Las Vegas Sands Corp. 1Q13 Financial Results May 1, 2013
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 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
First Quarter 2013 Highlights Strong Quarterly Results and Increased Return of Capital to Shareholders Consolidated hold adjusted adjusted property EBITDA increased 28.2% to record $1.19 billion (adjusted property EBITDA increased 9.4% to record $1.17 billion) Macao Hold adjusted adjusted property EBITDA up 51.2% to record $630.2 million driven by strong growth in all segments (adjusted property EBITDA increased 38.1%) Singapore Hold adjusted adjusted property EBITDA up 15.7% to record $451.1 million on strong VIP volume and steady mass business U.S. Operations Las Vegas remained stable and Sands Bethlehem continued to grow Recurring quarterly dividend increased 40% to $0.35 per share Maximizing Return to Shareholders by: 1. Delivering strong growth in current markets 2. Pursuing growth opportunities around the world 3. Increasing return of capital to shareholders NOTE: All comparisons in this presentation compare the first quarter 2013 against the first quarter 2012 unless otherwise specified 3
Macao Outstanding Growth in all Gaming Segments Singapore VIP Strong; Mass Table, Hotel and Retail Growing Macao Record EBITDA driven by strong growth in all segments Mass table win increased 62.5% to record $866.7 million Slot and ETG win increased 34.8% to $148.9 million Rolling volume increased 24.9% to record $41.15 billion Expanded market leading hotel capacity by opening 2,100 additional Sheraton hotel rooms at Sands Cotai Central on January 28, 2013 Added 200 gaming tables to our portfolio in February 2013 Singapore Record VIP volume; Growing mass table business; Continued growth in hotel room, MICE and retail segments Rolling volume increased 42.2% to record $18.21 billion Mass table and slot win per day increased 3.9% to $4.64 million (tied property record set in 4Q11) Room revenue increased 9.7% to $84.6 million with occupancy of 98.5% 4
Return of Capital to Shareholders $2.00 LVS Recurring Dividends per Share 1 Board of Directors increased recurring dividend by 40% to $1.40 per share for the 2013 calendar year ($0.35 per share payable quarterly) $1.40 $1.00 $1.00 The company remains committed to returning capital to shareholders via: $0.00 2012 2013 Total Capital Returned to Shareholders $ in millions FY2012 1Q13 Total LVS Dividends Paid 2 $ 3,085 $ 289 $ 3,374 SCL Dividends Paid 3 357 207 564 Total $ 3,442 $ 496 $ 3,938 Recurring quarterly dividend with a commitment to grow that dividend annually by at least a double digit percentage Consideration of a stock repurchase program 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. to public shareholders 2. Includes a $2.75/share special dividend paid in December 2012 totaling $2.3 billion 3. Reflects only the public (non-lvs) portion of dividends paid by Sands China 5
