Las Vegas Sands Corp. · NYSE:LVS
Las Vegas Sands — Q3 2013 Earnings Presentation
49 slides from Las Vegas Sands's earnings presentation, Oct 17, 2013
Slide 1: Las Vegas Sands Corp. 3Q13 Earnings Call Presentation
Las Vegas Sands Corp. 3Q13 Earnings Call Presentation October 17, 2013 Venetian Macao Sands Cotai Central, Macao Marina Bay Sands, Singapore Sands Macao Four Seasons Macao Sands Bethlehem The Venetian Las Vegas The Palazzo Las Vegas
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward‐looking statements that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Forward‐ looking statements involve a number of risks, uncertainties or other factors beyond the company’s co
Slide 3: The Investment Case for Las Vegas Sands
The Investment Case for Las Vegas Sands The global leader in Integrated Resort development and operation, with growing free cash flow and earnings and a strong balance sheet Best positioned operator in Asia, with the pre‐eminent destination Integrated Resort properties in the world’s fastest‐gro
Slide 4: Third Quarter 2013 Highlights
Third Quarter 2013 Highlights Record Quarterly Results and Increased Return of Capital to Shareholders Adjusted diluted EPS increased 78.3% to $0.82 (hold‐normalized adjusted diluted EPS increased 47.2% to $0.78)1 Consolidated adjusted property EBITDA increased 45.5% to $1.28 billion (hold‐norma
Slide 5: Macao – Outstanding Growth in all Segments; Singapore – Strong Growth in VIP and Hotel
Macao – Outstanding Growth in all Segments Singapore – Strong Growth in VIP and Hotel; Mass Stable Macao – Record adjusted property EBITDA driven by strong growth in all segments — Mass table win increased 61.2% to record $1.06 billion (growing 59.8% faster than the Macao market) — Slot and ETG wi
Slide 6: Increasing Return of Capital to Shareholders
Increasing Return of Capital to Shareholders Over $5 Billion of Capital Returned to Shareholders Over Last 7 Quarters LVS Recurring Dividends per Share1 The LVS Board of Directors increased recurring $2.50 dividend by 42.9% to $2.00 per share for the 2014 $2.00 calendar year ($0.50 per share payab
Slide 7: LVS Generates Greater Dividend Yield than the S&P500 Index
LVS Generates Greater Dividend Yield than the S&P500 Index 2014 Forward Dividend Yield of LVS and S&P5001 Sensitivity of LVS Dividend Yield 5.0% 5.0% 5.0% 4.5% 4.5% 4.0% 4.0% 4.0% 3.5% 3.5% 3.3% Dividend 2.9% Yield as of 3.0% 2.9% 3.0% 10/16/13² +70 bps 2.5% 2.5% 2.2% 2.5% 2.2% 2.0% 2.0% 2.0% 1.5% 1
Slide 8: Strong Cash Flow, Balance Sheet and Liquidity
Strong Cash Flow, Balance Sheet and Liquidity Ample Flexibility for Future Growth Opportunities and Return of Capital Trailing Twelve Months EBITDA – $4.55 billion Trailing Twelve Months LVS Dividends Paid – $3.75 billion Trailing Twelve Months SCL Dividends Paid – $411.4 million1 Trailing T
Slide 9: Strong Third Quarter 2013 Financial Results
Strong Third Quarter 2013 Financial Results Growth in Revenue, Adjusted Property EBITDA, Margin and EPS $ in millions, except per share information 3Q12 3Q13 $ Change % Change Net Revenue $ 2,709.5 $ 3,568.5 $ 859.0 31.7% Adjusted Property EBITDA $ 876.9 $ 1,275.8 $ 398.9 45.5% Adj. Property EBITDA
Slide 10: Record Macao Operating Performance
Record Macao Operating Performance Macao Property Operations Adjusted Property EBITDA and Adjusted Property EBITDA Margin Actual Hold‐Normalized ($MM) $900 +60.8% +60.8% 60% $800 $784.3 $784.3 50% $700 $600 40% $487.9 $487.9 $500 34.0% 34.0% 30% $400 30.3% 30.3% $300 20% $200 10% $100 $0 0% 3Q12 3Q1
Slide 11: Macao Gaming Performance
