FORWARD-LOOKING STATEMENTS AND NON-GAAP FINANCIAL MEASURES This document contains forward-looking statements within the meaning of federal

securities laws, including statements about future properties and their anticipated contributions to our operating results; the construction and sales pace for new properties, upcoming sales of timeshare mortgage notes, and similar statements concerning anticipated events that are not historical facts. We caution you that these statements are not guarantees of future performance and are subject to numerous risks and uncertainties, including volatility in the economy and the credit markets; supply and demand changes for vacation ownership and residential products; competitive conditions; the availability of capital to finance growth; and other matters referred to under the heading Risk Factors in our most recent Registration Statement on Form 10 filed with the U.S Securities and Exchange Commission, any of which could cause actual results to differ materially from those expressed in or implied in this presentation. These statements are made as of October 28, 2011 and we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise. Throughout this document, and its associated presentation materials, we report certain financial measures, each identified with the symbol "," that are not prescribed or authorized by United States generally accepted accounting principles (GAAP). We discuss our reasons for reporting these non-GAAP measures and reconcile each to the most directly comparable GAAP measure on Marriott Internationals Reconciliations web page at http://investor.shareholder.com/mar/reconciliations.cfm.

Marriott Vacations Worldwide Corporation Security Analyst Meeting Transcript1 The New York Marriott Marquis October 28, 2011

Jeff Hansen, Vice President Investor Relations, Marriott Vacations Worldwide Corporation Good morning, everyone. Its a special pleasure for me to welcome you to our first Marriott Vacations Worldwide Analyst Day. Im Jeff Hansen and I have been named to lead the Investor Relations effort for the new MVW. I have been in the vacation ownership business for the last 10 years in Asset and Product Management, the majority of that time with Marriott Vacations Worldwide, and I am truly excited about this opportunity and the opportunities ahead for Marriott Vacations Worldwide, our new company. Marriott has a longstanding commitment to the investment community. Trust that the new Marriott Vacations Worldwide will have the same commitment to you as well. Before we begin today, let me first remind everyone that many of the comments are not historical facts and are considered to be forward-looking statements under federal securities laws.

This transcript is not a verbatim reproduction and has been edited by the company.

These statements are subject to numerous risks and uncertainties as described in our SEC filings, which could cause future results to differ materially from those expressed or implied by our comments. Forward-looking statements in our presentation today are effective only today, October 28, 2011, and will be not be updated as actual events unfold. For those of you who are present with us, you can find a reconciliation of non-GAAP financial measures referred to in our remarks in the back of your handbook. For those of you who are listening in, you can find both the handbook and the reconciliations at www.marriott.com/investor. We recognize that in attending the meeting today you are using a substantial amount of your time to consider the prospects for our business. We appreciate you taking the time to come and to hear our story. So, lets begin This morning, well discuss our business in detail to assist you in understanding how we make money, our capital structure, our strategies, competitive advantages and how one might model our business. During the break, well have time to speak with you informally. As you visit with our executives, I know youll be impressed with our management talent and depth. Earlier this year, Marriott Internationals board of directors announced a preliminary plan to spin-off its timeshare business late in 2011. Earlier this week, Marriotts board approved the spin-off, and the new timeshare company will do business as Marriott Vacations Worldwide Corporation, trading under the ticker symbol, VAC. This is the structure of the transaction. The formation of MVW U.S. Holdings and the sale of $40 million of Preferred Stock of MVW Holdings, which is scheduled to close today, have been structured in a manner that is intended to result, for U.S. federal income tax purposes, in the recognition of significant built-in losses in properties used in our businesses. These losses will be available to Marriott International, not MVW. With the spin-off, Marriott Vacations Worldwide will have exclusive rights to the Marriott and The Ritz-Carlton brand names as they pertain to the vacation ownership business. For these exclusive, strategic and long-term rights, MVW will pay a royalty fee. Our current timeline is similar to most spin-offs and is expected to be as follows: When issued trading should begin on November 8th. The record date would then be November 10th with the dividend payment date of November 21st. We will also conduct a road show from November 7th through November 17th, and all of this is followed by regular way trading beginning on November 22nd. One important note for our shareholders, for every 10 shares 2

of Marriott International owned, shareholders will receive 1 share of VAC, the new Marriott Vacations Worldwide. Well launch our new company with world class assets, admired brands, loyal customers and an attractive balance sheet. This provides you a foundational understanding of the transaction. Throughout our time together today, our executives will provide you additional information, but before we move into their detailed presentations, its my personal pleasure to introduce Carl Berquist, Executive Vice President and Chief Financial Officer for Marriott International. Welcome, Carl.

Carl Berquist, Executive Vice President and Chief Financial Officer, Marriott International Thanks Jeff. Thanks, too, for providing a great summary of the spin-off transaction. Im really excited to be here this morning and to be at this point in the transaction. We feel confident Marriott Vacations Worldwide is well positioned to be the premier timeshare business in the world, and today youre going to hear all the reasons why. Ive answered a lot of questions about the spin-off since we announced it in February one common question has been whether this is an exit strategy from the timeshare industry for Marriott International. In fact, as you will learn today, this is not about exiting the timeshare business, but rather, about growing the timeshare business, and ultimately, about growing it faster than it would have, had it been part of the combined company. Marriott International has been committed to the growth of this business for more than 27 years. We were the first significant lodging company to enter the timeshare business with the acquisition of American Resorts in 1984. And it has proven to be one of the most successful M&A transactions weve ever done. Marriotts accumulated timeshare sales over the past 27 years have just hit the $15 billion mark. Clearly, we have prospered in timeshare, and we want to continue growing the business. The success of the business is a tribute to Steve Weisz and his leadership team as well as the value and integrity the Marriott brand has brought to the vacation ownership industry. Early on, we created an exceptional value proposition for our owners. Together, the brand and this value proposition have attracted more than 400,000 owners worldwide. Our owners and their families consider our timeshare resorts their home away from home. Their satisfaction measures, which you are going to hear about today, are phenomenal. As a result, our timeshare owners buy more product from us, and they refer us to their friends and family, who buy from us. These same owners also stay with usthey are very loyal hotel guests at nearly 3,700 Marriott-branded hotels worldwide. Weve been fortunate to have the best leaders in the business theyre smart, innovative, focused and determined, and, have demonstrated in the recent downturn that they can deliver exceptional results in good times and rough times as well. So, why would we divide Marriott International and Marriott Vacations Worldwide into two separate and independent companies? First, we know spins can produce exceptional results. In 1993 we spun-off our hotel real estate assets to Host Marriott. And like this transaction today, it was a growth strategy. It 4

enabled Marriott to focus on managing and franchising and Host to grow an admired portfolio of high quality hotels. Today, Host Hotels and Resorts has annual revenues approaching $5 billion. Thats a pretty successful growth strategy. Its been successful for shareholders, too. Three years after the split, the value of Host and Marriott stock had both more than doubled. Each company has grown faster and more profitably, given the opportunity for improved, singular focus. As independent companies, Marriott and MVW will each benefit from that same singular focus on their core businesses. If you think about it, it leads to some fundamental changes in how the businesses are managed. Strategic decisions can be made based on individual market environments and growth opportunities. Capital can be allocated based on individual capital structures and investment targets. Management decisions can be based on individual operating modelseven their unique talent acquisition and retention strategies can be implemented. Simply put, each company can make decisions and capitalize on new opportunities based on what will grow the value of their individual businesses. It also means we can make these decisions more quicklyaccelerating our speed to market and making us each more nimble, and more competitive. The spin will also enhance investor understanding and choice. Every investor has different investment objectives; likewise, the lodging and timeshare businesses have different objectives. The spin-off gives investors the ability to better align their goals with our businesses. I expect youll come away from todays meeting with a renewed appreciation for the opportunities in MVW. There will be opportunities for new product offerings, new management affiliations, even new brand opportunities. I also believe you will see the significant strength of MVW. It starts with product, and MVW has exceptional product offerings. Last year we rolled out the new points program, Marriott Vacation Destinations its been a hit with owners. MVW can develop it and sell it more efficiently and drive revenue with greater flexibility at the same time. So MVW has a very efficient product model, which customers love. MVW will have considerable inventory on handwhich will give them significant revenue opportunities ahead with modest near term capital requirements. MVW will have strong cash flows, ample liquidity and access to capital. The capital structure will allow for long-term growth and sustainability. The business overhead has been right-sized providing tremendous operating leverage. When you put all these together with an experienced, outstanding management team, this is a company that, I believe, will successfully seize the many opportunities ahead. And Marriott International will participate in that success as well. We expect MVW to continue to develop and operate resorts under the Marriott and The Ritz-Carlton flags and 5

the Marriott royalty fee will increase with that growth. We are firmly committed to the success of this business and are excited about the opportunities ahead. Bill Marriott was unable to join us today, but he wished to share a personal message with you, along with his thanks for your support and interest in our two companies, Marriott International and Marriott Vacations Worldwide. So its a pleasure for me to have this chance to introduce his message today.

J.W. Marriott, Jr., Chief Executive Officer and Chairman of the Board, Marriott International Greetings. I couldnt be more bullish about the new Marriott Vacations Worldwide Corporation. Thanks for joining us to learn more about this soon-to-be publicly traded company. In the early 1980s, we concluded there was an emerging group of customers who loved owning their vacations. So in April of 1984, we were the first branded hotel company to enter the industry with the acquisition of three timeshare resorts on Hilton Head Island. For nearly three decades we have led this competitive industry through customer-driven innovations. We have revolutionized the industry, delivering integrity and value. Our timeshare portfolio features the finest resorts in the worlds most desired vacation destinations. Our amenities and services are award-winning. Our sales process is admired and our associates are talented. As a result we offer the unique ability to deliver the best vacation experiences. Over the years, weve put just about every process under a microscope to find better, more efficient ways to run a global timeshare company. Today, we have more then 400,000 extremely satisfied owners around the world and a prized portfolio of over 64 resorts. This latest chapter to our story will enable the new Marriott Vacations Worldwide to grow - through conventional timeshare, as well as new businesses. In just a short time, this new company will become the largest publicly traded pure-play timeshare company in the world. As youll hear today, the team has enormous expertise, deep Marriott roots and a commitment to excellence unlike any others youll meet in this business. Most of you also know that my family and I will have a substantial holding in Marriott Vacations Worldwide Corporations, and we couldnt be more proud. Again, thanks for joining us today as we share our storyanother Marriott first. And enjoy the day.

Carl Berquist, Executive Vice President and Chief Financial Officer, Marriott International And, I also would like to extend my thanks for coming today. Its now my pleasure to introduce Steve Weisz, the President and Chief Executive Officer of Marriott Vacations Worldwide. Steve is a 39-year Marriott veteran and I cant think of anyone that could be better suited for this role and to lead his great team. Steve? Steve Weisz, President and Chief Executive Officer, Marriott Vacations Worldwide Corporation Thank you, Carl. Good morning everyone. Were delighted to be with you to talk about our business and I want to once again thank you for joining us and taking time out of your day to be with us. This morning, youll hear what were all about well conceived strategies, from exceptional customer experiences to revenue optimization, and our ability to skillfully execute against those strategies. Today, youll come to know a number of our executives and Im confident youll be convinced, just as I am, that our success really is all about this very talented team. Our speakers today represent more than 100 years of Marriott and vacation ownership experience proof positive that were all very proud of our Marriott heritage and well versed in the business. Weve sought some of the brightest and most accomplished individuals to represent our shareholders including strong independent directors. Rip Gellein is one of the founders of the modern timeshare industry, and was previously President of the Global Development Group at Starwood Hotels and Resorts Worldwide and Chairman and CEO of Starwood Vacation Ownership, Inc. He is Chairman of the Board of Strategic Hotels and Resorts, and presently serves on the Board of Trustees for the American Resort Development Association, which is the timeshare industrys trade association. Deborah Marriott Harrison is Senior Vice President of Government Affairs for Marriott International. Her strong public policy background will be particularly valuable to us in this

highly regulated industry, and as Bill Marriotts daughter, she comes to our board with the deepest Marriott roots imaginable. From 2000 through 2007, Tom Hutchison served in a number of executive positions at CNL Financial Group, including CEO. Presently, Tom is Chairman of Legacy Hotel Advisors, LLC and Legacy Health Properties, LLC. Obviously, Toms strong background in hospitality, lodging and real estate development will be quite relevant to our business. Mel Martinez is the former U.S. Senator from Florida and Secretary of Housing and Urban Development. He presently serves as the regional Chairman of JPMorgan Chase for Florida, Mexico, Central America, and the Caribbean. Mels vast legal experience will be extremely beneficial to the new MVW. Bill McCarten is Chairman of DiamondRock Hospitality Company. He brings extensive experience in hospitality and capital markets to our new company, and also brings deep and successful spin-off experience as a two-time former spin-off CEO. Finally, Bill Shaw will be our Chairman of the Board. Bill retired as Vice Chairman of Marriott International this past March and previously served as its President and Chief Operating Officer. He was on the senior management team at Marriott when the company decided to enter the timeshare industry in 1984. He has both great insight into, and passion for, our business. Hes a gifted leader, and great friend. Bill is with us today, and Im especially pleased to have this chance to personally introduce him to you now. Bill, would you please stand? [Applause] Marriott Vacations Worldwide is a development business, a management and services business, and a financing business, all wrapped up into one integrated enterprise. Our expertise enables us to leverage all of these revenue streams to create a very profitable business model. Our mission is customer-driven and straightforward To Deliver Unforgettable Experiences that Make Vacation Dreams Come True. In our 27 years in the business weve proven it works. Last year, we earned just about $1.3 billion in revenue before reimbursed costs. Just over half of our 2010 revenue came from development sales, while the balance largely came from resort management and other services, financing and rentals. We will go over each of these in much greater detail later in the presentation. 9

