Las Vegas Sands Corp. · NYSE:LVS
Las Vegas Sands — Q2 2013 Earnings Presentation
45 slides from Las Vegas Sands's earnings presentation, Jul 24, 2013
Slide 1: Las Vegas Sands Corp. 2Q13 Earnings Call Presentation
Las Vegas Sands Corp. 2Q13 Earnings Call Presentation July 24, 2013
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, 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‐growing consumer
Slide 4: Second Quarter 2013 Highlights
Second Quarter 2013 Highlights Strong Quarterly Results and Increased Return of Capital to Shareholders Hold‐adjusted, adjusted diluted EPS increased 41.2% to $0.72 (adjusted diluted EPS increased 47.7% to $0.65) Consolidated hold‐adjusted, adjusted property EBITDA increased 29.0% to $1.17 billi
Slide 5: Macao and Singapore Growth Summary
Macao – Outstanding Growth in all Gaming Segments Singapore – VIP Strong; Mass Table and Hotel Growing Macao – Record EBITDA driven by strong growth in all segments — Mass table win increased 61.1% to record $929.6 million — Slot and ETG win increased 22.5% to $149.4 million — Rolling volume incre
Slide 6: Increasing Return of Capital to Shareholders
Increasing Return of Capital to Shareholders LVS Recurring Dividends per Share1 The LVS Board of Directors increased recurring $2.00 dividend by 40% to $1.40 per share for the 2013 calendar year ($0.35 per share payable quarterly) $1.40 $1.00 The company remains committed to returning $1.00 capi
Slide 7: Strong Cash Flow, Balance Sheet and Liquidity
Strong Cash Flow, Balance Sheet and Liquidity Ample Flexibility for Future Growth Opportunities and Return of Capital Trailing Twelve Months EBITDA – $4.15 billion Trailing Twelve Months LVS Dividends Paid – $3.25 billion Trailing Twelve Months SCL Dividends Paid – $411.4 million1 Trailing T
Slide 8: Strong Second Quarter 2013 Financial Results
Strong Second Quarter 2013 Financial Results Solid Growth in Revenue, Adjusted Property EBITDA, Margin and EPS $ in millions, except per share information 2Q12 2Q13 $ Change % Change Net Revenue $ 2,581.9 $ 3,242.9 $ 661.0 25.6% Adjusted Property EBITDA $ 844.7 $ 1,106.9 $ 262.2 31.0% Adj. Property
Slide 9: Record Macao Operating Performance
Record Macao Operating Performance Macao Property Operations Adjusted Property EBITDA and Adjusted Property EBITDA Margin Actual Hold‐Adjusted ($MM) +53.2% +53.2% $700 50% $657.2 $657.2 45% $600 40% $500 35% $429.0 $429.0 32.1% 32.1% 30% $400 29.5% 29.5% 25% $300 20% $200 15% 10% $100 5% $0 0% 2Q12
Slide 10: Macao Gaming Performance
Macao Gaming Performance Strong Growth and Increased Efficiency Across Macao Property Portfolio Mass tables — Mass table win up 61.1% to record $929.6 million — Mass table efficiency up 30.2% to $10,190 win per table per day — Increased mass table count by 21.6% to reach an average of 1,003 mass t
Slide 11: Strong Growth in Macao Mass Table Business
Strong Growth in Macao Mass Table Business Growth and Productivity Gains in Macao’s Most Important Segment Mass Table Revenue1 Increased 59.5% Mass Table Win per Table per Day2 ($MM) $12,000 $1,000 40% $920.8 $10,204 $10,190 $863.6 $10,000 $9,716 35% $800 $767.4 $8,699 30% $7,914 $669.5 $8,000 29.9%
Slide 12: Our Macao Assets Have Delivered Consistent and Reliable Mass Market Growth
Our Macao Assets Have Delivered Consistent and Reliable Mass Market Growth Macao Market Mass Table and Slot Revenues ($MM) $1,200 $1,052 $995 $1,000 $911 $800 $779 $688 $600 $632 $546 $561 $490 $506 $400 $462 $478 $421 $428 $374 $391 $360 $200 $0 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q1
