Century Casinos, Inc. · NASDAQ:CNTY
Century Casinos — Investor Presentation (March 2018)
54 slides from Century Casinos's investor presentation, March 2018
Slide 1: Century Casinos, Inc.
CENTURY CASINOS, INC. Peter Hoetzinger Co Founder, Co CEO & President March 2018 www.cnty.com 1
Slide 2: International Casino and Entertainment Company
International Casino and Entertainment Company • Developer and operator of mid-market, mid-size casinos in regulated markets world-wide • Focus on entertainment with gaming and attractive non-gaming facilities (urban casino resort concept) • Target markets include locals and tourists • 1,700 coopera
Slide 3: Investment Highlights
Investment Highlights Leading owner and operator of mid-sized casinos worldwide Casinos and new developments located in attractive markets with limited new competition risk Track record of accretive casino developments and acquisitions Longstanding management team with unrivaled international operat
Slide 4: Milestones
Milestones • 1992 Company founded by Co CEOs Erwin Haitzmann and Peter Hoetzinger • 1993 First casino on cruise vessel • 1994 First casino in Colorado Listing on NASDAQ • 2000 Casinos in South Africa (sold in 2009 at approx. 9 x adj. EBITDA) • 2006 Market-entry Canada (Edmonton) • 2007 Market-entry
Slide 5: International Casino and Entertainment Company
International Casino and Entertainment Company • Casinos and off-track betting sites with 4,700 slot machines and 200 gaming tables in – USA (Colorado) – Canada (Alberta) – Europe (Poland, England*) – Argentina (Mendoza) – Luxury cruise vessels *) in development (opening in Q2 2018) 5
Slide 6: Current Operations - Portfolio Overview
Current Operations - Portfolio Overview Cruise Ships & Canada United States Poland Developments Other Cruise Ship Century Mile Racetrack Century Casino & Hotel Century Casino & Hotel Casinos Poland(1) Agreements – 13 ship- and Casino - Edmonton - Edmonton – Central City based casinos (3) Marriott Ho
Slide 7: International Diversification
International Diversification Edmonton (3) Southern Alberta (17) o Calgary (2) Denver Colorado Springs o o England Poland (5) o o oo o o o o o Argentina o Land-based Casinos (14) Off-track Betting Sites (17) o Ship-based Casinos (13) (2 in development) 7
Slide 8: Canada (Alberta) Overview
Canada (Alberta) Overview • Large gaming market with a moratorium on new gaming licenses Alberta Gaming Market Revenue(1) ($ in CAD MM) Alberta Real GDP ($ in CAD BN) CAGR(2): -1.1% $2,000 $1,844 $1,906 $1,849 $350 $1,827 $1,832 $313.8 $1,800 $1,732 $296.4 $301.5 $290.6 $300 $280.3 $1,600 $588 $671
Slide 9: Century Casino Edmonton
Century Casino Edmonton In Edmonton, Alberta, Canada Wholly Owned Opened in 2006 35 gaming tables, 822 gaming machines 4 restaurants, 2 bars 26 hotel rooms, heated parking garage Showroom and comedy club 9
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Slide 11: Century Casino St. Albert
Century Casino St. Albert 11 miles from Century Casino Edmonton Acquisition closed on October 1, 2016 CAN $27.9 mil total investment 11 gaming tables, 422 gaming machines Restaurant, bar, lounge, banquet for 175 Operational synergies 11
Slide 12: Century Casino Calgary
Century Casino Calgary In Calgary, Alberta, Canada Wholly Owned Purchased 2010, renovated 2011 16 gaming tables, 529 gaming machines 1 restaurant, 4 bars OTB parlor, Family Entertainment Center 1,100 seat showroom, 700+ parking 12
Slide 13: Century Downs
Century Downs North of Calgary, Alberta, Canada 75% ownership, full management control Opened in April 2015 600 gaming machines, electronic tables Restaurant, lounge & bar, event venues 5.5 furlong (0.7 miles) racetrack Off-track horse betting parlor 13
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Slide 15: Century Bets!
