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The Venetian Macao Marina Bay Sands, Singapore
Sands Macao Four Seasons Macao Sands Bethlehem The Venetian Las Vegas The Palazzo Las Vegas
3Q14 Earnings Call Presentation
October 15,
2014
The Parisian, Macao(Targeted to open late 2015)Sands Cotai Central, Macao
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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
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The global leader in Integrated Resort development and operation, delivering strong cash
flow, earnings and growing recurring dividends
Best positioned operator to deliver growth in Asia, with the pre‐eminent destination
Integrated Resort
properties
in
the
world’s
largest
and
most
lucrative
consumer
markets
Uniquely positioned to bring unmatched track record, powerful convention‐based business
model and the industry’s strongest balance sheet to the world’s most promising Integrated
Resort development opportunities
Committed to maximizing shareholder returns by delivering growth while continuing to
increase the return of capital through recurring dividend and stock repurchase programs
The
industry’s
most
experienced
leadership
team:
visionary,
disciplined
and
dedicated todriving long‐term shareholder value
The Investment Case for Las Vegas Sands
3
Maximizing Return to Shareholders by:1. Delivering growth in current markets 2. Using leadership position in convention‐based Integrated Resort development and
operation to pursue global growth opportunities3. Increasing return of capital to shareholders
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Adjusted diluted EPS increased 2.4% to $0.84 per share
Consolidated adjusted property EBITDA up 0.6% to $1.28 billion
Macao – Adjusted property
EBITDA
increased
3.2%
to
$809.0
million,
reflecting
mass
gaming
and
non‐gaming growth but a challenging VIP environment
Marina Bay Sands – Adjusted property EBITDA decreased 5.9% to $351.7 million reflecting record
mass and non‐gaming results but a challenging VIP environment
LVS returned a total of $701.0 million to shareholders during the quarter
— $401.2 million ($0.50 per share) returned through recurring dividend
— $299.8 million returned through share repurchases
LVS Board increases capital return to shareholders by:
— Increasing recurring dividend for the 2015 calendar year by 30% to $2.60 per share
— Authorizing additional
$2.0
billion
for
share
repurchase
program
Third Quarter 2014 HighlightsSteady Operating Quarter with Increasing Returns of Capital to Shareholders
4NOTE: All comparisons in this presentation compare the third quarter 2014 against the third quarter 2013 unless otherwise specified.
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$ in millions, except per share information 3Q13 3Q14 $ Change % Change
Net Revenue 3,568.5$ 3,533.1$ (35.4)$ ‐1.0%
Adjusted Property EBITDA 1,275.8$ 1,283.9$ 8.1$ 0.6%
Adjusted Property EBITDA Margin 35.8% 36.3% 50 bps
Adjusted Diluted
EPS 0.82$
0.84$
0.02$
2.4%
Dividends per Common Share 0.35$ 0.50$ 0.15$ 42.9%
Hold‐Normalized Adjusted Property EBITDA 1,250.3$ 1,255.1$ 4.8$ 0.4%
Hold‐Normalized Adj. Property EBITDA Margin 35.3% 36.4% 110 bps
Hold‐
Normalized
Adjusted
Diluted
EPS 0.79$
0.81$
0.02$
2.5%
Third Quarter 2014 Financial Results
5
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Macao – Steady EBITDA with growth in mass and retail offset by contracting VIP business
— Mass table win increased 14.8% to $1.22 billion
— Slot and
ETG
win
increased
6.0%
to
$175.9
million
— Retail mall revenue increased 17.5% to $105.0 million
— Rolling win decreased 21.9% to $1.02 billion
Singapore – Record mass business; Growth in retail and mass offset by contracting VIP business
— Mass table and slot win increased 6.6% to $443.8 million (MBS delivered a property record $4.82
million win per day)
— Room revenue increased 8.9% to $101.6 million with ADR of $468, occupancy of 99.4% and RevPAR
of $465
— Mall revenue increased 17.9% to $44.8 million
— Rolling win
decreased
38.6%
to
$241.2
million
Macao – Growth in Mass Segments; VIP Challenging
Singapore – Growth in Mass Segments; VIP Challenging
Segments
6
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Year Year Nine Months
Ended Ended Ended
$ in millions 12/31/2012 12/31/2013 9/30/2014 Total
LVS Dividends Paid1
823$ 1,153$ 1,210$ 3,186$
LVS Special Dividend Paid 2,262 ‐ ‐ 2,262
LVS Shares Repurchased ‐ 570 1,430 2,000
Subtotal LVS 3,085$ 1,723$ 2,640$ 7,448$
SCL Dividends Paid2
357 411 777 1,545
Total 3,442$ 2,134$ 3,417$ 8,993$
$1.00
$1.40
$2.00
$2.60
$0.00
$0.50
$1.00
$1.50$2.00
$2.50
$3.00
2012 2013 2014 2015
7
Increasing Return of Capital to ShareholdersNearly $9.0 Billion of Capital Returned to Shareholders Over Last 11 Quarters
LVS Recurring Dividends per Share1 The LVS Board of Directors increased the LVS
recurring dividend by 30.0% to $2.60 per share for
the 2015 calendar year ($0.65 per share payable
quarterly)
The LVS
Board
of
Directors
also
authorized
an
additional $2.0 billion stock repurchase program
following the completion of the previous $2.0 billion
program
The company remains committed to returning
capital to shareholders via:
— Recurring quarterly dividend program at Las
Vegas Sands with a commitment to grow the
recurring dividend by at least 10% annually
— $2.0 billion Las Vegas Sands stock repurchase
program with
a commitment
to
purchase
at
least $75 million of stock each month
— Special dividends
1. Excludes dividends paid by Sands China Ltd. and excludes the $2.75 per share special dividend paid in December 2012.2. Reflects only the public (non-LVS) portion of dividends paid by Sands China Ltd. (total SCL dividends paid since 2011 of $5.18 billion).
The Company Remains Committed to Returning Capital to Shareholders While Maintaining a
Strong Balance
Sheet
and
the
Financial
Flexibility
to
Pursue
New
Development
Opportunities
Total Capital Returned to Shareholders
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4.4%
2.3%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
5.0%
5.5%
LVS S&P500
5.2%
4.4% 4.3%
3.7%
3.3%
2.9%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
5.0%
5.5%
$50.00 $59.61 $60.00 $70.00 $80.00 $90.00
LVS Generates Greater Forward Dividend Yield
than the S&P500 Index
2015 Forward Dividend
Yield of LVS and S&P5001
1. Reflects the 2015 dividend yield for LVS and the Bloomberg 2015 forward dividend yield estimate for the S&P500 on October 14, 2014.2. Reflects the 2015 forward LVS dividend ($2.60) over the closing price for LVS on October 14, 2014.
