Churchill Downs, Incorporated · NASDAQ:CHDN

Churchill Downs — Q2 2025 Earnings Presentation

63 slides from Churchill Downs's earnings presentation, Jul 24, 2025

1. Slide 1: Investor Presentation

   Investor Presentation June 17, 2025

2. Slide 2: Forward-Looking Statements

   Forward-Looking Statements Certain statements made in this presentation contain various “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by the use of terms suc

3. Slide 3: Table of Contents

   Table of Contents  Business Overview and Case for Investing  Segment Overviews: – Live and Historical Racing – Wagering Services and Solutions – Gaming  Capital Management  ESG  Appendix 3

4. Slide 4: Business Overview and Case for Investing

   Business Overview and Case for Investing 4

5. Slide 5: Churchill Downs Incorporated ("CDI") Overview

   Business Overview Churchill Downs Incorporated (“CDI”) Overview We have a unique and diverse collection of entertainment assets that generate high margins with significant Adjusted EBITDA and Free Cash Flow Churchill Downs Historical Racing Wagering Services Gaming Racetrack (“CDRT”) Machines (“HRMs

6. Slide 6: Case for Investing

   Case for Investing Case for Investing Diverse Organic Strong Financial The Kentucky Derby Growth Profile  Iconic and irreplaceable asset  Expansion of HRM entertainment  Strong free cash flow generation venues in Kentucky,Virginia, New with disciplined maintenance Hampshire, and other states capi

7. Slide 7: The Kentucky Derby is Only the Beginning

   Case for Investing The Kentucky Derby is Only the Beginning Live and Historical Racing Gaming Kentucky Virginia Colonial Downs/ Northern Virginia (Dumfries) New Kent Collinsville Emporia Hampton Richmond Vinton Henrico 1. Marshall Yards Racing & Gaming in Kentucky is expected to open in 1Q’26. 2. Ro

8. Slide 8: Strong 2024 Growth & Performance

   Case for Investing Strong 2024 Growth & Performance 11% Annual Revenue Growth from 2023 to 2024 $ in millions $71 $182 $42 $2,734 $2,462 ($23) 2023 Live Live && Historical Historical Racing Wagering Wagering Services Gaming All AllOther Other 2024 2023 Gaming 2024 Racing Services & Solutions & Elimi

9. Slide 9: Strong 1Q'25 Performance

   Case for Investing Strong 1Q’25 Performance 9% Annual Revenue Growth from 1Q’24 to 1Q’25 $ in millions $28 $2 $24 $643 $591 ($2) Live & Historical Wagering Gaming All Other 1Q'25 1Q’24 Gaming 1Q’25 1Q'24 Racing Services & Solutions Wagering … & Eliminations All Other 1% Annual Adj. EBITDA Growth fro

10. Slide 10: One of a Kind Portfolio

    Case for Investing One of a Kind Portfolio Adjusted EBITDA1 Adj. $ in billions EBITDA $0.3 $1.2 Growth: Segment Growth Drivers: Live & Live & Historical Racing: Historical 31%  Virginia HRM acquisition Racing 50% +463%  Kentucky HRM organic investment  Kentucky Derby organic investment Wagering S

11. Slide 11: Project Capital Investments

    Project Capital Investments Project Capital Investments 2025 Target Planned Location – Project Completion Spend ($ Millions) The Kentucky CDRT – Finish Line Suites & The Mansion April 2026 $15-20 Derby Virginia – Richmond (HRM Expansion) 3Q’25 $30-35 Historical Virginia – Henrico (Roseshire – HRM Ve

12. Slide 12: Proven Track Record of Generating Strong Returns on Capital Projects

    Project Capital Investments Proven Track Record of Generating Strong Returns on Capital Projects Initial Cumulative Year of Investment Projected Property1 Investment ($ millions)2 Unlevered IRR Derby City Gaming (HRM) 2018 $154 > 65% Newport Racing & Gaming (HRM) 2020 $36 > 30% Oak Grove (HRM) 2020