Slide 13: Robust Mass Growth Across our Property Portfolio
Robust Mass Growth Across our Property Portfolio Both Venetian Macao and Sands Cotai Central Growing Faster than the Market Mass Table, Slot and ETG Win Per Day Cotai Strip Properties Peninsula Total ($MM) $11.9 $12.0 $9.7 $9.0 $7.8 $6.0 $6.0 $5.6 $4.1 $3.5 $3.0 $1.8 $2.1 $1.4 $0.6 $0.6 $0.0 Venetia
Slide 14: VIP Business Exhibiting Strong Growth
VIP Business Exhibiting Strong Growth Improving Market Share and Table Productivity Rolling Volume Increased 25.7% Consolidated Rolling Volume per Table per Day ($BN) ($MM) $45 20% $1.00 $41.2 $41.9 $0.92 $39.3 $0.88 $0.88 $40 $36.0 17.4% 17.4% $0.78 17.2% $0.80 $35 $33.4 15% $0.72 15.5% 14.8% $30 $
Slide 15: Sands Cotai Central is Ramping
Sands Cotai Central is Ramping Strong Growth in All Gaming Segments and Property Visitation Mass Table, Slot and ETG Win per Day Mass Table Win per Table per Day ($MM) $12,000 $4.00 $3.51 $9,616 $10,000 $3.01 $7,933 $3.00 $2.58 $8,000 $6,613 $5,887 $6,000 $4,762 $2.00 $1.56 $1.36 $4,000 $1.00 $2,000
Slide 16: Expanding Our Critical Mass on the Cotai Strip
Expanding Our Critical Mass on the Cotai Strip The Parisian Macao The Parisian Macao will be a $2.7 billion themed, aspirational destination Integrated Resort Construction progressing with piling and podium and hotel tower substructure work underway Targeted completion date: Late 2015 Hotel
Slide 17: Singapore – VIP Strength, Steady Mass, Continued Growth in Hotel and MICE Segments
Singapore – VIP Strength, Steady Mass, Continued Growth in Hotel and MICE Segments Hold‐adjusted, adjusted property EBITDA increased 5.9% to reach $396.2 million (adjusted property EBITDA of $355.3 million) Gaming — VIP volumes increased 24.9% to $14.37 billion in rolling volume (low hold of 2.5
Slide 18: Disciplined Execution of Our Global Growth Strategy
Disciplined Execution of Our Global Growth Strategy LVS is the clear global leader in Integrated Resort development and operation and is uniquely positioned to bring its unmatched track record and powerful business model to the most promising Integrated Resort development opportunities globally
Slide 19: Sands
Sands EAS. V EGASSANDS CORP.
Slide 20: Appendix
Appendix Saneas LAS VEGAS SANDS CORP.
Slide 21: Historical Hold-Adjusted, Adj. Property EBITDA
Historical Hold‐Adjusted, Adj. Property EBITDA1 $ in millions 2Q12 3Q12 4Q12 1Q13 2Q13 Macao Property Operations Reported $ 429.0 $ 487.9 $ 622.2 $ 630.2 $ 657.2 Hold‐Adjusted $ 429.0 $ 487.9 $ 569.8 $ 630.2 $ 657.2 Marina Bay Sands Reported $ 330.4 $ 260.8 $ 302.5 $ 396.8 $ 355.3 Hold‐Adjusted $ 37
Slide 22: Capital Expenditures Expectations
Capital Expenditures Expectations Future Investments Include SCC, The Parisian Macao and Maintenance ($MM) $2,000 LVS Capex Expectations $1,508 $1,500 $1,449 $1,450 $1,425 $107 $1,335 $496 $160 $1,000 $300 $850 $900 $975 $830 $375 $450 $820 $500 $500 $150 $472 $500 $450 $450 $450 $500 $193 $0 2011A
Slide 23: Long Dated Maturity Profile
Long Dated Maturity Profile Debt Maturity by Year at June 30, 2013 ($MM) $5,000 $4,500 $4,386 $4,000 $1,384 $3,500 $3,000 $2,500 $909 $2,000 $1,731 $1,322 $187 $1,500 $1,223 $618 $1,000 $2,088 $802 $969 $500 $1,164 $920 $800 $16 $145 $11 $0 $200 2013 2014 2015 2016 2017 2018 2019 SCL MBS USRG LVSC %
