Las Vegas Sands Corp. 4Q12 Financial Results · 4Q12 Financial Results January 30, 2013 . This...
Transcript of Las Vegas Sands Corp. 4Q12 Financial Results · 4Q12 Financial Results January 30, 2013 . This...
Las Vegas Sands Corp. 4Q12 Financial Results
January 30, 2013
This presentation contains forward-looking statements that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking 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.
Forward Looking Statements
2
Macao – Record adjusted property EBITDA of $622.2 million (+43.3%) driven by strong growth in all segments ($575.4 million, up 32.5%, on a hold-adjusted basis)
— Sands Cotai Central delivered strong growth in revenue and EBITDA in second full quarter of operations
Singapore – Adjusted property EBITDA of $302.5 million unfavorably impacted by low rolling win percentage (hold-adjusted adjusted property EBITDA was up 6.9% to $406.4 million)
— Strong VIP volume at $16.47 billion in roll (+53.0%); Stable mass table and slot businesses; Continued growth in hotel room, MICE and retail segments
U.S. Operations – Las Vegas remained stable and Sands Bethlehem continued to grow
$2.47 billion of capital returned to shareholders during the quarter
— Paid recurring dividend of $0.25 per share and special dividend of $2.75 per share
— Board increased recurring dividend by 40% to $0.35 per quarter ($1.40 per year) for calendar 2013
Fourth Quarter 2012 Highlights Strong Quarterly Results and Increased Return of Capital to Shareholders
3
Maximizing Return to Shareholders by: 1. Delivering strong growth in current markets 2. Increasing return of capital to shareholders 3. Pursuing promising growth opportunities around the world
NOTE: All comparisons in this presentation compare the fourth quarter 2012 against the fourth quarter 2011 unless otherwise specified
Macao – Record EBITDA driven by strong growth in all segments
— Rolling volume increased 37.1% to record $39.33 billion
— Mass table win increased 52.6% to record $769.6 million
— Slot and ETG win increased 54.7% to record $162.1 million
Strong future growth in Macao to be enhanced by:
— 2,100 additional Sheraton hotel rooms completed at Sands Cotai Central on January 28, 2013
— 200 additional gaming tables to be added in 1Q13
Singapore – Strong VIP volume at $16.47 billion in roll; Stable mass table and slot businesses; Continued growth in hotel room, MICE and retail segments
— Rolling volume increased 53.0% to $16.47 billion (second highest quarter in property history)
— Mass table and slot revenues stable
— Room revenue increased 10.2% to $84.2 million driven by growth in ADR
Macao – Outstanding Growth in all Gaming Segments Singapore – VIP Strong; Mass Stable; Hotel and Retail Growing
4
Macao53%
Singapore37%
Las Vegas
8%
Macao62%
Singapore30%
Las Vegas
5%
Composition of 4Q12 Adjusted Property EBITDA
Asian Property Portfolio Dominates EBITDA Generation
5
Bethlehem 3%
Bethlehem 2%
Actual Results Hold-Adjusted Results
$1,003.0 Million $1,093.2 Million
$1.00$1.40
$2.75
$3.75
$1.40
$0.00
$1.00
$2.00
$3.00
$4.00
2012 2013
Recurring Dividend Special Dividend
6
Returned Over $3 Billion of Cash in 2012 Annual Recurring Dividend Increased by 40% for 2013
Dividends per Share1 Total dividends of $3.75 per share paid in 2012
— $1.00 recurring dividend per share
