3Q F Y 2017 E a rning s C A E S A R S E N T E R T A I N M E N T - - PowerPoint PPT Presentation

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3Q F Y 2017 E a rning s

C A E S A R S E N T E R T A I N M E N T C O R P O R A TI O N

N O V E M B E R 1 , 2 0 1 7

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F

• rwa rd L
• o king Sta te me nts

Ce rta in info rma tio n in this pre se nta tio n a nd disc usse d o n the c o nfe re nc e c a ll whic h this pre se nta tio n a c c o mpa nie s c o nstitute s fo rwa rd-lo o king info rma tio n within the me a ning o f the Priva te Se c uritie s L itig a tio n Re fo rm Ac t o f 1995. Yo u c a n ide ntify the se sta te me nts b y the fa c t tha t the y do no t re la te stric tly to histo ric a l o r c urre nt fa c ts a nd b y the use o f wo rds suc h a s “will,” “ma y,” “pro je c t” o r the ne g a tive o r o the r va ria tio ns the re o f o r c o mpa ra b le te rmino lo g y. In pa rtic ula r, the y inc lude sta te me nts re la ting to , a mo ng o the r thing s, o ur pla ns to ma ximize pe rfo rma nc e . T his info rma tio n is b a se d o n the Co mpa ny’ s c urre nt e xpe c ta tio ns, a nd a c tua l re sults c o uld va ry ma te ria lly de pe nding o n risks a nd unc e rta intie s tha t ma y a ffe c t the Co mpa ny’ s o pe ra tio ns, ma rke ts, se rvic e s, pric e s a nd o the r fa c to rs a s disc usse d in the Co mpa ny’ s filing s with the Se c uritie s a nd E xc ha ng e Co mmissio n. T he se risks a nd unc e rta intie s inc lude , b ut a re no t limite d to , industry a nd e c o no mic c o nditio ns a nd c o mpe titive , le g a l, g o ve rnme nta l a nd te c hno lo g ic a l fa c to rs. T he re is no a ssura nc e tha t the Co mpa ny's e xpe c ta tio ns will b e re a lize d. Yo u a re c a utio ne d tha t fo rwa rd-lo o king sta te me nts a re no t g ua ra nte e s o f future pe rfo rma nc e o r re sults. T he fo rwa rd-lo o king info rma tio n in this pre se nta tio n a nd disc usse d o n the c o nfe re nc e c a ll whic h this pre se nta tio n a c c o mpa nie s re fle c ts the o pinio n o f ma na g e me nt a s o f to da y. Ple a se b e a dvise d tha t de ve lo pme nts sub se q ue nt to this c a ll a re like ly to c a use this info rma tio n to b e c o me o utda te d with the pa ssa g e o f time . T he Co mpa ny a ssume s no o b lig a tio n to upda te a ny fo rwa rd-lo o king info rma tio n c o nta ine d in this pre se nta tio n o r disc usse d o n the c o nfe re nc e c a ll whic h this pre se nta tio n a c c o mpa nie s sho uld c irc umsta nc e s c ha ng e , e xc e pt a s o the rwise re q uire d b y se c uritie s a nd o the r a pplic a b le la ws.

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Use o f No n-GAAP Me a sure s

T he fo llo wing no n-GAAP me a sure s will b e use d in the pre se nta tio n a nd disc usse d o n the c o nfe re nc e c a ll whic h this pre se nta tio n a c c o mpa nie s:

• Adjuste d E

BIT DA a nd Adjuste d E BIT DA Ma rg in

• Pro pe rty E

BIT DA

• CE

C + CE OC, o r e nte rprise -wide fina nc ia l me a sure s In a dditio n, pro je c tio ns re fe rre d to in this re le a se inc lude no n-GAAP info rma tio n. We a re una b le to re c o nc ile the se fo rwa rd-lo o king no n-GAAP me a sure s (Adjuste d E BIT DA, Adjuste d E BIT DA ma rg in, Adjuste d E BIT DAR a nd Adjuste d E BIT DAR ma rg in) to the ir ne a re st GAAP me a sure s b e c a use the ne a re st GAAP fina nc ia l me a sure s a re no t a c c e ssib le o n a fo rwa rd lo o king b a sis. Suc h pro je c tio ns did no t inc lude , a mo ng o the r thing s, the fo llo wing ma te ria l ite ms:

• F

a ir va lue a djustme nts a nd the re la te d inc o me sta te me nt e ffe c ts re q uire d a s a re sult o f c e rta in tra nsa c tio ns c o nte mpla te d in c o nne c tio n with CE OC’ s e me rg e nc e fro m b a nkruptc y;

• De pre c ia tio n e xpe nse o n a GAAP b a sis a s the pro je c tio ns a re pre pa re d a t a muc h hig he r le ve l tha n

GAAP wo uld pre sc rib e ;

• Sto c k c o mpe nsa tio n e xpe nse a s the pro je c tio ns do no t inc lude e xpe c te d future g ra nts; a nd
• Adjustme nts tha t ma y b e re q uire d if future c ha ng e s a re ma de to c o nso lida tio n c o nc lusio ns.

De finitio ns o f the se no n-GAAP me a sure s, re c o nc ilia tio ns to the ir ne a re st GAAP me a sure s, a nd the re a so ns ma na g e me nt b e lie ve s the se me a sure s pro vide use ful info rma tio n fo r inve sto rs, c a n b e fo und o n Slide 4 a nd in the Appe ndix to this pre se nta tio n, b e g inning o n Slide 21.

