FINAL TRANSCRIPT 2024-07-24

Las Vegas Sands Corp (LVS US Equity)

Q2 2024 Earnings Call

Company Participants
Daniel Briggs, Senior Vice President, Investor Relations
Dr.Wilfred Wong, Executive Vice Chairman, Sands China
Grant Chum, Chief Executive Officer and President, Sands China
Patrick Dumont, President and Chief Operating Officer
Robert G. Goldstein, Chairman and Chief Executive Officer

Other Participants
Brandt Montour, Barclays
Carlo Santarelli, Deutsche Bank
Chad Beynon, Macquarie
Daniel Politzer, Wells Fargo
David Katz, Jefferies
Joe Greff, JPMorgan
Robin Farley, UBS
Shaun Kelley, Bank of America Merrill Lynch
Stephen Grambling, Morgan Stanley
Steven Wieczynski, Stifel Nicolaus

Presentation

Operator
Good day, ladies and gentlemen, and welcome to the Sands Second Quarter 2024 Earnings
Call. At this time, all participants have been placed on a listen-only mode. We will open the floor
for your questions and comments following the presentation.

It is now my pleasure to turn the floor over to Mr.Daniel Briggs, Senior Vice President of Investor
Relations at Sands. Sir, the floor is yours.

Daniel Briggs {BIO 18690154 <GO>}

Thank you, Matthew. Joining me to call today are: Rob Goldstein, Patrick Dumont, Dr.Wilfred
Wong, and Grant Chum.

Today's conference call will contain forward-looking statements. We'll be making these
statements under the safe harbor provision of federal securities laws. The company's actual
results may differ materially from the results reflected in those forward-looking statements. In

Page 1 of 20
FINAL TRANSCRIPT 2024-07-24
Las Vegas Sands Corp (LVS US Equity)

addition, we'll discuss non-GAAP measures. Reconciliations to the most comparable GAAP
measures are included in our press release. We've also posted an earnings presentation on our
website. We will refer to that presentation during the call. Finally, for the Q&A we ask those with
interest to please post one question and one follow-up, so we might allow everyone with
interest the opportunity to participate.

The presentation is being recorded. I'll now turn the call over to Rob.

Robert G. Goldstein {BIO 1759021 <GO>}

Thanks, Dan, and thanks for joining us today. Macau market continues to grow, total gaming
revenue for the market grew 24% in the second quarter of 2024, when compared to the second
quarter of 2023. In addition, mass gaming revenue grew 29% compared to one year ago. We
remain confident in the future growth in the Macau market. I believe Macau market gross
gaming revenue will exceed $30 billion next year and continue to grow year after year.

Our business strategy is predicated on investing in high-quality assets that also have scale.
Macau is and always has been a deeply competitive market. Our strategic approach has
enabled us to compete very effectively. We have designed our capital investment programs to
ensure that we will continue to be the market leader in the years ahead. Our approach allows us
to grow fast in the long term and large share of EBITDA and generate industry-leading returns
on invested capital.

Turning to our results in Macau. We delivered solid EBITDA to the quarter despite the material
disruption that belonged there. SCL continues to lead the market in gaming and non-gaming
revenue and in market share of EBITDA. We will continue -- we will capture high-value, high-
margin tourism over the long term. We have a unique competitive position in terms of scale,
quality, and diversity of product offerings. Upon completion of the second phase of the
Londoner and our Cotai Arena, our product advantage will be more pronounced than ever.

Another strong quarter in Singapore despite ongoing disruption from construction. The
financial results of Marina Bay Sands reflect the positive impact of our capital investment
program and the growth of high-value tourism. The growing appeal of Singapore as a
destination is enhanced by robust entertainment and lifestyle event calendars. As we complete
the balance of our investment programs, there will be a considerable runway for growth.

Thanks for joining our call. I'll turn it over to Patrick now, and then we'll go to Q&A. Patrick?

Patrick Dumont {BIO 17945397 <GO>}

Thanks, Rob. Macau EBITDA was $561 million. If we had held as expected in our rolling
program, our EBITDA would have been higher by $4 million. When adjusted for lower than
expected hold in the rolling segment, our EBITDA margin for the Macau portfolio properties
would have been 32.1% or down 80 basis points when compared to the second quarter of
2023. Context here is important. Our margins at Londoner were directly impacted by the
disruption of the Londoner Grand renovation. We closed the casino at 1,500 keys out during the
quarter.

Page 2 of 20
FINAL TRANSCRIPT 2024-07-24
Las Vegas Sands Corp (LVS US Equity)

The margin at the Venetian was 38.2%, and we expect margin improvement as the Venetian
Cotai Arena comes back online later this year, and as visitation to the market and growth in
unrated play in the market both increase in the future. Margin at the Plaza and Four Seasons
was 40%. We are now deep into our Londoner Grand renovation program. We plan the
completion of the first tower by year-end 2024, and of the second tower by May of 2025. The
Londoner Grand Casino has been closed since May and is scheduled to reopen in December.
As these products come online between the end of 2024 and the first half of 2025, our
competitive position will be stronger than ever. We expect meaningful EBITDA growth and
margin expansion in the future.

Now, turning to Singapore, MBS' EBITDA came in at $512 million. Our strong results reflect the
impact of high-quality investment in market-leading products and growth in high-value tourism.
Had we held as expected at our rolling play segment, EBITDA would have been $64 million
lower. Had we held as expected in our rolling play segment, MBS margin would have been at
48% or 220 basis points higher than the second quarter of 2023. While we have substantially
completed the original $1 billion refurbishment program at MBS, we are still in the initial stages
of realizing the benefits of these new products.

Tower gaming at Marina Bay Sands will be offered for the first time at the property in the third
quarter of 2024. The next phase of our capital investment program at Marina Bay Sands is
scheduled to be completed during the second quarter of '25. This will further support growth in
2025 and beyond. Turning to our program to return capital to stake -- to shareholders. We
repurchased $400 million in LVS stock during the quarter. We also paid our recurring quarterly
dividend. We look forward to continuing to utilize the company's capital return program to
increase returns to shareholders in the future.