There is a myth associated with our industry that once the sale is done, opportunities for future revenues and the customer relationship effectively cease. The reality is that the initial sale, in relative measure, is quite small when compared to the long-term customer value and associated revenue streams. About 45 percent of our owners finance with us, and their credit quality is the highest in the industry. As a result, our securitizations are typically oversubscribed at the most attractive terms in the industry. We also earn revenue by renting vacant, unsold inventory on the open market, to new customers who want to preview our product or to existing owners who want to enjoy additional vacation experiences with us. Owners often buy additional product from us as well. Their reasons to do so are varied more free time for vacations, a desire for longer vacations, or a desire to travel with kids and grandkids. Whatever their motivations, were always thrilled when they expand their Marriott Vacation Ownership portfolio. And, when they purchase, the oftentimes frequently refinance with us once again. You may have heard quite a bit about the referral business, and theres a very good reason. Referrals are one of our most effective and efficient channels for new customers. Theyre familiar with our product, portfolio and our service. Our owners endorse our product to their friends and family. And you certainly cant beat that for great advertisement! Our Points Owners pay club dues for a range of services, from exchange benefits to Marriott Rewards trades. Its a single annual set fee thats convenient for them, and we expect it to be a growing source of revenue over time. Were known for exceptional property management throughout the industry, and enjoy a solid, recurring revenue stream from our resorts through management fee income which is a portion of the annual maintenance fee. Finally, owners and guests enjoy our many onsite amenities, from our convenience markets, golf course and spas, to food and beverage outlets at our resorts. Over time, the long-term revenue stream per buyer is substantial, and clearly well beyond the value of the initial sale. For 27 years, our accomplishments have been impressive with consistent growth in owners, customer driven innovation in product forms, and entry into new markets. Today, we have 64 resorts around the world, roughly 10,000 associates, more than 400,000 very satisfied owners and the most flexible and strategic points-based product form in the industry. 10

The timeshare business is a significant industry with substantial future revenue opportunity. Today, fewer than 8 percent of American households own timeshare vacations so the upside is great. And this is a vibrant industry. According to industry sources, more than 4 million timeshare intervals were sold from 2000 to 2010, and in 2010, timeshare revenues in North America totaled nearly $6.5 billion. As was mentioned, with the spin-off, Marriott Vacations Worldwide will be the leading publicly traded pure-play vacation ownership company in the world. As you can see from this map, our resorts are located in some of the most highly desired vacation destinations in the world. Our broad portfolio makes our product more valuable to customers as well as investors. But while our global distribution is already noteworthy, we continue to see excellent growth potential in both North America and Asia, and we have strategies to pursue growth in both of these regions. Our brands and reputation for product and service excellence, and our extensive distribution, clearly position us as the quality leader in the timeshare industry today. As the leading public pure-play vacation ownership company in the world, we are well positioned for success, given our strong geographic diversification and significant business growth opportunities. Given our size and distribution, we can provide owners with a wide variety of vacation experiences. Our tenured and talented management team leads with insightful strategies and a deep commitment to our values, the admired brands we represent and the well-being of our associates and our customers. We believe the Marriott and Ritz-Carlton brands are the best in the business for reputation, quality and customer preference. Our long-term and exclusive rights to use the Marriott and Ritz-Carlton brands in our business will continue to position us for growth. In addition, our relationship with Marriott will also enable us to leverage both the Marriott Rewards program and the powerful Marriott.com website. Our community of more than 400,000 owners is highly satisfied and loyal, as their repurchase and referral trends confirm and their satisfaction ratings prove. We enjoy diversified income streams that provide protection in volatile economic climates. Given the high credit quality of our typical borrower, we have strong mortgage receivables and access to capital at attractive pricing levels, even in challenging times. This should lead to continued strong profitability from financing.

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Our business model drives solid cash flow through development sales, as well as recurring management fee revenue, service revenue and interest income. We also have meaningful liquidity from our access to the ABS market, as well as access to our warehouse and bank revolver facilities. We believe that MVW is well positioned to prosper during both strong and weak economic cycles. In fact today, John Geller, our CFO, will present a model for 2012 with three contract sales scenarios. I would remind you that we are not endorsing any of these scenarios; the economy is simply too uncertain. Rather, we provide them so you can see our resilience in times of economic stress, as well as our strength in periods of economic growth. Ill leave the numbers to John, but I think youll be impressed. Our 10,000 loyal associates share a deep commitment to one another, our customers, our communities and our success. Our senior executives have extensive Marriott experience and tenure, averaging more than 22 years per team member. And given our stellar reputation as a top employer, we attract highly talented individuals who align with our values and our culture. Our commitment to training ensures our future leaders are very well prepared. Our organization, from top to bottom, is grounded in a culture of hospitality. We learned from the best Marriott -- and we understand the meaning, the value, and the standards behind great brands. Annually, we assess our associates engagement and Im proud that we have scored well above the global best employer benchmark according to AonHewitts engagement survey for the past two years, most recently, scoring a full six points higher than the benchmark. And the Gallup organization has also recognized us as one of the most engaged and productive workforces in the world, and has presented us with the coveted Great Workplace Award on three separate occasions. And this past March, we were chosen by The American Business Awards for Favorite Customer Service in the leisure and tourism category. Looking ahead, we intend to seize upon opportunities to grow cash flow, improve return on invested capital and increase shareholder value. We expect to do so by driving profitable sales growth, as we continue to target our existing customers. Their purchases of additional product through our points program will add to their vacation experiences, and enable them to enjoy greater vacation frequency and variety. With the introduction of Points, our product is now even more affordable so we expect to add more first time buyers to our loyal owner base, and in doing so, expect to realize both an increase in volume per guest and growth in stable and recurring management fees. We further expect to earn additional fees associated with the points program and related club dues.

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We expect to continue to offer our customers attractive financing alternatives that will also be profitable to us. As we change our product mix, our marketing and sales costs should decline and incremental sales should become even more profitable. Since owners and guests are the most effective sales channel, we work hard to ensure their long term satisfaction with our products. We have found the best way to do this is to retain a strong spirit to serve culture combined with robust training for our associates. Weve proven that paired with outstanding products, excellent service drives repeat business. We expect to opportunistically dispose of excess assets, largely undeveloped land, and selectively pursue an asset-light deal structure over the next few years, which will enable us to redeploy capital more efficiently. We do not intend to develop new resort projects in the near term given our significant inventory already on our books. But as new inventory is required, we will target high-quality inventory sources or new sales locations through transactions that are capital efficient. These may be turn-key developments with third party owners, purchases of inventory just prior to sale, or fee for service arrangements. We expect to pursue compelling new business opportunities as well. As an independent company, we are positioned to explore new opportunities, such as adding new management affiliations, launching higher margin onsite ancillary businesses, expanding our exchange business, or even adding new brands, some of which may not have been possible as part of Marriott. We have a solid cash flow model. Our investment needs for the near-term are modest and our points program has been designed for capital efficiency. And, we have the right capital structure to provide for liquidity as needed. In all that we do, we will keep our focus on leveraging our existing competencies, generating higher cash flow and improving return on invested capital. In 2010, our worldwide contract sales totaled $705 millionthats just about $2 million a day in vacation ownership, 365 days a year. Seventy-five percent of those sales came from our North America segment. Looking ahead, its our plan to market our existing inventory in North America as well as complete phases now under construction. In time, well add new resort inventory or other products consistent with our sales pace, with an eye on improving ROIC. The launch of our North America points program in June of last year was a meaningful improvement to our product and our customers love it. We expect to continue to enhance our points program by adding new partnerships and vacation experiences over time.

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Finally, we expect to monetize excess undeveloped land in North America over the next 18 to 24 months. At the risk of stating the obvious, Asia Pacific is a region of rapid economic growth and a large affluent population. We opened our first Asian resort in Phuket, Thailand in 2002. In 2006, we entered the region with our first points-based product form that continues to grow. Today, we have five sales offices and three resorts. We have plans to increase our Asian owner base by expanding sales galleries as we add new resort locations and the business grows. Weve been in Europe since the mid-90s. With this increasingly difficult regulatory environment, we have found few attractive development opportunities in recent years. We plan to sell out our remaining European inventory by 2015, but will continue to provide excellent resort management and customer service to the owners of our European resorts. Of course, Europe will always be a popular destination for our owners worldwide, and our existing European inventory will continue to be an important element of our worldwide system of resorts. As you might expect, the luxury segment has been especially challenging over the past several years given the economic climate. As the luxury second home market declined, we found ourselves long on inventory in this segment. At the same time, our Ritz-Carlton Destination Club members remain highly engaged and comprise a very valuable and loyal customer base for our portfolio as well as The RitzCarlton Hotel Company. Were committed to their continued satisfaction. We expect to grow our luxury business over time through affiliations. Our enhanced points platform should contribute to our marketing pipeline for this segment. At the same time it is our plan to monetize excess luxury inventory and undeveloped land. In fact, just this week we closed on a sale of excess inventory and land in North Lake Tahoe for $17 million, consistent with our expectations. So some have asked, why do a spin now? With the spin-off, investors will have an improved understanding of the value of our business. We believe the more you know about us, the more impressed you will be with our future prospects. Our Form 10 has an enormous amount of disclosure which we hope you have found helpful. We will have the endorsement of two of the strongest brands in the hospitality industry. We will continue to deliver high quality vacation experiences. Owners, members and guests will 14

continue to enjoy unforgettable vacations. And our associates will continue to be front and center in our strategy and our culture. We recently launched our North American points program with great success. This enables us to better leverage our ample completed inventory. It also positions us well for future growth and higher returns on capital. While not a reason for the spin-off, this certainly makes the timing more attractive. Our ample inventory on hand gives us a runway to meet our product needs for the next several years. And our right-sized overhead positions us well to enjoy outsized benefits as revenues improve, but also with the flexibility to address changing economic climates. From a customer perspective, this transition will be seamless. Our owners and guests will continue to receive the uniquely satisfying vacation experiences they know and love. And the strong credit quality of our customers will allow us continued access to the ABS market. But most important, we believe the transaction will open more doors for us. As an independent public company, we now have the option to pursue new business opportunities that would not have been possible for us in the past, creating even greater future growth. We have an enduring and powerful culture, unique depth and management talent, the finest vacation experiences in the world, extremely loyal customers, well managed inventory to support our many diverse revenue sources, an effective capital structure, and significant revenues from our financing strategy. That all sums to this ours is a business that can deliver exceptional shareholder value well into the long-term. To discuss all of these matters further, we have a talented group of executives today who will address these topics. Well then open up the session to questions and answers. Its now my pleasure to introduce Lee Cunningham, Executive Vice President and Chief Operating Officer for our North American timeshare business and The Ritz-Carlton Destination Club. Lee is a 28-year Marriott veteran, and joined our timeshare organization in 1997. During his tenure in the vacation ownership industry, he has led our revenue management and customer service organization and was responsible for the successful points program launch last June. Lee?

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Lee Cunningham, Executive Vice President and Chief Operating Officer North America and Caribbean, Marriott Vacations Worldwide Corporation Thank you, Steve. Today, youll hear about our owners and guests who are truly dedicated fans. Why? They love the experience we deliver, how we do it, and how we regularly enhance it, literally creating customers for life. Customers buy timeshare for a host of highly individual reasons. Some owners have found this is the very best way to ensure they take an annual family vacation. Its their special time to kick back and reconnect. Others love the vacation flexibility we provide through our points program and our partnerships. They have thousands of possible vacation experiences, and ownership with us enables them to travel the world. They love our villas and resorts -- generous living space, typically about 3 times the size of a hotel room, beautiful accommodations and desirable amenities flat screen TVs, granite counter tops, stainless steel appliances, spas, golf, new and exciting pool designs, great ski resorts, some with ski in and out access to the slopes. Some value timeshare as an excellent second home alternative. And, some simply just feel like theyre coming home when they stay with us. Many of our owners have come to know our associates over the years. The experience for these owners often feels like family. Our associates have often watched owners children grow from toddlers to adults with children of their own. Its amazing to watch interactions like these. I know. Im an owner and our family will never miss our annual vacation to Kauai. We have our traditions, special moments and friendships weve made over the last 15 years. We wouldnt trade it for the world. And, I think youd all agree that great vacations are just plain fun! Our resorts are simply beautiful. We feature great product consistency from one resort to another, and well continue to offer high quality accommodations in the future in keeping with our strategy as well as Marriotts exacting brand standards. Dont be confused by the word consistency. Each resort has its own unique look and feel, but all share Marriotts commitment to product excellence in design, detail and amenities.

