Las Vegas Sands Corp. · NYSE:LVS

Las Vegas Sands — Q2 2016 Earnings Presentation

42 slides from Las Vegas Sands's earnings presentation, Jul 25, 2016

1. Slide 1: 2Q16 Earnings Call Presentation

   The Parisian Macao The Venetian Macao Sands Cotai Central, Macao Marina Bay Sands, Singapore (Opening Sept. 13, 2016) 2Q16 Earnings Call Presentation July 25, 2016 Sands Macao Four Seasons Macao Sands Bethlehem The Venetian Las Vegas The Palazzo, Las Vegas

2. 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

3. Slide 3: Second Quarter 2016 Financial Highlights

   Second Quarter 2016 Financial Highlights  Net revenue was $2.65 billion with net income of $394.4 million  Adjusted property EBITDA was $955.1 million  Hold Normalized Adjusted Property EBITDA was $953.8 million  Hold‐normalized adjusted property EBITDA margin increased 70 bps to an industry‐lea

4. Slide 4: Second Quarter 2016 Financial Results (Y/Y)

   Second Quarter 2016 Financial Results (Y/Y) Quarter Ended June 30, 2016 vs Quarter Ended June 30, 2015 $ in millions, except per share information 2Q15 2Q16 $ Change % Change Net Revenue $ 2,921.4 $ 2,650.1 $ (271.3) ‐9.3% Net Income $ 581.5 $ 394.4 $ (187.1) ‐32.2% Adjusted Property EBITDA $ 1,016.

5. Slide 5: Geographically Diverse Sources of EBITDA

   Geographically Diverse Sources of EBITDA EBITDA Contribution by Geography in Q2 2016 Consolidated Adjusted Property EBITDA1 Consolidated Hold‐Normalized Adj. Prop. EBITDA1 $955M $954M United United States States 12% 14% Macao Macao Singapore 51% Singapore 34% 52% 37% 1. The Macao region includes adj

6. Slide 6: LVS Increasing Return of Capital to Shareholders

   LVS Increasing Return of Capital to Shareholders $14.3 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 share

7. Slide 7: SCL Also Increasing Return of Capital to Shareholders

   SCL Also Increasing Return of 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

8. Slide 8: Strong Cash Flow, Balance Sheet and Liquidity

   Strong Cash Flow, Balance Sheet and Liquidity Flexibility for Future Growth Opportunities and Return of Capital At June 30, 2016: Trailing twelve months ended June 30, 2016:  Cash Balance – $2.23 billion  Cash Flow from Operations – $3.66 billion  Debt ‐ $10.39 billion1  Adjusted Property EBITDA

9. Slide 9: Macao Operating Performance (Y/Y)

   Macao Operating Performance (Y/Y) Quarter Ended June 30, 2016 vs Quarter Ended June 30, 2015 Macao Property Operations Adjusted Property EBITDA and Adjusted Property EBITDA Margin Adjusted Property EBITDA Hold‐Normalized, Adj. Prop. EBITDA ($MM) ‐14.1% ‐7.2% $600 60% $559.8 $526.5 $488.8 $500 $480.8

10. Slide 10: Diversified and Stable Sources of Departmental Profit

    Diversified and Stable Sources of Departmental Profit Macao Departmental Profit Contribution by Segment TTM 2Q15 TTM 2Q16 Other Other 3% 2% VIP VIP 9% 12% Mall Mall 14% 12% Mass Tables Mass Tables 51% 51% Hotel 15% Hotel 15% Slots 8% Slots 8% Mass Tables / Slots and Non‐Gaming Generated 91% of Macao

11. Slide 11: Sands China Mass Market Update

    Sands China Mass Market Update 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: $6,420 Avg. Win per Table per Day: $13,261 ($MM) ($MM) $800 $800 $70

12. Slide 12: The Parisian Macao is Targeted to Open on September 13, 2016

    The Parisian Macao is Targeted to Open on September 13, 2016  The Parisian Macao is a $2.9 billion themed, iconic destination Rendering of The Parisian Macao Integrated Resort  The Parisian Macao will meaningfully expand our critical mass on the Cotai Strip  Hotel rooms and suites: Approximately

13. Slide 13: The Parisian Macao Over 100 Million Views on Social Media

    The Parisian Macao Over 100 Million Views on Social Media 13

14. Slide 14: 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% 63% 10% 9% 30% 60% 9% 9% 16% 14% 13% 12% 20% 40% 14% 12% 8% 37% 11% 35% 32% 28% 14% 14% 15% 14% 1

