Las Vegas Sands Corp. · NYSE:LVS
Las Vegas Sands — Q1 2014 Earnings Presentation
53 slides from Las Vegas Sands's earnings presentation, Apr 24, 2014
Slide 1: Las Vegas Sands Corp. 1Q14 Earnings Call Presentation
Las Vegas Sands Corp. 1Q14 Earnings Call Presentation April 24, 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, delivering strong growth in revenue, cash flow, earnings and dividends Best positioned operator in Asia, with the pre‐eminent destination Integrated Resort properties in the world’s fastest‐
Slide 4: First Quarter 2014 Highlights
First Quarter 2014 Highlights Strong Quarterly Results and Increased Return of Capital to Shareholders Adjusted diluted EPS increased 36.6% to $0.97 (hold‐normalized adjusted diluted EPS increased 20.8% to $0.87)1 Consolidated adjusted property EBITDA increased 26.8% to $1.48 billion (hold‐norma
Slide 5: Strong First Quarter 2014 Financial Results
Strong First Quarter 2014 Financial Results Growth in Revenue, Adjusted Property EBITDA, EPS and Dividends per Share $ in millions, except per share information 1Q13 1Q14 $ Change % Change Net Revenue $ 3,302.7 $ 4,010.4 $ 707.7 21.4% Adjusted Property EBITDA $ 1,166.6 $ 1,479.7 $ 313.1 26.8% Adjust
Slide 6: Macao – Outstanding Growth in all Segments; Singapore – Mass Steady
Macao – Outstanding Growth in all Segments Singapore – Mass Steady, Growth in Hotel and Retail Segments Macao – Record adjusted property EBITDA driven by strong growth in all segments — Mass table win increased 54.2% to record $1.34 billion (growing 40% faster than the Macao market) — Slot and ETG
Slide 7: Increasing Return of Capital to Shareholders
Increasing Return of Capital to Shareholders Over $7.3 Billion of Capital Returned to Shareholders Over Last 9 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 8: 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% 3.0% Dividend 3.0% 2.9% Yield as of 2.6% 2.6% 4/23/14² 2.5% 2.5% 2.5% 2.2% +40 bps 2.2% 2.0% 2.0% 2.0% 1.5% 1.5% 1.0% 1.0% 0.5% 0.5% 0.
Slide 9: Strong Cash Flow, Balance Sheet and Liquidity
Strong Cash Flow, Balance Sheet and Liquidity Flexibility for Future Growth Opportunities and Increasing Return of Capital At March 31, 2014: Trailing Twelve Months EBITDA – $5.08 billion Trailing Twelve Months LVS Dividends Paid – $1.27 billion Trailing Twelve Months SCL Dividends Paid – $713
Slide 10: Record Q1 Macao Operating Performance
Record Q1 Macao Operating Performance Macao Property Operations Adjusted Property EBITDA and Adjusted Property EBITDA Margin Actual Hold‐Normalized ($MM) +49.1% +37.2% $1,000 60% $939.8 $900 $864.8 50% $800 $700 $630.2 $630.2 40% $600 34.9% 33.8% $500 30% 31.6% 31.6% $400 20% $300 $200 10% $100 $0 0
Slide 11: Macao Gaming Performance
Macao Gaming Performance Strong Growth and Increased Efficiency Across Macao Property Portfolio Mass tables — Mass table win up 54.2% to record $1.34 billion (compared to 38.6% growth for the Macao market) — Mass table efficiency up 29.5% to $13,210 win per table per day (despite an increase of 18
Slide 12: Evolution of the Macao Visitor
Evolution of the Macao Visitor Drivers As a result, Macao’s visitors are: More efficient and affordable Coming From transportation infrastructure Further Away Additional tourism attractions in Staying Longer Macao and Hengqin Island Spending More On: Greater number of hotel rooms • Dinin
Slide 13: Executing Our Mass Strategy in Macao
