Net income ¹

$150 million

to

$161 million

Fully diluted EPS ¹

$5.45

to

$5.85

Net cash provided by operating activities

$95 million

to

$120 million

¹  2018 expected GAAP results above do not reflect the impact of future spending associated with the planned acquisition of ILG, Inc.

Current Guidance

Previous Guidance

Adjusted free cash flow

$200 million

to

$230 million

$185 million

to

$215 million

Adjusted net income

$184 million

to

$195 million

Adjusted fully diluted EPS

$6.69

to

$7.09

Adjusted EBITDA

$310 million

to

$325 million

Contract sales growth

7 percent

to

12 percent

MARRIOTT VACATIONS WORLDWIDE CORPORATION

FINANCIAL SCHEDULES

2018 PRELIMINARY SECOND QUARTER FINANCIAL RESULTS

TABLE OF CONTENTS

2018 Preliminary Second Quarter Financial Results

A-1 and A-2

Consolidated Contract Sales to Sale of Vacation Ownership Products and Adjusted Development Margin (Adjusted Sale of Vacation Ownership Products Net of Expenses)

A-3

2018 Outlook - Adjusted Net Income, Adjusted Earnings Per Share - Diluted, and Adjusted EBITDA

A- 4

2018 Outlook - Adjusted Free Cash  Flow

A-5

Non-GAAP Financial Measures

A-6

A-1

MARRIOTT VACATIONS WORLDWIDE CORPORATION

2018 PRELIMINARY SECOND QUARTER FINANCIAL RESULTS

(In millions)

Three Months Ended

Six Months Ended

Year
Ended
December
31, 2017

LTM

June 30, 2018

June 30,
2017

June 30, 2018

June 30,
2017

June 30, 2018

Low

High

Low

High

Low

High

Total revenues

$

595

$

595

$

563

$

1,166

$

1,166

$

1,091

$

2,183

$

2,258

$

2,258

Net income

8

13

48

44

49

76

235

203

208

Adjusted EBITDA**

75

77

83

138

140

137

294

295

297

Contract sales

233

233

215

436

436

415

826

847

847

Cash and cash equivalents (as of period end)

547

547

85

409

Borrowing availability

(as of period end)

248

248

148

245

Total gross debt

(as of period end)

1,382

1,382

790

1,146

**

Denotes non-GAAP financial measures. Please see pages A-6 and A-7 for additional information about our reasons for providing the alternative financial measures and limitations on their use.

The following table presents a reconciliation of MVW's preliminary estimate of net income, the most directly comparable GAAP measure, to its preliminary estimates of EBITDA and Adjusted EBITDA for the three, six and last twelve months ended June 30, 2018, a reconciliation of such measures for the three and six months ended June 30, 2017, and a reconciliation of such measures for the year ended December 31, 2017.

Three Months Ended

Six Months Ended

Year
Ended
December
31, 2017

LTM

June 30, 2018

June 30,
2017 ¹

June 30, 2018

June 30,
2017 ¹

June 30, 2018

Low

High

Low

High

Low

High

Net income

$

8

$

13

$

48

$

44

$

49

$

76

$

235

$

203

$

208

Interest expense

5

5

2

9

9

3

10

16

16

Tax provision

8

5

23

19

16

39

5

(15)

(18)

Depreciation and amortization

5

5

5

11

11

10

21

22

22

EBITDA**

26

28

78

83

85

128

271

226

228

Non-cash share-based

6

6

5

10

10

8

16

18

18

Certain items ²

43

43

—

45

45

1

7

51

51

Adjusted EBITDA

$

75

$

77

$

83

$

138

$

140

$

137

$

294

$

295

$

297

**

Denotes non-GAAP financial measures. Please see pages A-6 and A-7 for additional information about our reasons for providing the alternative financial measures and limitations on their use.

