Las Vegas Sands Corp. · NYSE:LVS

Las Vegas Sands — Q3 2023 Earnings Presentation

70 slides from Las Vegas Sands's earnings presentation, Oct 18, 2023

  1. Slide 1: 3Q23 Update

    BS) Ine Sands 3Q23 Update October 2023

  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. These forward-looking statements include the discussions of our business strategies and expectations concerning future

  3. Slide 3: The Investment Case for Las Vegas Sands

    The Investment Case for Las Vegas Sands  Global leader in Integrated Resort development and operation delivering industry-leading returns  Largest scale operator in leading markets with industry-leading revenues and margins  Investing in promising growth opportunities  Disciplined, experienced l

  4. Slide 4: Third Quarter 2023 Highlights

    Third Quarter 2023 Highlights  Recovery in travel and tourism spending continued in both Macao and Singapore  Adjusted property EBITDA reached $1,122 million (94% of 3Q19) − $1,073 million on a hold-normalized basis (93% of 3Q19)  Adjusted Property EBITDA margin reached 40.1% (39.2% on a hold-nor

  5. Slide 5: Operating Environment in Macao

    Operating Environment in Macao  Recovery of travel and tourism spending in Macao continued during the quarter  For the Macao market in total for the quarter ended September 30, 2023: − Market-wide mass gaming revenue reached ~$5.1 billion (~92% of 3Q19) − Visitation from China excluding Guangdong

  6. Slide 6: Operating Environment at MBS in Singapore

    Operating Environment at MBS in Singapore  Recovery in travel and tourism spending in Singapore continued during the quarter  Visitation from China continued to improve, with airlift capacity recovery of ~77% in the quarter compared to 3Q19  Marina Bay Sands (MBS) reported: − 3Q23 adjusted proper

  7. Slide 7: Third Quarter 2023 Financial Results

    Third Quarter 2023 Financial Results Quarter Ended September 30, 20231 vs September 30, 20221 and 2019 Note: results for the third quarter of 2022 reflects lower market visitation due to the impact on travel and tourism of the Covid-19 pandemic; the third quarter of 2019 is provided to allow for a c

  8. Slide 8: LVS Adjusted Property EBITDA Performance

    LVS Adjusted Property EBITDA Performance Select Quarterly Results Note: results for the third quarter and fourth quarters of 2022 reflect lower market visitation due to the impact on travel and tourism of the Covid-19 pandemic. LVS Adjusted Property EBITDA1 ($ in US millions) Adjusted Property EBITD

  9. Slide 9: Sands China

    Sands China HESares

  10. Slide 10: Sands China Ltd.

    Sands China Ltd. Visitation Increases Contribute to Recovery in Financial and Operating Performance Note: results for the third quarter of 2022 reflect lower market visitation due to the impact on travel and tourism of the Covid-19 pandemic; the third quarter of 2019 is provided to allow for a compa

  11. Slide 11: Macao Financial Performance

    Macao Financial Performance Quarter ended September 30, 2023 versus quarter ended June 30, 2023 Net Revenue Adj. Property EBITDA Adj. Property EBITDA Margin Growth Growth Growth 2Q23 3Q23 $ % 2Q23 3Q23 $ % 2Q23 3Q23 bps The Venetian Macao $653 $723 $70 10.7% $252 $290 $38 15.1% 38.6% 40.1% 150 The L

  12. Slide 12: Sands China Mass Market Table Update

    Sands China Mass Market Table Update Base Mass and Premium Mass Table Win SCL Base Mass Table Win by Quarter SCL Premium Mass Table Win by Quarter ($ in US millions) ($ in US millions) $800 $800 Avg. Win per Table per Day: $7,243 Avg. Win per Table per Day: $13,587 $700 $700 ~90% of ~89% of $681 3Q1

  13. Slide 13: Sands China Mass Market Table and Slots Update

    Sands China Mass Market Table and Slots Update Total Mass Table Win and Slots Win SCL Mass Table1 Win by Quarter SCL Slots2 Win by Quarter ($ in US millions) ($ in US millions) $1,600 Avg. Win per Table per Day: $9,282 $200 Avg. Win per Unit per Day: $415 $1,400 ~90% of ~99% of 3Q19 3Q19 $1,286 $159

