Las Vegas Sands Corp. · NYSE:LVS
Las Vegas Sands — Q1 2017 Earnings Presentation
56 slides from Las Vegas Sands's earnings presentation, Apr 26, 2017
Slide 1: 1Q17 Earnings Call Presentation
The Venetian Macao Sands Cotai Central, Macao Marina Bay Sands, Singapore The Parisian Macao 1Q17 Earnings Call Presentation April 26, 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: First Quarter 2017 Financial Highlights
First Quarter 2017 Financial Highlights Quarter Ended March 31, 2017 vs Quarter Ended March 31, 2016 Net revenue increased 14.3% to $3.11 billion Net income increased 41.3% to $578 million Adjusted property EBITDA increased 24.9% to $1.15 billion Hold‐normalized adjusted property EBITDA was
Slide 5: First Quarter 2017 Financial Results (Y/Y)
First Quarter 2017 Financial Results (Y/Y) Quarter Ended March 31, 2017 vs. Quarter Ended March 31, 2016 $ in millions, except per share information 1Q16 1Q17 $ Change % Change Net Revenue $ 2,717 $ 3,106 $ 389 14.3% Net Income $ 409 $ 578 $ 169 41.3% Adjusted Property EBITDA $ 918 $ 1,147 $ 229 24.
Slide 6: Geographically Diverse Sources of EBITDA
Geographically Diverse Sources of EBITDA EBITDA Contribution by Geography in 1Q 2017 Consolidated Adjusted Property EBITDA1 Consolidated Hold‐Normalized Adj. Prop. EBITDA1,2 $1,147M $1,136M United United States States 14% 14% Singapore Macao Singapore Macao 34% 52% 32% 54% 1. The Macao region includ
Slide 7: LVS Increasing Return of Capital to Shareholders
LVS Increasing Return of Capital to Shareholders Over $16.4 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$10.3 Billion of Capital Returned to Shareholders Since 2012 SCL Recurring Dividends per Share (HK$)1 Return of Capital to Shareholders $3.00 Sands China is committed to returning capital to $2.50 2 shareholders via its recurring bi‐annual dividend
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 March 31, 2017: Trailing twelve months ended March 31, 2017: Cash Balance – $1.97 billion Cash Flow from Operations – $4.21 billion Debt – $9.91 billion1 Adjusted Property EBITD
Slide 10: Macao Operating Performance (Y/Y)
Macao Operating Performance (Y/Y) Quarter Ended March 31, 2017 vs Quarter Ended March 31, 2016 Macao Operations Adjusted Property EBITDA and Adjusted Property EBITDA Margin Adjusted Property EBITDA Hold‐Normalized Adj. Prop. EBITDA1 ($MM) +20.5% +14.3% $700 60% $624 $592 $600 50% $518 $518 $500 40%
Slide 11: Diversified and Stable Sources of Departmental Profit
Diversified and Stable Sources of Departmental Profit Macao Departmental Profit Contribution1 TTM 1Q16 TTM 1Q17 Other Other 2% VIP VIP 4% 11% 11% Mall 14% Mall Mass Tables 13% Mass Tables 50% 50% Hotel 15% Hotel 14% Slots 8% Slots 8% Mass Tables / Slots and Non‐Gaming Generated 89% of Macao’s Depart
Slide 12: Macao: Increased Overnight Visitation, Length of Stay and Win-per-Visit
Macao: Increased Overnight Visitation, Length of Stay and Win‐per‐Visit are Contributing to Growth in Mass Gaming Win Mainland Chinese Avg. Length of Stay for Mass (Tables & Slots) Overnight Visits Mainland Chinese Visitors Win‐per‐Visit1 (MM) ($) (Days) 3.0 1.4 600 2.66 $521 1.2 2.5 1.2 500 $484 1.