¹

As a result of MVW's change in its financial reporting cycle to a calendar year-end and end-of-month quarterly reporting cycle, MVW's six months ended June 30, 2017 had 182 days while MVW's six months ended June 30, 2018 had 181 days.

²

Please see page A-6 for a description and itemization of certain items.

A-2

MARRIOTT VACATIONS WORLDWIDE CORPORATION

2018 PRELIMINARY SECOND QUARTER FINANCIAL RESULTS

(In millions)

The following table presents a reconciliation of MVW's preliminary estimate of vacation ownership contract sales to its preliminary estimates of sale of vacation ownership products for the three, six and last twelve months ended June 30, 2018, a reconciliation of such measure for the three and six months ended June 30, 2017, and a reconciliation of such measure for the year ended December 31, 2017.

Three Months Ended

Six Months Ended

Year Ended
December 31,
2017

LTM
June 30, 2018

June 30, 2018

June 30, 2017

June 30, 2018

June 30, 2017

Contract sales ⁽¹⁾

$

233

$

215

$

436

$

415

$

826

$

847

Less resales contract sales

(7)

(5)

(15)

(11)

(23)

(27)

Contract sales, net of resales

226

210

421

404

803

820

Plus:

Settlement revenue ⁽²⁾

4

4

8

7

15

16

Resales revenue ⁽²⁾

2

2

5

4

8

9

Revenue recognition adjustments:

Reportability ⁽³⁾

(4)

10

(16)

(4)

20

8

Sales reserve

(15)

(14)

(24)

(27)

(52)

(49)

Other ⁽⁴⁾

(8)

(10)

(14)

(18)

(37)

(33)

Sale of vacation ownership products

$

205

$

202

$

380

$

366

$

757

$

771

⁽¹⁾

Contract sales consist of the total amount of vacation ownership product sales under contract signed during the period where MVW has received a down payment of at least ten percent of the contract price, reduced by actual rescissions during the period, inclusive of contracts associated with sales of vacation ownership products on behalf of third parties, which MVW refers to as "resales contract sales." In circumstances where a customer applies any or all of their existing ownership interests as part of the purchase price for additional interests, MVW includes only the incremental value purchased as contract sales. Contract sales differ from revenues from the sale of vacation ownership products that MVW reports in its income statements due to the requirements for revenue recognition described in Footnote No. 1, "Summary of Significant Accounting Policies," to MVW's audited consolidated financial statements included in the Current Report on Form 8-K filed with the SEC on June 5, 2018. MVW considers contract sales to be an important operating measure because it reflects the pace of sales in MVW's business.

⁽²⁾

Previously included in resort management and other services revenue prior to the adoption of Accounting Standards Update 2014-09 – "Revenue from Contracts with Customers", as Amended ("new Revenue Standard").

⁽³⁾

Timing difference between the date of the contract with the customer and when revenue is recognized as a result of the new Revenue Standard.

⁽⁴⁾

Adjustment for sales incentives that will not be recognized as sale of vacation ownership products revenue and other adjustments to Sale of vacation ownership products revenue.

A-3

MARRIOTT VACATIONS WORLDWIDE CORPORATION

CONSOLIDATED CONTRACT SALES TO SALE OF VACATION OWNERSHIP PRODUCTS

(In millions)

Three Months Ended

Six Months Ended

June 30, 2018

June 30, 2017

June 30, 2018

June 30, 2017

Contract sales

$

233

$

215

$

436

$

415

Less resales contract sales

(7)

(5)

(15)

(11)

Contract sales, net of resales

226

210

421

404

Plus:

Settlement revenue ¹

4

4

8

7

Resales revenue ¹

2

2

5

4

Revenue recognition adjustments:

Reportability

(4)

10

(16)

(4)

Sales reserve

(15)

(14)

(24)

(27)

Other ²

(8)

(10)

(14)

(18)

Sale of vacation ownership products

$

205

$

202

$

380

$

366

1

Previously included in Resort management and other services revenue prior to the adoption of the new Revenue Standard.