  14. Slide 14: Macao Market: Mass Gaming Segment

    Macao Market: Mass Gaming Segment Mass GGR Tables & Slots Macao Market Mass Gaming Revenue (Tables & Slots) & Mass Win-per-Visit1 ($ US in millions) $6,000 $1,400 $5,608 $5,440 $5,523 $5,500 $5,356 $1,200 $5,251 ~92% of 3Q19 $5,108 $4,841 $5,000 $4,955 $4,864 $4,730 $1,000 $4,706 $4,500 $4,146 $4,16

  15. Slide 15: Macao Market: Total Visitation

    Macao Market: Total Visitation Macao Quarterly Market Visitation1 (millions) 12.0 ~85% of 10.4 3Q19 10.0 9.9 9.9 10.0 9.2 9.0 8.8 8.3 8.5 8.4 8.3 7.9 8.0 7.7 6.7 6.0 4.9 4.0 2.0 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q23 2Q23 3Q23 Visitation to Macao1 reached ~8.4 million peopl

  16. Slide 16: Macao Visitation and Transportation Recovery Overview

    Macao Visitation and Transportation Recovery Overview Visitation to Macao: 1 August QTD Macao Visitation (millions) 2019 2023 % of 2019 China, excluding Guangdong Province 2.79 2.01 72% Guangdong Province 2.42 2.22 92% Total China 5.22 4.23 81% Hong Kong 1.30 1.37 106% Air Passenger Capacity:  Maca

  17. Slide 17: Visitation from China to Macao

    Visitation from China to Macao1 Exclusive of Guangdong Province August-QTD2 Reached 72% of 2019 Visitation Aug-23 QTD2 Visitation - % of Aug-19 QTD Visitation from China to Macao1,2 August QTD Visitation Population GDP Per Penetration Province 2019 2023 % of 2019 (MM) Capita (US$) Rate Guangdong 2,4

  18. Slide 18: Macao Airport Monthly Volume Reached 64% of 3Q19 Level

    Sands China Macao Airport Monthly Volume Reached 64% of 3Q19 Level in 3Q23 Macao Airport Passenger Volume 2019 2023 (000’s) (000’s) % of 2019 1,000 931 80% 900 856 853 Flight Volume 812 792 ~64% of 3Q19 in 64% 65% 778 778 781 781 62% 800 730 752 767 3Q23 55% 60% 700 49% 47% 603 600 552 39% 500 432 4

  19. Slide 19: Macao and Hong Kong Airport Scheduled Seat Capacity Recovery Rates

    Sands China Macao and Hong Kong Airport Scheduled Seat Capacity Recovery Rates Monthly Scheduled Seat Capacity - % of 2019 Levels Macao Airport HKIA 100% 90% 85% 84% 79% 78% 78% 80% 74% 75% 75% 77% 70% 72% 70% 66% 59% 60% 53% 55% 53% 50% 51% 61% 64% 49% 51% 49% 50% 44% 55% 38% 40% 52% 57% 40% 42% 40

  20. Slide 20: Marina Bay Sands

    Marina Bay Sands HESares

  21. Slide 21: Marina Bay Sands: Strong Financial Performance Continued

    Marina Bay Sands Strong Financial Performance Continued During The Quarter Note: visitation to Singapore in the quarter ended September 2022 is meaningfully lower than in 2019, prior to the impact of the pandemic; the third quarter of 2019 is provided to allow for a comparison to a quarterly period

  22. Slide 22: Marina Bay Sands: Strong Recovery in Mass Gaming Revenue

    Marina Bay Sands Strong Recovery in Mass Gaming Revenue (Tables & Slots) MBS Mass Gaming Revenue (Tables & Slots) ($ US in millions) ~139% of 3Q19 $600 $580 $569 $549 $550 $500 $477 $449 $441 $437 $450 $432 $427 $427 $428 $428 $430 $424 $420 $402 $408 $400 $390 $350 $300 $250 $200 $150 1Q17 2Q17 3Q1

