Las Vegas Sands Corp. · NYSE:LVS
Las Vegas Sands — Q4 2020 Earnings Presentation
56 slides from Las Vegas Sands's earnings presentation, Jan 27, 2021
Slide 1: 4Q20 Earnings Call Presentation
4Q20 Earnings Call Presentation January 27, 2021
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements 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 control, whi
Slide 3: Our Founder – Mr. Sheldon G. Adelson
Our Founder – Mr. Sheldon G. Adelson It was with great sadness that we announced the passing of our Founder, Mr. Sheldon G. Adelson, earlier this month. Mr. Adelson’s strategic vision and entrepreneurial leadership created Las Vegas Sands and provided the foundation for our company’s many accomplish
Slide 4: Las Vegas Sands' Strategic Priorities
Las Vegas Sands’ Strategic Priorities Safety and security of team members and guests Support for local communities in Macao, Singapore and Las Vegas Continuation of capital expenditure programs in both Macao and Singapore Maintaining strong balance sheet and liquidity required to invest in f
Slide 5: Current Operating Status: Recovery Process Continues Across our Markets
Current Operating Status: Recovery Process Continues Across our Markets Macao: − Our gaming and non-gaming operations in Macao continue to be impacted by the COVID-19 pandemic due to meaningfully reduced visitation − Visitation to the market increased in 4Q20 vs 3Q20 - but remains well below 2019
Slide 6: Fourth Quarter 2020 Financial Results
Fourth Quarter 2020 Financial Results Quarter Ended December 31, 2020 vs Quarter Ended December 31, 2019 ($ in US millions, except per share information) LVS Consolidated Fourth Quarter Financial Results 4Q19 4Q20 $ Change Net Revenue $3,509 $1,146 ($2,363) Net Income (Loss) 783 (376) (1,159) Dilute
Slide 7: LVS Consolidated Operations EBITDA Performance
LVS Consolidated Operations EBITDA Performance Quarter Ended December 31, 2020 vs Quarter Ended December 31, 2019 LVS Consolidated Adjusted Property EBITDA ($ in US millions) Adjusted Property EBITDA Hold-Normalized Adj. Prop. EBITDA $1,600 60% $1,400 $1,388 50% $1,200 $1,326 39.6% 38.8% 40% $1,000
Slide 8: LVS Consolidated Operations EBITDA Performance
LVS Consolidated Operations EBITDA Performance Quarter Ended December 31, 2020 vs Quarter Ended September 30, 2020 LVS Consolidated Adjusted Property EBITDA ($ in US millions) Adjusted Property EBITDA Hold-Normalized Adj. Prop. EBITDA $200 $150 $185 $141 $100 $50 $0 -$50 -$100 -$150 -$184 -$203 -$20
Slide 9: Sequential EBITDA Performance
Sequential EBITDA Performance Quarter Ended December 31, 2020 vs Quarter Ended September 30, 2020 ($ in US millions) Adjusted Hold-Normalized Property EBITDA Adjusted Property EBITDA 3Q20 4Q20 3Q20 4Q20 Sands China ($233) $47 ($240) $70 Change in Adj. EBITDA $280 $310 Marina Bay Sands $70 $144 $59 $
Slide 10: Sands China Ltd.
