3 Q18 RESULTS PRESENTATION November 2018 1 Disclaimer Safe Harbor - - PowerPoint PPT Presentation

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November 2018

3Q’18 RESULTS PRESENTATION

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Disclaimer

Safe Harbor Statement This presentation contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors

• r employees to third parties. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking
• statements. Forward-looking statements involve inherent risks and uncertainties and a number of factors could cause actual results to differ materially from

those contained in any forward-looking statement. These factors include, but are not limited to, (i) growth of the gaming market and visitation in Macau and the Philippines, (ii) capital and credit market volatility, (iii) local and global economic conditions, (iv) our anticipated growth strategies, (v) gaming authority and

• ther governmental approvals and regulations and (vi) our future business development, results of operations and financial condition. In some cases, forward-

looking statements can be identified by words or phrases such as "may", "will", "expect", "anticipate", "target", "aim", "estimate", "intend", "plan", "believe", "potential", "continue", "is/are likely to" or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the SEC. All information provided in this presentation is as of the date of this presentation and the Company undertakes no duty to update such information, except as required under applicable law. This presentation contains non-GAAP financial measures and ratios that are not required by, or presented in accordance with, U.S. GAAP, including Adjusted property EBITDA and Adjusted EBITDA. The non-GAAP financial measures may not be comparable to other similarly titled measures of other companies since they are not uniformly defined and have limitations as analytical tools and should not be considered in isolation or as a substitute for U.S. GAAP measures. Non-GAAP financial measures and ratios are not measurements of our performance under U.S. GAAP and should not be considered as alternatives to any performance measures derived in accordance with U.S. GAAP or any other generally accepted accounting principles. Reconciliations of such non-GAAP financial measures and ratios to their most directly comparable financial measures and ratios are included in our earnings releases that have been furnished with the SEC and are also available on our Investor Relations website at http://ir.melco-resorts.com.

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246 171 147 1 24 4 96 73 89 57 87 55 29.3% 29.2% 24.5%

• 4.0%

8.0% 12.0% 16.0% 20.0% 24.0% 28.0% 32.0%

• 50

100 150 200 250 300 350 400 450 500 3Q'17 2Q'18 3Q'18 City of Dreams Manila (US$m) Studio City (US$m) Altira + Mocha (US$m) City of Dreams (US$m)

• Adj. Property EBITDA Margin (%, Right-axis)

400 355 295

3Q 2018 Earnings Summary

Group-wide Adjusted Property EBITDA decline mainly attributable to City of Dreams and Studio City

Source: Company filings Notes: 1. “Adjusted Property EBITDA” is earnings before interest, taxes, depreciation, amortization, pre-opening costs, development costs, property charges and other, share-based compensation, payments to the Philippine Parties under the cooperative arrangement (the “Philippine Parties”), land rent to Belle Corporation, Corporate and Other expenses and other non-operating income and expenses 2. Adjusted Property EBITDA margin is adjusted Property EBITDA divided by net revenue

Total Adjusted Property EBITDA & Adjusted Property EBITDA Margin(1) (2)

• 3Q Net Revenue of US$1,220 million, down 11% y-y
• 3Q Adjusted Property EBITDA of US$295 million, down 26% y-y,

mainly attributable to poorer performance in the group-wide rolling chip segment and a one-time special gift granted to non- management employees.

• City of Dreams’ adjusted EBITDA declined 40% y-y to US$147

million, which was primarily a result of poorer performance in the rolling chip segment and a one-time special gift granted to non-management employees.

• Studio City’s adjusted EBITDA declined 7% y-y to US$89 million,

which was primarily a result of a one-time special gift granted to non-management employees.

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1 25 25 24 4 246 170 208 171 147 96 91 110 73 89 57 54 59 87 55 (34) (35) (22) (33) (29) (50)

• 50

100 150 200 250 300 350 400 450 3Q'17 4Q'17 1Q'18 2Q'18 3Q'18 Corporate and Other Expenses City of Dreams Manila Studio City City of Dreams Altira + Mocha 366 305 380 322 267

Melco Adjusted EBITDA 3Q 2018

Adjusted EBITDA declined 27% y-y

Melco Adjusted EBITDA Breakdown (US$ million)(1) Melco Adjusted EBITDA Growth Breakdown(1)

Source: Company filings Note: 1. “Adjusted EBITDA” is earnings before interest, taxes, depreciation, amortization, pre-opening costs, development costs, property charges and other, share-based compensation, payments to the Philippine parties under the cooperative arrangement (the “Philippine Parties”), land rent to Belle Corporation and other non-operating income and expenses

