Jul 22, 2015 - Chongqing. Henan. Hubei. Shanxi. Hebei. Shandong. Beijing. Liaoning. Jilin. Heilongjiang. Jiangsu. Anhui.
The Venetian Macao
Sands Cotai Central, Macao
Marina Bay Sands, Singapore
The Parisian Macao
2Q15 Earnings Call Presentation July 22, 2015
Sands Macao
Four Seasons Macao
Sands Bethlehem
The Venetian Las Vegas
The Palazzo, Las Vegas
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. Forwardlooking statements involve a number of risks, uncertainties or other factors beyond the company’s control, which may cause material differences in actual results, performance or other expectations. These factors include, but are not limited to, general economic conditions, competition, new development, construction and ventures, substantial leverage and debt service, government regulation, tax law changes, legalization of gaming, interest rates, future terrorist acts, influenza, insurance, gaming promoters, risks relating to our gaming licenses, certificate and subconcession, infrastructure in Macao, our ability to meet certain development deadlines, our subsidiaries’ ability to make distribution payments to us, and other factors detailed in the reports filed by Las Vegas Sands Corp. with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date thereof. Las Vegas Sands Corp. assumes no obligation to update such information.
2
The Investment Case for Las Vegas Sands The global leader in Integrated Resort development and operation, delivering strong and diversified cash flow and earnings as well as growing recurring dividends
Best positioned operator to deliver long-term growth in Asia, with the pre-eminent destination Integrated Resort properties in the world’s largest and fastest growing consumer markets Uniquely positioned to bring unmatched track record, powerful convention-based business model and the industry’s strongest balance sheet to the world’s most promising Integrated Resort development opportunities Committed to maximizing shareholder returns by delivering long-term growth while continuing the return of capital to shareholders through recurring dividend and stock repurchase programs
The industry’s most experienced leadership team: visionary, disciplined and dedicated to driving long-term shareholder value Maximizing Return to Shareholders by: 1. Delivering long-term growth in current markets 2. Using leadership position in convention-based Integrated Resort development and operation to pursue global growth opportunities 3. Continuing to return excess capital to shareholders
3
Second Quarter 2015 Financial Highlights Continued Return of Capital to Shareholders Despite Current Headwinds in Macao
Net revenue was $2.92 billion
Consolidated adjusted property EBITDA was $1.02 billion
Consolidated EBITDA margin was 34.8% (35.2% on a hold-normalized basis)
Macao – Adjusted property EBITDA was $559.8 million Strong cost discipline drove a 150 basis point sequential increase in hold-normalized adjusted property EBITDA margin to 31.7%
Marina Bay Sands – Despite headwind of stronger US dollar, Adjusted property EBITDA was $363.3 million (Hold-normalized Adjusted property EBITDA increased 6.1% on a constant currency basis)
Adjusted diluted EPS was $0.60 per share
LVS returned a total of $583.8 million to shareholders during the quarter through: Recurring dividend of $0.65 per share Stock repurchase program ($65.0 million repurchased at a weighted average price of $50.46 during the quarter)
NOTE: All comparisons in this presentation compare the second quarter 2015 against the second quarter 2014 unless otherwise specified.
