The Parisian Macao The Venetian Macao Sands Cotai Central, Macao Marina Bay Sands, Singapore (Opening 2016)
Las Vegas Sands Investor Update June 2016
Sands Macao Four Seasons Macao Sands Bethlehem The Venetian Las Vegas The Palazzo, Las Vegas Forward Looking Statements
This presentation contains forward‐looking statements that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. 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 development, construction and ventures, substantial leverage and debt service, government regulation, tax law changes, legalization of gaming, interest rates, future terrorist acts, influenza, insurance, gaming promoters, risks relating to our gaming licenses, certificate and subconcession, infrastructure in Macao, our ability to meet certain development deadlines, our subsidiaries’ ability to make distribution payments to us, and other factors detailed in the reports filed by Las Vegas Sands 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 assumes no obligation to update such information.
2 First Quarter 2016 Financial Highlights Stability in Macao, Hold‐Normalized Growth at MBS and Strong EBITDA Growth in Las Vegas
Net revenue was $2.72 billion
Hold‐normalized adjusted property EBITDA was $1.03 billion
Stability in Macao, hold‐normalized growth in Singapore and strong RevPAR‐led EBITDA growth in Las Vegas contributed to another quarter of hold‐normalized adjusted property EBITDA in excess of $1 billion
Hold‐normalized adjusted property EBITDA margin increased 220 bps to an industry‐leading 36.5%
Macao – Adjusted property EBITDA was $510.4 million. Hold‐normalized adjusted property EBITDA was $500.5 million, while hold‐normalized adjusted property EBITDA margin increased 190 bps to a Macao market‐leading 32.1%
Marina Bay Sands –Despite the impact of a stronger US dollar, hold‐normalized adjusted property EBITDA increased 3.1% to $382.8 million
On a constant currency basis, hold‐normalized adjusted property EBITDA increased 10.3% Y/Y
Adjusted diluted EPS was $0.45 per share; Hold‐normalized adjusted diluted EPS was $0.57 per share
LVS returned a total of $572.3 million to shareholders during the quarter through its recurring dividend of $0.72 per share (up 10.8%)
3 NOTE: All comparisons in this presentation compare the first quarter 2016 against the first quarter 2015 unless otherwise specified. First Quarter 2016 Financial Results (Y/Y) Quarter Ended March 31, 2016 vs Quarter Ended March 31, 2015
$ in millions, except per share information 1Q15 1Q16 $ Change % Change
Net Revenue$ 3,011.6 $ 2,716.2 $ (295.4) ‐9.8%
Adjusted Property EBITDA$ 1,050.5 $ 917.6 $ (132.9) ‐12.7%
Adjusted Property EBITDA Margin 34.9% 33.8% ‐110 bps
Adjusted Diluted EPS$ 0.66 $ 0.45 $ (0.21) ‐31.8%
Dividends per Common Share$ 0.65 $ 0.72 $ 0.07 10.8%
Hold‐Normalized Adjusted Property EBITDA$ 1,021.6 $ 1,031.1 $ 9.5 0.9%
Hold‐Normalized Adj. Property EBITDA Margin 34.3% 36.5% 220 bps
Hold‐Normalized Adjusted Diluted EPS$ 0.64 $ 0.57 $ (0.07) ‐10.9%
4 Geographically Diverse Sources of EBITDA For Las Vegas Sands
EBITDA Contribution by Geography in Q1 2016
Actual Hold‐Normalized
$918M $1,031M
United United States States 14% 14%
Macao Singapore 49% 30% Macao Singapore 56% 37%
5 LVS Increasing Return of Capital to Shareholders $13.4 Billion of Capital Returned to Shareholders Since 2012
LVS Recurring Dividends per Share1 Return of Capital to Shareholders
Las Vegas Sands remains committed to returning capital to $3.50 shareholders via its recurring dividend program and share repurchases: $2.88 $3.00 $2.60 $2.50 Dividends: $2.00 $2.00 $1.40 Las Vegas Sands is committed to maintaining its recurring $1.50 $1.00 dividend program and to increasing dividends in the $1.00 future as cash flows grow $0.50 $0.00 In October 2015, the LVS Board of Directors increased the LVS recurring dividend by 10.8% to $2.88 per share 2012 2013 2014 2015 2016 for the 2016 calendar year ($0.72 per share payable Total Capital Returned to Shareholders quarterly)
Year Year Year Year Three Months Repurchases: Ended Ended Ended Ended Ended $ in millions 12/31/2012 12/31/2013 12/31/2014 12/31/2015 3/31/2016 Total
LVS Dividends Paid1 $ 823 $ 1,153 $ 1,610 $ 2,074 $ 572 $ 6,232 Since the inception of the company’s share repurchase LVS Special Dividend Paid 2,262 ‐ ‐ ‐ ‐ 2,262 program in June 2013, the company has returned $2.44 LVS Shares Repurchased ‐ 570 1,665 205 ‐ 2,440 Subtotal LVS$ 3,085 $ 1,723 $ 3,275 $ 2,279 $ 572 $ 10,934 billion to shareholders through the repurchase of 35.4 SCL Dividends Paid2 357 411 538 619 308 2,233 SCL Special Dividend Paid ‐ ‐ 239 ‐ ‐ 239 million shares Subtotal SCL$ 357 $ 411 $ 777 $ 619 $ 308 $ 2,472 Total$ 3,442 $ 2,134 $ 4,052 $ 2,898 $ 880 $ 13,406 $1.56 billion remains under current authorization
Las Vegas Sands Remains Committed to Returning Capital to Shareholders While Maintaining a Strong Balance Sheet and the Financial Flexibility to Pursue Development Opportunities