• Vs. 2Q 2018
• Vs. 3Q 2017

Altira + Mocha

• 84%

+299% City of Dreams

• 14%
• 40%

Studio City +22%

• 7%

Total Macau Property EBITDA

• 10%
• 30%

City of Dreams Manila

• 37%
• 4%

Corporate and Other Expenses

• 14%
• 16%

Total Adjusted EBITDA

• 17%
• 27%

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246 170 208 171 147 34.4% 27.7% 32.5% 29.7% 24.5% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 50 100 150 200 250 300 3Q'17 4Q'17 1Q'18 2Q'18 3Q'18 Adjusted EBITDA (US$m) Adjusted EBITDA margin (%, right-axis)

City of Dreams 3Q 2018

Adjusted EBITDA declined 40% y-y

City of Dreams Adjusted EBITDA and Adjusted EBITDA margin(1) (2) City of Dreams Key Operating Metrics (US$m, unless

• therwise stated)

3Q 2018

• Vs. 2Q 2018
• Vs. 3Q 2017

VIP Rolling Chip 12,320 +17% +10% VIP win rate (%) 2.45%

• 44bps
• 109bps

Mass Table Drop 1,338 +13% +17% Mass Table Hold % 27.8%

• 59bps
• 448bps

VIP GGR 302

• 1%
• 24%

Mass GGR 372 +11% +1% Slots GGR 49

• 15%

+55% Total GGR 722 +4%

• 9%

Total Net Revenue 601 +4%

• 16%

Adjusted EBITDA 147

• 14%
• 40%

Source: Company filings Note: 1. “Adjusted EBITDA” is earnings before interest, taxes, depreciation, amortization, pre-opening costs, development costs, property charges and other, share-based compensation and other non-operating income and expenses. 2. “Adjusted EBITDA margin” is adjusted EBITDA divided by net revenue

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96 91 110 73 89 24.9% 24.8% 29.9% 23.3% 25.9% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 20 40 60 80 100 120 3Q'17 4Q'17 1Q'18 2Q'18 3Q'18 Adjusted EBITDA (US$m) Adjusted EBITDA margin (%, right-axis)

Studio City 3Q 2018

Adjusted EBITDA declined 7% y-y

Studio City Adjusted EBITDA and Adjusted EBITDA margin(1) (2) Studio City Key Operating Metrics (US$m, unless

• therwise stated)

3Q 2018

• Vs. 2Q 2018
• Vs. 3Q 2017

VIP Rolling Chip 5,094

• 16%

0% VIP win rate (%) 3.12% +46bps

• 87bps

Mass Table Drop 808

• 1%

+8% Mass Table Hold % 27.2% +276bps +221bps VIP GGR 159

• 1%
• 22%

Mass GGR 220 +10% +18% Slots GGR 19

• 9%
• 1%

Total GGR 398 +4%

• 3%

Total Net Revenue 345 +10%

• 10%

Adjusted EBITDA 89 +22%

• 7%

Source: Company filings Note: 1. “Adjusted EBITDA” is earnings before interest, taxes, depreciation, amortization, pre-opening costs, development costs, property charges and other, share-based compensation and other non-operating income and expenses 2. “Adjusted EBITDA margin” is adjusted EBITDA divided by net revenue

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(6) 17 18 18 (1) (6.3%) 12.4% 15.0% 14.9% (1.1%) (8.0%) (6.0%) (4.0%) (2.0%) 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% (10) (5)

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10 15 20 3Q'17 4Q'17 1Q'18 2Q'18 3Q'18 Adjusted EBITDA (US$m) Adjusted EBITDA margin (%, right-axis)

Altira 3Q 2018

Altira recorded negative adjusted EBITDA of US$1 million

Altira Macau Adjusted EBITDA and Adjusted EBITDA margin(1) (2) Altira Key Operating Metrics (US$m, unless

• therwise stated)

3Q 2018

• Vs. 2Q 2018
• Vs. 3Q 2017

VIP Rolling Chip 5,479 +14% +29% VIP win rate (%) 2.39%

• 125bps
• 20bps

Mass Table Drop 131

• 1%

+16% Mass Table Hold % 18.2%

• 152bps

+249bps VIP GGR 131

• 25%

+19% Mass GGR 24

• 9%

+35% Slots GGR 2 0% +174% Total GGR 157

• 23%

+22% Total Net Revenue 90

• 27%

+1% Adjusted EBITDA (1) n.a. n.a.