4
Second Quarter 2015 Financial Results (Y/Y) Quarter Ended June 30, 2015 vs Quarter Ended June 30, 2014 2Q14
2Q15
Net Revenue
$ 3,624.4
$ 2,921.4
$
(702.9)
-19.4%
Adjusted Property EBITDA
$ 1,312.6
$ 1,016.2
$
(296.5)
-22.6%
$ in millions, except per share information
Adjusted Property EBITDA Margin
36.2%
$ Change
34.8%
% Change
-140 bps
Adjusted Diluted EPS
$
0.85
$
0.60
$
(0.25)
-29.4%
Dividends per Common Share
$
0.50
$
0.65
$
0.15
30.0%
Hold-Normalized Adjusted Property EBITDA
$ 1,218.8
$ 1,013.9
$
(204.9)
-16.8%
Hold-Normalized Adj. Property EBITDA Margin Hold-Normalized Adjusted Diluted EPS
35.2% $
0.77
35.2% $
0.61
0 bps $
(0.16)
-20.8%
5
Second Quarter 2015 Financial Results (Q/Q) Quarter Ended June 30, 2015 vs Quarter Ended March 31, 2015 1Q15
2Q15
Net Revenue
$ 3,011.6
$ 2,921.4
$
(90.2)
-3.0%
Adjusted Property EBITDA
$ 1,050.5
$ 1,016.2
$
(34.4)
-3.3%
$ in millions, except per share information
Adjusted Property EBITDA Margin
34.9%
$ Change
34.8%
% Change
-10 bps
Adjusted Diluted EPS
$
0.66
$
0.60
$
(0.06)
-9.1%
Dividends per Common Share
$
0.65
$
0.65
$
-
-
Hold-Normalized Adjusted Property EBITDA
$ 1,021.6
$ 1,013.9
$
(7.6)
Hold-Normalized Adj. Property EBITDA Margin Hold-Normalized Adjusted Diluted EPS
34.3% $
0.64
35.2% $
0.61
-0.7% +90 bps
$
(0.03)
-4.7%
6
LVS Increasing Return of Capital to Shareholders Over $11.0 Billion of Capital Returned to Shareholders Over Last 14 Quarters LVS Recurring Dividends per Share1 $3.00
$2.60
$2.50
$1.00
In the fourth quarter of 2014, the LVS Board of Directors increased the LVS recurring dividend by 30.0% to $2.60 per share for the 2015 calendar year ($0.65 per share payable quarterly)
In the fourth quarter of 2014, the LVS Board of Directors also authorized an additional $2.0 billion stock repurchase program following the completion of the previous $2.0 billion program
$2.00
$2.00
$1.50
$1.40 $1.00
Since the inception of the company’s share repurchase program in June 2013, the company has returned $2.30 billion to shareholders through the repurchase of 32.3 million shares
During the second quarter of 2015, $65.0 million of common stock was repurchased at a weighted average price of $50.46
$0.50 $0.00 2012
2013
2014
2015
Total Capital Returned to Shareholders $ in millions
LVS Dividends Paid 1 LVS Special Dividend Paid LVS Shares Repurchased Subtotal LVS SCL Dividends Paid 2 SCL Special Dividend Paid Subtotal SCL Total
Year Ended 12/31/2012
Year Ended 12/31/2013
Year Ended 12/31/2014
Six Months Ended 6/30/2015
$
$
$
$
$
$ $
823 2,262 3,085 357 357 3,442
$
$ $
1,153 570 1,723 411 411 2,134
$
$ $
1,610 1,665 3,275 538 239 777 4,052
$
$ $
1,038 65 1,103 308 308 1,411
The company remains committed to returning capital to shareholders via:
Total
$ 4,624 2,262 2,300 $ 9,186 1,614 239 $ 1,853 $ 11,039
—
Recurring quarterly dividend programs at Las Vegas Sands with a commitment to maintaining those recurring dividends and to increasing the dividends in the future as cash flows grow
—
$2.0 billion Las Vegas Sands stock repurchase program ($1.70 billion remaining) to be used to return excess capital to shareholders
The Company Remains Committed to Returning Capital to Shareholders While Maintaining a Strong Balance Sheet and the Financial Flexibility to Pursue New Development Opportunities 1. Excludes dividends paid by Sands China Ltd. and excludes the $2.75 per share special dividend paid in December 2012. 2. Reflects only the public (non-LVS) portion of dividends paid by Sands China Ltd. (total SCL dividends paid since 2011 were $6.21 billion³). 3. The $6.21 billion figure represents SCL dividends paid as of 6/30/2015. The SCL Board of Directors approved a final dividend at the SCL Annual General Meeting (June 17, 2015), which was paid on July 15, 2015 (an additional $1.04 billion) for a total life-to-date SCL dividend payment of $7.26 billion.