Strong Cash Flow and Balance Sheet Ample Liquidity for Future Growth Opportunities Trailing Twelve Months EBITDA $3.89 billion Trailing Twelve Months Dividends Paid $3.17 billion Cash Balance $2.39 billion Net Debt $7.44 billion Net Debt to TTM EBITDA 1.9 x Figures as of March 31, 2013 Sands China U.S. Corporate (US GAAP in $MM) Ltd. Singapore Operations 1 and Other Total Cash, Cash Equivalents and Restricted Cash $ 1,694.6 $ 220.7 $ 336.0 $ 135.2 $ 2,386.5 Debt $ 3,213.7 $ 3,705.0 $ 2,909.6 $ $ 9,828.3 Net Debt $ 1,519.1 $ 3,484.3 $ 2,573.6 $ (135.2) $ 7,441.8 Trailing Twelve Months Adjusted Property EBITDA $ 2,154.7 $ 1,290.5 $ 445.2 $ 0.8 $ 3,891.2 Gross Debt to Trailing Twelve Months EBITDA 1.5 x 2.9 x 6.5 x NM 2.5 x Net Debt to Trailing Twelve Months EBITDA 0.7 x 2.7 x 5.8 x NM 1.9 x Strong Balance Sheet and Cash Flow Maximize Financial Flexibility 1. U.S. Operations reflects the cash and debt levels at the U.S. Restricted Group (plus $71.9M in airplane and other financings) and adjusted property EBITDA from Las Vegas operations and Sands Bethlehem NOTE: The leverage ratios presented here do not reflect the effective leverage ratios as calculated under our respective credit agreements due to adjustments that are applied under each agreement 6
Strong First Quarter 2013 Financial Results Record Hold Adjusted EBITDA of $1.19 Billion $ in millions, except per share information 1Q12 1Q13 $ Change % Change Net Revenue $ 2,762.7 $ 3,302.7 $ 540.0 19.5% Adjusted Property EBITDA $ 1,066.5 $ 1,166.6 $ 100.1 9.4% Adj. Property EBITDA Margin 38.6% 35.3% (330) bps Adjusted Diluted EPS $ 0.70 $ 0.71 $ 0.01 1.4% Dividends per Common Share $ 0.25 $ 0.35 $ 0.10 40.0% Hold Adjusted Adjusted Property EBITDA $ 926.9 $ 1,188.5 $ 261.6 28.2% Hold Adjusted Adj. Property EBITDA Margin 35.8% 35.7% (10) bps Hold Adjusted Adj. Diluted EPS $ 0.56 $ 0.72 $ 0.16 28.6% 7
Record Macao Operating Performance Macao Property Operations Adjusted Property EBITDA and Adjusted Property EBITDA Margin ($MM) $700 60% $630.2 $630.2 $600 50% $500 $456.4 $416.7 40% $400 $300 32.1% 31.6% 30.7% 31.6% 30% $200 20% $100 10% $0 1Q12 1Q13 0% Adj. Prop. EBITDA Hold Adjusted Adj. Prop. EBITDA Adj. Prop. EBITDA Margin Hold Adjusted Adj. Prop. EBITDA Margin 8
Macao Gaming Performance Strong Growth and Increased Efficiency Across Property Portfolio Mass tables Mass table win up 62.5% to record $866.7 million Mass table efficiency up 26.6% to $10,204 win per table per day Increased mass table count by 29.8% to reach an average of 944 mass tables during the quarter Slots and ETGs Slot and ETG win up 34.8% to $148.9 million driven by 93.3% increase in ETG win to $39.9 million VIP gaming Rolling volume up 24.9% to record $41.15 billion VIP table efficiency steady at $880,000 roll per table per day Increased VIP table count by 27.0% to reach an average of 517 VIP tables during the quarter Strong Operating Momentum Across All Gaming Segments 9
Strong Growth in Macao Mass Table Business Growth and Productivity Gains in Macao s Most Important Segment ($MM) $900 $800 $700 $600 $500 $400 $300 Mass Table Revenue 1 Increased 63.2% Mass Table Win per Table per Day 2 $529.2 23.1% $577.2 24.3% $669.5 26.4% $767.4 27.2% $863.6 28.8% 40% 35% 30% 25% 20% 15% $12,000 $11,776 $10,000 $8,000 $6,000 $4,000 1Q13 Estimated Competitive Flagship Property Average 3 $8,063 $7,914 $8,699 $9,716 $10,204 $200 10% $2,000 $100 5% $0 0% 1Q12 2Q12 3Q12 4Q12 1Q13 Mass Table Win % of Macao Mass Table Revenue $0 Mass Tables 1Q12 2Q12 3Q12 4Q12 1Q13 727 801 823 861 944 ~ $1.4 Billion of Annual Departmental Profit at the 1Q13 Run Rate Source: Macao DICJ 1. LVS s mass table revenue as presented above reflects the Macao DICJ s presentation methodology, which includes live dealer ETG configurations within the mass table segment and Paiza cash revenue within the VIP segment. For financial reporting purposes, LVS presents a non rolling table segment (which includes Paiza cash and excludes all ETGs) and a slot segment (which includes all ETGs). 2. Excludes revenue from all ETGs 3. Consists of: City of Dreams, Galaxy Macau, Grand Lisboa, MGM Grand and Wynn Macau 10
