Venetian Las Vegas PalazzoPalazzo Las Las Vegas Vegas Sands Bethworks – Bethlehem, PA
Sands Macao The Venetian Macao Marina Bay Sands - Singapore
LasLas VegasVegas SandsSands Corp.Corp. Goldman Sachs Lodging, Gaming, Restaurant and Leisure Conference June 2, 2008 ForwardForward--LookingLooking StatementsStatements
Statements in this presentation that are not reported financial results or other historical information are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. They include, for example, statements about our business outlook, assessment of market conditions, strategies, future plans, future sales, price assumptions for offerings at our facilities, leverage and debt service, capital spending and tax rates. These forward-looking statements are not guarantees of future performance. They are based on management’s expectations that involve a number of business risks and uncertainties, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements. The risks and uncertainties relating to the forward-looking statements in this presentation include those described under the caption “Risk Factors” in Las Vegas Sands Corp.’s public filings with the Securities and Exchange Commission. The forward-looking statements contained in this presentation speak only as of today’s date. Las Vegas Sands Corp. assumes no obligation to update this information.
1 NonNon--GAAPGAAP FinancialFinancial MeasuresMeasures
This presentation includes non-GAAP financial measures as defined in the Securities and Exchange Commission’s Regulation G. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures is available on our website at www.lasvegassands.com in the earnings releases for the applicable periods.
2 LasLas VegasVegas SandsSands Corp.Corp. Business Strategy
Recognize Opportunity Monetize Opportunity Non-Core Assets Unique IndustryIndustry’’ss Business Model HighestHighest Build at “China ReturnsReturns Cost”
Unique Capabilities Move Quickly
3 LasLas VegasVegas SandsSands Corp.Corp. Key Investment Attributes
Experienced, proven management team
Large, visible growth pipeline
– World leader in Integrated-Convention-Resort development
– Established market leadership: Las Vegas, Macao, Singapore
– Significant interest from additional jurisdictions… Success Breeds Success
Low-risk opportunity to play Pan-Asian growth
Asset sales reduce risk and increase returns 4 LasLas VegasVegas OperationsOperations LasLas VegasVegas OperationsOperations1 Convention Based Model Drives Superior Performance
EBITDAR
$450
$400 GR $374 CAG $361 6% 15.6 $350 $324 $301 $300
$250 $235
$202 $200
$150 2002 2003² 2004 2005 2006 2007
(1) IncIncludesludes Venetian Las Vegas and SECC. All peperiodsriods pproro foformarma foforr the sale ooff the GGrandrand Canal Shoppes in May 2004. (2) Venezia ToweTowerr opened June 2003. 6 VenetianVenetian CasinoCasino ResortResort Highest Return Property on Las Vegas Strip
Property EBITDA(R) Returns
45%
40% 36% 35%
30%
25%
20% 19% 20% 18%
15% 14%
10% Venetian¹ Bellagio222 Mandalay Bay MGM Grand Wynn 2 Source: Company press releases and public filings; estimates for invested capital based on Wall Street estimates. Chart shows properties generating over $300 million in 2006 Run-rate EBITDA(R). (1) Venetian’s invested capital base net of after-tax mall sale proceeds of approx. $660 million, and inclusive of $100 million for the 2007 room renovation. Represents 12 months ended December 31, 2007. (2) Represents the 12-month period ended September 30, 2007. 7 LasLas VegasVegas RealReal EstateEstate ValueValue 2004 Monetization of Venetian Retail
Grand Canal ($MM) Shoppes
Net Operating Income 39
