Credit Suisse 18th Asian Investment Conference · 2017-04-21 · $2,015 $2,283 $2,405 7 . ... MGM...
Transcript of Credit Suisse 18th Asian Investment Conference · 2017-04-21 · $2,015 $2,283 $2,405 7 . ... MGM...
March 23, 2015
CREDIT SUISSE
18th ASIAN INVESTMENT CONFERENCE
Vice President, Investor Relations MGM Resorts International
SARAH ROGERS
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WHO WE ARE TODAY
Premier Gaming And Entertainment Company With a Globally Recognized Brand
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DIVERSE GEOGRAPHIC REVENUE MIX
Las Vegas 54%
U.S. Regional
12%
Macau 34%
(2014)
Note: Excludes Management & Other Operations 5
BUILDING OUT THE MGM BRAND
Detroit, MI
Las Vegas, NV
Atlantic City, NJ
National Harbor, MD
Springfield, MA
Elgin, IL
Biloxi, MS
Tunica, MS
MGM Properties*
M life Partnership
Future MGM Properties Under
Construction
U.S. MACAU
* Including JVs
Other Non-gaming
partnerships with
Hakkasan and
Diaoyutai
Macau
Cotai
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Net Revenues OPERATING TRENDS
$6,353 $6,493 $6,800
$2,808 $3,317 $3,283
2012 2013 2014
MGM Resorts MGM China
Adjusted EBITDA*
* Before unconsolidated affiliates
($ in millions) ($ in millions)
$9,161 $9,810 $10,082
$1,335 $1,469 $1,554
$679 $814 $850
2012 2013 2014
MGM Resorts MGM China
$2,015 $2,283 $2,405
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LEADING THE MARKET IN LAS VEGAS
Circus Circus Excalibur Luxor NY-NY *50/50 JV with Infinity World Development Corp, a subsidiary of Dubai World
MGM Grand Bellagio CityCenter* Mandalay Bay Mirage
Monte Carlo
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LAS VEGAS STRIP REAL ESTATE
MGM Resorts
740 Acres
Wynn
240 Acres
LV Sands
82 Acres
Caesars
304 Acres
Genting
87 Acres
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DIVERSE LAS VEGAS STRIP REVENUE MIX (2014)
GAMING 30%
NON-GAMING 70%
Casino
30%
Rooms
28%
Food & Beverage
23%
Retail, Entertainment
& Other
19%
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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
MGM RESORTS - WHOLLY OWNED STRIP
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
(2014)
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MONTE CARLO / NY-NY STRIP FRONTAGE 13
THE ARENA COMING IN 2016 14
COMING IN 2016 THE PARK / ARENA 15
MUSIC FESTIVALS - MGM VILLAGE
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COMING IN 2015
MANDALAY BAY CONVENTION CENTER EXPANSION
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FUTURE DEVELOPMENT OPPORTUNITIES MGM National Harbor (Maryland)
MGM Springfield (Massachusetts)
MGM Hospitality Globally Monitoring Prospects for Integrated Resorts
• Japan • South Korea
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AVP, Investor Relations MGM China Holdings Limited
SIDNEY LUK
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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 2015 28
MGM CHINA FINANCIAL OVERVIEW
Net Revenues -1% ($3.3 billion) VIP -16% vs. Market -11% Mass Table +34% vs. Market +16%
Adjusted EBITDA +5% ($850 million)
Occupancy 99%
Continued solid performance in 2014
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2010 2011 2012 2013 2014
($ in millions)
$365
$685
$822
$637
EBITDA Margin 23% 24% 24% 25% 26%
$850
MGM CHINA EBITDA TRENDS
* 2010 and 2011 EBITDA based off on International Financial Reporting Standards (IFRS)
* *
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MGM China holds a larger than its fair share of Macau’s GGR based on the number of tables in the market
MACAU GAMING MARKET SHARE
* Based on number of gaming tables
Rest of Market 90%
MGM China
10%
2014 GGR Market Share Fair Share*
VS
Source: Company data, Deutsche Bank Research
Rest of Market 93%
MGM China
7%
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OPERATION STATS - GAMING REVENUE
2011 2014
22% 35%
78% 65%
Mass (Tables & Slots) VIP
2011 2014
52% 73%
48% 27%
Mass (Tables & Slots) VIP
Gaming Revenue Contribution (% of total)
EBITDA Contribution (% of total)
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Sources: Company data Note: As of December 31, 2014; Galaxy Macau data assumes USD/HKD=7.77
Property EBITDA per Hotel Room Inventory Per Day (USD) ROOM YIELD OUTPERFORMING MARKET
$4.2K
$3.4K
$2.2K $1.6K $1.5K
$0.5K
MGM Macau Wynn Macau City of Dreams Galaxy Macau VenetianMacao
Sands CotaiCentral
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BEST POSITIONED FOR GROWTH
MGM China SJM Holdings Wynn Macau Melco Crown Galaxy Sands China
2017E ROOM COUNT GROWTH
+256% +244%
+168%
+142%
+41% +37%
The addition of 1,500 rooms at MGM Cotai will more than triple
MGM China’s room count in Macau
Sources: J.P. Morgan, Company data 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
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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 GDP1 China’s urban population’s visits to Macau annually ~2% vs. ~10% U.S. visitors to Las Vegas1
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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MGM Cotai
Light Rail
High Speed Rail
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TITLE TEXT
Body Level One Body Level Two Body Level Three Body Level Four Body Level Five
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RETAIL 40
MGM COTAI - MANSION
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MGM COTAI - CONSTRUCTION UPDATE 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.
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CREDIT SUISSE
18th ASIAN INVESTMENT CONFERENCE
March 23, 2015
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