#1NOVEMBER 2019 WYNDHAM •DESTINATIONS Investor Presentation#2WYNDHAM ⚫DESTINATIONS 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 or political strife, operating risks associated with the vacation ownership and vacation exchange and rentals 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 European vacation rentals business, unanticipated developments related to the impact of the spin-off, the divestiture of our European vacation rentals business and related transactions on our relationships with our customers, suppliers, employees and others with whom we have relationships, unanticipated developments resulting from possible disruption to our operations resulting from the Spin-off and the divestiture of our European vacation rentals business, our ability to execute on our strategy, the divestiture of Wyndham Vacation Rentals or the acquisition of Alliance Reservations Network may not prove successful and could result in operating difficulties, the timing and amount of future dividends and share repurchases and those 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, 2018, filed with the SEC on February 26, 2019. 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 diluted EPS from continuing operations and adjusted net income from continuing operations, 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 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#3WYNDHAM •DESTINATIONS Strengths and Competitive Advantages Leading Size and Scale • Customer acquisition drives top line growth Access to deals that grow the network Flexible points-based product Best at Owner Acquisition . Unassailable leader in Open Market channels Untapped Blue Thread potential Owner base with highly predictable revenues Expansive Brand Portfolio • Differentiated ownership and exchange brands Grow/expand into new markets Development partner of choice 3#4WYNDHAM ⚫DESTINATIONS Four Strategic Pillars WYND's strategic pillars serve to clarify the Company's top priorities and to reinforce WYND's strengths and competitive advantages Customer Obsession • Make it Easy. ⚫Know Our Customer • Customer, Customer, Customer Best-in-Class Sales & Marketing • Blue Thread ⚫ Partnership Pipeline • Digital & CRM •Sales Experience Leading Brands & Offerings Brand Transformation • Network Expansion ⚫RCI Re-ignition Operating Excellence •Resort Operating Excellence • Prioritization 4#5WYNDHAM ⚫DESTINATIONS Strong Brands New Markets New Owner Tour Growth Artist's rendering Subject to change Margaritaville Nashville Artist's rendering, Subject to change Artist's rendering Subject to change. Club Wyndham Austin 2018 openings: Austin and Myrtle Beach resorts 2019 openings: Nashville and Portland resorts; San Antonio sales office Wyndham Portland Waterfront Park 5 Wyndham Plantation Resort Wyndham La Cascada#6WYNDHAM ⚫DESTINATIONS Leading Size and Scale Gross VOI Sales Wyndham Vacation Clubs HILTON GRAND VACATIONS MARRIOTT VACATIONS WORLDWIDE Members Resorts $2.3B $1.4B Wyndham Vacation 224 Clubs MARRIOTT VACATIONS WORLDWIDE 109 $1.3B* HILTON 54 GRAND VACATIONS RCI® 3.8M MARRIOTT VACATIONS WORLDWIDE 1.8M Source: Annual reports on Form 10-K for year ended December 31, 2018 * VAC May 13, 2019 presentation Exchange Options RCI® MARRIOTT VACATIONS WORLDWIDE 4.3K 3.2K 6#7WYNDHAM •DESTINATIONS Exchange: Highly Predictable Revenue, Low Capital Intensity • • RCI has 3.8M members worldwide and more than 4,300 affiliated resorts in 110 countries 1.3M transactions Ancillary & Other 20% More than 50% of members belong to various clubs (B2B) Exchange revenue per member of $171 Brand portfolio: RCI