Caesars Investor Presentation Short Form 20111005

8/3/2019 Caesars Investor Presentation Short Form 20111005

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October 2011

Investor Presentation


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CAESARSENTERTAINMENT

|PROPRIETARYANDCONFIDE

NTIAL

Forward-Looking Statements

Certa in informa tion in this p resenta tion m ay be c onsidered forwa rd -looking informationwithin the me aning o f the Private Sec urities Litiga tion Refo rm Ac t o f 1995. This informa tion isba sed on the Com pa ny's c urrent expec tations and ac tual results could va ry ma teriallydep end ing on risks and unc ertainties tha t ma y affec t the Co mp any's op erations, ma rkets,service s, prices and other fac tors as d isc ussed in filings with the Sec urities and ExchangeCommission. Plea se see "Risk Fac to rs" on page 8 of our annua l rep ort on Form 10-K for theyea r end ed Dec em ber 31, 2010 for a d eta iled d iscussion of som e o f these risks andunc ertainties. These risks and unc ertainties inc lude, bu t a re not limited to, industry a ndec onom ic cond itions, co mp etitive, lega l, gove rnmenta l and tec hnolog ical fac tors. There is noassuranc e tha t the Co mp any's expe c ta tions will be rea lized . The Comp any assume s noobligation to update any forward-looking information contained in this presentation shouldc irc umstanc es c hang e, excep t a s othe rwise req uired by sec urities and othe r applicab le law s.

Ma rket da ta and other sta tistica l informa tion used througho ut this p resenta tion are b asedon inde pend ent industry pub lic a tions, gove rnme nt pub lica tions, rep orts by ma rket resea rc hfirms or other pub lished inde pend ent sources. Som e da ta are a lso based on our goo d faithestimates which a re d erived from our review of internal surveys, as we ll as the ind ep end entsourc es listed above . Althoug h we believe these sources a re reliab le, we have no tinde pend ently verified the informa tion and c annot gua rantee its acc uracy andcompleteness.


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Caesars Entertainment Overview


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NTIAL

Q2 '11 TTM Net Revenue ($8.8B)

Iowa / Missouri,

8%

Illinois / Indiana,

13%

Las Vegas, 33%

Mississippi /

Louisiana, 13%

Other Nevada,

5%

Atlantic City, 21%

Managed / Intl /

Other, 6%

Q2 '11 TTM Property EBITDA ($1.9B)

Managed / Intl /

Other, 5%

Atlantic City,

15%

Other Nevada,

4%

Mississippi /

Louisiana, 12%

Las Vegas, 39%

Illinois / Indiana,

13%

Iowa / Missouri,

12%

The worlds most diversified gaming company

#1 or #2 market share in almost every major market in the U.S.

52 casinos in seven countries

Approximately 42,000 hotel rooms and suites, 3.2 million square feet of casino gaming space and 2

million square feet of convention center space(1)

Industry leading loyalty program (Total Rewards) with over 40 million members

[(1) CEOC owns or manages 46 of the Caesars Entertainment casinos with an aggregate of approximately 2.6 million square feet of gaming space and approximately 26,300 hotel rooms.]

Caesars Entertainment Company Snapshot

Q2 2011 TTM Property EBITDA ($2.0B)

Q2 2011 TTM Property EBITDA ($2.0B)Q2 2011 TTM Net Revenue ($8.8B)

Q2 2011 TTM Net Revenue ($8.8B)


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NTIAL

Building the First Gaming Brand Competence


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|PROPRIETARYANDCONFIDENTIAL

Over 40 Million Members in Our Database

The size of the Total Rewards database is a key differentiator which enables us to reach more customers

than our competition

Number of Guests in Caesars Database continues to grow, due to continued loyalty, adding new locations, and gettingmore guests to join TR at existing locations

Active customer counts have declined at a much slower rate than our gaming revenues indicating a

recovery will likely be driven by spend instead of trips

Active Property GuestsActive Property GuestsTR Database GrowthTR Database Growth

0

5

10

15

20

25

30

35

40

45

2000

200

1

2002

2003

2004

2005

200

6

2007

200

8

2009

201

0

2011

Cardmembers(Millions)

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

5.5

6.0

Q1-07

Q2-07

Q3-07

Q4-07

Q1-08

Q2-08

Q3-08

Q4-08

Q1-09

Q2-09

Q3-09

Q4-09

Q1-10

Q2-10

Q3-10

Q4-10

Q1-11

Q2-11

ActiveGuests(M

illions)


