201
6
Interim Repor
t
中期報告
2016 Interim Report 中期報告
Wynn Macau, Limited
Rua Cidade de Sintra, NAPE, Macau
(853) 2888-9966
www.wynnmacau.com
2 Corporate Information
4 Highlights
5 Management Discussion and Analysis
30 Directors and Senior Management
44 Other Information
57 Report on Review of Interim
Financial Information
59 Interim Financial Information
88 Definitions
93 Glossary
Contents
2 Wynn Macau, Limited
Corporate Information
BOARD OF DIRECTORS
Executive Directors
Mr. Stephen A. Wynn (Chairman of the Board)
Mr. Gamal Aziz
Ms. Linda Chen
Mr. Ian Michael Coughlan
Non-Executive Director
Mr. Matthew O. Maddox
Independent Non-Executive Directors
Dr. Allan Zeman, GBM, GBS, JP
(Vice-chairman of the Board)
Mr. Jeffrey Kin-fung Lam, GBS, JP
Mr. Bruce Rockowitz
Mr. Nicholas Sallnow-Smith
AUDIT AND RISK COMMITTEE
Mr. Nicholas Sallnow-Smith (Chairman)
Mr. Bruce Rockowitz
Dr. Allan Zeman, GBM, GBS, JP
REMUNERATION COMMITTEE
Mr. Nicholas Sallnow-Smith (Chairman)
Mr. Jeffrey Kin-fung Lam, GBS, JP
Mr. Matthew O. Maddox
Mr. Bruce Rockowitz
NOMINATION AND CORPORATE
GOVERNANCE COMMITTEE
Mr. Jeffrey Kin-fung Lam, GBS, JP (Chairman)
Mr. Nicholas Sallnow-Smith
Dr. Allan Zeman, GBM, GBS, JP
COMPANY SECRETARY
Ms. Ho Wing Tsz Wendy, FCIS, FCS
AUTHORIZED REPRESENTATIVES
Dr. Allan Zeman, GBM, GBS, JP
Ms. Ho Wing Tsz Wendy, FCIS, FCS
(Mrs. Seng Sze Ka Mee, Natalia as alternate)
AUDITORS
Ernst & Young
Certified Public Accountants
LEGAL ADVISORS
As to Hong Kong and U.S. laws:
Skadden, Arps, Slate, Meagher & Flom
As to Hong Kong law:
Mayer Brown JSM
As to Macau law:
Alexandre Correia da Silva
As to Cayman Islands law:
Maples and Calder
3Interim Report 2016
Corporate Information
REGISTERED OFFICE
P.O. Box 309
Ugland House
Grand Cayman
KY1-1104
Cayman Islands
HEADQUARTERS IN MACAU
Rua Cidade de Sintra
NAPE, Macau SAR
PRINCIPAL PLACE OF BUSINESS
IN HONG KONG
Level 54, Hopewell Centre
183 Queen’s Road East
Hong Kong
PRINCIPAL SHARE REGISTRAR AND
TRANSFER OFFICE
Appleby Trust (Cayman) Limited
HONG KONG SHARE REGISTRAR
Computershare Hong Kong Investor
Services Limited
STOCK CODE
1128
COMPANY WEBSITE
www.wynnmacaulimited.com
4 Wynn Macau, Limited
Highlights
FINANCIAL HIGHLIGHTS
For the Six Months Ended
30 June
2016 2015
HK$ HK$
(in thousands,
except per share amounts
or otherwise stated)
Casino revenues 9,153,749 9,623,267
Other revenues 536,076 631,024
Adjusted EBITDA 2,547,722 2,548,692
Profit attributable to owners 1,140,905 1,437,001
Earnings per Share — basic and diluted (HK$) 0.22 0.28
5Interim Report 2016
Management Discussion and Analysis
OVERVIEW
Wynn Macau opened to the public on 6 September 2006 at the center of casino activities on
the urban Macau peninsula. In December 2007 and November 2009, Wynn Macau completed
expansions, adding more gaming space and additional food and beverage and retail amenities.
Encore at Wynn Macau, a further expansion of Wynn Macau that added a fully integrated resort
hotel, opened in April 2010.
Wynn Macau and Encore features:
Approximately 284,000 square feet of casino space, offering 24-hour gaming and a full range of
games, including private gaming salons, sky casinos and a poker pit;
Two luxury hotel towers with a total of 1,008 spacious rooms and suites;
Casual and fine dining in eight restaurants;
Approximately 57,000 square feet of high-end, brand-name retail shopping, including stores
and boutiques such as Bvlgari, Cartier, Chanel, Dior, Dunhill, Ermenegildo Zegna, Ferrari,
Giorgio Armani, Graff, Gucci, Hermes, Hugo Boss, Jaeger-LeCoultre, Loro Piana, Louis Vuitton,
Miu Miu, Piaget, Prada, Roger Dubuis, Rolex, Tiffany, Vacheron Constantin, Van Cleef & Arpels,
Versace, Vertu, and others;
Recreation and leisure facilities, including two health clubs and spas, a salon, and a pool; and
Approximately 31,000 square feet of lounges and meeting facilities.
The following table presents the number of casino games available at our Macau Operations:
As at 30 June
2016 2015
VIP table games 178 237
Mass market table games 230 208
Slot machines 805 693
Poker tables 14 13
6 Wynn Macau, Limited
Management Discussion and Analysis
Our aim is to build and operate appropriately scaled integrated resorts that attract a wide range
of customer segments, generate strong financial results, and complement their surrounding market
areas. To attract and retain our customers, we design and continually refresh our integrated resorts
to create unique customer experiences across a wide range of gaming and non-gaming amenities
and emphasize human resources and staff training to ensure our employees are prepared to provide
the luxury service that our guests expect.
In response to on-going evaluation of our operations and the feedback from our guests, we have
made, and will continue to make enhancements and refinements to our resort complex.
Cotai Development — Wynn Palace
On 22 August 2016, the Group opened Wynn Palace, an integrated resort, featuring:
Approximately 500,000 square feet of casino space, offering 24-hour gaming and a full range of
games, including private gaming salons and sky gaming;
A luxury hotel with a total of 1,706 spacious rooms, suites and villas;
Casual and fine dining in nine restaurants and in other areas;
Approximately 200,000 square feet of high-end, brand-name retail shopping, including stores
and boutiques;
Recreation and leisure facilities, including a gondola ride, health club, spa, salon and pool;
Approximately 40,000 square feet of ballroom and meeting facilities; and
Public attractions including a performance lake and floral art displays.
The total project budget was approximately HK$32 billion including construction costs, capitalized
interest, pre-opening expenses, land costs and financing fees, and as of 30 June 2016, we had
invested approximately HK$30 billion on the project.
7Interim Report 2016
Management Discussion and Analysis
On 29 July 2013, WRM and Palo finalized and executed a guaranteed maximum price construction
(“GMP”) contract with Leighton Contractors (Asia) Limited, acting as the general contractor. Under
the GMP contract, the general contractor is responsible for both the construction and design of
the Wynn Palace project. The general contractor is obligated to substantially complete the project
in the first half of 2016 for a guaranteed maximum price of HK$20.6 billion. The performance of
the general contractor is backed by a full completion guarantee given by CIMIC Group Limited
(formerly Leighton Holdings Limited), the parent company of the general contractor, as well as a
performance bond for 5% of the guaranteed maximum price. We have assessed certain liquidated
damages for the general contractor’s failure to complete certain milestones in accordance with the
time prescribed in the GMP contract. The general contractor has requested the reversal of liquidated
damages, additional compensation and extensions of time. We view our assessment of liquidated
damages as fully supported by the terms of the GMP contract, and we view the general contractor’s
requests as unfounded and intend to adhere to the terms of the GMP contract as agreed with the
general contractor.
Table Game and Slot Machine Allocation
On 12 August 2016 WRM received notification from The Gaming Inspection and Coordination
Bureau of Macau (“DICJ”) that Wynn Palace was approved to commence operations on 22 August
2016. DICJ authorized 100 new table games for operation at Wynn Palace effective 22 August 2016,
25 new table games for operation on 1 January 2017 and 25 new table games for operation on 1
January 2018 for a total of 150 new table games in the aggregate. DICJ also approved 1,145 slot
machines for operation at Wynn Palace effective 22 August 2016. In addition, DICJ approved the
transfer of 250 table games from Wynn Macau to Wynn Palace. As at 31 August 2016, 250 table
games from Wynn Macau have been transferred to Wynn Palace, bringing the total number of table
games at Wynn Palace to 350 and the total number of table games at Wynn Macau to 271.
Macau
Macau, which was a territory under Portuguese administration for approximately 450 years, was
transferred from Portuguese to Chinese political control in December 1999. Macau is governed as
a special administrative region of China and is located approximately 37 miles southwest of, and
approximately one hour away via ferry from, Hong Kong. Macau, which has been a casino destination
for more than 50 years, consists principally of a peninsula on mainland China, and two neighboring
islands, Taipa and Coloane, between which the Cotai area is located. We believe that Macau is
located in one of the world’s largest concentrations of potential gaming customers despite a recent
decline in gaming revenue. According to Macau statistical information, casinos in Macau, the largest
gaming market in the world, generated approximately HK$104.6 billion in gaming revenue during
the six months ended 2016. Since the introduction of new casinos starting in 2004, the Macau market
has experienced a significant increase in annual gaming revenue from the HK$21.5 billion generated
in 2002; however, the Macau market has recently experienced significant year-over-year declines,
including a 11.4% decline in the first half of 2016.
8 Wynn Macau, Limited
Management Discussion and Analysis
FACTORS AFFECTING OUR RESULTS OF OPERATIONS AND FINANCIAL CONDITION
Tourism
The levels of tourism and overall gaming activities in Macau are key drivers of our business. Both
the Macau gaming market and visitation to Macau have grown significantly leading up to 2014.
However, beginning in 2014, the Macau gaming market experienced its first year-over-year decline
in annual gaming revenues since its liberalization in 2002. Commencing from the fourth quarter of
2014, tourist arrivals to Macau had experienced a downward trend. Statistics show a slight year-
over-year increase of 0.1% with 14.8 million tourist arrivals to Macau during the six months ended 30
June 2016. However, the decline in tourists’ spending habits and gaming activities have continually
contributed to the further reduction in gaming revenues in Macau for the six months ended 30 June
2016, despite the slight increase in tourist arrivals to Macau.
The Macau market has also experienced tremendous growth in capacity since the opening of Wynn
Macau. As at 30 June 2016, there were 32,100 hotel rooms, 5,998 table games and 13,706 slots
in Macau, compared to 12,978 hotel rooms, 2,762 table games and 6,546 slots as at 31 December
2006.
Gaming customers traveling to Macau typically come from nearby destinations in Asia including
mainland China, Hong Kong, Taiwan, South Korea and Japan. According to the Macau Statistics and
Census Service Monthly Bulletin of Statistics, approximately 90.2% of visitors to Macau for the six
months ended 30 June 2016 were from mainland China, Hong Kong, and Taiwan.
Tourism levels in Macau are affected by a number of factors, all of which are beyond our control. Key
factors affecting tourism levels in Macau may include, among others:
Prevailing economic conditions in mainland China and Asia;
Restrictions, conditions or other factors which affect visitation by citizens of mainland China to
Macau;
Various countries’ policies on currency exchange controls and currency export restrictions, for
example on the Renminbi, the currency of the PRC, and the issuance of travel visas that may be
in place from time to time;
Competition from other destinations which offer gaming and/or leisure activities;
Occurrence of natural disasters and disruption of travel; and
Possible outbreaks of infectious disease.
9Interim Report 2016
Management Discussion and Analysis
Economic and Operating Environment
A significant number of our gaming customers at Wynn Macau come from mainland China. Any
economic contraction or uncertainty in China would impact the number of patrons visiting our
property and the amount they may be willing to spend. In addition, policies adopted from time to
time by the Chinese government, including any travel restrictions imposed by China on its citizens,
such as restrictions imposed on exit visas granted to residents of mainland China for travel to Macau,
could affect the number of visitors from mainland China to our property. It is not known when, or if,
policies restricting visitation by mainland Chinese citizens to Macau and Hong Kong will be put in
place and travel policies may be adjusted, without notice, in the future. Furthermore, the Chinese
government’s ongoing anti-corruption campaign has influenced the behavior of Chinese consumers
and their spending patterns both domestically and abroad. The campaign has specifically led to
tighter monetary transfer regulations, including real time monitoring of certain financial channels,
which has affected and may continue to impact the number of visitors and the amount of money
they bring from mainland China to Macau. The overall effect of the campaign and monetary transfer
restrictions may continue to impact Macau or result in an even greater decline in visitation and may
continue to negatively affect our revenues and results of operations.
Competition
Since the liberalization of Macau’s gaming industry in 2002, there has been a significant increase
in the number of casino properties in Macau. There are six gaming operators in Macau, including
WRM. The three concessionaires are WRM, SJM, and Galaxy. The three subconcessionaires are
Melco Crown, MGM Macau, and Venetian Macau. As at 30 June 2016, there were approximately
36 casinos in Macau, including 20 operated by SJM. Each of the current six operators has operating
casinos and expansion plans underway. The Macau government has had the ability to grant
additional gaming concessions since April 2009. If the Macau government were to allow additional
competitors to operate in Macau through the grant of additional concessions or subconcessions,
we would face additional competition, which could have a material adverse effect on our business,
financial condition, results of operations and cash flows. Several of the current concessionaires
and subconcessionaires have opened additional facilities in the Cotai area of Macau during 2015
or expect to open in the second half of 2016 and during 2017 and 2018. These Cotai facilities are
expected to increase total hotel room inventory by approximately 25.5% from the current inventory
and significantly increase other gaming and non-gaming offerings in Macau.
10 Wynn Macau, Limited
Management Discussion and Analysis
Wynn Macau also faces competition from casinos located in other areas of Asia, such as Resorts
World Sentosa and Marina Bay Sands, in Singapore, and Resorts World Genting, located outside
of Kuala Lumpur, Malaysia. Wynn Macau also faces competition from casinos in the Philippines,
such as Solaire Resort and Casino and City of Dreams Manila. Several other major casino resorts
are scheduled to open over the next few years. Wynn Macau also encounters competition from
other major gaming centers located around the world, including Australia and Las Vegas, cruise
ships in Asia that offer gaming, and other casinos throughout Asia. Further, if current efforts to
legalize gaming in other Asian countries are successful, Wynn Macau will face additional regional
competition.
Gaming Promoters
A significant amount of our casino play is brought to us by gaming promoters. Gaming promoters
have historically played a critical role in the Macau gaming market and are important to our casino
business.
Gaming promoters introduce premium VIP players to Wynn Macau and often assist those players
with their travel and entertainment arrangements. In addition, gaming promoters often grant credit
to their players. In exchange for their services, Wynn Macau generally pays the gaming promoters
a commission which is a percentage of the gross gaming win generated by each gaming promoter.
Approximately 80% of these commissions are netted against casino revenues, because such
commissions approximate the amount of the commission returned to the VIP players by the gaming
promoters, and approximately 20% of these commissions are included in other operating expenses,
which approximate the amount of the commission ultimately retained by the gaming promoters
as compensation. The total amount of commissions paid to gaming promoters and netted against
casino revenues was HK$1.7 billion and HK$2.0 billion for the six months ended 30 June 2016 and
2015, respectively. Commissions decreased 13.0% for the six months ended 30 June 2016 compared
to the six months ended 30 June 2015 as VIP gross table games win decreased due to decreased
business volumes.
11Interim Report 2016
Management Discussion and Analysis
We typically advance commissions to certain gaming promoters at the beginning of each month to
facilitate their working capital requirements. These advances are provided to a gaming promoter
and are offset by the commissions earned by such gaming promoter during the applicable month.
The aggregate amounts of exposure to our gaming promoters, which is the difference between
commissions advanced to each individual gaming promoter, and the net commissions payable to
each such gaming promoter, declined substantially in part due to our tightening of advance policies
and in part due to reduced business volume, to HK$7.0 million as at 30 June 2016 from HK$91.0
million as at 31 December 2015. At the end of each month, any commissions outstanding are cleared
no later than the fifth business day of the succeeding month and prior to the advancement of any
further funds to a gaming promoter. We believe we have developed strong relationships with our
gaming promoters. Our commission percentages have remained stable throughout our operating
history.
In addition to commissions, gaming promoters each receive a monthly complimentary allowance
based on a percentage of the turnover its clients generate. The allowance is available for room, food
and beverage and other products and services for discretionary use with the gaming promoter’s
clients.
Given present market conditions in Macau and certain economic and other factors occurring in the
region, gaming promoters are encountering difficulties in attracting patrons to come to Macau and
certain gaming promoters are expanding operations in other jurisdictions in the region. Furthermore,
gaming promoters are experiencing decreased liquidity, which may limit their ability to grant credit
to their patrons, and has resulted in decreased gaming volumes in Macau and at Wynn Macau.
Credit already extended by our gaming promoters to their patrons has likely become difficult for
them to collect. The inability to attract sufficient patrons, grant credit and collect amounts due in a
timely manner has negatively affected our gaming promoters’ operations, causing gaming promoters
to wind up or liquidate their operations or resulting in some of our gaming promoters leaving
Macau.
Premium Credit Play
We selectively extend credit to our VIP players contingent upon our marketing team’s knowledge of
the players, their financial background and payment history. We follow a series of credit procedures
and require various signed documents from each credit recipient that are intended to ensure, among
other things that, if permitted by applicable law, the debt can be legally enforced in the jurisdiction
where the player resides. In the event the player does not reside in a jurisdiction where gaming
debts are legally enforceable, we can attempt to assert jurisdiction over assets the player maintains
in jurisdictions where gaming debts are recognized. In addition, we typically require a check in the
amount of the applicable credit line from credit players, collateralizing the credit we grant.
12 Wynn Macau, Limited
Management Discussion and Analysis
Number and Mix of Table Games and Slot Machines
The mix of VIP table games, mass table games and slot machines in operation at our resort changes
from time to time as a result of marketing and operating strategies in response to changing market
demand and industry competition. The shift in the mix of our games will affect casino profitability.
ADJUSTED EBITDA
Adjusted EBITDA is earnings before finance costs, finance revenues, net foreign currency
differences, changes in fair value of interest rate swaps, taxes, depreciation and amortization, pre-
opening costs, property charges and other, share-based payments, Wynn Macau, Limited corporate
expenses, and other non-operating income and expenses. Adjusted EBITDA is presented exclusively
as a supplemental disclosure because our Directors believe that it is widely used to measure the
performance, and as a basis for valuation, of gaming companies. Our Adjusted EBITDA presented
herein also differs from the Adjusted Property EBITDA presented by Wynn Resorts, Limited for its
Macau segment in its filings with the SEC, primarily due to the inclusion of license fees, adjustments
for IFRS differences with U.S. GAAP, corporate support and other support services in arriving at
operating profit.
The following table sets forth a quantitative reconciliation of Adjusted EBITDA to its most directly
comparable IFRS measurement and operating profit.
For the Six Months Ended
30 June
2016 2015
HK$ HK$
(in thousands)
Operating profit 1,460,382 1,754,628
Add
Depreciation and amortization 464,141 526,888
Pre-opening costs 507,755 158,632
Property charges and other 8,897 285
Share-based payments 64,015 68,459
Wynn Macau, Limited corporate expenses 42,532 39,800
Adjusted EBITDA 2,547,722 2,548,692
13Interim Report 2016
Management Discussion and Analysis
REVIEW OF HISTORICAL OPERATING RESULTS
Summary Breakdown Table
The following table presents certain selected statement of profit or loss and other comprehensive
income line items and certain other data.
