1Q18 RESULTS PRESENTATION May 2018 1 Disclaimer Safe Harbor - - PowerPoint PPT Presentation

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May 2018

1Q’18 RESULTS PRESENTATION

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Disclaimer

Safe Harbor Statement This presentation contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors

• r employees to third parties. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking
• statements. Forward-looking statements involve inherent risks and uncertainties and a number of factors could cause actual results to differ materially from

those contained in any forward-looking statement. These factors include, but are not limited to, (i) growth of the gaming market and visitation in Macau and the Philippines, (ii) capital and credit market volatility, (iii) local and global economic conditions, (iv) our anticipated growth strategies, (v) gaming authority and

• ther governmental approvals and regulations and (vi) our future business development, results of operations and financial condition. In some cases, forward-

looking statements can be identified by words or phrases such as "may", "will", "expect", "anticipate", "target", "aim", "estimate", "intend", "plan", "believe", "potential", "continue", "is/are likely to" or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the SEC. All information provided in this presentation is as of the date of this presentation and the Company undertakes no duty to update such information, except as required under applicable law. This presentation contains non-GAAP financial measures and ratios that are not required by, or presented in accordance with, U.S. GAAP, including Adjusted property EBITDA and Adjusted EBITDA. The non-GAAP financial measures may not be comparable to other similarly titled measures of other companies since they are not uniformly defined and have limitations as analytical tools and should not be considered in isolation or as a substitute for U.S. GAAP measures. Non-GAAP financial measures and ratios are not measurements of our performance under U.S. GAAP and should not be considered as alternatives to any performance measures derived in accordance with U.S. GAAP or any other generally accepted accounting principles. Reconciliations of such non-GAAP financial measures and ratios to their most directly comparable financial measures and ratios are included in our earnings releases that have been furnished with the SEC and are also available on our Investor Relations website at http://ir.melco-resorts.com.

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214 170 208 11 25 25 68 91 110 61 54 59 27.8% 25.7% 30.9%

• 4.0%

8.0% 12.0% 16.0% 20.0% 24.0% 28.0% 32.0%

• 50

100 150 200 250 300 350 400 450 500 1Q'17 4Q'17 1Q'18 City of Dreams Manila (US$m) Studio City (US$m) Altira + Mocha (US$m) City of Dreams (US$m)

• Adj. Property EBITDA Margin (%, Right-axis)

353 340 402

1Q 2018 Earnings Summary

Group-wide Adjusted Property EBITDA strength underpinned by Studio City and Altira Macau

Source: Company filings Notes: 1. “Adjusted Property EBITDA” is earnings before interest, taxes, depreciation, amortization, pre-opening costs, development costs, property charges and other, share-based compensation, payments to the Philippine Parties under the cooperative arrangement (the “Philippine Parties”), land rent to Belle Corporation, Corporate and Other expenses and other non-operating income and expenses 2. Adjusted Property EBITDA margin is adjusted Property EBITDA divided by net revenue

Total Adjusted Property EBITDA & Adjusted Property EBITDA Margin(1) (2)

• 1Q Net Revenue of US$1,313 million, up 3% y-y
• 1Q Adjusted Property EBITDA of US$402 million, up 14% y-y,

mainly attributable to higher contribution from Studio City and Altira Macau driven by increased gross gaming revenues in all gaming segments.

• City of Dreams’ adjusted EBITDA declined 3% y-y to US$208

million

• Studio City delivered 62% y-y increase in adjusted EBITDA which

was primarily a result of better performance in all gaming segments

• Morpheus (with ~770 hotel rooms) is expected to open in 2Q18,

with the intention to solidify City of Dreams’ leadership position in Macau’s premium segment

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11 11 1 25 25 214 175 246 170 208 68 81 96 91 110 61 63 57 54 59 (32) (36) (34) (35) (22) (50)

• 50

100 150 200 250 300 350 400 450 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18 Corporate and Others Expenses City of Dreams Manila Studio City City of Dreams Altira + Mocha 321 293 366 305 380

Melco Adjusted EBITDA 1Q 2018

Adjusted EBITDA grew 19% y-y

Melco Adjusted EBITDA Breakdown (US$ million)(1) Melco Adjusted EBITDA Growth Breakdown(1)

Source: Company filings Note: 1. “Adjusted EBITDA” is earnings before interest, taxes, depreciation, amortization, pre-opening costs, development costs, property charges and other, share-based compensation, payments to the Philippine parties under the cooperative arrangement (the “Philippine Parties”), land rent to Belle Corporation and other non-operating income and expenses