Thanks again for joining the call today. Now, let's take some questions.

Questions And Answers

Thank you. Ladies and gentlemen, the floor is now open for questions. (Operator Instructions)
Your first question is coming from Joe Greff from JPMorgan. Your line is live.

Q - Joe Greff {BIO 4018774 <GO>}

Good afternoon, guys. Like to start off on Singapore, if we could. I was hoping, can you give us
a sense of maybe how players and visitors, geographically, how they're performing. I guess
more specifically, are you seeing any kind of slowdown from Mainland Chinese visitation or
Mainland Chinese spend into MBS? And was there any more material trend change towards the
end of the 2Q versus maybe what you've seen over the last couple of quarters as that's been
sort of a growing segment?

Page 3 of 20
FINAL TRANSCRIPT 2024-07-24
Las Vegas Sands Corp (LVS US Equity)

A - Robert G. Goldstein {BIO 1759021 <GO>}

Joe, as you know in the past calls, we have a diverse customer base in Singapore. We've got all
of the region, and certainly China is part of that, but we're all over the place, Vietnam, Japan,
Korea, Indonesia, Malaysia. So, I don't think we saw much difference in the past year, except
obviously the seasonality is in play in Q2. But our business in Singapore, the only thing I would
say really has impacted it is we keep self-inflicting wounds by finishing our building. And it's
near the end, finally, after it feels like a long time.

But despite seasonality, despite the difficulties of construction, Tower 3, tower gaming, we
continue to move forward towards $500 million plus quarters. And diversity of visitor tours is
very clear to me, where they're coming from. They're coming from everywhere. We've not seen
a slowdown in China. We just simply see the same business we've seen in the last couple
quarters, which is solid. But it's also solid from all over the region.

So, Singapore keeps moving forward. I think you'll see a real important transition probably in
the early part of Q2, when the building is ready, full bore, complete, and tower gaming is intact,
all the suites are intact. We're really playing the game with one hand behind our back right now,
and still delivering $2 billion plus run rates. So, I feel very good about our prospect. I'll say we're
probably the most, not probably, it is the most, the largest-earning EBITDA building in the
history of gaming. So -- and it continues to get stronger. We think it's a -- we said before, we
think our goal is $2.5 billion out of Singapore. And I think you'll see it happen in the oncoming
years.

Q - Joe Greff {BIO 4018774 <GO>}

Great. And then, people have not really asked me a question about Macau. I think Macau's self-
sufficient or speaks for itself. But Rob, Patrick, maybe you can give us an update on any
development opportunities, specifically Thailand. And I'm not sure there's much to add to
what's going on in New York.

A - Patrick Dumont {BIO 17945397 <GO>}

So, first off, I think the great news is we're very ready to develop new ground and developments
in new jurisdictions. We're very excited about it. Rob, the team, I spent a lot of time looking at
opportunities for our company to expand and grow new jurisdictions.

As you know, we were spending a lot of time in New York. We've been spending a lot of time in
Texas. We've been looking at Thailand. I think Thailand is a very interesting opportunity. The
market there is very strong for different types of tourism. And I think depending on the way it's
set up and the opportunity that's there, in terms of structure, it could be very interesting for us.
We love the market as a place to source customers. We think the tourism -- our quality there is
quite high. If you go and visit, you'll have a great experience there, and we'd love to be part of
it. So, if Thailand becomes available, we'd be very interested. But I think it's early days yet. I
think we've been spending time there, along with the rest of our industry, looking to see if we
could be helpful to that process. And we're waiting and seeing what happens.

Page 4 of 20
FINAL TRANSCRIPT 2024-07-24
Las Vegas Sands Corp (LVS US Equity)

Q - Joe Greff {BIO 4018774 <GO>}

Thank you, guys.

A - Robert G. Goldstein {BIO 1759021 <GO>}

Thank you, Joe.

Operator
Thank you. Your next question is coming from Stephen Grambling from Morgan Stanley. Your
line is live.

Q - Stephen Grambling {BIO 16882899 <GO>}

Hey. Thanks. I appreciate the comments on the Londoner Grand renovation impacting margins
in Macau, but can you get back to 2019 levels in the current environment as that comes through
and ramps up? Or do we need to see some change either in growth in the market or the
competitive and promotional environment to get back there?

A - Patrick Dumont {BIO 17945397 <GO>}

So, a couple of things and I think this is really important to note. Macau market has always been
super competitive. From day one it's been a very competitive market and we've been very
effective in the way that we compete because we have an investment-driven model.

So, if you go back to pre-pandemic, if you go back in 2010, it was a very competitive market.
And in fact, I remember when the premium mass segment didn't exist, and when it started
people -- Rob can reference this as well, some other people in the room can as well, when there
was no premium mass segment, it was really rolling volume and mass play. And the market has
always evolved over time but the one thing that's been consistent is that our company has
driven success through investment and through leading and non-gaming amenities, and to be
fair, innovating on the gaming side as well.

And so, when you look at our performance, if you go to Page 14 in the slide deck, you can kind
of see what happened in the quarter. So, the Venetian Macau did $262 million of EBITDA in the
quarter at a 38.2% margin, and it's missing about half its volume of unrated play. So, just with
the arena out, which is also a very valuable amenity to drive premium mass performance, look
at the strength of the performance of the Venetian.

The same thing's true in the Plaza. Look at what the Four Seasons did, 40% margin, $100 million
of EBITDA. So, when we look at the Londoner, we basically took out an equivalent property like
Melco or an equivalent property to Wynn Palace. We took that capacity out of the market for
ourselves to renovate it. So, for us to put up $550 million in the quarter, in my mind, this is a
great result because we know that we have a limiter in place. We're missing one of a significant
portion of what is ultimately going to be one of the best properties in Macau if not the best
property.