Slide 24: Our Macao Properties Are Delivering Market-Leading Visitation
Our Macao Properties Are Delivering Market‐Leading Visitation Total Visitation to LVS’s Macao Properties (MM) 16.0 15.0 14.6 14.2 14.0 13.7 13.0 12.5 12.0 11.0 10.4 10.0 9.0 8.0 2Q12 3Q12 4Q12 1Q13 2Q13 Visitation to Our Macao Properties Has Expanded Over 40% in the Last Year to Reach 14.6 Million V
Slide 25: Profitable Macao Slot Business Continues to Grow
Profitable Macao Slot Business Continues to Grow Macao Slot Revenue1 Increased 18.2% Macao Slot and ETG Win per Unit per Day ($MM) $400 $180 45% $160 40% $313 $143.2 $300 $299 $140 35% $300 $283 $285 $131.0 $131.1 $120 32.6% 30% $110.9 $109.4 30.0% 28.7% $100 27.0% 27.8% 25% $200 $80 20% $60 15% $10
Slide 26: Sands Cotai Central Phase IIB is Now Completed
Sands Cotai Central Phase IIB is Now Completed 2,100 Additional Sheraton Rooms Opened January 28, 2013 Sands Cotai Central Phase III Phase I Phase IIA Phase IIB Air Conditioned Pedestrian Walkway Currently Future Operational Phase Pedestrian Walkway Opened on December 20, 2012 and 2,100 Additional R
Slide 27: Marina Bay Sands Operations
Marina Bay Sands Operations Second Quarter 2013 Details Adjusted Property EBITDA Hold‐adjusted, adjusted property EBITDA of $396.2 and Adjusted Property EBITDA Margin million, an increase of 5.9% Actual Hold‐Adjusted ($MM) $500 60% Adjusted property EBITDA of $355.3 million, an increase $374.0 $
Slide 28: Singapore – Credit Collections Remain Healthy
Singapore – Credit Collections Remain Healthy Reserve Balance Has Now Increased to 30.3% of Gross A/R Casino Credit Collections Remain Healthy ($MM) $450 $418.1 $407.8 $377.5 $367.8 $375 $345.2 $314.3 $311.4 $317.0 $300 $249.9 $271.1 $225 $203.4 $145.5 $150 $75 $40.4 $0 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11
Slide 29: Asian Retail Mall Revenue Increasing Steadily
Asian Retail Mall Revenue Increasing Steadily Trailing Twelve Months Retail Mall Revenue ($MM) $450 $423 $409 $395 $400 $373 $360 $350 $157 $159 $156 $300 $152 $149 $250 $29 $16 $24 $7 $200 $87 $83 $83 $77 $79 $150 $100 $143 $130 $135 $140 $149 $50 $0 2Q12 3Q12 4Q12 1Q13 2Q13 Venetian Macao Four Sea
Slide 30: Asian Property Portfolio Dominates EBITDA Generation
Asian Property Portfolio Dominates EBITDA Generation Composition of 2Q13 Adjusted Property EBITDA Actual Results Hold‐Adjusted Results Bethlehem Bethlehem 3% 2% Las Las Vegas Vegas 6% 8% Singapore Singapore Macao 32% Macao 34% 56% 59% $1,106.9 Million $1,170.9 Million 30
Slide 31: Las Vegas Operations
Las Vegas Operations Second Quarter 2013 Details On a hold‐adjusted basis, adjusted property EBITDA Adjusted Property EBITDA was $89.1 million, an increase of 8.0% and Adjusted Property EBITDA Margin Actual Hold‐Adjusted — Adjusted property EBITDA was $63.0 million, a ($MM) decrease of 2.2% $100 $
Slide 32: Sands Bethlehem Operations
Sands Bethlehem Operations Second Quarter 2013 Details Hold‐adjusted, adjusted property EBITDA increased 9.5% Adjusted Property EBITDA to reach $30.5 million and Adjusted Property EBITDA Margin Actual Hold‐Adjusted — Adjusted property EBITDA increased 24.9% to ($MM) record $33.6 million $40 $33.6
Slide 33: European Development Update
European Development Update In December 2012, the government of the region of Madrid passed legislation that outlined the regulatory framework to enable Integrated Resort development in the Madrid region The next steps in the development process include: Local, Regional and National Governments