Profitable Slot Business Continues to Grow Slot Revenue 1 Increased 26.9% Slot and ETG Win per Unit per Day ($MM) $160 $140 $143.2 $131.0 45% 40% $500 $459 $400 1Q13 Estimated Competitive Flagship Property Average 2 $120 $100 $80 $103.2 25.0% $110.9 $109.4 27.0% 27.8% 32.6% 28.7% 35% 30% 25% 20% $300 $200 $336 $313 $300 $299 $283 $60 15% $40 10% $100 $20 $0 1Q12 2Q12 3Q12 4Q12 1Q13 Slot Win % of Macao Market Slot Revenue 5% 0% $0 Slots & ETGs 1Q12 2Q12 3Q12 4Q12 1Q13 3,551 5,290 4,634 5,901 5,843 ~ $235 Million of Annual Departmental Profit at the 1Q13 Run Rate Source: Macao DICJ 1. LVS s slot revenue as presented above reflects the Macao DICJ s presentation methodology, which includes live dealer ETG configurations within the mass table segment. For financial reporting purposes, LVS presents a non-rolling table segment (which includes Paiza cash and excludes all ETGs) and a slot segment (which includes all ETGs). 2. Consists of: City of Dreams, Galaxy Macau, Grand Lisboa, MGM Grand and Wynn Macau 11
Robust Mass Growth Across our Property Portfolio All Cotai Strip Properties and Sands Macao Contributing to Growth Mass Table, Slot and ETG Win Per Day Cotai Strip Properties Peninsula Total ($MM) $12.0 $11.3 $9.0 $9.2 $7.1 $6.0 $4.5 $5.5 $5.1 $3.0 $3.0 $2.0 $2.1 $0.6 $0.7 $0.0 Venetian Macao Sands Cotai Central Plaza Casino (Four Seasons) Total Cotai Strip Sands Macao (Peninsula) Total Macao Ops 1Q12 Mass Win Per Day Increased 59.2% to $11.3 Million in 1Q13 Highest in Macao Market 1Q13 12
Our Macao Assets Have Delivered Consistent and Reliable Mass Market Growth ($MM) $1,200 Macao Market Mass Table and Slot Revenue $1,000 $911 $995 $800 $779 $600 $632 $688 $400 $365 $360 $374 $391 $421 $428 $462 $478 $490 $506 $546 $561 $200 $0 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 LVS SJM Wynn Galaxy MGM Melco Our Over $9 Billion of Invested Capital Has Delivered Strong and Steady Mass Revenue Growth Source: Company reports; Macao DICJ 13
VIP Business Exhibiting Strong Growth Gaining Market Share, Table Productivity Stable Rolling Volume Increased by 24.9% Consolidated Rolling Volume per Table per Day ($BN) ($MM) $45 $40 $35 $30 $32.9 $33.4 14.8% $36.0 15.5% $39.3 $41.2 17.2% 17.4% 20% 15% $1.40 $1.37 $1.20 $1.00 1Q13 Estimated Competitive Flagship Property Average 1 $0.92 $0.89 $0.88 $25 $20 12.6% 10% $0.80 $0.60 $0.72 $0.78 $15 $10 5% $0.40 $5 $0.20 $0 0% 1Q12 2Q12 3Q12 4Q12 1Q13 Rolling Volume % of Macao Market Rolling Volume $0.00 Rolling Tables 1Q12 2Q12 3Q12 4Q12 1Q13 407 511 500 465 517 > $550 Million of Annual Departmental Profit at Today s Run Rate 1. Consists of: City of Dreams, Galaxy Macau, StarWorld, Grand Lisboa, MGM Grand and Wynn Macau 14
