Cash Flow, Liquidity and Balance Sheet Optimization Ken Kay Executive Vice President and Chief Financial Officer
Strong Revenue Growth Actual and Analyst Consensus Net Revenue Analyst Consensus $14,000 $12,000 $10,917 $12,623 $10,000 $8,000 $6,000 $4,000 $2,951 $4,390 $4,563 $6,853 $8,381 $9,165 85% Asia $2,000 2007 2008 2009 2010 2Q11 LTM 2011E 2012E 2013E 15% U.S. US Macau MBS Reliable and Predictable Revenue Growth Denotes economic recession in United States. NOTE: Analyst consensus estimates as presented is based on 21 reporting analysts covering the company 1
Strong EBITDA Growth and Expanding Margin Actual and Analyst Consensus Adjusted Property EBITDA Analyst Consensus $5,000 $4,721 $4,000 $3,000 $2,229 $3,031 $3,424 $4,073 89% Asia $2,000 $1,000 $875 $1,064 $1,086 2007 2008 2009 2010 2Q11 LTM 2011E 2012E 2013E 11% U.S. Adj. Prop. EBITDA Margin 30% 24% 24% 33% 36% 37% 37% US Macau MBS Margin Expansion Through Operating Leverage and Economies of Scale Denotes economic recession in United States. NOTE: Analyst consensus estimates as presented is based on 21 reporting analysts covering the company 37% 2
Acceleration of EBITDA and EBITDA Margin Growth Adjusted Property EBITDA and Adjusted Property EBITDA Margin Composition of 2Q11 EBITDA $1,000 $800 $600 $400 $473 29.7% $645 33.8% $739 $746 36.7% 35.3% $902 38.4% 42% 38% 34% 30% Las Vegas 10% Macau 43% Bethle hem 2% Bethlehem 2% Singapore 45% $200 26% 2Q10¹ 3Q10 4Q10 1Q11 2Q11 Adj. Prop. EBITDA Adj. Prop. EBITDA Margin 22% Addition of Marina Bay Sands Drives Acceleration of EBITDA and EBITDA Margin Growth 1. Marina Bay Sands in Singapore opened its gaming floor and a portion of its amenities on April 27, 2010 3
Powerful EPS Trajectory Actual and Analyst Consensus Fully Diluted Adjusted EPS Analyst Consensus $3.00 $2.82 $2.50 $2.30 $2.00 $1.65 $1.83 $1.50 $1.00.87.98.50.00.11.07 2007 2008 2009 2010 2Q11 LTM 2011E 2012E 2013E Fully Diluted Shares (M) 356 394 728 792 805 811 811 811 Strong Revenue Growth + Margin Expansion + Cost Control + Reduced Interest Expense + Elimination of Preferred Dividend NOTE: Analyst consensus estimates as presented is based on 21 reporting analysts covering the company Strong EPS Growth 4
Disciplined Financial Management Actual G&A Expenses as a % of Net Revenue $1,500 14.0% 13.0% $1,200 12.5% 12.0% $900 $600 10.3% 10.8% 11.5% $551 $526 10.0% $683 $818 9.8% 11.0% 10.0% 9.0% 8.0% $300 $230 $319 7.0% 6.0% 2006 2007 2008 2009 2010 2Q11 LTM G&A Expenses G&A as a % of Net Revenue 5.0% Disciplined Financial Management Contributes to Meaningful Operating Leverage 5
Completion of Current Developments Reduces Capital Expenditures 1 $4,000 $3,500 $3,000 $3,562 $3,658 LVS Capex Expectations $2,500 $2,000 $1,500 $2,027 $1,918 $1,491 $1,545 $1,462 $1,000 $893 $500 2007 2008 2009 2010 2Q11 LTM 2011E 2012E 2013E Development Timeline Palazzo Las Vegas Four Seasons Macao Sands Bethlehem Marina Bay Sands Sands Cotai Central Maintenance Capex Development Capex Pre Opening Post Opening Lower Project Capital Expenditures Result in Greater Cash Flow 1. Excludes capitalized interest 6
The Path to Financial Strength Milestones August 2009 Amended VML Credit Facilities November 2009 $3.1BN Sands China IPO May 2010 $1.75BN Project Financing for Sands Cotai Central August 2010 Amended / Extended US Credit Facilities 3Q11/4Q11 Refinanced VML/VOL Credit Facilities November 2011 Plan to Redeem $712MM Pfd. Stock Future Action Refinancing Singapore Credit Facility 2009 2010 2011 2012 Benefits of A Stronger Balance Sheet 1. Lower Cost of Debt 2. Greater Access to Capital 3. Financial Flexibility for the Future 7
Significantly Reduced Leverage Actual and Analyst Consensus Net Debt To LTM EBITDA $10,000 Analyst Consensus 10.0x $8,000 $6,000 $8,282 7.8x $6,885 6.3x $7,180 $6,902 $6,049 8.0x 6.0x $4,000 $2,000 Weighted Avg. Interest Exp. $3,960 3.2x 2.3x 1.8x $729 0.2x 1.0x 2008 2009 2010 LTM 2Q11 2011E 2012E 2013E 6.1% 3.5% 3.9% 4.1% 4.0x 2.0x 0.0x Net Debt + Preferred Stock Leverage Ratio (Net Debt to LTM EBITDA) Net Cash Position in 2013 Without Future Developments or the Return of Cash to Shareholders NOTE: Analyst consensus estimates consist of estimates from Bank of America Merrill Lynch, Credit Suisse, Goldman Sachs, JPMorgan and Morgan Stanley 8
