Las Vegas Sands Corp. 4Q13 Earnings Call Presentation

Transcription

1 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

2 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 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 ventures, substantial leverage and debt service, government regulation, legalization of gaming, interest rates, future terrorist acts, influenza, insurance, gaming promoters, risks relating to our gaming licenses, certificate and subconcession, infrastructure in Macao 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

3 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-growing consumer markets Uniquely positioned to bring unmatched track record and powerful conventionbased business model to the most promising Integrated Resort development opportunities globally Committed to maximizing shareholder returns by continuing to increase return of capital through recurring dividend and stock repurchase programs The industry s most experienced leadership team visionary and disciplined focused on driving long-term shareholder value 3

4 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-normalized adjusted property EBITDA increased 25.8% to $1.37 billion) Macao Adjusted property EBITDA increased 34.3% to record $835.9 million driven by strong growth in all segments (hold-normalized adjusted property EBITDA up 55.8% to $887.6 million) Marina Bay Sands Adjusted property EBITDA decreased 14.4% to $258.8 million (hold-normalized adjusted property EBITDA decreased 8.4% to $372.1 million) LVS returned a total of $511.0 million to shareholders during the quarter $286.7 million ($0.35 per share) returned through dividends $224.3 million returned through share repurchases Recurring dividend to increase by 42.9% to $2.00 per share ($0.50 per quarter) for calendar 2014 year Maximizing Return to Shareholders by: 1. Delivering strong growth in current markets 2. Using leadership position in convention-based IR development and operation to pursue global growth opportunities 3. Increasing return of capital to shareholders 1. Hold-normalized results are presented to adjust for the impact of variances in table games win percentage, which can vary from period to period NOTE: All comparisons in this presentation compare the fourth quarter 2013 against the fourth quarter 2012 unless otherwise specified 4

5 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 increased 7.2% to record $173.8 million (growing in-line with the Macao market) Rolling volume increased 26.0% to record $49.54 billion (growing faster than the Macao market) Retail mall revenue increased 38.7% to record $115.7 million Singapore Continued growth in mass table and slot revenues; decrease in rolling volume Mass table revenue increased 3.6% to $278.3 million Slot revenue increased 2.4% to $147.7 million Room revenue increased 13.8% to $95.8 million with ADR of $425, occupancy of 96.9% and RevPAR of $411 Rolling volume decreased 16.6% to $13.73 billion 5

6 Increasing Return of Capital to Shareholders Over $5.5 Billion of Capital Returned to Shareholders Over Last 8 Quarters $2.50 $2.00 $1.50 $1.00 LVS Recurring Dividends per Share 1 The LVS Board of Directors increased recurring dividend by 42.9% to $2.00 per share for the 2014 $2.00 calendar year ($0.50 per share payable quarterly) $1.00 $1.40 The company remains committed to returning capital to shareholders via: $0.50 $ Total Capital Returned to Shareholders Year Year Ended Ended $ in millions 12/31/ /31/2013 Total LVS Dividends Paid 1 $ 823 $ 1,153 $ 1,976 LVS Special Dividend Paid 2,262-2,262 LVS Shares Repurchased Subtotal LVS $ 3,085 $ 1,723 $ 4,808 SCL Dividends Paid Total $ 3,442 $ 2,134 $ 5,575 Recurring quarterly dividend program at Las Vegas Sands with a commitment to grow the dividend annually by at least a doubledigit percentage $2.0 billion Las Vegas Sands stock repurchase program with a commitment to purchase at least $75 million of stock each month (At Dec. 31, 2013, remaining authorization of $1.43 billion) Special dividends 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 Reflects only the public (non-lvs) portion of dividends paid by Sands China Ltd. (total SCL dividends paid in 2012 & 2013 total $2.58 billion) 6

7 LVS Generates Greater Dividend Yield than the S&P500 Index 2014 Forward Dividend Yield of LVS and S&P500 1 Sensitivity of LVS Dividend Yield 4.0% 4.0% 3.5% 3.5% 3.3% 3.0% 2.5% 2.0% 2.7% 2.2% +50 bps 3.0% 2.5% 2.0% 2.9% 2.7% 2.5% 2.2% Dividend Yield as of 1/28/14² 2.0% 1.5% 1.5% 1.0% 1.0% 0.5% 0.5% 0.0% LVS S&P Reflects the 2014 dividend yield for LVS and the Bloomberg 2014 forward dividend yield estimate for the S&P500 on January 28, Reflects the 2014 forward LVS dividend ($2.00) over the closing price for LVS on January 28, % $60.00 $70.00 $75.26 $80.00 $90.00 $ LVS s 2014 forward dividend yield of 2.7% reflects a 50 bps premium above the S&P500 forward dividend yield estimates 7