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Thats been our strategy from the very beginning - to develop resorts that expressly serve the needs of vacationers. At most locations, we offer 1-, 2- and 3-bedroom layouts, full kitchens with spacious, separate dining areas, in-villa washers and dryers and high speed internet access. Our resorts feature stylish architecture with great attention to themes, from beautiful ski lodges to our Tuscan-inspired resort at Newport Coast. Each villa is refurbished regularly typically every 5 years to ensure that its fresh and up to date. Let me highlight some of our resorts: One of our newest resorts, Oceana Palms, is located on Singer Island, Florida. The accommodations are modern and stylish, and showcase the beautiful Atlantic views. One of our most popular resorts, Maui Ocean Club, is known for its spacious accommodations, magnificent views and its perfect Kaanapali Beach setting. Kauai is a lush tropical paradise, and our Beach Club features magnificent architectural details, beautiful accommodations as well as great hiking and snorkeling. Our resort campuses are equally as stellar with amenities our owners and guests love swimming pools with specialty features, fitness centers, onsite convenience stores, kids activities programs, award-winning golf courses, spas, ski in/ski out slope access, and more. Located in Heavenly Village in Lake Tahoe, California, our Timber Lodge resort offers access to some of the highest elevations and longest runs in the region. We have activities throughout the day, often arranged by age groups, to ensure every member of the family has an unforgettable vacation. Marriotts Shadow Ridge resort in Palm Desert, California features a Nick Faldo golf school as well as a perfectly manicured 18-hole course, a great experience for beginners and expert golfers alike. In Mallorca, Spain, beautiful pools with traditional mosaics complement the Mediterranean and Moorish themes of the region. Youve heard that our culture is powerful and grounded in Marriotts longstanding commitment to our associates. Our Resort Operations Associate Engagement survey scores are among the highest of all companies that survey their employees. At 86 percent, we exceed the AonHewitt global best employer benchmark by a full 8 points.

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Satisfaction with the onsite experience we deliver is exceptionally high. It has continued to grow over the past 5 years, with 2011 at nearly 90 percent as a result of our focus on product innovation and highly personalized and responsive customer service. Our global owner services team assists owners with reservations, exchanges, trades for Marriott Rewards points and bookings for our Explorer Collection packages, which youll hear more about in a few moments. With the launch of the North American points program, weve begun to see a decided, positive difference in satisfaction levels between Weeks Owners and Points Owners. Presently, 95 percent of our Points Owners give our service professionals top satisfaction ratingsin our view, a noteworthy achievement. As you have heard, early on we had a vision for what the timeshare business could be. Since our entry into the business, weve regularly innovated product and service offerings, in keeping with the needs and expectations of our owners and guests. Our accommodations are designed expressly for vacationers. We serve the upper upscale and the luxury segments, with product experience and service design for each segment that best align with their respective expectations. In late 2008, we studied the changing needs among upper upscale vacationers in North America, and it became readily apparent they desired significantly greater vacation flexibility and variety, as well as new services that accommodate their busy lives. In June 2010, we introduced the Marriott Vacation Club Destinations ownership program, a unique points-based solution which replaced our prior weeks-based sales offering in North America. The North America points inventory is held in a Florida-based land trust, and each Points Owner receives beneficial Interests in the Trust, resulting in deeded ownership. The points program offers owners thousands of vacation experiences that they may customize to meet their unique requirements, year in and year out, from vacations within our Marriott Vacation Club system of resorts, to luxurious vacations at a Ritz-Carlton Destination Club resort. As youll hear in a moment, the points program has high appeal among customers, and weve met the strategic business intent for this initiative. Our points program also serves the business very well. Because consumers now purchase our portfolio rather than a single location, it means we can sell the points throughout our 18

North American sales distributionso our sales galleries continue to produce revenue despite the sold-out status of their local resorts. What was once a destination sell has become a system sell. Our sales executives now sell points which are usable throughout the entire North American resort portfolio. As Lani will discuss later, points are also more efficient in development planning and inventory management. The points program enables us to better match supply with demand, which generally enhances our capital efficiency. We have just about 365,000 North American owners of our product, who, combined, own about 550,000 weeks. Since the launch of the points program in June 2010, more than 83,000 Weeks Owners have enrolled 153,000 weeks in the program, providing high value inventory for use within the points program. Weeks are being added to the exchange program at previously sold out resorts, providing broader vacation opportunities for all owners. As I mentioned, to enroll weeks into the program, owners pay a one-time fee for the right to trade their weeks for points in future years. To date, weve collected nearly $46 million from these enrollment fees. We invite our vacationing Weeks Owners to take tours with us to catch up on the news, and to see our latest product enhancements, specifically our points program. Among Weeks Owners who tour, nearly 50 percent enroll in the new program, and of these, 34 percent purchase additional points, valued at just about $17,000 per repurchase transaction. When you combine the inventory in our Florida land trust with the inventory our weeks owners have contributed to our exchange program, participants have access to 53 of our Marriott Vacation Club resorts in the U.S. and Caribbean. Our Weeks Owners have the option to vacation at other Marriott Vacation Club resorts, trade their weeks for Marriott Rewards points or exchange their weeks for access to the Interval International system of more than 2,500 vacation ownership resorts around the world. As we just discussed, our Weeks Owners now have the option to enroll in the points program for a one-time fee. When doing so, they have the right to exchange their weeks for club points every year. Points Owners have many usage options, including the right to redeem points for any property, any length of stay, any season and any villa type that is available in the Trust and exchange program. 19

Among the new services that we provide, Points Owners may bank or borrow points, which better accommodates their need for more flexible vacation scheduling. Points Owners have access to the system of Marriott Vacation Club resorts in the Trust or through the Marriott Vacation Club Destinations Exchange Program, the ability to trade for Marriott Rewards points and also the option to access partner provided inventory at more than 2,500 Interval International affiliated resorts. And, Points Owners have access to many new and exciting global vacation opportunities, from cruises to safaris, from white water rafting to guided tours of China. With The Marriott Collection, owners have the opportunity to stay at more than 3,500 hotels and resorts in Marriotts lodging portfolio, including Marriott Hotels and Resorts, The RitzCarlton, Renaissance and Marriotts other brands by trading their vacation ownership for Marriott Rewards points. The Explorer Collection offers tours and travel packages enabling our owners to walk the Great Wall of China, tour Rome and the Amalfi Coast, experience safaris, enjoy relaxing cruises even take wine vacation experiences in California and Tuscany. Since launch the use of this exciting new option has continued to grow with more than five million points utilized in this fashion in August alone. The World Traveler Collection provides owners access to more than 2,500 resorts in 75 countries around the world. The new points program offers our owners great vacation flexibility within our system of Marriott Vacation Club resorts. Here are just a few examples of what an owner may enjoy for 2,500 points, ranging from 3 nights in Maui to 10 nights in Miami. To give you some context, today, you can purchase 2,500 points for about $25,500. The annual cost of ownership includes the daily operation of the resorts, reserves for refurbishment, real estate taxes and our management fee. Using our 2,500 point example, at about 40 cents per point, the annual cost of ownership would be about $1,000 per year. Our resorts and villas are located in the most desirable destinations, with spacious accommodations, fresh and up to date. Our resorts feature the finest amenities from world class golf to the best beaches in the world. Our associates are highly engaged, and deeply committed to delivering exceptional experiences that delight our owners and guests.

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We regularly innovate to serve the needs of our valued customers, and to drive shareholder value, too. With the debut of our North American points program, we determined to provide points program participants thousands of vacation experiences in the worlds most exciting and fascinating destinations. Their 95 percent satisfaction rating and the growing number of new points buyers tells us we that have met our goal. Its now my pleasure to introduce Brian Miller, Executive Vice President Sales, Marketing and Service Operations, who is going to discuss how we engage those customers. Brian joined our business in 1990. Hes been with us nearly from the start, and for the last 21 years he has been a prominent leader in our sales organization. Brian?

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Brian Miller, Executive Vice President Sales, Marketing and Service Operations, Marriott Vacations Worldwide Corporation Thanks, Lee. Good morning, everybody. The most important foundation you can have for a successful sales process is to have a great product. And as Lee described, we certainly have that. Just as in product design, in our Sales, Marketing and Service Operations, we are also customer focused in all that we do. It starts with our people, as Steve mentioned earlier in his remarks, and taking care of our associates is at the core of our culture. But we are also focused on constantly improving our results, using customer metrics to measure satisfaction with the purchase and the use of our product. Our goal is to maximize performance across all of our customer touch points. Our strong brands and sophisticated customer targeting are key to our sales and marketing effort. We measure our effectiveness to ensure the strongest possible performance at the lowest possible cost. As Lee said earlier, our people make the difference. Our talented sales force are the people who drive customer satisfaction in the sales process. And in the end, happy owners are our best sales people. We take a highly integrated Direct Marketing and Direct Sales approach to generating sales from both new and existing customers. In this model, every dollar we spend has an expected return. Our marketing is highly directed. We gauge response to our efforts, constantly adjusting our programs to maximize efficiency. On the Sales front, we only spend commissions and customer incentives when a sale is made, and we relentlessly measure our effectiveness. It is important that we sell our product the right way, and we closely monitor customer perceptions after customers tour with us. If we do things right, and we provide great service after the sale, then owners will make additional purchases in the future. We call these purchases Owner Reloads, which are highly profitable sales. Although this model is fairly prevalent in the industry, we will delve into what makes us an industry leader over the next few minutes. Our biggest competitive advantage in the marketplace is the strength and power of the Marriott and Ritz-Carlton brands. They provide a strong foundation of trust and represent consistent high quality to their respective customer segments, which makes those customers more receptive to our product. Marriott.com is the 8th largest e-commerce site in the world. It is not only responsible for generating over $150 million in annual rental revenue for our resorts, but it also generates traffic to our MarriottVacationClub.com and RitzCarltonClub.com marketing sites.

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As Lee mentioned, owners who trade for Marriott Rewards points have access to over 3,500 hotels worldwide. And, with 37 million members, the Marriott Rewards database also remains an important piece of our marketing platform. In the markets where we operate, we collaborate with local Marriott International hotels across all brands testing and implementing marketing programs that benefit both the hotels and our business. We also use various Marriott Rewards and hotel packages as incentives for our customers when they purchase our products. It is a great way to ensure that their experience with us stays within the brand that brought them to us in the first place. The power of these brands provides a great foundation for our Direct marketing model. As prospects are responding to a known and trusted entity, we see higher response and conversion rates from Marriott brand related channels. But we dont just rely on one channel. We use effective modeling to understand all of our customers very well. This allows us to create highly targeted direct response offers across all channels of our marketing mix. We then look to touch our customers several times, allowing us to serve the customer well when they are vacationing at one of our properties and to pre-dispose them to the sales process in our galleries. Through the various touch points, we can sometimes gather additional information on the motivations of our prospects. In other cases, we are simply providing services for their stay that will enhance their vacation experience and their perception of us. We work to deliver a prospect to a sales tour in the right frame of mind about our products and our company and with a personalized welcome into our sales gallery. Our Target Marketing begins with a baseline demographic profile of our potential customers. And although there are anecdotal examples of purchasers who fall outside of these basic parameters, these demographics have held true over a long period of time for our core vacation ownership product. Since our product is a high ticket, discretionary spend, it is sometimes likened to a second home, as Lee mentioned. It is only logical then that the buyers would be primary homeowners already and that they would be in the upper middle segment of the economic ladder. Additionally, since our products are typically two bedrooms or larger, married couples with children would have the biggest need for that extra space while on vacation. Many buyers economically justify their purchase over a period of time against expected vacation rental expenditures, so the younger the client, the more they value a 10 to 20 year economic justification for purchasing. But whether young or old, there are a large numbers of our owners who use our product to create a lasting legacy of vacations with their extended families with the intent of passing it on for other generations to enjoy. We enhance our customer targeting efforts in several ways beyond the basic demographic profile. Over the last decade or so, we have amassed a very robust database of U.S. households to understand their capability to purchase our product. We now have over 25 million individual households in that database and that information is refreshed several times per year for information updates, address changes, and other activities.