2

Adjustment for sales incentives that will not be recognized as Sale of vacation ownership products revenue and other adjustments to Sale of vacation ownership products revenue.

MARRIOTT VACATIONS WORLDWIDE CORPORATION

CONSOLIDATED ADJUSTED DEVELOPMENT MARGIN

(ADJUSTED SALE OF VACATION OWNERSHIP PRODUCTS NET OF EXPENSES)

(In millions)

Three Months Ended

Six Months Ended

June 30, 2018

June 30, 2017

June 30, 2018

June 30, 2017

Sale of vacation ownership products

$

205

$

202

$

380

$

366

Less:

Cost of vacation ownership products

57

51

103

95

Marketing and sales

108

98

215

196

Development margin

40

53

62

75

Revenue recognition reportability adjustment

2

(8)

10

2

Adjusted development margin **

$

42

$

45

$

72

$

77

Development margin percentage ¹

19.0%

25.6%

16.2%

20.3%

Adjusted development margin percentage

20.0%

23.2%

18.3%

20.9%

**

Denotes non-GAAP financial measures. Please see pages A-6 and A-7 for additional information about our reasons for providing these alternative financial measures and limitations on their use.

1

Development margin percentage represents Development margin divided by Sale of vacation ownership products.

A-4

MARRIOTT VACATIONS WORLDWIDE CORPORATION

2018 ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER SHARE - DILUTED OUTLOOK

(In millions, except per share amounts)

Fiscal Year
2018 (low)

Fiscal Year
2018 (high)

Net income ¹

$

150

$

161

Adjustments to reconcile Net income to Adjusted net income

Certain items ²

45

45

Provision for income taxes on adjustments to net income

(11)

(11)

Adjusted net income **

$

184

$

195

Earnings per share - Diluted ^{1, 3}

$

5.45

$

5.85

Adjusted earnings per share - Diluted **^{, 3}

$

6.69

$

7.09

Diluted shares ³

27.5

27.5

1

2018 expected GAAP results above do not reflect the impact of future spending associated with the planned acquisition of ILG, Inc.

2

Certain items adjustment includes $23 million of acquisition costs, $16 million of litigation settlements and $6 million of losses and other expense.

3

Earnings per share - Diluted, Adjusted earnings per share - Diluted, and Diluted shares outlook includes the impact of share repurchase activity only through July 24, 2018.

**

Denotes non-GAAP financial measures. Please see pages A-6 and A-7 for additional information about our reasons for providing these alternative financial measures and limitations on their use.

MARRIOTT VACATIONS WORLDWIDE CORPORATION

2018 ADJUSTED EBITDA OUTLOOK

(In millions)

Fiscal Year
2018 (low)

Fiscal Year
2018 (high)

Net income

$

150

$

161

Interest expense ¹

17

17

Tax provision

53

57

Depreciation and amortization

26

26

EBITDA **

246

261

Non-cash share-based compensation

19

19

Certain items ²

45

45

Adjusted EBITDA **

$

310

$

325

1

Interest expense excludes consumer financing interest expense.

2

Certain items adjustment includes $23 million of acquisition costs, $16 million of litigation settlements and $6 million of losses and other expense.

**

Denotes non-GAAP financial measures. Please see pages A-6 and A-7 for additional information about our reasons for providing these alternative financial measures and limitations on their use.

A-5

MARRIOTT VACATIONS WORLDWIDE CORPORATION

2018 ADJUSTED FREE CASH FLOW OUTLOOK

(In millions)

Fiscal Year

2018 (low)

Fiscal Year

2018 (high)

Net cash provided by operating activities

$

95

$

120

Capital expenditures for property and equipment (excluding inventory):

New sales centers ¹

(3)

(5)

Other

(27)

(32)

Borrowings from securitization transactions

423

423

Repayment of debt related to securitizations

(305)

(295)

Free cash flow **

183

211

Adjustments:

Net change in borrowings available from the securitization of eligible vacation ownership notes receivable through the warehouse credit facility ²

13

10

Inventory / other payments associated with capital efficient inventory arrangements

(40)

(40)

Certain items ³

46

46

Change in restricted cash

(2)

3

Adjusted free cash flow **

$

200

$

230

1

Represents the incremental investment in new sales centers.