8 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 million 1 Trailing Twelve Months LVS Stock Repurchases $570.4 million Cash Balance $3.61 billion Net Debt $6.15 billion Net Debt to TTM EBITDA 1.3x Figures as of December 31, 2013 Sands China U.S. Corporate (US GAAP in $MM) Ltd. Singapore Operations 2 and Other Total Cash, Cash Equivalents and Restricted Cash $ 2,949.1 $ $ $ 75.0 $ 3,607.3 Debt $ 3,216.8 $ 3,626.9 $ 2,916.6 $ - $ 9,760.3 Net Debt $ $ 3,411.3 $ 2,549.0 $ (75.0) $ 6,153.0 Trailing Twelve Months Adjusted Property EBITDA $ 2,907.6 $ 1,384.6 $ $ (3.9) $ 4,763.4 Gross Debt to Trailing Twelve Months EBITDA 1.1 x 2.6 x 6.1 x NM 2.0 x Net Debt to Trailing Twelve Months EBITDA 0.1 x 2.5 x 5.4 x NM 1.3 x Strong Balance Sheet and Cash Flow Maximize Financial Flexibility 3 1. Reflects only the public (non-lvs) portion of dividends paid by Sands China. Total TTM dividends paid by SCL were $1.38 billion. 2. U.S. Operations includes the cash and debt at the U.S. Restricted Group (plus $68.4M 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 was 1.2x, reflecting the dividends and royalty fees paid by Sands China and Marina Bay Sands to the U.S. Operations 8

9 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 $ % Adjusted Property EBITDA $ 1,003.0 $ 1,214.0 $ % Adj. Property EBITDA Margin 32.6% 33.2% 60 bps Adjusted Diluted EPS $ 0.54 $ 0.72 $ % Dividends per Common Share $ 0.25 $ 0.35 $ % 1 Hold-Normalized Adjusted Property EBITDA $ 1,087.6 $ 1,368.2 $ % Hold-Normalized Adj. Property EBITDA Margin 34.6% 35.5% 90 bps Hold-Normalized Adj. Diluted EPS $ 0.64 $ 0.87 $ % 1. Excludes a $2.75 per share special dividend paid in December

10 Record Q4 Macao Operating Performance Macao Property Operations Adjusted Property EBITDA and Adjusted Property EBITDA Margin $900 Actual +34.3% $835.9 Hold-Normalized +55.8% $ % $800 $700 $600 $622.2 $ % 40% $500 $ % 33.4% 30.7% 34.3% 30% $300 20% $200 $100 10% $0 4Q12 4Q13 4Q12 4Q13 0% 10

11 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 year) Mass table count increased by 26.7% to reach an average of 1,091 during the quarter Slots and ETGs Slot and ETG win up 7.2% to record $173.8 million driven by increased slot play at Sands Cotai Central VIP gaming Rolling volume up 26.0% to record $49.54 billion VIP table efficiency increased 33.7% to record $1.23 million roll per table per day VIP table count decreased by 5.6% to an average of 439 VIP tables during the quarter Strong Operating Momentum Across All Gaming Segments 11

12 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 Day 2 $1,400 50% $14,000 $1,200 $1,000 $800 $600 $ % $ % $1,218.5 $1,061.2 $ % 29.8% 30.5% 45% 40% 35% 30% 25% 20% $12,000 $10,000 $8,000 $6,000 $9,716 $10,204 $10,190 $10,961 $12,143 $400 15% $4,000 $200 10% 5% $2,000 $0 0% 4Q12 1Q13 2Q13 3Q13 4Q13 Mass Table Win % of Macao Mass Table Revenue 1 $0 Mass Tables 4Q12 1Q13 2Q13 3Q13 4Q ,003 1,052 1,091 ~ $2.2 Billion of Annual Departmental Profit at the 4Q13 Run-Rate Source: Macao DICJ 1. LVS s mass table market share as presented above reflects the Macao DICJ s presentation methodology, which includes live dealer ETG configurations within the mass table segment and Paiza cash revenue within the VIP segment. For financial reporting purposes, LVS presents a non-rolling table segment (which includes Paiza cash and excludes all ETGs) and a slot segment (which includes all ETGs) 2. Excludes revenue from all ETGs 12

13 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 1 Mass Table Win per Unit per Day $10,000 $11,000 $12,143 $13,000 $14,000 $15,000 $16, $1,478 $1,626 $1,795 $1,922 $2,070 $2,217 $2,365 # of 1,000 1,643 1,807 1,994 2,135 2,300 2,464 2,628 Mass 1,091 1,792 1,971 2,176 2,330 2,509 2,688 2,867 Tables 1,100 1,807 1,987 2,194 2,349 2,529 2,710 2,891 1,200 1,971 2,168 2,393 2,562 2,759 2,957 3,154 LVS s 4Q13 annualized mass table departmental profit Our departmental profit opportunity in the mass table segment in Macao Nearly $2.2 billion of annualized mass table departmental profit today opportunity for additional growth through continued execution of our mass strategy 1. Based on departmental profit margin of 45% of mass table revenue for LVS s Macao operations 13