1. Excludes dividends paid by Sands China Ltd. and excludes the $2.75 per share special dividend paid in December 2012. 6 2. Reflects only the public (non-LVS) portion of dividends paid by Sands China Ltd. (total SCL dividends paid since 2011 were $8.29 billion). SCL Also Increasing Return of Capital to Shareholders Over US$8.2 Billion of Capital Returned to Shareholders Since 2012
SCL Recurring Dividends per Share (HK$)1 Return of Capital to Shareholders
$3.00 Sands China is committed to returning capital to $2.50 2 shareholders via its recurring bi‐annual dividend $1.99 $1.99 $2.00 $1.73 program. Sands China is committed to maintaining $1.33 its recurring dividend program and increasing $1.50 $1.16 dividends in the future as cash flows grow $1.00 $0.50 For the 2016 year, the SCL Board of Directors set the $0.00 2016 SCL recurring interim dividend at HK$0.99 per 2012 2013 2014 2015 2016 share, which was paid on February 26, 2016 and proposed a final dividend of HK$1.00 per share. The SCL Total Capital Returned to Shareholders final dividend is subject to the approval of SCL shareholders at the SCL Annual General Meeting on
Year Ended Year Ended May 27, 2016 2012 2013 2014 12/31/2015 12/31/2016 US$ in millions Total Total Total Interim Final Interim Final Total
SCL Dividends Paid1 $ 1,201 $ 1,382 $ 1,800 $ 1,030 $ 1,041 $ 1,031 ‐ $ 7,485 For the 2015 year, the SCL Board of Directors SCL Special Dividend Paid ‐ ‐ 801 ‐ ‐ ‐ ‐ 801 increased the SCL dividend to HK$1.99 per share, Total$ 1,201 $ 1,382 $ 2,601 $ 1,030 $ 1,041 $ 1,031 $ 8,286 including an interim dividend of HK$0.99 per share paid on February 27, 2015 and a final dividend of HK$1.00 per share paid on July 15, 2015
Sands China Remains Committed to Returning Capital to Shareholders While Maintaining a Strong Balance Sheet and the Financial Flexibility to Pursue Development Opportunities
1. Excludes the special dividend paid in 2014. 2. The total 2016 dividend of HK$1.99 per share includes the interim dividend of HK$0.99 per share and the proposed final dividend of HK$1.00 per share. The final dividend is subject to the approval of SCL shareholders at the SCL Annual General Meeting on May 27, 2016. 7 Strong Cash Flow, Balance Sheet and Liquidity Flexibility for Future Growth Opportunities and Return of Capital
At March 31, 2016: Trailing Twelve Months Adjusted Property EBITDA – $4.04 billion Trailing Twelve Months LVS Dividends Paid – $2.12 billion Trailing Twelve Months SCL Dividends Paid – $619.2 million1 Trailing Twelve Months LVS Stock Repurchases – $205.0 million Cash Balance – $1.71 billion Net Debt – $7.79 billion Net Debt to TTM EBITDA –1.9x
Figures as of March 31, 2016 Sands China U.S. Corporate (in $MM) Ltd. Singapore Operations2 and Other Total
Cash, Cash Equivalents and Restricted Cash $753.2 $430.2 $349.6 $179.9 $1,712.9
Debt3 $3,742.5 $3,262.2 $2,500.7 ‐ $9,505.4
Net Debt $2,989.3 $2,832.0 $2,151.1 ($179.9) $7,792.5
Trailing Twelve Months Adjusted Property EBITDA $2,182.3 $1,366.1 $461.94 $27.0 $4,037.3
Gross Debt to Trailing Twelve Months EBITDA 1.7 x2.4 x5.4 xNM2.4 x
5 Net Debt to Trailing Twelve Months EBITDA 1.4 x2.1 x4.7 xNM1.9 x
Strong Balance Sheet and Cash Flow Maximize Financial Flexibility
1. Reflects only the public (non‐LVS) portion of dividends paid by Sands China Ltd. Total dividends paid by Sands China Ltd. in the TTM period ended March 31, 2016 were $2.07 billion. 2. U.S. Operations includes the cash and debt at the U.S. Restricted Group (plus $59.0 million in airplane and other financings) and adjusted property EBITDA from Las Vegas operations and Sands Bethlehem. 3. Debt balances shown here exclude deferred financing costs of $118.2 million. 4. TTM Adjusted EBITDA for U.S. Operations 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 $2.87 billion 8 5. The net leverage ratio for covenant compliance purposes, which includes the dividends and royalty fees paid by Sands China Ltd. and Marina Bay Sands to the U.S. Operations, was 0.8x. Macao Operating Performance (Y/Y) Quarter Ended March 31, 2016 vs Quarter Ended March 31, 2015
Macao Property Operations Adjusted Property EBITDA and Adjusted Property EBITDA Margin Actual Hold‐Normalized
($MM) ‐3.3% ‐5.2% $600 60%
$527.7 $527.7 $510.4 $500.5 $500 50%
$400 40%
$300 30% 31.9% 32.1% 30.2% 30.2%
$200 20%
$100 10%
$0 0% 1Q15 1Q16 1Q15 1Q16 9 Macao: Diversified and Stable Sources of Departmental Profit For Las Vegas Sands and Sands China
Macao Departmental Profit Contribution by Segment¹
TTM 1Q15 TTM 1Q16
Other Other 2% VIP VIP 3% 11% 13% Mall Mall 14% 10% Mass Tables Mass Tables 52% 50%
Hotel 14% Hotel 15%
Slots 8% Slots 8%
Mass Tables / Slots and Non‐Gaming Generated 89% of Macao’s Departmental Profit in the Trailing Twelve Months Ended 1Q16 vs. 87% in the Trailing Twelve Months Ended 1Q15
