Las Vegas Sands Corp. · NYSE:LVS
Las Vegas Sands — Q2 2023 Earnings Presentation
58 slides from Las Vegas Sands's earnings presentation, Jul 19, 2023
Slide 1: 2Q23 Earnings Call Presentation
2Q23 Earnings Call Presentation July 19, 2023
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
Slide 3: The Investment Case for Las Vegas Sands
The Investment Case for Las Vegas Sands Global leader in Integrated Resort development and operation Strong balance sheet and liquidity Unique MICE-based business model delivering industry-leading returns Unmatched development and operating track record creates competitive advantage as we pu
Slide 4: Second Quarter 2023 Highlights
Second Quarter 2023 Highlights Recovery in travel and tourism spending is underway in both Macao and Singapore Adjusted property EBITDA reached $973 million (88% of 2Q19) − $943 million on a hold-normalized basis (82% of 2Q19) Adjusted Property EBITDA margin reached 38.3% (37.6% on a hold-norm
Slide 5: Operating Environment in Macao
Operating Environment in Macao Recovery of travel and tourism spending is underway in Macao In Macao in the quarter ended June 30, 2023: − Market-wide mass gaming revenue reached ~87% of 2Q19 − Visitation from China excluding Guangdong province reached ~51% of the 2Q19 visitation Sands China p
Slide 6: Operating Environment at MBS in Singapore
Operating Environment at MBS in Singapore The recovery at Marina Bay Sands (MBS) in Singapore continued to progress: − 2Q23 adjusted property EBITDA reached $432 million (125% of 2Q19) • $413 million on a hold-normalized basis (105% of 2Q19) − Mass win reached an all time property record $580 mill
Slide 7: Second Quarter 2023 Financial Results
Second Quarter 2023 Financial Results Quarter Ended June 30, 20231 vs Quarters Ended June 30, 20221 and 2019 Note: results for the second quarter of 2023 as well as the second quarter of 2022 reflect lower market visitation due to the impact of the Covid-19 pandemic; the second quarter of 2019 is pr
Slide 8: LVS Adjusted Property EBITDA Performance
LVS Adjusted Property EBITDA Performance Select Quarterly Results Note: results for the second quarter of 2023, as well as the second quarters of 2020, 2021 and 2022, reflect lower market visitation due to the impact of the Covid-19 pandemic; the second quarter of 2019 is provided to allow for a com
Slide 9: Sands China Ltd.
Sands China Ltd. Higher Visitation Drives Recovery in all Segments and Adjusted Property EBITDA Note: results for the second quarter of 2023 as well as the second quarter of 2022 reflect lower market visitation due to the impact of the Covid-19 pandemic; the second quarter of 2019 is provided to all
Slide 10: Sands China Mass Market Table Update
Sands China Mass Market Table Update Base Mass and Premium Mass Table Win by Quarter Note: results for the second quarter of 2023, as well as the second quarters of 2020, 2021 and 2022, reflect lower market visitation due to the impact of the Covid-19 pandemic; the second quarter of 2019 is provided
Slide 11: Sands China Mass Market Table and Slots Update
Sands China Mass Market Table and Slots Update Total Mass Table Win and Slots Win by Quarter Note: results for the second quarter of 2023, as well as the second quarters of 2020, 2021 and 2022, reflect lower market visitation due to the impact of the Covid-19 pandemic; the second quarter of 2019 is
Slide 12: Macao Market: Mass Gaming Segment
Macao Market: Mass Gaming Segment Mass GGR Tables & Slots Macao Market Mass Gaming Revenue (Tables & Slots) & Mass Win-per-Visit1 ($ US in millions) $6,000 $1,400 $5,608 $5,440 ~87% of 2Q19 $5,356 $5,523 $5,500 $5,251 $4,841 $1,193 $4,955 $1,200 $5,000 $4,864 $4,706 $1,091 $1,069 $4,680 $1,035 $4,50
Slide 13: Macao Market: Total Visitation
