ISI Group Annual Conference February 15, 2011
CURRENT LAS VEGAS MARKET TRENDS (Full Year 2010) Visitation Up 2.7% Las Vegas Strip Gaming Revenues Up 4.1% Airline Passengers Down 1.8% Auto Traffic Up 3.1%
CURRENT MGM TRENDS International Gaming Volumes Remain Strong National Gaming Volumes Challenged Convention Mix Improving Year Over Year Luxury Properties Leading Indicator Customer Spend Remains Constrained Pockets Of Strength In Customer Spend Around Events
CONVENTION TRENDS LVCVA - 10% Increase In Convention Attendance (2011 YOY) CBRE - Demand Increasing As Much As 10-30% (2011 YOY) 2011 Pace Up Double Digits Year Over Year Increase In Last Minute Bookings As The Mix Improves We Expect To See Ancillary Revenue
LAS VEGAS ROOM INVENTORY Room Inventory Inventory % Change 160,000 15% 120,000 10% 80,000 5% 40,000 0% 0 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011E Source: LVCVA -5%
M life Players Club M life Privileges M life Magazine/TV M life Partnerships M life Credit/Gift Cards M life Cross Property
M LIFE LAUNCHED IN LAS VEGAS New Players Club Launched Fall 2010 In Regions And 1Q11 In Las Vegas 60M In Database, 29M Current Players Club Customers New Players Club Will Be Transparent, Accessible, Aspirational ESS Partnership - First Step Into Database Analytics Early Signs Of Success: 700k Enrollments To Date 150k Re-engaged Customers
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SIGNIFICANT OPERATING LEVERAGE Las Vegas - 54M Annual Room Nights MGM Resorts - 12M Annual Room Nights Using 90% Occupancy 1% In Occupancy = Approx. $40M EBITDA $1 Incremental Rate Increase = Approx. $10M EBITDA $5 Increase In RevPOR = $40M EBITDA
MGM HOSPITALITY Current Development Pipeline Marrakech Announced Agreements Cairo Sharm El Sheikh Tianjin New Delhi Chengdu Dubai Abu Dhabi Sanya
DIAOYUTAI ART HOTEL - BEIJING
3 Ring Road 2 Ring Road 1 Ring Road Diayuotai Art Hotel Forbidden City
MGM GRAND - SANYA
MGM GRAND - SANYA
Shanghai Sanya 1 Hour Flight
RECENT DEVELOPMENTS Capital Markets: Raised Approximately $1B In Equity & Unsecured Debt Paid Down The Non-extending Portion Of Our Credit Facility Extended $3.6B Credit Facility Into 2014 Cash And Revolver Availability To Cover Debt Maturities Into 2013 Borgata: Received Offer For 50% Interest In Borgata ($188M Already In Trust) Sold Four Leases & Underlying Property For Approximately $71M MGM Macau: Entered Into A New $950M Credit Facility Filed A1 With The HKSE On September 27th Received $192 Million Repayment From MGM Macau In 4Q10 Representing Full Repayment Of Its Interest & Non-interest Bearing Notes To That Entity CityCenter: Issued $900m Of Senior Secured Notes & $600m Of Senior Secured Second Lien PIK Toggle Notes Received $73m In Equity Contributions From JV Members Amended Restated Previous Credit Facility
TOOLS TO DE-LEVERAGE Significant Operating Leverage Benefits Free Cash Flow Macau Joint Venture Borgata Trust: (1) Trust Account Balance: $188M at December 31st Borgata Sale of MGM s 50% Interest Distributions from Joint Ventures MGMH - Utilizing Brands & Management Opportunities (1) MGM Resorts is the sole economic beneficiary of the Borgata Trust. Any and all proceeds will be released from the trust account upon completion of the sale of our Borgata interest.
INVESTMENT HIGHLIGHTS Significantly Improved Liquidity Profile Strong Portfolio Of Assets With Growing Presence In Macau High Degree Of Leverage In Operating Model Drives Ability to Generate Strong Free Cash Flow Cut $700M In Costs & Expense Structure Well Positioned To Grow Margins As Revenues Improve Minimum Forward Capital Requirements Proven Track Record As The Premier Gaming Operator
SAFE HARBOR PROVISION Statements within this presentation which are not historical facts are forward-looking statements and "safe harbor statements" under the Private Securities Litigation Reform Act of 1995 that involve risk and/or uncertainties, including but not limited to financial projections, state and federal regulations, construction activities and other risk described in the companyʼs public filings with the Securities Exchange Commission.