7
SCL Also Increasing Return of Capital to Shareholders Over US$7.2 Billion of Capital Returned to Shareholders By 3Q15 ² SCL Recurring Dividends per Share (HK$)1 $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $0.00
$1.33
2012
2013
The SCL Board of Directors increased the SCL 2015 dividend to HK$1.99 per share, including an interim dividend of HK$0.99 per share paid in February and a final dividend of HK$1.00 per share paid on July 15, 2015²
The company remains committed to returning capital to shareholders via:
$1.99
$1.73 $1.16
2014
2015²
SCL Total Capital Returned to Shareholders — US$ in millions SCL Dividends Paid
1
SCL Special Dividend Paid Total
Year Ended 12/31/2012 Interim Final
Year Ended 12/31/2013 Interim Final
Year Ended 12/31/2014 Interim Final
Year-to-Date 7/15/2015 Interim Final²
$ 600
$ 602
$ 696
$ 685
$ 906
$ 894
$ 1,030
$1,041²
-
-
-
-
-
-
-
$ 600
$ 602
$ 696
$ 685
$ 894
$ 1,030
$ 1,041
801 $ 1,707
Total $ 6,454
Recurring bi-annual dividend program at Sands China Ltd. with a commitment to maintain the recurring dividend and to increase the dividend in the future as cash flows grow
801 $7,255 ³
SCL Remains Committed to Returning Capital to Shareholders While Maintaining a Strong Balance Sheet and the Financial Flexibility to Pursue Development Opportunities 1. Excludes the special dividend paid in 2014. 2. The final dividend was approved at the SCL Annual General Meeting on June 17, 2015 and the final dividend of $1.04 billion was paid to shareholders on July 15, 2015. 3. Includes $5.09 billion in dividends paid to Las Vegas Sands Corp. through 7/15/2015 ($4.36 billion in dividends paid to Las Vegas Sands Corp. through 6/30/2015).
8
LVS Generates Greater Forward Dividend Yield than the S&P500 Index 2015 Forward Dividend Yield of LVS and S&P5001
Sensitivity of LVS Dividend Yield 5.5%
5.5% 5.0%
5.0%
4.7%
4.5%
4.5%
4.0%
4.0%
3.5%
+250 bps
Dividend Yield as of 7/21/15²
5.2% 4.7% 4.3% 3.7%
3.5%
3.3% 2.9%
3.0%
3.0% 2.5%
2.2%
2.5%
2.0%
2.0%
1.5%
1.5%
1.0%
1.0%
0.5%
0.5%
0.0%
0.0%
LVS
S&P500
$50.00
$54.83
$60.00
$70.00
$80.00
$90.00
LVS’s 2015 Dividend Yield of 4.7% Reflects a 250 bps Premium Above the S&P500 Forward Dividend Yield Estimates 1. Reflects the 2015 dividend yield for LVS and the Bloomberg 2015 forward dividend yield estimate for the S&P500 on July 21, 2015. 2. Reflects the 2015 LVS dividend ($2.60) over the closing price for LVS on July 21, 2015.
9
Strong Cash Flow, Balance Sheet and Liquidity Flexibility for Future Growth Opportunities and Increasing Return of Capital At June 30, 2015:
Trailing Twelve Months Adjusted Property EBITDA – $4.70 billion
Trailing Twelve Months LVS Dividends Paid – $1.84 billion
Trailing Twelve Months SCL Dividends Paid – $308.1 million1
Trailing Twelve Months LVS Stock Repurchases – $599.7 million
Cash Balance – $2.83 billion
Net Debt – $6.99 billion
Net Debt to TTM EBITDA – 1.5x
Figures as of June 30, 2015 (US GAAP in $MM)
Sands China Ltd.
Cash, Cash Equivalents and Restricted Cash
$ 1,962.5
$
474.6
$
331.5
$
57.2
$ 2,825.8
Debt
$ 3,393.8
$ 3,359.3
$
3,065.3
$
-
$ 9,818.4
Net Debt
$ 1,431.3
$ 2,884.7
$
2,733.8
$
(57.2)
$ 6,992.6
Trailing Twelve Months Adjusted Property EBITDA
$ 2,607.8
$ 1,648.7
$
426.5
$
13.7
$ 4,696.7
Singapore
U.S. Operations 2
Gross Debt to Trailing Twelve Months EBITDA
1.3 x
2.0 x
7.2 x
Net Debt to Trailing Twelve Months EBITDA
0.5 x
1.7 x
6.4 x
Corporate and Other
3
Total
NM
2.1 x
NM
1.5 x
Strong Balance Sheet and Cash Flow Maximize Financial Flexibility 1. Reflects only the public (non-LVS) portion of dividends paid by Sands China Ltd. Total TTM dividends paid by Sands China Ltd. were $1.04 billion. Does not include the SCL $1.04 billion final dividend paid on July 15, 2015 (of which $729.9 million was retained by Las Vegas Sands Corp.) 2. U.S. Operations includes the cash and debt at the U.S. Restricted Group (plus $61.8 million in airplane and other financings) and adjusted property EBITDA from Las Vegas operations and Sands Bethlehem. 3. The net leverage ratio for covenant compliance purposes, which includes the dividends and royalty fees paid by Sands China Ltd. and Marina Bay Sands to the U.S. Operations, was 1.0x.
