Wynn Resorts, Limited (WYNN)
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Investor Update

Mar 7, 2018

Matt Maddox
CEO, Wynn Resorts

Good afternoon, everyone. My name is Matt Maddox. I'm the CEO of Wynn Resorts. As you know, we do not generally provide mid-quarter investor updates. However, since it's been an eventful month since I assumed the role of CEO, I want to take this opportunity, ahead of the J.P. Morgan conference here in Las Vegas, to update you on our progress over the last 30 days. Before we begin, I'd like to acknowledge the obvious. Steve Wynn was an integral figure in the development of modern integrated resorts, and alongside 25,000 employees, he built two durable and lasting businesses. I've been with Wynn Resorts since the inception in 2002, and during that time, the company has thrived and grown. I am proud and excited to now lead that cast of 25,000 that delivers our brand's promise every day.

Turning to the prepared materials, starting on slide three, I'll discuss our results through February 28th, which have been strong across the portfolio. While that strength was broad-based, Chinese New Year also provided meaningful uplift in both Macau and Las Vegas, highlighting the strength of our global brand. I'll also touch on the company's capital allocation strategy and growth opportunities, including an increase in our dividend. Turning to page four. A bit more on our results through February 28th in Macau. For the first two months of 2018, we saw strength across both properties. Total revenues were up over 25% quarter to date, with VIP volumes increasing 35% and VIP hold just below the normal range. Mass win was up over 51% versus 2017. These results led to an EBITDA uplift of over 50% for the first two months in 2018.

On slide five, results in Las Vegas were strong across the property, with total room revenue and cash room revenue both up over 10% in January and February. During those months, we continued to see strength in non-gaming revenues, and while our casino revenue is down, table drop was up 10% year-over-year. Normalized for hold, EBITDA in the first two months of 2018 would have exceeded the first two months of 2017. In addition, our group and convention bookings for 2018 remain strong and pacing ahead of last year. We're also continuing to see strength in the transient and leisure segments here in Las Vegas. On slide six, I'd like to take a moment to focus on Chinese New Year because it is a telling indicator of the strength of our portfolio and of our brands in Las Vegas and Macau.

In both markets, we saw significant EBITDA growth during the 10-day period, showcasing the power of our international marketing efforts. We consistently drive meaningful international play to our Las Vegas property, including nearly $250 million of international gross table win in 2017, and that international segment has continued to show strength in 2018. Turning now to slide seven. Our business in Las Vegas and Macau is robust. We have over $3 billion in cash and net leverage below four times as of December 31, 2017. Our operating performances and balance sheet gives us the confidence to increase our dividend by 50%. The team is highly focused on capital allocation, we understand the balance of driving growth while also returning capital to our shareholders.

We are actively constructing the $360 million, 400,000 sq ft convention facility connected to Wynn Las Vegas, and we are also revisiting and scoping Paradise Park phase two in order to make sure that we deliver an experience consistent with the Wynn aesthetic and brand while driving meaningful returns to our shareholders. Turning to the final slide, I want to talk about how the board and management have responded to recent events. Our board has been extremely active over the past month and has announced its intention to expand and refresh its ranks to bring new prospects to the boardroom. We recently announced the retirement of Ray Irani from our board, and Al Shoemaker has informed us that he will not run for re-election in 2019. I personally would like to thank them both for their service to the company and to the shareholders.

As for new board members, the board has actively engaged with numerous candidates, and we look forward to telling you more as they make progress on this front. Lastly, over the past several weeks, I've spent a lot of time meeting with our employees. I'm always impressed with their dedication and professionalism. It is our 25,000 employees who are responsible for delivering customer experiences that have earned us more Forbes Five Stars than any other independent hotel company in the world. It is our design and development team that has been responsible for the most innovative integrated resorts in the industry, and that team has more than 150 professionals. We will continue to combine these two elements, design and service, to pursue global development opportunities that meet our return thresholds. I'm really excited for the future of Wynn Resorts.

Our dedicated employees embody the brand that has become synonymous with luxury in both the U.S. and Asia, and I am proud to lead that team. We will be presenting at the J.P. Morgan Gaming, Lodging, Restaurant, and Leisure Conference here in Las Vegas at the Wynn this week and look forward to engaging with investors there. We also look forward to discussing our first-quarter earnings with you in April on our conference call. That's all for today. Thank you for your time.