1. Represents departmental profit by segment (before unallocated expenses) for the trailing twelve month periods ended March 31, 2015 and 2016. 10 Sands China Mass Market Update Both Base Mass and Premium Mass Grew Q/Q in 1Q16 SCL Base Mass Table Win by Quarter SCL Premium Mass Table Win by Quarter
Sands China Departmental Profit Margin: 40% - 50% Sands China Departmental Profit Margin: 25% - 40%
Avg. Win per Table per Day: $6,460 Avg. Win per Table per Day: $13,625 ($MM) ($MM) $800 $800
$700 $700
$601 $600 $600 $574 $563 $555 $532 $500 $500 $412 $402 $400 $400 $367 $365 $380
$300 $300
$200 $200
$100 $100
$0 $0 1Q15 2Q15 3Q15 4Q15 1Q16 1Q15 2Q15 3Q15 4Q15 1Q16 Avg. 865892 919 938 944 Avg. 326 305 292 289 306 Tables Tables Sands China’s Mass Table Offering is the Broadest and Deepest in the Macao Market
Note: Sands China’s base mass and premium mass table revenues as presented above are based on the geographic position of non‐rolling (mass) tables on the gaming floor. Some high‐end mass play 11 occurs in the base mass geographic area and some lower‐end mass play occurs in the premium mass geographic area of the gaming floor. Market‐Leading ~$13 Billion of Investment in Macao’s Future as a Business & Leisure Tourism Destination1 World Class Concerts, Sporting Events Portfolio of Nearly Family-friendly Entertainment and Other Entertainment Offerings 13,000 Suites and Hotel Rooms1
Over Two Million sq. feet of World Class Shopping1 The Broadest and Deepest Market-Leading Customer Database Mass Tourism Offerings in Macao
Expansion of Mass Market Highly Themed Tourism Attractions Offerings Underway with The Parisian
Over Two Million sq. feet of Conference, Exhibition and Carpeted Meeting Space Our Diversified Convention‐based Integrated Resort Offerings Appeal to the Broadest Set of Customers and Comprise a Unique Competitive Advantage in the Macao Market 12 1. Incorporates the investment in and the offerings of The Parisian Macao, which is targeted to open in 2016 Macao Mass Visitation Business & Leisure Tourism Expenditure Drivers
Future Growth Drivers As a result, Macao’s Mass visitors will:
. More efficient and affordable . Come From Farther transportation infrastructure Away
. Greater number of hotel rooms . Stay Longer and non‐gaming offerings in Macao . Spend More On: • Lodging . Additional tourism attractions in • Retail Macao and Hengqin Island • Dining • Entertainment • Gaming . Rapidly expanding middle‐class with growing disposable income
13 Expanding Our Critical Mass on the Cotai Strip The Parisian Macao
The Parisian Macao is a $2.7 billion themed, iconic destination Rendering of The Parisian Macao Integrated Resort Construction continues to progress Hotel rooms and suites: Approximately 3,000 Gaming capacity: ~450 table games and 2,500 slots and ETGs Additional amenities including a 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 with airport‐style moving sidewalks connecting to Sands Cotai Central
Map of Macao’s Cotai Strip Construction Progress –May 30, 2016
LVS Future LVS Third Party Third Party Development Operating Operating Future 14 Assets Asset Development Expanding Our Critical Mass on the Cotai Strip The Parisian Macao – Construction Progress
Public Circulation Main Gaming Floor
Retail (Galerie Vivienne) MICE Ballroom
15 Macao Market Annual EBITDA Market Share by Operator
Historical EBITDA Market Share1,2
Sands China All Others
Macao Leader in Market Share 40% of EBITDA 80% 72% 68% 65% 10% 63% 9% 9% 30% 60% 9% 16% 14% 13% 12% 20% 40% 37% 14% 12% 11% 8% 35% 32% 28% 14% 14% 15% 14% 10% 20%
18% 18% 18% 20% 0% 0% 2012 2013 2014 TTM 1Q16 2012 2013 2014 TTM 1Q16 Sands China Galaxy 2 MPEL SJM Wynn MGM
Sands China Expanded Market Share of Macao EBITDA by 900 bps Since 2012
Source: Company Reports 1. Reflects reported adjusted property EBITDA for the operating properties 16 2. Galaxy only includes EBITDA from Starworld and Galaxy Macau Marina Bay Sands Update1 Hold‐Normalized EBITDA Up 10.3% On a Constant Currency Basis
Hold‐normalized adjusted property EBITDA increased 10.3% on a Adjusted Property EBITDA constant currency basis. Hold‐normalized adjusted property EBITDA increased 3.1% to $382.8 million with margin expanding 90 and Adjusted Property EBITDA Margin basis points. Actual Hold‐Normalized ($MM) Adjusted property EBITDA decreased 33.8% to $274.9 million $600 80% due to lower‐than‐normal Rolling win % $500 70% $415.3 $371.3 $382.8 Adjusted property EBITDA decreased 29.2% on a constant‐ $400 60% currency basis $274.9 $300 50% 52.9% 50.9% 51.8% Total mass win‐per‐day was a property record in local currency $200 40% terms and increased 9.8% on a constant‐currency basis. Despite 45.5% the impact of a stronger USD, total mass (Non‐Rolling tables and $100 30% slots) win‐per‐day increased 2.6% to $4.82 million. $0 20% 1Q15 1Q16 1Q15 1Q16 — Non‐Rolling table win increased 4.8% to $293.3 million Non‐Rolling Table and Slot Win Per Day —Slot win increased 2.1% to $145.7 million ($MM) $6.0 $4.82 Room revenue decreased 0.8% as RevPAR decreased 1.8% to $386 $4.70 and ADR decreased 4.8% to $394 (impact of the strong USD was $4.0 $1.59 $1.60 approximately 7%) $2.0 Retail mall revenue decreased 2.0% to $39.0 million (impact of the $3.11 $3.22 strong USD was approximately 7%) $0.0 MBS financials and key performance indicators were negatively 1Q15 1Q16 impacted by the stronger USD Non‐Rolling Tables Slot Machines
