Travel + Leisure (TNL) Goldman Sachs Global Consumer and Retail Conference summary

Financial performance and outlook

• Sales, EBITDA, and EPS consistently exceeded guidance in the first half, with Q2 revenue up 4%, EBITDA up 8%, and EPS up 14%.

• Dividend increased by 7% and share buybacks up 25% year-over-year; leverage reduced by a quarter turn.

• Core algorithm targets 6%-8% sales growth, mid-single digit EBITDA growth, and teens EPS growth, with about 50% EBITDA conversion to free cash flow.

• Focus remains on integrating recent M&A and launching new brands while maintaining disciplined capital allocation.

• Margins are expected to remain stable in the mid-20s, and free cash flow conversion is targeted at around 50%.

Consumer trends and business resilience

• Consumer demand remains durable despite macroeconomic volatility, with positive tour flow and strong booking metrics.

• Timeshare model's prepaid nature provides resilience, with two-thirds of transactions from existing owners.

• Multiple levers available to manage downturns, including marketing, development timing, consumer financing, and cost controls.

• Balanced approach between tour growth and VPG is maintained, with a healthy mix of new and existing owners.

Portfolio optimization and M&A

• 17 underperforming resorts were removed, reducing costs and improving portfolio quality; 23 new resorts added via M&A.

• Recent acquisitions increased the owner base by 100,000 and are expected to deliver $50 million incremental EBITDA in year one.

• Acquisitions targeted immediate accretion, new geographies, low integration risk, and minimal balance sheet impact.

• Integration is progressing well, with positive employee and owner reception.