Gross Sale Proceeds 766
Implied Cap Rate 5.1%
8 LasLas VegasVegas RealReal EstateEstate ValueValue Palazzo Retail – Pre-sold to GGP
($MM)
Projected Net Operating Income 40 50 60
Sale Proceeds1 658 783 908
Implied Cap Rate 2 6.1% 6.4% 6.6%
(1) The purchase ppricerice that GGP has agreed to pay foforr the Phase II mall is the greategreaterr of $250.0 million and the mall's net operating income divided by a capitalization rarate.te. (2) The capitalization rate is 6% for eveeveryry dolladollarr ooff net opeoperatingrating income up to and incincludingluding $38.0 million and 8% foforr eveeveryry dolladollarr of net operating income above $38.0 million. 9 TheThe PalazzoPalazzo CasinoCasino ResortResort Extending The Strategy
World-class luxury destination casino-resort
− Fully integrated with the Venetian and SECC
− Soft opening 12/30/07
3,066-suite, 50-floor hotel tower
Amenities include Canyon Ranch Spa Club, Jersey Boys Theatre, and destination rrestaurantsestaurants
400,000 SF Shoppes at The Palazzo anchored by Barney’s New York Two casino brands from the front, operating efficiencies of one mega-resort Condo Tower with 422 units, 50+ stories, and 1,035,000 SF
10 TheThe PalazzoPalazzo CasinoCasino ResortResort
11 TheThe PalazzoPalazzo CasinoCasino ResortResort View of Standard Suite
12 TheThe PalazzoPalazzo CasinoCasino ResortResort View of Standard Suite
13 TheThe PalazzoPalazzo CasinoCasino ResortResort View of Standard Suite
14 VenetianVenetian RemodeledRemodeled SuiteSuite View of Standard Suite
15 VenetianVenetian RemodeledRemodeled SuiteSuite View of Standard Suite
16 TheThe PalazzoPalazzo The Shoppes at The Palazzo
17 TheThe Venetian,Venetian, TheThe Palazzo,Palazzo, andand SandsSands ExpoExpo Largest Integrated Casino-Resort-Convention Complex in the World
7,093 suites Fully-Integrated Facilities 2.3mm SF of group meeting and exhibition space e an l L va 840,000 SF of destination retail Ko 30+ restaurants with > 10,000 seats Four theatres and showrooms SECC Unique operating strategy
e u ⎯ CritiCriticalcal mass en v A s d ⎯ All-suite rooms n a S ⎯ Convention demand midweek ⎯ Malls as tourist attractions Venetian ⎯ Destination dining Palazzo $40 - $60 M of operating efficiencies Real estate monetization Las Vegas Boulevard
18 TheThe SuiteSuite OpportunityOpportunity
Suite inventory, largest driver of EBITDAR for The Venetian Las Vegas, increased by 77%
Convention and group business capabilities provide maximum flexibility
Significant opportunities in each market segment
− Corporate groups
− Convention & Exhibition
− FIT
− Tour & Travel 19 TheThe CondoCondo TowerTower Luxury Residential Units in The Venetian & Palazzo Complex
Fronts the LV Strip
Number of units 422
Net saleable SF 1,035,000
Average SF per unit 2,400
Hard construction cost $590 mm
Estimated opening date 4Q09
20 TheThe CondoCondo TowerTower Sky Lobby
21 LasLas VegasVegas OperationsOperations Superior Returns on Net Invested Capital
Original Mall / Condo Net Cost + Proceeds2 = Total
Venetian1 $1,650 + ($660) = $990
Palazzo 1,850 + (700) 3 = 1,150
4 Palazzo Condo Tower 590 + (1,200) = (610)
Total Las Vegas $4,090 ($2,560) $1,530
(1) IncIncludesludes coscostt ooff Venezia towetowerr and Venetian ToweTowerr room remodel; excexcludesludes coscostt of Sands Expo and Convention CenteCenterr and third party-funded capcapitalital impimprovementsrovements (2) Represents aafterfter-tax pproceeds,roceeds, net ooff transactransactiontion expenses (3) Based on $50 million of net operaoperatingting income and a 35% tax rate (4) Based on $1,500 sales ppricerice per SF and a 35% tax rate 22 TheThe NewNew SandsSands ExpoExpo State of the Art Convention Center