Sands China Ltd. Adjusted Property EBITDA of $47 Million in 4Q20, $70 Million on a Hold-Normalized Basis Adjusted Property EBITDA The Sands China property portfolio continues to be impacted by the ($ in US millions) COVID-19 pandemic and the related travel restrictions which have Actual Hold-Norma
Slide 11: Sands China Mass Market Table Update
Sands China Mass Market Table Update SCL Base Mass Table Win by Quarter SCL Premium Mass Table Win by Quarter ($ in US millions) ($ in US millions) Avg. Win per Table per Day: $2,291 Avg. Win per Table per Day: $5,661 $1,000 $1,000 $900 $900 $800 $800 $789 ~24% of ~44% of $700 4Q19 $700 4Q19 Level $
Slide 12: Sands China Mass Market Table and Slots Update
Sands China Mass Market Table and Slots Update SCL Mass Table1 Win by Quarter SCL Slots2 Win by Quarter ($ in US millions) ($ in US millions) $1,800 Avg. Win per Table per Day: $3,613 Avg. Win per Unit per Day: $145 $200 $1,600 $180 $1,400 $1,464 $160 ~33% of $161 ~23% of 4Q19 $140 4Q19 $1,200 Level
Slide 13: Macao Market: Mass Gaming Segment
Macao Market: Mass Gaming Segment Macao Market Mass Gaming Revenue (Tables & Slots) & Mass Win-per-Visit1 ($ US in millions) $6,000 Average mass win $1,400 $5,608 per visit ~ 2x 4Q19 $5,523 $5,440 $5,356 $5,500 $5,251 $4,955 $4,841 $1,135 $1,200 $5,000 $4,864 $4,706 $4,500 $4,017 $4,146 $4,169 $1,00
Slide 14: Macao Visitation and Mass Gaming Recovery
Macao Visitation and Mass Gaming Recovery Market-Wide Mass Revenue Recovering Faster Than Market-Wide Visitation Total Macao Visitation Macao Mass Gaming Win1 (Visitors in US millions) ($ in US millions) 12 $6,000 $5,608 10 $5,000 9.2 ~21% of ~38% of 8 4Q19 $4,000 4Q19 Level Level 6 $3,000 $2,131 4
Slide 15: Marina Bay Sands
Marina Bay Sands Adjusted Property EBITDA Reached $144 Million in 4Q20 Adjusted Property EBITDA Marina Bay Sands continues to be impacted by the COVID-19 ($ in US millions) Actual Hold-Normalized pandemic and the related travel restrictions, which have $500 meaningfully reduced visitation to Singa
Slide 16: Las Vegas Operations
Las Vegas Operations Adjusted Property EBITDA Loss in 4Q20 Adjusted Property EBITDA ($ in US millions) Our Las Vegas properties continue to be impacted by the COVID- Actual Hold-Normalized 19 pandemic and the recent travel restrictions - Statewide $125 restrictions on the size of group meetings ha
Slide 17: Investment Grade Balance Sheet Strength
Investment Grade Balance Sheet Strength As of December 31, 2020: Trailing Twelve Months Ended December 31, 2020: Cash Balance – $2.14 billion Cash Used in Operations – $1.31 billion Debt1 – $13.98 billion Adjusted Property EBITDA – ($172) million Net Debt1 – $11.85 billion LVS Dividends
Slide 18: Debt Maturity Profile
Debt Maturity Profile Debt Maturity by Year ($ in US millions) $4,000 $3,533 $3,500 $3,356 $3,000 1,056 1,733 $2,500 $2,000 $1,863 $1,892 500 $1,900 $1,500 1,000 $1,000 1,900 $750 1,800 1,750 1,800 $700 $500 800 750 700 $63 $63 $0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 % of Total 1% 1% 13
Slide 19: Capital Expenditures Expectations
Capital Expenditures Expectations Future Planned Investments Composed of Income Producing Projects and Maintenance ($ US in millions) $3,000 LVS Capex Expectations $2,400 $2,180 $1,800 $981 $1,330 $1,350 $1,200 $1,200 $140 $980 $30 $1,100 $949 $273 $837 $284 $825 $25 $400 $700 $850 $194 $211 $396 $4
Slide 20: Ongoing Strategic Reinvestment in Industry-Leading Portfolio of Integrated Resorts in Macao and Singapore