  23. Slide 23: Scheduled Aircraft Seat Capacity from China to Singapore

    Marina Bay Sands Scheduled Aircraft Seat Capacity from China to Singapore Estimated Scheduled China to Singapore Aircraft Seat Capacity – Comparison to 2019 Monthly Capacity Mainland China Scheduled Seat Capacity to Singapore 100% 90% Flight capacity 80% 79% 80% from China ~77% 73% recovered in 3Q23

  24. Slide 24: Retail Mall Operations

    Retail Mall Operations HESares

  25. Slide 25: Retail Mall Portfolio in Asia

    Retail Mall Portfolio in Asia Trailing Twelve Months Retail Mall Revenue ($ in US millions) $800 $698 TTM 3Q23 Sales per Sq. Foot² $700 1 1 $616 $595 $579 $592 $600 MBS $245 $2,998 $500 $208 $232 $226 $230 $28 Parisian Macao $400 $641 $26 $59 Londoner Macao $29 $25 $48 $25 $51 $1,701 $300 $47 $47 $1

  26. Slide 26: Retail Mall Portfolio in Asia: Tenant Sales

    Retail Mall Portfolio in Asia Tenant Sales ($ per Sq. Foot, Unless Otherwise Indicated) 2 3Q23 Sales per Sq. Ft. GLA1 Occupancy % at (Sq. Ft) Period End TTM 3Q23 TTM 2Q23 TTM 1Q23 TTM 4Q22 TTM 3Q22 The Shoppes at Marina Bay Sands 616,699 99.5% $2,998 $2,912 $2,809 $2,596 $2,359 Shoppes at Venetian 8

  27. Slide 27: Balance Sheet, Liquidity and Return of Capital to Shareholders

    Balance Sheet, Liquidity and Return of Capital to Shareholders

  28. Slide 28: Strong Balance Sheet and Liquidity

    Strong Balance Sheet and Liquidity As of September 30, 2023: Trailing Twelve Months Ended September 30, 2023:  Cash Balance1 – $5.57 billion  Adjusted Property EBITDA – $3.11 billion  Liquidity2 – $9.74 billion  Cash Flow from Operations – $2.12 billion  Debt – $14.17 billion  Net Debt – $8.60

  29. Slide 29: Debt Maturity Profile

    Debt Maturity Profile Debt Maturity by Year ($ in US millions) $4,500 $4,000 $3,573 $3,480 $3,500 250 $3,000 1,023 1,680 $2,500 $1,887 500 $1,900 $2,000 137 $1,400 $1,500 1,000 $1,000 1,900 750 1,750 1,800 $700 2 $700 $600 $500 1 800 700 650 700 600 $15 $0 2023 2024 2025 2026 2027 2028 2029 2030 203

  30. Slide 30: LVS Return of Capital to Shareholders

    LVS Return of Capital to Shareholders $22.3 Billion of Capital Returned to Shareholders (2012 – 2020) Total Capital Returned to LVS Shareholders ($ in US millions) Year Ended December 31, 2012 - 3 2012 2013 2014 2015 2016 2017 2018 2019 2020 2020 % 1,2 LVS Dividends Paid $824 $1,153 $1,610 $2,074 $2

  31. Slide 31: Investment and Capital Expenditures

    Investment and Capital Expenditures

  32. Slide 32: Sands China: Recent Capital Investment

    Sands China: Recent Capital Investment Investments in Increased Capacity and Elevated Customer Experience  Completed Investments: − The Londoner Macao Phase I: ~$1.35 billion − Grand Suites at Four Seasons Macao: ~$450 million − Londoner Court: ~$400 million  The Londoner Macao Phase II: ~$1.0 bil

  33. Slide 33: The Londoner Macao

    The Londoner Macao Phase I Complete, Phase II Commencing in 4Q23  Phase II: ─ Renovation and repositioning of the Sheraton and Conrad hotels ─ Renovation of the Pacifica casino ─ Creation of new dining, retail and entertainment offerings ─ Introduction of new health and wellness experiences  Phase

