CREDIT SUISSE 18 th ASIAN INVESTMENT CONFERENCE. March 23, 2015

Transcription

1 CREDIT SUISSE 18 th ASIAN INVESTMENT CONFERENCE March 23, 2015

2 SARAH ROGERS Vice President, Investor Relations MGM Resorts International 3

3 WHO WE ARE TODAY Premier Gaming And Entertainment Company With a Globally Recognized Brand 4

4 DIVERSE GEOGRAPHIC REVENUE MIX (2014) Macau 34% Las Vegas 54% U.S. Regional 12% Note: Excludes Management & Other Operations 5

5 BUILDING OUT THE MGM BRAND U.S. MACAU Springfield, MA Elgin, IL Detroit, MI Atlantic City, NJ Macau National Harbor, MD Las Vegas, NV Cotai MGM Properties* M life Partnership Future MGM Properties Under Construction * Including JVs Tunica, MS Biloxi, MS Other Non-gaming partnerships with Hakkasan and Diaoyutai 6

6 OPERATING TRENDS Net Revenues Adjusted EBITDA* ($ in millions) ($ in millions) MGM Resorts MGM China MGM Resorts MGM China $9,161 $2,808 $9,810 $10,082 $3,317 $3,283 $6,353 $6,493 $6,800 $2,015 $679 $1,335 $2,283 $2,405 $814 $850 $1,469 $1, * Before unconsolidated affiliates 7

7 LEADING THE MARKET IN LAS VEGAS MGM Grand Bellagio CityCenter* Mandalay Bay Mirage Monte Carlo NY-NY Luxor Circus Circus Excalibur *50/50 JV with Infinity World Development Corp, a subsidiary of Dubai World 8

8 LAS VEGAS STRIP REAL ESTATE MGM Resorts 740 Acres Caesars 304 Acres Wynn 240 Acres Genting 87 Acres LV Sands 82 Acres 9

9 DIVERSE LAS VEGAS STRIP REVENUE MIX (2014) Food & Beverage 23% Casino 30% GAMING 30% NON-GAMING 70% Retail, Entertainment & Other 19% Rooms 28% 10

10 LAS VEGAS IN 2014 Visitation +4% Record 41.1 million Occupancy +2.4 pts Highest since 2008 Average Daily Rate +5% Fifth year of consecutive increase Convention Attendance +1% Strip Gaming Revenues -2% McCarran Passengers at Highest Levels Since 2008 Driven by international passengers +13% Fastest growing international market for last two years Source: LVCVA, Nevada Abstract 11

11 MGM RESORTS - WHOLLY OWNED STRIP (2014) Improving Operating Results: Net Revenue +6% YoY RevPAR +8% YoY Adjusted EBITDA +7% YoY Record Convention Mix 17% Investing for Future Growth The Arena / Park Festival grounds / Rock in Rio Mandalay Bay room renovation 12

12 MONTE CARLO / NY-NY STRIP FRONTAGE 13

13 THE ARENA COMING IN

14 THE PARK / ARENA 15 COMING IN 2016

15 MUSIC FESTIVALS - MGM VILLAGE 16

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17 MANDALAY BAY CONVENTION CENTER EXPANSION COMING IN

18 FUTURE DEVELOPMENT OPPORTUNITIES MGM National Harbor (Maryland) MGM Springfield (Massachusetts) MGM Hospitality Globally Monitoring Prospects for Integrated Resorts Japan South Korea 19

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26 SIDNEY LUK AVP, Investor Relations MGM China Holdings Limited 27

27 THE MGM CHINA INVESTMENT CASE Award-Winning 5-Star Luxury Integrated Resort Best-In-Class Technology And Data Analytics to Maximize Yield Highly Regarded And Experienced Management Team Returning Value To Shareholders 35% of annual profits paid in regular dividends $1.8 billion* in special dividends paid since 2012 Strong Balance Sheet And Operating Cash Flow Investing In The Future - MGM Macau and MGM Cotai Maintain high-quality gaming experience, with a focus on non-gaming amenities * Includes $400 million distributed in March

28 MGM CHINA FINANCIAL OVERVIEW Continued solid performance in 2014 Net Revenues -1% ($3.3 billion) VIP -16% vs. Market -11% Mass Table +34% vs. Market +16% Adjusted EBITDA +5% ($850 million) Occupancy 99% 29