15. Slide 15: Marina Bay Sands Update

    Marina Bay Sands Update1 Adjusted Property EBITDA was $357.0 million  Adjusted property EBITDA decreased 1.7% to $357.0 million. Adjusted Property EBITDA Rolling win % was 3.50% in 2Q16 compared to 2.78% in the prior‐ and Adjusted Property EBITDA Margin year quarter. Actual Hold‐Normalized  Adjust

16. Slide 16: 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 by Segment TTM 2Q15¹ TTM 2Q16¹ Other Other 4% VIP 4% VIP 10% 11% Mall Mall 8% Mass Tables 8% Mass Tables 39% 40% Hotel Hotel 17% 1

17. Slide 17: 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) TTM 2Q16 Sales per Sq. Foot² $586 $575 $569 $573 $600 $560 MBS: $500 $171 $167 $163 $1,334 $163 $163 $400 SCC: $65 $63 $62 $64 $65 $861 $300 Four Seasons: $145 $141 $

18. Slide 18: Sands China: Retail Mall Revenue Composition

    Sands China: Retail Mall Revenue Composition Macao Quarterly Retail Revenue Composition ($MM) $160 $140 $117.6 $120 $97.8 $22.5 $95.3 $98.1 $100 $94.0 $1.1 $2.1 $5.5 $8.7 $80 $60 $89.1 $95.1 $94.2 $96.0 $88.5 $40 $20 $‐ 2Q15 3Q15 4Q15 1Q16 2Q16 Base Rent and Other Fees Turnover Rent Strong Base Rent

19. Slide 19: Las Vegas Operations Update

    Las Vegas Operations Update Strong RevPAR Performance Drove 33.8% Adjusted Property EBITDA Growth  Adjusted property EBITDA increased 33.8% to $72.5 Adjusted Property EBITDA million and Adjusted Property EBITDA Margin Actual Hold‐Normalized — On a hold‐normalized basis, adjusted property ($MM) EBIT

20. Slide 20: Sands Bethlehem Update

    Sands Bethlehem Update Another Strong Quarter for Leading Tri‐State Region Property Adjusted Property EBITDA  Adjusted property EBITDA increased 10.5% to $37.7 and Adjusted Property EBITDA Margin million ($MM)  Table games drop increased 0.6% to reach $288.6 $45 40% $37.7 million, driven by a 4.7%

21. Slide 21: 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

22. Slide 22: 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 as well as recurring dividends  Best positioned operator to deliver long‐term growth in Asia, with the pre‐eminent destinat

23. Slide 23: Appendix

    Appendix Sanes LAS VEGAS SANDS CORP.

24. Slide 24: Historical Hold-Normalized Adj. Property EBITDA

    Historical Hold‐Normalized Adj. Property EBITDA1 $ in millions 2Q15 3Q15 4Q15 1Q16 2Q16 Macao Property Operations Reported $ 559.8 $ 536.8 $ 575.3 $ 510.4 $ 480.8 Hold‐Normalized $ 526.5 $ 528.3 $ 549.1 $ 500.5 $ 488.8 Marina Bay Sands Reported $ 363.3 $ 389.7 $ 338.2 $ 274.9 $ 357.0 Hold‐Normalized

25. Slide 25: 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 $1,790 $8 $1,529 $240 $1,449 $1,500 $107 $40 $19 $285 $1,179 $49 $1,018 $898 $190 $1,000 $1,000 $830 $767 $368 $210 $390 $50 $600

26. Slide 26: Debt Maturity Profile

    Debt Maturity Profile Debt Maturity by Year at June 30, 20161 ($MM) $7,000 $6,180 $6,000 $5,000 2,115 $4,000 $3,000 1,843 $2,314 $2,000 1,126 $1,181 $1,000 2,222 465 $329 222 1,154 $340 $49 494 $0 181 2016 2017 2018 2019 2020 2021 SCL MBS US LVSC % of Total 0% 3% 11% 22% 59% 3% Long Term and Low Cos

27. Slide 27: 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 $400 $342 $361 $311 $317 $326 $281 $272 $291 $281 $262 $257 $300 $206 $200 $175 $100 $0 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q

28. Slide 28: 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 Family-friendly Entertainment World Class Concerts, Sporting Events Portfolio of Nearly and Other Entertainment Offerings 13,000 Suites and Hotel Rooms1 Over Two Million sq. feet of World Class S