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8

Customers Consolidate Their Play with Caesars

Total Rewards and our established network enables our key markets to generate considerable revenuesfrom customers not originally playing at that property

Caesars has continued to invest in core technology during the recession to ensure that consumer loyalty

to Total Rewards will continue to thrive

Tracked Play Q2 2011 YTDTracked Play Q2 2011 YTD Distribution of Rated Play Q2 2011 YTDDistribution of Rated Play Q2 2011 YTD

Tracked Play represented 74% of total gaming revenues

Cross-Market Play represented 59% of total Tracked Play

For Q2 2011 YTD, Caesars has generated $1.35 billion incompany wide gaming revenue from tracked crossproperty play

59% Cross Property

Play

41% Other

26% Non-Tracked

Play

74%

Tracked Play

0%

20%

40%

60%

80%

100%

Tunica Tahoe Bossier LV Chicago AC Council

Bluffs

Cr os s Pr op Outs ide Mkt Cr os s Prop Wi thi n Mkt Si ngl e Pr op


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Core Business Trends:

Poised for a Recovery


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15,000

16,000

17,000

18,000

19,000

20,000

21,000

22,000

23,000

24,000

4Q07

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

TTMT

rips(000s)

$100

$110

$120

$130

$140

$150

$160

$170

$180

$190

$200

TTMS

pend/Trip

TTM Spend / Trip

TTM Trips (000s)

Trends in Key Metrics Regional Markets

Regional Markets Gaming TrendsRegional Markets Gaming Trends(1)(1)

The Caesars Regional markets suffered from decreases in visitation and gaming spend, but to alesser degree than what has been observed in Atlantic City

Recent decline in trips is an indicator of our marketing strategy and is concentrated in lower worth

segments

Assuming all other metrics remain flat, on a base of ~17.8mm trips in TTM 2Q11, a $5 recovery in

spend in the regional markets would amount to a ~$47mm impact on EBITDA

(1) Regional Markets include Other Nevada, Pennsylvania, Illinois, Indiana, Louisiana, Mississippi, Iowa, and Missouri properties; multiple property trips within the same market have

been consolidated as a single market trip.


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$133

$126

$90 $88 $87$81

$83

$94 $92

$0

$20

$40

$60

$80

$100

$120

$140

FY07 FY08 FY09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11

Trends in Key Metrics Las Vegas

Las Vegas Cash ADRLas Vegas Cash ADR (1)(1) Las Vegas Gaming TrendsLas Vegas Gaming Trends (2)(2)

Las Vegas Cash ADR

declined by 31% vs. 2007

Las Vegas trips have started to recover as spend per trip has started to stabilize; ADR is poised tostart improving due to strong convention bookings and absorption of previous capacity increases

Assuming all other metrics remain flat, on a base of ~3.2mm market trips in TTM 2Q11, a $25

recovery in spend in the Las Vegas market would amount to an ~$58.7mm impact on EBITDA

Assuming all other metrics remain flat, on a base of ~5.7mm cash rooms in TTM 2Q11, a $5

recovery in ADR in the Las Vegas market would amount to an ~$28.3mm impact on EBITDA

(1) Cash ADR calculations exclude Planet Hollywood impact.

(2) Represents market trips; market figures prior to 2Q10 have been adjusted to include theoretical Planet Hollywood impact.

3,000

3,100

3,200

3,300

3,400

3,500

3,600

4Q07

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

Trips(0

00s)

$300

$350

$400

$450

$500

$550

$600

$650

$700

Spend

/Trip

TTM Spend / Trip

Trips (000s)


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Trends in Key Metrics Atlantic City

Atlantic City Gaming TripsAtlantic City Gaming Trips Indexed to 2007Indexed to 2007 Atlantic City Gaming Spend / TripAtlantic City Gaming Spend / Trip Indexed to 2007Indexed to 2007

Atlantic City has seen consistent declines in trips, specifically with regards to non-lodger trips whichhave been hurt by increased competition in Pennsylvania

We do not expect a recovery in non-lodger trips, and are focusing our efforts on growing the lodger

business and increasing the appeal of Atlantic City as a destination

Assuming all other metrics remain flat, on a base of ~1.1mm lodger trips in TTM 2Q11, a $25

recovery in spend in the AC market would amount to an ~$17.3mm impact on EBITDA

(1) Represents market trips.