LVS’s 2015
Dividend
Yield
of
4.4%
Reflects
a 210
bps
Premium Above the S&P500 Forward Dividend Yield Estimates
Sensitivity of LVS Dividend Yield
Dividend
Yield as
of
10/14/14²
+210 bps
8
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Figures as of September 30, 2014 Sands China U.S. Corporate
(US GAAP in $MM) Ltd. Singapore Operations2 and Other Total
Cash, Cash
Equivalents
and
Restricted
Cash 2,188.4$
429.6$
376.9$
158.7$
3,153.6$
Debt 3,212.9$ 3,610.5$ 3,115.2$ ‐$ 9,938.6$
Net Debt 1,024.5$ 3,180.9$ 2,738.3$ (158.7)$ 6,785.0$
Trailing Twelve
Months
Adjusted
Property
EBITDA 3,388.0$
1,463.4$
438.8$
‐$
5,290.2$
Gross Debt to Trailing Twelve Months EBITDA 0.9 x 2.5 x 7.1 x NM 1.9 x
Net Debt to Trailing Twelve Months EBITDA 0.3 x 2.2 x 6.2 x NM 1.3 x
At September 30, 2014:
Trailing Twelve Months EBITDA – $5.29 billion
Trailing Twelve Months LVS Dividends Paid – $1.50 billion
Trailing Twelve Months SCL Dividends Paid – $776.6 million1
Trailing Twelve Months LVS Stock Repurchases – $1.65 billion
Cash Balance
– $3.15
billion
Net Debt – $6.79 billion
Net Debt to TTM EBITDA – 1.3x
Strong Cash Flow, Balance Sheet and LiquidityFlexibility for Future Growth Opportunities and Increasing Return of Capital
9
1. Reflects only the public (non‐LVS) portion of dividends paid by Sands China Ltd. Total TTM dividends paid by Sands China Ltd. were $2.60 billion.
2. U.S. Operations includes the cash and debt at the U.S. Restricted Group (plus $64.6M in airplane and other financings) and adjusted property EBITDA from Las Vegas operations and Sands Bethlehem.
3. The net leverage ratio for covenant compliance purposes, which includes the dividends and royalty fees paid by Sands China Ltd. and Marina Bay Sands to the U.S. Operations, was 0.9x.
Strong
Balance
Sheet
and
Cash
Flow
Maximize
Financial
Flexibility
3
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$784.3 $809.0
$784.3 $772.1
34.0% 35.1%
34.0% 35.0%
0%
10%
20%
30%
40%
50%
60%
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
3Q13 3Q14 3Q13 3Q14
Macao Operating PerformanceGrowing Mass Business Offset by Contracting VIP Segment
10
($MM)
Macao Property Operations Adjusted Property EBITDA and Adjusted Property EBITDA Margin
Actual Hold‐Normalized
‐1.6%+3.2%
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Mass tables
— Mass table win up 14.8% to $1.22 billion compared to 16.3% growth for the Macao market
— Mass table efficiency up 5.1% to $11,518 win per table per day (reflecting an increase of 97 mass
tables compared
to
the
same
quarter
last
year)
— Mass table count increased by 9.3% to reach an average of 1,150 mass tables during the quarter
Slots and ETGs
— Slot and ETG win up 6.0% to $175.9 million driven by increased slot play at Sands Cotai Central
VIP gaming
— Rolling win down 21.9% to $1.02 billion compared to a decrease of 19.0% for the Macao market
— VIP table efficiency decreased 1.6% to $29,893 win per VIP table per day
— VIP table count decreased by 20.8% to an average of 370 VIP tables during the quarter
Macao Gaming PerformanceGrowth and Increased Efficiency Across Macao Mass Property Portfolio
11
Our
Macao
Growth
Strategy
Focuses
on
Mass
Market
Segments
including
Tables, Slots and ETGs ‐‐ and Non‐gaming Offerings including Hotel, Retail and Entertainment
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$2,084 $2,409$3,355
$4,358 $4,952
$6,587
$8,949
$11,674
$15,309
$18,115
$3,928 $4,520
16%
39%
30%
14%
33%36%
30% 31%28%
0%
10%
20%
30%
40%
50%
60%
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
$18,000
$20,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 TTM
3Q14
3Q13 3Q14¹
Mass Table and Slot GGR Year‐over‐Year Growth
Continued Growth in Macao’s High Margin
Mass Market
12
Macao Mass Table and Slot Gross Gaming Revenue
($MM)
Source: Macao DICJ1. In 3Q14, Macao market mass table and slot revenue grew at 15% (16% mass table growth and 5% slot growth).
Macao’s Mass Table and Slot Revenue Growth at
TTM September 30, 2014 was 28% (31% Mass Table Growth and 6% Slot Growth)
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$3,579
$4,670
$6,123
$7,246 $2,446
$2,637
$2,985
$2,897
$6,025
$7,307
$9,108
$10,143
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
2011 2012 2013 TTM 3Q14
Mass Tables, Slots and ETGs VIP Tables
Macao Market VIP and Mass Gaming Estimated Operating Profit ¹
The Mass Business is the Principal Profit Pool and
the Primary Driver of Earnings Growth in Macao
($MM)
Source: Macao DICJ1. 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.
― The
VIP
Business
Now
Generates
Approximately
$450
Million
in
Incremental
Operating
Profit
― The Mass Business Now Generates Approximately $3.7 Billion in Incremental Operating Profit
13
(59%)
(64%)
(67%)
(71%)(41%)
(36%)
(33%)
(29%)
(XX%) = % of totaloperating profit for period
Since 2011:
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Mass Tables
50%
Slots 9%
Hotel 11%
Mall 8%
Other 2%
VIP 20%
Mass Tables
53%
Slots 8%
Hotel 13%
Mall 8%
Other 2%VIP 16%
TTM 3Q131
Macao: Diversified and Stable Sources of
Departmental Profit For Las Vegas Sands and Sands China
14
Mass
Tables
/
Slots
and
Non‐
Gaming
Generated
84%
of
Macao’s
Departmental
Profit
in the TTM Period Ending 3Q14 vs. 80% in the TTM Period Ending 3Q13
Macao Departmental Profit Contribution by Segment
TTM 3Q14¹
1. Represents departmental profit by segment (before unallocated expenses) for the respective TTM periods ending September 30, 2013 and 2014.
