Las Vegas Sands Corp. · NYSE:LVS

Las Vegas Sands — Q2 2017 Earnings Presentation

59 slides from Las Vegas Sands's earnings presentation, Jul 26, 2017

  1. Slide 1: 2Q17 Earnings Call Presentation

    The Venetian Macao Sands Cotai Central, Macao Marina Bay Sands, Singapore The Parisian Macao 2Q17 Earnings Call Presentation July 26, 2017 Sands Macao Four Seasons Macao Sands Bethlehem The Venetian Las Vegas The Palazzo, Las Vegas

  2. 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 con

  3. Slide 3: The Investment Case for Las Vegas Sands

    The Investment Case for Las Vegas Sands  The global leader in MICE-based Integrated Resort development and operation, delivering strong and diversified cash flow and earnings  Best positioned operator to deliver long-term growth in Asia, with the pre-eminent destination MICE-based Integrated Resor

  4. Slide 4: Second Quarter 2017 Financial Highlights

    Second Quarter 2017 Financial Highlights Quarter Ended June 30, 2017 vs Quarter Ended June 30, 2016  Net revenue increased 18.6% to $3.14 billion  Net income increased 61.9% to $638 million  Adjusted property EBITDA increased 26.5% to $1.21 billion  Hold-normalized adjusted property EBITDA incre

  5. Slide 5: Second Quarter 2017 Financial Results (Y/Y)

    Second Quarter 2017 Financial Results (Y/Y) Quarter Ended June 30, 2017 vs Quarter Ended June 30, 2016 $ in millions, except per share information 2Q16 2Q17 $ Change % Change Net Revenue $ 2,649 $ 3,141 $ 492 18.6% Net Income $ 394 $ 638 $ 244 61.9% Adjusted Property EBITDA $ 955 $ 1,208 $ 253 26.5%

  6. Slide 6: Geographically Diverse Sources of EBITDA

    Geographically Diverse Sources of EBITDA EBITDA Contribution by Geography in 2Q 2017 ($ in millions) Consolidated Adjusted Property EBITDA1 Consolidated Hold-Normalized Adj. Prop. EBITDA1,2 $1,208M $1,106M United United States States 9% 11% Macao Macao Singapore 50% Singapore 54% 41% 35% 1. The Maca

  7. Slide 7: LVS Increasing Return of Capital to Shareholders

    LVS Increasing Return of Capital to Shareholders Over $17.4 Billion of Capital Returned to Shareholders Since 2012 LVS Recurring Dividends per Share1 Las Vegas Sands remains committed to returning capital to shareholders via its recurring dividend program and share repurchases: $2.88 $2.92 $2.60  D

  8. Slide 8: SCL Return of Capital to Shareholders

    SCL Return of Capital to Shareholders US$11.4 Billion of Capital Returned to Shareholders Since 2012 SCL Recurring Dividends per Share (HK$)1  Sands China remains committed to returning capital to shareholders via its recurring bi-annual dividend program $1.99 $1.99 $1.99 $1.73 $1.33  Sands China

  9. Slide 9: Strong Cash Flow, Balance Sheet and Liquidity

    Strong Cash Flow, Balance Sheet and Liquidity Flexibility for Future Growth Opportunities and Return of Capital As of June 30, 2017: Trailing twelve months ended June 30, 2017:  Cash Balance – $2.32 billion  Cash Flow from Operations – $4.37 billion  Debt – $10.25 billion1  Adjusted Property EBI

  10. Slide 10: Macao Operating Performance (Y/Y)

    Macao Operating Performance (Y/Y) Quarter Ended June 30, 2017 vs Quarter Ended June 30, 2016 Macao Operations Adjusted Property EBITDA and Adjusted Property EBITDA Margin ($ in millions) Adjusted Property EBITDA Hold-Normalized Adj. Prop. EBITDA1 +23.0% +17.1% $700 60% $600 $597 $600 50% $510 $500 $

