NON-GAAP OV E R V I E W A N D O U T LO O K I N F O R M AT I O N R E C O N C I L I AT I O N S W Y N D H A M G R A N D P H U K E T K A L I M B AY P H U K E T, T H A I L A N D Additional Financial Information 24
Slide 25: Model Sensitivities
C O M PA N Y Q U A R T E R LY R E S U LT S ADDITIONAL FINANCIAL NON-GAAP OV E R V I E W A N D O U T LO O K I N F O R M AT I O N R E C O N C I L I AT I O N S Model Sensitivities Three major drivers to performance in the Vacation Ownership segment Volume Tour Loan Loss Per Guest Growth Provision (VPG)
Slide 26: Adjusted EBITDA to Adjusted Free Cash Flow Conversion %
C O M PA N Y Q U A R T E R LY R E S U LT S ADDITIONAL FINANCIAL NON-GAAP OV E R V I E W A N D O U T LO O K I N F O R M AT I O N R E C O N C I L I AT I O N S Adjusted EBITDA to Adjusted Free Cash Flow Conversion % 2024 Actuals 100% (26%) 48% (11%) (6%) (2%) (7%) Adj. EBITDA(1) Cash Interest Cash Taxe
Slide 27: C O M PA N Y OV E R V I E W Q
C O M PA N Y Q U A R T E R LY R E S U LT S ADDITIONAL FINANCIAL NON- OV E R V I E W A N D O U T LO O K I N F O R M AT I O N GAAPS 27
Slide 28: Appendix: Non-GAAP Reconciliations
APPENDIX: NON-GAAP R E C O N C I L I AT I O N S 28
Slide 29: Net Income to Adjusted EBITDA Reconciliation
C O M PA N Y R E S U LT S ADDITIONAL FINANCIAL NON-GAAP OV E R V I E W A N D O U T LO O K I N F O R M AT I O N R E C O N C I L I AT I O N S A P P E N D I X : N O N - G A A P R E C O N C I L I AT I O N Travel + Leisure Co. Net Income to Adjusted EBITDA Reconciliation ($ in millions) 2024 2023 2022 20
Slide 30: Operating Cash Flow to Adjusted Free Cash Flow
C O M PA N Y R E S U LT S ADDITIONAL FINANCIAL NON-GAAP OV E R V I E W A N D O U T LO O K I N F O R M AT I O N R E C O N C I L I AT I O N S A P P E N D I X : N O N - G A A P R E C O N C I L I AT I O N Net Cash Provided by Operating Activities from Continuing Operations to Adjusted Free Cash Flow ($
Slide 31: Vacation Ownership Net Income to Adjusted EBITDA Reconciliation
C O M PA N Y R E S U LT S ADDITIONAL FINANCIAL NON-GAAP OV E R V I E W A N D O U T LO O K I N F O R M AT I O N R E C O N C I L I AT I O N S A P P E N D I X : N O N - G A A P R E C O N C I L I AT I O N Vacation Ownership Net Income to Adjusted EBITDA Reconciliation ($ in millions) Q1 2025 2024 2023 2
Slide 32: Travel and Membership Net Income to Adjusted EBITDA Reconciliation
C O M PA N Y R E S U LT S ADDITIONAL FINANCIAL NON-GAAP OV E R V I E W A N D O U T LO O K I N F O R M AT I O N R E C O N C I L I AT I O N S A P P E N D I X : N O N - G A A P R E C O N C I L I AT I O N Travel and Membership Net Income to Adjusted EBITDA Reconciliation ($ in millions) 2024 T&M net inc
Slide 33: Reconciliation of Net VOI Sales to Gross VOI Sales
C O M PA N Y R E S U LT S ADDITIONAL FINANCIAL NON-GAAP OV E R V I E W A N D O U T LO O K I N F O R M AT I O N R E C O N C I L I AT I O N S A P P E N D I X : N O N - G A A P R E C O N C I L I AT I O N Reconciliation of Net VOI Sales to Gross VOI Sales ($ in millions) The Company believes gross VOI s
Slide 34: Operating Cash Flow to Adjusted Free Cash Flow by Quarter
C O M PA N Y R E S U LT S ADDITIONAL FINANCIAL NON-GAAP OV E R V I E W A N D O U T LO O K I N F O R M AT I O N R E C O N C I L I AT I O N S A P P E N D I X : N O N - G A A P R E C O N C I L I AT I O N Net Cash Provided by Operating Activities from Continuing Operations to Adj. Free Cash Flow ($ in m
Slide 35: Net Income to Adjusted Net Income to Adjusted EBITDA
A P P E N D I X : N O N - G A A P R E C O N C I L I AT I O N Reconciliation of Net Income to Adjusted Net Income to Adjusted EBITDA ($ in millions except per share data) Q1 2025 EPS Margin % Q1 2024 EPS Margin % Net income attributable to TNL shareholders $ 73 $ 1.07 8% $ 66 $0.92 7% Amortization of
Slide 36: Definitions
DEFINITIONS Adjusted Diluted Earnings per Share: A non-GAAP measure, defined by the Company as Adjusted net income divided Adjusted Net Income: A non-GAAP measure, defined by the Company as income from continuing operations adjusted by the diluted weighted average number of common shares. Adjusted D