Las Vegas Sands Corp. 1Q12 Financial Results. April 25, 2012

Transcription

1 Las Vegas Sands Corp. 1Q12 Financial Results April 25, 2012

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 First Quarter 2012 Highlights 1 Record Net Revenue, EBITDA, Operating Income and EPS Strong financial results overall with record adjusted property EBITDA of $1.07 billion for the quarter (+43.0%) Strong adjusted EPS growth Record adjusted diluted EPS of $0.70 (+89.2%) for 1Q12 Meaningful organic growth across all geographies: Macao, Singapore, Las Vegas and Bethlehem Macao: record consolidated adjusted property EBITDA of $456.4 million (+20.6%) Marina Bay Sands: record adjusted property EBITDA of $472.5 million (+66.1%) Strength of balance sheet, cash flows and earnings allows us to: Declare a second quarterly dividend of $0.25 per common share on April 25, 2012 Retain ample liquidity to pursue future growth opportunities in our current markets and in new markets around the world Organic Growth + Sands Cotai Central = Strong Future Growth 1. All comparisons present the first quarter 2012 against the first quarter 2011 unless otherwise specified 3

4 First Quarter 2012 Financial Results $ in millions, except per share information 1Q11 1Q12 $ Change % Change Net Revenue $ 2,111.9 $ 2,762.7 $ % Adjusted Property EBITDA $ $ 1,066.5 $ % Adj. Property EBITDA Margin 35.3% 38.6% 330 bps Adjusted Diluted EPS $ 0.37 $ 0.70 $ % Dividend per Common Share $ $ 0.25 $ 0.25 N/A Delivered record net revenue of $2.76 billion (+30.8%) Delivered record adjusted property EBITDA of $1.07 billion (+43.0%) Adjusted property EBITDA margin increased 330 basis points to industry leading 38.6% Adjusted diluted EPS of $0.70 (+89.2%) 4

5 First Quarter 2012 Overview by Market Strong mass table and slot growth record consolidated non rolling drop and slot handle of $1.92 billion (+9.7%) and $2.10 billion (+53.3%), respectively Macao VIP initiatives meaningfully growing rolling volume record consolidated rolling volume of $32.94 billion in 1Q12 (+33.8%) Increased retail mall (+29.8%) and hotel (+18.9%) revenues reflect strength of integrated resort business model Singapore Mass win per day increased 21.5% to $4.47 million per day Rolling volume was up 26.4% to $12.80 billion Continued growth in high margin hotel and retail mall segments Las Vegas Strong table games drop (+27.8%) driven by high end baccarat play Strong slot handle (+18.8%) Property renovations underway Bethlehem Steady operating performance to be enhanced by the opening of Events Center (May 2012) and additions to retail mall (early summer 2012) 5

6 Las Vegas Sands Corp. Consolidated Adjusted Property EBITDA and Margin Adjusted Property EBITDA and Adjusted Property EBITDA Margin Composition of 1Q12 EBITDA ($MM) $1,200 $1, % Bethlehem 2% $1,000 $800 $600 $400 $ % 38.6% 38% 36% 34% Las Vegas 11% Macao 43% Singapore 44% $200 32% $0 1Q11 1Q12 30% Adj. Prop. EBITDA Adj. Prop. EBITDA Margin 6

7 Macao Operations First Quarter 2012 Summary Record quarterly adjusted property EBITDA for Macao property operations of $456.4 million (+20.6%) Consolidated gaming volumes reflected strong growth in each segment Consolidated rolling volume increased 33.8% to record $32.94 billion Consolidated non rolling drop increased 9.7% to $1.92 billion Consolidated slot handle increased 53.3% to record $2.10 billion Initial investments to expand offerings in the VIP segment are clearly evident in 1Q12 results Increased table productivity at Plaza Casino and The Venetian Macao as measured by rolling volume per table per day Expect to realize additional benefits from our initiatives in the VIP segment in the quarters ahead High margin retail mall revenue at The Venetian Macao and Four Seasons Macao increased 29.8% to $36.6 million ($MM) $525 $450 $375 $300 $225 $150 $75 $0 $1.2 $0.9 $0.6 $0.3 $0.0 Adjusted Property EBITDA and Adjusted Property EBITDA Margin $ % 1Q11 Adj. Prop. EBITDA $1.1 $1.1 $1.0 $ % 1Q12 Adj. Prop. EBITDA Margin Rolling Volume Per Table Per Day $0.6 $0.6 $0.5 Venetian Macao Plaza Casino Sands Macao 1Q11 1Q12 Strong Momentum Into the Opening of Sands Cotai Central (Opened April 11, 2012) ($MM) 40% 35% 30% 25% 7