Despite Currency Impact from Strong US Dollar, Solid Financial Performance in Singapore
1. Due to a strengthened US Dollar in 1Q16 compared to 1Q15, MBS faced a currency impact of approximately 7% 17 Singapore’s Marina Bay Sands: Diversified and Stable Sources of Departmental Profit For Las Vegas Sands
Marina Bay Sands Hold‐Normalized Departmental Profit Contribution by Segment
TTM 1Q15¹ TTM 1Q16¹
Other Other 4% VIP 5% VIP 11% 11%
Mall Mall Mass Tables Mass Tables 8% 7% 38% 40%
Hotel Hotel 17% 18% Slots Slots 20% 21%
Mass Tables / Slots and Non‐Gaming Generated 89% of Marina Bay Sands’ Hold‐Normalized Departmental Profit in the TTM Period Ended March 31, 2016
1. With no adjustment for hold‐normalization, VIP contribution would have been 17% (vs 11%) in the TTM 1Q15 period and 2% (vs. 11%) in the TTM 1Q16 period. 18 Asia Retail Mall Portfolio Continues to Generate Strong Revenue and Operating Profit Trailing Twelve Months Retail Mall Revenue
($MM) Flat Y/Y TTM 1Q16 Sales per Sq. Foot² $586 $600 $569 $575 $560 $569
MBS: $500 $171 $171 $167 $163 $163 $1,334
$400 SCC: $65 $61 $63 $62 $64 $872
$300 Four Seasons: $145 $139 $141 $130 $132 Luxury: $4,389 Other: $1,508 $200
$100 $198 $205 $204 $205 $210 Venetian: $1,428
$0 1Q15 2Q15 3Q15 4Q15 1Q16 Venetian Macao Four Seasons Macao Sands Cotai Central¹ Marina Bay Sands
Operating $501M $508M Profit $503M $521M $514M Operating 89% 89% Profit Margin 88% 89% 89%
1. At March 31, 2016, 318,288 square feet of gross leasable area were occupied out of a total of up to 600,000 square feet of retail mall space that will be featured at completion of all phases of Sands Cotai Central. 2. Tenant sales per square foot is the sum of reported comparable sales for the trailing 12‐months divided by the comparable square footage for the same period. Only tenants that have 19 occupied mall space for a minimum of 12 months are included in the tenant sales per square foot calculation. Sands China: Retail Mall Revenue Composition
Macao Quarterly Retail Revenue Composition
($MM)
$160
$140 $117.7 $120 $97.7 $22.5 $95.3 $100 $94.0 $87.4 $1.1 $5.5 $8.6 $1.6 $80
$60
$88.5 $89.1 $95.2 $94.2 $40 $85.7
$20
$‐ 1Q15 2Q15 3Q15 4Q15 1Q16
Base Rent and Other Fees Turnover Rent
Strong Base Rent, Which Grew 9.9% in 1Q16, Provides the Majority of Sands China’s Retail Mall Revenue 20 Las Vegas Operations Update Strong RevPAR Performance Drove 17.3% Adjusted Property EBITDA Growth
Adjusted property EBITDA increased 17.3% to reach Adjusted Property EBITDA $86.9 million and Adjusted Property EBITDA Margin Hold‐Normalized —On a hold‐normalized basis, adjusted property Actual ($MM) EBITDA increased 15.0% to reach $102.5 million $120 40% $102.5 Room revenue increased 13.0% to a property record $100 $86.9 $89.2 30% $147.6 million. ADR increased 2.9% to $251 with $80 $74.1 92.1% occupancy, driving a RevPAR increase of 10.0% $60 25.4% 20% 22.6% 22.6% to $231. $40 19.7% 10% Table games drop decreased 9.3% to $483.5 million $20 —Non‐baccarat drop decreased 9.8% to $228 $0 0% 1Q15 1Q16 1Q15 1Q16 million Composition of Table Games Drop —Baccarat drop declined 8.9%, reflecting slower international play ($MM) $700 $600 $533 Slot win increased 8.3% to $47.7 million $484 $500 Best opportunities for potential future growth: $400 $252 $228 $300 —Increase in group & FIT room pricing $200 $281 $256 —Non‐gaming offerings $100 $0 — Recovery of international gaming segment 1Q15 1Q16 Baccarat Non‐Baccarat
Room Segment Strength Leading Recovery in Las Vegas Market 21 Sands Bethlehem Update Solid Quarter for Leading Tri‐State Region Property
Adjusted Property EBITDA Adjusted property EBITDA increased 26.2% to a and Adjusted Property EBITDA Margin property record $37.7 million
($MM)
Table games drop increased 6.7% to reach $281.0 $45 40% $37.7 million, driven by an 11.5% increase in Baccarat drop $40 35% $35 $29.9 30% $30 25% $25 27.2% Slot handle increased 7.6% to $1.08 billion 20% $20 23.4% 15% $15 ADR increased 2.7% to $153 with occupancy of $10 10% $5 5% 90.7%, driving a RevPAR increase of 9.5% to $138 $0 0% 1Q15 1Q16
The Outlets at Sands Bethlehem (150,000 SF) feature Composition of Table Games Drop 29 stores including Coach, Tommy Hilfiger, DKNY, GUESS, European Body Concepts Day Spa and Joli ($MM) French Bakery and Cafe $300 $263 $281
The Sands Bethlehem Event Center (50,000 SF) $200 $139 $142
— Headline events have included Tiesto, Yes, Willie $100 $125 $139 Nelson, The Beach Boys, Incubus, Bellator MMA, $0 Glenn Frey, Crosby, Stills and Nash, NBC Fight 1Q15 1Q16 Night, Diana Krall and Bill Maher Baccarat Non‐Baccarat 22 Disciplined Execution of Our Global Growth Strategy