since 1974 - ARN, acquired in 2019, leading distributor of closed user group rates through its technology Rentals 18% Exchange 30% - - 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 Subscriptions 32% Note: Amounts as of December 31, 2018 Exchange Revenue 7#8WYNDHAM •DESTINATIONS Exchange: Offices, Associates, Members and Resorts Global Headquarters Primary RCI Operated Centers GLOBAL TOTAL NORTH AMERICA Associates 1,929 Members 2.8M Resorts 1,660 EUROPE, MIDDLE EAST, AND AFRICA Associates 284 Members 432,000 Resorts 1,000 ASIA PACIFIC AND INDIA Associates 3,185 LATIN AMERICA Members 3.8M Associates 815 Resorts 4,300 Members 350,000 Associates 157 Resorts 1,130 Members 300,000 Resorts 510 8 Note: As of December 31, 2018#9WYNDHAM ⚫DESTINATIONS Serving the Broadest Demographic of Travelers US Household Income $200,000+ $150,000 WYND $100,000 WYNDHAM •DESTINATIONS $50,000 $0 Owner Count Mean HHI 880K $91K HGV HILTON GRAND VACATIONS 309K $113K VAC MARRIOTT VACATIONS WORLDWIDE 660K $155K US Census Households 18.8M 18.5M US Traveler 37.0M 53.3M Mean HHI $86,220 Note: Mid point of bubble corresponds to mean owner demographic by brand; area of circle corresponds to relative owner count of each brand. VAC combined with ILG data. Owner Count as of most recent 10-K filing for each company. Sources: US Census (2017), WYND Owner Data (September 2018, excludes Discovery), HGV Investor Deck (September 2018), VAC Investor Day (2015), ILG Investor Day (2017). 9#10WYNDHAM ⚫DESTINATIONS Key Statistics Show Stability in Owner Base iiii 880K OWNERS EA $0 185K OWNERS HAVE A LOAN BALANCE -80% OF OWNERS HAVE NO LOANS OUTSTANDING G ANNUAL OWNER CHURN ~4% INCLUDING ELEVATED LOAN DEFAULTS* Note: Information based on 2018 data *Annual average over last 10 years (•o ANNUAL RETENTION OF >98% OWNERS WITHOUT A LOAN BALANCE* OF OWNERS WHO ~70% PURCHASED IN AND SINCE THE 1990S ARE STILL ACTIVE IN THE WYND SYSTEM 10#11WYNDHAM •DESTINATIONS Shifting Sales Mix to Increase New Owners Mix improved by 240 bps in 2018, compared to 2017 45% 32% 35% 38% Shift mix while growing Adjusted EBITDA and maintaining industry leading margins 2011-2016 Average 2017 2018 Target The Future Value of New Members is High . Owners spend an incremental ~2.6X the initial purchase over their lifetime $1.60 $1 $1 • Average lifetime spend per owner, ~$65K Initial VOI Sale Spend Years 0-5 upgrades spend Years 6+ upgrades spend Source: Club Wyndham Owner Data 11#12WYNDHAM ⚫DESTINATIONS Diversified Marketing Platform Provides Competitive Advantage Sales to Existing Owners ($ in millions) Open Market Sales ($ in millions) Blue Thread Sales ($ in millions) $1,386 2% 2017 $1,418 2018 Largest owner base in the industry, 880K 80% of owners have no loan outstanding • • 11% $709 2017 $787 2018 50% $44 2017 $66 2018 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 12#13WYNDHAM ⚫DESTINATIONS Blue Thread Opportunity Rental: 180+ resorts on Wyndham.com On-Property Marketing: At select Wyndham Hotels locations Call transfer: Access to 15M annual phone calls Loyalty Data: Marketing to database of 79M+ Wyndham Rewards members and post stay guests Aligned Demographic +25% VPG Average Household Homeowner Married Gen X Millennials Income WYNDHAM >$100k 93% 69% 29% 15% REWARDS® WYNDHAM ⚫DESTINATIONS >$100k 94% 73% 30% 17% New Owners (< 5 Years) 13#14WYNDHAM ⚫DESTINATIONS Maintain High Margins Across the Cycle 17% 16% 16% 2006 2007 2008 25% 25% 25% 25% 25% 24% 24% 24% 22% 22% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Wyndham Vacation Ownership Segment Adjusted EBITDA Margin Strong Credit Quality 740 Average FICO