Long Dated Maturity Profile Debt Maturity by Year 1 $4,500 $4,000 $3,500 $3,000 $2,500 $3,995 $217 $1,075 $3,373 $1,609 $2,000 $1,500 $1,000 $500 $1,734 $894 $2,509 $469 $470 $1,760 $545 $435 $105 $399 $400 $400 $400 $58 $12 2011 2012 2013 2014 2015 2016 2017 2018+ MBS SCL USRG LVSC % of Total 4% 4% 5% 16% 37% 32% 1% <1% Long Term and Low Cost Financing in Place 1. Pro forma for announced VML bank facility refinancing and redemption of preferred stock. 9
Meaningful Free Cash Flow Expansion Actual and Analyst Consensus Free Cash Flow 1 $4,000 $3,000 Analyst Consensus $3,126 $2,000 $1,789 $1,000 $774 $1,000 ($154) $2,000 ($1,454) $3,000 $4,000 ($3,664) 2008 2009 2010 2011E 2012E 2013E FCF Yield 2-96.3% -14.7% -0.5% 2.2% 5.2% 9.0% EBITDA Growth and Completion of Property Development Spending Drives Significant Increase in Free Cash Flow 1. Free cash flow denotes cash flow from operations reduced by actual/projected capital expenditures in the respective period. 2. Free cash flow yield reflects free cash flow per basic common share divided by the share price at the end of the respective period. For 2011, 2012 and 2013 the stock price of $47.46 on Sept. 16, 2011 is utilized for this calculation. NOTE: Analyst consensus estimates consist of estimates from Bank of America Merrill Lynch, Credit Suisse, Goldman Sachs, JPMorgan and Morgan Stanley 10
Attractive Liquidity Profile Actual and Analyst Consensus Cash and Sources of Liquidity $10,000 $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $3,805 $572 $3,233 $5,784 $710 $5,074 Analyst Consensus $9,264 $1,125 $6,964 $1,343 $5,545 $5,430 $5,016 $1,698 $1,343 $1,093 $8,139 $5,621 $3,847 $3,923 $4,087 2008 2009 2010 2Q11 2011E 2012E 2013E Cash Undrawn Revolver Cash Balances and Revolver Capacity Provide Substantial Liquidity NOTE: Analyst consensus estimates consist of estimates from Bank of America Merrill Lynch, Credit Suisse, Goldman Sachs, JPMorgan and Morgan Stanley 11
Disciplined Capital Allocation Process Strategic Uses of Capital Capital Allocation Decision Invest in Growth Opportunities with Greater than 20% ROIC Return Return of Capital to Stakeholders Investments in New Development Projects Investments in Organic Growth Projects in Current Property Portfolio Pay Down Debt Declare Dividends Repurchase Shares We Will Target Growth Opportunities With Expected ROIC in Excess of 20% 12
Illustrative IR Development Financing Structure Our capital structure contemplates a 25% 35% equity contribution along with 65% 75% project financing Debt Financing 65% 75% Equity Contribution 25% 35% If successfully structured, equity contributions could be spread over the initial years of the development timeline, thus reducing the need for upfront equity contributions Peak development spending typically occurs in years two through four of the project Equity Cash Needs for IR Development Start Slowly And Build Over Time 13
Company Has Flexibility to Tax Efficiently Repatriate Cash Approximately $450MM of net operating loss carry forwards at our U.S. entities Over $1.0B may be repatriated through a return of capital from Marina Bay Sands Nearly $6.0B of foreign tax credits generated from the Macau gaming tax may be used to offset taxes otherwise payable on repatriation of cash from either Macau or Singapore Significant Flexibility and Minimal Tax Leakage from Repatriation Of Cash to U.S. 14
Conclusion Strong free cash flow generation from operations Sustainable margins Disciplined financial management Strategic approach to capital allocation Capital market transactions have strengthened the balance sheet and reduced financial risk Robust Balance Sheet Including Significant Cash Balances Positions Us For Future Financial Growth 15
Introduction of Mike Leven