CLSA Asia Investor Forum. January, 2008

Transcription

1 CLSA Asia Investor Forum January, 2008

2 Forward Looking Statements This presentation contains forward-looking statements regarding operating trends, future results of operations and the completion of new projects, which are subject to change. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ from those expressed in any forward-looking statements made by us. Additional information concerning potential factors that could affect the Company's financial results are included in the Company's Form 10-K for the year ended December 31, 2006 and the Company's other periodic reports filed with the Securities and Exchange Commission. The Company is under no obligation to (and expressly disclaims any such obligation to) update its forward-looking statements as a result of new information, future events or otherwise. This presentation includes non-gaap financial measures as defined in the Securities and Exchange Commission s Regulation G. A reconciliation of these non-gaap financial measures to the most directly comparable GAAP measures is available on our website at in the earnings release for the applicable periods. 2

3 Capitalization as of September 30, 2007 $3.5 Bn Liquidity Current Cost of Debt under 8% Wynn Resorts, Limited Debt outstanding - US$197 million (aircraft and senior unsecured facility) Total company leverage: 3.5x EBITDA (1) Net company leverage: 2.2x EBITDA (1) 100% equity 90% voting 100% Wynn Macau Wynn Las Vegas Debt outstanding - US$550 million US$1,000 million Revolver (undrawn) US$550 million Term Loans Total leverage: 2.0x EBITDA Net leverage: Cash exceeds debt Debt outstanding - US$1,658 million US$92 million drawn on the 900 million Revolver US$225 million Term Loan US$1,300 million 1st Mortgage Notes US$41 million note payable Total leverage: 3.9x EBITDA (2) Net leverage: 3.8x EBITDA (2) (1) $592 million Company EBITDA calculated as: Wynn Las Vegas LTM adjusted EBITDA ($421 million) plus Wynn Macau LTM adjusted EBITDA ($268 million), less LTM corporate overhead ($46 million) (2) Based on Wynn Las Vegas LTM adjusted EBITDA of $421 million 3

4 Superior Value Creation for Shareholders At Mirage $10,000 in June 1973 would have returned $4 million in May 2000 CAGR of 24.9% from 1973 through May 2000 versus 12.9% for the S&P 500 Indexed share price and Now Wynn Resorts Wynn Resorts stock has returned 779% since the IPO versus 59% for the S&P 500, 130% for Harrah s, 190% for Las Vegas Sands, 386% for MGM and 467% for Station Indexed share price (1) 60,000 50,000 40,000 30,000 20,000 10,000 0 Feb-72 Nov-73 Aug-75 May-77 Feb-79 CAGR = 24.9% Nov-80 Aug-82 May-84 Feb-86 Nov-87 Aug-89 May-91 Feb-93 Nov-94 Aug-96 May-98 Feb-00 (1) Stock chart as of January 11, Wynn 4th after Chicago Mercantile Exchange, Baidu.com and First Solar 1,600 1,400 1,200 1, CAGR = 51.6% 0 10/25/02 07/21/04 04/18/06 01/14/08 Total Return since IPO ranks #4 among all IPOs after 9/11/2001 4

5 Strong performance in Las Vegas and Macau Wynn Las Vegas YoY EBITDA 37.1% % % Wynn Macau EBITDA 35.0% % 0.2% ` Q 2Q 3Q 50 4Q 1Q 2Q 3Q Seasonally weaker quarter 5

6 Wynn Las Vegas

7 Wynn Las Vegas Strategic location Signature building with 2,716 rooms 111,000 square foot casino with 143 tables and 1,976 slots 22 Food and Beverage Outlets 74,000 square feet of high-end retail Spa and entertainment facilities Recreation and leisure facilities, including an 18-hole golf course, five swimming pools with private cabanas 220,000 square feet of convention space Mountain feature 7

8 Wynn Las Vegas 8

9 Leveraging the Wynn Brand Steve Wynn has consistently raised the bar in Las Vegas 1989 Caesars 1989 EBITDA US$100 million 1990 The Mirage 1990 EBITDA US$188 million 1998 The Mirage 1998 EBITDA US$176 million 1999 The Bellagio 1999 EBITDA US$260 million LTM EBITDA Wynn Las Vegas EBITDA $421 million Encore At Wynn 9

10 Property EBITDA Comparison In 3Q07, Wynn generated 61% more Property EBITDA per room than Bellagio and 137% more than Venetian $400 $350 Property EBITDA per room per day 20.6% $373 $125 Property EBITDA (3Q07) $300 $309 $271 (14.4%) $ $250 $200 ` $232 $195 (19.1%) $ $150 $ $100 Wynn Bellagio Venetian $50 Wynn Bellagio Venetian Rooms 2,716 3,933 4,027 10

11 Wynn Las Vegas Room Rate Comparison Average Daily Room Rate for Quarter ended September 30, 2007 (in US$) % % 5.9% 3.4% % Wynn Bellagio Venetian Mandalay Mirage

12 Wynn Las Vegas Commands More than Fair Share of Market Wynn has 5.3% of tables and 17.7% market share Wynn has 3.9% of total slot machines and 5.4% market share 18.0% 17.7% (YTD to Sept. 2007) 13.0% 8.0% 5.3% 5.4% 3.9% 3.0% Tables Slots % of Units Market Share 12