Page 5 of 20
FINAL TRANSCRIPT 2024-07-24
Las Vegas Sands Corp (LVS US Equity)

And if you look at the success of the Londoner right now, if you look at the Wynn premium per
day on the table side, the Londoner is the second best in our system. So, in Macau. So, when
you think about that, the model has been proven, the investment has been validated, now we're
going to open up the better half hopefully by the end of the year in major part. Suddenly the
limiters are going to come off. So, in my mind, this is a very positive investment for us and we'll
get to the margins. We're already doing it at other properties.

It's just a function of renovation because we're carrying all the costs now associated with the
shuttered casino and 1,500 rooms. So, the Londoner impact is really one half of it's working. You
see the performance, you see the slot win, you see the slot performance win per unit, you see
the table win performance, you look at the hotel performance and the non-gaming amenity
performance. And then you look at the side that's shut and you realize that's the better side but
we're carrying all the costs. The potential in the future is really there. We feel very strong about
the potential for the margins to reach where we need to go.

And just remember, pre-pandemic, we were at 35%, 36% EBITDA margin on a whole-
normalized basis business in aggregate. So, we're -- we'd like to believe we're in a good spot.
We're competing effectively, we have great assets, we're investing for the future, and when
we're done, we're going to have the newest and best products in the market. So, we feel very
strongly about the path that we're on, it's just going to take a little bit of time to get there.

A - Robert G. Goldstein {BIO 1759021 <GO>}

The only structural change Steve we need is getting open, okay? The market is doing $30
billion plus next year. We're going to have the two most important assets in the market,
speaking to each other. I mean, strategically, we're going to have Londoner and Venetian
having 7,400 keys between them, the full power of the Cotai Arena, all the amenities between
those two. I think those buildings will be very, very intertwined and give us, by far, $2 billion plus
assets speaking to each other.

If Parisian and Four Seasons and Sands keep doing what they're doing, we will be at $3 billion
plus, and Singapore will get $2 plus billion. I believe that sometime in the near future, we'll have
the highest EBITDA creation in this company's history without Las Vegas. So, I'm pretty
confident that Londoner will perform and outperform the expectations, but I also think it
enhances Venetian, because the back and forth of those two buildings, they're very similar.
Huge retail, huge suite capacity, entertainment, retail, F&B.

They just -- they're much bigger and better than anything else in that market for making money.
And I think when those come online next year, if you add these results today to another $150
million out of Londoner, all of a sudden, you're looking at $3 billion plus of annualized EBITDA.
That's how we view the market. And margins being what they are, making EBITDA is still the
most important thing, and we will get there.

Q - Stephen Grambling {BIO 16882899 <GO>}

So, maybe as a quick follow-up. On capital allocation, you've noted being consistent with
capital return, and it sounds like you're confident in a ramp from here in Macau and really
growing in MBS, yet the stock is near the lows during the pandemic. So, what's the tolerance to

Page 6 of 20
FINAL TRANSCRIPT 2024-07-24
Las Vegas Sands Corp (LVS US Equity)

be maybe not as consistent and actually being more aggressive with capital allocation or even
rethinking about the leverage profile, at least in the near term?

A - Patrick Dumont {BIO 17945397 <GO>}

So, I think first off, we have said this before, we see meaningful value in both equities. Where
this stock is trading doesn't make any sense to us, both on a historical basis and how we view
the value of our company and how we look to invest and grow. So, we're going to continue to
repurchase stock. As you saw, we did the last couple of quarters. We feel fairly strongly about
the value of our business and we're going to continue to do it.

Look, I think, for us, we're very focused on being shareholder friendly. We were a very
shareholder friendly company in the past. We're a shareholder friendly company today. We're
going to continue to do that. That's our goal. And I think that the nice thing is that as we
complete the Londoner, two things are going to happen. We're going to have less CapEx and
more free cash flow. And to be fair, a more productive asset base. And so, hopefully we'll have
the opportunity to use that cash flow to return it to shareholders. So, we're going to look to do
that and continue what we've been doing. But we agree with you. We think where the stock is
today is not reflective of our long-term value.

A - Robert G. Goldstein {BIO 1759021 <GO>}

And also, if we do invest in new opportunities, that's not in the near future. So, in New York,
Texas, Thailand in the years ahead in front of us. So, lots of room to invest money if we plan to.

Q - Stephen Grambling {BIO 16882899 <GO>}

Thank you.

A - Daniel Briggs {BIO 18690154 <GO>}

Thanks, David.

Operator
Thank you. Your next question is coming from Robin Farley from UBS. Your line is live.

Q - Robin Farley {BIO 1501494 <GO>}

Great. Thanks. Two questions. One is, can you share some thoughts on, there's a lot of concern
about tariff impact on the Chinese economy next year. Just is there any way to help us think
about that broadly? How you're thinking about -- you have a lot of CapEx being up and running
in the market next year, which should certainly position you well, but just sort of thinking about
the broader impact there. Thanks.

A - Robert G. Goldstein {BIO 1759021 <GO>}

Page 7 of 20
FINAL TRANSCRIPT 2024-07-24
Las Vegas Sands Corp (LVS US Equity)

When you say tariff impacts on the Chinese -- so the U.S., the new President, whoever he or she
may be, I see. I don't think we want to talk about it for two reasons. One, we don't know what's
really going to happen nor do we know the impact. Obviously, the Chinese economy speaks for
itself. It's been a struggle this year. I think it hopefully just gets better and we see more
improvement.

The big thing in our business is the 2 million plus visitors we're lacking quarter on quarter.
Nobody hurt us, and that's just today. I don't think we should comment on politics or what's
going to happen, the test is we don't know. But obviously, the biggest miss for our company,
which is both for scale and quality, we lose 8 million annualized visitors, it hurts us more than
anybody else. So, we'll leave it there, I don't want to get into the political realm of who's going
to do what to who and why.

