Las Vegas Sands Corp. · NYSE:LVS
Las Vegas Sands — Q2 2015 Earnings Presentation
56 slides from Las Vegas Sands's earnings presentation, Jul 22, 2015
Slide 1: 2Q15 Earnings Call Presentation
The Venetian Macao Sands Cotai Central, Macao Marina Bay Sands, Singapore The Parisian Macao 2Q15 Earnings Call Presentation July 22, 2015 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, delivering strong and diversified cash flow and earnings as well as growing recurring dividends Best positioned operator to deliver long-term growth in Asia, with the pre-eminent destination
Slide 4: Second Quarter 2015 Financial Highlights
Second Quarter 2015 Financial Highlights Continued Return of Capital to Shareholders Despite Current Headwinds in Macao Net revenue was $2.92 billion Consolidated adjusted property EBITDA was $1.02 billion Consolidated EBITDA margin was 34.8% (35.2% on a hold-normalized basis) Macao – Adjust
Slide 5: Second Quarter 2015 Financial Results (Y/Y)
Second Quarter 2015 Financial Results (Y/Y) Quarter Ended June 30, 2015 vs Quarter Ended June 30, 2014 $ in millions, except per share information 2Q14 2Q15 $ Change % Change Net Revenue $ 3,624.4 $ 2,921.4 $ (702.9) -19.4% Adjusted Property EBITDA $ 1,312.6 $ 1,016.2 $ (296.5) -22.6% Adjusted Prope
Slide 6: Second Quarter 2015 Financial Results (Q/Q)
Second Quarter 2015 Financial Results (Q/Q) Quarter Ended June 30, 2015 vs Quarter Ended March 31, 2015 $ in millions, except per share information 1Q15 2Q15 $ Change % Change Net Revenue $ 3,011.6 $ 2,921.4 $ (90.2) -3.0% Adjusted Property EBITDA $ 1,050.5 $ 1,016.2 $ (34.4) -3.3% Adjusted Property
Slide 7: LVS Increasing Return of Capital to Shareholders
LVS Increasing Return of Capital to Shareholders Over $11.0 Billion of Capital Returned to Shareholders Over Last 14 Quarters LVS Recurring Dividends per Share1 In the fourth quarter of 2014, the LVS Board of Directors increased the LVS recurring dividend by 30.0% to $2.60 per share for the 2015 c
Slide 8: SCL Also Increasing Return of Capital to Shareholders
SCL Also Increasing Return of Capital to Shareholders Over US$7.2 Billion of Capital Returned to Shareholders By 3Q15 ² SCL Recurring Dividends per Share (HK$)1 The SCL Board of Directors increased the SCL 2015 $3.00 dividend to HK$1.99 per share, including an $2.50 interim dividend of HK$0.99 per
Slide 9: LVS Generates Greater Forward Dividend Yield than the S&P500 Index
LVS Generates Greater Forward Dividend Yield than the S&P500 Index 2015 Forward Dividend Yield of LVS and S&P5001 Sensitivity of LVS Dividend Yield 5.5% 5.5% Dividend 5.2% Yield as of 5.0% 4.7% 5.0% 4.7% 7/21/15² 4.5% 4.5% 4.3% 4.0% 4.0% 3.7% 3.5% 3.5% +250 bps 3.3% 3.0% 2.9% 3.0% 2.5% 2.5% 2.2% 2.0
Slide 10: Strong Cash Flow, Balance Sheet and Liquidity
Strong Cash Flow, Balance Sheet and Liquidity Flexibility for Future Growth Opportunities and Increasing Return of Capital At June 30, 2015: Trailing Twelve Months Adjusted Property EBITDA – $4.70 billion Trailing Twelve Months LVS Dividends Paid – $1.84 billion Trailing Twelve Months SCL Divi
Slide 11: Macao Operating Performance (Y/Y)
Macao Operating Performance (Y/Y) Quarter Ended June 30, 2015 vs Quarter Ended June 30, 2014 Macao Property Operations Adjusted Property EBITDA and Adjusted Property EBITDA Margin Actual Hold-Normalized ($MM) -30.1% -30.0% $1,000 60% $900 $801.3 50% $800 $752.5 $700 40% $600 $559.8 $526.5 $500 34.0%
Slide 12: Macao Operating Performance (Q/Q)
Macao Operating Performance (Q/Q) Quarter Ended June 30, 2015 vs Quarter Ended March 31, 2015 Macao Property Operations Adjusted Property EBITDA and Adjusted Property EBITDA Margin Actual Hold-Normalized ($MM) +6.1% -0.2% $700 60% $600 $559.8 50% $527.7 $527.7 $526.5 $500 40% $400 32.2% 30% 31.7% 30
Slide 13: Macao: Diversified and Stable Sources of Departmental Profit