Sands Cotai Central is Ramping Strong Growth in All Gaming Segments and Property Visitation Mass Table, Slot and ETG Win per Day Mass Table Win per Table per Day ($MM) $4.00 $3.00 $2.58 $3.01 $10,000 $8,000 $6,000 $4,759 $5,887 $6,613 $7,933 $2.00 $1.36 $1.56 $4,000 $1.00 $2,000 $0.00 2Q12¹ 3Q12 4Q12 1Q13 $0 2Q12¹ 3Q12 4Q12 1Q13 Mass Tables 217 207 316 313 VIP Rolling Volume per Table per Day ($MM) $1.00 $0.76 $0.80 $0.75 $0.58 $0.66 $0.50 $0.25 $0.00 2Q12¹ 3Q12 4Q12 1Q13 VIP Tables 145 149 146 190 50,000 40,000 30,000 20,000 10,000 0 Total Property Visitation per Day 33,556 37,969 22,556 16,757 2Q12¹ 3Q12 4Q12 1Q13 Additional Hotel Capacity and Non Gaming Amenities will Drive Future Growth in all Segments 1. The 2Q12 period reflects 81 days of operations beginning on April 11, 2012 15
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 Picture taken April 29, 2013 Currently Operational Future Phase Pedestrian Walkway Opened on December 20, 2012 and 2,100 New Rooms Opened On January 28, 2013 16
Expanding Our Asset Base on the Cotai Strip The Parisian Macao Under construction with piling currently underway Targeted completion date: Late 2015 Total cost of project: ~$2.7 billion Hotel rooms and suites: 3,000+ Gaming capacity: ~450 table games and 2,500 slots and ETGs Additional amenities including retail mall, replica Eiffel Tower, MICE space, diverse food & beverage options and entertainment Rendering of The Parisian Macao Map of Macao s Cotai Strip Galaxy Macau The Venetian Macao (Parcel 1) Four Seasons Hotel Macao and Plaza Casino (Parcel 2) Tropical Garden The Parisian (Parcel 3) C O T A I S T City of Dreams Phase III Conrad / Holiday Inn Sheraton Sheraton Towers Tropical Garden Sands Cotai Central Macau Int l Airport Lake and Nature Preserve Macau Studio City R I P Macau Dome LVS Operating Assets LVS Planned Development Third Party Operating Asset Third Party Future Development 17
Singapore VIP Strength, Mass Stable, Continued Growth in Hotel, MICE and Retail Hold adjusted adjusted property EBITDA was up 15.7% to $451.1 million (adjusted property EBITDA of $396.8 million) Gaming VIP volumes increased 42.2% to a record $18.21 billion in rolling volume (low hold of 2.51%) Mass table revenue grew 7.0% to $277.0 million ($260 million to $280 million per quarter over the last seven quarters) Slot revenue decreased 4.7% to $140.8 million ($135 million to $150 million per quarter over the last seven quarters) Strong hotel performance Hotel room revenue up 9.7% to $84.6 million with occupancy of 98.5% Strong retail performance Retail mall revenue up 6.7% to $36.8 million Our Focus in Singapore: 1. Increasing visitation to Singapore, which will drive growth at Marina Bay Sands 2. Identifying high value customers throughout the region and bringing them to MBS 18
Asian Retail Mall Revenue Increasing Steadily Trailing Twelve Months Retail Mall Revenue ($MM) $450 $400 $350 $300 $250 $200 $150 $340 $145 $71 $409 $395 $373 $360 $159 $156 $152 $149 $16 $24 $3 $7 $77 $79 $83 $83 $100 $50 $124 $130 $135 $140 $143 $0 1Q12 2Q12 3Q12 4Q12 1Q13 Venetian Macao Four Seasons Macao Sands Cotai Central¹ Marina Bay Sands Operating Profit Operating Profit Margin 1. Sands Cotai Central opened in April 2012 $279M $297M $309M $328M 82% 83% 83% 83% $341M 83% 19
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 Geographic Areas of Future Development Interest for Las Vegas Sands Macao The Parisian Macao Sands Cotai Central (Phase III) Japan South Korea Vietnam Singapore MBS Expansion North America South America Europe Madrid 20
