Century Casinos, Inc. · NASDAQ:CNTY
Century Casinos — Investor Presentation (November 2016)
35 slides from Century Casinos's investor presentation, November 2016
Slide 1: Corporate Presentation
CORPORATE PRESENTATION ! Peter Hoetzinger Co Founder, Co CEO & President November 2016 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 • 1,800 coop
Slide 3: International Casino and Entertainment Company
International Casino and Entertainment Company! • 45 casinos and off-track betting sites with 4,500 slots and 200 tables in – USA (Colorado) – Canada (Alberta) – Europe (Poland) – Caribbean (Aruba) – Argentina (Mendoza) – Luxury cruise vessels 3
Slide 4: International Diversification
International Diversification! Edmonton (2) Southern Alberta (16) ! Calgary (2) Denver Colorado Springs ! ! Poland (8) ! ! Aruba !! ! ! ! ! ! Argentina ! Land-based Casinos (16) Off-track Betting Sites (16) ! Ship-based Casinos (13)
Slide 5: 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 6: Century Casino Cripple Creek
Century Casino Cripple Creek Near Colorado Springs, Colorado, USA Wholly Owned Opened in 1994 6 gaming tables, 445 gaming machines 1 restaurant, 2 bars 21 hotel rooms, 300+ parking 6
Slide 7: Century Casino Central City
Century Casino Central City Near Denver, Colorado, USA Wholly Owned, Opened in 2006 7 gaming tables, 495 gaming machines 2 restaurants, 1 bar 26 hotel rooms, 500 car parking garage 7
Slide 8: Century Casino Edmonton
Century Casino Edmonton In Edmonton, Alberta, Canada Wholly Owned Opened in 2006 34 gaming tables, 794 gaming machines 4 restaurants, 2 bars 26 hotel rooms, heated parking garage Showroom and comedy club 8
Slide 9: ‘Ki i] U
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Slide 10: Century Casino St. Albert
Century Casino St. Albert 11 miles from Century Casino Edmonton Acquisition closed on October 1, 2016 CAN $27.9 mil (approx. 5.8 x EBITDA) 11 gaming tables, 382 gaming machines Restaurant, bar, lounge, banquet for 175 Expect operational synergies 10
Slide 11: 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 Off-track horse betting parlor 1,100 seat showroom, 700+ parking 11
Slide 12: Century Downs
Century Downs North of Calgary, Alberta, Canada 75% ownership, full management control Opened in April 2015 557 gaming machines, electronic tables Restaurant, lounge & bar, event venues 5.5 furlong (0.7 miles) racetrack Off-track horse betting parlor 12
Slide 13: Century Bets
Century Bets! Exclusive license for Southern Alberta Pari-mutuel off-track horse betting network 16 off-track horse betting parlors 100+ racetracks worldwide under contract 13
Slide 14: Casinos Poland
Casinos Poland Eight casinos in major cities in Poland 66.6% ownership stake since April 2013 79 gaming tables, 504 gaming machines High-quality casinos in 4- and 5-star hotels Limited number of licenses Catering to international guests and locals 14
Slide 15: Mendoza, Argentina
Mendoza, Argentina Minority stake in Mendoza Central SA 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 15
Slide 16: Aruba, Caribbean
Aruba, Caribbean The Casino in the Hilton Aruba Resort Management agreement, no investment 12 gaming tables, 176 gaming machines Catering to international guests and locals 365 rooms and suites 16
Slide 17: Cruise Vessels
Cruise Vessels Largest independent ship casino operator 13 casinos on luxury vessels 35 gaming tables, 220 gaming machines Maritime Labor Convention 2006 certified 17
Slide 18: Diamond Cruises (China)
Diamond Cruises (China) Glory Sea Start in summer 2016, home port Shanghai 17 Tables, 20 Slots 1,200 max. passengers 18
Slide 19: South Korea
a South Korea Daegu tH7° Wi usan BF Saat ° ° 19
Slide 20: Financial Results
Financial Results! 20
Slide 21: Income Statement
Income Statement! In USD millions Q3 2016 Q3 2015 Change Net Operating Revenue as reported (GAAP) 34.5 33.5 3% Unfavorable foreign currency impact vs. Q2 2015 0.4 Adjusted and Constant Currency (non-GAAP)* 34.9 33.5 4%! Adjusted EBITDA as reported 6.3 6.7 (7%) Unfavorable foreign currency impact vs.