2

Represents the net change in borrowings available from the securitization of eligible vacation ownership notes receivable through the warehouse credit facility between the 2017 and 2018 year ends.

3

Certain items adjustment includes $23 million of acquisition costs, $16 million of litigation settlements and $7 million of fraudulently induced electronic payment disbursements made to third parties.

**

Denotes non-GAAP financial measures. Please see pages A-6 and A-7 for additional information about our reasons for providing these alternative financial measures and limitations on their use.

A-6

MARRIOTT VACATIONS WORLDWIDE CORPORATION
NON-GAAP FINANCIAL MEASURES

In our press release and schedules we report certain financial measures that are not prescribed by GAAP. We discuss our reasons for reporting these non-GAAP financial measures below, and the financial schedules included herein reconcile the most directly comparable GAAP financial measure to each non-GAAP financial measure that we report (identified by a double asterisk ("**") on the preceding pages). Although we evaluate and present these non-GAAP financial measures for the reasons described below, please be aware that these non-GAAP financial measures have limitations and should not be considered in isolation or as a substitute for revenues, net income, earnings per share or any other comparable operating measure prescribed by GAAP. In addition, these non-GAAP financial measures may be calculated and / or presented differently than measures with the same or similar names that are reported by other companies, and as a result, the non-GAAP financial measures we report may not be comparable to those reported by others.

Adjusted Net Income

We evaluate non-GAAP financial measures, including Adjusted Net Income, Adjusted EBITDA, and Adjusted Development Margin, that exclude certain items in the quarters and first halves ended June 30, 2018 and June 30, 2017, and the fiscal year ended December 31, 2017, because these non-GAAP financial measures allow for period-over-period comparisons of our on-going core operations before the impact of these items. These non-GAAP financial measures also facilitate our comparison of results from our on-going core operations before these items with results from other vacation ownership companies.

Certain items for the 2018 second quarter consisted of $20 million of acquisition costs associated with the pending acquisition of ILG, $16 million of litigation settlement charges, including $11 million related to a project in San Francisco, $4 million related to a project in Lake Tahoe and $1 million related to projects in Europe, and $7 million of losses and other expenses associated with fraudulently induced electronic payment disbursements made to third parties. These exclusions increased EBITDA by $43 million.

Certain items for the 2017 second quarter were less than $1 million and was comprised of acquisition costs, litigation settlement expenses and losses and other expense. These exclusions did not have an impact on Adjusted EBITDA.

Certain items for the 2018 first half consisted of $23 million of acquisition costs, including $20 million of costs associated with the pending acquisition of ILG and $3 million of costs associated with the anticipated future capital efficient acquisition of an operating property in San Francisco, California, $16 million of litigation settlement charges, including $11 million related to a project in San Francisco, $4 million related to a project in Lake Tahoe and $1 million related to projects in Europe, and $7 million of losses and other expenses associated with fraudulently induced electronic payment disbursements made to third parties, partially offset by a $1 million favorable true up of previously recorded costs associated with Hurricane Irma and Hurricane Maria (the "2017 Hurricanes") (recorded in losses and other expense) and previously recorded litigation settlement expenses. These exclusions increased EBITDA by $45 million.

Certain items for the 2017 first half consisted of $1 million of acquisition costs, and less than $1 million of litigation settlement expenses and losses and other expense. These exclusions increased EBITDA by $1 million.