Executing Our Mass Strategy in Macao Family-friendly Entertainment World Class Concerts, Sporting Events Portfolio of over and Other Entertainment Offerings 9,200 Suites and Hotel Rooms Over 1.2 million sq. feet of World Class Shopping The Broadest and Deepest Market-Leading Customer Database Mass T
Slide 14: Strong Growth in Macao Mass Table Business
Strong Growth in Macao Mass Table Business Strong Growth and Productivity Gains in Macao’s Most Important Segment Mass Table Win Increased 54.2% Mass Table Win per Table per Day2 ($MM) $16,000 $1,600 60% 55% $14,000 $1,400 $1,336.7 $13,210 50% $12,143 $1,218.5 $12,000 $1,200 45% $10,961 $1,061.2 $10
Slide 15: Extending Our Leadership in Macao's Mass Market
Extending Our Leadership in Macao’s Mass Market Meaningful Opportunity to Continue to Grow Mass Table Business Illustrative Profitability of LVS’s Macao Market Mass Table Offering ($MM)1 Mass Table Win per Unit per Day $12,000 $13,000 $13,210 $14,000 $15,000 $16,000 $17,000 1,250 $2,464 $2,669 $2,71
Slide 16: LVS Base Mass and Premium Mass Table Growth Has Outperformed the Macao Market
LVS Base Mass and Premium Mass Table Growth Has Outperformed the Macao Market LVS Base Mass Table Win by Quarter LVS Premium Mass Table Win by Quarter LVS Departmental Profit Margin: 45% - 50% LVS Departmental Profit Margin: 35% - 45% ($MM) ($MM) $900 $900 $800 $757 $800 $700 $659 $700 $609 $600 $55
Slide 17: Profitable Macao Slot Business Continues to Grow
Profitable Macao Slot Business Continues to Grow Macao Slot and ETG Win Increased 23.8% Macao Slot and ETG Win per Unit per Day ($MM) $220 45% $400 $388 $200 $353 40% $184.3 $180 $173.8 $327 $165.9 35% $160 $300 $283 $285 $148.9 $149.4 32.6% 32.7% 32.2% 30% $140 29.6% 30.1% $120 25% $200 $100 20% $8
Slide 18: Strong Mass Growth Across our Macao Property Portfolio
Strong Mass Growth Across our Macao Property Portfolio Macao Property Portfolio Growing Faster than the Market Mass Table, Slot and ETG Win Per Day Cotai Strip Properties Peninsula Total ($MM) $18.0 $16.9 $15.0 $14.4 $12.0 $11.3 $9.2 $9.0 $7.8 $6.0 $5.5 $5.3 $3.0 $3.0 $2.1 $2.5 $1.3 $0.7 $0.0 Veneti
Slide 19: Strong Growth in Macao VIP Business
Strong Growth in Macao VIP Business Growth and Increasing Table Productivity Rolling Win Increased 18.2% Rolling Win per Table per Day ($MM) $1,600 30% $45,000 $1,445.3 $40,000 $39,167 $1,400 $1,303.4 $1,327.2 25% $1,223.2 $1,183.9 $35,000 $1,200 $32,837 20% $30,365 $1,000 $30,000 $26,269 18.4% 18.3
Slide 20: 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 21: Marina Bay Sands – Growth in Slot, Hotel & Mall Segments
Marina Bay Sands – Growth in Slot, Hotel & Mall Segments Adjusted property EBITDA increased 9.7% to $435.2 million (hold‐normalized adjusted property EBITDA decreased 13.3% to $377.9 million) Gaming — Mass table win decreased 2.1% to $271.1 million (between $260 million and $280 million in each
Slide 22: Asian Retail Mall Revenue Increasing Steadily
Asian Retail Mall Revenue Increasing Steadily Trailing Twelve Months Retail Mall Revenue ($MM) $600 $502 $500 $478 $450 $409 $422 $156 $400 $154 $155 $157 $159 $43 $300 $42 $38 $29 $126 $24 $113 $200 $97 $83 $87 $100 $149 $160 $169 $177 $143 $0 1Q13 2Q13 3Q13 4Q13 1Q14 Venetian Macao Four Seasons Ma
Slide 23: 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 world’s most promising Integrated Resort development opport
Slide 24: Sands
Sands EAS. V EGASSANDS CORP.
Slide 25: Appendix
Appendix Saneas LAS VEGAS SANDS CORP.
