Las Vegas Sands Corp. · NYSE:LVS
Las Vegas Sands — Q4 2016 Earnings Presentation
55 slides from Las Vegas Sands's earnings presentation, Jan 25, 2017
Slide 1: 4Q16 Earnings Call Presentation
The Parisian Macao The Venetian Macao Sands Cotai Central, Macao Marina Bay Sands, Singapore (Opened Sept. 13, 2016) 4Q16 Earnings Call Presentation January 25, 2017 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 Best positioned operator to deliver long‐term growth in Asia, with the pre‐eminent destination MICE‐based Integrated Resor
Slide 4: Fourth Quarter 2016 Financial Highlights
Fourth Quarter 2016 Financial Highlights Quarter Ended December 31, 2016 vs Quarter Ended December 31, 2015 Net revenue increased 7.4% to $3.08 billion while net income increased 5.6% to $607 million Adjusted property EBITDA increased 6.1% to $1.12 billion Hold‐normalized adjusted property EBI
Slide 5: Fourth Quarter 2016 Financial Results (Y/Y)
Fourth Quarter 2016 Financial Results (Y/Y) Quarter Ended December 31, 2016 vs Quarter Ended December 31, 2015 $ in millions, except per share information 4Q15 4Q16 $ Change % Change Net Revenue $ 2,862 $ 3,075 $ 213 7.4% Net Income $ 575 $ 607 $ 32 5.6% Adjusted Property EBITDA $ 1,051 $ 1,115 $ 64
Slide 6: Geographically Diverse Sources of EBITDA
Geographically Diverse Sources of EBITDA EBITDA Contribution by Geography in 4Q 2016 Consolidated Adjusted Property EBITDA1 Consolidated Hold‐Normalized Adj. Prop. EBITDA1 $1,115M $1,071M United United States States 12% 13% Singapore Singapore Macao Macao 34% 33% 53% 55% 1. The Macao region includes
Slide 7: LVS Increasing Return of Capital to Shareholders
LVS Increasing Return of Capital to Shareholders Over $15.4 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 Returning Capital to Shareholders
SCL Also Returning 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 dividend $1
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 December 31, 2016: Trailing twelve months ended December 31, 2016: Cash Balance – $2.14 billion Cash Flow from Operations – $4.04 billion Debt – $9.72 billion1 Adjusted Property
Slide 10: Macao Operating Performance (Y/Y)
Macao Operating Performance (Y/Y) Quarter Ended December 31, 2016 vs Quarter Ended December 31, 2015 Macao Operations Adjusted Property EBITDA and Adjusted Property EBITDA Margin Adjusted Property EBITDA Hold‐Normalized Adj. Prop. EBITDA ($MM) +5.0% +2.0% $700 60% $610 $600 $581 $566 $555 50% $500 4
Slide 11: Diversified and Stable Sources of Departmental Profit
Diversified and Stable Sources of Departmental Profit Macao Departmental Profit Contribution1 FY 2015 FY 2016 Other Other 3% 4% VIP VIP 10% 10% Mall Mall 13% 14% Mass Tables Mass Tables 51% 50% Hotel 15% Hotel 14% Slots 8% Slots 8% Mass Tables / Slots and Non‐Gaming Generated 90% of Macao’s Departme
Slide 12: Macao: Increased Overnight Visitation, Length of Stay and Win-per-Visit
Macao: Increased Overnight Visitation, Length of Stay and Win‐per‐Visit are Contributing to Growth in Mass Gaming Win Mainland Chinese Avg. Length of Stay for Mass (Tables & Slots) Overnight Visits Mainland Chinese Visitors Win‐per‐Visit1 (MM) ($) (Days) 3.0 1.4 600 2.82 1.3 2.43 1.2 $493 2.5 500 1.
Slide 13: Macao: Gradual Improvement in Macao's High Margin Mass Market Segment
Macao: Gradual Improvement in Macao’s High Margin Mass Market Segment Macao Mass Gaming Revenue (Tables & Slots) & Mass Win‐per‐Visit1 ($MM) $5,000 $1,000 $4,589 $4,449$4,419 $4,340 $3,919 $3,986 $4,000 $3,872 $3,816 $800 $3,682 $3,609$3,508 $3,497$3,584 $3,351$3,441 $3,408 $3,175 $585 $597 $586 $3,
Slide 14: Sands China Mass Market Table Update
Sands China Mass Market Table Update Mass Market Table Win Grew 16.4% in 4Q16 vs. 4Q15 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: $6,120 Avg.