For the Six Months Ended
30 June
2016 2015
HK$ HK$
(in thousands,
except for averages,
daily win figures and number
of tables and slot machines)
Total casino revenues(1) 9,153,749 9,623,267
Rooms(2) 62,909 62,282
Food and beverage(2) 107,554 110,075
Retail and other(2) 365,613 458,667
Total operating revenues 9,689,825 10,254,291
VIP table games turnover 196,601,773 253,295,988
VIP gross table games win(1) 6,599,211 7,239,754
Mass market table drop 18,510,203 19,194,956
Mass market gross table games win(1) 3,733,204 3,770,430
Slot machine handle 14,780,922 16,029,350
Slot machine win(1) 643,294 759,762
Average number of gaming tables(3) 428 468
Daily gross win per gaming table(4) 132,637 129,929
Average number of slots(3) 778 678
Average daily win per slot(4) 4,542 6,190
14 Wynn Macau, Limited
Management Discussion and Analysis
Notes:
(1) Total casino revenues do not equal the sum of “VIP gross table games win”, “mass market gross table games
win” and “slot machine win” because casino revenues are reported net of the relevant commissions. The
following table presents a reconciliation of the sum of “VIP gross table games win”, “mass market gross table
games win” and “slot machine win” to total casino revenues.
For the Six Months Ended 30 June
2016 2015
HK$ HK$
(in thousands)
VIP gross table games win 6,599,211 7,239,754
Mass market gross table games win 3,733,204 3,770,430
Slot machine win 643,294 759,762
Poker revenues 79,417 81,915
Commissions (1,901,377) (2,228,594)
Total casino revenues 9,153,749 9,623,267
(2) Promotional allowances are excluded from revenues in the accompanying condensed consolidated statement of
profit or loss and other comprehensive income prepared in accordance with IFRS. Management also evaluates
non-casino revenues on an adjusted basis.
15Interim Report 2016
Management Discussion and Analysis
The following table presents a reconciliation of net non-casino revenues as reported in our condensed
consolidated statement of profit or loss and other comprehensive income to gross non-casino revenues
calculated on the adjusted basis. The adjusted non-casino revenues as presented below are used for
management reporting purposes and are not representative of revenues as determined under IAS 18.
For the Six Months Ended 30 June
2016 2015
HK$ HK$
(in thousands)
Room revenues 62,909 62,282
Promotional allowances 401,013 430,068
Adjusted room revenues 463,922 492,350
Food and beverage revenues 107,554 110,075
Promotional allowances 174,135 204,185
Adjusted food and beverage revenues 281,689 314,260
Retail and other revenues 365,613 458,667
Promotional allowances 14,192 26,123
Adjusted retail and other revenues 379,805 484,790
(3) For purposes of this table, we calculate average number of gaming tables and average number of slots as the
average numbers of gaming tables and slot machines in service on each day in the period.
(4) Daily gross win per gaming table and daily win per slot are presented in this table on the basis of the average
number of gaming tables and average number of slots, respectively, over the number of days Wynn Macau and
Encore were open in the applicable period. In addition, the total table games win figures used herein do not
correspond to casino revenues figures in our financial information, because figures in our financial information
are calculated net of commissions and the total table games win herein is calculated before commissions.
16 Wynn Macau, Limited
Management Discussion and Analysis
Discussion of Results of Operations
Financial results for the six months ended 30 June 2016 compared to financial results for the six
months ended 30 June 2015
Operating Revenues
Total operating revenues decreased 5.5% from HK$10.3 billion in the six months ended 30 June
2015 to HK$9.7 billion in the six months ended 30 June 2016. This decrease was primarily due to
lower gaming volume in our VIP casino and general casino in the six months ended 30 June 2016
compared to the six months ended 30 June 2015.
Casino Revenues
Casino revenues decreased 4.9% from HK$9.6 billion (93.8% of total operating revenues) in the six
months ended 30 June 2015 to HK$9.2 billion (94.5% of total operating revenues) in the six months
ended 30 June 2016. The components and reasons are as follows:
VIP casino gaming operations. VIP gross table games win decreased from HK$7.2 billion in the
six months ended 30 June 2015 to HK$6.6 billion in the six months ended 30 June 2016. VIP table
games turnover decreased by 22.4%, from HK$253.3 billion in the six months ended 30 June 2015 to
HK$196.6 billion in the six months ended 30 June 2016. VIP gross table games win as a percentage
of turnover (calculated before commissions) was 2.86% in the six months ended 30 June 2015
compared to 3.36% in the six months ended 30 June 2016, which was above our expected range of
2.7% to 3.0%. The decrease in casino revenues from our VIP casino gaming operations were partially
offset by an increase in VIP gross table games wins as a percentage of turnover (calculated before
commissions).
Mass market casino gaming operations. Mass market gross table games win decreased slightly by
1.0%, from HK$3,770.4 million in the six months ended 30 June 2015 to HK$3,733.2 million in the
six months ended 30 June 2016. Mass market table drop decreased 3.6% from HK$19.2 billion in
the six months ended 30 June 2015 to HK$18.5 billion in the six months ended 30 June 2016. The
mass market gross table games win percentage was 19.6% in the six months ended 30 June 2015
compared to 20.2% in the six months ended 30 June 2016.
Slot machine gaming operations. Slot machine win decreased by 15.3% from HK$759.8 million in
the six months ended 30 June 2015 to HK$643.3 million in the six months ended 30 June 2016. Slot
machine handle decreased by 7.8%, from HK$16.0 billion in the six months ended 30 June 2015 to
HK$14.8 billion in the six months ended 30 June 2016. Slot machine win per unit per day decreased
by 26.6% from HK$6,190 in the six months ended 30 June 2015 to HK$4,542 in the six months
ended 30 June 2016. Slot machine win, slot machine handle and slot machine win per unit per day
decreased primarily due to decreased business volumes.
17Interim Report 2016
Management Discussion and Analysis
Non-casino Revenues
Net non-casino revenues, which include rooms, food and beverage and retail and other revenues,
decreased by 15.0% from HK$631.0 million (6.2% of total operating revenues) in the six months
ended 30 June 2015 to HK$536.1 million (5.5% of total operating revenues) in the six months ended
30 June 2016. The decrease in revenues was largely due to lower retail sales in the six months ended
30 June 2016.
Room. Our room revenues, which exclude promotional allowances in our condensed consolidated
statement of profit or loss and other comprehensive income, increased slightly by 1.0% from
HK$62.3 million in the six months ended 30 June 2015 to HK$62.9 million in the six months ended
30 June 2016.
Management also evaluates room revenues on an adjusted basis which include promotional
allowances. Adjusted room revenues including promotional allowances decreased by 5.8% from
HK$492.4 million in the six months ended 30 June 2015 to HK$463.9 million in the six months ended
30 June 2016.
The following table presents additional information about our adjusted room revenues (which
include promotional allowances):
Adjusted room revenues information
For the Six Months Ended
30 June
2016 2015
Adjusted Average Daily Rate (includes promotional allowances of
HK$2,171 in the six months ended 30 June 2016 and
HK$2,217 in the six months ended 30 June 2015) HK$2,505 HK$2,529
Occupancy 93.1% 96.9%
Adjusted REVPAR (includes promotional allowances of
HK$2,022 in the six months ended 30 June 2016 and
HK$2,149 in the six months ended 30 June 2015) HK$2,333 HK$2,451
18 Wynn Macau, Limited
Management Discussion and Analysis
Food and beverage. Food and beverage revenues, which exclude promotional allowances in our
condensed consolidated statement of profit or loss and other comprehensive income, decreased
by 2.3% from HK$110.1 million in the six months ended 30 June 2015 to HK$107.6 million in the six
months ended 30 June 2016.
Management also evaluates food and beverage revenues on an adjusted basis including promotional
allowances. Food and beverage revenues adjusted to include these promotional allowances
decreased by 10.4% from HK$314.3 million in the six months ended 30 June 2015 to HK$281.7
million in the six months ended 30 June 2016.
Retail and other. Our retail and other revenues, which exclude promotional allowances in our
condensed consolidated statement of profit or loss and other comprehensive income, decreased by
20.3%, from HK$458.7 million in the six months ended 30 June 2015 to HK$365.6 million in the six
months ended 30 June 2016. The decrease was primarily due to lower retail sales.
Management also evaluates retail and other revenues on an adjusted basis which includes
promotional allowances. Adjusted retail and other revenues including promotional allowances
decreased by 21.7% from HK$484.8 million in the six months ended 30 June 2015 to HK$379.8
million in the six months ended 30 June 2016. The decrease is primarily due to a decline in business
in both our owned stores and leased stores.
Operating Costs and Expenses
Gaming taxes and premiums. Gaming taxes and premiums decreased by 6.6% from HK$4.7 billion
in the six months ended 30 June 2015 to HK$4.4 billion in the six months ended 30 June 2016.
This decrease was primarily due to decreased gross gaming win. WRM is subject to a 35% gaming
tax on gross gaming win. In addition, WRM is also required to pay 4% of its gross gaming win as
contributions for public development and social facilities.
Staff costs. Staff costs increased by 12.8% from HK$1.6 billion in the six months ended 30 June
2015 to HK$1.8 billion in the six months ended 30 June 2016. This increase was primarily due to the
Company carrying more headcount to prepare for the opening of Wynn Palace, which opened on 22
August 2016.
19Interim Report 2016
Management Discussion and Analysis
Other operating expenses. Other operating expenses decreased by 6.1% from HK$1.7 billion in the
six months ended 30 June 2015 to HK$1.6 billion in the six months ended 30 June 2016. Provision
for doubtful accounts decreased from a provision during the first half of 2015 to a benefit in the first
half of 2016. The change in the provision was primarily due to collection of an account that resulted
in a HK$51.9 million reversal of the previously recorded allowance for doubtful accounts. For the six
months ended 30 June 2016, the increase in repairs and maintenance expenses, operating supplies
and equipment expenses, operating rental expenses, the costs of other support services and
corporate services and others, auditors’ remuneration and other operating expenses were offset by
a decrease in provision for doubtful accounts and reductions in business volume related expenses,
such as gaming promoters’ commissions, license fees, cost of sales and utilities and fuel.
Depreciation and amortization. Depreciation and amortization in the six months ended 30 June
2015 decreased 11.9% from HK$526.9 million to HK$464.1 million in the six months ended 30 June
2016. The decrease was primarily due to a change in the estimated useful lives of buildings and
improvements for Wynn Macau, which was effective 1 September 2015, to more accurately reflect
the estimated periods during which these assets are expected to remain in service.
Property charges and other. Property charges and other increased from HK$0.3 million in the six
months ended 30 June 2015 to HK$8.9 million in the six months ended 30 June 2016. Amounts in
each period represent the gain/loss on the sale of equipment and other asset as well as costs related
to assets retired or abandoned as a result of renovating certain assets of the Company in response
to customer preferences and changes in market demand.
As a result of the foregoing, total operating costs and expenses decreased by 3.2%, from HK$8.5
billion in the six months ended 30 June 2015 to HK$8.2 billion in the six months ended 30 June
2016.
Finance Revenues
Finance revenues remained essentially flat from HK$18.9 million in the six months ended 30 June
2015 to HK$19.2 million in the six months ended 30 June 2016. During 2016 and 2015, our short-
term investment strategy has been to preserve capital while retaining sufficient liquidity. The
majority of our short-term investments were primarily in time deposits and fixed deposits with a
maturity of three months or less.
20 Wynn Macau, Limited
Management Discussion and Analysis
Finance Costs
Finance costs decreased by 2.2%, from HK$300.1 million in the six months ended 30 June 2015 to
HK$293.4 million in the six months ended 30 June 2016. The increase of finance costs derived from
the increase in amounts outstanding under the Wynn Macau Credit Facility was offset by the increase
in capitalized interest related to the construction of Wynn Palace.
Interest Rate Swaps
As required under the terms of the Wynn Macau Credit Facilities, we have entered into agreements
which swap a portion of the interest on our loans from floating to fixed rates. These transactions do
not qualify for hedge accounting.
Changes in the fair value of our interest rate swaps are recorded as an increase or decrease in swap
fair value during each period. During the six months ended 30 June 2016 and 30 June 2015, we
recorded a loss of HK$22.2 million and a loss of HK$44.4 million, respectively, resulting from the
movement in the fair value of our interest rate swaps.
Income Tax Expense
In the six months ended 30 June 2016, our income tax expense was HK$7.5 million, compared to
an income tax expense of HK$3.2 million in the six months ended 30 June 2015. Our tax expense
for the six months ended 30 June 2016 primarily relates to the current tax expense recorded by our
subsidiaries owning WRM’s shares under the WRM Shareholder Dividend Tax Agreement. In the six
months ended 30 June 2015, our income tax expense relates to the current tax expense recorded
by our subsidiaries owning WRM’s shares under the WRM Shareholder Dividend Tax Agreement
and a deferred tax benefit resulting from a decrease in the deferred tax liability for property and
equipment.
Net Profit Attributable to Owners of the Company
As a result of the foregoing, compared to HK$1.4 billion for the six months ended 30 June 2015, net
profit attributable to owners of the Company was HK$1.1 billion for the six months ended 30 June
2016.
21Interim Report 2016
Management Discussion and Analysis
LIQUIDITY AND CAPITAL RESOURCES
Capital Resources
Since Wynn Macau opened in 2006, we have generally funded our working capital and recurring
expenses as well as capital expenditures from cash flow from operations and cash on hand.
Our cash balances as at 30 June 2016 were approximately HK$3.0 billion. Such cash is available for
operations, new development activities, the development of Wynn Palace and enhancements to
Wynn Macau and Encore.
On 30 September 2015, WRM expanded the availability of borrowings under its senior secured bank
facility to approximately HK$23.7 billion consisting of an approximately HK$17.9 billion fully funded
senior secured term loan facility and an approximately HK$5.8 billion senior secured revolving credit
facility. WRM also has the ability to upsize the total senior secured facilities by approximately an
additional HK$7.8 billion equivalent (US$1.0 billion) pursuant to the terms and provisions of the
agreement for the Wynn Macau Credit Facilities. As at 30 June 2016, the Group had approximately
HK$1.3 billion of available borrowing capacity under the Wynn Macau Credit Facilities.
The Company has issued 5.25% fixed rate, unsecured senior notes due 2021 with an aggregate
principal amount of US$1.35 billion (approximately HK$10.5 billion) for working capital requirement
and general corporate purposes.
On 18 July 2016, WML Finance I Limited (the “WMLF”), a wholly-owned indirect subsidiary of the
Company, entered into an agreement as the borrower for a revolving credit facility for initially up to
HK$1,548.3 million (approximately US$198.5 million) with Bank of China Limited, Macau Branch as
the lender. As at the Latest Practicable Date, the Group had HK$1,548.3 million available under the
WMLF Revolving Credit Facility. The WMLF Revolving Credit Facility matures in July 2018 at which
time any outstanding borrowings must be repaid.
22 Wynn Macau, Limited
Management Discussion and Analysis
Gearing Ratio
The gearing ratio is a key indicator of our Group’s capital structure. The gearing ratio is net debt
divided by total capital plus net debt. The table below presents the calculation of our gearing ratio.
As at
30 June
2016
31 December
2015
HK$ HK$
(in thousands
except for percentages)
Interest-bearing borrowings 32,542,426 31,317,919
Accounts payable 1,056,734 1,621,099
Land premiums payable — 124,015
Construction retentions payable 12,316 399,986
Other payables and accruals 4,189,282 4,367,605
Amounts due to related companies 122,093 128,920
Other liabilities 205,637 205,799
Less: cash and cash equivalents (2,991,549) (6,731,356)
restricted cash and cash equivalents (22,110) (15,968)
Net debt 35,114,829 31,418,019
Equity 2,125,136 4,102,279
Total capital 2,125,136 4,102,279
Capital and net debt 37,239,965 35,520,298
Gearing ratio 94.3% 88.5%
23Interim Report 2016
Management Discussion and Analysis
Cash Flows
The following table presents a summary of the Group’s cash flows.
For the Six Months Ended
30 June
2016 2015
HK$ HK$
(in millions)
Net cash generated from operating activities 1,990.2 438.0
Net cash used in investing activities (3,370.3) (6,140.1)
Net cash used in financing activities (2,363.5) (2,637.7)
Net decrease in cash and cash equivalents (3,743.6) (8,339.8)
Cash and cash equivalents at beginning of period 6,731.4 10,789.9
Effect of foreign exchange rate changes, net 3.7 2.9
Cash and cash equivalents at end of period 2,991.5 2,453.0
Net cash generated from operating activities
Our net cash generated from operating activities is primarily affected by changes in our working
capital and operating profit generated by our Macau Operations. Net cash from operating activities
was HK$2.0 billion for the six months ended 30 June 2016, compared to HK$0.4 billion for the six
months ended 30 June 2015. Operating profit was HK$1.5 billion for the six months ended 30 June
2016, compared to HK$1.8 billion for the six months ended 30 June 2015. The increase in net cash
from operating activities was primarily attributable to the changes in working capital.
Net cash used in investing activities
Net cash used in investing activities was HK$3.4 billion for the six months ended 30 June 2016,
compared to HK$6.1 billion for the six months ended 30 June 2015. Major expenditures in the
six months ended 30 June 2016 included capital expenditures of HK$3.1 billion for both Wynn
Palace construction costs and renovations to enhance and refine the Macau Operations and fine
arts acquisition cost of HK$263.2 million. Major expenditures in the six months ended 30 June
2015 included capital expenditures of HK$6.2 billion for both Wynn Palace construction costs and
renovations to enhance and refine the Macau Operations.
24 Wynn Macau, Limited
Management Discussion and Analysis
Net cash used in financing activities
Net cash used in financing activities was HK$2.4 billion during the six months ended 30 June 2016,
compared to HK$2.6 billion during the six months ended 30 June 2015.
During the six months ended 30 June 2016, the net cash used in financing activities was primarily
due to a HK$3.1 billion special dividend payment made in April 2016, HK$221.1 million for interest
payments and a HK$124.0 million payment for land premiums, partially offset by receipts of HK$1.2
billion in proceeds from the senior revolving credit facility of the Wynn Macau Credit Facilities.
During the six months ended 30 June 2015, the net cash used in financing activities was primarily
due to a HK$5.4 billion special dividend payment made in March 2015, HK$248.7 million for interest
payments and a HK$118.0 million payment for land premiums, partially offset by receipts of HK$3.2
billion in proceeds from the senior revolving credit facility of the Wynn Macau Credit Facilities.
Indebtedness
The following table presents a summary of our indebtedness.
Indebtedness information
As at
30 June
2016
31 December
2015
HK$ HK$
(in thousands)
Bank loans 22,404,151 21,225,648
Senior notes 10,506,354 10,498,488
Less: debt financing costs, net (368,079) (406,217)
Total interest-bearing borrowings 32,542,426 31,317,919
The Group had approximately HK$1.3 billion available to draw under the revolving credit facility of
the Wynn Macau Credit Facilities as at 30 June 2016.
25Interim Report 2016
Management Discussion and Analysis
Wynn Macau Credit Facilities
Overview
As at 30 June 2016, the Wynn Macau Credit Facilities consisted of approximately HK$23.7 billion
equivalent in a combination of Hong Kong dollar and U.S. dollar facilities, including an approximately
HK$17.9 billion equivalent fully funded senior term loan facility and an approximately HK$5.8 billion
equivalent senior revolving credit facility.
There is also an option to upsize the total senior secured credit facilities by approximately an
additional HK$7.8 billion equivalent (US$1.0 billion) under the Wynn Macau Credit Facilities and
related agreements upon the satisfaction of various conditions. The borrowings under the Wynn
Macau Credit Facilities were used to refinance WRM’s existing indebtedness in 2015 and the balance
may be used for a variety of purposes, including to fund the construction and development of Wynn
Palace and for general corporate purposes.
The HK$17.9 billion equivalent term loan facility is repayable in graduating installments of between
2.50% to 7.33% of the principal amount on a quarterly basis commencing December 2018, with a
final installment of 50% of the principal amount repayable in September 2021. The final maturity of
any outstanding borrowings from the revolving credit facility is September 2020, by which time any
outstanding borrowings from the revolving loans must be repaid.
The borrowings under the Wynn Macau Credit Facilities bear interest at LIBOR or HIBOR plus a
margin of 1.50% to 2.25% per annum based on WRM’s leverage ratio. Customary fees and expenses
were paid by WRM in connection with the Wynn Macau Credit Facilities.
Security and Guarantees
Borrowings under the Wynn Macau Credit Facilities are guaranteed by Palo and by certain
subsidiaries of the Company that own equity interests in WRM, and are secured by substantially all of
the assets of, and equity interests in WRM and Palo. With respect to the Concession Agreement and
WRM’s land concession agreement, the WRM lenders have certain cure rights and consultation rights
with the Macau government in the event of an enforcement action by the lenders.
