CLSA Japan 2015: Bill Hornbuckle President

CLSA Japan 2015
Bill Hornbuckle
President
26 February 2015
Agenda
1. Who is MGM?
2. What is an Integrated Resort (IR)?
3. What are the benefits for Japan?
4. Responsible management of social
issues
Who Is MGM?
Who Is MGM?
Fortune 500 company with iconic brands known
worldwide
18 destination resorts in 5 jurisdictions worldwide
$10 billion in global revenue
62,000 employees worldwide
The Entertainment Leader with diverse revenue mix
across multiple business lines
Largest MICE/Convention Operator In Las Vegas
Luxury Properties
Aria MGM Grand Bellagio The Mansion
Mandalay Bay MGM Macau The Mirage

Mass and Regional Properties
Monte Carlo NY - NY Luxor Excalibur
MGM Detroit Beau Rivage Gold Strike Circus Circus

MGM Properties Snapshot
Resorts 18
Hotel Rooms 48,000
Total Area (Hectares, LV Strip) 300
Food & Beverage Outlets 350
Employees 62,000
MICE Space (m2) 300,000

Net Revenues
MGM Resorts MGM China
(USD Millions)
$9,810 $10,082
$10,000
$9,161
$7,849 $3,317 $3,282
$8,000 $2,808
$1,535
$6,000
$4,000
$6,314 $6,353 $6,493 $6,800
$2,000
$0
2011 2012 2013 2014
EBITDA
MGM Resorts MGM China
$2,500 (USD Millions)
$2,405
$2,283
$2,015
$2,000 $850
$814
$1,658
$679
$1,500 $360
$1,000
$1,469 $1,554
$1,298 $1,335
$500
$0
2011 2012 2013 2014
New Projects Under Development
What Is An IR?
What Is An Integrated Resort?
Large-scale mixed-use destination resort
Spectacular entertainment and WOW attractions
Dramatic architecture
MICE component important
Delivers significant economic benefits arising from

regional revitalization, increased tourism, jobs and
investment
Gaming space small portion of IR
Non-gaming activities account for 70% of revenues in

some markets
Entertainment
MICE
Food & Beverage
Hotel
Amenities & Attractions
CITYCENTER
A New Paradigm In Resort Design
What Are The Benefits
For Japan?
Increase
Partner With Showcase
Number Improve MICE
Japan Tourist Japanese
Overseas Performance
Attractions Content In IR
Visitors
Revitalize
Regional
Economies
Tourism Impacts on
Benefits SMEs & Local
Businesses
Japan
Economic Quality Jobs
Integrated
Benefits and Careers
Resort (IR)
Tax
Arts and Revenues
Culture
Platform for
new
Innovation,
Technology
& Brands
Incorporate
Showcase New Quality Modern &
Cool Japan Entertainment Heritage
Japan in IR
Key Stakeholders
Public Safety
Agencies / Law Community
Japan Tourism Enforcement Healthcare
Entertainment
Education
MICE Industry
Charities
MLIT METI
JTA Cool Japan
Japan IR
Japan Japan
Inc. 1 Inc. 4
Japan Japan
Inc. 2 Inc. 3
MGM
Japan
Tourism Stakeholders
Public Safety
Japan Tourism Enforcement
Entertainment Healthcare
MICE Industry Education
Charities
MLIT MOFA, METI

JTA Cool Japan
Japan IR
Japan Japan
Inc. 1 Inc. 4
Japan Japan
Inc. 2 Inc. 3
MGM
Japan
Increase
Number Improve MICE
Visitors
Revitalize
Regional
Tourism Economies
Benefits Impacts on
SMEs & Local
Businesses
Japan
Integrated
Resort (IR)
Tax
Arts and Revenues
Culture
Platform for
new
Innovation,
Technology
& Brands
Incorporate
Japan in IR
Japan Inc. Stakeholders
Public Safety
Entertainment
Education
MICE Industry
Charities
MLIT MOFA, METI

JTA Cool Japan
Japan IR
Japan Japan
Inc. 1 Inc. 4
Japan Japan
Inc. 2 Inc. 3
MGM
Japan
Increase
Number Improve MICE
Visitors
Revitalize
Regional
Economies
Tourism Impacts on
Businesses
Japan
Integrated
Benefits
and Careers
Resort (IR)
Tax
Arts and Revenues
Culture
Platform for
new
Innovation,
Technology
& Brands
Incorporate
Japan in IR
Japan Culture Stakeholders
Public Safety
Entertainment
Education
MICE Industry
Charities
MLIT MOFA, METI