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We are also able to append our performance data against the database to allow us to constantly update our prospect and owner models so that current and future campaigns are using real time data for the selection of prospects. We have found 35 key attributes that reveal a propensity to respond to our offers and to ultimately purchase our product. Based on prospect scoring models, we can finely tune a campaign to either only address the highest scores, or we can expand the program to include other customer segments, as long as we think the sales volume will still be profitable for us. We also have found success matching prospects to likely sales center locations called geo-targeting, which we have found increases response and sales. Lastly, in cases where we have not had the opportunity to touch a customer or run them against our database for a profile prior to tour, we use the data that is available to us to provide focus to our efforts. These guests might be arriving at one of Marriotts hotels or checking into one of our resorts, but certain information about their stay such as room rate, their Marriott Rewards status and their length of stay can tell us a lot about how to target them relative to other customers in that channel. The net result of all of these marketing activities is a cost effective mix of tours and leads to our sales force. This slide shows our various marketing channels all the ways we identify marketing prospects. The first column shows the percentage of contract sales from each channel and the second column shows the marketing cost as a percentage of that channels contract sales. Our in-house channel is where we market to owners and guests staying in our vacation club resorts. Direct sales is primarily telephone marketing. As you can see, together, these make up close to 65 percent of our sales volume with variable marketing costs averaging less than 10 percent of contract value. During the recent recession, we eliminated or reduced less effective and more expensive channels. Other costs, however, increased which means we still have more opportunities to further improve efficiency. The cost of our central marketing preview program at nearly 28 percent is well above historic levels. With the introduction of our new points-based product, our sales force needed to spend a tremendous amount of time with our existing owners to get them comfortable with the new usage option. Consequently, we offered fewer marketing previews and those we did offer were less effective at driving sales. However, the trends have improved in the last quarter for these customers. The way we use these channels can also impact efficiency. For example, we drive central marketing preview tours to the shoulder seasons at our resorts, which will help us maintain a more steady year round tour flow for the sales force, which helps improve effectiveness and cost. In 2012, we expect to see the central marketing preview channel cost come back to its normal 20 percent range and total marketing cost to decline to 10 to 12 percent. Worldwide sales and marketing costs are around 50 percent, which John will talk about later. Our North American operation is running about a 47 percent cost of sale, year-to-date. 24

Weve made considerable progress improving the efficiency and effectiveness of our marketing. But marketing represents only about 12 points, as Ive shown here, of our total sales and marketing spend, and commission based expenses represent roughly 10 points of overall cost. We are committed to do more. We are actively exploring opportunities to reduce overhead and variable sales costs and expect to show solid progress in 2012. De-emphasizing our Luxury and European product lines is another step towards lowering costs. So, with a more efficient marketing mix, reduction of fixed overhead and continued increase in sales efficiencies, we expect to drive worldwide sales and marketing costs into the low to mid 40s. Once the prospect is in the sales gallery our Sales Professionals take over. We operate a highly disciplined direct sales force that uses a personalized, consultative sales approach that is consistent across all of our sales channels. And with the launch of our new pointsbased product, our ability to customize our product for our customers is greatly enhanced. We primarily distribute our product in sales galleries located at or near one of our resort locations. These are the most effective locations for us as the customers are experiencing the resort and this gives them the best perspective to consider a purchase with us. We also have a central telesales group that works leads primarily from our websites. We will conduct seminars and road shows in key source markets during slower seasons at the resort sites. Our Latin American sales force, conducts home and office presentations to potential customers in those markets. But no matter where the sales occur, we measure all aspects of the interaction to ensure that we are both driving performance and ensuring that the customer has a positive experience with us. As with any high performance organization, it starts with great talent. We work with our human resource partners at AonHewitt to source highly qualified, licensed real estate professionals. We have Virtual Job Tryout. It is a web-based selection tool that helps us better understand their potential talent. It results in a hiring rate of about one sales executive for every 11 applicants. All of our sales executives learn the same multi-step sales presentation, which we call Salesmanship. This allows for streamlined delivery of training materials, electronic support and onsite coaching and leadership. Our training program is updated every six months based on product development, performance and customer feedback. Great sales tools are important, too. Our Sales galleries are designed to support the salesmanship sales process. We utilize digital displays in our galleries to encourage customer interaction and our desktop sales technology allows our Sales professionals to tailor our new points-based product to the specific needs of the owner or prospect. We provide our sales executives with a profile of the customer they will see so that they can begin to think about customizing the presentation even before they meet the guests. Our targeting work and our screening techniques for qualifications mean that almost all of our

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prospective purchasers will qualify for our consumer financing program. And our purchase incentives can also be customized to the near term travel desires of the customer. Customer satisfaction with our Sales and Marketing process is very important to us. We deliver an extensive 35 question survey to all guests who tour our galleries, and we hold all levels of our sales organization to a high standard. Our performance has been very consistent over the years. Nine out of ten people who tour with us rate us an 8, 9 or 10 on a scale of 1 to 10 based on their sales experience with us. These charts show our average sales contract value on the left, so the average amount that people purchase from us, and Volume per Guest on the right for our North America segment. So if you look, our average contract price was around $27,000 in the second quarter of 2010, right before we switched to our points-based product. Then the average contract ran about $17,000 in the third quarter of 2010 as customers were now able to purchase increments that were less than one week. In the third quarter this year, you can see the average purchase has moved up to $24,000 as the sales force has become more comfortable with the new product and our incentive programs are better aligned with a higher level purchase. Our Volume per Guest, or VPG, has also improved as we increased the average purchase. This metric is simply the total sales volume divided by the total number of tours taken to generate that volume. It can be likened somewhat to RevPAR in the lodging business as it is kind of a net output of several other metrics. While we see a small dip in Q3 due to typical seasonality at the slower period of the year, the trends are extremely favorable. During the downturn, we focused more heavily than in the past on our in-house program and on our owner base for sales. Since 2008, owner reloads as a percentage of overall sales have increased from one third of our sales to over half of our sales volume. The good news here is that those are our most cost effective sales, so we have been able to maintain a consistent marketing cost percentage. Over the last six years, this is the percentage of our owner base that purchases additional time, either weeks or points, with us every year. This percentage typically has been between 4 and 5 percent. So, it isnt that reloads are up so much as it is that new customer sales have been relatively slower, in part due to the transition to points and the initial focus on existing customers. But the owner base penetration has remained consistent. You may ask what will be our strategies for securing new cost effective customers into our program? Well, Lee and Steve both talked about referrals, and in 2012 we expect to launch a new referral program with enhanced incentives to our owners and new desktop lead management and communication tools for our sales force. We expect this will enable us to grow referrals over the next few years. The owner referral program is currently our number one source of first time buyers in fact, year to date, one in three new buyers are referrals of our owners. 26

Secondly, our new points product has opened up new marketing channels for our sites. Formerly, customers living in Orlando wouldnt have purchased a timeshare in Orlando. Now, we sell a broad system product that has no ties to a specific resort. So we have sales sites in Southern Florida, Boston, and Orange County, California, just to name a few locations that now have large target markets within one to two hours of their location. We expect such marketing programs will bring those local customers to those sites, and we will also conduct road shows and seminars with our sales force during slower times at the resorts. Lastly, we are having great success in select international markets, and are looking to expand those efforts. The Latin American markets have proven to be very strong over the last few years and we have a good foothold in Dubai to grow our Middle Eastern sales over the next few years as well. And as Steve mentioned, we are encouraged by our trends in our Asia Pacific markets. We also already have strong customer service operations in place for all of these markets, so investment outside of sales expansion is minimal. In closing, we have a highly engaged and talented workforce that is highly motivated to maximize customer experiences in order to drive sales. We measure our sales and marketing metrics across a wide array of customer touch points. We know who our target customers are, we know how to find them cost effectively, and we know how to engage them in a process that distributes our products in a cost effective manner and all the while pays close attention to making sure that the customer has positive interactions with us along the way. We have a very dynamic and very fluid model that allows for constant adjustment and constant improvement. So, thank you for your time so far this morning. We will now take a 15 minutes break. All of the MVW executives will be wandering around if you have any questions about what you have heard so far this morning. We look forward to talking with you and well plan to get back here in about 15 minutes. [break]

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Jeff Hansen, Vice President Investor Relations, MVWC Thank you, and welcome back to the second half of our presentation. Id like to now welcome Lani Kane-Hanan, Executive Vice President and Chief Growth and Inventory Officer for Marriott Vacations Worldwide. Lani is an 11-year veteran of Marriott and a 25-year veteran of the hospitality industry. She currently oversees the resort planning and development and product innovation department - critical components of our points platform and our future success. Welcome, Lani. Lani Kane-Hanan, Executive Vice President and Chief Growth and Inventory Officer, MVWC Thank you, Jeff. Good morning, everyone. I am going to speak today about how we carefully manage our development process to align with sales and how we manage the use of our inventory to drive customer satisfaction, enable sales, and enhance profitability and growth. Im also going to talk about future growth opportunities. While there are a lot of moving pieces, our philosophy is quite simple - we drive the highest possible overall value with the highest possible growth. One of the critical components of managing our business is matching demand for inventory with the availability of inventory whether its sales demand, owner usage or rentals we manage our inventory in such a way that enables us to optimize revenue and capital efficiency. First, let me clarify that we define inventory as both inventory under construction and completed inventory. The first component is product in the development process that will ultimately yield a completed villa. We carefully manage new resort development, whether through ground up construction, joint ventures, or acquisitions, to ensure inventory is available for sale at the right time. One of the benefits of the points product is the flexibility it now gives us to better align inventory investment with sales pace. Inventory is also comprised of finished villas that may already be sold or not. We continue to manage inventory closely, even after its built and sold. We set aside inventory for tours and stays by prospective customers, and ensure the maximum usage of completed inventory by our owners our greatest source of sales leads. Whats not used by our owners, we rent. And, just like a hotel company, we use revenue and yield management results to enhance our rental profits. The first process we consider is inventory sequencing and management namely having the right amount and the right type of inventory available at the right time. In North America, we have several resorts under development and it makes sense for us to first complete these resorts. 28

We may also find cost effective inventory elsewhere. For example, we can buy back inventory from our existing owners. From time to time, we may see desirable distressed inventory obtainable from independent developers and lenders. Or, over time, we may add projects where it makes sense. Future inventory may be added through ground-up development or asset-light strategies such as purchasing constructed inventory just before we need it for sale, fee-for-service arrangements, or securing inventory on a turnkey basis. We expect to approach our future inventory needs with a focus on return on invested capital. Given our existing inventory levels, we do not intend to develop new destinations in the near term, but rather complete new phases at existing resorts. So, lets look at North America. At year end 2011, we expect to have about $320 million of finished goods in our North America vacation ownership business. This represents just under $850 million of future contract sales revenue, or roughly about 18 months of product at our current sales pace. We also expect to have about $230 million of inventory under development. Adding another $125 million to complete it, we can generate another $930 million of future revenues with only $125 million incremental cash outlay. Combined with the finished goods, we will have roughly three years of inventory at todays sales pace with very modest capital investment. Finally, we will have invested roughly $275 million in land and infrastructure for future phases at our existing resorts by year-end. Building out these phases would require another $1.3 billion to complete, but should yield over $4.2 billion of contract sales, and many years of future development. This does not necessarily mean that we intend to spend the $1.3 billion, but only that we have the land and the infrastructure platform if and when it makes economic sense to do so. The completion of all this development would yield potential contract sales of roughly $6 billion. Now, lets look internationally. With tremendous economic growth and an emerging middle class, we believe Asia Pacific is an attractive and growing vacation ownership market. We have been in the market since 2002, and today we have five sales offices and three resorts in the region. We expect to complete our existing ground-up projects, reacquire inventory where possible and enter into partnerships or turnkey relationships to fuel growth. When you consider the favorable development and operating costs in Asia Pacific, together with the growing number of Marriott hotels with co-location opportunities, we believe there is significant potential for us in this region. Our approach in Europe is to sell-out our remaining inventory by 2015. As Steve mentioned, we dont plan on adding inventory in Europe, but we will continue to recycle pre-owned 29

inventory and to provide ongoing management, rentals and customer services. We have a diverse set of resorts in Europe, and these resorts are valued destinations among our owners and our guests. For our Luxury segment, we expect to sell the remaining inventory through our existing sales channels, bulk-sale excess units over the next three years, and sell excess land over the next 18 to 24 months. In certain cases, we are also adding Luxury product to our Marriott Vacation Club Destinations points program. Not only does this help reduce inventory balances, but it also provides Marriott owners incentive to purchase additional points to access Ritz-Carlton experiences. We have no need to invest additional capital in the Luxury segment. In the future, we see growth opportunities through new affiliations and any development will be focused towards more asset-light structures. To maximize ROIC, we try to match our inventory spending to our sales levels. The blue bar represents our investment while the red bar represents the inventory coming off the books as sales are completed. As you can see from this slide, while our inventory spending was quite high in 2008, we were able to respond to weaker market conditions and pull back investment while still completing our projects under construction. For 2010 and 2011, our investment balances continued to decline and we expect further declines in 2012. While we can adjust our spending levels to address changes in demand, we also have other tools to balance inventory levels. We have the option to provide sales incentives to enhance sales pace as needed. These incentives include the use of Marriott Rewards points, awards of our own points, price incentives, and promotional financing. The price and Marriott Rewards incentives that we offered in 2009 and early 2010 were very successful. In 2011, we are offering incentives to existing owners who purchase additional points with us. Any promotion should be designed to enhance the overall value proposition and not just benefit development sales. We carefully follow demand trends and dial-up or dial-back incentives as we attempt to maximize the overall yield of each sale. Once the product is complete, we turn our attention to the processes that will optimize its use. At year-end 2010, we had about 10,800 villas flying the Marriott or Ritz-Carlton flag in North America. Of these, about 95 percent of these villas were sold. As part of the points program, it is important that we accurately price the points value of each of our units in each of our resorts to insure the highest possible owner occupancy. We establish point values when completed inventory enters the program, and constantly monitor trends to assess the need to re-balance point levels. Our goal is to assign pointbased prices to spread occupancy across the system. As Lee showed, our guest satisfaction 30

