Shared Services Presentation for Las Vegas Chapter of IIA Rick Arpin October 24, 2013

Contents Background of shared services Shared services at MGM Resorts Finance shared services at MGM Resorts 2

Background of Shared Services What is Shared Services? Leverage resources Lower costs Quality of service Delivery across an entire organization Shared services is a business model that enables resources to be leveraged across an entire organization resulting in lower costs with agreed upon customer-service levels. In many instances, Shared Services is a separate business unit created within a company or agency accountable for delivering a suite of services to both the operating business units and the corporate functions. Source: Peeriosity.com Shared services is a business model that enables resources to be leveraged across an entire organization resulting in lower costs with agreed upon customer-service levels. In many instances, Shared Services is a separate business unit created within a company or agency accountable for delivering a suite of services to both the operating business units and the corporate functions. Source: Peeriosity.com 3

Background of Shared Services (cont.) 1980s1990s2000s2010 and Beyond General Electric Proctor & Gamble HP Back Office: Finance IT HR Widespread adaptation across industries, even medium-sized companies Internet / cloud Document imaging Mergers and acquisitions Outsourcing/offshoring through companies like: Focus on technology and process improvement IBM Accenture Infosys Possible trends: Global business services Work from anywhere Talent management 4

Background of Shared Services (cont.) Current adoption Source: Deloitte 5

Background of Shared Services (cont.) Current trends – benefits of shared services –Ability to scale up or down. –Enhanced controls –Allow business units to focus more on the business 6

Background of Shared Services (cont.) Future outlook – move to “Global Business Services” –Manage multiple shared services functions (Finance, IT, HR, etc.) under one structure –Manage all global aspects of each function across regions Source: Accenture 7

Shared Services at MGM Resorts Finance – 2003 first adoption with Accounts Payable IT – Help desk, project management, infrastructure HR –Until now…benefits, compensation, University –Now…Employee services, talent management Sourcing/procurement Legal 8

Finance Shared Services at MGM 9

Finance Shared Services at MGM (cont.) Accounts Payable 2003 Payroll 2006 Non-Gaming Acctg 2008 General Acctg 2009 Accounts Receivable 2011 Knowledge Centers of Expertise IT Services & Architecture Enterprise Process Capabilities Transaction Process Factory MGM Resorts Finance Shared Service Center Casino Acctg

Finance Shared Services at MGM (cont.) Las Vegas Strip Properties Bellagio MGM Grand Mandalay Bay Mirage Luxor/Excalibur New York-New York Monte Carlo Circus Aria Regional Properties MGM Grand Detroit Beau Rivage Gold Strike Tunica Corporate Entities and Other FSSC AP AR GA NGAA PY AP PY AP PY GA NGAA CFO Dir. of Finance Casino Acct. Fin. Planning Chief Acct Off. Corp. Acct. Corp. Fin. Reptg. Corp. Tax Internal Audit Administration Client Services Finance Projects Finance Systems Process Management Finance Analytics

Benefits – Savings and ROI Finance Shared Services at MGM (cont.) 12

Finance Shared Services at MGM (cont.) Benefits - Value Added Services –Employee Banking – Process reengineering –AV Revenue Metrics –Workforce Scheduler –Reservation Automation –Analytics 13

Finance Shared Services at MGM (cont.) Risks (from management’s perspective) –Talent management and retention –Distance from source of transaction –Leveraged model (with controls, costs, etc.) –Reliance on systems 14