14 Our Macao Property Portfolio Has Delivered Consistent and Reliable Mass Market Growth Macao Market Mass Table and Slot Revenues by Operator $1,400 $1,354 $1,200 $1,197 $1,000 $911 $995 $1,052 $800 $779 $600 $400 $391 $421 $428 $462 $478 $490 $506 $546 $561 $632 $688 $200 $0 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 LVS SJM Wynn Galaxy MGM Melco Our Mass Table and Slot Revenues Have Grown 16 Quarters in a Row and Now Approach $1.4 Billion per Quarter Note: This presentation conforms to the Macao DICJ s methodology of presenting mass table and slot revenue. Source: Company reports; Macao DICJ 14

15 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 $5.00 $4.00 $3.00 $2.00 $1.00 $0.00 $4.87 $4.29 $3.51 $3.01 $2.58 4Q12 1Q13 2Q13 3Q13 4Q13 $15,000 $12,813 $13,952 $12,000 $9,616 $9,000 $6,613 $7,933 $6,000 $3,000 $0 4Q12 1Q13 2Q13 3Q13 4Q13 Mass Tables VIP Rolling Volume per Table per Day Total Property Visitation per Day $1.25 $1.20 $1.01 $1.00 $0.75 $0.76 $0.80 $0.79 $0.50 $0.25 $0.00 4Q12 1Q13 2Q13 3Q13 4Q13 VIP Tables ,000 50,000 40,000 30,000 20,000 10, ,485 52,126 37,969 40,676 33,556 4Q12 1Q13 2Q13 3Q13 4Q13 Increasing Hotel Occupancy, Table Productivity and Non-Gaming Amenities will Drive Growth in all Segments 15

16 Strong Growth in Macao VIP Business Growth and Increasing Table Productivity Rolling Volume Increased 26.0% Consolidated Rolling Volume per Table per Day ($BN) $60 30% $1.40 $50 $40 $39.3 $41.2 $41.9 $45.4 $ % 20% $1.20 $1.00 $0.92 $0.88 $0.88 $1.06 $1.23 $ % 17.4% 17.4% 18.2% 17.5% 15% $0.80 $0.60 $20 10% $0.40 $10 5% $0.20 $0 0% 4Q12 1Q13 2Q13 3Q13 4Q13 Rolling Volume % of Macao Market Rolling Volume $0.00 Rolling Tables 4Q12 1Q13 2Q13 3Q13 4Q Greater Than $670 Million of Annual Departmental Profit at the 4Q13 Run-Rate 16

17 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 is progressing Targeted completion date: Late 2015 Hotel rooms and suites: 3,000+ Gaming capacity: ~450 table games and 2,500 slots and ETGs Additional amenities including retail mall, 50% scale replica Eiffel Tower, MICE space, diverse food & beverage options and entertainment Map of Macao s Cotai Strip Rendering of The Parisian Macao Construction Progress January 27, 2014 Galaxy Macau Lake and Nature Preserve C The O Venetian T Macao (Parcel 1) A Four Seasons Hotel Macao and I Plaza Casino (Parcel 2) Tropical Garden The Parisian Macao (Parcel 3) Macau Studio City S T R I P City of Dreams St. Regis Conrad / Holiday Inn Sheraton Sheraton Towers Tropical Garden MGM MGM Sands Cotai Central Wynn Wynn Resorts Macau Dome Macau Int l Airport SJM LVS Planned Development LVS Operating Assets Third Party Operating Asset Third Party Future Development 17

18 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 past ten quarters) Slot revenue increased 2.4% to $147.7 million (between $135 million to $150 million in each of the past ten quarters) VIP volumes decreased 16.6% to $13.73 billion in rolling volume Strong hotel performance Hotel room revenue up 13.8% to $95.8 million with RevPAR of $411 and occupancy of 96.9% Retail mall revenue decreased 3.1% to $43.3 million while mall repositioning and tenant remix towards high-performing luxury brands is underway¹ Our Focus in Singapore: 1. Increasing business and leisure visitors to Singapore, which will drive growth at Marina Bay Sands 2. Identifying high value customers in the region outside of Singapore and attracting them to MBS 1. 37,000 square feet is being repositioned representing 5.8% of total retail mall square footage 18

19 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 globally Development opportunity parameters: 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) Promising Areas of Future Development Interest for Las Vegas Sands Macao Japan South Korea Vietnam The Parisian Macao St. Regis Tower at Sands Cotai Central 19