Second Ranking Lender
WRM is also party to a bank guarantee reimbursement agreement with Banco National Ultramarino
S.A. to secure a guarantee in favor of the Macau government as required under the Concession
Agreement. The amount of this guarantee is MOP300 million (approximately HK$291.3 million) and
it lasts until 180 days after the end of the term of the Concession Agreement. The guarantee assures
WRM’s performance under the Concession Agreement, including the payment of certain premiums,
fines and indemnities for breach. The guarantee is secured by a second priority security interest in
the same collateral package securing the Wynn Macau Credit Facilities.
26 Wynn Macau, Limited
Management Discussion and Analysis
Other Terms
The Wynn Macau Credit Facilities contain representations, warranties, covenants and events of
default customary for casino development financings in Macau. The Directors confirm that there is
no non-compliance with the financial covenants or general covenants contained in the Wynn Macau
Credit Facilities.
The Company is not a party to the credit facilities agreement and related agreements and has no
rights or obligations thereunder.
WML 2021 Notes
The Company issued 5.25% fixed rate unsecured senior notes due on 15 October 2021 with an
aggregate principal amount of US$1.35 billion (approximately HK$10.5 billion). The Company may
use the net proceeds from the offering of the WML 2021 Notes for working capital requirements and
general corporate purposes. The WML 2021 Notes are listed on the Hong Kong Stock Exchange.
WMLF Revolving Credit Facility
On 18 July 2016, WML Finance I Limited (the “WMLF”), a wholly-owned indirect subsidiary of the
Company, entered into an agreement as the borrower for a revolving credit facility for initially up to
HK$1,548.3 million (approximately US$198.5 million) with Bank of China Limited, Macau Branch as
the lender.
Borrowings under the WMLF Revolving Credit Facility are secured by pledged US$ deposits placed
by WRL in a pledged account at Bank of China Limited, Macau Branch. The amount pledged in favor
of Bank of China Limited, Macau Branch must equal 100.75% of the outstanding borrowings under
the WMLF Revolving Credit Facility, being initially up to US$200 million (approximately HK$1,560
million).
The WMLF Revolving Credit Facility will be used for non-gaming general corporate purposes and
working capital requirements of WRM and its affiliates, including the construction, operation and
maintenance of Wynn Palace.
The final maturity of any outstanding borrowings under the WMLF Revolving Credit Facility is 18 July
2018, by which time any outstanding borrowings must be repaid in full.
The borrowings under the WMLF Revolving Credit Facility will bear interest initially at 1.50% per
annum, such rate calculated as the interest rate paid by Bank of China Limited, Macau Branch to
WRL in respect of the US$ deposits in the pledged account at Bank of China Limited, Macau Branch
plus a margin of 0.40%. Under the terms of the agreement, mandatory repayment is required upon a
change in control or material adverse effect (as defined in the agreement).
As at the Latest Practicable Date, the Group had HK$1,548.3 million available under the WMLF
Revolving Credit Facility.
27Interim Report 2016
Management Discussion and Analysis
QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK
Market risk is the risk of loss arising from adverse changes in market rates and conditions, such as
interest rates, and foreign currency exchange rates.
Foreign Currency Exchange Risks
The financial statements of foreign operations are translated into Hong Kong dollars, the Company’s
functional and presentation currency, for incorporation into the condensed consolidated financial
information. The majority of our assets and liabilities are denominated in U.S. dollars, Hong Kong
dollars and Macau patacas, and there are no significant assets and liabilities denominated in other
currencies. Assets and liabilities are translated at the prevailing foreign exchange rates in effect at
the end of the reporting period. Income, expenditures and cash flow items are measured at the
actual foreign exchange rates or average foreign exchange rates for the period. The Hong Kong
dollar is linked to the U.S. dollar and the exchange rate between these two currencies has remained
relatively stable over the past several years. The Macau pataca is pegged to the Hong Kong dollar,
and in many cases the two currencies are used interchangeably in Macau. However, the exchange
linkages of the Hong Kong dollar and the Macau pataca, and the Hong Kong dollar to the U.S.
dollar, are subject to potential changes due to, among other things, changes in governmental
policies and international economic and political developments.
Interest Rate Risks
One of our primary exposures to market risk is interest rate risk associated with our credit facilities,
which bear interest based on floating rates. We attempt to manage interest rate risk by managing
the mix of long-term fixed rate borrowings and variable rate borrowings supplemented by hedging
activities as considered necessary. We cannot assure you that these risk management strategies will
have the desired effect, and interest rate fluctuations could have a negative impact on our results of
operations.
As at 30 June 2016, the Group had three interest rate swap agreements intended to manage a
portion of the underlying interest rate risk on borrowings under the Wynn Macau Credit Facilities.
Under two swap agreements, the Group pays a fixed interest rate of 0.73% on borrowings of
approximately HK$3.95 billion incurred under the Wynn Macau Credit Facilities in exchange for
receipts on the same amount at a variable interest rate based on the applicable HIBOR at the time
of payment. These interest rate swaps fix the all-in interest rate on approximately HK$3.95 billion of
borrowings under the Wynn Macau Credit Facilities at 2.23% to 2.98% and expire in July 2017.
28 Wynn Macau, Limited
Management Discussion and Analysis
Under the third swap agreement, the Group pays a fixed rate of 0.6763% on borrowings of
US$243.8 million (approximately HK$1.8 billion) incurred under the Wynn Macau Credit Facilities in
exchange for receipts on the same amount at a variable interest rate based on the applicable LIBOR
at the time of payment. This interest rate swap fixes the all-in interest rate on US$243.8 million
(approximately HK$1.8 billion) of borrowings under the Wynn Macau Credit Facilities at 2.18% to
2.93% and expires in July 2017.
The carrying value of these interest rate swaps on the condensed consolidated statement of financial
position approximates its fair value. The fair value approximates the amount the Group would pay
or receive if these contracts were settled at the respective valuation dates. Fair value is estimated
based upon current, and predictions of future interest rate levels along a yield curve, the remaining
duration of the instruments and other market conditions and, therefore, is subject to significant
estimation and a high degree of variability of fluctuation between periods. We adjust this amount
by applying a non-performance valuation, considering our creditworthiness or the creditworthiness
of our counterparties at each settlement date, as applicable. These transactions do not qualify for
hedge accounting. Accordingly, changes in the fair values during the six months ended 30 June
2016 and 2015, were charged to the condensed consolidated statement of profit or loss and other
comprehensive income.
To the extent there are liabilities of Wynn Macau under the swap agreement, such liabilities are
secured by the same collateral package securing the Wynn Macau Credit Facilities.
OFF BALANCE SHEET ARRANGEMENTS
We have not entered into any transactions with special purpose entities nor do we engage in any
transactions involving derivatives except for interest rate swaps. We do not have any retained or
contingent interest in assets transferred to an unconsolidated entity.
OTHER LIQUIDITY MATTERS
We expect to fund our operations and capital expenditure requirements from operating cash
flows, cash on hand and availability under our credit facilities. However, we cannot be sure that
operating cash flows will be sufficient for those purposes. We may refinance all or a portion of our
indebtedness on or before maturity. We cannot be sure that we will be able to refinance any of the
indebtedness on acceptable terms or at all.
29Interim Report 2016
Management Discussion and Analysis
New business developments (including our development of Wynn Palace) or other unforeseen events
may occur, resulting in the need to raise additional funds. There can be no assurances regarding the
business prospects with respect to any other opportunity. Any other development would require us
to obtain additional financing.
In the ordinary course of business, in response to market demands and client preferences, and in
order to increase revenues, we have made and will continue to make enhancements and refinements
to our resorts. We have incurred and will continue to incur capital expenditures related to these
enhancements and refinements.
Taking into consideration our financial resources, including our cash and cash equivalents, internally
generated funds and availability under our credit facilities, we believe that we have sufficient liquid
assets to meet our current and anticipated working capital and operating requirements.
CONNECTED TRANSACTION
On 29 June 2016, WRM entered into a purchase agreement with Wynn Design & Development
to purchase “Tulips” and “Amphora III” for US$33,682,500 (approximately HK$262.3 million) and
US$103,945 (approximately HK$0.8 million), respectively. The purchase price was funded from
available cash and internal resources of the Group. The purchase of the artwork was completed on
29 June 2016.
“Tulips” is a sculptural masterpiece created by renowned artists Jeff Koons. “Amphora III” is a
colorful, impressive clay vessel crafted by late ceramist Viola Frey. Both “Tulips” and “Amphora
III” will be displayed at Wynn Palace for the enjoyment of our guests and visitors. For further
information, please refer to the Company’s announcement made on 29 June 2016.
RELATED PARTY TRANSACTIONS
For details of the related party transactions, see note 17 to the Interim Financial Information. Our
Directors confirm that all related party transactions have been conducted on normal commercial
terms, and that their terms are fair and reasonable.
30 Wynn Macau, Limited
Directors and Senior Management
OUR DIRECTORS
The following table presents certain information in respect of the members of our Board.
Members of our Board
Name Age Position
Date of Appointment
as a Director
Stephen A. Wynn 74 Chairman of the Board,
Executive Director and
Chief Executive Officer
16 September 2009
Gamal Mohammed Abdelaziz 59 Executive Director and
President
29 March 2014
Linda Chen 49 Executive Director and
Chief Operating Officer
16 September 2009
Ian Michael Coughlan 57 Executive Director and
President of WRM
16 September 2009
Matthew O. Maddox 40 Non-executive Director 28 March 2013
Allan Zeman, GBM, GBS, JP 68 Vice-chairman of the Board
and Independent
Non-executive Director
16 September 2009
Jeffrey Kin-fung Lam, GBS, JP 64 Independent Non-executive
Director
16 September 2009
Bruce Rockowitz 57 Independent Non-executive
Director
16 September 2009
Nicholas Sallnow-Smith 66 Independent Non-executive
Director
16 September 2009
31Interim Report 2016
Directors and Senior Management
The biography of each Director is set out below:
Executive Directors
Mr. Stephen A. Wynn, aged 74, has been a Director of the Company since its inception and
an executive Director, the Chairman of the Board of Directors and Chief Executive Officer of
the Company since 16 September 2009. Mr. Wynn was also the President of the Company from
September 2009 to January 2014. Mr. Wynn has served as Director, Chairman and Chief Executive
Officer of WRM since October 2001. Mr. Wynn has also served as Chairman and Chief Executive
Officer of Wynn Resorts, Limited since June 2002. Mr. Wynn has over 40 years of experience in the
gaming casino industry. Mr. Wynn also serves as an officer and/or director of several subsidiaries of
Wynn Resorts, Limited. During his time as Chairman, Chief Executive Officer and President of Mirage
Resorts, Mr. Wynn developed, opened and operated The Mirage, Treasure Island and Bellagio in
1989, 1993 and 1998, respectively. In 2011, Barron’s ranked Mr. Wynn as one of the world’s 30 best
CEOs.
Mr. Gamal Mohammed Abdelaziz, aged 59, is the President of the Company and has been an
executive Director of the Company since 29 March 2014. Among other things, Mr. Aziz is responsible
for the development of WRM’s Wynn Palace casino resort. Mr. Aziz also serves as President and
Chief Operating Officer of Wynn Resorts Development LLC, a subsidiary of Wynn Resorts, Limited.
Prior to joining Wynn Resorts Development LLC, Mr. Aziz served as President and Chief Executive
Officer of MGM Hospitality, LLC, a division of MGM Resorts International, where he was responsible
for developing and operating luxury hotels throughout the world under the Bellagio, MGM Grand
and Skylofts brands. Prior to that, Mr. Aziz served as President and Chief Operating Officer of MGM
Grand Hotel & Casino in Las Vegas; and as Senior Vice President of the Bellagio Hotel and Resort
in Las Vegas. In addition, Mr. Aziz has held senior management roles at various hotels and gaming
properties in the United States, including Caesars Palace in Las Vegas, The Plaza Hotel in New York
City, the Westin Hotel in Washington, D.C., and the St. Francis in San Francisco. In November 2015,
Mr. Aziz was appointed as a member of the International Advisory Board of Ecole Hôtelière de
Lausanne (EHL) Hotel School. Mr. Aziz is more widely known as “Gamal Aziz” and is typically referred
to as such in the Company’s communications.
32 Wynn Macau, Limited
Directors and Senior Management
Ms. Linda Chen, aged 49, has been an executive Director and the Chief Operating Officer of the
Company since 16 September 2009 and Chief Operating Officer of WRM since June 2002. Ms. Chen
is also the Executive Director of WRM. Ms. Chen is responsible for the marketing and strategic
development of WRM. Ms. Chen served as a director of Wynn Resorts, Limited from October 2007
to December 2012 and is the President of WIML. In these positions, she is responsible for the set-
up of international marketing operations of Wynn Resorts, Limited. Prior to joining the Group, Ms.
Chen was Executive Vice President — International Marketing at MGM Mirage, a role she held
from June 2000 until May 2002, and was responsible for the international marketing operations for
MGM Grand, Bellagio and The Mirage. Prior to this position, Ms. Chen served as the Executive Vice
President of International Marketing for Bellagio and was involved with its opening in 1998. She
was also involved in the opening of the MGM Grand in 1993 and The Mirage in 1989. Ms. Chen is
also a member of the Nanjing Committee of the Chinese People’s Political Consultative Conference
(Macau). Ms. Chen holds a Bachelor of Science Degree in Hotel Administration from Cornell
University in 1989 and completed the Stanford Graduate School of Business Executive Development
Program in 1997.
Mr. Ian Michael Coughlan, aged 57, has been an executive Director of the Company since 16
September 2009. Mr. Coughlan is also the President of WRM, a position he has held since July 2007.
In this role, he is responsible for the entire operation and development of Wynn Macau. Prior to this
role, Mr. Coughlan was Director of Hotel Operations — Worldwide for Wynn Resorts, Limited. Mr.
Coughlan has over 35 years of hospitality experience with leading hotels across Asia, Europe and the
United States. Before joining Wynn Resorts, Limited, he spent ten years with The Peninsula Group,
including posts as General Manager of The Peninsula Hong Kong from September 2004 to January
2007, and General Manager of The Peninsula Bangkok from September 1999 to August 2004. His
previous assignments include senior management positions at The Oriental Singapore, and a number
of Ritz-Carlton properties in the United States. Mr. Coughlan holds a Diploma from Shannon College
of Hotel Management, Ireland.
Non-executive Director
Mr. Matthew O. Maddox, aged 40, was appointed as a non-executive Director of the Company and
a member of the Remuneration Committee on 28 March 2013. Since November 2013, he has served
as the President of Wynn Resorts, Limited. From March 2008 to May 2014, Mr. Maddox was the
Chief Financial Officer of Wynn Resorts, Limited. Since joining Wynn Resorts in 2002, Mr. Maddox
has served as Wynn Resorts’ Senior Vice President of Business Development and Treasurer, as the
Senior Vice President of Business Development for Wynn Las Vegas, LLC, as the Chief Financial
Officer of WRM, and as Wynn Resorts’ Treasurer and Vice President-Investor Relations. Mr. Maddox
also serves as an officer of several subsidiaries of Wynn Resorts, Limited. Prior to joining Wynn
Resorts, Limited in 2002, Mr. Maddox worked in Corporate Finance for Caesars Entertainment, Inc.
(formerly Park Place Entertainment, Inc.). Before joining Park Place Entertainment, Mr. Maddox
worked as an investment banker for Bank of America Securities in the Mergers and Acquisitions
Department.
33Interim Report 2016
Directors and Senior Management
Independent non-executive Directors
Dr. Allan Zeman, GBM, GBS, JP, aged 68, has been a Director of the Company since its inception
and a non-executive Director of the Company since 16 September 2009 and is the Vice Chairman
of the Company. Effective from 29 March 2014, Dr. Zeman became an independent non-executive
Director of the Company. He was also a non-executive director of Wynn Resorts, Limited, from
October 2002 to December 2012. Dr. Zeman founded The Colby International Group in 1975 to
source and export fashion apparel to North America. In late 2000, The Colby International Group
merged with Li & Fung Limited. Dr. Zeman is the Chairman of Lan Kwai Fong Holdings Limited. He is
also the owner of Paradise Properties Group, a property developer in Thailand. Dr. Zeman was also
Chairman of Ocean Park, a major theme park in Hong Kong, from July 2003 to June 2014.
Dr. Zeman is Vice Patron of Hong Kong Community Chest, and serves as a director of the “Star”
Ferry Company, Limited. Dr. Zeman also serves as an independent non-executive director of Pacific
Century Premium Developments Limited, Sino Land Company Limited, Tsim Sha Tsui Properties
Limited, Television Broadcasts Limited (TVB) and Global Brands Group Holding Limited, all of which
are listed on the Hong Kong Stock Exchange.
Having lived in Hong Kong for over 40 years, Dr. Zeman has been very involved in government
services as well as community activities. Besides having been the Chairman of Hong Kong Ocean
Park from July 2003 to June 2014, he is also a member of the General Committee of the Hong
Kong General Chamber of Commerce and Hong Kong China’s representative to the Asia-Pacific
Economic Cooperation (APEC) Business Advisory Council (“ABAC HK Members”). Dr. Zeman also
serves as a Member of the Board of West Kowloon Cultural District Authority, and the chairman of
its Performing Arts Committee. He is also the member of the Economic Development Commission
Working Group on Convention and Exhibition Industries and Tourism of the Government of Hong
Kong. In June 2015, Dr. Zeman was appointed as a Board Member of the Airport Authority of
Hong Kong. In November 2015, Dr. Zeman was appointed to the board of directors of The Hong
Kong Entrepreneurs Fund launched by Alibaba Group. In September 2014, Dr. Zeman was invited
by former HKSAR Chief Executive Mr. CH Tung, to be a Special Advisor to his Our Hong Kong
Foundation, which is dedicated to promoting the long-term and overall interests of Hong Kong.
In 2001, Dr. Zeman was appointed a Justice of the Peace in Hong Kong. He was awarded the Gold
Bauhinia Star in 2004 and the Grand Bauhinia Medal in 2011. In 2012, he was awarded Honorary
Doctorate Degrees of Business Administration from City University of Hong Kong and University of
Science and Technology of Hong Kong.
34 Wynn Macau, Limited
Directors and Senior Management
Mr. Jeffrey Kin-fung Lam, GBS, JP, aged 64, has been an independent non-executive Director
of the Company since 16 September 2009. Mr. Lam was appointed as a non-official member of
the Executive Council of Hong Kong in October 2012. Mr. Lam is also a member of the National
Committee of the Chinese People’s Political Consultative Conference and a member of the
Legislative Council of Hong Kong. He is the Chairman of the Mega Events Fund Assessment
Committee, the Independent Commission Against Corruption (ICAC) Complaints Committee and
Aviation Security Company Limited. He is also a member of the board of Airport Authority Hong
Kong and a member of the Fight Crime Committee in Hong Kong. In April 2016, Mr. Lam was
appointed as a director of the Hong Kong Mortgage Corporation Limited (HKMC). Mr. Lam is
also a General Committee Member of the Hong Kong General Chamber of Commerce and the
Vice-Chairman of The Hong Kong Shippers’ Council. In addition, Mr. Lam is an independent non-
executive director of CC Land Holdings Limited, China Overseas Grand Oceans Group Limited,
Bracell Limited (formerly known as Sateri Holdings Limited), Chow Tai Fook Jewellery Group Limited
and HNA Holding Group Co. Limited (formerly known as HNA International Investment Holdings
Limited), all of which are listed on the Hong Kong Stock Exchange. He has served as the director
on the board of Heifer International — Hong Kong since January 2016. Mr. Lam was also an
independent non-executive director of Hsin Chong Construction Group Ltd. from August 2002 to
May 2014.
In 1996, Mr. Lam was appointed Justice of the Peace in Hong Kong and became a member of
the Most Excellent Order of the British Empire. He was awarded the honor of the Gold Bauhinia
Star in July 2011 and the Silver Bauhinia Star in 2004. Mr. Lam was conferred University Fellow of
Tufts University in the United States and Hong Kong Polytechnic University in 1997 and in 2000,
respectively.
