MARCH 2007
FORWARD LOOKING STATEMENTS This presentation contains statements regarding operating trends, future results, new projects, and other market, business and property trends that are forward-looking. We undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise. Actual results may differ materially from those projected in any forward-looking statement as a result of certain risks and uncertainties, including but not limited to those noted in our Form 10-K for the year ended December 31, 2006 and our other filings with the SEC. Please refer to the end of these presentation materials for additional important information regarding forward-looking statements included in these presentation materials. The financial information provided in this presentation uses non-gaap measures, such as Adjusted EBITDA, because that is what we use internally to measure the operating performance of our properties and our company and to evaluate our managers. Except as otherwise provided in this presentation, our latest public information provides reconciliations of these measures to financial information prepared in conformity with accounting principles generally accepted in the United States of America.
COMPANY OVERVIEW
COMPANY OVERVIEW Downtown Las Vegas Las Vegas Locals Central Region Atlantic City Las Vegas Strip
DIVERSE EBITDA DISTRIBUTION and CONSISTENT EBITDA GROWTH ($ in millions) ADJUSTED EBITDA by SEGMENT ADJUSTED EBITDA (1) (1) LTM DECEMBER 2006 Downtown LV Atlantic City 7.9% 13.6% LV Locals 40.4% $800 $600 $400 $259.1 $253.1 $426.9 $630.2 $636.9 Central Region 38.1% $200 $0 2002 2003 2004 2005 2006 (1) After corporate expense NOTE: Adjusted EBITDA is from continuing operations, and including BYD s share of Borgata operating income. A reconciliation of these non-gaap measures to GAAP measures is included at the end of these presentation materials.
RECENT HIGHLIGHTS Las Vegas Locals segment rebounds in fourth quarter 2006 In Central Region, Blue Chip shows continued strength and Treasure Chest stabilizes Downtown Las Vegas matches previous year s record performance Echelon Place scope finalized and groundbreaking set for Q2 Florida acquisition nears completion Second half 2007 rollout of company-wide branding initiative
DEVELOPMENT PIPELINE
OUTSTANDING GROWTH PIPELINE
THE WATER CLUB at BORGATA
THE WATER CLUB AT BORGATA $400 million expansion - Second hotel with 800 hotel rooms and suites - Separate porte cochere and front desk - Spa in the Sky - Additional meeting and retail space - Five swimming pools - Completion expected early 2008
BLUE CHIP EXPANSION Second hotel to include 300 room tower Spa and fitness center Additional dining and nightlife experiences New dramatic entrance and porte cochere $130 million Construction begins March 2007 Completion expected late 2008
BLUE CHIP EXPANSION
BLUE CHIP EXPANSION
DANIA JAI ALAI DEVELOPMENT Completed acquisition in March 2007 One of four pari-mutuels approved under Florida law to each operate 1,500 Class III slots Close proximity to major population centers of South Florida - Approximately two million people within 15 miles Adjacent to Fort Lauderdale International Airport and Broward County Convention Center Construction begins in second half 2007, with anticipated opening late 2008
DANIA JAI ALAI OVERVIEW
BOYD FLORIDA DEVELOPMENT Pompano Park Harness Racetrack Seminole Hard Rock Hollywood Greyhound Park (Mardi Gras Racetrack and Gaming Center) Gulfstream Park
ECHELON BEGINS
ECHELON BEGINS
ECHELON 87 acres located at the heart of the emerging north corridor of the Las Vegas Strip 65 acres for Echelon Place 22 acres for additional development Leading construction and design firms include: Tishman Construction BLT Architects Dougall Design Associates Lawrence Lee Associates Hirsch Bedner Associates Jeffrey Beers International Superior vehicular and pedestrian access with seven arrival points
ECHELON Five distinct hotels Echelon resort brand Echelon suite brand Shangri-La Hotel, Las Vegas Delano Las Vegas Mondrian Las Vegas 140,000 sq ft casino 750,000 sq ft convention and meeting space 300,000 sq ft retail promenade Two major entertainment venues operated by AEG Live 30 dining and nightlife venues
ECHELON
ECHELON
ECHELON
ECHELON PROJECT SCHEDULE Demolition March 2007 Begin construction June 2007 Completion Q3 2010
FINANCIAL OVERVIEW
FINANCIAL STRENGTHS Financial flexibility derived from current moderate leverage levels plus strong internally generated funds Total leverage approximately 3.3x Borgata provides meaningful cash distributions Corporate credit ratings are Ba2 and BB Expected rapid deleveraging after Echelon opens
CAPITALIZATION ($ in millions) 12/31/2006 BANK REVOLVER DUE 2010 $ 486 BANK TERM LOAN DUE 2011 487 8.75% SENIOR SUB NOTES DUE 2012 250 7.75% SENIOR SUB NOTES DUE 2012 300 6.75% SENIOR SUB NOTES DUE 2014 350 7.125% SENIOR SUB NOTES DUE 2016 250 OTHER 14 TOTAL DEBT $2,137
BOYD GAMING TODAY High quality and well-positioned assets in key markets Strong cash flows from diverse operations Significant real estate value Current growth initiatives expected to deliver strong results Seasoned management team with significant ownership