Score on 14.5% 725 725 725 725 725 725 725 727 726 727 720 New Originations 14.2% 14.0% 14.1% 14.0% 13.8% 700 691 13.7% 13.5% 683 13.6% 13.5% Average Interest Rate 680 673 13.3% 13.0% 13.1% 12.9% 660 12.7% 12.5% 12.5% 640 12.0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 14#15WYNDHAM ⚫DESTINATIONS ~75% of Revenue is RECURRING & PREDICTABLE Primarily New Owner Sales $3.8B loan portfolio; Fixed interest rates 3.8M members paying annual dues; 85% retention Management fees from 200+ resorts; 98% contract retention 25+ years of data proves owners consistently upgrade حله حاله $3,931 100% Other 90% $1,020 80% Consumer Finance 70% $491 60% Vacation Exchange $658 50% Hospitality Services $665 40% 30% 20% VOI Upgrade Sales $1,097 10% 0% 2018 Recurring Revenues ($M) 15#16WYNDHAM ⚫DESTINATIONS Strong Return of Cash to Shareholders Total Revenue $3.9B Recurring & Predictable Revenue ~$2.9B FY 2018 Adjusted $957M EBITDA Adjusted ~60% Free Cash Flow Adjusted Free Cash Flow Dividends/ Share Repurchases $580M 1 $251M Dividends 1. Total Dividends and Share Repurchases from June 1, 2018 to October 29, 2019 $466M Share Repurchases FY 2018 FY 2018 Further Adjusted EBITDA FY 2018 Adjusted Free Cash Flow 16#17WYNDHAM •DESTINATIONS Straightforward Business Model Delivers Predictable Free Cash Flow 1. Size and Scale Product Large member /owner base Resort network and multiple brands Scale IT investments Financial Model accounting Points-based No percentage of completion Tour-led sales model Just-in-Time inventory Fee-for-Service exchange Regular tri-annual securitizations Revenue recognition at point of sale 1 Straightforward, Predictable Adjusted EBITDA and Free Cash Flow For VOI sales. Point of sale is defined as the point in time where control has been transferred and the statutory rescission period has expired. 17#182018A 2019E WYNDHAM •DESTINATIONS Full-Year Adjusted Free Cash Flow ($ in millions) $990 - $1,000 $70-$90 ($153 - $157) ($33 - $53) ($128 - $132) $565 - $585 ($99 - $109) ($52-$72) $957 $105 ($156) ($24) $580 ($117) ($99) ($86) Further Adjusted EBITDA Interest (a) expense Cash taxes Net consumer (b) finance activity Net inventory spending Capital expenditures Changes in net working capital Adjusted Free Cash Flow (a) Based on an estimated cash tax rate of approximately 17% in 2018 and 19% expected in 2019. (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. 18#19WYNDHAM •DESTINATIONS Return of Capital to Shareholders Returned $717M to shareholders through dividends and share repurchases, from June 1, 2018 through October 29, 2019 • Total returns represented -17% of market capitalization (a) Month of June (post-spin) Q3 & Q4 2018 YTD 2019 Total Return of Capital DIVIDENDS $44M $81M $126M PAID $717M SHARE $15M $206M $245M REPURCHASES (a) Market capitalization of $4.2B on October 29, 2019 with a share price of $46.37 19#20WYNDHAM •DESTINATIONS Strong Balance Sheet Net Leverage: 2.9x Target: 2.25x to 3.0x WACD ~5% WAM ~4.2 years $253 Debt Maturity Schedule 1 ($ in millions) $653 $764 $301 $620 $410 $45 $1 $0 2019 2020 2021 2022 2023 2024 2025 2026 2027 Note: As of September 30, 2019, based on 2.9x leverage, calculated from adjusted EBITDA Assumes revolving credit facility matures on May 31, 2023 1. 