Ongoing Strategic Reinvestment in Industry-Leading Portfolio of Integrated Resorts in Macao and Singapore Through Future Total Expected Timeframe The Londoner Macao: 4Q20 Spend Spend • Renovation, expansion and rebranding of SCC to The ~$700M ~$650M ~$1.35B • Phased completion throughout 2020 and Lo
Slide 21: Environmental, Social and Governance (ESG)
Environmental, Social and Governance (ESG) Sands has a deep commitment to our ESG platform Sands is committed to being a valuable contributor to the local communities in which we operate through collaboration with Team Members, guests, small and medium enterprises, and community organizations Mi
Slide 22: Sustainability Awards and Certifications
Sustainability Awards and Certifications Recognized by Independent Third Parties as a Global Leader in Sustainability Highlights: Sands is the only U.S. based Casino and Gaming company to be named to the Dow Jones Sustainability World Index 2020 and North America Index 2020 Sands is one of only
Slide 23: The Investment Case for Las Vegas Sands
The Investment Case for Las Vegas Sands The global leader in Integrated Resort development and operation Industry-leading, investment grade balance sheet strength A unique MICE-based business model delivering industry-leading returns Unmatched development and operating track record creates c
Slide 24: Disciplined Execution of Our Global Growth Strategy
Disciplined Execution of Our Global Growth Strategy Focused on the Most Promising Global Development Opportunities Uniquely positioned to bring our unmatched track record and powerful convention-based business model to the world’s most promising Integrated Resort development opportunities Balanc
Slide 25: Appendices
Appendices Sands
Slide 26: $11.0 Billion of LVS and SCL Bonds Have No Financial Covenants
$11.0 Billion of LVS and SCL Bonds Have No Financial Covenants Investment Grade Long-term Debt – No Financial Covenants for LVS and SCL Bonds Outstanding Financial Covenants Las Vegas Sands Corp. Senior US$4.0 Billion None Unsecured Notes Sands China Ltd. Senior Unsecured US$7.0 Billion None Notes M
Slide 27: Revolver Commitments and Financial Covenants
Revolver Commitments and Financial Covenants Current Revolver Leverage Covenant Interest Covenant Availability1 Las Vegas Sands Corp. Waived US$1,499 Million Until January 20223 - Unsecured Revolver Sands China Ltd. Waived Waived Unsecured Revolver US$2,511 Million2 Until January 20224 Until January
Slide 28: Geographically Diverse Sources of EBITDA
Geographically Diverse Sources of EBITDA EBITDA Contribution by Geography in Trailing Twelve Months Ended December 31, 2019 ($ in US millions) LVS 2019 Consolidated Adjusted Property EBITDA1 $5,389M United States 10% Singapore 31% Macao 59% 1. The Macao region includes adjusted property EBITDA from
Slide 29: Retail Mall Portfolio in Asia
Retail Mall Portfolio in Asia Trailing Twelve Months Retail Mall Revenue ($ in US millions) $800 $712 $700 $657 1 $600 $185 TTM 4Q20 Sales $184 $5331 per Sq. Foot² $500 $53 1 $441 $47 $145 $70 $380 1 MBS $400 $63 $1,053 $37 $127 Parisian Macao $151 $54 $112 $349 $300 $137 $30 $44 $27 Londoner Macao
Slide 30: Retail Mall Portfolio in Asia
Retail Mall Portfolio in Asia LVS Mall Revenues Reflecting Recovery as Visitation Improves ($ in US millions) 1 LVS Mall Revenues TTM 4Q20 4Q20 3Q20 2Q20 1Q20 4Q19 The Shoppes at Marina Bay Sands $112 $39 $28 $3 $42 $54 Shoppes at Venetian $125 $51 $27 $18 $29 $70 Shoppes at Four Seasons $79 $40 $13
Slide 31: Retail Mall Portfolio in Asia
Retail Mall Portfolio in Asia Tenant Sales ($ per Sq. Foot, Unless Otherwise Indicated) 2 4Q20 Sales per Sq. Ft. GLA1 Occupancy % (Sq. Ft) at Period End TTM 4Q20 TTM 3Q20 TTM 2Q20 TTM 1Q20 TTM 4Q19 The Shoppes at Marina Bay Sands 620,330 98.2% $1,053 $1,225 $1,500 $1,917 $2,062 Shoppes at Venetian 8
