Investor Presentation

MARCH 2020

© 2018 Wyndham Destinations Proprietary

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, beliefs, hopes, intentions or strategies regarding the future. In some cases, forward-looking statements can be identified by the use of words such as

“may,” “will,” “expects,” “should,” “believes,” “plans,” “anticipates,” “estimates,” “predicts,” “potential,” “continue,” “future” or other words of similar meaning. Forward-looking statements are subject to risks and

uncertainties that could cause actual results of Wyndham Destinations, Inc. (“Wyndham Destinations”) to differ materially from those discussed in, or implied by, the forward-looking statements. The forward-

looking statements contained in this presentation include statements related to Wyndham Destinations’ current views and expectations with respect to its future performance and operations (including the

statements in the “Outlook” section of this presentation). You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. Factors that might

cause such a difference include, but are not limited to, general economic conditions, the performance of the financial and credit markets, the competition in and the economic environment for the timeshare

industry, the impact of war, terrorist activity, political strife, severe weather events and other natural disasters, pandemics or threats of pandemics, operating risks associated with the vacation ownership and

vacation exchange businesses, uncertainties related to our ability to realize the anticipated benefits of the spin-off of the hotel business (“spin-off”) Wyndham Hotels & Resorts, Inc. (“Wyndham Hotels”) or the

divestiture of our North American and European vacation rentals businesses, or the acquisition of Alliance Reservations Network (“ARN”), unanticipated developments related to the impact of the spin-off, the

divestiture of our North American and European vacation rentals businesses, the acquisition of ARN and related transactions, including any potential impact on our relationships with our customers, suppliers,

employees and others with whom we have relationships, and possible disruption to our operations, our ability to execute on our strategy, the timing and amount of future dividends and share repurchases and

those other factors disclosed as risks under “Risk Factors” in documents we have filed with the SEC, including in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2019,

filed with the SEC on or about February 26, 2020. We caution readers that any such statements are based on currently available operational, financial and competitive information, and they should not place undue

reliance on these forward-looking statements, which reflect management’s opinion only as of the date on which they were made. Except as required by law, we undertake no obligation to review or update these

forward-looking statements to reflect events or circumstances as they occur.

Disclaimer

This presentation and the information contained herein are solely for informational purposes. This presentation does not constitute a recommendation regarding the securities of Wyndham Destinations. This

presentation or any related oral presentation does not constitute any offer to sell or issue, or any solicitation of any offer to subscribe for, purchase or otherwise acquire any securities of Wyndham Destinations, nor

shall it form the basis of, or be relied upon in connection with, or act as any inducement to enter into any contract or commitment whatsoever with respect to such securities. This presentation is not directed to, or

intended for distribution to or use by, any person or entity that is a citizen or resident located in any jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which

would require registration of licensing within such jurisdiction. The information contained in this presentation, including the forward-looking statements herein, is provided as of the date of this presentation and may

change materially in the future. Except as required by law, Wyndham Destinations undertakes no obligation to update or keep current the information contained in this presentation, whether as a result of new

information, subsequent events or otherwise.

Presentation of Financial Information

Financial information discussed in this presentation includes non-GAAP measures such as adjusted EBITDA, adjusted free cash flow, and gross VOI sales, which include or exclude certain items. The Company

utilizes non-GAAP measures on a regular basis to assess performance of its reportable segments and allocate resources. 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 when considered with GAAP measures as an additional tool for further understanding and assessing

the Company’s ongoing operating performance by adjusting for items which in our view do not necessarily reflect ongoing performance. Management also internally uses these measures to assess our operating

performance, both absolutely and in comparison to other companies, and in evaluating or making selected compensation decisions. Exclusion of items in the Company’s non-GAAP presentation should not be

considered an inference that these items are unusual, infrequent or non-recurring. The Company is also presenting non-GAAP results on a further adjusted basis for prior period comparison as if the spin-off of its

hotel business and the sale of its European vacation rentals business had occurred for all periods presented. A full reconciliation of GAAP to non-GAAP measures appears in the appendix of this presentation.

