Title: MOHEGAN TRIBAL GAMING AUTHORITY
1MOHEGAN TRIBAL GAMING AUTHORITY Deutsche
Bank Sixteenth Annual Leveraged Finance
Conference September 24, 2008 Scottsdale,
Arizona Presented by Leo M. Chupaska, Chief
Financial Officer of MTGA Peter J. Roberti, Vice
President of Finance of MTGA
2Disclosure Regarding Forward-Looking Statements
- Some information included in this presentation is
not strictly historical in nature and involve
important risks and - uncertainties that could significantly affect
anticipated results in the future. Such
statements are forward-looking - statements, within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the
Securities - Exchange Act of 1934. These forward-looking
statements are only predictions and actual events
or results may - differ materially from any forward-looking
statements made during this presentation. - Factors that could cause actual results to vary
from these forward-looking statements are more
fully described in - our Annual Report on Form 10-K, as filed with the
Securities and Exchange Commission, for the
fiscal year - ended September 30, 2007, under the heading
Risk Factors. Forward-looking statements made
during this - presentation represent the Authoritys current
outlook only as of todays date. The Authority
does not undertake - any obligation to update or supplement any
forward-looking statements to reflect subsequent
events or - circumstances. The Authority cannot assure you
that projected results will be achieved or that
predicted events - will occur.
3Disclosure Regarding Non-GAAP Measures
- The following presentation includes certain
financial measures of performance that are - not calculated in accordance with accounting
principles generally accepted in the United - States of America, or GAAP. In accordance with
the rules of the Securities and Exchange - Commission, we have reconciled these non-GAAP
measures to the most directly - comparable GAAP measure in the Appendix section
of this presentation. A copy of other - relevant slides pertaining to the use of non-GAAP
measures is available on our website, - www.mtga.com, at Investor Relations/Online
Presentations/2008 Presentations, titled - Disclosure Regarding Non-GAAP Measures.
4Agenda
- Mohegan Tribe Overview
- Mohegan Tribal Gaming Authority Overview
- Mohegan Sun - Project Horizon
- Mohegan Sun at Pocono Downs
- Diversification Efforts
- Financial Overview
- Capital Structure, Liquidity, Distributions and
Capital Expenditures - Focus - Next Twelve Months
- Questions
- Appendix
5Mohegan Tribe Overview
MOHEGAN TRIBAL GAMING AUTHORITY
6Mohegan Tribe Overview
- The Mohegan Tribe received federal recognition in
1994 - Approximately 1,700 members
- Mohegan Sun and grounds are situated on 185 of
the Mohegan Tribes 507-acre reservation in
southeastern CT - Mohegan Tribe Distribution Policy
- Approved by the Bureau of Indian Affairs (BIA)
- Distributions are made on a quarterly basis to
members - Tribal Council determines level of tribal
stipends that will be distributed to members - Distributions to members under 18 years of age
are deposited to a trust created by the Tribe
7Mohegan Tribe Overview
- Nine member Tribal Council serves as governing
body - Bruce S. Bozsum Chairman and Member
- Marilynn R. Malerba Vice Chairwoman and Member
- William Quidgeon, Jr. Treasurer and Member
- Allison D. Johnson Recording Secretary and
Member - Ralph James Gessner, Jr. Corresponding
Secretary and Member - Mark W. Hamilton Member
- Mark F. Brown Member
- Cheryl A. Todd Member
- Thayne D. Hutchins, Jr. Member
8Mohegan Tribal Gaming Authority Overview
MOHEGAN TRIBAL GAMING AUTHORITY
9Mohegan Tribal Gaming Authority Management
Overview
Mohegan Tribal Gaming Authority
MTGA Gaming
Mohegan Ventures Wisconsin
Mohegan Ventures Northwest
Mohegan Commercial Ventures PA
Mohegan Gaming Hospitality
Wisconsin Tribal Gaming
Salishan Mohegan
Downs Racing
Menominee Project
Cowlitz Project
Mohegan Sun at Pocono Downs
Mohegan Sun
Mohegan Resorts
10Mohegan Tribal Gaming Authority Management
Bruce S. Bozsum Chairman Management Board