Slide 13: Macao Market: Composition of Macao Market Gross Gaming Revenue
Macao Market: Composition of Macao Market Gross Gaming Revenue Composition of Macao Market Gross Gaming Revenue 1 2 2016 Q1 2017 (Estimate) Y/Y % Y/Y % ($MM) GGR Change GGR Change Mass Win (Tables & Slots) $ 14,922 5.3% $ 4,102 14% VIP Win 12,683 ‐11.6% 3,833 12% Total GGR $ 27,605 ‐3.2% $ 7,935 13%
Slide 14: Macao: Continued Double-Digit Growth in Mass Market Segment
Macao: Continued Double‐Digit Growth in Macao’s High Margin Mass Market Segment Macao Market Mass Gaming Revenue (Tables & Slots) & Mass Win‐per‐Visit1 ($MM) $5,000 $1,000 $4,589 $4,449 $4,340 $4,419 $4,102 $3,872 $3,919 $3,989 $4,000 $3,609 $3,816 $800 $3,682 $3,441 $3,497 $3,584 $3,508 $3,351 $3,4
Slide 15: Sands China Mass Market Table Update
Sands China Mass Market Table Update Mass Market Table Win Grew 17.9% in 1Q17 vs. 1Q16 SCL Base Mass Table Win by Quarter SCL Premium Mass Table Win by Quarter Sands China Departmental Profit Margin: 40% - 50% Sands China Departmental Profit Margin: 25% - 40% ($MM) Avg. Win per Table per Day: $6,321
Slide 16: The Parisian Macao: Nearly Three Billion Online Impressions
The Parisian Macao Nearly Three Billion Online Impressions Via Social Media 16
Slide 17: The Parisian Macao: A New Must See Attraction
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 18: The Parisian Macao: Latest Addition to Cotai Strip 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 1Q17, The Parisian Macao continued to ramp and generated: $82 million of adjusted property E
Slide 19: 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% 10% 64% 30% 60% 9% 16% 12% 20% 40% 14% 6% 36% 28% 15% 14% 10% 20% 18% 22% 0% 0% 2012 2016 2012 2016 3 3 S
Slide 20: Marina Bay Sands Update
Marina Bay Sands Update Adjusted Property EBITDA Increased 32.7% to $365 million Adjusted property EBITDA increased 32.7% to $365 Adjusted Property EBITDA million. Rolling win % was 2.52% in 1Q17 compared and Adjusted Property EBITDA Margin to 1.42% in the prior‐year quarter. Actual Hold‐Normalize
Slide 21: Marina Bay Sands: Diversified Sources of Departmental Profit
Singapore’s Marina Bay Sands: Diversified and Stable Sources of Departmental Profit For Las Vegas Sands Marina Bay Sands Hold‐Normalized Departmental Profit Contribution1 TTM 1Q162 TTM 1Q172 Other Other 5% VIP 5% VIP 9% 11% Mall Mall Mass Tables 8% Mass Tables 7% 40% 39% Hotel Hotel 18% 17% Slots 21
Slide 22: Asia Retail Mall Portfolio Continues to Generate Strong Revenue
Asia Retail Mall Portfolio Continues to Generate Strong Revenue and Operating Profit Trailing Twelve Months Retail Mall Revenue ($MM) TTM 1Q17 Sales +7.2% per Sq. Foot² $700 $610 $573 $580 $588 MBS: $600 $569 $1,431 $165 $500 $163 $163 $166 $163 $5 $23 $40 SCC: $400 $64 $65 $65 $63 $66 $896 $300 Fou
Slide 23: Sands China: Retail Mall Revenue Composition
Sands China: Retail Mall Revenue Composition Macao Quarterly Retail Revenue Composition ($MM) $160 $140 $123 $118 $120 $104 $11 $1 $95 $98 $4 $100 $1 $2 $80 $60 $117 $112 $94 $96 $100 $40 $20 $‐ 1Q16 2Q16 3Q16 4Q16 1Q17 Base Rent and Other Fees Turnover Rent Strong Base Rent, Which Grew 24.5% in 1Q1
Slide 24: Las Vegas Operations Update
Las Vegas Operations Update Strong RevPAR Performance Drove 40.2% Adjusted Property EBITDA Growth Adjusted property EBITDA increased 40.2% to $122 Adjusted Property EBITDA million, our strongest quarterly result since Q1 2008 and Adjusted Property EBITDA Margin Actual Hold‐Normalized1 — On a hold‐
Slide 25: Sands Bethlehem Update
Sands Bethlehem Update Leading Tri‐State Region Property Adjusted property EBITDA decreased 5.3% to $36 Adjusted Property EBITDA million and Adjusted Property EBITDA Margin Table games drop decreased 4.4% to $269 million due ($MM) to slower Baccarat and Non‐Baccarat play $45 40% $40 $38 $36 Sl
Slide 26: 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 27: Industry Leading Corporate Social Responsibility Programs
Industry Leading Corporate Social Responsibility Programs
Slide 28: 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 28
Slide 29: 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 30: Appendix
Appendix Sanes LAS VEGAS SANDS CORP.