scores are very high, in part, due to the care and attention we provide in ensuring the best possible vacation experience for our existing owners. Our 10,800 villas yielded 5.5 million available keys in 2010. Most of our units are used for 51 weeks annually and many include features that allow a 2-bedroom unit to be locked-off and rented or used as two separate keys. Our first priority is always to get our owners on vacation. As a result, three-quarters of our occupancy in 2010 was generated from owners who use their time, 14 percent was rented to transient guests, 2 percent was used for marketing preview packages and only 7 percent remained unused. At any given point, about 2 percent of our inventory is undergoing renovation. The unused portion at only 7 percent is pretty remarkable given the seasonality at many of our resorts, and the breakage that we expect using points on a nightly basis. Our occupancy rates tell us how were managing the available inventoryand you can see very high occupancies, consistently over 90 percent even in difficult recessionary years. Satisfied owners generate high occupancy levels and drive repeat business, owner referrals and ancillary revenues, such as club fees or revenues from retail or food and beverage outlets. We use traditional revenue and yield management practices to rent available inventory with the majority of our rentals being booked through the very cost effective channel, Marriott.com. Rental customers who experience our product are also very strong and low cost prospects for our sales organization. As we look ahead, we see considerable opportunity for growth, whether through growth in recurring income streams, contract sales, or new brandswe have the ability to grow while using our capital efficiently. Our goal is to derive the greatest value possible, leveraging all of these processes and evaluating the highest and best use of all of the different streams of available cash flow. Looking forward, there are several ways we expect to add inventory while managing our capital efficiently. First, we expect to continue to offer new experiences to our owners. These experiences are not necessarily real estate focused or capital intensive. As Lee said, our owners are enjoying safaris and cruises today that dont involve any assets on our balance sheet. We will continue to add more unique experiences for our owners outside of our system. In addition, we designed our points product form to allow for the efficient development of new inventory and the efficient recycling of pre-owned inventory. When an owners lifestyle changes and they need to exit our program, we have a right of first refusal on weeks and points that they may wish to sell. This inventory can be sold just like any other but may be at a lower overall cost than new construction.

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Our current product form also gives us the opportunity to include and absorb inventory across all brands and segments within the points portfolio. This enhances not only capital efficiency, but also sales and inventory management. As I mentioned earlier, we can complete future phases of our resorts and develop new resorts, either on-balance sheet or via capital efficient structures, such as turnkey developments with third party owners or purchases of inventory just prior to when they are needed for sale. We also have opportunities to grow our recurring income streams. For example, we can enter into fee-for-service arrangements, management contracts and/or other affiliations with developers or timeshare operators. We do an excellent job at running our resorts for our owners and we could do so for other project as well, within or outside the Marriott brand. With the introduction of our points product, we also expect revenue from exchange activities to increase. We believe there is an opportunity to develop this business further to increase fee-based revenues. As we will continue to look for ways to enhance our share of customers vacation spend as well, these are important recurring income streams. As Brian mentioned, we continue to improve our sales processes and expect to open additional sales distribution locations to drive incremental contract sales and generate new customers. We can also selectively pursue compelling strategic alliances and ventures, which could range from management or sales partnerships with other timeshare companies, to marketing alliances or promotional programs with travel partners. Finally, while our Marriott and Ritz-Carlton brands will continue to create opportunities for us, we can also look outside the Marriott family of brands. While the Marriott brand is extremely valuable, we also recognize the opportunities in broadening our horizons. We have the infrastructure, the systems and the expertise to grow over time. We believe our flexible product structure, coupled with our balanced approach to inventory planning and revenue management is a competitive advantage that should, over time, deliver earnings growth and higher return on invested capital. Now it is my pleasure to introduce Joe Bramuchi, Vice President of Capital Markets and a 10year veteran of Marriott Vacations Worldwide to discuss our financing business and our capital structure. Welcome, Joe.

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Joe Bramuchi, Vice President, Capital Markets, Treasury and Financial Risk Management, MVWC Thank you, Lani, and thanks to all of you as well for being here today. Im going to talk a bit about our financing business, our capitalization and our sources of liquidity that will be available to us as a new company. As a new company, we will be well capitalized with ample liquidity from several sources to grow our business. First, with leading brands and high owner satisfaction, we expect the business to generate meaningful cash flow. Secondly, we have negotiated a loan warehouse facility, which will allow us to periodically package consumer loan receivables for sale into the warehouse, providing us with additional cash. We have also arranged a secured corporate revolving credit facility, which will be available for general corporate purposes, working capital needs, letters of credit and so forth. Beyond this, at launch, we should have roughly $700 million of nonrecourse debt, backed by sold loans in the asset backed securities market and also a $40 million issuance of preferred stock. We have monetized consumer loan receivables for over 20 years and we expect to continue to securitize in the ABS markets, as we have successfully done for over 10 years. We see our securitizations as best-in-class as evidenced by the terms of our transactions. This market allows us to place paper with longer term institutional investors such as insurance companies and pension funds that regularly seek the quality of our consumer financing products that match up well with the durations of their obligations. This morning, Ill talk more about our profitable consumer financing business, including our note sale program, as this is an integral part of our business and represents a meaningful source of income. So, how does it work? How does consumer financing fit into our business? We offer financing as a convenience to our customers so that they can purchase and finance in one transaction. Typically, between 40 and 50 percent of our buyers will take our financing at the point of sale. Periodically we expect to compile a pool of those loans and sell them to the warehouse facility, receiving an average advance rate of approximately 80 percent. So you sell $100 million of loans, you get an initial advance of $80 million. Then once a year we intend to package those loans for issuance into the Term ABS market. At that time, the term issuance would repay the warehouse facility releasing capacity for us to originate more loans that we can then fund under the warehouse. Based on our prior experience, we expect we will also receive a higher advance rate through the ABS market than the 80 percent on the warehouse and thereby generate still more incremental cash. Even after the notes are sold, consistent with our past approach, we expect to continue to service the loans.

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The ABS loans are non-recourse to us and are sold to a bankruptcy remote entity, fully transferring the risk to a third party. Our right to receive the excess spread is subordinated to the payment of debt service on the bonds. And so this is structured as a residual equity component in these deals and Ill talk a little bit more about this shortly. So, lets review some consumer financing metrics to provide more clarity. As I indicated earlier, almost half of our purchasers take our financing when they sign a contract. These loans are typically 10-year, fixed rate, fully amortizing loans. The average loan coupon is between 12.5 percent and 13.5 percent. One of the primary selling points for our customers is the convenience of the process, and they have the ability to prepay these loans at any time without penalty, and the reasonable average monthly payment is typically between $300 and $350. The average credit or FICO score of a U.S. customer, on an origination basis, is 737. And the loans are fairly vanilla with set monthly payments and fully amortizing balances, which provides for stable and predictable cash flow streams. When a purchaser decides to finance with us, they are required to put down a minimum down payment based on their FICO score. A 10 percent down payment is the minimum. And if you do not have a FICO score, as may be typical of an international buyer, we will require a higher down payment and typically a higher coupon rate on the loan. Based on all of these factors, we realize an attractive risk-adjusted rate of return on our loan portfolio. The strength of the portfolio from a customer credit perspective and the relatively high coupon also allows for favorable execution in the Term ABS market. So lets talk a little bit about our servicing portfolio. Our historical financing propensity is shown on the chart on the left. From 2004 to 2008, we encouraged financing by offering incentives at the point of sale, such as offering additional Marriott Rewards points. At this time the ABS market was robust, allowing us to securitize notes at 100 percent advance rates. And in addition, the coupon -- the cost of funds from an investor perspective was between 4 and 6 percent. However, as the ABS market deteriorated in late 2008, we did discontinue these financing incentives and saw our financing propensity decline to between 40 and 50 percent. Looking ahead, we expect financing propensity to remain at these levels for the foreseeable future. The chart on the right shows notes receivable balances, net of reserves. The blue bars represent notes on our balance sheet that have not been sold. These include notes that may not be securitized -- they may not have enough payment history or seasoning, or they may be related to our foreign businesses where we have not yet monetized paper. The orange bars and the gold striped bars represent securitized notes. Securitized notes were not on our balance sheet in 2008 and 2009, but went on-balance sheet with the adoption of the 2010 Consolidation Standard under GAAP. These notes are still non-recourse to us even though they are on our balance sheet today. 34

As you can see, the total note receivable balances have been declining over time as our sales pace has moderated and as propensity has declined. Balances are also declining due to amortization of the loans. We expect this note receivable balance to level off in the 2014 to 2015 timeframe and increase thereafter, matching more the pace of our sales. So lets take a look at some transactions over the past few years. We have monetized paper for over 20 years and we have been in the Term ABS market for over 10 years. We conducted our first tem issuance in 2000. From 2000 to 2007, we issued 12 transactions, all with 100 percent advance rates and cost of funds between 4 and 6 percent. Those terms reflected favorable ABS market conditions, but also the consistency and the high-quality originations of our paper. Beginning in 2008, while we were able to complete securitizations, the structure of the deals did become less favorable. So if you look at the 2008-1 transaction, the cost of funds reached over 7 percent, and again, amid increasing macro economic concerns. We issued a single tranche in 2008 that was rated AAA and so the advance rate in this deal was 82 percent. In early 2009, we executed a conduit/bank sale transaction to demonstrate liquidity. And as you can see here, the cost of funds increased to 10 percent reflecting the credit environment at the time and youll notice the advance rate was 72 percent. However, market conditions improved as the year went on and we subsequently unwound the 2009-1 deal and repackaged those loans into the term market later in the year at considerably more favorable terms, as you can see in the 2009-2 transaction, that had an advance rate of 83.5 percent and an investor cost of funds of less than 5 percent, and less than half of that which occurred in the 2009-1 deal. So, despite the difficult conditions in the securitization market in these years, particularly for residential real estate, our investors did not experience any losses from our high quality paper. With our strong track record, in 2010, we saw improvement in execution reflecting solid demand from investors seeking yield relative to a limited supply of issuance. And youll note the higher advance rate in our 2010 deal of 95 percent and then a cost of funds of 3.6 percent. Now given the timing of the company spin-off, we have already accessed the warehouse facility in the fourth quarter of this year and we expect next to access the securitization market in 2012. While the ABS market has changed considerably over the past 3 years, we have nevertheless been able to execute attractive value-creating deals. Our relationships with our banks and investors are strong. Lets take a look at timeshare as an asset class in the ABS market. Timeshare has performed very well relative to other asset classes. On this chart youll notice timeshare 60-day 35

delinquency performance, as proxy through the ABS market, is shown on the blue line. Timeshare paper has exhibited similar delinquency patterns to credit card and auto paper for some time and much stronger performance than home equity paper. Timeshare owners are typically well established in their careers and family years and have higher than average earnings. So, the credit behind the loans stacks up favorably when compared to asset classes where the obligor base is perhaps more represented by the general public. Now this is industry data. And while every timeshare company takes a slightly different approach to measuring loan performance, our high credit scores and favorable securitization terms lead us to believe that the performance of our paper leads the industry. So the combination of strong cash flow, high customer credit quality, attractive interest rates and favorable ABS terms drives value over time and enables our financing business to accelerate cash flows. But we also have other sources of liquidity. We have strong business cash flow and we have liquidity enhanced by our $300 million warehouse line of credit and a $200 million secured corporate revolving facility. At launch, the $200 million revolving facility will have not been drawn upon and is available for future need. There is a broad representation of prominent and key bank relationships participating in these facilities. We expect to access the ABS market regularly going forward, providing strong return and transparency to investors, agencies and bankers as we have done for over 20 years. S&P has rated Marriott Vacations Worldwide BB-, which puts us in the same BB category as other prominent lodging companies such as Host and Starwood, which are both BB+. We believe this capital structure will support our future growth while also helping to insulate us should the economic environment become challenging. Financing is an important part of Marriott Vacations Worldwides business model. It not only facilitates the sale of timeshare product, but is a value creator in its own right. To tell you more about other aspects of our value creation, I would like to introduce John Geller, Executive Vice President and Chief Financial Officer for Marriott Vacations Worldwide. John has been our chief financial officer since 2009 and he has worked for Marriott since 2005. He is going to walk you through the income statement and provide additional insight into our overall financial performance. Please welcome, John Geller.

