Las Vegas Sands Corp. · NYSE:LVS
Las Vegas Sands — Q4 2014 Earnings Presentation
58 slides from Las Vegas Sands's earnings presentation, Jan 28, 2015
Slide 1: 4Q14 Earnings Call Presentation
The Venetian Macao Sands Cotai Central, Macao Marina Bay Sands, Singapore The Parisian, Macao 4Q14 Earnings Call Presentation January 28, 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 growth in Asia, with the pre-eminent destination Integrate
Slide 4: Fourth Quarter 2014 Highlights
Fourth Quarter 2014 Highlights Steady Operating Quarter with Increasing Returns of Capital to Shareholders Adjusted diluted EPS increased 27.8% to $0.92 per share Consolidated adjusted property EBITDA increased 10.9% to $1.35 billion Macao – Adjusted property EBITDA decreased 14.9% to $711.2 m
Slide 5: Fourth Quarter 2014 Financial Results
Fourth Quarter 2014 Financial Results $ in millions, except per share information 4Q13 4Q14 $ Change % Change Net Revenue $ 3,655.7 $ 3,416.0 $ (239.7) -6.6% Adjusted Property EBITDA¹ $ 1,214.0 $ 1,346.1 $ 132.1 10.9% Adjusted Property EBITDA Margin¹ 33.2% 39.4% 620 bps Adjusted Diluted EPS $ 0.72 $
Slide 6: Macao – Growth in Non-gaming Segments; VIP Soft; Singapore – Growth in Mass Gaming
Macao – Growth in Non-gaming Segments; VIP Soft Singapore – Growth in Mass Gaming and Nongaming Segments Macao – Growth in retail mall and hotel revenue; VIP and premium mass gaming remain soft — Mass table win decreased 9.2% to $1.11 billion (compared to a 16.1%¹ decrease in the Macao market) — B
Slide 7: LVS Increasing Return of Capital to Shareholders
LVS Increasing Return of Capital to Shareholders Over $9.6 Billion of Capital Returned to Shareholders Over Last 12 Quarters LVS Recurring Dividends per Share1 In the fourth quarter of 2014, the LVS Board of Directors increased the LVS recurring dividend by $3.00 $2.60 30.0% to $2.60 per share for
Slide 8: SCL Also Increasing Return of Capital to Shareholders
SCL Also Increasing Return of Capital to Shareholders Nearly US$5.2 Billion³ of Capital Returned to Shareholders Over Last 3 Years SCL Recurring Dividends per Share (HK$)1 In January 2015, the SCL Board of Directors $3.00 increased the SCL recurring interim dividend by $2.50 13.8% to HK$0.99 per s
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% 5.2% Dividend 5.0% 5.0% Yield as of 4.6% 4.6% 1/27/15² 4.5% 4.5% 4.3% 4.0% 4.0% 3.7% 3.5% +250 bps 3.5% 3.3% 3.0% 3.0% 2.9% 2.5% 2.5% 2.1% 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 December 31, 2014: Trailing Twelve Months Adjusted Property EBITDA – $5.42 billion Trailing Twelve Months LVS Dividends Paid – $1.61 billion Trailing Twelve Months SCL
Slide 11: Macao Operating Performance
Macao Operating Performance Most Diversified and Defensive Cash Flows in the Macao Market Macao Property Operations Adjusted Property EBITDA and Adjusted Property EBITDA Margin Actual Hold-Normalized ($MM) -14.9% -20.8% $1,000 60% $900 $866.8 $835.9 50% $800 $711.2 $686.2 $700 40% $600 $500 33.4% 33
Slide 12: 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 Segment FY 2013 FY 2014 VIP 18% VIP 16% Other 2% Other 2% Mall 9% Mall 8% Mass Tables Mass Tables 52% 52% Hotel 12% Hotel 13% Slots 8% Slots 8% Mass Tables / Slo
Slide 13: Macao: Base Mass Showing Greater Stability in Softer Market Than Premium Mass