Slide 15: The Parisian Macao: Over Two Billion Online Impressions Via Social Media
The Parisian Macao Over Two Billion Online Impressions Via Social Media 15
Slide 16: The Parisian Macao: A New Must See Attraction on the Cotai Strip
The Parisian Macao A New “Must See” Attraction on the Cotai Strip 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 Maca
Slide 17: The Parisian Macao: Latest Addition to Our Cotai Strip Property Portfolio
The Parisian Macao Latest Addition to Our Cotai Strip Property Portfolio The Parisian Macao: Strong visitation has contributed to increased traffic across our entire Cotai Strip property portfolio During The Parisian Macao’s first full quarter of operations the property generated: $95 million of
Slide 18: 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% 9% 16% 14% 13% 12% 20% 40% 14% 12% 7% 36% 11% 35% 32% 28% 14% 14% 15% 14% 1
Slide 19: Marina Bay Sands Update
Marina Bay Sands Update1 Adjusted Property EBITDA Increased 8.0% to $366 million Adjusted property EBITDA increased 8.0% to $366 million. Rolling Adjusted Property EBITDA win % was 2.87% in 4Q16 compared to 2.39% in the prior‐year and Adjusted Property EBITDA Margin quarter. Actual Hold‐Normalized
Slide 20: Marina Bay Sands: Diversified and Stable Sources of Departmental Profit
Singapore’s Marina Bay Sands: Diversified and Stable Sources of Departmental Profit For Las Vegas Sands Marina Bay Sands Hold‐Normalized Departmental Profit Contribution FY 2015¹ FY 2016¹ Other Other 5% VIP 4% VIP 8% 12% Mall 8% Mall Mass Tables Mass Tables 8% 39% 40% Hotel Hotel 18% 17% Slots Slots
Slide 21: Asia Retail Mall Portfolio Continues to Generate Strong Revenue and Operating Profit
Asia Retail Mall Portfolio Continues to Generate Strong Revenue and Operating Profit Trailing Twelve Months Retail Mall Revenue ($MM) +5.0% TTM 4Q16 Sales per Sq. Foot² $569 $573 $580 $588 $600 $560 MBS: $500 $163 $166 $1,383 $163 $163 $163 $400 $5 $23 SCC: $62 $64 $65 $65 $63 $882 $300 Four Seasons
Slide 22: Sands China: Retail Mall Revenue Composition
Sands China: Retail Mall Revenue Composition Macao Quarterly Retail Revenue Composition ($MM) $160 $140 $123 $118 $120 $11 $104 $23 $98 $100 $95 $4 $1 $2 $80 $60 $112 $95 $94 $96 $100 $40 $20 $‐ 4Q15 1Q16 2Q16 3Q16 4Q16 Base Rent and Other Fees Turnover Rent Strong Base Rent, Which Grew 17.9% in 4Q1
Slide 23: Las Vegas Operations Update
Las Vegas Operations Update Strong RevPAR Performance Drove 14.4% Adjusted Property EBITDA Growth Adjusted property EBITDA increased 14.4% to $111 Adjusted Property EBITDA million and Adjusted Property EBITDA Margin Actual Hold‐Normalized — On a hold‐normalized basis, adjusted property ($MM) EBITD
Slide 24: Sands Bethlehem Update
Sands Bethlehem Update Leading Tri‐State Region Property Adjusted property EBITDA decreased 17.6% to $28 Adjusted Property EBITDA million and Adjusted Property EBITDA Margin Table games drop decreased 7.5% to $271 million due ($MM) to slower Baccarat and Non‐Baccarat play $45 40% $40 Slot hand
Slide 25: 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 26: Industry Leading Corporate Social Responsibility Programs
Industry Leading Corporate Social Responsibility Programs
Slide 27: 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 27
Slide 28: 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 29: Appendix
Appendix Sanes LAS VEGAS SANDS CORP.