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I mpo rta nt I nfo rma tio n Ab o ut Pre se nta tio n o f Re sults

On Ja nua ry 15, 2015, Ca e sa rs E nte rta inme nt Ope ra ting Co mpa ny, Inc . file d a vo lunta ry b a nkruptc y pe titio n unde r Cha pte r 11 o f the Unite d Sta te s Ba nkruptc y Co de , re sulting in the de c o nso lida tio n o f CE OC e ffe c tive a s o f suc h da te . As suc h, a mo unts pre se nte d in this pre se nta tio n e xc lude the o pe ra ting re sults o f CE OC sub se q ue nt to Ja nua ry 15, 2015, unle ss o the rwise sta te d, a nd a na lysis o f o ur o pe ra ting re sults in this pre se nta tio n a nd a s ma y b e disc usse d o n the c o nfe re nc e c a ll whic h this pre se nta tio n a c c o mpa nie s inc lude tho se c o mpo ne nts tha t re ma in in the c o nso lida te d CE C e ntity sub se q ue nt to the de c o nso lida tio n o f CE

• OC. "CE

C" re pre se nts CE RP, CGP a nd a sso c ia te d pa re nt c o mpa ny a nd e limina tio n a djustme nts tha t re pre se nt the c urre nt CE C c o nso lida te d struc ture . T hro ug h Se pte mb e r 30, 2016, we a g g re g a te d the o pe ra ting se g me nts within CGP into two se pa ra te re po rta b le se g me nts: CGP Ca sino Pro pe rtie s a nd CIE . On Se pte mb e r 23, 2016, CIE so ld its so c ia l a nd mo b ile g a me s b usine ss (the “SMG Busine ss”) fo r c a sh c o nside ra tio n o f $4.4 b illio n, sub je c t to c usto ma ry purc ha se pric e a djustme nts, a nd re ta ine d o nly its Wo rld Se rie s o f Po ke r (“WSOP”) a nd re g ula te d o nline re a l mo ne y g a ming b usine sse s. T he SMG Busine ss re pre se nte d the ma jo rity

• f CIE

’ s o pe ra tio ns a nd is b e ing c la ssifie d a s a disc o ntinue d o pe ra tio n fo r a ll pe rio ds pre se nte d e ffe c tive in the third q ua rte r o f 2016. Afte r e xc luding the SMG Busine ss fro m CIE ’ s c o ntinuing o pe ra tio ns, CIE is no lo ng e r c o nside re d a se pa ra te re po rta b le se g me nt fro m CGP Ca sino s b a se d o n ma na g e me nt’ s vie w. T he re fo re , CGP Ca sino s a nd CIE ha ve b e e n c o mb ine d fo r a ll pe rio ds pre se nte d to fo rm the CGP se g me nt. Ho we ve r, we a re a lso pro viding c e rta in supple me nta l info rma tio n a s if we ha d c o ntinue d to c o nso lida te CE OC thro ug ho ut the third q ua rte r o f

• 2017. T

his info rma tio n inc lude s b o th sta nd-a lo ne CE OC fina nc ia ls a nd ke y me tric s fo r the third q ua rte r o f 2017, a nd c e rta in fina nc ia l info rma tio n fo r CE C a s if CE OC re ma ine d a c o nso lida te d e ntity during the q ua rte r. T his info rma tio n within this pre se nta tio n ma y b e diffe re nt fro m CE OC’ s sta nda lo ne re sults se pa ra te ly pro vide d due to imma te ria l a djustme nts, ro unding , a nd b a sis o f pre se nta tio n diffe re nc e s. CE C c o mmitte d a ma te ria l a mo unt o f pa yme nts to suppo rt CE OC’ s re struc turing , whic h re sulte d in the re a c q uisitio n o f CE OC’ s o pe ra tio ns whe n CE OC e me rg e d fro m b a nkruptc y o n Oc to b e r 6, 2017. In a dditio n, c o mpe nsa tio n o f ma na g e me nt is in pa rt de te rmine d b y re fe re nc e to c e rta in o f suc h fina nc ia l info rma tio n. As a re sult, we b e lie ve this supple me nta l info rma tio n is use ful to inve sto rs who a re trying to unde rsta nd the re sults o f the e ntire “Ca e sa rs” e nte rprise , inc luding CE OC a nd c o nsiste nt with the ma na g e me nt se rvic e s pro vide d a c ro ss the syste m’ s pro pe rtie s. As a re sult o f the de c o nso lida tio n o f CE OC, CE C g e ne ra te d no dire c t e c o no mic b e ne fits fro m CE OC’ s re sults. T his supple me nta l info rma tio n is no n-GAAP. It is no t pre fe ra b le to GAAP re sults pro vide d e lse whe re in this pre se nta tio n o r disc usse d o n the c o nfe re nc e c a ll whic h this pre se nta tio n a c c o mpa nie s, b ut is use d b y ma na g e me nt a s a n a na lytic a l to o l to a sse ss the re sults o f a ll pro pe rtie s o wne d, ma na g e d o r b ra nde d b y a Ca e sa rs e ntity, re g a rdle ss o f c o nso lida tio n. Additio na lly, the re sults a re no t ne c e ssa rily indic a tive o f future pe rfo rma nc e . Supple me nta l ma te ria ls ha ve b e e n po ste d o n the Ca e sa rs E nte rta inme nt Inve sto r Re la tio ns we b site a t http:/ / inve sto r.c a e sa rs.c o m/ fina nc ia ls.c fm