As the global leader in MICE‐based 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: —Targeting 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) Principal Areas of Future Development Interest for Las Vegas Sands
Macao Japan South Korea The Parisian Macao
23 The Investment Case for Las Vegas Sands
The global leader in MICE‐based Integrated Resort development and operation, delivering strong and diversified cash flow and earnings as well as recurring dividends Best positioned operator to deliver long‐term growth in Asia, with the pre‐eminent destination MICE‐based Integrated Resort properties in the world’s largest and fastest growing 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 long‐term growth while continuing the return of capital to shareholders through recurring dividend and stock repurchase programs The industry’s most experienced leadership team: visionary, disciplined and dedicated to driving long‐term shareholder value
Maximizing Return to Shareholders by: 1. Delivering long‐term growth in current markets 2. Using leadership position in MICE‐based Integrated Resort development and operation to pursue global growth opportunities 3. Continuing to return excess capital to shareholders 24 Appendix Historical Hold‐Normalized Adj. Property EBITDA1
$ in millions 1Q15 2Q15 3Q15 4Q15 1Q16
Macao Property Operations Reported$ 527.7 $ 559.8 $ 536.8 $ 575.3 $ 510.4 Hold‐Normalized$ 527.7 $ 526.5 $ 528.3 $ 549.1 $ 500.5
Marina Bay Sands 2
Reported$ 415.3 2 $ 363.3 $ 389.7 $ 338.2 $ 274.9 Hold‐Normalized$ 371.3 $ 363.3 $ 411.3 $ 374.8 $ 382.8
Las Vegas Operations Reported$ 74.1 $ 54.2 $ 79.8 $ 97.4 $ 86.9 Hold‐Normalized$ 89.2 $ 85.3 $ 101.8 $ 105.4 $ 102.5
Sands Bethlehem Reported$ 29.9 $ 34.1 $ 37.5 $ 34.3 $ 37.7 Hold‐Normalized$ 29.9 $ 34.1 $ 37.5 $ 34.3 $ 37.7
LVS Consolidated2 Reported$ 1,050.5 $ 1,016.2 $ 1,052.2 $ 1,051.3 $ 917.6 Hold‐Normalized$ 1,021.6 $ 1,013.9 $ 1,087.3 $ 1,069.8 $ 1,031.1
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 volume for the quarter. (b) for Las Vegas operations: if the quarter’s Baccarat win percentage is outside of the 21.0%‐29.0% band, then a hold‐adjustment is calculated by applying a Baccarat win percentage of 25.0%, and if the quarter’s non‐ Baccarat win percentage is outside of the 16.0%‐20.0% band, then a hold‐adjustment is calculated by applying a non‐Baccarat win percentage of 18.0%. (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 adjusted property EBITDA impact. 26 2. Reflects consolidated adjusted property EBITDA inclusive of Other Asia (principally CotaiJet operations) segment. Capital Expenditures Expectations Future Planned Investments Composed Principally of The Parisian Macao and Maintenance
($MM) LVS Capex Expectations $3,000
$2,500
$2,000 $1,690 $1,529 $8 $1,449 $1,500 $240 $107 $40 $1,179 $19 $285 $49 $968 $1,000 $898 $190 $900 $830 $767 $318 $210 $390 $50 $600 $60 $73 $500 $192 $75 $150 $100
$472 $447 $445 $396 $500 $500 $500 $0 2012A 2013A 2014A 2015A 2016E 2017E 2018E Maintenance Investments in Current Properties¹ Sands Cotai Central The Parisian Macao² St. Regis at SCC Other
Development Timeline Pre‐Opening Post‐Opening Sands Cotai Central St. Regis at Sands Cotai Central The Parisian Macao2 Future Capital Expenditures Focused on Growth in Asia 1. Reflects investments that will generate future income in our current property portfolio 27 2. The timing of capex is subject to the receipt of timely government approvals. Debt Maturity Profile Debt Maturity by Year at March 31, 2016
($MM) $6,000 $5,503
$5,000
2,115 $4,000
$3,000
$2,298 1,816 $2,000 1,110 $971 $1,000 259 1,572 $328 218 1,154 $340 $73 494 $0 181 2016 2017 2018 2019 2020 2021 SCL MBS US LVSC % of Total 1% 3% 10% 24% 58% 4%
Long Term and Low Cost Financing in Place 28 Marina Bay Sands: Accounts Receivable and Credit Collections Update Casino Credit Collections ($MM) $500 $418 $378 $408 $403 $400 $368 $342 $361 $317 $326 $311 $291 $300 $281 $272 $281 $262 $257 $206 $200
$100
$0 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 Reserve Balance Of $376 Million Represents 46.1% of Gross Accounts Receivable
Quarterly $32M $40M $40M $38M $39M $37M $39M $36M $36M $33M $30M $30M $24M $20M $24M $33M $32M Provision
$1,200 $1,087 $1,120 60.0% $1,045 $1,059 $1,068 $1,028 $1,016 $984 $1,001 $1,011 $994 $896 $913 50.0% $900 $780 $822 $866 $816 40.0% 40.9% 41.9% 40.0% 46.1% $600 37.2% 37.5% 37.6% 38.5% 38.7% 41.6% 30.0% 30.3% 32.0% 26.8% 26.7% 27.8% 20.0% $300 23.4% 19.8% 10.0% $0 0.0% 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16
Gross Casino A/R Balance at End of Period Reserve Against Casino A/R Balance
Life to Date Provision of $689 Million Represents 9.2% of Rolling Win Since Opening of Property 29 Macao Market Background and Infrastructure Slides VIP Gaming Represents the Majority of Total Macao GGR… …but Mass Tables and Slots Generate the Bulk of Gaming Operating Profit
