Hilton Grand Vacations Inc. · NYSE:HGV

Hilton Grand Vacations — Q2 2020 Earnings Presentation

13 slides from Hilton Grand Vacations's earnings presentation, Jul 31, 2020

  1. Slide 1: 2Q20 Investor Update

    2Q20 INVESTOR UPDATE QUARTERLY RESULTS AND UPDATE J U LY 3 0 , 2 0 2 0 0

  2. Slide 2: Forward-looking statements

    This slide 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 HGV’s future, and are based on

  3. Slide 3: Executed on key initiatives within our strategic priorities

    EXECUTED ON KEY INITIATIV ES WITHIN OUR STRATEG IC PRIORI TI ES 1 2 3 4 Safeguard Streamline Protect Grow our owners, guests and spending to maintain our recurring revenue streams demand and implement team members strong liquidity position and and embedded value opportunities to create optimize inve

  4. Slide 4: Guests have responded positively to our enhanced care initiative

    Protect 3 GUESTS HAVE RESPO ND ED POSITIV ELY TO OUR ENHAN C ED C ARE INITIATIV E 1 “ This Ocean Oak HGV property had possibly the cleanest hotel room I've ever seen upon arrival…social distancing was handled well in all pool areas, while still allowing all guests fair access. High-touch surfaces we

  5. Slide 5: We have commenced the reopening of resorts

    Safeguard & Protect 1 3 WE HAVE COMME NC ED THE REOPE N I N G OF RESO RTS Reopening Highlights: • Properties reopened in late May: o South Carolina o Orlando o Utah o Washington, D.C. • Properties reopened during June: o Nevada o California o Colorado Sales Cycle to Ramp Over Time: • Opened on-site

  6. Slide 6: Enhanced balance sheet flexibility

    Streamline 2 ENHANC ED BALANC E SHEET FLEXIB ILIT Y Solid Liquidity Metrics1 Recent Balance Sheet Actions $836M Available liquidity2 1. Additional Near-Term Security: Through the end of 2020, our First-Lien Net Leverage covenant has been expanded to 3.5x from 2.0x prior, and 3.25x in the first half

  7. Slide 7: No near-term debt maturities

    Streamline 2 NO NEAR -T E R M DEBT MATURI TI ES 1,000 157.5 800 No material debt maturities until 2022 600 10.0 400 800.0 450.0 200 300.0 0 5.0 10.0 2020 2021 2022 2023 2024 2025 Term Loan A Credit Facility Warehouse Senior Unsecured Bonds 6 6

  8. Slide 8: Timeshare offering is well positioned to lead out of the crisis

    Protect 3 TIMESH A R E OFFER I N G IS WELL POSITIO N ED TO LEAD OUT OF THE C RISIS Properties conducive to social Limited exposure to volatility in Minimal focus on rental income distancing generally feature in- asset values focus on selling out available inventory primarily used room full kitchen,

  9. Slide 9: Significant embedded value remains even in a topline pause scenario

    Protect 3 SIGNIFIC A N T EMBED D ED VALUE REMAIN S EVEN IN A TOPLINE PAUSE SCENAR I O 1 FINANCING – 69% MARGIN2 ▪ Profits from existing loans and future owner upgrades ▪ 66% of buyers finance their purchases ▪ Typically 10-year fixed-rate secured loans with average coupon rates of approximately 12.5

  10. Slide 10: Future bookings continue to show a desire to travel

    Protect 3 FUTUR E BOOKINGS CONTI N U E TO SHOW A D ESIRE TO TRAVEL • >50% of Q4 bookings change due to Club and owner arrivals NY and HI adjustments Marketing and sampler package arrivals • 6mo forward arrivals at 91% of prior 20K 19.0 19.0 15K 18.0 year levels 13.0 15.0 • Q1 ‘21 trend shows improve

  11. Slide 11: New inventory offerings and marketing package pipeline rebound

    Grow 4 NEW INVENTO RY OFFE RI N G S AND MARKETI N G PAC KAGE PIPELINE REB OU ND WILL B E A DRIVER OF FUTU R E TOURS • 92% of packages still un-booked vs Stable Package Pipeline 77% in prior year Maui Bay Villas 400K 40k tours 300K 200K 100K Booked Un-booked Package Sales Regaining Momentum Percent o

  12. Slide 12: Our deferral requests have declined materially since the start of the pandemic

    Protect 3 OUR DEFERR A L REQUESTS HAVE D EC LINED MATERIA LLY SINC E THE START O F THE PANDEMIC, AND REPRES E N T ONLY 2% OF OUR PORTFO LI O BALANC E Requests Per Week Cumulative Deferral Requests 600 4,000 3,500 500 3,000 400 2,500 300 2,000 1,500 200 1,000 100 500 4/20 4/27 5/4 5/11 5/18 5/25 6/1

  13. Slide 13: 12

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