23 TheThe NewNew SandsSands ExpoExpo Expo Footprint Creates Future Development Opportunities
24 PotentialPotential FutureFuture DevelopmentDevelopment Significant Development Opportunities on Expo Footprint
25 MacaoMacao OperationsOperations andand UpdateUpdate
26 MacauMacau VisitationVisitation Total Visitation
Total Visitation to Macau (000s)
30,000 27,003
25,000 GR CA 19% 21,998
20,000 18,711 16,673
15,000 11,531 11,888
10,000
5,000
0 2002 2003 2004 2005 2006 2007
Source: Macau Statistics and Census Services 27 MacauMacau GamingGaming MarketMarket Recent Market Performance
Total Gaming Revenue ($MM)
$12,000
$10,324 $10,000
GR CA 0% $8,000 3 $7,041
$6,000 $5,726 $5,145
$4,000 $3,565 $2,758
$2,000
$0 2002 2003 2004 2005 2006 2007
Source: Macau Gaming Inspection and Coordination Bureau Notes: Total gaming revenue represents “Games of Fortune” revenue converted at 8.042 Pataca / USD exchange rate 28 MacauMacau GamingGaming MarketMarket Recent Market Performance by Component
VIP Revenue ($MM) 28% CAGR $8,000 $6,934 $4,574 $3,703 $3,589 $4,000 $2,032 $2,758
$0 2002 2003 2004 2005 2006 2007
Mass Revenue ($MM) 33% CAGR $3,000 $2,943 $1,981 $2,212 $2,000 $1,362 $778 $1,000 $697
$0 2002 2003 2004 2005 2006 2007
Slot Revenue ($MM) 73% CAGR $500 $447 $255 $250 $155 $80 $29 $29 $0 2002 2003 2004 2005 2006 2007 29 Source: Macau Gaming Inspection and Coordination Bureau; total VIP revenue represents “VIP Baccarat” revenue converted at 8.042 Pataca / USD exchange rate MacaoMacao GamingGaming MarketMarket April 22, 2008 Macau Gaming Pronouncements
PRONOUNCEMENTS DELIVERED BY EDMUND HO, CHIEF EXECUTIVE OF THE SPECIAL ADMINISTRATIVE REGION OF MACAU
PRONOUNCEMENT 1
“According to the consolidated evaluation on Macau’s future sustainable and coordinated development, MSAR government will strive to maintain the current development model of the gaming industry by not issuing any additional gaming license (including sub license).”
30 MacaoMacao GamingGaming MarketMarket April 22, 2008 Macau Gaming Pronouncements
PRONOUNCEMENT 2
“MSAR government will strictly control the development scale of gaming industry. Other than those which are already approved and in process of approval, gaming operators will not be granted new land for development. All future newly reclaimed land approved by Central Government will only be used for Macau’s sustainable and coordinated development; and will not be granted for gaming industry”
31 MacaoMacao GamingGaming MarketMarket April 22, 2008 Macau Gaming Pronouncements
PRONOUNCEMENT 3
“In order to strengthen management and ensure an appropriate and healthy development of the gaming industry, MSAR government will also introduce a series of management policies and measures in due course.”
3 (a) “MSAR government is aggressively studying ways to implement a certain control on number of casinos, gaming tables and slot machines.”
32 MacaoMacao GamingGaming MarketMarket April 22, 2008 Macau Gaming Pronouncements
3 (b) “Before implementation of the above policy, the authority will not consider approving any new applications and will not approve existing hotels / buildings to add new casino halls or increase number of gaming tables.”
3 (c) “Slot parlors will gradually move out of residential areas.”
3 (d) “MSAR government will implement an appropriate legal control on the commission for intermediates.”
33 MacaoMacao GamingGaming MarketMarket April 22, 2008 Macau Gaming Pronouncements
3 (e) “MSAR government will control the number of junket rooms by not approving new service agreement and will review the current service agreements.”
