Marriott Vacations Worldwide Corporation · NYSE:VAC
Marriott Vacations Worldwide — Q2 2025 Earnings Presentation
34 slides from Marriott Vacations Worldwide's earnings presentation, Aug 5, 2025
Slide 1: Investor Presentation
Investor Presentation August 5, 2025
Slide 2: Forward-Looking Statements
Forward-Looking Statements 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,” “mi
Slide 3: Driving Sustained Long-Term Growth
Driving Sustained Long-Term Growth Unique and resilient business model Consistent and sustainable growth 3
Slide 4: Leading Provider of Vacation Experiences
Leading Provider of Vacation Experiences Vacation Exchange and Ownership Third-Party Management Adjusted EBITDA ~90% Contribution ~10% 7 Iconic Brands by Segment* >1.5M Interval International Members ~700,000 >90 Owner Families Countries and Territories ~120 >3,200 Resorts Exchange Resorts Leader Up
Slide 5: Resilient Business Model
Resilient Business Model Business Benefits Products Timeshare + exchange Diverse cash flow Selling both Marriott- and Brands 7 brands Hyatt-branded products Perpetual sales centers and Sales Centers “Sell the systems” more efficient marketing channels Offering Primarily points-based Flexibility Deve
Slide 6: Substantial Recurring Profit Streams
Substantial Recurring Profit Streams Adjusted EBITDA Contribution* Development Management and Exchange 30% 35% ~40% of Adjusted EBITDA contribution from recurring sources 15% 20% Rentals Financing All numbers are approximate. *Adjusted EBITDA Contribution is based on full year 2024 results and is a
Slide 7: Large and Attractive Addressable Market and Customer Base
Large and Attractive Addressable Market and Customer Base Vacation Ownership ~51M Households – addressable market in U.S. alone 737 Average FICO score ~80% Owners with no loan Owner median ~$150K annual income Addressable households based on 2023 data from the American Community Survey. FICO score b
Slide 8: On-Site Guests Drive Vacation Ownership Sales
On-Site Guests Drive Vacation Ownership Sales Pre-paid Vacations Drive Most Sales Come from High Resort Occupancy On-Property Guests1 88% 90% ~80% from resort guests 2023 2024 1. Sales from resort guests based on full year 2024 contract sales. 8
Slide 9: High-Margin Exchange and Third-Party Management Business with Low Capital Intensity
High-Margin Exchange and Third-Party Management Business with Low Capital Intensity Membership Getaway fees transactions ~40% of Members are MVW Vacation Ownership Owners Exchange Other transactions Numerous revenue sources of revenue $102M Segment Adjusted EBITDA* at Capital expenditures only 46% M
Slide 10: Well Positioned To Grow
Well Positioned To Grow 100% leisure focused Strong value proposition s Flexible and resilient business model Prepaying for a lifetime of vacations Spacious upper High margin/cash upscale resorts flow business s s Consistent, high quality Efficient capital model product provides substantial free cas
Slide 11: Strong Liquidity Position
Strong Liquidity Position As of June 30, 2025 Available cash on hand $205M Gross notes available for securitization 1 $55M Additional borrowing capacity under revolving credit facility $539M ~$800 Million of Liquidity 1. Represents gross notes receivable eligible for securitization that are not in t
Slide 12: Strategic Modernization Drives Substantial Financial Benefits by 2026
Strategic Modernization Drives Substantial Financial Benefits by 2026 Projected Adjusted EBITDA Benefits* $150M Costs and Accelerating Efficiencies ~50% to ~50% Revenue $200M Amounts are annualized. *Adjusted EBITDA is a non-GAAP measure. Please see appendix for definition. 12
Slide 13: Well Laddered Maturity Schedule
Well Laddered Maturity Schedule Corporate Debt Maturity Schedule ($M) $1,025 $450 Can only be used to refinance 2026 $800 $792 Delayed Draw Term convertible debt maturity $565 Loan A $575 - $500 Revolving $350 Credit Facility1 $575 $235 - 2025 2026 2027 2028 2029 2030 2031 Convertible notes Unsecure
Slide 14: Disciplined Capital Allocation Model
Disciplined Capital Allocation Model Strong Free Cash Flow Generation Return Corporate Organic Strategic capital to debt growth M&A stockholders reduction • Inventory acquisitions • Bolt-on • Share repurchases • Reduce leverage • Technology • New leisure-related • Dividends investment opportunities
Slide 15: Driving Sustained Long-Term Growth
Driving Sustained Long-Term Growth Unique and resilient business model Consistent and sustainable growth 15
Slide 16: Three-Point Growth Strategy
Three-Point Growth Strategy 3 Disciplined use of free cash flow 2 Leverage technology to 1 expand our Drive growth businesses and through new product continued offerings transformation of our products 16
Slide 17: Driving Vacation Ownership Growth
Driving Vacation Ownership Growth 1 2 3 High Owner Engagement Leveraging our Brands Technology-Driven Sales with Customer-Driven to Drive Growth and Marketing Growth Product Strategies 17
Slide 18: Leveraging Strong License Relationships to Grow Contract Sales