Slide 26: Historical Hold-Normalized Adj. Property EBITDA
Historical Hold‐Normalized Adj. Property EBITDA1 $ in millions 1Q13 2Q13 3Q13 4Q13 1Q14 Macao Property Operations Reported $ 630.2 $ 657.2 $ 784.3 $ 835.9 $ 939.8 Hold‐Normalized $ 630.2 $ 657.2 $ 784.3 $ 866.8 $ 864.8 Marina Bay Sands Reported $ 396.8 $ 355.3 $ 373.6 $ 258.8 $ 435.2 Hold‐Normalized
Slide 27: 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 $14,478 $13,770 $5,076 $14,000 $5,000 $4,763 $12,000 $11,131 $4,000 $3,791 $10,000 $9,411 $3,532 $8,000 $3,000 $6,853 $2,229 $6,000 $2,00
Slide 28: Strong Historical Net Income and EPS Growth Over the Last Four Years
Strong Historical Net Income and EPS Growth Over the Last Four Years LVS Historical Adjusted Net Income LVS Historical Adjusted Diluted Earnings per Share ($MM) $3,000 $3.50 $3.17 $2,609 $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 $500
Slide 29: Capital Expenditures Expectations
Capital Expenditures Expectations Future Investments Include The Parisian Macao, St. Regis at SCC and Maintenance ($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 $
Slide 30: Debt Maturity Profile
Debt Maturity Profile Debt Maturity by Year at March 31, 2014 ($MM) $4,000 $3,747 $3,500 $3,000 2,115 $2,500 $2,335 $2,000 1,113 $1,428 $1,500 $942 $1,013 $1,000 $650 1,168 803 1,632 $500 912 979 $170 620 418 $0 146 180 1 2014 2015 2016 2017 2018 2019 2020 2 SCL MBS USRG LVSC % of Total 2% 6% 9% 14%
Slide 31: LVS Outperforming Macao Market in EBITDA Generation and Growth
LVS Outperforming Macao Market in EBITDA Generation and Growth 2013 Macao Market EBITDA1 Macao Market EBITDA Growth for the 2013 Year ($MM) ($MM) $3,500 $10,000 $3,217 $9,198 $1,176 $3,000 $2,908 $9,000 $2,500 $912 $8,000 $7,110 $2,000 $1,617 $7,000 56% of $1,500 $1,380 $1,324 $6,000 Incremental $1,
Slide 32: Strong Growth In Macao Retail Mall Revenue
Strong Growth In Macao Retail Mall Revenue Macao Quarterly Retail Revenue Composition ($MM) $140 $120 $115.8 $100 $89.1 $57.4 $80 $71.5 $69.9 $35.5 $2.2 $14.5 $60 $48.1 $2.0 $40 $67.7 $57.0 $58.4 $53.5 $46.1 $20 $0 1Q13 2Q13 3Q13 4Q13 1Q14 Base Rent Turnover Rent Strong Growth in Both Base Rent and
Slide 33: Our Macao Property Portfolio Has Delivered Consistent Mass Market Growth
Our Macao Property Portfolio Has Delivered Consistent and Reliable Mass Market Growth Macao Market Mass Table and Slot Win by Operator ($MM) $1,600 $1,473 $1,400 $1,354 $1,197 $1,200 $1,052 $995 $1,000 $911 $800 $779 $600 $688 $632 $546 $561 $400 $478 $490 $506 $462 $421 $428 $200 $0 1Q10 2Q10 3Q10
Slide 34: Sands Cotai Central Continues to Grow
Sands Cotai Central Continues to Grow Mass Win per Table per Day Now Exceeds $14,450 per Day Mass Table, Slot and ETG Win per Day Mass Table Win per Table per Day ($MM) $18,000 $6.00 $5.31 $14,463 $15,000 $13,952 $5.00 $4.87 $12,813 $4.29 $4.00 $12,000 $9,616 $3.51 $3.01 $9,000 $7,933 $3.00 $2.00 $6
Slide 35: Marina Bay Sands Operations
Marina Bay Sands Operations First Quarter 2014 Details Adjusted Property EBITDA Adjusted property EBITDA of $435.2 million, an and Adjusted Property EBITDA Margin increase of 9.7% Actual Hold‐Normalized ($MM) Hold‐normalized adjusted property EBITDA of $500 60% $377.9 million, a decrease of 13.3
Slide 36: MBS – Credit Collections Remain Healthy
MBS – Credit Collections Remain Healthy Reserve Balance Has Now Increased to 37.5% of Gross A/R Casino Credit Collections Remain Healthy ($MM) $450 $418 $408 $403 $378 $368 $375 $345 $342 $326 $314 $311 $317 $300 $250 $271 $225 $203 $146 $150 $75 $40 $0 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3
Slide 37: Las Vegas Operations
Las Vegas Operations First Quarter 2014 Details On a hold‐normalized basis, adjusted property EBITDA Adjusted Property EBITDA was $97.3 million, an increase of 4.8% and Adjusted Property EBITDA Margin Actual Hold‐Normalized — Adjusted property EBITDA was $79.7 million, a ($MM) decrease of 29.8% $1
