EX-99.1 2 dex991.htm 2010 ANNUAL MEETING OF SHAREHOLDERS PRESENTATION

2010 Shareholders’ Meeting June 17, 2010 Churchill Downs Racetrack Louisville, KY Exhibit 99.1

Forward-Looking Statements In addition to historical facts or statements of current conditions, this document contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that include projections, expectations or beliefs about future events or results, or otherwise are not statements of historical fact. The actual performance of the Company may differ materially from what is projected in such forward-looking statements. Investors should refer to statements included in reports filed by the Company with the Securities and Exchange Commission for discussion of additional information concerning factors that could cause our actual results of operation to differ materially from the forward-looking statements made in this presentation. The information being provided today is as of this date only, and Churchill Downs Incorporated expressly disclaims any obligation to release publicly any updates or revisions to these forward-looking statements to reflect any changes in expectations. Page 2

Churchill Downs Incorporated Building a Growth-Based Company Annual Shareholders Meeting Bob Evans, President & CEO June 18, 2009 Louisville, Kentucky Page 3

Gaming Entertainment Online Racing Racing … the Kentucky Oaks and Kentucky Derby and 386 days of racing at our 4 tracks: Arlington Park, Calder Race Course, Churchill Downs Racetrack and Fair Grounds Race Course. Entertainment … HullabaLOU Music Festival; Fork, Cork & Style and other events in development. Gaming … Calder Casino, Studz Poker Club and Fair Grounds Slots, which includes 1,863 slot machines and 807 video poker machines in Louisiana and Florida. Online … TwinSpires.com, Youbet.com, Bloodstock Research Information Services and 50% of HRTV. Racing is Our Core Business Page 4

69% 16% 14% 1% Racing Online Gaming Entertainment & Other 93% 0% 6% 1% 0 10 20 30 40 50 60 70 80 90 2006 2007 2008 2009 EBITDA Up 30% Core business EBITDA EBITDA from hurricane insurance gains 53% 21% 28% -3% Racing Online Gaming Entertainment & Other 88% 0% 15% -2% 200 250 300 350 400 450 500 2006 2007 2008 2009 Revenue Up 17% 2009 2006 Revenue A Earnings Before Interest, Taxes, Depreciation & Amortization (EBITDA) C % of Revenue B % of EBITDA D Page 5

U.S. Thoroughbred Industry Handle (000's of Dollars) 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 Source: The Jockey Club Online Fact Book --2010 Projected based on extrapolation of May year-to-date actual data to the full year Page 6

Source: The Jockey Club Online Fact Book --U.S. Department of Commerce, Bureau of Economic Analysis --American Gaming Association --2010 Projected based on extrapolation of First Quarter actual data to the full year Consumer Wagering on Thoroughbred Racing and at Casinos as % of U.S. Disposable Personal Income 0.000% 0.010% 0.015% 0.020% 0.025% 0.030% 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Proj. 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% Racing Casinos Page 7

Number of U.S. Thoroughbred Races 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Proj. Source: The Jockey Club Online Fact Book --2010 Projected based on extrapolation of May year-to-date actual data to the full year Page 8

U.S. Thoroughbred Foal Crop +3 Years 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Source: The Jockey Club Online Fact Book --Data has been time-shifted to illustrate the effect of one year’s foal crop on the number of 3-year-olds three years later Page 9

Churchill Downs is Investing in the Future of Racing Our $120 million investment in our casinos at Fair Grounds and Calder could generate over $20 million in purses Our $220 million investment in TwinSpires.com and Youbet.com will generate over $39 million in purses. Churchill Downs will host the Breeders’ Cup in 2010 and 2011, for a record 7th and 8th time. 2009 American Idol winner Kris Allen auditioned at Churchill Downs All CDI tracks’ video now in High Definition Downs After Dark brought nearly 90,000 to the track CDI’s Safety From Start to Finish initiative leads the industry New store at Louisville airport expands awareness of Racing 2010 American Idol winner Lee DeWyze appeared at Arlington Park Our COO Bill Carstanjen starred in Undercover Boss Page 10

