1. COMPETING IN OUR INDUSTRY Understanding Our Market Conditions

2. What is our competitive advantage?

3. Objectives Analyze overall economics and market conditions of the gaming and hospitality industry Leverage industry and market information to inform organizational strategy and decision making Assess the revenue and liabilities of the MGM enterprise Leadership Competency Business Acumen and Decision Making

4. State of the Industry Game

5. Recovery Cycles Expect more of the same: Positive Growth! POSITIVE GROWTH 2015 STR, Inc. All rights reserved

6. ANNUAL VISITOR VOLUME 2000 - 2014

7. 2014 OCCUPANCY COMPARISON AVG. EST. NIGHTLY OCCUPIED ROOMS

8. ADR COMPARISON 2014

9. TRADE SHOW NEWS NETWORK TOP 250 RANKINGS 2014 For the 21 st consecutive year, Las Vegas leads other host cities in the number of TSNN Top 250 shows.

10. What’s the Problem

11. MGM Stock History Michelle’s stock history slide

13. Moving a Stock Reflection of public emotion Institutional vs. traditional investors Fundamental vs. technical analysis

14. Approximate Effects on Variance in Return on Capital: Variable% of Variance Explained Year2% Industry19% Corporate Parent4% Business Specific Effects (Leadership, Strategy, etc.) 32%

15. 5 Industry Five Force Analysis

16. Industry Rivalry Intense rivalry reduces average profitability Rivalry is impacted by: Industry growth Product differentiation Number of competitors Competitors diversity

18. Stacking Up Who are our competitors? Research stock price, EBITA, and Profit Margin of Las Vegas competitors according to Wall Street How do we compare? What is our competitive advantage?

19. Differentiation Gain a comprehensive understanding of the competitive environment Create a unique value for customers in the environment Achieve and sustain superior performance QualityDelivery Prime SteakhouseMandalay FlexibilityBrand CirqueAria

20. Portfolio of Businesses vs Portfolio of Competencies

21. TWO CONCEPTS OF BUSINESS PORTFOLIO OF A BUSINESSPORTFOLIO OF COMPETENCIES Basis for Competition Product competition based on today’s products or services Inter-enterprise competition to build competencies Enterprise Structure Portfolio of businesses related in market terms Portfolio of competencies that drive all aspects of the business Status of the Business Unit Autonomy is central; “owns” all resources other than cash Business unit is a reservoir of acumen and competencies Resource Allocation Businesses are unit of analysis; capital is allocated business by business Competencies are the unit of analysis; leaders allocate capital and management Value Added of Leaders Optimize corporate returns through strategic allocation Building strategic architecture and competencies to secure the future

22. Portfolio of Competencies Demonstrates Business Acumen and Sound Decision Making Leads and Develops a High-Performing, Inclusive, and Diverse Workforce Champions Innovation and Change Partners and Collaborates with Others Exemplifies Leadership Integrity and Courage Pursues Personal Development Inspires a Values-Based Culture

23. Application Conduct a competitive analysis on our closest rivals (CZR, WYNN, LVS, BYD) Compare financial data Stock price YTD stock change percentage EBITDA Profit margin Cash flow Market share Do they offer any products or services that we don’t? What (if any) do they do better than their rivals What is their geographic scope? Where do they compete and why? What is their degree of diversification? Do they have a range of products and services? What is our competitive advantage?

24. APPLIED EXCELLENCE Presented by MGM RESORTS UNIVERSITY