Las Vegas Sands Corp. · NYSE:LVS
Las Vegas Sands — Q4 2013 Earnings Presentation
49 slides from Las Vegas Sands's earnings presentation, Jan 29, 2014
Slide 1: Las Vegas Sands Corp. 4Q13 Earnings Call Presentation
Las Vegas Sands Corp. 4Q13 Earnings Call Presentation January 29, 2014 Venetian Macao Sands Cotai Central, Macao Marina Bay Sands, Singapore 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 co
Slide 3: The Investment Case for Las Vegas Sands
The Investment Case for Las Vegas Sands The global leader in Integrated Resort development and operation, with growing free cash flow and earnings and a strong balance sheet Best positioned operator in Asia, with the pre-eminent destination Integrated Resort properties in the world’s fastest-gro
Slide 4: Fourth Quarter 2013 Highlights
Fourth Quarter 2013 Highlights Strong Quarterly Results and Increased Return of Capital to Shareholders Adjusted diluted EPS increased 33.3% to $0.72 (hold-normalized adjusted diluted EPS increased 35.9% to $0.87)1 Consolidated adjusted property EBITDA increased 21.0% to $1.21 billion (hold-norm
Slide 5: Macao – Outstanding Growth in all Segments; Singapore – Growth in Mass Gaming and Hotel
Macao – Outstanding Growth in all Segments Singapore – Growth in Mass Gaming and Hotel Segments Macao – Record adjusted property EBITDA driven by strong growth in all segments — Mass table win increased 58.3% to record $1.22 billion (growing 46.9% faster than the Macao market) — Slot and ETG win i
Slide 6: Increasing Return of Capital to Shareholders
Increasing Return of Capital to Shareholders Over $5.5 Billion of Capital Returned to Shareholders Over Last 8 Quarters LVS Recurring Dividends per Share1 The LVS Board of Directors increased recurring $2.50 dividend by 42.9% to $2.00 per share for the 2014 $2.00 calendar year ($0.50 per share pay
Slide 7: LVS Generates Greater Dividend Yield than the S&P500 Index
LVS Generates Greater Dividend Yield than the S&P500 Index 2014 Forward Dividend Yield of LVS and S&P5001 Sensitivity of LVS Dividend Yield 4.0% 4.0% 3.5% 3.5% 3.3% Dividend 3.0% 3.0% 2.9% Yield as of 2.7% 2.7% 1/28/14² 2.5% 2.5% 2.2% +50 bps 2.5% 2.2% 2.0% 2.0% 2.0% 1.5% 1.5% 1.0% 1.0% 0.5% 0.5% 0.
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 December 31, 2013: Trailing Twelve Months EBITDA – $4.76 billion Trailing Twelve Months LVS Dividends Paid – $1.15 billion Trailing Twelve Months SCL Dividends Paid – $411.4 milli
Slide 9: Strong Fourth Quarter 2013 Financial Results
Strong Fourth Quarter 2013 Financial Results Growth in Revenue, Adjusted Property EBITDA, Margin and EPS $ in millions, except per share information 4Q12 4Q13 $ Change % Change Net Revenue $ 3,077.0 $ 3,655.7 $ 578.7 18.8% Adjusted Property EBITDA $ 1,003.0 $ 1,214.0 $ 211.0 21.0% Adj. Property EBIT
Slide 10: Record Q4 Macao Operating Performance
Record Q4 Macao Operating Performance Macao Property Operations Adjusted Property EBITDA and Adjusted Property EBITDA Margin Actual Hold-Normalized ($MM) +34.3% +55.8% $900 $887.6 60% $835.9 $800 50% $700 $622.2 $600 $569.8 40% $500 33.4% 34.3% 32.0% 30% $400 30.7% $300 20% $200 10% $100 $0 0% 4Q12
Slide 11: Macao Gaming Performance