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450.7
529.9
769.7
927.0
679.2
812.5
10.9% 10.9%11.8%
10.4% 10.6% 10.9%
0%
5%
10%
15%
20%
25%
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
2010 2011 2012 2013 9 Months
Ended
9/30/2013
9 Months
Ended
9/30/2014
Labor Expense Labor Expense as a % of Net Revenue
Labor Costs in MacaoWhile Costs Have Increased, They Are Relatively Stable as a % of Net Revenue
15
SCL Historical Labor Expense
($MM)
Opening ofSands Cotai
Central
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Executing Our Mass Strategy in Macao
Expansion of Mass MarketOfferings Underway with The Parisian
Family-friendly Entertainment World Class Concerts, Sporting Eventsand Other Entertainment Offerings
Over 1.2 million sq. feetof World Class Shopping
Market-Leading Customer Database
Highly Themed Tourism Attractions
Portfolio of Nearly9,300 Suites and Hotel Rooms
Over 2 million sq. feet of Conference,
Exhibition and Carpeted Meeting Space
The Broadestand Deepest
Mass
TourismOfferingsin Macao
Our Diversified Offerings Appeal to the Broadest Set of Customers and Comprise a Unique Competitive Advantage in Macao 16
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Evolution of the Macao Mass Visitor
Drivers
More efficient and affordable transportation infrastructure
Additional tourism attractions in
Macao
and
Hengqin Island
Greater number of hotel rooms in Macao
Rapidly expanding middle‐class with growing disposable income
17
As a result, Macao’s Mass visitors are:
Coming From FartherAway
Staying Longer
Spending More On:
• Dining
• Retail• Entertainment• Gaming
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Twelve Months Ended August 31, Population GDP Per Penetration
Province 2013 2014 % Change (MM) Capita (US$) Rate (LTM)
Guangdong 8,064,422 8,677,234 +8% 104 $9,452 8.3%
Fujian 786,691 850,603 +8% 37 $9,342 2.3%
Hunan 619,573
728,897
+18% 66 $5,936 1.1%
Zhejiang 644,779 675,167 +5% 54 $11,054 1.2%
Hubei 532,572 638,481 +20% 58 $6,881 1.1%
Jiangsu 520,787 551,304 +6% 79 $12,047 0.7%
Shanghai 544,134 545,180 +0.2% 23 $11,054 2.4%
Guangxi 391,508 464,695 +19% 46 $4,939 1.0%
Henan 360,692 462,482 +28% 94 $5,518 0.5%
Jiangxi 365,352 435,663 +19% 45 $5,130 1.0%
Sichuan 375,020 383,837 +2% 80 $5,240 0.5%
Beijing 352,599 372,950 +6% 20 $15,051 1.9%
Hebei 242,548 312,802 +29% 72 $6,251 0.4%
Shandong 278,869 273,055 ‐2% 13 $9,094 2.1%
Chongqing 218,096 241,942 +11% 13 $6,910 1.9%
Shanxi 240,040 228,512 ‐5% 36 $5,621 0.6%
Inner Mongolia 133,350 130,397 ‐2% 25 $10,899 0.5%
All Other Provinces 3,476,860 4,428,371 +27% 527 N/A 0.8%
Subtotal (Excluding
Guangdong)10,083,470 11,724,338 +16% 1,288 $6,617 0.9%
Total China 18,147,892 20,401,572 +12% 1,392 $6,767 1.5%
Strong Growth in Mainland Chinese Visitation to MacaoStrongest Growth Realized in Provinces Served by High Speed Rail
18NOTE: 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
Year‐Over
‐Year
Visitation
Growth Mainland
Chinese
Visitation
to
Macao
Greater than 20%
Data Not Available‐10% ‐ 0%
0% ‐ 10%
10% ‐ 20%
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$10,961$12,143
$13,210
$11,963 $11,518
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
3Q13 4Q13 1Q14 2Q14 3Q14
$1,061.2
$1,218.5
$1,336.7
$1,248.8 $1,218.2
29.8% 30.5% 31.6%
30.5% 30.0%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
55%
60%
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
3Q13 4Q13 1Q14 2Q14 3Q14
Mass Table Win % of Macao Mass Table Win
Mass Table
Win
Increased
14.8% Mass
Table
Win
per
Table
per
Day2
19
($MM)
1,091Avg. Mass
Tables 1,124 1,147 1,1501,052
Greater
Than
$2.0
Billion
of
Annual
Departmental
Profit
at
the
3Q14
Run‐
RateSource: Macao DICJ
1. LVS’s mass table market share as presented above reflects the Macao DICJ’s presentation methodology, which includes live dealer ETG configurations within the mass table segment and Paiza cash
revenue within the VIP segment. For financial reporting purposes, LVS presents a non‐rolling table segment (which includes Paiza cash and excludes all ETGs) and a slot segment (which includes all ETGs).
2. Excludes revenue from all ETGs.
Growth in Macao Mass Table BusinessGrowth and Productivity Gains in Macao’s Most Important Segment
1
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Extending Our Leadership in Macao’s Mass MarketMeaningful Opportunity to Continue to Grow Mass Table Business
201. Based on departmental profit margin of 42.5% of mass table revenue for LVS’s Macao operations.
Over $2.0 billion of Annualized Mass Table Departmental Profit Today…
Opportunity
for
Additional
Growth
Through
Continued
Execution
of
Our
Mass
Strategy
Illustrative Profitability of LVS’s Macao Market Mass Table Offering ($MM)1
Our departmental profit
opportunity in
the
mass
table segment in Macao
LVS’s 3Q14
annualized
mass
table departmental profit
Mass Table Win per Unit per Day
$11,000 $11,518 $12,000 $13,000 $14,000 $15,000 $16,000
1,300 $2,218 $2,323 $2,420 $2,622 $2,823 $3,025 $3,227
# of 1,250 $2,133 $2,233 $2,327 $2,521 $2,715 $2,909 $3,103
Mass
1,200
$2,048 $2,144 $2,234 $2,420 $2,606 $2,792 $2,978
Tables 1,150 $1,962 $2,055 $2,141 $2,319 $2,498 $2,676 $2,854
1,100 $1,877 $1,965 $2,048 $2,218 $2,389 $2,560 $2,730
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$452
$559 $580
$547$509
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
3Q13 4Q13 1Q14 2Q14 3Q14
$609$659
$757
$702 $709
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
3Q13 4Q13 1Q14 2Q14 3Q14
21
LVS Base
Mass
Table
Win
by
Quarter
Macao: Healthy Growth in Base Mass and Premium
Mass Revenues
Note: LVS base mass and premium mass table revenues are based on geographic position of the tables on the gaming floor.
Our Mass Table Offering is the Broadest and the Deepest in the Macao Market
($MM)
LVS Premium
Mass
Table
Win
by
Quarter
LVS Departmental Profit Margin: 40% - 50% LVS Departmental Profit Margin: 25% - 40%
($MM)
248Avg.
