Las Vegas Sands Corp. · NYSE:LVS
Las Vegas Sands — Q1 2013 Earnings Presentation
41 slides from Las Vegas Sands's earnings presentation, May 1, 2013
Slide 1: Las Vegas Sands Corp. 1Q13 Financial Results
Las Vegas Sands Corp. 1Q13 Financial Results May 1, 2013
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: First Quarter 2013 Highlights
First Quarter 2013 Highlights Strong Quarterly Results and Increased Return of Capital to Shareholders Consolidated hold‐adjusted adjusted property EBITDA increased 28.2% to record $1.19 billion (adjusted property EBITDA increased 9.4% to record $1.17 billion) Macao – Hold‐adjusted adjusted prop
Slide 4: Macao and Singapore Growth Highlights
Macao – Outstanding Growth in all Gaming Segments Singapore – VIP Strong; Mass Table, Hotel and Retail Growing Macao – Record EBITDA driven by strong growth in all segments — Mass table win increased 62.5% to record $866.7 million — Slot and ETG win increased 34.8% to $148.9 million — Rolling volu
Slide 5: Return of Capital to Shareholders
Return of Capital to Shareholders LVS Recurring Dividends per Share1 Board of Directors increased recurring dividend by $2.00 40% to $1.40 per share for the 2013 calendar year $1.40 ($0.35 per share payable quarterly) $1.00 $1.00 The company remains committed to returning capital to shareholders
Slide 6: Strong Cash Flow and Balance Sheet
Strong Cash Flow and Balance Sheet Ample Liquidity for Future Growth Opportunities Trailing Twelve Months EBITDA – $3.89 billion Trailing Twelve Months Dividends Paid – $3.17 billion Cash Balance – $2.39 billion Net Debt – $7.44 billion Net Debt to TTM EBITDA – 1.9 x Figures as of March 31
Slide 7: Strong First Quarter 2013 Financial Results
Strong First Quarter 2013 Financial Results Record Hold‐Adjusted EBITDA of $1.19 Billion $ in millions, except per share information 1Q12 1Q13 $ Change % Change Net Revenue $ 2,762.7 $ 3,302.7 $ 540.0 19.5% Adjusted Property EBITDA $ 1,066.5 $ 1,166.6 $ 100.1 9.4% Adj. Property EBITDA Margin 38.6% 3
Slide 8: Record Macao Operating Performance
Record Macao Operating Performance Macao Property Operations Adjusted Property EBITDA and Adjusted Property EBITDA Margin ($MM) $700 60% $630.2 $630.2 $600 50% $500 $456.4 40% $416.7 $400 32.1% 30% 30.7% 31.6% 31.6% $300 20% $200 10% $100 $0 0% 1Q12 1Q13 Adj. Prop. EBITDA Hold‐Adjusted Adj. Prop. EB
Slide 9: Macao Gaming Performance
Macao Gaming Performance Strong Growth and Increased Efficiency Across Property Portfolio Mass tables — Mass table win up 62.5% to record $866.7 million — Mass table efficiency up 26.6% to $10,204 win per table per day — Increased mass table count by 29.8% to reach an average of 944 mass tables du
Slide 10: Strong Growth in Macao Mass Table Business
Strong Growth in Macao Mass Table Business Growth and Productivity Gains in Macao’s Most Important Segment Mass Table Revenue1 Increased 63.2% Mass Table Win per Table per Day2 1Q13 Estimated Competitive Flagship Property Average3 ($MM) $12,000 $900 $863.6 40% $11,776 $10,204 $800 $767.4 35% $10,000
Slide 11: Profitable Slot Business Continues to Grow
Profitable Slot Business Continues to Grow Slot Revenue1 Increased 26.9% Slot and ETG Win per Unit per Day ($MM) $500 $160 45% 1Q13 Estimated Competitive Flagship Property Average2 $143.2 $459 $140 40% $131.0 $400 35% $120 $336 $110.9 $109.4 $313 $103.2 32.6% 30% $300 $299 $100 $300 $283 28.7% 27.0%
Slide 12: Robust Mass Growth Across our Property Portfolio
Robust Mass Growth Across our Property Portfolio All Cotai Strip Properties and Sands Macao Contributing to Growth Mass Table, Slot and ETG Win Per Day Cotai Strip Properties Peninsula Total ($MM) $12.0 $11.3 $9.2 $9.0 $7.1 $6.0 $5.5 $5.1 $4.5 $3.0 $3.0 $2.0 $2.1 $0.6 $0.7 $0.0 Venetian Macao Sands
Slide 13: Our Macao Assets Have Delivered Consistent Mass Market Growth
Our Macao Assets Have Delivered Consistent and Reliable Mass Market Growth Macao Market Mass Table and Slot Revenue ($MM) $1,200 $995 $1,000 $911 $800 $779 $688 $600 $632 $546 $561 $490 $506 $400 $462 $478 $421 $428 $374 $391 $365 $360 $200 $0 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4
Slide 14: VIP Business Exhibiting Strong Growth
VIP Business Exhibiting Strong Growth Gaining Market Share, Table Productivity Stable Rolling Volume Increased by 24.9% Consolidated Rolling Volume per Table per Day ($BN) ($MM) $45 20% $1.40 1Q13 Estimated Competitive Flagship Property Average1 $41.2 $1.37 $39.3 $40 $1.20 $36.0 17.4% 17.2% $35 $32.