35Interim Report 2016
Directors and Senior Management
Mr. Bruce Rockowitz, aged 57, has been an independent non-executive Director of the Company
since 16 September 2009. Mr. Rockowitz has been appointed as the Chief Executive Officer, Vice
Chairman and Executive Director of Global Brands Group Holding Limited, a company spun off from
Li & Fung Limited and listed on the Hong Kong Stock Exchange in July 2014. Mr. Rockowitz joined
Li & Fung Limited as Executive Director in 2001 until June 2014. He was the President of the Li &
Fung Group from 2004 to 2011, and Group President and Chief Executive Officer from 2011 to June
2014. He was also the co-founder and Chief Executive Officer of Colby International Limited, a large
Hong Kong buying agent, prior to its acquisition by Li & Fung in 2000. In addition to his positions at
Li & Fung and Global Brands Group, Mr. Rockowitz is the non-executive director of The Pure Group,
a lifestyle, fitness and yoga group operating in Hong Kong, Singapore, Taiwan and mainland China.
He is a member of the Advisory Board for the Wharton School’s Jay H Baker Retailing Center, an
industry research center for retail at the University of Pennsylvania. He is also a board member of
the Education Foundation for Fashion Industries, the private fund-raising arm of the Fashion Institute
of Technology, New York. In March 2012, he became a member of the Global Advisory Council
of the Women’s Tennis Association (WTA). In 2008, Mr. Rockowitz was ranked first by Institutional
Investor for Asia’s Best CEOs in the consumer category. In the years 2010 and 2011, he was also
ranked as one of the world’s 30 best CEOs by Barron’s. In 2011, he was presented with the Alumni
Achievement Award by the University of Vermont. In 2012, Mr. Rockowitz was named Asia’s Best
CEO at Corporate Governance Asia’s Excellence Recognition Awards, and he was also presented
with an Asian Corporate Director Recognition Award by the same organization in 2012 and 2013.
Mr. Nicholas Sallnow-Smith, aged 66, has been an independent non-executive Director of
the Company since 16 September 2009. Mr. Sallnow-Smith also served as the Chairman and
an independent non-executive director of Link Asset Management Limited (formerly The Link
Management Limited) between April 2007 and March 2016, when he also served as Chairman of
Link Asset Management Limited’s Finance and Investment, and Nominations Committees. Link Asset
Management Limited is the manager to Link Real Estate Investment Trust (formerly The Link Real
Estate Investment Trust), which is listed on the Hong Kong Stock Exchange. Mr. Sallnow-Smith is
also a non-executive director of UCP Plc, which was listed on the London Stock Exchange, and Aviva
Life Insurance Company Limited in Hong Kong. Prior to joining Link, Mr. Sallnow-Smith was Chief
Executive of Hongkong Land Holdings Limited from February 2000 to March 2007. He has a wide
ranging finance background in Asia and the United Kingdom for over 30 years, including his roles as
Finance Director of Hongkong Land Holdings Limited from 1998 to 2000 and as Group Treasurer of
Jardine Matheson Limited from 1993 to 1998.
36 Wynn Macau, Limited
Directors and Senior Management
Mr. Sallnow-Smith’s early career was spent in the British Civil Service, where he worked for Her
Majesty’s Treasury in Whitehall, London from 1975 to 1985. During that time, he was seconded
for two years to Manufacturers Hanover London, working in export finance and in their merchant
banking division, Manufacturers Hanover Limited. He left the Civil Service in 1985, following a period
working in the International Finance section of H. M. Treasury on Paris Club and other international
debt policy matters, and spent two years with Lloyds Merchant Bank before moving into the
corporate sector in 1987. Mr. Sallnow-Smith served as the Convenor of the Hong Kong Association
of Corporate Treasurers from 1996 to 2000, as Chairman of the Matilda Child Development Centre
in 1994 and 1995 and as Chairman of the Matilda International Hospital from 2003 to 2005.
He is an Executive Committee member of the Hong Kong Youth Arts Foundation, a member of
the Council of the Treasury Markets Association (Hong Kong Association of Corporate Treasurers
Representative), and a member of the Board of Governors of Hong Kong Philharmonic Society Ltd.
He was the Chairman of Manpower Committee of the Hong Kong General Chamber of Commerce
from 2014 to 2016. He was previously the Chairman of the General Committee of The British
Chamber of Commerce in Hong Kong from 2012 to 2014. He is also a director of The East Asian
History of Science Foundation, and a Councillor of the Foundation for the Arts and Music in Asia
Limited. He has been a member of the Financial Reporting Council of Hong Kong since December
2012. Mr. Sallnow-Smith was educated at Gonville & Caius College, Cambridge, and the University
of Leicester and is a Fellow of the Association of Corporate Treasurers. He holds M.A. (Cantab) and
M.A. (Soc. of Ed.) Degrees.
37Interim Report 2016
Directors and Senior Management
OUR SENIOR MANAGEMENT
The following table presents certain information concerning the senior management personnel of the
Group (other than our Executive Directors).
Senior management
Wynn Resorts (Macau) S.A.
Name Age Position
Frank Xiao 48 President — Marketing
Jay M. Schall 43 Senior Vice President and General Counsel#,
Senior Vice President — Legal
Wynn Macau
Name Age Position
Frank Anthony Cassella 39 Senior Vice President — Chief Financial Officer
Mo Yin Mok 55 Senior Vice President — Human Resources
Elizabeth Doherty 57 Assistant Vice President — Main Floor Gaming
Craig Arthur Raymond
Mitchell
55 Assistant Vice President — Slot Operations
Elsie Guerrero 60 Assistant Vice President — Wynn Club Gaming
Rory McGregor Forbes 46 Executive Director — Security Operations
Wynn Palace
Name Age Position
Frederic Jean-Luc Luvisutto 44 Chief Operating Officer
Charlie Ward 67 Executive Vice President — Casino Operations
Robert Alexander Gansmo 46 Senior Vice President — Chief Financial Officer
Peter James Barnes 57 Senior Vice President — Security & Corporate
Investigation
Dianne Fiona Dennehy 60 Senior Vice President — Main Floor Gaming
Mao Ling Yeung 44 Senior Vice President — Human Resources
Dennis Hudson 56 Vice President — Wynn Club Gaming
Notes:
# Position held in the Company.
38 Wynn Macau, Limited
Directors and Senior Management
The biography of each member of the senior management team (other than our executive Directors)
is set out below:
Mr. Frank Xiao, aged 48, is the President — Marketing of WRM, a position he has held since
October 2012. Prior to this position, Mr. Xiao was the Senior Executive Vice President — Premier
Marketing between August 2006 and October 2012. Mr. Xiao is responsible for providing leadership
and guidance to the marketing team and staff, developing business for and promoting Wynn Macau.
Prior to this position, Mr. Xiao was the Senior Executive Vice President — China Marketing for WIML
and Worldwide Wynn between 2005 until 2006. Prior to joining the Group, Mr. Xiao was the Senior
Vice President of Far East Marketing at MGM Grand Hotel. During his 12 years at the MGM Grand
Hotel, he was promoted several times from his first position as Far East Marketing Executive in 1993.
Mr. Xiao holds a Bachelor of Science Degree in Hotel Administration and a Master’s Degree in Hotel
Administration from the University of Nevada, Las Vegas.
Mr. Jay M. Schall, aged 43, is the Senior Vice President and General Counsel of the Company and
Senior Vice President — Legal of WRM. He has held senior legal positions with WRM since May
2006. Mr. Schall has over 16 years of experience in the legal field, including over 13 years in Macau
and Hong Kong. Prior to joining the Group, Mr. Schall practiced United States law at a major law firm
in the United States and in Hong Kong. Mr. Schall is a member of the State Bar of Texas. Mr. Schall
holds a Bachelor of Arts Degree from Colorado College, an MBA from Tulane University, Freeman
School of Business and a Juris Doctor (magna cum laude, Order of the Coif) from Tulane University
School of Law.
Mr. Frank Anthony Cassella, aged 39, is the Wynn Macau Senior Vice President — Chief Financial
Officer, a position he has held since January 2014. Mr. Cassella is responsible for the management
and administration of Wynn Macau finance division. Prior to this position, Mr. Cassella worked at
Wynn Resorts, Limited since 2006, most recently as the Executive-Director of Financial Reporting.
Prior to joining Wynn Resorts, Limited, Mr. Cassella practiced as a certified public accountant with
firms in Las Vegas and New York, including PricewaterhouseCoopers and KPMG. Mr. Cassella
graduated from the Pennsylvania State University, where he obtained a Bachelor of Science Degree
in Accounting.
39Interim Report 2016
Directors and Senior Management
Ms. Mo Yin Mok, aged 55, is the Wynn Macau Senior Vice President — Human Resources, a
position she has held since June 2014. She joined Wynn Macau in June 2008 as Vice President —
Human Resources, a position held until June 2014. Ms. Mok has an extensive 20-year background
in hospitality and human resources, primarily in the luxury hotel sector at The Regent Four Seasons
Hong Kong and The Peninsula Hong Kong. Prior to joining the Group, she led The Peninsula Group’s
worldwide human resources team and, in her position, supported eight Peninsula hotels with more
than 5,000 staff, and orchestrated human resources activities for the opening of The Peninsula
Tokyo. Ms. Mok also served at the front lines of the hospitality industry as the Director of Rooms
Division at The Peninsula Hong Kong with responsibility for front office, housekeeping, security
and spa departments. Ms. Mok currently serves on the Future Studies and Placement Advisory
Committee and the Centre for Continuing Education Advisory Board of the University of Macau
and is a panel member of the Hong Kong Council for Accreditation of Academic and Vocational
Qualifications.
Ms. Mok holds a Bachelor of Science Degree in Hospitality Management from Florida International
University in the United States, where she received a Rotary International Ambassadorial Scholarship.
She also obtained an MBA from the Chinese University of Hong Kong.
Ms. Elizabeth Doherty, aged 57, is the Wynn Macau Assistant Vice President — Main Floor
Gaming, a position she has held since January 2015. Ms. Doherty is responsible for leading and
overseeing the Main Floor Gaming operations. Prior to this position, she was Director of Workforce
Administration at Wynn Macau from November 2007 to December 2014. She joined Wynn Macau
pre-opening as a Casino Manager in June 2006. Before joining Wynn Macau, Ms. Doherty held a
variety of gaming and service leadership roles in Australasia and Europe. She has over 25 years
of experience in the gaming and services industry covering a broad spectrum of responsibilities
including gaming operations, training and development, along with project management, safety and
security.
40 Wynn Macau, Limited
Directors and Senior Management
Mr. Craig Arthur Raymond Mitchell, aged 55, is the Wynn Macau Assistant Vice President —
Slot Operations, a position he has held since June 2011. Mr. Mitchell is responsible for providing
leadership and guidance to the slot department management team and staff. This includes
establishing the operational structure, instituting departmental policies and procedures, developing
slot merchandising strategies, and projecting and evaluating the revenues and expenses of the
department. Prior to this position, Mr. Mitchell was the Director — Slot Operations between June
2008 and May 2011 and a Shift Manager of Slots between June 2006 and May 2008. Mr. Mitchell
held management roles in various hospitality-related businesses prior to joining the Group including
Gaming Manager at a Rugby Super League Club in Sydney which had 300 slot machines. From
1989, he was Operations Manager and Duty Manager at Balmain Leagues Club (Tigers), Australia.
Mr. Mitchell has attended the Gaming Executive Development Program at the University of Nevada,
United States.
Ms. Elsie Guerrero, aged 60, is the Wynn Macau Assistant Vice President — Wynn Club Gaming,
a position she has held since July 2015. Ms. Guerrero is responsible for overseeing Wynn Club
Gaming operations, expansion projects, staffing and training, budgeting and business operation
for Wynn Macau. Prior to this position, she was the Casino Manager at Wynn Las Vegas from April
2008 to June 2015. Ms. Guerrero started her gaming career as a Dealer at the former MGM Grand
Hotel (now Bally’s) in Las Vegas in 1980, and has amassed over 35 years of experience in the casino
industry. Prior to joining Wynn Las Vegas, she held the position as a Baccarat Manager at Caesar
Palace Las Vegas from April 2000 to June 2007 and was part of the pre-opening team in MGM
Grand Macau as a Casino Shift Manager from July 2007 to March 2008.
Mr. Rory McGregor Forbes, aged 46, is the Wynn Macau Executive Director — Security Operations,
a position he has held since 10 July 2014. Mr. Forbes is responsible for all aspects of WRM’s security.
Prior to joining the Group, Mr. Forbes served in the Royal Hong Kong Police Force, where he
enjoyed a decorated 13-year career, rising to the rank of Senior Inspector. He then spent four and
a half years with The HALO Trust which specializes in mine clearance and destruction of explosive
ordnance in conflict zones. Immediately prior to joining Wynn Macau, Mr. Forbes was Associate
Director of Security at Venetian Macau. Mr. Forbes speaks five languages and has professional
experience in executive and VIP security, crowd management and public order control. Mr. Forbes
holds a Bachelor Degree in Modern Chinese and Business Studies and a Master of Science Degree
in Public Policy and Management. Mr. Forbes also completed the Chinese Public Security Bureau
University course in Beijing, China and the Senior Police Administration Course in Ottawa, Canada.
41Interim Report 2016
Directors and Senior Management
Mr. Frederic Jean-Luc Luvisutto, aged 44, is the Wynn Palace Chief Operating Officer, a position he
has held since January 2014. Prior to this position, Mr. Luvisutto was the Managing Director of the
Star Resort and Casino in Sydney, Australia. Before this he was the Managing Director of Jupiters
Resort and Casino, Gold Coast, Australia. Mr. Luvisutto’s hospitality and gaming career spans 20
years and also includes appointments as Vice President of The Signature at MGM Grand in Las
Vegas and Vice President — Hotel Operations at Monte Carlo Resort and Casino in Las Vegas. Mr.
Luvisutto graduated from the Lausanne Hotel Management School, Switzerland.
Mr. Charlie Ward, aged 67, is the Wynn Palace Executive Vice President — Casino Operations,
a position he has held since August 2016. Prior to this position, Mr. Ward was the Wynn Macau
Executive Vice President — Casino Operations from March 2012 to July 2016. Mr. Ward is
responsible for providing leadership and operational direction for Wynn Palace gaming operations.
Mr. Ward has more than 40 years of experience in the gaming industry, having served at gaming
companies including MGM and Wynn. Over his career Mr. Ward has gained experience in a wide
range of assignments including customer/VIP relations, game protection and casino set up, opening
and operations. Prior to this position, Mr. Ward held the position of Vice President of Table Games
at Wynn | Encore Las Vegas between 2008 and 2012. Prior to this position, Mr. Ward was at MGM
Grand Hotel and Casino for 14 years and in 2007 was promoted to the pre-opening team of MGM
Grand Macau as Vice President of VIP Gaming.
Mr. Robert Alexander Gansmo, aged 46, is the Wynn Palace Senior Vice President — Chief
Financial Officer, a position he has held since January 2014. Prior to this position, Mr. Gansmo was
the Senior Vice President — Chief Financial Officer of Wynn Macau from April 2009 to January 2014,
and the Director — Finance of Wynn Macau, a position he assumed in January 2007. Mr. Gansmo is
responsible for the management and administration of Wynn Palace’s finance division. Before joining
WRM, Mr. Gansmo worked at Wynn Resorts, Limited, where he served as the Director of Financial
Reporting from November 2002. Prior to joining the Wynn Resorts, Limited, Mr. Gansmo practiced
as a certified public accountant with firms in Las Vegas, Washington and California, including KPMG
Peat Marwick, Arthur Andersen, and Deloitte and Touche. Mr. Gansmo graduated in 1993 from
California State University, Chico, where he obtained a Bachelor of Science Degree in Business
Administration with a focus on accounting.
42 Wynn Macau, Limited
Directors and Senior Management
Mr. Peter James Barnes, aged 57, is the Wynn Palace Senior Vice President — Security and
Corporate Investigations, a position he has held since May 2015. Mr. Barnes is responsible for all
aspects of security and corporate investigations. Mr. Barnes also served as Executive Director —
Security & Corporate Investigations of WRM between July 2008 and June 2012. Between July 2012
and April 2015, Mr. Barnes was Vice President Corporate Security at Galaxy Entertainment Group
Limited. Mr. Barnes has 30 years of experience in the Hong Kong Police Force and has held various
managerial positions involving serious crimes, homicide, organized crime and anti-riot operations.
Mr. Barnes’ experience includes serving as the Divisional Commander in charge of uniformed and
criminal investigation department officers in Tsimshatsui, Hong Kong, a position he held from 2004
until 2005 when he was promoted to the rank of Detective Senior Superintendent of Police in the
Kowloon East region. Mr. Barnes has professional qualifications which cover security design, financial
investigations, intermediate and senior command, criminal intelligence and surveillance operations.
Mr. Barnes completed the 205th Session of the Federal Bureau of Investigation’s National Academy
Program in Quantico, Virginia, United States. Mr. Barnes was awarded the Commanding Officer’s
Commendations in 1983 and 1997.
Ms. Dianne Fiona Dennehy, aged 60, is the Wynn Palace Senior Vice President — Main Floor
Gaming, a position she has held since January 2015. Ms. Dennehy is responsible for leading and
overseeing Wynn Palace’s Main Floor Gaming division. Prior to this position, she was the Vice
President — Main Floor Gaming from September 2011 to December 2014, from September 2010 to
August 2011 she was the Assistant Vice President — Main Floor Gaming, and from September 2005
through August 2010 she was the Director — Main Floor Gaming. Ms. Dennehy was responsible
for the overall operations of Wynn Macau main floor table games operation. Ms. Dennehy has
over 40 years of experience in the casino industry and has experience in such areas as table games
operations, card room operations, cash desk, slots, VIP, guest relations, human resources, and
training and development. Prior to joining the Group, Ms. Dennehy was involved in the opening of a
number of the casino properties in Australia, and has also opened properties in Sri Lanka, Yugoslavia
and Egypt. She also has six years of experience in human resources, which she gained as the Human
Resources Operations Manager at Star City, Sydney, Australia.
Ms. Mao Ling Yeung, aged 44, is the Wynn Palace Senior Vice President — Human Resources, a
position she has held since June 2015. Ms. Yeung has over 20 years of all-round human resources
and organization development experience in various sectors including hospitality, luxury retail, and
property within the Asia Pacific region. Prior to joining the Group, Ms. Yeung was the Regional
Director of Human Resources at SSP Asia Pacific Limited, and before that, she had also held
various strategic human resources leadership positions in such multinational organizations as Swire
Properties Limited, Swire Hotels, Louis Vuitton Asia Pacific, Four Seasons and Shangri-La.
Ms. Yeung holds a Bachelor’s Degree in Hospitality Management and a Master’s Degree in Business
Administration. She is also an alumni of the Advanced Management Program from INSEAD,
Fontainebleau.
43Interim Report 2016
Directors and Senior Management
Mr. Dennis Hudson, aged 56, is the Wynn Palace Vice President — Wynn Club Gaming, a
position he has held since July 2015. Mr. Hudson is responsible for overseeing Wynn Club Gaming
operations, expansion projects, staffing and training, budgeting and business operation for Wynn
Palace. Prior to this position, he was Wynn Macau Vice President — Wynn Club Gaming from April
2012 to June 2015 and he was a Shift Manager — Wynn Club from joining Wynn Macau in April 2006
through March 2012. Mr. Hudson started his gaming career at the Playboy Victoria Sporting Club
on Edgeware Road in London in 1979, and has amassed over 35 years of experience in the casino
industry, including senior management positions. Among others, he was a Casino Manager for Star
Cruises, where he was responsible for shipboard casino operations on cruises throughout Asia from
2000 to April 2006 and he was the Director of Gaming for VIP Clubs in the Czech Republic from 1995
to 2000.
OUR COMPANY SECRETARY
Ms. Ho Wing Tsz, Wendy, aged 46, has been appointed as the company secretary of the Company
with effect from 28 February 2013. She is a Director of Corporate Services Division at Tricor Services
Limited, a global professional service provider specialized in integrated business, corporate and
investor services. Ms. Ho is a Chartered Secretary and a Fellow of both The Hong Kong Institute of
Chartered Secretaries and The Institute of Chartered Secretaries and Administrators in the United
Kingdom. She has over 20 years of experience in a diversified range of corporate services and has
been providing professional secretarial services to a number of listed companies and a real estate
investment trust listed on the Hong Kong Stock Exchange.