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Pre -E me rg e nc e Ope ra ting Struc ture 1,2

1. The Caesars Entertainment portfolio of properties operates 47 casino properties in 13 U.S. states and five countries; Does not include all subsidiaries 2. In 2014, CEC and Caesars Acquisition Company (“CAC”) entered into a merger agreement, which was amended and restated on July 9, 2016. 3. CGP, CERP and CEOC are linked together through common ownership of CES – which manages and provides certain corporate and administrative services for all entities 39%

Caesars Acquisition Company (NASDAQ: CACQ)

61%

Majority Ownership 100%

Caesars Enterprise Services (CES)(3)

11% 20% 69%

Caesars Growth Partners (CGP)

• Caesars Interactive

Entertainment

• Bally’s Las Vegas
• The Cromwell
• Harrah’s New Orleans
• Horseshoe Baltimore
• Planet Hollywood Resort &

Casino

• The LINQ Hotel & Casino

Caesars Entertainment Resort Properties (CERP)

• Flamingo Las Vegas
• Harrah’s Atlantic City
• Harrah’s Las Vegas
• Harrah’s Laughlin
• Paris Las Vegas
• Rio All-Suites Hotel & Casino
• LINQ Promenade and High Roller
• Octavius Tower at Caesars Palace

Caesars Entertainment Operating Company (CEOC)

Owned – U.S.

• Bally’s Atlantic City
• Caesars Atlantic City
• Caesars Palace Las Vegas
• Harveys Lake Tahoe
• Harrah’s Lake Tahoe
• Harrah’s Reno
• Harrah’s North Kansas City
• Harrah’s Joliet
• Harrah’s Metropolis
• Harrah’s Council Bluffs
• Horseshoe Council Bluffs
• Horseshoe Hammond
• Horseshoe Southern Indiana
• Horseshoe Tunica
• Tunica Roadhouse
• Harrah’s Gulf Coast
• Harrah’s Philadelphia
• Horseshoe Bossier City
• Harrah’s Louisiana Downs

International

• Alea Glasgow
• Alea Nottingham
• The Casino at the Empire
• Manchester235
• Playboy Club London
• Rendezvous Brighton
• Rendezvous Southend-on-Sea
• The Sportsman
• Emerald Safari

Managed

• Caesars Cairo
• The London Clubs Cairo-

Ramses

• Caesars Windsor
• Harrah’s Ak-Chin
• Harrah’s Cherokee
• Harrah’s Cherokee Valley River
• Harrah’s Resort Southern

California

Caesars Entertainment Corporation (NASDAQ: CZR)

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Ag e nda

Rec ap & Outlo o k

Mar k F r issor a, CE O

Ove r vie w

Mar k F r issor a, CE O

F inanc ial Per fo r manc e

E r ic H ession, CF O

7

Ga ming Co ntrib utio n $29 $525 ($10)-($15) $42 $24 $34 $612

3Q 2017 F ina nc ia l Pe rfo rma nc e

Re c o rd 3Q E nte rprise -Wide Adjuste d E BI T DA Ma rg in

CE C Re sults1

• 1. Does not include CEOC, which was deconsolidated by CEC subsequent to its bankruptcy filing on January 15, 2015
• 2. This information is non-GAAP and is presented for the reasons described on slides 3 and 4, and is reconciled in the Appendix beginning on Slide 21. Horseshoe Baltimore operations were deconsolidated from CEC results effective August 31, 2017.

As a result, the current year does not include a fully comparable operating period in the prior year. Horseshoe Baltimore has therefore been excluded above for analytical purposes and are referred to as "Same Store" in our discussion of results.

Same - Stor e E nte r pr ise - Wide Adjuste d E BIT DA2

$ millions 3Q16 H

• ld

Oper ati ng E xpenses 3Q17 Non- Gami ng R evenue $ millions 3Q17 3Q16 Change YoY Inc r e ase / (De c r e ase ) Ne t Re ve nue s $ 986 $ 986 0.0% Adjuste d E BIT DA $ 303 $ 269 12.6% Mar gin 30.7% 27.3% 345 b ps

E nte r pr ise - Wide Re sults2

$ millions Consolidate d Same -Stor e 3Q17 3Q16

%

3Q17 3Q16

%

Ne t Re ve nue s

$ 2,132 $ 2,113 0.9% $ 2,086 $ 2,033 2.6%

Adjuste d E BIT DA

$ 622 $ 545 14.1% $ 612 $ 525 16.6%

Mar gin

29.2% 25.8% 340 b ps 29.3% 25.8% 350 b p s Gami ng R evenue $2,033 $40 ($11) $10 $14 $2,086

Same - Stor e E nte r pr ise - Wide Ne t Re ve nue 2

$ millions 3Q16 Domesti c Gami ng Other Non-Gami ng 3Q17 R

• oms

I nter national Gami ng

8

We Are …

9

100%

A Simple r Ope ra ting Struc ture

Cae sar s E nte r tainme nt

L AS VEGAS REGIONAL MANAGED, INT ERNAT IONAL , CORPORAT E & OT HER

10 10

Our New Pr

• per

ty Str uc tur e

CAE SARS WIL L CONT INUE T O OPE RAT E AL L 47 PROPE RT IE S UNDE R A CONSOL IDAT E D APPROACH, WIT H 18 PROPE RT IE S SUBJE CT T O L ONG-T E RM L E ASE AGRE E ME NT S WIT H VICI