JTA Cool Japan
Japan IR
Japan Japan
Inc. 1 Inc. 4
Japan Japan
Inc. 2 Inc. 3
MGM
Japan
Increase
Number Improve MICE
Visitors
Revitalize
Regional
Economies
Tourism Impacts on
Businesses
Japan
Integrated
Resort (IR)
Tax
Arts and Revenues
Culture Platform for

new
Innovation,
Technology
& Brands
Incorporate
Japan in IR
Increase
Number Improve MICE
Visitors
Revitalize
Regional
Economies
Tourism Impacts on
Businesses
Japan
Integrated
Resort (IR)
Tax
Arts and Revenues
Culture
Platform for
new
Innovation,
Technology
& Brands
Incorporate
Japan in IR
Responsible Management
Of The Social Issues
Increase
Number Improve MICE
Visitors
Revitalize
Regional
Economies
Tourism Impacts on
Crime and
Gaming Benefits SMEs & Local
Businesses
Problem Gaming Japan

Integrated
Gambling
Benefits
Issues
and Careers
Resort (IR)
Money Tax
Laundering Arts and Revenues
Culture
Platform for
new
Innovation,
Technology
& Brands
Incorporate
Japan in IR
Gaming Issues Stakeholders
Public Safety
Entertainment Education
MICE Industry Charities
MLIT MOFA, METI

JTA Cool Japan
Japan IR
Japan Japan
Inc. 1 Inc. 4
Japan Japan
Inc. 2 Inc. 3
MGM
Japan
The Facts About Crime And Gaming
No demonstrated relationship between the introduction of an IR and an increased rate of crime
City Population
Per 10,000 people Las Vegas, a town centered on
Major crime Misdemeanor the integrated resort industry,
New York 8,289,415 29.3 66.1 has an extremely low crime rate.
Miami 414,327 57.4 178.4
Given its 40,000,000
Atlanta 437,041 61.6 187.8 annual visitors, Las
Las Vegas 1,479,393 37.8 88.7 Vegas has an
extremely low crime
Los Angeles 3,855,122 21.2 70.3 rate compared to other
San Francisco 820,363 40.0 201.6 cities
Number of crimes per 100,000 people in Detroit Detroits crime rate has seen a
3400
MGM Detroit Opening (October 2007) significant decrease since the
3200
opening of MGM Grand.
3000
2800 The number of crimes is defined as the

2600 total number of homicides and
burglaries per 100,000 people
2400
2200 After the opening of MGM Detroit, the

rate of crime has been decreasing
2000
2005 2006 2007 2008 2009
SourceFBI Crime Statistics
The Facts About Problem Gaming
Gambling Is Common; Gambling Addiction Is Not
Problem and pathological gaming exists in all countries regardless of whether legal
gaming is present or not, and the prevalence of problem and pathological gaming is
generally the same without regard to culture or geography.
Dozens of surveys have been conducted in countries over the last two decades, and
despite the difference in gaming options available to populations, studies have
consistently shown about 1 to 2% of people are afflicted by a pathological gambling
addiction
Responsible (92%-98%)
Problem (2%-4%)
Pathological (0%-2%)
The American Psychiatric Association now characterizes pathological gambling, the clinical disorder characterized by a
persistent and reoccurring failing to resist gambling behavior that is harmful to the individual and concerned others, as
an addiction. Problem gambling refers to individuals who experience problems with their gambling but do not meet the
criteria laid out by the Association.
Dealing With Problem Gaming
Employee Education: procedures
All employees receive initial training on Trained to identify guests with a problem
Responsible Gaming gambling concern
Annual refresher training is provided Responsible beverage service policy
Communication programs are prohibits knowingly providing service of
implemented throughout the year to alcohol to intoxicated individuals
remind employees of policies and
Public Education
Committed to educating the public about Responsible Gaming
Education is essential to promote responsible play and increasing awareness of
gambling disorders
Engagement With/Financial Support For Problem Gambling Research and Treatment