  11. Slide 11: Diversified and Stable Sources of Departmental Profit

    Diversified and Stable Sources of Departmental Profit Macao Departmental Profit Contribution1 TTM 2Q16 TTM 2Q17 Other 4% Other VIP VIP 4% 12% 9% Mall 14% Mall Mass Tables 13% Mass Tables 49% 49% Hotel 15% Hotel 14% Slots Slots 9% 8% Mass Tables / Slots and Non-Gaming Generated 88% of Macao’s Departm

  12. Slide 12: Macao: Increased Overnight Visitation, Length of Stay and Win-per-Visit

    Macao: Increased Overnight Visitation, Length of Stay and Win-per-Visit are Contributing to Growth in Mass Gaming Win Mainland Chinese Avg. Length of Stay for Mass (Tables & Slots) Overnight Visits Mainland Chinese Visitors Win-per-Visit1 (in millions) (Days) ($) 3.0 600 2.76 1.4 $540 1.3 1.2 $480 2

  13. Slide 13: Macao Mass Market Gaming Recovery Continues

    Macao Mass Market Gaming Recovery Continues Macao Market Mass Gaming Revenue ($ in millions) 1 Peak TTM Year Ended December 31, Ended 3Q14A 2015A 2016A Change Mass Win (Tables & Slots) $17,797 Mass Win (Tables & Slots) $14,171 $14,922 5.3% 1 Quarter Ended March 31, 2016A 2017A Change Mass Win (Table

  14. Slide 14: Macao: Continued Double-Digit Growth in High Margin Mass Gaming Segment

    Macao: Continued Double-Digit Growth in Macao’s High Margin Mass Gaming Segment Macao Market Mass Gaming Revenue (Tables & Slots) & Mass Win-per-Visit1 ($ in millions) $5,000 $1,000 $4,589 $4,449 $4,419 $4,340 $4,147 $4,150 $3,919 $3,989 $4,000 $3,872 $800 $3,682 $3,816 $3,609 $3,497 $3,584 $3,508 $

  15. Slide 15: Sands China Mass Market Table Update

    Sands China Mass Market Table Update Mass Market Table Win Grew 22.6% in 2Q17 vs. 2Q16 SCL Base Mass Table Win by Quarter SCL Premium Mass Table Win by Quarter Sands China Departmental Profit Margin: 40% - 50% Sands China Departmental Profit Margin: 25% - 40% ($ in millions) Avg. Win per Table per D

  16. Slide 16: Sands China VIP Table Update

    Sands China VIP Table Update VIP Table Win Grew 34.7% in 2Q17 vs. 2Q16 SCL Rolling Volume by Quarter SCL VIP Win by Quarter ($ in billions) ($ in millions, except per table amounts) Avg. Win per Table per Day $20 $600 $25,850 $18 $15,576 $497 $500 $16 $14.84 $13.79 $14 $400 $369 $12 $10 $300 $8 $200

  17. Slide 17: The Parisian Macao

    The Parisian Macao 3.6 Billion Online Impressions 17

  18. Slide 18: The Parisian Macao: A New Must See Attraction on the Cotai Strip

    The Parisian Macao A New “Must See” Attraction on the Cotai Strip  The Parisian Macao is a $2.9 billion themed, iconic destination The Parisian Macao Integrated Resort on the Cotai Strip in Macao  The Parisian Macao has meaningfully expanded our critical mass on the Cotai Strip  The Parisian Maca

  19. Slide 19: The Parisian Macao: Ramp of our Latest Cotai Strip Property Continues

    The Parisian Macao Ramp of our Latest Cotai Strip Property Continues  Strong visitation has contributed to increased traffic across our entire Cotai Strip property portfolio  Continued to ramp and generated $106 million of adjusted property EBITDA in the second quarter of 2017  Strong results in

  20. Slide 20: Macao Market Annual Adjusted Property EBITDA Market Share by Operator

    Macao Market Annual Adjusted Property EBITDA Market Share by Operator Historical Adjusted Property EBITDA Market Share1 Sands China2 All Others Macao Leader in Market Share of EBITDA 72% 65% 3 3 Sands China Galaxy MPEL SJM Wynn MGM Sands China Expanded Market Share of Macao EBITDA by 700 bps Since 2

