Las Vegas Sands Corp. · NYSE:LVS
Las Vegas Sands — Q2 2014 Earnings Presentation
51 slides from Las Vegas Sands's earnings presentation, Jul 16, 2014
Slide 1: 2Q14 Earnings Call Presentation
The Parisian, Macao The Venetian Macao Sands Cotai Central, Macao Marina Bay Sands, Singapore (Targeted to open late 2015) 2Q14 Earnings Call Presentation July 16, 2014 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: Second Quarter 2014 Highlights
Second Quarter 2014 Highlights Steady Quarterly Growth and Increased Return of Capital to Shareholders Adjusted diluted EPS increased 30.8% to $0.85 per share¹ Consolidated adjusted property EBITDA increased 18.6% to $1.31 billion¹ Macao – Adjusted property EBITDA¹ increased 21.9% to $801.3 mi
Slide 5: Second Quarter 2014 Financial Results
Second Quarter 2014 Financial Results Growth in Revenue, Adjusted Property EBITDA, EPS and Dividends per Share $ in millions, except per share information 2Q13 2Q14 $ Change % Change Net Revenue $ 3,242.9 $ 3,624.4 $ 381.5 11.8% Adjusted Property EBITDA¹ $ 1,106.9 $ 1,312.6 $ 205.7 18.6% Adjusted Pr
Slide 6: Macao – Strong Growth in Mass Segment; Singapore – Growth in Mass, Hotel and Retail
Macao – Strong Growth in Mass Segment Singapore –Growth in Mass, Hotel and Retail Segments Macao – Steady EBITDA growth driven by growth in mass segment — Mass table win increased 34.3% to $1.25 billion — Slot and ETG win increased 18.8% to $177.6 million — Rolling win decreased 5.7% to $1.12 bill
Slide 7: Increasing Return of Capital to Shareholders
Increasing Return of Capital to Shareholders Nearly $8.3 Billion of Capital Returned to Shareholders Over Last 10 Quarters LVS Recurring Dividends per Share1 The LVS Board of Directors increased the recurring $2.50 dividend by 42.9% to $2.00 per share for the 2014 $2.00 calendar year ($0.50 per sh
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% Dividend 3.0% 3.0% 2.9% Yield as of 2.7% 2.7% 7/15/14² 2.5% 2.5% 2.5% 2.1% +60 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 June 30, 2014: Trailing Twelve Months EBITDA – $5.28 billion1 Trailing Twelve Months LVS Dividends Paid – $1.38 billion Trailing Twelve Months SCL Dividends Paid – $776
Slide 10: Macao Operating Performance
Macao Operating Performance Macao Property Operations Adjusted Property EBITDA and Adjusted Property EBITDA Margin¹ Actual Hold‐Normalized ($MM) +21.9% +14.5% $1,000 60% $900 $801.3 50% $800 $752.5 $700 $657.2 $657.2 40% $600 $500 34.0% 33.3% 30% 32.1% 32.1% $400 20% $300 $200 10% $100 $0 0% 2Q13 2Q
Slide 11: Macao Gaming Performance
Macao Gaming Performance Strong Growth and Increased Efficiency Across Macao Mass Property Portfolio Mass tables — Mass table win up 34.3% to $1.25 billion (compared to 32.6% growth for the Macao market) — Mass table efficiency up 17.4% to $11,963 win per table per day (despite an increase of 145
Slide 12: Strong and Consistent Growth in Macao's High Margin Mass Market
Strong and Consistent Growth in Macao’s High Margin Mass Market Macao Mass Table and Slot Gross Gaming Revenue ($MM) $20,000 60% $18,000 $17,528 50% $16,000 $15,309 $14,000 39% 36% 40% 33% $11,674 33% $12,000 30% 30% 31% $10,000 $8,949 30% $8,000 $6,587 16% 20% $6,000 $4,952 $4,358 $4,000 $3,355 $2,
Slide 13: The Mass Business is the Primary Driver of Earnings Growth in Macao
The Mass Business is the Primary Driver of Earnings Growth in Macao Macao Market VIP and Mass Gaming Est. Operating Profit ¹ ($MM) $12,000 ( ) = % of total operating profit for period $10,044 $10,000 $9,108 $3,033 (30%) $8,000 $7,307 $2,985 (33%) $6,026 $2,637 $6,000 (36%) $2,446 $7,011 (41%) $6,123
Slide 14: Macao: Diversified and Stable Sources of Departmental Profit
