MGM Resorts International I nvestor Presentation First Quarter 2 0 1 7 Earnings April 27, 2017
Forw ard-Looking Statem ents 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, the Company’s expectations regarding future results (including REVPAR and other guidance), the payment of any future cash dividends on the Company’s common stock, its ability to generate future cash flow growth and to execute on future development and other projects (including the opening of MGM COTAI), amounts the Company expects to spend capital expenditures and investments, and the Company’s ability to execute its strategic plans and improve its financial flexibility. These forward-looking statements involve a number of risks and uncertainties. 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. Market and I ndustry Data This presentation also contains estim ates and information concerning the Company’s industry and peers, including market position and fair share information, that are based on industry publications, reports and peer company public filings. This information involves a number of assumptions and limitations, and you are cautioned not to rely on or give undue weight to this information. The Company has not independently verified the accuracy or completeness of the data contained in these industry publications, reports or filings. The industry in which we operate is subject to a high degree of uncertainty and risk due to variety of factors, including those described in the “Risk Factors” section of the Company’s public filings with the SEC. Note Regarding Presentation of Non-GAAP Financial Measures This presentation includes certain “non-GAAP financial measures” as defined in Regulation G under the Securities Exchange Act of 1934, as amended, including Adjusted EBITDA, Adjusted Property EBITDA, and Same-store Adjusted Property EBITDA and Adjusted Property EBITDAR. Schedules that reconcile the non-GAAP financial measures to the m ost directly comparable financial measures calculated and presented in accordance with Generally Accepted Accounting Principles in the United States are included in our earnings releases that have been furnished with the SEC and are available on our website at www.mgmresorts.com. In addition, the following presentation contains a range for projected Adjusted EBITDA margins for the 2017 fiscal year. The Company is unable to provide a quantitative reconciliation of projected Adjusted EBITDA (which it would use to calculate the margins) to net income (loss) because the Company cannot reliably forecast gains or losses on sale or consolidation transactions, accelerated depreciation, impairment charges, gains or losses on retirement of debt and variations in effective tax rate, which are difficult to predict and estimate and are primarily dependent on future events. Please note that the unavailable reconciling items could significantly impact the Company’s future financial results. This presentation also contains projected Adjusted EBITDA as reported by securities analysts. The Company is unable to provide a quantitative reconciliation of the projected Adjusted EBITDA to net income (loss) because this information was generated by analysts and is not based on management models or internal financial information. The Company is providing this information solely to demonstrate what management of the Company believes to be a market anomaly and the Company is not claiming the calculated values would be realized in a sale of the assets or businesses reference, nor do the calculations reflect any impact of taxes, control premiums or other factors that could affect the net value realized by the Company in such a transaction. Rather, the Company is presenting its analysis of publicly available reports prepared by securities analysts (without endorsing nor adopting any of the views, analysis or analytical methodologies utilized by these analysts, which differ from the Company’s and which differences could be material) and stock trading prices for other publicly traded gaming companies that suggest that there is a significant difference of implied valuations between the Company’s domestic gaming business and its peer group. The Company’s actual results may differ materially from the projections reported by securities analysts.
ABOUT MGM RESORTS INTERNATIONAL 1Q 2017 FINANCIAL RESULTS MARKET OUTLOOK CHANGING THE FABRIC OF OUR COMPANY POSITIONED TO OUTPERFORM
MGM RESORTS, WHERE THE WORLD COMES TO PLAY 3.9 million 2.0+ 27 SF million sf Resort destinations convention space 28,00 1,80 casino space 48,00 15 18,000 + 0+ 0+ Brands 0+ Conventions / meetings per year SLOT TABLE Rooms & MACHINES GAMES 470+ 25+ Suites Food, beverage and Arena AND club experiences entertainment venues 330 + 7,700+ Retail experiences Shows per year
RESORT DESTINATIONS, AWARD WINNING BRANDS Note: Third-party logos are trademarks of their respective owners 5
MGM RESORTS ORGANIZATIONAL STRUCTURE MGM Resorts I nternational (NYSE: MGM) 1Q 2017 Diluted EPS: $0.36 Ow ned MGM Grow th MGM China CityCenter Other Properties (“MGP”) Holdings Lim ited Holdings Ow ned Properties Las Vegas Arena (76% ownership) (56% ownership) (50% ownership) Bellagio, MGM Grand LV, Com pany ( 4 2 .5 % ) Circus Circus LV, (NYSE: MGP) (HKSE: 2282 HK) MGM National Harbor T-Mobile Arena Developm ent Diaoyutai MGM MGM Springfield Hospitality ( 4 9 % ) (Opening Sept 2018) MGM Grand Sanya, Diaoyutai Hotel Hangzhou, Leased 1 ( “OpCo”) Properties Diaoyutai Hotel Chengdu, Aria Bellagio Shanghai Vdara Publicly Traded REI T 1 Leased 1 Properties (Opening 2017) Mandarin Oriental Properties Mandalay Bay, The Mirage, Luxor, Excalibur, New MGM MACAU Elgin Riverboat Resort York-New York, Monte ( 5 0 % ) Developm ent Carlo, The Park, MGM MGM COTAI Grand Detroit, Beau Grand Victoria – Elgin, I L (Opening Late 2017) Rivage, Gold Strike Tunica, Borgata 6 1 MGM Growth Properties owns the properties leased by MGM Resorts International
MGM GROWTH PROPERTIES 1 . Structure Today (76% ownership of OP) 3 . Long Term Strategy Dividends • Maintain controlling ownership stake MGM has 76% economic MGM MGM ownership of the OP – Natural dilution as MGP grows via third Rent Resorts (Operating Partnership) Grow th party transactions Properties MGP is 100% consolidated in Operating MGM’s financial statements 1 Public • Unique vehicle for growth given lower cost Partnership Shareholders of capital / superior balance sheet Dividends • Structure allows for transactions that are accretive for both MGM Resorts and MGP 2 . Rationale (e.g. Borgata) • Created in April 2016 to maximize MGM Resorts’ real • Potential for accelerated return on estate valuation investment with ROFO 4 properties • Addressed MGM Resorts’ near-term debt maturities – MGM National Harbor – MGM Springfield • Reduced MGM Resorts net leverage by almost a turn 2 • MGM Resorts has generated significant value as a result of • Receipt of dividends from economic its ownership interest in MGP ownership mitigates rental expense - MGP total shareholder return 3 of 42% since IPO 1 As a result of our ownership of MGP’s Class B share 2 Refer to 1Q 2016 Earnings Presentation dated 5/ 5/ 16: Consolidated net leverage from 5.5x to 4.7x (Pro Forma 3/ 31/ 16) 7 3 Trailing stock performance as of 4/ 26/ 17 and includes dividends; Source: Bloomberg 4 Right of first offer
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