Investor Presentation October 2017 T om Reeg President and CFO - PowerPoint PPT Presentation

Investor Presentation October 2017 T om Reeg President and CFO

Forward Looking Statements Forward-Looking Statements This presentation includes “forward - looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 2 1E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements regarding our strategies, objectives and plans for future development or acquisitions of properties or operations, as well as expectations, future operating results and other information that is not historical information. When used in this presentation, the terms or phrases such as “anticipates,” “believes,” “projects,” “plans,” “intends,” “expects,” “might,” “may,” “estimates,” “could,” “should,” “would,” “will likely continue,” and variations of such words or similar expr essions are intended to identify forward-looking statements. Although our expectations, beliefs and projections are expressed in good faith and with what we believe is a reasonable basis, there can be no assurance that these expectations, beliefs and projections will be realized. There are a number of risks and uncertainties that could cause our actual results to differ materially from those expressed in the forward-looking statements which are included elsewhere in this presentation. Such risks, uncertainties and other important factors include, but are not limited to: Eldorado’s ability to promptly and effectively integrate the business of Eldorado and Isle and realize synergies resulting from the combined operations; our substantial indebtedness and the impact of such obligations on our operations and liquidity; competition; sensitivity of our operations to reductions in discretionary consumer spending and changes in general economic and market conditions; governmental regulations and increases in gaming taxes and fees in jurisdictions in which we operate; and other risks and uncertainties described in our reports on Form 10-K, Form 10-Q and Form 8-K. In light of these and other risks, uncertainties and assumptions, the forward-looking events discussed in this presentation might not occur. These forward-looking statements speak only as of the date of this presentation, even if subsequently made available on our website or otherwise, and we do not intend to update publicly any forward-looking statement to reflect events or circumstances that occur after the date on which the statement is made, except as may be required by law. Non-GAAP Measures Adjusted EBITDA, a non GAAP financial measure, has been presented as a supplemental disclosure because it is a widely used measure of performance and basis for valuation of companies in our industry and we believe that this non GAAP supplemental information will be helpful in understanding the Company’s ongoing operating results. Adjusted EBITDA represents operating income (loss) before depreciation and amortization, stock based compensation, transaction expenses, S-1 expenses, severance expenses and other, which includes equity in income (loss) of unconsolidated affiliates, (gain) loss on the sale or disposal of property, and other regulatory gaming assessments, including the impact of the change in regulatory reporting requirements, to the extent that such items existed in the periods presented. Adjusted EBITDA is not a measure of performance or liquidity calculated in accordance with U.S. GAAP, is unaudited and should not be considered an alternative to, or more meaningful than, net income (loss) as an indicator of our operating performance. Uses of cash flows that are not reflected in Adjusted EBITDA include capital expenditures, interest payments, income taxes, debt principal repayments and certain regulatory gaming assessments, which can be significant. As a result, Adjusted EBITDA should not be considered as a measure of our liquidity. Other companies that provide EBITDA information may calculate EBITDA differently than we do. The definition of Adjusted EBITDA may not be the same as the definitions used in any of our debt agreements. 2

Overview 3

Key Investment Highlights  Best-in-class properties located in significant regional gaming markets High quality  Pro forma for ISLE acquisition, Eldorado’s portfolio comprises gaming properties 1 with approximately 20,000 slot machines and 550 table and poker games gaming assets  Over 6,500 hotel rooms across properties 1 Geographic  Properties in 15 regional sub-markets pro forma for ISLE acquisition transaction diversification in attractive  Each market features stable tax and regulatory environments markets  With the ISLE acquisition, Eldorado has achieved significant scale as a regional gaming owner/operator Strong financial profile  Improved margins pro forma for ISLE acquisition, and potential to further improve through achievable cost synergies and operational improvements  Eldorado has effected three major acquisitions since 2014 – T estament to management’s ability to source transactions and derive synergies from removal of Disciplined redundant expenses and operational improvement acquisition and strategic capex  Disciplined capital structure management  Ongoing revenue increasing enhancements across a number of properties Management team with deep  Executive team has on average 30+ years of industry experience gaming industry experience 1) Inclusive of Lake Charles. In August 2016, Isle of Capri agreed to sell Isle of Capri Casino Hotel Lake Charles, a transaction the Company expects to complete in 2017, subject to Louisiana Gaming Board approval and other customary closing conditions. 4

Company Overview  Premier regional gaming operator  20 1 properties in 10 states Approximately 20,000 slot machines and VLTs   550 table games  Over 6,500 hotel rooms  LTM 6/30/17 combined financials 2  Combined Net revenue of $1.7 billion  Combined Adjusted EBITDA of $395 million  Balance sheet (as of June 30, 2017)  Cash and cash equivalents of $126.2 million 3 Total debt outstanding of $2.3 billion  On 9/11/17, announced and priced offering of additional $500 million in  aggregate principle amount of 6% senior notes due 2025 at issue price equal to 105.5%  Proceeds of offering used to repay all outstanding borrowings under revolving credit facility ($78 million as of 9/8/17) and repay borrowings under term loan facility and related accrued interest 1) Inclusive of Lake Charles. In August 2016, Isle of Capri agreed to sell Isle of Capri Casino Hotel Lake Charles, a transaction the Company expects to complete in 2017, subject to Louisiana Gaming Board approval and other customary closing conditions. 2) LTM 6/30/17 Combined Net revenue and Combined Adjusted EBITDA, include results of operations for Isle for the ten month period ended April 30, 2017, the day before ERI acquired Isle on May 1, 2017. Combined Adjusted EBITDA also includes $35mm of estimated synergies from the ISLE acquisition. An estimated $30mm run-rate out of $35mm (or $5mm) of announced annual synergies have been realized in the first two months since consolidation (5/1/17 through 6/30/17). The remaining $5mm of run- rate synergies expected to be realized in H2’2017 . The Isle figures included for periods preceding the date that ERI acquired Isle are based on Isle’s unaudited internal financial statements for periods corresponding to ERI’s fiscal quarters and have not been re viewed by ERI’s auditors. Such figures and the combined presentation including periods prior to the date of acquisition do not conform to GAAP or the Securities and Exchange Commission rules for pro forma presentation. 3) Includes restricted cash. 5

Timeline Acquires MTR Acquires remaining Eldorado founded Acquires Gaming Group in 50% interest in by Donald Carano Enters into JV with Acquires Isle Shreveport transaction that Silver Legacy and and Jerry Poncia; MGM Resorts to of Capri Casino doubles size of all of the assets of build Silver Legacy Casinos Eldorado Hotel and company Circus Circus Reno Casino opens 1973 1995 2005 2015 2017 2014 6

Diversified Geographic Presence Portfolio Highlights • 20 properties • ~20,000 slot machines • 550 table games • Over 6,500 hotel rooms LAKE CHARLES NOTE: In August 2016, Isle of Capri agreed to sell Isle of Capri Casino Hotel Lake Charles, a transaction the Company expects to complete in 2017, subject to Louisiana Gaming Board approval and other customary closing conditions. 7