Presented by: Rob Kaplan-Sherman Senior Vice President June 3, 2014

Agenda Demographics Ownership characteristics Key indicators Product characteristics 2013 Vacations Exchange/conversion opportunities 2014 Vacations Future intentions Motivations for purchase Final thoughts 2

Demographics Median age $101.7 $104.2 Median income Age Income There seem to be two demographics vacationing in the Northeast: a younger base with children residing at home and an older base of empty nesters. Annual income of NE vacationers is slightly higher than average.

Ownership Characteristics Median tenure (years) Product Recent purchase Ownership tenure NE Vacationers’ product composition skews towards Weeks. While NE Vacationers are less likely to be new owners or recent purchasers, the average tenure is consistent with all owners.

Key Indicators 5 Intended TransactionsKey Attitudes Would buy again? Definitely/probably recommend Timeshare evaluations (Exc/VG) NE Vacationers are loyal, confident owners and especially connected to their home resort. While their recent purchase behavior lags behind other owners, their future plans indicate much brighter days ahead.

Product Characteristics 6 Distance between home and timeshare when first purchased Location of timeshare/home resort Those who have recently taken a timeshare vacation in New England are likely to have their timeshare based there, typically within 500 miles from their home.

Product Characteristics 7 Geographic characteristicsActivities Given the geography, stronger connections of timeshare to beach and mountains is expected. NE Vacationers also emphasis aquatics, sightseeing and children’s activities.

2013 Vacations 8 Allocation of vacation days 2013 Macro vacation use Those vacationing in the Northeast represent a smaller group of heavy vacationers, staying at their timeshare resort and/or taking a vacation without using their timeshare.

2013 Timeshare Vacation Profile Median distance (miles) Number of units Travel party Miles between home and destination Activities Though some travel from across the country, New England tends to draw visitors from within the region, traveling an average of 250 miles Average #

2013 Non-Timeshare Vacation Profile Median distance (miles) Number of units Travel party Miles between home and destination Activities While owners vacationing in the Northeast without using their timeshare travel similar distances, they use fewer units, have smaller travel parties and, consequently, engaged in a reduced set of activities Average #

Timeshare Conversion Opportunities 11 Consistent with Weeks owners, NE Vacationers report greater opportunities exist for exchanges than for conversions. This is a function of both the product configuration and differing awareness levels.

2014 Intended Use 12 How timeshare will be used As a region, the Northeast ranks a distant third for ‘14 intended use. While there is a substantial base of year-over-year visitors, it is expected that most visitors will have vacationed elsewhere in Home resorts remain the most likely destination; conversions as common as exchanges.

Future Intentions 13 Those whose timeshare interest is in the Northeast have similar future intentions, although there may be indications that NE Owners may be more likely than Owners in general to seek something different.

Ownership Motivations 14 Primary purchase motivationsPrimary reason to continue owning timeshare While flexibility has become the primary reason to buy a timeshare, location remains a primary reason to buy and maintain ownership.

Ownership Motivations 15 Primary purchase motivationsPrimary reason to continue owning timeshare While flexibility has become the primary reason to buy a timeshare, location remains a primary reason to buy and maintain ownership.

Final Thoughts Bucking trends – Own weeks and are stronger advocates than Owners, as a whole. Seem to lag behind market evolution…more change appears on the horizon. Timeshare conversion may present substantial opportunities to capture considerable share of owners paying cash to vacation in NE. Some NE timeshare Owners may be growing restless: seeking more than what they have may drive those looking to buy toward other developers. 16

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2014 RESEARCH Darla S. Zanini RRP Executive Vice President ARDA International Foundation 18

2014 AIF Research 19

State of the Industry 20 Census survey January – February resort respondents 48% response rate Contents – Overview – Industry Health – Segments – Historical overview – Industry outlook

Timeshare in the US ,540 Timeshare Resorts 192,420 Units Source: 2014 State of the Vacation Timeshare Industry: United States Study, produced by Ernst & Young for ARDA International Foundation

Households and Intervals Owned Millions Source: 2014 State of the Vacation Timeshare Industry: United States Study, produced by Ernst & Young for ARDA International Foundation

Historical Sales Volume Source: 2014 State of the Vacation Timeshare Industry: United States Study, produced by Ernst & Young for ARDA International Foundation Billions

Northeast Geographic Performance 24 Northeast RegionOverall % of resorts11%1,540 Average size (# of units) Total sales volume ($B)$0.2$7.6 Sales price per interval$19,424$20,460 Average occupancy59.2%76.8% Average maintenance fee$624$845 Source: 2014 State of the Vacation Timeshare Industry: United States Study, produced by Ernst & Young for ARDA International Foundation

Financial Performance 25 Benchmark study January – March company respondents 347 resorts in active sales Contents – Sales Activity – Revenue recognition – Key sales metrics – Hypothecation – Securitization/portfolio sales – Consumer financing/portfolio performance

Net Originated Sales (millions) Fee For Service Source: Financial Performance 2014: A Survey of Timeshare & Vacation Ownership Resort Companies, Produced by Deloitte & Touch for AIF

Economic Impact 27 Census survey January – February resort respondents 48% response rate Contents – Economic Impacts – Fiscal Impacts – Consumer vacation spending

Economic Impacts 28 Output$71.7 billion Employment492,588 Income$24.8 billion Source: 2014 Impact of the Timeshare Industry on the U.S. Economy, produced by Ernst & Young for ARDA International Foundation

Fiscal Impacts Federal TaxesState TaxesLocal TaxesTotal Taxes Resorts$1,679$599$1,064$3,342 S & M Corporate$2,161$640$466$3,267 Vacation Expenditures$1,145$545$294$1,985 Capital Expenditures$156$65$38$259 Total$5,141$1,849$1,862$8, (Millions) Source: 2014 Impact of the Timeshare Industry on the U.S. Economy, produced by Ernst & Young for ARDA International Foundation

Consumer Spending 30 Off-site$7.9 B On-site$2.1 B Total$10 B Per Party$1,967 Source: 2014 Impact of the Timeshare Industry on the U.S. Economy, produced by Ernst & Young for ARDA International Foundation

Key Performance Indicators Sales PerformanceQ1 2013Q1 2014% ChangeTrend Net timeshare sales$1.11 B$1.19 B7.0% Net sales including fee-for-service$1.23 B$1.34 B8.7% Sales MetricsQ1 2013Q1 2014% ChangeTrend Volume per guest (VPG)$2,673$2,7723.7% Close rate15.8%15.5%(1.9%) Tours483,730500,2013.4% Portfolio PerformanceQ1 2013Q1 2014% ChangeTrend Currency90.7%89.9%(0.8%) Delinquencies9.3%10.1%0.8% Charge-Offs1.8%1.7%(5.6%) Other MetricsQ1 2013Q1 2014% ChangeTrend Average occupancy75.7%76.5%1.2% Capital expenditures$92.2 m$178.0 m93.1% 31 Source: Q Financial Performance Pulse Report: A Survey of Timeshare & Vacation Ownership Resort Companies, Produced by Deloitte & Touch for AIF

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