Tables 290 314255 261877
Avg.
Tables 857 836798 829
Avg. Win per Table per Day: $9,218 Avg. Win per Table per Day: $17,676
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$165.9 $173.8
$184.3$177.6
$175.9
32.6% 32.7% 32.2% 32.5% 31.5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
$220
3Q13 4Q13 1Q14 2Q14 3Q14
Slot & ETG Win % of Macao Market Slot Win
$327
$353$388
$401$424
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
$500
3Q13 4Q13 1Q14 2Q14 3Q14
Macao Slot
and
ETG
Win
Increased
6.0% Macao
Slot
and
ETG
Win
per
Unit
per
Day
22
($MM)
5,348Avg. Slots
& ETGs 5,277 4,865 4,5155,507
~
$330
Million
of
Annual
Departmental
Profit
at
the
3Q14
Run‐
RateSource: Macao DICJ1. LVS’s slot market share as presented above reflects the Macao DICJ’s slot revenue reporting methodology, which excludes ETG play. Live dealer ETG configurations are reported withinthe mass table segment. For financial reporting purposes, LVS presents a non-rolling table segment (which excludes all ETGs) and a slot segment (which includes all ETGs).
Profitable Macao Slot Business Continues to Grow
1
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$5.9
$4.3
$1.0
$11.2
$2.1
$13.3
$6.6$5.4
$1.0
$13.0
$2.2
$15.2
$0.0
$3.0
$6.0
$9.0
$12.0
$15.0
$18.0
VenetianMacao
Sands Cotai
CentralPlaza
Casino
(Four Seasons)Total
Cotai StripSands
Macao Total
Macao Ops
3Q13 3Q14
Mass Table, Slot and ETG Win Per Day
($MM)
Healthy Mass Growth Across our Macao Property Portfolio
23
Strong Growth at The Venetian Macao and Sands Cotai Central Drove an Increase of 14.3% in Our Portfolio‐wide Mass Win per Day to Market Leading $15.2 Million per Day
Cotai Strip Properties Peninsula Total
0.0%
Mass Tables 499 378 94063 210 1,150
Slots
ETGs
1,342 987 2,473144 533 3,006
545 637 1,1908 319 1,509
3Q14 Average Table, Slot and ETG Units
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$30,365
$32,837
$39,167
$32,568
$29,893
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
$45,000
3Q13 4Q13 1Q14 2Q14 3Q14
$1,303.4 $1,327.2
$1,445.3
$1,116.9
$1,018.6
18.4%
16.9%
18.3%
16.8%
17.9%
0%
5%
10%
15%
20%
25%
30%
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
3Q13 4Q13 1Q14 2Q14 3Q14
Rolling Win % of Macao Market Rolling Win
Rolling Win per Table per Day
24
Rolling Win
Decreased
21.9%
439Avg. Rolling
Tables 410 377 370467
Approximately $400 Million of Annual Departmental Profit at the 3Q14 Run‐Rate
($MM)
VIP Business in Macao Has ContractedRolling Segment Represents 16% of Our TTM Cash Flow
2.68% 3.18% 3.19% 3.26%2.87%Rolling
Win %
E di O C i i l M h C i S i
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Expanding Our Critical Mass on the Cotai StripThe Parisian Macao
25LVSOperating Assets
Third PartyOperating
Asset
Third PartyFutureDevelopment
Construction Progress – October 13, 2014Map of Macao’s Cotai Strip
The Parisian Macao will be a $2.7 billion themed, aspirational
destination Integrated Resort
Construction is progressing
Targeted opening 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
The Parisian Macao will be interconnected to our other Cotai Strip
Properties through mall access and other pedestrian connectivity
including a walkover bridge from Sands Cotai Central
Rendering of
The
Parisian
Macao
LVS FutureDevelopment
i d i
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$2.97 $3.16
$1.55 $1.66
$4.52 $4.82
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
3Q13 3Q14
Non‐Rolling Tables Slot Machines
$373.6$351.7
$373.6 $366.5
48.3% 47.8% 48.3% 48.6%
30%
40%
50%
60%
$0
$100
$200
$300
$400
$500
3Q13 3Q14 3Q13 3Q14
Marina Bay Sands OperationsRecord Mass and Retail Business Performance Offset by Contracting VIP Segment
26
Actual
Adjusted property EBITDA of $351.7 million, a
decrease of 5.9%
— Hold‐normalized adjusted property EBITDA of
$366.5 million, a decrease of 1.9%
Total mass (non‐rolling tables and slots) win per
day increased 6.6% to reach a record $4.82
million
— Non‐Rolling win increased 6.4% to a record
$291.1 million
— Slot win increased 7.1% to a record $152.8
million
Strong growth in hotel ADR, which increased
16.7% to
$468
while
room
revenue
increased
8.9% to reach $101.6 million
Rolling win decreased 38.6% to $241.2 million
(rolling volume decreased 33.8% to $9.12 billion)
($MM)
($MM)
Adjusted Property
EBITDA
and Adjusted Property EBITDA Margin
Continued Growth in Mass Table, Slot, Hotel and Retail Businesses Offset by Contracting VIP Segment
Non‐Rolling Table and Slot Win Per Day
Hold‐Normalized
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VIP
13%
Mass Tables
38%
Slots
20%
Hotel
17%
Mall
7%
Other
5%
VIP
11%
Mass Tables
38%
Slots
21%
Hotel
18%
Mall
7%
Other
5%
TTM 3Q131
Singapore: Diversified and Stable Sources of
Departmental Profit For Las Vegas Sands
27
Mass Tables / Slots and Non‐Gaming Generated 89% of Singapore’s Departmental Profit in
the
TTM
Period
Ending
3Q14
vs.
87%
in
the
TTM
Period
Ending
3Q13
Singapore Departmental Profit Contribution by Segment
TTM 3Q14¹
1. Represents departmental profit by segment (before unallocated expenses) for the respective TTM periods ending September 30, 2014 and 2013.
A i R t il M ll R I i St dil
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$160 $169 $177 $182 $188
$97 $113
$126 $125 $129
$38
$42$43 $45
$52
$155
$154$156 $160
$167$450
$478$502 $512
$536
$0
$100
$200
$300
$400
$500
$600
3Q13 4Q13 1Q14 2Q14 3Q14
Venetian Macao Four Seasons Macao Sands Cotai Central¹ Marina Bay Sands²
Asian Retail Mall Revenue Increasing Steadily
28
($MM)
Trailing Twelve
Months
Retail
Mall
Revenue
85% 86% 86% 86%Operating Profit Margin
84%
1. At September 30, 2014, 322,309 square feet of gross leasable area were occupied out of a total of up to 600,000 square feet of retail mall space that will be featured at completion of all phases.
