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

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 1

F o rwa rd L o 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. 2

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. 3

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 o 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 4