20

21 Appendix

22 Historical Hold-Normalized Adj. Property EBITDA 1 $ in millions 4Q12 1Q13 2Q13 3Q13 4Q13 Macao Property Operations Reported $ $ $ $ $ Hold-Normalized $ $ $ $ $ Marina Bay Sands Reported $ $ $ $ $ Hold-Normalized $ $ $ $ $ Las Vegas Operations Reported $ 52.8 $ $ 63.0 $ 87.1 $ 88.2 Hold-Normalized $ 87.9 $ 82.7 $ 89.1 $ 48.5 $ 83.3 Sands Bethlehem Reported $ 27.5 $ 29.9 $ 33.6 $ 29.6 $ 30.3 Hold-Normalized $ 25.6 $ 28.2 $ 30.5 $ 29.0 $ 24.5 LVS Consolidated 2 Reported $ 1,003.0 $ 1,166.6 $ 1,106.9 $ 1,275.8 $ 1,214.0 Hold-Normalized $ 1,087.6 $ 1,188.5 $ 1,170.9 $ 1,236.7 $ 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 table volume for the quarter (b) for Las Vegas operations and Sands Bethlehem: calculated by applying a non-rolling win percentage of 21.0% and 14.8%, respectively (c) for all properties: gaming taxes on incremental win are applied to determine the EBITDA impact 2. Reflects consolidated adjusted property EBITDA inclusive of Other Asia segment (principally CotaiJet operations) 22

23 Strong Historical Revenue and EBITDA Growth Over the Last Four Years $16,000 LVS Historical Net Revenue $6,000 LVS Historical Adjusted Property EBITDA $14,000 $13,769.9 $5,000 $4,763.4 $12,000 $10,000 $9,410.7 $11,131.1 $4,000 $3,532.2 $3,791.1 $8,000 $6,000 $4,563.1 $6,853.2 $3,000 $2,000 $2,228.6 $4,000 $2,000 $1,000 $1,086.2 $ $ Margin 23.8% 32.5% 37.5% 34.1% 34.6% The power and consistency of our convention-based Integrated Resort business model is reflected in our financial results 1. Marina Bay Sands opened in April Sands Cotai Central opened in April

24 Strong Historical Net Income and EPS Growth Over the Last Four Years $3,000 LVS Historical Adjusted Net Income $3.50 LVS Historical Adjusted Diluted Earnings per Share $2,500 $2,399 $3.00 $2.90 $2,000 $1,644 $1,768 $2.50 $2.00 $2.02 $2.14 $1,500 $1.50 $1,000 $775 $1.00 $0.98 $500 $0.50 $0 $ $0.00 $ Diluted Shares Outstanding M 792M 812M 825M The power and consistency of our convention-based Integrated Resort business model is reflected in our financial results 1. Marina Bay Sands opened in April Sands Cotai Central opened in April M 24

25 Capital Expenditures Expectations Future Investments Include SCC, The Parisian Macao and Maintenance $2,500 $2,000 $2,000 $200 $450 LVS Capex Expectations $2,160 $1,500 $1,449 $107 $40 $825 $1,000 $500 $830 $898 $49 $210 $192 $225 $250 $1,150 $60 $900 $50 $350 $550 $50 $472 $447 $500 $500 $500 $500 $0 2012A 2013A 2014E 2015E 2016E 2017E Maintenance Investments in Current Properties¹ Sands Cotai Central The Parisian Macao² St. Regis at SCC Other Development Timeline Sands Cotai Central The Parisian Macao 2 St. Regis at Sands Cotai Central Future Capital Expenditures Focused on Growth in Asia Pre-Opening Post-Opening 1. Reflects investments that will generate future income in our current property portfolio (including the Four Seasons Apart-Hotel and a third gaming area at Sands Cotai Central) 2. The timing of capex is subject to the receipt of timely government approvals 25

26 Debt Maturity Profile Debt Maturity by Year at December 31, 2013 $3,500 $3,000 $3,022 $2, $2,115 $2,000 $1,500 $1,000 $1, ,088 $1,242 $1, ,115 $500 $0 $378 1, $ SCL MBS USRG LVSC 1 % of Total 4% 16% 31% 13% 14% <1% 22% Long Term and Low Cost Financing in Place 1. Reflects refinancing of U.S. Restricted Group debt completed in the fourth quarter of

27 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 $18.0 $15.0 $12.8 $15.1 $12.0 $10.1 $9.0 $7.0 $8.1 $6.0 $4.7 $4.9 $3.0 $2.6 $0.8 $1.0 $2.0 $2.3 $0.0 Venetian Macao Sands Cotai Central Plaza Casino (Four Seasons) Total Cotai Strip Sands Macao (Peninsula) Total Macao Ops 4Q12 Strong growth at every property in our Macao portfolio drove an increase of 49.5% in our portfolio-wide mass win per day to a market leading $15.1 million per day 4Q13 27

