DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE September 28, 2016 Dan - - PowerPoint PPT Presentation

DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE

September 28, 2016

Dan D’Arrigo

EVP & Chief Financial Officer MGM Resorts International

MGM RESORTS INTERNATIONAL

Strong Domestic Operating Results Las Vegas Trends Maximizing Regional Market Share Executing Key Strategic Initiatives Continued Stabilization Of Macau Market Development Pipeline Nearing Completion

LAS VEGAS STRIP TRENDS

✓ Visitation +2%


From Record 42.3 million visitors in 2015

✓ McCarran Passengers +5% 
 From Near Record in 2015 ✓ RevPAR +7%
 Average daily room rate +5% ✓ Strength in Meetings and Convention Business


Citywide convention attendance +14%

✓ Gross gaming revenue +1%

Year-To-Date July 2016

MGM RESORTS - LAS VEGAS STRIP

Operating Results: Net Revenue +2% To $2.8 Billion Adjusted Property EBITDA +19% To $839 Million Margins +420 Basis Points To 30.4% Strong Convention Calendar Leader In Entertainment Opened T-Mobile Arena And The Park

Year-To-Date June 30, 2016

T-MOBILE ARENA

Opened April 2016

Opening Late 2016

THE PARK THEATER

CITYCENTER

Operating Results1: Net Revenue +2% To $588 Million Adjusted EBITDA +18% To $170 Million Margins +407 Basis Points To 28.9% Completed $1.1 Billion Sale Of The Shops At Crystals Paid $1.1 Billion Dividend To Owners MGM Resorts Received $540 Million, Its 50% Share

1Resort Operations and excludes The Shops at Crystals

Year-To-Date June 30, 2016

U.S. REGIONALS

Operating Results - Adjusted Property EBITDA: MGM Grand Detroit +10% Beau Rivage +27% Gold Strike Tunica +15% Expanding East Coast Presence Acquired Remaining 50% Interest In Borgata Hotel Casino & Spa1

Year-To-Date June 30, 2016

1 Transaction closed August 1, 2016

PROFIT GROWTH PLAN: INCREASED TARGET TO $400 MILLION

Q2-15 Q3-15 Q4-15 Q1-16 Q2-16

$73 Million $67 Million $38 Million $33 Million

MGM Launches Profit Growth Plan

2017 Impact Goal: 
 $300 Million

Exceed 30% Adjusted Property EBITDA Margins

2016 Impact Goal: 
 $200 Million 2017 Impact Goal: 
 $400 Million

Adjusted EBITDA Impact – Improvement Over 2014 Baseline
 Domestic Resorts + 50% Of CityCenter

2016 Impact Goal: 
 $275 Million 2015 Impact: 
 $71 Million

MGM RESORTS - U.S. DOMESTIC

2013 2014 2015 YTD 2Q15 YTD 2Q16

Adjusted Property EBITDA Margin Adjusted Property EBITDA

$1,000 $848 $1,690 $1,518 $1,443 30% 26% 26% 24% 24% 24% 24% 26% 26% 30%

($ in millions)

Source: Company filings

Successful Execution Of Our Profit Growth Plan Has Driven Significant Margin Improvement At Our Domestic Resorts

MACAU MARKET DYNAMICS

Year-To-Date June 2016

Total Gross Gaming Revenue -11%

VIP Table Games -22%1 Mass Table Games +1%1

#1 Gaming Market In The World Room Supply Capacity Is Still Low Visitation Up, Driven By 8% Increase In Overnight Visitors

Penetration Remains Low

Infrastructure Projects

1Based on Company earnings releases and filings

MGM CHINA

Operating Results: Net Revenue -4% Quarter Over Quarter To $921 Million Adjusted EBITDA +4% Quarter Over Quarter $249 Million1 Margins Improved Both Year Over Year And Quarter Over Quarter To 27.1%1, Led By Premium Mass Over 80% Profitability From Mass Segment Paid $46 Million Dividend MGM Resorts Received $23 Million, Its 51% Share

Year-To-Date June 30, 2016

1 Before licensing fee

DEVELOPMENT PIPELINE

MGM National Harbor: Opening In Late 2016 MGM Cotai: Opening In 2Q 2017 Park MGM / NoMad in Las Vegas: Opening In Late 2017/2018 MGM Springfield: Opening in Late 2018