Q - Robin Farley {BIO 1501494 <GO>}

Okay. Fair enough. Thanks. And then, the other question, you already commented on your
interest in continuing share repurchase. Looking at the rate that you did this quarter, you'd be
mostly through your remaining authorization at the end of this quarter. Is that -- when we think
about your appetite for continuing beyond that, is that -- if you could just comment on that.
Thanks.

A - Patrick Dumont {BIO 17945397 <GO>}

Yes. I think if you look at our prior practice, you can see that we've always been focused on
return of capital both through share repurchases and dividends, and that our Board has been
very supportive of trying to create shareholder value through the return of capital. So, as our
current authorization gets used up, we'll go back to the Board and we'll have a discussion about
how we want to allocate capital. But the Board has been very supportive of trying to enhance
shareholder returns over time.

Q - Robin Farley {BIO 1501494 <GO>}

Okay. Thank you.

A - Daniel Briggs {BIO 18690154 <GO>}

Thanks, Robin.

A - Robert G. Goldstein {BIO 1759021 <GO>}

Thanks, Robin.

Operator
Thank you. Your next question is coming from Carlo Santarelli from Deutsche Bank. Your line is
live.

Page 8 of 20
FINAL TRANSCRIPT 2024-07-24
Las Vegas Sands Corp (LVS US Equity)

Q - Carlo Santarelli {BIO 15158307 <GO>}

Hey, everyone. Good evening or good afternoon. If you could -- I mean, I know this is probably
a difficult question, but if you think about --

A - Robert G. Goldstein {BIO 1759021 <GO>}

Then don't ask it.

Q - Carlo Santarelli {BIO 15158307 <GO>}

I hear you.

A - Robert G. Goldstein {BIO 1759021 <GO>}

Long time.

Q - Carlo Santarelli {BIO 15158307 <GO>}

So, the question was -- maybe it's not as difficult as I preempted it to be. But when you guys
think about the rooms that are out of service at Londoner and those customers and recapture in
your existing portfolio, whether you're able to recapture them in Venetian, Parisian, or
elsewhere, what do you think is actually the delta in what you're missing from those rooms
being offline, i.e., How much of that shortfall that's being generated there relative to historical
periods is actually elsewhere in the portfolio versus how much do you think is just exiting the
system and maybe showing up at competitors?

A - Robert G. Goldstein {BIO 1759021 <GO>}

Right. Before I give this question to Mr.Chum, we woke up during this call in the middle of the
night in Macau. I wanted to also reference the fact that the disruption in the size of the carrying
labor, well you've been in these buildings before, when buildings are under construction,
impacts in both Londoner 1 and 2. I want to be clear that the disruption isn't just limited to our
current Londoner 2, Londoner 1, which is a beautiful building also feels the pain.

Grant, would you answer the question about the rooms in the delta and how you see that?

A - Grant Chum {BIO 19752597 <GO>}

Yes. Thanks, Rob. I think, first of all, yes, the performance definitely was impacted by the Phase II
renovation on the Sheraton site. But actually, despite that, you referenced the fact that we
obviously worked hard to shift the patronage to other properties in the portfolio, and the team
was actually incredibly successful at that. We actually reached the record high in any quarter on
non-rolling drop, as well as record high in any quarter on slot handle.

Page 9 of 20
FINAL TRANSCRIPT 2024-07-24
Las Vegas Sands Corp (LVS US Equity)

So, in terms of gaming volumes, I think we've managed to sustain the volumes overall. However,
within the mix, I think what you do lose is some of that base mass, which is Pacifica Casino was
primarily positioned. And also, what you also can see in the numbers is the impact of the loss of
the rooms impacting the cash hotel revenues, because obviously, when you have fewer rooms,
we are yielding accordingly. And when you lose that cash revenues from the hotel side, because
you have reduced inventory and we need to shift the customers to other properties on the
casino side, that clearly impacts not just EBITDA, but it's a high flow-through segment --
business segment. So, it obviously impacts the percentage margin as well.

Q - Carlo Santarelli {BIO 15158307 <GO>}

Great. Thank you. That's helpful. If I could, just one quick follow-up. Sorry. Go ahead, Rob.

A - Robert G. Goldstein {BIO 1759021 <GO>}

Just wanted to know, do you have a dollar amount on the cash room sales lost in the quarter?

A - Grant Chum {BIO 19752597 <GO>}

I'm sorry. Rob?

A - Robert G. Goldstein {BIO 1759021 <GO>}

I was asking if you could give us a number for the dollar amount we lost in cash room sales for
the closure of Londoner.

A - Grant Chum {BIO 19752597 <GO>}

If you look at the actual reduction in cash revenue for -- versus Q1, then you're probably looking
at the range of around $15 million, $20 million impact. Although you can't simply add that back
because you've also got to consider that's a net impact of shifting more rooms into some
customer segments and then having fewer rooms to sell. So, it's a net impact that's probably
not as high as that, but if you're looking at pure cash revenues, then that's the range of impact.

A - Robert G. Goldstein {BIO 1759021 <GO>}

Carlo sorry, you're the second question was, go on.

Q - Carlo Santarelli {BIO 15158307 <GO>}

Yes. The second question was just more of a technical question. And I get it, luck could go both
ways, but this is the fourth quarter in a row where hold in Singapore has -- and the VIP side has
been very strong. And I think when you look at the last four quarters, it's close to $30 billion of
volume at an almost 4.4% win percentage. It feels a little bit more structural, and I know in your
add back math, you guys are obviously dinging yourselves for a much lower hold. Structural, is
there any thought of perhaps changing what that metric is as the normalized hold for that
property going forward?

Page 10 of 20
FINAL TRANSCRIPT 2024-07-24
Las Vegas Sands Corp (LVS US Equity)

A - Robert G. Goldstein {BIO 1759021 <GO>}

It's a great question, and one we still have time on. And I think what you should realize, I think
you do realize is, the world's changing in baccarat for two reasons. One, I think it gives us a
better way of quantifying what the hold percentage should be, but also we've put games on the
floor, I'll call it prop bets or side bets, that change the hold percentage in baccarat, and your
comment is spot on. We're debating how high we can take it. The team there feels it's
understated, and you're right, we keep dinging ourselves quarter-to-quarter.

