This was a group presentation that was used to analyze an existing company and identify key problem areas and ways to solve these problems

1. MGM MIRAGE Adam Aldrete David Weible Sergio Jackson Ashley Wolfe Jin Kang City Center

3. #2 in the World

4. Established in Las Vegas after the merger between MGM Grand and Mirage resorts.

5. They hold assets in 5 states and internationally in Macau, China.

7. 13 billion dollars of debt

8. 7.5 billion due over the next 3 years.

9. Debt to asset ratio is 83%!!!

11. Consumers have less money

14. Does gambling hurt our society?

16. Less regulation on gambling, increase in competitors

17. Political/Legal

18. Currently, Nevada is the only state in the U.S. with legalized gambling

20. Popularization of online gambling a concern

22. Harrah’s Entertainment Headquartered in Las Vegas World’s largest gaming company Core Value Create loyalty and value Gaming Operate over 50 casinos On four continents Primarily on U.S. & U.K. Over 85,000 employees Bankruptcy? Last reported $24.5 bl. debt

23. Las Vegas Sands Headquartered in Las Vegas Core Value Uniqueness Brings Venice, Italy to NV. Gondoliers & Rialto Bridge Operations Casinos/Hotels Convention centers Entertainment International Macao, China Singapore, Malaysia Bankruptcy? Currently in a $8.8 bl. debt

24. Trump Entertainment Resorts Headquartered in Atlantic City, NJ Formally owned by Donald Trump Quit the board in 2009 Owns 33% of the firm Core Value Hotel & Casinos Resorts Trump Plaza Trump Marina Trump Taj Mahal casino resort Filed bankruptcy – Feb. 13th 2009 $1.74 bl.

25. Internal Analysis Engaged in a 50-50 joint venture Partnership with Dubai World Contract terms: Massive construction of City Center development Dubai World invested $5.1 bl. Largest-ever privately funded in United States Project resulted in a $13.5 bl. Long-term debt

26. Internal Analysis (Cont.) Dubai World failed a lawsuit on March 22, 2009 Mismanaged operations Unnecessary expenditure overruns Free from forward funding obligations MGM Mirage CEO’s, James Murren Sale of assets Bonds payback issuing new debt Debt exchange Raise new capital Investors

27. Internal Analysis (Cont.) On April 30, 2009 an agreement was reached Dubai World agree on a $8.5 bl. MGM Mirage will still be in a long-term debt Dubai World and MGM will finance their remaining equity contributions through letters of credit Dubai World will also pay back $135 million in construction payments the casino operator had to made on its behalf Outside sources to finalize City Center Bank of America - $1.8 bl.

28. Las Vegas City Center Strip

29. Las Vegas City Center Strip

30. Las Vegas City Center Strip

31. Las Vegas City Center Strip

32. Las Vegas City Center Strip

33. Problem #1 Bad Economy The price of MGM & MIRAGE had decreased dramatically from October 2007. The number of travelers has decreased 6.8%. (19.5 mil. 18.2 million) Discounted 21% down Average daily room rates. 5.2% decline in gaming revenues on a quarter-over-quarter basis in 2009. Airline reduced 21.2% their flight schedule in Nevada from 2007 to 2009.

34. Stock Price

35. Airline Schedule

36. Problem #2 Unstable world situation The risk of terror. Outbreak of Swine Flu. Survey by the U.S. Travel Association Postpone their trip until after an outbreak subsided. (45%) Visit a different destination. (33%) Cancel their trip. (31%)

37. Problem #3 The expansion of immoderate business. City Center The project was started by MGM Mirageand Dubai Worldbecame a joint partner during the project's construction phase. Six high-rise towers with a casino, boutique hotels, condominiums, entertainment and a retail mall. Dubai Sues MGM Mirage in 2009. MGM Mirage lost $750.4 million in the third quarter in 2009.

38. Recommendation #1 Convert Condos into additional hotel rooms Vdara 1497 rooms Mandarin Oriental 227 rooms 95% occupancy level currently Reduced price

39. Recommendation #2 Sell off International Holdings Macau, China Dubai Shift Focus to Las Vegas Put other non Vegas holdings under review

40. Recommendation #3 Find new partnership for city center Dubai World Law Suit Pulled Investment Spread the risk Secure more financing

41. Overall Recommendation Divest International Holding Convert Condos in Additional Rooms Direct Focus to Las Vegas

42. Implementation Vdara & Mandarin Oriental Already operate as hotels Existing infrastructure Sell MGM Macau Use proceeds to pay debt Break Contract in Dubai Non Gaming Don’t own

43. Questions???