  34. Slide 34: Long-Term Commitment to Macao

    Long-Term Commitment to Macao ~$3.8 billion of investment commitment through 2032 (~92% non-gaming), with an incremental ~$700 million commitment at a Macao market level GGR of ~$22.5 billion 10-Year Commitment ($ in US millions) Capital Operating Capex Commitment ~$2,700 Operating Commitment ~$1,10

  35. Slide 35: Marina Bay Sands: Recent Capital Investment

    Marina Bay Sands: Recent Capital Investment Elevation of hotel towers, premium gaming areas, public spaces, lifestyle experiences  Renovation and Refurbishment Program to elevate and enhance room and suite product and conduct refurbishments to increase Singapore’s business and leisure tourism appea

  36. Slide 36: Marina Bay Sands: Phase I Completion 4Q23, Phase II through 2025

    Marina Bay Sands Phase I Completion 4Q23, Phase II to be completed in phases through 2025  MBS Renovation Phase II: ─ Hotel Tower 3 – introduction of redesigned rooms and suites ─ Lobby and VIP arrival renovation ─ Skypark amenities ─ Additional F&B/dining options ─ Spa and wellness facilities  MB

  37. Slide 37: Marina Bay Sands Renovation Program

    Marina Bay Sands Renovation Program Introduction of New Suites and Amenities Continues Marina Bay Sands has now introduced ~1,200 redesigned rooms, of which ~300 are new suites, as well as additional dining, entertainment and retail offerings 37

  38. Slide 38: Capital Expenditures Expectations

    Capital Expenditures Expectations ($ US in millions) LVS Capex Expectations $2,000 $1,650 $1,500 $1,330 $33 $600 $1,000 $914 $925 $835 $825 $825 $825 $88 $651 $175 $175 $175 $500 $825 $475 $196 $500 $325 $325 $325 $157 $200 $462 $351 $298 $325 $325 $325 $225 $225 $0 2020A 2021A 2022A 2023E 2024E 202

  39. Slide 39: 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

  40. Slide 40: Environmental, Social and Governance (ESG)

    Environmental, Social and Governance (ESG)

  41. Slide 41: Environmental, Social and Governance (ESG)

    Environmental, Social and Governance (ESG) Industry Leading ESG Platform  LVS is committed to providing leadership in ESG through collaboration with Team Members, guests, small and medium enterprises, and community organizations where we operate  Minimizing our environmental impact, practicing goo

  42. Slide 42: Sustainability Awards and Certifications

    Sustainability Awards and Certifications Recognized by Independent Third Parties as a Global Leader in Sustainability Highlights:  In 2022, Sands was named to the Dow Jones Sustainability Indices (DJSI) on DJSI World for the third consecutive year and DJSI North America for the fifth consecutive ye

  43. Slide 43: Sustainability Awards and Certifications (Cont'd)

    Sustainability Awards and Certifications (Cont’d) Recognized by Independent Third Parties as a Global Leader in Sustainability Las Vegas Sands Singapore Macao Dow Jones Sustainability Index, North America LEED Platinum for Building Operations and Maintenance Dow Jones Sustainability Index, Asia Paci

  44. Slide 44: Appendices

    Appendices HESares

  45. Slide 45: Sources of EBITDA

    Sources of EBITDA EBITDA Contribution by Geography in Fiscal Year Ended December 31, 2019 ($ in US millions) LVS 2019 Adjusted Property EBITDA1 $4,850 $1,661 $3,189 MBS Adjusted Singapore SCL Adjusted Property 34% Property EBITDA1 Margin: Macao EBITDA1 66% 53.6% Margin: 36.1% LVS Adjusted Property E

  46. Slide 46: Market Leading Hotel Capacity

    Market Leading Hotel Capacity SCL is the Leader in Macao Hotel Room and Suite Inventory Macao Market 4/5 Star Hotel Rooms at September 30, 20231 – Gaming Operators Cotai ~ 27,000 Rooms by Gaming Operators Total Macao ~ 30,000 Rooms by Gaming Operators MGM 12,103 Rooms and MGM 12,392 Rooms and China