44 Wynn Macau, Limited
Other Information
DIVIDENDS
The Board determined at its meeting on 18 August 2016 that no interim dividend be declared or
paid in respect of the six months ended 30 June 2016.
DIRECTORS’ AND CHIEF EXECUTIVE’S INTERESTS AND SHORT POSITIONS IN THE
SHARES, UNDERLYING SHARES AND DEBENTURES OF THE COMPANY AND ANY
ASSOCIATED CORPORATION
As at 30 June 2016, the interests and short positions of each Director and the chief executive of
the Company (being Mr. Stephen A. Wynn) in the Shares, underlying Shares and debentures of
the Company or any of its associated corporations within the meaning of Part XV of the SFO which
(a) were required to be notified to the Company and the Hong Kong Stock Exchange pursuant to
Divisions 7 and 8 of Part XV of the SFO (including interests and short positions which the Director
or chief executive is taken or deemed to have under such provisions of the SFO); (b) were required,
pursuant to section 352 of the SFO, to be entered in the register maintained by the Company
referred to therein; (c) were required, pursuant to the Model Code contained in the Listing Rules, to
be notified to the Company and the Hong Kong Stock Exchange; or (d) were disclosed according to
the knowledge of the Directors of the Company were as follows:
(a) Interests in the Company
Name of Director
Personal
Interest
Family
Interest
Corporate
Interest
Other
Interest
Total
Number of
Shares
Approximate
Percentage of
Shareholding
Allan Zeman 1,701,000
(Long Position)
(Note 1)
— — — 1,701,000
(Long Position)
(Note 1)
—
Nicholas Sallnow-Smith — 10,000
(Long Position)
(Note 2)
— 276,000
(Long Position)
(Note 2)
286,000
(Long Position)
(Note 2)
0.01%
1,425,000
(Long Position)
(Note 2)
— — — 1,425,000
(Long Position)
(Note 2)
—
Bruce Rockowitz 238,000
(Long Position)
(Note 3)
— — — 238,000
(Long Position)
(Note 3)
0.00%
1,463,000
(Long Position)
(Note 3)
— — — 1,463,000
(Long Position)
(Note 3)
—
45Interim Report 2016
Other Information
Name of Director
Personal
Interest
Family
Interest
Corporate
Interest
Other
Interest
Total
Number of
Shares
Approximate
Percentage of
Shareholding
Jeffrey Kin-fung Lam 1,701,000
(Long Position)
(Note 4)
— — — 1,701,000
(Long Position)
(Note 4)
—
Notes:
(1) Pursuant to the Company’s share option scheme, Dr. Allan Zeman holds share options for 1,701,000 Shares, of
which share options for 749,800 Shares have vested as at 18 August 2016.
(2) Mr. Nicholas Sallnow-Smith is deemed to hold 276,000 Shares jointly with his spouse, Ms. Lora Sallnow-Smith.
Ms. Lora Sallnow-Smith was interested in 10,000 Shares. Mr. Sallnow-Smith is deemed to be interested in the
10,000 Shares held by his spouse under the SFO. Pursuant to the Company’s share option scheme, Mr. Sallnow-
Smith holds share options for 1,425,000 Shares, of which share options for 473,800 Shares have vested as at 18
August 2016.
(3) Mr. Bruce Rockowitz holds 238,000 Shares in his personal capacity. Pursuant to the Company’s share option
scheme, Mr. Rockowitz holds share options for 1,463,000 Shares, of which share options for 511,800 Shares have
vested as at 18 August 2016.
(4) Pursuant to the Company’s share option scheme, Mr. Jeffrey Kin-fung Lam holds share options for 1,701,000
Shares, of which share options for 749,800 Shares have vested as at 18 August 2016.
(b) Interests in associated corporations — Wynn Resorts, Limited
Name of Director
Personal
Interest
Family
Interest
Corporate
Interest
Other
Interest
Total
Number of
Shares
Approximate
Percentage of
Shareholding
Stephen A. Wynn — 10,500
(Long Position)
(Note 1)
— 12,072,851
(Long Position)
(Note 1)
12,083,351
(Long Position)
(Note 1)
11.87%
Gamal Aziz 117,732
(Long Position)
(Note 2)
— — — 117,732
(Long Position)
(Note 2)
0.12%
Linda Chen 118,577
(Long Position)
(Note 3)
— — — 118,577
(Long Position)
(Note 3)
0.12%
365,000
(Long Position)
(Note 3)
— — — 365,000
(Long Position)
(Note 3)
—
46 Wynn Macau, Limited
Other Information
Name of Director
Personal
Interest
Family
Interest
Corporate
Interest
Other
Interest
Total
Number of
Shares
Approximate
Percentage of
Shareholding
Ian Michael Coughlan 29,856
(Long Position)
(Note 4)
— — — 29,856
(Long Position)
(Note 4)
0.03%
50,000
(Long Position)
(Note 4)
— — — 50,000
(Long Position)
(Note 4)
—
Matthew O. Maddox 106,294
(Long Position)
(Note 5)
— — — 106,294
(Long Position)
(Note 5)
0.10%
325,000
(Long Position)
(Note 5)
— — — 325,000
(Long Position)
(Note 5)
—
Notes:
(1) Mr. Stephen A. Wynn is deemed interested in 12,072,851 shares in the common stock of Wynn Resorts, Limited
(“WRL Shares”) held by Wynn Family Limited Partnership (Delaware, U.S.A.). Mr. Wynn, in his capacity as trustee
of the Stephen A. Wynn Revocable Trust U/D/T dated 24 June 2010, is the sole manager of Wynn GP, LLC
(Delaware, U.S.A.), which is the general partner of Wynn Family Limited Partnership. Mr. Wynn’s spouse was
interested in 10,500 WRL Shares, Mr. Wynn has disclaimed his interest in these shares but is deemed to be
interested in them under the SFO.
(2) Mr. Gamal Aziz held (i) 57,732 WRL Shares; and (ii) 60,000 non-vested WRL Shares.
(3) Ms. Linda Chen held (i) 18,577 WRL Shares; (ii) 100,000 non-vested WRL Shares; and (iii) 365,000 stock options
for WRL Shares, of which share options for 100,000 WRL Shares are exercisable.
(4) Mr. Ian Michael Coughlan held (i) 29,856 WRL Shares; and (ii) exercisable stock options for 50,000 WRL Shares.
(5) Mr. Matthew O. Maddox held (i) 56,294 WRL Shares; (ii) 50,000 non-vested WRL Shares; and (iii) 325,000 stock
options for WRL Shares of which share options for 60,000 WRL Shares are exercisable.
47Interim Report 2016
Other Information
SUBSTANTIAL SHAREHOLDERS’ INTERESTS AND SHORT POSITIONS IN THE SHARES
AND UNDERLYING SHARES OF THE COMPANY
As at 30 June 2016, the Company had been notified of the following substantial shareholders’
interests and short positions in the Shares and underlying Shares of the Company, which have been
recorded in the register of substantial shareholders required to be kept by the Company pursuant to
section 336 of Part XV of the SFO. These interests are in addition to those disclosed above in respect
of the Directors and chief executive of the Company.
Shares of HK$0.001 each in the Company
Name
Capacity/Nature of
Interest
Number of
Shares
Percentage of
the issued share
capital of the
Company
WM Cayman Holdings Limited I
(Note 1)
Beneficial interest 3,750,000,000
(Long Position)
72.18%
Wynn Group Asia, Inc. (Note 1) Interest of a controlled
corporation
3,750,000,000
(Long Position)
72.18%
Wynn Resorts, Limited (Note 1) Interest of a controlled
corporation
3,750,000,000
(Long Position)
72.18%
The Capital Group Companies, Inc.
(Note 2)
Interest of a controlled
corporation
265,508,124
(Long Position)
5.11%
Notes:
(1) WM Cayman Holdings Limited I is a wholly-owned subsidiary of Wynn Group Asia, Inc., which in turn is wholly-
owned by Wynn Resorts, Limited. Therefore, Wynn Group Asia, Inc. and Wynn Resorts, Limited are deemed or
taken to be interested in 3,750,000,000 Shares which are beneficially owned by WM Cayman Holdings Limited I.
(2) The Capital Group Companies, Inc. is deemed to be interested in 265,508,124 Shares, comprised of (i)
129,100,039 Shares held by a wholly-owned subsidiary, Capital Research and Management Company, and (ii)
136,408,085 Shares through Capital Group International, Inc., a wholly-owned subsidiary of Capital Research
and Management Company, which is deemed interested in 47,567,885 Shares held by Capital Guardian Trust
Company, 54,057,500 Shares held by Capital International, Inc., 2,883,100 Shares held by Capital International
Limited and 31,899,600 Shares held by Capital International Sarl, each being a wholly-owned subsidiary of
Capital Group International, Inc..
48 Wynn Macau, Limited
Other Information
Save as disclosed above, according to the register kept by the Company under Section 336 of the
SFO, there was no other person who had a substantial interest or short positions in the Shares or
underlying Shares of the Company as at 30 June 2016.
REMUNERATION POLICY
As at 30 June 2016, the Group had approximately 9,200 full-time equivalent employees. Employees
of the Group are selected, remunerated and promoted on the basis of their merit, qualifications,
competence and contribution to the Group.
Compensation of key executives of the Group is determined by the Company’s remuneration
committee which reviews and determines executives’ compensation based on the Group’s
performance and the executives’ respective contributions to the Group.
The Company also has a provident fund set up for its employees, an employee ownership scheme
and a share option scheme. Further details on the Company’s employee ownership scheme and
share option scheme are set out below.
EMPLOYEE OWNERSHIP SCHEME
The Company operates an employee ownership scheme as adopted on 30 June 2014. The following
table discloses movements in the non-vested Shares outstanding during the period ended 30 June
2016.
Number of
Shares
Weighted
Average
Grant Date
Fair Value
(HK$)
Non-vested as at 1 January 2016 8,446,838 27.43
Granted during the period 2,780,024 8.40
Forfeited during the period (374,680) 21.39
Non-vested as at 30 June 2016 10,852,182 22.76
As at 30 June 2016, no shares are vested under the company’s employee ownership scheme.
49Interim Report 2016
Other Information
SHARE OPTION SCHEME
The Company operates a share option scheme. The following table discloses movements in the
Company’s share options outstanding during the period ended 30 June 2016.
Number of share options
Name of Director
Date of
grant of
share
options (1)
At
1 January
2016
Granted
during the
period(2)
Exercised
during the
period
Expired/
lapsed/
canceled
during the
period
At
30 June
2016
Exercise period
of share options
Exercise
price of
share
options
per Share
(HK$)
Dr. Allan Zeman 25 March 2010 250,000 — — — 250,000 25 March 2011 to
24 March 2020
10.92
17 May 2011 100,000 — — — 100,000 17 May 2012 to
16 May 2021
25.96
5 June 2012 190,000 — — — 190,000 5 June 2013 to
4 June 2022
19.04
16 May 2013 200,000 — — — 200,000 16 May 2014 to
15 May 2023
24.87
15 May 2014 161,000 — — — 161,000 15 May 2015 to
14 May 2024
31.05
21 May 2015 317,000 — — — 317,000 21 May 2016 to
20 May 2025
15.46
25 May 2016 — 483,000 — — 483,000 25 May 2017 to
24 May 2026
11.58
50 Wynn Macau, Limited
Other Information
Number of share options
Name of Director
Date of
grant of
share
options (1)
At
1 January
2016
Granted
during the
period(2)
Exercised
during the
period
Expired/
lapsed/
canceled
during the
period
At
30 June
2016
Exercise period
of share options
Exercise
price of
share
options
per Share
(HK$)
Mr. Nicholas
Sallnow-Smith
25 March 2010 50,000 — — — 50,000 25 March 2011 to
24 March 2020
10.92
17 May 2011 100,000 — — — 100,000 17 May 2012 to
16 May 2021
25.96
5 June 2012 114,000 — — — 114,000 5 June 2013 to
4 June 2022
19.04
16 May 2013 200,000 — — — 200,000 16 May 2014 to
15 May 2023
24.87
15 May 2014 161,000 — — — 161,000 15 May 2015 to
14 May 2024
31.05
21 May 2015 317,000 — — — 317,000 21 May 2016 to
20 May 2025
15.46
25 May 2016 — 483,000 — — 483,000 25 May 2017 to
24 May 2026
11.58
Mr. Bruce Rockowitz 25 March 2010 50,000 — — — 50,000 25 March 2011 to
24 March 2020
10.92
17 May 2011 100,000 — — — 100,000 17 May 2012 to
16 May 2021
25.96
5 June 2012 152,000 — — — 152,000 5 June 2013 to
4 June 2022
19.04
16 May 2013 200,000 — — — 200,000 16 May 2014 to
15 May 2023
24.87
15 May 2014 161,000 — — — 161,000 15 May 2015 to
14 May 2024
31.05
21 May 2015 317,000 — — — 317,000 21 May 2016 to
20 May 2025
15.46
25 May 2016 — 483,000 — — 483,000 25 May 2017 to
24 May 2026
11.58
51Interim Report 2016
Other Information
Number of share options
Name of Director
Date of
grant of
share
options (1)
At
1 January
2016
Granted
during the
period(2)
Exercised
during the
period
Expired/
lapsed/
canceled
during the
period
At
30 June
2016
Exercise period
of share options
Exercise
price of
share
options
per Share
(HK$)
Mr. Jeffrey Kin-fung
Lam
25 March 2010 250,000 — — — 250,000 25 March 2011 to
24 March 2020
10.92
17 May 2011 100,000 — — — 100,000 17 May 2012 to
16 May 2021
25.96
5 June 2012 190,000 — — — 190,000 5 June 2013 to
4 June 2022
19.04
16 May 2013 200,000 — — — 200,000 16 May 2014 to
15 May 2023
24.87
15 May 2014 161,000 — — — 161,000 15 May 2015 to
14 May 2024
31.05
21 May 2015 317,000 — — — 317,000 21 May 2016 to
20 May 2025
15.46
25 May 2016 — 483,000 — — 483,000 25 May 2017 to
24 May 2026
11.58
Total 4,358,000 1,932,000 — — 6,290,000
The vesting periods of the above share options are 20% vesting on each of the anniversary date of
the date of grant.
Notes:
(1) Share options granted pursuant to the Company’s share option scheme.
(2) The closing price of the Company’s Shares immediately before the date on which the options were granted
during the period was HK$11.30.
52 Wynn Macau, Limited
Other Information
PURCHASE, SALE OR REDEMPTION OF THE COMPANY’S LISTED SECURITIES
Neither the Company, nor any of its subsidiaries purchased, sold or redeemed any of the Group’s
listed securities during the six months ended 30 June 2016.
CORPORATE GOVERNANCE
Our commitment to integrity and dedication to maintaining and ensuring high standards of
corporate governance are fundamental to our ability to conduct our business and sustain the respect
of the investment community and the people who regulate our industry. The Company’s corporate
governance practices are based on the principles, code provisions and certain recommended best
practices as set out in the Code and are regularly reviewed and developed in the interests of the
Company, its Shareholders and other stakeholders.
The Company has complied with the code provisions in the Code for the six months ended 30 June
2016 except for the following deviations from provisions A.2.1 and E.1.2 of the Code.
Mr. Stephen A. Wynn as our Chairman and Chief Executive Officer
Under code provision A.2.1 of the Code, the roles of chairman and chief executive officer should be
separate and should not be performed by the same individual. The Company does not at present
separate the roles of the chairman and chief executive officer.
Mr. Wynn, the founder of the Company and Wynn Macau, serves as the Chairman and Chief
Executive Officer of the Company. The Board has determined that the combination of these roles
held singularly by Mr. Wynn is in the best interest of the Company and all Shareholders. The Board
believes that the issue of whether to combine or separate the offices of Chairman of the Board and
Chief Executive Officer is part of the succession planning process and that it is in the best interests
of the Company for the Board to make a determination whether to combine or separate the roles
based upon the circumstances. The Board has given careful consideration to separating the roles of
Chairman and Chief Executive Officer and has determined that the Company and its Shareholders
are best served by the current structure. Mr. Wynn’s combined role promotes unified leadership
and direction for the Board and executive management and allows for a single, clear focus for the
Company’s operational and strategic efforts.
The combined role of Mr. Wynn as both Chairman and Chief Executive Officer is balanced by the
Company’s governance structure, policies and controls. All major decisions are made in consultation
with members of the Board and the relevant Board committees. The Company has three Board
committees, namely the audit and risk committee, remuneration committee, and nomination and
corporate governance committee. Each Board committee comprises non-executive Directors only
and is chaired by an independent non-executive Director. In addition, there are four independent
non-executive Directors on the Board offering independent perspectives.
53Interim Report 2016
Other Information
This structure encourages independent and effective oversight of the Company’s operations and
prudent management of risk.
For the reasons stated above and as a result of the structure, policies and procedures outlined
above, and in light of the historical success of Mr. Wynn’s leadership, the Board has concluded that
the current Board leadership structure is in the best interests of the Company and its Shareholders.
Annual General Meeting
Under code provision E.1.2, the chairman of the board should attend the annual general meetings of
the Company. Mr. Wynn, our Chairman, was unable to travel internationally to attend the Company’s
annual general meeting held on 25 May 2016 as he was recuperating from back surgery. Mr. Wynn
has recovered and is able to travel internationally.
MODEL CODE
The Company adopted the Model Code on 16 September 2009 as its code of conduct for securities
transactions by Directors. On 23 March 2010, the Company adopted its own code of conduct for
securities transactions which was subsequently updated in November 2013. The terms of such
code are no less exacting than those set out in the Model Code. Having made specific enquiry of
the Directors, all Directors have confirmed that they have complied with the required standard of
dealings and code of conduct regarding securities dealings by directors as set out in the Model
Code and the Company’s own code of conduct for the six months ended 30 June 2016.
QUARTERLY REPORTING BY WYNN RESORTS, LIMITED
Our ultimate controlling shareholder, Wynn Resorts, Limited is listed on the NASDAQ Stock
Market and is a reporting company under the United States Securities Exchange Act of 1934
which is required to file quarterly reports with the SEC. Each quarter, Wynn Resorts, Limited
issues press releases in the United States relating to its quarterly financial information (including
financial information about the Macau segment of Wynn Resorts, Limited, which is operated by the
Company). Such information will be presented in accordance with U.S. GAAP.
At the same time as Wynn Resorts, Limited releases its quarterly press releases, the Company
makes an announcement on the Hong Kong Stock Exchange pursuant to Rule 13.09 and 37.47B
of the Listing Rules and Part XIVA of the SFO by extracting the key highlights of the press release
pertaining to the Group. Such announcement will also include a quarterly income statement for the
Group presented in accordance with IFRS.
54 Wynn Macau, Limited
Other Information
In addition to the quarterly press release, Wynn Resorts, Limited also files quarterly reports with the
SEC. Simultaneously with the filing of such report in the United States, the Company also makes an
announcement on the Hong Kong Stock Exchange pursuant to Rule 13.09 and 37.47B of the Listing
Rules and Part XIVA of the SFO by extracting the key highlights of the quarterly report pertaining to
the Group.
CONTINUING DISCLOSURE PURSUANT TO LISTING RULES 13.18 AND 13.21
Under the terms of the Wynn Macau Credit Facilities, it is an event of default if Wynn Resorts,
Limited, the Company’s Controlling Shareholder, ceases to own directly or indirectly at least 51%
of the voting rights or issued capital of WRM or ceases to retain the ability or the right to direct
or procure the direction of the management and policies of WRM. Upon an event of default, the
lenders are entitled to exercise certain remedies including acceleration of the indebtedness under
the senior secured credit facilities.
In addition, the terms of the WML 2021 Notes contain a change of control provision that would, if
triggered, give rise to a right in favor of the holders of the WML 2021 Notes to require the Company
to repurchase such notes. The circumstances that will constitute a change of control include:
(1) the consummation of any transaction that results in any party other than Mr. Stephen A.
