Las Vegas Sands Corp. · NYSE:LVS
Las Vegas Sands — Q3 2016 Earnings Presentation
50 slides from Las Vegas Sands's earnings presentation, Nov 3, 2016
Slide 1: 3Q16 Earnings Call Presentation
The Parisian Macao The Venetian Macao Sands Cotai Central, Macao Marina Bay Sands, Singapore (Opened Sept. 13, 2016) 3Q16 Earnings Call Presentation November 3, 2016 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 con
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 as well as recurring dividends Best positioned operator to deliver long‐term growth in Asia, with the pre‐eminent destinat
Slide 4: Third Quarter 2016 Financial Highlights
Third Quarter 2016 Financial Highlights Net revenue increased 2.6% to $2.97 billion with net income of $605.5 million Adjusted property EBITDA increased 8.6% to $1.14 billion Hold‐Normalized adjusted property EBITDA was $1.06 billion; Hold‐normalized adjusted property EBITDA margin was an indu
Slide 5: Third Quarter 2016 Financial Results (Y/Y)
Third Quarter 2016 Financial Results (Y/Y) Quarter Ended September 30, 2016 vs Quarter Ended September 30, 2015 $ in millions, except per share information 3Q15 3Q16 $ Change % Change Net Revenue $ 2,893.7 $ 2,968.5 $ 74.8 2.6% Net Income $ 618.2 $ 605.5 $ (12.7) ‐2.1% Adjusted Property EBITDA $ 1,0
Slide 6: Geographically Diverse Sources of EBITDA
Geographically Diverse Sources of EBITDA EBITDA Contribution by Geography in 3Q 2016 Consolidated Adjusted Property EBITDA1 Consolidated Hold‐Normalized Adj. Prop. EBITDA1 $1,143M $1,059M United United States States 11% 12% Singapore Singapore 34% Macao 35% Macao 55% 53% 1. The Macao region includes
Slide 7: LVS Increasing Return of Capital to Shareholders
LVS Increasing Return of Capital to Shareholders Over $14.8 Billion of Capital Returned to Shareholders Since 2012 LVS Recurring Dividends per Share1 Return of Capital to Shareholders Las Vegas Sands remains committed to returning capital to $3.50 shareholders via its recurring dividend program and
Slide 8: SCL Also Increasing Return of Capital to Shareholders
SCL Also Increasing Return of Capital to Shareholders Over US$9.3 Billion of Capital Returned to Shareholders Since 2012 SCL Recurring Dividends per Share (HK$)1 Return of Capital to Shareholders $3.00 Sands China is committed to returning capital to $2.50 shareholders via its recurring bi‐annual
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 At September 30, 2016: Trailing twelve months ended September 30, 2016: Cash Balance – $1.80 billion Cash Flow from Operations – $3.84 billion Debt – $9.89 billion1 Adjusted Proper
Slide 10: Macao Operating Performance (Y/Y)
Macao Operating Performance (Y/Y) Quarter Ended September 30, 2016 vs Quarter Ended September 30, 2015 Macao Operations Adjusted Property EBITDA and Adjusted Property EBITDA Margin Adjusted Property EBITDA Hold‐Normalized, Adj. Prop. EBITDA ($MM) +15.3% +5.2% $700 60% $628.5 $600 $564.5 $545.2 50% $
Slide 11: Diversified and Stable Sources of Departmental Profit
Diversified and Stable Sources of Departmental Profit Macao Departmental Profit Contribution by Segment1 TTM 3Q15 TTM 3Q16 Other Other 3% 4% VIP VIP 10% 10% Mall 13% Mall 14% Mass Tables Mass Tables 51% 50% Hotel 15% Hotel 14% Slots 8% Slots 8% Mass Tables / Slots and Non‐Gaming Generated 90% of Mac