• Vs. 4Q 2017
• Vs. 1Q 2017

Altira + Mocha +0% +131% City of Dreams +23%

• 3%

Studio City +20% +62% Total Macau Property EBITDA +20% +17% City of Dreams Manila +9%

• 4%

Corporate and Other Expenses

• 38%
• 34%

Total Adjusted EBITDA +25% +19%

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214 175 246 170 208 30.8% 27.2% 34.4% 27.7% 32.5% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 50 100 150 200 250 300 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18 Adjusted EBITDA (US$m) Adjusted EBITDA margin (%, right-axis)

City of Dreams 1Q 2018

Adjusted EBITDA declined 3% y-y

City of Dreams Adjusted EBITDA and Adjusted EBITDA margin(1) (2) City of Dreams Key Operating Metrics (US$m, unless

• therwise stated)

1Q 2018

• Vs. 4Q 2017
• Vs. 1Q 2017

VIP Rolling Chip 11,101

• 3%
• 12%

VIP win rate (%) 3.02% +31bps +30bps Mass Table Drop 1,182

• 4%

+12% Mass Table Hold % 32.1% +349bps

• 473bps

VIP GGR 336 +8%

• 3%

Mass GGR 380 +8%

• 3%

Slots GGR 50 +5% +41% Total GGR 765 +8%

• 1%

Total Net Revenue 640 +5%

• 8%

Adjusted EBITDA 208 +23%

• 3%

Source: Company filings Note: 1. “Adjusted EBITDA” is earnings before interest, taxes, depreciation, amortization, pre-opening costs, development costs, property charges and other, share-based compensation, payments to the Philippine parties under the cooperative arrangement (the “Philippine Parties”), land rent to Belle Corporation and other non-operating income and expenses. 2. “Adjusted EBITDA margin” is adjusted EBITDA divided by net revenue

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68 81 96 91 110 24.4% 24.3% 24.9% 24.8% 29.9% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%

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40 60 80 100 120 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18 Adjusted EBITDA (US$m) Adjusted EBITDA margin (%, right-axis)

Studio City 1Q 2018

Adjusted EBITDA grew 62% y-y

Studio City Adjusted EBITDA and Adjusted EBITDA margin(1) (2) Studio City Key Operating Metrics (US$m, unless

• therwise stated)

1Q 2018

• Vs. 4Q 2017
• Vs. 1Q 2017

VIP Rolling Chip 6,631 +16% +87% VIP win rate (%) 2.68%

• 9bps

+30bps Mass Table Drop 825

• 3%

+26% Mass Table Hold % 27.4% +133bps +104bps VIP GGR 178 +12% +110% Mass GGR 226 +2% +31% Slots GGR 21

• 4%

+15% Total GGR 426 +6% +54% Total Net Revenue 368 0% +33% Adjusted EBITDA 110 +20% +62%

Source: Company filings Note: 1. “Adjusted EBITDA” is earnings before interest, taxes, depreciation, amortization, pre-opening costs, development costs, property charges and other, share-based compensation, payments to the Philippine parties under the cooperative arrangement (the “Philippine Parties”), land rent to Belle Corporation and other non-operating income and expenses 2. “Adjusted EBITDA margin” is adjusted EBITDA divided by net revenue

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4 5

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17 18 3.4% 4.7%

• 6.3%

12.4% 15.0%

• 8.0%
• 6.0%
• 4.0%
• 2.0%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% (10) (5)

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10 15 20 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18 Adjusted EBITDA (US$m) Adjusted EBITDA margin (%, right-axis)

Altira 1Q 2018

Adjusted EBITDA grew 385% y-y

Altira Macau Adjusted EBITDA and Adjusted EBITDA margin(1) (2) Altira Key Operating Metrics (US$m, unless

• therwise stated)

1Q 2018

• Vs. 4Q 2017
• Vs. 1Q 2017

VIP Rolling Chip 5,581 +15% +35% VIP win rate (%) 3.05%

• 26bps
• 1bps

Mass Table Drop 139 +11% +40% Mass Table Hold % 19.4% +95bps

• 120bps

VIP GGR 170 +6% +35% Mass GGR 27 +17% +32% Slots GGR 1 +14% +201% Total GGR 199 +7% +35% Total Net Revenue 120