Appendix
The Investment Case for Las Vegas Sands We are the global leader in Integrated Resort development and are delivering strong cash flow and earnings growth each quarter Our properties in Asia serve the most important growing consumer markets in the world Asia s middle class will grow from 500 million people today to 1.75 billion people by 2020 1 Our track record of success and convention based business model uniquely position us to secure the most promising future Integrated Resort development opportunities globally We are committed to maximizing returns to shareholders by increasing our return of capital through our recurring quarterly dividend Strong track record of execution, strong cash flow and balance sheet, and disciplined and experienced leadership team position us to deliver long term shareholder value 1. Source: Mahbubani 23
Historical Hold Adjusted Adj. Property EBITDA 1 $ in millions 1Q12 2Q12 3Q12 4Q12 1Q13 Macao Property Operations Reported $ 456.4 $ 429.0 $ 487.9 $ 622.2 $ 630.2 Hold Adjusted $ 416.7 $ 429.0 $ 487.9 $ 569.8 $ 630.2 Marina Bay Sands Reported $ 472.5 $ 330.4 $ 260.8 $ 302.5 $ 396.8 Hold Adjusted $ 389.9 $ 374.0 $ 372.1 $ 406.4 $ 451.1 Las Vegas Operations Reported $ 115.8 $ 64.4 $ 98.2 $ 52.8 $ 113.4 Hold Adjusted $ 98.7 $ 82.6 $ 60.1 $ 87.9 $ 82.7 Sands Bethlehem Reported $ 27.5 $ 26.9 $ 32.1 $ 27.5 $ 29.9 Hold Adjusted $ 27.3 $ 27.8 $ 29.8 $ 25.6 $ 28.2 LVS Consolidated 2 Reported $ 1,066.5 $ 844.7 $ 876.9 $ 1,003.0 $ 1,166.6 Hold Adjusted $ 926.9 $ 907.4 $ 947.7 $ 1,087.6 $ 1,188.5 1. This schedule presents hold-adjusted 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 in that segment 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 24
Capital Expenditures Expectations 1 Future Investments Include SCC, The Parisian Macao and Maintenance ($MM) com $2,000 LVS Capex Expectations $1,500 $1,508 $496 $1,449 $107 $1,305 $105 $1,510 $1,400 $1,000 $830 $340 $900 $950 $850 $500 $820 $360 $160 $400 $500 $0 Development Timeline Sands Cotai Central The Parisian Macao 2 $193 $472 $500 $450 $450 $450 $500 2011A 2012A 2013E 2014E 2015E 2016E 2017E Maintenance Sands Cotai Central The Parisian Macao² Other Developments Pre Opening Post Opening Future Capital Expenditures Focused on Growth in Asia 1. Includes capitalized interest 2. $2.7 billion project expected to be funded by approximately $700 million of equity and $2.0 billion in project financing. The timing of capex is subject to government approval. 25
Long Dated Maturity Profile Debt Maturity by Year at March 31, 2013 ($MM) $5,000 $4,500 $4,000 $3,500 $4,402 $1,384 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 $926 $1,742 $1,524 $187 $1,244 $630 $2,086 $1,169 $816 $1,185 $920 $89 $815 $148 $11 $200 2013 2014 2015 2016 2017 2018 2019 SCL MBS USRG LVSC % of Total <1% 16% 18% 45% 13% 8% <1% Long Term and Low Cost Financing in Place 26
