Churchill Downs, Incorporated · NASDAQ:CHDN
Churchill Downs — Merger or Acquisition (November 2014)
17 slides from Churchill Downs's merger presentation, Nov 13, 2014
Slide 1: CDI to Acquire Big Fish Games
EXHIBIT 99.2 EXHIBIT CDI November to Acquire 99.2 13, 2014 Big Fish Games
Slide 2: Forward-Looking Statements
Forward-Looking This Act The update Forward-looking and Important discretionary increasing (including conduct 2that of similar could such compete reader document 1995 forward-looking our expectations factors cause insurance lotteries, iswords, businesses; (the with cautioned income; contains actual
Slide 3: Forward-Looking Statements (cont'd)
Forward-Looking costs in our obtain execute other merger keep loss integrate or horsemen’s 3property Kentucky, enforcement operations; of its associated things, the key agreement; our technology rights; any consents personnel; groups acquisition regulatory Illinois, businesses our of and with Statem
Slide 4: Big Fish Games at a glance
14 the CDI Founded Through By 3,950+ ~560 ~1.15 Source: Big Midnight Fish announced total million Numbers games Big According at Casino its in Castle employees a2002 mobile Fish glance quarterly (3,500+ yesterday has Gummy Fairway Games, byand toStanford emerged in App PC average online Seattle, Dro
Slide 5: CDI Transaction Overview
CDI Transaction Upfront ~$392 to Represents Adjusted Consideration Equal For associated Paid Founder 3Q Key Management Big Retention $200 Projected Financing Segment Expected 5Reporting Closing founder 2014 purposes Fish management will in million to million 1Qconsideration: bonus 2015 employees LTM
Slide 6: The CDI transaction extends Churchill Downs' strategic positions
362014: The Extends 21Positions Provides 4 Strong games CDI transaction Churchill opportunities industry, cultural diversification Churchill continues fit; particularly Strategically 2007-2010: Bloodstock 2010-2014: Youbet.com Riverwalk Recent MobileHotel ResearchDowns’ Downs management viaInformati
Slide 7: The Large Social Casino Market
The Large Social Global $(US$ 2012 7Source: 5.4mobile 2013 in market Casino Mobile/Online Transparency SuperData billions) 2014 and in is online early one 2015 $ 17.4 Research ofgrowth Market 2016 Gaming gaming the largest 2017 stage Research industry Market 2018 genres withSize 2019 isno of growing
Slide 8: Growth in mobile devices is driving game industry growth
Growthsales Digi-Capital Sources: Game http://www.kpcb.com/internet-trends Apple 8Screenshots App in mobile Store are of Global Apple a (iPad) (iPhone) leading devices Games Apprevenue is Google Store Investment driving onsource Play iPhone games Store Review forand industry appiPad 3Q stores 2014 g
Slide 9: Big Fish Achieved Strong Bookings Growth
Achieved Big 2010 CAGR $312 2005 Inception <$1 $26 $55 $84 $117 $156 $193 2002 9Source: Fish $1 – LTM 2003 $4 Big is–long-term Games—Annual $9 2004 growing LTM Fish (9/30/2014) 48.2% 2005 Games, 66.3% faster growth 2006 $238 18.9% Inc. than Bookings 2007 in the the $278 2008 games mobile Since 2009
Slide 10: Big Fish Games Top Games and Monetization
Bigand Premium Top Dark PC Description purchase Availability Monetization transactions 10 Fish Games Parables Mobile offers craps Paid customers PC transactions Customers Big Free-to-Play and three games andFish roulette Mobile types that pay Casino payof Casino-style upfront games Casino PCupfront
Slide 11: Big Fish Casino Social Casino Market Share
1113Q/2Q Social –Big Top Mobile in 20.7% 39.8% 10.7 8.8 14.0% 8.6% 8.1% 8.8% Caesars Sources: millions) % Fish 5% 6.9 Social casino 20.6 44.7 & Intera Market AppMtr, Casino growth %Tablet % 8.3 Casino customers ctive %share is was rate Market Distimo, gaining Big Game the ofby~20% F have top Share r
Slide 12: Big Fish Diversified Game Portfolio
112 Big Social Game Largest YTD2 Revenue Premium 45.9% 45.6% 8.5% Free-to-Play Top 1.7% 1.2% 2.3% 7.9% 5.4% 4.8% 4.5% Fairway 9.4% Cascade Dark Cooking 32 Fish F2P Manor 12.7% 29.2% 20.9% Type Concentration Casino Premium Source: contributor YTD Solitaire Gummy Non-Casino Academy has by Paid & Game
Slide 13: Big Fish Approach to Game Development and Marketing
Big A approach development game Data-driven Rigorous, driven Focused Broad Marketing expertise Paid Organic expansion Acquisition opportunities 13portfolio Fish online customer culture Strong on has Expertise to data- Brand Cross-promotion Five and the Big Launch framework both Large, 3rd generate m
Slide 14: Anticipated Game Pipeline
A pipeline Anticipate Gummy Match-3 Players Dungeon Card Vegas 14 collecting Party quality travel Drop! game Boss of heavy Slots new social across and marketing games battling slots the world supports game spend game and to be with revenue in restore early launched 3D historical part growth combat w
Slide 15: Big Fish Games is an Attractive Acquisition
Games Big Deal 15 Fish is industry attractively significantly comfortably is anstrong has attractive is avalued worldwide large financed; accretive acquisition and rapidly to CDI game free remains and development cash growing growth flow conservatively worldwide beginning opportunity and distributio
Slide 16: Appendix
Appendix 16 CHURCHILL Downs
Slide 17: Big Fish Games Supplemental Information: Adjusted EBITDA Reconciliation
BIGincome SUPPLEMENTAL (Unaudited) Twelve September Reconciliation Net Income Interest Depreciation Share Change Other Total 17 FISH Adjusted based charges months tax (expense) in deferred GAMES, 30, provision $24,922 compensation (in &1,235 2014 of EBITDA ending, Amortization thousands) Adjusted in
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