• 14%

+10% Adjusted EBITDA 18 +3% +385%

Source: Company filings Note: 1. “Adjusted EBITDA” is earnings before interest, taxes, depreciation, amortization, pre-opening costs, development costs, property charges and other, share-based compensation, payments to the Philippine parties under the cooperative arrangement (the “Philippine Parties”), land rent to Belle Corporation and other non-operating income and expenses. 2. “Adjusted EBITDA margin” is adjusted EBITDA divided by net revenue

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61 63 57 54 59 38.8% 35.7% 38.6% 32.1% 41.4% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0%

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20 30 40 50 60 70 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18 Adjusted EBITDA (US$m) Adjusted EBITDA margin (%, right-axis)

City of Dreams Manila 1Q 2018

Adjusted EBITDA declined 4% y-y

City of Dreams Manila Adjusted EBITDA and Adjusted EBITDA margin(1) (2) City of Dreams Manila Key Operating Metrics (US$m, unless

• therwise stated)

1Q 2018

• Vs. 4Q 2017
• Vs. 1Q 2017

VIP Rolling Chip 2,772

• 4%

+14% VIP win rate (%) 2.88%

• 18bps
• 51bps

Mass Table Drop 188

• 1%

+22% Mass Table Hold % 33.8% +287bps +507bps VIP GGR 80

• 9%
• 3%

Mass GGR 64 +9% +44% Slots GGR 46 +5% +2% Total GGR 190 0% +11% Total Net Revenue 142

• 15%
• 10%

Adjusted EBITDA 59 +9%

• 4%

Source: Company filings Note: 1. “Adjusted EBITDA” is earnings before interest, taxes, depreciation, amortization, pre-opening costs, development costs, property charges and other, share-based compensation, payments to the Philippine parties under the cooperative arrangement (the “Philippine Parties”), land rent to Belle Corporation and other non-operating income and expenses. 2. “Adjusted EBITDA margin” is adjusted EBITDA divided by net revenue

9 8.8 28.9 47.3 62.1 91.1 115.2 135.7 143.5 147.3 148.6 16.5 20.6 24.7 29.0 34.4 42.7 48.3 52.5 51.7 47.6 30.0 31.6 33.0 34.5 34.9 35.0 35.2 35.4 36.0 36.5 55.4 81.1 105.0 125.6 160.3 192.9 219.2 231.4 235.0 232.7

• 50.0

100.0 150.0 200.0 250.0 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18 Belle Corp. PLC Melco

City of Dreams Manila – Adjusted EBITDA breakdown

Growing share of Adjusted EBITDA from City of Dreams Manila

Share of Adjusted EBITDA (Trailing 12 Months, US$ million)(1)

Source: Melco Resorts Notes: 1. Based on company filings; Premium Leisure Corporation’s (PLC) share represents payments made to the Philippine Parties while Belle Corporation’s share represents cash payments made to Belle Corporation for building and land rent

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APPENDIX

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10 9 14 19 21 209 177 219 195 206 72 75 85 106 112 54 56 55 58 64 (32) (36) (34) (35) (22) (50)

• 50

100 150 200 250 300 350 400 450 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18 Corporate and Others Expenses City of Dreams Manila Studio City City of Dreams Altira + Mocha 313 280 339 343 382

Melco Adj. EBITDA (assuming normalized VIP win rate) 1Q 2018

Adjusted EBITDA (Normalized for Hold) grew 22% y-y

Melco Adjusted EBITDA (Normalized for Hold) Breakdown (US$ million)(1)(2) Melco Adjusted EBITDA (Normalized for Hold) Growth Breakdown(1)

• Vs. 4Q 2017
• Vs. 1Q 2017

Altira + Mocha +10% +102% City of Dreams +6%

• 1%

Studio City +6% +55% Total Macau Property EBITDA +6% +16% City of Dreams Manila +11% +18% Corporate and Other Expenses

• 38%
• 34%

Total Hold-Adjusted EBITDA +11% +22%

Source: Melco Resorts Note: 1. “Adjusted EBITDA” is earnings before interest, taxes, depreciation, amortization, pre-opening costs, development costs, property charges and other, share-based compensation, payments to the Philippine parties under the cooperative arrangement (the “Philippine Parties”), land rent to Belle Corporation and other non-operating income and expenses 2. Normalized VIP win rate is assumed to be 2.85%, which represents the midpoint of our expected rolling chip win rate. Melco Adjusted EBITDA (Normalized for Hold) is an estimate and is for illustrative purpose only

