Massachusetts Gaming Commission. January 2014

Transcription

1 Massachusetts Gaming Cmmissin January 2014

2 Maximizing the Ecnmic Impact in MA Wynn Resrt in Everett will generate the fllwing ecnmic benefits: Direct Capital Investment $1.6 bn initial develpment cst ($1.0 bn hard csts, $125 mn land / infrastructure, $450 mn ther) Equivalent t 90% f City f Bstn 5 year capital plan New Jbs 6,000+ lng-term jbs (4,000 direct & 2,000 additinal induced) + 4,000 direct cnstructin jbs Wynn will be in the Tp 5 private emplyers in Bstn Tax Revenue $267 mn in annual, recurring state and lcal taxes ($29 mn directly t the City f Everett) $183 mn in ne-time state and lcal taxes during the resrt develpment Husehld Earnings $269 mn in recurring earnings ($136 mn direct and $134 mn indirect / induced) $763 mn in ne-time cnstructin-related earnings Turism and Visitatin 7+ mn visitrs annually 1.6x mre visits than the annual attendance fr Red Sx, Celtics, Patrits and Bruins 1

3 The Wynn Effect in Massachusetts The Wynn Resrt in Everett will extend Wynn s industry-leading develpment and perating philsphy: Cater t premium and internatinal market segments Deliver true integrated-resrt experience t drive nn-gaming revenues Implement 5-star custmer service Create rbust gaming and nn-gaming markets and establish sustainable cmpetitive advantages The Wynn Resrt in Everett Bridging the Revenue Gap Surces: Reginal gaming cmmissins, TMG Cnsulting, cmpany estimates. 2

4 The Wynn Effect in Las Vegas Wynn Las Vegas vs. Average LV Strip Prperty Net Revenue (US$ in millins) First full year 100% revenue premium LTM 200% revenue premium Surces: Cmpany public filings LTM = Last twelve mnths ended September 30,

5 The Wynn Effect in Macau Wynn Macau vs. Average Macau Prperty Grss Gaming Revenue (US$ millins) First full year 300% revenue premium LTM 350% revenue premium Surces: Cmpany public filings, Macau DICJ LTM = Last twelve mnths ended September 30,

6 Wynn Resrts Financial Strength Flexible balance sheet with minimal net leverage $2.7 billin f cash as f 9/30/13 Strng equity spnsrship: $20 bn equity market capitalizatin Rbust cash flw available t fund prject $5.4 billin in discretinary Free Cash Flw t be generated thrugh the cnstructin perid Strng Balance Sheet Metrics: Net leverage (Net debt / EBITDA) Strng EBITDA Generatin Wynn Resrts 3.1x 1.8x 2.3x Dmestic Operatr Avg x 9.7x 6.3x (1) Includes Las Vegas Sands, MGM Resrts, Caesars Internatinal, Byd Gaming, Penn Natinal Gaming, and Mhegan Tribal Gaming Authrity. (2) EBITDA prjectins exclude the ptential cntributin frm the Wynn Resrt in Everett. Surces: Cmpany public filings and ThmsnOne. Nte: Wynn EBITDA prjectins based n Wall Street research cnsensus estimates cmpiled by ThmsnOne. 5

7 Regin A Financial Cmparisn Wynn Resrts current liquidity psitin is much strnger than Mhegan Tribal Gaming Authrity s 30x mre cash n hand 12x mre annual Free Cash Flw Wynn Resrts strng, flexible balance sheet ensures: On-time prject cmpletin with n phasing Cnsistent peratins and staffing levels Brand prtectin LTM Net Debt / EBITDA Cash FCF EBITDA Wynn Resrts $1,525.2 $2,498.9 $ x Mhegan Tribal Gaming x Surces: Cmpany public filings fr the twelve mnth perid ended September 30,

8 Access t Capital Markets Experienced in financing and maintaining large integrated resrt prjects Delivered $7.0 bn f develpment prjects n-time and n-budget Only majr dmestic peratr nt t suspend r cancel a develpment prject during the ecnmic dwnturn Industry-leading 99% verall jb preservatin during the ecnmic dwnturn; managementlevel pay cuts preserved line level psitins Strng relatinships with many f the wrld s largest financial institutins Lng, successful track recrd f raising capital t fund develpment prjects Wynn Resrt Capital Raising thrugh 2013 Financing activity Amunt Raised ($mn) U.S. $12,750 Macau 6,250 Ttal $19,000 (1) Includes re-financing activity 7

9 Cnclusin The Wynn difference: year track recrd in develping integrated destinatin casin resrts that stimulate and transfrm markets 2. Unique premium psitining enables Wynn develpments t grw and lead their markets with minimal cannibalizatin Cater t premium and internatinal market segments Deliver true integrated experience t drive nn-gaming revenues Implement 5-star custmer service 3. Unmatched ability t fund integrated-resrt prjects ensures n-time delivery with n phasing Flexible balance sheet and strng equity spnsrship supprts prject in all ecnmic envirnments 8

10 Massachusetts Gaming Cmmissin January 2014