Macao: Diversified and Stable Sources of Departmental Profit For Las Vegas Sands and Sands China Macao Departmental Profit Contribution by Segment¹ TTM 2Q14 TTM 2Q15 Other 2% VIP 17% VIP 12% Other 2% Mall 12% Mall 8% Mass Tables 53% Mass Tables 51% Hotel 12% Hotel 15% Slots 8% Slots 8% Mass Tables /
Slide 14: Macao: SCL Base Mass Showing Greater Stability Than Premium Mass
Macao: SCL Base Mass Showing Greater Stability Than Premium Mass in Current Softer Market SCL Base Mass Table Win by Quarter SCL Premium Mass Table Win by Quarter SCL Departmental Profit Margin: 40% - 50% SCL Departmental Profit Margin: 25% - 40% Avg. Win per Table per Day: $7,079 Avg. Win per Table
Slide 15: Executing Our Mass Strategy in Macao
Executing Our Mass Strategy in Macao Family-friendly Entertainment World Class Concerts, Sporting Events Portfolio of Nearly and Other Entertainment Offerings 9,300 Suites and Hotel Rooms Over 1.5 million sq. feet of World Class Shopping The Broadest and Deepest Market-Leading Customer Database Mass
Slide 16: Macao Mass Visitation Drivers
Macao Mass Visitation Drivers Future Growth Drivers As a result, Macao’s Mass visitors will: More efficient and affordable Come From Farther transportation infrastructure Away Greater number of hotel rooms Stay Longer and non-gaming offerings in Macao Spend More On: • Dining Additional t
Slide 17: Strong Growth in Mainland Chinese Visitation to Macao
Strong Growth in Mainland Chinese Visitation to Macao Strongest Growth Realized in Provinces Served by High Speed Rail Year-Over-Year Visitation Growth Mainland Chinese Visitation to Macao Twelve Months Ended May 31, Population GDP Per Penetration Province 2014 2015 % Change (MM) Capita (US$) Rate G
Slide 18: Expanding Our Critical Mass on the Cotai Strip
Expanding Our Critical Mass on the Cotai Strip The Parisian Macao Rendering of The Parisian Macao The Parisian Macao is a $2.7 billion themed, aspirational destination Integrated Resort Construction continues to progress Hotel rooms and suites: 3,000+ Gaming capacity: ~450 table games and 2,
Slide 19: Expanding Our Critical Mass on the Cotai Strip
Expanding Our Critical Mass on the Cotai Strip The St. Regis Tower at Sands Cotai Central Rendering of The St. Regis Tower St. Regis branded 5-star hotel and serviced apartments to complement the existing portfolio of brands on the Cotai Strip Construction continues to progress Hotel rooms and
Slide 20: Macao Market Annual EBITDA Market Share by Operator
Macao Market Annual EBITDA Market Share by Operator Historical EBITDA Market Share1,2 SCL Macao Property Operations All Others Macao Leader in Market Share 40% of EBITDA 80% 72% 68% 66% 10% 9% 30% 60% 10% 16% 14% 13% 20% 40% 14% 12% 11% 34% 32% 28% 14% 15% 14% 10% 20% 18% 18% 18% 0% 0% 2012 2013 TTM
Slide 21: Marina Bay Sands Operations
Marina Bay Sands Operations¹ Record Mass Win in Local Currency Terms Adjusted Property EBITDA Adjusted property EBITDA of $363.3 million, a decrease of 13.0% and Adjusted Property EBITDA Margin (Adjusted Property EBITDA decreased 6.4% on a constant-currency Actual Hold-Normalized basis) ($MM) Ho
Slide 22: Singapore: Diversified and Stable Sources of Departmental Profit
Singapore: Diversified and Stable Sources of Departmental Profit For Las Vegas Sands Singapore Departmental Profit Contribution by Segment TTM 2Q14¹ TTM 2Q15¹ VIP VIP Other 15% Other 14% 4% 4% Mall Mass Tables Mass Tables 37% Mall 7% 37% 8% Hotel Hotel 18% 16% Slots Slots 20% 20% Mass Tables / Slots
Slide 23: Asia Retail Mall Portfolio Continues to Generate Strong Growth
Asia Retail Mall Portfolio Continues to Generate Strong Growth in Revenue and Operating Profit Trailing Twelve Months Retail Mall Revenue ($MM) TTM 2Q15 Sales per Sq. Foot² $600 $569 $586 $536 $551 $512 $500 $171 MBS: $171 $1,393 $169 $167 $160 $400 SCC: $65 $61 $1,004 $52 $57 $45 $300 Four Seasons:
Slide 24: Disciplined Execution of Our Global Growth Strategy
Disciplined Execution of Our Global Growth Strategy As the global leader in 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 Resort developme
Slide 25: Sanes
Sanes LAS VEGAS SANDS CORP.
