Travel Leisure Co. · NYSE:TNL
Travel Leisure — Investor Presentation (May 2021)
26 slides from Travel Leisure's investor presentation, May 2021
Slide 1: Investor Presentation May 2021
I N V E S TO R P R E S E N TAT I O N May 2021
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation includes “forward-looking statements” as that term is defined by the Securities and Exchange Commission (“SEC”). Forward-looking statements are any statements other than statements of historical fact, including statements regarding our expectations, belie
Slide 3: TNL Listed on NYSE
Bookrand, TNL LISTED NYSE
Slide 4: Wyndham Destinations, Panorama, Travel + Leisure Group
WYNDHAM PANARAMA TRAVEL+ ¢DESTINATIONS LEIS a RE roup
Slide 5: Investment Highlights
• Approximately 50% of normalized adjusted EBITDA is derived from predictable revenue streams: • consumer finance, vacation exchange and hospitality (1) • Strong FCF (2) INVESTMENT • FCF conversion of ~60% (3) • FCF positive in 2020 and 2021 expected to be a recovery year • 100% focused on leisure t
Slide 6: First Quarter 2021 Recap
FIRST QUARTER 2021 RECAP Three Months Ended 3/31/21 Net Revenue $628M Net VOI Sales / Gross VOI Sales (1) $172M / $236M Net Income / Net Income Margin $29M / 4.6% Adj. EBITDA / Adj. EBITDA Margin (1) $129M / 20.5% VPG (y/y growth) 34% New owner sales, transactions mix 32% Adjusted Free Cash Flow (1)
Slide 7: Strong Recovery in Industry Sales
STRONG RECOVERY IN INDUSTRY SALES Gross VOI Sales ($in millions) $400 $355-$365 $350 $320-$340 $300 $281 $256 $250 $236 (1) $226 $200 $178 $150 $140 $132 $139 $117 $100 3Q 2020 4Q 2020 1Q 2021 2Q 2021E (2) TNL VAC HGV 1. VAC sales include impact from Welk acquisition moving forward 7 2. Guidance exp
Slide 8: Booking Trends Above 2019
BOOKING TRENDS ABOVE 2019 20% 10% 0% 2021 vs. 2019 -10% -20% -30% Jan Feb Mar Apr May 1 1 1 1 1 Vacation Ownership RCI 8
Slide 9: Travel + Leisure Acquisition
T R AV E L + L E I S U R E AC Q U I S I T I O N • Acquired Travel + Leisure brand, content, intellectual property and existing business • Meredith will continue to operate and monetize the brand under a 30-year licensing agreement while maintaining editorial independence • $100M acquisition; $35M pa
Slide 10: Book Travel + Leisure
AVEL+ Signin or Join Now | Call Us:7-800.917-8188 | Q. By HOME THINGSTODO TRIPINSPIRATION WORLD'SBEST CONTACTUS COVID-19 r4 ma & +e i) Hotels ThingstoDo Bundle+Save Cars Destination 9 city. ‘1 Room, 2 Adults. Edit Options » Book Travel + Leisure Where Travel Dreams Become Reality TRAVEL+ TE 10
Slide 11: Brands and Business Lines
WYNDHAM eDESTINATIONS CLUB SY WYNDHAM WORLDMARK vacations PRR es i iy fi TIAL MARGARITAVILLE VACATION CLUB, PANORAMA wy Love RCI UX, Sik tripbeat EXTRAHOLIOAYS C= Oe S REGISTRY @work ia COLLECTIONS NT ERNATIONAL TRAVEL+ LEISURE Group Subscription Travel Clubs Travel Booking Platform Brand Licensing
Slide 12: Extensive Footprint in the U.S.
EXTENSIVE FOOTPRINT IN THE U.S. • ~80% of owners are driving to a Vacation Ownership resort (1) • 95%+ U.S. population live within 300 miles of a Vacation Ownership resort (2) • 162 resorts on mainland U.S. (2) • 95% of North American sales on mainland U.S. (2) Where Our Owners Live Map as of Februa
Slide 13: Key Statistics Show Stability in Owner Base
KEY STATISTICS SHOW STABILITY IN OWNER BASE 867K OWNERS 1 184K OWNERS HAVE A LOAN BALANCE 1 ~80% OF OWNERS HAVE NO LOANS OUTSTANDING 1 ~4% >98% ~60% ANNUAL OWNER CHURN ANNUAL RETENTION INCLUDING ELEVATED NEW OWNER SALES TO OF OWNERS WITHOUT LOAN DEFAULTS 2 GENX & MILLENNIALS 1 A LOAN BALANCE 2 1. As
Slide 14: VOI Sales by Region
VOI SALES BY REGION Region % of Total 2019 VOI Sales (1) Region % of Total 2019 VOI Sales (1) Las Vegas 13% Tennessee 8% Central Florida 12% Hawaii 5% Gulf Coast 10% Pacific Northwest 4% California 10% South Florida & Caribbean 4% Northeast 9% Branson & Great Lakes 4% Carolinas 8% Desert Rockies 3%
Slide 15: Debt Maturity Profile and Liquidity
DEBT MATURITY PROFILE AND LIQUIDITY Debt Maturity Schedule ($ in millions) Leverage Ratio: 5.4x $700 $656 $641 $622 Long-Term Target: 2.25x to 3.0x $600 $500 Weighted Avg. Cost of Debt $407 $408 ~5.1% $400 $345 $302 $300 Weighted Avg. Maturity (1) ~4 years $200 $100 Total Liquidity (2) $5 $0 $0 ~$1.