13. Slide 13: Disciplined Acquirer & Seller of Strategic Assets

    M&A Investments Disciplined Acquirer & Seller of Strategic Assets Disciplined Acquisitions $ in millions Initial Year of Purchase Implied Asset Investment Price Multiple1 Rivers Casino Des Plaines 2019 $407 < 5x P2E & Exacta2 2022 & 2023 $3,000 7-8x 1. Based on purchase price and 2024 Adjusted EBITD

14. Slide 14: Churchill Downs Racetrack Capital Investments

    Announced Project Capital Investments Churchill Downs Racetrack Capital Investments Create unique, once-in-a-lifetime experiences for guests Significant opportunity remains Create new experiences for guests at all ticketing price points to grow our iconic Remain focused on time-honored traditions th

15. Slide 15: Churchill Downs Racetrack – Finish Line Suites & The Mansion

    Announced Project Capital Investments Churchill Downs Racetrack – Finish Line Suites & The Mansion Renovate the existing Finish Line Suites and The Mansion for the 152nd Kentucky Derby in May 2026  Modernizes 15 existing Finish Line Suites and adds incremental reserved seating - Expands Finish Line

16. Slide 16: Virginia Development Rights

    Announced Project Capital Investments Virginia Development Rights Richmond HRM Expansion Expansion of existing Richmond HRM entertainment venue in Central Virginia  Addition of ~450 HRMs  Total of ~1,200 HRMs upon completion of project Full project complete in 3Q’25 with phased introduction of add

17. Slide 17: Marshall Yards Racing & Gaming

    Announced Project Capital Investments Marshall Yards Racing & Gaming Marshall Yards Racing & Gaming  New HRM entertainment venue located in Southwestern Kentucky in Calvert City at the intersection of I-69 and I-24  Annex of Oak Grove Racing & Gaming  HRM entertainment venue will include: – 250 H

18. Slide 18: Live and Historical Racing Segment

    Live and Historical Racing Segment 18

19. Slide 19: Kentucky Live and Historical Racing Overview

    Live and Historical Racing Segment Kentucky Live and Historical Racing Overview Live Racing KY Historical Racing Facilities Total Segment Key Metrics Churchill Downs Derby City Gaming Home of the $ in millions 2024 1Q’25 Kentucky Derby Derby City Gaming Downtown Turfway Park Racing & Gaming Revenue

20. Slide 20: The Kentucky Derby Overview

    The Kentucky Derby The Kentucky Derby Overview The Kentucky Derby utilizes the magic and mystique of Churchill Downs to create unique experiences for our guests 20

21. Slide 21: The Kentucky Derby - By The Numbers

    The Kentucky Derby The Kentucky Derby - By The Numbers Significant media interest creates long-term support for iconic entertainment event  21.8 million peak viewership1 (8% growth YoY), largest ever NBC peak audience for the Kentucky Derby  17.7 million average viewership1 (6% growth YoY), highes

22. Slide 22: The Celebration Leading Up to the Kentucky Derby

    The Kentucky Derby The Celebration Leading Up to the Kentucky Derby 22

23. Slide 23: The Lead Up to the Kentucky Derby

    The Kentucky Derby The Lead Up to the Kentucky Derby 23

24. Slide 24: A Premier International Sporting & Entertainment Event

    The Kentucky Derby A Premier International Sporting & Entertainment Event Derby Week Revenue Kentucky Derby Growth Strategy Broadcast Other Leverage unique experiences and make Sponsorships & Licensing strategic capital investments  Enhance guest experience to enable pricing differentiation for res

25. Slide 25: Investing Capital in Unique Experiences

    The Kentucky Derby Investing Capital in Unique Experiences Capital Enhance Investments Guest Enable Price to Enable Experience Differentiation Segmentation 2022 Homestretch Club    2023 First Turn Experience    2024 Paddock Project    Starting Gate 2025 Pavilion & Courtyard    Finish Lin

26. Slide 26: Sponsorship Strategy

    The Kentucky Derby Sponsorship Strategy Building relationships with sponsors targeting luxury, lifestyle and technology categories for both onsite experiences and Derby parties around the globe  Partners include Woodford Reserve, SAP, Longines, Ford, Accenture, FanDuel, Sports Illustrated, and Whit