On Track Live Internet (ADW) Rebate Other Tracks and OTBs % of Total Handle 11% 9% 10% 70% Margins % of Handle to CDI 8.5% 4.5% 3.1% 1.9% % of Handle to Purses 8.5% 5.5% 3.1% 1.9% Margins by Wagering Channel Note: These are averages, amounts by track will vary Page 11

Oaks attendance of 116,046 a new record 21% above Preakness attendance 61% above Belmont attendance* Oaks (full-day) handle of $36 million also a new record * (source: Business First) Derby attendance of 155,804 up 1.5% over 2009, 6th highest ever Derby (full-day) handle of $163 million 4 th highest ever Oaks/Derby merchandise up 9% Oaks/Derby sponsorships up 5% New event Taste of Derby sold out Record Oaks/Derby EBITDA Page 12

Prep 1 LA Derby Lane’s End Mar. 27 Prep 2 SA Derby Wood Mem. Apr. 3 Prep 3 AR Derby Bluegrass Apr. 10 KY Oaks Apr. 30 KY Derby May 1 Average Derby Preps viewership of 1.2 million up 37%; more female (52% vs. 40%); and younger (by 3 years). Derby viewership of 16.5 million an all-time record. CDI now produces 7 hours of live TV coverage of horseracing spanning 6 weeks We are working to expand TV coverage beginning in 2011 Page 13

Calder Casino Opened January 22, 2010 Page 14

Our Gaming Business Produced 14% of our Revenue and 28% of our EBITDA in 2009 Number of Machines Annual Gross Gaming Revenue Annual Purse Contribution % Increase in Purses Fairgrounds Slots 618 $44.8 million $8.1 million +52% Louisiana Video Poker 807 $32.7 million $6.5 million (8)% Calder Casino 1,245 $80-100 million $7-8 million New for 2010 Totals 2,670 $157-177 million $21-23 million +44% New “Kentucky Derby” branded slot machine. Page 15

Our Online Business Produced 16% of our Revenue and 21% of our EBITDA in 2009 2007 (7 Months) 2008 2009 Q1 2010 (3 months) CDI Online Business Handle $86.6 mil. $234.4 mil. $329.7 mil. $83.0 mil. % of Total U.S. Thoroughbred Handle 0.6% 1.7% 2.7% 3.0% CDI Online Business Revenue $18.3 mil. $46.7 mil. $64.3 mil. $16.5 mil. Page 16

Our Online Business Should Continue to Grow With the Acquisition of Youbet.com New TwinSpires.com / Youbet.com Customer Call Center in Lexington, KY (approx. 100 employees) + 2007 (7 Months for TwinSpires.com) 2008 2009 Q1 2010 (3 months) CDI Online Business Handle $86.6 mil. $234.4 mil. $329.7 mil. $83.0 mil. Youbet.com Handle $484.2 mil. $438.3 mil. $480.3 mil. $115.7 mil. Total Handle $570.8 mil. $672.7 mil. $810.0 mil. $198.7 mil. % of Total U.S. Thoroughbred Handle 3.8% 4.9% 6.1% 7.1% CDI Online Business Revenue $22.3 mil. $54.0 mil. $71.5 mil. $18.1 mil. Youbet.com Revenue $97.7 mil. $85.8 mil. $90.7 mil. $21.8 mil. Total Revenue $120.0 mil. $139.8 mil. $162.2 mil. $39.9 mil. Page 17

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Entertainment Page 19

Supporting Our Communities In the past year, CDI has contributed over $ 2.0 million Page 20

Churchill Downs Incorporated Stock Price (NASDAQ: CHDN) 2007 2008 2009 2010 (thru June 10th) Annual Performance Rank: Annual Share Price Change Top CHDN +22.3% CHDN -13.5% CHDN -16.1% Russell 2000 +26.9% Middle S&P 500 +12.7% S&P 500 -17.4% Russell 2000 -20.4% S&P 500 +19.7% Bottom Russell 2000 +9.4% Russell 2000 -18.5% S&P 500 -22.3% CHDN +4.0% Cumulative Performance Rank: 2006 Index = 100 CHDN 122 106 89 92 Russell 2000 109 89 71 90 S&P 500 113 93 72 87 Page 21

CDI: Racing, Gaming & Entertainment Delivered Onsite & Online Page 22