  21. Slide 21: Marina Bay Sands Update

    Marina Bay Sands Update Adjusted Property EBITDA Increased 37.8% to $492 million  Adjusted property EBITDA increased 37.8% to $492 Adjusted Property EBITDA million. Rolling win % was 4.42% in 2Q17 compared and Adjusted Property EBITDA Margin to 3.50% in the prior-year quarter. ($ in millions) Actua

  22. Slide 22: Marina Bay Sands: Diversified and Stable Sources of Departmental Profit

    Marina Bay Sands: Diversified and Stable Sources of Departmental Profit For Las Vegas Sands Marina Bay Sands Hold-Normalized Departmental Profit Contribution TTM 2Q161 TTM 2Q171 Other 4% VIP Other VIP 10% 4% 13% Mall 8% Mass Tables Mass Tables Mall 37% 40% 8% Hotel 17% Hotel 18% Slots Slots 20% 21%

  23. Slide 23: Marina Bay Sands: The Reference Model for All Other Integrated Resort Projects

    Marina Bay Sands: The Reference Model for All Other Integrated Resort Projects  Ideal reference site for jurisdictions considering MICE-based Integrated Resort development  Offers clear demonstration of a development’s exceptional economic power and direct contributions to tourism, employment and

  24. Slide 24: Leaders in World Class Entertainment: Marina Bay Sands

    Leaders in World Class Entertainment Marina Bay Sands - Global Artists and Events Hosted: Western: Asian (Korean): Theatrical:  Rolling Stones  Girls Generation  The Lion King  Michael Buble  G-Dragon  Wicked  Air Supply  2NE1  Sound of Music  Elton John  PSY  Singing in the Rain  Elvis

  25. Slide 25: Leaders in World Class Entertainment: Sands China

    Leaders in World Class Entertainment Sands China - Global Artists and Events Hosted: Western: Asian (Korean): Sports:  Rolling Stones  Bigbang  Basketball: NBA (Cleveland  Bon Jovi  Girls Generation Cavaliers vs. Orlando Magic); US  Beyonce  G-Dragon Olympic Basketball team exhibition  Celin

  26. Slide 26: Asia Retail Mall Portfolio Continues to Generate Strong Revenue and Operating Profit

    Asia Retail Mall Portfolio Continues to Generate Strong Revenue and Operating Profit Trailing Twelve Months Retail Mall Revenue ($ in millions) TTM 2Q17 Sales +9.6% per Sq. Foot² $700 $628 $610 $573 $580 $588 $600 $165 MBS: $165 $500 $163 $166 $1,482 $163 $40 $57 $400 $5 $23 SCC: $65 $65 $63 $66 $64

  27. Slide 27: Sands China: Retail Mall Revenue Composition

    Sands China: Retail Mall Revenue Composition Macao Quarterly Retail Revenue Composition ($ in millions) $160 $140 $123 $118 $118 $120 $11 $1 $104 $4 $98 $100 $4 $2 $80 $60 $117 $114 $112 $96 $100 $40 $20 $- 2Q16 3Q16 4Q16 1Q17 2Q17 Base Rent and Other Fees Turnover Rent Strong Base Rent, Which Grew

  28. Slide 28: Las Vegas Operations Update

    Las Vegas Operations Update Adjusted Property EBITDA Grew 9.7%  Adjusted property EBITDA increased 9.7% to $79 Adjusted Property EBITDA million and Adjusted Property EBITDA Margin ($ in millions) — On a hold-normalized basis, adjusted property Actual Hold-Normalized EBITDA decreased 8.5% to $86 mil

  29. Slide 29: Sands Bethlehem Update

    Sands Bethlehem Update Leading Tri-State Region Property  Adjusted property EBITDA decreased 2.6% to $37 Adjusted Property EBITDA million1 and Adjusted Property EBITDA Margin ($ in millions)  Table games drop decreased 4.5% to $276 million due to slower Non-Baccarat play $50 50% 1 $40 $38 $37 40%

  30. Slide 30: Disciplined Execution of Our Global Growth Strategy

    Disciplined Execution of Our Global Growth Strategy  Uniquely positioned to bring our unmatched track record and powerful convention-based business model to the world’s most promising Integrated Resort development opportunities  Development opportunity parameters: — Targeting minimum of 20% return

  31. Slide 31: Appendix

    Appendix Sanes LAS VEGAS SANDS CORP.