2. 37,000 square feet of the Shoppes at Marina Bay Sands (5.7% of total mall square footage) was being repositioned to higher yielding luxury tenants during the third quarter.
3. Tenant sales per square foot is the sum of reported comparable sales for the trailing 12‐months divided by the comparable square footage for the same period. Only tenants that have occupied mall
space for a minimum of 12 months are included in the tenant sales per square foot calculation.
$407M $430M $442M $463MOperating Profit
$379M
TTM 3Q14 Sales per Sq. Foot³
MBS:$1,423
SCC:$1,472
Four Seasons:
$5,810
Venetian:$1,579
Disciplined Execution of Our Global Growth Strategy
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South Korea
Promising Areas of Future Development Interest for Las Vegas Sands
Japan
As the global leader in Integrated Resort development and operation, Las Vegas Sands is uniquely positioned to
bring its unmatched track record and powerful convention‐based business model to the world’s most promising
Integrated Resort development opportunities
Development opportunity parameters:
— Minimum
of
20%
return
on
total
invested
capital
— 25% ‐ 35% of total project costs to be funded with equity (project financing to fund 65% ‐ 75% of total project
costs)
Disciplined Execution of Our Global Growth Strategy
29
Macao
The Parisian Macao
St. Regis Tower at
Sands Cotai
Central
Vietnam
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Appendix
Historical Hold Normalized Adj Property EBITDA1
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$
in
millions 3Q13 4Q13 1Q14 2Q14 3Q14
Macao Property Operations
Reported 784.3$ 835.9$ 939.8$ 801.3$ 809.0$
Hold‐Normalized 784.3$ 866.8$ 864.8$ 752.5$ 772.1$
Marina Bay
Sands
Reported 373.6$ 258.8$ 435.2$ 417.8$ 351.7$
Hold‐Normalized 373.6$ 341.3$ 377.9$ 368.5$ 366.5$
Las Vegas Operations
Reported 87.1$ 88.2$ 79.7$ 66.1$ 90.2$
Hold‐Normalized 61.6$ 93.7$ 97.3$ 70.4$ 83.6$
Sands Bethlehem
Reported 29.6$ 30.3$ 26.5$ 27.9$ 29.8$
Hold‐Normalized 29.6$ 30.3$ 26.5$ 27.9$ 29.8$
LVS Consolidated2
Reported 1,275.8$ 1,214.0$ 1,479.7$ 1,312.6$ 1,283.9$
Hold‐Normalized 1,250.3$ 1,332.9$ 1,365.2$ 1,218.8$ 1,255.1$
Historical Hold‐Normalized Adj. Property EBITDA1
32
1. This schedule presents hold-normalized adjusted property EBITDA based on the following methodology:(a) for Macao operations and Marina Bay Sands: if the quarter’s rolling win percentage is outside of the 2.70%-3.00% band, then a hold-adjustment is calculated by applying a rolling win percentage of 2.85% to
the rolling table volume for the quarter.(b) for Las Vegas operations: if the quarter’s Baccarat win percentage is outside of the 22.0%-30.0% band, then a hold-adjustment is calculated by applying a Baccarat win percentage of 26.0%, and if thequarter’s non-Baccarat win percentage is outside of the 14.0%-18.0% band, then a hold-adjustment is calculated by applying a non-Baccarat win percentage of 16.0%.(c) for Sands Bethlehem: no hold-adjustment is made.(d) for all properties: gaming taxes, commissions paid to third parties on incremental win, bad debt expense, discounts and other incentives are applied to determine the EBITDA impact.
2. Reflects consolidated adjusted property EBITDA inclusive of Other Asia (principally CotaiJet operations) segment.
Strong Historical Revenue and EBITDA Growth
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$1,086
$2,229
$3,532$3,791
$4,763
$5,290
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
2009 2010¹ 2011 2012² 2013 TTM 3Q14
$4,563
$6,853
$9,411
$11,131
$13,770
$14,824
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
2009 2010¹ 2011 2012² 2013 TTM
3Q14
LVS Historical
Net
Revenue
($MM)
Strong Historical Revenue and EBITDA Growth
Over the Last Four Years
LVS Historical
Adjusted
Property
EBITDA
($MM)
Margin 23.8% 32.5% 34.1%37.5% 34.6%
1. Marina Bay Sands opened in April 2010.2. Sands Cotai Central opened in April 2012.
The Power and Consistency of our Convention‐Based Integrated
Resort Business
Model
is
Reflected
in
our
Financial
Results
35.7%
33
Strong Historical Adjusted Net Income and
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$0.07
$0.98
$2.02$2.14
$2.90
$3.38
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
2009 2010¹ 2011 2012² 2013 TTM 3Q14
$48
$775
$1,644$1,768
$2,399
$2,753
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
2009 2010¹ 2011 2012² 2013 TTM 3Q14
LVS Historical
Adjusted
Net
Income
Strong Historical Adjusted Net Income and
Adjusted EPS Growth Over the Last Four Years
LVS Historical
Adjusted
Diluted
Earnings
per
Share
($MM)
Diluted
Shares
Outstanding
728M 792M 825M812M 826M
1. Marina Bay Sands opened in April 2010.2. Sands Cotai Central opened in April 2012.3. Reflects the simple average of the diluted shares outstanding for the four component quarters.
The Power and Consistency of our Convention‐Based Integrated
Resort Business
Model
is
Reflected
in
our
Financial
Results
813M3
34
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Debt Maturity Profile
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180
418
979
1,631235
1,191
1,950
833
2,115
$26 $102 $102 $333
$1,486
$2,204
$5,696
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
2014 2015 2016 2017 2018 2019 2020
SCL MBS USRG LVSC
Debt Maturity ProfileDebt Maturity by Year at September 30, 2014
Long Term
and
Low
Cost
Financing
in
Place
($MM)
0.3% 1% 1% 15%% of Total 3% 22% 57%
361. Reflects remaining 2014 payments.
1
LVS Outperforming the Macao Market in
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$7,949
$10,073
$964
$1,160
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
$10,000
$11,000
2Q13 TTM
EBITDA
LVS
EBITDA
Growth
All Others
EBITDA
Growth
2Q14 TTM
EBITDA
$3,361
$1,820
$1,436 $1,395
$1,142$919
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
LVS Galaxy² MPEL Wynn
Macau
SJM MGM
China
LVS Outperforming the Macao Market in
EBITDA Generation and Growth
LVS Had 33% Market Share of EBITDA in TTM 2Q14 and
Generated
45%
of
the
Incremental
EBITDA
Created
in
Macao
in
TTM
2Q14Source: Company Reports1. Reflects adjusted property EBITDA for operating properties based on US GAAP for the twelve months ended June 30, 2014.