L E ASE D

► Ca e sa rs Pa la c e L a s Ve g a s ► Ba lly’ s Atla ntic City ► Ca e sa rs Atla ntic City ► Ha rra h’ s Co unc il Bluffs ► Ha rra h’ s Gulf Co a st ► Ha rra h’ s Jo lie t ► Ha rra h’ s L a ke T a ho e ► Ha rra h’ s Me tro po lis ► Ha rra h’ s No rth Ka nsa s City ► Ha rra h’ s Re no ► Ha rve ys L a ke T a ho e ► Ho rse sho e Bo ssie r City ► Ho rse sho e Co unc il Bluffs ► Ho rse sho e Ha mmo nd ► Ho rse sho e So uthe rn India na ► Ho rse sho e T unic a ► T unic a Ro a dho use ► Ha rra h’ s L

• uisia na Do wns

L as Ve gas

► Ba lly’ s L a s Ve g a s ► T he Cro mwe ll ► F la ming o L a s Ve g a s ► Ha rra h’ s L a s Ve g a s ► T he L INQ Ho te l & Ca sino ► T he L INQ Pro me na de a nd Hig h Ro lle r ► Pa ris L a s Ve g a s ► Pla ne t Ho llywo o d Re so rt & Ca sino ► Rio All-Suite s Ho te l & Ca sino

Re gional

► Ha rra h’ s Ne w Orle a ns ► Ho rse sho e Ba ltimo re ► Ha rra h’ s Atla ntic City ► Ha rra h’ s L a ug hlin ► Ha rra h’ s Phila de lphia

Inte r national

► Ale a Gla sg o w ► Ale a No tting ha m ► T he Ca sino a t the E mpire ► Ma nc he ste r235 ► Pla yb o y Club L

• ndo n

► Re nde zvo us Brig hto n ► Re nde zvo us So uthe nd-o n-Se a ► T he Spo rtsma n ► E me ra ld Sa fa ri

MANAGE D

► Ca e sa rs Ca iro ► T he L

• ndo n Club s

Ca iro -Ra mse s ► Ca e sa rs Windso r ► Ha rra h’ s Ak-Chin ► Ha rra h’ s Che ro ke e ► Ha rra h’ s Che ro ke e Va lle y Rive r ► Ha rra h’ s Re so rt So uthe rn Ca lifo rnia

OWNE D

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A Stro ng F ina nc ia l F

• unda tio n

REDUCED ANNUAL FIXED CHARGES BY

$1.6B1

REDUCED ANNUAL INTEREST OBLIGATIONS BY

~$290M2

REDUCED COST OF DEBT TO

4.5%

EMERG ED WI T H

~$2B IN CASH

Note: All reduction metrics measure change from 2014 to a pro-forma YE 2017.

• 1. Includes estimated fixed charges of $420 million interest expense and $640 million in rent.
• 2. Includes Horseshoe Baltimore which is now deconsolidated.

12 12

Our Pla n T

• Ma ximize Pe rfo rma nc e

I nve sting in Ca e sa rs’ infra struc ture to e nha nc e lo ng -te rm va lue I nspiring a sa le s a nd se rvic e c ulture

C O RNERST O NE INIT IA T IVES

I nstituting a c o ntinuo us impro ve me nt-fo c use d

• pe ra ting mo de l

I nvig o ra ting ho sp ita lity a nd lo ya lty ma rke ting pro g ra ms

Ne wly Appo inte d CMO >4,100 Ro o ms Re no va te d YT D Q3 2017 Re ve nue Pe r F T E +3.4% Yo Y Pro mine nt Award Re c o g nitio ns

13 13

23% 21% 20% 20%

2014 2015 2016 3Q17 T T M

NE W MAR KE T ING L E ADE R SHIP

Co ntinuing T

• Drive Ma rke ting

E ffic ie nc y

Chr is Holdr e n

Chie f Ma rke ting Offic e r

MARKET ING EF F ICIENCY

M A RKETIN G S PEN D A S A % O F N ET REV EN UE1

• 1. Domestic owned (non-managed) properties only. Revenue is adjusted to normalize hold impact

14 14

E nha nc ing Our Pro duc tivity With Ne w T e c hno lo g y Pla tfo rms

ROL L ING OUT NE W SYST E MS T O L IF T PE RF ORMANCE AND E MPL OYE E AND CUST OME R SAT ISF ACT ION

Ne w marke ting syste m inc re ase s c usto me r satisfac tio n and re ve nue Ne w financ e platfo rm re plac e s 30+ ye ar o ld syste m and lo we rs c o st Ne w pr

• duc tivity

platfo rm impro ve s c o llabo ratio n and lo we rs lic e nsing fe e s Ne w payro ll and atte ndanc e syste m e nhanc e s se lf-se rvic e ac c e ss and e ffic ie nc y

15 15

E ng a g e d Custo me rs a nd E mplo ye e s

Ca e sa rs Pa la c e a nd Cro mwe ll ra nke d a mo ng the to p US Ca sino s b y USA T