13 Strategic location Wynn has 240 Acres on the Las Vegas Strip located between two of the top 10 trade show hosts in the country Flamingo Rd Bill s Flamingo Harrah s Imperial Palace Koval Land 18 acres Venetian Sands Expo 2.3 mm sf (a) 1.0 mm sf (b) The Mirage Sands Ave TI Palazzo Spring Mtn. Rd Wynn Las Vegas 55 acres Golf Course 142 acres Fashion Show Mall Total Wynn Property 240 Acres 217 total acres Encore 20 acres Trump Plaza Las Vegas Blvd Desert Inn Rd Convention Ctr Dr Echelon Industrial Road Circus-Circus 3,000 ft on Paradise Rd Paradise Rd Las Vegas Convention Center (2.2 mm ft 2 ) Wynn Resorts (WYNN) 239 acres Convention center and Sands Expo Other sites (a) (b) 2.3 million square feet includes 450,000 sf of new space at the Palazzo 1.0 mm square feet of the LVS Sands Expo Center in development near Wynn s Koval Land 13

14 Encore Progress Encore

15 Encore at Wynn Las Vegas Ground breaking on April 28, 2006 and opening expected in early 2009 Budget of $2.2 billion ($776 million spent through 3Q 2007) 2,034 units range in size and amenities from executive suites to duplex sky villas and penthouses Product will be superior to Wynn Las Vegas New layer of product offering to satisfy strong demand for Wynn product Approximately 72,000 square foot casino Additional convention and meeting space Several restaurants and nightclubs Swimming pools, a spa and salon, and retail outlets 15

16 Wynn Macau

17 Wynn Macau Opened September 6,

18 Wynn Macau Phase I Opened September 6, 2006 Strategic location Signature building with 600 rooms Spa and entertainment facility Water feature Expansion on Dec 24, 2007 Retail: 11 new stores including Zegna, Ferrari, Gucci, Hermes, and others = Total 22 stores Entrance feature Additional casino space Total = 390 tables and 1,190 slot machines 5 Restaurants 18

19 Wynn Macau Results First Nine Months of 2007 Revenues of $1 billion in first nine months of 2007 Going Forward. Property EBITDA of $265 million ($323 million in the last twelve months) Average Daily Rate of $ % Hotel Occupancy Win/slot/day = $476 (vs. $257 in Las Vegas) More gaming and retail capacity being added Marketing ramp-up Understanding the customer Property improvements Win/table/day = $16,478 (vs. $10,918 in Las Vegas) 19

20 Macau Strategy Best property in the best location Segment the market VIP Target the Premium Player throughout Asia Water Feature Hotel Wynn Macau Expansion Front Feature Attract customer who didn t use to come to Macau Utilize Wynn Las Vegas database for cross marketing opportunities Swimming Pool Link Theatre Mass Market Capture Premium Mass Market Attract higher yielding customer Main Casino Back of House Diamond Suites Capitalize on concession value Develop additional resorts 20

21 Wynn Macau Exceeding Expectations 3Q 2007 Slot Win/Unit/Day Table Win/Unit/Day 3Q Win/Slot/Day $600 $500 $400 $300 $200 $100 $0 $457 Wynn Macau $96 Market Average 3Q Win/Table/Day $20,000 $15,000 $10,000 $5,000 $0 $16,686 Wynn Macau $6,619 Market Average 4Q Five Star Hotel Occupancy 100% 90% 80% 70% 60% 50% Occupancy Rate 92% 75% Wynn Macau Market Average 21

22 Wynn Macau is growing the market Visitation and Gaming Revenue growth accelerated significantly since Wynn Macau Opened on September 6, 2006 Visitation Growth Gaming Revenues 30% 23% 20% 15% 50% 40% 45% 10% 30% 20% 14% 0% Jan-August 06 Sept 06 - Sept 07 10% 0% Jan-August 06 Sept 06 - Sept 07 22

23 Macau Gaming Market Macau gaming revenue is projected to double by 2010 Macau Gaming Revenue 12.0 Est CAGR = 9% (in $US billions) CAGR = 21% CAGR = 17% E 2010E Source: Gaming Inspection and Coordination Bureau 23

24 Asia a Developing Market The USA has 300 million people and generates US$30bn+ of gaming revenue North and Southeast Asia have 2 billion people and generate approximately US$11.5bn of gaming revenue 2005 Casino Revenue Comparison (US$ billions) USA Asia Source: Innovation Group. Asia includes Macau, Australia, South Korea, Cambodia, Malaysia and the Philippines. Gaming revenues for the US include commercial casinos only. 24

25 Quality Drives Demand Wynn s properties have been proven catalysts for growth Gaming Revenue and Visitor Volume (1) Revenue ($ in billions) November 1989: Opening of The Mirage October 1993: Opening of Treasure Island October 1998: Opening of Bellagio April 2005: Opening of Wynn Las Vegas Visitor volume (in millions) $7 45 $6 $5 $4 $3 $2 $1 $ % Growth in Gaming Revs Revenue Visitor Volume (1) Visitation based on all of Clark County. 25

26 Further Growth in Macau Wynn Diamond Suites: second hotel and other non-gaming amenities to complement Wynn Macau 40 floors total luxury suites and villas averaging approximately 1,000 square feet Two restaurants and additional retail space Two VIP casinos each with approximately games Budget of $550-$600 million Opening first half of 2010 Wynn Cotai: submitted application to the Government of Macau for a land concession for 52 acres on the Cotai Strip 26

27 Considerations Develop best product in each market Create diverse revenue stream with unparalleled features and amenities Maintain capital discipline, focus and flexibility Invest considerable planning and design before commencing construction Take advantage of favorable Las Vegas and Macau market fundamentals Leverage the Wynn brand Evaluate development opportunities in new markets 27