Slide 31: Hold Normalization Update
Hold Normalization Update In 2012, Sands China began normalizing rolling win using an assumed win percentage of 2.85% when the Company’s actual rolling win percentage fell outside of a range of 2.70%‐3.00% Normalization calculation was based on actual historical trends at the time During the p
Slide 32: Historical Hold-Normalized Adj. Property EBITDA
Historical Hold‐Normalized Adj. Property EBITDA1 $ in millions 1Q16 2Q16 3Q16 4Q16 1Q17 2 Macao Operations Reported $ 518 $ 488 $ 628 $ 610 $ 624 Hold‐Normalized $ 518 $ 510 $ 578 $ 583 $ 592 Marina Bay Sands Reported $ 275 $ 357 $ 391 $ 366 $ 365 Hold‐Normalized $ 383 $ 323 $ 368 $ 366 $ 388 Las Ve
Slide 33: Debt Maturity Profile
Debt Maturity Profile Debt Maturity by Year at March 31, 2017 ($MM) $3,000 $2,506 $2,500 $2,284 $2,030 $2,000 1,781 $1,462 $1,500 $1,233 2,262 $1,000 1,088 1,440 $500 $287 704 $89 214 $22 $0 112 2017 2018 2019 2020 2021 2022 2023 2024 SCL MBS US LVSC % of Total 1% 3% 12% 25% 15% 23% 0% 21% Long Term
Slide 34: Capital Expenditures Expectations
Capital Expenditures Expectations Future Planned Investments Composed Principally of The Parisian Macao and Maintenance ($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 $49 $1,045 $20 $898 $190 $1,000 $830 $925 $275 $725 $50 $767 $210 $390
Slide 35: 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 Destination Portfolio of Nearly Family-friendly Entertainment World Class Concerts, Sporting Events 13,000 Suites and Hotel Rooms and Other Entertainment Offerings Over Two Million sq. feet of World Class Sho
Slide 36: 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
Slide 37: Macao Market Background and Infrastructure Slides
Macao Market Background and Infrastructure Slides
Slide 38: Mass Tables and Slots Comprise the Majority of Total Macao Market GGR
Mass Tables and Slots Comprise the Majority of Total Macao Market GGR and Generate the Bulk of Gaming Operating Profit Composition of Macao Market Gross Gaming Revenue and Est. Gaming Operating Profit¹ 1Q17 TTM 1Q17 $7,935M $2,024M $28,589M $7,483M 100% 100% 19% 18% 80% 80% 48% 46% 60% 60% ~1.6X ~1.