Macao Gaming Performance Strong Growth and Increased Efficiency Across Macao Property Portfolio Mass tables — Mass table win up 58.3% to record $1.22 billion — Mass table efficiency up 25.0% to $12,143 win per table per day (despite an increase of 230 mass tables compared to the same quarter last
Slide 12: Strong Growth in Macao Mass Table Business
Strong Growth in Macao Mass Table Business Strong Growth and Productivity Gains in Macao’s Most Important Segment Mass Table Revenue Increased 58.3% Mass Table Win per Table per Day2 ($MM) $14,000 $1,400 50% $12,143 $1,218.5 45% $12,000 $1,200 $10,961 $1,061.2 40% $10,204 $10,190 $10,000 $9,716 $1,0
Slide 13: Extending Our Leadership in Macao’s Mass Market
Extending Our Leadership in Macao’s Mass Market Meaningful Opportunity to Continue to Grow Mass Table Business Illustrative Profitability of LVS’s Macao Market Mass Table Offering ($MM)1 Mass Table Win per Unit per Day $10,000 $11,000 $12,143 $13,000 $14,000 $15,000 $16,000 900 $1,478 $1,626 $1,795
Slide 14: Our Macao Property Portfolio Has Delivered Consistent and Reliable Mass Market Growth
Our Macao Property Portfolio Has Delivered Consistent and Reliable Mass Market Growth Macao Market Mass Table and Slot Revenues by Operator ($MM) $1,400 $1,354 $1,197 $1,200 $1,052 $995 $1,000 $911 $800 $779 $600 $688 $632 $546 $561 $490 $506 $400 $462 $478 $421 $428 $391 $200 $0 4Q09 1Q10 2Q10 3Q10
Slide 15: Sands Cotai Central Continues to Grow
Sands Cotai Central Continues to Grow Mass Win per Table per Day Now Approaching $14,000 per Day Mass Table, Slot and ETG Win per Day Mass Table Win per Table per Day ($MM) $4.87 $15,000 $13,952 $5.00 $12,813 $4.29 $12,000 $4.00 $3.51 $9,616 $3.01 $9,000 $7,933 $3.00 $2.58 $6,613 $6,000 $2.00 $3,000
Slide 16: Strong Growth in Macao VIP Business
Strong Growth in Macao VIP Business Growth and Increasing Table Productivity Rolling Volume Increased 26.0% Consolidated Rolling Volume per Table per Day ($BN) ($MM) $60 30% $1.40 $1.23 $49.5 $1.20 $50 25% $45.4 $1.06 $41.2 $41.9 $39.3 $1.00 $40 20% $0.92 $0.88 $0.88 18.2% $0.80 17.2% 17.4% 17.4% 17
Slide 17: Expanding Our Critical Mass on the Cotai Strip
Expanding Our Critical Mass on the Cotai Strip The Parisian Macao Rendering of The Parisian Macao The Parisian Macao will be a $2.7 billion themed, aspirational destination Integrated Resort Construction is progressing Targeted completion date: Late 2015 Hotel rooms and suites: 3,000+ Gami
Slide 18: Singapore – Growth in Mass, Hotel & MICE Segments
Singapore – Growth in Mass, Hotel & MICE Segments Hold-normalized adjusted property EBITDA decreased 8.4% to $372.1 million (adjusted property EBITDA decreased 14.4% to $258.8 million) Gaming — Mass table revenue grew 3.6% to $278.3 million (between $260 million to $280 million in each of the pa
Slide 19: Disciplined Execution of Our Global Growth Strategy
Disciplined Execution of Our Global Growth Strategy LVS is the global leader in Integrated Resort development and operation and is uniquely positioned to bring its unmatched track record and powerful convention-based business model to the most promising Integrated Resort development opportunities
Slide 20: Sanes
Sanes LAS VEGAS SANDS CORP.
Slide 21: Appendix
Appendix Sanas LAS VEGAS SANDS CORP.