And perhaps in the near future we'll address that because clearly something is happening here,
but again, the smart table opportunity, which we're deep into now, coupled with the game
changes. And baccarat has been a pretty predictable game for many years, a player, a banker, a
tied pair. It's changing dramatically.

We were there a few months ago, and it was shocking to see how much money they bet on the
prop bets. No different than the Super Bowl, where you don't just bet the winning team, you bet
every 3,000 side bets, which drives the pair way up. We believe that's in play in Singapore.
We're not ready today, but we're coming close to a decision this year, perhaps, to address that
very issue. Because you're right, the team would argue that's something in play, and it's not
simply better fortunes, it's better mathematics that's being made, and the ability to assess those
mathematics through smart table, et cetera.

Patrick, do you want to add to that?

A - Patrick Dumont {BIO 17945397 <GO>}

Yes, sure. It's the right question to ask. We've been following this for a while. Some of it
depends on what Rob said or it depends on what Rob said, which is the additional wagers that
are available on the game mix that we have on the floor at the time. But it's also, you have to
understand propensity. And so, you have to observe empirically what people are going to do
before you can make that decision. So, you'd argue that our theoretical is higher than this. But
we're going to continue to look at it, and we'll make adjustments as necessary when we think
the statistics warrant it.

But you're right, it is a very significant adjustment and one that we're going to continue to look
at. But our game mix has changed. The availability, as far as Rob calls them, prop bets, but really
high-vol bets are on the floor now in a very different way than they had been previously, both
pre-pandemic and even a year ago. And the patron uptake is very high. And so, that is adjusting
the way the mix on the floor is being exhibited through gaming win. And so, we're going to
continue to take a look at it, and we'll make adjustments when we feel that it's appropriate. But
it's a very good question to ask. There's more there.

Q - Carlo Santarelli {BIO 15158307 <GO>}

Thank you, everybody. Thank you.

A - Daniel Briggs {BIO 18690154 <GO>}

Page 11 of 20
FINAL TRANSCRIPT 2024-07-24
Las Vegas Sands Corp (LVS US Equity)

Thanks, Carlo.

A - Robert G. Goldstein {BIO 1759021 <GO>}

Thanks, Carlo, as always.

Operator
Thank you. Your next question is coming from Shaun Kelly from Bank of America. Your line is
live.

Q - Shaun Kelley {BIO 15912731 <GO>}

Hi. Good afternoon, everyone. For Grant or the team, just wanted to ask, if you could get a little
more color on just what you think is happening in sort of underlying visitation to the market. I
think you captured it well in your Slide 19. But we saw or noted a bigger sequential deceleration
than we typically see in the second quarter. And my question for you is twofold. Just one, what's
driving that? Is it macro? Is it something you're seeing or hearing out there? And I guess just as
importantly, is it continuing at all into Q3? Or what's your expectation for this to -- this pattern to
possibly continue? Thanks.

A - Robert G. Goldstein {BIO 1759021 <GO>}

Wilfred -- Grant -- Wilfred, you want to take that one? Wilfred's next.

A - Dr.Wilfred Wong
Yes. Thanks, Shaun, for those question. Yes, I think you're right. The visitation recovery rate has
actually reduced. So, that's actually taking account of seasonality when you compare the
visitation recovery versus the second quarter of 2019, we're about 79%. But we were as high as
90% -- 85% to 90% in the past six months in the past two quarters.

So, clearly there has been, I think, more than just a seasonal slowdown. And that's particularly
prominent in the visitation outside of Guangdong. So, that does impact -- I think Rob referenced
it earlier, it does impact, I think, the base mass business, especially the I'm Ready to Play. We
don't know exactly why, but I think that is a clear feature of this quarter, and it does feed into, as
we said, the base mass segment.

Q - Shaun Kelley {BIO 15912731 <GO>}

Thanks, Grant. And then, just as a follow-up, I think you also talked about -- I mean, obviously, I
think you mentioned a number of times that the market is always competitive, always
promotional. Could you just talk about your own promotional allowance or cadence this
quarter? Was it a little higher? Did you need to reinvest a little bit more? I think, on our math,
that was possibly the case. Or is it all just mix? Just kind of how did you see it play out? And
kind of what you -- how much you're reacting to versus how much are you kind of letting go on
market share just because it's not your game?

Page 12 of 20
FINAL TRANSCRIPT 2024-07-24
Las Vegas Sands Corp (LVS US Equity)

A - Patrick Dumont {BIO 17945397 <GO>}

Hey. One thing -- I just want to say one thing, and then I'll turn it over to Grant. So, just note that
the visitation is very important. And you referenced Slide 19 and the fact that there's 2 million
visitors missing that were here pre-pandemic. We are geared for scale, and that scale is very
high margin for us because of the volumes. And so, our mix looks different and our margins
look different and our reinvestment looks different because of the shift of business between
non-rated and rated play. So, that's a very important thing when you look at our results and you
consider what we're doing today. The mix of business has changed for us pre-pandemic, post-
pandemic. So, that's one thing.

The other thing is, I would also like to highlight that if you look at the margins of our overall
operations, they're consistent with prior performance. And when that unrated play returns and
the volumes return of premium mass play, then our margins should improve. So, yes, we look at
reinvestment rates, but we also look at the total business. We like to understand how much
money we're actually making on net. So, when you look at the business overall, our margin
performance and our competitive positioning is actually quite good given where things are. But
I'll turn it over to Grant for some additional detail.

A - Grant Chum {BIO 19752597 <GO>}

Yes. Thanks, Patrick. Yes, I think it's a mixture. Firstly, the business mix point that Patrick
referenced. And secondly, because we were closing Pacifica Casino and getting ready for that,
yes, there is, for a period of time, a high level of reinvestment as we prepare for that shift, which
as I talked about earlier, we did so very successfully, especially into the Parisian, but also the
other properties. So, those are the main factors affecting the reinvestment and the overall
margin mix.