10
Macao Operating Performance (Y/Y) Quarter Ended June 30, 2015 vs Quarter Ended June 30, 2014 Macao Property Operations Adjusted Property EBITDA and Adjusted Property EBITDA Margin
Actual
Hold-Normalized
-30.1%
($MM)
-30.0%
$1,000
60%
$900 $800
$801.3
50% $752.5
$700
40%
$600 $500
$559.8 34.0%
32.2%
$526.5 33.3%
31.7%
30%
$400 20%
$300 $200
10%
$100 $0
0% 2Q14
2Q15
2Q14
2Q15
11
Macao Operating Performance (Q/Q) Quarter Ended June 30, 2015 vs Quarter Ended March 31, 2015 Macao Property Operations Adjusted Property EBITDA and Adjusted Property EBITDA Margin
Actual
Hold-Normalized
+6.1%
($MM)
-0.2%
$700
$600
60%
$559.8
50% $527.7
$527.7
$526.5
$500 40% $400
$300
30.2%
32.2%
30.2%
31.7%
30%
20% $200 10%
$100
$0
0% 1Q15
2Q15
1Q15
2Q15
12
Macao: Diversified and Stable Sources of Departmental Profit For Las Vegas Sands and Sands China Macao Departmental Profit Contribution by Segment¹ TTM 2Q14
TTM 2Q15
Other 2%
VIP 17%
VIP 12%
Other 2% Mall 12%
Mall 8% Mass Tables 53%
Hotel 12%
Mass Tables 51% Hotel 15%
Slots 8%
Slots 8%
Mass Tables / Slots and Non-Gaming Generated 88% of Macao’s Departmental Profit in the TTM 2Q15 Period vs. 83% in the TTM 2Q14 Period 1. Represents departmental profit by segment (before unallocated expenses) for the respective TTM periods ending June 30, 2014 and 2015.
13
Macao: SCL Base Mass Showing Greater Stability Than Premium Mass in Current Softer Market SCL Premium Mass Table Win by Quarter
SCL Base Mass Table Win by Quarter
SCL Departmental Profit Margin: 25% - 40%
SCL Departmental Profit Margin: 40% - 50% Avg. Win per Table per Day: $7,079 ($MM)
($MM)
$900
$900 $800
$800
$757
$702 $700 $600
Avg. Win per Table per Day: $14,483
$709
$659
$700 $645 $601
$609 $557
$574
$600
$559
$580
$547 $509
$500
$500
$400
$400
$300
$300
$200
$200
$100
$100
$461
$452
$412
$402
1Q15
2Q15
$372
$0
$0 2Q13
Avg. 761 Tables
3Q13
4Q13
1Q14
2Q14
857
3Q14
4Q14
1Q15
2Q15
2Q13
892
Avg. 241 Tables
3Q13
4Q13
1Q14
2Q14
3Q14
290
4Q14
305
Our Mass Table Offering is the Broadest and the Deepest in the Macao Market Note: LVS base mass and premium mass table revenues as presented above are based on the geographic position of the tables on the gaming floor.