Slide 39: 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 $354 billion Transportation
Slide 40: China Is The World's Largest and Fastest Growing Outbound Tourism Market
1 China Is The World’s Largest and Fastest Growing Outbound Tourism Market Outbound Travel from China Outbound Travel Penetration2 400 60% 56.1% Expenditure (US$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 41: 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 42: 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 $‐ France Brazil Mexico Germany Russia Japan
Slide 43: Mainland Chinese Visitation to Macao Penetration Remains Low
Mainland Chinese Visitation to Macao 1 Penetration Remains Low Year‐Over‐Year Visitation Growth Mainland Chinese Visitation to Macao Twelve Months Ended March 31 Population GDP Per Penetration Province 2016 2017 % Change (MM) Capita (US$) Rate Guangdong 9,030,963 9,162,839 +1% 108 $10,346 8.4% Hunan
Slide 44: 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 45: 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$20,000 • 4 hour train ride • 55‐65 trains in each direction per day Guangzhou – Zhuhai Intercity Rail Guangzhou – Shenzhen – Hong Kong Rail
Slide 46: Market Leading Hotel Capacity at SCL
3 Market Leading Hotel Capacity at SCL Projected Macao Market 4/5 Star Hotel Rooms at December 31, 2018 Macao Market Gaming Operator Hotel Rooms at December 31, 20181 14,000 Hotel % of Gaming % of Total 12,770 Gaming Operator Rooms Operators Market 12,000 The Parisian Sands China ` 12,770 44% 34% Ga
Slide 47: Length-of-Stay of Chinese Overnight Visitors & Chinese Hotel Guests in Macao
Length‐of‐Stay of Chinese Overnight Visitors 4 & Number of Chinese Hotel Guests in Macao Average Length‐of‐Stay of Mainland Chinese Overnight Visitors in Macao Mainland Chinese Hotel Guests in Macao (Days) (MM) 2.5 8.0 7.5 2.2 2.1 2.1 2.1 7.0 6.8 6.6 2.0 2.0 2.0 6.2 6.0 5.2 5.0 4.6 1.5 4.0 1.0 3.0 2
Slide 48: Chinese Day-Trip and Overnight Visitation To Macao
Chinese Day‐Trip and Overnight 4 Visitation To Macao Mainland China Day‐Trip Visitors to Macao Mainland China Overnight Visitors to Macao (MM) (MM) 14.0 14.0 12.0 11.5 12.0 11.2 10.2 10.3 10.0 9.7 9.7 10.0 8.8 9.2 8.8 8.9 8.1 8.0 8.0 7.3 6.9 5.8 6.3 6.0 6.0 5.2 4.0 4.0 2.7 2.7 2.7 2.3 2.0 2.0 0.0 20
Slide 49: Hengqin Island Expands Critical Mass of Tourism Offerings
Hengqin Island Expands Critical Mass of 5 Tourism Offerings for Visitors to the Region Map of Hengqin Island New Area Important Facts Island adjacent to Macao (3X the size of Macao) that has been identified as a strategic zone for cooperation among Guangdong Province, Hong Kong and Macao Master‐
Slide 50: Non-GAAP Measures Reconciliations
Non‐GAAP Measures Reconciliations
Slide 51: Reconciliation of Net Income to Consolidated Adjusted Property EBITDA
Reconciliation of Net Income to Consolidated Adjusted Property EBITDA and Hold‐Normalized Adjusted Property EBITDA Three Months Ended ($MM) March 31, 2017 2016 Net income $ 578 $ 409 Add (deduct): Income tax expense 69 63 Loss on modification or early retirement of debt 5 - Other expense 36 47 Inter
Slide 52: 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 ($MM) March 31, (1) 2017 2016 Net income attributable to Las Vegas Sands Corp. $ 480 $ 320 Pre-opening expense
Slide 53: Non-GAAP Trailing Twelve Month Supplemental Schedule
Non‐GAAP Trailing Twelve Month Supplemental Schedule ($MM) 1Q16 2Q16 3Q16 4Q16 1Q17 TTM 1Q17 Cash Flows From Operations $ 799 $ 988 $ 1,043 $ 1,213 $ 963 $ 4,207 Adjust for: Provision for doubtful accounts (45) (43) (51) (34) (32) (160) Foreign exchange gains (losses) (10) (17) 7 41 (18) 13 Other no
Slide 54: Historical Hold-Normalized Adj. Property EBITDA
Historical Hold‐Normalized Adj. Property EBITDA1 ($MM) 1Q16 2Q16 3Q16 4Q16 1Q17 2 Macao Operations Reported $ 518 $ 488 $ 628 $ 610 $ 624 Hold‐Normalized Adjustment ‐ 22 (50) (27) (32) Hold‐Normalized $ 518 $ 510 $ 578 $ 583 $ 592 Marina Bay Sands Reported $ 275 $ 357 $ 391 $ 366 $ 365 Hold‐Normaliz
Slide 55: The Parisian Macao: Reconciliation of Adjusted Property EBITDA
The Parisian Macao: Reconciliation of Adjusted Property EBITDA to Hold‐Normalized Adjusted Property EBITDA The Parisian Macao: Reconciliation of Adjusted Property EBITDA to Hold‐Normalized Adjusted Property EBITDA1 ($MM) 4Q16 1Q17 Change As Reported $ 95 $ 82 ‐13.7% Hold‐Normalized Adjustment (17) 2
Slide 56: Sands
Sands LAS VEGAS SANDS CORP,