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John Geller, Executive Vice President and Chief Financial Officer, MVWC Thanks, Joe, and thank you for joining us here today to hear our story. My goal today is to describe how our competitive advantages and business strategies, over time, will translate into greater shareholder value. Im also going to walk you through the P&L one line item at a time to help those of you who are trying to create a model for our business. And finally, well talk a bit about 2012. But, based on some of the questions I got during the break, I think some of you have already peeked ahead. Fundamentally, our value is derived from our diverse sources of revenue, including meaningful recurring cash flows. We also should continue to benefit from an improving expense structure as we are not done right-sizing the business. Our near term capital investment requirements are modest, in part due to our more capital-efficient North America points product, as well as the substantial inventory already on the books. Cash flow should be enhanced by the disposal of our excess land and Luxury inventory. Our business is made up of three distinct cash flow streams that can be valued separately. Our management fees are very steady and reliable. In fact, they are steadier than Marriott Internationals base management fees as they are largely based on the costs to run our resorts, rather than revenue. In addition, our management fees, over time, should grow as we add new owners. Cash flow from the sale of vacation ownership products, and to a lesser extent rentals and financing, are more dependent on economic cycles and our business strategies. Ill talk more about those pieces and G&A, in a bit. First, lets talk about contract sales. Contract sales is a key metric for us as it is a more accurate reflection of current demand trends than reported revenues, which can be impacted by various revenue recognition adjustments. In general, to be reported as a contract sale, we require at least a 10 percent down payment from the customer. We started selling our points product in North America in June 2010. Prior to that date, we sold a weeks-based product. To help you understand business trends in recent years, we have adjusted the weeks activity in 2008 through the first half of 2010 to reflect a pointsbased equivalent. As you can see, North American points volume dropped roughly 30 percent in 2009, impacted by both the falloff in demand due to the economy, as well as our decision to reduce our usage of the more expensive marketing channels and close less effective sales offices. Our focus then, as now, is on driving profitability and cash flow, not just revenue. In 2010, volume declined roughly 8 percent. This was related to the still weak economy, the full year impact of the closed sales offices, as well as the startup impact of the new points 37

program. As Brian mentioned, we have spent a lot of time with our owners in the past 18 months getting them familiar with the new product and, therefore, relatively less time with new prospects. While sales to existing owners were strong in 2010, those owners typically increased their ownership by purchasing smaller amounts of product than new buyers. Pricing, though, has been resilient. Equivalent point prices declined roughly 10 percent in 2009 as we addressed weaker demand with special promotional offers. Prices rose 4 percent in 2010 and, we believe 2011 prices will likely exceed our 2008 peak levels. Combined with recent volume trends, this should yield somewhat flat North American contract sales in 2011. In our Luxury segment, the weak economy and the burst real estate bubble reduced contract sales from 2008 to 2010. We expect to monetize our excess Luxury inventory over the next two to three years. We still believe that there are growth opportunities for the Ritz-Carlton brand, but we will focus future efforts to grow more through affiliations rather than our historical strategy of primarily ground up development. In Europe, we continue to sell a weeks-based product. Europe felt the impact of the 2009 recession, but bounced back in 2010 with stronger demand. With a difficult regulatory environment, we are not looking for new resort development opportunities in Europe. While we will continue to operate our European resorts, going forward, we expect contract sales to slowly decline as we wind down our sales efforts over the next two to three years. Today, we have little inventory on the books. In the Asia Pacific region, we have three resorts in Thailand. The difficult economy and the political unrest in Thailand reduced contract sales in 2009. Contract sales in Asia Pacific improved modestly in 2010, and we expect contract sales to continue to improve as we expand with future projects in the region. All in all, we expect total 2011 contract sales to be somewhat flat year-over-year, but with stronger results in the second half. Timeshare industry accounting takes a bit of explanation. To derive reported revenues, we make a few adjustments to reported contract sales. First, while we include sales of joint venture projects in contract sales, our share of those results are reflected on the equity in earnings line rather than in reported revenue, so those sales are excluded. Second, we should add back the contract cancellation allowance. With the bursting of the real estate bubble in 2009, quite a few Luxury customers cancelled their contracts before those projects were completed. This is not a significant issue for our more typical vacation ownership sale, and we dont anticipate similar allowances in the future. Next we have some adjustments for revenue recognition, or what we like to call reportability. Reportability requires a bit of explanation, so bear with me. Prior to the introduction of our points program in 2010, we sold a weeks-based product in North America 38

that, in many cases, was still under construction. While we might close a sale in one period, we were required to recognize our sales for financial reporting purposes as the buildings were constructed. So frequently there was a meaningful delay between when we booked the contract sale and when the revenue was recognized. Today, we are only selling completed inventory through our points programs, so revenue recognition is more aligned with our reported contract sales. Going forward, we may still have delays in revenue recognition due to minimum down payment requirements and rescission rights. Accounting rules require a minimum 10 percent down payment before revenue can be recognized. And, as Joe said, while our customers that finance their sale with us put at least 10 percent of the contract price down, the down payment requirement for GAAP requires, for sale accounting purposes, that you also include the promotional sales incentive provided to the customer. As a result of these requirements, for sales where we provide financing, it sometimes takes roughly two to three months of collecting principal and interest payments before we recognize revenue from that sale. With regard to rescissions, depending on the jurisdiction, customers have the right to back out of a contract if they choose to within a particular period; typically thats 7 to 10 days. So we dont recognize revenues on those contracts until this waiting period has passed. However, keep in mind it is only a matter of timing. We expect that, going forward, any reportability will be more on a quarter-to-quarter basis and not year-over-year. Next, we establish a sales reserve to account for potential loan losses. The amount of this reserve has fluctuated over the years, in part due to the change in the accounting guidelines, the level of contract sales, as well as the increase in default and delinquency activity. In 2011, we expect to reserve about 11 percent of contract sales that actually get financed, which is the equivalent of roughly 5 percent of all our contract sales. After these adjustments, we arrive at our reported revenue for the sale of vacation ownership products. We expect to be able to translate somewhat flat contract sales to an increase in reported revenue in 2011, primarily due to stronger sales at our owned resorts and a lower sales reserve. Lets move on to product costs. One of the significant costs of doing business is the cost to build or acquire our vacation ownership products, or what we typically call product costs. This chart shows our product cost as a percentage of reported revenues. Product costs include both land cost and the cost of construction. These costs are allocated to a particular vacation ownership product, once the product is sold, as a percentage of the sales price. In addition to construction costs, our product costs percentage is also impacted by pricing. In 2009, while the cost of a typical unit of inventory changed little, the promotional discounts we offered reduced our total revenues and, thereby, increased our product cost percentage. 39

Looking ahead, we expect our product cost to improve. As I noted earlier, contract sales prices are moving up and construction costs have moderated. In addition, reducing our mix of Luxury product should help as well. Longer term, we are targeting a worldwide product cost percentage of 38 percent or less. While product cost is recognized as sales are completed, most marketing and sales costs are recognized as they are incurred. As Brian mentioned, we lowered our marketing and sales costs in the downturn and, as revenues improve, we expect meaningful operating leverage. Our Luxury products carry much higher marketing and sales costs given the greater complexity of the sale and the continued weakness in the second home market. So, a reduction of this inventory should also help our marketing and sales costs. We think there are additional cost savings opportunities and, longer term, we believe we can drive worldwide marketing and sales costs to a range of 42 to 46 percent of contract sales. Netting the product costs and the marketing and sales costs against our revenue, our development margins show meaningful improvement since 2009. Largely due to marketing and sales cost savings, overall development margins have improved from 2 percent in 2009 to between 9 and 13 percent expected in 2011. We have also benefited from deemphasizing our Luxury business. Long term, our goal is for development margins of 20 percent. The next chart illustrates the high margin revenue streams from our financing business. Since Joe walked you through the business, Im not going to spend a lot of time here. But for modeling purposes, given our note receivable balances and interest rates between 12.5 and 13.5 percent, one can estimate financing revenue, shown on the left. The red bars show the financing revenue, net of expenses. The expenses are the direct costs to support the bank effort and do not include the interest costs associated with securitized notes. Assuming a 40 to 50 percent financing propensity over the next few years, we would expect financing revenue would continue to decline, stabilizing sometime around 2014, and then showing improvement with continued sales growth. Lets talk about rentals now. The bars on the left show rental revenue. The blue bars are worldwide and the red bars are North America. The bars on the right show rental revenue, net of expenses, with again, worldwide in blue and North America in red. As Lani mentioned earlier, our first priority is to get our owners on vacation. But even after thats accomplished, we typically still have roughly a quarter of our North America room nights available for rentals and marketing previews. These roomnights may come from unsold inventory on our books, or from owners who exchange for either Marriott Rewards points, or who choose other exchange options under our points-based program. 40

To the extent that we can accurately match our development to our sales pace, the amount of inventory available for rent should be quite consistent from year to year, although the type of inventory in terms of location and season will differ from year to year. 2009 was unusual. With the recession we saw a larger than typical number of owners who chose to redeem their weeks for Marriott Rewards points. When owners redeem for Rewards points, we offset the cost of the points by renting our inventory. In 2009, North America rented roomnights increased 18 percent year-over-year. But with the weak economy, our transient room rates declined 17 percent. The upshot of this was a modest rental loss in North America in 2009. In 2010, strong transient room rates pushed North America revenues and profits higher. And 2011 rentals have remained strong. In 2009, we also began to see the build up of our completed Ritz-Carlton inventory. As the owner of this inventory, we are required to pay our fair share of maintenance fees. But frequently, condominium association rules or other local restrictions prohibit us from renting the inventory to offset these expenses. As you can see at the bottom of the slide, total maintenance fees from unsold inventory totaled $68 million in 2010 and roughly $60 million in 2011. One quarter of these fees are associated with Luxury inventory which is, for the most part, not offset by rental revenue. As a result of the unsold maintenance fees, total worldwide rental revenue, net of expenses, is expected to continue to lose money in 2011. It is our intention to sell out our excess Luxury inventory at an accelerated pace. We believe the elimination of the excess Luxury inventory, and associated maintenance fees, could improve profits by $10 to $12 million annually over the next two to three years. We earn management fee revenue from condominium owner associations for the operation of our resorts. On the P&L, this fee revenue is included in the resort management and other services line. While the calculation of the management fee revenue can vary slightly from site to site, it is typically about 10 percent of the maintenance fee paid by the owner. So, from Lees example of a 2,500 point purchase, the $1,000 maintenance fee would yield us about $100 of management fee income annually. Our management contracts with each COA provide stable and growing cash flow over the life of the agreement. In 2011, we expect to earn approximately $63 million in management fee income. Our management fees increase with the number of sold vacation ownership interests, as well as with inflation. Unlike the Lodging business, these fees are not tied to fluctuating lodging demand. Rather, they are recurring in nature and paid by the owners at the beginning of each year. They have increased every year since we began sales in 1984 with mid-teens growth over the last 10 years. Due to the recurring nature of these revenues and its insulation from economic cycles, this is a very high value part of our business. 41

In addition to management fees, we also receive resort management and other services revenue. Revenues include exchange company revenues, ancillary revenues such as food and beverage operations, and other miscellaneous revenues. We have also included our joint venture fee revenues here. The green bar shows our revenues, net of direct costs, reflecting a pretty consistent loss over the past few years. Expenses include the operating costs to service our owners and guests, such as the staff and systems required to execute exchanges and reservations. In addition, losses in recent years also reflect the startup and amortization of the significant technology investment to launch our points program. Points startup costs and amortization in 2010 alone was $12 million. We expect most of these costs will burn off in the next two to three years. The points program has also introduced new revenue opportunities. Exchange company revenues totaled $7 million in 2010 and are expected to total roughly $15 to $16 million in 2011. We charge a modest fee for club dues, which provides our owners access to the broad variety of experiences that Lee discussed. We believe the exchange business offers a tremendous opportunity that could turn these losses into profits over the next few years. We are also exploring opportunities to remove unprofitable ancillary businesses. To complete out revenues on the P&L, other revenues includes fees received from our external exchange company, fees received from the settlement process for the sales of vacation ownership interests, and tour deposit forfeitures. In 2009, revenues were higher because of tour deposit forfeitures, but have since stabilized at roughly $30 million. As you can see, the amounts are modest and we expect they will remain so in the future. We lowered our G&A costs dramatically in 2008 and 2009 as we right sized our business and improved efficiency. We have reduced costs across the entire business including Finance, HR, Legal, Information Resources and other back of house areas. On this slide, G&A expenses in all years have been restated to reflect estimated stand alone and public company costs of about $12 million annually and to include the Marriott royalty payment. The royalty fee is, generally, a flat $50 million per year plus a payment calculated as approximately 2 percent of contract sales. Weve included this fee in G&A as it is an overhead cost associated with the entire development, finance, resort management and rental businesses. We believe we have meaningful operating leverage as we increase our total contract sales. The Marriott brand brought legitimacy to the timeshare industry in 1984 and it remains a potent force. We will retain the exclusive license to the Marriott and Ritz-Carlton brands for the vacation ownership business. We will also retain access to the Marriott distribution system, marriott.com, Marriott Rewards and expect to continue to leverage individual marketing relationships with individual hotels. And well be able to leverage Marriotts considerable purchasing power. But in the end, it is the respectability and trust of the Marriott brand that is the significant competitive advantage. 42