Slide 32: Market Leading Hotel Capacity
Market Leading Hotel Capacity SCL is the Leader in Macao Hotel Room and Suite Inventory Projected Macao Market 4/5 Star Hotel Rooms at December 31, 20201 – Gaming Operators Cotai ~ 25,000 Rooms by Gaming Operators Total Macao ~ 28,500 Rooms by Gaming Operators MGM 12,112 Rooms and MGM 12,401 Rooms a
Slide 33: Sands China
Sands China Continued Expansion of Market-Leading Cotai Strip Property Portfolio LVS’ Cotai Strip Properties Leadership in Macao Investment Grand Suites at Four Seasons Macao St. Regis Hotel ~$15 billion ~290 Suites (Opened 400 Suites Approximately 30 million square feet of interconnected facili
Slide 34: Our Integrated Resorts Are Designed to Maximize Economic Growth and Tourism Appeal
Our Integrated Resorts Are Designed to Maximize Economic Growth and the Leisure & Business Tourism Appeal of our Host Markets Contribution to Singapore’s Leisure & Business Tourism Appeal MBS Existing Contributed to economic growth and to Singapore’s appeal as an exciting global city Delivered i
Slide 35: Marina Bay Sands Expansion
Marina Bay Sands Expansion Sands
Slide 36: Marina Bay Sands $3.3 Billion Expansion
Marina Bay Sands $3.3 Billion Expansion to Bring New Luxurious Hotel, Entertainment, MICE and Retail Offerings Las Vegas Sands has entered into a development agreement with the Singapore government to expand Marina Bay Sands Iconic New Luxury Hotel Tower: − Approximately 1,000 all-suite rooms desi
Slide 37: Marina Bay Sands Expansion
Marina Bay Sands Expansion A Development Agreement with the Singapore Tourism Board will allow an expansion of Marina Bay Sands 37
Slide 38: Marina Bay Sands Expansion
Marina Bay Sands Expansion Artistic Impression Design and development work are progressing, with a focus on increasing the leisure and business tourism appeal of Singapore and Marina Bay Sands Note: Image above denotes preliminary artistic impression which is subject to change. 38
Slide 39: Macao Market Background and Infrastructure Slides
Macao Market Background and Infrastructure Slides
Slide 40: Market-Leading ~$15 Billion of Investment
Market-Leading ~$15 Billion of Investment Investing in Macao’s Future as a Leisure & Business Tourism Destination Industry-Leading Integrated Resort Portfolio − Portfolio of ~12,400 suites and hotel rooms − ~2 Million square feet of new luxurious hotel suite inventory introduced in 2020 and early
Slide 41: Macao's Long-Term Growth Opportunity
Macao’s Long-Term Growth Opportunity Business & Leisure Tourism Drivers Future Growth Drivers As a result, Macao’s Mass visitors will More efficient and affordable Come From Further Away transportation infrastructure Greater number of hotel rooms, Stay Longer MICE and non-gaming offerings in
Slide 42: Market Leading Hotel Capacity at SCL
Market Leading Hotel Capacity at SCL Macao Market 4/5 Star Hotel Rooms at December 31, 2020 Cotai Total Market New Capacity % of Gaming % of Gaming % of Total Gaming Operator Rooms Operators Rooms Operators Market 16,000 Sands China 12,112 49% 12,401 44% 33% Galaxy Entertainment 3,920 16% 4,420 16%
Slide 43: Supplemental Data
Supplemental Data Sands
Slide 44: Historical Hold-Normalized Adjusted Property EBITDA
Historical Hold-Normalized Adjusted Property EBITDA1 ($ in US millions) 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 2 Macao Operations Reported $786 $858 $765 $755 $811 $67 ($312) ($233) $47 Hold-Normalized $820 $845 $765 $757 $789 $84 ($285) ($240) $70 Marina Bay Sands Reported $362 $423 $346 $435
