Las Vegas Sands Corp. 2Q13 Earnings Call Presentation July 24, 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
The Investment Case for Las Vegas Sands The global leader in Integrated Resort development, with growing free cash flow and earnings and a strong balance sheet Best positioned operator in Asia, with the pre eminent destination Integrated Resort properties in the world s fastest growing consumer markets Uniquely positioned to bring unmatched track record and powerful business model to the most promising Integrated Resort development opportunities globally Committed to maximizing returns to shareholders by continuing to increase return of capital through recurring dividend and stock repurchase programs The industry s best leadership team visionary, disciplined and experienced focused on driving long term shareholder value 3
Second Quarter 2013 Highlights Strong Quarterly Results and Increased Return of Capital to Shareholders Hold adjusted, adjusted diluted EPS increased 41.2% to $0.72 (adjusted diluted EPS increased 47.7% to $0.65) Consolidated hold adjusted, adjusted property EBITDA increased 29.0% to $1.17 billion (adjusted property EBITDA increased 31.0% to $1.11 billion) Macao Hold adjusted, adjusted property EBITDA and adjusted property EBITDA up 53.2% to record $657.2 million driven by strong growth in all segments Singapore Hold adjusted, adjusted property EBITDA up 5.9% to $396.2 million on strong VIP volume growth and steady mass business (adjusted property EBITDA increased 7.5% to $355.3 million) U.S. Operations Las Vegas operations and Sands Bethlehem showed growth LVS returned a total of $335.5 million to shareholders during the quarter $289.0 million ($0.35 per share) returned through dividends (an increase of 40%) $46.5 million returned through share repurchases Maximizing Return to Shareholders by: 1. Delivering strong growth in current markets 2. Using leadership position in IR development to pursue global growth opportunities 3. Increasing return of capital to shareholders NOTE: All comparisons in this presentation compare the second quarter 2013 against the second quarter 2012 unless otherwise specified 4
Macao Outstanding Growth in all Gaming Segments Singapore VIP Strong; Mass Table and Hotel Growing Macao Record EBITDA driven by strong growth in all segments Mass table win increased 61.1% to record $929.6 million Slot and ETG win increased 22.5% to $149.4 million Rolling volume increased 25.7% to record $41.94 billion Retail mall revenue increased 28.0% to $71.5 million Singapore Strong VIP volume growth; Steady mass table business; Continued growth in hotel room and MICE segments Rolling volume increased 24.9% to $14.37 billion Mass table revenue increased 1.8% to $272.4 million Room revenue increased 8.0% to $86.5 million with occupancy of 99.4% 5
Increasing Return of Capital to Shareholders $2.00 LVS Recurring Dividends per Share 1 The LVS 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 Year 6 Months Ended Ended $ in millions 12/31/2012 6/30/2013 Total LVS Dividends Paid 2 $ 3,085 $ 578 $ 3,663 LVS Shares Repurchased 47 47 Subtotal LVS $ 3,085 $ 625 $ 3,710 SCL Dividends Paid 3 357 411 768 Total $ 3,442 $ 1,036 $ 4,478 Recurring quarterly dividend programs at Las Vegas Sands and Sands China with a commitment to grow those dividends annually by at least a double digit percentage $2.0 billion Las Vegas Sands stock repurchase program authorized on June 5, 2013 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. 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 6
