Las Vegas Sands Corp. · NYSE:LVS

Las Vegas Sands — Q1 2020 Earnings Presentation

55 slides from Las Vegas Sands's earnings presentation, Apr 22, 2020

  1. Slide 1: 1Q20 Earnings Call Presentation

    1Q20 Earnings Call Presentation April 22, 2020

  2. 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

  3. Slide 3: Las Vegas Sands' Strategic Priorities Amid Covid-19 Pandemic

    Las Vegas Sands’ Strategic Priorities Amid Covid-19 Pandemic  Greatest priorities: – Safety and security of team members and guests – Support for local communities in Macao, Singapore and Las Vegas  LVS has suspended its dividend program due to the impact of Covid-19, but will continue previously

  4. Slide 4: Las Vegas Sands Covid-19 Support

    Las Vegas Sands Covid-19 Support Global Support for our Team Members and Host Communities – Select Examples MACAO SINGAPORE LAS VEGAS Continuous employment for team Continuous employment for team Continuous employment for team members during closure members during closure members during closure Mone

  5. Slide 5: Covid-19 Pandemic Update

    Covid-19 Pandemic Update As a result of the Covid-19 pandemic, in every jurisdiction in which we operate, we are experiencing operating conditions that are unprecedented in nature and uncertain in their duration:  Macao: − On February 4, 2020, in response to the outbreak, the Macao government annou

  6. Slide 6: Covid-19 Pandemic Update (cont.)

    Covid-19 Pandemic Update (cont.)  Singapore: − Subsequent to quarter-end, the Singapore government suspended all casino and non-essential operations, including all operations at Marina Bay Sands (MBS). This began on April 7, 2020 through at least June 1, 2020, which could be extended in the future

  7. Slide 7: Estimated Monthly Operating Results Reflect Impact of Pandemic

    Estimated Monthly Operating Results Reflect Impact of Pandemic LVS Net Revenue and Adjusted Property EBITDA by month, First Quarter 2020 ($ in US millions) January February March Interco 1Q20 Property Closures During 1Q20 1 Macao Macao Net Revenue $640 $68 $98 $8 $814 All gaming floors, certain hote

  8. Slide 8: Cash and Available Liquidity

    Cash and Available Liquidity Illustrative “Near Zero” Revenue Scenario ($ in US millions) Cash and Available Liquidity at March 31, 2020 SCL MBS Las Vegas Corp./Other Total Cash $814 $439 $150 $1,215 $2,618 1 Revolver Availability 2,017 416 1,499 3,932 Cash and Available Liquidity $2,831 $855 2 $150

  9. Slide 9: Strong Cash Flow, Balance Sheet and Liquidity

    Strong Cash Flow, Balance Sheet and Liquidity Investment Grade Balance Sheet Provides Liquidity During Challenging Operating Environment As of March 31, 2020: Trailing Twelve Months Ended March 31, 2020:  Cash Balance – $2.62 billion  Cash Flow from Operations – $1.85 billion2  Debt1 – $12.30 bil

  10. Slide 10: Debt Maturity Profile

    Debt Maturity Profile Debt Maturity by Year ($ in US millions) $3,500 $3,266 $3,000 966 $2,581 $2,500 $2,000 $1,858 $1,882 500 $1,900 1,581 $1,500 $1,000 1,900 1,800 1,750 1,800 $750 $500 1,000 750 $44 $59 $58 $0 $0 20201 2021 2022 2023 2024 2025 2026 2027 2028 2029 % of Total 1% 1% 1% 15% 15% 26% 2

  11. Slide 11: 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 $1,825 $1,800 $981 $1,400 $1,300 $1,225 $100 $1,000 $1,200 $949 $273 $150 $300 $837 $900 $25 $300 $75 $194 $211 $600 $396

  12. Slide 12: Ongoing Strategic Reinvestment in Integrated Resorts in Macao and Singapore

    Ongoing Strategic Reinvestment in Industry-Leading Portfolio of Integrated Resorts in Macao and Singapore Through Future Total Expected Timeframe The Londoner Macao: 1Q20 Spend Spend • Renovation, expansion and rebranding of SCC to The ~$350M ~$1.0B ~$1.35B Ongoing – phased to minimize disruption du