Slide 45: Macao Market: Mass Gaming Revenue
Macao Market: Mass Gaming Revenue Macao Market Mass Gaming Revenue ($ in US millions) 1 Mass Win (Tables and Slots) Q1 Q2 Q3 Q4 Total 2016 $3,609 $3,508 $3,816 $3,989 $14,922 2017 $4,146 $4,017 $4,169 $4,706 $17,038 Growth ('17 v '16) 14.9% 14.5% 9.3% 18.0% 14.2% 2018 $4,955 $4,841 $4,864 $5,251 $19
Slide 46: Macao Market: VIP Gaming
Macao Market: VIP Gaming Macao Market VIP Gaming Revenue ($ in US millions) VIP Win1 Q1 Q2 Q3 Q4 Total 2016 $3,294 $2,856 $3,017 $3,516 $12,683 2017 $3,661 $3,734 $4,099 $4,292 $15,786 Growth ('17 v '16) 11.1% 30.7% 35.9% 22.1% 24.5% 2018 $4,429 $4,208 $4,288 $4,412 $17,337 Growth ('18 v '17) 21.0%
Slide 47: Sands China VIP Table Update
Sands China VIP Table Update SCL Rolling Volume by Quarter SCL Rolling Win by Quarter ($ in US billions) ($ in US millions, except per table amounts) Avg. Win per Table per Avg. Win per Table per $20 $800 Day: $23,622 Day: $3,688 ~22% of 4Q19 Level $16 $600 $15.2 $552 $12 $400 $8 $200 $4 $3.3 $57 $0
Slide 48: Reconciliation of Non-GAAP Measures and Other Financial Information
Reconciliation of Non-GAAP Measures and Other Financial Information
Slide 49: Reconciliation of Net Income (Loss) to Consolidated Adjusted Property EBITDA
Reconciliation of Net Income (Loss) to Consolidated Adjusted Property EBITDA ($ in US millions) 4Q18 2018 1Q19 2Q19 3Q19 4Q19 2019 1Q20 2Q20 3Q20 4Q20 2020 Net income (loss) ($40) $2,951 $744 $1,108 $669 $783 $3,304 ($51) ($985) ($731) ($376) ($2,143) Add (deduct): Income tax expense (benefit) 782 (
Slide 50: Non-GAAP Measures: Adjusted Net Income/Loss; Hold-Normalized Adjusted Net Income/Loss
Non-GAAP Measures: Adjusted Net Income/Loss; Hold-Normalized Adjusted Net Income/Loss ($ in US millions) Three Months Ended Twelve Months Ended December 31, December 31, 2020 2019 2020 2019 Net income (loss) attributable to LVS ($299) $629 ($1,685) $2,698 Nonrecurring legal settlement - - - 96 Pre-o
Slide 51: Adjusted Earnings/Loss Per Diluted Share; Hold-Normalized Adjusted EPS
Adjusted Earnings/Loss Per Diluted Share; and Hold-Normalized Adjusted Earnings/Loss Per Diluted Share ($ in per share amounts) Three Months Ended Twelve Months Ended December 31, December 31, 2020 2019 2020 2019 Per diluted share of common stock: Net income (loss) attributable to LVS ($0.39) $0.82
Slide 52: Non-GAAP Trailing Twelve Month Supplemental Schedule
Non-GAAP Trailing Twelve Month Supplemental Schedule ($ in US millions) 4Q19 1Q20 2Q20 3Q20 4Q20 TTM 4Q20 Cash Flows From Operations $1,242 ($370) ($652) ($294) $4 ($1,312) Adjust for: Provision for doubtful accounts (15) (18) (17) (25) (39) (99) Foreign exchange gains (losses) 30 39 (5) (5) (9) 20
Slide 53: Historical Hold-Normalized Adj. Property EBITDA
Historical Hold-Normalized Adj. Property EBITDA1 ($ in US millions) 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 2 Macao Operations Reported $786 $858 $765 $755 $811 $67 ($312) ($233) $47 Hold-Normalized Adjustment 34 (13) - 2 (22) 17 27 (7) 23 Hold-Normalized $820 $845 $765 $757 $789 $84 ($285) ($2
Slide 54: Supplemental Information 4Q20 and 4Q19
Supplemental Information 4Q20 and 4Q19 ($ in US millions) Three Months Ended December 31, 2020 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
Slide 55: Supplemental Information YTD 4Q20 and YTD 4Q19
Supplemental Information YTD 4Q20 and YTD 4Q19 ($ in US millions) Twelve Months Ended December 31, 2020 Amortization Loss on Pre-Opening Depreciation of Leasehold Disposal or and Adjusted Operating and Interests Impairment Development Royalty Stock-Based Corporate Property Loss Amortization in Land
Slide 56: Sands
Sands