Strong Cash Flow, Balance Sheet and Liquidity Ample Flexibility for Future Growth Opportunities and Return of Capital Trailing Twelve Months EBITDA $4.15 billion Trailing Twelve Months LVS Dividends Paid $3.25 billion Trailing Twelve Months SCL Dividends Paid $411.4 million 1 Trailing Twelve Months LVS Stock Repurchases $46.5 million Cash Balance $2.52 billion Net Debt $6.97 billion Net Debt to TTM EBITDA 1.7x Figures as of June 30, 2013 Sands China U.S. Corporate (US GAAP in $MM) Ltd. Singapore Operations 2 and Other Total Cash, Cash Equivalents and Restricted Cash $ 1,644.0 $ 159.2 $ 379.1 $ 338.8 $ 2,521.1 Debt $ 3,216.9 $ 3,636.6 $ 2,637.9 $ $ 9,491.4 Net Debt $ 1,572.9 $ 3,477.4 $ 2,258.8 $ (338.8) $ 6,970.3 Trailing Twelve Months Adjusted Property EBITDA $ 2,386.7 $ 1,315.5 $ 450.5 $ 0.7 $ 4,153.4 3 Gross Debt to Trailing Twelve Months EBITDA 1.3 x 2.8 x 5.9 x NM 2.3 x 4 Net Debt to Trailing Twelve Months EBITDA 0.7 x 2.6 x 5.0 x NM 1.7 x Strong Balance Sheet and Cash Flow Maximize Financial Flexibility 1. Reflects only the public (non LVS) portion of dividends paid by Sands China 2. U.S. Operations includes the cash and debt levels at the U.S. Restricted Group (plus $69.2M in airplane and other financings) and adjusted property EBITDA from Las Vegas operations and Sands Bethlehem 3. The gross leverage ratio for covenant compliance purposes was 1.0x, reflecting the non public portion of dividends and royalty fees paid by SCL and Marina Bay Sands 4. The net leverage ratio for covenant compliance purposes was 0.9x, reflecting the non public portion of dividends and royalty fees paid by SCL and Marina Bay Sands 7
Strong Second Quarter 2013 Financial Results Solid Growth in Revenue, Adjusted Property EBITDA, Margin and EPS $ in millions, except per share information 2Q12 2Q13 $ Change % Change Net Revenue $ 2,581.9 $ 3,242.9 $ 661.0 25.6% Adjusted Property EBITDA $ 844.7 $ 1,106.9 $ 262.2 31.0% Adj. Property EBITDA Margin 32.7% 34.1% 140 bps Adjusted Diluted EPS $ 0.44 $ 0.65 $ 0.21 47.7% Dividends per Common Share $ 0.25 $ 0.35 $ 0.10 40.0% Hold Adjusted, Adjusted Property EBITDA $ 907.4 $ 1,170.9 $ 263.5 29.0% Hold Adjusted, Adj. Property EBITDA Margin 34.2% 35.3% 110 bps Hold Adjusted, Adj. Diluted EPS $ 0.51 $ 0.72 $ 0.21 41.2% 8
Record Macao Operating Performance Macao Property Operations Adjusted Property EBITDA and Adjusted Property EBITDA Margin Actual Hold Adjusted ($MM) $700 +53.2% $657.2 +53.2% $657.2 50% $600 45% 40% $500 $400 $429.0 29.5% 32.1% $429.0 29.5% 32.1% 35% 30% 25% $300 20% $200 15% $100 10% 5% $0 2Q12 2Q13 2Q12 2Q13 0% 9
Macao Gaming Performance Strong Growth and Increased Efficiency Across Macao Property Portfolio Mass tables Mass table win up 61.1% to record $929.6 million Mass table efficiency up 30.2% to $10,190 win per table per day Increased mass table count by 21.6% to reach an average of 1,003 mass tables during the quarter Slots and ETGs Slot and ETG win up 22.5% to $149.4 million driven by 46.7% increase in ETG win to $38.8 million VIP gaming Rolling volume up 25.7% to record $41.94 billion VIP table efficiency increased 26.2% to $880,000 roll per table per day VIP table count reached an average of 525 VIP tables during the quarter Strong Operating Momentum Across All Gaming Segments 10
Strong Growth in Macao Mass Table Business Growth and Productivity Gains in Macao s Most Important Segment Mass Table Revenue 1 Increased 59.5% Mass Table Win per Table per Day 2 ($MM) $1,000 $800 $600 $577.2 24.3% $669.5 26.4% $767.4 27.2% $863.6 28.8% $920.8 29.9% 40% 35% 30% 25% 20% $12,000 $10,000 $8,000 $6,000 $7,914 $8,699 $9,716 $10,204 $10,190 $400 15% $4,000 $200 10% $2,000 5% $0 0% 2Q12 3Q12 4Q12 1Q13 2Q13 Mass Table Win % of Macao Mass Table Revenue $0 Mass Tables 2Q12 3Q12 4Q12 1Q13 2Q13 801 823 861 944 1,003 ~ $1.5 Billion of Annual Departmental Profit at the 2Q13 Run Rate Source: Macao DICJ 1. LVS s mass table revenue as presented above reflects the Macao DICJ s presentation methodology, which includes live dealer ETG configurations within the mass table segment and Paiza cash revenue within the VIP segment. For financial reporting purposes, LVS presents a non rolling table segment (which includes Paiza cash and excludes all ETGs) and a slot segment (which includes all ETGs) 2. Excludes revenue from all ETGs 11
