Churchill Downs (CHDN) Investor presentation summary

Investment highlights

• Kentucky Derby is a unique, high-margin asset with record-breaking viewership and social media engagement, driving significant free cash flow and premium experiences.

• Diversified business model includes live and historical racing, online wagering, and regional gaming properties across multiple states, generating strong Adjusted EBITDA and free cash flow.

• Consistent growth in Adjusted EBITDA ($1,159M TTM 3Q'25) and free cash flow, with high conversion rates and yields.

• Disciplined capital management with organic investments, strategic acquisitions, 15 consecutive years of dividend increases, and opportunistic share repurchases.

• Clearly defined growth pathway through luxury live sports, expanded wagering, new venues, and technology partnerships.

Kentucky Derby and live racing

• Kentucky Derby delivers over $400M in economic impact to Louisville, with 374,000 Derby Week attendees and $474M in Derby Week wagering.

• Media reach includes 21.8M peak viewers (8% YoY growth) and 285M+ social media impressions (67% YoY growth).

• Growth catalysts include expanded broadcast rights, international qualifying races, new sponsorships, and premium hospitality investments.

• Ongoing capital projects like Finish Line Suites and Victory Run aim to enhance guest experiences and increase capacity.

Historical racing and gaming operations

• Operates multiple HRM venues in Kentucky and Virginia, with expansion into New Hampshire; HRM capacity approvals up to 9,000 in Kentucky and 5,000 in Virginia.

• HRM venues drive purse contributions, attracting higher-quality racing and supporting the broader horse industry.

• Regional gaming portfolio includes ten wholly-owned properties and equity stakes in Miami Valley Gaming and Rivers Casino Des Plaines.