Marina Bay Sands Operations First Quarter 2013 Details All time record hold adjusted adjusted property EBITDA of $451.1 million, an increase of 15.7% Adjusted property EBITDA of $396.8 million, a decrease of 16.0%, was unfavorably impacted by lower rolling win percentage of 2.51% Rolling volume increased 42.2% to record $18.21 billion in 1Q13 compared to $12.80 billion in 1Q12 Total mass (non rolling tables and slots) win per day increased 3.9% to $4.64 million Non Rolling win increased 7.0% to $277.0 million Slot win decreased 4.7% to $140.8 million Strong growth in non gaming amenities Hotel RevPAR increased 11.0% to $372 and room revenue increased 9.7% to $84.6 million Retail mall revenue increased 6.7% to $36.8 million ($MM) $500 $400 $300 $200 $100 $0 ($MM) $5.0 $4.0 $3.0 $2.0 $1.0 $0.0 Adjusted Property EBITDA and Adjusted Property EBITDA Margin $472.5 $451.1 $389.9 $396.8 55.7% 51.6% 52.7% 49.9% 1Q12 Adj. Prop. EBITDA Adj. Prop. EBITDA Margin $4.47 $4.64 $1.62 $1.56 $2.84 $3.08 1Q12 Non Rolling Tables 1Q13 Hold Adjusted Adj. Prop. EBITDA Hold Adjusted Adj. Prop. EBITDA Margin Non Rolling Table and Slot Win Per Day 1Q13 Slot Machines 60% 50% 40% 30% Strong growth in gaming and non gaming segments 27
Singapore Credit Collections Remain Healthy Reserve Balance Has Now Increased to 27.8% of Gross A/R ($MM) $450 $375 $300 $225 $150 $75 $0 ($MM) $1,200 $900 $600 $300 $0 $40.4 $70.2 $145.5 $208.3 $203.4 $285.0 0.0% 8.4% 9.6% Casino Credit Collections Remain Healthy $249.9 $271.1 $361.2 12.9% $509.6 $561.1 11.3% $345.2 14.6% $655.7 18.2% $780.1 19.8% $821.5 $895.5 23.4% $1,045.2 $1,086.6 26.8% 26.7% 27.8% 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 Gross Casino A/R Balance at End of Period $314.3 $418.1 Reserve Against A/R Balance $311.4 $317.0 $377.5 $367.8 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 Reserve Balance Has Increased to $302 Million as Accounts Receivable Balance Has Grown Quarterly Provision $0 $17M $10M $19M $11M $24M $37M $32M $40M $40M $38M $39M Write Offs $11M 40.0% 30.0% 20.0% 10.0% 0.0% Life to Date Provision of $318M Represents 8% of Rolling Win Since Opening of Property 28
Asian Property Portfolio Dominates EBITDA Generation Composition of 1Q13 Adjusted Property EBITDA Actual Results Hold Adjusted Results Las Vegas 10% Bethlehem 2% Las Vegas 7% Bethlehem 2% Singapore 34% Macao 54% Singapore 38% Macao 53% $1,166.6 Million $1,188.5 Million 29
Las Vegas Operations First Quarter 2013 Details On a hold adjusted basis, adjusted property EBITDA was $82.7 million, a decrease of 16.2% Adjusted property EBITDA was $113.4 million, a decrease of 2.1% Table games drop decreased 16.9% to $506.4 million, driven by a 27% decrease in baccarat drop Slot handle increased 2.3% to $495.1 million RevPAR increased 7.3% to $191 driven by increased hotel occupancy Venetian casino remodel complete Entertainment offerings featuring Broadway hit Rock of Ages and a series of performances by country stars Tim McGraw and Faith Hill Best opportunities for future growth: High end Asian gaming growth Increase in group room sales in 2013 ($MM) $125 ($MM) $700 $600 $500 $400 $300 $200 $100 $0 Adjusted Property EBITDA and Adjusted Property EBITDA Margin $115.8 $113.4 $98.7 30.1% 27.6% Adj. Prop. EBITDA Adj. Prop. EBITDA Margin $609 $233 $376 1Q12 Baccarat Hold Adjusted Adj. Prop. EBITDA Hold Adjusted Adj. Prop. EBITDA Margin Composition of Table Games Drop $506 $232 $274 1Q13 Non Baccarat Las Vegas is Stable... And We Are Investing in Our Properties for the Future $100 $75 $50 $25 $0 1Q12 27.0% 1Q13 $82.7 21.9% 40% 30% 20% 10% 30