Century Bets! Exclusive license for Southern Alberta Pari-mutuel off-track horse betting network Signal to 15 off-track horse betting parlors 100+ racetracks worldwide under contract 15
Slide 16: U.S. (Colorado) Overview
U.S. (Colorado) Overview • Mature and stable gaming market with strong underlying feeder markets (2) Colorado Gaming Market Revenue ($MM) Colorado Real GDP ($BN) $300 $292.5 $290 $286.7 $278.3 $280 $270 $265.9 $260 $257.6 $250 $240 2012 2013 2014 2015 2016 (3) Key Demographics for Colorado Unemploym
Slide 17: Century Casino Cripple Creek
Century Casino Cripple Creek Near Colorado Springs, Colorado, USA Wholly Owned Opened in 1994 6 gaming tables, 443 gaming machines 1 restaurant, 2 bars 21 hotel rooms, 300+ parking 17
Slide 18: Century Casino Central City
Century Casino Central City Near Denver, Colorado, USA Wholly Owned, Opened in 2006 7 gaming tables, 496 gaming machines 2 restaurants, 1 bar 26 hotel rooms, 500 car parking garage 18
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Slide 20: Poland Overview
Poland Overview • Stable gaming market with a strong underlying economy and limited casino licenses Poland Gaming Market Revenue (1) (EUR MM) Poland Real GDP (PLN BN) PLN 2,000 PLN 1,851 PLN 1,799 PLN 1,800 PLN 1,657 PLN 1,720 PLN 1,629 PLN 1,600 PLN 1,400 PLN 1,200 PLN 1,000 PLN 800 PLN 600 PLN 400
Slide 21: Casinos Poland
Casinos Poland Five casinos in major cities in Poland 66.6% ownership stake since April 2013 77 gaming tables, 375 gaming machines High-quality casinos in 4- and 5-star hotels Limited number of licenses Catering to international guests and locals 21
Slide 22: Mendoza, Argentina
Mendoza, Argentina Minority stake in Mendoza Central Ent. Long-term consulting services agreement Main shareholders affiliates of UnoMedios MCE leases slots to Casino de Mendoza MCE receives 43% of slot revenue Potential to grow in Latin America (Brazil) 22
Slide 23: Cruise Vessels
Cruise Vessels Largest independent ship casino operator 13 casinos on luxury vessels 43 gaming tables, 236 gaming machines Maritime Labor Convention 2006 certified 23
Slide 24: Diamond Cruises (China)
Diamond Cruises (China) Glory Sea Home port Shanghai 17 Tables, 20 Slots 1,200 max. passengers 24
Slide 25: South Korea
South Korea tH? Gwangju Busan Be at ° 0 25
Slide 26: Financial Results
Financial Results 26
Slide 27: Operating and Marketing Strategy
Operating and Marketing Strategy Award-Winning Casinos Deliver Outstanding Service • Best Casino in Cost Customer Denver (six years in Management Acquisition a row) Drive Wallet Data Collection • Ranked Best Casino Share in Edmonton (2016) Customer Retention Net Operating Revenue: CAGR 2015 – 2017 C
Slide 28: Per Operating Segment
Per Operating Segment Net Operating Revenue Adjusted EBITDA Corporate and Other, 2% Corporate and Other, -1% Poland, 13% Canada, 39% United Poland, States, 39% 21% Canada, 67% United States, 20% 28
Slide 29: Net Operating Revenue per Quarter 2015 - 2017
Net Operating Revenue per Quarter 2015 - 2017 $45 $41,0 $39,3 $40 $37,9 $37,3 $36,4 $36,3 $35,2 $34,5 $35 $33,5 $32,5 $32,6 $30,4 $30 (in millions) $25 $20 $15 $10 $5 $0 Q1 Q2 Q3 Q4 2015 2016 2017 2015 2016 2017 2015 2016 2017 2015 2016 2017 29
Slide 30: Total Debt : Adj. EBITDA 2009 - 2017
Total Debt : Adj. EBITDA 2009 - 2017 5x 4x 3,0x 3x 2,7x 2,2x 2,2x 2,0x 2x 1,7x 1,6x 1x 0,8x 0,3x 0x 2009 2010 2011 2012 2013 2014 2015 2016 2017 30
Slide 31: Net Debt : Adj. EBITDA 2009 - 2017
Net Debt : Adj. EBITDA 2009 - 2017 1,5x 1,1x 1,0x 0,7x 0,5x 0,5x 0,3x 0,0x -0,5x -0,7x -1,0x -1,0x -1,5x -1,5x -2,0x -2,1x -2,5x -2,6x -3,0x 2009 2010 2011 2012 2013 2014 2015 2016 2017 31
Slide 32: Canada - Segment Results 2016 vs. 2017
Canada - Segment Results 2016 vs. 2017 In USD millions Q4 2016 Q4 2017 Change Net Operating Revenue 12.1 15.2 26% Adjusted EBITDA 4.3 4.9 16% FY 2016 FY 2017 Net Operating Revenue 50.2 57.7 15% Adjusted EBITDA 16.3 18.2 12% 32
Slide 33: USA - Segment Results 2016 vs. 2017
USA - Segment Results 2016 vs. 2017 In USD millions Q4 2016 Q4 2017 Change Net Operating Revenue 7.2 7.7 7% Adjusted EBITDA 1.5 1.6 10% FY 2016 FY 2017 Net Operating Revenue 30.1 32.1 7% Adjusted EBITDA 7.2 8.0 11% 33
Slide 34: Poland - Segment Results 2016 vs. 2017
Poland - Segment Results 2016 vs. 2017 In USD millions Q4 2016 Q4 2017 Change Net Operating Revenue 15.7 15.4 *) -2% *) Adjusted EBITDA 2.4 1.0 *) -59% *) FY 2016 FY 2017 Net Operating Revenue 54.9 59.8 *) 9% *) Adjusted EBITDA 8.1 6.4 *) -21% *) *) Unusually low table hold as well as extra costs an
Slide 35: Consolidated Income Statement and Balance Sheet
Consolidated Income Statement and Balance Sheet In USD millions (except book value per share and ratio) Q4 2016 Q4 2017 Change Net Operating Revenue 36.3 39.3 8% Adjusted EBITDA 6.3 5.4 *) -15% *) FY 2016 FY 2017 Net Operating Revenue 139.2 154.1 11% Adjusted EBITDA 25.8 26.1 *) 1% *) Total Assets 2