Slide 22: Historical Hold-Normalized Adj. Property EBITDA
Historical Hold-Normalized Adj. Property EBITDA1 $ in millions 4Q12 1Q13 2Q13 3Q13 4Q13 Macao Property Operations Reported $ 622.2 $ 630.2 $ 657.2 $ 784.3 $ 835.9 Hold-Normalized $ 569.8 $ 630.2 $ 657.2 $ 784.3 $ 887.6 Marina Bay Sands Reported $ 302.5 $ 396.8 $ 355.3 $ 373.6 $ 258.8 Hold-Normalized
Slide 23: Strong Historical Revenue and EBITDA Growth Over the Last Four Years
Strong Historical Revenue and EBITDA Growth Over the Last Four Years LVS Historical Net Revenue LVS Historical Adjusted Property EBITDA ($MM) ($MM) $16,000 $6,000 $13,769.9 $14,000 $5,000 $4,763.4 $12,000 $11,131.1 $4,000 $3,791.1 $10,000 $9,410.7 $3,532.2 $8,000 $3,000 $6,853.2 $2,228.6 $6,000 $4,5
Slide 24: Strong Historical Net Income and EPS Growth Over the Last Four Years
Strong Historical Net Income and EPS Growth Over the Last Four Years LVS Historical Adjusted Net Income LVS Historical Adjusted Diluted Earnings per Share ($MM) ($MM) $3,000 $3.50 $3.00 $2.90 $2,500 $2,399 $2.50 $2,000 $2.14 $1,768 $2.02 $1,644 $2.00 $1,500 $1.50 $1,000 $0.98 $775 $1.00 $500 $0.50 $
Slide 25: Capital Expenditures Expectations
Capital Expenditures Expectations Future Investments Include SCC, The Parisian Macao and Maintenance ($MM) $2,500 LVS Capex Expectations $2,160 $2,000 $2,000 $200 $450 $1,500 $1,449 $107 $825 $40 $1,150 $1,000 $898 $900 $830 $49 $225 $50 $210 $250 $350 $550 $500 $192 $60 $50 $472 $447 $500 $500 $500
Slide 26: Debt Maturity Profile
Debt Maturity Profile Debt Maturity by Year at December 31, 2013 ($MM) $3,500 $3,022 $3,000 $2,500 907 $2,115 $2,000 $1,569 $1,500 $1,412 $1,242 617 2,088 614 2,115 $1,000 $378 1,161 $500 925 798 145 $34 203 $0 2014 2015 2016 2017 2018 2019 2020 1 SCL MBS USRG LVSC % of Total 4% 16% 31% 13% 14% <1%
Slide 27: Strong Mass Growth Across our Macao Property Portfolio
Strong Mass Growth Across our Macao Property Portfolio Macao Property Portfolio Growing Faster than the Market Mass Table, Slot and ETG Win Per Day Cotai Strip Properties Peninsula Total ($MM) $18.0 $15.1 $15.0 $12.8 $12.0 $10.1 $9.0 $8.1 $7.0 $6.0 $4.7 $4.9 $3.0 $2.6 $2.0 $2.3 $0.8 $1.0 $0.0 Veneti
Slide 28: Profitable Macao Slot Business Continues to Grow
Profitable Macao Slot Business Continues to Grow Macao Slot and ETG Revenue Increased 7.2% Macao Slot and ETG Win per Unit per Day ($MM) $400 $200 45% $353 $180 $173.8 40% $327 $162.1 $165.9 $299 $160 $148.9 $149.4 $300 $283 $285 35% $140 32.7% 32.6% 32.7% 30% $120 29.6% 30.1% 25% $200 $100 20% $80
Slide 29: Marina Bay Sands Operations
Marina Bay Sands Operations Fourth Quarter 2013 Details Adjusted Property EBITDA Adjusted property EBITDA of $258.8 million, a and Adjusted Property EBITDA Margin decrease of 14.4% Actual Hold-Normalized ($MM) Hold-normalized adjusted property EBITDA of $500 60% $372.1 million, a decrease of 8.4
Slide 30: Singapore – Credit Collections Remain Healthy