Slide 15: Sands Cotai Central is Ramping
Sands Cotai Central is Ramping Strong Growth in All Gaming Segments and Property Visitation Mass Table, Slot and ETG Win per Day Mass Table Win per Table per Day ($MM) $10,000 $4.00 $7,933 $3.01 $8,000 $6,613 $3.00 $2.58 $5,887 $6,000 $4,759 $2.00 $1.56 $4,000 $1.36 $1.00 $2,000 $0 $0.00 2Q12¹ 3Q12
Slide 16: 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 Phase III Phase I Phase IIA Phase IIB Air Conditioned Pedestrian Walkway Picture taken April 29, 2013 Currently Future Operational Phase Pedestrian Walkway Opened on December 20
Slide 17: Expanding Our Asset Base on the Cotai Strip
Expanding Our Asset Base on the Cotai Strip The Parisian Macao Under construction with piling currently underway Targeted completion date: Late 2015 Total cost of project: ~$2.7 billion Hotel rooms and suites: 3,000+ Gaming capacity: ~450 table games and 2,500 slots and ETGs Additional a
Slide 18: Singapore – VIP Strength, Mass Stable, Continued Growth
Singapore – VIP Strength, Mass Stable, Continued Growth in Hotel, MICE and Retail Hold‐adjusted adjusted property EBITDA was up 15.7% to $451.1 million (adjusted property EBITDA of $396.8 million) Gaming — VIP volumes increased 42.2% to a record $18.21 billion in rolling volume (low hold of 2.51
Slide 19: Asian Retail Mall Revenue Increasing Steadily
Asian Retail Mall Revenue Increasing Steadily Trailing Twelve Months Retail Mall Revenue ($MM) $450 $409 $395 $400 $373 $360 $340 $350 $159 $156 $300 $152 $149 $145 $250 $16 $24 $3 $7 $200 $83 $83 $77 $79 $150 $71 $100 $140 $124 $130 $135 $143 $50 $0 1Q12 2Q12 3Q12 4Q12 1Q13 Venetian Macao Four Seas
Slide 20: Disciplined Execution of Our Global Growth Strategy
Disciplined Execution of Our Global Growth Strategy Development Opportunity Parameters Minimum of 20% return on total invested capital 25% ‐ 35% of total project costs to be funded with equity ‐‐ project financing (65% ‐ 75% of total project costs) in place before construction begins Geographic
Slide 21: Sands
Sands LAS VEGAS SANDS CORP.
Slide 22: Appendix
Appendix Saneas LAS VEGAS SANDS CORP.
Slide 23: The Investment Case for Las Vegas Sands
The Investment Case for Las Vegas Sands We are the global leader in Integrated Resort development and are delivering strong cash flow and earnings growth each quarter Our properties in Asia serve the most important growing consumer markets in the world — Asia’s middle class will grow from 500 mi
Slide 24: Historical Hold-Adjusted Adj. Property EBITDA
Historical Hold‐Adjusted Adj. Property EBITDA1 $ in millions 1Q12 2Q12 3Q12 4Q12 1Q13 Macao Property Operations Reported $ 456.4 $ 429.0 $ 487.9 $ 622.2 $ 630.2 Hold‐Adjusted $ 416.7 $ 429.0 $ 487.9 $ 569.8 $ 630.2 Marina Bay Sands Reported $ 472.5 $ 330.4 $ 260.8 $ 302.5 $ 396.8 Hold‐Adjusted $ 389
Slide 25: Capital Expenditures Expectations
Capital Expenditures Expectations1 Future Investments Include SCC, The Parisian Macao and Maintenance com ($MM) LVS Capex Expectations $2,000 $1,508 $1,510 $1,500 $1,449 $1,400 $107 $1,305 $496 $105 $340 $900 $1,000 $950 $850 $830 $360 $400 $820 $500 $500 $160 $472 $500 $450 $450 $450 $500 $193 $0 2
Slide 26: Long Dated Maturity Profile
Long Dated Maturity Profile Debt Maturity by Year at March 31, 2013 ($MM) $5,000 $4,500 $4,402 $4,000 $1,384 $3,500 $3,000 $2,500 $926 $2,000 $1,742 $1,524 $187 $1,500 $1,244 $630 $1,000 $2,086 $816 $1,169 $500 $1,185 $920 $815 $89 $148 $11 $0 $200 2013 2014 2015 2016 2017 2018 2019 SCL MBS USRG LVS
Slide 27: Marina Bay Sands Operations
Marina Bay Sands Operations First Quarter 2013 Details All‐time record hold‐adjusted adjusted property EBITDA Adjusted Property EBITDA of $451.1 million, an increase of 15.7% and Adjusted Property EBITDA Margin ($MM) $500 $472.5 $451.1 60% Adjusted property EBITDA of $396.8 million, a decrease $
Slide 28: Singapore – Credit Collections Remain Healthy
