Las Vegas Sands Corp. · NYSE:LVS
Las Vegas Sands — Q3 2020 Earnings Presentation
56 slides from Las Vegas Sands's earnings presentation, Oct 21, 2020
Slide 1: 3Q20 Earnings Call Presentation
3Q20 Earnings Call Presentation October 21, 2020
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: 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 previously announced capital expenditure programs in both Macao and Singapore Maintaining strong balance sheet and liquidity re
Slide 4: Current Operating Status: Recovery Process Continuing in Each of Our Markets
Current Operating Status: Recovery Process Continuing in Each of Our Markets Macao: − Our gaming and non-gaming operations in Macao are open, as was the case throughout 2Q20 and 3Q20 − The low levels of revenue generated in 3Q20 reflect meaningfully reduced visitation to the market − Beginning in
Slide 5: Third Quarter 2020 Financial Results
Third Quarter 2020 Financial Results Quarter Ended September 30, 2020 vs Quarter Ended September 30, 2019 ($ in US millions, except per share information) LVS Consolidated Third Quarter Financial Results 3Q19 3Q20 $ Change Net Revenue $3,250 $586 ($2,664) Net Income (Loss) 669 (731) (1,400) Diluted
Slide 6: LVS Consolidated Operations EBITDA Performance
LVS Consolidated Operations EBITDA Performance Quarter Ended September 30, 2020 vs Quarter Ended September 30, 2019 LVS Consolidated Adjusted Property EBITDA ($ in US millions) Adjusted Property EBITDA Hold-Normalized Adj. Prop. EBITDA $1,400 $1,200 $1,283 $1,259 $1,000 $800 $600 $400 $200 $0 -$203
Slide 7: LVS Consolidated Operations EBITDA Performance
LVS Consolidated Operations EBITDA Performance Quarter Ended September 30, 2020 vs Quarter Ended June 30, 2020 LVS Consolidated Adjusted Property EBITDA ($ in US millions) Adjusted Property EBITDA Hold-Normalized Adj. Prop. EBITDA $0 -$184 -$203 -$200 -$400 -$514 -$547 -$600 2Q20 3Q20 2Q20 3Q20 EBIT
Slide 8: Sequential Improvement in EBITDA Performance
Sequential Improvement in EBITDA Performance Quarter Ended September 30, 2020 vs Quarter Ended June 30, 2020 ($ in US millions) Adjusted Hold-Normalized Property EBITDA Adjusted Property EBITDA 2Q20 3Q20 2Q20 3Q20 Sands China ($312) ($233) ($285) ($240) Increase in Adj. EBITDA $79 $45 % Decrease in
Slide 9: Sands China Ltd.
Sands China Ltd. Adjusted Property EBITDA Loss of $233 Million in 3Q20 Adjusted Property EBITDA Adjusted property EBITDA loss of $233 million ($ in US millions) Actual Hold-Normalized $1,000 Mass (non-Rolling tables and slots): $800 ─ Non-Rolling table win: $55 million $600 $755 $757 ─ Slot win:
Slide 10: Marina Bay Sands
Marina Bay Sands Adjusted Property EBITDA of $70 Million in 3Q20 Adjusted Property EBITDA Adjusted property EBITDA of $70 million ($ in US millions) Actual Hold-Normalized $450 Mass (non-Rolling tables and slots): $435 $396 ─ Non-Rolling table win: $75 million $300 ─ Slot win: $119 million Mas
Slide 11: Las Vegas Operations
Las Vegas Operations Adjusted Property EBITDA Loss of $40 Million in 3Q20 Adjusted Property EBITDA ($ in US millions) Adjusted property EBITDA loss of $40 million Actual Hold-Normalized $150 Hotel room revenue fell 71.5% to $41 million compared to 3Q19 − Occupancy decreased 50.9 pts to 43.7 year
Slide 12: Investment Grade Balance Sheet Strength
Investment Grade Balance Sheet Strength As of September 30, 2020: Trailing Twelve Months Ended September 30, 2020: Cash Balance – $2.40 billion Cash Flow from Operations – ($0.07) billion Debt1 – $13.89 billion Adjusted Property EBITDA – $1.08 billion Net Debt1 – $11.49 billion LVS Divid