Slide 26: Appendix
Appendix Sanes LAS VEGAS SANDS CORP.
Slide 27: Historical Hold-Normalized Adj. Property EBITDA
Historical Hold-Normalized Adj. Property EBITDA1 $ in millions 2Q14 3Q14 4Q14 1Q15 2Q15 Macao Property Operations Reported $ 801.3 $ 809.0 $ 711.2 $ 527.7 $ 559.8 Hold-Normalized $ 752.5 $ 772.1 $ 686.2 $ 527.7 $ 526.5 Marina Bay Sands Reported $ 417.8 $ 351.7 $ 518.5 $ 415.3 $ 363.3 Hold-Normalized
Slide 28: Capital Expenditures Expectations
Capital Expenditures Expectations Future Investments Include The Parisian Macao, St. Regis at SCC and Maintenance ($MM) LVS Capex Expectations $3,000 $2,500 $2,000 $1,925 $375 $1,449 $1,510 $1,500 $150 $107 $19 $40 $1,179 $49 $825 $898 $190 $1,000 $860 $800 $830 $210 $390 $60 $100 $300 $192 $75 $125
Slide 29: Debt Maturity Profile
Debt Maturity Profile Debt Maturity by Year at June 30, 2015 ($MM) $6,000 $5,146 $5,000 $4,000 2,115 $3,000 $2,293 $2,000 1,808 $1,515 1,105 $1,000 803 $328 218 1,155 1,222 $340 $48 $97 493 180 340 $0 2015 2016 2017 2018 2019 2020 2021 SCL MBS USRG LVSC % of Total <1% 1% 3% 16% 23% 53% 3% Long Term
Slide 30: MBS – Credit Collections Remain Healthy
MBS – Credit Collections Remain Healthy Reserve Balance Of $383 Million Represents 38.5% of Gross A/R Casino Credit Collections Remain Stable ($MM) $450 $418 $408 $403 $378 $368 $361 $375 $345 $342 $326 $314 $311 $317 $281 $272 $291 $281 $300 $250 $271 $225 $203 $146 $150 $75 $40 $0 2Q10 3Q10 4Q10 1
Slide 31: Las Vegas Operations
Las Vegas Operations Adjusted Property EBITDA Low hold contributed to a decrease in Adjusted and Adjusted Property EBITDA Margin property EBITDA of 18.0% to $54.2 million Actual Hold-Normalized ($MM) — On a hold-normalized basis, adjusted property EBITDA increased 21.1% to reach $85.3 million $100
Slide 32: Sands Bethlehem Operations
Sands Bethlehem Operations Strong Quarter for Leading Tri-State Region Property Adjusted Property EBITDA Adjusted property EBITDA increased 22.2% to $34.1 and Adjusted Property EBITDA Margin million ($MM) Table games drop increased 10.1% to reach $286.9 $40 $34.1 40% million, driven by an 11.3%
Slide 33: Macao Market Background and Infrastructure Slides
Macao Market Background and Infrastructure Slides
Slide 34: VIP Gaming Represents the Majority of Total Macao GGR
VIP Gaming Represents the Majority of Total Macao GGR… …but Mass Tables and Slots Generate the Bulk of Gaming Operating Profit Composition of Macao Market Gross Gaming Revenue and Est. Gaming Operating Profit¹ 2Q15 TTM 2Q15 $7,120M $1,662M $35,071M $7,940M 100% 100% 24% 26% 80% 80% 56% 58% 60% 60% ~
Slide 35: The Mass Business Remains the Principal Profit Pool
The Mass Business Remains the Principal Profit Pool and the Primary Driver of Earnings Growth in Macao Macao Market VIP and Mass Gaming Estimated Operating Profit 1,2 ($MM) (XX%) = % of total operating profit for period $12,000 $10,000 $9,621 $9,108 $2,661 (28%) $7,940 $8,000 $7,307 $2,985 (33%) $2,
Slide 36: Five Trends that Should Contribute To Growth in the Macao Market