MGM NATIONAL HARBOR

Opening Late 2016

MGM NATIONAL HARBOR

Opening Late 2016

MGM COTAI

Opening 2Q 2017

MGM COTAI MGM COTAI

Opening 2Q 2017

MGM SPRINGFIELD

Opening Late 2018

MGM SPRINGFIELD

Opening Late 2018

RECENT STRATEGIC TRANSACTIONS

MGM Growth Properties Successful $1.2 Billion Initial Public Offering The Shops At Crystals Completed Of $1.1 Billion Sale CityCenter Dividends Received $540 Million Dividend, MGM’S 50% Share Borgata Hotel Casino & Spa Acquired Remaining 50% Interest, Sold Real Property To MGP MGM China Holdings Limited Increased Ownership +5% To 56%

POISED FOR CONTINUED BALANCE SHEET SUCCESS

Enhanced capital structure and flexible balance sheet Creates foundation for strong long-term growth Lower cost of debt1 Reduced from 7.7% to 5.7% since 2011 Reduced consolidated net leverage From 6.5x in 2011 to 4.8x 
 at 6/30/16 PF2

1 Based on weighted average cost of Consolidated MGM Resorts’ debt 2 Pro forma for events subsequent to 6/30/16 including the Borgata transaction

POSITIONED TO GENERATE MEANINGFUL FREE CASH FLOW

Organic Growth Through Operational Excellence 


Profit Growth Plan
 Dominant Position In Key Markets

Nearing Completion Of Significant Development Projects


Over $4 Billion Of Projects Open By 2017
 Newly Open Resorts Ramping

Successfully Executing On Strategic Opportunities

PATH TO INVESTMENT GRADE

Recent Upgrades: Moody’s: Two Notch Upgrade On 4/26/16 To Ba3 S&P: One Notch Upgrade On 8/4/16 To BB- Fitch: Two Notch Upgrade On 5/10/16 To BB

Moody's S&P Fitch Aaa AAA AAA Aa1 AA+ AA+ Aa2 AA AA Aa3 AA- AA- A1 A+ A+ A2 A A A3 A- A- Baa1 BBB+ BBB+ Baa2 BBB BBB Baa3 BBB- BBB- Ba1 BB+ BB+ Ba2 BB BB Ba3 BB- BB- B1 B+ B+ B2 B B B3 B- B- Caa1 CCC+ CCC+ Caa2 CCC CCC Caa3 CCC- CCC- Ca CC CC C C C

Current MGM Rating Trough MGM Rating

Investment Grade Non- Investment Grade

Q&A

SAFE HARBOR

Forward-Looking Statements Statements in this presentation that are not historical facts are “forward-looking” statements and “safe harbor statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and involve risks and/or uncertainties, including those described in MGM Resorts International’s (“MGM Resorts”) public filings with the Securities and Exchange Commission and the amendments thereto. MGM Resorts has based forward-looking statements

• n management’s current expectations and assumptions and not on historical facts. Examples of these statements include, but are not limited to, MGM

Resorts’ ability to generate future cash flow growth and to execute on future development and other projects, such as the Profit Growth Plan, the expected results of the Profit Growth Plan, MGM Resorts’ expectations regarding future financial results, the realization of any benefits from the MGP transactions and MGM Resorts’ ability to execute its strategic plan, improve its financial flexibility and achieve an investment grade rating. 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 MGM Resorts 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 MGM Resorts’ Form 10-K, Form 10-Q and Form 8-K reports (including all amendments to those reports). In providing forward-looking statements, MGM Resorts 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 MGM Resorts 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. Note Regarding Presentation of Non-GAAP Financial Measures The following presentation includes certain “non-GAAP financial measures” as defined in Regulation G under the Securities Exchange Act of 1934, as amended, including Adjusted EBITDA and Adjusted Property EBITDA. MGM Resorts’ Adjusted EBITDA and Adjusted Property EBITDA measures have limitations as analytical tools, and you should not consider them in isolation, or as a substitute for analysis of MGM Resorts’ results as reported under GAAP . Other companies in MGM Resorts’ industry may calculate these measures differently than MGM Resorts does, limiting their usefulness as comparative measures. Schedules that reconcile the non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with Generally Accepted Accounting Principles in the United States are included in MGM Resorts’ earnings releases that have been furnished with the SEC and are available on MGM Resorts’ website at www.mgmresorts.com.