Macao: Base Mass Showing Greater Stability in Softer Market Than Premium Mass LVS Base Mass Table Win by Quarter LVS Premium Mass Table Win by Quarter LVS Departmental Profit Margin: 40% - 50% LVS Departmental Profit Margin: 25% - 40% Avg. Win per Table per Day: $8,491 Avg. Win per Table per Day: $1
Slide 14: Leadership in Macao's Mass Market
Leadership in Macao’s Mass Market Meaningful Opportunity to Grow Mass Table Business Illustrative Profitability of LVS’s Macao Market Mass Table Offering ($MM)1 Mass Table Win per Unit per Day $10,000 $10,469 $11,000 $12,000 $13,000 $14,000 1,300 $1,898 $1,987 $2,088 $2,278 $2,467 $2,657 # of 1,250
Slide 15: Executing Our Mass Strategy in Macao
Executing Our Mass Strategy in Macao Family-friendly Entertainment World Class Concerts, Sporting Events Portfolio of Nearly and Other Entertainment Offerings 9,300 Suites and Hotel Rooms Over 1.2 million sq. feet of World Class Shopping The Broadest and Deepest Market-Leading Customer Database Mass
Slide 16: Evolution of the Macao Mass Visitor
Evolution of the Macao Mass Visitor Drivers As a result, Macao’s Mass visitors will: More efficient and affordable Come From Farther transportation infrastructure Away Additional tourism attractions in Stay Longer Macao and Hengqin Island Greater number of hotel rooms in Spend More On: M
Slide 17: Strong Growth in Mainland Chinese Visitation to Macao
Strong Growth in Mainland Chinese Visitation to Macao Strongest Growth Realized in Provinces Served by High Speed Rail Year-Over-Year Visitation Growth Mainland Chinese Visitation to Macao¹ Twelve Months Ended December 31, Population GDP Per Penetration Province 2013 2014 % Change (MM) Capita (US$)
Slide 18: Expanding Our Critical Mass on the Cotai Strip: The Parisian Macao
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 is progressing Hotel rooms and suites: 3,000+ Gaming capacity: ~450 table games and 2,500 slo
Slide 19: Expanding Our Critical Mass on the Cotai Strip: The St. Regis Tower
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 is progressing Hotel rooms and suites
Slide 20: Marina Bay Sands Operations
Marina Bay Sands Operations Strong Performance Across Gaming and Non-Gaming Segments Adjusted property EBITDA of $518.5 million, an increase of 100.3% Adjusted Property EBITDA — EBITDA was positively impacted by a $90.1 million property and Adjusted Property EBITDA Margin tax reassessment received
Slide 21: Singapore: Diversified and Stable Sources of Departmental Profit
Singapore: Diversified and Stable Sources of Departmental Profit For Las Vegas Sands Singapore Hold-Normalized Departmental Profit Contribution by Segment 2013¹ 2014¹ Other VIP VIP 5% 12% 18% Other Mall 4% Mass Tables 8% Mass Tables 36% Mall 37% 6% Hotel 18% Hotel 17% Slots Slots 19% 20% Mass Tables
Slide 22: Asia Retail Mall Portfolio Continues to Generate Strong Growth
Asia Retail Mall Portfolio Continues to Generate Strong Growth in Revenue and Operating Profit Trailing Twelve Months Retail Mall Revenue ($MM) TTM 4Q14 Sales $600 per Sq. Foot² $536 $551 $502 $512 $500 $478 MBS: $169 $1,426 $167 $156 $160 $400 $154 SCC: $52 $57 $1,450 $43 $45 $300 $42 Four Seasons:
Slide 23: 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 24: Sanes
Sanes LAS VEGAS SANDS CORP.
Slide 25: Appendix
Appendix Sanes LAS VEGAS SANDS CORP.