3 (f) “MSAR government will look into a licensing scheme for casino senior management executives.”
3 (g) “MSAR government will implement an appropriate legal control on the commission for intermediates.”
34 MacaoMacao GamingGaming MarketMarket April 22, 2008 Macau Gaming Pronouncements
3 (h) “MSAR government will strictly implement the order that gaming enterprises cannot operate other business, especially strictly restrict gaming enterprise to directly operate public services.”
35 TheThe SandsSands MacaoMacao Macau’s First Las Vegas Style Casino
36 SandsSands MacaoMacao OperatingOperating PerformancePerformance Superior ROIC
Superior ROIC Adjusted Property EBITDAR ⎯ $500 million investment to date $500 $457 ⎯ LTM ROIC1 > 75% $400 ⎯ First-mover advantage $373 $342 Customer loyalty $300 Unique product
Convenient location $MM $200 ⎯ $1.41 Billion in EBITDAR $159 generated since opening ($66 million in Q1 08) $100
⎯ 238 suite hotel tower added Sept. 07 $0 ⎯ Premium gaming club in 2004 2005 2006 2007 hotel tower added Feb. 08
(1) Invested capital base is time-weighted for opening of hotel tower in September 2007 37 SandsSands MacaoMacao Hotel Tower Opened September 2007
38 SandsSands MacaoMacao Hotel Tower – 238 Additional Hotel Suites
39 SandsSands MacaoMacao Hotel Tower – 238 Additional Hotel Suites
40 TheThe CotaiCotai StripStrip The Resort Destination of Asia
The Cotai StripTM
⎯ 7 resort hotels with 12 world- class hotel brands
⎯ Nearly 20,000 guest rooms
⎯ 1.5 MM SF of casino space
⎯ 3.0 MM SF of meeting & convention space
⎯ 25,000 seats of live entertainment
⎯ 3.0 MM SF of retail space
⎯ 4.0 MM SF of vacation suites
41 TheThe CotaiCotai StripStrip The Resort Destination of Asia
42 TheThe CotaiCotai StripStripTM Developing Critical Mass
March 6, 2008 43 InvestmentsInvestments inin MacauMacau’’ss InfrastructureInfrastructure Fleet of High-Speed Catamarans
44 InvestmentsInvestments inin MacauMacau’’ss InfrastructureInfrastructure Fleet of High-Speed Catamarans
45 InvestmentsInvestments inin MacauMacau’’ss InfrastructureInfrastructure Ferry Service from Hong Kong to Macau
46 Investments in Macau’s Infrastructure HKIA Ferry Terminal Expansion – “SkyPier”
$125m Expansion Opening in 2009 ⎯ Constructed with 4 berths (wi(withth capacity for expansion to 8 berths) ⎯ Total floor area of 16,000m2 or approximately 8x the size of the existing terminal
Source: Hong Kong International Airport website 47 InvestmentsInvestments inin MacauMacau’’ss InfrastructureInfrastructure Ferry Service from Macau Throughout Pearl River Delta
48 MacauMacau InfrastructureInfrastructure CKS Ferry Routes
49 TheThe VenetianVenetian MacaoMacao
50 TheThe VenetianVenetian MacaoMacao Overall Floor Plan
51 TheThe VenetianVenetian MacaoMacao
52 TheThe VenetianVenetian MacaoMacao
53 TheThe VenetianVenetian MacaoMacao Cirque Du Soleil ZAIA Theater
54 TheThe VenetianVenetian MacaoMacao Cirque Du Soleil ZAIA Theater
55 TheThe VenetianVenetian MacaoMacao Cirque Du Soleil ZAIA Theater
56 TheThe VenetianVenetian MacaoMacao Cirque Du Soleil ZAIA Theater