2. Galaxy only includes revenue and EBITDA from Starworld and Galaxy Macau.
3. Total market EBITDA share (%) does not foot to 100% due to rounding.
EBITDA
Margin
30% 24% 17% 9% 23%
2Q14 TTM
Macao
Market
EBITDA1
EBITDA
TTM
Growth
29% 28% 33% 17% 26%
($MM)
2Q14 TTM
Macao
Market
EBITDA
Growth
($MM)
45% of
Incremental
EBITDA
55% of
Incremental
EBITDA
40%
34%
18% 14% 14% 11% 9%
Macao
Market
EBITDA
Share (%)
33%
³
37
MBS – Credit Collections Remain Healthy
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$70
$208 $285
$361$510
$561$656
$780$822 $896
$1,045 $1,087 $1,059 $1,120 $1,016 $1,068 $1,028 $984
0.0% 8.4% 9.6%12.9% 11.3%
14.6%18.2% 19.8%
23.4%26.8% 26.7% 27.8%
30.3% 32.0%37.2% 37.5%
40.9% 41.9%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
$0
$300
$600
$900
$1,200
2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14
Gross Casino A/R Balance at End of Period Reserve Against Casino A/R Balance
$40
$146 $203
$250 $271
$345$314
$418
$311 $317
$378 $368$408
$342
$403
$326$361
$281
$0
$75
$150
$225
$300
$375
$450
2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14
yReserve Balance Has Now Increased to 41.9% of Gross A/R
38
($MM)
Reserve Balance
Has
Increased
to
$412
Million
– 41.9%
of
Gross
Accounts
Receivable
Casino Credit
Collections
Remain
Stable
$0Quarterly
Provision $17M $24M $37M $32M $40M $40M$11M$19M$10M
Life to Date Provision of $518M Represents 9.9% of Rolling Win Since Opening of Property
$38M $39M $37M $39M $36M $36M $33M $30M
Las Vegas Operations
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$303 $415
$241$218
$544$633
$0
$100
$200
$300
$400$500
$600
$700
3Q13 3Q14
Baccarat Non‐Baccarat
$87.1 $90.2
$61.6
$83.6
23.2% 23.7%
17.9%
22.4%
0%
10%
20%
30%
40%
$0
$20
$40
$60
$80
$100
3Q13 3Q14 3Q13 3Q14
as Vegas OperationsStrength in Baccarat Business and RevPAR
39
Composition of Table Games Drop
Adjusted property EBITDA was $90.2 million, an
increase of 3.5%
— On a hold‐normalized basis, adjusted property
EBITDA was $83.6 million, an increase of 35.6%
RevPAR increased 9.4% to $187 with 91.9% occupancy,
with ADR increasing 4.1% to $204
37.0% increase in Baccarat drop drove a 16.4%
increase in table games drop to $632.9 million
Slot handle increased 12.1% to $573.1 million
Best opportunities for future growth:
— High‐
end
Asian
gaming
growth
— Increase in group room pricing in 2014 and 2015
($MM)
Adjusted Property
EBITDA
and Adjusted Property EBITDA Margin
Strength in Baccarat Business and Room Pricing Offsets Non‐Baccarat Contraction
Actual
($MM)
Hold‐Normalized
Sands Bethlehem Operations
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$124 $134
$138 $141
$262 $275
$0
$100
$200
$300
3Q13 3Q14
Baccarat Non‐Baccarat
$29.6 $29.8
24.0% 23.4%
0%
10%
20%
30%
40%
$0
$5
$10
$15
$20
$25
$30
$35
3Q13 3Q14
pLeading Tri‐State Region Property With Investments for Future Growth
40
Adjusted property EBITDA increased 1.0% to $29.8
million
Table games drop increased 5.0% to reach $274.6 million,
driven by a 8.1% increase in baccarat drop
Slot handle decreased 0.7% to $1.04 billion
Retail outlet mall (130,000 SF) features 28 stores
including Coach, Tommy Hilfiger, DKNY, European Body
Concepts Day Spa and recently opened Joli French Bakery and Cafe
Event Center (50,000 SF)
— Headline events
have
included
Tiesto,
Yes,
Willie
Nelson, The Beach Boys, Incubus, Belator MMA,
Glenn Frey, Crosby, Stills and Nash, NBC Fight Night,
and Diana Krall
($MM)
($MM)
Adjusted Property
EBITDA
and Adjusted Property EBITDA Margin
Composition of Table Games Drop
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Macao Market
Background
and Infrastructure Slides
VIP Gaming Represents 62% of Total Macao GGR…
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38%
71%
62%
29%
0%
20%
40%
60%
80%
100%
Gross Gaming Revenue Operating Profit
Mass Tables and Slots VIP Gaming
$18,115
$28,965
$47,080
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
$45,000
$50,000
Gross Gaming Revenue
Mass Tables and Slots VIP Gaming
TTM 3Q14
Macao
Market
Gross Gaming Revenue
…but Mass Tables and Slots Generate ~71% of Gaming Operating Profit
($MM)
Composition of
Macao
Market
Gross
Gaming
Revenue and Est. Gaming Operating Profit2
Source: Macao DICJ1. In the third quarter of 2014, the mass table segment grew 16% and the slot business grew 5% compared to the third quarter of 2013.2. 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.
Mass Gaming Generates 38% of the Gaming Revenue, but ~71% of the Gaming Operating Profit
42
3Q14 YoY
Growth
‐7%
‐19%
+15%1
~1.9X
Five Trends that Will Contribute To Growth
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in the Macao Market Over the Next Five Years
1
2
3
4
5
200 million
Chinese
are
expected
to
travel
outside
of
China
by
2020, compared to 83 million in 2012 and 97 million in 2013
Infrastructure and transportation connectivity throughout
China, especially in the Pearl River Delta region, will be
meaningfully expanded
Increasing length
of
stay
in
Macao
Hengqin Island will contribute to Macao’s diversification and to
its further
development
as
a business
and
leisure
tourism
destination
Over 13,000 new hotel rooms will open in Macao by 2018
Sources: McKinsey, Ernst & Young, CLSA43
China Is The World’s Largest and Fastest 1
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0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
'56 '60 '64 '68 '72 '76 '80 '84 '88 '92 '96 '00 '04 '08 '12$4
$8 $11 $14
$15 $22
$30 $44
$55 $70
$102
$120
5
5 9 12
2031
41 48
57
73
83
97
108
119
132
147
163
180
200
$138$157
$179
$205
$234
$268
$306
0
50
100
150
200
250
300
350
'95 '97 '99 '01 '03 '05 '07 '09 '11 '13 '15 '17 '19
Outbound Travel
from
China
Growing Outbound Tourism Market
44
Outbound Travel
Penetration¹
Wealth Generation and Increased Mobility in China Have Driven Strong Growth in Outbound Trips and Tourism Spend,
And Comparative Outbound Travel Penetration Rates Show a Meaningful Opportunity for Continued Long‐Term Growth
Expenditure (US$bn)
Chinese outboundtourists (millions)
CLSA estimates
Source: CLSA, UNWTO1. Outbound travel penetration is defined as total departures by residents as a percentage of the respective country’s population.