Macao: Diversified and Stable Sources of Departmental Profit For Las Vegas Sands and Sands China Macao Departmental Profit Contribution by Segment TTM 2Q131 TTM 2Q14 VIP 20% VIP 17% Other 2% Other 1% Mall 8% Mall 8% Mass Tables 50% Mass Tables 53% Hotel 12% Hotel 12% Slots 9% Slots 8% Mass Tables /
Slide 15: Executing Our Mass Strategy in Macao
Executing Our Mass Strategy in Macao Family-friendly Entertainment World Class Concerts, Sporting Events Portfolio of Nearly and Other Entertainment Offerings 9,300 Suites and Hotel Rooms Over 1.2 million sq. feet of World Class Shopping The Broadest and Deepest Market-Leading Customer Database Mass
Slide 16: Strong Growth in Macao Mass Table Business
Strong Growth in Macao Mass Table Business Strong Growth and Productivity Gains in Macao’s Most Important Segment Mass Table Win Increased 34.3% Mass Table Win per Table per Day2 ($MM) $16,000 $1,600 60% 55% $14,000 $1,400 $1,336.7 $13,210 $1,248.8 50% $12,143 $1,218.5 $11,963 $12,000 $1,200 45% $10
Slide 17: Extending Our Leadership in Macao's Mass Market
Extending Our Leadership in Macao’s Mass Market Meaningful Opportunity to Continue to Grow Mass Table Business Illustrative Profitability of LVS’s Macao Market Mass Table Offering ($MM)1 Mass Table Win per Unit per Day $11,000 $11,963 $12,000 $13,000 $14,000 $15,000 $16,000 1,250 $2,258 $2,456 $2,46
Slide 18: Macao: Strong Growth in Base Mass and Premium Mass Revenues
Macao: Strong Growth in Base Mass and Premium Mass Revenues LVS Base Mass Table Win by Quarter LVS Premium Mass Table Win by Quarter LVS Departmental Profit Margin: 45% - 50% LVS Departmental Profit Margin: 35% - 45% ($MM) ($MM) $900 $900 $800 $757 $800 $702 $700 $659 $700 $609 $580 $600 $557 $600 $
Slide 19: Profitable Macao Slot Business Continues to Grow
Profitable Macao Slot Business Continues to Grow Macao Slot and ETG Win Increased 18.8% Macao Slot and ETG Win per Unit per Day ($MM) $450 $220 45% $401 $200 $400 $388 $184.3 40% $177.6 $353 $180 $173.8 $165.9 $350 $327 35% $160 $149.4 $300 $285 32.6% 32.7% 32.2% 32.4% 30% $140 30.1% $250 $120 25% $
Slide 20: 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 $15.7 $15.0 $13.3 $11.9 $12.0 $9.7 $9.0 $7.0 $5.6 $6.0 $5.2 $3.5 $3.0 $2.1 $2.4 $1.0 $0.6 $0.0 Veneti
Slide 21: Macao VIP Business
Macao VIP Business Modestly Declining Revenue with Increased Table Productivity Rolling Win Decreased 5.7% Rolling Win per Table per Day ($MM) $45,000 $1,600 30% $1,445.3 $39,167 $40,000 $1,400 $1,303.4 $1,327.2 25% $1,183.9 $35,000 $32,837 $1,200 $32,568 $1,116.9 $30,365 20% $30,000 $1,000 18.4% 18
Slide 22: 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 23: Marina Bay Sands Operations
Marina Bay Sands Operations Second Quarter 2014 Details Adjusted Property EBITDA Adjusted property EBITDA of $417.8 million, an and Adjusted Property EBITDA Margin increase of 17.6% Actual Hold‐Normalized ($MM) — Hold‐normalized adjusted property EBITDA of $500 60% $368.5 million, a decrease of 4.
Slide 24: Asian Retail Mall Revenue Increasing Steadily
Asian Retail Mall Revenue Increasing Steadily Trailing Twelve Months Retail Mall Revenue ($MM) $600 $502 $512 $500 $478 $450 $422 $156 $160 $400 $154 $155 $157 $43 $45 $300 $42 $38 $29 $126 $125 $113 $200 $97 $87 $100 $177 $149 $160 $169 $182 $0 2Q13 3Q13 4Q13 1Q14 2Q14 Venetian Macao Four Seasons M
Slide 25: Disciplined Execution of Our Global Growth Strategy
Disciplined Execution of Our Global Growth Strategy As the global leader in 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 Resort developme
Slide 26: Sands
Sands EAS. V EGASSANDS CORP.
Slide 27: Appendix
Appendix Saneas LAS VEGAS SANDS CORP.