2

Expansive Brand Portfolio

Best at Owner Acquisition

Strengths and Competitive Advantages

• Customer acquisition drives top line growth

• Access to deals that grow the network

• Flexible points-based product

Leading Size and Scale

• Unassailable leader in Open Market channels

• Untapped Blue Thread potential

• Owner base with highly predictable revenues

• Differentiated ownership and exchange brands

• Grow/expand into new markets

• Development partner of choice

3

Four Strategic Pillars

4

WYND’s strategic pillars serve to clarify the Company’s top priorities and to reinforce WYND’s strengths and competitive advantages

5

Strong Brands New Markets New Owner Tour Growth

• 2019 openings: Nashville and

Portland resorts; San Antonio

sales office

$2.4B

$1.4B

$1.5B

Members

3.9M

<2.0M

230

59

110

4.2K

3.2K

Exchange Options

Source: Annual reports on Form 10-K for year ended December 31, 2019

Leading Size and Scale

6

Gross VOI Sales Resorts

Wyndham Vacation

Clubs

Wyndham Vacation

Clubs

• RCI has 3.9M members worldwide and more than 4,200+ affiliated resorts in 110 countries

• 1.3M transactions

• More than 55% of members belong to various clubs (B2B)

• Exchange revenue per member of $167

• Brand portfolio:

− RCI since 1974

− ARN, acquired in 2019, leading distributor of closed user group rates through

its technology

− Armed Forces Vacation Club since 1999, discounted resort vacation rentals to

closed user group

− DAE Exchange, acquired in 2017, global direct-to-consumer vacation exchange

− Love Home Swap, acquired in 2017, membership-based home exchange business

7

Subscriptions31%

Exchange30%

Rentals17%

Ancillary22%

Exchange Revenue

Exchange: Highly Predictable Revenue, Low Capital Intensity

Note: Amounts as of December 31, 2019

8

Exchange: RCI Offices, Associates, Members and Resorts

Note: As of December 31, 2019

WYND HGV VAC US Census Households

19.9M

19.2M

38.2M

51.3M

Owner Count 878K 326K 660K

Mean HHI $93K $113K $155K

$0

$50,000

$100,000

$150,000

$200,000

US

Ho

us

eh

old

In

co

me

Note: Mid point of bubble corresponds to mean owner demographic by brand; area of circle corresponds to relative owner count of each brand. Owner Count as of most recent 10-K filing for each company.

1. US Census (2018).

2. WYND Owner Data (2019), HGV Investor Deck (September 2018), VAC Investor Day (2015).

Serving the Broadest Demographic of Travelers

US Traveler Mean HHI

$90,021

9

+

(1)

(2)

10

Key Statistics Show Stability in Owner Base

OWNERS 1 OWNERS HAVE A

LOAN BALANCE

OF OWNERS HAVE NO

LOANS OUTSTANDING

ANNUAL OWNER CHURN

INCLUDING ELEVATED

LOAN DEFAULTS 2

ANNUAL RETENTION OF

OWNERS WITHOUT A

LOAN BALANCE 2

NET

OCCUPANCY 1

878K 185K ~80%

~4% >98% ~70%

Note: Information based on 2018 data unless otherwise stated

1. As of 2019

2. Annual average over last 10 years

Source: Club Wyndham Owner Data

Shifting Sales Mix to Increase New Owners

11

The Future Value of New Members is High

• Owners spend an incremental ~2.6X the

initial purchase over their lifetime

• Average lifetime spend per owner, ~$65K

• Mix improved by 160 bps in 2019, compared

to 2017

• Shift mix while growing Adjusted EBITDA and

maintaining industry leading margins

32% 35% 37% +40%

2011-2016 Average 2017 2019 Target

$1

$1

$1.60

Initial VOI Sale Spend Years 0-5 upgrades spend Years 6+ upgrades spend

Diversified Marketing Platform Provides Competitive Advantage

12

$1,386

$1,418

$1,488

2017 2018 2019

Sales to Existing Owners ($ in millions)

$709

$787 $780

2017 2018 2019

Open Market Sales($ in millions)

$44

$66

$87

2017 2018 2019

Blue Thread Sales($ in millions)