But I think even though there are fluctuations from quarter-to-quarter, day to day, even in terms
of tactical, I think we're very clear on our strategy, which is that we will compete on the quality
and the scale of our asset base. And of course, at this point in time, we're hampered because
we have a number of our key assets out. But when those assets come back online, really from
Q4 this year into 2025, we absolutely intend to be competing on that basis. Because at that
point, we not only have, I think, scale we always had, but the sheer quality of product that we'll
have at that point at scale. I think that will be the fundamental difference from what we had
before, and we intend to make full use of that in terms of competing for the market.

Q - Shaun Kelley {BIO 15912731 <GO>}

Thank you, everyone.

A - Daniel Briggs {BIO 18690154 <GO>}

Thanks, Shaun.

A - Robert G. Goldstein {BIO 1759021 <GO>}

Page 13 of 20
FINAL TRANSCRIPT 2024-07-24
Las Vegas Sands Corp (LVS US Equity)

Thanks, Shaun.

Operator
Thank you. Your next question is coming from Chad Beynon from Macquarie. Your line is live.

Q - Chad Beynon {BIO 15499101 <GO>}

Afternoon. Thanks for taking my question. On Singapore, which has been consistently strong for
several quarters, it appears that there's still some quarterly volatility. I think last quarter, we
talked about some big events in the first quarter that drove non-gaming and obviously VIP play.
As we think about the back half of the year, can you help us kind of square what seasonality
should look like and if there are any big events that are booked on the calendar in Singapore
that could drive additional non-gaming or VIP business? Thanks.

A - Patrick Dumont {BIO 17945397 <GO>}

So, a couple of things. So, typically, 2Q is our trough quarter in the year. And so, you saw that in
Singapore this quarter. As a practical matter, we were also out of keys because of the renovation
in Tower 3. So, across the back half of the year and into Q1 of next year, all of that stuff's going
to come back. So, the limiters are going to come off. And so, if you look at the tower gaming
that we're adding, you look at additional salons that are coming back online, some of the
renovated gaming areas that are coming back, we're finally going to hit full stride in that
building.

So, even though we put up this quarter and last quarter, which are, I think, the two highest of all
time, we have more room to go. We're not operating with full capacity. And so, right now, when
we look at Singapore, we see strength in the market. We've geared ourselves to focus on high-
value tourism, which is coming into Singapore at a very high level. We are the premier place to
visit from an amenity standpoint, entertainment, food and beverage, and we're benefiting from
it. And our hospitality is now second to none, which we spent a lot of years working on, and
we're finally there. So, we're going to start to see this asset continue to grow and outpace.

In terms of the calendar up and coming, I can't point to anything other than Formula 1. That
would be fitting the category you just laid out. Formula 1 happens every year. It's a great event.
It's something that's good for Singapore. Our patrons really enjoy it, and we look forward to its
success. But in terms of calendar, unless Grant has something in mind, I can't think of anything
other than that right now that's worth mentioning.

A - Grant Chum {BIO 19752597 <GO>}

Yes, that's the main one. Yes.

Q - Chad Beynon {BIO 15499101 <GO>}

Okay. Great.

Page 14 of 20
FINAL TRANSCRIPT 2024-07-24
Las Vegas Sands Corp (LVS US Equity)

A - Robert G. Goldstein {BIO 1759021 <GO>}

You have to recognize how this market is so powerful and getting better by the day. And in the
past Q2 was always the weakest quarter in seasonality. But still, what's happening in Singapore
is almost unheard of in our industry. I mean, everything's coming together, converging that
thing, and we're doing these numbers again with capacity constraint. When that goes away, the
market will continue to thrive, whether it's F1 or Taylor Swift or whosoever coming next. It's just --
those events are very additive. But that place as a market just becomes more and more
desirable by the day, you see by the visitation and the quality of visitation. So, the entertainment
will come, but I think our ability will speak for itself.

Q - Chad Beynon {BIO 15499101 <GO>}

Okay. I appreciate it. And then I'm going to ask you to put on your economist hat again. Not
looking out to future years, but this year, obviously, the RRR cut could bring some more money
back into consumers' pockets in China. Just wondering, in prior cycles, how long that usually
takes for it to trickle down? Obviously, we've seen a nice little improvement in some of the July
foot traffic. I don't think it would happen that fast. But is this something, if it's kind of working in
terms of some stimulus, you could start to see it in the third or fourth quarter here, just in terms
of spend per play trends? Just wondering if you could kind of opine on what we've seen in
prior cycles. Thanks.

A - Patrick Dumont {BIO 17945397 <GO>}

So, this is a fascinating question. One thing I'll tell you, this was the highest volume we ever had
in premium mass and slots in a quarter. So, clearly, like, something positive is happening. I think
if -- you said that the economy was frothy and doing incredibly well, that we'd be doing better, I
think that might be a fair statement. You could say that.

But in terms of timing or specific economic actions, there are so many different things that
could happen that may influence it. We have no idea. I mean, this isn't anything that we can
comment on or have a view on, other than that we're hopeful that there will be further
economic growth and further beneficial economic activity around the Greater Bay Area, and
hopefully, we'll be the beneficiaries of that. But in terms of specific comments around timing or
things of that nature, it's not something we can really do.

Q - Chad Beynon {BIO 15499101 <GO>}

Thanks, Patrick. Appreciate it.

A - Daniel Briggs {BIO 18690154 <GO>}

Thanks, Chad.

Operator
Thank you. Your next question is coming from Brandt Montour from Barclays. Your line is live.