  13. Slide 13: First Quarter 2020 Financial Results

    First Quarter 2020 Financial Results Quarter Ended March 31, 2020 vs Quarter Ended March 31, 2019 ($ in US millions, except per share information) LVS Consolidated First Quarter Financial Results 1Q19 1Q20 $ Change % Change Net Revenue $3,646 $1,782 ($1,864) -51.1% Net Income (Loss) 744 (51) (795) n

  14. Slide 14: LVS Consolidated Operations EBITDA Performance

    LVS Consolidated Operations EBITDA Performance Quarter Ended March 31, 20201 vs Quarter Ended March 31, 2019 LVS Operations Adjusted Property EBITDA and Adjusted Property EBITDA Margin ($ in US millions) Adjusted Property EBITDA Hold-Normalized Adj. Prop. EBITDA $1,600 60% $1,400 $1,452 $1,442 50% $

  15. Slide 15: Sands China Ltd.

    Sands China Ltd.1 $67 Million of Adjusted Property EBITDA in 1Q20 Adjusted Property EBITDA and Adjusted Property EBITDA Margin  Adjusted property EBITDA decreased 92.2% to $67 million ($ in US millions) Actual Hold-Normalized  Hold-normalized adjusted property EBITDA decreased 90.1% $1,000 $858 80

  16. Slide 16: Marina Bay Sands

    Marina Bay Sands $282 Million of Adjusted Property EBITDA in 1Q20 Adjusted Property EBITDA and Adjusted Property EBITDA Margin  Adjusted property EBITDA decreased 33.3% to $282 million ($ in US millions) Actual Hold-Normalized  Hold-normalized adjusted property EBITDA decreased 37.6% $600 80% to $

  17. Slide 17: Las Vegas Operations

    Las Vegas Operations1 Adjusted Property EBITDA of $88 million in 1Q20 Adjusted Property EBITDA and Adjusted Property EBITDA Margin  Adjusted property EBITDA was $88 million a decrease of 36.2% ($ in US millions) Actual Hold-Normalized $160 40%  Hold-normalized adjusted property EBITDA $138 $140 $1

  18. Slide 18: The Investment Case for Las Vegas Sands

    The Investment Case for Las Vegas Sands  The global leader in Integrated Resort development and operation  A unique MICE-based business model delivering industry-leading returns  Unmatched development and operating track record creates competitive advantage as we pursue global opportunities in ne

  19. Slide 19: 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

  20. Slide 20: Appendices

    Appendices Sands

  21. Slide 21: $9.5 Billion of LVS and SCL Bonds Have No Financial Covenants

    $9.5 Billion of LVS and SCL Bonds Have No Financial Covenants Investment Grade Unsecured Long-term Debt – No Financial Covenants for LVS and SCL Bonds Outstanding Financial Covenants Las Vegas Sands US$4.0 Billion None Corp. Senior Notes Sands China Ltd. Senior Notes US$5.5 Billion None Marina Bay S

  22. Slide 22: Revolver Commitments and Financial Covenants

    Revolver Commitments and Financial Covenants Current Revolver Leverage Covenant Interest Covenant Availability1 Las Vegas Sands Corp. US$1,499 Million 4.0x Net Leverage2 n/a2 Unsecured Revolver Sands China Ltd. No Leverage Covenants No Interest Covenants Unsecured Revolver US$2,017 Million Until Jul

  23. Slide 23: Sources of EBITDA 1Q20

    Sources of EBITDA EBITDA Contribution by Geography in 1Q 2020 LVS Consolidated Adjusted Property EBITDA1 LVS Consolidated Hold-Normalized Adj. Prop. EBITDA1 US$437M US$442M Las Vegas Macao 20% Las Vegas Macao 15% 19% 20% Singapore Singapore 65% 61% 1. The Macao region includes adjusted property EBIT

  24. Slide 24: Sources of EBITDA Trailing Twelve Months

    Sources of EBITDA EBITDA Contribution by Geography in Trailing Twelve Months Ended March 31, 2020 LVS Consolidated Adjusted Property EBITDA1 US$4,374M United States 10% Macao Singapore 55% 35% 1. The Macao region includes adjusted property EBITDA from The Venetian Macao, Sands Cotai Central, The Par