• Largest owner base in the

industry, 878K

• 80% of owners have no loan

outstanding

• Largest new-owner

acquisition channel

• Acquire leads and tours from

marketing partnerships

• Scale is critical to operate

profitably

• Blue Thread tours generate

more than 25% higher VPG

• Wyndham Rewards

demographics highly

correlate to owner base

17%16% 16%

22% 22%

25%24%

25% 25% 25% 25%24% 24% 24%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

673

683691

725 725 725 725 725 725 725 727 726 727 727

12.5%12.7%

12.9%13.1%

13.3%13.5% 13.6% 13.7% 13.8%

14.0% 14.1% 14.2%

14.6%

12%

13%

14%

15%

640

660

680

700

720

740

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Strong Credit Quality

Average FICO Score on

New Originations

Average Interest Rate

Maintain High Margins Across the Cycle

Wyndham Vacation Ownership Segment Adjusted EBITDA Margin

13

VOI Upgrade Sales

$1,164

Hospitality Services

$702

Vacation Exchange

$647

Consumer Finance

$515

Other

$1,015

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2019 Recurring Revenues ($M)

$4,043

$3.9B loan portfolio;

Fixed interest rates

25+ years of data proves owners

consistently upgrade

Management fees from 200+ resorts;

98% contract retention

3.9M members paying annual dues;

85% retention~75% of Revenue is

RECURRING &

PREDICTABLE

Primarily New

Owner Sales

14

Strong Return of Cash to Shareholders

15

Recurring &

Predictable Revenue

Total Revenue $4.0B

~$3.0B

Adjusted

Free Cash Flow

Adjusted

EBITDA$991M

~62%

$560

MDividends /

Share Repurchases

Adjusted

Free Cash Flow

$340MShare Repurchases

$617M

$166MDividends

Note: Amounts as of December 31, 2019

$957

$580

$105

Adjusted Free Cash Flow

Further Adjusted EBITDA

Changes in net working capital

($156)

Interest expense

Net inventory spending

Net consumer finance activity

Cash taxes Capital expenditures

($24)($117) ($99)

($86)

(b)

Full-Year Adjusted Free Cash Flow

16(a) Based on an estimated cash tax rate of 17% in 2018, 18% in 2019 and 21% expected in 2020.

(b) Reflects the net change in vacation ownership contract receivables offset by the provision from loan losses and the net expected proceeds from securitization activities.

(a)

($ in millions)

$102

($158) $617($127)

($32)($108) ($52)

20

18

A2

01

9A

$991

($148 - $152)($148 - $152)

$60 - $80

($50 - $70)($120 - $130) ($45 - $65)

$560 - $580

20

20

E

$1,030 - $1,050

• Returned $852M to shareholders through dividends and share repurchases,

from June 1, 2018 through 2019

• Total returns represented ~23% of market capitalization (a)

$125M $166M

$221M $340M

June – Dec. 2018

(post-spin)

FY

2019

Total Return

of Capital

17

DIVIDENDS

PAID

SHARE

REPURCHASES

$852M

(a) Market capitalization of $3.7B on February 25, 2020 with a share price of $42.96

Return of Capital to Shareholders

Strong Balance Sheet

$42

$251

$650

$404

$298

$635

$0

$409

$0 $0

$345

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Debt Maturity Schedule 1

($ in millions)

Note: As of December 31, 2019, based on 2.7x leverage, calculated from adjusted EBITDA

1. Assumes revolving credit facility matures on May 31, 2023

Net Leverage: 2.7x

Target: 2.25x to 3.0x

WACD

~5%

WAM

~4.7 years

18

$2,138

$2,271

$2,355

$2,449$2,496

2017 2018 2019 2020E

Low

2020E

High

Gross VOI Sales ($ in millions)

$2,345 $2,392 $2,381 $2,405 $2,429

2017 2018 2019 2020E

Low

2020E

High

Volume Per Guest (VPG)

869

904

945

$973$992

2017 2018 2019 2020E

Low

2020E

High

Number of Tours (in 000s)

19

Key Drivers: Steady Mid-Single Digit Growth

$3,806

$3,931

$4,043 $4,040

$4,140

2017 2018 2019 2020E

Low

2020E

High

Total Revenue 1

($ in millions)

$914

$957$991

$1,030$1,050

2017 2018 2019 2020E

Low

2020E

High

Adjusted EBITDA ($ in millions)

$500$580

$617$560 $580

2017 2018 2019 2020E

Low

2020E

High

Adjusted Free Cash Flow ($ in millions)

24% 24% 25% 24.5% 25.5%

2017 2018 2019 2020E

Low

2020E

High

Adjusted EBITDA Margins

20

2020 Growth Outlook

1. Excluding the impact of the sale of North American vacation rentals and the acquisition of ARN, comparable revenue growth over 2019 is 5% at the midpoint.