Wynn and his related parties becoming the direct or indirect owner of more than 50% of the
outstanding voting stock of WRL;
(2) the first day on which a majority of the members of the board of directors of either the
Company or WRL are not directors who were on the board at the date of issuance of the WML
2021 Notes, or directors who were nominated, elected, or appointed by a majority of the
directors who were on the board at the date of issuance of the WML 2021 Notes;
(3) the first day on which WRL ceases to own, directly or indirectly, a majority of the outstanding
issued share capital (including warrants, options or other rights convertible into share capital) of
the Company; and
(4) WRL consolidates with, or merges with or into, any other party or sells, assigns, conveys,
transfers, leases or otherwise disposes of all or substantially all of its assets to any party, or any
party consolidates with, or merges with or into, WRL in any such event pursuant to a transaction
in which any of the outstanding voting stock of WRL is converted into or exchanged for cash,
securities or other property, other than any such transaction where the voting stock of WRL
outstanding immediately prior to such transaction is converted into or exchanged for voting
stock that results in WRL holding a majority of the voting stock of the transferee or surviving
party.
Save as disclosed above, our Company does not have any other disclosure obligations under Rules
13.18 and 13.21 of the Listing Rules.
55Interim Report 2016
Other Information
LITIGATION
The Group did not have any material litigation outstanding as at 30 June 2016. The litigation matters
set out below are disclosed on a voluntary basis and as with all litigation, no assurances can be
provided as to the outcome thereof.
Macau Litigation Related to Okada
WRM and certain individuals who are or were directors of WRM and/or the Company (collectively,
the “Wynn Macau Parties”) have been named as defendants in a lawsuit filed in the Court of
First Instance of Macau (the “Macau Court”) by Mr. Kazuo Okada (“Okada”) and two of Okada’s
controlled companies, Aruze USA, Inc. and Universal Entertainment Corp. (collectively, the “Okada
Parties”). The principal allegations in the lawsuit are that the redemption of the Okada Parties’
shares in WRL was improper and undervalued, that the previously disclosed payment by WRM to
an unrelated third party in consideration of relinquishment by that party of certain rights in and
to any future development on the land in Cotai where the Company is constructing Wynn Palace
was unlawful and that the Company’s previously disclosed donation by WRM to the University of
Macau Development Foundation was unlawful. The Okada Parties seek the dissolution of WRM and
compensatory damages.
The Company made a voluntary announcement in respect of this lawsuit on 3 July 2015. The
Company has sought advice from counsel in Macau, and based on such advice, the Company
believes that the claims are devoid of merit and are unfounded. The Company intends to vigorously
defend WRM and the other defendants in the lawsuit. The Okada Parties recently released one of
the Wynn Macau Parties from the lawsuit. The Macau Court has served the complaint on all of the
remaining defendants and the Wynn Macau Parties filed their response in May 2016. The lawsuit is in
the early phases of litigation.
Macau Litigation Related to Dore
WRM has been named a defendant in several lawsuits filed in the Macau Court of First Instance
by individuals who claim to be investors in or persons with credit in accounts maintained by Dore
Entertainment Company Limited (“Dore”), an independent, Macau registered and licensed company
that operates a gaming promoter business at Wynn Macau. In connection with the alleged theft,
embezzlement, fraud and/or other crime(s) perpetrated by a former employee of Dore (the “Dore
Incident”), the plaintiffs of the lawsuits allege that Dore failed to honor withdrawal of funds requests
that allegedly has resulted in certain losses for these individuals. The principal allegations common
to the lawsuits are that WRM, as a gaming concessionaire, should be held responsible for Dore’s
conduct on the basis that WRM is responsible for the supervision of Dore’s activities at Wynn Macau
that resulted in the purported losses.
56 Wynn Macau, Limited
Other Information
The Company made a voluntary announcement in connection with the Dore Incident on 14
September 2015. The Company has sought advice from counsel in Macau, and based on such advice,
the Company believes the claims are devoid of merit and are unfounded. The Company intends to
vigorously defend WRM in the lawsuits. The lawsuits are only in the early phases of litigation.
COOPERATION WITH THE CCAC
In July 2014, the Company was contacted by the Commission Against Corruption of Macau (the
“CCAC”) requesting certain information related to the Company’s land in the Cotai area of Macau.
The Company is cooperating with the CCAC’s request.
CHANGES IN INFORMATION OF DIRECTORS
Pursuant to Rule 13.51(B)(1) of the Listing Rules, the changes in information of Directors of the
Company are set out below:
(a) Mr. Jeffrey Kin-fung Lam was appointed as the director of Hong Kong Mortgage Corporation
Limited (HKMC), effective from 25 April 2016.
REVIEW OF UNAUDITED INTERIM FINANCIAL INFORMATION
The Group’s unaudited interim financial information for the reporting period has been reviewed
by the Company’s Audit and Risk Committee members which comprises three independent non-
executive Directors: Mr. Nicholas Sallnow-Smith, Dr. Allan Zeman and Mr. Bruce Rockowitz and by
the Company’s auditors in accordance with Hong Kong Standards on Review Engagements 2410,
Review of Interim Financial Information Performed by the Independent Auditor of the Entity issued
by the Hong Kong Institute of Certified Public Accountants.
On behalf of the Board
Stephen A. Wynn
Chairman
Hong Kong, 18 August 2016
57Interim Report 2016
Report on Review of Interim Financial Information
22/F
CITIC Tower
1 Tim Mei Avenue
Central
Hong Kong
To the shareholders of Wynn Macau, Limited
(Incorporated in the Cayman Islands with limited liability)
INTRODUCTION
We have reviewed the accompanying interim financial information of Wynn Macau, Limited
(the “Company”) and its subsidiaries (together, the “Group”) set out on pages 59 to 87 which
comprises the condensed consolidated statement of financial position as at 30 June 2016 and
the related condensed consolidated statement of profit or loss and other comprehensive income,
condensed consolidated statement of changes in equity and condensed consolidated statement
of cash flows for the six-month period then ended, and explanatory notes. The Rules Governing
the Listing of Securities on The Stock Exchange of Hong Kong Limited require the preparation of
a report on interim financial information to be in compliance with the relevant provisions thereof
and International Accounting Standard 34 Interim Financial Reporting (“IAS 34”) issued by the
International Accounting Standards Board.
The directors of the Company are responsible for the preparation and presentation of this interim
financial information in accordance with IAS 34. Our responsibility is to express a conclusion on this
interim financial information based on our review. Our report is made solely to you, as a body, in
accordance with our agreed terms of engagement, and for no other purpose. We do not assume
responsibility towards or accept liability to any other person for the contents of this report.
SCOPE OF REVIEW
We conducted our review in accordance with Hong Kong Standard on Review Engagements 2410
Review of Interim Financial Information Performed by the Independent Auditor of the Entity issued
by the Hong Kong Institute of Certified Public Accountants. A review of interim financial information
consists of making inquiries, primarily of persons responsible for financial and accounting matters,
and applying analytical and other review procedures. A review is substantially less in scope than an
audit conducted in accordance with Hong Kong Standards on Auditing. Consequently, it does not
enable us to obtain assurance that we would become aware of all significant matters that might be
identified in an audit. Accordingly, we do not express an audit opinion.
58 Wynn Macau, Limited
Report on Review of Interim Financial Information
CONCLUSION
Based on our review, nothing has come to our attention that causes us to believe that the
accompanying interim financial information is not prepared, in all material respects, in accordance
with IAS 34.
Ernst & Young
Certified Public Accountants
Hong Kong
18 August 2016
59Interim Report 2016
Interim Financial Information
Condensed Consolidated Statement of Profit or Loss
and Other Comprehensive Income
For the Six Months Ended
30 June
2016 2015
HK$ HK$
Notes
(in thousands,
except per share amounts)
(unaudited) (unaudited)
Operating revenues
Casino 9,153,749 9,623,267
Rooms 62,909 62,282
Food and beverage 107,554 110,075
Retail and other 365,613 458,667
9,689,825 10,254,291
Operating costs and expenses
Gaming taxes and premiums 4,404,799 4,716,215
Staff costs 1,750,501 1,551,607
Other operating expenses 3 1,601,105 1,704,668
Depreciation and amortization 464,141 526,888
Property charges and other 8,897 285
8,229,443 8,499,663
Operating profit 1,460,382 1,754,628
Finance revenues 4 19,164 18,929
Finance costs 5 (293,442) (300,129)
Net foreign currency differences (15,482) 11,161
Changes in fair value of interest rate swaps (22,193) (44,358)
(311,953) (314,397)
Profit before tax 1,148,429 1,440,231
Income tax expense 6 7,524 3,230
Net profit attributable to owners of the Company 1,140,905 1,437,001
Total comprehensive income attributable to owners
of the Company 1,140,905 1,437,001
Basic and diluted earnings per Share 7 0.22 0.28
60 Wynn Macau, Limited
Interim Financial Information
Condensed Consolidated Statement of Financial Position
As at As at
30 June
2016
31 December
2015
HK$ HK$
Notes (in thousands)
(unaudited) (audited)
Non-current assets
Property and equipment and construction in progress 10 32,985,215 31,071,898
Leasehold interests in land 1,830,708 1,878,794
Goodwill 398,345 398,345
Deposits for acquisition of property and equipment 111,176 308,579
Interest rate swaps — 5,631
Other non-current assets 895,319 576,658
Restricted cash and cash equivalents 14,385 13,973
Total non-current assets 36,235,148 34,253,878
Current assets
Inventories 218,532 179,825
Trade and other receivables 11 507,872 457,728
Prepayments and other current assets 139,255 98,673
Amounts due from related companies 17 178,431 560,052
Restricted cash and cash equivalents 7,725 1,995
Cash and cash equivalents 2,991,549 6,731,356
Total current assets 4,043,364 8,029,629
Current liabilities
Accounts payable 12 1,056,734 1,621,099
Land premiums payable — 124,015
Other payables and accruals 13 3,874,182 3,986,427
Amounts due to related companies 17 122,093 128,920
Income tax payables 6 7,524 15,049
Other current liabilities 37,149 33,277
Total current liabilities 5,097,682 5,908,787
Net current (liabilities)/assets (1,054,318) 2,120,842
Total assets less current liabilities 35,180,830 36,374,720
61Interim Report 2016
Interim Financial Information
Condensed Consolidated Statement of Financial Position
As at As at
30 June
2016
31 December
2015
HK$ HK$
Notes (in thousands)
(unaudited) (audited)
Non-current liabilities
Interest-bearing borrowings 14 32,542,426 31,317,919
Construction retentions payable 12,316 399,986
Interest rate swaps 17,364 836
Other payables and accruals 13 315,100 381,178
Other long-term liabilities 168,488 172,522
Total non-current liabilities 33,055,694 32,272,441
Net assets 2,125,136 4,102,279
Equity
Equity attributable to owners of the Company
Issued capital 5,196 5,196
Share premium account 161,746 161,746
Shares held for employee ownership scheme (109,001) (50,184)
Reserves 2,067,195 3,985,521
Total equity 2,125,136 4,102,279
Approved and authorized for issue by the Board of Directors on 18 August 2016.
Stephen A. Wynn Matthew O. Maddox
Director Director
62 Wynn Macau, Limited
Interim Financial Information
Condensed Consolidated Statement of Changes in Equity
Attributable to owners of the Company
Note
Issued
Capital
HK$
Share
Premium
Account
HK$
Shares
held for
employee
ownership
scheme
HK$
Share
Option
Reserve*
HK$
Other
Reserves*#
HK$
Statutory
Reserve*
HK$
Retained
Earnings*
HK$
Currency
Translation
Reserve*
HK$
Total
Equity
HK$
(in thousands)
At 1 January 2016 (audited) 5,196 161,746 (50,184) 522,926 554,740 48,568 2,842,459 16,828 4,102,279
Net profit for the period — — — — — — 1,140,905 — 1,140,905
Total comprehensive
income for the period — — — — — — 1,140,905 — 1,140,905
Share-based payments — — — 50,032 — — — — 50,032
Shares purchased for
employee ownership scheme — — (58,817) — — — — — (58,817)
Special dividend paid 8 — — — — — — (3,109,263) — (3,109,263)
At 30 June 2016 (unaudited) 5,196 161,746 (109,001) 572,958 554,740 48,568 874,101 16,828 2,125,136
At 1 January 2015 (audited) 5,196 161,746 (16,154) 394,267 554,740 48,568 5,878,522 16,828 7,043,713
Net profit for the period — — — — — — 1,437,001 — 1,437,001
Total comprehensive income
for the period — — — — — — 1,437,001 — 1,437,001
Share-based payments — — — 68,745 — — — — 68,745
Shares purchased for
employee ownership scheme — — (10,708) — — — — — (10,708)
Special dividend paid 8 — — — — — — (5,446,461) — (5,446,461)
At 30 June 2015 (unaudited) 5,196 161,746 (26,862) 463,012 554,740 48,568 1,869,062 16,828 3,092,290
* These reserve accounts comprise the consolidated reserves of HK$2.1 billion in the condensed consolidated
statement of financial position at 30 June 2016 (31 December 2015: HK$4.0 billion).
# “Other reserves” at 1 January 2016 is composed of HK$194.3 million (1 January 2015: HK$194.3 million) of
issued capital of Wynn Resorts Macau S.A. (“WRM”) and HK$360.4 million (1 January 2015: HK$360.4 million) of
issued capital of Wynn Resorts International, Ltd..
63Interim Report 2016
Interim Financial Information
Condensed Consolidated Statement of Cash Flows
For the Six Months Ended
30 June
2016 2015
HK$ HK$
Note (in thousands)
(unaudited) (unaudited)
Net cash flows generated from operating activities 1,990,172 437,998
Investing activities
Purchase of property and equipment,
net of construction retentions payable (3,134,450) (6,168,940)
Purchase of other non-current assets (263,235) (2,812)
Proceeds from sale of property and equipment and
other assets 5,457 7,137
Interest received 21,970 24,486
Net cash flows used in investing activities (3,370,258) (6,140,129)
Financing activities
Proceeds from borrowings 1,168,600 3,192,823
Interest paid (221,117) (248,731)
Payment of land premiums (124,015) (118,039)
Increase in restricted cash and cash equivalents (6,142) (6,550)
Dividend paid 8 (3,109,263) (5,446,461)
Payment of debt financing costs (12,719) —
Shares purchased for employee ownership scheme (58,817) (10,708)
Net cash flows used in financing activities (2,363,473) (2,637,666)
Net decrease in cash and cash equivalents (3,743,559) (8,339,797)
Cash and cash equivalents at 1 January 6,731,356 10,789,890
Effect of foreign exchange rate changes, net 3,752 2,902
Cash and cash equivalents at 30 June 2,991,549 2,452,995
64 Wynn Macau, Limited
Interim Financial Information
Notes to Interim Financial Information
For the six months ended 30 June 2016
1. CORPORATE INFORMATION
The Company was incorporated in the Cayman Islands as an exempted company with limited
liability on 4 September 2009. The Company’s Shares were listed on the Main Board of the
Hong Kong Stock Exchange on 9 October 2009. The Company’s registered office address is
P.O. Box 309, Ugland House, Grand Cayman, KY1-1104, Cayman Islands, or at such other place
as the Directors may from time to time decide.
The Group owns and operates hotel and casino resorts in Macau, namely Wynn Macau and
Wynn Palace. WRM conducts gaming activities in our casinos in Macau under a concession
contract signed with the Macau Government on 24 June 2002. The 20-year concession period
commenced on 27 June 2002 and will expire on 26 June 2022.
The Group also owns a land concession for approximately 51 acres of land in the Cotai area
of Macau (the “Cotai Land”) for a term of 25 years from May 2012. The Group opened Wynn
Palace, an integrated resort, situated on the Cotai Land on 22 August 2016.
WM Cayman Holdings Limited I owns approximately 72% of the Company and approximately
28% of the Company is owned by public shareholders. The ultimate parent company of Wynn
Macau, Limited is Wynn Resorts, Limited, a publicly-traded company incorporated in the United
States of America.
65Interim Report 2016
Interim Financial Information
Notes to Interim Financial Information
For the six months ended 30 June 2016
1. CORPORATE INFORMATION (continued)
Information about subsidiaries
The following is a list of subsidiaries of the Company as at 30 June 2016:
Name
Place of
incorporation/
operation Principal activities
Nominal value
of issued share/
registered capital
Interest
held
WM Cayman Holdings Limited II Cayman Islands Investment
holding
Ordinary shares
— US$1
100%
Wynn Resorts International, Ltd. Isle of Man Investment
holding
Ordinary shares
— GBP2
100%
Wynn Resorts (Macau) Holdings, Ltd. Isle of Man Investment
holding
Ordinary shares
— Class A shares:
GBP343
100%
— Class B shares:
GBP657
Wynn Resorts (Macau), Limited Hong Kong Investment
holding
Ordinary shares
— HK$100
100%
Wynn Resorts (Macau) S.A. Macau Operator of hotel
casino and
related gaming
businesses
Share capital
— MOP200,100,000
100%**
Palo Real Estate Company Limited Macau Development,
design and
preconstruction
activities
Share capital
— MOP1,000,000
100%
WML Finance I Limited Cayman Islands Entity facilitates
lending within
the Group
Ordinary shares
— US$1
100%
WML Corp. Ltd. Cayman Islands Investment
holding
Ordinary shares
— US$1
100%*
* Shares directly held by the Company
** 10% of the shares were held by a Macau-resident investor which entitle the holder to 10% of the voting
and social rights and the rights to maximum dividend or payment upon dissolution of one MOP. The
remaining 90% of the shares held by the Group are entitled to 90% of the voting rights and 100% of the
profit participation or economic interest.
None of the subsidiaries had any debt securities outstanding at 30 June 2016 or at any time
during the six months ended 30 June 2016.
66 Wynn Macau, Limited
Interim Financial Information
Notes to Interim Financial Information
For the six months ended 30 June 2016
1. CORPORATE INFORMATION (continued)
Contribution to Trust
The Company has consolidated an operating entity within the Group without any legal interests.
Due to the implementation of the employee ownership scheme of the Group, the Company has
set up a structured entity, Trust, and its particulars are as follows:
Structured entity Principal activities
Trust Administering and holding the Company’s Shares acquired for the
employee ownership scheme, which is set up for the benefits of eligible
persons of the scheme
2.1 ACCOUNTING POLICIES AND BASIS OF PREPARATION
This interim financial information has been prepared in accordance with the applicable
disclosure requirements of Appendix 16 to the Rules Governing the Listing of Securities on the
Hong Kong Stock Exchange and International Accounting Standard (“IAS”) 34 Interim Financial
Reporting issued by the International Accounting Standards Board. The interim financial
information does not include all the information and disclosures required in the annual financial
statements, and should be read in conjunction with the Group’s annual financial statements for
the year ended 31 December 2015.
As at 30 June 2016, the Group had cash and cash equivalents of HK$2,991.5 million derived
from its ordinary business operations. These cash and cash equivalents have not been
earmarked for any specific use other than for general corporate purposes, development of
Wynn Palace and repayments on the Group’s debt obligations.
As at 30 June 2016, the Group had a net current liability position of HK$1,054.3 million. The
Group expects it will generate positive cash flows in the coming twelve months and may obtain
or renew its bank loan facilities and, or seek other sources of funding, wherever needed, to
meet its financial liabilities as and when they fall due. The Group believes it has sufficient
working capital to finance its operations and financial obligations.
67Interim Report 2016
Interim Financial Information
Notes to Interim Financial Information
For the six months ended 30 June 2016
2.2 IMPACT OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING
STANDARDS (“IFRSs”)
The accounting policies adopted in the preparation of the interim condensed consolidated
financial statements are consistent with those followed in the preparation of the Group’s
annual consolidated financial statements for the year ended 31 December 2015, except for the
adoption of new standards and interpretations effective as of 1 January 2016:
Amendments to IFRS 10,
IFRS 12 and IAS 28
Investment Entities: Applying the Consolidation Exception
Amendments to IFRS 11 Accounting for Acquisitions of Interests in Joint Operations
Amendments to IAS 1 Disclosure Initiative
Amendments to IAS 16
and IAS 38
Clarification of Acceptable Methods of Depreciation and
Amortization
Amendments to IAS 27 Equity Method in Separate Financial Statements
Annual Improvements
2012–2014 Cycle
Amendments to a number of IFRSs
The adoption of these new and revised IFRSs and interpretations has had no significant financial
effects on the interim financial information and there have been no significant changes to the
accounting policies applied in the interim financial information.