  32. Slide 32: Sands China Hold Normalization

    Sands China Hold Normalization  Beginning in Q1 2017, normalized win has been adjusted to 3.15% when outside the range of 3.00% - 3.30%  All periods presented throughout this document reflect this normalization range 3-Year 2-Year 1-Year ($ in millions) Trailing1 Trailing2 Trailing3 Actual Rolling

  33. Slide 33: Historical Hold-Normalized Adj. Property EBITDA

    Historical Hold-Normalized Adj. Property EBITDA1 ($ in millions) 2Q16 3Q16 4Q16 1Q17 2Q17 Macao Operations2 Reported $ 488 $ 628 $ 610 $ 624 $ 600 Hold-Normalized $ 510 $ 578 $ 583 $ 592 $ 597 Marina Bay Sands Reported $ 357 $ 391 $ 366 $ 365 $ 492 Hold-Normalized $ 323 $ 368 $ 366 $ 388 $ 386 Las V

  34. Slide 34: Debt Maturity Profile

    Debt Maturity Profile Debt Maturity by Year ($ in millions) $3,000 $2,874 $2,500 $2,278 $2,030 $2,000 1,801 $1,458 $1,500 $1,245 2,256 $1,000 1,101 1,436 $500 1,051 $289 $60 217 $22 $0 112 1 2017 2018 2019 2020 2021 2022 2023 2024 SCL MBS US LVSC % of Total 1% 3% 12% 28% 14% 22% 0% 20% Long Term and

  35. Slide 35: Capital Expenditures Expectations

    Capital Expenditures Expectations Future Planned Investments Composed of Income Producing Projects and Maintenance ($ in millions) LVS Capex Expectations $3,000 $2,500 $2,000 $1,529 $8 $1,449 $1,398 $1,500 $107 $40 $285 $67 $1,179 $19 $49 $1,045 $20 $898 $190 $1,000 $830 $925 $275 $725 $50 $767 $210

  36. Slide 36: Market-Leading ~$13 Billion of Investment in Macao's Future

    Market-Leading ~$13 Billion of Investment in Macao’s Future as a Business & Leisure Tourism Destination Portfolio of Nearly Family-friendly Entertainment World Class Concerts, Sporting Events and Other 13,000 Suites and Hotel Rooms Entertainment Offerings Targeting Chinese Consumers Over Two Million

  37. Slide 37: Macao Mass Visitation: Business & Leisure Tourism Expenditure Drivers

    Macao Mass Visitation Business & Leisure Tourism Expenditure Drivers Future Growth Drivers As a result, Macao’s Mass visitors will:  More efficient and affordable  Come From Farther transportation infrastructure Away  Greater number of hotel rooms  Stay Longer and non-gaming offerings in Macao 

  38. Slide 38: Supplemental Information 2Q17 and 2Q16

    Supplemental Information 2Q17 and 2Q16 ($ in millions) Three Months Ended June 30, 2017 Amortization Loss on Pre-Opening Depreciation of Leasehold Disposal or and Adjusted Operating and Interests Impairment Development Royalty Stock-Based Corporate Property Income (Loss) Amortization in Land of Asse

  39. Slide 39: Supplemental Information YTD 2Q17 and YTD 2Q16

    Supplemental Information YTD 2Q17 and YTD 2Q16 ($ in millions) Six Months Ended June 30, 2017 Amortization Loss on Pre-Opening Depreciation of Leasehold Disposal or and Adjusted Operating and Interests Impairment Development Royalty Stock-Based Corporate Property Income (Loss) Amortization in Land o

  40. Slide 40: Macao Market Background and Infrastructure Slides

    Macao Market Background and Infrastructure Slides

  41. Slide 41: Mass Tables and Slots Comprise the Majority of Total Macao Market GGR

    Mass Tables and Slots Comprise the Majority of Total Macao Market GGR and Generate the Bulk of Gaming Operating Profit Composition of Macao Market Gross Gaming Revenue and Est. Gaming Operating Profit¹ 2Q17 TTM 2Q17 ($ in millions) ($ in millions) $7,900M $2,050M $30,046M $7,850M 100% 100% 18% 18% 8