29. Slide 29: Macao Mass Visitation Future Growth 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 

30. Slide 30: Market Leading Hotel Capacity at SCL

    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 14,000 Hotel % of Gaming % of Total 12,677 Gaming Operator Rooms Operators Market 12,000 Sands China ` 12,677 45% 34% The Parisian Gala

31. Slide 31: Non-GAAP Measures Reconciliations

    Non‐GAAP Measures Reconciliations

32. Slide 32: Non-GAAP Measures

    Non‐GAAP Measures The non‐GAAP financial measures disclosure by the Company has limitations and should not be considered a substitute for, or superior to, the financial measures prepared in accordance with GAAP. The definitions of our non‐GAAP financial measures and the specific reasons why the Comp

33. Slide 33: Non-GAAP Measures (Continued)

    Non‐GAAP Measures (Continued) Consolidated adjusted property EBITDA, which is a non‐GAAP measure, is net income before stock‐based compensation expense, corporate expense, pre‐opening expense, development expense, depreciation and amortization, amortization of leasehold interests in land, gain or lo

34. Slide 34: Non-GAAP Measures (Continued)

    Non‐GAAP Measures (Continued) Hold‐normalized adjusted property EBITDA is a supplemental non‐GAAP financial measure used by management, as well as industry analysts, to evaluate operations and operating performance. In addition to the aforementioned reasons for the presentation of consolidated adjus

35. Slide 35: Non-GAAP Measures (Continued)

    Non‐GAAP Measures (Continued) Hold‐normalized adjusted net income and hold‐normalized adjusted earnings per diluted share are additional supplemental non‐GAAP financial measures used by management, as well as industry analysts, to evaluate the Company’s operations and operating performance. In addit

36. Slide 36: 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 Six Months Ended ($000’s) June 30, June 30, 2016 2015 2016 2015 Net income $ 394,437 $ 581,491 $ 803,350 $ 1,192,529 Add (deduct): Income tax expense 54,711 45,929 11

37. Slide 37: Non-GAAP Measures: Adjusted Net Income and Adjusted Earnings Per Diluted Share

    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 Six Months Ended June 30, June 30, ($000’s) (1) (1) 2016 2015 2016 2015 Net income attributable to Las Vegas Sa

38. Slide 38: Non-GAAP Trailing Twelve Month Supplemental Schedule

    Non‐GAAP Trailing Twelve Month Supplemental Schedule ($MM) 2Q15 3Q15 4Q15 1Q16 2Q16 TTM 2Q16 Cash Flows From Operations $ 847.2 $ 859.0 $ 1,009.5 $ 798.9 $ 988.1 $ 3,655.5 Adjust for: Provision for doubtful accounts (36.0) (32.8) (29.5) (45.4) (42.2) (149.9) Foreign exchange (gains) losses (7.2) 19.

39. Slide 39: Historical Hold-Normalized Adj. Property EBITDA

    Historical Hold‐Normalized Adj. Property EBITDA1 $ in millions 2Q15 3Q15 4Q15 1Q16 2Q16 Macao Property Operations Reported $ 559.8 $ 536.8 $ 575.3 $ 510.4 $ 480.8 Hold‐Normalized Adjustment (33.3) (8.5) (26.2) (9.9) 8.0 Hold‐Normalized $ 526.5 $ 528.3 $ 549.1 $ 500.5 $ 488.8 Marina Bay Sands Reporte

40. Slide 40: Marina Bay Sands Constant Currency Supplemental Schedule

    Marina Bay Sands Constant Currency Supplemental Schedule ($MM) 2Q15 2Q16 Change Adjusted Property EBITDA $ 363.3 $ 357.0 ‐1.7% Constant Currency Adjustment (1) 3.1 Non‐GAAP Adjusted Property EBITDA, Adjusted for Constant Currency $ 363.3 $ 360.1 ‐0.9% Hold‐Normalized Adjusted Property EBITDA $ 363.3

41. Slide 41: Sands China Ltd: Reconciliation of Net Income to Adjusted Property EBITDA

    Sands China Ltd: Reconciliation of Net Income to Adjusted Property EBITDA and Hold‐Normalized Adjusted Property ($000s) Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Sands China Ltd. Net Income $ 237,034 $ 388,654 $ 548,681 $ 733,350 Add (deduct): Income tax (benefit) exp

42. Slide 42: Sands

    Sands LAS VEGAS SANDS CORP,

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