1
China
Japan
Taiwan
Korea
2009‐2013 2012‐2020
Expenditure 27.2% 14.3%
Tourists 16.1% 10.9%
CAGR
44.5%
27.5%
14.5%
6.1%
Strong Growth in Mainland Chinese Visitation to Macao1
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Twelve Months Ended August 31, Population GDP Per Penetration
Province 2013 2014 % Change (MM) Capita (US$) Rate (LTM)
Guangdong 8,064,422 8,677,234 +8% 104 $9,452 8.3%
Fujian 786,691 850,603 +8% 37 $9,342 2.3%
Hunan 619,573 728,897 +18% 66 $5,936 1.1%
Zhejiang 644,779 675,167 +5% 54 $11,054 1.2%
Hubei 532,572 638,481 +20% 58 $6,881 1.1%
Jiangsu 520,787 551,304 +6% 79 $12,047 0.7%
Shanghai 544,134 545,180 +0.2% 23 $11,054 2.4%
Guangxi 391,508 464,695 +19% 46 $4,939 1.0%
Henan 360,692
462,482
+28% 94 $5,518 0.5%
Jiangxi 365,352 435,663 +19% 45 $5,130 1.0%
Sichuan 375,020 383,837 +2% 80 $5,240 0.5%
Beijing 352,599 372,950 +6% 20 $15,051 1.9%
Hebei 242,548 312,802 +29% 72 $6,251 0.4%
Shandong 278,869 273,055 ‐2% 13 $9,094 2.1%
Chongqing 218,096 241,942 +11% 13 $6,910 1.9%
Shanxi 240,040 228,512 ‐5% 36 $5,621 0.6%
Inner Mongolia 133,350 130,397 ‐2% 25 $10,899 0.5%
All Other Provinces 3,476,860 4,428,371 +27% 527 N/A 0.8%
Subtotal (Excluding
Guangdong)10,083,470 11,724,338 +16% 1,288 $6,617 0.9%
Total China 18,147,892 20,401,572 +12% 1,392 $6,767 1.5%
Strongest Growth Realized in Provinces Served by High Speed Rail
45NOTE: 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
Year‐Over
‐Year
Visitation
Growth Mainland
Chinese
Visitation
to
Macao
Greater than 20%
Data Not Available‐10% ‐ 0%
0% ‐ 10%
10% ‐ 20%
1
Infrastructure: China’s High‐Speed Rail2
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Connecting More of Mainland China to Macao
Source: SCMP, LVS, NYT46
2
China’s Ministry
of
Railways
Plans
to
Spend
Greater
than
US$100
billion
per
Year
on
Rail
Development
for the Foreseeable Future, and Highlighted Rail Development in the February 2014 Stimulus Plan
Beijing – Guangzhou High‐Speed Rail
World’s longest high‐speed rail route
Covers 2,298km in ~10 hours (compared
to 22
hours
previously)
at
a cost
of
862
yuan (~US$140) per one way ticket
Provides seamless connection from Northern China to the Macao border via the Guangzhou‐Zhuhai Intercity Rail
5 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
40‐45 trains in each direction each day
Wuhan – Guangzhou High‐Speed Rail
Wuhan is the capital of Hubei Province and one of the most populous cities in Central China with ~10 million people
Wuhan is an important economic and transportation hub in 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 75‐85 trains in each direction each day
Hong KongMacao
Infrastructure: Meaningful Improvements
Th h h P l Ri D l R i
2
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Throughout the Pearl River Delta Region
Source: World Bank, China Daily, Chinatrainguide.com, Analyst reports. Note: population and GDP data from 2013. 47
GuangzhouPopulation: 13M
GDP Per Capita: US$14,000
MacaoPopulation: 0.6M
GDP Per Capita: US$91,300
Hengqin Island• Special economic area• Over $20B of overall investment• Over 10,000 hotel rooms• First phase of Chimelong theme park opened in
Jan. 2014
and
expected
to
attract
20M
visitors
annually at completion of all phases
Hong KongPopulation: 7.2M
GDP Per Capita: US$38,000
Hong Kong‐Macao‐Zhuhai Bridge
(expected completion 2016)
Wuhan – Guangzhou High‐Speed Rail• 3.5 hour train ride• 75‐80 trains in each direction per day
ShenzhenPopulation: 10M
GDP Per Capita: US$22,000China Border Gate Expansion• Daily capacity increased from 150,000 to
350,000 people
in
2H13
• Reduced average wait times on China side of border
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
FutureCompleted
in
1Q13
Gongbei – Hengqin Railway• Connects the Gongbei border crossing with
Hengqin Island
• Stops at Lotus Bridge crossing and ends at
Chimelong theme park
• Expected completion 2017
2
Chinese Day‐Trip and Overnight Visitation To
M B th C ti t G3
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5.2
6.3
7.3
8.1
8.9
4.24.7
0.0
2.0
4.0
6.0
8.0
10.0
12.0
2009 2010 2011 2012 2013 1H13 1H14
5.8
6.9
8.8 8.8
9.7
4.7
5.5
0.0
2.0
4.0
6.0
8.0
10.0
12.0
2009 2010 2011 2012 2013 1H13 1H14
Mainland China
Day
‐Trip
Visitors
to
Macao Mainland
China
Overnight
Visitors
to
Macao
Macao Both Continue to Grow
(MM)
Source: Macao DSEC48
‐9% +19% +28% 0%
(MM)
Growth ‐1% +22% +16% +10%Growth
Chinese Visitation Continues to Grow and Additional Hotel Capacity and Transportation Infrastructure will Enhance Overnight Visitation Growth to Macao in the Future
+10% +10%
3
Visitation to Macao Can Meaningfully Grow3
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11.0
13.2
16.2 16.918.6
10.2
18.0
22.7
28.1
34.9
40.7
21.8
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
Mainland China Visitation to Macao and Hong Kong
21.8 Million Residents of Mainland China Visited Hong Kong in 1H14
(MM)
Source: Macao DSEC; Hong Kong Tourism Board49
‐5% +20% +22% +5%Macao
+6%Hong Kong +26% +24% +24%
Robust Transportation
Infrastructure,
74,000
Hotel
Rooms
and
World
‐Class
Dining
and
Shopping
Amenities Enabled 21.8 Million Mainland Chinese Visitors to Travel to Hong Kong in 1H14
Hong Kong
Received
11.6M More
Visitors from
China in 1H14
than did Macao
2009 2010 2011 2012 2013
+10%
+17%
Macao Hong Kong
1H14
+15%
+16%
Opportunity for Increased Overnight Visitation
and Length of Stay In Macao3