  42. Slide 42: Five Trends that Should Contribute To Growth in the Macao Market

    Five Trends that Should Contribute To Growth in the Macao Market In The Future 200 million Chinese are expected to travel outside of China by 2020, 1 compared to 128 million in 2015. Chinese tourism expenditures are expected to increase 10% annually through 2020 to reach $354 billion Transportation

  43. Slide 43: China Is The World's Largest and Fastest Growing Outbound Tourism Market

    1 China Is The World’s Largest and Fastest Growing Outbound Tourism Market Outbound Travel from China Outbound Travel Penetration2 400 60% 56.1% Expenditure ($ in billions) $354 55% Taiwan 350 Chinese outbound tourists ($ in millions) 50% Korea $319 CLSA / WTTC estimates1 45% China 300 $289 40% CAGR

  44. Slide 44: Strong Growth in Chinese Outbound Tourism

    1 Strong Growth in Chinese Outbound Tourism Chinese Outbound Tourism to Select Markets 2010-2016 CAGR +20% +17% +13% +13% +16% +25% +14% +29% +27% +41% +8% +11% (in millions) 50.0 42.8 40.0 30.0 22.7 20.5 20.0 13.2 10.0 8.1 8.8 6.4 2.9 3.1 3.5 1.9 2.3 1.6 1.4 1.9 0.4 1.2 0.5 1.3 0.9 1.1 1.2 0.8 1.1

  45. Slide 45: Chinese Middle Class Consumption Growth

    1 Chinese Middle Class Consumption Growth Chinese Middle Class Consumption in 2030 is Projected to Reach $10.0 trillion Global Middle Class Consumption in 2030 (US$ in trillions) ($ in trillions) $15 $10.0 $10 $5 $4.0 $2.3 $2.5 $1.1 $1.2 $1.2 $1.3 $1.4 $- France Brazil Mexico Germany Russia Japan In

  46. Slide 46: Mainland Chinese Visitation to Macao Penetration Remains Low

    Mainland Chinese Visitation to Macao 1 Penetration Remains Low Year-Over-Year Visitation Growth Mainland Chinese Visitation to Macao Twelve Months Ended June 30, Population GDP Per Penetration Province 2016 2017 % Change (MM) Capita (US$) Rate Guangdong 9,055,759 9,171,912 +1% 108 $10,346 8.5% Hunan

  47. Slide 47: Infrastructure: China's High-Speed Rail

    2 Infrastructure: China’s High-Speed Rail Connecting More of Mainland China to Macao Beijing – Guangzhou High-Speed Rail  World’s longest high-speed rail route  Covers 2,298km in ~10 hours (compared to 22 hours previously)  Provides seamless connection from Guangzhou – Zhuhai Intercity Rail North

  48. Slide 48: Infrastructure: Meaningful Improvements Throughout the Pearl River Delta Region

    Infrastructure: Meaningful Improvements 2 Throughout the Pearl River Delta Region Guangzhou Population: 13M Wuhan – Guangzhou High-Speed Rail GDP Per Capita: US$20,000 • 4 hour train ride • 55-65 trains in each direction per day Guangzhou – Zhuhai Intercity Rail Guangzhou – Shenzhen – Hong Kong Rail

  49. Slide 49: Market Leading Hotel Capacity at SCL

    3 Market Leading Hotel Capacity at SCL Projected Macao Market 4/5 Star Hotel Rooms at December 31, 2018 Macao Market Gaming Operator Hotel Rooms at December 31, 20181 14,000 Hotel % of Gaming % of Total 12,770 Gaming Operator Rooms Operators Market 12,000 The Parisian Sands China ` 12,770 45% 34% Ga