2.3 NEW AND REVISED IFRSs NOT YET ADOPTED
The Group has not early adopted any other standard, interpretation or amendment that has
been issued but is not yet effective.
2.4 SEGMENT REPORTING
Operating segments are reported in a manner consistent with the internal reporting provided to
the chief operating decision-makers, who are responsible for allocating resources and assessing
performance of the operating segments and making strategic decisions. For management
purposes, during the six months ended 30 June 2016, the Group reviews Wynn Macau and
Wynn Palace as two reportable segments. Refer to note 9 for segment information.
68 Wynn Macau, Limited
Interim Financial Information
Notes to Interim Financial Information
For the six months ended 30 June 2016
3. OTHER OPERATING EXPENSES
For the Six Months Ended
30 June
2016 2015
HK$ HK$
(in thousands)
(unaudited) (unaudited)
Gaming promoters’ commissions 427,922 491,812
License fees 366,109 394,984
Cost of sales 126,433 163,567
Repairs and maintenance 110,363 86,214
Advertising and promotions 104,326 120,126
Operating supplies and equipment 99,461 73,795
Utilities and fuel 87,263 93,447
Corporate support services and other 49,217 44,609
Operating rental expenses 33,037 28,812
Other support services 18,728 18,120
Auditors’ remuneration 3,487 2,483
(Reversal of provision)/provision for doubtful accounts, net (21,347) 43,450
Other expenses 196,106 143,249
1,601,105 1,704,668
69Interim Report 2016
Interim Financial Information
Notes to Interim Financial Information
For the six months ended 30 June 2016
4. FINANCE REVENUES
For the Six Months Ended
30 June
2016 2015
HK$ HK$
(in thousands)
(unaudited) (unaudited)
Interest income from cash at banks 19,164 18,929
5. FINANCE COSTS
For the Six Months Ended
30 June
2016 2015
HK$ HK$
(in thousands)
(unaudited) (unaudited)
Interest expense 555,363 413,850
Bank fees for unused facilities 4,714 27,455
Amortization of debt financing costs 64,541 41,313
Less: capitalized interest (331,176) (182,489)
293,442 300,129
For the six months ended 30 June 2016, interest was capitalized using a weighted average rate
of 2.98% (six months ended 30 June 2015: 3.52%).
70 Wynn Macau, Limited
Interim Financial Information
Notes to Interim Financial Information
For the six months ended 30 June 2016
6. INCOME TAX EXPENSE
The major components of income tax expense for the six months ended 30 June 2016 and 2015
were:
For the Six Months Ended
30 June
2016 2015
HK$ HK$
(in thousands)
(unaudited) (unaudited)
Income tax expense:
Current — overseas 7,524 7,524
Deferred — overseas — (4,294)
7,524 3,230
No provision for Hong Kong profit tax for the six months ended 30 June 2016 has been made
as there was no assessable profit generated in Hong Kong (six months ended 30 June 2015:
Nil). Taxation for overseas jurisdictions is charged at the appropriate prevailing rates ruling
in the respective jurisdictions and the maximum rate is 12% (six months ended 30 June 2015:
12%). For the six months ended 30 June 2016, the tax provision of HK$7.5 million results from
the current income tax expense accrued by our subsidiaries owning WRM’s shares under the
WRM Shareholder Dividend Tax Agreement (six months ended 30 June 2015: HK$7.5 million
and a deferred tax benefit of HK$4.3 million resulting from a decrease in its deferred tax
liability). Effective 6 September 2006, WRM received a 5-year exemption from Macau’s 12%
Complementary Tax on casino gaming profits (the “Tax Holiday”). On 30 November 2010, WRM
received an additional 5-year exemption effective from 1 January 2011 through 31 December
2015. On 15 October 2015, WRM received the third 5-year exemption effective from 1 January
2016 through 31 December 2020. Accordingly, the Group was exempted from the payment of
approximately HK$162.1 million in such tax for the six months ended 30 June 2016 (six months
ended 30 June 2015: HK$184.9 million). The Group’s non-gaming profits remain subject to
the Macau Complementary Tax and its casino winnings remain subject to the Macau Special
Gaming Tax and other levies in accordance with its Concession Agreement.
71Interim Report 2016
Interim Financial Information
Notes to Interim Financial Information
For the six months ended 30 June 2016
6. INCOME TAX EXPENSE (continued)
In June 2009, WRM entered the WRM Shareholder Dividend Tax Agreement, effective
retroactively to 2006, with the Macau Special Administrative Region that provided for
annual payments of MOP7.2 million (approximately HK$7.0 million) to the Macau Special
Administrative Region in lieu of Complementary Tax on dividend distributions to its
shareholders from gaming profits. The term of this agreement was five years, which coincided
with the Tax Holiday which began in 2006. In August 2011, the 5-year extension was granted
with an annual payment of MOP15.5 million (approximately HK$15.0 million) due to the Macau
Special Administrative Region for each of the years 2011 through 2015. In June 2015, WRM
applied for an extension of this agreement. In August 2016, the 5-year extension was granted
with an annual payment of MOP12.8 million (approximately HK$12.4 million) due to the Macau
Special Administrative Region for each of the years 2016 through 2020.
The Group is exempted from income tax in the Isle of Man and the Cayman Islands. The
Group’s subsidiaries file income tax returns in Macau and various foreign jurisdictions as
required by law. The Group’s income tax returns are subject to examinations by tax authorities
in the locations where it operates. The Group’s 2011 to 2015 Macau Complementary Tax
returns remain subject to examination by the Financial Services Bureau of the Government of
the Macau Special Administrative Region (the “Financial Services Bureau”). In June 2015, the
Financial Services Bureau commenced an examination of the 2012 Macau Complementary Tax
returns for WRM and in November 2015, the Financial Services Bureau issued its tax assessment
for the year 2012. While no additional tax was due, adjustments were made to WRM’s tax
loss carry forwards. In April 2016, the Financial Services Bureau examined the 2012 Macau
Complementary Tax return of Palo. The examination resulted in no change to the tax return.
Quarterly, the Group undertakes reviews for any potentially unfavorable tax outcome and when
an unfavorable outcome is identified as being probable and can be reasonably estimated,
the Group then establishes a tax reserve for such possible unfavorable outcome. Estimating
potential tax outcomes for any uncertain tax issues is highly judgmental and may not be
indicative of the ultimate settlement with the tax authorities.
As at 30 June 2016, the Group has unrecognized tax losses of HK$2.9 billion (31 December
2015: HK$2.2 billion) and the Group believes that these unrecognized tax losses are adequate
to offset adjustments that might be proposed by the Macau tax authorities. The Group believes
that it has adequately provided reasonable reserves for prudent and foreseeable outcomes
related to uncertain tax matters.
72 Wynn Macau, Limited
Interim Financial Information
Notes to Interim Financial Information
For the six months ended 30 June 2016
7. EARNINGS PER SHARE ATTRIBUTABLE TO OWNERS OF THE COMPANY
The calculation of basic earnings per Share amount for the six months ended 30 June 2016
is based on the consolidated net profit attributable to owners of the Company and on the
weighted average number of Shares in issue of 5,181,626,809 during the period (six months
ended 30 June 2015: 5,187,003,028), excluding Shares reserved and purchased for the
Company’s employee ownership scheme. Shares of 5,500,800 were purchased (six months
ended 30 June 2015: 559,000) for the Company’s employee ownership scheme for the six
months ended 30 June 2016.
The calculation of diluted earnings per Share for the six months ended 30 June 2016 is based
on the consolidated net profit attributable to owners of the Company and on the weighted
average number of Shares of 5,182,335,253 (six months ended 30 June 2015: 5,187,236,707);
including weighted average number of Shares in issue of 5,181,626,809 during the period (six
months ended 30 June 2015: 5,187,003,028) plus the weighted average number of potential
Shares of 708,444 (six months ended 30 June 2015: 233,679) arising from the deemed exercise
of share options and deemed vesting of awards under the Company’s employee ownership
scheme.
8. DIVIDENDS PAID AND PROPOSED
For the Six Months Ended
30 June
2016 2015
HK$ HK$
(in thousands)
(unaudited) (unaudited)
Dividends declared and paid:
Special dividend of HK$0.6 per Share for 2015
(2014: HK$1.05 per Share) 3,109,263 5,446,461
The Board determined at its meeting on 18 August 2016 that no interim dividend be declared
or paid in respect of the six months ended 30 June 2016.
73Interim Report 2016
Interim Financial Information
Notes to Interim Financial Information
For the six months ended 30 June 2016
9. SEGMENT INFORMATION
The Group’s profits were contributed by Wynn Macau during the six months ended 30 June
2016 and 2015 and accordingly no segment results are presented for the six months ended 30
June 2016 and 2015.
The following table presents assets information for the Group’s reportable segments as at 30
June 2016 and 31 December 2015, respectively:
As at
30 June
2016
As at
31 December
2015
HK$ HK$
(in thousands)
(unaudited) (audited)
Total assets
Wynn Macau 10,436,641 11,398,086
Wynn Palace 29,045,103 26,618,462
Other Macau 796,768 4,266,959
40,278,512 42,283,507
10. PROPERTY AND EQUIPMENT AND CONSTRUCTION IN PROGRESS
For the six months ended 30 June 2016, the Group incurred HK$2.3 billion (six months ended
30 June 2015: HK$6.1 billion) on additions of property and equipment and construction in
progress. The Group disposed of property and equipment and construction in progress with a
net carrying amount of HK$14.5 million (six months ended 30 June 2015: HK$7.4 million).
74 Wynn Macau, Limited
Interim Financial Information
Notes to Interim Financial Information
For the six months ended 30 June 2016
11. TRADE AND OTHER RECEIVABLES
Trade and other receivables consist of the following as at 30 June 2016 and 31 December 2015:
As at
30 June
2016
As at
31 December
2015
HK$ HK$
(in thousands)
(unaudited) (audited)
Casino 579,311 570,244
Hotel 3,054 5,014
Retail leases and other 105,211 102,493
687,576 677,751
Less: allowance for doubtful accounts (179,704) (220,023)
Total trade and other receivables, net 507,872 457,728
An aged analysis of trade and other receivables is as follows:
As at
30 June
2016
As at
31 December
2015
HK$ HK$
(in thousands)
(unaudited) (audited)
Within 30 days 59,184 143,849
31 to 60 days 173,843 80,666
61 to 90 days 85,759 17,080
Over 90 days 368,790 436,156
687,576 677,751
Less: allowance for doubtful accounts (179,704) (220,023)
Net trade and other receivables 507,872 457,728
Except for the advanced commission, the trade and other receivables are generally repayable
within 14 days. The advanced commissions are on terms requiring settlement within five
business days of the month following the advance.
75Interim Report 2016
Interim Financial Information
Notes to Interim Financial Information
For the six months ended 30 June 2016
12. ACCOUNTS PAYABLE
During the six months ended 30 June 2016 and 2015, the Group normally received credit terms
of 30 days. An aged analysis of accounts payable as at the end of the reporting period, based
on invoice dates, is as follows:
As at
30 June
2016
As at
31 December
2015
HK$ HK$
(in thousands)
(unaudited) (audited)
Within 30 days 461,577 1,031,434
31 to 60 days 59,045 52,060
61 to 90 days 19,118 36,153
Over 90 days 516,994 501,452
1,056,734 1,621,099
76 Wynn Macau, Limited
Interim Financial Information
Notes to Interim Financial Information
For the six months ended 30 June 2016
13. OTHER PAYABLES AND ACCRUALS
Other payables and accruals consist of the following as at 30 June 2016 and 31 December 2015:
As at
30 June
2016
As at
31 December
2015
HK$ HK$
(in thousands)
(unaudited) (audited)
Current:
Gaming taxes payable 679,369 673,937
Outstanding chip liabilities 1,661,159 1,737,443
Customer deposits 937,415 959,910
Donation payable 77,670 77,670
Other liabilities 518,569 537,467
3,874,182 3,986,427
Non-current:
Donation payable 315,100 381,178
Total 4,189,282 4,367,605
77Interim Report 2016
Interim Financial Information
Notes to Interim Financial Information
For the six months ended 30 June 2016
14. INTEREST-BEARING BORROWINGS
As at
30 June
2016
As at
31 December
2015
HK$ HK$
Notes (in thousands)
(unaudited) (audited)
Bank loans, secured (a) 22,404,151 21,225,648
Senior notes, unsecured (b) 10,506,354 10,498,488
32,910,505 31,724,136
Less: debt financing costs, net (368,079) (406,217)
Total interest-bearing borrowings 32,542,426 31,317,919
The borrowings are repayable as follows:
As at
30 June
2016
As at
31 December
2015
HK$ HK$
Notes (in thousands)
(unaudited) (audited)
Bank loans: (a)
In the second to fifth year, inclusive 13,457,238 9,660,861
After the fifth year 8,946,913 11,564,787
22,404,151 21,225,648
Less: debt financing costs, net (279,240) (310,215)
22,124,911 20,915,433
Senior notes: (b)
After the fifth year 10,506,354 10,498,488
Less: debt financing costs, net (88,839) (96,002)
10,417,515 10,402,486
78 Wynn Macau, Limited
Interim Financial Information
Notes to Interim Financial Information
For the six months ended 30 June 2016
14. INTEREST-BEARING BORROWINGS (continued)
Notes:
(a) Bank loans, secured
As at 30 June 2016, the Wynn Macau Credit Facilities consisted of approximately HK$23.7 billion
equivalent in a combination of Hong Kong dollar and U.S. dollar facilities, including an approximately
HK$17.9 billion equivalent fully funded senior term loan facility and an approximately HK$5.8 billion
equivalent senior revolving credit facility.
There is also an option to upsize the total senior secured credit facilities by approximately an additional
HK$7.8 billion equivalent (US$1.0 billion) under the Wynn Macau Credit Facilities and related agreements
upon the satisfaction of various conditions.
The HK$17.9 billion equivalent term loan facility is repayable in graduating installments of between 2.50%
to 7.33% of the principal amount on a quarterly basis commencing December 2018, with a final installment
of 50% of the principal amount repayable in September 2021. The final maturity of any outstanding
borrowings from the revolving credit facility is September 2020, by which time any outstanding borrowings
from the revolving loans must be repaid.
The borrowings under the Wynn Macau Credit Facilities bear interest at LIBOR or HIBOR plus a margin of
1.50% to 2.25% per annum based on WRM’s leverage ratio. Customary fees and expenses were paid by
WRM in connection with the Wynn Macau Credit Facilities.
As at 30 June 2016, the Group had HK$1.3 billion in funding available under the revolving credit facility of
the Wynn Macau Credit Facilities.
(b) Senior notes, unsecured
The Company has issued 5.25% fixed rate, unsecured senior notes due 15 October 2021 for an aggregate
principal amount of US$1.35 billion (approximately HK$10.5 billion). The Company may use the net
proceeds from the offering of the WML 2021 Notes for working capital requirements and general
corporate purposes. The WML 2021 Notes are listed on the Hong Kong Stock Exchange.
79Interim Report 2016
Interim Financial Information
Notes to Interim Financial Information
For the six months ended 30 June 2016
14. INTEREST-BEARING BORROWINGS (continued)
WMLF Revolving Credit Facility
On 18 July 2016, WML Finance I Limited (the “WMLF”), a wholly-owned indirect subsidiary
of the Company, entered into an agreement as the borrower for a revolving credit facility for
initially up to HK$1,548.3 million (approximately US$198.5 million) with Bank of China Limited,
Macau Branch as the lender.
Borrowings under the WMLF Revolving Credit Facility are secured by pledged US$ deposits
placed by WRL in a pledged account at Bank of China Limited, Macau Branch. The amount
pledged in favor of Bank of China Limited, Macau Branch must equal 100.75% of the
outstanding borrowings under the WMLF Revolving Credit Facility, being initially up to US$200
million (approximately HK$1,560 million).
The WMLF Revolving Credit Facility will be used for non-gaming general corporate purposes
and working capital requirements of WRM and its affiliates, including the construction,
operation and maintenance of Wynn Palace.
The final maturity of any outstanding borrowings under the WMLF Revolving Credit Facility is 18
July 2018, by which time any outstanding borrowings must be repaid in full.
The borrowings under the WMLF Revolving Credit Facility will bear interest initially at 1.50% per
annum, such rate calculated as the interest rate paid by Bank of China Limited, Macau Branch
to WRL in respect of the US$ deposits in the pledged account at Bank of China Limited, Macau
Branch plus a margin of 0.40%. Under the terms of the agreement, mandatory repayment is
required upon a change in control or material adverse effect (as defined in the agreement).
As at the Latest Practicable Date, the Group had HK$1,548.3 million available under the WMLF
Revolving Credit Facility.
80 Wynn Macau, Limited
Interim Financial Information
Notes to Interim Financial Information
For the six months ended 30 June 2016
15. COMMITMENTS
Operating lease commitments — Group as lessee
As at
30 June
2016
As at
31 December
2015
HK$ HK$
(in thousands)
(unaudited) (audited)
Within one year 111,775 106,803
After one year but not more than five years 350,544 380,726
More than five years 395,868 425,695
858,187 913,224
Operating lease commitments — Group as lessor
As at
30 June
2016
As at
31 December
2015
HK$ HK$
(in thousands)
(unaudited) (audited)
Within one year 646,107 533,267
After one year but not more than five years 2,090,739 2,474,504
More than five years 45,036 99,422
2,781,882 3,107,193
81Interim Report 2016
Interim Financial Information
Notes to Interim Financial Information
For the six months ended 30 June 2016
15. COMMITMENTS (continued)
Capital commitments
As at
30 June
2016
As at
31 December
2015
HK$ HK$
(in thousands)
(unaudited) (audited)
Contracted, but not provided for 683,697 2,115,249
Other services commitments
As at
30 June
2016
As at
31 December
2015
HK$ HK$
(in thousands)
(unaudited) (audited)
Within one year 253,292 337,898
After one year but not more than five years 576,324 574,308
More than five years 7,462 922
837,078 913,128
As at 30 June 2016, the Group was committed to purchases for operating items totaling
HK$67.2 million (31 December 2015: HK$71.7 million).
82 Wynn Macau, Limited
Interim Financial Information
Notes to Interim Financial Information
For the six months ended 30 June 2016
15. COMMITMENTS (continued)
Cotai Development – Wynn Palace
On 29 July 2013, WRM and Palo finalized and executed a guaranteed maximum price
construction (“GMP”) contract with Leighton Contractors (Asia) Limited, acting as the general
contractor. Under the GMP contract, the general contractor is responsible for both the
construction and design of the Wynn Palace project. The general contractor is obligated to
substantially complete the project in the first half of 2016 for a guaranteed maximum price
of HK$20.6 billion. The performance of the general contractor is backed by a full completion
guarantee given by CIMIC Group Limited (formerly Leighton Holdings Limited), the parent
company of the general contractor, as well as a performance bond for 5% of the guaranteed
maximum price. We have assessed certain liquidated damages for the general contractor’s
failure to complete certain milestones in accordance with the time prescribed in the GMP
contract. The general contractor has requested the reversal of liquidated damages, additional
compensation and extensions of time. We view our assessment of liquidated damages as fully
supported by the terms of the GMP contract, and we view the general contractor’s requests as
unfounded and intend to adhere to the terms of the GMP contract as agreed with the general
contractor.
16. LITIGATION
The Group did not have any material litigation outstanding as at 30 June 2016. The litigation
matters set out below are disclosed on a voluntary basis and, as with all litigation, no assurances
can be provided as to the outcome thereof.
Macau litigation related to Okada
WRM and certain individuals who are or were directors of WRM and/or the Company
(collectively, the “Wynn Macau Parties”) have been named as defendants in a lawsuit filed in the
Court of First Instance of Macau (the “Macau Court”) by Mr. Kazuo Okada (“Okada”) and two of
Okada’s controlled companies, Aruze USA, Inc. and Universal Entertainment Corp. (collectively,
the “Okada Parties”). The principal allegations in the lawsuit are that the redemption of the
Okada Parties’ shares in WRL was improper and undervalued, that the previously disclosed
payment by WRM to an unrelated third party in consideration of relinquishment by that party
of certain rights in and to any future development on the land in Cotai where the Company is
constructing Wynn Palace was unlawful and that the Company’s previously disclosed donation
by WRM to the University of Macau Development Foundation was unlawful. The Okada Parties
seek the dissolution of WRM and compensatory damages.