The Company does not provide a reconciliation of 2020 non-GAAP measures to the closest GAAP equivalent because the Company is unable to predict with reasonable certainty the totality or ultimate outcome or

occurrence of these adjustments or other potential adjustments that may arise in the future during the outlook period, which can be dependent on future events that may not be reliably predicted.

Note: Adjusted EBITDA Margins, Adjusted EBITDA and Adjusted Free Cash Flow are Further Adjusted in 2017 and 2018.

WYND’s Positioning Far Superior to Prior Cycles

21

2008 2019

Stronger marginsVO segment

adjusted EBITDA margins16% 24%

Capital efficient inventory sourcingCapital efficient

inventory mix<25% >85% 1

Credit quality improvedAverage FICO on

new originations691 727

Increased down payment requirementsAverage down payment

% of financed VOI sales 213% 24%

Hotel affinity salesBlue Thread

sales— $87M

Large geographic footprintVacation ownership

resorts150 230

1. Average of last four years

2. Represents average down payment percentage on financed sales in the U.S. only

Industry Sales Grew at a 6% CAGR since 2009

22

$0 $0 $0 $0 $0 $0 $1 $1 $1 $1 $1 $1 $1 $1 $1 $1 $1 $1 $1 $2 $2 $2 $2

$3 $3

$4 $4

$5

$6

$7

$8

$9

$10

$11

$10

$6.3 $6 $7 $7

$8 $8

$9

$9 $10

$10.2

$-

$2

$4

$6

$8

$10

$12 Total Annual Sales ($B)

Source: 2019 ARDA State of the Industry Report

APPENDIX

789 794 801819

869904

945

2013 2014 2015 2016 2017 2018 2019

Number of Tours (in 000s)

$2,515 (a)$2,638 (a)

$2,772 (a) $2,774$2,881

$3,016$3,151

2013 2014 2015 2016 2017 2018 2019

VO Revenues ($ in millions)

$2,281$2,257

$2,326 $2,324 $2,345$2,392 $2,381

2013 2014 2015 2016 2017 2018 2019

Volume Per Guest (VPG)

$621$660

$688 $703$684

$721$756

2013 2014 2015 2016 2017 2018 2019

VO Adjusted EBITDA ($ in millions) (b)

(a) Does not reflect impact of the adoption of the new revenue recognition standard.

(b) 2013-2015, per Wyndham Worldwide historical definition and does not reflect impact of revenue recognition. 2016-2018 restated for revenue recognition and further adjusted metrics.

4% CAGR

3% CAGR1% CAGR

3% CAGR

24

Historical FinancialsVacation Ownership

(a) Does not reflect impact of the adoption of the new revenue recognition standard.

3,6983,765

3,831 3,852 3,799 3,847 3,887

2013 2014 2015 2016 2017 2018 2019

Average Number of Members (in 000s)

$856 (a) $864 (a)$880 (a)

$916$927 $918

$898

2013 2014 2015 2016 2017 2018 2019

Exchange Revenues ($ in millions)

$229 (a)

$249 (a)

$241 (a)

$261$268

$278$289

2013 2014 2015 2016 2017 2018 2019

Exchange Adjusted EBITDA ($ in millions)

1% CAGR 4% CAGR

Consolidated

$1,379 (a)$1,485 (a)

$1,604 (a) $1,601$1,684

$1,769$1,848

2013 2014 2015 2016 2017 2018 2019

Net VOI Sales ($ in millions)

$3,372 (a)$3,498 (a)

$3,653 (a) $3,692$3,806

$3,931$4,043

2013 2014 2015 2016 2017 2018 2019

Total Revenues ($ in millions)

5% CAGR 3% CAGR

1% CAGR

25

Historical FinancialsVacation Exchange

Appendix: Non-GAAP Reconciliations

26(a) Includes cash paid for separation-related activities and transaction costs for acquisitions and divestitures in 2019 and 2018, as well as certain adjustments to 2018 for comparative purposes for incremental license fees to Wyndham Hotels & Resorts and other

corporate costs being effected in order to reflect the Company's position as if the spin-off had occurred for all periods presented.