Slide 28: Historical Hold-Normalized Adj. Property EBITDA
Historical Hold‐Normalized Adj. Property EBITDA1 $ in millions 2Q13 3Q13 4Q13 1Q14 2Q14 Macao Property Operations Reported $ 657.2 $ 784.3 $ 835.9 $ 939.8 $ 801.3³ Hold‐Normalized $ 657.2 $ 784.3 $ 866.8 $ 864.8 $ 752.5 Marina Bay Sands Reported $ 355.3 $ 373.6 $ 258.8 $ 435.2 $ 417.8 Hold‐Normalize
Slide 29: 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 $14,859 $5,282 $13,770 $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 $2,00
Slide 30: Strong Historical Net Income and EPS Growth Over the Last Four Years
Strong Historical Net Income and EPS Growth Over the Last Four Years LVS Historical Adjusted Net Income LVS Historical Adjusted Diluted Earnings per Share ($MM) $3,000 $4.00 $2,758 $3.50 $3.37 $2,500 $2,399 $3.00 $2.90 $2,000 $1,768 $2.50 $1,644 $2.14 $2.02 $2.00 $1,500 $1.50 $1,000 $775 $0.98 $1.00
Slide 31: Capital Expenditures Expectations
Capital Expenditures Expectations Future Investments Include The Parisian Macao, St. Regis at SCC and Maintenance ($MM) $2,500 LVS Capex Expectations $2,210 $2,000 $1,900 $400 $145 $100 $1,500 $1,449 $107 $40 $680 $1,250 $1,050 $1,000 $898 $200 $830 $49 $225 $210 $600 $250 $350 $25 $500 $192 $60 $75
Slide 32: Debt Maturity Profile
Debt Maturity Profile Debt Maturity by Year at June 30, 2014 ($MM) $4,000 $3,748 $3,500 $3,000 2,115 $2,500 $2,420 $2,000 1,191 $1,439 $1,500 $950 $1,013 $1,000 $656 1,178 810 1,633 $500 $163 921 980 626 418 $0 147 180 1 2014 2015 2016 2017 2018 2019 2020 2 SCL MBS USRG LVSC % of Total 2% 6% 9% 14%
Slide 33: LVS Outperforming the Macao Market in EBITDA Generation and Growth
LVS Outperforming the Macao Market in EBITDA Generation and Growth 1Q14 TTM Macao Market EBITDA1 1Q14 TTM Macao Market EBITDA Growth ($MM) ($MM) $4,000 $1,333 $9,865 $10,000 $3,500 $3,361 $3,217 $9,000 $1,048 $3,000 $8,000 $7,484 $2,500 56% of $7,000 Incremental $2,000 $1,756 $1,473 44% of EBITDA $1
Slide 34: MBS – Credit Collections Remain Healthy
MBS – Credit Collections Remain Healthy Reserve Balance Has Now Increased to 40.9% of Gross A/R Casino Credit Collections Remain Healthy ($MM) $450 $418 $408 $403 $378 $368 $361 $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 2
Slide 35: Las Vegas Operations
Las Vegas Operations Second Quarter 2014 Details Adjusted property EBITDA was $66.1 million, an Adjusted Property EBITDA increase of 5.0% and Adjusted Property EBITDA Margin Actual Hold‐Normalized — On a hold‐normalized basis, adjusted property ($MM) EBITDA was $70.4 million, a decrease of 16.6% $
Slide 36: Sands Bethlehem Operations
Sands Bethlehem Operations Second Quarter 2014 Details Adjusted Property EBITDA Adjusted property EBITDA decreased 16.9% to $27.9 and Adjusted Property EBITDA Margin million ($MM) $40 40% Table games drop increased 0.7% to reach $260.6 million, $33.6 driven by a 5.4% increase in baccarat drop $3
Slide 37: Macao Market Background and Infrastructure Slides
Macao Market Background and Infrastructure Slides
Slide 38: VIP Gaming Represents 63% of Total Macao GGR
VIP Gaming Represents 63% of Total Macao GGR… …but Mass Tables and Slots Generate ~70% of Gaming Operating Profit TTM 2Q14 Macao Market Composition of Macao Market Gross Gaming Gross Gaming Revenue Revenue and Est. Gaming Operating Profit2 2Q14 YoY ($MM) Growth $50,000 $47,856 +5% 100% $45,000 30% 8
Slide 39: Evolution of the Macao Visitor
Evolution of the Macao Visitor Drivers As a result, Macao’s visitors are: More efficient and affordable Coming From transportation infrastructure Further Away Additional tourism attractions in Staying Longer Macao and Hengqin Island Spending More On: Greater number of hotel rooms • Dinin
Slide 40: Five Trends that Will Contribute To Growth in the Macao Market
Five Trends that Will Contribute To Growth in the Macao Market Over the Next Five Years 200 million Chinese are expected to travel outside of China by 1 2020, compared to 83 million in 2012 and 97 million in 2013 2 Infrastructure and transportation connectivity throughout China, especially in the Pe
Slide 41: China Is The World's Largest and Fastest Growing Outbound Tourism Market
1 China Is The World’s Largest and Fastest Growing Outbound Tourism Market Outbound Travel from China Outbound Travel Penetration¹ 350 50% Expenditure (US$bn) 44.5% $306 China 300 Chinese outbound 45% tourists (millions) Japan $268 40% Korea CLSA estimates 250 Taiwan $234 35% CAGR 2009‐2013 2012‐202
Slide 42: 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 May 31, Population Penetration Province 2013 2014 % Change (MM) Rate (LTM) Guangdong 7,896,953 8,502,545 +8% 104 8.2% Fujian 774,928 807,691 +4% 37 2.2% Sub
Slide 43: 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 Prov
Slide 44: 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: 13M • 3.5 hour train ride GDP Per Capita: US$14,000 • 75‐80 trains in each direction per day Guangzhou – Shenzhen – Hong Kong Rail Guangzhou – Zhuhai Intercity Ra
Slide 45: 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 46: 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 47: 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 48: 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 49: 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 9,000 Four Seasons Macao, 360 Las Vegas Sands `
Slide 50: 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 12,000 Macao, 400 Las Vegas Sands ` 12,67
Slide 51: Sands
Sands EAS. V EGASSANDS CORP.