Wynn Macau Ltd. · HKEX:1128
Wynn Macau — Investor Day (July 2019)
26 slides from Wynn Macau's investor day presentation, Jul 11, 2019
Slide 1: Inside Information - Wynn Resorts, Limited's Analyst and Investor Day
Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in relia
Slide 2: Announcement notes on presentation and forward-looking statements
To ensure that all shareholders and potential investors of the Company have equal and timely access to the information pertaining to our Company and our Macau operations, we have included in this announcement certain pages of the Presentation, some of which may constitute material inside information
Slide 3: Analyst and Investor Day July 2019
ANALYST AND INVESTOR DAY JULY 2019
Slide 4: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements regarding operating trends, future results of operations and the completion of new projects, based upon beliefs and assumptions of our management and on information currently available to us, all of which are subject to
Slide 5: Wynn Macau - Investing in the Future
WYNN MACAU - INVESTING IN THE FUTURE Renovating and updating the ~400 hotel rooms and suites at the Encore tower at Wynn Macau Repositioning the West Casino − Creating a unique, premium guest experience − Adding two new specialty restaurants adjacent to the casino − Expanding our retail esplanad
Slide 6: Wynn Palace - Crystal Pavilion Expansion
WYNN PALACE – “FIRST OF ITS KIND” CRYSTAL PAVILION EXPANSION Continuing to support Macau’s transition into a world center for tourism and leisure Crystal Pavilion is slated to be a “must-see” tourist destination in Macau − Features an innovative architectural design with an all glass structure −
Slide 7: Contributing to the Development of the Greater Bay Area
Contributing to the Development of the Greater Bay Area
Slide 8: A Brief History of Our Macau Operations
A BRIEF HISTORY OF OUR MACAU OPERATIONS June 2002: September 2006: April 2010: August 2016: 2019: Legacy of Wynn awarded 20 Wynn Macau opens Encore Macau Wynn Palace opens innovation and year Macau opens excellence continues concession Studied the market Macau’s first true IR Full integrated r
Slide 9: Wynn Macau - Macau's First True Integrated Resort
WYNN MACAU – MACAU’S FIRST TRUE INTEGRATED RESORT Macau’s first true integrated resort: pioneered and set the benchmark for luxury services & facilities Most Forbes 5-Star Awards: only resort with eight Five-Star awards in the world 3 million SF of total GFA 1,008 luxurious hotel rooms and suites 59
Slide 10: Wynn Palace - The New Benchmark for Hospitality
WYNN PALACE – THE NEW BENCHMARK FOR HOSPITALITY Extending the “Wynn Premium”: Raised the benchmark for luxury in Cotai. Platforming on the immense success of Wynn Macau and Encore Broadening Wynn’s exposure across all segments: Gaining share across key gaming and non-gaming segments 6 million SF of
Slide 11: Driving Mass Share Through Unique Events and Precision Marketing
DRIVING MASS SHARE THROUGH UNIQUE EVENTS AND PRECISION MARKETING Macau Operations Mass Table Market Share (DICJ) Well equipped to succeed in all market environments 16% 14.9% Our business is primarily driven by Mass and non-gaming 13.5% 12% 9.7% − Enhanced marketing capabilities through investin
Slide 12: The Crystal Pavilion - A Macau Icon
THE CRYSTAL PAVILION – A MACAU ICON A glittering glass and steel structure, a feat of innovative design and engineering inspired by the shape and beauty of a water lily Conceptualized and developed by famed New York architects Robert A.M Stern, in collaboration with Wynn Design & Development A
Slide 13: Wynn - A "Model Citizen" of the GBA
WYNN - A “MODEL CITIZEN” OF THE GBA Investing in Macau Investing in our Employees Investing in our Community Supporting Macau’s goal to diversify the Educating and mentoring Macau’s next Robust CSR program in Macau and economy within the Greater Bay Area generation of Hospitality leaders & bro