Some might say this is a tough time to launch a new company. Economic growth in 2012 is uncertain and unemployment is stubbornly high. But we are not a new company. We have considerable experience, a seasoned management team and the best brands in the industry. However, we recognize that to estimate the value of the company some view of 2012 would clearly be helpful. So we are presenting three adjusted EBITDA scenarios for 2012. These are not forecasts. We are not taking an opinion on the economy, simply presenting what our adjusted EBITDA might look like under different contract sales assumptions. We selected contract sales of flat, up 5, and up 10 percent as they seemed reasonable, but even at a 5 percent reduction in contract sales, we would expect 2012 adjusted EBITDA to be flattish with 2011 levels. We estimate our 2011 proforma adjusted EBITDA at $95 to $105 million. Remember, this is after interest expense related to our securitized debt. This is consistent with the timeshare segment guidance Marriott outlined earlier this month, adjusted for incremental expenses for a full year associated with the stand alone public company, the Marriott royalty fee, and the cost of the warehouse facility. You can think of this like pre-tax income, if you will, before depreciation and non-securitized interest expense. Our management fees are expected to total approximately $63 million, EBITDA from G&A is expected to total $134 to $137 million and the remainder of our business is expected to generate $170 to $175 million of adjusted EBITDA in 2011. In 2012, again this is not a forecast, but if we assume a 5 percent growth in contract sales, we would expect management fee revenue to increase to approximately $66 million. We could probably hold G&A flat and stronger revenue would likely improve operating margins and profits. All in all, we believe a 5 percent improvement in contract sales would yield roughly a 21 to 34 percent improvement in adjusted proforma EBITDA. At a 10 percent improvement in contract sales, this EBITDA would be approximately $138 million, an increase of 31 to 45 percent. But what if the economy weakens in 2012? If we assume no contract sales growth next year, we would still expect to see some improvement in management fees due to inflation. G&A could be flat to down a bit and timeshare EBITDA would likely improve a bit, benefitting from lower unsold maintenance fees as we monetize our excess Luxury inventory and further reductions in marketing and sales costs. So even in weak economic times, we are well positioned to thrive.

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Our points product is quite flexible. In addition to being a hit with consumers, it can be sold in small increments, making it more affordable to a broad customer base even in tougher economic times. MVW is a sales driven organization. Having the right product is the most important thing to complete a sale, but we are also experienced at leveraging sales incentives to accelerate sales as needed. We understand the tradeoffs between pricing, margins and value and we understand our customers very well. Our target customers tend to be affluent and customer credit scores remain strong. Our mortgages performed very well in the recent downturn, a fact that is still quite fresh in the minds of investors searching for yield. And the ABS market continues to strengthen. We also have considerable liquidity and access to capital. All in all, while we cant forecast the economy in 2012, we believe our downside risk is quite modest. With regard to EBITDA multiples, that of course, is your expertise. But it only makes sense to use a franchise fee multiple on our management fee EBITDA, a timeshare multiple on our timeshare EBITDA and a timeshare or lodging company multiple on our G&A. In addition, you may wish to consider excess Luxury inventory and undeveloped land which we expect will be sold over the next three years, yielding between $150 to $200 million in cash proceeds. Based on our change in strategy, if you remember we took an impairment charge of approximately $325 million in the third quarter to write this land and inventory down, to current appraised values. Our balance sheet is in good shape and we expect it will get better. Future inventory additions should be modest. North America sales require much less capital than in the past. In 2012, we expect to have less than 5 projects under construction compared to over 20 in 2008. At the same time, as demand builds, we can launch new development phases at existing properties. We intend to pursue asset-light growth opportunities wherever possible, such as turnkey arrangements and marketing agreements, as well as continue to grow high margin revenue streams, such as management fees and new trading and exchange opportunities. We expect to recycle our loan portfolio while retaining meaningful excess spread. And, we will make every effort to maximize net cash flow. As we look forward, our growth opportunities are meaningful. We derive our value from our diverse sources of revenue. Our customers love our products and continue to be our best sales people. Every customer provides more than one stream of cash flow and a substantial portion of that cash flow is recurring. We have reduced our expenses 44

significantly and we continue to find opportunities for improvement. Our near term development requirements are modest, and going forward, we believe there are less capital intensive ways of developing inventory. Our points product allows us to be very efficient with capital. And the monetization of excess inventory and land will provide cash while lowering our ongoing operating costs. We are focused on driving growth and returns to our shareholders and look forward to getting to know all of you much better. Now, I will turn it back to Steve to moderate the Q&A.

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Question and Answer Session: Steve Weisz: As the team assembles let me just walk through the process. This is being webcast, so I would appreciate it if you have a question raise your hand. Well get a microphone to you, so if you would wait to begin your question until you get the microphone so everybody on the webcast can hear. Then well ask you to state your name and your affiliation and then Ill field the question - farm it out to members of the team and well go from there. So, questions? Steve Kent, Goldman Sachs: Good morning, a couple questionsfirst, can you talk about how you are going to reframe some of the management incentives because from what I can see so far, youll have more exposure individually to Marriott shares than to the new timeshare entity and I want to know how the board will address that over time. Second, I think one of you said that ROIC on new builds will be higher, but Marriott has struggled with that for many years and I want to know whether youve got some new ideas there. And then finally, I dont completely understand the management fee profitability. How truly profitable that isis it as profitable as a royalty stream from a hotel franchise? Steve Weisz: Ok. Well try that - Ill take the first one and then well go from there. Management compensation is your question, I believe, and the incentives thereafter. Clearly today our executive team is focused on not only the profitability of our business but also of Marriott International. The comp policy committee of our new Board, which of course officially doesnt exist yet, but has been named, has already had a preliminary meeting. They are already beginning to frame up their discussions about how our compensation will look on an independent basis. And well be going forward from there. Clearly, well be incented on the results of this business going forward and less so on what goes on with Marriott. Now, things like stock options that existed and were issued prior to the spin, we will in factthe division of those options will run the same course as the 10 to 1 ratio on the share distribution. So, there will still be some residual impact for this team in terms of options, but anything going forward will be solely based on the results of this company. Your second question I think was on ROIC, who wants to take that one? John Geller: I talked about it. From an ROIC perspective I think our high points were probably around 15 percent or so. The business did struggle and I think some of it has to do with the Luxury component of the business. As weve talked about, that is not going to be a big component of the business going forward. I think the other thing that will make a difference going forward is our points-based product, which is a much more capital efficient product. If you think about it, when we were selling a weeks-based product you had to have 15 to 20 resorts in active construction and sales because you were selling that destination. Now we are selling a portfolio product and, as a result, we can decide how the inventory 46

gets seeded into the trust and we would expect much less under construction at any given point in time going forward. And further, well be able to scale our construction better in terms of what sales are doing, whether thats speeding up or slowing down. Steve Weisz: Ok. And management fee profitability. Ok, John, go ahead. John Geller: Im not sure, Steve, I understand your question exactly. When you look at it from the numbers we showed, $63 million, thats after all our costs essentially to run the business. So we get reimbursed costs just like Marriott does. So, that is really the profit margin - the $63 million we talked about. And the nice thing about that is, those continue to grow. If we just make one incremental point sale, those management fees go up as you add incremental, and since they are based on costs, as the actual costs go up to operate the resort, which is what the maintenance fee covers, our management fee as a percentage, typically 10 percent of the cost to operate. So, you get some lift from management fees there. So youre not dependent on a top line number, if you will, like the hotel business. Joe Greff, JPMorgan: Good morning. These questions are probably for John. John, you talked about longer term vacation ownership revenues, net of expenses. The target margins there are 20 percent, which are uniquely higher than the 9 to 13 percent range that you talked about. How do you get there? And I know that you talked about things like cost of the product going down to 38 percent. What are some of the assumptions there? And then another separate question is, and this isnt a major segment for you, the rental segment -- I dont quite understand why that loses money. You talked about lost money when transient room rates were low, why would you rent them out if you are losing money? Is it sort of a loss leader, a way of marketing to non-timeshare buyers? If you could answer those two that would be helpful. John Geller: Ok. In terms of the margins, Ill let Lani answer on the rental side. Yes, the goal is 20 percent. Clearly, we are not there. Obviously, the two components as you mentioned, product costs, historically those have run higher than that 38, 39 percent that we talked about. Some of that, once again, had to do with our product costs on the Luxury business, which typically had a higher product cost percentage. Once again, as we deemphasize that, we think 38 percent is going to be achievable. The goal really, too, as we talked about, as we look new development opportunities, will be to do things on a more asset-light basis. So, we think there will be some opportunities to continue to try and get those costs lower. Obviously, the other piece is the marketing and sales costs. Were running about 50 percent marketing and sales costs, so if you do the math, youve got to get that down to about 42 to 46 percent range, depending on where you go on your product cost. So, and Brian talked a lot about that in his presentation, but weve got to drive efficiencies through our marketing and sales and drive those costs down. Thats the way we will get to that 20 percent margin. Lani Kane-Hanan: And to answer your question on the rental side, I think your comment was why would we rent the inventory if we were losing money on the rental? But actually 47

our rental P&L includes all the costs of the inventory. So, when our owners exchange for Marriott Reward points, we have a cost associated with those Marriott Reward points. Those exist in the rental P&L. When we have inventory that is built, but not sold, we have the obligation of paying the unsold maintenance fee on that unit. So, in that rental cost bucket is Marriott Reward cost, is unsold maintenance fee costs, plus the cost of advertising marketing associated with the rentals. In 2009, we had a significant amount of inventory and a significant amount of unsold maintenance fees associated with that inventory. And we had a significant amount of inventory in the Luxury sector. As John noted in his presentation, at many of our RitzCarlton Club properties, either because of local zoning restrictions or because of restrictions in the site-specific documentation, we cannot rent that inventory. But we still have to bear the cost of it, mainly the unsold maintenance fees. So in 2009, with the drop of transient rates, and the excess amount of Luxury unsold maintenance fees, we were unable to cover the cost of that inventory. In 2010, you started to see the improvements and we were able to cover the global cost. 2011 further improvement. And as we sell off that Luxury inventory, you can see the North American rental operation is profitable on its own today. Janet Brashear, Sanford Bernstein: Steve or John, on the financing portion of the business, you used to run around 67 percent of the people that you give mortgages to, now it is about 40 percentthe question is, if you wanted to get back to that 67 percent number, is the constraint the customer? They dont want the mortgage? Or is it more constraints on you being able to process the mortgage? Or are you waiting on the mortgage market to come back so you can re-securitize the mortgages? Steve Weisz: Ill give you the high level answer and then Ill let these guys give you the details. Historically, in the business our financing propensity was in the mid 40 percent range. There was a period of time from 2004 to 2007, where we actually provided incentives for people to take our financing. Now, keep in mind, the profile of the customer didnt change. These were people that had, quite frankly, the wherewithal to buy timeshare without financing. Instead, because we saw it as a profitable part of the business, we said, Well, lets see if we can give some incentive for people to take our financing. So, we offered them Marriott Reward points, not only to take the financing, but we said, For every six months that you maintain your mortgage and dont prepay it, we gave you additional points, etc. It was a very profitable equation. The problem is -- and that was all well and good when we were getting 100 percent advance rates on the mortgages. When, all of a sudden the bottom fell out, and the advance rates werent there, thats when we pulled back. The normal historical view, without incentive, is that about half of our people take financing. The rest of the people have the ability to simply write a check and go forward.