14
Executing Our Mass Strategy in Macao Portfolio of Nearly 9,300 Suites and Hotel Rooms
Over 1.5 million sq. feet of World Class Shopping
Family-friendly Entertainment
The Broadest and Deepest Mass Tourism Offerings in Macao
World Class Concerts, Sporting Events and Other Entertainment Offerings
Market-Leading Customer Database
Expansion of Mass Market Offerings Underway with The Parisian
Highly Themed Tourism Attractions
Over 2 million sq. feet of Conference, Exhibition and Carpeted Meeting Space
Our Diversified Convention-based Integrated Resort Offerings Appeal to the Broadest Set of Customers and Comprise a Unique Competitive Advantage in the Macao Market
15
Macao Mass Visitation Drivers
Future Growth Drivers
More efficient and affordable transportation infrastructure
Greater number of hotel rooms and non-gaming offerings in Macao
Additional tourism attractions in Macao and Hengqin Island
Rapidly expanding middle-class with growing disposable income
As a result, Macao’s Mass visitors will:
Come From Farther Away
Stay Longer
Spend More On:
• • • • •
Dining Lodging Retail Entertainment Gaming
16
Strong Growth in Mainland Chinese Visitation to Macao Strongest Growth Realized in Provinces Served by High Speed Rail Year-Over-Year Visitation Growth
Mainland Chinese Visitation to Macao Province Guangdong
Heilongjiang
Jilin
Liaoning
Inner Mongolia
Xinjiang
Shanxi
Ningxia
Shandong
Tianjin
Gansu
Shaanxi
Henan
Tibet Sichuan Hubei Chongqing
Jiangsu Anhui
9,085,790
+7%
104
$9,452
8.7%
Fujian
807,691
905,123
+12%
37
$9,342
2.5%
Hunan
697,160
780,205
+12%
66
$5,936
1.2%
Hubei
601,824
678,165
+13%
58
$6,881
1.2%
Zhejiang
670,044
677,576
+1%
54
$11,054
1.2%
Jiangsu
540,950
563,493
+4%
79
$12,047
0.7%
Guangxi
428,131
530,770
+24%
46
$4,939
1.2%
Shanghai
544,835
528,283
-3%
23
$14,547
2.3%
Henan
420,480
482,784
+15%
94
$5,518
0.5%
Shanghai
Jiangxi
400,273
459,605
+15%
45
$5,130
1.0%
Sichuan
381,694
402,482
+5%
80
$5,240
0.5%
Beijing
376,312
365,480
-3%
20
$15,051
1.9%
Hebei
284,247
343,576
+21%
72
$6,251
0.5%
Liaoning
325,372
339,430
+4%
44
$9,961
0.8%
Heilongjiang
271,009
309,190
+14%
38
$6,057
0.8%
Shandong
280,095
303,077
+8%
96
$9,094
0.3%
Chongqing
238,046
257,073
+8%
30
$6,910
0.9%
4,036,827
3,972,896
-2%
407
N/A
1.0%
Subtotal (Excluding Guangdong)
11,304,990
11,899,208
+5%
1,288
$6,617
0.9%
Mainland China
19,807,535
20,984,998
+6%
1,392
$6,767
1.5%
Zhejiang
Hunan Jiangxi Guizhou
Fujian
Yunnan
Guangxi
8,502,545
Beijing
Hebei
Qinghai
Twelve Months Ended May 31, Population GDP Per Penetration 2014 2015 % Change (MM) Capita (US$) Rate
Guangdong
Hong Kong
Macao
-10% - 0% 0% - 10%
10% - 20% Greater than 20%
Data Not Available
NOTE: Penetration rates assume that each visitor to Macao from Mainland China is a unique visitor. Source: Macao DSEC; National Bureau of Statistics of China; LVS Estimates
All Other
17
Expanding Our Critical Mass on the Cotai Strip The Parisian Macao
The Parisian Macao is a $2.7 billion themed, aspirational destination Integrated Resort
Construction continues to progress
Hotel rooms and suites: 3,000+
Gaming capacity: ~450 table games and 2,500 slots and ETGs
Additional amenities including a retail mall, 50% scale replica Eiffel Tower, MICE space, diverse food & beverage options and entertainment
The Parisian Macao will be interconnected to our other Cotai Strip properties through mall access and other pedestrian connectivity including a walkover bridge from Sands Cotai Central
Map of Macao’s Cotai Strip
LVS Future Development
LVS Operating Assets
Third Party Operating Asset
Rendering of The Parisian Macao
Construction Progress – July 20, 2015
Third Party Future Development
18
Expanding Our Critical Mass on the Cotai Strip The St. Regis Tower at Sands Cotai Central Rendering of The St. Regis Tower
St. Regis branded 5-star hotel and serviced apartments to complement the existing portfolio of brands on the Cotai Strip
Construction continues to progress
Hotel rooms and suites: ~400
Serviced Apartments: ~300
Construction Progress – July 20, 2015
Map of Macao’s Cotai Strip
LVS Future Development
LVS Operating Assets
Third Party Operating Asset
Third Party Future Development
19
Macao Market Annual EBITDA Market Share by Operator Historical EBITDA Market Share1,2 SCL Macao Property Operations
All Others Macao Leader in Market Share of EBITDA
40%
80%
72%
10%
30%
60%
20%
40%
28%
34%
32%
10%
20%
0% 2012
2013
Galaxy
2
9%
66%
10%
16%
14%
14%
12%
11%
14%
15%
14%
18%
18%
18%
2012
2013
TTM 1Q15
13%
0%
TTM 1Q15 SCL
68%
MPEL
SJM
Wynn
MGM
SCL Expanded Market Share of Macao EBITDA by 600 bps Since 2012 Source: Company Reports 1. Reflects reported adjusted property EBITDA for operating properties for the twelve months ended March 31, 2015. 2. Galaxy only includes EBITDA from Starworld and Galaxy Macau.