Slide 26: Historical Hold-Normalized Adj. Property EBITDA
Historical Hold-Normalized Adj. Property EBITDA1 $ in millions 4Q13 1Q14 2Q14 3Q14 4Q14 Macao Property Operations Reported $ 835.9 $ 939.8 $ 801.3 $ 809.0 $ 711.2 Hold-Normalized $ 866.8 $ 864.8 $ 752.5 $ 772.1 $ 686.2 Marina Bay Sands Reported $ 258.8 $ 435.2 $ 417.8 $ 351.7 $ 518.5 3 3 Hold-Normal
Slide 27: Strong Historical Revenue and EBITDA Growth Over the Last Five Years
Strong Historical Revenue and EBITDA Growth Over the Last Five Years LVS Historical Net Revenue LVS Historical Adjusted Property EBITDA ($MM) ($MM) $16,000 $6,000 $14,584 $5,422 $13,770 $14,000 $5,000 $4,763 $12,000 $11,131 $4,000 $3,791 $3,532 $10,000 $9,411 $3,000 $8,000 $6,853 $2,229 $6,000 $2,00
Slide 28: Strong Historical Adjusted Net Income and Adjusted EPS Growth
Strong Historical Adjusted Net Income and Adjusted EPS Growth Over the Last Five Years LVS Historical Adjusted Net Income LVS Historical Adjusted Diluted Earnings per Share ($MM) $4.00 $3,000 $2,894 $3.58 $3.50 $2,500 $2,399 $3.00 $2.90 $2,000 $2.50 $1,768 $2.14 $1,644 $2.02 $2.00 $1,500 $1.50 $0.98
Slide 29: Capital Expenditures Expectations
Capital Expenditures Expectations Future Investments Include The Parisian Macao, St. Regis at SCC and Maintenance ($MM) LVS Capex Expectations $3,000 $2,500 $2,420 $505 $2,000 $1,449 $1,500 $1,350 $107 $1,100 $40 $1,179 $70 $19 $898 $190 $1,000 $830 $49 $780 $210 $390 $125 $610 $192 $75 $190 $110 $5
Slide 30: Debt Maturity Profile
Debt Maturity Profile Debt Maturity by Year at December 31, 2014 ($MM) $6,000 $5,625 $5,000 2,115 $4,000 $3,000 1,878 $2,160 $2,000 $1,688 1,148 1,043 $1,000 1,632 $330 226 979 $100 $99 180 418 $0 2015 2016 2017 2018 2019 2020 SCL MBS USRG LVSC % of Total 1% 1% 3% 17% 22% 56% Long Term and Low Cost
Slide 31: MBS – Credit Collections Remain Healthy
MBS – Credit Collections Remain Healthy Reserve Balance Is Now $401 Million (40.0% of Gross A/R) Casino Credit Collections Remain Stable ($MM) $450 $418 $408 $403 $378 $368 $361 $375 $345 $342 $326 $314 $311 $317 $281 $272 $300 $250 $271 $225 $203 $146 $150 $75 $40 $0 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4
Slide 32: Las Vegas Operations
Las Vegas Operations Softer Quarter for Asian Baccarat Adjusted Property EBITDA Adjusted property EBITDA was $78.0 million, a and Adjusted Property EBITDA Margin decrease of 11.6% Actual Hold-Normalized ($MM) — On a hold-normalized basis, adjusted property EBITDA was $87.6 million, a decrease of 6
Slide 33: Sands Bethlehem Operations
Sands Bethlehem Operations Record Quarter for Leading Tri-State Region Property Adjusted Property EBITDA Adjusted property EBITDA increased 19.5% to record and Adjusted Property EBITDA Margin $36.2 million ($MM) $40 40% Table games drop increased 8.1% to reach $279.9 million, $36.2 driven by a 1
Slide 34: Macao Market Background and Infrastructure Slides
Macao Market Background and Infrastructure Slides
Slide 35: VIP Gaming Represents 60% of Total Macao GGR
VIP Gaming Represents 60% of Total Macao GGR… …but Mass Tables and Slots Generate ~72% of Gaming Operating Profit 2014 Macao Market Composition of Macao Market Gross Gaming Gross Gaming Revenue Revenue and Est. Gaming Operating Profit2 4Q14 YoY ($MM) Growth $50,000 100% $45,000 $44,008 -25% 28% $40,
