Hilton Grand Vacations Inc. · NYSE:HGV
Hilton Grand Vacations — Q4 2024 Earnings Presentation
8 slides from Hilton Grand Vacations's earnings presentation, Feb 27, 2025
Slide 1: Financing Business Optimization
Financing Business Optimization FEBRUARY 2025
Slide 2: Securitization overview
Securitization overview Securitizations accelerate the conversion of receivables into cash flow, pulling forward the return of cash versus waiting 7-10 years for the mortgages receivables to pay off Asset-backed securitization investors HGV monetizes its receivables through public securitization Cas
Slide 3: Optimizing HGV's securitization strategy
Optimizing HGV’s securitization strategy Increased scale offered by our consolidated and recast platform following Bluegreen integration makes increased monetization possible at an attractive cost, while bringing us in line with our peers Optimization aims to increase securitization activity Avg. %
Slide 4: Well-positioned to implement optimization today
Well-positioned to implement optimization today Takes advantage of the Company’s recent integration and capital markets consolidation efforts • Significant excess liquidity through cash, revolver, and non-recourse markets: Q3 ’24 $2.2B $1.6B $1.3B $1,737 $871 $627 $724 $655 $308 $147 $44 $47 HGV Pee
Slide 5: Significant deployable cash flow generated from increased financing business monetization
Significant deployable cash flow generated from increased financing business monetization Illustrative incremental cash generation opportunity Baseline: $3.5B 55% $1.9B Pre-optimization Current Securitized2 Proceeds TTM average receivables1 Incremental cash vs. baseline 2025E: $3.5B 65-70% $2.3-2.5B
Slide 6: Incremental cash unlocked with minimal ongoing EBITDA and cash cost, supporting additional capital returns
Incremental cash unlocked with minimal ongoing EBITDA and cash cost, supporting additional capital returns and business reinvestment Full program impacts Adjusted EBITDA by $39M, Raise share repurchase program pace to an average with minimal impact to underlying free cash flow of $150 million per qu
Slide 7: Financing business optimization additional considerations
Financing business optimization additional considerations • Program will reach full run-rate over next 18 months1 • Funds from optimization program will be used to fund additional capital returns and business reinvestment • Non-recourse interest expense is considered an operating expense, and impact
Slide 8: Thank You
Hilton GRAND VACATIONS Thank You USA TODAY TOP WORK PLACES, 2024
Hilton Grand Vacations — Q4 2024 Earnings Presentation on 6ix