Slide 30: Historical Hold-Normalized Adj. Property EBITDA
Historical Hold‐Normalized Adj. Property EBITDA1 $ in millions 4Q15 1Q16 2Q16 3Q16 4Q16 2 Macao Operations Reported $ 581 $ 518 $ 488 $ 628 $ 610 Hold‐Normalized $ 555 $ 508 $ 496 $ 565 $ 566 Marina Bay Sands Reported $ 339 $ 275 $ 357 $ 391 $ 366 Hold‐Normalized $ 376 $ 383 $ 323 $ 368 $ 366 Las Ve
Slide 31: Debt Maturity Profile
Debt Maturity Profile Debt Maturity by Year at December 31, 2016 ($MM) $7,000 $6,000 $5,000 $4,374 $4,000 2,151 $3,000 $2,265 $2,000 $1,442 $1,196 1,719 $1,000 2,265 1,050 1,442 $167 $280 207 504 $0 2017 2018 2019 2020 2021 2022 SCL MBS US LVSC % of Total 2% 3% 12% 45% 15% 23% Long Term and Low Cost
Slide 32: Capital Expenditures Expectations
Capital Expenditures Expectations Future Planned Investments Composed Principally of The Parisian Macao and Maintenance ($MM) LVS Capex Expectations $3,000 $2,500 $2,000 $1,529 $8 $1,449 $1,398 $1,500 $107 $40 $285 $67 $1,179 $19 $1,145 $20 $49 $898 $190 $1,000 $425 $800 $50 $830 $767 $925 $210 $390
Slide 33: Marina Bay Sands: Accounts Receivable and Credit Collections Update
Marina Bay Sands: Accounts Receivable and Credit Collections Update Casino Credit Collections ($MM) $500 $418 $378 $368 $408 $403 $326 $361 $400 $342 $311 $317 $281 $272 $291 $281 $262 $257 $300 $206 $200 $175 $127 $142 $100 $0 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q
Slide 34: 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 Portfolio of Nearly Family-friendly Entertainment World Class Concerts, Sporting Events 13,000 Suites and Hotel Rooms1 and Other Entertainment Offerings Over Two Million sq. feet of World Class S
Slide 35: Macao Mass Visitation Business & Leisure Tourism Expenditure 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 36: Macao Market Background and Infrastructure Slides
Macao Market Background and Infrastructure Slides
Slide 37: 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 4Q16 FY 2016 $7,552M $1,771M $27,901M $6,700M 100% 100% 24% 22% 80% 80% 55% 53% 60% 60% ~1
Slide 38: 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 2020, 1 compared to 128 million in 2015. Chinese tourism expenditures are expected to increase 10% annually through 2020 to reach $354 billion Transportation
Slide 39: China Is The World's Largest and Fastest Growing Outbound Tourism Market
1 China Is The World’s Largest and Fastest Growing Outbound Tourism Market Outbound Travel from China Outbound Travel Penetration2 400 60% 56.1% Expenditure (US$bn) $354 55% Taiwan 350 Chinese outbound tourists (millions) 50% Korea $319 CLSA / WTTC estimates1 45% China 300 $289 40% CAGR 250 $261 38.
Slide 40: Strong Growth in Chinese Outbound Tourism
1 Strong Growth in Chinese Outbound Tourism Chinese Outbound Tourism to Select Markets 2010‐2015 CAGR +12% +27% +17% +29% +26% +48% +9% +15% (MM) 50.0 45.8 40.0 30.0 22.7 20.4 20.0 13.2 10.0 7.9 6.0 4.3 5.0 2.1 2.6 1.9 1.9 1.2 0.8 1.4 1.1 0.0 Singapore USA Major European Japan Korea Thailand Macau H
Slide 41: Chinese Middle Class Consumption Growth
1 Chinese Middle Class Consumption Growth Chinese Middle Class Consumption in 2030 is Projected to Reach $10.0 trillion Global Middle Class Consumption in 2030 (US$ in trillions) (US$ in trillions) $15 $10.0 $10 $5 $4.0 $2.3 $2.5 $1.1 $1.2 $1.2 $1.3 $1.4 $‐ France Brazil Mexico Germany Russia Japan
Slide 42: Mainland Chinese Visitation to Macao Penetration Remains Low
Mainland Chinese Visitation to Macao 1 Penetration Remains Low Year‐Over‐Year Visitation Growth Mainland Chinese Visitation to Macao Twelve Months Ended December 31 Population GDP Per Penetration Province 2015 2016 % Change (MM) Capita (US$) Rate Guangdong 9,043,931 9,021,402 ‐0.2% 108 $10,346 8.3%