Slide 13: Debt Maturity Profile
Debt Maturity Profile Debt Maturity by Year ($ in US millions) $3,476 $3,500 $3,321 $3,000 1,021 1,676 $2,500 $2,000 $1,861 $1,887 500 $1,900 $1,500 1,000 $1,000 1,900 1,800 1,750 1,800 $750 $700 $500 800 750 700 1 $15 $61 $61 $0 $0 % of 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Total 0
Slide 14: Capital Expenditures Expectations
Capital Expenditures Expectations Future Planned Investments Composed of Income Producing Projects and Maintenance ($ US in millions) $3,000 LVS Capex Expectations $2,400 $2,180 $1,800 $981 $1,350 $1,400 $1,300 $50 $1,125 $1,075 $1,200 $150 $949 $273 $837 $300 $200 $900 $75 $350 $800 $194 $211 $25 $
Slide 15: Ongoing Strategic Reinvestment in Industry-Leading Portfolio of Integrated Resorts
Ongoing Strategic Reinvestment in Industry-Leading Portfolio of Integrated Resorts in Macao and Singapore Through Future Total Expected Timeframe The Londoner Macao: 3Q20 Spend Spend • Renovation, expansion and rebranding of SCC to The ~$610M ~$740M ~$1.35B • Phased completion throughout 2020 and Lo
Slide 16: The Investment Case for Las Vegas Sands
The Investment Case for Las Vegas Sands The global leader in Integrated Resort development and operation Industry-leading, investment grade balance sheet strength A unique MICE-based business model delivering industry-leading returns Unmatched development and operating track record creates c
Slide 17: Disciplined Execution of Our Global Growth Strategy
Disciplined Execution of Our Global Growth Strategy Focused on the Most Promising Global Development Opportunities Uniquely positioned to bring our unmatched track record and powerful convention-based business model to the world’s most promising Integrated Resort development opportunities Balanc
Slide 18: Appendices
Appendices Sands
Slide 19: Cash and Available Liquidity - LVS
Cash and Available Liquidity - LVS Illustrative “Near Zero” Revenue Scenario ($ in US millions) Cash and Available Liquidity at September 30, 2020 SCL MBS Las Vegas Corp./Other Total Cash $1,041 $322 $150 $884 $2,397 1 Revolver Availability 2,018 433 1,499 3,950 2 Cash and Available Liquidity $3,059
Slide 20: $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 21: 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 20222 - Unsecured Revolver Sands China Ltd. Waived Waived Unsecured Revolver US$2,018 Million Until January 20223 Until January
Slide 22: Geographically Diverse Sources of EBITDA
Geographically Diverse Sources of EBITDA EBITDA Contribution by Geography in Trailing Twelve Months Ended December 31, 2019 ($ in US millions) LVS 2019 Consolidated Adjusted Property EBITDA1 $5,389M United States 10% Singapore 31% Macao 59% 1. The Macao region includes adjusted property EBITDA from
Slide 23: Retail Mall Portfolio in Asia
Retail Mall Portfolio in Asia Trailing Twelve Months Retail Mall Revenue ($ in US millions) $800 $696 $712 1 $700 $657 $600 $182 $185 1 TTM 3Q20 Sales $184 $533 per Sq. Foot² $500 $52 $53 $441 1 $47 $145 $72 $70 MBS $400 $63 $1,225 $37 $127 Parisian Macao $142 $151 $54 $407 $300 $137 $30 $44 SCC $11
Slide 24: Retail Portfolio in Asia
Retail Portfolio in Asia ($ per Sq. Foot, Unless Otherwise Indicated) 2 3Q20 Sales per Sq. Ft. GLA1 Occupancy % (Sq. Ft) at Period End TTM 3Q20 TTM 2Q20 TTM 1Q20 TTM 4Q19 TTM 3Q19 The Shoppes at Marina Bay Sands 620,213 95.0% $1,225 $1,500 $1,917 $2,062 $2,028 Shoppes at Venetian 812,934 84.9% $935
Slide 25: Market Leading Hotel Capacity
Market Leading Hotel Capacity SCL is the Clear 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 R