Reconciliation of Free Cash Flows and Adjusted Free Cash Flows ($ in millions)

Twelve Months Ended December 31,

Continuing Operations 2019 2018

Net cash provided by operating activities $ 453 $ 292

Property and equipment additions (108) (99)

Sum of proceeds and principal payments of non-recourse vacation ownership debt 185 264

Free cash flow from continuing operations $ 530 $ 457

Separation and other adjustments (a) 87 123

Adjusted free cash flow from continuing operations $ 617 $ 580

Appendix: Non-GAAP Reconciliations

27

Reconciliation of Net Income to

Adjusted EBITDA to Further Adjusted EBITDA ($ in millions)

(a) Amortization of acquisition-related assets is excluded from adjusted net income from continuing operations, adjusted EBITDA, and further adjusted EBITDA.(b) Debt modification costs in interest expense are excluded from adjusted net income from continuing operations, adjusted EBITDA, and further adjusted EBITDA.(c) In 2019, amount represents $13 million of tax expense incurred by the Company in connection with the separation of the hotel business partially offset by $7 million in relation to the net tax effects of the adjustments. In 2018, amounts represent the tax effect of the adjustments totaling $76 million partially offset by $27 million of non-cash state tax expense incurred by the Company in connection with the separation of the hotel business and $13 million of primarily non-cash tax expense from certain internal restructurings associated with the sale of its European vacation rentals business. In 2017, amounts represent the tax effect of the adjustments and an estimated one-time non-cash tax benefit of $407 million resulting from the enactment of the Tax Cuts and Jobs Act.(d) All stock-based compensation is excluded from adjusted EBITDA and further adjusted EBITDA. (e) Includes 2018 incremental license fees paid to Wyndham Hotels & Resorts and other corporate costs being effected in order to reflect the Company's position as if the spin-off had occurred for all periods presented.(f) Further adjusted to reflect results as if Wyndham Hotels & Resorts were separated from Wyndham Destinations and the sale of the European rentals business was completed for all periods.

2013-2015 Adjusted EBITDA is per Wyndham Worldwide’s definition and does not reflect the adoption of the new revenue recognition accounting standard. 2016-2018 Adjusted EBITDA is further adjusted.

1. Includes incremental license fees paid to Wyndham Hotels & Resorts and other changes being effected in conjunction with the spin-off. 28

Appendix: Non-GAAP ReconciliationsVacation Ownership (VO) Further Adjusted EBITDA Reconciliation ($ in millions)

2019 2018 2017 2016 2015 2014 2013

VO Net Income attributable to WYND $ 404 $ 340 $ 174 $ 316 $ 316 $ 295 $ 248

Net income attributable to non controlling interest - - - 1 - 1 1

Provision for Income Taxes 150 119 110 194 196 185 144

Depreciation and Amortization 81 73 63 53 47 47 47

Interest Expense 78 117 142 131 130 133 180

Interest (Income) -

-

(1) - (1) (2) (1) (1)

Acquisition Related - - - - - 2

Restructuring Costs 5 11 - 8 1 - -

Loss on Sale/Asset Impairments 27 (4) 205 - - - -

Executive Costs - - - 6 - - -

Separation Costs 4 67 1 - - - -

Stock Based Compensation 7 9 13 16 - - -

2016 Grant Modifer - - 1 - - - -

Further Adjustments (1) - (10) (25) (21) - - -

VO Adjusted EBITDA $ 756 $ 721 $ 684 $ 703 $ 688 $ 660 $ 621

2019 2018 2017 2016 2015 2014 2013

VE Net Income attributable to WYND $ 245 $ 508 $ 162 $ 165 $ 183 $ 157 $ 158

Gain on disposal of discontinued businesses, net of income taxes (5) (456) - - - - -