Our Macao Assets Have Delivered Consistent and Reliable Mass Market Growth Macao Market Mass Table and Slot Revenues ($MM) $1,200 $1,000 $911 $995 $1,052 $800 $779 $600 $400 $360 $374 $391 $421 $428 $462 $478 $490 $506 $546 $561 $632 $688 $200 $0 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 LVS SJM Wynn Galaxy MGM Melco Our Mass Table and Slot Revenues Have Grown 16 Quarters in a Row and Now Exceed $1.0 Billion per Quarter Source: Company reports; Macao DICJ 12
Robust Mass Growth Across our Property Portfolio Both Venetian Macao and Sands Cotai Central Growing Faster than the Market Mass Table, Slot and ETG Win Per Day Cotai Strip Properties Peninsula Total ($MM) $12.0 $11.9 $9.7 $9.0 $7.8 $6.0 $5.6 $6.0 $3.0 $0.0 $4.1 Venetian Macao $1.4 $3.5 Sands Cotai Central¹ $0.6 $0.6 Plaza Casino (Four Seasons) Total Cotai Strip $1.8 $2.1 Sands Macao (Peninsula) Total Macao Ops 2Q12 2Q13 Macao Portfolio Mass Win Per Day Increased 51.4% to $11.9 Million in 2Q13 The Macao Market Leader 1. Sands Cotai Central s 2Q12 period reflects 81 days of operations beginning on April 11, 2012 13
VIP Business Exhibiting Strong Growth Improving Market Share and Table Productivity Rolling Volume Increased 25.7% Consolidated Rolling Volume per Table per Day ($BN) ($MM) $45 $40 $35 $30 $33.4 14.8% $36.0 15.5% $39.3 $41.2 $41.9 17.2% 17.4% 17.4% 20% 15% $1.00 $0.80 $0.72 $0.78 $0.92 $0.88 $0.88 $25 $20 10% $0.60 $0.40 $15 $10 5% $0.20 $5 $0 0% 2Q12 3Q12 4Q12 1Q13 2Q13 Rolling Volume % of Macao Market Rolling Volume $0.00 Rolling Tables 2Q12 3Q12 4Q12 1Q13 2Q13 511 500 465 517 525 > $550 Million of Annual Departmental Profit at the 2Q13 Run Rate 14
Sands Cotai Central is Ramping Strong Growth in All Gaming Segments and Property Visitation ($MM) $4.00 $3.00 $2.00 $1.00 $0.00 Mass Table, Slot and ETG Win per Day $3.51 $3.01 $2.58 $1.36 $1.56 2Q12¹ 3Q12 4Q12 1Q13 2Q13 Mass Table Win per Table per Day $12,000 $9,616 $10,000 $7,933 $8,000 $6,613 $5,887 $6,000 $4,762 $4,000 $2,000 $0 2Q12¹ 3Q12 4Q12 1Q13 2Q13 Mass Tables 217 207 316 313 310 VIP Rolling Volume per Table per Day ($MM) $1.00 $0.76 $0.80 $0.79 $0.75 $0.58 $0.66 $0.50 $0.25 $0.00 2Q12¹ 3Q12 4Q12 1Q13 2Q13 VIP Tables 145 149 146 190 200 50,000 40,000 30,000 20,000 10,000 0 Total Property Visitation per Day 40,676 37,969 33,556 22,556 16,757 2Q12¹ 3Q12 4Q12 1Q13 2Q13 Increasing Hotel Occupancy 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
Expanding Our Critical Mass on the Cotai Strip The Parisian Macao The Parisian Macao will be a $2.7 billion themed, aspirational destination Integrated Resort Construction progressing with piling and podium and hotel tower substructure work underway Targeted completion date: Late 2015 Hotel 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 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 Macao (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 16