  25. Slide 25: Hold-Normalization Update

    Hold-Normalization Update  During the past three years, Sands China and Marina Bay Sands have experienced an increase in actual rolling win percentage  In 2012, Sands China and Marina Bay Sands began normalizing rolling win using an assumed win percentage of 2.85% when the Company’s actual rolling

  26. Slide 26: Historical Hold-Normalization Comparison

    Historical Hold-Normalization Comparison Adj. Property EBITDA 3 Macao Operations ($ in US millions) 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1 Hold-Normalized at 3.15% (Prior) $767 $730 $754 $786 $835 $744 $755 $781 Hold-Normalized at 3.30% 2 (Current) 775 740 754 820 845 765 758 788 Difference $8 $1

  27. Slide 27: Sands China Mass Market Table Update

    Sands China Mass Market Table Update1 SCL Base Mass Table Win by Quarter SCL Premium Mass Table Win by Quarter Sands China Departmental Profit Margin: 35% - 45% Sands China Departmental Profit Margin: 25% - 40% ($ in US millions) ($ in US millions) $1,000 Avg. Win per Table per Day1: $1,000 Avg. Win

  28. Slide 28: Sands China Mass Market Table and Slots Update

    Sands China Mass Market Table and Slots Update1 SCL Mass Table2 Win by Quarter SCL Slots3 Win by Quarter Avg. Win per Table per Day1: $6,695 Avg. Win per Unit per Day1: $189 ($ in US millions) ($ in US millions) $1,800 $200 $1,600 $180 $1,400 $1,519 $160 $1,436 $1,464 $162 $160 $161 $1,391 $154 $140

  29. Slide 29: Retail Mall Portfolio in Asia: Trailing Twelve Months Revenue

    Retail Mall Portfolio in Asia Trailing Twelve Months Retail Mall Revenue ($ in US millions) $800 TTM 1Q20 Sales $696 $712 per Sq. Foot² $685 $689 1 $700 $657 $185 MBS $600 $180 $180 $182 $1,917 $184 $500 $52 $52 $53 Parisian Macao $53 $70 $47 $687 $71 $72 $72 SCC $400 $63 $780 $143 $142 $151 Four Se

  30. Slide 30: Retail Portfolio in Asia

    Retail Portfolio in Asia ($ per Sq. Foot, Unless Otherwise Indicated) 2 1Q20 Sales per Sq. Ft. GLA1 Occupancy % (Sq. Ft) at Period End TTM 1Q20 TTM 4Q19 TTM 3Q19 TTM 2Q19 TTM 1Q19 The Shoppes at Marina Bay Sands 593,756 96.4% $1,917 $2,062 $2,028 $1,945 $1,918 Shoppes at Venetian 812,934 90.5% $1,46

  31. Slide 31: 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

  32. Slide 32: Sands China: Continued Expansion of Cotai Strip Property Portfolio

    Sands China Continued Expansion of Market-Leading Cotai Strip Property Portfolio LVS’ Cotai Strip Properties Leadership in Macao Investment ~$13 billion today, ~$15 billion by 2021 Grand Suites at Four Seasons Macao St. Regis Hotel  ~290 Suites 400 Suites  Approximately 30 million square feet of i

  33. Slide 33: Integrated Resorts 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

  34. Slide 34: Marina Bay Sands Expansion

    Marina Bay Sands Expansion Sands

  35. Slide 35: 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

  36. Slide 36: Marina Bay Sands Expansion Development Agreement

    Marina Bay Sands Expansion A Development Agreement with The Singapore Tourism Board Will Allow an Expansion of Marina Bay Sands 36