— $2.75 special dividend per share
Total capital returned to shareholders of $3.09 billion in 2012
— Total capital returned of $3.44 billion in 2012 (including dividend payments to public shareholders of Sands China)
Board of Directors increased recurring dividend by 40% to $1.40 per share for the 2013 calendar year ($0.35 per share payable quarterly)
The Company remains committed to increasing the return of capital to shareholders
1. Excludes dividends paid by Sands China Ltd. to public shareholders
$ in millions, except per share information 4Q11 4Q12 $ Change % Change
Net Revenue 2,544.4$ 3,077.0$ 532.6$ 20.9%
Adjusted Property EBITDA 960.6$ 1,003.0$ 42.4$ 4.4%
Adj. Property EBITDA Margin 37.8% 32.6% (520) bps
Adjusted Diluted EPS 0.57$ 0.54$ (0.03)$ -5.3%
Dividends per Common Share1 -$ 3.00$ 3.00$ N/A
Hold-Adjusted Adjusted Property EBITDA 929.4$ 1,093.2$ 163.7$ 17.6%
Hold-Adjusted Adj. Property EBITDA Margin 37.0% 34.7% (230) bps
Hold-Adjusted Adj. Diluted EPS 0.54$ 0.63$ 0.09$ 16.7%
Strong Fourth Quarter 2012 Financial Results Record Hold-Adjusted EBITDA of $1.09 Billion
7 1. Consists of a recurring quarterly dividend of $0.25 per share and a special dividend of $2.75 per share
Figures as of December 31, 2012 Sands China U.S. Corporate(US GAAP in $MM) Ltd. Singapore Operations1 and Other Total
Cash, Cash Equivalents and Restricted Cash 1,952.9$ 275.0$ 183.5$ 107.8$ 2,519.2$
Debt 3,217.2$ 4,095.4$ 2,917.5$ -$ 10,230.1$
Net Debt 1,264.3$ 3,820.4$ 2,734.0$ (107.8)$ 7,710.9$
Trailing Twelve Months Adjusted Property EBITDA 1,978.9$ 1,366.2$ 445.2$ 0.7$ 3,791.1$
Gross Debt to Trailing Twelve Months EBITDA 1.6 x 3.0 x 6.6 x NM 2.7 x
Net Debt to Trailing Twelve Months EBITDA 0.6 x 2.8 x 6.1 x NM 2.0 x
Cash Balance – $ 2.52 billion
Trailing Twelve Months EBITDA – $3.79 billion
Net Debt – $7.71 billion
Dividends Paid in 2012 – $3.09 billion
Net Debt to TTM EBITDA – 2.0 x
Strong Cash Flow and Balance Sheet Ample Liquidity for Future Growth Opportunities
8 1. U.S. Operations reflects the cash and debt levels at the U.S. Restricted Group (plus $71.0M 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
Strong Balance Sheet and Cash Flow Maximize Financial Flexibility
$434.2
$622.2
$434.2
$575.4
33.4%32.0%
33.4%30.8%
0%
10%
20%
30%
40%
50%
60%
$0
$100
$200
$300
$400
$500
$600
$700
4Q11 4Q12
Record Macao Operating Performance
9
($MM)
Macao Property Operations Adjusted Property EBITDA and Adjusted Property EBITDA Margin
Adj. Prop. EBITDA
Adj. Prop. EBITDA Margin
Hold-Adjusted Adj. Prop. EBITDA
Hold-Adjusted Adj. Prop. EBITDA Margin
Mass tables
— Mass table win up 52.6% to record $769.6 million
— Mass table efficiency up 33.2% to $9,716 win per table per day
Slots and ETGs
— Slot and ETG win up 54.7% to record $162.1 million driven by 118.9% increase in ETG win to $40.1 million
VIP gaming
— Rolling volume up 37.1% to record $39.33 billion
— VIP table efficiency up 10.8% to $920,000 roll per table per day
Macao Gaming Performance Strong Growth and Increased Efficiency Across Property Portfolio
10 Strong Operating Momentum Across All Gaming Segments
$462.7
$529.2$577.2
$669.5
$767.4
21.6%23.1%
24.3%26.4% 27.2%
0%
5%
10%
15%
20%
25%
30%
35%
40%
$0
$100
$200
$300
$400
$500
$600
$700
$800
4Q11 1Q12 2Q12 3Q12 4Q12
Mass Table Win % of Macao Mass Table Revenue
$7,294$8,063 $7,914
$8,699$9,716