Certain items for fiscal year 2017 consisted of $9 million in net insurance proceeds related to the settlement of business interruption insurance claims arising from Hurricane Matthew, $7 million of variable compensation expense related to the impact of the 2017 Hurricanes, $4 million of litigation settlement expenses, $2 million of acquisition costs, a charge of $1 million associated with the estimated property damage insurance deductibles and impairment of property and equipment at several of MVW's resorts, primarily in Florida and the Caribbean, that were impacted by the 2017 Hurricanes, $1 million of variable compensation expense related to the impact of Hurricane Matthew and $1 million of miscellaneous losses and other expense. These exclusions increased EBITDA for 2017 by $7 million.

Adjusted Development Margin (Adjusted Sale of Vacation Ownership Products Net of Expenses)

We evaluate Adjusted Development Margin (Adjusted Sale of Vacation Ownership Products Net of Expenses) as an indicator of operating performance. Adjusted Development Margin adjusts Sale of vacation ownership products revenues for the impact of revenue reportability, includes corresponding adjustments to Cost of vacation ownership products expense and Marketing and sales expense associated with the change in revenues from the Sale of vacation ownership products, and may include adjustments for certain items as itemized in the discussion of Adjusted Net Income above. We evaluate Adjusted Development Margin because it allows for period-over-period comparisons of our on-going core operations before the impact of revenue reportability and certain items to our Development Margin.

MARRIOTT VACATIONS WORLDWIDE CORPORATION
NON-GAAP FINANCIAL MEASURES

Earnings Before Interest Expense, Taxes, Depreciation and Amortization ("EBITDA") and Adjusted EBITDA

EBITDA is defined as earnings, or net income, before interest expense (excluding consumer financing interest expense), provision for income taxes, depreciation and amortization. For purposes of our EBITDA and Adjusted EBITDA calculations, we do not adjust for consumer financing interest expense because we consider it to be an operating expense of our business. We consider EBITDA and Adjusted EBITDA to be indicators of operating performance, which we use to measure our ability to service debt, fund capital expenditures and expand our business. We also use EBITDA and Adjusted EBITDA, as do analysts, lenders, investors and others, because these measures exclude certain items that can vary widely across different industries or among companies within the same industry. For example, interest expense can be dependent on a company's capital structure, debt levels and credit ratings. Accordingly, the impact of interest expense on earnings can vary significantly among companies. The tax positions of companies can also vary because of their differing abilities to take advantage of tax benefits and because of the tax policies of the jurisdictions in which they operate. As a result, effective tax rates and provision for income taxes can vary considerably among companies. EBITDA and Adjusted EBITDA also exclude depreciation and amortization because companies utilize productive assets of different ages and use different methods of both acquiring and depreciating productive assets. These differences can result in considerable variability in the relative costs of productive assets and the depreciation and amortization expense among companies. Adjusted EBITDA reflects additional adjustments for certain items, as itemized in the discussion of Adjusted Net Income above, and excludes non-cash share-based compensation expense to address considerable variability among companies in recording compensation expense because companies use share-based payment awards differently, both in the type and quantity of awards granted. Prior period presentation has been recast for consistency. We evaluate Adjusted EBITDA as an indicator of operating performance because it allows for period-over-period comparisons of our on-going core operations before the impact of the excluded items. Together, EBITDA and Adjusted EBITDA facilitate our comparison of results from our on-going core operations before the impact of these items with results from other vacation ownership companies.

Free Cash Flow and Adjusted Free Cash Flow

We evaluate Free Cash Flow and Adjusted Free Cash Flow as liquidity measures that provide useful information to management and investors about the amount of cash provided by operating activities after capital expenditures for property and equipment, changes in restricted cash, and the borrowing and repayment activity related to our securitizations, which cash can be used for strategic opportunities, including acquisitions and strengthening the balance sheet. Adjusted Free Cash Flow, which reflects additional adjustments to Free Cash Flow for the impact of organizational and separation related, litigation, and other cash charges, allows for period-over-period comparisons of the cash generated by our business before the impact of these items. Analysis of Free Cash Flow and Adjusted Free Cash Flow also facilitates management's comparison of our results with our competitors' results.