Page 15 of 20
FINAL TRANSCRIPT 2024-07-24
Las Vegas Sands Corp (LVS US Equity)

Q - Brandt Montour {BIO 15756329 <GO>}

I just wanted to follow up, maybe with Grant or anyone, on Shaun's question about visitation.
And maybe just thinking about what's going on there. I know that you don't have a crystal ball
for the future, but in the 2Q, do you think macro was the biggest factor? Is there still
infrastructure friction there with flights to non-Guangdong, particularly? Or is there something
else that you think is at play as well?

A - Grant Chum {BIO 19752597 <GO>}

Yes. Thanks, Brandt, for the question. Yes, I don't have specific reasons why we have a slowdown
in the recovery rate for non-Guangdong. I think what you can say is there is a segment
bifurcation here where the premium segments are still doing incredibly well. And you can see, I
think it's on Slide 18 on Dan's pack, actually this is the highest spend per visitor arrival since the
COVID recovery began of any quarter.

So, clearly, at the premium end, the strength of spending is very high. But at the same time, the
-- I think the lower price points in terms of say the slot performance is also incredibly strong. So,
those two factors drove record high volumes in our non-rolling drop and slot handle. But in the
middle, especially the base mass tables, especially unrated, that is highly correlated to the
strength of visitation and it just wasn't as strong this quarter, even if you adjust for seasonality.
So, I think we can explain how the segments have performed, but we don't know exactly why
the visitation base isn't recovering as fast in the middle in terms of that base mass visitation.

Q - Brandt Montour {BIO 15756329 <GO>}

Great. Thanks for that, Grant. And then on the disruption, the renovation projects, if we were to
try and gauge the level of disruption from these projects in the third quarter versus the second
quarter, I know you lose the casino floor for a whole quarter versus a half a quarter. Can you
maybe give us some finer points on what else is going to be offline in the third quarter versus
the second quarter, room count, et cetera?

A - Patrick Dumont {BIO 17945397 <GO>}

It's good. Go ahead, Grant. No, go ahead, please.

A - Grant Chum {BIO 19752597 <GO>}

Yes, the disruption will actually increase from a room perspective, so we're operating around
2,500 keys at Sheraton in the second quarter on average over the quarter. And we expect to be
down to about 1,300 on average across the third quarter, obviously a higher number of keys in
the first half of the quarter and finishing up with fewer keys. And as you said, we will have a full
quarter of Pacifica Casino closure versus 60%, 65% of the quarter in the second quarter. So, yes,
the disruption impact will actually increase during the third quarter.

Q - Brandt Montour {BIO 15756329 <GO>}

Page 16 of 20
FINAL TRANSCRIPT 2024-07-24
Las Vegas Sands Corp (LVS US Equity)

Perfect. Thanks, everyone.

Operator
Thank you. Your next question is coming from David Katz from Jefferies. Your line is live.

Q - David Katz {BIO 5852295 <GO>}

Afternoon, everyone. Thanks for taking my question. I wanted to go back to the repurchases
and just take a little bigger picture look, right? Just thinking about the factors, obviously the
stock and where it is, is one of them. But when we look at your capabilities, there are some
maturities out there. In the future, there's obviously the issue of the float. At the current run rate,
that shrinks the float, and that's a consideration that some companies think about. If you could
just sort of walk us through how you're thinking about those other issues in view of all of them,
that would be helpful. Please.

A - Patrick Dumont {BIO 17945397 <GO>}

So, all very good questions. All things we talk about all the time, consider with the Board and
we think about frequently. I think the key thing for us is, we always look to invest for growth. So,
when you think about capital allocation, our primary conversation is how do we grow this
business? We had a question earlier about new jurisdictions. We're looking at them. If you look
at our Las Vegas sale, the fundamental driver of that was our ability to reallocate capital to faster
growing markets and new growth opportunities.

And I think our investments in Macau and Singapore will prove out, and that will ultimately allow
us to grow those businesses, create additional cash flow, which ultimately will be used for either
new growth or shareholder return. And so, when you look at our balance sheet, we think being
investment grade is incredibly important. We think it provides us with a strategic advantage. It
reduces our cost of debt capital, which impacts our overall cost of capital and makes the
financing of new projects more efficient and creates better returns for equity. And also, to be
fair, we think when we go to new jurisdictions, it puts us in a more competitive position because
we have the financial capability to execute projects we're proposing. And so, all of these things
are very helpful for us as we grow our business.

When it comes to capital return, I think the idea of shrinking the share count is something we've
talked about previously, where we think there's a benefit to doing so. We think there is a
positive gearing towards share repurchases. We've been very aggressive over the last couple of
quarters. We'd like to continue to shrink the share count over time. And to be fair, we're also a
dividend payer. We think that's helpful to shareholder returns. As an S&P 500 member, we think
it's good to have a dividend as well. So, I think, we have the free cash flow to continue return of
capital. We're very happy about that, given our investment opportunities. We have the balance
sheet strength to be able to develop the new jurisdictions. And so, I think you're going to see a
balance between growth and our ability to return capital over time.

I think the nice thing is, when we're done with the Londoner and we're done with some of the
other -- with these major innovation projects in Singapore, given the growth that we're seeing,
we'll have the ability hopefully to return more capital and we'll have the ability to increase our

Page 17 of 20
FINAL TRANSCRIPT 2024-07-24
Las Vegas Sands Corp (LVS US Equity)

program and benefit shareholders. So, you'll see us do that over time as our business continues
to operate and grow. And so, I think the idea of shrinking the share count, I think we're in a
good position to do it. I think we have a lot of liquidity out there in the market. We have very
strong ability to execute. So, I think we're in good shape in terms of our program and the way
that we approach it.

Q - David Katz {BIO 5852295 <GO>}

Thank you. Appreciate it.

A - Daniel Briggs {BIO 18690154 <GO>}

Thanks, David.

Operator
Thank you. Your next question is coming from Dan Politzer from Wells Fargo. Your line is live.