Singapore – Credit Collections Remain Healthy Reserve Balance Has Now Increased to 37.2% of Gross A/R Casino Credit Collections Remain Healthy ($MM) $450 $418.1 $407.8 $403.0 $377.5 $367.8 $375 $345.2 $342.4 $314.3 $311.4 $317.0 $300 $249.9 $271.1 $225 $203.4 $145.5 $150 $75 $40.4 $0 2Q10 3Q10 4Q10
Slide 31: Asian Retail Mall Revenue Increasing Steadily
Asian Retail Mall Revenue Increasing Steadily Trailing Twelve Months Retail Mall Revenue ($MM) $500 $478 $450 $450 $422 $409 $395 $400 $154 $155 $350 $157 $159 $156 $300 $42 $38 $250 $29 $16 $24 $113 $200 $97 $83 $87 $83 $150 $100 $140 $143 $149 $160 $169 $50 $0 4Q12 1Q13 2Q13 3Q13 4Q13 Venetian Mac
Slide 32: Las Vegas Operations
Las Vegas Operations Fourth Quarter 2013 Details Adjusted property EBITDA was $88.2 million, an Adjusted Property EBITDA increase of 67.0% and Adjusted Property EBITDA Margin Actual Hold-Normalized — On a hold-normalized basis, adjusted property ($MM) EBITDA was $83.3 million, a decrease of 5.2% $
Slide 33: Sands Bethlehem Operations
Sands Bethlehem Operations Fourth Quarter 2013 Details Adjusted property EBITDA increased 10.3% to $30.3 Adjusted Property EBITDA million and Adjusted Property EBITDA Margin Actual Hold-Normalized — Hold-normalized adjusted property EBITDA ($MM) decreased 4.4% to $24.5 million $35 $30.3 40% $30 $2
Slide 34: Macao Market Background and Infrastructure Slides
Macao Market Background and Infrastructure Slides
Slide 35: VIP Gaming Represents 66% of Total Macao GGR…
VIP Gaming Represents 66% of Total Macao GGR… …but Mass Tables and Slots Generate ~67% of Gaming Operating Profit Full Year 2013 Macao Market Composition of Macao Market Gross Gaming Gross Gaming Revenue Revenue and Est. Gaming Operating Profit2 ($MM) 4Q13 YoY Growth 100% $50,000 +24% $45,156 $45,00
Slide 36: Strong and Consistent Growth in Macao’s High Margin Mass Market
Strong and Consistent Growth in Macao’s High Margin Mass Market Macao Mass Table and Slot Gross Gaming Revenue ($MM) $18,000 60% $16,000 $15,309 50% $14,000 39% $11,674 $12,000 36% 40% 33% $10,000 30% 30% 31% $8,949 30% $8,000 $6,587 $6,000 16% $4,952 20% $4,358 $4,000 $3,355 $2,084 $2,409 14% 10% $
Slide 37: Five Trends that Will Contribute To Growth in the Macao Market Over the Next Five Years
Five Trends that Will Contribute To Growth in the Macao Market Over the Next Five Years China’s middle class is predicted to triple between now and 1 2023, driving increased disposable income and consumption 2 Over 160 million Chinese are anticipated to travel outside of China by 2018, compared to 8
Slide 38: China’s Growing Middle Class
1 China’s Growing Middle Class Chinese Annual Urban Household Income Distribution Millions of Projected Households CAGR Urban Population 350 328 2000 – 2020E in 2020 21 +20% 60 million 300 250 226 5 167 +27% 400 million 14 200 147 150 1 185 100 93 116 +1% 307 million 50 53 23 24 -4% 55 million 0 200
Slide 39: Growth in Chinese Outbound Tourism
2 Growth in Chinese Outbound Tourism Outbound Travel from China (1995-2011) International Tourism Expenditure (1995-2012) 120 107 Expenditure (US$b) $102 Chinese outbound 100 99 tourists (millions) CAAC estimates 90 83 80 5 Year CAGR (2008-2012) 73 Expenditure 29.7% Tourists 15.9% $70 57 60 48 46 $5