27. Slide 27: International Growth Strategy

    The Kentucky Derby International Growth Strategy Three unique Roads to the Derby for a horse to qualify in one of 20 coveted Derby starting positions United States Japan Euro / Mideast Horses compete for a Horses compete for one Horses compete for one Derby starting position Derby starting position

28. Slide 28: HRM Business

    Historical Horse Racing Machines HRM Business A historical horse racing machine (“HRM”) is a gaming device that uses the results of previously run horse races to approximate the gaming experience of Class II and Class III machines  Top game titles / themes are from Aristocrat, Light and Wonder, Int

29. Slide 29: HRM Entertainment Venues - Kentucky

    Historical Horse Racing Machines HRM Entertainment Venues - Kentucky Nine racing licenses have been awarded by the Kentucky Horse Racing and Gaming Corporation and are each allowed to have a main facility and one “annex” facility with HRMs within a 60-mile radius of the licensed racetrack  CDI hold

30. Slide 30: Churchill Downs Racetrack and Derby City Gaming

    Historical Horse Racing Machines Churchill Downs Racetrack and Derby City Gaming Derby City Gaming & Hotel  Operates as Churchill Downs Racetrack’s ancillary training facility in Louisville, Kentucky  HRM entertainment venue includes: Opened Sep. 2018 Dec. 2023 – Center bar with large format telev

31. Slide 31: Oak Grove Racing, Gaming & Hotel and Marshall Yards Racing & Gaming

    Historical Horse Racing Machines Oak Grove Racing, Gaming & Hotel and Marshall Yards Racing & Gaming Oak Grove Racing, Gaming & Hotel  Located off of Hwy 24 on the KY / TN border  ~55 miles from Nashville, Tennessee (MSA pop. ~2.1 million) Opened Sep. 2020 1Q’26  Near Fort Campbell, the second la

32. Slide 32: Turfway Park Racing & Gaming and Newport Racing & Gaming

    Historical Horse Racing Machines Turfway Park Racing & Gaming and Newport Racing & Gaming Turfway Park Racing & Gaming  Located in Northern Kentucky  ~10 miles to Cincinnati, OH (MSA pop. ~2.3 million) Opened Sept. 2022 Oct. 2020  Opened September 1, 2022  HRM entertainment venue includes: Total

33. Slide 33: Ellis Park Racing & Gaming and Owensboro Racing & Gaming

    Historical Horse Racing Machines Ellis Park Racing & Gaming and Owensboro Racing & Gaming Ellis Park Racing & Gaming  Located off Interstate 69 on the KY / IN border  ~5 miles from Evansville, Indiana Opened 1922 Feb. 2025  Facility includes: – Thoroughbred racetrack – Retail sports betting Total

34. Slide 34: HRM Entertainment Venues - Virginia

    Historical Horse Racing Machines HRM Entertainment Venues - Virginia Virginia statute permits 5,000 HRMs through CDI’s ownership and operation of Colonial Downs Racetrack  Colonial Downs hosts one race day per 100 HRM machines deployed in Virginia with the number of race days increasing as the numb

35. Slide 35: HRM Entertainment Venues – Virginia

    Historical Horse Racing Machines HRM Entertainment Venues – Virginia Western Region Northern Virginia Central Virginia Southern Virginia Virginia Colonial Henrico Location Rosie’s The Rose Richmond Downs County Hampton Emporia Collinsville Vinton New Kent Opened Jan. 2021 Nov. 2024 Jun. 2019 Apr. 20

36. Slide 36: Wagering Services & Solutions Segment

    Wagering Services & Solutions Segment 36

37. Slide 37: Wagering Services & Solutions Overview

    Wagering Services & Solutions Wagering Services & Solutions Overview TwinSpires Horse Racing  The largest and most profitable legal online horse racing platforms in the US1 - Business to consumer offering through TwinSpires - Business to business offering for sports betting platforms  24/7/365 onl