  50. Slide 50: Length-of-Stay of Chinese Overnight Visitors & Number of Chinese Hotel Guests in Macao

    Length-of-Stay of Chinese Overnight Visitors 4 & Number of Chinese Hotel Guests in Macao Average Length-of-Stay of Mainland Chinese Overnight Visitors in Macao Mainland Chinese Hotel Guests in Macao (Days) (in millions) 2.5 8.0 7.5 2.2 2.1 2.1 2.1 7.0 6.8 6.6 2.0 2.0 2.0 6.2 6.0 5.2 5.0 4.6 1.5 4.0

  51. Slide 51: Overnight Visitation Now Exceeds Day-trip Visitation to Macao

    Overnight Visitation Now Exceeds “Day-trip” 4 Visitation to Macao Mainland China Day-Trip Visitors to Macao Mainland China Overnight Visitors to Macao (in millions) (in millions) 14.0 14.0 12.0 12.0 11.5 11.2 10.3 10.2 10.0 9.7 10.0 9.7 9.2 8.9 8.8 8.8 8.1 8.0 7.3 8.0 6.9 6.3 5.8 6.0 6.0 5.2 4.0 4.0

  52. Slide 52: Hengqin Island Expands Critical Mass of Tourism Offerings

    Hengqin Island Expands Critical Mass of 5 Tourism Offerings for Visitors to the Region Map of Hengqin Island New Area Important Facts  Island adjacent to Macao (3X the size of Macao) that has been identified as a strategic zone for cooperation among Guangdong Province, Hong Kong and Macao  Master-

  53. Slide 53: Non-GAAP Measures Reconciliations

    Non-GAAP Measures Reconciliations

  54. Slide 54: Reconciliation of Net Income to Consolidated Adjusted Property EBITDA

    Reconciliation of Net Income to Consolidated Adjusted Property EBITDA and Hold-Normalized Adjusted Property EBITDA ($ in millions) Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Net income $ 638 $ 394 $ 1,216 $ 803 Add (deduct): Income tax expense 78 55 147 118 Loss on mod

  55. Slide 55: Non-GAAP Measures: Adjusted Net Income and Adjusted Earnings Per Diluted Share

    Non-GAAP Measures: Adjusted Net Income; Hold-Normalized Adjusted Net Income; Adjusted Earnings Per Diluted Share; and Hold-Normalized Adjusted Earnings Per Diluted Share ($ in millions) Three Months Ended Six Months Ended June 30, June 30, 2017 2016 (1) 2017 2016 (1) Net income attributable to Las V

  56. Slide 56: Non-GAAP Trailing Twelve Month Supplemental Schedule

    Non-GAAP Trailing Twelve Month Supplemental Schedule ($ in millions) 2Q16 3Q16 4Q16 1Q17 2Q17 TTM 2Q17 Cash Flows From Operations $ 988 $ 1,043 $ 1,213 $ 963 $ 1,146 $ 4,365 Adjust for: Provision for doubtful accounts (43) (51) (34) (32) (22) (139) Foreign exchange (gains) losses (17) 7 41 (18) (5)

  57. Slide 57: Historical Hold-Normalized Adj. Property EBITDA

    Historical Hold-Normalized Adj. Property EBITDA1 ($ in millions) 2Q16 3Q16 4Q16 1Q17 2Q17 2 Macao Operations Reported $ 488 $ 628 $ 610 $ 624 $ 600 Hold-Normalized Adjustment 22 (50) (27) (32) (3) Hold-Normalized $ 510 $ 578 $ 583 $ 592 $ 597 Marina Bay Sands Reported $ 357 $ 391 $ 366 $ 365 $ 492 H

  58. Slide 58: The Parisian Macao: Reconciliation to Hold-Normalized Adjusted Property EBITDA

    The Parisian Macao: Reconciliation of Adjusted Property EBITDA to Hold-Normalized Adjusted Property EBITDA1 ($ in millions) Sequential Sequential 4Q16 1Q17 Change 2Q17 Change As Reported $ 95 $ 82 -13.7% $ 106 29.3% Hold-Normalized Casino Revenues (37) 8 (25) Hold-Normalized Casino Expenses 20 (6) 1

  59. Slide 59: Las Vegas Sands Corp.

    Sanes LAS VEGAS SANDS CORP.

Las Vegas Sands — Q2 2017 Earnings Presentation on 6ix