  47. Slide 47: Sands China Market Leadership

    Sands China Market Leadership Leadership in Macao Investment Expansion and Reinvestment  ~$15 billion through December 31, 2023  289 suites in the Grand Suites at Four Seasons Macao  Approximately 30 million square feet of interconnected opened October 2020 (~1 million SF of suite product) facili

  48. Slide 48: Sands China Market Leadership

    Sands China Market Leadership Continued Expansion of Market-Leading Cotai Strip Property Portfolio The Venetian St. Regis Hotel Macao 400 Suites 2,905 Suites Londoner Court 368 Suites C (Opened September O 2021) Grand Suites at Four Seasons T Conrad Macao 289 Suites A 659 Rooms & Suites (Opened Octo

  49. Slide 49: Marina Bay Sands Expansion

    Marina Bay Sands Expansion HESares

  50. Slide 50: Marina Bay Sands, Singapore

    Marina Bay Sands, Singapore Contribute to Economic Growth and Enhance Tourism Appeal of Singapore 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 iconic architecture to Singap

  51. Slide 51: Marina Bay Sands Expansion

    Marina Bay Sands Expansion Luxurious New Hotel, Entertainment, MICE and Retail Offerings Las Vegas Sands entered into a development agreement with the Singapore government in April 2019 to expand Marina Bay Sands  Iconic New Luxury Hotel Tower: − All-suite room product designed to set a new standar

  52. Slide 52: Marina Bay Sands Expansion

    Marina Bay Sands Expansion A Development Agreement with the Singapore Tourism Board will allow an expansion of Marina Bay Sands 52

  53. Slide 53: Marina Bay Sands Expansion

    Marina Bay Sands Expansion Artistic Impression Design, development and programming work remain ongoing, 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. 53

  54. Slide 54: Macao Market Background and Infrastructure Slides

    Macao Market Background and Infrastructure Slides

  55. Slide 55: Market-Leading ~$15 Billion of Investment Through 2023

    Market-Leading ~$15 Billion of Investment Through 2023 Investing in Macao’s Future as a Leisure & Business Tourism Destination  Industry-leading Integrated Resort portfolio ─ Portfolio of ~12,000 rooms and suites ─ ~2 million square feet of new luxurious hotel suite inventory introduced in 2020 and

  56. Slide 56: Macao's Long-Term Growth Opportunity

    Macao’s Long-Term Growth Opportunity Business & Leisure Tourism Drivers Future growth drivers As a result, Macao’s visitors will  More efficient and affordable  Come from further away transportation infrastructure  Greater number of hotel rooms, luxury suite offerings, MICE and non-  Stay longer

  57. Slide 57: Market Leading Hotel Capacity at SCL

    Market Leading Hotel Capacity at SCL Macao Market 4/5 Star Hotel Rooms at September 30, 2023 Cotai Total Market % of % of % of Total Concessionaire Rooms Concessionaires Rooms Concessionaires Market 16,000 Sands China 12,103 45% 12,392 41% 30% Galaxy Entertainment 5,064 19% 5,564 18% 14% 14,000 M el

  58. Slide 58: Supplemental Data

    Supplemental Data HESares

  59. Slide 59: Macao Market: Mass Gaming Revenue

    Macao Market: Mass Gaming Revenue Macao Market Mass Gaming Revenue ($ in US millions) Mass Win (Tables and Slots)1 Q1 Q2 Q3 Q4 Total 2019 $5,440 $5,356 $5,523 $5,608 $21,927 Growth ('19 v '18) 9.8% 10.6% 13.5% 6.8% 10.1% 2022 2 $1,779 $890 $621 $1,157 $4,447 Growth ('22 v '21) -14.2% -62.0% -64.6% -