Composition of Macao Market Gross Gaming Revenue and Est. Gaming Operating Profit¹ 1Q16 TTM 1Q16
$7,022M $1,669M $27,780M $6,592M 100% 100% 23% 23% 80% 80% 54% 54%
60% 60% ~1.7X ~1.7X
40% 77% 40% 77%
46% 20% 46% 20%
0% 0% Gross Gaming Revenue Operating Profit Gross Gaming Revenue Operating Profit Mass Tables and Slots VIP Gaming Mass Tables and Slots VIP Gaming
Mass Gaming is the Primary Driver of Gaming Operating Profit
Source: Macao DICJ 1. This presentation reflects an assumed operating profit margin of 10.0% on gross VIP revenue and a blended margin of 40% on mass table and slot gross revenue. Gross gaming revenue presented here is based on disclosures from the DICJ and is not adjusted for table reclassifications from VIP to mass (non-rolling tables that are positioned within VIP areas 31 of gaming floors). This presentation therefore likely overstates rolling revenue and operating profit percentages and understates mass revenue and operating profit percentages. Gradual Sequential Improvement in Macao’s High Margin Mass Market Segment
Macao Mass Gaming Revenue & Mass Win‐per‐Visit1
($MM) Gradual Improvement in Mass Win and Mass Spend‐ per‐Visit Over the Past Few Quarters $5,000 $1,000 $4,589 $4,449 $4,340 $4,419 $3,919 $4,000 $3,872 $800 $3,682 $3,609 $3,496 $3,584 $3,351 $3,441 $3,408 $3,175 $585 $597 $586 $3,000 $2,839 $600 $2,655 $2,679 $536 $487 $498 $490 $497 $484 $474 $464 $456 $440 $432 $382 $404 $390 $2,000 $400
$1,000 $200
$0 $0 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 Mass Win Mass Win Per Visit
Macao’s Mass Segment is Showing Signs of Stability
1. Mass Win is defined as Mass table win plus slot win as reported by the casino operators in their public filings (does not include revenue from Galaxy’s City Club business). Mass spend-per-visit is defined as Mass win (tables and slots) divided by total visitation to Macao as reported by the Macao DSEC. All figures reported in Hong Kong dollars have been converted to USD using a 7.75 exchange rate. 32 Source: Company Filings, Macao DSEC Five Trends that Should Contribute To Growth in the Macao Market In The Future 200 million Chinese are expected to travel outside of China by 2020, 1 compared to 128 million in 2015. Chinese tourism expenditures are expected to increase 10% annually through 2020 to reach $354 billion.
2 Transportation infrastructure and connectivity throughout China, especially in the Pearl River Delta region, will be meaningfully expanded
3 Over 9,000 new hotel rooms will open in Macao by 2018
4 Increasing length of stay in Macao
5 Hengqin Island will contribute to Macao’s diversification and to its further development as a business and leisure tourism destination
33 Sources: McKinsey, Ernst & Young, CLSA, WTTC China Is The World’s Largest and Fastest 1 Growing Outbound Tourism Market Outbound Travel from China Outbound Travel Penetration2
60%
400 56.1% Expenditure (US$bn) 55% Japan Chinese outbound $354 Korea 350 tourists (millions) 50% Taiwan CLSA / WTTC estimates1 $319 45% China 300 $289 40% CAGR 38.3% 250 $261 2009 ‐ 2015 2015‐2020 35% Expenditure 40% 10% $235 200 Tourists 18% 9% 30% 200 $215
181 25% 165 150 $143 150 137 20% 128 $108 117 100 15% $84 12.8% 98 70 57 83 48 10% 38 46 50 31 41 9.3% 27 $55 18 20 13 14 $39 5% 5 8 10 11 $29 $19 $26 0 $8 $9 $9 $11$13 '96'98'00'02'04'06'08'10'12'14'16'18'20 0% '67 '73 '79 '85 '91 '97 '03 '09 '15 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
Source: CLSA, WTTC, UNWTO 1. The outbound tourist forecast is based on CLSA estimates. The expenditure forecast is based on estimates from the World Travel & Tourism Council (WTTC). Historical expenditure data is converted to USD using the average 34 exchange rate during the respective year. WTTC forecasts are converted to USD using the average exchange rate in 2015. 2. Outbound travel penetration is defined as total departures by residents as a percentage of the respective country’s population. Penetration rates assume that each visitor from Mainland China is a unique visitor. 1 Strong Growth in Chinese Outbound Tourism
Chinese Outbound Tourism to Select Markets
2010‐2015 CAGR +12% +27% +17% +29% +26% +48% +9% +15% 50.0 (MM) 45.8
40.0
30.0
22.7 20.4 20.0
13.2
10.0 7.9 6.0 4.3 5.0 2.1 2.6 1.9 1.9 1.2 0.8 1.4 1.1 0.0 Singapore USA Major European Japan Korea Thailand Macau Hong Kong 1 Countries 2010 2015
Continued Growth of Chinese Outbound Tourism will Drive Macao Mass Tourism Opportunity
1. Includes France, Germany, Italy, Switzerland and the United Kingdom 35 Source: CLSA, Macau DSEC, Hong Kong Tourism Board 1 Chinese Middle Class Consumption Growth Chinese Middle Class Consumption in 2030 is Projected to Reach $10.0 trillion
Global Middle Class Consumption in 2030 (US$ in trillions)
(US$ in trillions) $15
$10.0 $10
$5 $4.0
$2.3 $2.5 $1.1 $1.2 $1.2 $1.3 $1.4
$‐ France Brazil Mexico Germany Russia Japan Indonesia USA China
Continued Growth of the Chinese Middle Class Will Drive Macao Mass Tourism Opportunity