Singapore VIP Strength, Steady Mass, Continued Growth in Hotel and MICE Segments Hold adjusted, adjusted property EBITDA increased 5.9% to reach $396.2 million (adjusted property EBITDA of $355.3 million) Gaming VIP volumes increased 24.9% to $14.37 billion in rolling volume (low hold of 2.53%) Mass table revenue grew 1.8% to $272.4 million (between $260 million to $280 million in each of the past eight quarters) Slot revenue decreased 3.9% to $138.2 million (between $135 million to $150 million in each of the past eight quarters) Strong hotel performance Hotel room revenue up 8.0% to $86.5 million with occupancy of 99.4% Retail mall revenue decreased 4.3% to $35.8 million while mall repositioning and tenant remix towards high performing luxury brands is underway 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 17
Disciplined Execution of Our Global Growth Strategy LVS is the clear global leader in Integrated Resort development and operation and is uniquely positioned to bring its unmatched track record and powerful business model to the most promising Integrated Resort development opportunities globally 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) 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 18
Appendix
Historical Hold Adjusted, Adj. Property EBITDA 1 $ in millions 2Q12 3Q12 4Q12 1Q13 2Q13 Macao Property Operations Reported $ 429.0 $ 487.9 $ 622.2 $ 630.2 $ 657.2 Hold Adjusted $ 429.0 $ 487.9 $ 569.8 $ 630.2 $ 657.2 Marina Bay Sands Reported $ 330.4 $ 260.8 $ 302.5 $ 396.8 $ 355.3 Hold Adjusted $ 374.0 $ 372.1 $ 406.4 $ 451.1 $ 396.2 Las Vegas Operations Reported $ 64.4 $ 98.2 $ 52.8 $ 113.4 $ 63.0 Hold Adjusted $ 82.6 $ 60.1 $ 87.9 $ 82.7 $ 89.1 Sands Bethlehem Reported $ 26.9 $ 32.1 $ 27.5 $ 29.9 $ 33.6 Hold Adjusted $ 27.8 $ 29.8 $ 25.6 $ 28.2 $ 30.5 LVS Consolidated 2 Reported $ 844.7 $ 876.9 $ 1,003.0 $ 1,166.6 $ 1,106.9 Hold Adjusted $ 907.4 $ 947.7 $ 1,087.6 $ 1,188.5 $ 1,170.9 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 (principally CotaiJet operations) 21
Capital Expenditures Expectations Future Investments Include SCC, The Parisian Macao and Maintenance ($MM) $2,000 LVS Capex Expectations $1,500 $1,508 $496 $1,449 $107 $1,335 $160 $1,450 $1,425 $1,000 $830 $300 $850 $975 $900 $500 $820 $375 $150 $450 $500 $0 Development Timeline Sands Cotai Central The Parisian Macao 1 $193 $472 $500 $450 $450 $450 $500 2011A 2012A 2013E 2014E 2015E 2016E 2017E Maintenance Sands Cotai Central The Parisian Macao¹ Other Developments Pre Opening Post Opening Future Capital Expenditures Focused on Growth in Asia 1. The timing of capex is subject to the receipt of timely government approvals 22
Long Dated Maturity Profile Debt Maturity by Year at June 30, 2013 ($MM) $5,000 $4,500 $4,000 $3,500 $4,386 $1,384 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 $909 $1,731 $1,322 $187 $1,223 $618 $2,088 $802 $969 $1,164 $920 $800 $16 $145 $11 $200 2013 2014 2015 2016 2017 2018 2019 SCL MBS USRG LVSC % of Total <1% 14% 18% 46% 13% 8% <1% Long Term and Low Cost Financing in Place 23
Our Macao Properties Are Delivering Market Leading Visitation Total Visitation to LVS s Macao Properties (MM) 16.0 15.0 14.0 13.7 14.2 14.6 13.0 12.5 12.0 11.0 10.4 10.0 9.0 8.0 2Q12 3Q12 4Q12 1Q13 2Q13 Visitation to Our Macao Properties Has Expanded Over 40% in the Last Year to Reach 14.6 Million Visits in 2Q13 24
Profitable Macao Slot Business Continues to Grow ($MM) $180 Macao Slot Revenue 1 Increased 18.2% 45% $400 Macao Slot and ETG Win per Unit per Day $160 $140 $143.2 $131.0 $131.1 40% 35% $300 $313 $300 $299 $283 $285 $120 $100 $110.9 $109.4 27.0% 27.8% 32.6% 28.7% 30.0% 30% 25% $200 $80 20% $60 15% $100 $40 10% $20 $0 2Q12 3Q12 4Q12 1Q13 2Q13 Slot Win % of Macao Market Slot Revenue 5% 0% $0 Slots & ETGs 2Q12 3Q12 4Q12 1Q13 2Q13 4,290 4,634 5,901 5,843 5,757 ~ $235 Million of Annual Departmental Profit at the 2Q13 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) 25