Slide 36: Confirmed New Developments
Confirmed New Developments 36
Slide 37: Three New Casino Licenses in Poland
Three New Casino Licenses in Poland SWEDEN • An additional three licenses to operate casinos have been awarded to our subsidiary Casinos Poland Ltd. • Wroclaw, Katowice and Bielsko-Biala MARK • Openings planned for April 2018, total capex below $4m RUSSIA LITHUANIA New Licenses Expected # Expected #
Slide 38: City of Bath, England
City of Bath, England • In June 2017, acquisition of Saw Close Casino Ltd., the holder of a Small Casino Premises License to develop and operate a casino in Bath, England, for $766,000 • Saw Close Casino Ltd. has a 30-year lease for the casino space • $7,000,000 investment for design and fit-out • 1
Slide 39: City of Bath, England
City of Bath, England • Part of a mixed leisure development, including a 147 room four-star hotel and two restaurants • Located in the center of Bath’s evening leisure district, opposite the popular Theatre Royal • Bath is an affluent city in the southwest of England and attracts approx. 5 million t
Slide 40: Racetrack and Casino, Edmonton
Racetrack and Casino, Edmonton • CNTY’s largest and most significant project to-date • Strategically located on Edmonton International Airport land, just off the QE2 highway. Next to 428,000 s.ft. Outlet Center, Golf Club, hotels, restaurants, office buildings • One of multiple development projects
Slide 41: Century Mile Project Location
Century Casino St. Albert Century Casino Casino Yellowhead Northlands Park Palace Casino Grand Villa Casino River Cree Casino Casino Edmonton 25 miles 20 miles Century Mile project 41
Slide 42: Bermuda
Bermuda • Currently no casinos. Bermuda legalized casino gaming in 2014 • In August 2017, Century Casinos submitted an application with the Bermuda Casino Gaming Commission to operate a casino at the Hamilton Princess Hotel & Beach Club under a management agreement with the hotel’s owner • Provision
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Slide 44: Highlights - Summary
Highlights - Summary • Robust operations with organic growth – solid foundation upon which to grow • Existing assets located in markets with stable regulatory regimes and limited new competition risk • Return-focused management team with deep understanding of the markets the company operates in • Su
Slide 45: Confirmed New Developments
Confirmed New Developments 45
Slide 46: Three New Casino Licenses in Poland
Three New Casino Licenses in Poland SWEDEN • An additional three licenses to operate casinos have been awarded to our subsidiary Casinos Poland Ltd. • Wroclaw, Katowice and Bielsko-Biala MARK • Openings planned for April 2018, total capex below $4m RUSSIA LITHUANIA New Licenses Expected # Expected #
Slide 47: City of Bath, England
City of Bath, England • In June 2017, acquisition of Saw Close Casino Ltd., the holder of a Small Casino Premises License to develop and operate a casino in Bath, England, for $766,000 • Saw Close Casino Ltd. has a 30-year lease for the casino space • $7,000,000 investment for design and fit-out • 1
Slide 48: City of Bath, England
City of Bath, England • Part of a mixed leisure development, including a 147 room four-star hotel and two restaurants • Located in the center of Bath’s evening leisure district, opposite the popular Theatre Royal • Bath is an affluent city in the southwest of England and attracts approx. 5 million t
Slide 49: Racetrack and Casino, Edmonton
Racetrack and Casino, Edmonton • CNTY’s largest and most significant project to-date • Strategically located on Edmonton International Airport land, just off the QE2 highway. Next to 428,000 s.ft. Outlet Center, Golf Club, hotels, restaurants, office buildings • One of multiple development projects
Slide 50: Century Mile Project Location
Century Casino St. Albert Century Casino Casino Yellowhead Northlands Park Palace Casino Grand Villa Casino River Cree Casino Casino Edmonton 25 miles 20 miles Century Mile project 50
Slide 51: Bermuda
Bermuda • Currently no casinos. Bermuda legalized casino gaming in 2014 • In August 2017, Century Casinos submitted an application with the Bermuda Casino Gaming Commission to operate a casino at the Hamilton Princess Hotel & Beach Club under a management agreement with the hotel’s owner • Provision
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Slide 53: Highlights - Summary
Highlights - Summary • Robust operations with organic growth – solid foundation upon which to grow • Existing assets located in markets with stable regulatory regimes and limited new competition risk • Return-focused management team with deep understanding of the markets the company operates in • Su
Slide 54: Peter Hoetzinger
Peter Hoetzinger Co Founder, Co CEO & President peter.hoetzinger@cnty.com USA: (719) 689 5813 Europe: +43 664 355 3935 www.cnty.com 54