(Income)/loss from operations of discontinued businesses, net of income taxes - 60 (52) (60) (58) (48) (56)

Provision for income taxes 48 36 51 55 46 40 52

Depreciation and amortization 30 44 42 42 43 44 39

Interest expense 33 41 56 27 28 35 40

Interest (income) (5) (3) (3) (4) (4) (4) (4)

Acquisition and divestiture related costs 1 - (12) - 1 - -

Restructuring 3 4 8 4 2 10 -

Asset impairments - - - - - 7 -

Venezuela Currency Devaluation - - - 24 - 10 -

Separation and related costs 5 56 8 - - - -

Gain/loss on disposal (68) - - - - - -

Stock-based compensation 2 4 8 8 - - -

VAT adjustment - (16) - - - (2) -

VE Adjusted EBITDA $ 289 $ 278 $ 268 $ 261 $ 241 $ 249 $ 229

29

Appendix: Non-GAAP ReconciliationsVacation Exchange (VE) Adjusted EBITDA Reconciliation ($ in millions)

2013-2015 Adjusted EBITDA is per Wyndham Worldwide’s definition and does not reflect the adoption of the new revenue recognition accounting standard.

2020 Guidance 2019A (a) Year-over-year

Low High Growth at Midpoint

Net revenues

Vacation ownership $3,258 $3,338 $3,151 5%

Vacation Exchange 783 803 898 (12)% (a)

Corporate and other (1) (1) (6)

Total $4,040 $4,140 $4,043 1%

Adjusted EBITDA $1,030 $1,050 $991 5%

Stock-based compensation (33) (32) (20)

Depreciation and amortization (b) (120) (118) (112)

Net interest expense (158) (156) (155)

Adjusted pre-tax income $719 $744 $705 4%

Adjusted taxes (c) (193) (200) (185)

Adjusted net income from continuing operations $526 $544 $520 3%

Weighted average diluted shares outstanding 89.2 89.2 92.4

Adjusted diluted earnings per share from continuing operations $5.90 $6.10 $5.62 7%

(a) Excluding the impact of the sale of North American vacation rentals and the acquisition of ARN, comparable revenue growth over 2019 is 5% at the midpoint.

(b) Excludes amortization of acquisition-related intangible assets.

(c) 2020 guidance assumes an adjusted effective tax rate of 27%. 30

Note: Amounts may not add due to rounding. The Company is providing guidance for adjusted net income from continuing operations, adjusted EBITDA, adjusted diluted EPS and adjusted free cash flow from continuing operations only on a non-GAAP

adjusted basis because not all of the information necessary for a quantitative reconciliation of forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures is available without unreasonable effort, primarily due to

uncertainties relating to the occurrence or amount of these adjustments or other potential adjustments that may arise in the future.

2020 Guidance (in millions, except per share amounts)

Non-GAAP Measure: Reconciliation of Gross VOI Sales

31

2019 Q1 Q2 Q3 Q4 Full Year

Net VOI sales $ 375 $ 481 $ 528 $ 464 $ 1,848

Loan loss provision 109 129 135 106 479

Gross VOI sales, net of fee-for-service sales 484 610 663 570 2,327

Sales under fee-for-service -- 16 -- 12 28

Gross VOI sales $ 484 $ 626 $ 663 $ 582 $ 2,355

2018

Net VOI sales $ 358 $ 462 $ 503 $ 446 $ 1,769

Loan loss provision 92 126 132 106 456

Gross VOI sales, net of fee-for-service sales 450 588 635 552 2,225

Sales under fee-for-service 15 14 5 12 46

Gross VOI sales $ 465 $ 602 $ 640 $ 564 $ 2,271

2017

Net VOI sales $ 350 $ 446 $ 466 $ 422 $ 1,684

Loan loss provision 85 111 123 101 420

Gross VOI sales, net of fee-for-service sales 435 557 589 523 2,104

Sales under fee-for-service 3 5 11 15 34

Gross VOI sales $ 438 $ 562 $ 600 $ 538 $ 2,138

(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 given reporting period. The following table provides a reconciliation of Net VOI sales to Gross VOI sales. Amounts may not add due to rounding.