Global IR operators work with public health agencies and encourage funding for
problem gambling treatment using funds allocated from gaming taxes
Global IR operators work with and provide funding for leaders in problem gaming
research and treatment (e.g. NCRG)
Strong/Appropriate Regulation
Customer exclusionary measures
Training of all employees
Problem Gaming A Case Study
The presence of casino gaming in Singapore combined with comprehensive education,
public awareness and responsible gaming measures confirms that it is possible to
significantly mitigate negative outcomes
In 2010, the Singaporean government awarded exclusive licenses approving the

development and operations of two integrated resorts.
By 2011, one year after legalization, the government reported a lower prevalence of
pathological and problem gamblers than before.
By 2014, the combined efforts of the government and the operators further
reduced occurrences of problem and pathological gambling to levels that are far
lower than rates experienced prior to the introduction of casino gambling.
Singapore Rates 2008 2011 2014

Probable Pathological Gambler 1.2% 1.4% 0.2%
(0.7% - 1.6%) (1.0% - 1.7%) (0.03% - 0.4)
Probable Problem Gambler 1.7% 1.2% 0.5%
(1.1% - 2.2%) (0.9% - 1.6%) (0.3% - 0.8%)
Total 2.9% 2.6% 0.7%
(2.1% - 3.5%) (2.0% - 3.1%) (0.4% - 1.0%)
Note: Figures in brackets refer to confidence interval at 95% level.
The Facts About Money Laundering
[Money laundering] has not been a major problem in well-regulated, land-based casinos It is
remarkable at how little money laundering exists at regulated casinos, largely because of
extensive surveillance, accounting, and internal controls designed to prevent such activity.
[Gaming Law Review and Economics, Money Laundering and Land-Based Casinos (2010)]
The Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Treasury,
administers and issues regulations pursuant to the Bank Secrecy Act , which require that
casinos implement and maintain a robust compliance program.
Casino operators are subject to very stringent probity investigations from regulatory
agencies
There is a sophisticated system of controls in place to identify high value and
suspicious transactions and report them to appropriate federal agencies
There are specific funds transfer rules that prevent money laundering of electronic
funds transfers
There are cash management provisions that prevent money laundering of cash
deposits
Casinos must retain certain information for funds transfers and must retain records for
all international wire transfers regardless of monetary value.
Summary
Breaking through to a vision of

large-scale entertainment resort
Major building block for economy
Responsible management of social
issues
The time for this opportunity is now
MGM OSAKA
Safe Harbor Provision
Cautionary Statement Concerning Forward-Looking Statements: 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 Companys Public Filings With The Securities And Exchange Commission. The
Company Has Based Forward-looking Statements On Managements Current Expectations And
Assumptions And Not On Historical Facts. Examples Of These Statements Include, But Are Not Limited
To, Statements Regarding Our Development Projects. 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
Companys 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.
Non-GAAP Financial Measures: The Financial Information Included In This Presentation Includes
Non-GAAP Financial Measures. The Companys Management Uses Non-GAAP Financial Measures To
Evaluate The Companys Performance And Provides Them To Investors As A Supplement To The
Companys Reported Results, As They Believe This Information Provides Additional Insight Into The
Companys Operating Performance By Disregarding Certain Non-recurring Items. Reconciliations Can
Be Found In The Financial Schedules Accompanying The Companys Earnings Releases.

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CLSA Japan 2015

Aria MGM Grand Bellagio The Mansion

Mandalay Bay MGM Macau The Mirage

Monte Carlo NY - NY Luxor Excalibur

MGM Detroit Beau Rivage Gold Strike Circus Circus

Hotel Rooms 48,000

Total Area (Hectares, LV Strip) 300

Food & Beverage Outlets 350

MICE Space (m2) 300,000

Spectacular entertainment and WOW attractions

MICE component important

Delivers significant economic benefits arising from

Gaming space small portion of IR

Non-gaming activities account for 70% of revenues in

MLIT MOFA, METI

MLIT MOFA, METI

MLIT MOFA, METI

Arts and Revenues

Culture Platform for

Problem Gaming Japan

MLIT MOFA, METI

2800 The number of crimes is defined as the

2200 After the opening of MGM Detroit, the

Engagement With/Financial Support For Problem Gambling Research and Treatment

In 2010, the Singaporean government awarded exclusive licenses approving the

Singapore Rates 2008 2011 2014

Breaking through to a vision of

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