0.60

0.70

0.80

0.90

1.00

1.10

1.20

4Q07

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

TTM NonLodger Trips (000s)

TTM Lodger Trips (000s)

0.60

0.70

0.80

0.90

1.00

1.10

1.20

4Q07

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

TTM NonLodger Spend / Trip

TTM Lodger Spend / Tri p


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Expanding Distribution


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Our National Casino Marketing group spans the country and drives business to all of our properties

Caesars Network of Independent Reps Provides

Distribution Beyond the Assets

Breadth of Distribution Provides Competitive AdvantageBreadth of Distribution Provides Competitive Advantage


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Caesars continues to add to its robust domestic

development pipeline

Octavius

Tower

Octavius

Tower

ClevelandCleveland

CincinnatiCincinnati

Octavius TowerOctavius Tower Project LINQProject LINQ

MassachusettsMassachusetts

Opening March 2012 Expected Completion: Q2 2013

Expected Completion: Q2 2013Opening January 2012

Alliance with Suffolk Downs;

Plan to bid if legislation is approved

BaltimoreBaltimore

Bid for VLT license

(only qualified bidder)


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Online Gaming is the Industrys Next Evolution, and

Caesars Continues to Grow its Capabilities

Worldwide Social Game Market by Region ($ millions)Worldwide Social Game Market by Region ($ millions)

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2010E 2011E 2012E 2013E 2014E

U.S. Europe Japan China Rest of World

$ millions

10-14

CAGRs

35%

48%

36%

32%

25%

50%

Caesars has acquired majority stake in Playtika and currently has the largest casino/slot

game on Facebook with Slotomania(over 6.5 million monthly active users)

Source: ThinkEquity LLC Industry Report 1/24/11.


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WSOP brand will provide Caesars with a competitive

advantage if online poker is legalized in the US

Current size of the unregulated U.S. online poker industry estimated at $6 billion which Caesars

is well-positioned to capture upon legalization

DOJ indictments of PokerStars and Full Tilt has strengthened Caesars positioning in this market

Momentum is growing for federal legislation and select states moving toward intra-state legalization

In anticipation of U.S. legalization, Caesars is focused on building out WSOPs digital and offline

footprint

UK site operating for real money and partnerships in regulated markets (i.e. France, Italy) for real money

WSOP branded poker for fun currently across all major digital platforms

New WSOP National Championship tour launched with 12 stops and championship at Caesars Palace

WSOP on iPhone WSOP on Facebook WSOP.com Poker Client


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|PROPRIETARYANDCONFIDEN

TIAL

Potential Opportunities in AsiaPotential Opportunities in Asia

Vietnam

Taiwan

S. Korea

Japan

The PhilippinesCambodia

Macao

SingaporeCurrent Legal Casino Jurisdictions

Macau

Caesars currently owns 175 acres ofprime real estate on the Cotai Strip

Land value could be realized by re-zoning into casino or alternate use

Another option is partnering with alicense holder that needs land for

further development

International Expansion into the Fast Growing Asian

Market is a Priority

Other legal jurisdictions(Korea, Philippines, Vietnam)

Currently evaluating opportunities toenter high-growth Asian markets withlocal partners

Emerging jurisdictions(Taiwan, Japan)

Continuing to monitor legislativedevelopments and seeking to favorablyposition company in advance oflegalization


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TIAL

Caesars Entertainment

A Summary of Key Points

Caesars is the only diversified gaming company creating a competitive

advantage through a branded gaming experience

Highly leveraged to consumer spending, Caesars has exposure to an

economic recovery

A focus on expanding its distribution points domestically, online and

internationally positions Caesars to maximize the value of its database


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Appendix


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TIAL

Reconciliation of Net (Loss)/ Income attributable to

CEC Property EBITDA TTM Q2

(in millions) TTM Q2

Net revenues 8,817.6

Property operating expenses (6,827.5)

Property EBITDA 1,990.1

Depreciation and amortization (719.6)

Operating profit/(loss) 1,270.5

Project opening costs and other items (87.5)

Impairment of intangible assets (93.0)

(Loss)/income on interests in nonconsolidated affiliates (4.0)

Corporate expense (148.1)

Acquisition and integration costs (8.3)

Amortization of intangible assets (157.1)

Income/(loss) from operations 772.5

Interest expense, net of interest capitalized (2,031.3)

Gains on early extinguishments of debt 192.2

Other income, including interest income 31.8

Loss before income taxes (1,034.8)Benefit for income taxes 379.7

Net loss (655.1)

Less: net income attributable to non-controlling interests (9.3)

Net loss attributable to Caesars Entertainment Corporation (664.4)


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March 2011

Documents

Caesars Investor Presentation Short Form 20111005