38. Slide 38: TwinSpires Horse Racing Growth Strategy

    Wagering Services & Solutions TwinSpires Horse Racing Growth Strategy TwinSpires Horse Racing TwinSpires Horse Racing and U.S. Online Growth Strategy Wagering have grown significantly since 2019 Grow core TwinSpires horse racing customers U.S.Thoroughbred Horse Racing  Leverage linkage to Kentucky

39. Slide 39: Exacta Growth Strategy

    Wagering Services & Solutions Exacta Growth Strategy Exacta Growth Strategy HRM Expansion Vertical integration enables significant HRM Unit Counts cost saving synergies and game content ~8,500 diversification at CDI HRM properties  Diversify HRM game content to improve customer experience CDI Other

40. Slide 40: New Hampshire HRM Strategy

    Wagering Services & Solutions New Hampshire HRM Strategy Chasers Located in Salem, New Hampshire  Approximately 30 minutes from downtown Boston  The Boston Metro Area (Boston-Cambridge-Newton) has a population of ~4.9 million people Chasers is one of the leading New Hampshire charitable gaming ope

41. Slide 41: Gaming Segment

    Gaming Segment 4l CHURCHILL DOWNS

42. Slide 42: Regional Gaming Properties

    Gaming Segment Regional Gaming Properties Diverse portfolio of gaming properties Strategic Advantages Key Metrics Local approach  Unique brands and marketing strategies  Menus and offerings reflect local tastes $ in millions 2024 1Q’25  Promotions catered to local customer base  Loyal player bas

43. Slide 43: Wholly-Owned Gaming Properties

    Gaming Properties Wholly-Owned Gaming Properties Ten wholly-owned regional gaming properties Slots1 & Video Hotel Retail State Property Acres Tables1 Racetrack Poker / Rooms Sportsbook VLTs1 FL Calder Casino 54 1,070 6 - - - Hard Rock Hotel & Casino IA Sioux City 15 670 16 - 54  IN Terre Haute Casi

44. Slide 44: Equity Investments

    Gaming Properties Equity Investments Rivers Casino Des Plaines (61% Ownership) Miami Valley Gaming (50% Ownership)  Premier location on 21 acres in Des Plaines, IL  Located on 120 acres in Lebanon, OH (North of (~17 mi. from Chicago) Cincinnati, south of Dayton)  ~2,000 positions1,2 (1,520 slot m

45. Slide 45: Capital Management

    Capital Management 45 CHURCHILL DOWNS

46. Slide 46: Capital management philosophy based on creating long-term shareholder value

    Capital Management Capital management philosophy based on creating long-term shareholder value Maintain broad and expedient access to the capital markets  Ideal target is 3.0x-4.0x bank covenant net leverage - willing to go higher for a strategic investment Engage in open and active dialogue with r

47. Slide 47: Capital Projects

    Capital Management Capital Projects Capital Investments Capital: 2024 Actuals 2025 Forecast Maintenance: $84 million $90 - 100 million Project: $463 million $250 - $290 million  Paddock Project at CDRT  Churchill Downs Racetrack  Terre Haute Casino Resort (Indiana) – Starting Gate Pavilion & Cour

48. Slide 48: CDI has returned nearly $2.1 billion of capital to shareholders since 2015

    Capital Management CDI has returned nearly $2.1 billion of capital to shareholders since 2015 Dividends  January 2025 was the 14th consecutive increase in dividend per share  Over $260 million paid to shareholders in dividends since 20151 Share Repurchases  Returned over $1.8 billion to sharehold

49. Slide 49: Churchill Downs Incorporated vs. S&P 500 10-Year Relative Growth

    Capital Management Churchill Downs Incorporated vs. S&P 500 10-Year Relative Growth CAGR 5-Year 10-Year +377% CHDN 8% 17% S&P 500 14% 11% +193% As of June 12, 2025 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20 Jun-21 Jun-22 Jun-23 Jun-24 Jun-25 CHDN S&P 500 1. The graph above reflects 3:1 stock split on