57 TheThe VenetianVenetian MacaoMacao Venetian Arena
58 TheThe VenetianVenetian MacaoMacao Entertainment Offerings
Manchester United NBA China Games Sampras / Federer Boxing International Asian artists Major entertainment acts −− Alan Tam −− David Tao −− Beyoncé −− Black-Eyed Peas −− The PolicPolicee featuring Sting 59 TheThe VenetianVenetian MacaoMacao Carpeted Meeting Space
60 TheThe VenetianVenetian MacaoMacao Exhibition Space
61 TheThe VenetianVenetian MacaoMacao Retail Level
62 TheThe VenetianVenetian MacaoMacao The Grand Canal Shoppes
63 TheThe VenetianVenetian MacaoMacao Six Early Indicators of Success
1. Outstanding visitation – two million visitors per month
2. Strong hotel ADR and solid occupancy
3. Successful group meeting and convention business
4. Well-received entertainment offerings
5. Successful retail launch
6. Healthy gaming volumes
64 TheThe VenetianVenetian MacaoMacao Early Indicators of Success – Strong Group Business
100% repeat rate for trade shows
More than 30 trade shows will be hosted in 2008
Broad portfolio of show topics demonstrate market acceptance
Seven of Top 10 international organizers signed up
First two fully sponsored mainland Chinese shows
65 TheThe VenetianVenetian MacaoMacao Early Indicators of Success – Strong Group Business
Repeat Business from: Bank of China Standard Chartered Bank BNP Paribas UBS AG Citibank Abbott CLSA Limited Astrazeneca Credit Suisse Johnson and Johnson DBS Bank HP Deloitte Juniper Networks Deutsche Bank Coca Cola GoldmGoldmanan Sachs McDonalds Macquarie Shell
66 TheThe VenetianVenetian MacaoMacao Early Indicators of Success – Strong Group Business
“Macau assured of bright future…although it has only been operating for four months, The Venetian Macau was voted by readers of CEI Asia Pacific as the best MICE Hotel in Asia Pacific, beating out some serious competition across the region.”
Mr. Shannon Sweeney, Editor of CEI Asia Pacific Magazine, Asia’s leading Mice magazine, in Dec /Jan issue reporting results of annual industry survey
67 2008 Confirmed Exhibition Events (Partial list)
2008 Dates Organizer Macau Jewelry and Watch Show Jan. 10 -13 CMP Asia International Gaming & Entertainment Feb. 27 - 29 Coastal International Exhibition Macau Int'l Jewelry and Watch Fair Feb. 28 - Mar. 2 MJS Trade Fairs (Macau) Mega Macao Apr. 19 - 22 Kenfair International Int'l Society of Blood Transfusion Conference June 7 - 12 ISBT G2E Asia 2008 June 3 - 5 Reed Exhibitions JMA Macau June 14 - 17 Hong Kong Jewelry Manufacturers‘ Assoc IAAPA Asian Expo 2008 July 16 - 18 Int’l Assoc. of Amuse. Parks & Attractions Macau Jewelry & Watch Show Sept. 25 - 28 CMP Asia Mega Macao Oct. 19 - 22 Kenfair International The Conference of Electric Power Supply Industry 2008 Oct. 27 - 31 CEM ISSA Inter Clean China 2008 Nov. 4 - 6 Amsterdam RAI, ISSA and AFIDAMP Motor World Macau 2008 Nov. 18 - 20 Messe Frankfurt (HK) World Tobacco Asia 2008 Nov. 25 -27 dmg World Media
68 LasLas VegasVegas SandsSands Corp.Corp. Addressing the Asian Continent from Macau