Source: Company filings Note: 1. “Adjusted EBITDA” is earnings before interest, taxes, depreciation, amortization, pre-opening costs, development costs, property charges and other, share-based compensation and other non-operating income and expenses. 2. “Adjusted EBITDA margin” is adjusted EBITDA divided by net revenue

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57 54 59 87 55 38.6% 32.1% 41.4% 50.2% 39.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0% 55.0%

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20 30 40 50 60 70 80 90 3Q'17 4Q'17 1Q'18 2Q'18 3Q'18 Adjusted EBITDA (US$m) Adjusted EBITDA margin (%, right-axis)

City of Dreams Manila 3Q 2018

Adjusted EBITDA declined 4% y-y

City of Dreams Manila Adjusted EBITDA and Adjusted EBITDA margin(1) (2) City of Dreams Manila Key Operating Metrics (US$m, unless

• therwise stated)

3Q 2018

• Vs. 2Q 2018
• Vs. 3Q 2017

VIP Rolling Chip 2,983 +1% 0% VIP win rate (%) 2.67%

• 103bps

+20bps Mass Table Drop 205 +4% +18% Mass Table Hold % 32.4% +292bps +245bps VIP GGR 79

• 28%

+8% Mass GGR 66 +14% +27% Slots GGR 49

• 2%

+17% Total GGR 195

• 11%

+16% Total Net Revenue 142

• 18%
• 4%

Adjusted EBITDA 55

• 37%
• 4%

Source: Company filings Note: 1. “Adjusted EBITDA” is earnings before interest, taxes, depreciation, amortization, pre-opening costs, development costs, property charges and other, share-based compensation, payments to the Philippine parties under the cooperative arrangement (the “Philippine Parties”), land rent to Belle Corporation and other non-operating income and expenses. 2. “Adjusted EBITDA margin” is adjusted EBITDA divided by net revenue

9 28.9 47.3 62.1 91.1 115.2 135.7 143.5 147.3 148.6 162.5 162.5 20.6 24.7 29.0 34.4 42.7 48.3 52.5 51.7 47.6 57.4 54.9 31.6 33.0 34.5 34.9 35.0 35.2 35.4 36.0 36.5 37.2 37.7 81.1 105.0 125.6 160.3 192.9 219.2 231.4 235.0 232.7 257.1 255.1

• 50.0

100.0 150.0 200.0 250.0 300.0 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18 2Q'18 3Q'18 Belle Corp. PLC Melco

City of Dreams Manila – Adjusted EBITDA breakdown

Growing share of Adjusted EBITDA from City of Dreams Manila

Share of Adjusted EBITDA (Trailing 12 Months, US$ million)(1)

Source: Melco Resorts Notes: 1. Based on company filings; Premium Leisure Corporation’s (PLC) share represents payments made to the Philippine Parties while Belle Corporation’s share represents cash payments made to Belle Corporation for building and land rent

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APPENDIX

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14 19 21 14 10 219 195 206 180 169 85 106 112 87 88 55 58 64 67 66 (34) (35) (22) (33) (29) (50)

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100 150 200 250 300 350 400 450 3Q'17 4Q'17 1Q'18 2Q'18 3Q'18 Corporate and Other Expenses City of Dreams Manila Studio City City of Dreams Altira + Mocha 339 343 382 315 304

Melco Adj. EBITDA (assuming normalized VIP win rate) 3Q 2018

Adjusted EBITDA (Normalized for Hold) declined 10% y-y

Melco Adjusted EBITDA (Normalized for Hold) Breakdown (US$ million)(1)(2) Melco Adjusted EBITDA (Normalized for Hold) Growth Breakdown(1)

• Vs. 2Q 2018
• Vs. 3Q 2017

Altira + Mocha

• 30%
• 27%

City of Dreams

• 6%
• 23%

Studio City 0% +2% Total Macau Property EBITDA

• 5%
• 16%

City of Dreams Manila

• 2%

+20% Corporate and Other Expenses

• 14%
• 16%

Total Hold-Adjusted EBITDA

• 3%
• 10%

Source: Melco Resorts Note: 1. “Adjusted EBITDA” is earnings before interest, taxes, depreciation, amortization, pre-opening costs, development costs, property charges and other, share-based compensation, payments to the Philippine parties under the cooperative arrangement (the “Philippine Parties”), land rent to Belle Corporation and other non-operating income and expenses 2. Normalized VIP win rate is assumed to be 2.85%, which represents the midpoint of our expected rolling chip win rate. Melco Adjusted EBITDA (Normalized for Hold) is an estimate and is for illustrative purpose only