83Interim Report 2016
Interim Financial Information
Notes to Interim Financial Information
For the six months ended 30 June 2016
16. LITIGATION (continued)
Macau litigation related to Okada (continued)
The Company made a voluntary announcement in respect of this lawsuit on 3 July 2015. The
Company has sought advice from counsel in Macau, and based on such advice, the Company
believes that the claims are devoid of merit and are unfounded. The Company intends to
vigorously defend WRM and the other defendants in the lawsuit. The Okada Parties recently
released one of the Wynn Macau Parties from the lawsuit. The Macau Court has served the
complaint on all of the remaining defendants and the Wynn Macau Parties filed their response
in May 2016. The lawsuit is in the early phases of litigation.
Macau litigation related to Dore
WRM has been named a defendant in several lawsuits filed in the Macau Court of First Instance
by individuals who claim to be investors in or persons with credit in accounts maintained by
Dore Entertainment Company Limited (“Dore”), an independent, Macau registered and licensed
company that operates a gaming promoter business at Wynn Macau. In connection with the
alleged theft, embezzlement, fraud and/or other crime(s) perpetrated by a former employee
of Dore (the “Dore Incident”), the plaintiffs of the lawsuits allege that Dore failed to honor
withdrawal of funds requests that allegedly has resulted in certain losses for these individuals.
The principal allegations common to the lawsuits are that WRM, as a gaming concessionaire,
should be held responsible for Dore’s conduct on the basis that WRM is responsible for the
supervision of Dore’s activities at Wynn Macau that resulted in the purported losses.
The Company made a voluntary announcement in connection with the Dore Incident on 14
September 2015. The Company has sought advice from counsel in Macau, and based on such
advice, the Company believes the claims are devoid of merit and are unfounded. The Company
intends to vigorously defend WRM in the lawsuits. The lawsuits are only in the early phases of
litigation.
84 Wynn Macau, Limited
Interim Financial Information
Notes to Interim Financial Information
For the six months ended 30 June 2016
17. RELATED PARTY DISCLOSURES
As at the end of the period, amounts due from/(to) related companies are unsecured, interest-
free and repayable on demand.
The Group had the following material transactions with related companies:
For the Six Months Ended
30 June
Name of Related
Companies
Relation to
the Company
Primary Nature
of Transactions
2016
HK$
2015
HK$
(in thousands)
(unaudited) (unaudited)
Wynn Resorts, Limited Ultimate parent
company
License fees (i)
366,109 394,984
Wynn Resorts, Limited Ultimate parent
company
Corporate support
services (ii) 44,032 41,417
Wynn Resorts, Limited Ultimate parent
company
Share-based
payment
expenses 32,923 42,180
WIML Subsidiary of Wynn
Resorts, Limited
International
marketing
expenses (iii) 11,932 11,880
Worldwide Wynn Subsidiary of Wynn
Resorts, Limited
Staff secondment
payroll charges
(iv) 131,225 119,439
Wynn Design &
Development
Subsidiary of Wynn
Resorts, Limited
Design/
development
payroll (v) 11,683 34,193
Las Vegas Jet, LLC Subsidiary of Wynn
Resorts, Limited
Airplane usage
charges (ii) 9,564 7,187
Wynn Design &
Development
Subsidiary of Wynn
Resorts, Limited
Acquisition of
art works (vi) 263,118 —
85Interim Report 2016
Interim Financial Information
Notes to Interim Financial Information
For the six months ended 30 June 2016
17. RELATED PARTY DISCLOSURES (continued)
Except for the share-based payment expenses incurred with Wynn Resorts, Limited and
the acquisition of art works incurred with Wynn Design & Development, all of the above
transactions are noted as continuing connected transactions.
Notes:
(i) License fees
The license fee payable to Wynn Resorts, Limited equals the greater of (1) 3% of the gross monthly
revenues of the intellectual property, and (2) US$1.5 million (approximately HK$11.6 million) per month.
(ii) Corporate support services
The annual fees for the services provided by Wynn Resorts, Limited are based on an allocation of the actual
proportion of Wynn Resorts, Limited’s annual corporate departments’ costs (including salaries and benefits
for such employees during the period in which such services are rendered) and overhead expense related
to the provision of such services, and in any event, such annual fees shall not exceed 50% of the aggregate
annual corporate departments’ costs and overhead expense incurred by Wynn Resorts, Limited during any
financial year.
Wynn Resorts, Limited allows the Company and its employees to use aircraft assets owned by Wynn
Resorts, Limited and its subsidiaries (other than the Group) at hourly rates set by Las Vegas Jet, LLC, a
subsidiary of Wynn Resorts, Limited.
(iii) International marketing expenses
These administrative, promotional and marketing services are provided through branch offices located in
various cities around the world under the direction and supervision provided by WIML. For the services
provided under this arrangement, WIML charges a service fee equal to the total costs it incurs in rendering
the services plus 5%.
(iv) Staff secondment payroll charges
Worldwide Wynn, a subsidiary of Wynn Resorts, Limited, is responsible for supplying management
personnel to WRM for pre-determined lengths of time through secondment arrangements. Worldwide
Wynn is compensated for these services of the seconded employees during the period of secondment to
WRM with a service fee equal to its aggregate costs plus 5%.
(v) Design/development payroll
Wynn Design & Development provides design and development services to the Group in connection with
the Wynn Palace project. A service fee is charged at the costs incurred by Wynn Design & Development to
the Group for the services provided.
(vi) Acquisition of art works
On 29 June 2016, WRM entered into a purchase agreement with Wynn Design & Development to purchase
“Tulips” by Jeff Koons and “Amphora III” by Viola Frey for US$33,682,500 (approximately HK$262.3
million) and US$103,945 (approximately HK$0.8 million), respectively.
86 Wynn Macau, Limited
Interim Financial Information
Notes to Interim Financial Information
For the six months ended 30 June 2016
17. RELATED PARTY DISCLOSURES (continued)
The above transactions were carried out on terms mutually agreed between the Group and the
related companies. There were no significant charges from the Group to the related companies
during the six months ended 30 June 2016 and 2015. In the opinion of the Directors, the
related party transactions were conducted in the ordinary and usual course of the Group’s
business.
All such outstanding balances between the Group and the related companies are deemed to be
trade in nature.
Home Purchase
In May 2010, Worldwide Wynn entered into an employment agreement with Ms. Linda Chen,
who is also a director of the Company. Under the terms of the employment agreement,
Worldwide Wynn caused WRM to purchase a house in Macau for use by Ms. Chen. As at 30
June 2016, the net carrying amount of the house together with improvements and its land lease
right was HK$53.2 million (31 December 2015: HK$55.3 million).
WMLF Revolving Credit Facility
In connection with the WMLF Revolving Credit Facility, WRL pledged in favor of Bank of
China Limited, Macau Branch on 18 July 2016 its US$ deposits of initially up to US$200 million
(approximately HK$1,560 million equivalent) in a pledged account at Bank of China Limited,
Macau Branch. For further details, refer to note 14 to the interim financial information.
87Interim Report 2016
Interim Financial Information
Notes to Interim Financial Information
For the six months ended 30 June 2016
18. FAIR VALUE AND FAIR VALUE HIERARCHY OF FINANCIAL INSTRUMENTS
Management has assessed that the fair values of cash and cash equivalents, restricted cash and
cash equivalents, trade and other receivables, deposits and other assets, accounts payable,
balances with related companies and the current portion of financial liabilities included in other
payables and accruals, other liabilities and land premium payables approximate to their carrying
amounts largely due to the short term maturities of these instruments.
The fair values of the non-current portion of financial liabilities included in other payables and
accruals and interest-bearing bank loans have been calculated by discounting the expected
future cash flows using rates currently available for instruments with similar terms, credit risks
and remaining maturities. The non-current portion of other liabilities and construction retentions
payable were not discounted as the discounting factors were considered by management to be
insignificant.
As at 30 June 2016, the Group held interest rate swaps at fair values with liabilities measured at
fair value for level 2 of HK$17.4 million (as at 31 December 2015: the Group held two interest
rate swaps at fair values with assets measured at fair value for level 2 of HK$5.6 million and
one interest rate swap at fair value with liability measured at fair value for level 2 of HK$0.8
million), and the Group measured its outstanding debt instruments at fair value for level 2 of
HK$31.6 billion (as at 31 December 2015: HK$30.5 billion). The Group did not hold any assets
or liabilities measured at fair value for levels 1 and 3 during the six months ended 30 June 2016
and 2015. Level 1 fair values are those measured using quoted prices (unadjusted) in active
markets for identical financial instruments, level 2 fair values measured using quoted prices
in active markets for similar financial instruments, or using valuation techniques in which all
significant input is directly or indirectly based on observable market data and level 3 fair values
are those measured using valuation techniques in which any significant input is not based on
observable market data.
88 Wynn Macau, Limited
Definitions
“Board of Directors” or “Board” the Board of Directors of our Company
“Code” the Corporate Governance Code and Corporate Governance
Report set out in Appendix 14 to the Listing Rules as applicable
on 30 June 2016
“Company” or “our Company” Wynn Macau, Limited, a company incorporated on 4 September
2009 as an exempted company with limited liability under the
laws of the Cayman Islands and an indirect subsidiary of Wynn
Resorts, Limited
“Concession Agreement” the Concession Contract for the Operation of Games of Chance
or Other Games in Casinos in the Macau Special Administrative
Region entered into between WRM and the Macau government
on 24 June 2002
“Cotai Land Concession
Agreement”
the land concession contract entered into between WRM, Palo
and the Macau government for approximately 51 acres of land
in the Cotai area of Macau, and for which formal approval from
the Macau government was published in the official gazette of
Macau on 2 May 2012
“Director(s)” the director(s) of our Company
“Encore” or “Encore at Wynn
Macau”
a casino resort located in Macau, connected to and fully
integrated with Wynn Macau, owned and operated directly by
WRM, which opened on 21 April 2010
“Galaxy” Galaxy Casino, S.A., one of the six gaming operators in Macau
and one of the three concessionaires
“Group”, “we”, “us” or “our“ our Company and its subsidiaries, or any of them, and the
businesses carried on by such subsidiaries, except where the
context makes it clear that the reference is only to the Company
itself and not to the Group
“HIBOR” Hong Kong Interbank Offered Rate
“HK$” Hong Kong dollars, the lawful currency of Hong Kong
“Hong Kong” the Hong Kong Special Administrative Region of the PRC
89Interim Report 2016
Definitions
“Hong Kong Stock Exchange” The Stock Exchange of Hong Kong Limited
“IFRS” International Financial Reporting Standards
“Las Vegas Jet, LLC” Las Vegas Jet, LLC, a company formed under the laws of the
State of Nevada, United States and a wholly-owned subsidiary
of Wynn Resorts, Limited
“Latest Practicable Date” 31 August 2016
“LIBOR” London Interbank Offered Rate
“Listing Rules” the Rules Governing the Listing of Securities on The Stock
Exchange of Hong Kong Limited (as amended from time to
time)
“Macau” or “Macau Special
Administrative Region”
the Macau Special Administrative Region of the PRC
“Macau Operations” the fully integrated Wynn Macau and Encore at Wynn Macau
resort
“Melco Crown” Melco Crown Gaming (Macau) Limited, one of the six gaming
operators in Macau and one of the three sub-concessionaires
“MGM Macau” MGM Grand Paradise Limited, one of the six gaming operators
in Macau and one of the three sub-concessionaires
“Model Code” the Model Code for Securities Transactions by Directors of
Listed Issuers set out in Appendix 10 of the Listing Rules
“MOP” or “pataca” Macau pataca, the lawful currency of Macau
“NASDAQ” or “NASDAQ Stock
Market”
National Association by Securities Dealers Automated
Quotations
“Palo Real Estate Company
Limited” or “Palo”
Palo Real Estate Company Limited, a limited liability company
incorporated under the laws of Macau, subject to Ms. Linda
Chen 10% social and voting interest and MOP1.00 economic
interest in WRM, an indirect wholly-owned subsidiary of the
Company
90 Wynn Macau, Limited
Definitions
“PRC”, “China” or “mainland
China”
the People’s Republic of China and, except where the context
requires and only for the purpose of this interim report,
references in this interim report to the PRC or China do not
include Taiwan, Hong Kong or Macau; the term “Chinese” has a
correlatives meaning
“SEC” the U.S. Securities and Exchange Commission
“SFO” the Securities and Futures Ordinance (Chapter 571 of the Laws
of Hong Kong)
“Share(s)” ordinary share(s) with a nominal value of HK$0.001 each in the
share capital of our Company
“Shareholder(s)” holder(s) of Share(s) of the Company from time to time
“SJM” Sociedade de Jogos de Macau S.A., one of the six gaming
operators in Macau and one of the three concessionaires
“Trust” the trust constituted by the Trust Deed to service the employee
ownership scheme
“Trust Deed” the trust deed entered into between the Company and the
Trustee (as may be restated, supplemented and amended from
time to time) on 30 June 2014
“Trustee” the trustee appointed by the Company for the purpose of the
Trust, and as at the Latest Practicable Date, Computershare
Hong Kong Trustees Limited, a company incorporated in Hong
Kong and having its registered office at 46th Floor, Hopewell
Centre, 183 Queen’s Road East, Wanchai, Hong Kong
“US$” United States dollars, the lawful currency of the United States
“U.S. GAAP” the Generally Accepted Accounting Principles of the United
States
“Venetian Macau” Venetian Macau S.A., one of the six gaming operators in Macau
and one of the three sub-concessionaires
91Interim Report 2016
Definitions
“WIML” Wynn International Marketing, Ltd., a company incorporated
under the laws of Isle of Man and a wholly-owned subsidiary of
Wynn Resorts, Limited
“WM Cayman Holdings
Limited I”
WM Cayman Holdings Limited I, a company incorporated on 7
July 2009 as an exempted company with limited liability under
the laws of the Cayman Islands and a wholly-owned subsidiary
of Wynn Group Asia, Inc.
“WML 2021 Notes” the US$600 million (approximately HK$4.7 billion) 5.25% senior
notes due 2021 issued by the Company in October 2013 and
the additional US$750 million (approximately HK$5.9 billion)
5.25% senior notes due 2021 issued by the Company on 20
March 2014 (Debt Stock Code: 5983), which were consolidated
to form one single series of notes
“WMLF” WML Finance I Limited, a limited liability company incorporated
under the laws of the Cayman Islands and a wholly-owned
indirect subsidiary of the Company
“WMLF Revolving Credit Facility” the HK$1,548.3 million (approximately US$198.5 million)
revolving credit facility extended to WMLF on 18 July 2016
“Worldwide Wynn” Worldwide Wynn, LLC, a company formed under the laws of the
State of Nevada, United States and a wholly-owned subsidiary
of Wynn Resorts, Limited
“WRL Group” Wynn Resorts, Limited and its subsidiaries (other than the
Group)
“WRM” Wynn Resorts (Macau) S.A., a company incorporated under the
laws of Macau and a wholly-owned subsidiary of the Company
“WRM Shareholder Dividend Tax
Agreement”
the agreements, entered into during June 2009, August
2011 and August 2016, each for a term of five years between
WRM and the Macau Special Administrative Region, effective
retroactively to 2006, that provide for an annual payment to the
Macau Special Administrative Region of MOP7.2 million in years
2006 through 2010, MOP15.5 million in years 2011 through
2015 and MOP12.8 million in years 2016 through 2020 in lieu
of Complementary Tax otherwise due by WRM shareholders on
dividend distributions to them from gaming profits earned in
those years
92 Wynn Macau, Limited
Definitions
“Wynn Design & Development” Wynn Design & Development, LLC, a company formed under
the laws of the State of Nevada, United States and a wholly-
owned subsidiary of Wynn Resorts, Limited
“Wynn Group Asia, Inc.” Wynn Group Asia, Inc, a company formed under the laws of the
State of Nevada, United States and a wholly-owned subsidiary
of Wynn Resorts, Limited
“Wynn Las Vegas, LLC” Wynn Las Vegas, LLC, a company formed under the laws of the
State of Nevada, United States and a wholly-owned subsidiary
of Wynn Resorts, Limited
“Wynn Macau” a casino hotel resort located in Macau, owned and operated
directly by WRM, which opened on 6 September 2006, and
where appropriate, the term also includes Encore at Wynn
Macau
“Wynn Macau Credit Facilities” together, the HK$17.9 billion (equivalent) fully-funded senior
term loan facilities and the HK$5.8 billion (equivalent) senior
revolving credit facilities extended to WRM on 30 September
2015
“Wynn Palace” an integrated resort situated on approximately 51 acres of land
in the Cotai area of Macau in accordance with the terms of the
Cotai Land Concession Agreement, operated by WRM, which
opened on 22 August 2016
“Wynn Resorts International,
Ltd.”
Wynn Resorts International, Ltd., a company incorporated under
the laws of the Isle of Man and a wholly-owned subsidiary of the
Company
“Wynn Resorts, Limited”,
“Wynn Resorts” or “WRL”
Wynn Resorts, Limited, a company formed under the laws of the
State of Nevada, United States, and our controlling shareholder
(as defined in the Listing Rules)
93Interim Report 2016
Glossary
“Adjusted Average Daily Rate” adjusted average daily rate which is calculated by dividing
total room revenues including the retail value of promotional
allowances (less service charges, if any) by total rooms occupied
including complimentary rooms
“Adjusted REVPAR” adjusted revenue per available room which is calculated by
dividing total room revenues including the retail value of
promotional allowances (less service charges, if any) by total
rooms available
“casino revenue” revenue from casino gaming activities (gross table games win
and gross slot win), calculated net of a portion of commissions
and in accordance with IFRS
“chip(s)” a token; usually in the form of plastic disc(s) or plaque(s) issued
by a casino to customers in exchange for cash or credit, which
must be used (in lieu of cash) to place bets on gaming tables
“daily gross win
per gaming table”
gross gaming win for table games divided by number of tables
divided by the number of days in the applicable period
“gaming promoters” individuals or companies licensed by and registered with the
Macau government to promote games of fortune and chance
or other casino games to patrons, through the arrangement
of certain services, including transportation, accommodation,
dining and entertainment, whose activity is regulated by Macau
Administrative Regulation no. 6/2002
“gross gaming win” the total win generated by all casino gaming activities
combined, calculated before deduction of commissions
“gross slot win” the amount of handle (representing the total amount wagered)
that is retained as winnings. We record this amount and
gross table games win as casino revenue after deduction of
progressive jackpot liabilities and a portion of commissions
94 Wynn Macau, Limited
Glossary
“gross table games win” the amount of drop (in our general casino segment) or turnover
(in our VIP casino segment) that is retained as winnings. We
record this amount and gross slot win as casino revenue after
deduction of a portion of commissions
“In-house VIP Program” an internal marketing program wherein we directly market
our casino resorts to gaming clients, including to high-end
or premium players in the greater Asia region. These players
are invited to qualify for a variety of gaming rebate programs
whereby they earn cash commissions and room, food and
beverage and other complimentary allowances based on their
turnover level. We often extend credit to these players based
upon knowledge of the players, their financial background and
payment history
“promotional allowance” the retail value of rooms, food and beverage and retail and
other services furnished to guests (typically VIP clients) without
charge
“Rolling Chip” physically identifiable chip that is used to track VIP wagering
volume for purposes of calculating commissions and other
allowances payable to gaming promoters and Wynn Macau’s
individual VIP players
“table drop” the amount of cash deposited in a gaming table’s drop box that
serves as a repository for cash, plus cash chips purchased at the
casino cage
“turnover” the sum of all losing Rolling Chip wagers within the VIP program
“VIP client” or “VIP player” client, patron or player who participates in Wynn Macau’s In-
house VIP Program or in the VIP program of any of our gaming
promoters
“VIP table games turnover” turnover resulting from VIP table games only
201
6
Interim Repor
t
中期報告
2016 Interim Report 中期報告
Wynn Macau, Limited
Rua Cidade de Sintra, NAPE, Macau
(853) 2888-9966
www.wynnmacau.com