  37. Slide 37: Marina Bay Sands Expansion Design and Development

    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. 37

  38. Slide 38: Macao Market Background and Infrastructure Slides

    Macao Market Background and Infrastructure Slides

  39. Slide 39: 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

  40. Slide 40: 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

  41. Slide 41: 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%

  42. Slide 42: Supplemental Data

    Supplemental Data Sands

  43. Slide 43: Historical Hold-Normalized Adjusted Property EBITDA

    Historical Hold-Normalized Adjusted Property EBITDA1 ($ in US millions) 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2 Macao Operations Reported $789 $750 $754 $786 $858 $765 $755 $811 $67 Hold-Normalized $775 $740 $754 $820 $845 $765 $758 $788 $84 Marina Bay Sands Reported $541 $368 $419 $362 $423

  44. Slide 44: Macao Market: Mass Gaming Segment

    Macao Market: Mass Gaming Segment1 Macao Market Mass Gaming Revenue (Tables & Slots) & Mass Win-per-Visit2 ($ US in millions) $6,000 $1,400 $5,608 $5,440 $5,523 $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

  45. Slide 45: Macao Market: Mass Gaming Revenue

    Macao Market: Mass Gaming Revenue1 Macao Market Mass Gaming Revenue ($ in US millions) Mass Win (Tables and Slots)2 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

  46. Slide 46: Macao Market: VIP Gaming

    Macao Market: VIP Gaming1 Macao Market VIP Gaming Revenue ($ in US millions) VIP Win2 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%

  47. Slide 47: Sands China VIP Table Update

    Sands China VIP Table Update1 SCL Rolling Volume by Quarter SCL Rolling Win by Quarter ($ in US billions) ($ in US millions, except per table amounts) $25 $1,000 Avg. Win per Table per Avg. Win per Table per Day: $27,904 Day: $12,854 $20 $800 $19.05 $15 $600 $663 $10 $400 $5 $6.46 $200 $194 $0 $0 1Q

  48. Slide 48: Reconciliation of Non-GAAP Measures and Other Financial Information

    Reconciliation of Non-GAAP Measures and Other Financial Information

  49. Slide 49: Reconciliation of Net Income (Loss) to Consolidated Adjusted Property EBITDA

    Reconciliation of Net Income (Loss) to Consolidated Adjusted Property EBITDA ($ in US millions) 1Q18 2Q18 3Q18 4Q18 2018 1Q19 2Q19 3Q19 4Q19 2019 1Q20 Net income (loss) $1,616 $676 $699 ($40) $2,951 $744 $1,108 $669 $783 $3,304 ($51) Add (deduct): Income tax expense (benefit) (571) (1) 81 83 782 (1)

  50. Slide 50: Reconciliation of Net Income (Loss) to Consolidated Adjusted Property EBITDA – 1Q20

    Reconciliation of Net Income (Loss) to Consolidated Adjusted Property EBITDA – 1Q20 ($ in US millions) Jan-20 Feb-20 Mar-20 1Q20 Net income (loss) $235 ($145) ($141) ($51) Add (deduct): Income tax expense (benefit) 25 6 (6) 25 Other (income) expense (13) 12 (36) (37) Interest expense, net of amounts

  51. 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 March 31, 2020 2019 Net income (loss) attributabl

  52. Slide 52: Non-GAAP Trailing Twelve Month Supplemental Schedule

    Non-GAAP Trailing Twelve Month Supplemental Schedule ($ in US millions) 1Q19 2Q19 3Q19 4Q19 1Q20 TTM 1Q20 Cash Flows From Operations $820 $76 $900 $1,242 ($370) $1,848 Adjust for: Provision for doubtful accounts (4) (7) (4) (15) (18) (44) Foreign exchange gains (losses) (22) 24 (11) 30 39 82 Other n

  53. Slide 53: Historical Hold-Normalized Adj. Property EBITDA

    Historical Hold-Normalized Adj. Property EBITDA1 ($ in US millions) 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 Macao Operations2 Reported $789 $750 $754 $786 $858 $765 $755 $811 $67 Hold-Normalized Adjustment (14) (10) - 34 (13) - 3 (23) 17 Hold-Normalized $775 $740 $754 $820 $845 $765 $758 $788 $

  54. Slide 54: Supplemental Information 1Q20 and 1Q19

    Supplemental Information 1Q20 and 1Q19 ($ in US millions) Three Months Ended March 31, 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 of

  55. Slide 55: Sands

    Sands

Las Vegas Sands — Q1 2020 Earnings Presentation on 6ix