Singapore – Credit Collections Remain Healthy Reserve Balance Has Now Increased to 27.8% of Gross A/R Casino Credit Collections Remain Healthy ($MM) $450 $418.1 $377.5 $367.8 $375 $345.2 $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 2Q11 3Q11 4Q11 1
Slide 29: Asian Property Portfolio Dominates EBITDA Generation
Asian Property Portfolio Dominates EBITDA Generation Composition of 1Q13 Adjusted Property EBITDA Actual Results Hold‐Adjusted Results Bethlehem Bethlehem 2% 2% Las Las Vegas Vegas 10% 7% Macao Singapore Macao Singapore 53% 54% 38% 34% $1,166.6 Million $1,188.5 Million 29
Slide 30: Las Vegas Operations
Las Vegas Operations First Quarter 2013 Details On a hold‐adjusted basis, adjusted property EBITDA Adjusted Property EBITDA was $82.7 million, a decrease of 16.2% and Adjusted Property EBITDA Margin ($MM) — Adjusted property EBITDA was $113.4 million, a $125 $115.8 $113.4 40% $98.7 decrease of 2.1
Slide 31: Sands Bethlehem Operations
Sands Bethlehem Operations First Quarter 2013 Details Hold‐adjusted adjusted property EBITDA was $28.2 Adjusted Property EBITDA million, an increase of 3.2% and Adjusted Property EBITDA Margin ($MM) $35 40% $29.9 Adjusted property EBITDA increased 8.6% to $29.9 $30 $27.5 $27.3 $28.2 million $25
Slide 32: European Development Update
European Development Update In December 2012, the government of the region of Madrid passed legislation that outlined the regulatory framework to enable Integrated Resort development in the Madrid region While the development process is still in the early phases, the next steps include: 1 Europe
Slide 33: Macao Market Background and Infrastructure Slides
Macao Market Background and Infrastructure Slides
Slide 34: VIP Gaming is 68% of Total Macao GGR
VIP Gaming is 68% of Total Macao GGR… …but Mass Tables and Slots Generate ~65% of Gaming Operating Profit LTM March 2013 Macao Market Composition of Macao Market Gross Gaming Gross Gaming Revenue Revenue and Est. Gaming Operating Profit2 ($MM) 1Q13 YoY $39,388 Growth $40,000 100% +15% $35,000 80% 35
Slide 35: China's High-Speed Rail
China’s High‐Speed Rail Connecting More of Mainland China to Macao Guangzhou – Zhuhai Intercity Rail Wuhan– Guangzhou High‐Speed Rail Rail line connecting Guangzhou to Wuhan is the capital of Hubei Province Zhuhai, where the Gongbei border and the most populous city in Central gate to Macao is l
Slide 36: Growth in Visitation from Deeper Within China
Growth in Visitation from Deeper Within China is Happening… Heilongjiang 38M 0.6% Beijing 21M Jilin 1.7% 28M 0.6% Inner Liaoning Xinjiang Mongolia 44M 25M 0.6% 22M Presentation of Data 0.4% Hebei Shanxi 58M Tianjin Ningxia 36M 0.3% 14M Province 6M 0.6% Shandong 1.0% Qinghai 97M Population 6M Gansu S
Slide 37: 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 38: Day-Trip vs Overnight Visitation to Macao
While Day‐Trip Visitation Growth to Macao has Slowed….Overnight Visitation has Continued to Expand Mainland China Day‐Trip Visitors to Macao Mainland China Overnight Visitors to Macao Growth ‐9% +19% +28% 0% Growth ‐1% +22% +16% +10% (MM) (MM) 10.0 9.0 8.8 8.1 8.8 9.0 8.0 7.3 8.0 7.0 6.9 6.3 7.0 6.0
Slide 39: Visitation to Macao Can Meaningfully Grow
Visitation to Macao Can Meaningfully Grow 34.9 Million Residents of Mainland China Visited Hong Kong in 2012 Mainland China Visitation to Macao and Hong Kong Macao ‐5% +20% +22% +5% Hong Kong +6% +26% +24% +24% (MM) 40.0 34.9 35.0 Hong Kong Received 30.0 28.1 18M More Visitors from 25.0 22.7 China i
Slide 40: Market Leading Hotel Capacity at LVS
Market Leading Hotel Capacity at LVS Las Vegas Sands has 39% of Macao’s 4/5‐Star Hotel Inventory Macao Market Gaming Operator Hotel Rooms1 10,000 Hotel % of Gaming % of Total 9,354 Gaming Operator Rooms Operators Market Sands Macao, 289 9,000 Four Seasons Macao, 360 Las Vegas Sands ` 9,354 56% 39% G
Slide 41: Sands
Sands LAS VEGAS SANDS CORP.