Five Trends that Should Contribute To Growth in the Macao Market In The Future 200 million Chinese are expected to travel outside of China by 1 2020, compared to 107 million in 2014 Infrastructure and transportation connectivity throughout 2 China, especially in the Pearl River Delta region, will be
Slide 37: China Is The World's Largest and Fastest Growing Outbound Tourism Market
1 China Is The World’s Largest and Fastest Growing Outbound Tourism Market Outbound Travel from China Outbound Travel Penetration¹ 350 50% Expenditure (US$bn) 44.5% $306 China 300 Chinese outbound 45% tourists (millions) Japan $268 40% Korea CLSA estimates 250 Taiwan $234 35% CAGR 2009-2013 2012-202
Slide 38: Chinese Middle Class Consumption Growth
1 Chinese Middle Class Consumption Growth Chinese Middle Class Consumption in 2030 is Projected to Reach $10.0 trillion Global Middle Class Consumption in 2030 (US$ trillion) (US$ trillion) $15 $12.8 $10.0 $10 $5 $4.0 $2.3 $2.5 $1.1 $1.2 $1.2 $1.3 $1.4 $- France Brazil Mexico Germany Russia Japan In
Slide 39: Strong Growth in Mainland Chinese Visitation to Macao
Strong Growth in Mainland Chinese Visitation to Macao 1 Strongest Growth Realized in Provinces Served by High Speed Rail Year-Over-Year Visitation Growth Mainland Chinese Visitation to Macao Twelve Months Ended May 31, Population GDP Per Penetration Province 2014 2015 % Change (MM) Capita (US$) Rate
Slide 40: 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) at a cost of 862 yuan (~US$140) per one way ticket Guangzhou – Zhuhai Inter
Slide 41: Infrastructure: Meaningful Improvements Throughout the Pearl River Delta Region
Infrastructure: Meaningful Improvements 2 Throughout the Pearl River Delta Region Guangzhou Wuhan – Guangzhou High-Speed Rail Population: 13M • 3.5 hour train ride GDP Per Capita: US$14,000 • 75-80 trains in each direction per day Guangzhou – Shenzhen – Hong Kong Rail Guangzhou – Zhuhai Intercity Ra
Slide 42: Chinese Day-Trip and Overnight Visitation To Macao
Chinese Day-Trip and Overnight 3 Visitation To Macao Mainland China Day-Trip Visitors to Macao Mainland China Overnight Visitors to Macao Growth -9% +19% +28% 0% +10% +19% +11%¹ Growth -1% +22% +16% +10% +10% +9% 0%¹ (MM) (MM) 14.0 12.0 12.0 11.5 11.6 10.0 9.7 9.4 8.9 10.0 9.7 8.1 8.8 8.8 8.0 7.3 8.
Slide 43: Visitation to Macao Can Meaningfully Grow
3 Visitation to Macao Can Meaningfully Grow 47.2 Million Residents of Mainland China Visited Hong Kong in 2014 Mainland China Visitation to Macao and Hong Kong Macao -5% +20% +22% +5% +10% +14% Hong Kong +6% +26% +24% +24% +17% +16% (MM) 50.0 47.2 45.0 40.7 40.0 In 2014 Hong 34.9 Kong Received 35.0
Slide 44: Opportunity for Increased Overnight Visitation and Length of Stay In Macao
Opportunity for Increased Overnight Visitation 3 and Length of Stay In Macao Composition of 2014 Visitation from Mainland China Avg. Length of Stay for Mainland Chinese Total 2014 Mainland Daytrip Visitors Overnight Visitors Overnight Visitors in 2014 Chinese Visitor Nights¹ (MM) (Days) (MM) 30.0 3.