Slide 43: 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) Provides seamless connection from Guangzhou – Zhuhai Intercity Rail North
Slide 44: Infrastructure: Meaningful Improvements Throughout the Pearl River Delta Region
Infrastructure: Meaningful Improvements 2 Throughout the Pearl River Delta Region Guangzhou Population: 13M Wuhan – Guangzhou High‐Speed Rail GDP Per Capita: US$20,000 • 4 hour train ride • 55‐65 trains in each direction per day Guangzhou – Zhuhai Intercity Rail Guangzhou – Shenzhen – Hong Kong Rail
Slide 45: Market Leading Hotel Capacity at SCL
3 Market Leading Hotel Capacity at SCL Projected Macao Market 4/5 Star Hotel Rooms at December 31, 2018 Macao Market Gaming Operator Hotel Rooms at December 31, 20181 14,000 Hotel % of Gaming % of Total 12,677 Gaming Operator Rooms Operators Market 12,000 Sands China ` 12,677 44% 34% The Parisian Ga
Slide 46: Length-of-Stay of Chinese Overnight Visitors & Number of Chinese Hotel Guests in Macao
Length‐of‐Stay of Chinese Overnight Visitors 4 & Number of Chinese Hotel Guests in Macao Average Length‐of‐Stay of Mainland Chinese Overnight Visitors in Macao Mainland Chinese Hotel Guests in Macao (Days) (MM) 2.5 8.0 2.2 2.1 2.1 2.1 7.0 6.8 6.7 2.0 2.0 6.6 2.0 6.2 5.9 6.0 5.2 5.0 4.6 1.5 4.0 1.0 3
Slide 47: Chinese Day-Trip and Overnight Visitation To Macao
Chinese Day‐Trip and Overnight 4 Visitation To Macao Mainland China Day‐Trip Visitors to Macao Mainland China Overnight Visitors to Macao Growth ‐9% +19% +28% 0% +10% +19% ‐3% ‐9% Growth ‐1% +21% +16% +11% +10% +9% ‐5% +12% (MM) (MM) 14.0 14.0 12.0 11.5 12.0 11.2 10.2 10.3 10.0 9.7 10.0 9.7 9.2 8.8
Slide 48: Hengqin Island Expands Critical Mass of Tourism Offerings
Hengqin Island Expands Critical Mass of 5 Tourism Offerings for Visitors to the Region Map of Hengqin Island New Area Important Facts Island adjacent to Macao (3X the size of Macao) that has been identified as a strategic zone for cooperation among Guangdong Province, Hong Kong and Macao Master‐
Slide 49: Non-GAAP Measures Reconciliations
Non‐GAAP Measures Reconciliations
Slide 50: Reconciliation of Net Income to Consolidated Adjusted Property EBITDA
Reconciliation of Net Income to Consolidated Adjusted Property EBITDA and Hold‐Normalized Adjusted Property EBITDA Three Months Ended Year Ended ($MM) December 31, December 31, 2016 2015 2016 2015 Net income $ 607 $ 575 $ 2,016 $ 2,386 Add (deduct): Income tax expense 52 62 239 236 Loss on modificat
Slide 51: Non-GAAP Measures: Adjusted Net Income and Adjusted EPS
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 Year Ended ($MM) December 31, December 31, (1) (1) 2016 2015 2016 2015 Net income attributable to Las Vegas San
Slide 52: Non-GAAP Trailing Twelve Month Supplemental Schedule
Non‐GAAP Trailing Twelve Month Supplemental Schedule ($MM) 4Q15 1Q16 2Q16 3Q16 4Q16 TTM 4Q16 Cash Flows From Operations $ 1,010 $ 799 $ 988 $ 1,043 $ 1,213 $ 4,043 Adjust for: Provision for doubtful accounts (30) (45) (43) (51) (34) (173) Foreign exchange (gains) losses (3) (10) (17) 7 41 21 Other n
Slide 53: Historical Hold-Normalized Adj. Property EBITDA
Historical Hold‐Normalized Adj. Property EBITDA1 $ in millions 4Q15 1Q16 2Q16 3Q16 4Q16 2 Macao Operations Reported $ 581 $ 518 $ 488 $ 628 $ 610 Hold‐Normalized Adjustment (26) (10) 8 (63) (44) Hold‐Normalized $ 555 $ 508 $ 496 $ 565 $ 566 Marina Bay Sands Reported $ 339 $ 275 $ 357 $ 391 $ 366 Hol
Slide 54: Marina Bay Sands Constant Currency Supplemental Schedule
Marina Bay Sands Constant Currency Supplemental Schedule ($MM) 4Q15 4Q16 Change Adjusted Property EBITDA $ 339 $ 366 8.0% Constant Currency Adjustment (1) (8) Non‐GAAP Adjusted Property EBITDA, Adjusted for Constant Currency $ 339 $ 358 5.6% Hold‐Normalized Adjusted Property EBITDA $ 376 $ 366 ‐2.7%
Slide 55: Sands
Sands LAS VEGAS SANDS CORP,