Slide 26: 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 >$14 billion today, ~$15 billion by year end 2020 ~290 Suites (Opened 400 Suites Approximately 30 million
Slide 27: 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 28: Marina Bay Sands Expansion
Marina Bay Sands Expansion Sands
Slide 29: 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 30: Marina Bay Sands Expansion
Marina Bay Sands Expansion A Development Agreement with the Singapore Tourism Board Will Allow an Expansion of Marina Bay Sands 30
Slide 31: 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. 31
Slide 32: Macao Market Background and Infrastructure Slides
Macao Market Background and Infrastructure Slides
Slide 33: Market-Leading ~$15 Billion of Investment
Market-Leading ~$15 Billion of Investment Investing in Macao’s Future as a Leisure & Business Tourism Destination Industry-Leading Integrated Resort Portfolio − Portfolio of ~12,400 suites and hotel rooms − Addition of ~2 Million sq. feet of new luxurious hotel suite inventory in 2020 The Entert
Slide 34: Macao Visitation Opportunity
Macao Visitation Opportunity Business & Leisure Tourism Expenditure Drivers Future Growth Drivers As a result, Macao’s Mass visitors will More efficient and affordable Come From Farther Away transportation infrastructure Stay Longer Greater number of hotel rooms and non-gaming offerings in M
Slide 35: Market Leading Hotel Capacity at SCL
Market Leading Hotel Capacity at SCL Projected Macao Market 4/5 Star Hotel Rooms at December 31, 2020 Cotai Total Market New Capacity % of Gaming % of Gaming % of Total Gaming Operator Rooms Operators Rooms Operators Market 16,000 Sands China 12,112 49% 12,401 44% 33% Galaxy Entertainment 3,920 16%
Slide 36: Supplemental Data
Supplemental Data Sands
Slide 37: Historical Hold-Normalized Adjusted Property EBITDA
Historical Hold-Normalized Adjusted Property EBITDA1 ($ in US millions) 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 2 Macao Operations Reported $754 $786 $858 $765 $755 $811 $67 ($312) ($233) Hold-Normalized $754 $820 $845 $765 $757 $788 $84 ($285) ($240) Marina Bay Sands Reported $419 $362 $423 $3
Slide 38: Macao Market: Mass Gaming Segment
Macao Market: Mass Gaming Segment Macao Market Mass Gaming Revenue (Tables & Slots) & Mass Win-per-Visit1 ($ US in millions) $6,000 $1,400 $5,440 $5,523 $5,608 $5,500 $5,356 $5,251 $4,955 $4,864 $1,200 $5,000 $4,706 $4,841 $4,589 $4,449 $4,419 $4,500 $4,169 $3,989 $4,146 $4,017 $1,000 $4,000 $3,919
Slide 39: Sands China Mass Market Table Update
Sands China Mass Market Table Update SCL Base Mass Table Win by Quarter SCL Premium Mass Table Win by Quarter Sands China Departmental Profit Margin1: 35% - 45% Sands China Departmental Profit Margin1: 25% - 40% ($ in US millions) ($ in US millions) Avg. Win per Table per Day: $280 $1,000 Avg. Win p
Slide 40: 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 Avg. Win per Table per Day: $420 Avg. Win per Unit per Day: $45 ($ in US millions) ($ in US millions) $1,800 $200 $1,600 $180 $1,400 $1,464 $160 $1,436 $160 $161 $1,200 $140 $120 $1,000 $100 $800
Slide 41: Macao Market: Mass Gaming Revenue
Macao Market: Mass Gaming Revenue Macao Market Mass Gaming Revenue ($ 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 $19
Slide 42: Macao Market: VIP Gaming
Macao Market: VIP Gaming Macao Market VIP Gaming Revenue ($ 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 $17,337 Growth ('18 v '17) 21.0%
Slide 43: Sands China VIP Table Update