Sands Cotai Central Phase IIB is Now Completed 2,100 Additional Sheraton Rooms Opened January 28, 2013 Sands Cotai Central Phase III Phase I Phase IIA Phase IIB Air Conditioned Pedestrian Walkway Currently Operational Future Phase Pedestrian Walkway Opened on December 20, 2012 and 2,100 Additional Rooms Opened On January 28, 2013 26
Marina Bay Sands Operations Second Quarter 2013 Details Hold adjusted, adjusted property EBITDA of $396.2 million, an increase of 5.9% Adjusted property EBITDA of $355.3 million, an increase of 7.5% Rolling volume increased 24.9% to $14.37 billion compared to $11.51 billion in 2Q12 ($MM) $500 $400 $300 $200 $100 Adjusted Property EBITDA and Adjusted Property EBITDA Margin $330.4 Actual $355.3 47.6% 48.1% Hold Adjusted $374.0 $396.2 50.3% 50.4% 60% 50% 40% Total mass (non rolling tables and slots) win per day was $4.51 million, a decrease of 0.2% $0 2Q12 2Q13 2Q12 2Q13 30% Non Rolling win increased 1.8% to $272.4 million Slot win decreased 3.9% to $138.2 million Strong growth in hotel RevPAR, which increased 8.3% to $377 while room revenue increased 8.0% to $86.5 million ($MM) $5.0 $4.0 $3.0 $2.0 $1.0 $0.0 Non Rolling Table and Slot Win Per Day $4.52 $4.51 $1.58 $1.52 $2.94 $2.99 2Q12 2Q13 Non Rolling Tables Slot Machines VIP Strong, Mass Stable, and Continued Growth in Hotel and MICE Segments 27
Singapore Credit Collections Remain Healthy Reserve Balance Has Now Increased to 30.3% of Gross A/R Casino Credit Collections Remain Healthy ($MM) $450 $375 $300 $225 $150 $75 $0 ($MM) $1,200 $900 $600 $300 $0 $40.4 $145.5 $203.4 $249.9 $271.1 $345.2 $314.3 $418.1 $311.4 $317.0 $377.5 $367.8 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 Reserve Balance Has Increased to $321 Million as Accounts Receivable Balance Has Grown Quarterly Provision $0 $70.2 $17M $10M $19M $11M $24M $37M $32M $40M $40M $208.3 $285.0 0.0% 8.4% 9.6% $361.2 12.9% $509.6 $561.1 11.3% 14.6% $655.7 18.2% $780.1 19.8% $407.8 $821.5 $895.5 $1,045.2 $1,086.6 $1,059.4 23.4% 26.8% 26.7% 27.8% 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 Gross Casino A/R Balance at End of Period Reserve Against A/R Balance $38M $39M Write Offs $11M Life to Date Provision of $378M Represents 8% of Rolling Win Since Opening of Property $37M $13M 30.3% 40.0% 30.0% 20.0% 10.0% 0.0% 28
Asian Retail Mall Revenue Increasing Steadily Trailing Twelve Months Retail Mall Revenue ($MM) $450 $400 $350 $300 $250 $200 $150 $409 $395 $373 $360 $159 $156 $152 $149 $16 $24 $7 $77 $79 $83 $83 $423 $157 $29 $87 $100 $50 $130 $135 $140 $143 $149 $0 2Q12 3Q12 4Q12 1Q13 2Q13 Venetian Macao Four Seasons Macao Sands Cotai Central¹ Marina Bay Sands Operating Profit Operating Profit Margin 1. Sands Cotai Central opened in April 2012 $297M $309M $328M $341M 83% 83% 83% 83% $355M 84% 29
Asian Property Portfolio Dominates EBITDA Generation Composition of 2Q13 Adjusted Property EBITDA Actual Results Hold Adjusted Results Las Vegas 6% Bethlehem 3% Las Vegas 8% Bethlehem 2% Singapore 32% Macao 59% Singapore 34% Macao 56% $1,106.9 Million $1,170.9 Million 30
Las Vegas Operations Second Quarter 2013 Details On a hold adjusted basis, adjusted property EBITDA was $89.1 million, an increase of 8.0% Adjusted Property EBITDA and Adjusted Property EBITDA Margin Adjusted property EBITDA was $63.0 million, a decrease of 2.2% Table games drop increased 26.9% to $551.3 million, driven by a 39.6% increase in baccarat drop Slot handle increased 6.8% to $475.4 million ($MM) $100 $80 $60 $40 $20 $64.4 $63.0 19.7% Actual 18.2% Hold Adjusted $82.6 $89.1 23.8% 23.8% 40% 30% 20% 10% RevPAR increased 6.8% to $188 driven by increased hotel occupancy Room revenue increased 6.9% to $120.6 million Best opportunities for future growth: High end Asian gaming growth Increase in group room sales in 2013 and 2014 $0 ($MM) $700 $600 $500 $400 $300 $200 $100 $0 2Q12 2Q13 2Q12 2Q13 Composition of Table Games Drop $435 $189 $245 2Q12 Baccarat $551 $209 $342 2Q13 Non Baccarat Las Vegas is Stable... And We Are Investing in Our Properties for the Future 0% 31
