Stock Code: 1928 and Note Stock Codes: 5140, 5141, 5142, 5725, 5727, 5733, 40246, 40247, 40584, 40585 www.sandschina.com From Luxury Duty Free Shopping, Exciting Entertainment and Fabulous Dining to World-Class Hotel Suites and MICE, Come and Discover Everything at Sands China. SANDS CHINA LTD. CONTENTS 1. OVERVIEW 4 1.1 Financial Results Summary 4 1.2 Highlights of 2020 5 1.3 Directors and Senior Management 11 2. BUSINESS REVIEW 18 2.1 Chairman’s Statement 18 2.2 Business Overview and Outlook 20 2.3 Our Properties 26 2.4 Management Discussion and Analysis 33 2.5 Priority Risk Factors 47 2.6 Stakeholder Information 59 3. CORPORATE GOVERNANCE 66 REPORT 3.1 Introduction 66 3.2 Corporate Governance Code Compliance 66 3.3 Board Governance Structure 67 3.4 The Board 68 3.5 Audit Committee 74 3.6 Remuneration Committee 76 3.7 Nomination Committee 78 3.8 Capex Committee 81 3.9 Risk Management and Internal Control 82 3.10 Shareholders 87 3.11 Compliance Disclosures and Other Matters 90 3.12 Directors’ Report 92 4. FINANCIAL STATEMENTS 113 4.1 Independent Auditor’s Report 113 4.2 Financial Statements 117 4.3 Notes to the Consolidated Financial Statements 123 4.4 Financial Summary 193 5. CORPORATE INFORMATION 194 6. CONTACT US 195 7. GLOSSARY 196 In case of any inconsistency between the English version and the Chinese version of this Annual Report, the English version shall prevail. SANDS CHINA LTD. 1.1 FINANCIAL HIGHLIGHTS 2 ANNUAL REPORT 2020 SANDS CHINA LTD. 1.1 FINANCIAL HIGHLIGHTS our Luxurious Hotel Rooms and Suites await you. Sands China operates the largest collection of integrated resorts in Macao. At December 31, 2020, we had 12,005 hotel rooms and suites, 150 restaurants, 2.1 million square feet of retail malls, 1.7 million square feet of MICE space, 4 permanent theaters, a 15,000-seat arena and some of the world’s largest casinos. 3 ANNUAL REPORT 2020 SANDS CHINA LTD. 1.1 FINANCIAL RESULTS SUMMARY • All of our operating segments and business categories were significantly impacted by the COVID-19 Pandemic resulting in materially lower operating results and cash flows from operations. • Total net revenues for the Group were US$1.69 billion (HK$13.08 billion) for the year ended December 31, 2020, a decrease of 80.8%, compared to US$8.81 billion (HK$68.60 billion) for the year ended December 31, 2019. • Loss for the Group was US$1.52 billion (HK$11.81 billion) for the year ended December 31, 2020, compared to a profit of US$2.03 billion (HK$15.83 billion) for the year ended December 31, 2019. • Adjusted property EBITDA loss for the Group was US$428 million (HK$3.32 billion) for the year ended December 31, 2020, compared to adjusted property EBITDA of US$3.19 billion (HK$24.87 billion) for the year ended December 31, 2019. Note: The translation of US$ amounts into HK$ amounts or vice versa has been made at the exchange rate on December 31, 2020 of US$1.00 to HK$7.7526 (2019: US$1.00 to HK$7.7879) for the purposes of illustration only. 4 ANNUAL REPORT 2020 SANDS CHINA LTD. 1.2 HIGHLIGHTS OF 2020 Business During the COVID-19 Pandemic, the Group focused its efforts on reviving local tourism through programs and events such as the Sands Shopping Carnival, in support of the Macao government’s initiative to have locals touring and spending in Macao. Since the gradual ease of the travel restrictions between mainland China and Macao in August, the Group has supported the recovery of tourism by partnering with local small and medium enterprises (“SMEs”) to provide special offers to visitors from mainland China. In addition, the Group has taken advantage during this low visitation period to accelerate the conversion of Sands Cotai Central into The Londoner Macao and has achieved major progress in 2020. The first phase of The Londoner Macao debuted on February 8, 2021 and additional phases will open throughout 2021. The construction of The Londoner Court is now complete and is expected to open in 2021. The Grand Suites at Four Seasons featuring 289 suites also opened in October 2020. The following sets out some of the highlights of the business in 2020: • First in Macao to launch the “Boss Livestream” campaign with Alibaba’s travel platform — Fliggy. Achieved the highest gross merchandise value of all Fliggy livestreams in Macao. • First and only operator in Macao to collaborate on two “Boss Livestreams” with China’s #1 travel platform — Ctrip. o Achieved over 13 million views for both livestreams. o The Venetian Macao achieved the #1 gross merchandise value of overseas hotels for all Ctrip livestreams. o The Londoner Macao boss livestream achieved the #1 viewership among all Ctrip’s “experiential livestream series”. • Three of our properties ranked in the top 3 for total room nights production in Macao for 2020 on Ctrip (1st — The Venetian Macao; 2nd — Sheraton Macao; 3rd — The Parisian Macao). • First in Macao market to launch a digital dual loyalty membership — Sands Lifestyle with Ctrip. • First