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Melco: Table Yield Analysis

Continue to optimize table allocation across our portfolio of Integrated Resorts

Average number of VIP Gaming Tables

Source: Melco Resorts

Daily Average Win Per VIP Table (US$) Average number of Mass Gaming Tables Daily Average Win Per Mass Table (US$) 1Q’17 2Q’17 3Q’17 4Q’17 1Q’18 Altira 75 69 62 64 65 City of Dreams 147 147 143 145 145 Studio City 35 39 45 46 46 City of Dreams Manila 105 109 116 115 117 1Q’17 2Q’17 3Q’17 4Q’17 1Q’18 Altira 18,690 20,647 19,206 27,280 29,260 City of Dreams 26,024 26,907 30,033 23,287 25,710 Studio City 27,309 43,591 48,841 37,953 43,273 City of Dreams Manila 8,700 11,395 6,921 8,298 7,600 1Q’17 2Q’17 3Q’17 4Q’17 1Q’18 Altira 39 39 39 39 39 City of Dreams 333 334 333 334 333 Studio City 247 248 246 247 248 City of Dreams Manila 165 169 175 176 177 1Q’17 2Q’17 3Q’17 4Q’17 1Q’18 Altira 5,857 3,925 4,924 6,397 7,667 City of Dreams 13,024 11,455 12,054 11,425 12,660 Studio City 7,788 7,875 8,255 9,736 10,141 City of Dreams Manila 2,971 3,148 3,240 3,623 3,983

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31.6 34.5 33.9 31.1 29.2 32.7 31.7 33.4 39.8 36.0 40.6 42.7 35.3 27.4 31.7 28.4 21.2 19.0 21.2 23.8 22.4 19.0 19.9 26.0 26.9 30.0 23.3 25.7

• 5.0

10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18 8.5 9.0 9.9 11.9 11.2 11.0 13.8 15.5 16.4 18.2 20.5 18.5 18.1 18.3 16.0 14.2 12.5 13.3 13.0 12.3 11.5 12.3 13.2 13.0 11.5 12.1 11.4 12.7

• 5.0

10.0 15.0 20.0 25.0 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18

City of Dreams Daily GGR Per Table

City of Dreams: Daily Average GGR per VIP Table (US$ ‘000)

Source: Melco Resorts

City of Dreams: Daily Average GGR per Mass Table (US$ ‘000)

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• 1,000

2,000 3,000 4,000 5,000 1Q'11 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18 Mass Gross Gaming Revenue VIP Gross Gaming Revenue (40)% (20)%

• 20%

40% 60% 80% 100%

• 200

400 600 800 1,000 1,200 1,400 1,600 1Q'11 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18 Adjusted Property EBITDA YoY% (Right-axis)

• 5%

10% 15% 20% 25% 30% 1Q'11 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18 (30)% (20)% (10)%

• 10%

20% 30% 40% 50%

• 1,000

2,000 3,000 4,000 5,000 6,000 1Q'11 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18 Net Revenue YoY% (Right-axis)

Melco: Historic Revenue and Adjusted Property EBITDA

Melco’s Macau Mass GGR has already surpassed the previous peak level in 3Q’14

Melco: Last 12 months Total Net Revenue (US$ million) Melco: Last 12 months Total Adjusted Property EBITDA margin Melco: Last 12 months Total Adjusted Property EBITDA (US$ million) Melco: Last 12 months Macau-only VIP & Mass GGR (US$ million)

Source: Company Filings Notes: 1. “Adjusted Property EBITDA” is earnings before interest, taxes, depreciation, amortization, pre-opening costs, development costs, property charges and other, share-based compensation, payments to the Philippine Parties, land rent to Belle Corporation, net gain on disposal of property and equipment to Belle Corporation, Corporate and Other expenses and other non-operating income and expenses. 2. Adjusted Property EBITDA margin is adjusted Property EBITDA divided by net revenue

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City of Dreams Macau Phase 3

Countdown to Morpheus

Actual Image Source: Melco Resorts

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Morpheus: Atrium

Rendered Images Source: Melco Resorts

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Morpheus: Alain Ducasse restaurant

Rendered Image Source: Melco Resorts

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Morpheus: Sky bridge

Rendered Image Source: Melco Resorts

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Morpheus: Standard room

Actual Images Source: Melco Resorts

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Morpheus: Pool villa and sky pool

Rendered Images Source: Melco Resorts

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Morpheus: Duplex villas

Rendered Images Source: Melco Resorts

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THANK YOU