Macao Gaming Performance Strong Growth and Increased Efficiency Across Macao Property Portfolio Mass tables — Mass table win up 61.2% to record $1.06 billion — Mass table efficiency up 26.0% to $10,961 win per table per day (despite an increase of 230 mass tables compared to the same quarter last
Slide 12: Strong Growth in Macao Mass Table Business
Strong Growth in Macao Mass Table Business Growth and Productivity Gains in Macao’s Most Important Segment Mass Table Revenue Increased 61.2% Mass Table Win per Table per Day2 ($MM) $12,000 $1,200 50% $10,961 $1,061.2 45% $10,204 $10,190 $10,000 $9,716 $1,000 $929.6 40% $8,699 $866.7 $769.6 35% $8,0
Slide 13: Extending Our Leadership in Macao's Mass Market
Extending Our Leadership in Macao’s Mass Market Meaningful Opportunity to Grow Mass Table Business Illustrative Profitability of LVS’s Macao Market Mass Table Offering ($MM)1 Mass Table Win per Unit per Day $9,000 $10,000 $10,961 $12,000 $13,000 $14,000 $15,000 900 $1,330 $1,478 $1,620 $1,774 $1,922
Slide 14: Our Macao Assets Have Delivered Consistent and Reliable Mass Market Growth
Our Macao Assets Have Delivered Consistent and Reliable Mass Market Growth Macao Market Mass Table and Slot Revenues ($MM) $1,400 $1,188 $1,200 $1,052 $995 $1,000 $911 $800 $779 $600 $688 $632 $546 $561 $490 $506 $400 $462 $478 $421 $428 $374 $391 $200 $0 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11
Slide 15: Robust Mass Growth Across our Property Portfolio
Robust Mass Growth Across our Property Portfolio Macao Property Portfolio Growing Faster than the Market Mass Table, Slot and ETG Win Per Day Cotai Strip Properties Peninsula Total ($MM) $15.0 $13.3 $12.0 $11.2 $9.0 $8.5 $6.6 $5.9 $6.0 $4.5 $4.3 $3.0 $1.9 $2.1 $1.6 $1.0 $0.5 $0.0 Venetian Macao Sand
Slide 16: Sands Cotai Central is Steadily Ramping
Sands Cotai Central is Steadily Ramping Mass Win per Table per Day Now Exceeds $12,800 per Day Mass Table, Slot and ETG Win per Day Mass Table Win per Table per Day ($MM) $15,000 $12,813 $5.00 $4.29 $12,000 $4.00 $3.51 $9,616 $3.01 $9,000 $7,933 $3.00 $2.58 $6,613 $5,887 $6,000 $2.00 $1.56 $3,000 $1
Slide 17: VIP Business Exhibiting Strong Growth
VIP Business Exhibiting Strong Growth Improving Market Share and Table Productivity Rolling Volume Increased 26.0% Consolidated Rolling Volume per Table per Day ($BN) ($MM) $50 25% $1.20 $45.4 $45 $1.06 $41.9 $41.2 $39.3 $1.00 $40 20% $0.92 $36.0 $0.88 $0.88 $35 18.2% $0.78 17.2% 17.4% 17.4% $0.80 $
Slide 18: Expanding Our Critical Mass on the Cotai Strip
Expanding Our Critical Mass on the Cotai Strip The Parisian Macao The Parisian Macao will be a $2.7 billion themed, aspirational destination Integrated Resort Construction is progressing on schedule Targeted completion date: Late 2015 Hotel rooms and suites: 3,000+ Gaming capacity: ~450 ta
Slide 19: Singapore – VIP Strength, Steady Mass, Continued Growth in Hotel and MICE
Singapore – VIP Strength, Steady Mass, Continued Growth in Hotel and MICE Segments Hold‐normalized adjusted property EBITDA increased 0.4% to reach $373.6 million (adjusted property EBITDA increased 43.3% to $373.6 million) Gaming — VIP volumes increased 16.9% to $13.79 billion in rolling volume
Slide 20: Disciplined Execution of Our Global Growth Strategy
Disciplined Execution of Our Global Growth Strategy LVS is the global leader in Integrated Resort development and operation and is uniquely positioned to bring its unmatched track record and powerful convention‐based business model to the most promising Integrated Resort development opportunities
Slide 21: Sands
Sands EAS. V EGASSANDS CORP.