NOTE: Brookings Institution defines the global middle class as those households with daily expenditures between $10 and $100 per person in purchasing power parity terms. Source: Brookings Institution; UN; World Bank; Financial Times. 36 1 Mainland Chinese Visitation to Macao Penetration Remains Low
Year‐Over‐Year Visitation Growth Mainland Chinese Visitation to Macao
Twelve Months Ended March 31 Population GDP Per Penetration Province 2015 2016 % Change (MM) Capita (US$) Rate Guangdong 9,091,313 9,030,963 ‐1% 107 $10,466 8.4%
Fujian 907,990 847,919 ‐7% 38 $10,523 2.2% Hunan 768,898 808,279 5% 67 $6,645 1.2% Hubei 678,947 654,302 ‐4% 58 $7,832 1.1% Zhejiang 686,674 563,105 ‐18% 55 $12,003 1.0% Guangxi 516,116 546,691 6% 48 $5,448 1.1% Jiangsu 563,365 499,485 ‐11% 80 $13,578 0.6% Shanghai 538,737 490,596 ‐9% 24 $15,863 2.0% Jiangxi 459,009 433,473 ‐6% 45 $5,676 1.0% Henan 494,391 420,378 ‐15% 94 $6,046 0.4% Sichuan 394,360 397,848 1% 81 $5,700 0.5% Beijing 369,082 328,991 ‐11% 22 $16,453 1.5% Liaoning 338,551 317,102
‐6% 44 $10,091 0.7% Hebei 344,432 263,903 ‐23% 74 $6,222 0.4% Heilongjiang 302,802 261,928 ‐13% 38 $6,066 0.7% Shandong 301,125 255,102 ‐15% 98 $9,920 0.3% Anhui 256,482 252,659 ‐1% 61 $5,576 0.4% Chongqing 261,069 243,049 ‐7% 30 $8,100 0.8% Shanxi 244,316 207,354 ‐15% 36 $5,409 0.6% Jilin 231,457 207,178 ‐10% 28 $7,993 0.8% All Other Provinces 3,355,776 3,296,336 ‐2% 239 N/A 1.4% Less than ‐10% ‐10% ‐ 0% 0% ‐ 10% Subtotal (Excluding Guan Data Not Available 10% ‐ 20% 12,013,579 11,295,678 ‐6% 1,261 $7,647 0.9% gdong) Total China 21,104,892 20,326,641 ‐4% 1,368 $7,868 1.5%
NOTE: Penetration rates assume that each visitor to Macao from Mainland China is a unique visitor. GDP per Capita defined as 2015 GDP divided 2014 population (the latest data available). 37 Source: Macao DSEC; National Bureau of Statistics of China; LVS Estimates 2 Infrastructure: China’s High‐Speed Rail Connecting More of Mainland China to Macao
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
Guangzhou – Zhuhai Intercity Rail . Provides seamless connection from Northern China to the Macao border via . Rail line connecting Guangzhou to the Guangzhou‐Zhuhai Intercity Rail Zhuhai, where the Gongbei border gate to Macao is located . 5 trains in each direction each day . Guangzhou is the largest city in Guangdong province and is a key Wuhan – Guangzhou High‐Speed Rail economic and transportation hub . Reduces travel time from . Wuhan is the capital of Hubei Province and one Guangzhou to Zhuhai from 2+ of the most populous cities in Central China hours by bus to as short as 60 with ~10 million people minutes . Wuhan is an important economic and . Zhuhai station opened in Jan 2013 transportation hub in Central China
. Future link to Macao Light Rail . HSR reduces travel time to Guangzhou from 11 System Hong Kong Macao hours by bus to 3.5 hours by train . 40‐45 trains in each direction each day . One of the most successful routes with 75‐85 trains in each direction each day
The Chinese Premier Has Pledged to Continue Heavy Investment in the High Speed Rail System – Approximately US$130 billion per year for the 2016‐2020 Period 38 Source: SCMP, LVS, NYT Infrastructure: Meaningful Improvements 2 Throughout the Pearl River Delta Region
Guangzhou Population: 13M Wuhan – Guangzhou High‐Speed Rail GDP Per Capita: US$20,000 • 3.5 hour train ride • 75‐80 trains in each direction per day
Guangzhou – Zhuhai Intercity Rail Guangzhou – Shenzhen –Hong Kong Rail • 70 ‐ 90 minute train ride (2+ hours by bus) • 2 hour train ride from Guangzhou to Hong Kong • 33 ‐ 43 trains in each direction per day • 26 trains in each direction per day • Final link to Gongbei border gate completed in January 2013 Shenzhen China Border Gate Expansion Population: 15M GDP Per Capita: US$29,000 • Daily capacity increased from 150,000 to 350,000 people in 2H13 • Reduced average wait times on China side of border Hong Kong Population: 7.2M GDP Per Capita: US$40,200 Gongbei –Hengqin Railway • Connects the Gongbei border crossing with Hengqin Island Hong Kong‐Macao‐Zhuhai Bridge • Stops at Lotus Bridge crossing and ends at (expected completion TBD) Chimelong theme park • Expected completion 2018 Macao Population: 0.6M Hengqin Island GDP Per Capita: US$96,000 • Special economic area Legend • Over $20B of overall investment expected Taipa Ferry Terminal • Over 10,000 hotel rooms expected (~5,000 today) • Estimated opening in 2017 Existing • Phase I of Chimelong theme park opened in Jan. ‘14 • 40 ferry per hour capacity and helipad and attracted 8M visitors in ‘14. 20M annual • 114 immigration clearance counters Future visitors expected at completion of all phases. and e‐channels 39 Source: World Bank, China Daily, Macau Business Daily, Chinatrainguide.com, Analyst reports. Note: population and GDP data from 2014. 3 Market Leading Hotel Capacity at SCL Sands China Operates 34% of Macao’s Current 4/5‐Star Hotel Inventory