Macao Market: Total Visitation Macao Quarterly Market Visitation1 (millions) 12.0 10.4 10.0 9.9 9.9 10.0 9.2 ~68% of 8.8 8.3 9.0 2Q19 8.5 8.3 7.9 8.0 7.7 6.7 6.0 4.9 4.0 3.2 1.9 2.2 2.0 1.9 1.7 1.8 2.0 1.6 1.3 0.8 0.9 0.0 0.0 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20
Slide 14: Macao Visitation and Transportation Recovery Overview
Macao Visitation and Transportation Recovery Overview Visitation to Macao: 2Q Macao Visitation (millions) 2019 2023 % of 2019 China, excluding Guangdong Province 4.01 2.04 51% Guangdong Province 2.85 2.27 80% Total China 6.87 4.31 63% Hong Kong 1.90 1.95 102% Air Passenger Capacity: Macao Airport
Slide 15: Visitation from China to Macao
Visitation from China to Macao1 Exclusive of Guangdong Province 2Q23 Reached 51% of 2019 Visitation 2Q23 Visitation - % of 2Q19 Visitation from China to Macao1 Three Months Ended June 30, Population GDP Per Penetration Province 2019 2023 % of 2019 (MM) Capita (US$) Rate Guangdong 2,852,191 2,270,635
Slide 16: Macau Airport Monthly Volume Reached 55% in June 2023
Sands China Macau Airport Monthly Volume Reached 55% in June 2023 Macau Airport Passenger Volume 2019 2023 (000’s) (000’s) % of 2019 1,000 931 80% Flight Volume 900 856 853 ~50% of 2Q19 in 812 792 778 778 781 781 767 2Q23 800 730 752 55% 60% 700 49% 47% 600 39% 500 432 40% 31% 378 387 400 27% 304 30
Slide 17: Marina Bay Sands: Record Mass Revenue Drives Strong Financial Performance
Marina Bay Sands Record Mass Revenue Drives Strong Financial Performance Note: visitation to Singapore in the quarters ended June 2023 and 2022 is meaningfully lower than in 2019, prior to the impact of the pandemic; the second quarter of 2019 is provided to allow for a comparison to a quarterly per
Slide 18: 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) All-time Property Record Mass $600 $580 Revenue (~136% of 2Q19) $549 $550 $500 $477 $449 $432 $441 $437 $450 $427 $428 $428 $430 $427 $424 $420 $402 $408 $390 $400 $35
Slide 19: Changi Airport Monthly Passenger Volume Continued to Increase
Marina Bay Sands Changi Airport Monthly Passenger Volume Continued to Increase Changi Passenger Volume1 2019 2022 – YTD 2023 (Millions) (Millions) % of 2019 89% 8.0 90% 82%82% 85% 77%78% 7.0 80% 6.4 72% 69% 75% 5.8 5.9 5.9 5.7 65% 70% 6.0 5.7 5.6 5.6 5.5 5.6 63% 5.4 65% 5.1 56% 56% 60% 4.8 5.0 50% 4
Slide 20: 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 from China ~50% 80% recovered in 2Q23 70% 60% 60%
Slide 21: Strong Balance Sheet and Liquidity
Strong Balance Sheet and Liquidity As of June 30, 2023: Trailing Twelve Months Ended June 30, 2023: Cash Balance1 – $5.77 billion Adjusted Property EBITDA – $2.18 billion Liquidity2 – $9.44 billion Cash Flow from Operations – $1.13 billion Debt – $14.70 billion Net Debt – $8.93 billion (
Slide 22: Debt Maturity Profile
Debt Maturity Profile Debt Maturity by Year ($ in US millions) $4,500 $4,079 $4,000 749 $3,491 $3,500 $3,000 1,030 1,691 $2,500 $1,888 500 $1,900 $2,000 138 $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 $31 $0 2023 2024 2025 2026 2027 2028 2029 2030 203
Slide 23: Capital Expenditures Expectations
Capital Expenditures Expectations ($ US in millions) $1,500 LVS Capex Expectations $1,330 $25 $140 $8 $1,000 $1,025 $1,025 $1,000 $284 $914 $950 $25 $865 $22 $200 $66 $300 $10 $300 $83 $140 $651 $550 $411 $15 $350 $2 $300 $300 $382 $181 $500 $300 $4 $50 $231 $151 $50 $200 $183 $100 $201 $350 $425 $4
Slide 24: Investments for Expansion and Growth
Investments for Expansion and Growth Investments in IR Portfolio in Macao and Singapore Sands China: 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 billion
Slide 25: 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 ~$1,10
Slide 26: The Londoner Macao
The Londoner Macao Phase I Complete, Phase II to Commence H2 2023 Phase II: ─ Renovation and repositioning of the Sheraton and Conrad hotels ─ Renovation of the Pacifica casino ─ Creation of new dining, retail and entertainment offerings ─ Introduction of new health and wellness experiences ─ Addi
