Uneak White's Personal Brand Exploration Presentation
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Las Vegas Sands - A Strategy for Moving Forward: Macau & Cotai
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2. ď§âŻ Macau-Portuguese authorities first legalized gambling in 1847
ď§âŻ Monopolies controlled by casino owners
ď§âŻ In 1930, first exclusive concession was granted to the Hou Heng Company
ď§âŻ Renovated and refurbished casinos, offered rewards to patrons
ď§âŻ In 1937, the Tai Heng Company was given exclusive rights to industry
ď§âŻ Introduced baccarat and several Western games
ď§âŻ In 1961, the governor designated Macau a âpermanent gaming regionâ
ď§âŻ In 1962, Stanley Ho Hung-sun won a monopoly concession, formed STDM
ď§âŻ Sociedade de Turismo e DiversĂľes de Macau
ď§âŻ In 2002, when STDMâs license expired, Macau opened bidding for operation of
casino games with 3 licenses available
ď§âŻ STDM won an 18-year concession, Wynn Resorts won a 20-year concession, and Las
Vegas Sands (LVS) won a 20-year concession
3. â The steady execution of the business plan we presented in November
2008, including the implementation of our cost savings program, continues
to be our primary focus as we navigate through the current challenging
economic conditions. We have made notable progress during the quarter on
each of the three basic objectives of our planâfirst, to maximize our cash
flow from current operations in Las Vegas and Macau, including through the
implementation of approximately $470 million in annualized cost savings;
second, to complete on time and on budget our properties currently under
development in Singapore and Bethlehem, Pennsylvania; and third, to
enhance our financial flexibility by advancing opportunities that will increase
â
liquidity and allow us to execute our deleveraging strategy.
â Sheldon G. Adelson, CEO!
4. COMPANY-WIDE OPERATING RESULTS
ď§âŻ Net revenue for the first quarter of 2009 was $1.08 billion, about the same as the first
quarter of 2008
ď§âŻ Operating income in the first quarter of 2009 was $36.3 million compared to $96.6
million in the first quarter of 2008
ď§âŻ Net loss attributable to common stockholders in the first quarter of 2009 was $87.7
million, compared to $11.2 million in the first quarter of 2008, resulting in a diluted loss
per share of $0.14 compared to $0.03 in the prior year quarter
LAS VEGAS 1ST QUARTER OPERATING RESULTS
ď§âŻ Despite weakened economy, both The Venetian Las Vegas and The Palazzo generated
solid cash flow
ď§âŻ While slot handle was down for the first quarter of 2009, table games volumes were
relatively stable, with a drop of only 2.7% compared to the first quarter of 2008
ď§âŻ Our table games win percentage of 20.6% was down significantly compared to 25.3% in
last yearâs first quarter
7. THE VENETIAN MACAU
ď§âŻ Continues to attract large numbers of visitorsâoverall gaming volumes are steady and
have held up well despite the challenging operating environment
ď§âŻ Visits to the Venetian Macau increased to over 6 million during the first quarter of 2009,
a 14.1% increase compared to visits in the first quarter of 2008
ď§âŻ Over 37 million visitors since opening in August 2007
ď§âŻ Gaming revenues for The Venetian were up 7.8% in the 2009 quarter compared to the
same quarter last year, while gaming revenues for the Macau market overall were down
approximately 13% over the same period
ď§âŻ According to the Statistics and Census Service of Macau, visitor arrivals to the Macau
market decreased by approximately 9.6% during the first quarter of 2009 compared to the
same quarter in 2008
ď§âŻ Expect to achieve total annualized cost savings of approx. $270 million across our Macau
operations
ď§âŻ CotaiJet ferry service increased its sailing during the quarter to provide 72 daily sailings
between Hong Kongâs Shun Tak ferry terminal and the Cotai Strip.
