Citigroup EMT Conference
January 11, 2007
Ron Kramer ForwardForward LookingLooking StatementsStatements
This presentation contains forward-looking statements regarding operating trends, future results of operations and the completion of new projects, which are subject to change. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ from those expressed in any forward-looking statements made by us. Additional information concerning potential factors that could affect the Company's financial results are included in the Company's Form 10-K for the year ended December 31, 2005 and the Company's other periodic reports filed with the Securities and Exchange Commission. The Company is under no obligation to (and expressly disclaims any such obligation to) update its forward-looking statements as a result of new information, future events or otherwise.
2 CorporateCorporate StructureStructure
Outlined area shows issuers, borrowers, guarantors and restricted subsidiaries under facilities
WynnWynn Resorts,Resorts, LimitedLimited $250 million Convertible Subordinated Notes
100% 100%
$900 million Revolver
$225 million Term Loan WynnWynn MacauMacau WynnWynn LasLas VegasVegas $1,300 million 1st Mortgage Notes due 2014
$764 million Bank Facility
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235 Acres on the Las Vegas Strip
Treasure Island Fashion Show Trump Towers Flamingo Mall Venetian L Palazzo as Montreux Ve ga Maxim s Blv Sands d Stardust Expo Wynn Las (Echelon Place) Center Vegas Encore Circus- 20 Acres Circus Koval Land 55 Acres
18 Acres Road Inn Desert Sands Ave. Ave. Ave. Sands Sands Sands Golf Course 142 Acres Hughes Center Chamber of Commerce Las Vegas Paradise Road LV Hilton Convention Center Projects slated for completion
5 WynnWynn LasLas VegasVegas
Follow the non-casino revenues – Hotel: First hotel in Las Vegas to receive the Mobil Five Star Rating – Restaurants: Every prize winning chef is at the property cooking dinner every night. Alex was awarded the Five Star and Five Diamond ratings. – Entertainment: • Water based show • Spamalot to open in 2007 – Retail: Unique names including Ferrari, Manolo Blahnik, Brioni and Jean Paul Gaultier – Golf: Only property with on site course, designed by Tom Fazio Casino revenues are a result of the overall experience – Higher number of machines or tables doesn’t mean higher casino revenues – Customers chose Wynn Las Vegas because the property offers the best overall experience – Better amenities result in higher spend per customer
6 LeveragingLeveraging thethe WynnWynn BrandBrand
Steve Wynn has consistently raised the bar in Las Vegas
1989 1990 Caesars The Mirage 1989 EBITDA 1990 EBITDA US$100 million US$188 million
1998 1999 The Mirage The Bellagio 1998 EBITDA 1999 EBITDA US$176 million US$260 million
LTM Wynn Las Vegas Encore At Wynn $312 million
7 Wynn Generated the Highest Room Rate on the Strip
Average Daily Room Rate for Quarter ended September 30, 2006
% 300.0 2.7 271 264 .9% 250.0 5 .9% 235 8 .5% 222 221 1 203 202 205 200.0 .5% (in US$) (in 4 154 161 150.0
100.0 Wynn Bellagio Venetian Mandalay Mirage
2005 2006
8 Encore at Wynn Las Vegas
2,042-room hotel tower fully integrated with Wynn Las Vegas, consisting of 132 suites and 1,910 guest rooms
Standard rooms and suites will be different from Wynn Las Vegas’ product
New layer of product offering to satisfy strong demand for Wynn product
Approximately 54,000 square foot casino
Additional convention and meeting space
Several restaurants and nightclubs
Swimming pools, a spa and salon, and retail outlets
Budget of $1.74 billion ($200 million spent through 3Q 2006)
Ground breaking on April 28, 2006 and expected opening in early 2009
9 Opened September 6, 2006
10 WynnWynn MacauMacau
Red 8 Noodles Hotel Lobby
Swimming Pool Café Esplanade 11 WynnWynn MacauMacau
Sky Casino Lift Lobby
Pool Garden Sky Suite 12 WynnWynn MacauMacau
Opened September 6, 2006 Second Phase in 2007