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
4Q11 1Q12 2Q12 3Q12 4Q12
Mass Table Revenue1 Increased 65.9%
Mass Table Win per Table per Day2
11
($MM)
751 Mass Tables 727 801 823 861
> $1.2 Billion of Annual Departmental Profit at Today’s Run-Rate Source: Macao DICJ 1. LVS’s mass table revenue 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, 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
3Q12 Non-SCL Flagship Property Average3
$10,291
Strong Growth in Macao Mass Table Business Growth and Productivity Gains in Macao’s Most Important Segment
$98.3$103.2
$110.9 $109.4
$143.2
25.9% 25.0%27.0% 27.8%
32.6%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
$0
$20
$40
$60
$80
$100
$120
$140
$160
4Q11 1Q12 2Q12 3Q12 4Q12
Slot Win % of Macao Market Slot Revenue
$333 $336$313 $300
$299
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
4Q11 1Q12 2Q12 3Q12 4Q12
Slot Revenue1 Increased 45.7%
Slot and ETG Win per Unit per Day
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($MM)
3,422 Slots & ETGs 3,616 5,290 4,634 5,901
~ $250 Million of Annual Departmental Profit at Today’s Run-Rate Source: Macao DICJ 1. LVS’s slot revenue reflects the Macao DICJ’s presentation methodology, which includes live dealer ETG configurations within the mass table segment. For financial reporting, 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
3Q12 Non-SCL Flagship Property Average2
$409
Profitable Slot Business Continues to Grow
$4.1
$0.6
$4.7
$1.9
$6.6
$4.7
$2.6
$0.8
$8.1
$2.0
$10.1
$0.0
$3.0
$6.0
$9.0
$12.0
Venetian Macao Sands CotaiCentral
Plaza Casino(Four Seasons)
Total Cotai Strip Sands Macao(Peninsula)
Total Macao Ops
4Q11 4Q12
Mass Table, Slot and ETG Win Per Day
($MM)
Robust Mass Growth Across our Property Portfolio All Cotai Strip Properties and Sands Macao Contributing to Growth
13 Mass Win Per Day Increased 54.5% to $10.2 Million in 4Q12 – Highest in Macao Market
Cotai Strip Properties Peninsula Total
$28.7
$32.9 $33.4
$36.0$39.3
13.3%12.6%
14.8%15.5%
17.2%
0%
5%
10%
15%
20%
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
4Q11 1Q12 2Q12 3Q12 4Q12
Rolling Volume % of Macao Market Rolling Volume
$0.83$0.89
$0.72
$0.78
$0.92
$0.00
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
$1.40
4Q11 1Q12 2Q12 3Q12 4Q12
Consolidated Rolling Volume per Table per Day
($MM)
14
Rolling Volume Increased by 36.9%
377 Rolling Tables 407 511 500 465
> $500 Million of Annual Departmental Profit at Today’s Run-Rate
3Q12 Non-SCL Flagship Property Average1 $1.24
1. Consists of: City of Dreams, Galaxy Macau, StarWorld, Grand Lisboa, MGM Grand and Wynn Macau
($BN)
VIP Business Exhibiting Strong Growth Gaining Market Share and Increasing Table Productivity
$4,759$5,887
$6,613
$0
$2,000
$4,000
$6,000
$8,000
2Q12¹ 3Q12 4Q12
$0.58$0.66
$0.76
$0.00
$0.25
$0.50
$0.75
$1.00
2Q12¹ 3Q12 4Q12
1,357
2,075
3,087
0
1,000
2,000
3,000
4,000
2Q12¹ 3Q12 4Q12
Sands Cotai Central is Ramping Strong Growth in Gaming Volumes and Visitation at Sands Cotai Central
15
VIP Rolling Volume Per Table Per Day
($MM)
($MM)
Mass Table, Slot and ETG Win Per Day
Walkover Bridge and Additional Hotel Capacity to Drive Future Growth 1. The 2Q12 period reflects 81 days of operations beginning on April 11, 2012
$1.36$1.56
$2.58
$0.00
$1.00
$2.00
$3.00
2Q12¹ 3Q12 4Q12
Mass Table Win per Table per Day
(000s)
