Investor Presentation May 2017 Forward Looking Statements and - PowerPoint PPT Presentation

Investor Presentation May 2017

Forward Looking Statements and Non-GAAP Information Certain statements in this presentation constitute “forward - looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Any statements that refer to expectations or other characterizations of future events, circumstances or results are forward-looking statements. Such forward-looking statements include projections. Such projections were not prepared in accordance with public guidelines of the American Institute of Certified Public Accountants regarding projections and forecasts, nor have such projections been audited, examined or otherwise reviewed by independent auditors of Wyndham Worldwide Corporation. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Wyndham Worldwide to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements. Important assumptions and other important factors that could cause actual results to differ materially from those in the forward looking statements are specified in Wyndham Worldwide’s most recent Form 10 - K under “Risk Factors” filed with the Securities and Exchange Commission. Except for ongoing obligations of Wyndham Worldwide to disclose material information under the federal securities laws, Wyndham Worldwide does not undertake any obligation to release any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events. The information in this presentation should be read in conjunction with the consolidated financial statements and accompanying notes and “Management's Discussion and Analysis of Financial Condition and Results of Operations” in Wyndham Worldwide's Form 10-K for the year ended December 31, 2016 filed with the Securities and Exchange Commission on February 17, 2017. Financial information contained in this presentation includes non-GAAP measures, which include or exclude certain items. These non-GAAP measures differ from reported GAAP results and are intended to illustrate what management believes are relevant period-over-period comparisons and are helpful to investors as an additional tool for further understanding and assessing Wyndham Worldwide’s ongoing core operating performance. Exclusion of items in our non - GAAP presentation should not be considered an inference that these items are unusual, infrequent or non-recurring. A complete reconciliation of reported GAAP results to the comparable non-GAAP information appears in appendix to this presentation. 2

T H E W Y N D H A M W O R L DW I D E S T O RY Powerful Cash Flow Drives Long-Term, Dependable Growth Business Sustainable EPS growth execution free cash flow Target Mid-teens Successful Approximately CAGR (1) $800M (1) 2017-2021 3

W Y N D H A M W O R L DW I D E T O D AY Leading Positions in Hospitality Industry Market Position % of Full Year Major Business (1)(2) Worldwide 2016 Adj. EBITDA Brands Include Segment Hotel Group #1 27% Hotel franchisor by hotels Destination Network #1 Timeshare 26% exchange and rental company Vacation Ownership #1 47% Timeshare developer (1) Excludes corporate and other (2) A complete reconciliation of reported GAAP results to the comparable non-GAAP information appears in the appendix to this presentation 4

W Y N D H A M W O R L D W I D E T O D A Y Majority of Income from Fee-for-Service Businesses Revenues (1) Advantages:  Strong cash flow Approx.  Low capital intensity 63% Fee-for-Service  Recurring revenues Businesses  Stable earnings  Hotel Franchising Fees  Vacation Exchange Fees  Vacation Rentals Fees  Property Management Fees  WAAM Fee-for-Service (1) For the year ended December 31, 2016 5

Three Strong Platforms for Growth Hotel Destination Vacation Group Network Ownership 6

H O T E L G R O U P Building on Leading Global Position Wyndham Hotel Group Strengths (4) Adjusted EBITDA World’s largest hotel franchisor  (in millions) (3) – Over 8,000 hotels and 697,600 rooms (1) WYN Outlook Approx.  Leader in the economy segment with strong $410-420 (2) brands across the lodging spectrum $401 (2) $376 $340 $296 Strategic Priorities ■ Strengthen the quality and global distribution of our iconic brands ■ Invest in and leverage best in class technology platforms to meet the needs of today’s travelers 2013 2014 2015 2016 2017E ■ Grow our industry leading sales and marketing and Wyndham Rewards guest loyalty program (1) As of December 31, 2016 (2) EBITDA was unfavorably impacted due to currency movement of ($2M) and ($7M) in FY16 and FY15, respectively (3) Guidance as of April 26, 2017 (4) A complete reconciliation of reported GAAP results to the comparable non-GAAP information appears in the appendix to this presentation 7