69 TheThe CotaiCotai StripStripTM Developing Critical Mass
March 6, 2008 70 TheThe CotaiCotai StripStripTM
March 6, 2008 71 TheThe CotaiCotai StripStripTM
March 6, 2008 72 TheThe CotaiCotai StripStripTM Site 2: The Four Seasons Macao
Towers 3
Rooms 381
Paiza Mansions 19
Casino Areas 71,000 SF1 Mass Tables 80 Paiza Tables 51 Slots 225
Retail, net 223,000 SF
MICE 23,000 SF
Residential 1,000,000 SF
Total area w/ parking 3,176,000 SF
Hard Construction Cost $971 mm2
Estimated Opening Date Hotel & Podium/Casino 2Q08 Paiza Mansions 1Q09 Serviced Apartments 2Q09
1. Includes both main casino and Paiza. 2. Includes Paiza fit out, theatre fit out and service apartments fit out. 73 TheThe CotaiCotai StripStripTM Site 2: The Four Seasons Macao
74 TheThe CotaiCotai StripStripTM The Four Seasons Macao Standard Suite
75 TheThe CotaiCotai StripStripTM The Four Seasons Macao Standard Suite
76 TheThe CotaiCotai StripStripTM Sites 5&6: St. Regis, Shangri-La, Sheraton & Traders
Towers 4
Rooms 6,443 Shangri-La 636 Traders 1,261 St. Regis 439 Sheraton 4,107
Casino Areas 355,000 SF1 Mass Tables 800 Paiza Tables 90 Slots 4,000
Retail, net 818,000 SF
MICE 500,000 SF
Residential 1,200,000 SF
Total area w/ parking 13,670,000 SF
Hard Construction Cost $3,269 mm
Estimated Opening Date Casino, Shangri-La, Traders & Sheraton Tower Hotel 2Q09 Sheraton Hotel & St. Regis 4Q09 St. Regis Residences 1Q10 77 1. Includes both main casino and Paiza. TheThe CotaiCotai StripStripTM Sites 5&6: St. Regis, Shangri-La, Sheraton & Traders
78 TheThe CotaiCotai StripStripTM Sites 5&6: St. Regis Suite
79 TheThe CotaiCotai StripStripTM Sites 5&6: Shangri-La Suite
80 TheThe CotaiCotai StripStripTM Sites 5&6: Sheraton Suite
81 TheThe CotaiCotai StripStripTM Sites 5&6: Traders Suite
82 TheThe CotaiCotai StripStripTM Sites 7&8: Hilton, Conrad, Fairmont, Raffles & Swissotel
Towers 2
Rooms 6,154 Swissotel 1,307 Fairmont 1,349 Raffles 445 Hilton 2,389 Conrad 644
Casino Areas 378,000 SF1 Mass Tables 660 Paiza Tables 100 Slots 3,500
Retail, net 577,000 SF
MICE 294,000 SF
Residential 1,200,000 SF
Total area w/ parking 13,910,000 SF
Hard Construction Cost $3,704 mm
1. Includes both main casino and Paiza. 83 TheThe CotaiCotai StripStripTM Sites 7&8: Hilton, Conrad, Fairmont, Raffles & Swissotel
84 TheThe CotaiCotai StripStripTM Site 3: InterContinental, Holiday Inn & Cosmopolitan
Towers 5
Rooms 3,946 InterContinental 736 Holiday Inn 2,500 Cosmopolitan 710
Casino Areas 268,000 SF1 Mass Tables 350 Paiza Tables 27 Slots 1,750
Retail, net 440,000 SF
MICE 301,000 SF
Residential 600,000 SF
Total area w/ parking 6,370,000 SF
Hard Construction Cost $1,644 mm
1. Includes both main casino and Ruby Rooms. 85 TheThe CotaiCotai StripStripTM Site 3: InterContinental, Holiday Inn & Cosmopolitan
86 AssetAsset MonetizationMonetization StrategiesStrategies Potential Real Estate Value from Malls – Comparison
Total SF Cost Mall SF Mall Sale (MM) ($MM) (MM) ($MM)
Venetian 8.5 $1,650 0.4 $766
Palazzo1 7.5 $1,850 0.4 $783