Slide 14: "Wynn Care": The Eight Directions
“WYNN CARE”: THE EIGHT DIRECTIONS Youth and Education Small & Medium Enterprise Support Charitable Initiatives Volunteerism Sustainability Initiatives Responsible Gaming Government Relations Localization & Positive Social Impact 48
Slide 15: Macau: Key Takeaways
MACAU: KEY TAKEAWAYS Having the best physical assets and the best hospitality workforce allows us to succeed in any market environment − The Mass and Non-Gaming segments are increasingly the primary drivers of our business − Macau’s powerful long-term secular growth story is fully secure We are
Slide 16: Looking Forward to 2021
Looking Forward to 2021 67
Slide 17: Operating Performance: Key Puts and Takes
OPERATING PERFORMANCE: KEY PUTS AND TAKES Macau Las Vegas Boston Potential Upside Drivers Potential Upside Drivers Potential Upside Drivers − VIP recovery − Baccarat business improves − Mid-week cash rooms − Premium Mass share gains − F&B enhancements drive share − Slot business upside with ga
Slide 18: Strong, Visible Adjusted Property EBITDA Growth Targeted Through 2021
STRONG, VISIBLE ADJUSTED PROPERTY EBITDA GROWTH TARGETED THROUGH 2021 Wynn Resorts Revenue Bridge Wynn Resorts EBITDA Bridge1 ($M) ($M) $9,000 $2,500 $211 $61 $277 $960 $104 $82 $7,500 $255 $2,000 $6,000 $1,500 $4,500 $7,890 $8,102 $2,296 $7,614 $2,152 $2,235 $6,654 $6,654 $1,000 $2,048 $3,000 $1,79
Slide 19: 2021E Adjusted Property EBITDA Target Breakdown and Key Assumptions
2021E ADJUSTED PROPERTY EBITDA TARGET BREAKDOWN AND KEY ASSUMPTIONS Wynn Resorts 2021E Adj. Property EBITDA Target1 Wynn Resorts 2021E Target: Key Assumptions ($M) Macau: $3,000 Market GGR grows at a 3.5% CAGR through 2021 − Infrastructure improvement (bridge, rail) $2,417 Market GGR growth driv
Slide 20: Key Capex Investments
KEY CAPEX INVESTMENTS ($M) $1,200 $1,200 $185 $900 $275 $125 $600 $525 $200 $300 $615 $75 $215 $250 $215 $- 2019E 2020E 2021E EBH Project Wynn Macau Projects LV Room Refresh LV Group Expansion & F&B Enhancements Maintenance 71 Note: The chart above excludes Crystal Pavilion capex
Slide 21: Crystal Pavilion - Financial Overview
CRYSTAL PAVILION – FINANCIAL OVERVIEW Initial estimate of US$2.0 billion for Phase 1 South Parcel Pavilion and ~650 room hotel tower – Later phase (North Parcel hotel tower) cost TBD Targeted Adjusted Property EBITDA ROIC of ~15-20% 7 to 10 million visitors expected annually Phase 1 South Pa
Slide 22: FCF Inflection Is Imminent - Potential for $16 per Share
FCF INFLECTION IS IMMINENT – POTENTIAL FOR $16 PER SHARE IN DISCRETIONARY FCF Wynn Resorts Discretionary FCF Target1 ($M) Discretionary FCF Growth Target1 ($M) $2,000 Adjusted Property EBITDA Target2 $ 2,417 $1,680 Less: Corporate Expense (120) $1,600 Less: Cash Paid for Interest (390) $1,200 Less:
Slide 23: Our Capital Allocation Strategy
Our Capital Allocation Strategy 74
Slide 24: Driving Long-Term Shareholder Value Creation
DRIVING LONG-TERM SHAREHOLDER VALUE CREATION Drive Strong Organic Invest in Increase Return Free Cash Flow Growth High ROIC Growth Projects of Capital to Shareholders Leverage the industry’s best assets to Putting capex in the ground is our highest Growing our recurring dividend is the drive f
Slide 25: Definitions of terms used in the Presentations
The following terms used in the Presentations have the meanings set out below: “Adjusted Property : net income (loss) before interest, income taxes, depreciation and EBITDA” amortization, litigation settlement expense, pre-opening expenses, property charges and other, management and license fees, co
Slide 26: Definitions and board signature
“PRC” : the People’s Republic of China; “ROI” : return on investment; “ROIC” : return on invested capital; “SF” or “sq.ft.” : square foot; “TTM” : in respect of a date, the trailing twelve month period immediately preceding such date; and “Win” : the amount of table drop or turnover that is retained