Sands Bethlehem Operations Second Quarter 2013 Details Hold adjusted, adjusted property EBITDA increased 9.5% to reach $30.5 million Adjusted property EBITDA increased 24.9% to record $33.6 million Table games drop increased 18.5% to reach $258.9 million ($MM) $40 $30 $20 Adjusted Property EBITDA and Adjusted Property EBITDA Margin $26.9 23.4% Actual $33.6 26.5% Hold Adjusted $27.8 $30.5 23.9% 24.8% 40% 30% 20% Slot handle increased 4.2% to $1.06 billion Retail outlet mall (150,000 SF) featuring 23 stores including Coach, Tommy Hilfiger, DKNY and recently opened European Body Concepts Day Spa Event Center (50,000 SF) 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% $10 $0 ($MM) $300 $200 $100 $0 2Q12 2Q13 2Q12 2Q13 Composition of Table Games Drop $218 $118 $259 $138 $100 $121 2Q12 Baccarat 2Q13 Non Baccarat 10% 0% Table Games, Slots, Hotel and Event Center All Contributing to Growth 32
European Development Update In December 2012, the government of the region of Madrid passed legislation that outlined the regulatory framework to enable Integrated Resort development in the Madrid region The next steps in the development process include: 1 2 3 4 5 6 Local, Regional and National Governments to complete enabling legislation and secure approval by EU as required Madrid Government to conduct a competitive tender process Determination of specific development site Determination of size and scope of first phase of master plan Complete evaluation of financing options Acquisition of land for development Any Investment Would be Subject to the Receipt of Government Approvals and the Finalization of a Grants and Incentives Package that Would Enable Investment, as well as Success in a Competitive Tender Process 33
Macao Market Background and Infrastructure Slides
VIP Gaming is 68% of Total Macao GGR but Mass Tables and Slots Generate ~65% of Gaming Operating Profit ($MM) $45,000 $40,000 $35,000 LTM June 2013 Macao Market Gross Gaming Revenue $40,915 2Q13 YoY Growth +16% Composition of Macao Market Gross Gaming Revenue and Est. Gaming Operating Profit 2 100% 80% 35% $30,000 $25,000 $20,000 $15,000 $27,757 +11% 60% 40% 68% ~2X 65% $10,000 $5,000 $13,159 +27% 1 20% 32% $0 Gross Gaming Revenue 0% Gross Gaming Revenue Operating Profit Mass Tables and Slots VIP Gaming Mass Tables and Slots VIP Gaming Mass Gaming Generates 32% of the Gaming Revenue, but ~65% of the Gaming Operating Profit Source: Macao DICJ 1. The mass table segment grew 30% and the slot business grew 6% year-over-year 2. This presentation reflects an assumed operating profit margin of 10.0% on gross VIP revenue and a blended margin of 40% on mass table and slot gross revenue 35
Strong and Consistent Growth in Macao s High Margin Mass Market ($MM) $14,000 Macao Mass Table and Slot Gross Gaming Revenue $13,159 60% $12,000 $11,674 50% $10,000 $8,000 $6,000 $4,000 $2,000 $2,084 16% $2,409 39% $3,355 30% $4,358 $4,952 14% 33% $6,587 $8,949 36% 30% 28% 40% 30% 20% 10% $0 2005 2006 2007 2008 2009 2010 2011 2012 LTM 6/30/13 Mass Table and Slot GGR Year over Year Growth 0% Macao s Mass Table and Slot Revenue has Grown by at Least 27% in each of the Last 15 Quarters Source: Macao DICJ 36
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 37