Slide 27: Marina Bay Sands Renovation Program
Marina Bay Sands Renovation Program Introduction of New Suites and Amenities Continues Marina Bay Sands has now introduced ~1,100 refreshed and reimagined rooms, of which ~250 are luxurious new suites, as well as additional dining, entertainment and retail offerings 27
Slide 28: Environmental, Social and Governance (ESG)
Environmental, Social and Governance (ESG) Industry Leading ESG Platform LVS is committed to providing leadership in ESG through collaboration with Team Members, guests, small and medium enterprises, and community organizations where we operate Minimizing our environmental impact, practicing goo
Slide 29: Sustainability Awards and Certifications
Sustainability Awards and Certifications Recognized by Independent Third Parties as a Global Leader in Sustainability Singapore Macao LEED Platinum for Building Operations and Dow Jones Sustainability Index, Asia Pacific Maintenance (2021, 2022) Sands Expo and Convention Center at Marina Dow Jones S
Slide 30: Disciplined Execution of Our Global Growth Strategy
Disciplined Execution of Our Global Growth Strategy Focused on the Most Promising Global Development Opportunities Uniquely positioned to bring our unmatched track record and powerful convention-based business model to the world’s most promising Integrated Resort development opportunities Balanc
Slide 31: Appendices
Appendices HESares
Slide 32: Sources of EBITDA
Sources of EBITDA EBITDA Contribution by Geography in Fiscal Year Ended December 31, 2019 ($ in US millions) LVS 2019 Adjusted Property EBITDA1 $4,850 $1,661 $3,189 MBS Adjusted Singapore SCL Adjusted Property 34% Property EBITDA1 Margin: Macao EBITDA1 66% 53.6% Margin: 36.1% LVS Adjusted Property E
Slide 33: Retail Mall Portfolio in Asia
Retail Mall Portfolio in Asia Trailing Twelve Months Retail Mall Revenue ($ in US millions) $800 TTM 2Q23 Sales $700 1 per Sq. Foot² $642 $616 1 $595 $579 1 $592 $600 $194 MBS $500 $232 $2,912 $208 $230 $226 $34 $400 $52 Parisian Macao $29 $25 $26 $25 $541 $48 $51 Londoner Macao $300 $47 $47 $178 $1
Slide 34: Retail Mall Portfolio in Asia
Retail Mall Portfolio in Asia Tenant Sales ($ per Sq. Foot, Unless Otherwise Indicated) 2 2Q23 Sales per Sq. Ft. GLA1 Occupancy % at (Sq. Ft) Period End TTM 2Q23 TTM 1Q23 TTM 4Q22 TTM 3Q22 TTM 2Q22 The Shoppes at Marina Bay Sands 617,119 100.0% $2,912 $2,809 $2,596 $2,359 $2,051 Shoppes at Venetian
Slide 35: 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 June 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 Suite
Slide 36: Sands China Market Leadership
Sands China Market Leadership Continued Expansion of Market-Leading Cotai Strip Property Portfolio LVS’ Cotai Strip Properties Leadership in Macao Investment Grand Suites at Four Seasons Macao ~$15 billion 289 Suites (Opened Approximately 30 million square feet of interconnected facilities on Co
Slide 37: Marina Bay Sands Expansion
Marina Bay Sands Expansion HESares
Slide 38: 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
Slide 39: 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
Slide 40: Marina Bay Sands Expansion
Marina Bay Sands Expansion A Development Agreement with the Singapore Tourism Board will allow an expansion of Marina Bay Sands 40
Slide 41: 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. 41
Slide 42: Macao Market Background and Infrastructure Slides
Macao Market Background and Infrastructure Slides
Slide 43: Market-Leading ~$15 Billion of Investment
Market-Leading ~$15 Billion of Investment Investing in Macao’s Future as a Leisure & Business Tourism Destination Industry-leading Integrated Resort portfolio ─ Portfolio of ~12,000 suites and hotel rooms ─ ~2 million square feet of new luxurious hotel suite inventory introduced in 2020 and 2021
Slide 44: Macao's Long-Term Growth Opportunity