20#21WYNDHAM ⚫DESTINATIONS 2019 Guidance Revenues $4,040M - $4,140M Tours: 5%-7% VPG: 0% - 1% Tours: $7.0M Adjusted EBITDA $990M $1,000M — Key Drivers (b) Average Number of Exchange Members: 0% - 2% Adjusted EBITDA Impact of 100bps Change (c) VPG: $10.0M Average Number of Members: $4.5M Adjusted EPS (a) $5.54 - $5.62 Exchange Revenue per Member: (2%) -0% Exchange Revenue per Member: $6.5M The Company does not provide a reconciliation of 2019 non-GAAP measures to the closest GAAP equivalent because the Company is unable to predict with reasonable certainty the totality or ultimate outcome or occurrence of these adjustments or other potential adjustments that may arise in the future during the outlook period, which can be dependent on future events that may not be reliably predicted. (a) Adjusted diluted EPS from continuing operations. Based upon 92.8M weighted average diluted shares. (b) Reflects projected growth over 2018. (c) Sensitivities for revenue drivers are based on average systemwide trends. Operating circumstances including but not limited to brand mix, product mix, geographical concentration or market segment result in variability, which may change the impact. 21#22WYNDHAM ⚫DESTINATIONS Key Drivers: Steady Mid-Single Digit Growth Gross VOI Sales ($ in millions) $2,138 $2,271 6% 8% Number of Tours (in 000s) 869 904 2017 2018 2021E 2021E Low High 2017 2018 Consumer Finance Portfolio ($ in millions) $3,592 $3,771 6% 8% 5% 7% Volume Per Guest (VPG) $2,345 $2,392 0% 2% 2021E 2021E Low High 2017 2018 2021E Low 2021E High Hospitality Services Revenue ($ in millions) $649 $665 RCI Revenues ($ in millions) $691 $680 7% 9% 1% 3% 2017 2018 2021E 2021E High Low 2017 2018 2021E 2021E 2017 2018 2021E 2021E Low High Low High 22#23WYNDHAM ⚫DESTINATIONS Three Year Growth Outlook Adjusted EBITDA Margins 24% 24% 24% 2017 2018 2019E Adjusted EBITDA ($ in millions) 1 $914 $957 $995 2017 2018 2019E Total Revenue ($ in millions) 24% 24% 1 $3,806 $3,931 $4,090 Low 2021E 2021E High 2017 2018 2019E 4% 7% 2021E Low 2021E High 4% 7% 2021E Low 2021E High Adjusted Free Cash Flow ($ in millions) $580 $5751 $500 +7 4% 7% 2017 2018 2019E 2021E Low 2021E High The Company does not provide a reconciliation of 2019 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. 1. 2019E Adjusted EBITDA, Adjusted Free Cash Flow and Total Revenue, based off of midpoint of 2019 guidance provided in 3Q'19 earnings release and conference call on 10/30/19. 23#24WYNDHAM •DESTINATIONS WYND's Positioning Far Superior to Prior Cycles 2008 2018 VO segment Stronger margins 16% 24% adjusted EBITDA margins Capital efficient Capital efficient inventory sourcing <25% >85% 1 inventory mix Average FICO on Credit quality improved 691 727 new originations Average down payment Increased down payment requirements 13% 22% % of financed VOI sales 2 Hotel affinity sales Blue Thread sales - $66M Vacation ownership Large geographic footprint 150 224 resorts 12 1. Average of last four years 2. Represents average down payment percentage on financed sales in the U.S. only 24#25$10 $8 $6 $4 $2 $- Source: 2019 ARDA State of the Industry Report 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 $0 $0 $0 $0 $0 $0 $1 $1 $1 $1 $1 $1 $1 $1 $1 $1 $1 $1 $1 $2 $2 $2 $12 Total Annual Sales ($B) 1989 1990 1991 1992 1993 1994 1995 1996 1997 $4 $3 $3 $2 1998 1999 2000 $7 $6 $5 4 $4 WYNDHAM •DESTINATIONS Industry Sales Grew at a 6% CAGR since 2009 $9 $8 2001 2002 $11 $10 $10 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 $10.2 6% CAGR $10 $9 $9 $8 $8 $7 $6.3 $6 $7 2014 2015 2016 2017 2018 25#26WYNDHAM DESTINATIONS APPENDIX ↑#27WYNDHAM ⚫DESTINATIONS Historical Financials Vacation Ownership Number of Tours (in 000s) 904 3% CAGR 869 819 789 794 801 Volume Per Guest (VPG) 1% CAGR $2,392 $2,345 $2,326 $2,324 $2,281 $2,257 2013 2014 2015 2016 2017 2018 2013 2014 2015 Total Revenues ($ in millions) 4% CAGR $3,016 $2,881 $2,772 (a) $2,774 $2,638 (a) $2,515 (a) 2013 2014 2015 2016 2017 2018 (a) Does not reflect impact of the adoption of the new revenue recognition standard. 