• da y

Re war ds & Re c o gnitio n Co mpany o f the Ye ar at E mplo ye e E ngage me nt Awar ds 25 Ca e sa rs E nte rta inme nt re so rts e a rne d T ripAdviso r’ s 2017 Ce rtific a te o f E xc e lle nc e Re c o gnize d as

• ne o f the 50 Mo st

E ngage d Wo r kplac e s in No r th Ame r ic a by Ac hie ve r s

16 16

Ag e nda

Rec ap & Outlo o k

Mar k F r issor a, CE O

Over view

Mar k F r issor a, CE O

F ina nc ia l Pe rfo rma nc e

E r ic Hession, CF O

17 17

3Q F Y17 Supple me nta l F ina nc ia l I nfo rma tio n: E nte rprise -Wide Re sults

$ millions E nte r pr ise -Wide Same -Stor e 2 3Q17 3Q16 YoY 3Q17 3Q16 YoY

Ca sino re ve nue s $ 1,390 $ 1,393 (0.2)% $ 1,345 $ 1,316 2.2% F &B re ve nue s 389 389 0.0% 386 384 0.5% Ro o m re ve nue s 385 371 3.8% 385 371 3.8% Othe r re ve nue s 226 212 6.6% 226 212 6.6% Re imb urse d Ma na g e me nt Co sts 29 27 7.4% 29 27 7.4% L e ss: Ca sino pro mo tio na l a llo wa nc e (287) (279) (2.9)% (285) (277) (2.9)%

Ne t Re ve nue s $ 2,132 $ 2,113 0.9% $ 2,086 $ 2,033 2.6% Adjuste d E BIT DA 1 $ 622 $ 545 14.1% $ 612 $ 525 16.6%

Marg in1 29.2% 25.8% 340 b ps 29.3% 25.8% 350 b ps

Ke y dr ive r s / statistic s 3Q17 3Q16 YoY 3Q17 3Q16 YoY

Ho ld ra ng e vs. e xpe c ta tio n (millio ns) ($20)-($25) ($5)-($10) ($10)-($15) ($20)-($25) ($5)-($10) ($10)-($15) Ho ld a djuste d E BIT DA $642 - $647 $550 - $555 $87 - $97 $632 - $637 $530 - $535 $97 - $107 Oc c upa nc y 95.2% 94.4% 80 b ps 95.2% 94.4% 80 b ps Ro o m nig hts o ff-the -ma rke t 55,000 37,000 18,000 55,000 37,000 18,000

• 1. Adjusted EBITDA and EBITDA margin are non-GAAP measures. This information is non-GAAP and is presented for the reasons described on slides 3 and 4, and is reconciled on slides 26 to 29.
• 2. Horseshoe Baltimore operations were deconsolidated from CEC results effective August 31, 2017. Enterprise-wide Q3-17 results include two months of Horseshoe Baltimore Net Revenues of

$48 million and Adjusted EBITDA of $10 million. Same Store results exclude Horseshoe Baltimore from both quarters. Horseshoe Baltimore generated $70 million in Net Revenues and $14 million in Adjusted EBITDA in Q3-17 and $82 million in Net Revenues and $20 million in Adjusted EBITDA in Q3-16.

18 18

L iq uidity a nd Ca pe x Re vie w

1. Other reflects CEC and its various non-operating subsidiaries and excludes CERP, CES and CGP. 2. Includes Horseshoe Baltimore, which deconsolidated as of August 31. Post-deconsolidation cap-ex for Baltimore is less than $5M.

September 30, 2017 CERP CGP CES Other(1) Cash and cash equivalents $ 336 $ 1,026 $ 31 $ 122 Revolver capacity 270 150

• Revolver capacity drawn or committed to letters of credit
• Total

$ 606 $ 1,176 $ 31 $ 122

L iquidity ($ millions) Cape x E stimate s ($ millions)

3Q 2017 Actual FY 2017 Low Est. High Est. CERP $ 39 $ 189 $ 201 CGP2 29 150 160 CES 13 72 77 CEC $ 81 $ 411 $ 438 CEOC $ 46 $ 219 $ 232 Enterprise-wide $ 127 $ 630 $ 670

19 19

Re c a p & Outlo o k

Mar k F r issor a, CE O

Ag e nda

Over view

Mar k F r issor a, CE O

F inanc ial Per fo r manc e

E r ic H ession, CF O

20 20

Ca e sa rs E nte rta inme nt Re ma ins We ll Po sitio ne d to Cre a te Value

E xpe c t re ve nue g ro wth a nd e ffic ie nc y initia tive s to drive furthe r impro ve me nts in ma rg ins a nd c a sh flo ws T ra g ic inc ide nt in L a s Ve g a s e xpe c te d to impa c t 4Q re ve nue s Co ntinue to a dva nc e ne two rk e xpa nsio n o ppo rtunitie s, inc luding po te ntia l M&A, inte rna tio na l de ve lo pme nt, re a l e sta te a sse t a c tiva tio n a nd b ra nding & lic e nsing

FY 2 0 1 7 3 Q 2 0 1 7 REC A P

As a ntic ipa te d, ye a r-o n-ye a r pe rfo rma nc e a c c e le ra te d in 3Q Stro ng re ve nue s suppo rte d b y hig he r re g io na l a nd L a s Ve g a s g a ming vo lume s a nd impro ve me nt in L a s Ve g a s ro o m c a sh re ve nue s Hig he r re ve nue s pa rtia lly o ffse t b y unfa vo ra b le inte rna tio na l ho ld a nd de c o nso lida tio n o f o ne mo nth o f 2017 Ho rse sho e Ba ltimo re re sults I nc re me nta l re ve nue g ro wth c o uple d with re duc e d e xpe nse s dro ve hig he r E BIT DA a nd ma rg ins