partner to launch Ctrip’s highest tier membership benefit program — Ctrip Black Diamond x The Londoner Macao. • First and only operator in Macao to enter into a long-term partnership agreement with Ctrip, with the objective of leading Macao’s tourism recovery. • Alipay and WeChat Pay spending recovered significantly during the 4th quarter of 2020, reaching 90% of the prior year’s 4th quarter spend. • First integrated resort in Macao to launch a flagship store on one of China’s top travel platforms — Meituan. • Third consecutive year of hosting “JSTV Countdown Concert” (China’s #1 rated New Year’s Eve Countdown Concert) with JiangSu Satellite TV — China’s leading free-to-air TV network. • First in Macao to launch the exclusive online concert “teamLab SuperNature Macao” with Tencent Music Entertainment — the largest online music platform in China. • Organized the inaugural F.I.T. (Future Imagination Technology) Tech Gala with Youku — China’s leading online video and streaming platform. • Accelerated digital transformation projects due to COVID-19 Pandemic to improve customer experience and safety. o Enabled digital voucher function for hotel room booking, providing flexibility for travelers to determine their travel plan. o Enabled digital redemption function on mobile app in order for guests to enjoy contactless services. o Launched digital ticket distribution channels for “teamLab SuperNature Macao” enabling a contactless end-to-end eTicket solution. 5 ANNUAL REPORT 2020 SANDS CHINA LTD. 1.2 HIGHLIGHTS OF 2020 • Awards: o Alibaba’s travel platform Fliggy — “Best Partner Award — Double 11” — the only company in Macao to be selected to represent “Fliggy’s Super Brands” in the hospitality sector for 2020 Double 11 Campaign. Total gross merchandise value achieved 10 times growth compared to 2019. o Ctrip — “Strategic Forward thinking Award” — the only company in Macao to be selected. o Macao New Media Contest — “Best Designed Content Award”, for the “This is Macao” Content Series which promotes Macao’s tourism recovery. • Hosted a successful three-day Sands Shopping Carnival in August featuring over 500 booths each offering attractive deals to Macao residents. It provided a free business platform for local SMEs and Sands retailers during the pandemic, in support of the Macao government’s Consume for the Economy initiative. • Our Greater China MICE business development initiatives continued as we hosted physical events in 11 key cities including Beijing, Hangzhou, Nanjing, Chengdu, Chongqing, Suzhou, Ningbo, Wuhan, Shenyang, Dalian and Xiamen. Additionally, a Guangdong sales blitz continued to showcase Sands Resorts Macao as Asia’s leading meetings and events destination, reinforcing our MICE product offerings, and highlighting the accommodation, retail, restaurant, entertainment and MICE facilities at the integrated resorts. In an effort to expand our MICE market, Sands Resorts Macao also attended sales events in key markets including Japan, Korea, USA, India and Germany. This included live events pre- pandemic and virtual hybrid events throughout most of 2020 as we successfully navigated travel and border restrictions. The InterContinental Alliance Resorts partnership has continued to flourish in 2020, increasing our geographical exposure and sales efforts in key feeder markets, especially China. It has allowed us to leverage existing sales efforts throughout Greater China, Asia Pacific and the United States. • Participated in Macao Week in Beijing and Dynamic Macao in Qingdao with other major hotel operators in Macao to promote Macao and our hotels to China. • Participated in China International Beauty Expo (CIBE) tradeshow to promote our venue for potential MICE and leisure opportunities within the beauty industry. • The destination events team continued to drive awareness of our integrated resort properties by holding a variety of events. These events included: Seasons of Prosperity (Chinese New Year Celebration 2020); The Parisian Macao’s Eiffel Tower Grand Illumination Chinese New Year Show; teamLab soft opening; stunning festive decorations across the resorts including the spectacular Parisian inverted christmas tree, The Venetian Macao lagoon decorations, and the Place Vendome 3D Light and Sound Spectacular “Magic of Christmas.” • Hosted 237 events including exhibitions, trade shows, conferences and social and government events, as well as incentive groups, attracting approximately 522,000 visitors. 6 ANNUAL REPORT 2020 SANDS CHINA LTD. 1.2 HIGHLIGHTS OF 2020 Visitation The Group’s properties are one of the most visited destinations in Macao, attracting families, business visitors and entertainment seekers from around the world. In 2020, all of our properties, The Venetian Macao, The Londoner Macao (formerly Sands Cotai Central), The Parisian Macao, The Plaza Macao and Sands Macao, attracted a combined total of 30.8 million visitors or approximately 84,000 visitors per day.