Mitchell Grossinger Etess President and CEO MTGA
and Mohegan Sun
Jeffrey E. Hartmann Executive VP and COO MTGA
and Mohegan Sun
Robert J. Soper President and CEO Mohegan Sun
at Pocono Downs
Leo M. Chupaska CFO MTGA
Toby Arnheim Senior VP Project Management MTGA
Marcia Seligman VP General Counsel
MTGA
Peter J. Roberti VP Finance MTGA
Paul I. Brody VP Development MTGA
11Mohegan Sun Project Horizon
MOHEGAN TRIBAL GAMING AUTHORITY
12Project HorizonProject Components
13Project Horizon Sunrise Square
- Asian gaming expansion
- David Rockwell designed
- 8,500 square-foot gaming floor featuring 46
table games - 4,000 square-foot Hong Kong Street food
outlet - 5,000 square-foot bus lobby
- Successfully opened in August 2007
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15Project HorizonCasino of the Wind
- 64,000 square-foot expansion adjacent to Casino
of the Sky - 45,000 square feet of gaming space, including
- Approximately 660 slot machines
- 28 table games
- 42-table poker room
- Chiefs Deli
- 35-foot high electronic animated water wall
- Successfully opened on August 29, 2008
- Jimmy Buffetts Margaritaville Restaurant and
Retail Outlet - Two-levels
- 16,000 square feet
- Opening on September 29, 2008
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20Project HorizonEarth Expansion Suspension of
the Project
- On September 22, 2008, we announced that we are
suspending the Earth Expansion and Parking
components of Project Horizon - We believe that this is the most prudent course
of action given the weakness in the economy - We will reevaluate the feasibility of these
components in approximately twelve months
21Project HorizonEarth Expansion Suspension of
the Project
- Next Steps
- Finish the foundation work and bring to grade
level - Back fill remaining to grade level
- Steel, Glass and other material contracts were
not executed - Refurbish the Winter Entrance which was closed
down - Connect the Winter Garage to the Winter Entrance
- Finish construction drawings November 2008
- Complete bid packages
- Orderly close-out of construction contracts
- Preserve key construction and support staff,
where possible
22Mohegan Sun at Pocono Downs
MOHEGAN TRIBAL GAMING AUTHORITY
23Mohegan Sun at Pocono Downs
- The Pocono Downs property, including Project
Sunrise which opened on July 17, 2008, now
includes - 2,500 slot machines
- Several dining options including
- Ruth Chris Steakhouse, Rustic Kitchen Bistro and
Bar and Bar Louie - A 300-seat Timbers Buffet
- A quick-serve dining area including Johnny
Rockets, Hot Dog Hall of Fame, Puck Express by
Wolfgang Puck, Ben and Jerrys Ice Cream and
Betty and Joes Baker and Coffee Maker - Six retail outlets
- Brookstone, Marshall Rousso, Misura, Reflections,
Crossing Vineyards Wine and Cheese Shop and MOGO - Three bars/lounges
- Sunburst Bar, Breakers and Pearl Sushi Bar
- Additional parking and bus amenities
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30Diversification Efforts
MOHEGAN TRIBAL GAMING AUTHORITY
31 Diversification Efforts
- New York
- Management Contract
- Cowlitz Tribe Project
- Management and Development Contract
- Menominee Tribe Project
- Management and Development Contract
32New YorkMTGA Gaming, LLC
- Overview
- In February 2008, the State of New York awarded
the New York thoroughbred racing franchise to New
York Racing Authority (NYRA) for an additional
30-year term - Under the approved legislation, a gaming operator
would be selected to operate 4,500 VLTs at
Aqueduct - In April 2008, MTGA submitted an application to
manage the 4,500 VLTs at Aqueduct - The proposed facility will include the following
- 4,500 VLTs
- Dining options
- Limited retail
- The proposed facility is expected to open 12 to
14 months after the selection of a manager - There are 3 applicants, including MTGA, competing
for the management contract - Other competitors are Delaware North and SL Green
with Hard Rock
33 Cowlitz Project Salishan-Mohegan, LLC
- Overview
- The Cowlitz Tribe is a federally recognized
landless Tribe, with most members residing in
