mgm osaka presentation

8/11/2019 MGM Osaka Presentation

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Our Vision For A JapanIntegrated Resort

Bill Hornbuckle

President

Mizuho Investment Conference

September 2014


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1. Who is MGM?2. What is an Integrated Resort (IR)?

3. What are the benefits an IR canbring to Japan?

4. What is MGMs vision for a JapanIntegrated Resort (JR)


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Fortune 500 company with iconic brands known

worldwide18 destination resorts in 5 jurisdictionsworldwide

$10 billion in global revenue

62,000 employees worldwide

Diverse revenue mix across multiple businesslines

Growing presence in Macau the worldslargest gaming market

Who is MGM?


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Luxury Properties

MGM GrandAria Bellagio The Mansion

Mandalay Bay MGM Macau The Mirage


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Mass and Regional Properties

Monte Carlo ExcaliburLuxorNY - NY

MGM Detroit Beau Rivage Gold Strike Circus Circus


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MGM Properties Snapshot

Resorts 18

Hotel Rooms 42,000

Total Area (Hectares, Las Vegas Strip) 300

Food & Beverage Outlets 350

Employees 62,000

MICE Space (m2) 300,000


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Net Revenues

$6,314 $6,353 $6,493 $6,684

$1,535

$2,808$3,317

$3,504$7,849

$9,161$9,810

$10,188

$-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

2011 2012 2013 2Q 14 LTM

MGM Resorts International MGM China(USD Millions)


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EBITDA

$1,274 $1,289$1,512 $1,601

$475$679

$814$880

$1,749

$1,968

$2,326

$2,481

$-

$500

$1,000

$1,500

$2,000

$2,500

2011 2012 2013 2Q 14 LTM

MGM Resorts International MGM China(USD Millions)


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Growing Presence In Macau


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Growing Presence In Macau


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Large-scale mixed-use destination resort

Spectacular entertainment and WOW attractionsSignificant MICE component

Ability to attract the widest distribution of customersand drive international tourism

Gaming space limited

Non-gaming activities account for 70% of revenues insome markets

Dramatic architecture

Minimum 500 billion investment

Permanently employs approximately 10,000 people

What Is An Integrated Resort?


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Entertainment


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MICE


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Food & Beverage


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Hotel


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Amenities & Attractions


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CITYCENTERA New Paradigm In Resort Design


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Largest private investment in U.S. history

One of the largest private job creators

Largest privately funded ECO project in North America:

Received six LEED Gold Certifications from the U.S. Green

Building Council

Features the work of several great architects: KPF, Cesar

Pelli, Rafael Vinoly, Helmut Jahn, Daniel Libeskind



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Hotel rooms 5,826 Condo units 901

Restaurants 33Total Gross FloorArea (m2)

1.8million

Retail Outlets 58 Gaming Floor Area(m2)

14,000

ConferenceSpace (m2)

30,000 Employees 10,000



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BELLAGIOA Resort Incorporating WOW Attractions


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Increase inbound and domestic tourism

Deliver on key macro and micro governmentpolicy objectives

Generate significant tax revenues

Develop strong regulatory oversight andcontrols

What Are The Benefits IRs CanBring To Japan?


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Las Vegas Strip Revenue Mix

Gaming59%

Non-Gaming41%

1979

Gaming37%

Non-Gaming

63%

2013

Source: LVCVA


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MGM Las Vegas StripRevenue Mix

Casino31%

Hotel27%

Food &Beverage

22%

Entertainment10%

Retail &Other10%

Non-Gaming 69%Gaming 31%

2013


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Increase Inbound Tourism

International20%

Domestic

80%

Las Vegas Visitation Statistics, 2013

Source: LVCVA


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20

25

305

10

0

10

20

30

40

50

2020 2025 2030

Estimated incremental international visitation growth (millions)

Japan international visitation goals (millions)

Increase Inbound Tourism


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Export Japanese culture - Cool JapanInfrastructure investment

Expand non-manufacturing sectors of theeconomy

Spur development in areas surrounding the IR

Develop / enhanced MICE business

Attract world-class entertainers

Womenomics

Deliver On Key Macro And MicroGovernment Policy Objectives


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Incremental tax revenue from an IR can benefitmany areas including:

Regional economic revitalizationInfrastructure improvements

Public safetyEducationProblem gambling

Generate Significant TaxRevenues


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Establish regulatory framework that reflectsbest practices

Ensure economic benefits generated aredirected in a purposeful and socially acceptablemanner

Include responsible gaming legislation basedon reliable scientific research

Develop Strong Regulatory OversightAnd Controls


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Landmark destination attraction

Uniquely Japanese, not a copy of an IR fromLas Vegas or Singapore

Consortium of leading Japanese companies

Integrated with surrounding regions, touristattractions, businesses, and citizens

Focus on sustainability, ECO, setsuden

What Is MGMs Vision For AJapan Integrated Resort?


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MGM Osaka


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MGM Osaka


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Safe Harbor ProvisionCautionary Statement Concerning Forward-Looking Statements: Statements In ThisPresentation That Are Not Historical Facts Are Forward-looking Statements, Within TheMeaning Of The Private Securities Litigation Reform Act Of 1995 And Involve Risks And/orUncertainties, Including Those Described In The Companys Public Filings With TheSecurities And Exchange Commission. The Company Has Based Forward-looking

Statements On Managements Current Expectations And Assumptions And Not On HistoricalFacts. Examples Of These Statements Include, But Are Not Limited To, StatementsRegarding Our Development Projects. Among The Important Factors That Could Cause

Actual Results To Differ Materially From Those Indicated In Such Forward-lookingStatements Include Effects Of Economic Conditions And Market Conditions In The MarketsIn Which The Company Operates And Competition With Other Destination Travel LocationsThroughout The United States And The World, The Design, Timing And Costs Of ExpansionProjects, Risks Relating To International Operations, Permits, Licenses, Financings,

Approvals And Other Contingencies In Connection With Growth In New Or ExistingJurisdictions And Additional Risks And Uncertainties Described In The Companys Form 10-K, Form 10-Q And Form 8-K Reports (including All Amendments To Those Reports). InProviding Forward-looking Statements, The Company Is Not Undertaking Any Duty Or

Obligation To Update These Statements Publicly As A Result Of New Information, FutureEvents Or Otherwise, Except As Required By Law. If The Company Updates One Or MoreForward-looking Statements, No Inference Should Be Drawn That It Will Make AdditionalUpdates With Respect To Those Other Forward-looking Statements.Non-GAAP Financial Measures: The Financial Information Included In This PresentationIncludes Non-GAAP Financial Measures. The Companys Management Uses Non-GAAPFinancial Measures To Evaluate The Companys Performance And Provides Them ToInvestors As A Supplement To The Companys Reported Results, As They Believe ThisInformation Provides Additional Insight Into The Companys Operating Performance ByDisregarding Certain Non-recurring Items. Reconciliations Can Be Found In The FinancialSchedules Accompanying The Companys Earnings Releases.

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