Lecture with Hubert Wang, President and COO of MGM China

Introduction

• Interview with Hubert Wang, President and COO of MGM China
• Discusses various aspects of his role and the company’s operations in Macau

Day-to-Day Role

• Three key actions: Listen, Think, Decide
  • Listen: Collect information from internal (staff, executives, board members) and external sources (regulators, community, competitors)
  • Think: Analyze collected information to distinguish valuable data from noise
  • Decide: Formulate action plans, set objectives, allocate resources, and assign responsibilities

Importance of Thinking

• Allocating time for undisturbed thinking is crucial
• Filtering distractions to focus on valuable insights

Career Background

• Significant career in Asia and the US
• Started in the gaming industry in mid-90s, spent 16 years in the US
• Worked for Caesars, Las Vegas Sands, and Penn National Gaming
• Gained experience in various gaming jurisdictions and types of operations (land-based casinos, Indian casinos, riverboat casinos, large-scale integrated resorts)
• Exposure to Macau and Singapore projects

Differences Between US and Asian Markets

• Scale: Macau's market is significantly larger
• Market Maturity: The US market is more mature, focusing on revenue stability and cost control
• Regulatory Environment: Macau's regulations have evolved to promote healthy and sustainable growth
• Customer Preferences: In Macau, gaming (especially table games) dominates, whereas in the US, slots are more significant

Career at MGM China

• Joined in 2011, initially as CFO
• Became President and COO, overseeing all operational units
• Experienced two business cycles (hyper-growth and corrections) and many significant events (IPO, opening of MGM Cotai, COVID-19 disruptions)
• Achieved significant growth in market share from 8-9% to 14%

Q2 Results and Post-COVID Recovery

• MGM China’s revenue and EBITDA in Q2 exceeded 2019 levels
• Recovery led by mass segment and non-gaming investment programs
• Industry structure is now healthier without reliance on VIP markets
• Mass segment dominates, and profitability is higher compared to pre-COVID era

Pressing Agendas and Future Targets

• Focus on maintaining competitiveness and market share
• Product and service innovation and enhancement, talent retention, and development
• Fulfilling government commitments for non-gaming diversification and driving overseas markets
• Execute strategies to ensure sustainable growth and market leadership

Conclusion

• Emphasis on executing plans and maintaining competitiveness
• Commitment to contributing to Macau’s sustainable economy