8 Sands Cotai Central Phase I Opened April 2012 Cotai Strip, Macao Integrated resort of ~13.7 million SF (upon completion of all Phases), which will significantly expand our footprint on the Cotai Strip Phase I opened on April 11, 2012 featuring: Mass gaming floor with 237 gaming tables and 772 slot machines, including 231 ETG seats Phase III Phase I Phase IIA Phase IIB Paiza Club VIP gaming area with 156 tables 636 Conrad branded hotel rooms and 1,224 Holiday Inn branded hotel rooms Portion of over 1.2 million SF of retail, entertainment, dining facilities and MICE space Phase IIA will open in 3Q12 and will feature: Additional mass gaming floor with ~200 gaming tables and ~1,100 slot machines 2,000 Sheraton branded hotel rooms Additional amenities Phase IIB will open in 1Q13 and will feature: 2,000 Sheraton Towers branded hotel rooms Phase III is expected to include a fourth luxury St. Regisbranded hotel and mixed use tower 8

9 Vital Drivers for Continued Mass Market Growth Growth Driver Enhanced Transportation Infrastructure Increased Hotel Capacity Continued Economic Growth in China Addressing the Growth Driver High Speed Rail development throughout China (ongoing) Completion of inter city rail to Macao (2H2012) Macao Hong Kong Zhuhai Bridge (est. 2015) Macao Permanent Ferry Terminal near Cotai Strip (mid 2013) Opening of hotel rooms at Sands Cotai Central 1,860 rooms opened on April 11, ,000 rooms in 3Q12 2,000 rooms in 1Q13 10,000+ hotel rooms to be developed on Hengqin Inland, adjacent to Macao 1 $5.9 trillion economy that grew at 9.2% in Growing Middle Class with rising disposable income Government policies to encourage higher consumption to drive economic growth China is expected to overtake Germany and the U.S. as the largest outbound tourism market in the world in Deeper Penetration into Mainland China Sources: (1) BofA-ML report dated January 5, 2012; (2) China s National Bureau of Statistics; (3) China Outbound Travel and Tourism Market 9

10 Maximizing Our Opportunity in Macao s Limited Supply Environment Estimated Upon Full Opening At March 31, 2012 of Sands Cotai Central in Early 2013 LVS Total Market Total % of Market LVS Total Market Total % of Market Mass Gaming Tables 722 3,068 24% 1,052 3,452 30% VIP Gaming Tables 403 2,174 19% 477 2,248 21% Total Gaming Tables 1,125 5,242 21% 1,529 5,700 27% Slot Machines and ETGs 3,547 16,102 22% 5,667 18,302 31% 4/5 Star Hotel Rooms 3,568 17,895 20% 9,368 23,695 40% With Sands Cotai Central Opening, LVS Will Have the Largest Asset Base in Macao Source: Macao DICJ; Company estimates Greater than $9.0 Billion of Capital Investment in Macao 27% of the Estimated 5,700 Total Gaming Tables in Macao in % of the Slot Machines and ETGs in the Total Macao Market in % of the 4/5 Star Hotel Rooms in Macao in

11 Marina Bay Sands Operations First Quarter 2012 Summary Record quarterly adjusted property EBITDA of $472.5 million, up 66.1% Adjusted Property EBITDA and Adjusted Property EBITDA Margin Gaming volumes reflected strong growth Rolling volume increased 26.4% to $12.80 billion Non Rolling drop increased 18.3% to $1.17 billion Slot handle increased 34.2% to $2.74 billion Total mass (non rolling tables and slots) win per day during the quarter increased 21.5% to reach $4.47 million ($MM) $525 $450 $375 $300 $225 $150 $75 $0 $ % 1Q11 Adj. Prop. EBITDA $ % 1Q12 Adj. Prop. EBITDA Margin 60% 55% 50% 45% 40% Non gaming amenities demonstrated strong growth during the quarter ($MM) Non Rolling Table and Slot Win Per Day Hotel ADR increased 19.6% to $341 and occupancy increased to 98.4% $5.0 $4.0 $3.0 $3.67 $1.20 $4.47 $1.62 Room revenue increased 38.2% to $77.1 million Mall revenue increased 25.0% to $34.5 million $2.0 $1.0 $0.0 $2.47 $2.84 1Q11 1Q12 Non Rolling Tables Slot Machines Strong Quarter Across All Segments of the Property 11

12 Las Vegas Operations First Quarter 2012 Summary Adjusted property EBITDA increased 77.6% to $115.8 million Table games drop, led by strong baccarat play, increased 27.8% to $609.0 million Slot handle increased 18.8% to $483.8 million Major capital reinvestment underway at Las Vegas operating properties Best opportunities for future growth: High end Asian gaming Group room pricing growth in 2013 and beyond ($MM) $125 $100 $75 $50 $25 $0 ($MM) $700 $600 $500 $400 $300 $200 $100 $0 Adjusted Property EBITDA and Adjusted Property EBITDA Margin $ % 1Q11 Adj. Prop. EBITDA $477 $203 $274 1Q11 Baccarat $ % 1Q12 Adj. Prop. EBITDA Margin Composition of Table Games Drop $609 $233 $376 1Q12 Non Baccarat 40% 30% 20% 10% Las Vegas is Recovering... And We Are Investing in Our Properties for the Future 12