Total Las Vegas2 16.0 $3,500 0.8 $1,549 5% 44% of space of cost
Venetian Macao3 10.8 $2,400 1.0 $2,473 9% 103% of space of cost
(1) Palazzo mall sale proceeds based upon $50 million of net operating income (2) Does not include the cost or square footage of the Sands Expo & Convention Center (3) Estimated Venetian mall sale proceeds based upon assumed $130 rent per SF, 85% operating margin, and a 4.5% cap rate 87 PotentialPotential ValueValue fromfrom CotaiCotai StripStrip RetailRetail Sensitivity Analysis
(US$MM) Cap Rate 5.5% 5.0% 4.5% 4.0% 3.5%
$160 $7,418 $8,160 $9,067 $10,200 $11,657
$145 $6,723 $7,395 $8,217 $9,244 $10,564
$130 $6,027 $6,630 $7,367 $8,288 $9,471 Rent per SF Rent per SF $115 $5,332 $5,865 $6,517 $7,331 $8,379
$100 $4,636 $5,100 $5,667 $6,375 $7,286
Calculations based on 3.0 MM SF of retail space. Rent and Cap Rate assumptions are based on Company estimates. 88 MacauMacau andand HongHong KongKong RealReal EstateEstate SalesSales Estimated High-End Real Estate Trends / Comparisons
Original Price Recent Macau Per Square Foot Transactions
One Central (Macau Peninsula) $400 - $600 $700 - $900
One Grantai (Taipa, overlooking Cotai Strip) $600 - $800 $700 - $1,300
Hong Kong
The Arch (Kowloon overlooking Central) $2,000 - $4,000
The Legend (Hong Kong Central) Up to $4,420
Source: Analyst reports 89 PotentialPotential ValueValue fromfrom CotaiCotai VacationVacation SuitesSuites Sensitivity Analysis
(US$MM) Sales Price per SF $600 $800 $1,000 $1,200 $1,400
$200 $1,600 $2,400 $3,200 $4,000 $4,800
$225 $1,500 $2,300 $3,100 $3,900 $4,700
$250 $1,400 $2,200 $3,000 $3,800 $4,600 Cost per SF Cost per SF $275 $1,300 $2,100 $2,900 $3,700 $4,500
$300 $1,200 $2,000 $2,800 $3,600 $4,400
Based on 4 MM SF of saleable vacation suites. Sales Price and Cost per SF assumptions are based on Company estimates. 90 InitiativesInitiatives inin thethe PRCPRC Adelson Center for U.S. – China Enterprise
Goals
Promote trade between the U.S. and the People’s Republic of China
Foster important relationships with state-owned enterprises
−− CCPIT
Largest tradeshow organizer in the PRC
Approx 2,800 trade shows annually
91 InitiativesInitiatives inin thethe PRCPRC Hengqin Island(1) – Extending the Strategy
8 sq km Mainland Chinese address Current Ferry Complements Cotai Macau Terminal Zhuhai Peninsula Sands Long-term value driver Macao WYNN MGM 80 MM SF of development New Ferry ⎯ 4 MM SF convention center Terminal
⎯ Hotels and retail Airport Hengqin ⎯ Golf courses and marinas Island Cotai ⎯ Vacation homes Strip ⎯ Tennis, yachting, and other recreational amenities
(1) Proposed and subject to additional approvals. 92 InitiativesInitiatives inin thethe PRCPRC Hengqin Island(1) – Extending the Strategy
Marina Villas
Cotai Strip
Exhibition Center
Golf Villas
Lotus Bridge
(1) Proposed and subject to additional approvals. 93 InitiativesInitiatives inin thethe PRCPRC Hengqin Island(1) – Extending the Strategy
(1) Proposed and subject to additional approvals. 94 MarinaMarina BayBay SandsSands Rendering
95 Singapore Marina Bay Sands Location