21

APPE NDI X

22 22

Re c o nc ilia tio n Of No n-GAAP I nfo rma tio n: No te s

Be c a use we de c o nso lida te d CE OC upo n its Cha pte r 11 filing we a re a lso pro viding c e rta in supple me nta l info rma tio n a s if we ha d c o ntinue d to c o nso lida te CE OC thro ug ho ut the third q ua rte r o f 2017. T his info rma tio n inc lude s b o th sta nd-a lo ne CE OC fina nc ia ls a nd ke y me tric s fo r the third q ua rte r o f 2017, a nd c e rta in fina nc ia l info rma tio n fo r CE C a s if CE OC re ma ine d a c o nso lida te d e ntity during the q ua rte r. T his info rma tio n within this pre se nta tio n ma y b e diffe re nt fro m CE OC’ s sta nda lo ne re sults se pa ra te ly pro vide d due to imma te ria l a djustme nts, ro unding , a nd b a sis o f pre se nta tio n diffe re nc e s. CE C re -a c q uire d CE OC’ s o pe ra tio ns upo n c o nsumma tio n o f CE OC’ s Pla n o f Re o rg a niza tio n o n Oc to b e r 6, 2017. I n a dditio n, c o mpe nsa tio n o f ma na g e me nt is in pa rt de te rmine d b y re fe re nc e to c e rta in o f suc h fina nc ia l info rma tio n. As a re sult, we b e lie ve this supple me nta l info rma tio n is use ful to inve sto rs who a re trying to unde rsta nd the re sults o f the e ntire “Ca e sa rs” e nte rprise , inc luding CE OC a nd c o nsiste nt with the ma na g e me nt se rvic e s pro vide d a c ro ss the syste m’ s pro pe rtie s.

• As a re sult o f the a b o ve , “CE

C” in the fo llo wing re c o nc ilia tio ns re pre se nts GAAP re sults fo r CE C a s re po rte d fo r the pe rio d e nde d Se pte mb e r 30, 2017 a nd 2016.

• As a re sult o f the a b o ve , “CE

C+CE OC” in the fo llo wing re c o nc ilia tio ns re pre se nts No n-GAAP re sults a s it inc lude s CE OC fo r b o th the 2016 a nd 2017 pe rio ds.

23 23

3Q F Y17 CE C Re sults

$ millions Same -Stor e 3Q17 3Q16 Change YoY 3Q17 3Q16 Change YoY

Ca sino re ve nue s $ 531 $ 542 (2.0%) $ 486 $ 465 4.5% F &B re ve nue s 198 198 0.0% 195 193 1.0% Ro o m re ve nue s 245 237 3.4% 245 237 3.4% Othe r re ve nue s 150 140 7.1% 149 139 7.2% L e ss: c a sino pro mo tio na l a llo wa nc e s (138) (131) (5.3)% (136) (129) (5.4)%

Ne t Re ve nue s $ 986 $ 986

0.0%

$ 939 $ 905 3.8% Adjuste d E BIT DA 1 $ 303 $ 269

12.6%

$ 293 $ 249 17.7%

Marg in1 30.7% 27.3% 345 b ps 31.2% 27.5% 369 b ps

Ke y dr ive r s / statistic s 3Q17 3Q16 Change YoY 3Q17 3Q16 Change YoY

Ho ld ra ng e (millio ns) $0 -($5) $5-$10 ($5)-($10) F la t $5-$10 ($5)-($10) Oc c upa nc y 96.2% 95.5% 70 b ps 96.2% 95.5% 70 b ps Ro o m nig hts

• ff-the -ma rke t

49,000 33,000 16,000 49,000 33,000 16,000

C EC INC LUDES ENT IT IES A T C ERP A ND C G P

Ne t re ve nue s fla t Yo Y fo llo wing the d e c o nso lid a tio n o f the Ho rse sho e Ba ltimo re re sults in Aug ust o f 2017 ■ On a sa me -sto re b a sis, ne t re ve nue s +3.8% d rive n b y stro ng slo t vo lume s, a d d itio na l ro o m re ve nue s o n re c e ntly re no va te d ro o m pro d uc t a nd o pe ra tio na l re ve nue g ro wth initia tive s Adjuste d E BI T DA +12.6% Yo Y due to impro ve d re ve nue s a nd a d d itio na l re d uc tio ns in re c urring c o rpo ra te e xpe nse s ■ Sa me -sto re Ad juste d E BIT DA +17.7%

3Q17 Financial Performance

1. Adjusted EBITDA and EBITDA margin are non-GAAP measures. This information is non-GAAP and is presented for the reasons described on slides 3 and 4, and is reconciled on slides 26 to 29.

24 24

3Q F Y17 CE RP & CGPH Re sults

1. Adjusted EBITDA and EBITDA margin are non-GAAP measures. This information is non-GAAP and is presented for the reasons described on slides 3 and 4, and is reconciled on slides 26 to 29. 2. CERP’s businesses are outlined on slide 5. 3. CGPH’s business consists of the CGP properties listed in slide 5 except for Caesars Interactive Entertainment, and the Horseshoe Baltimore.