Strategic location Additional Gaming
Signature building with 600 Retail rooms Restaurants 220 tables / 380 slots Entrance feature 7 Restaurants
26,000 ft of high-end retail
Spa and entertainment facility
Water feature
13 WynnWynn MacauMacau DevelopmentDevelopment SiteSite
Grand Lisboa Hotel Lisboa
Wynn Macau Wynn Macau Site
MGM Site
14 WynnWynn MacauMacau EarlyEarly ResultsResults
Wynn Macau generated Revenues Going Forward…. of $45 million in first 25 days
US$53 mm of gross gaming revenues Significant Room for Improvement
More capacity being added Table revenues = 81% of revenues Marketing ramp-up ADR was $201 Understanding the customer
Occupancy = 76% Property improvements
23,000 restaurant covers Property access
Average check of $51
Win/slot/day = $387
Win/table/day = 9,236
15 Wynn Taking Significant Market Share
Wynn has 8.7% of tables and 10.7% Market Share Wynn has 7.3% of total slot machines and 14.6% market share
25.0%
20.0%
14.6% 15.0%
10.7% 11.5% 10.0% 8.7% 7.3%
(%Sept. to 6 Sept.30, 2006) 5.0%
0.0% Total Tables Slots
% of Units Sept. share October Share
16 QualityQuality DrivesDrives DemandDemand
Wynn’s properties have been proven catalysts for growth
Gaming Revenue and Visitor Volume(1)
Revenue November 1989: October 1993: October 1998: April 2005: ($ in billions) Opening of The Opening of Opening of Opening of Wynn Visitor volume Mirage Treasure Island Bellagio Las Vegas (in millions) $7 45
40 $6 35 $5 30
$4 25
$3 20 15 $2 10
$1 5 12% Growth in Gaming Revs Growth Gaming in 12% $0 0 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Revenue Visitor Volume
(1) Visitation based on all of Clark County. 17 Macau Market – Changing Dynamics
The main floor gaming market in Macau is evolving
Main floor gaming revenue grew by approximately 48% while VIP gaming declined 2.4% in 2005
2003 2005 Wynn - September Slots Slots Slots 1% 6% Mass 5% 22%
Mass Mass 34% 34% VIP VIP VIP 61% 60% 77%
SeptemberSeptember 20062006 GamingGaming RevenuesRevenues 37%37% VisitationVisitation 20%20%
Source: Wynn Resorts Estimates. 18 Segmenting the Chinese Market
The population of China is becoming: – Increasingly urban, better educated and more wealthy – Older: by 2023, 60% of the population will be over 40 – The current savings rate is about 24% but growing by estimates of 2% per annum
More than 300,000 Chinese have net worth over $1 million (excluding property)
Mainland millionaires control around $530 billion in assets
5 years ago, mainland buyers accounted for 1% of global sales of luxury handbags, shoes and like products. Today they generate 12% of luxury goods world sales
The Chinese population is expected to peak at approx 1.3 bn
The upper middle class is expected to grow from 25 million in 2000 to 180 million over the next 5–8 years
Over the next 10 years there will be approximately 180-200 million people in the top income brackets – the “Premium Customer” 19 Strong growth in tourism
Macau is projected to nearly double tourism Historical and Projected Tourism Growth ProjectedProjected 45.0 41.8 40.0
35.0
30.0
25.0 22.0
20.0 18.7
(Millions of Tourist) 16.7 15.0 11.5 11.9 9.2 10.3 10.0 7.0 7.4 5.0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2010
Source: Wall Street Estimates
20 But Asia is still developing
The USA has 295 million people and generates US$46bn+
North and SE Asia have 2 billion people and generate approximately US$11.5bn 2004 Casino Revenue Comparison
46.0 50.0
40.0
30.0
(US$ billions) 20.0 11.5
10.0
0.0 USA Asia
Source:Source: Industry Innovation Research Group. Asia includes Macau, Australia, South Korea, Cambodia, Malaysia and the Philippines
21 Visitor Arrivals
e dg ri Gaming concessionaires New casinos B au ac M Immigration - ai SJM Fisherman’s Wharf h 4 u h Z Macau Ferry K D7 H Las Vegas Sands 5 StarWorld D6 Terminal Wynn 6 Wynn (35%) MGM 7 MGM Grand Macau Galaxy Grand Lisboa Peninsular 8 Zuhai Boarder Macau St. Paul ’s 23 Ferry Terminal Melco PBL 9 Ponte 16 – Macau Success 9 ruins (55%) 10 Nam Van – Shun Tak 11 22 4 25 27 33 Existing casinos 11 Rio 8 5 11 7 6 28 A-Ma Temple 1 Lisboa Crown 7 12