2016 2017 2018 Further Adjusted EBITDA ($ in millions) (b) 3% CAGR $721 $703 $688 $684 $660 $621 2013 2014 2015 2016 2017 2018 (b) 2013-2015, per Wyndham Worldwide historical definition and does not reflect impact of revenue recognition. 2016-2018 restated for revenue recognition and further adjusted metrics. 27#28WYNDHAM ⚫DESTINATIONS Historical Financials Exchange & Rentals Average Number of Members 3,765 3,698 (in 000s) 1% CAGR 3,831 3,852 III Total Revenues ($ in millions) 1% CAGR Adjusted EBITDA ($ in millions) 4% CAGR $278 $268 3,799 3,847 $927 $261 $916 $918 $249 (a) $880 (a) $241 (a) $856 (a) $864 (a) $229 (a) 2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018 Consolidated Net VOI Sales ($ in millions) 5% CAGR $1,769 $1,684 $1,604 (a) $1,601 $1,485 (a) $1,379 (a) 2013 2014 2015 2016 2017 2018 Total Revenues ($ in millions) 3% CAGR $3,931 $3,806 $3,653 (a) $3,692 $3,498 (a) $3,372 (a) 2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018 (a) Does not reflect impact of the adoption of the new revenue recognition standard. 28#29WYNDHAM ⚫DESTINATIONS Appendix: Non-GAAP Reconciliations Reconciliation of Free Cash Flows and Adjusted Free Cash Flows ($ in millions) Continuing Operations Net cash provided by operating activities Property and equipment additions Sum of proceeds and principal payments of non-recourse vacation ownership debt Free cash flow from continuing operations Separation and other adjustments (a) Adjusted free cash flow from continuing operations Twelve Months Ended December 31, 2018 2017 EA 292 500 (99) (107) 264 (51) $ 457 $ 342 123 158 es $ 580 est $ 500 (a) Includes incremental license fees paid to Wyndham Hotels & Resorts and other changes being effected in conjunction with the spin-off including corporate costs that reflect the Company's position as if the spin-off had occurred for all periods presented. 29#30WYNDHAM ⚫DESTINATIONS Appendix: Non-GAAP Reconciliations Reconciliation of Net Income to Adjusted EBITDA to Further Adjusted EBITDA to Further Adjusted Net Income From Continuing Operations ($ in millions, except per share amounts) Three Months Ended December 31 Net Income attributable to Wyndham Destinations shareholders Twelve Months Ended December 31. 2016 EPS 2017 EPS 2018 EPS 2017 EPS 112 $ 1.16 416 $4.09 672 $6.77 854 $8.24 Income on disposal of discontinued operations, net of Income taxes 4 456 Income (loss) from discontinued operations. 2 net of income taxes (20) (50) 209 Net Income attributable to noncontrolling Interest Income from continuing operations Restructuring costs Separation-related 10 (1) 106 $ 1.10 444 $4.36 $ 266 $2.68 646 $6.22 16 16 14 25 223 26 Long-term Incentive awards 6 Legacy Items 1 1 Amortization of acquired Intangibles ▸ 3 3 12 Debt modification costs In Interest expense 3 Impairments 65 (4) Acquisition-related deal costs ཋ ཋ།། | | 6 11 205 (13) Value-added tax refund (16) Income taxes * (20) (420) (36) (525) Adjusted net Income from continuing operations $ 123 $ 1.27 100 $0.99 466 $4.69 365 $3.52 30#31WYNDHAM ⚫DESTINATIONS Appendix: Non-GAAP Reconciliations Reconciliation of Net Income to Adjusted EBITDA to Further Adjusted EBITDA to Further Adjusted Net Income From Continuing Operations, continued ($ in millions, except per share amounts) Adjusted net Income from continuing operations Income taxes on adjusted net Income Three Months Ended December 31 (a) Amortization of acquisition-related assets is excluded from adjusted net income from continuing operations, adjusted EBITDA, further