CE RP

3Q17 3Q16 Change YoY

Ca sino re ve nue s $ 297 $ 289 2.8% F &B re ve nue s 135 132 2.3% Ro o m re ve nue s 152 147 3.4% Othe r re ve nue s 88 85 3.5% L e ss: pro mo a llo wa nc e s (90) (84) 7.1%

Ne t Re ve nue s $ 582 $ 569 2.3% Adjuste d E BIT DA 1 $ 194 $ 170 14.1%

Marg in1 33.3% 29.9% 346 b ps

Ke y dr ive r s / statistic s 3Q17 3Q16 Change YoY

Ho ld ra ng e ($MM) F la t $5-$10 ($5)-($10) Oc c upa nc y 96.0% 95.5% 50 b ps Ro o m nig hts o ff-the -ma rke t 45,000 33,000 12,000

CGPH3 Re sults ($MM) 3Q17 3Q16 Change YoY

Ca sino re ve nue s $ 179 $ 168 6.5% F &B re ve nue s 58 60 (3.3)% Ro o m re ve nue s 94 90 4.4% Othe r re ve nue s 58 53 9.4% L e ss: pro mo a llo wa nc e s (45) (43) 4.7%

Ne t Re ve nue s $ 343 $ 328 4.6% Adjuste d E BIT DA 1 $ 95 $ 82 15.9%

Marg in1 27.7% 25.0% 270 b ps

Ke y dr ive r s / statistic s 3Q17 3Q16 Change YoY

Ho ld ra ng e ($MM) F la t F la t F la t Oc c upa nc y 96.7% 95.5% 120 b ps Ro o m nig hts o ff-the -ma rke t 4,000

• 4,000

25 25

3Q F Y17 Supple me nta l F ina nc ia l I nfo rma tio n: CE OC Re sults

C EO C ’S BUSINESS C O NSIST S O F 38 O WNED O R MANAG ED PRO PERT IES IN 13 ST AT ES & 5 C O UNT RIES, INC L UDING C AESARS PAL AC E L AS VEG AS

Ne t re ve nue s +0.8% Yo Y a s g a ming re ve nue impro ve d 10.4% a t Ca e sa rs Pa la c e , stro ng re sults in the re g io ns, a nd ho spita lity pe rfo rma nc e we re

• ffse t b y unfa vo ra b le Yo Y ho ld a t o ne o f o ur

L

• nd o n pro pe rtie s.

Adjuste d E BI T DA inc re a se d 15.5% Yo Y ■ Prima rily d ue inc re a se d re ve nue s a c ro ss mo st ve rtic a ls, a s we ll a s lo we r e xpe nse s Ma rg ins impro ve d 340 b a sis po ints o n the impro ve d re ve nue s a nd re d uc e d o pe ra ting e xpe nse s.

3Q17 Financial Performance

1. Adjusted EBITDA and EBITDA margin are non-GAAP measures. This information is non- GAAP and is presented for the reasons described on slides 3 and 4, and is reconciled on slides 26 to 29.

$ millions 3Q17 3Q16 Change YoY

Ca sino re ve nue s $ 859 $ 851 0.9% F &B re ve nue s 190 191 (0.5)% Ro o m re ve nue s 140 135 3.7% Othe r re ve nue s 98 94 4.3% Re imb urse d ma na g e me nt c o sts 39 42 (7.1%) L e ss: c a sino pro mo tio na l a llo wa nc e s (151) (147) 2.7%

Ne t Re ve nue s $ 1,175 $ 1,166 0.8% Adj E BIT DA 1 $ 320 $ 277 15.5%

Marg in1 27.2% 23.8% 340 b ps

Ke y dr ive r s / statistic s 3Q17 3Q16

Ho ld ra ng e (millio ns) ($20)-($25) ($10)-($15) ($5)-($10) Oc c upa nc y 93.2% 92.2% 100 b ps Ro o m nig hts o ff-the -ma rke t 6,000 4,000 2,000

26 26

$170 $100 $269 $277 $545 $24 $20 $34 $43 $77 ($10) CE RP CGP CE C (A) CE OC CE C + CE OC (B)

A DJUSTED EBITDA

$ M ILLIO NS

F Y 2016 2017 Cha ng e Ho rse sho e Ba ltimo re I mpa c t

Re c o nc iliatio n Of No n-GAAP CE C I nfo rmatio n: Adjuste d E BI T DA 3Q F Y17

A. CEC includes eliminations and other adjustments totaling $(1) million each for the 2017 and 2016 periods, respectively. B. CEC+CEOC includes eliminations and other adjustments totaling $(1) million each for the 2017 and 2016 periods, respectively

• Adjusted EBITDA information is separately reconciled to the nearest GAAP metric on the following slides.
• CEC+CEOC and CEC EBITDA Margin information is provided for the reasons set forth on slide 3.

$194

33.3% MARGIN

$110

26.9% MARGIN

$303

30.7% MARGIN

$320

27.2% MARGIN

$622

29.2% MARGIN 14.1%, 346 bps 29.9% MARGIN 10.0%, 320 bps 23.7% MARGIN 12.6%, 345 bps 27.3% MARGIN 15.5%, 339 bps 27.2% MARGIN 14.1%, 338 bps 25.8% MARGIN

27 27

$569 $422 $986 $1,166 $2,113 $13 $21 $9 $19 ($34) CE RP CGP CE C (A) CE OC CE C + CE OC (B)

NET REVENUE

$ M ILLIO NS

F Y 2016 2017 Cha ng e Ho rse sho e Ba ltimo re I mpa c t

Re c o nc iliatio n Of No n-GAAP CE C I nfo rmatio n: Ne t Re ve nue 3Q F Y17

A. CEC includes elimination and other adjustments totaling $(5) million each for the 2017 and 2016 periods, respectively. B. CEC+CEOC includes eliminations and other adjustments totaling $(29) million and $(39) million for the 2017 and 2016 periods, respectively..