28 Profitable Macao Slot Business Continues to Grow Macao Slot and ETG Revenue Increased 7.2% Macao Slot and ETG Win per Unit per Day $200 $180 $160 $162.1 $148.9 $149.4 $165.9 $ % 40% 35% $400 $300 $299 $283 $285 $327 $353 $140 $120 $100 $ % 29.6% 30.1% 32.6% 32.7% 30% 25% 20% $200 $60 15% $100 $40 10% $20 $0 4Q12 1Q13 2Q13 3Q13 4Q13 Slot & ETG Win % of Macao Market Slot Revenue 5% 0% 1 $0 Slots & ETGs 4Q12 1Q13 2Q13 3Q13 4Q13 5,901 5,843 5,757 5,507 ~ $320 Million of Annual Departmental Profit at the 4Q13 Run-Rate 5,349 Source: Macao DICJ 1. LVS s slot market share as presented above reflects the Macao DICJ s slot revenue reporting methodology, which excludes ETG play. Live dealer ETG configurations are reported within the mass table segment. For financial reporting purposes, LVS presents a non-rolling table segment (which excludes all ETGs) and a slot segment (which includes all ETGs). 28

29 Marina Bay Sands Operations Fourth Quarter 2013 Details Adjusted property EBITDA of $258.8 million, a decrease of 14.4% Hold-normalized adjusted property EBITDA of $372.1 million, a decrease of 8.4% Total mass (non-rolling tables and slots) win per day increased 3.2% to reach $4.63 million Non-Rolling win increased 3.6% to $278.3 million Slot win increased 2.4% to $147.7 million Rolling volume decreased 16.6% to $13.73 billion compared to $16.47 billion in 4Q12 Strong growth in hotel ADR, which increased 15.5% to $425 while room revenue increased 13.8% to reach $95.8 million $500 $400 $300 $200 $100 $0 $5.0 $4.0 $3.0 $2.0 $1.0 $0.0 Adjusted Property EBITDA and Adjusted Property EBITDA Margin $ % Actual $ % $ % $ % 4Q12 4Q13 4Q12 4Q13 $4.49 $4.63 $1.57 $1.61 $2.92 $3.03 4Q12 Non-Rolling Tables Hold-Normalized Non-Rolling Table and Slot Win Per Day 4Q13 Slot Machines 60% 50% 40% 30% Continued Growth in Mass Gaming and Hotel Businesses; VIP Soft 29

30 Singapore Credit Collections Remain Healthy Reserve Balance Has Now Increased to 37.2% of Gross A/R $450 $375 $300 $225 $150 $75 $0 $1,200 $900 $600 $300 $0 $40.4 $145.5 $203.4 $208.3 $285.0 $ % 8.4% 9.6% $249.9 $271.1 $361.2 $ % 11.3% $345.2 $314.3 $418.1 $ % $655.7 $ % 19.8% $821.5 $ % $1,045.2 $1,086.6 $1,059.4 $1,119.5 $1, % 26.7% 27.8% 30.3% 32.0% 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 Gross Casino A/R Balance at End of Period $311.4 $317.0 $377.5 $367.8 $407.8 $ Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 Reserve Balance Has Increased to $378 Million as Accounts Receivable Balance Has Grown Quarterly Provision $0 Casino Credit Collections Remain Healthy $17M $10M $19M $11M $24M $37M $32M $40M $40M $38M $39M Write-Offs $11M Reserve Against A/R Balance Life to Date Provision of $419M Represents 10% of Rolling Win Since Opening of Property $37M $13M $39M $4M $403.0 $36M $13M 37.2% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 30

31 Asian Retail Mall Revenue Increasing Steadily Trailing Twelve Months Retail Mall Revenue $500 $450 $400 $350 $300 $250 $200 $150 $422 $409 $395 $157 $159 $156 $16 $24 $29 $83 $83 $87 $450 $155 $38 $97 $478 $154 $42 $113 $100 $50 $0 $140 $143 $149 $160 $169 4Q12 1Q13 2Q13 3Q13 4Q13 Venetian Macao Four Seasons Macao Sands Cotai Central¹ Marina Bay Sands² Operating Profit $328M $341M $355M $379M Operating Profit Margin 83% 83% 84% 84% $407M 85% 1. At December 31, 2013, 210,143 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 ,000 square feet of the Shoppes at Marina Bay Sands (5.8% of total mall square footage) was being repositioned to higher yielding luxury tenants during the fourth quarter. 31

32 Las Vegas Operations Fourth Quarter 2013 Details Adjusted property EBITDA was $88.2 million, an increase of 67.0% On a hold-normalized basis, adjusted property EBITDA was $83.3 million, a decrease of 5.2% Table games drop increased 41.4% to $649.7 million, driven by a 72.3% decrease in Baccarat drop Non-Baccarat drop increased 3.9% to $215.7 million Slot handle increased 4.8% to $542.2 million RevPAR increased 4.5% to $185 driven by an increase of 2.5% in ADR Best opportunities for future growth: High-end Asian gaming growth Increase in group room pricing in 2014 and 2015 $100 $80 $60 $40 $20 $0 $700 $600 $500 $400 $300 $200 $100 $0 Adjusted Property EBITDA and Adjusted Property EBITDA Margin $ % $88.2 $ % 25.4% $ % 4Q12 4Q13 4Q12 4Q13 Composition of Table Games Drop $459 $208 $252 4Q12 Baccarat $650 $216 $434 4Q13 Non-Baccarat Las Vegas Results Reflect A Stable But Competitive Operating Environment Actual Hold-Normalized 40% 30% 20% 10% 0% 32