Slide 12: Gradual Improvement in Macao's High Margin Mass Market Segment
Gradual Improvement in Macao’s High Margin Mass Market Segment Macao Mass Gaming Revenue (Tables & Slots) & Mass Win‐per‐Visit1 ($MM) $5,000 $1,000 $4,589 $4,449 $4,419 $4,340 $3,872 $3,919 $4,000 $3,778 $800 $3,682 $3,609 $3,508 $3,497 $3,584 $3,351 $3,441 $3,408 $3,175 $585 $597 $586 $3,000 $2,839
Slide 13: Sands China Mass Market Table Update
Sands China Mass Market Table Update Mass Market Table Win Grew 6.1% in 3Q16 vs. 3Q15 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% Avg. Win per Table per Day: $6,376 Avg. W
Slide 14: The Parisian Macao Held its Grand Opening on September 13, 2016
The Parisian Macao Held its Grand Opening on September 13, 2016 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 Macao
Slide 15: The Parisian Macao Initial Highlights
The Parisian Macao Initial Highlights The Parisian Macao held its grand opening on September 13, 2016 Strong property visitation at the Parisian Macao drove increased traffic to our entire Cotai property portfolio During the Parisian Macao’s first 18‐days of operations the property generated:
Slide 16: The Parisian Macao Over 1.2 Billion Online Impressions Via Social Media
The Parisian Macao Over 1.2 Billion Online Impressions Via Social Media 16
Slide 17: The Parisian Macao Grand Opening Celebration
The Parisian Macao Grand Opening Celebration – September 13, 2016 17
Slide 18: The Parisian Macao Photo of Main Entry Rotunda
The Parisian Macao Photo of Main Entry Rotunda 18
Slide 19: The Parisian Macao Photo of Hotel Reception
The Parisian Macao Photo of Hotel Reception 19
Slide 20: The Parisian Macao Photo of Hotel Concierge
The Parisian Macao Photo of Hotel Concierge 20
Slide 21: The Parisian Macao Photo of Deluxe Room with Eiffel Tower View
The Parisian Macao Photo of Deluxe Room with Eiffel Tower View 21
Slide 22: The Parisian Macao Photo of Retail Mall
The Parisian Macao Photo of Retail Mall 22
Slide 23: 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 40% of EBITDA 80% 72% 68% 65% 64% 10% 9% 30% 60% 9% 8% 16% 14% 13% 12% 20% 40% 14% 12% 7% 36% 11% 35% 32% 28% 15% 14% 15% 14% 1
Slide 24: Marina Bay Sands Update
Marina Bay Sands Update1 Adjusted Property EBITDA Increased 0.3% to $390.7 million Adjusted property EBITDA increased 0.3% to $390.7 million. Rolling Adjusted Property EBITDA win % was 3.25% in 3Q16 compared to 2.61% in the prior‐year and Adjusted Property EBITDA Margin quarter. Actual Hold‐Normal
Slide 25: Singapore's Marina Bay Sands: Diversified and Stable Sources of Departmental Profit
Singapore’s Marina Bay Sands: Diversified and Stable Sources of Departmental Profit For Las Vegas Sands Marina Bay Sands Hold‐Normalized Departmental Profit Contribution by Segment TTM 3Q15¹ TTM 3Q16¹ Other Other 5% VIP VIP 8% 4% 12% Mall 8% Mall Mass Tables Mass Tables 8% 39% 40% Hotel 18% Hotel 17
Slide 26: Asia Retail Mall Portfolio Continues to Generate Strong Revenue and Operating Profit