Slide 22: Appendix
Appendix Saneas LAS VEGAS SANDS CORP.
Slide 23: Historical Hold-Normalized Adj. Property EBITDA
Historical Hold‐Normalized Adj. Property EBITDA1 $ in millions 3Q12 4Q12 1Q13 2Q13 3Q13 Macao Property Operations Reported $ 487.9 $ 622.2 $ 630.2 $ 657.2 $ 784.3 Hold‐Normalized $ 487.9 $ 569.8 $ 630.2 $ 657.2 $ 784.3 Marina Bay Sands Reported $ 260.8 $ 302.5 $ 396.8 $ 355.3 $ 373.6 Hold‐Normalized
Slide 24: Capital Expenditures Expectations
Capital Expenditures Expectations Future Investments Include SCC, The Parisian Macao and Maintenance ($MM) LVS Capex Expectations $2,000 $1,790 $1,500 $1,500 $1,449 $107 $850 $40 $1,115 $110 $950 $1,000 $1,000 $830 $275 $225 $450 $250 $215 $500 $500 $472 $480 $500 $500 $500 $500 $0 2012A 2013E 2014E
Slide 25: Debt Maturity Profile
Debt Maturity Profile Debt Maturity by Year at September 30, 2013 ($MM) $5,000 $4,500 $4,395 $4,000 $1,384 $3,500 $3,000 $2,500 $917 $2,000 $1,736 $1,573 $187 $1,500 $1,232 $623 $1,000 $1,219 $2,088 $808 $500 $1,173 $920 $807 $8 $147 $11 $0 $200 2013 2014 2015 2016 2017 2018 2019 SCL MBS USRG LVSC %
Slide 26: Profitable Macao Slot Business Continues to Grow
Profitable Macao Slot Business Continues to Grow Macao Slot Revenue Increased 29.9% Macao Slot and ETG Win per Unit per Day ($MM) $400 $200 45% $180 40% $327 $162.1 $165.9 $300 $299 $160 $300 $283 $285 $148.9 $149.4 35% $140 $127.7 32.7% 32.6% 30% $120 29.6% 30.1% 28.5% 25% $200 $100 20% $80 15% $10
Slide 27: Sands Cotai Central Phase IIB is Now Completed
Sands Cotai Central Phase IIB is Now Completed 2,100 Additional Sheraton Rooms Opened January 28, 2013 Sands Cotai Central St. Regis Phase I Phase IIA Phase IIB Apart‐Hotel Air Conditioned Pedestrian Walkway Currently Future Operational Phase No Other Property in the History of Macao has Delivered $
Slide 28: LVS Outperforming Macao Market in EBITDA Generation and Growth
LVS Outperforming Macao Market in EBITDA Generation and Growth Macao Market EBITDA Growth for the TTM Macao Market EBITDA1 12 Months Ended June 30, 2013 ($MM) ($MM) $619 $7,924 $8,000 $3,000 $2,694 $682 $2,397 $7,000 $2,500 $6,623 48% of $6,000 Incremental $2,000 52% of EBITDA Incremental $1,404 $5,
Slide 29: Marina Bay Sands Operations
Marina Bay Sands Operations Third Quarter 2013 Details Adjusted Property EBITDA Adjusted property EBITDA of $373.6 million, an and Adjusted Property EBITDA Margin increase of 43.3% Actual Hold‐Normalized ($MM) Hold‐normalized adjusted property EBITDA of $400 $373.6 $372.1 $373.6 60% $373.6 milli
Slide 30: Singapore – Credit Collections Remain Healthy
Singapore – Credit Collections Remain Healthy Reserve Balance Has Now Increased to 32.0% of Gross A/R Casino Credit Collections Remain Healthy ($MM) $450 $418.1 $407.8 $377.5 $367.8 $375 $345.2 $342.4 $314.3 $311.4 $317.0 $300 $249.9 $271.1 $225 $203.4 $145.5 $150 $75 $40.4 $0 2Q10 3Q10 4Q10 1Q11 2Q
Slide 31: Asian Retail Mall Revenue Increasing Steadily