20
Marina Bay Sands Operations¹ Record Mass Win in Local Currency Terms
Adjusted property EBITDA of $363.3 million, a decrease of 13.0% (Adjusted Property EBITDA decreased 6.4% on a constant-currency basis)
Hold-normalized Adjusted property EBITDA decreased 1.4% with margin expanding 130 basis points
Hold-normalized Adjusted property EBITDA increased 6.1% on a constant currency basis
Total mass (non-rolling tables and slots) win per day increased 1.1% to reach $4.73 million (+8.8% on a constant-currency basis) —
Non-rolling win increased 4.9% to $287.8 million
—
Slot win decreased 6.1% to $142.2 million
Adjusted Property EBITDA and Adjusted Property EBITDA Margin ($MM)
$600 $500
Room revenue decreased 11.2% as RevPAR decreased 10.9% to $361 and ADR decreased 7.8% to $377
Retail mall revenue increased 0.2% to $40.4 million
70%
$417.8 $363.3
$363.3
49.6%
50.9%
$200
60% 50%
51.9%
50.9%
40%
$100
30%
$0
20% 2Q14
2Q15
2Q14
2Q15
Non-Rolling Table and Slot Win Per Day ($MM)
$4.0
$4.68
$4.73
$1.66
$1.57
$3.02
$3.16
2Q14
2Q15
$0.0
Non-Rolling Tables
$368.5
$300
$2.0
80%
$400
$6.0
Hold-Normalized
Actual
Slot Machines
Rolling win decreased 26.6% to $264.5 million (rolling volume
Despite Currency Headwinds decreased 9.0% to $9.51 billion) from Strong US Dollar, Stable Hold-Normalized Operating Performance
1. Due to a strengthened US Dollar in 2Q15 compared to 2Q14, MBS faced a currency headwind equivalent to approximately 6.6 percentage points of adjusted property EBITDA growth in 2Q15 compared to 2Q14.
21
Singapore: Diversified and Stable Sources of Departmental Profit For Las Vegas Sands Singapore Departmental Profit Contribution by Segment TTM 2Q14¹
TTM 2Q15¹
VIP 14%
Other 4%
Other 4% Mass Tables 37%
Mall 7%
VIP 15%
Hotel 18%
Mass Tables 37%
Mall 8% Hotel 16%
Slots 20%
Slots 20%
Mass Tables / Slots and Non-Gaming Generated 85% of Singapore’s Departmental Profit in TTM 2Q15 1. On a hold-normalized basis, VIP contribution would have been 13% in TTM 2Q14 and 11% in TTM 2Q15.
22
Asia Retail Mall Portfolio Continues to Generate Strong Growth in Revenue and Operating Profit Trailing Twelve Months Retail Mall Revenue ($MM)
$600
$512
$536
$551
$500 $160
$167
$169
$569
$171
$400 $45
$52
$57
$129
$132
$61
$586
$171
MBS: $1,393
$65
SCC: $1,004
$145
Four Seasons: $4,924
$300 $125
$139
TTM 2Q15 Sales per Sq. Foot²
$200
$100
$182
$188
$192
$198
$205
2Q14
3Q14
4Q14
1Q15
2Q15
Venetian: $1,578
$0
Venetian Macao
Operating Profit Operating Profit Margin
Four Seasons Macao
Sands Cotai Central¹
Marina Bay Sands
$442M
$463M
$482M
$503M
$521M
86%
86%
88%
88%
89%
1. At June 30, 2015, 331,466 square feet of gross leasable area were occupied out of a total of up to 600,000 square feet of retail mall space that will be featured at completion of all phases of Sands Cotai Central. 2. Tenant sales per square foot is the sum of reported comparable sales for the trailing 12-months divided by the comparable square footage for the same period. Only tenants that have occupied mall space for a minimum of 12 months are included in the tenant sales per square foot calculation.