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18.7
58.1
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
2.1
3.4
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
9.78.9
23.7
17.1
0.0
5.0
10.0
15.0
20.0
25.0(Days)
Total 2013 Mainland
Chinese Visitor Nights¹
(MM)(MM)
Daytrip Visitors
and Length of Stay In Macao
501. Calculated as total overnight visitors from Mainland China multiplied by average length of stay for Mainland overnight visitors in each market for 2013.Source: Macao DSEC, Hong Kong Tourism Board
Composition of
2013
Visitation from Mainland China
Mainland Visitors Spent 58.1 Million Visitor Nights in Hong Kong in 2013
Compared to
Just
18.7
Million
Visitor
Nights
Spent
in
Macao
Overnight Visitors
Avg. Length of Stay for
Mainland Chinese
Overnight Visitors in 2013
Macao Hong Kong
Hengqin Island Expands Critical Mass of
Tourism Offerings for Visitors to the Region4
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Tourism Offerings for Visitors to the Region
51
Map of
Hengqin
Island
New
Area Important
Facts
Island adjacent to Macao (3X the size of Macao) that has been
welcomed by President Xi Jinping as a strategic zone for
cooperation among Guangdong Province, Hong Kong and
Macao
Master‐planned island with greater than US$20 billion of
investment focused on tourism development, industrial and
technological innovation and education
One of three current “New Area” reform zones in China
— Support from the Central Government to enable long
term success
— Empowerment to have broad flexibility on economic and
legal matters
Designed to contribute to the diversification of Macao
— US$3.2 billion Chimelong International Ocean Resort
opened January
28
and
is
expected
to
generate
20
million
visits in the future after completion of all phases¹
— Hengqin’s central business district will feature a 1.2
million square foot convention center
— More than 10,000 hotel rooms expected to open over the
next five
years
Source: Macau Daily, Zhuhai Daily, Chimelong Group, Hengqin New Area Administrative Committee
1. Phase 1 currently includes the Hengqin Bay Hotel, the Ocean Kingdom theme park, the Circus World show and a waterpark in the Hengqin Bay Hotel. During the 2014 Chinese New
Year holiday, the theme park received over 500,000 visitors. It is expected to draw over 5.5 million visitors by the end of the year, up from the initial 2 million visitor projection.
Market Leading Hotel Capacity at LVSLas Vegas Sands Operates 38% of Macao’s Current 4/5 Star Hotel Inventory
5
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Sands Cotai
Central
5,723
The
Venetian Macao
2,905
Sands Macao, 289
Galaxy Macau
2,250
Grand Waldo, 550
Starworld, 509
City of
Dreams
1,461
Altira Macau, 216
Wynn Macau
1,014 Grand Lisboa, 431
Sofitel Macau, 408MGM Grand, 587
9,277
3,309
1,677
1,014 839587
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
Las Vegas Sands Galaxy Entertainment Melco Crown Wynn Resorts SJM Holdings² MGM China
Hotel % of Gaming % of Total
Gaming Operator Rooms Operators Market
Las Vegas Sands 9,277 56% 38%
Galaxy Entertainment 3,309 20% 14%
Melco Crown 1,677 10% 7%
Wynn Resorts 1,014
6% 4%
SJM Holdings² 839 5% 4%
MGM China 587 4% 2%
Subtotal Gaming Operators 16,703 100% 68%
Other 4/5 Star 7,537 0% 32%
Total 24,240 100% 100%
Las Vegas Sands Operates 38% of Macao s Current 4/5‐Star Hotel Inventory
1. In addition to the hotel rooms that are owned by gaming operators presented here, there are 7,587 additional four‐ and five‐star hotel rooms in Macao.2. Reflects only SJM Holdings self ‐owned hotels.
Source: Company filings, Macao DSEC
52
LVS Hotel Inventory Exceeds the Other Five Gaming Operators Combined
Macao Market
Gaming
Operator
Hotel
Rooms1
Four Seasons
Macao, 360`
Market Leading Hotel Capacity at LVSProjected Macao Market 4/5 Star Hotel Rooms at December 31 2017
5
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Sands Cotai
Central
5,723
The
Venetian Macao
2,905
Sands Macao, 289
The Parisian
Macao3,000
Galaxy Macau
2,250
Grand Waldo, 550Starworld, 509
Galaxy Macau Phase II
1,350
City of Dreams
1,461
Altira Macau,
216
Macau Studio City
2,000
Wynn Macau, 1,014
Wynn Cotai
1,700
Grand Lisboa, 431Sofitel Macau, 408
SJM Cotai
2,000
MGM Grand, 587
MGM Cotai
1,600
12,677
4,6594,457
2,714 2,8392,187
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
Las Vegas Sands Galaxy Entertainment Melco Crown Wynn Resorts SJM Holdings² MGM China
Hotel % of Gaming % of Total
Gaming Operator Rooms Operators Market
Las Vegas Sands 12,677 43% 34%
Galaxy Entertainment 4,659 16% 12%
Melco Crown 4,457 15% 12%
Wynn Resorts 2,714
9% 7%
SJM Holdings² 2,839 10% 8%
MGM China 2,187 7% 6%
Subtotal Gaming Operators 29,533 100% 79%
Other 4/5 Star 7,773 0% 21%
Total 37,306 100% 100%
Projected Macao Market 4/5 Star Hotel Rooms at December 31, 2017
1. In addition to the hotel rooms that are owned by gaming operators presented here, there are 7,823 additional four‐ and five‐star hotel rooms in Macao.2. Reflects only SJM Holdings self ‐owned hotels.
Source: Company filings, Macao DSEC
53
At the Completion of the Next Phase of Development, LVS will Operate 43% of all Gaming Operator Hotel Rooms
Macao Market
Gaming
Operator
Hotel
Rooms
at
December
31,
20171
Four Seasons
Macao, 360
St. Regis
Macao, 400
CoD Tower Five, 780
`
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