Asian Retail Mall Revenue Increasing Steadily Trailing Twelve Months Retail Mall Revenue ($MM) $500 $450 $450 $422 $409 $395 $400 $373 $155 $350 $157 $159 $156 $300 $152 $38 $250 $29 $16 $24 $7 $97 $200 $87 $79 $83 $83 $150 $100 $135 $140 $143 $149 $160 $50 $0 3Q12 4Q12 1Q13 2Q13 3Q13 Venetian Macao
Slide 32: Asian Property Portfolio Dominates EBITDA Generation
Asian Property Portfolio Dominates EBITDA Generation Composition of 3Q13 Adjusted Property EBITDA Actual Results Hold‐Normalized Results Bethlehem 2% Las Vegas 4% Bethlehem 2% Las Vegas 7% Singapore 29% Singapore 30% Macao Macao 62% 64% $1,275.8 Million $1,236.7 Million 32
Slide 33: Las Vegas Operations
Las Vegas Operations Third Quarter 2013 Details Adjusted property EBITDA was $87.1 million, a Adjusted Property EBITDA decrease of 11.3% and Adjusted Property EBITDA Margin Actual Hold‐Normalized — On a hold‐normalized basis, adjusted property ($MM) EBITDA was $48.5 million, a decrease of 19.3% $1
Slide 34: Sands Bethlehem Operations
Sands Bethlehem Operations Third Quarter 2013 Details Adjusted property EBITDA decreased 8.0% to $29.6 Adjusted Property EBITDA million and Adjusted Property EBITDA Margin Actual Hold‐Normalized — Hold‐normalized adjusted property EBITDA ($MM) decreased 2.6% to $29.0 million $35 $32.1 40% $29.6 $2
Slide 35: European Development Update
European Development Update In December 2012, the government of the region of Madrid passed legislation that outlined the regulatory framework to enable Integrated Resort development in the Madrid region The next steps in the development process include: Local, Regional and National Governments
Slide 36: Macao Market Background and Infrastructure Slides
Macao Market Background and Infrastructure Slides
Slide 37: VIP Gaming is 67% of Total Macao GGR…
VIP Gaming is 67% of Total Macao GGR… …but Mass Tables and Slots Generate ~67% of Gaming Operating Profit TTM September 2013 Macao Composition of Macao Market Gross Gaming Market Gross Gaming Revenue Revenue and Est. Gaming Operating Profit2 ($MM) 3Q13 YoY Growth 100% $45,000 $42,782 +20% $40,000 80
Slide 38: Strong and Consistent Growth in Macao's High Margin Mass Market
Strong and Consistent Growth in Macao’s High Margin Mass Market Macao Mass Table and Slot Gross Gaming Revenue ($MM) $16,000 60% $14,226 $14,000 50% $12,000 $11,674 39% 40% $10,000 33% $8,949 30% 30% 29% 36% $8,000 30% $6,587 $6,000 $4,952 16% $4,358 20% 14% $4,000 $3,355 $2,084 $2,409 10% $2,000 $0
Slide 39: Vital Drivers for Continued Mass Market Growth
Vital Drivers for Continued Mass Market Growth Growth Driver Addressing the Growth Driver High Speed Rail development throughout China (ongoing) Enhanced Transportation Completion of inter‐city rail to Macao (1Q2013) Infrastructure Expansion of China‐Macao border gate (2Q2013) Macao‐Hong Kon
Slide 40: China's High-Speed Rail
China’s High‐Speed Rail Connecting More of Mainland China to Macao Guangzhou – Zhuhai Intercity Rail Rail line connecting Guangzhou to Zhuhai, where the Gongbei border gate to Macao is located Guangzhou is the largest city in Guangdong province and is a key economic and transportation hub Redu