Slide 36: The Mass Business is the Principal Profit Pool and Primary Driver of Earnings Growth
The Mass Business is the Principal Profit Pool and the Primary Driver of Earnings Growth in Macao Macao Market VIP and Mass Gaming Estimated Operating Profit ¹ ($MM) $12,000 (XX%) = % of total operating profit for period $10,000 $9,621 $9,108 $2,661 (28%) $8,000 $7,307 $2,985 (33%) $6,026 $2,637 $6,
Slide 37: Macao Base Mass Business Remains More Resilient Than Premium Mass
Macao Base Mass Business Remains More Resilient Than Premium Mass in Softer Current Environment Macao Mass Table and Slot Gross Gaming Revenue ($MM) $20,000 60% $18,000 $17,400 50% $16,000 $15,309 $14,000 39% 36% 40% 33% $11,674 $12,000 30% 30% 31% $10,000 $8,949 30% $8,000 $6,587 16% 20% $6,000 $4,
Slide 38: Five Trends that Should Contribute To Growth in the Macao Market
Five Trends that Should Contribute To Growth in the Macao Market Over the Next Five Years 200 million Chinese are expected to travel outside of China by 1 2020, compared to 83 million in 2012 and 97 million in 2013 Infrastructure and transportation connectivity throughout 2 China, especially in the
Slide 39: China Is The World's Largest and Fastest Growing Outbound Tourism Market
1 China Is The World’s Largest and Fastest Growing Outbound Tourism Market Outbound Travel from China Outbound Travel Penetration¹ 350 50% Expenditure (US$bn) 44.5% $306 China 300 Chinese outbound 45% tourists (millions) Japan $268 40% Korea CLSA estimates 250 Taiwan $234 35% CAGR 2009-2013 2012-202
Slide 40: Strong Growth in Mainland Chinese Visitation to Macao
Strong Growth in Mainland Chinese Visitation to Macao 1 Strongest Growth Realized in Provinces Served by High Speed Rail Year-Over-Year Visitation Growth Mainland Chinese Visitation to Macao¹ Twelve Months Ended December 31, Population GDP Per Penetration Province 2013 2014 % Change (MM) Capita (US$
Slide 41: 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 42: 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 43: Chinese Day-Trip and Overnight Visitation To Macao Both Continue to Grow
Chinese Day-Trip and Overnight Visitation To 3 Macao Both Continue to Grow Mainland China Day-Trip Visitors to Macao Mainland China Overnight Visitors to Macao Growth -9% +19% +28% 0% +10% +19% Growth -1% +22% +16% +10% +10% +9% (MM) (MM) 12.0 14.0 12.0 11.5 10.0 9.7 8.9 10.0 9.7 8.1 8.8 8.8 8.0 7.3
Slide 44: 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 In 2014 Hong 40.0 Kong Received 34.9 25.9M
Slide 45: 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 2013 Visitation from Mainland China Avg. Length of Stay for Mainland Chinese Total 2013 Mainland Daytrip Visitors Overnight Visitors Overnight Visitors in 2013 Chinese Visitor Nights¹ (MM) (Days) (MM) 25.0 23
Slide 46: 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 47: Market Leading Hotel Capacity at SCL
5 Market Leading Hotel Capacity at SCL Sands China Operates 38% 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 Sands Macao, 289 9,000 Four Seasons Macao, 360 Sands China ` 9,277 56