Total Property Visitation
Mass Tables 217 207 316
VIP Tables 145 149 146
Sands Cotai Central Phase IIB is Now Completed 2,100 Additional Sheraton Rooms Opened January 28, 2013
16
Phase III Phase I Phase IIA Phase IIB
Picture taken January 30, 2013 Opened on January 28, 2013
Currently Operational
Future Phase
Walkover Bridge
Sands Cotai Central
Walkover Bridge Opened on December 20, 2012 and 2,100 New Rooms Opened On January 28, 2013
Expanding Our Asset Base on the Cotai Strip The Parisian Macao
17 LVS Operating Assets
LVS Planned Development
Third Party Operating Asset
The Parisian (Parcel 3)
Lake and Nature
Preserve
Tropical Garden
Sands Cotai
Central
The Venetian
Macao (Parcel 1)
Four Seasons Hotel Macao
and Plaza Casino
(Parcel 2)
Macau Dome
Macau Int’l
Airport
City of Dreams
Third Party Future Development
Galaxy Macau
Macau Studio City
St. Regis
Conrad / Holiday Inn
Sheraton Sheraton Towers
Rendering of The Parisian Macao
Map of Macao’s Cotai Strip
Site preparation work began in January 2013
Targeted completion date: Fourth Quarter 2015
Total cost of project: ~$2.7 billion
Hotel rooms and suites: 3,000+
Gaming capacity: 350 – 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
C
OT
A
I
S
T
R
I
P
Tropical Garden
Hold-adjusted EBITDA of $406.4 million (an increase of 6.8% from 4Q11)
Gaming
— VIP volumes strong at $16.47 billion in rolling volume (second highest quarter on record), but low hold of 2.14%
— Mass table revenue steady ($260 million to $280 million per quarter over the last six quarters)
— Slot revenue steady ($135 million to $150 million per quarter over the last six quarters)
— Future growth will come from increased visitation to Singapore
Strong hotel performance – Hotel room revenue up 10.2% to $84.2 million
Strong retail performance – Retail mall revenue up 11.6% to $44.7 million
Singapore – VIP Strength, Mass Stable, Continued Growth in Hotel, MICE and Retail
18
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
South Korea
Geographic Areas of Future Development Interest for Las Vegas Sands
Japan
Singapore MBS Expansion
Vietnam
Europe – Madrid
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
Disciplined Execution of Our Global Growth Strategy Development Opportunity Parameters
19
North America
Macao The Parisian Macao
Sands Cotai Central (Phase III)
South America
We are expanding our market-leading asset base in Macao, the world’s largest and most profitable gaming market
— We are delivering strong growth in every segment in Macao
— We have meaningful additional growth opportunities across our Macao portfolio (including through the 2,100 additional hotel rooms and 200 additional gaming tables that we have added across our Macao portfolio in January 2013)
Our track record of execution, strong cash flow and balance sheet, and disciplined and experienced leadership team position us to:
— Execute our strategy to deliver strong growth in our current markets
— Increase the return of capital to shareholders
— Increased recurring dividend by 40% to $0.35 per quarter, or $1.40 per year, for 2013
— Pursue promising development opportunities around the world
The Investment Case for Las Vegas Sands
20
Appendix
$ in millions 4Q11 1Q12 2Q12 3Q12 4Q12
Macao Property OperationsReported 434.2$ 456.4$ 429.0$ 487.9$ 622.2$ Hold-Adjusted 434.2$ 439.5$ 441.0$ 487.9$ 575.4$