Asia Retail Mall Portfolio Continues to Generate Strong Revenue and Operating Profit Trailing Twelve Months Retail Mall Revenue ($MM) +0.9% TTM 3Q16 Sales per Sq. Foot² $575 $569 $573 $580 $600 $560 MBS: $500 $163 $1,396 $167 $163 $163 $163 $400 $5 SCC: $63 $62 $64 $65 $65 $868 $300 Four Seasons: $1
Slide 27: Sands China: Retail Mall Revenue Composition
Sands China: Retail Mall Revenue Composition Macao Quarterly Retail Revenue Composition ($MM) $160 $140 $117.6 $120 $103.9 $97.8 $22.5 $98.1 $100 $95.3 $1.1 $2.1 $3.8 $8.7 $80 $60 $95.1 $94.2 $96.0 $100.1 $89.1 $40 $20 $‐ 3Q15 4Q15 1Q16 2Q16 3Q16 Base Rent and Other Fees Turnover Rent Strong Base Re
Slide 28: Las Vegas Operations Update
Las Vegas Operations Update Strong RevPAR Performance Drove 6.9% Adjusted Property EBITDA Growth Adjusted property EBITDA increased 6.9% to $85.3 Adjusted Property EBITDA million and Adjusted Property EBITDA Margin Actual Hold‐Normalized — On a hold‐normalized basis, adjusted property ($MM) EBITDA
Slide 29: Sands Bethlehem Update
Sands Bethlehem Update Another Strong Quarter for Leading Tri‐State Region Property Adjusted Property EBITDA Adjusted property EBITDA increased 1.6% to $38.1 and Adjusted Property EBITDA Margin million ($MM) Table games drop decreased 2.4% to $283.7 million, $45 40% $37.5 $38.1 as strong Baccara
Slide 30: Disciplined Execution of Our Global Growth Strategy
Disciplined Execution of Our Global Growth Strategy As the global leader in MICE‐based Integrated Resort development and operation, Las Vegas Sands is uniquely positioned to bring its unmatched track record and powerful convention‐based business model to the world’s most promising Integrated Resor
Slide 31: Industry Leading Corporate Social Responsibility Programs
Industry Leading Corporate Social Responsibility Programs
Slide 32: Sands ECO 360° Industry Leading Global Sustainability Program
Sands ECO 360° Industry Leading Global Sustainability Program The Sands ECO 360° Global Sustainability Program Reflects our Vision to Lead our Industry in Sustainable Development and Integrated Resort Operations 32
Slide 33: Sands ECO 360° Recognized as a Global Leader in Climate Change Response
Sands ECO 360° Recognized as a Global Leader in Climate Change Response A A A A 4 A B B3 C C C C C C2 D D D 1 0 Governance & Strategy Risk & Opportunity Management Emissions Management Verification LVS Industry Avg. CDP Program Avg. Awarded a Coveted Position on CDP’s Climate A‐List in 2016, Ranking
Slide 34: Sands Cares - Corporate Citizenship Overview
Sands Cares ‐ Corporate Citizenship Overview Our Commitment to Giving Back The Ultimate Goal for Sands Cares is to Build on our Legacy of Making an Impact in the Areas we Care About Most – our People, the Communities we Call Home and the Planet we Share 34
Slide 35: Sustainability Awards & Certifications
Sustainability Awards & Certifications Recognition on a Global and Local Level Las Vegas Sands United States Macao Singapore Dow Jones Sustainability Indices Trip Advisor: Green Leader Gold Macao Green Hotel Awards Singapore BCA Green (2015, 2016) Certification Gold – Cotai Central, The Venetian Mac
Slide 36: Appendix
Appendix Sanes LAS VEGAS SANDS CORP.