D1 F
r
i
e
n 13 City of Dreams d 2 Waldo
s Macau
h
i 10 p
B Shangri-la M 14
r
Macau Tower i 3 Sands a International
d c
g a
e u - 15 Sheraton T Airport a Other 14 SJM casinos i S p
a a i Hilton B 16 W r a i (5%) d n g
B e r i 17 TBD d Other non-casino developments g e New Ferry 18 Venetian Terminal D1 Shun Tak – HKL JV University of Macau Four Seasons 12 D2 Nova Taipa Hotel 19 D2 D3 Ó D3 Nova Taipa residential 20 Far East Consortium Macau Lotus Bridge D5 International 21 Galaxy Cotai Race Course Taipa Airport D4 TV City – eSun (5%) 26 University D5 Chinese Estates 22 Grand Waldo 13 34 Logistic Oceanus 18 D6 La Cite – Chinese Overseas 23 22 14 33 Center 21 19 35 32 15 Arc of Triumph 30 Polytec Asset 24 20 Sports D7 Polytec Asset 16 Ground Lotus 29 25 Emperor Cotai D4 Macau 31 Bridge 17 Dome 26 Shun Tak Cotai Zhuhai Immigration (to be exchanged for another ( Henqin Island) Golf Course Cotai site) 27 Presidente Coloane 28 Melco PBL Westin Resort 29-35 TBD
22 Infrastructure Development
The Pearl River Delta is investing heavily in additional expressways and rail projects
Hong Kong – Macau – Zuhai
bridge plans are moving forward Additional Ferry Terminal Macau is developing a light rail rapid transit system New Light Rail / Rapid Macau is developing a new ferry Transit terminal
Macau is expanding the Airport
Macau is expanding the road systems, public transport and
utilities Wynn Stop
23 FurtherFurther GrowthGrowth inin MacauMacau
Addition of a second Hotel and other non-gaming amenities to Wynn Macau
Wynn Macau submitted application to the Government of Macau for a land concession for 52 acres on the Cotai Strip
Master plan includes:
– Up to three casino resort hotels
Sale of subconcession to PBL provides significant flexibility
24 Cross-Marketing Opportunity
The Company plans to capitalize on cross-marketing opportunities with Wynn Macau
Wynn Las Vegas and Wynn Macau target the high-end customer
– Only gaming operator that targets the high-end customer in both Macau and Las Vegas
Asia is one of the largest sources of high-end play – Opportunity to cross-market the high-end player database between Wynn Macau and Wynn Las Vegas
Wynn Macau’s local presence will be a great advertising tool to promote Wynn Las Vegas – Increase depth and penetration of Wynn brand
Steve Wynn and his team have a strong reputation and track record with the high-end Asian customer base
25 Superior Value Creation for Shareholders
At Mirage… … and Now Wynn Resorts
$10,000 in June 1973 would have Wynn Resorts stock has returned 670% since returned $4 million in May 2000 the IPO versus 61% for the S&P 500, 111% CAGR of 24.9% from 1973 through for Harrah’s, 209% for Las Vegas Sands, May 2000 versus 12.9% for the S&P 500 282% for MGM and 410% for Station
Indexed share price (1) Indexed share price 900% 60,000 800%
50,000 700% 9% 600% . 40,000 62 = 9% 500% GR 30,000 4. A = 2 400% C R G 300% 20,000 CA 200% 10,000 100%
0 0%
04 06 -72 -75 -82 -86 -89 -93 -94 -96 03 04 / 06 / y-77 y-84 y-91 y-98 3/ a a a a 23/ 23/03 15/ 10/054/8/057/7/05 1/ 4/3/06 28/06 Feb Aug Feb-79 Aug Feb Aug Feb Aug Feb-00 1/ 4/ 7/22/03 1/16/044/ 7/14/04 1/ 10/5/05 6/30/069/ Nov-73 M Nov-80 M Nov-87 M Nov M 10/25/02 10/20/03 10/12 12/27
Total Return since IPO ranks #4 among all IPOs after 9/11/2001
(1) Stock chart as of December 29, 2006 26 InvestmentInvestment ConsiderationsConsiderations
Significant financial flexibility
Considerable planning and design before commencing construction on each project
Diverse revenue stream with unparalleled features and amenities
Capital discipline: Focus on Las Vegas and Macau
Favorable Las Vegas and Macau market fundamentals
Joint Venture potential in Macau
Further growth in the Macau market
Cross marketing opportunities with Wynn Macau
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