33 Sands Bethlehem Operations Fourth Quarter 2013 Details Adjusted property EBITDA increased 10.3% to $30.3 million Hold-normalized adjusted property EBITDA decreased 4.4% to $24.5 million Table games drop increased 12.3% to reach $258.9 million Slot handle increased 2.8% to $995.0 million Recently added 16 new table games bringing the total number of table games to 200 (including 36 poker tables) Retail outlet mall (150,000 SF) features 26 stores including Coach, Tommy Hilfiger, DKNY,European Body Concepts Day Spa and recently opened Joli French Bakery and Cafe Event Center (50,000 SF) Headline events have included Belator MMA, Yes, Tiesto, Willie Nelson, The Beach Boys, Incubus, Glenn Frey, Crosby, Stills and Nash, NBC Fight Night, and Diana Krall with average occupancy of 82% $35 $30 $25 $20 $15 $10 $5 $0 $300 $200 $100 $0 Adjusted Property EBITDA and Adjusted Property EBITDA Margin $27.5 Actual $ % 24.4% $25.6 $ % 20.9% 4Q12 4Q13 4Q12 4Q13 $231 $123 $259 $138 $108 $121 4Q12 Baccarat Healthy Fourth Quarter Operating Performance Hold-Normalized Composition of Table Games Drop 4Q13 Non-Baccarat 40% 30% 20% 10% 0% 33

34 Macao Market Background and Infrastructure Slides

35 VIP Gaming Represents 66% of Total Macao GGR but Mass Tables and Slots Generate ~67% of Gaming Operating Profit $50,000 $45,000 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 Full Year 2013 Macao Market Gross Gaming Revenue Mass Tables and Slots $45,156 $29,848 $15,309 Gross Gaming Revenue VIP Gaming 4Q13 YoY Growth +24% +18% +35% 1 Composition of Macao Market Gross Gaming Revenue and Est. Gaming Operating Profit 2 100% 80% 60% 40% 20% 0% 66% 34% Gross Gaming Revenue ~2X Mass Tables and Slots 33% 67% Operating Profit VIP Gaming Mass Gaming Generates 34% of the Gaming Revenue, but ~67% of the Gaming Operating Profit Source: Macao DICJ 1. In the fourth quarter of 2013, the mass table segment grew 40% and the slot business grew 7% compared to the fourth quarter of This presentation reflects an assumed operating profit margin of 10.0% on gross VIP revenue and a blended margin of 40% on mass table and slot gross revenue 35

36 Strong and Consistent Growth in Macao s High Margin Mass Market Macao Mass Table and Slot Gross Gaming Revenue $18,000 60% $16,000 $14,000 $12,000 $10,000 $8,000 39% 30% 33% $6,587 36% $8,949 $11,674 $15,309 30% 31% 50% 40% 30% $6,000 $4,000 $2,000 16% $2,084 $2,409 $3,355 $4,358 $4,952 14% 20% 10% $ % Mass Table and Slot GGR Year-over-Year Growth Macao s Mass Table and Slot Revenue has Grown by at Least 30% in each of the Last 16 Quarters, Including 35% Growth in 4Q13 (40% Mass Table Growth and 7% Slot Growth) Source: Macao DICJ 36

37 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 2023, driving increased disposable income and consumption Over 160 million Chinese are anticipated to travel outside of China by 2018, compared to 83 million in 2012 Transportation connectivity throughout China, especially in the Pearl River Delta region, will be meaningfully expanded Hengqin Island will contribute to Macao s diversification and to its further development as a business and leisure tourism destination Over 15,000 new hotel rooms will come online in Macao by 2018 Sources: McKinsey, Ernst & Young, CLSA 37

38 1 China s Growing Middle Class Chinese Annual Urban Household Income Distribution Millions of Households CAGR E +20% Projected Urban Population in million % 400 million % 307 million E Poor ( <US$6,000) Value (US$6,000 - US$16,000) -4% 55 million 822 million 1 Mainstream (US$16,000 - US$34,000) Affluent ( >$US34,000) China s rapidly growing middle class will drive increased disposable income and consumption 1. This figure reflects 59.4% of the projected Chinese population in 2020 Source: McKinsey Insights China, US Census Bureau International Database 38

39 2 Growth in Chinese Outbound Tourism Outbound Travel from China ( ) International Tourism Expenditure ( ) Expenditure (US$b) Chinese outbound tourists (millions) CAAC estimates 107 $ Year CAGR ( ) Expenditure 29.7% Tourists 15.9% $30 $8 $9 $11 $13 $ $22 $24 $ $15 $15 $4 $ $55 41 $36 $ $70 '95'96'97'98'99'00'01'02'03'04'05'06'07'08'09'10'11'12'13'14'15 Wealth Generation and Increased Mobility Have Driven Strong Growth in Outbound Trips and Tourism Spend Source: UNWTO, Civil Aviation Administration of China 39