Slide 16: Maintain High Margins Across the Cycle; Strong Credit Quality
MAINTAIN HIGH MARGINS ACROSS THE CYCLE 25% 24% 25% 25% 25% 25% 24% 24% 24% 22% 22% 21% 17% 16% 16% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2H 2020 Vacation Ownership Segment Adjusted EBITDA Margin STRONG CREDIT QUALITY 740 735 725 725 725 725 725 725 725 727 726 727 727
Slide 17: Appendix
APPENDIX au us qu rw F
Slide 18: Historical Financials – Vacation Ownership Segment
HISTORICAL FINANCIALS – VACATION OWNERSHIP SEGMENT Number of Tours Volume Per Guest (VPG) (in 000s) 945 $2,486 869 904 801 819 $2,392 $2,381 $2,326 $2,324 $2,345 333 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 Vacation Ownership Revenues Vacation Ownership Adjusted EBITDA ($ in milli
Slide 19: Historical Financials – Travel and Membership Segment
HISTORICAL FINANCIALS - TRAVEL AND MEMBERSHIP SEGMENT Travel and Membership Transactions Travel and Membership Revenue per (in 000s) (1) Transaction (1) 1,898 $259 $258 1,220 2019 2020 2019 2020 Travel and Membership Revenues Travel and Membership Adjusted EBITDA ($ in millions) (2) ($ in millions)
Slide 20: Historical Financials – TNL Consolidated
HISTORICAL FINANCIALS – TNL CONSOLIDATED Net VOI Sales TNL Total Revenues ($ in millions) ($ in millions) $1,848 $3,806 $3,931 $4,043 $1,684 $1,769 $3,653 (a) $3,692 $1,604 (1) $1,601 $2,160 $505 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 TNL Adjusted EBITDA ($ in millions) (2) $927
Slide 21: Non-GAAP Reconciliations
A P P E N D I X : N O N - G A A P R E C O N C I L I AT I O N S Reconciliation of Net Cash Provided by Operating Activities from Continuing Operations to Adjusted Free Cash Flow from Continuing Operations ($ in millions) Three Months Twelve Months Ended Ended March 31, 2020 2019 2018 2021 Net cash pr
Slide 22: Non-GAAP Reconciliations
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 S TNL Consolidated Reconciliation of Net Income/(Loss) to Further Adjusted EBITDA ($ in millions) Q1 2021 2020 2019 2018 2017 2016 2015 Net income/(loss) attributable to TNL shareholders $ 29 $ (255) $ 507 $ 672 $ 854 $ 611 $ 607 Net incom
Slide 23: Non-GAAP Reconciliations
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 S Vacation Ownership Further Adjusted EBITDA Reconciliation ($ in millions) (1) 2H 2020 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 Vacation Ownership Net Income/(Loss) $ 72 $ (69) $ 404 $ 340 $ 174 $ 316 $ 3
Slide 24: Non-GAAP Reconciliations
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 S Travel and Membership Adjusted EBITDA Reconciliation ($ in millions) (1) 2020 2019 2018 2017 2016 2015 Travel and Membership Net Income $2 $ 245 $ 508 $ 162 $ 165 $ 183 (Gain)/loss on disposal of discontinued businesses, net of income ta
Slide 25: Reconciliation of Gross VOI Sales
N O N - G A A P M E A S U R E : R E C O N C I L I AT I O N O F G R O S S VO I S A L E S (IN MILLIONS) The Company believes gross VOI sales provide an enhanced understanding of the performance of its vacation ownership business because it directly measures the sales volume of this business during a g
Slide 26: Appendix Definitions
APPENDIX DEFINITIONS Adjusted EBITDA: A non-GAAP measure, defined by the Company as net income/(loss) from continuing operations before depreciation and amortization, interest expense (excluding consumer financing interest), early extinguishment of debt, interest income (excluding consumer financing