H O T E L G R O U P Strategic Priorities – A Closer Look… Loyalty Program Industry-Leading Technology Quality & Guest Satisfaction    Named #1 hospitality loyalty program Cloud-based / mobile property Strengthening and refining our brand by U.S. News and World Report management and reservation systems positioning so each brand is unique on SynXis Enterprise Platform   Wyndham Rewards members stay Microtel and Wingate brands named  1 st of its kind automated revenue JD Power’s #1 award winners, longer and generate more revenue to our franchisees management tool in industry, EZLITE Economy and Midscale (1)    First company to expand loyalty Secure payment technology from Hawthorn Suites brand named Best program across vacation ownership Elavon, a subsidiary of U.S. Bank Extended Stay Brand by American Group Travel Awards (2) and rental properties (1) Source: J.D. Power 2016 North America Hotel Guest Satisfaction Index Study (2) American Group 2015 Travel Award Winner 8

D E S T I N A T I O N N E T W O R K Extending the Lead Strengths Wyndham Destination Network (4) Adjusted EBITDA ■ Largest provider of professionally managed unique vacation (in millions) accommodations (3) WYN Outlook ■ Nearly 14 million people utilized our trusted brands in 2016 Approx. ■ Access to over 121,000 vacation accommodations located in $405-$415 more than 110 countries (1) (2) ■ Approx. 1.8 million rental transactions completed in 2016 (2) $385 $380 $370 $356 ■ 3.8 million vacation exchange network members (1) Strategic Priorities ■ Leverage global rentals opportunities ■ Invest in technology to improve customer experience, grow 2013 2014 2015 2016 2017E market share and drive value ■ Leverage superior analytical capabilities in all aspects of our business ■ Promote benefits of timeshare and vacation rentals to owners ■ Offer more options by leveraging our inventory across brands (1) As of December 31, 2016 (2) Adjusted EBITDA was unfavorably impacted due to currency movements of ($15M) and ($27M) in FY16 and FY15, respectively (3) Guidance as of April 26, 2017 (4) A complete reconciliation of reported GAAP results to the comparable non-GAAP information appears in the appendix to this presentation 9

D E S T I N AT I O N N E T W O R K Expanding in a Growing Rentals Market This cottage industry has blown up. The industry is believed to be worth $100 billion , with the U.S. accounting for just over a quarter of that — and Research and Markets (1) predicts the global vacation rental market will close in on $170 billion by 2019 . – Skift.com (2) Long described as “alternative” or “non - traditional” (i.e. non-hotel) lodging, rentals have now become mainstream. In 2015, nearly one in three U.S. travelers used private accommodations . – Phocuswright (3) (1) http://www.prnewswire.com/news-releases/global-vacation-rental-market-2015-2019---leading-vendors-are-9flats-airbnb-homeaway-tripadvisor-wimdu- world-travel-holdings--wyndham-worldwide-564824051.html (2) https://skift.com/2016/05/25/why-the-vacation-rental-industry-is-blowing-up-right-now/ (3) Phocuswright’s A Market transformed: Private Accommodation in the U.S. 10

D E S T I N A T I O N N E T W O R K Strategic Priorities – A Closer Look… Homeowner Conversions Revenue/Unit Growth + 2 - 5% + 1,500 bps In select markets where initiative In select markets where tool was was implemented implemented over last 2 years Dynamic Pricing Automated Homeowner RCI Next Gen Initiative Recruiting   Our yield management initiative A series of initiatives will optimize utilizes our unique combination of growth at our RCI exchange brand  Successful homeowner recruiting is boots on the ground and class  key to our long term growth Personalized offerings leading technology to maximize   Tablet-based tool allows our Customized memberships revenues for owners salespeople to display listings and  Enhanced customer  Difficult for smaller operators or revenue projections to homeowners in experience internet-only operators to duplicate their home  Expanded B2B partnerships 11