  60. Slide 60: Macao Market: VIP Gaming Revenue

    Macao Market: VIP Gaming Revenue Macao Market VIP Gaming Revenue ($ in US millions) VIP Win1 Q1 Q2 Q3 Q4 Total 2019 $3,892 $3,640 $3,173 $3,301 $14,006 Growth ('19 v '18) -12.1% -13.5% -26.0% -25.2% -19.2% 2 2022 $372 $140 $76 $129 $717 Growth ('22 v '21) -54.5% -82.0% -86.1% -61.5% -71.1% 2 3 2023

  61. Slide 61: Sands China VIP Table Metrics

    Sands China VIP Table Metrics SCL Rolling Volume by Quarter SCL Rolling Win by Quarter ($ in US billions) ($ in US millions, except per table amounts) $16 $500 $14.6 Avg. Win per Table $439 per Day: $19,011 $400 $12 Avg. Win per Table per Day: $13,660 $300 $8 ~33% of 3Q19 $200 $186 $4 $4.9 $100 $0.5

  62. Slide 62: Reconciliation of Non-GAAP Measures and Other Financial Information

    Reconciliation of Non-GAAP Measures and Other Financial Information

  63. Slide 63: Non-GAAP Reconciliation

    Non-GAAP Reconciliation Net Income (Loss) to Consolidated Adjusted Property EBITDA1 ($ in US millions) 3Q19 1Q22 2Q22 3Q22 4Q22 2022 1Q23 2Q23 3Q23 Net income (loss) $657 ($478) ($414) ($380) ($269) ($1,541) $145 $368 $449 Add (deduct): Income tax expense (benefit) 77 2 110 60 (18) 154 50 49 122 Los

  64. Slide 64: Non-GAAP Measures

    Non-GAAP Measures Adjusted and Hold-Normalized Net Income (Loss) ($ in US millions) Three Months Ended September 30, 2023 2022 2019 Net income (loss) attributable to LVS $380 ($239) $533 Pre-opening expense 3 4 9 Development expense 44 26 4 Loss on disposal or impairment of assets 4 2 10 Other (inco

  65. Slide 65: Non-GAAP Measures

    Non-GAAP Measures Adjusted and Hold-Normalized Earnings (Loss) per Diluted Share ($ in per share amounts) Three Months Ended September 30, 2023 2022 2019 Per diluted share of common stock: Net income (loss) attributable to LVS $0.50 ($0.31) $0.69 Pre-opening expense - 0.01 0.01 Development expense 0

  66. Slide 66: Non-GAAP Reconciliation

    Non-GAAP Reconciliation Trailing Twelve Month Supplemental Schedule1 ($ in US millions) 3Q19 4Q22 1Q23 2Q23 3Q23 TTM 3Q23 Cash Flows From Operations $814 ($104) $441 $941 $839 $2,117 Adjust for: (Provision for) recovery of credit losses (1) (1) 6 (5) (3) (3) Foreign exchange gains (losses) (11) 38 (

  67. Slide 67: Historical Hold-Normalized Adjusted Property EBITDA

    Historical Hold-Normalized Adjusted Property EBITDA1 ($ in US millions) 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 2 Macao Operations Reported $858 $765 $755 $811 $67 ($312) ($233) $47 $100 $132 $32 $74 ($11) ($110) ($152) ($51) $398 $541 $631 Hold

  68. Slide 68: Supplemental Information

    Supplemental Information 3Q23 and 3Q22 ($ in US millions) Three Months Ended September 30, 2023 Amortization Loss Pre-Opening Depreciation of Leasehold on Disposal or and Adjusted Operating and Interests Impairment Development Royalty Stock-Based Corporate Property Income (Loss) Amortization in Land

  69. Slide 69: Supplemental Information

    Supplemental Information YTD 3Q23 and YTD 3Q22 ($ in US millions) Nine Months Ended September 30, 2023 Amortization Loss Pre-Opening Depreciation of Leasehold on Disposal or and Adjusted Operating and Interests Impairment Development Royalty Stock-Based Corporate Property Income (Loss) Amortization

  70. Slide 70: ink Sands

    ink Sands IWS

Las Vegas Sands — Q3 2023 Earnings Presentation on 6ix