Marina Bay SandsReported 426.9$ 472.5$ 330.4$ 260.8$ 302.5$ Hold-Adjusted 380.3$ 389.9$ 374.0$ 372.1$ 406.4$
Las Vegas OperationsReported 80.9$ 115.8$ 64.4$ 98.2$ 52.8$ Hold-Adjusted 96.1$ 98.7$ 82.6$ 60.1$ 87.9$
Sands BethlehemReported 22.5$ 27.5$ 26.9$ 32.1$ 27.5$ Hold-Adjusted 22.6$ 27.3$ 27.8$ 29.8$ 25.6$
LVS Consolidated2
Reported 960.6$ 1,066.5$ 844.7$ 876.9$ 1,003.0$ Hold-Adjusted 929.4$ 949.7$ 919.4$ 947.7$ 1,093.2$
Historical Hold-Adjusted Adj. Property EBITDA1
23
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 junket and/or premium direct 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
31%
56%
69%
44%
0%
20%
40%
60%
80%
100%
Gross Gaming Revenue Operating Profit
Mass Tables and Slots VIP Gaming
$11,674
$26,373
$38,047
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
Gross Gaming Revenue
Mass Tables and Slots VIP Gaming
2012 Macao Market Gross Gaming Revenue
VIP Gaming is 69% of Total Macao GGR… …but Mass Tables and Slots Generate ~56% of Gaming Operating Profit
($MM)
Composition of Macao Market Gross Gaming Revenue and Est. Gaming Operating Profit1
Source: Macao DICJ 1. This presentation reflects an assumed operating profit margin of 12.5% on gross VIP revenue and a blended margin of 36% on gross mass revenue (35% on mass table revenue and 45% on slot revenue)
Mass Gaming Generates 31% of the Gaming Revenue, but ~56% of the Gaming Operating Profit
24
4Q12 YoY Growth
+10%
+3%
+30%
5.8
6.9
8.8 8.8
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
10.0
2009 2010 2011 2012
5.2
6.3
7.3
8.1
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
2009 2010 2011 2012
Mainland China Day-Trip Visitors to Macao
Mainland China Overnight Visitors to Macao
While Day-Trip Visitation Growth to Macao has Slowed….Overnight Visitation has Continued to Expand
(MM)
Source: Macao DSEC 25
-9% +19% +28% 0%
(MM)
Growth -1% +22% +16% +10% Growth
Additional Hotel Capacity and Transportation Infrastructure will Enhance Overnight Visitation Growth to Macao in the Future
China’s High-Speed Rail Connecting More of Mainland China to Macao
Source: Union Gaming, LVS
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
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
26
Growth in Visitation from Deeper Within China is Happening…
27
Xinjiang 22M
Tibet 6M
Qinghai 6M
Sichuan 81M 0.4%
Chongqing 29M 0.7%
Henan 94M 0.3%
Hubei 58M 0.8%
Shanxi 36M 0.6%
Hebei 58M 0.3%
Shandong 97M 0.2%
Beijing 21M 1.7%
Liaoning 44M 0.6%
Jilin 28M 0.6%
Heilongjiang 38M 0.6%
Jiangshu 79M 0.6% Anhui
59M 0.4%
Hunan 66M 0.9%
Jiangxi 45M 0.8%
Zhejiang 54M 1.1%
Guangxi 47M 0.8%
Guizhou 35M
Yunnan 46M
Ningxia 6M
Shaanxi 38M 0.4%
Inner Mongolia
25M 0.4%
Gansu 26M
Guangdong 105M 7.6%
Fujian 37M 2.2%
Shanghai 24M 2.2%
Tianjin 14M 1.0%
Taiwan 23M 4.7%
Province Population
Penetration Rate
Year-Over-Year Visitation Growth
Less than -10% -10% - 0% 0% - 10%
10% - 20% Greater than 20%
Data Not Available
Presentation of Data
Hong Kong 7M
99.9% Macao
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
Meaningful Infrastructure Improvements Throughout the Pearl River Delta Region
Source: World Bank, China Daily, Chinatrainguide.com, Analyst reports. Note: population and GDP data from 2011 28
Guangzhou Population: 16M
GDP Per Capita: US$12,000
Macao Population: 0.6M
GDP Per Capita: US$66,000