Slide 48: Market Leading Hotel Capacity at SCL (Projected 2017)
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 44% 35% 12,000 Galaxy Entertai
Slide 49: Supplemental Sands China Information
Supplemental Sands China Information
Slide 50: SCL's Mass Business Holding Up Better In a Challenging Market
SCL’s Mass Business Holding Up Better In a Challenging Market Than the Macao Market as a Whole Mass Table, Slot and ETG Win Per Day Cotai Strip Properties Peninsula Total ($MM) $18.0 $15.1 $15.0 $13.7 $12.8 $11.7 $12.0 $9.0 $7.0 $6.2 $6.0 $4.9 $4.8 $3.0 $2.3 $2.0 $1.0 $0.7 $0.0 Venetian Sands Cotai
Slide 51: Macao Mass Table Business
Macao Mass Table Business Mass Business in Macao is Contracting (Particularly at the “High End” of Mass) Mass Table Win Mass Table Win per Table per Day2 ($MM) $1,600 60% $16,000 55% $1,400 $1,336.7 $14,000 $13,210 $1,248.8 50% $12,143 $1,218.5 $1,218.2 $11,963 $12,000 $11,518 $1,200 $1,106.4 45% $1
Slide 52: Macao Slot Business Soft, But Highly Profitable
Macao Slot Business Soft, But Highly Profitable Decreasing less than the Macao market as a whole (declined 16.8%) Macao Slot and ETG Win Macao Slot and ETG Win per Unit per Day ($MM) $220 50% $500 $200 45% $450 $424 $184.3 $177.6 $175.9 $401 $180 $173.8 $400 $388 40% $353 $362 $160 $156.9 35% $350 $
Slide 53: VIP Business in Macao Continues to Decline
VIP Business in Macao Continues to Decline Rolling Win Rolling Win per Table per Day ($MM) $45,000 $1,600 30% $1,445.3 $39,167 $40,000 $1,400 $1,327.2 25% $35,000 $32,837 $32,568 $1,200 $1,116.9 $1,018.6 $29,893 20% $30,000 $1,000 18.3% $837.7 $24,084 17.9% $25,000 $800 16.9% 16.8% 15% 15.6% $20,000
Slide 54: Macao Annual Operating Performance
Macao Annual Operating Performance Most Diversified and Defensive Cash Flows in the Macao Market SCL Departmental Revenue and Profit Margins – Year Ended December 2014 vs 2013 Gross Revenue (US$MM) Year Ended Year Ended Departmental Profit Department 12/31/2013 12/31/2014 YoY Growth (%) Margin Range
Slide 55: Macao Fourth Quarter Operating Performance
Macao Fourth Quarter Operating Performance Most Diversified and Defensive Cash Flows in the Macao Market SCL Departmental Revenue and Profit Margins – Quarter Ended 12/31/2014 vs 12/31/2013 Gross Revenue (US$MM) Quarter Ended Quarter Ended Departmental Profit Department 12/31/2013 12/31/2014 YoY Gro
Slide 56: Macao Annual Non-Gaming Revenue
Macao Annual Non-Gaming Revenue Most Diversified and Defensive Cash Flows in the Macao Market SCL Non-Gaming Revenue ($MM) $2,000 $1,626 $1,500 $1,381 $1,030 $1,000 $817 $688 $576 $593 $500 $198 $40 $49 $0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Non-Gaming Revenue (US$MM) SCL Continues to
Slide 57: Labor Costs in Macao
Labor Costs in Macao While Costs Have Increased, They Have Remained Fairly Stable as a % of Net Revenue SCL Historical Labor Expense Opening of ($MM) Sands Cotai 1,200 Central 25% $1,093.2 1,000 $927.0 20% 800 $769.7 15% 600 10.9% $529.9 $450.7 11.8% 11.4% 10% 10.9% 10.4% 400 5% 200 0 0% 2010 2011 2
Slide 58: Sanes
Sanes LAS VEGAS SANDS CORP.