LVS INVESTOR DAY: PART 1

09/21/11 11:45AM EDT

Some remarks by Sheldon Adelson

  • There is a general consensus that the company should consider making dividend payments.  They are considering it.
  • Won't pursue any developments where they can't get a 20% ROI. Assume any new project would have 30% equity contribution and 70% leverage.
  • Asia expansion is their first priority, however, they will pursue any gaming opportunities that make sense
  • Other jurisdictions all look to MBS to see what they have done there when considering opportunities
  • Spain: Madrid or Barcelona is their location site of choice. Think that a resort in Spain would draw 1BN people that live within a 5 hour flight.  Before they make any investments in Europe, they will thoroughly research the opportunity and feasibility of an integrated resort. They like Spain given the good weather and the high unemployment rate there should garner support from the government - both regionally and nationally.
  • FCPA allegations made by a 'former very disgruntled employee'.  They are fully cooperating with the investigation. 100% certain that he or any other senior executive employee at LVS has never asked their employees to do anything improper. When the lawsuit concludes, he's sure that all of Jacobs allegations will be found to be baseless. In fact, Sheldon asserts that there is no actual allegation of wrongdoing by Sheldon so he can't be found guilty of anything.
  • Predictability and reliability of their revenue and FCF has been greatly improved as they have expanded. Their properties are mostly mature and their success has made them a front-runner for future opportunities.
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