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
Hong Kong Population: 7M
GDP Per Capita: US$34,000
Hong Kong-Macao-Zhuhai Bridge (2016)
Wuhan – Guangzhou High-Speed Rail • 3.5 hour train ride • 75-80 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)
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
Infrastructure Legend Existing
Future Completed in 1Q13
11.013.2
16.216.918.0
22.7
28.1
34.9
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
2009 2010 2011 2012Macao Hong Kong
Mainland China Visitation to Macao and Hong Kong
How Big Can Visitation to Macao Be? 34.9 Million Residents of Mainland China Visited Hong Kong in 2012
(MM)
Source: Macao DSEC; Hong Kong Tourism Board 29
-5% +20% +22% +5% Macao +6% Hong Kong +26% +24% +24%
Robust Transportation Infrastructure, 74,000 Hotel Rooms and Other Amenities Enabled 34.9 Million Mainland Chinese Visitors to Hong Kong in 2012
Hong Kong Received
18M More Visitors from China in 2012 than Macao
$3.02 $2.92
$1.63 $1.57
$4.64 $4.49
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
4Q11 4Q12
Non-Rolling Tables Slot Machines
Adj. Prop. EBITDA
Adj. Prop. EBITDA Margin
Hold-Adjusted Adj. Prop. EBITDA
Hold-Adjusted Adj. Prop. EBITDA Margin
Marina Bay Sands Operations Fourth Quarter 2012 Details
30
Non-Rolling Table and Slot Win Per Day
On a hold-adjusted basis, adjusted property EBITDA was $406.4 million (+6.9%)
Adjusted property EBITDA of $302.5 million, a decrease of 29.1%, was unfavorably impacted by:
— Lower rolling win percentage of 2.14%
— Increase in property taxes of $24.0 million
Rolling volume of $16.47 billion in 4Q12 (second highest in property history) compared to $10.76 billion in 4Q11
Total mass (non-rolling tables and slots) win per day decreased 3.2% to $4.49 million
— Non-Rolling win decreased 3.3% to $268.6 million
— Slot win decreased 3.5% to $144.3 million
Strong growth in non-gaming amenities
— Hotel RevPAR increased 10.0% to $362 and room revenue increased 10.2% to $84.2 million
— Retail mall revenue increased 11.6% to $44.7 million
($MM)
($MM)
Adjusted Property EBITDA and Adjusted Property EBITDA Margin
$426.9
$302.5
$380.3 $406.4
52.9%
42.2%
50.4%48.7%
30%
40%
50%
60%
$0
$100
$200
$300
$400
$500
4Q11 4Q12
$40.4
$145.5$203.4
$249.9 $271.1
$345.2 $314.3
$418.1
$311.4 $317.0$377.5
$0
$75
$150
$225
$300
$375
$450
2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12
$70.2$208.3
$285.0$361.2
$509.6 $561.1$655.7
$780.1$821.5 $895.5
$1,045.2
0.0%8.4% 9.6%
12.9% 11.3%14.6%
18.2% 19.8%23.4%
26.8% 26.7%
0.0%
10.0%
20.0%
30.0%
40.0%
$0
$200
$400
$600
$800
$1,000
$1,200
2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12Gross Casino A/R Balance at End of Period Reserve Against A/R Balance
Singapore – Credit Collections Remain Healthy Reserve Balance Has Now Increased to $280 Million
31
($MM)
Reserve Balance Has Increased to $280 Million as Accounts Receivable Balance Has Grown
($MM)
Casino Credit Collections Remain Healthy
$0 Quarterly Provision
$17M $24M $37M $32M $40M $40M $11M $19M $10M
Reserve Balance of $280M Represents 8% of Rolling Win Since Opening of Property
$38M
$331 $252
$201$208
$532$459
$0
$200
$400
$600
4Q11 4Q12Baccarat Non-Baccarat
Adj. Prop. EBITDA
Adj. Prop. EBITDA Margin
Hold-Adjusted Adj. Prop. EBITDA
Hold-Adjusted Adj. Prop. EBITDA Margin
Las Vegas Operations Fourth Quarter 2012 Details