Slide 38: Sands Bethlehem Operations
Sands Bethlehem Operations First Quarter 2014 Details Adjusted Property EBITDA Adjusted property EBITDA decreased 11.1% to $26.5 and Adjusted Property EBITDA Margin million ($MM) $35 40% Table games drop increased 1.2% to reach $247.6 million, $29.9 $30 $26.5 driven by a 4.5% increase in baccara
Slide 39: Macao Market Background and Infrastructure Slides
Macao Market Background and Infrastructure Slides
Slide 40: VIP Gaming Represents 65% of Total Macao GGR
VIP Gaming Represents 65% of Total Macao GGR… …but Mass Tables and Slots Generate ~68% of Gaming Operating Profit TTM 1Q14 Macao Market Composition of Macao Market Gross Gaming Gross Gaming Revenue Revenue and Est. Gaming Operating Profit2 1Q14 YoY ($MM) Growth 100% $50,000 $47,267 +20% $45,000 80%
Slide 41: Strong and Consistent Growth in Macao's High Margin Mass Market
Strong and Consistent Growth in Macao’s High Margin Mass Market Macao Mass Table and Slot Gross Gaming Revenue ($MM) $18,000 60% $16,507 $16,000 $15,309 50% $14,000 39% $11,674 $12,000 36% 40% 33% 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 $2,4
Slide 42: Five Trends that Will Contribute To Growth in the Macao Market
Five Trends that Will Contribute To Growth in the Macao Market Over the Next Five Years 200 million Chinese are expected to travel outside of China by 1 2020, compared to 83 million in 2012 and 97 million in 2013 2 Infrastructure and transportation connectivity throughout China, especially in the Pe
Slide 43: China Is The World's Largest and Fastest Growing Outbound Tourism Market
1 China Is The World’s Largest and Fastest Growing Outbound Tourism Market Outbound Travel from China Outbound Travel Penetration¹ 350 50% Expenditure (US$bn) 44.5% $306 China 300 Chinese outbound 45% tourists (millions) Japan $268 40% Taiwan CLSA estimates 250 Korea $234 35% CAGR 2009‐2013 2012‐202
Slide 44: Growth in Visitation to Macao from Throughout China
Growth in Visitation to Macao from 1 Throughout China Year‐Over‐Year Visitation Growth Mainland Chinese Visitation to Macao Twelve Months Ended February 28, Population Penetration Province 2013 2014 % Change (MM) Rate (LTM) Guangdong 7,919,100 8,317,884 +5% 104 8.0% Fujian 793,386 783,432 ‐1% 37 2.1
Slide 45: 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 Guangzhou – Zhuhai Intercity Rail Rail line connecting Guangzhou to Provid
Slide 46: Infrastructure: Meaningful Improvements Throughout the Pearl River Delta Region
Infrastructure: Meaningful Improvements 2 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 Ra
Slide 47: Chinese Day-Trip and Overnight Visitation To Macao Both Continue to Grow
Chinese Day‐Trip and Overnight Visitation To 3 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% 0 +10% (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 48: Visitation to Macao Can Meaningfully Grow
3 Visitation to Macao Can Meaningfully Grow 40.7 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% +17% (MM) 45.0 40.7 40.0 34.9 Hong Kong 35.0 Received 22.1M More 30.0 28.1 Visitor
Slide 49: Opportunity for Increased Overnight Visitation and Length of Stay In Macao
Opportunity for Increased Overnight Visitation 3 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 23
Slide 50: Hengqin Island Expands Critical Mass of Tourism Offerings
Hengqin Island Expands 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 51: 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 10,000 Hotel % of Gaming % of Total 9,277 Gaming Operator Rooms Operators Market Sands Macao, 289 Sands China 9,000 Four Seasons Macao, 360 Las Ve
Slide 52: Market Leading Hotel Capacity at LVS (Projected 2017)
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 12,000 Macao, 400 Las Vegas Sands ` 12,67
Slide 53: Sands
Sands EAS. V EGASSANDS CORP.