Macao Market Gaming Operator Hotel Rooms1
12,000 Hotel % of Gaming % of Total Gaming Operator Rooms Operators Market Sands China ` 9,677 49% 34% 9,677 Galaxy Entertainment 4,329 22% 15% 10,000 Melco Crown 3,230 16% 11% Sands Macao, 289 Four Seasons Macao, 360 Wynn Resorts 1,008 5% 4% SJM Holdings² 838 4% 3% 8,000 The MGM China 582 3% 2% Venetian Macao Subtotal Gaming Operators 19,664 100% 70% 2,905 Other 4/5 Star 8,436 0% 30% St. Regis Macao, 400 Total 28,100 100% 100% 6,000 Starworld, 509
4,329 Broadway Macau, 320 4,000 3,230 Altira Macau, 230 Sands Cotai Central 5,723 Galaxy Macau³ Macau Studio City Sofitel Macau, 408 2,000 1,600 Phase I: 2,250 1,008 838 Phase II: 1,250 582 City of Dreams Wynn Macau 1,400 MGM Grand, 582 0 1,008 Grand Lisboa, 430 Sands China Galaxy Entertainment Melco Crown Wynn Resorts SJM Holdings² MGM China With a Market‐Leading US$10 billion of Investment, SCL Hotel Inventory Represents 49% of Macao Competitor Hotel Inventory 1. In addition to the hotel rooms that are owned by gaming operators presented here, there are approximately 8,436 additional four‐ and five‐star hotel rooms in Macao. 2. Reflects only SJM Holdings self‐owned hotels. 3. Reflects the opening of Galaxy Phase II, an extension to the Galaxy Macau, which opened on May 27, 2015. 40 Source: Company filings, Macao DSEC 3 Market Leading Hotel Capacity at SCL Projected Macao Market 4/5 Star Hotel Rooms at December 31, 2017
Macao Market Gaming Operator Hotel Rooms at December 31, 20171
14,000 Hotel % of Gaming % of Total 12,677 Gaming Operator Rooms Operators Market Sands China ` 12,677 45% 34% 12,000 The Parisian Galaxy Entertainment 4,329 16% 12% Macao Melco Crown 3,230 12% 9% 3,000 Sands Macao, 289 SJM Holdings² 2,838 10% 8% 10,000 Four Seasons Wynn Resorts 2,708 10% 7% Macao, 360 MGM China 2,082 7% 6% Subtotal Gaming Operators 27,864 100% 75% 8,000 The Other 4/5 Star 9,403 0% 25% Venetian Macao Total 37,267 100% 100% 2,905 St. Regis Macao, 400 6,000 Starworld, 509
4,329 Broadway Macau, 320 Altira Macau, 230 Sofitel Macau, 408 4,000 3,230 Sands Cotai 2,838 2,708 Central 2,082 Galaxy Macau³ Macau Studio City 5,723 SJM Cotai Wynn Palace 2,000 1,600 Phase I: 2,250 2,000 1,700 MGM Cotai Phase II: 1,250 City of Dreams 1,500 Wynn Macau, 1,008 0 1,400 Grand Lisboa, 430 MGM Grand, 582 Sands China Galaxy Entertainment Melco Crown SJM Holdings² Wynn Resorts MGM China With a Market‐Leading US$13 billion of Investment, SCL Hotel Inventory Will Represent 45% of Macao Competitor Hotel Inventory 1. In addition to the hotel rooms that are owned by gaming operators presented here, there will be approximately 9,403 additional four‐ and five‐star hotel rooms in Macao at December 31, 2017. 2. Reflects only SJM Holdings self‐owned hotels. 3. Reflects the opening of Galaxy Phase II, an extension to the Galaxy Macau, which opened on May 27, 2015. 41 Source: Company filings, Macao DSEC Length‐of‐Stay of Chinese Overnight Visitors 4 & Number of Chinese Hotel Guests in Macao Average Length‐of‐Stay of Mainland Chinese Overnight Visitors in Macao Mainland Chinese Hotel Guests in Macao
(Days) (MM) 8.0 2.5
2.2 7.0 6.8 2.1 2.1 2.1 6.6 2.0 2.0 2.0 6.2 2.0 6.0 5.2
5.0 4.6 1.5
4.0
1.0 3.0
2.0 1.5 1.7 0.5 1.0
0.0 0.0 2011 2012 2013 2014 2015 1Q15 1Q16 2011 2012 2013 2014 2015 1Q15 1Q16 Additional Hotel Capacity and Transportation Infrastructure Will Enhance Hotel Visitation and Average Length of Stay in Macao
Source: Macao DSEC 42 Chinese Day‐Trip and Overnight 4 Visitation To Macao
Mainland China Day‐Trip Visitors to Macao Mainland China Overnight Visitors to Macao
Growth ‐9% +19% +28% 0% +10% +19% ‐3% ‐5%1 Growth ‐1% +21% +16% +11% +10% +9% ‐5% ‐2%1
(MM) (MM)
14.0 12.0
12.0 11.5 11.2 11.0 10.0 9.7 9.2 9.3 8.9 9.7 10.0 8.1 8.8 8.8 8.0 7.3
8.0 6.3 6.9 6.0 5.8 5.2 6.0
4.0 4.0
2.0 2.0
0.0 0.0 2009 2010 2011 2012 2013 2014 2015 TTM 2009 2010 2011 2012 2013 2014 2015 TTM March March 2016 2016
Additional Hotel Capacity and Transportation Infrastructure Will Enhance Overnight Visitation to Macao in the Future
Source: Macao DSEC 43 1. Reflects the percentage change for the trailing twelve month period ended March 31, 2016 compared to the trailing twelve month period ended March 31, 2015 Hengqin Island Expands Critical Mass of 5 Tourism Offerings for Visitors to the Region
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, 2014 and attracted 8M visitors in 2014. It is expected to generate 20 million visits in the future after completion of all phases.¹ —Hengqin’s central business district features an 800,000 square foot convention center —More than 10,000 hotel rooms expected to open over the next five years. Around 5,000 hotel rooms are currently open.
Source: Macau Daily, Zhuhai Daily, Chimelong Group, Hengqin New Area Administrative Committee 1. Phase 1 includes the Hengqin Bay Hotel, the Ocean Kingdom theme park, the Circus World show and a waterpark in the Hengqin Bay Hotel. 44