23
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 development opportunities
Development opportunity parameters: —
Targeting minimum of 20% return on total invested capital
—
25% - 35% of total project costs to be funded with equity (project financing to fund 65% - 75% of total project costs)
Principal Areas of Future Development Interest for Las Vegas Sands
Macao
Japan
South Korea
The Parisian Macao St. Regis Tower at Sands Cotai Central 24
Appendix
Historical Hold-Normalized Adj. Property EBITDA1 $ in millions
2Q14
3Q14
4Q14
1Q15
2Q15
Macao Property Operations Reported
$
801.3
$
809.0
$
711.2
$
527.7
$
559.8
Hold-Normalized
$
752.5
$
772.1
$
686.2
$
527.7
$
526.5
Reported
$
417.8
$
351.7
$
518.5
$
415.3
$
363.3
Hold-Normalized
$
368.5
$
366.5
$
461.0
$
371.3
$
363.3
Reported
$
66.1
$
90.2
$
78.0
$
74.1
$
54.2
Hold-Normalized
$
70.4
$
83.6
$
87.6
$
89.2
$
85.3
Reported
$
27.9
$
29.8
$
36.2
$
29.9
$
34.1
Hold-Normalized
$
27.9
$
29.8
$
36.2
$
29.9
$
34.1
Marina Bay Sands
Las Vegas Operations
Sands Bethlehem
LVS Consolidated2 Reported
$ 1,312.6
$ 1,283.9
$ 1,346.1
$ 1,050.5
$ 1,016.2
Hold-Normalized
$ 1,218.8
$ 1,255.1
$ 1,273.3
$ 1,021.6
$ 1,013.9
1. This schedule presents hold-normalized adjusted property EBITDA based on the following methodology: (a) for Macao operations and Marina Bay Sands: if the quarter’s rolling win percentage is outside of the 2.70%-3.00% band, then a hold-adjustment is calculated by applying a rolling win percentage of 2.85% to the rolling volume for the quarter. (b) for Las Vegas operations: starting with 1Q15, if the quarter’s Baccarat win percentage is outside of the 21.0%-29.0% band, then a hold-adjustment is calculated by applying a Baccarat win percentage of 25.0%, and if the quarter’s non-Baccarat win percentage is outside of the 16.0%-20.0% band, then a hold-adjustment is calculated by applying a non-Baccarat win percentage of 18.0%. Our expected Baccarat win percentage in the prior quarters was 22.0% to 30.0% (26.0% normalized) and our expected non-Baccarat win percentage in prior quarters was 14.0% to 18.0% (16.0% normalized). (c) for Sands Bethlehem: no hold-adjustment is made. (d) for all properties: gaming taxes, commissions paid to third parties on incremental win, bad debt expense, discounts and other incentives are applied to determine the adjusted property EBITDA impact. 2. Reflects consolidated adjusted property EBITDA inclusive of Other Asia (principally CotaiJet operations) segment.
27
Capital Expenditures Expectations Future Investments Include The Parisian Macao, St. Regis at SCC and Maintenance LVS Capex Expectations
($MM)
$3,000
$2,500 $1,925
$2,000
$375
$1,500
$1,449 $107
$1,179
$40
$49
$1,000
$1,510 $150
$19
$825
$898
$190
$210
$390
$192
$75
$100 $125
$472
$447
$445
$500
$500
$500
2012A
2013A
2014A
2015E
2016E
2017E
$500
$800
$860
$830
$60
$300
$0 Maintenance Investments in Current Properties¹ Development Timeline
Sands Cotai Central
The Parisian Macao²
St. Regis at SCC
Sands Cotai Central The Parisian Macao2 St. Regis at Sands Cotai Central
Other
Pre-Opening Post-Opening
Future Capital Expenditures Focused on Growth in Asia 1. Reflects investments that will generate future income in our current property portfolio (including the Four Seasons Apart-Hotel and additional gaming capacity at Sands Cotai Central). 2. The timing of capex is subject to the receipt of timely government approvals.
28
Debt Maturity Profile Debt Maturity by Year at June 30, 2015 ($MM) $6,000
$5,146 $5,000
2,115
$4,000
$3,000 $2,293 1,808
$2,000 $1,515 803
$1,000 $48
$97
$328 180
$0 2015
2016
2017
SCL % of Total
1,105
