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Group 3Strategic ManagementFinal Presentation Powerpoint
Citation preview
MACAU LAS VEGAS
Zully RuizMandeep SinghErnesto SerrateWiswin PitikulsathitThomas Zhong
June 2011
Introduction
Proposed Strategic Investments
Resources & Capabilities
Implementation
Listed on NYSE and HKEX
Market Cap of 18.26 Billion
Revenue - NOP (2010)
4.18 billion - 625 million
Kubera Palace
World Series Speed Baccarat
Online Gaming
Wynn Golf
Proposed Strategic Investments
Kubera Palace
The Kubera structure
Two theater rooms
International Indian Theme Academy Awards Bollywood awards
Upscale F/B Options
Highlighted Internal Value Drivers
Kubera Palace
Environmental EventsIndia and China will become the leading economies in the next five years
Decrease in the gap of income distribution in (BRICs countries)
The rising level of education in developing countries (BRICs)
Outbound Indian MICE Travelers
No of Indian Visitors to Macau
No of MICE events and participants
in Macau
Limited No of Casino tables in Macau
Highlighted External Value Drivers
Indian Population Age Forecast
Indian Outbound Tourism Expenditure to East and Southeast Asia
Indian Outbound Travelers
2014 2015 2016 20170
20000000400000006000000080000000
100000000120000000140000000160000000180000000200000000
128809356142814039
160534357182976416
39347821 47087248 5695593969534411
32700943 38989534 47019680 57266770
Revenue EBIT Net CF
(mill
ion
USD
)
Kubera Palace
Investment32.3 million
Discount Rate8%
NPV158,694,902
ROI662%
World Series Speed Baccarat
The speed baccarat game and tournament
Secondary betting
Entertainment value for participants and spectators
Highlighted Internal Value Drivers
World Series Speed Baccarat
Environmental EventsIndia and China will become the leading economies in the next five years
Decrease in the gap of income distribution in (BRICs countries)
The Chinese economy ability to sustain growth for the next 5 years
Baccarat gaming revenue
Gross gaming revenue for Macau
Per capita spending from CN & HK & TW
no of guests staying in 5 star
hotel from CN & HK
Highlighted External Value Drivers
GDP of ChinaPopulation in China
with above 30,000 USD income
Exchange rates between RMB to
Macau MOP
2012 2013 2014 20150
10000000
20000000
30000000
40000000
50000000
60000000
16590683
35329443
4712940950409249
4990683
23381443
34822969 37733616
3806801
19990670
30644213 33205582 Revenue EBIT Net CF
(mill
ion
USD
)
World Series Speed Baccarat
Investment30.0 million
Discount Rate14%
NPV120,553,448
ROI397%
Online Gaming
Online Gaming Platform
Internet gaming technical support
Highlighted Internal Value Drivers
Online Gaming
Environmental EventsCloud computing technologies will become the computing standard of the future
Increasing amount information on the internet will promote cybercrime into the future
Increasing pressures to legalize and regulate the US gaming in the next 5 years
Deregulation of online gaming in The USA + Legal in most EU
countries
Interest in internet gaming
Global eGaming Gross Win both Internationally and in The US.
Highlighted External Value Drivers
Number of digital security breaches
Users and use of technological services
2012 20130
50100150200250300350400450
365420
55 69.434.3 43.2
Revenue EBIT Net CF
(mill
ion
USD
)
Online Gaming
Investment6.0 million
Discount Rate17%
NPV60,863,211
ROI1243%
Wynn Golf
The game of golf (Sports and Entertainment)
The Club house (Food and Beverage)
The Golf Pro shop
Wynn Golf
Misalignment
Keep as status quo
Highlighted Internal Value Drivers
Wynn Golf
Environmental EventsIndia and China will become the leading economies in the next five years
Decrease in the gap of income distribution in (BRICs countries)
The Chinese economy ability to sustain growth for the next 5 years
Number of guests staying in 5 star hotel
from China and Hong Kong
Per capita spending from China / Hong Kong
and Taiwan
Increase in Gross gambling revenue
for Macau
Highlighted External Value Drivers
Exchange rates between RMB to Macau MOP
Population in China above 30,000USD
income GDP of China
2012 2013 2014 2015 20160.0
1000000.0
2000000.0
3000000.0
4000000.0
5000000.0
6000000.05241400.0 5241400.0 5241400.0 5241400.0 5241400.0
1796400.0 1796400.0 1796400.0 1796400.0 1796400.0
2695160.0 2695160.0 2695160.0 2695160.0 2695160.0Revenue EBIT Net CF
Wynn Golf Course
Investment47 million
Discount Rate12%
NPV (perpetuity)26,951,600
ROI57%
Finance
Operations
Research & Development
Physical Resources
Administration
Marketing
Human Resources
Business Development
World Series of Baccarat86%
Wynn Golf Club100%
Online Gaming33%
Kubera’s Palace88%
Resources and Capabilities
N/A
Task/ Months
Q3/2011 Q4/2011 Q1/2012 Q2/2012 Q3/2012 Q4/2012 Q1/2013 Q2/2013 Q3/2013 Q4/2013 Q1/2014
Building1234
Theatre function123
International Indian Theme Academy Awards123
Upscale F&B Option1234
Implementation Time Table (Kubera Palace)
BuildingStage 1 Tender and approval for the design of the structureStage 2 All stakeholders’ approval of the project (Board of directors, government, etc.)Stage 3 Actual ground breaking and construction / soft furnishingStage 4 Opening of Kubera Palace
Theatre functionStage 1 Initiate contact to Hollywood agent. Stage 2 Negotiation and finalization with Bollywood starsStage 3 Soft rehearsals for grand opening / grand opening
International Indian Themed Academy AwardStage 1 Establish relationship with (IFFA)Stage 2 Finalising agreement of exclusive right to held IFFAStage 3 Planning and execution of the event
Upscale F&B OptionStage 1 Recruitment of key personnelStage 2 Finalisation of restaurant conceptStage 3 Hiring / Selection / Training of operational personnelStage 4 Opening of the restaurant
World Series Speed Baccarat
35%
Online Gaming18%
Kubera Palace47%
Value Creation (NPV)
$0.003 per share
(Wynn Resorts)
Increase in share price
World Series Speed Bacarrat
Online Gaming Kubera Palace$0
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
30,000,000
6,000,000
32,300,000
123,708,145.10
77,485,500.00
246,314,375.94
120,553,448
60,863,211
158,694,902
PRINCIPAL INVESTMENT TOTAL RETURN NPV
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