Vacation Ownership Growth Strategy #1 Leveraging Strong License Relationships to Grow Contract Sales Number of Loyalty Members (M) 237 226 120 54 Hilton and Wyndham as of June 30, 2025. Marriott as of March 31, 2025. Hyatt as of December 31, 2024. 18
Slide 19: Adding Resorts and Sales Centers in Premium Locations Drives Growth
Vacation Ownership Growth Strategy #1 Adding Resorts and Sales Centers in Premium Locations Drives Growth Nusa Dua, Bali Orlando Savannah Indonesia Florida Georgia Planned 2026 2027 2028 openings: Khao Lak Nashville Charleston Thailand Tennessee South Carolina Adding new sales centers to grow 19
Slide 20: Leveraging Technology to Drive Sales and Efficiency
Vacation Ownership Growth Strategy #2 Leveraging Technology to Drive Sales and Efficiency Investing in digital capabilities Marketing Self-service Sales ▪ Online initiatives ▪ Online payments & bookings ▪ Virtual presentations ▪ Improved targeting ▪ Virtual Voice Assistants & chatbots ▪ Personalized
Slide 21: Adding First-Time Buyers
Vacation Ownership Growth Strategy #3 Adding First-Time Buyers Sales to Younger Generations1 Adding New Owners2 Millennial & Gen X 65% ~100K First-time buyers 5% added since Other 30% 2020 Boomers 1. Based on Q2 2025 contract sales. First-time buyers only. 2. 2020 – Q2 2025. 21
Slide 22: Sales Process Converts Leads Into Owners
Vacation Ownership Growth Strategy #3 Sales Process Converts Leads Into Owners Branded Pre-Check-in Hotel Outreach Loyalty Digital & Programs Traditional Advertising Lead Collection s • Sell tour packages • Capture on-site owners & guests Tourss • On-site and off-site sales centers • Virtual tours S
Slide 23: Adding New Owners Drives Revenue Growth
Vacation Ownership Growth Strategy #3 Adding New Owners Drives Revenue Growth Ongoing Relationship Drives Future Revenue Other Revenue Financing Management Revenue Fees, Ancillary, Rental, Other Financing Revenue Development Revenue Potential Incremental Development Purchase Revenue Initial Vacation
Slide 24: Exchange & Third-Party Management Business Growth Strategies
Exchange & Third-Party Management Business Growth Strategies 1 2 3 Increase share of Grow affiliations Expand distribution wallet with enhanced and management channels product offerings contracts 24
Slide 25: Growing 2025 Adjusted EBITDA and Adjusted Free Cash Flow
Growing 2025 Adjusted EBITDA and Adjusted Free Cash Flow Full Year 2025 Guidance Adjusted Adjusted Contract sales EBITDA* Free Cash Flow* $1,740M- $750M- $270M- 1,830M 780M 330M * Adjusted EBITDA and Adjusted Free Cash Flow are non-GAAP measures. For definitions please see appendix. 25
Slide 26: Resilient, Well-Positioned Business Executing on Proven Strategy
Resilient, Well-Positioned Business Executing on Proven Strategy ▶ ~40% of Adjusted EBITDA comes from recurring revenue sources ▶ Well-positioned products with iconic brands ▶ Modernization expected to drive $150-200M of annualized Adjusted EBITDA benefits by 2026 ▶ Enhancing value and efficiency wi
Slide 27: Appendix
Appendix A-1
Slide 28: Expect to Generate Substantial Adjusted Free Cash Flow
Expect to Generate Substantial Adjusted Free Cash Flow 2025 ($M) Low High Adjusted EBITDA* $750 $780 Cash interest (150) (145) Cash taxes (150) (155) Corporate capital expenditures (65) (65) Inventory (75) (60) Financing activity and other (40) (25) Adjusted Free Cash Flow* $270 $330 Plus $150 – $20
Slide 29: Non-GAAP Financial Measures
Non-GAAP Financial Measures In our presentation we report certain financial measures that are not prescribed by GAAP. We discuss our reasons for reporting these non-GAAP financial measures below and we have made footnote references to them on the preceding pages. The financial schedules included her
Slide 30: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted EBITDA Margin and Segment Adjusted EBITDA Margin. We evaluate Adjusted EBITDA margin and Segment Adjusted EBITDA margin as indicators of operating profitability. Adjusted EBITDA margin represents Adjusted EBITDA divided by the Company’s total revenues less cost r
Slide 31: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted EBITDA Contribution. We calculate Adjusted EBITDA Contribution by calculating profit by revenue source (development, management and exchange, rental and financing) and then calculating profit by revenue source as a percentage of total profit, as reconciled herein
Slide 32: Non-GAAP Financial Measures
Non-GAAP Financial Measures (In millions) Adjusted free cash flow 2024 Cash, cash equivalents, and restricted cash provided by operating activities $ 205 Capital expenditures for property and equipment (excluding inventory) (57) Borrowings from securitizations, net of repayments 42 Securitized debt
Slide 33: Non-GAAP Financial Measures
Non-GAAP Financial Measures Guidance. The guidance provided in this presentation excludes impacts from asset sales, foreign currency changes, restructuring costs, litigation charges, strategic modernization initiative costs, transaction and integration costs, and impairments, each of which the Compa
Slide 34: Thank you.
Thank you.
Marriott Vacations Worldwide — Q2 2025 Earnings Presentation on 6ix