Macao’s Long-Term Growth Opportunity Business & Leisure Tourism Drivers Future growth drivers As a result, Macao’s visitors will More efficient and affordable Come from further away transportation infrastructure Greater number of hotel rooms, luxury suite offerings, MICE and non- Stay longer
Slide 45: Market Leading Hotel Capacity at SCL
Market Leading Hotel Capacity at SCL Macao Market 4/5 Star Hotel Rooms at June 30, 2023 Cotai Total Market % of % of % of Total Concessionaire Rooms Concessionaires Rooms Concessionaires Market 16,000 Sands China 12,103 45% 12,392 41% 31% Galaxy Entertainment 5,064 19% 5,564 18% 14% 14,000 Melco 4,6
Slide 46: Supplemental Data
Supplemental Data HESares
Slide 47: Macao Market: Mass Gaming Revenue
Macao Market: Mass Gaming Revenue Macao Market Mass Gaming Revenue ($ 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 $4,447 Growth ('22 v '21) -14.2% -62.0% -64.6% -
Slide 48: Macao Market: VIP Gaming Revenue
Macao Market: VIP Gaming Revenue Macao Market VIP Gaming Revenue ($ 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% 2022 2 $372 $140 $76 $129 $717 Growth ('22 v '21) -54.5% -82.0% -86.1% -61.5% -71.1% 2023 2 $5
Slide 49: Sands China VIP Table Metrics
Sands China VIP Table Metrics SCL Rolling Volume by Quarter SCL Rolling Win by Quarter ($ in US billions) ($ in US millions, except per table amounts) $20 $700 $600 $16 $16.4 Avg. Win per Table $560 per Day: $23,669 $500 $12 Avg. Win per Table $400 per Day: $13,422 ~30% of 2Q19 $300 $8 $200 $4.9 $18
Slide 50: Reconciliation of Non-GAAP Measures and Other Financial Information
Reconciliation of Non-GAAP Measures and Other Financial Information
Slide 51: Non-GAAP Reconciliation
Non-GAAP Reconciliation Net Income (Loss) to Consolidated Adjusted Property EBITDA1 ($ in US millions) 2Q19 1Q22 2Q22 3Q22 4Q22 2022 1Q23 2Q23 Net income (loss) $1,062 ($478) ($414) ($380) ($269) ($1,541) $145 $368 Add (deduct): Income tax expense (benefit) 223 2 110 60 (18) 154 50 49 Other (income)
Slide 52: Non-GAAP Measures
Non-GAAP Measures Adjusted and Hold-Normalized Net Income (Loss) ($ in US millions) Three Months Ended June 30, 2023 2022 2019 Net income (loss) attributable to LVS $312 ($290) $954 Pre-opening expense 8 3 10 Development expense 54 22 4 Loss on disposal or impairment of assets 4 - - Other (income) e
Slide 53: Non-GAAP Measures
Non-GAAP Measures Adjusted and Hold-Normalized Earnings (Loss) per Diluted Share ($ in per share amounts) Three Months Ended June 30, 2023 2022 2019 Per diluted share of common stock: Net income (loss) attributable to LVS $0.41 ($0.38) $1.24 Pre-opening expense 0.01 - 0.01 Development expense 0.07 0
Slide 54: Non-GAAP Reconciliation
Non-GAAP Reconciliation Trailing Twelve Month Supplemental Schedule1 ($ in US millions) 2Q19 3Q22 4Q22 1Q23 2Q23 TTM 2Q23 Cash Flows From Operations $9 ($150) ($104) $441 $941 $1,128 Adjust for: (Provision for) recovery of credit losses (7) (8) (1) 6 (5) (8) Foreign exchange gains (losses) 24 3 38 (
Slide 55: Historical Hold-Normalized Adj. Property EBITDA
Historical Hold-Normalized Adj. Property EBITDA1 ($ in US millions) 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 2 Macao Operations Reported $858 $765 $755 $811 $67 ($312) ($233) $47 $100 $132 $32 $74 ($11) ($110) ($152) ($51) $398 $541 Hold-Normalized Ad
Slide 56: Supplemental Information
Supplemental Information 2Q23 and 2Q22 ($ in US millions) Three Months Ended June 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 of A
Slide 57: Supplemental Information
Supplemental Information YTD 2Q23 and YTD 2Q22 ($ in US millions) Six Months Ended June 30, 2023 Amortization (Gain) Loss Pre-Opening Depreciation of Leasehold Disposal or and Adjusted Operating and Interests Impairment Development Royalty Stock-Based Corporate Property Income (Loss) Amortization in
Slide 58: ink Sands
ink Sands IWS