Slide 37: Historical Hold-Normalized Adj. Property EBITDA
Historical Hold‐Normalized Adj. Property EBITDA1 $ in millions 3Q15 4Q15 1Q16 2Q16 3Q16 Macao Operations2 Reported $ 545.2 $ 581.4 $ 518.1 $ 487.9 $ 628.5 Hold‐Normalized $ 536.7 $ 555.2 $ 508.2 $ 495.9 $ 564.5 Marina Bay Sands Reported $ 389.7 $ 338.2 $ 274.9 $ 357.0 $ 390.7 Hold‐Normalized $ 411.3
Slide 38: Debt Maturity Profile
Debt Maturity Profile Debt Maturity by Year at September 30, 2016 ($MM) $7,000 $6,000 $5,000 $4,443 $4,000 2,115 $3,000 $2,265 $2,000 $1,442 $1,260 1,823 $1,000 2,265 1,114 1,442 $170 $293 $24 504 $0 219 2016 2017 2018 2019 2020 2021 2022 SCL MBS US LVSC % of Total 0% 2% 3% 13% 45% 14% 23% Long Term
Slide 39: Capital Expenditures Expectations
Capital Expenditures Expectations Future Planned Investments Composed Principally of The Parisian Macao and Maintenance ($MM) LVS Capex Expectations $3,000 $2,500 $2,000 $1,750 $8 $1,529 $200 $1,449 $1,500 $107 $40 $19 $285 $1,179 $50 $1,100 $49 $898 $190 $1,000 $1,000 $830 $767 $400 $210 $390 $50 $
Slide 40: Marina Bay Sands: Accounts Receivable and Credit Collections Update
Marina Bay Sands: Accounts Receivable and Credit Collections Update Casino Credit Collections ($MM) $500 $418 $378 $368 $408 $403 $326 $361 $400 $342 $311 $317 $281 $272 $291 $281 $262 $257 $300 $206 $200 $175 $127 $100 $0 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q
Slide 41: 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 Destination1 Family-friendly Entertainment World Class Concerts, Sporting Events Portfolio of Nearly and Other Entertainment Offerings 13,000 Suites and Hotel Rooms1 Over Two Million sq. feet of World Class S
Slide 42: Macao Mass Visitation Future Growth 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
Slide 43: Market Leading Hotel Capacity at SCL
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 12,677 Gaming Operator Rooms Operators Market 12,000 Sands China ` 12,677 44% 34% The Parisian Gala
Slide 44: Non-GAAP Measures Reconciliations
Non‐GAAP Measures Reconciliations
Slide 45: Reconciliation of Net Income to Consolidated Adjusted Property EBITDA
Reconciliation of Net Income to Consolidated Adjusted Property EBITDA and Hold‐Normalized Adjusted Property EBITDA Three Months Ended Nine Months Ended ($000's) September 30, September 30, 2016 2015 2016 2015 Net income $ 605,513 $ 618,193 $ 1,408,863 $ 1,810,722 Add (deduct): Income tax expense 69,
Slide 46: 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 Three Months Ended Nine Months Ended ($000's) September 30, September 30, (1) (1) 2016 2015 2016 2015 Net income attributable to L
Slide 47: Non-GAAP Trailing Twelve Month Supplemental Schedule
Non‐GAAP Trailing Twelve Month Supplemental Schedule ($MM) 3Q15 4Q15 1Q16 2Q16 3Q16 TTM 3Q16 Cash Flows From Operations $ 859.0 $ 1,009.5 $ 798.9 $ 988.1 $ 1,043.0 $ 3,839.5 Adjust for: Provision for doubtful accounts (32.8) (29.5) (45.4) (42.2) (51.0) (168.1) Foreign exchange (gains) losses 19.1 (3
Slide 48: Historical Hold-Normalized Adj. Property EBITDA
Historical Hold‐Normalized Adj. Property EBITDA1 $ in millions 3Q15 4Q15 1Q16 2Q16 3Q16 Macao Operations 2 Reported $ 545.2 $ 581.4 $ 518.1 $ 487.9 $ 628.5 Hold‐Normalized Adjustment (8.5) (26.2) (9.9) 8.0 (64.0) Hold‐Normalized $ 536.7 $ 555.2 $ 508.2 $ 495.9 $ 564.5 Marina Bay Sands Reported $ 389
Slide 49: Marina Bay Sands Constant Currency Supplemental Schedule
Marina Bay Sands Constant Currency Supplemental Schedule ($MM) 3Q15 3Q16 Change Adjusted Property EBITDA $ 389.7 $ 390.7 0.3% Constant Currency Adjustment (1) (1.9) Non‐GAAP Adjusted Property EBITDA, Adjusted for Constant Currency $ 389.7 $ 388.8 ‐0.2% Hold‐Normalized Adjusted Property EBITDA $ 411.
Slide 50: Sands
Sands LAS VEGAS SANDS CORP,