adjusted EBITDA and further adjusted net income from continuing operations. (b) Debt modification costs in interest expense are excluded from adjusted net income from continuing operations, adjusted EBITDA, further adjusted EBITDA and further adjusted net income from continuing operations. (c) In the twelve months ended December 31, 2018, amounts represent the tax effect of the adjustments 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 the twelve months ended December 31, 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) Stock-based compensation is excluded from further adjusted EBITDA Twelve Months Ended December 31. 2016 EPS 2017 EPS 2018 EPS 2017 EPS 123 $ 1.27 $ 100 $0.99 $ 46 40 466 $4.69 S 166 365 197 $3.52 Stock-based compensation expense (*) Depreciation *0 3 11 23 47 30 33 126 125 Interest expense (* 41 42 167 155 Interest Income (2) (5) Adjusted EBITDA $ 241 $ 224 S 942 $ 882 Separation adjustments (*) (6) (10) (25) Corporate and other costs 16 25 57 240 234 $ 957 5 914 (30) (29) (121) (110) (40) (41) (164) (166) 2 1 5 6 Stock-based compensation (3) (10) (18) Further adjusted taxes (46) (42) (179) (35) (164) Further adjusted net Income from continuing operations 123 $ 1.27 113 $1.11 $ 400 $4.04 $ 444 $4.29 debt, and a non-investment-grade rating, resulting in higher interest rates for select tranches of notes. Diluted Shares Outstanding 96.7 101.0 99.2 109.7 (i) For comparative purposes this assumes a stabilized effective tax rate of 27% in all quarters prior to the spin-off, which occurred in the second quarter of 2018. The rate used for 2017 reflects the benefit of the tax rate reduction resulting from the U.S. Tax Cuts and Jobs Act. Further adjusted EBITDA Depreciation Interest expense ( Interest Income but included as a reduction to further adjusted net income from continuing operations. (e) Includes incremental license fees paid to Wyndham Hotels & Resorts and other changes being effected in conjunction with the spin-off. (f) Corporate and other costs reflect the Company's position as if the spin-off of its hotel business and the sale of its European vacation rentals business had occurred for all reported periods. (g) Includes depreciation related to retained Wyndham Destinations' corporate assets. (h) Interest expense was calculated based on $2.9 billion of outstanding debt, excluding non-recourse vacation ownership 31#32WYNDHAM •DESTINATIONS Appendix: Non-GAAP Reconciliations Vacation Ownership (VO) Further Adjusted EBITDA Reconciliation ($ in millions) VO Net Income attributable to WYND Effect of Accounting Change Net income attributable to non controlling interest Depreciation Early Provision for Income Taxes and Amortization Interest Expense Extinguishment of Debt Interest (Income) VO Segment Reported EBITDA 2018 SA 340 119 73 117 (1) $ 648 2017 $ 174 110 63 142 $ 489 2016 SA $ 316 1 194 53 131 (1) $ 694 2015 $ 316 196 47 130 (2) $ 687 2014 $ 295 1 185 47 133 (1) SA $ 660 2013 $ 248 1 144 47 180 (1) $ 619 2012 EA 227 137 38 2011 SA 195 122 2010 2009 2008 SA SA SA 156 96 46 0000 4 147 SA $ 549 38 160 SA 141 1 SA 515 440 2007 2006 $ 86 117 (1,281) 150 72 54 50 58 95 48 65 98 39 8 0 0 ST 144 100 387 (1) $ (1,074) 85 378 37 325 2006-2015 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 restated for revenue recognition and further adjusted. 