29 MGM CHINA EBITDA TRENDS ($ in millions) $637 $685 $822 $850 $365 * * EBITDA Margin 23% 24% 24% 25% 26% * 2010 and 2011 EBITDA based off on International Financial Reporting Standards (IFRS) 30

30 MACAU GAMING MARKET SHARE MGM China holds a larger than its fair share of Macau s GGR based on the number of tables in the market MGM China 10% MGM China 7% VS Rest of Market 90% Rest of Market 93% 2014 GGR Market Share Fair Share* Source: Company data, Deutsche Bank Research * Based on number of gaming tables 31

31 OPERATION STATS - GAMING REVENUE Gaming Revenue Contribution (% of total) Mass (Tables & Slots) VIP EBITDA Contribution (% of total) Mass (Tables & Slots) VIP 78% 65% 48% 27% 22% 35% 52% 73%

32 ROOM YIELD OUTPERFORMING MARKET Property EBITDA per Hotel Room Inventory Per Day (USD) $4.2K $3.4K $2.2K $1.6K $1.5K $0.5K MGM Macau Wynn Macau City of Dreams Galaxy Macau Venetian Macao Sources: Company data Note: As of December 31, 2014; Galaxy Macau data assumes USD/HKD=7.77 Sands Cotai Central 33

33 BEST POSITIONED FOR GROWTH 2017E ROOM COUNT GROWTH +256% +244% The addition of 1,500 rooms at MGM Cotai will more than triple MGM China s room count in Macau +168% +142% +41% +37% MGM China SJM Holdings Wynn Macau Melco Crown Galaxy Sands China Sources: J.P. Morgan, Company data 34

34 MGM MACAU REINVENTION Gaming - Supreme gaming lounge upgrade and expansion (in process) - Complete redesign of the Mass gaming floor for better customer flow and experience Hospitality - Retail space expansion - F&B new concepts and total upgrade - Hotel room refurbishment 35

35 THE LONG TERM MACAU STORY Mainland China penetration remains low and concentrated Macau Mass market represents 0.2% of China GDP, which is half of U.S. Mass % of GDP 1 China s urban population s visits to Macau annually ~2% vs. ~10% U.S. visitors to Las Vegas 1 70% of Mainland China visitors are from Guangdong Province Infrastructure projects Hong Kong-Zhuhai-Macau Bridge China high speed rail network build-out Light rail system within Macau Potential travel policy reform in Mainland China Extended border gate hours and increased room supply favorable to demand and length of visitation Development of Hengqin Sources: DSEC, News 1 Morgan Stanley 36

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37 Light Rail High Speed Rail MGM Cotai 38

38 TITLE TEXT Body Level One Body Level Two Body Level Three Body Level Four Body Level Five 39

39 RETAIL 40

40 MGM COTAI - MANSION 41

41 MGM COTAI - CONSTRUCTION UPDATE 42

42 SAFE HARBOR Cautionary Statement Concerning Forward-Looking Statements: Statements in this presentation that are not historical facts are forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995 and involve risks and/or uncertainties, including those described in the Company s public filings with the Securities and Exchange Commission. The Company has based forward-looking statements on management s current expectations and assumptions and not on historical facts. Examples of these statements include, but are not limited to, statements regarding our development projects. Among the important factors that could cause actual results to differ materially from those indicated in such forward-looking statements include effects of economic conditions and market conditions in the markets in which the Company operates and competition with other destination travel locations throughout the United States and the world, the design, timing and costs of expansion projects, risks relating to international operations, permits, licenses, financings, approvals and other contingencies in connection with growth in new or existing jurisdictions and additional risks and uncertainties described in the Company s Form 10-K, Form 10-Q and Form 8-K reports (including all amendments to those reports). In providing forward-looking statements, the Company is not undertaking any duty or obligation to update these statements publicly as a result of new information, future events or otherwise, except as required by law. If the Company updates one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those other forward-looking statements. Non-GAAP Financial Measures: The financial information included in this presentation includes non-gaap financial measures. The Company s management uses non-gaap financial measures to evaluate the Company s performance and provides them to investors as a supplement to the Company s reported results, as they believe this information provides additional insight into the Company s operating performance by disregarding certain non-recurring items. Reconciliations can be found in the financial schedules accompanying the Company s earnings releases. 43

43 CREDIT SUISSE 18 th ASIAN INVESTMENT CONFERENCE March 23,