32
Composition of Table Games Drop
Adjusted property EBITDA of $52.8 million, a decrease of 34.7%
— On a hold-adjusted basis, adjusted property EBITDA was $87.9 million (-8.5%)
Table games drop decreased 13.7% to $459.4 million, driven by a 23.9% decrease in baccarat drop
Slot handle decreased 0.7% to $517.3 million
Cash ADR increased 6.2% to $205
Venetian casino remodel complete
New entertainment offerings debuted in December 2012 featuring Broadway hit Rock of Ages and a series of performances by country stars Tim McGraw and Faith Hill
Best opportunities for future growth:
— Continued high-end Asian gaming growth
— Increase in group room sales in 2013
($MM)
($MM)
Adjusted Property EBITDA and Adjusted Property EBITDA Margin
Las Vegas is Stable. . . And We Are Investing in Our Properties for the Future
$80.9
$52.8
$96.1$87.9
23.8%
17.1%27.0%
25.4%
10%
20%
30%
40%
$0
$25
$50
$75
$100
4Q11 4Q12
$88 $108
$106$123
$194$231
$0
$50
$100
$150
$200
$250
4Q11 4Q12Baccarat Non-Baccarat
Adj. Prop. EBITDA
Adj. Prop. EBITDA Margin
Hold-Adjusted Adj. Prop. EBITDA
Hold-Adjusted Adj. Prop. EBITDA Margin
Sands Bethlehem Operations Fourth Quarter 2012 Details
33
Adjusted property EBITDA increased 22.2% to $27.5 million
Table games drop was $230.6 million, an increase of 19.0%
Slot handle increased 1.2% to $967.8 million
Retail outlet mall (150,000 SF) opened in November 2011
— 21 stores currently open, with an additional 9 stores to open in the future with brands including Coach, Tommy Hilfiger, DKNY, Under Armour and Guess
Event Center (50,000 SF) opened May 16, 2012
— Past headline events include The Beach Boys, Incubus, Glenn Frey, Crosby Stills and Nash, Jay Leno, NBC Fight Night, and Diana Krall with average occupancy of 85%
($MM)
($MM)
Adjusted Property EBITDA and Adjusted Property EBITDA Margin
Table Games, Slots, Hotel and Event Center All Contributing to Growth
Composition of Table Games Drop
$22.5$27.5
$22.6$25.6
21.4% 23.4%
21.5% 22.1%
10%
20%
30%
40%
$0
$5
$10
$15
$20
$25
$30
4Q11 4Q12
$193
$472 $500 $450 $450 $450 $500
$820
$830
$360
$140
$415$1,100
$830
$230
$496$107
$125
$1,508 $1,449 $1,400
$1,700
$1,300
$700
$500
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
2011A 2012A 2013E 2014E 2015E 2016E 2017E
Maintenance Sands Cotai Central The Parisian Macao² Other Developments
Capital Expenditures Expectations1
Future Investments Include SCC, The Parisian Macao and Maintenance com
Future Capital Expenditures Focused on Growth in Asia
($MM)
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.
Sands Cotai Central The Parisian Macao2
LVS Capex Expectations
Development Timeline Pre-Opening Post-Opening
34
$201
$923
$2,086
$151
$640
$942
$1,533
$829
$1,169
$187
$1,384
$98
$1,527$1,756
$4,417
$1,591
$830
$11$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
$5,000
2013 2014 2015 2016 2017 2018 2019
SCL MBS USRG LVSC
Long Dated Maturity Profile Debt Maturity by Year at December 31, 2012
Long Term and Low Cost Financing in Place
($MM)
<1% 15% 17% 16% % of Total 43% 8% <1%
35
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:
European Development Update
36
1
2
3
4
5
6
Progress Towards a Resolution of the Current Economic Challenges within Europe will be an Important Consideration in the Development Process
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