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 sponsorship opportunities.

• Diversified business model includes live and historical racing, wagering services, and regional gaming, with strong assets in Kentucky, Virginia, and expansion into New Hampshire.

• Consistent growth in Adjusted EBITDA and free cash flow, with 2025 Adjusted EBITDA at $1.2 billion and free cash flow conversion above 50%.

• Disciplined capital management with ongoing investments, strategic acquisitions, and a 15-year track record of increasing dividends.

• Proven management team with deep industry and financial expertise.

Growth strategy and segment performance

• Kentucky Derby leverages broadcast rights, sponsorships, and luxury experiences to expand revenue and international reach.

• Historical racing machines (HRMs) in Kentucky and Virginia support live racing and agricultural industries, with expansion plans in New Hampshire.

• Wagering services led by TwinSpires, the largest US online horse racing platform, with B2B and B2C offerings and technology expansion.

• Regional gaming portfolio includes ten wholly-owned properties and equity stakes in premier casinos, focusing on local market strategies and analytics.

Capital management and shareholder returns

• Over $2.4 billion returned to shareholders since 2015 through dividends and share repurchases, with $429.5 million repurchase authority remaining.

• Target net leverage of 3.0x–4.0x, with flexibility for strategic investments and demonstrated access to attractive debt markets.

• Long-term shareholder value creation with a 10-year CAGR of 13%, outperforming the S&P 500.