13 Sands Bethlehem Operations First Quarter 2012 Summary Adjusted property EBITDA increased 24.4% to a record $27.5 million Table games drop was a record $201.5 million, an increase of 69.3% Slot handle increased 17.3% to $1.03 billion Phase I of the 150,000 SF retail outlet opened in November 2011 ($MM) $30 $25 $20 $15 $10 $5 $0 Adjusted Property EBITDA and Adjusted Property EBITDA Margin $22.1 $ % 23.8% 1Q11 1Q12 40% 30% 20% 10% 13 stores currently open Phase II will open in early summer with an additional 18 stores 50,000 SF Events Center will open May 16, 2012 ($MM) $250 $200 $150 $100 $50 $0 Adj. Prop. EBITDA $119 $81 $38 1Q11 Baccarat Adj. Prop. EBITDA Margin Composition of Table Games Drop $202 $116 $85 1Q12 Non Baccarat Table Games, Slots and Hotel All Contributing to Growth With Additional Enhancements Ahead 13

14 Financial Highlights Delivered record operating results in the first quarter of 2012 Strong EPS growth trend Ongoing dividend programs at both LVS and SCL With the completion of Sands Cotai Central: Project capital expenditures will be meaningfully reduced Free cash flow will expand Upgraded to BB+ credit rating with a positive outlook in April 2012 (one notch below investment grade) 14

15 Financial Strength On February 1, 2012 our Board of Directors declared an annual dividend, payable quarterly, of $1.00 per common share Return of over $800 million of cash to shareholders in 2012 ($MM) 3/31/12 Cash, Cash Equivalents and Restricted Cash $ 4,063.7 Debt $ 9,852.0 Net Debt $ 5,788.3 Trailing Twelve Months EBITDA $ 3,852.9 Gross Debt to Trailing Twelve Months EBITDA Net Debt to Trailing Twelve Months EBITDA 2.6 x 1.5 x Closing of Refinancing of Singapore Credit Facility Will Further Enhance Financial Strength 15

16 Disciplined Execution of Our Global Growth Strategy Development Opportunity Parameters Minimum of 20% return on total invested capital 25% 35% of total project costs to be funded with equity project financing (65% 75% of total project costs) in place before construction begins Areas of Focus for Las Vegas Sands Japan South Korea Vietnam Macao Parcel 3 Singapore MBS Expansion Europe 16

17 The Investment Case for LVS We have the largest asset base in Macao, the fastest growing major gaming market in the world Macao is a limited supply environment with expanding transportation infrastructure and dining, shopping and entertainment offerings for business and leisure visitors Sands Cotai Central opened on April 11, 2012 and will be the final major property to open in Macao for at least the next three years We have the premier destination integrated resort in Singapore, which is a duopoly environment with additional organic growth opportunities The Singapore government is making investments in transportation and tourism infrastructure to increase visitation to Singapore which will benefit Marina Bay Sands Our track record of convention based IR development, coupled with our strong balance sheet and senior leadership team, position us uniquely to win new development opportunities in emerging gaming jurisdictions around the globe Our strong balance sheet and cash flow position the company to simultaneously: 1. Pursue promising growth opportunities around the world 2. Invest in high return projects for continued organic growth 3. Return capital to shareholders 17

18 Superior Revenue Growth and Cash Flow Yield As of April 24, 2012 Publicly Traded Companies on US Exchanges Market Capitalization >$20bn 155 Companies 2011A 2013E Revenue CAGR > 20%: 12 Companies 2013E FCF Yield > 7.5%: 3 Companies Current Dividend Yield > 0% 2 Companies LVS Apple 12,222 Companies Source: Bloomberg 18

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21 China s High Speed Rail Connecting More of Mainland China to Macao Wuhan Guangzhou High Speed Rail Wuhan is the capital of Hubei Province and the most populous city 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 One of the most successful routes with trains in each direction each day 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 1.5 hours by bus to 45 minutes Expected completion in 2012 Future link to Macao Light Rail System Source: Union Gaming, LVS 21

22 Penetration Into Mainland China is Happening Visitation to Macao from Select Provinces Mainland China Visitation to Macao Population Last 9 Months Ended March 31, (MM) % Change Beijing , , % Tianjin 12 65,175 88, % Shanghai , , % Zhejiang , , % Fujian , , % Chongqing 31 99, , % Hunan , , % Guangdong 95 5,469,877 6,448, % Source: Macao DSEC. The DSEC began reporting visitation by province in July

23 Singapore Market Tourism Enhancements MRT station opened in January 2012 providing mass transit access to Marina Bay Sands MICE (meeting, convention and exhibition), hotel, retail, dining and entertainment offerings Singapore government expects over 500,000 riders per day on the line (Circle Line) New state of the art deep water cruise terminal in Marina Bay expected to open in 2Q12 S$500 million project funded by the Singapore Tourism Board (STB) 1.6 million total cruise passengers projected by STB by 2015 S$1 Billion Gardens By the Bay expected to open in June 2012 STB expecting 5 million visitors per year to the attraction MRT Station and Additional Tourism Enhancements (Deep Water Cruise Terminal and Gardens by the Bay) to Increase Visitation to Marina Bay Area Source: Singapore Land Transit Authority, Singapore Tourism Board 23

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