$582

2.3% GROWTH

$409

(3.1%) GROWTH

$986

0.0% GROWTH

$1,175

1.1% GROWTH

$2,132

0.9% GROWTH

28 28

Re c o nc iliatio n Of No n-GAAP CE C I nfo rmatio n: Ne t Re ve nue 3Q F Y17

Compar ative Re ve nue s by Cate gor y ($ millions) CE C Q3-2017 Hor se shoe Baltimor e Q3-2017 CE OC Q3-2017 CE C+CE OC Q3-2017 CE C+CE OC % Change

Ca sino $ 531 $ 45 $ 859 $ 1,345 2.2% F

• o d a nd b e ve ra g e

198 3 190 386 0.5% Ro o ms 245

• 140

385 3.8% All o the r c a te g o rie s (A) 12

• (14)

(30)

• 21.1%

T

• tal Ne t Re ve nue s

$ 986 $ 48 $ 1,175 $ 2,086 2.6% CE C Q3-2016 Hor se shoe Baltimor e Q3-2016 CE OC Q3-2016 CE C+CE OC Q3-2016

Ca sino $ 542 $ 77 $ 851 $ 1,316 F

• o d a nd Be ve ra g e

198 5 191 384 Ro o ms 237

• 135

371 All o the r c a te g o rie s (A) 9

• (11)

(38)

T

• tal Ne t Re ve nue s

$ 986 $ 82 $ 1,166 $ 2,033

A. CEC+CEOC includes elimination and other adjustments totaling ($27) and ($37) for the 2017 and 2016 periods, respectively.

29 29

Re c o nc iliatio n Of No n-GAAP I nfo rmatio n: 3Q F Y17

30 30

Re c o nc ilia tio n Of No n-GAAP I nfo rma tio n: No te s

Ad juste d E BIT DA is de fine d a s E BI T DA furthe r a djuste d to e xc lude c e rta in no n-c a sh and o the r ite ms a s e xhib ite d in the abo ve re c o nc ilia tio n, a nd is pre se nte d a s a supple me ntal me a sure o f the Co mpany’ s pe rfo rmanc e . Mana g e me nt b e lie ve s tha t Adjuste d E BIT DA pro vide s inve sto rs with a dditio nal info rma tio n a nd allo ws a b e tte r unde rstanding o f the re sults o f o pe ra tio nal a c tivitie s se pa ra te fro m the financ ial impac t o f de c isio ns ma de fo r the lo ng -te rm b e ne fit o f the Co mpa ny. I n a dditio n, c o mpe nsa tio n o f mana g e me nt is in pa rt de te rmine d b y re fe re nc e to c e rtain o f suc h financ ial info rma tio n. As a re sult, we b e lie ve this supple me ntal info rmatio n is use ful to inve sto rs who a re trying to unde rsta nd the re sults o f the Co mpany. Adjuste d E BIT DA ma rg in is c a lc ulate d a s a djuste d E BIT DA divide d b y ne t re ve nue s. Be c a use no t all c o mpanie s use ide ntic al c alc ula tio ns, the pre se ntatio n o f Adjuste d E BIT DA ma y no t b e c o mpa rable to o the rsimila rly title d me a sure s o f o the rc o mpa nie s.

a ) Prima rily re pre se nts CE C’ s e stima te d c o sts in c o nne c tio n with the re struc turing o f CE OC. b ) Amo unts prima rily re pre se nt c o sts inc urre d in c o nne c tio n with pro pe rty o pe ning s a nd e xpa nsio n pro je c ts a t e xisting pro pe rtie s, c o sts a sso c ia te d with the de ve lo pme nt a c tivitie s a nd re o rg a niza tio n a c tivitie s, a nd/ o r re c o ve rie s a sso c ia te d with suc h ite ms. c ) Amo unts re pre se nt sto c k-b a se d c o mpe nsa tio n e xpe nse re la te d to sha re s, sto c k o ptio ns, a nd re stric te d sto c k units g ra nte d to the Co mpa ny’ s e mplo ye e s. d) Amo unts re pre se nt a dd-ba c ks a nd de duc tio ns fro m E BIT DA pe rmitte d unde r c e rtain inde nture s. Suc h a dd-b a c ks a nd de duc tio ns inc lude litig a tio n a wa rds a nd se ttle me nts, c o sts a sso c ia te d with CE OC’ s re struc turing a nd re la te d litig a tio n, se ve ra nc e a nd re lo c a tio n c o sts, sig n-o n a nd re te ntio n b o nuse s, pe rmit re me dia tio n c o sts, a nd b usine ss o ptimiza tio n e xpe nse s. e ) Amo unts inc lude c o nso lidating a djustme nts, e limina ting a djustme nts a nd o the r a djustme nts to re c o nc ile to c o nso lida te d CE C Pro pe rty E BIT DA a nd Adjuste d E BIT DA.

31