Slide 40: Additional Infrastructure Enabling Growth In Visitation to Macao Throughout China
Additional Infrastructure Enabling Growth 2 In Visitation to Macao from Throughout China Year-Over-Year Visitation Growth Mainland China Visitation to Macao Twelve Months Ended December 31, Population Penetration Province 2012 2013 % Change (MM) Rate (LTM) Guangdong 7,929,668 8,200,118 +3% 104 7.9%
Slide 41: Visitation to Macao Can Meaningfully Grow
2 Visitation to Macao Can Meaningfully Grow 40.3 Million Residents of Mainland China Visited Hong Kong in 2013 Mainland China Visitation to Macao and Hong Kong Macao -5% +20% +22% +5% +10% Hong Kong +6% +26% +24% +24% +16% (MM) 45.0 40.3 40.0 34.9 Hong Kong 35.0 Received 21.7M More 30.0 28.1 Visitor
Slide 42: Chinese Day-Trip and Overnight Visitation To Macao Both Continue to Grow
Chinese Day-Trip and Overnight Visitation To 2 Macao Both Continue to Grow Mainland China Day-Trip Visitors to Macao Mainland China Overnight Visitors to Macao Growth -9% +19% +28% 0% +10% Growth -1% +22% +16% +10% +10% 0 (MM) (MM) 12.0 9.0 8.9 8.1 8.0 10.0 9.7 7.3 8.8 8.8 7.0 6.3 8.0 6.0 6.9 5.2 5.
Slide 43: Opportunity for Increased Overnight Visitation and Length of Stay In Macao
Opportunity for Increased Overnight Visitation 2 and Length of Stay In Macao Composition of 2013 Visitation from Mainland China Avg. Length of Stay for Mainland Chinese Total 2013 Mainland Daytrip Visitors Overnight Visitors Overnight Visitors in 2013 Chinese Visitor Nights² (MM) (Days) (MM) 25.0 4.
Slide 44: China’s High-Speed Rail
3 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 Guangzhou – Zhuhai Intercity Rail Rail line connecting Guangzhou to Provides seamless conn
Slide 45: Meaningful Infrastructure Improvements Throughout the Pearl River Delta Region
Meaningful Infrastructure Improvements 3 Throughout the Pearl River Delta Region Guangzhou Wuhan – Guangzhou High-Speed Rail Population: 16M • 3.5 hour train ride GDP Per Capita: US$12,000 • 75-80 trains in each direction per day Guangzhou – Shenzhen – Hong Kong Rail Guangzhou – Zhuhai Intercity Rai
Slide 46: Hengqin Island Adds to Critical Mass of Tourism Offerings for Visitors to the Region
Hengqin Island Adds to Critical Mass of 4 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 welcomed by President Xi Jinping as a strategic zone for cooperation among Guangdong Province, Hong Ko
Slide 47: Market Leading Hotel Capacity at LVS
5 Market Leading Hotel Capacity at LVS Las Vegas Sands Operates 38% of Macao’s Current 4/5-Star Hotel Inventory Macao Market Gaming Operator Hotel Rooms1 Hotel % of Gaming % of Total 10,000 9,277 Gaming Operator Rooms Operators Market Sands Macao, 289 Sands China 9,000 Four Seasons Macao, 360 Las Ve
Slide 48: Market Leading Hotel Capacity at LVS
5 Market Leading Hotel Capacity at LVS 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 St. Regis Macao, 400 Las Vegas Sands ` 12,677 44% 3
Slide 49: Sanes
Sanes LAS VEGAS SANDS CORP.