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10. ď§âŻ In 1996, the Sands Casino was demolished and
replaced with the Venetian Resort-Hotel-Casino,
which opened in May 1999
ď§âŻ Largest AAA Five-Diamond resort in Americas
ď§âŻ Cost of $1.2 billion
ď§âŻ 4,027 all-suite hotel rooms
ď§âŻ 120,000 sq. ft. of casino space consisting of 130
tables, 1,550 slots, a poker room, and sportsbook
ď§âŻ Grand Canal Shoppes, a world class Venice-themed
shopping mall totaling 440,000 sq. ft. (sold to GGP
in 2004 for approx. $766m gross)
11. ď§âŻ In December 2007, LVS opened The Palazzo
Resort-Hotel-Casino
ď§âŻ AAA Five-Diamond luxury hotel and casino
resort
ď§âŻ Cost of $1.8 billion
ď§âŻ 3,066-suite, 50-floor hotel tower
ď§âŻ 105,000 sq. ft. of casino space consisting of 130
tables and 1,375 slots
ď§âŻ 400,000 sq. ft. Shoppes at The Palazzo, anchored
by Barneyâs New York (sold to GGP in 2008 for
approx. $300m gross)
12. ď§âŻ In May 2004, LVS opened the Sands Macau
Casino in Macau, Chinaâfirst modern Las
Vegas-style facility
ď§âŻ Cost of $265 million
ď§âŻ 298-suite hotel tower
ď§âŻ 229,000 sq. ft. of casino space consisting of 505
tables and 1,250 slots
ď§âŻ Offers four restaurants, two spas, VIP facilities, a
theater, and other high-end services and
amenities
13. ď§âŻ In August 2007, LVS opened the Venetian Macau
Resort-Casino on the Cotai Strip in Macau, China
ď§âŻ Cost of $2.4 billion
ď§âŻ 2,900 all-suite, 39-floor luxury hotel
ď§âŻ 550,000 sq. ft. of casino space consisting of 800 tables
and 2,200 slots
ď§âŻ 1.2 million sq. ft. of convention and meeting space
ď§âŻ 1.6 million sq. ft. of retail space consisting of 300
premium shops, 20 restaurants, a 15,000-seat stadium,
and 1,800-seat arena featuring Cirque du Soleilâs âZAIAâ
14. ď§âŻ In August 2008, LVS opened the Four
Seasons Hotel Macau on the Cotai Strip in
Macau, China
ď§âŻ Cost of approx. $905 million
ď§âŻ 360 rooms, 84-suites, including 19 Paiza
Mansions
ď§âŻ 70,000 sq. ft. of casino space consisting of
100 tables (capacity to go to 150) and 200
slots
ď§âŻ 211,000 sq. ft. of luxury retail space
connected to the mall at The Venetian
Macau
ď§âŻ 25,000 sq. ft. of MICE facilities capable of
hosting small and medium-sized events and
corporate meetings (11 meeting rooms)
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29. ď§âŻ The Cotai Strip is rapidly transforming
Macau into a world-class resort destination
ď§âŻ The Venetian Macao is the first part of
LVSâs strategy of building sufficient critical
mass:
ď§âŻ Anchor property of the Cotai Strip
ď§âŻ Strong visitation and market share trends
ď§âŻ ADR and occupancy far exceeding market
average
ď§âŻ Increased average length of stay
ď§âŻ Sequenced strategy of building critical
mass:
ď§âŻ Four Seasons Macao
ď§âŻ Sites 5 & 6: when financing becomes
available on acceptable terms
ď§âŻ Sites 3, 7, & 8
30. Cost Savings Program at Venetian Macao, Sands Macao and Four Seasons Macao
ď§âŻ Annualized targeted savings > $100 million
ď§âŻ $46 million run-rate savings implemented
through 9/30/08
ď§âŻ Fully integrated into 2009 operating plan
ď§âŻ Labor savings: ~60%
ď§âŻ Expense savings: ~40%
ď§âŻ Headcount
ď§âŻ Labor efficiency
ď§âŻ Benefits
ď§âŻ Transportation
ď§âŻ Utilities
ď§âŻ Partner contributions
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37. â We remain focused on the reduction of our financial leverage. The
complete implementation of our $470 million cost savings program, together
with the future addition of operating cash flows from the openings of our
properties currently under development in Bethlehem, Pennsylvania and
Singapore, will significantly enhance our financial position. We believe we have
opportunities to generate additional liquidity, should we choose to do so,
through the monetization of non-core assets or the sale of minority interests in
certain of our operating assets or subsidiaries in Macau. We remain confident
that our currently available liquidity and capital resources, coupled with our
opportunities to generate additional liquidity, provide sufficient means to
â
complete our current development plans and meet our obligations.
â Sheldon G. Adelson, CEO!