Q - Daniel Politzer {BIO 18717856 <GO>}

Hey. Good morning, everyone or good afternoon, everyone. Thanks for taking my questions.
The first one on Singapore, the ADR was very impressive. Trends there seemed overall pretty
good despite a subdued visitation. Can you talk about, are you starting to see the benefits of
the existing CapEx that you've put into the ground so far? And should we think about any
disruption as it relates to Tower 3 that -- leading up to the completion next year?

A - Robert G. Goldstein {BIO 1759021 <GO>}

Thank you. Yes, the -- obviously, the money we put into the building thus far has done very well.
You can see the results. So, we're getting $2 billion plus run rate. We're still under construction.
There's more to go. Yes, Tower 3 is disrupted because we don't have a product from a room --
tower gaming isn't there. I mean, we're doing very well there, but again, I referenced earlier, we
have one hand tied behind our back and trying to get through it.

So, the road ahead in Singapore looks very positive to us. We think $500 million, $550 million,
$600 million a quarter is in reach in the near future. And as we referenced earlier, once the
entire building is complete in '25, I think we'll see better numbers than ever out of Singapore.
It's a very, very rosy picture in Singapore. And yes, the CapEx we've deployed there is paying off
very well, and we think it's going to continue getting stronger in time.

And as for ADR, while it's relevant, our cash sales are not the drivers. The drivers is our casino
business, especially our non-gaming casino drop, and the table stock rupture. But it's a very
positive picture. The disruption is real for the balance of the year in the Q1 and the Q2. But once
that burns off and the tower game opens with the full complement of suites, I think you're going
to see Singapore just continue to be stronger and stronger.

Q - Daniel Politzer {BIO 18717856 <GO>}

Page 18 of 20
FINAL TRANSCRIPT 2024-07-24
Las Vegas Sands Corp (LVS US Equity)

Got it. Thanks. And then as far as it relates to the Macau property portfolio, obviously there's a
lot of CapEx going into Londoner. As it relates to the other properties there, is there anything
that we should be thinking about as you start to wrap up Londoner sort of later this year? Or
should we expect 2025 to be pretty much disruption free there?

A - Robert G. Goldstein {BIO 1759021 <GO>}

Yes, good point. Londoner will wrap up again in 2025. We should note that we are going to
undergo, there was a misunderstanding, perhaps one call, about what happens in Venetian. We
are going to rehab some of the rooms in Venetian because we always do. But it's typical, you
won't see it in the numbers the building will be hidden from the public view by doing the floor-
by-floor.

Traditional way you approach these things in our industry. So, we will undergo a renovation of
the room product at Venetian next year at the closure of Londoner renovation. Four Seasons
pretty much is done. And then we'll sit and see what we want to do with those things in Parisian
and perhaps in Sands, but nothing beyond that you think about for the time being.

Q - Daniel Politzer {BIO 18717856 <GO>}

Got it. Thanks so much.

A - Daniel Briggs {BIO 18690154 <GO>}

Thanks, Dan.

Operator
Thank you. Your next question is coming from Steve Wieczynski from Stifel. Your line is live.

Q - Steven Wieczynski {BIO 7475423 <GO>}

Yes. Hey, guys. Good afternoon. So, Grant, you've been asked a question on visitation twice
now. I'm actually going to try to ask it a third time. So, if we look at Slide 20, it shows that the
group visitation was, I think we've done about 1.3 million visitors in May and June so far. So, I
want to ask more about kind of what's going on with the group side? And just trying to figure
out, maybe has it -- do you think Macau has essentially gotten maybe too expensive and is
pricing certain groups out of the market? And I hope that kind of makes sense.

A - Grant Chum {BIO 19752597 <GO>}

Yes. Thanks for the question. I think the two groups is a broader supply chain issue and the
change in consumer habits, not just applicable to the Macau market, but to all the key markets
that were significant to group markets prior to COVID.

I think the other aspect that I should have mentioned and perhaps I could get Wilfred to give
his perspective as well is actually during this period, we also have a series of significant

Page 19 of 20
FINAL TRANSCRIPT 2024-07-24
Las Vegas Sands Corp (LVS US Equity)

announcements on policies that would boost visitation over time, even though in this current
quarter, the impact may not be prominent, ranging from individual visitor scheme expansion to
other types of visa relaxation. So, I think we need to bear that in mind that things are actually
moving extremely positively on the policy side to support future growth in visitation.

Wilfred, maybe you want to add to that?

A - Dr.Wilfred Wong
Sure. I think the government, both at the Macau level and at the national level, is monitoring the
situation. And that's why you see the recent announcement that there's an additional 10 cities
that people that qualify for IVS. And if you look at Macau, traditionally about 55%, 60% of the
visitors use the IVS scheme. And this time, they added 10 cities, which has close to 60 million
population. So, you're increasing that catchment area. And I think the other measures, such as a
faster and nationwide application for business visa will also benefit Macau. So, it will take time
for these policies to be promulgated, fully promulgated, and known in these cities. So, we're
expecting some positive impact in the months to come.

Q - Steven Wieczynski {BIO 7475423 <GO>}

Okay. Great. Thanks, guys. That's all for me. Appreciate it.

Operator
Thank you, ladies and gentlemen. This does conclude today's conference call. You may
disconnect your phone lines at this time, and have a wonderful day. We thank you for your
participation.

This transcript may not be 100 percent accurate and may contain misspellings and other
inaccuracies. This transcript is provided "as is", without express or implied warranties of any
kind. Bloomberg retains all rights to this transcript and provides it solely for your personal, non-
commercial use. Bloomberg, its suppliers and third-party agents shall have no liability for errors
in this transcript or for lost profits, losses, or direct, indirect, incidental, consequential, special or
punitive damages in connection with the furnishing, performance or use of such transcript.
Neither the information nor any opinion expressed in this transcript constitutes a solicitation of
the purchase or sale of securities or commodities. Any opinion expressed in the transcript does
not necessarily reflect the views of Bloomberg LP. © COPYRIGHT 2024, BLOOMBERG LP. All
rights reserved. Any reproduction, redistribution or retransmission is expressly prohibited.

Page 20 of 20