Slide 34: Macao Market Background and Infrastructure Slides
Macao Market Background and Infrastructure Slides
Slide 35: VIP Gaming is 68% of Total Macao GGR…
VIP Gaming is 68% of Total Macao GGR… …but Mass Tables and Slots Generate ~65% of Gaming Operating Profit LTM June 2013 Macao Market Composition of Macao Market Gross Gaming Gross Gaming Revenue Revenue and Est. Gaming Operating Profit2 ($MM) 2Q13 YoY Growth $45,000 100% $40,915 +16% $40,000 $35,000
Slide 36: Strong and Consistent Growth in Macao's High Margin Mass Market
Strong and Consistent Growth in Macao’s High Margin Mass Market Macao Mass Table and Slot Gross Gaming Revenue ($MM) $14,000 $13,159 60% $12,000 $11,674 50% $10,000 39% $8,949 40% 33% $8,000 30% 30% $6,587 36% 28% 30% $6,000 $4,952 $4,358 20% 16% $4,000 $3,355 14% $2,409 $2,084 10% $2,000 $0 0% 2005
Slide 37: China's High-Speed Rail
China’s High‐Speed Rail Connecting More of Mainland China to Macao Guangzhou – Zhuhai Intercity Rail Wuhan– Guangzhou High‐Speed Rail Rail line connecting Guangzhou to Wuhan is the capital of Hubei Province Zhuhai, where the Gongbei border and the most populous city in Central gate to Macao is l
Slide 38: Growth in Visitation from Deeper Within China is Happening…
Growth in Visitation from Deeper Within China is Happening… Year‐Over‐Year Visitation Growth Mainland China Visitation to Macao Twelve Months Ended June 30, Population Penetration Province 2012 2013 % Change (MM) Rate (LTM) Guangdong 8,295,741 7,937,614 ‐4% 104 7.6% Fujian 931,500 784,851 ‐16% 37 2.
Slide 39: Meaningful Infrastructure Improvements Throughout the Pearl River Delta Region
Meaningful Infrastructure Improvements 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 • 2 hour train ride from Guangzhou
Slide 40: While Day-Trip Visitation Growth to Macao has Slowed….Overnight Visitation has Continued to Expand
While Day‐Trip Visitation Growth to Macao has Slowed….Overnight Visitation has Continued to Expand Mainland China Day‐Trip Visitors to Macao Mainland China Overnight Visitors to Macao Growth ‐9% +19% +28% 0% +1%1 Growth ‐1% +22% +16% +10% 01 +10% (MM) (MM) 10.0 9.0 8.5 9.2 8.1 8.8 8.8 9.0 8.0 7.3 8.
Slide 41: Visitation to Macao Can Meaningfully Grow
Visitation to Macao Can Meaningfully Grow 34.9 Million Residents of Mainland China Visited Hong Kong in 2012 Mainland China Visitation to Macao and Hong Kong Macao ‐5% +20% +22% +5% Hong Kong +6% +26% +24% +24% (MM) 40.0 34.9 35.0 Hong Kong Received 30.0 28.1 18M More Visitors from 25.0 22.7 China i
Slide 42: Hengqin Island to Support Macao's Long Term Growth and Diversification
Hengqin Island to Support Macao’s Long Term Growth and Diversification 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 Kong and Macao M
Slide 43: Market Leading Hotel Capacity at LVS
Market Leading Hotel Capacity at LVS Las Vegas Sands Operates 39% of Macao’s Current 4/5‐Star Hotel Inventory 1 Macao Market Gaming Operator Hotel Rooms 10,000 Hotel % of Gaming % of Total 9,277 Gaming Operator Rooms Operators Market 9,000 Sands Macao, 289 Four Seasons Macao, 360 Las Vegas Sands ` 9
Slide 44: Market Leading Hotel Capacity at LVS
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 12,377 Gaming Operator Rooms Operators Market 12,000 Las Vegas Sands ` 12,454 44% 35% The Parisian
Slide 45: Sands
Sands EAS. V EGASSANDS CORP.