32#33WYNDHAM •DESTINATIONS Appendix: Non-GAAP Reconciliations Vacation Ownership (VO) Further Adjusted EBITDA Reconciliation, continued ($ in millions) VO Segment VO Segment Reported EBITDA Acquisition Related Restructuring Costs Loss on Sale/Asset Impairments Executive Costs Separation Costs Stock Based Compensation 2016 Grant Modifier Adjusted Further Adjustments EBITDA VO Adjusted EBITDA Margin 2018 2017 2016 2015 2014 2013 2012 SA SA 648 11 (4) 67 9 (10) $ 721 24% A SA SA SA 2 549 1 2011 SA 515 2010 $ 440 2009 SA $ 387 2008 $ SA (1,074) 2007 $ 378 2006 $ 325 489 694 687 660 619 205 1 13 1 (25) $ 684 24% 8 6 16 (21) $ 703 25% 1 I 688 25% I I 660 25% 12 I SA 621 25% SA 552 24% (1) 514 25% 37 9 66 1,374 SA SA 440 22% 433 22% 9 18 SA SA SA 366 16% 387 16% 343 17% 2006-2015 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 restated for revenue recognition and further adjusted. 33#34WYNDHAM ⚫DESTINATIONS 2019 Guidance (in millions, except per share amounts) 2019 Guidance 2018A (a) Low High Year-over-year Growth at Midpoint Net revenues Vacation ownership $3,140 Exchange & Rentals 905 $3,220 925 $3,016 5% 918 -% Corporate and other (5) Total $4,040 (5) $4,140 (3) $3,931 4% Adjusted EBITDA $990 $1,000 $942 6% Separation and other costs (a) 15 Further adjusted EBITDA (a) $990 $1,000 $957 4% Stock-based compensation (19) (17) (18) Depreciation and amortization (b) (113) (111) (121) Net interest expense Adjusted pre-tax income Adjusted taxes (c) (157) (155) (159) $704 $714 $659 8% (190) (192) (179) Adjusted net income from continuing operations Weighted average diluted shares outstanding Adjusted diluted earnings per share from continuing operations $514 $522 $480 8% 92.8 92.8 99.2 $5.54 $5.62 $4.84 15% Note: Amounts may not add due to rounding. The Company is providing guidance for adjusted net income from continuing operations, adjusted EBITDA and adjusted diluted EPS 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. 2018 is adjusted to reflect results as if Wyndham Hotels & Resorts were separated from Wyndham Destinations and the sale of the European vacation rentals business was completed for all periods. (a) (b) (c) Excludes amortization of acquisition-related intangible assets. 2019 guidance assumes an effective tax rate of 27%. 34#35WYNDHAM ⚫DESTINATIONS Non-GAAP Measure: Reconciliation of Gross VOI Sales (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 Gross VOI sales to Net VOI sales: Net VOI sales 2018 Loan loss provision Gross VOI sales, net of fee-for-service sales Sales under fee-for-service Gross VOI sales Net VOI sales Loan loss provision 2017 Gross VOI sales, net of fee-for-service sales Sales under fee-for-service Gross VOI sales HA SA SA Q1 Q2 358 462 92 126 450 588 15 14 465 $ 602 EA SA Q3 Q4 Full Year 503 $ 446 $ 1,769 132 106 456 635 552 2,225 5 12 46 640 $ 564 $ 2,271 350 446 EA 466 422 $ 1,684 85 111 123 101 420 435 557 589 523 2,104 3 5 11 15 34 $ 438 562 600 538 2,138 35#36WYNDHAM •DESTINATIONS Appendix: Definitions Adjusted 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, and items that meet the conditions of unusual and/or infrequent. We believe that 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 members in our vacation exchange programs who paid annual membership dues as of the end of the period or who are within the allowed grace period. For additional fees, such participants are entitled to exchange intervals for intervals at other properties affiliated with the Company's vacation exchange business. In addition, certain participants may exchange intervals for other leisure-related services and products. Exchange Revenue Per Member: Represents total annualized revenues generated from fees associated with memberships, exchange transactions, member-related rentals 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 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. 36