40 2 Additional Infrastructure Enabling Growth 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 % Change (MM) Rate (LTM) Guangdong 7,929,668 8,200,118 +3% % Fujian 811, ,571-4% % Heilongjiang Subtotal 8,740,956 8,981,689 +3% % Jilin Hunan 587, , % % Xinjiang Qinghai Gansu Ningxia Inner Mongolia Shanxi Hebei Shandong Liaoning Beijing Tianjin Zhejiang 620, ,929 +4% % Hubei 486, , % % Shaanxi Henan Jiangshu Shanghai 505, ,143 +7% % Tibet Sichuan Yunnan Chongqing Guizhou Guangxi Hubei Hunan Anhui Jiangxi Guangdong Fujian Zhejiang Taiwan Shanghai Jiangsu 479, ,760 +8% % Sichuan 342, , % % Henan 317, , % % Macao Hong Kong Beijing 326, ,283 +9% % Tianjin 127, ,174-2% % - 10% - 0% 0% - 10% 10% - 20% Greater than 20% Data Not Available All Other Provinces 4,367,778 5,223, % % Subtotal (Excluding Guangdong & Fujian) 8,161,543 9,360, % 1, % 1 Total China 16,902,499 18,632, % 1, % 1. In 2013, IVS visitation to Macao from China increased 13.0% over 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 40

41 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% Hong Kong +6% +26% +24% +24% (MM) % +16% Hong Kong Received 21.7M More Visitors from China in 2013 than did Macao Macao Hong Kong Robust Transportation Infrastructure, 74,000 Hotel Rooms and World-Class Dining and Shopping Amenities Enabled 40.3 Million Mainland Chinese Visitors to Travel to Hong Kong in Hong Kong tourism data is only available through November The 2013 figure presented above represents TTM November Source: Macao DSEC; Hong Kong Tourism Board 1 41

42 2 Chinese Day-Trip and Overnight Visitation To 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) Source: Macao DSEC Additional Hotel Capacity and Transportation Infrastructure will Enhance Overnight Visitation Growth to Macao in the Future 42

43 2 Opportunity for Increased Overnight Visitation and Length of Stay In Macao Composition of 2013 Visitation from Mainland China Daytrip Visitors Overnight Visitors Avg. Length of Stay for Mainland Chinese Overnight Visitors in 2013 Total 2013 Mainland Chinese Visitor Nights² (MM) (Days) (MM) Macao 1. The Hong Kong average length of stay figure is not yet available for The 3.7 figure presented is from Calculated as total overnight visitors from Mainland China multiplied by average length of stay for Mainland overnight visitors in each market for 2013 Source: Macao DSEC, Hong Kong Tourism Board 0.0 Hong Kong Mainland Visitors Spent 62.7 Million Visitor Nights in Hong Kong in the Last 12 months Compared to Just 18.7 Million Visitor Nights spent in Macao

44 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 Provides seamless connection from Northern China to the Macao border via the Guangzhou-Zhuhai Intercity Rail Wuhan Guangzhou High-Speed Rail Wuhan is the capital of Hubei Province and one of the most populous cities in Central China with ~10 million people Wuhan is a major transportation hub and known as the economic hub of Central China HSR reduces travel time to Guangzhou from 11 hours by bus to 3.5 hours by train Guangzhou Zhuhai Intercity Rail Rail line connecting Guangzhou to Zhuhai, where the Gongbei border gate to Macao is located Guangzhou is the largest city in Guangdong province and is a key economic and transportation hub Reduces travel time from Guangzhou to Zhuhai from 2+ hours by bus to as short as 60 minutes Zhuhai station opened in Jan 2013 Future link to Macao Light Rail System One of the most successful routes with trains in each direction each day Source: Wikipedia, LVS, NYT China s Ministry of Railways plans to spend greater than US$100 billion per year on rail development for the foreseeable future 44

45 3 Meaningful Infrastructure Improvements Throughout the Pearl River Delta Region Guangzhou Population: 16M GDP Per Capita: US$12,000 Wuhan Guangzhou High-Speed Rail 3.5 hour train ride trains in each direction per day Guangzhou Zhuhai Intercity Rail minute train ride (2+ hours by bus) trains in each direction per day Final link to Gongbei border gate completed in January 2013 China Border Gate Expansion Daily capacity increased from 150,000 to 350,000 people in 2H13 Will reduce average wait times on China side of border (2+ hours today) Gongbei Hengqin Railway Connects the Gongbei border crossing with Hengqin Island Stops at Lotus Bridge crossing and ends at Chimelong theme park Expected completion 2017 Hengqin Island Special economic area Over $20B of overall investment Over 10,000 hotel rooms First phase of Chimelong theme park to open in early 2014 and expected to attract 20M visitors annually when fully built Macao Population: 0.6M GDP Per Capita: US$66,000 Source: World Bank, China Daily, Chinatrainguide.com, Analyst reports. Note: population and GDP data from 2011 Guangzhou Shenzhen Hong Kong Rail 2 hour train ride from Guangzhou to HK 25 trains in each direction per day Shenzhen Population: 10M GDP Per Capita: US$18,000 Hong Kong Population: 7M GDP Per Capita: US$34,000 Hong Kong-Macao-Zhuhai Bridge (2016) Infrastructure Legend Existing Completed in 1Q13 Future 45