southwestern Washington state - The Tribe is seeking to build a casino and resort
in La Center, Washington which is located near
Portland, Oregon - MTGA has partnered with a David Barnett, a
Cowlitz Tribal member, to develop and manage the
property - Progress Report
- Land for planned casino site has been acquired
- Cowlitz received a restored lands opinion in late
2005 from NIGC - Final EIS was delivered to the Central BIA office
in Washington D.C. - Washington state gaming regulators and the
Washington Tribes have agreed on new gaming
compacts which materially expand the scope of
gaming - Awaiting a Record of Decision from the BIA
34Menominee ProjectWisconsin Tribal Gaming, LLC
- Overview
- Menominee Tribes reservation is located in
Keshena, WI - Currently projecting a casino and resort in
Kenosha, WI at the Dairyland Greyhound track - Site is 50 miles north of Chicago and 30 miles
south of Milwaukee - MTGA will develop and manage the property
- Progress Report
- Land into Trust Application submitted in July
2004 - Two referendums were passed, one in the city of
Kenosha and one in the county of Kenosha - The BIAs Midwest Regional Office issued a two
part recommendation recommending the land be
taken into Trust for the project - The Menominee Tribe and the city and county of
Kenosha have entered into intergovernmental
agreements - Final EIS has been moved to the Central BIA
office in Washington D.C. for review - Awaiting a Record of Decision from the BIA
35Financial Overview
MOHEGAN TRIBAL GAMING AUTHORITY
36 Consolidated Operating Results Nine Months
Ended June 30, 2008 and 2007
- Gaming revenues of 1.04 billion, a 3.5 decrease
from June 30, 2007 - Table games revenues of 278.1 million, a 4.7
decrease from June 30, 2007 - Gross slot revenues of 755.9 million, a 3.0
decrease from June 30, 2007 - Non-gaming revenues of 219.9 million, a 10.0
increase over June 30, 2007 - Net revenues of 1.16 billion, a 2.1 decrease
from June 30, 2007 - Income from operations of 146.1 million, a 32.7
decrease from June 30, 2007 - Net income of 62.2 million, a 50.6 decrease
from June 30, 2007 - Adjusted EBITDA of 221.7 million, a 23.9
decrease from June 30, 2007
37Operating Statistics Nine Months Ended June 30,
2008 and 2007
38 Consolidated Operating Results Nine Months
Ended June 30, 2008 and 2007
39 Connecticut Slot Statistics
40 Connecticut Slot Statistics
41 Pennsylvania Slot Statistics
Mt. Airy opened in October 2007
42 Pennsylvania Slot Statistics
Mt. Airy opened in October 2007
43 Mohegan Sun Annual Compound Rate
(1) LTM through June 30, 2008
44 Mohegan Sun Annual Compound Rate
CAGR 4.0 (2)
3,389 (2)
(1) LTM through June 30, 2008 (2) Normalized
for table hold impact in 3Q08
45 MTGA Annual Compound Rate
CAGR12.1
( in millions)
CAGR 8.3
(1) LTM through June 30, 2008
46Capital Structure, Liquidity, Distributions and
Capital Expenditures
MOHEGAN TRIBAL GAMING AUTHORITY
47 Capital Structure and Liquidity
48 Distributions and Capital Spending
49 Financing Update
- We currently have a revolving credit facility
with Bank of America, N.A., as the administrative
agent, which provides for up to 1.0 billion in
borrowing capacity - We have commenced discussions with Bank of
America, N.A. and certain of our other lenders
under our revolving bank credit facility
regarding amendments to our existing covenants
relating to the scope and completion of Project
Horizon - We are currently exploring various refinancing
options with respect to our 2003 6 3/8 Senior
Subordinated Notes which mature on July 15, 2009
50 Focus Next Twelve Months
MOHEGAN TRIBAL GAMING AUTHORITY
51Focus Next Twelve Months
- Strengthen Balance Sheet
- Maximize Returns
- Mohegan Sun
- Mohegan Sun at Pocono Downs
- Develop MTGA-owned Real Estate with 3rd Parties
- Strategic vision to grow the Company outside the
Northeastern United States - Measured growth opportunities which do not
require significant capital outlay to realize
returns
52Questions
53Appendix
54Reconciliation of Adjusted EBITDA to Net Income
For the Nine Months Ended June 30, 2008 and 2007