Growth in Visitation from Deeper Within China is Happening Year Over Year Visitation Growth Mainland China Visitation to Macao Twelve Months Ended June 30, Population Penetration Province 2012 2013 % Change (MM) Rate (LTM) Guangdong 8,295,741 7,937,614 4% 104 7.6% Fujian 931,500 784,851 16% 37 2.1% Zhejiang 603,219 631,603 +5% 54 1.2% Hunan 584,318 600,880 +3% 66 0.9% Shanghai 487,537 540,647 +11% 23 2.3% Jiangsu 460,943 510,863 +11% 79 0.6% Sichuan 316,684 369,432 +17% 80 0.5% Beijing 328,157 343,710 +5% 20 1.8% Henan 295,447 356,168 +21% 94 0.4% Tianjin 120,615 124,302 +3% 13 1.0% All Other Provinces 4,374,712 5,497,569 +26% 784 0.7% Less than 10% 10% 0% 0% 10% 10% 20% Greater than 20% Data Not Available Total China 16,798,873 17,697,639 +5% 1,354 1.3% 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 38
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 2H13 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 area Over $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 39
While Day Trip Visitation Growth to Macao has Slowed.Overnight Visitation has Continued to Expand Mainland China Day Trip Visitors to Macao Mainland China Overnight Visitors to Macao Growth 9% +19% +28% 0% +1% 1 Growth 1% +22% +16% +10% +10% 0 1 (MM) (MM) 10.0 9.0 8.0 7.0 6.0 5.0 4.0 3.0 5.8 6.9 8.8 8.8 9.2 9.0 8.0 7.0 6.0 5.0 4.0 3.0 5.2 6.3 7.3 8.1 8.5 2.0 2.0 1.0 1.0 0.0 2009 2010 2011 2012 LTM June 2013 Source: Macao DSEC 1. Reflects the growth compared to the twelve month period ended June 30, 2012 0.0 2009 2010 2011 2012 LTM June 2013 Additional Hotel Capacity and Transportation Infrastructure will Enhance Overnight Visitation Growth to Macao in the Future 40
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 41
Hengqin Island to Support Macao s Long Term Growth and Diversification Map of Hengqin Island New Area Important Facts Sources: Macau Daily, Zhuhai Daily, Chimelong Group, Hengqin New Area Administrative Committee 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 Designed to contribute to the diversification of Macao Hengqin s central business district will feature a 2.5 million square foot convention center More than 10,000 hotel rooms expected to open over the next five years Phase one of the US$3 billion Chimelong International Ocean Resort is expected to open in September 2013 Phase one will feature 1,888 hotel rooms and an outdoor theme park containing the world s longest roller coaster and largest Ferris wheel At completion, the resort is expected to attract 20 million visitors per year 42
Market Leading Hotel Capacity at LVS Las Vegas Sands Operates 39% of Macao s Current 4/5 Star Hotel Inventory Macao Market Gaming Operator Hotel Rooms 1 10,000 9,000 8,000 7,000 6,000 5,000 9,277 Sands Macao, 289 The Venetian Macao 2,905 Four Seasons Macao, 360 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 5,723 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 developed 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 43
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, 2017 1 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 12,377 The Parisian Macao 3,100 Sands Macao, 289 The Venetian Macao 2,905 Sands Cotai Central 5,723 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 ` 12,454 44% 35% Galaxy Entertainment 4,559 16% 13% Melco Crown 3,677 13% 10% Wynn Resorts 3,014 11% 8% SJM Holdings² 2,339 8% 7% MGM China 2,187 8% 6% Subtotal Gaming Operators 28,230 100% 78% Other 4/5 Star 7,746 0% 22% Total 35,976 100% 100% 3,014 Wynn Cotai 2,000 Wynn Macau, 1,014 2,339 2,187 SJM Cotai 1,500 Sofitel Macau, 408 Grand Lisboa, 431 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 7,746 additional four and five star hotel rooms in Macao 2. Reflects only SJM Holdings self owned hotels Source: Company filings, DSEC 44