Churchill Downs (CHDN) Investor presentation summary

Investment highlights

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

• Diversified business model includes live and historical racing, wagering services, and regional gaming, generating strong Adjusted EBITDA and free cash flow.

• Consistent growth in Adjusted EBITDA ($1,205M in 2025) and free cash flow, with high conversion rates and increasing yield.

• Disciplined capital management with organic investments, strategic acquisitions, annual dividend increases, and opportunistic share repurchases.

• Proven management team with a clear pathway for growth through capital investments and expansion into new markets.

Kentucky Derby and live racing

• Kentucky Derby is the longest continuously held major sporting event in the US, with a week-long celebration and significant economic impact ($400M+ to Louisville).

• 2025 Derby achieved 21.8M peak viewership (+8% YoY), 285M+ social media impressions (+67% YoY), and record wagering ($474M for Derby Week).

• Growth catalysts include expanded broadcast rights, primetime Kentucky Oaks, international qualifying races, and new premium experiences.

• Ongoing capital investments at Churchill Downs Racetrack, including Finish Line Suites & The Mansion (2026) and Victory Run (2028), enhance guest experiences and revenue potential.

• HRM venues in Kentucky and Virginia support strong purses and economics for racing and agricultural industries.

Wagering services and solutions

• TwinSpires is the largest and most profitable legal online horse racing platform in the US, offering B2C and B2B services.

• Provides 24/7 wagering on ~165,000 races at 360 tracks globally, with integrated data, streaming, and settlement services.

• Exacta supplies HRM technology to company venues and third parties, with ongoing expansion in multiple states.

• TwinSpires and US online wagering have grown significantly since 2019, with a 61% online handle share in 2025.