Appendix: DefinitionsAdjusted EBITDA: A non-GAAP measure, defined by the Company as net income before depreciation and amortization, interest expense (excluding consumer financing interest), early extinguishment of debt, interest income (excluding

consumer financing revenues) and income taxes, each of which is presented on the Consolidated Statements of Income. Adjusted EBITDA also excludes stock-based compensation costs, separation and restructuring costs, transaction

costs and impairments, gains and losses on sale/disposition of business, and items that meet the conditions of unusual and/or infrequent. We believe that when considered with GAAP measures, Adjusted EBITDA is useful to assist our

investors in evaluating our ongoing operating performance for the current reporting period and, where provided, over different reporting periods. We also internally use these measures to assess our operating performance, both

absolutely and in comparison to other companies, and in evaluating or making selected compensation decisions. Adjusted EBITDA should not be considered in isolation or as a substitute for net income or other income statement data

prepared in accordance with GAAP and our presentation of Adjusted EBITDA may not be comparable to similarly-titled measures used by other companies.

Further adjusted earnings measures: For 2018, a non-GAAP measure, defined by the Company to exclude certain items including impairment charges, restructuring and other related charges, transaction-related items, contract

termination costs and other significant charges which in the Company's view does not reflect ongoing performance. Further adjusted earnings measures adjust for license fees, credit card income and corporate expense to reflect the

performance of the Company as if it were separated from Wyndham Hotels & Resorts and the sale of the European rentals business was completed for all reported periods. All further adjusted earnings measures are reported from

continuing operations, unless otherwise noted. Wyndham Destinations believes that these measures are useful to investors as supplemental measures in evaluating the aggregate performance of the Company.

Gross Vacation Ownership Interest Sales: A non-GAAP measure, represents sales of vacation ownership interests (VOIs), including sales under the fee-for-service program before the effect of loan loss provisions. We believe that Gross

VOI sales provide an enhanced understanding of the performance of our vacation ownership business because it directly measures the sales volume of this business during a given reporting period.

Tours: Represents the number of tours taken by guests in our efforts to sell VOIs.

Volume Per Guest (VPG): Represents Gross VOI sales (excluding tele-sales upgrades, which are non-tour upgrade sales) divided by the number of tours. The Company has excluded non-tour upgrade sales in the calculation of VPG

because non-tour upgrade sales are generated by a different marketing channel.

Average Number of Members: Represents paid members in our vacation exchange programs who are current on their annual membership dues or within the allowed grace period.

Exchange Revenue Per Member: Represents total revenues generated from fees associated with memberships, exchange transactions, and other servicing for the period divided by the average number of vacation exchange members

during the period.

Free Cash Flow from Continuing Operations (FCF): A non-GAAP measure, defined by the Company as net cash provided by operating activities from continuing operations less property and equipment additions (capital expenditures)

plus the sum of proceeds and principal payments of non-recourse vacation ownership debt. The Company believes FCF to be a useful operating performance measure to evaluate the ability of its operations to generate cash for uses other

than capital expenditures and, after debt service and other obligations, its ability to grow its business through acquisitions and equity investments, as well as its ability to return cash to shareholders through dividends and share

repurchases. A limitation of using FCF versus the GAAP measures of net cash provided by operating activities as a means for evaluating Wyndham Destinations is that FCF does not represent the total cash movement for the period as

detailed in the consolidated statement of cash flows.

Adjusted Free Cash Flow from Continuing Operations: A non-GAAP measure, defined by the Company as net cash provided by operating activities from continuing operations less property and equipment additions (capital expenditures)

plus the sum of proceeds and principal payments of non-recourse vacation ownership debt, while also adding back corporate and other costs, transaction costs for acquisitions and divestitures, and separation adjustments associated

with the spin-off to reflect the performance of the Company as if it were separated from Wyndham Hotels & Resorts during all reported periods.

Net Debt: Net debt equals total debt outstanding, less non-recourse vacation ownership debt and cash and cash equivalents.

Leverage Ratio: The Company calculates leverage ratio as net debt divided by Adjusted EBITDA.

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