Sands Bethlehem Operations First Quarter 2013 Details Hold adjusted adjusted property EBITDA was $28.2 million, an increase of 3.2% Adjusted property EBITDA increased 8.6% to $29.9 million Table games drop was $244.7 million, an increase of 21.4% Slot handle was flat at $1.03 billion ($MM) $35 $30 $25 $20 $15 $10 $5 $0 Adjusted Property EBITDA and Adjusted Property EBITDA Margin $27.5 1Q12 Adj. Prop. EBITDA $29.9 $27.3 $28.2 23.8% 24.3% 23.7% 23.3% 1Q13 Hold Adjusted Adj. Prop. EBITDA 40% 30% 20% 10% Retail outlet mall (150,000 SF) opened in November 2011 with 21 stores open featuring brands including Coach, Tommy Hilfiger, DKNY, Under Armour and Guess Event Center (50,000 SF) opened May 16, 2012 Headline events include Willie Nelson, The Beach Boys, Incubus, Glenn Frey, Crosby Stills and Nash, NBC Fight Night, and Diana Krall with average occupancy of 85% ($MM) $300 $200 $100 $0 Adj. Prop. EBITDA Margin Hold Adjusted Adj. Prop. EBITDA Margin Composition of Table Games Drop $245 $202 $134 $116 $85 $111 1Q12 1Q13 Baccarat Non Baccarat Table Games, Slots, Hotel and Event Center All Contributing to Growth 31
European Development Update In December 2012, the government of the region of Madrid passed legislation that outlined the regulatory framework to enable Integrated Resort development in the Madrid region While the development process is still in the early phases, the next steps include: 1 2 3 4 5 6 European Union, Local and National Governments to complete review of enabling legislation Madrid Government to conduct a competitive tender process Determination of specific development site Determination of size and scope of first phase of master plan Complete evaluation of financing options Acquisition of land for development Progress Towards a Resolution of the Current Economic Challenges within Europe will be an Important Consideration in the Development Process 32
Macao Market Background and Infrastructure Slides
VIP Gaming is 68% of Total Macao GGR but Mass Tables and Slots Generate ~65% of Gaming Operating Profit ($MM) $40,000 $35,000 $30,000 $25,000 LTM March 2013 Macao Market Gross Gaming Revenue $39,388 $26,960 1Q13 YoY Growth +15% +10% Composition of Macao Market Gross Gaming Revenue and Est. Gaming Operating Profit 2 100% 80% 60% 68% 35% $20,000 $15,000 $10,000 $5,000 $12,428 +28% 1 40% 20% 32% 65% $0 Gross Gaming Revenue 0% Gross Gaming Revenue Operating Profit Mass Tables and Slots VIP Gaming Mass Tables and Slots VIP Gaming Mass Gaming Generates 32% of the Gaming Revenue, but ~65% of the Gaming Operating Profit Source: Macao DICJ 1. The mass table segment grew 31% and the slot business grew 10% year-over-year 2. 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 34
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 75 80 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 2+ hours by bus to as short as 60 minutes Zhuhai station opened in Jan 2013 Future link to Macao Light Rail System Source: Union Gaming, LVS 35