Slide 41: Growth in Visitation from Deeper Within China is Happening…
Growth in Visitation from Deeper Within China is Happening… Year‐Over‐Year Visitation Growth Mainland China Visitation to Macao Twelve Months Ended August 30, Population Penetration Province 2012 2013 % Change (MM) Rate (LTM) Guangdong 8,197,401 8,064,422 ‐2% 104 7.7% Fujian 899,927 786,691 ‐13% 37
Slide 42: Meaningful Infrastructure Improvements Throughout the Pearl River Delta Region
Meaningful Infrastructure Improvements Throughout the Pearl River Delta Region Guangzhou Wuhan – Guangzhou High‐Speed Rail Population: 16M • 3.5 hour train ride GDP Per Capita: US$12,000 • 75‐80 trains in each direction per day Guangzhou – Shenzhen – Hong Kong Rail • 2 hour train ride from Guangzhou
Slide 43: Chinese Day-Trip and Overnight Visitation To Macao Continues to Grow
Chinese Day‐Trip and Overnight Visitation To Macao Continues to Grow Mainland China Day‐Trip Visitors to Macao Mainland China Overnight Visitors to Macao Growth ‐9% +19% +28% 0% +4%1 Growth ‐1% +22% +16% +10% 0 1 +11% (MM) (MM) 10.0 9.0 8.7 9.4 8.8 8.8 8.1 9.0 8.0 7.3 8.0 7.0 6.9 6.3 7.0 6.0 5.8 5.2
Slide 44: Visitation to Macao Can Meaningfully Grow
Visitation to Macao Can Meaningfully Grow 39.2 Million Residents of Mainland China Visited Hong Kong in TTM Aug 2013 Mainland China Visitation to Macao and Hong Kong Macao ‐5% +20% +22% +5% +8% Hong Kong +6% +26% +24% +24% +21% (MM) 45.0 39.2 40.0 Hong Kong 34.9 35.0 Received 21M More 30.0 Visitors
Slide 45: Tremendous Opportunity for Increased Overnight Visitation to Macao
Tremendous Opportunity for Increased Overnight Visitation to Macao in the Future Composition of TTM August 2013 Visitation from Mainland China Avg. Length of Stay for Mainland Chinese Total TTM August 2013 Daytrip Visitors Overnight Visitors Overnight Visitors in 2012 Mainland Chinese Visitor Nights
Slide 46: Hengqin Island to Support Macao's Long Term Growth and Diversification
Hengqin Island to Support Macao’s Long Term Growth and Diversification Map of Hengqin Island New Area Important Facts Island adjacent to Macao (3X the size of Macao) that has been welcomed by President Xi Jinping as a strategic zone for cooperation among Guangdong Province, Hong Kong and Macao M
Slide 47: Market Leading Hotel Capacity at LVS
Market Leading Hotel Capacity at LVS Las Vegas Sands Operates 38% of Macao’s Current 4/5‐Star Hotel Inventory Macao Market Gaming Operator Hotel Rooms1 10,000 Hotel % of Gaming % of Total 9,277 Gaming Operator Rooms Operators Market 9,000 Sands Macao, 289 Four Seasons Macao, 360 Sands Las China Vega
Slide 48: Market Leading Hotel Capacity at LVS
Market Leading Hotel Capacity at LVS Projected Macao Market 4/5 Star Hotel Rooms at December 31, 2017 Macao Market Gaming Operator Hotel Rooms at December 31, 20171 14,000 Hotel % of Gaming % of Total 12,716 St. Regis Gaming Operator Rooms Operators Market 12,000 Macao, 439 Sands China ` 12,716 45%
Slide 49: Sands
Sands EAS. V EGASSANDS CORP.