Slide 45: Hengqin Island Expands Critical Mass of Tourism Offerings
Hengqin Island Expands Critical Mass of 4 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 welcomed by President Xi Jinping as a strategic zone for cooperation among Guangdong Province, Hong Ko
Slide 46: Market Leading Hotel Capacity at SCL
5 Market Leading Hotel Capacity at SCL Sands China Operates 36% 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 China ` 9,277 52
Slide 47: Market Leading Hotel Capacity at SCL
5 Market Leading Hotel Capacity at SCL Projected Macao Market 4/5 Star Hotel Rooms at December 31, 2017 Macao Market Gaming Operator Hotel Rooms at December 31, 20171 Hotel % of Gaming % of Total 14,000 12,677 Gaming Operator Rooms Operators Market Sands China ` 12,677 45% 35% 12,000 Galaxy Entertai
Slide 48: Supplemental Sands China Information
Supplemental Sands China Information
Slide 49: SCL's Mass Gaming Segment Impacted by Headwinds
SCL’s Mass Gaming Segment Impacted by Headwinds… Especially at the High-End of the Mass Market Mass Table, Slot and ETG Win Per Day Cotai Strip Properties Peninsula Total ($MM) $20.0 $15.7 $15.0 $13.3 $12.2 $10.3 $10.0 $7.0 $5.3 $5.2 $5.0 $4.2 $2.4 $1.9 $1.0 $0.7 $0.0 Venetian Sands Cotai Plaza Casi
Slide 50: SCL: Mass Table Segment
SCL: Mass Table Segment Mass Business in Macao is Facing Headwinds (Particularly at the “High-End” of Mass) Mass Table Win Mass Table Win per Table per Day2 ($MM) $1,600 60% $16,000 55% $1,400 $1,337 $14,000 $13,210 $1,249 50% $1,219 $1,218 $12,143 $11,963 $1,200 45% $12,000 $11,518 $1,061 $1,106 $1
Slide 51: SCL: Slot and ETG Segment
SCL: Slot and ETG Segment Macao Slot and ETG Win Macao Slot and ETG Win per Unit per Day ($MM) $220 60% $500 $200 $450 $184 $424 $174 $178 $176 50% $401 $180 $400 $388 $166 $362 $157 $353 $160 $149 $350 $327 40% $310 $299 $140 $136 $134 $300 $285 $120 $250 32.6% 32.7% 32.2% 32.5% 32.9% 30% $100 31.5
Slide 52: SCL: VIP Rolling Segment
SCL: VIP Rolling Segment VIP Segment in Macao Continues to Decline Rolling Win Rolling Win per Table per Day ($MM) $1,600 30% $45,000 $1,445 $39,167 $40,000 $1,400 $1,303$1,327 25% $1,184 $35,000 $32,837 $1,200 $1,117 $32,568 $30,365 $1,019 18.9% 20% $29,893 $30,000 $1,000 16.8% 18.4% 18.3% $838 $24
Slide 53: Macao Annual Operating Performance
Macao Annual Operating Performance Most Diversified and Defensive Cash Flows in the Macao Market SCL Departmental Revenue and Profit Margins – TTM 2Q15 vs TTM 2Q14 Gross Revenue (US$MM) Departmental Profit Department TTM 2Q14 TTM 2Q15 YoY Growth (%) Margin Range Retail Mall $353 $414 17% 85%+ Hotel
Slide 54: Macao Second Quarter Operating Performance
Macao Second Quarter Operating Performance Most Diversified and Defensive Cash Flows in the Macao Market SCL Departmental Revenue and Profit Margins – Quarter Ended 6/30/2015 vs 6/30/2014 Gross Revenue (US$MM) Quarter Ended Quarter Ended Departmental Profit Department 6/30/2014 6/30/2015 YoY Growth
Slide 55: Macao Annual Non-Gaming Revenue
Macao Annual Non-Gaming Revenue Most Diversified and Defensive Cash Flows in the Macao Market SCL Gross Non-Gaming Revenue ($MM) $2,000 $1,626 $1,597 $1,500 $1,381 $1,030 $1,000 $817 $688 $576 $593 $500 $198 $40 $49 $0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 TTM 2Q15 Non-Gaming Revenue (US
Slide 56: Sanes
Sanes LAS VEGAS SANDS CORP.