96 Marina Bay Sands Prime Central Business District Location
Source: Singapore Urban Redevelopment Authority 97 MarinaMarina BayBay SandsSands Integrated-Resort Elements
~ 2,700 rooms
1.2 MM SF of convention and meeting space
~ 850,000 SF retail space
165,000 SF casino
Restaurants
Theatres
Museums
Outdoor recreation areas and numerous other amenities 98 MarinaMarina BayBay SandsSands Site Map
99 MarinaMarina BayBay SandsSands City View Suite
100 MarinaMarina BayBay SandsSands Garden View Suite
101 MarinaMarina BayBay SandsSands City View Suite
102 Singapore Significantly Lower Gaming Taxes than Macau
Macau Singapore Mass Gaming Tax1 39.0% 14.0% GST Tax -- 6.5% 39.0% 20.5% VIP Gaming Tax1 39.0% 4.7% GST Tax -- 6.5% 39.0% 11.5%
((1)1) Singapore gaming taxes presented aafterfter GST taxtax;; sstatutorytatutory raatestes are 15% and 5% on Mass and VIP revenues, respectivelyrespectively.. Based on currencurrentt statutory GST tax ooff 7%7%.. 103 Potential Value from Marina Bay Sands Retail Mall Sensitivity Analysis
(US$MM) Cap Rate 5.5% 5.0% 4.5% 4.0% 3.5%
$350 $4,327 $4,760 $5,289 $5,950 $6,800
$300 $3,709 $4,080 $4,533 $5,100 $5,829
$250 $3,091 $3,400 $3,778 $4,250 $4,857 Rent per SF Rent per SF $200 $2,473 $2,720 $3,022 $3,400 $3,886
$150 $1,855 $2,040 $2,267 $2,550 $2,914
Calculations based on 0.8 MM SF of retail space. Calculations based on an 85% operating margin. Rent and Cap Rate assumptions are based on Company estimates. 104 Singapore Per Capita GDP Comparison
$35,000 $32,550
$28,000
$21,000
$14,000 $9,075
$7,000
$0 Pan Pearl River Delta Singapore
Sources: Bloomberg, SingStat.gov, Guangdong Yearbook 2007, Hong Kong Census and Statistics Dept, Macau Statistics and Census Service Notes: Singapore GDP data for the LTM period ending September 30, 2007; China data from 2006. “Pan Pearl River Delta” includes nine prefectures in the Guangdong Province (Guangzhou, Shenzhen, Zhuhai, Dongguan, Zhongshan, Foshan, Huizhou, Jiangmen and Zhaoqing), Hong Kong, and Macau. 105 SingaporeSingapore Hotel Metrics for Selected Asia-Pacific Markets
RevPAR Growth
Singapore $138 28.6%
Sydney 144 23.1%
Hong Kong 161 9.9%
Tokyo 142 7.0%
Source: HotelBenchmarkTM Survey by Deloitte 106 SingaporeSingapore Visitation Trends (000s)
Penetration 2005 2006 2007 CAGR Rate Total 8,942 9,748 10,275 7% --
Top 10 Selected Countries
Indonesia 1,813 1,921 1,956 4% 0.9% China 858 1,037 1,113 14% 0.1% Australia 620 692 768 11% 3.7% India 584 659 749 13% 0.1% Malaysia 578 634 646 6% 2.4% Japan 589 594 594 1% 0.5% S. Korea 364 455 464 13% 1.0% Philippines 319 386 418 14% 0.5% Thailand 379 356 353 -3% 0.5% Hong Kong 314 291 302 -2% 4.3%
Source: Singapore Tourism Board, Population Reference Bureau 107 108 LasLas VegasVegas SandsSands Corp.Corp. Addressing Both North and South Asia
109 LasLas VegasVegas SandsSands Corp.Corp. Business Strategy
Recognize Opportunity Monetize Non-core Assets Unique IndustryIndustry’’ss Business Model Build at HighestHighest “China ReturnsReturns Cost”
Unique Capabilities Move Quickly
110