46 4 Hengqin Island Adds to Critical Mass of 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 Kong and Macao Master-planned island with greater than US$20 billion of investment focused on tourism development, industrial and technological innovation and education One of three current New Area reform zones in China Support from the Central Government to enable long term success Empowerment to have broad flexibility on economic and legal matters Designed to contribute to the diversification of Macao US$3.2 billion Chimelong International Ocean Resort opened January 28 and is expected to generate 20 million visits in the future after completion of all phases¹ Hengqin s central business district will feature a 1.2 million square foot convention center More than 10,000 hotel rooms expected to open over the next five years Source: Macau Daily, Zhuhai Daily, Chimelong Group, Hengqin New Area Administrative Committee 1. The Chimelong Hengqin Hotel had a soft opening on January 18, On November 20, 2013, Chimelong opened the China International Circus Town (Arena) portion of Phase 1 for the China International Circus Festival, and regular circus shows began on January 18, Phase 1 is scheduled to be fully operational by mid

47 5 Market Leading Hotel Capacity at LVS Las Vegas Sands Operates 38% of Macao s Current 4/5-Star Hotel Inventory 10,000 9,000 8,000 7,000 6,000 5,000 9,277 Sands Macao, 289 The Venetian Macao 2,905 Macao Market Gaming Operator Hotel Rooms 1 Four Seasons Macao, 360 Hotel % of Gaming % of Total Gaming Operator Rooms Operators Market Las Sands Vegas China Sands ` 9,277 56% 38% Galaxy Entertainment 3,259 20% 13% Melco Crown 1,677 10% 7% Wynn Resorts 1,014 6% 4% SJM Holdings² 839 5% 3% MGM China 587 4% 2% Subtotal Gaming Operators 16, % 69% Other 4/5 Star 7,587 0% 31% Total 24, % 100% 4,000 3,000 2,000 1,000 0 Sands Cotai Central 5,723 3,259 Starworld, 509 Grand Waldo, 550 Galaxy Macau 2,200 1,677 Altira Macau, 216 Melco Crown 1,461 1, Wynn Macau Sofitel Macau, 408 1,014 Grand Lisboa, MGM Grand, 587 Las Vegas Sands Galaxy Entertainment Melco Crown Wynn Resorts SJM Holdings² MGM China LVS hotel inventory exceeds the other five gaming operators combined 1. In addition to the hotel rooms that are owned by gaming operators presented here, there are 7,587 additional four- and five-star hotel rooms in Macao 2. Reflects only SJM Holdings self-owned hotels Source: Company filings, Macao DSEC 47

48 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, ,000 12,000 10,000 8,000 6,000 4,000 2, ,677 The Parisian Macao 3,000 Sands Macao, 289 The Venetian Macao 2,905 Sands Cotai Central 5,723 St. Regis Macao, 400 Four Seasons Macao, 360 4,559 Galaxy Macau Phase II 1,300 Starworld, 509 Grand Waldo, 550 Galaxy Macau 2,200 3,677 Macau Studio City 2,000 Altira Macau, 216 City of Dreams 1,461 Hotel % of Gaming % of Total Gaming Operator Rooms Operators Market Las Vegas Sands ` 12,677 44% 34% Galaxy Entertainment 4,559 16% 12% Melco Crown 3,677 13% 10% Wynn Resorts 3,014 10% 8% SJM Holdings² 2,839 10% 8% MGM China 2,187 8% 6% Subtotal Gaming Operators 28, % 79% Other 4/5 Star 7,823 0% 21% Total 36, % 100% 3,014 2,839 Wynn Cotai 2,000 Wynn Macau, 1,014 SJM Cotai 2,000 Sofitel Macau, 408 Grand Lisboa, 431 2,187 MGM Cotai 1,600 MGM Grand, 587 Las Vegas Sands Galaxy Entertainment Melco Crown Wynn Resorts SJM Holdings² MGM China At the completion of the next phase of development, LVS will operate 44% of all gaming operator hotel rooms 1. In addition to the hotel rooms that are owned by gaming operators presented here, there are 7,823 additional four- and five-star hotel rooms in Macao 2. Reflects only SJM Holdings self-owned hotels Source: Company filings, DSEC 48

49