Sands China VIP Table Update SCL Rolling Volume by Quarter SCL Rolling Win by Quarter ($ in US billions) ($ in US millions, except per table amounts) $20 $600 Avg. Win per Table per Avg. Win per Table per Day: $19,011 Day: $2,226 $16 $14.58 $400 $439 $12 $8 $200 $4 $43 $1.05 $0 $0 3Q19 3Q20 3Q19 3Q2
Slide 44: Sands ECO360
Sands ECO360 Sands
Slide 45: Sands ECO360
Sands ECO360 Industry Leading Global Sustainability Program The Sands ECO360 Global Sustainability program reflects our vision to lead our industry in sustainable development and integrated resort operations 45
Slide 46: Global Goals: Our 2016-2020 Targets
Global Goals: Our 2016-2020 Targets • We have aligned our global sustainability targets for 2016-2020 with three key, measurable, UN Sustainable Development Goals (SDGs) and our emissions reduction goals are approved by science-based targets: Emissions Water Waste Double the global rate of improve
Slide 47: 2019 Sands ECO360
2019 Sands ECO360 Key Accomplishments: Employee engagement: During 2019, our Team Members continued to embed sustainability into our culture, 1 contributing to more than 240,000 Sands ECO360 Actions to protect the environment, which allowed us to reach our 1 million Sands ECO360 action by 2020 goal
Slide 48: Sustainability Awards and Certifications
Sustainability Awards and Certifications Recognition on a Local and Global Level Las Vegas Sands United States Macao Singapore Dow Jones Sustainability Indices Better Buildings Challenge LEED Silver for Building Design and LEED Platinum for Building Operations (2015, 2016, 2018, 2019) The Venetian R
Slide 49: Reconciliation of Non-GAAP Measures and Other Financial Information
Reconciliation of Non-GAAP Measures and Other Financial Information
Slide 50: Reconciliation of Net Income (Loss) to Consolidated Adjusted Property EBITDA
Reconciliation of Net Income (Loss) to Consolidated Adjusted Property EBITDA ($ in US millions) 1Q19 2Q19 3Q19 4Q19 2019 1Q20 2Q20 3Q20 TTM 3Q20 Net income (loss) $744 $1,108 $669 $783 $3,304 ($51) ($985) ($731) ($984) Add (deduct): Income tax expense (benefit) 85 236 82 65 468 25 (54) (17) 19 Loss
Slide 51: Non-GAAP Measures: Adjusted Net Income/Loss and Adjusted EPS
Non-GAAP Measures: Adjusted Net Income/Loss; Hold-Normalized Adjusted Net Income/Loss; Adjusted Earnings/Loss Per Diluted Share; and Hold-Normalized Adjusted Earnings/Loss Per Diluted Share ($ in US millions, except per share data) Three Months Ended Nine Months Ended September 30, September 30, 202
Slide 52: Non-GAAP Trailing Twelve Month Supplemental Schedule
Non-GAAP Trailing Twelve Month Supplemental Schedule ($ in US millions) 3Q19 4Q19 1Q20 2Q20 3Q20 TTM 3Q20 Cash Flows From Operations $900 $1,242 ($370) ($652) ($294) ($74) Adjust for: Provision for doubtful accounts (4) (15) (18) (17) (25) (75) Foreign exchange gains (losses) (11) 30 39 (5) (5) 59 O
Slide 53: Historical Hold-Normalized Adj. Property EBITDA
Historical Hold-Normalized Adj. Property EBITDA1 ($ in US millions) 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 2 Macao Operations Reported $754 $786 $858 $765 $755 $811 $67 ($312) ($233) Hold-Normalized Adjustment - 34 (13) - 2 (23) 17 27 (7) Hold-Normalized $754 $820 $845 $765 $757 $788 $84 ($285
Slide 54: Supplemental Information 3Q20 and 3Q19
Supplemental Information 3Q20 and 3Q19 ($ in US millions) Three Months Ended September 30, 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 3Q20 and YTD 3Q19
Supplemental Information YTD 3Q20 and YTD 3Q19 ($ in US millions) Nine Months Ended September 30, 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
Slide 56: Sands
Sands