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Melco: Table Yield Analysis

Continue to optimize table allocation across our portfolio of Integrated Resorts

Average number of VIP Gaming Tables

Source: Melco Resorts

Daily Average Win Per VIP Table (US$) Average number of Mass Gaming Tables Daily Average Win Per Mass Table (US$) 3Q’17 4Q’17 1Q’18 2Q’18 3Q’18 Altira 62 64 65 64 67 City of Dreams 143 145 145 148 139 Studio City 45 46 46 46 44 City of Dreams Manila 116 115 117 120 125 3Q’17 4Q’17 1Q’18 2Q’18 3Q’18 Altira 19,206 27,280 29,260 30,273 21,122 City of Dreams 30,033 23,287 25,710 22,608 23,680 Studio City 48,841 37,953 43,273 38,716 38,681 City of Dreams Manila 6,921 8,298 7,600 10,037 6,904 3Q’17 4Q’17 1Q’18 2Q’18 3Q’18 Altira 39 39 39 39 39 City of Dreams 333 334 333 335 328 Studio City 246 247 248 247 244 City of Dreams Manila 175 176 177 179 182 3Q’17 4Q’17 1Q’18 2Q’18 3Q’18 Altira 4,924 6,397 7,667 7,301 6,706 City of Dreams 12,054 11,425 12,660 10,994 12,304 Studio City 8,255 9,736 10,141 8,854 9,815 City of Dreams Manila 3,240 3,623 3,983 3,564 3,967

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11.9 11.2 11.0 13.8 15.5 16.4 18.2 20.5 18.5 18.1 18.3 16.0 14.2 12.5 13.3 13.0 12.3 11.5 12.3 13.2 13.0 11.5 12.1 11.4 12.7 11.0 12.3

• 5.0

10.0 15.0 20.0 25.0 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18 2Q'18 3Q'18 31.1 29.2 32.7 31.7 33.4 39.8 36.0 40.6 42.7 35.3 27.4 31.7 28.4 21.2 19.0 21.2 23.8 22.4 19.0 19.9 26.0 26.9 30.0 23.3 25.7 22.6 23.7

• 5.0

10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18 2Q'18 3Q'18

City of Dreams Daily GGR Per Table

City of Dreams: Daily Average GGR per VIP Table (US$ ‘000)

Source: Melco Resorts

City of Dreams: Daily Average GGR per Mass Table (US$ ‘000)

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• 500

1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18 2Q'18 3Q'18 VIP Gross Gaming Revenue Mass Gross Gaming Revenue 0% 5% 10% 15% 20% 25% 30% 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18 2Q'18 3Q'18

• 40%
• 30%
• 20%
• 10%

0% 10% 20% 30% 40% 50%

• 200

400 600 800 1,000 1,200 1,400 1,600 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18 2Q'18 3Q'18 Adjusted Property EBITDA YoY% (Right-axis)

• 30%
• 20%
• 10%

0% 10% 20% 30%

• 1,000

2,000 3,000 4,000 5,000 6,000 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18 2Q'18 3Q'18 Net Revenue YoY% (Right-axis)

Melco: Historic Revenue and Adjusted Property EBITDA

Melco’s Macau Mass GGR has already surpassed the previous peak level in 3Q’14

Melco: Last 12 months Total Net Revenue (US$ million) Melco: Last 12 months Total Adjusted Property EBITDA margin Melco: Last 12 months Total Adjusted Property EBITDA (US$ million) Melco: Last 12 months Macau-only VIP & Mass GGR (US$ million)

Source: Company Filings Notes: 1. “Adjusted Property EBITDA” is earnings before interest, taxes, depreciation, amortization, pre-opening costs, development costs, property charges and other, share-based compensation, payments to the Philippine Parties, land rent to Belle Corporation, net gain on disposal of property and equipment to Belle Corporation, Corporate and Other expenses and other non-operating income and expenses. 2. Adjusted Property EBITDA margin is adjusted Property EBITDA divided by net revenue

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Morpheus: Exterior

Source: Melco Resorts

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Morpheus: Lobby

Source: Melco Resorts

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Morpheus: Sky Pool

Source: Melco Resorts

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Morpheus: Alain Ducasse at Morpheus

Source: Melco Resorts

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Morpheus: Other restaurants

Source: Melco Resorts

Voyages by Alain Ducasse Club Lounge Yi

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Morpheus: Spa

Source: Melco Resorts

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Morpheus: Art on 23

Source: KAWS, Melco Resorts

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Morpheus: Standard room (58 square meters)

Source: Melco Resorts

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Morpheus: Prestige Suite (106 square meters)

Source: Melco Resorts

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Morpheus: Villas (510 to 582 square meters)

Source: Melco Resorts

Duplex Villa Pool Villa

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THANK YOU