50. Slide 50: Environmental, Social, and Governance

    Environmental, Social, and Governance 50

51. Slide 51: CDI Approach to Environment, Social and Governance ("ESG")

    ESG CDI Approach to Environment, Social and Governance (“ESG”) ESG Committee established to lead ESG initiatives  Cross-functional team led by CFO  CDI’s Nominating & Governance Committee provides oversight to the Committee and CDI leadership regarding CDI’s ESG strategy  Oversight of CDI’s respo

52. Slide 52: CDI Approach to Responsible Gaming

    ESG CDI Approach to Responsible Gaming CDI is committed to promoting responsible gaming at all of our properties and online, for all of our products and services Team Members Customers and Guests We provide the knowledge and skills regarding: We provide information regarding:  Importance of respons

53. Slide 53: CDI Approach to Equine and Jockey Health and Safety

    ESG CDI Approach to Equine and Jockey Health and Safety CDI is committed to protecting and furthering equine and jockey health and safety at all of our racetracks Horseracing Integrity and Safety Act (HISA)  Independent body responsible for implementing national standards for medication usage and r

54. Slide 54: CDI Approach to the Environment

    ESG CDI Approach to the Environment We have ongoing initiatives at our properties:  To lessen energy and water usage  To decrease our carbon emissions  To responsibly manage waste Examples of these initiatives include:  We are committed to installing LED lighting in all of our newly constructed

55. Slide 55: CDI Approach to Social

    ESG CDI Approach to Social CDI is investing in the communities in which we operate  CDI contributes over $5.0 million annually via grants and in-kind donations to over 750 organizations  Each year, CDI donates tickets and experiences to nonprofit fundraising auctions, resulting in > $2.5 million r

56. Slide 56: CDI Approach to Governance

    ESG CDI Approach to Governance Strong Board of Directors – eight highly qualified members that play a vital role in the direction of CDI  6 of 7 directors are independent  Fully independent Audit and Compensation committees  2 of 6 independent directors are women or diverse  Board includes finan

57. Slide 57: Appendix

    Appendix 57 CHURCHILL DOWNS

58. Slide 58: Management Team

    Appendix Management Team Bill Carstanjen Chief Executive Officer  Chief Executive Officer since Aug. 2014; Director since 2015  President and COO, Mar. 2011 – Aug. 2014; COO, Jan. 2009 – Mar. 2011  EVP, General Counsel & Chief Development Officer, July 2005 – Dec. 2008  Former Executive of GE 

59. Slide 59: Board of Directors

    Appendix Board of Directors Alex Rankin Chairman of the Board  Independent Chairman since 2018  Director since 2008  Chairman of the Board of Sterling G. Thompson Company, LLC  President of Upson Downs Farm, Inc.  Chairman of James Graham Brown Foundation Bill Carstanjen  CEO since 2014; Direc

60. Slide 60: Board of Directors (continued)

    Appendix Board of Directors (continued) Daniel Harrington  Director since 1998  Chair of Compensation Committee  President and CEO of HTV Industries, Inc.  Extensive financial, accounting, and Chief Executive experience Karole Lloyd  Director since 2018  Chair of Audit Committee  Former Vice

61. Slide 61: CDI Racetrack Overview

    Appendix CDI Racetrack Overview Churchill Ellis Colonial Presque Isle Turfway Fair Miami Valley Oak Ocean Racetrack Downs Park Downs Downs Park Grounds Gaming Grove Downs Louisville, Western New Kent, Erie, Northern New Orleans, Lebanon, Southwestern Berlin, Location Kentucky Kentucky Virginia Penns

62. Slide 62: Definition of Non-GAAP Financial Measures

    Definition of Non-GAAP Financial Measures Churchill Downs Incorporated (the “Company,” “we,”, “our”) management monitors a variety of key indicators to evaluate our business results and financial condition. These indicators include changes in net revenue, operating expense, operating income, earning

63. Slide 63: Reconciliation from GAAP to Non-GAAP Financial Measures

    Reconciliation from GAAP to Non-GAAP Financial Measures Reconciliation of Comprehensive Income to Adjusted EBITDA 63

Churchill Downs — Q2 2025 Earnings Presentation on 6ix