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Now, with that Ill ask either John or Joe to embellish that further. John Geller: You did a good job Steve. All I would add is I think if we were in our sweet spot, if you will, that 45 to 50 percent is about right. The trade off really being, obviously financing is a very profitable portion of the business, when the securitization markets are humming along. But, given there is time between origination and securitization, we also dont want to do it where you are over-relying on the securitization market from a cash flow, from an exit strategy. So, we dont see ourselves getting back to the incentives that Steve mentioned to increase that financing propensity significantly but we are going to do everything to try and manage that balance, if you will, between the risks of the securitization market, but, on the flip side, maximizing our financing profit. Harry Curtis, Nomura: Can you just remind us what the capital structure is going to look like at the time of your spin, please? John Geller: From a capital perspective, we are obviously bringing over the securitized note balances that have been sold. And then, other than that, weve got the $40 million of preferred stock. Thats got a 12 percent coupon. Its 10-year mandatory redeemable, callable in 5. Thats really our debt. We are going to have our warehouse facility, which is going to allow us to borrow against our loan balances in between actual term securitizations, and that is a $300 million capacity. And then, weve got $200 million of capacity under a corporate revolver. Question: [Inaudible] Steve Weisz: Just to repeat the question for the webcast, how much debt and how much cash, could you remind us? John Geller: Arent the notes balances about $800, $900 million? Joe Bramuchi: Yes, I think at the time of the spin between the warehouse and the term market they should be somewhere just north of $800 million. John Geller: And we are not going to -- they wont have significant excess cash. Well have enough cash in working capital to be able to run the business. Question: How much is the amount of the working capital cash? John Geller: Well, it will depend on the actual date of closing, but we expect it to be..call it $25 to $30 million of cash day one, if you will, to help manage through the working capital. Patrick Scholes, FBR Capital Markets: I actually have three questions. The first, you mentioned in the presentation taking down your cost of sales to low 40s from currently 50 percent. Do you have a timeframe or target date for that lower number? Second question 49

is, what economic metrics do you closely follow that you believe are highly correlated to your customers purchasing your products, such as real GDP, unemployment. Is there one in particular that you think is most correlated? And lastly, I believe that you currently outsource your exchange to Interval. Do you plan to continue to do that? Steve Weisz: Brian, do you want to take the M&S question? Brian Miller: Sure. To answer your question, we are not giving specific guidance on sales and marketing cost except to say that we do intend to get them down into the low 40s. If you look at some of the numbers we showed you, North America is running around 47 percent year-to-date. So, some of the Luxury stuff and some of the Europe higher cost is what is dragging it up to into the 50 range. So if you look at it that way, the 47 down into the low 40s is not nearly as daunting of a task. And, I might also add, go back into the years 2000 into probably 2006 and 2007, and we consistently ran our timeshare sales and marketing in the low 40s. Some years as low as 40, 41, maybe as high as 43, 44, but that range is entirely achievable. We are going to continue to manage our marketing mix, as I showed you. We are going to continue to look for overhead opportunities, cut variable sales cost. And over time, the part I cant predict is how the market improves. Because, clearly, our sales efficiencies, our VPGs, as I showed you in the $2600-$2700 range is good, but it is not where it needs to be for us to operate in the low 40s. So as the market improves, and that is what I dont have a crystal ball on, but even a movement back up to just the $3,000 range helps us get there because we do have very good operating leverage now that weve taken so much cost out of the business. Steve Weisz: Thats a great segue to your next question is what metrics we look at. To be honest, the one that we focus on the most is consumer confidence. Its certainly not perfect but in terms of a general proxy for how people think about discretionary purchases we think it is pretty relevant. Lets face it, this is a discretionary, it is not an inexpensive discretionary purchase. And, obviously, as people feel better about their economic lot in life and what the future holds, we believe that that will certainly bode well for us for the future. And then on the exchange question, Lani, you want to take that? Lani Kane-Hanan: Certainly. For our weeks-based owners, Interval International provides the back of the house exchange functions for us. Its seamless to the customer, but they do provide the back of the house. With our points-based program, given the complexity of inventory management, and the outside experiences that we wanted to provide in the Explorer Collection, we manage that process for our points-based owners. Interval International provides not only the back of the house for us for our weeks-based owners, but they also provide access for our owners who want to go outside the Marriott Vacation Club system to other vacation ownership projects. They are an important and strategic partner for us today. They provide that experience and we anticipate that relationship to continue going forward. 50

Vlad Artamonov, Coastal Investment Management: I guess on the Form 10, I see $104 million in delinquent notes receivable. That doesnt square very well with the delinquency slide that I think Joe presented earlier. Whats the history of delinquencies on balance sheet and where do you see that going? Joe Bramuchi: Yeah, I think again that the slide I showed is more of an ABS composite and it is an industry slide, so we were just one part of that component. It is also defined differently in some of the ABS deals and that may differ from operator to operator. For example, in some cases its 60 days plus to 120, and in other cases it is 60 to 150 days. But those numbers are 60-day delinquencies in that ABS composite. Vlad Artamonov, Coastal Investment Management: Right. The $104 that is delinquent, thats greater than 150 days delinquent. Steve Weisz: In the Form 10 Joe Bramuchi: Ok. So in the slide I just wanted to confirm that. We have a servicing portfolio of about a $1.4 billion today. So, when you look at the delinquency amounts that are going through, first of all, that is everything that is part of our servicing portfolio in our business. But again, the numbers, I think, Vlad, you were comparing those numbers to the number in the chart earlier, is that correct? Vlad Artamonov, Coastal Investment Management: Yeah, I just noted a high level of that, thats basically posted in the Form 10. John Geller: The $104 million is the over 150 days, is that the number you are talking about? Vlad Artamonov, Coastal Investment Management: Correct. John Geller: So, what happens is once you go over 150 days they go into default. And so you have to go through a foreclosure process. That can build up over 150 days because the foreclosure process takes a period of time. It could take up to 365 days, if you will, on top of that. So, what you are seeing there is kind of a build up, if you will, based on the timing of actually foreclosing on those notes. Does that make sense? Vlad Artamonov, Coastal Investment Management: Ok. And how does that compare to history of the divisions through time? Joe Bramuchi: Sure. I think right now we are still seeing the workout of loans that have come through post 2009, and those are working through. When you take delinquencies overall, delinquencies have come down at the 2009 levels quite well. And it is happening on a declining loan balance. How does the $104 million compare today? I think it still reflects some overhang from the 2009, 2008 market meltdown. But again, as that works through,

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well continue to see that decline and it is just going to start to mirror the pace of the sales that are forgoing. Anil Seetharam, Stockbridge Investors: Did you include the delinquent loan portfolio in the future inventory balance? Because, presumably, once you foreclose on those weeks youll recycle them into the system and sell them, right? John Geller: Yes, the way timeshare accounting works under the SOP, is that for financed contract sales, if you can estimate what you think your future foreclosures are going to be, you actually account for that in your product costs. So, on your book at any given point in time, in your inventory balance, is some level of inventory cost related to financed contract sales that you expect to foreclose on in the future. Chris Agnew: MKM Partners: Good morning. How advanced is the development of your asset-light strategy and do you have a target for the percentage of contract sales that could eventually get to? And a second question, you mentioned adding new brands. Could you expand upon that? Is this looking to develop new brands or acquiring new brands? And, I have no sense of the size of brands you are looking to acquire. Steve Weisz: Sure. Let me ask Lani to take on the asset-light question and Ill come back on the new brands. Lani Kane-Hanan: Absolutely. As you saw from some of the slides that I presented, we have significant inventory balances today. Our priority is selling through those inventory balances. As we look towards the future, when we are going to need additional inventory, for us, our target is less about percentages of contract sales and more about balancing risk. So, we will look at developing the new phases of our existing resorts because, as you can see, we can do that in a fairly cost effective manor. Minimal cash outlay for the contract sales that they generate. We are also looking at a variety of different ways to add inventory. We can add inventory that is non-real estate focused through our Explorer Program, cruises, and safaris. We can add inventory through management contracts and affiliations but also specifically to inventory that we would sell, we are looking at fee for service deals, we are looking at distressed condos that we might be able to acquire and put into our inventory just prior to needing for sale. And also turnkey structures, where we are engaging a third party to build the product for us and then again we would take it just prior to sale. So balancing all of those sources for our future inventory needs, while mitigating risk and being cognizant of lightening that balance sheet. Steve Weisz: And then on the new brands questionit is clearly one of the opportunities that could present itself as being an independent company. And those brands could either be a brand that we might develop on our own, in terms of a typical kind of development process, and we have actually done that before within our business. Or, we could do it 52

through some sort of management of an acquisition process. Ill be very honest with you and tell you that right now we have been solely focused on the spin and getting ourselves established as an independent company. I would be lying to you if I didnt tell you that there has been an occasional phone call here or there. People that have kind of said, Gee, what about, and we have said, For now we are not prepared to talk to you about anything. At some point in time in the future we might engage in discussions along those lines. So, I think it could come from a variety of ways. You could go buy another timeshare company, you could go development your own. I think well just have to wait and see. John Geller: I think the other question was on contract salesdid you ask where you though volumes might go? We are not, obviously, providing and level of future guidance along that. But I guess a couple points of reference to consider is where we were. In 2007 our contract sales were north of $1 billion, so you can look at it from a potential opportunity. We were there before. Theres opportunity out there when the economy starts to recover. I think the other point of reference is, really, if you look at it, and this is an ARDA statistic, which is the timeshare industry association, only about 8 percent of eligible households actually own timeshare today. So, it is a pretty deep market in terms of who our potential customer could be. Chris Agnew: MKM Partners: Could I ask a quick follow up on that? Steve Weisz: Sure. Chris Agnew: MKM Partners: How would you like your capital structure to look like in a couple years time? Is this not a business that should have some non-securitized debt on the balance sheet? John Geller: I think as we look father out we are clearly going to focus on our leverage. It is important for us, at a minimum, I think, to keep that credit rating where we are at today. Just in terms of being able to securitize debt longer term. So, right now we look at it in terms of 4.5 to 5 times leverage ratio, if you will. Obviously we are going to continue to maintain that. I think the nice thing is when look at that leverage, as our securitized notes get paid down, and we have some increased EBITDA, just by the nature of that securitized note balance coming down, that would give us some level of capacity, to keep it within that range. So, thats something that we are clearly going to focus on, but we will kind of see as we go. Janet Brashear, Sanford Bernstein: One of the opportunities that youve talked about in the past is potentially starting an exchange business and Im wondering if you could talk toif you took your existing inventory, what percent would you say is that of say the inventory in Interval International, for example, or in RCI? And also, what amount of inventory do you think you need to have a viable exchange business?

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Steve Weisz: Ill take a stab at what percentage we are of Interval International and then Ill let Lani kick in on the rest. We have 64 resorts and they have 2,500. Now our average size of resort is a little larger than the typical average for Interval. So, lets say were the equivalent of 100 of 2,500, so do the arithmetic and that is the percentage. Thats roughly the number. As far as what we could do with the exchange business going forward, its obviously been a hot topic of dialogue within our organization for some time. Let me let Lani start on it and Lee can certainly chime in as well. Lani Kane-Hanan: The points-based product for us really enabled our launch of our internal exchange business. So, we are just in our infancy. We are really focused today on getting our existing owners, our existing weeks-based owners, enrolled into the points program and facilitating and using the exchange features, and using the external exchange features, or what we call that Explorer Program. For us, we see a lot of potential in the exchange space for us. We are already starting to explore partnerships in external experiences for our owners. But right now, we are really focusing on moving our existing owners through the product and introducing them to the new product. And that is really where we are going to be focusing that growth in the short term. Lee Cunningham: The replacement for Interval International, as Steve said, amassed 4 percent of the inventory that they provide to others. So, it is really more not about the percent of inventory as it is about the destinations that are represented. So, it will be a while before we could have control or affiliations outside of Interval that will give us access to all the destinations that our owners would be desirous to visit. So, we see a continuing relationship with Interval but at the same time a continuing expansion of what we have already started with our points-based exchange program. Janet Brashear, Sanford Bernstein: Just a quick follow up, do you see websites such as VRBO.com and Redweek.com in which owners are basically reselling inventory to other owners on their own? Do you see that as sort of either threatening your rentals business market or a threat in the exchange model in that they might not need the exchange company anymore to transfer to what they want? Steve Weisz: Brian, do you want to take the sales question? Brian Miller: Yeah, Im not really sure what you are referring to on Redweek because that is primarily a sales channel, although they do do a little bit of rental and other stuff, too. That stuff is going to occur. There are a lot of weeks owned out there, millions of weeks. You know, we changed product form so we are selling points now so all that weeks based activity is not directly related to what we are selling today. So we are not so concerned and it is not cannibalizing our business to any degree that we are aware of.

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Steve Weisz: And on the exchange side, I think there is a general misnomer that anybody can start up a website and if you own a week in Hawaii and I own a week in Hilton Head, we can simply get on a website and we trade weeks. Seldom does it ever work quite that way. If you talk to the exchange companies, you get into all the algorithms that they use and everything else. Invariably, theres 15 or 20 different trades that happen before the inventory that you put forward and I want, and vice versa, ends up working together. Its based on the time requests and all the other things that go along with it. So, while some of those things do exist today, we still think there is meaningful opportunity for us in the exchange business. Any other questions? We wore you out! First of all, on behalf of our entire team today, I really would like to thank you for joining us, spending all of your morning with us at our first-ever Marriott Vacations Worldwide Analyst Day. Youve heard throughout the morning that we are very proud of our accomplishments over the past 27 years. And, hopefully, youve taken away from this that we are very excited for the future for what this holds for us. We learned a long ago that success in business is built on deep, trusting and long lasting relationships. We look forward to creating those very same relationships with you, and we will be in touch with you often to share news and respond to your questions and simply check-in. So, again, please accept our special thanks for your time today and your participation and I wish you a great weekend. Thank you very much.

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