Slide 22: USA (Colorado) Q3 2016 vs. Q3 2015
USA (Colorado) Q3 2016 vs. Q3 2015! Net Operating Revenue 3%! Adj. EBITDA 5%! Century Casino & Hotel Central City! The economy and consumer sentiment in the greater Denver metro area continue to be strong and we see consumers growing more confident and showing a greater willingness to spend. Double-
Slide 23: Canada (Alberta) Q3 2016 vs. Q3 2015
Canada (Alberta) Q3 2016 vs. Q3 2015! Net Operating Revenue (2%)! Adj. EBITDA (14%)! Century Casino & Hotel Edmonton! Our largest property. Extensive construction and remodel of gaming floor and restaurants/ bars lead to double-digit decrease in table revenue as well as hotel and F&B revenue. Slot p
Slide 24: Poland (Eastern Europe) Q3 2016 vs. Q3 2015
Poland (Eastern Europe) Q3 2016 vs. Q3 2015! Net Operating Revenue 11%! Adj. EBITDA 18%! ! Eight Casinos in Warsaw (2), Krakow, Lodz, Wroclaw, Poznan, Sosnowiec and Plock Strong operational growth, both slot and table play up year-over-year. Player loyalty program very popular at all locations. 24
Slide 25: Ship Casinos and Management Contracts Q3 2016 vs. Q3 2015
Ship Casinos and Management Contracts Q3 2016 vs. Q3 2015! Net Operating Revenue 6%! Adj. EBITDA (57%)! Mein Schiff 1, 2, 3, 4 and 5, Discovery (TUI Cruises)! Wind Surf, Star, Spirit, Star Pride, Breeze and Legend (Windstar Cruises)! Glory Sea (Diamond Cruises, China)! Oceania Cruises and Seven Seas
Slide 26: Net Operating Revenue by Operating Segment
Net Operating Revenue by Operating Segment!
Slide 27: Adjusted EBITDA by Operating Segment
Adjusted EBITDA by Operating Segment!
Slide 28: Net Operating Revenue per Quarter (in USD millions)
Net Operating Revenue per Quarter (in USD millions)! 28
Slide 29: Net Debt to Adjusted EBITDA
Net Debt to Adjusted EBITDA! * Net Debt is calculated as total debt minus cash and cash equivalents. Debt as of Sep 30, 2016 includes $0.5 million related to Casinos Poland, Ltd., $14.9 million related to Century Downs Racetrack and Casino’s long-term land lease, and $42.5 million related to our Ban
Slide 30: Projects in Development
Projects in Development! • $6 million hotel development, Cripple Creek, Colorado • $40 million development of Racetrack and Casino in South Edmonton, Canada 30
Slide 31: Hotel project Cripple Creek, CO
Hotel project Cripple Creek, CO Existing hotel “Best of Cripple Creek” High gaming revenue per occupied room New boutique-style development 32 rooms, including 8 suites Glass elevator, atrium, rooftop bar, lounge VIP player development 31
Slide 32: REC and Racetrack Edmonton
REC and Racetrack Edmonton Successful applicant status in Sep 2016 Approx. CAN $52 million total project cost Edmonton Int’l Airport, one-mile Racetrack 600 gaming machines, parimutuel wagering Restaurant, bar, lounge, entertainment Projected opening end of 2018 32
Slide 33: Century Casino St. Albert Century Casino Casino Yellowhead
Century Casino St. Albert Century Casino Casino Yellowhead Northlands Park Palace Casino Grand Villa Casino River Cree Casino Casino Edmonton Century Mile
Slide 34: Looking Ahead
Looking Ahead! • Robust operations with organic growth • Largest property (Edmonton) newly refurbished, beautiful new VIP casino areas • Newly opened ship-casinos expected to add from Q4 2016 forward • Newly acquired Apex Casino (now Century Casino St. Albert) expected to add from Q4 2016 forward •
Slide 35: Peter Hoetzinger
Peter Hoetzinger Co Founder, Co CEO & President peter.hoetzinger@cnty.com USA: (719) 689 5813 Europe: +43 664 355 3935 35
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