Growth in Visitation from Deeper Within China is Happening Xinjiang 22M Tibet 6M Qinghai 6M Sichuan 81M 0.4% Yunnan 46M Gansu 26M Ningxia 6M Inner Mongolia 25M 0.4% Chongqing 29M 0.7% Guizhou 35M Shaanxi 38M 0.4% Guangxi 47M 0.8% 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 Shanxi 36M 0.6% Henan 94M 0.3% Hubei 58M 0.8% Hunan 66M 0.9% Beijing 21M 1.7% Hebei 58M 0.3% Shandong 97M 0.2% Anhui 59M 0.4% Jiangxi 45M 0.8% Guangdong 105M 7.6% Macao Fujian 37M 2.2% Zhejiang 54M 1.1% Hong Kong 7M 99.9% Taiwan 23M 4.7% Liaoning 44M 0.6% Jiangshu 79M 0.6% Heilongjiang 38M 0.6% Jilin 28M 0.6% Tianjin 14M 1.0% Shanghai 24M 2.2% Presentation of Data Province Population Penetration Rate Year Over Year Visitation Growth Less than 10% 10% 0% 0% 10% 10% 20% Greater than 20% Data Not Available 36
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 75 80 trains in each direction per day Guangzhou Zhuhai Intercity Rail 70 90 minute train ride (2+ hours by bus) 25 35 trains in each direction per day Final link to Gongbei border gate completed in January 2013 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 China Border Gate Expansion Daily capacity going from 150,000 to 350,000 people in 1H13 Will reduce average wait times on China side of border (2+ hours today) Hong Kong Population: 7M GDP Per Capita: US$34,000 Hengqin Island Special economic zone Nearly $20B of overall investment Over 10,000 hotel rooms First phase of Chimelong theme park to open in 2013 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 Hong Kong Macao Zhuhai Bridge (2016) Infrastructure Legend Existing Completed in 1Q13 Future 37
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% Growth 1% +22% +16% +10% (MM) (MM) 10.0 9.0 8.0 7.0 6.0 5.0 4.0 5.8 6.9 8.8 8.8 9.0 8.0 7.0 6.0 5.0 4.0 5.2 6.3 7.3 8.1 3.0 3.0 2.0 2.0 1.0 1.0 0.0 2009 2010 2011 2012 0.0 2009 2010 2011 2012 Source: Macao DSEC Additional Hotel Capacity and Transportation Infrastructure will Enhance Overnight Visitation Growth to Macao in the Future 38
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 (MM) 40.0 Macao 5% +20% +22% +5% Hong Kong +6% +26% +24% +24% 35.0 30.0 25.0 20.0 18.0 22.7 16.2 28.1 16.9 34.9 Hong Kong Received 18M More Visitors from China in 2012 than did Macao 15.0 11.0 13.2 10.0 5.0 0.0 2009 2010 2011 2012 Macao Hong Kong Robust Transportation Infrastructure, 74,000 Hotel Rooms and World Class Dining and Shopping Amenities Enabled 34.9 Million Mainland Chinese Visitors to Hong Kong in 2012 Source: Macao DSEC; Hong Kong Tourism Board 39
Market Leading Hotel Capacity at LVS Las Vegas Sands has 39% of Macao s 4/5 Star Hotel Inventory Macao Market Gaming Operator Hotel Rooms 1 10,000 9,000 8,000 7,000 6,000 5,000 9,354 Sands Macao, 289 Four Seasons Macao, 360 Venetian Macao 2,905 Hotel % of Gaming % of Total Gaming Operator Rooms Operators Market Las Vegas Sands ` 9,354 56% 39% Galaxy Entertainment 3,259 19% 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 16,730 100% 69% Other 4/5 Star 7,510 0% 31% Total 24,240 100% 100% 4,000 3,000 2,000 1,000 0 Sands Cotai Central 5,800 3,259 Starworld, 509 Grand Waldo, 550 Galaxy Macau 2,200 1,677 Altira Macau, 216 Melco Crown 1,461 1,014 839 Wynn Macau Sofitel Macau, 408 1,014 Grand Lisboa, 431 587 MGM Grand, 587 Las Vegas Sands Galaxy Entertainment Melco Crown Wynn Resorts SJM Holdings² MGM China LVS has more hotel rooms than the other five gaming operators combined 1. In addition to the hotel rooms that are owned by gaming operators presented here, there are 7,510 additional four and five star hotel rooms in Macao 2. Reflects only SJM Holdings self owned hotels Source: Company filings, Macao DSEC 40