KLC OpCo Historical Pro Forma and Projected Financials (2004‑2011)

KLC OpCo Summary Historical Pro Forma and Projected Financials Fiscal Year Ended December 31, ($ in millions) 2004PF OPERATIONAL DATA Revenue $1,442.2 Growth Gross Profit $233.3 Adjusted EBITDA $143.3 Margin 9.9% Adjusted EBITDAR $352.8 Margin 24,5% Operating Income Total Interest Expense Net Income’ BALANCE SHEET DATA Cash Accounts Receivable PP&E, Net Accounts Payable SELECTED CASH FLOW DATA Net Income (Loss)' + Depreciation + Amortization of Intangibles + Amortization of Deferred Financing Fees + Change in Working Capital? + Change in Accrued LTIP® + Change in Accrued SAR“ + Change in Other Assets = Operating Cash Flow - Capital Expenditures - Capitalized Lease Payments = Cash for Debt Service CAPITALIZATION Total Debt Shareholders’ Equity® Total Capitalization 2005PF $1,477.7 2.5% $244.4 $149.9 10.1% $367.4 24.9% $27.1 23.5 $1.6 $118.8 55.6 286.6 13.0 $1.6 47.9 11.6 0.8 0.0 0.0 9.9 0.0 $71.9 (83.1) (0.5) $(11.7) $276.4 254.1 $530.5 2006P $1,557.8 5.4% $290.7 $161.7 10.4% $371.4 23.8% $78.9 23.6 $31.1 $154.2 58.6 301.9 13.7 $34.1 54.6 12.8 0.8 2.8 2.6 24 (0.6) $106.0 (69.9) (0.8) $35.4 $275.6 283.1 $558.7 2007P $1,656.5 6.3% $320.6 $179.9 10.9% $391.4 23.6% $101.6 23.5 $46.0 $215.8 62.4 305.9 14.6 $46.0 56.2 10.0 0.8 3.4 4.0 3.1 (0.8) $122.7 (60.2) (0.9) $61.6 $274.7 330.1 $604.9 2008P $1,769.6 6.8% $354.0 $204.8 11.6% $419.6 23.7% $117.8 23.4 $56.9 $288.5 66.6 309.4 15.6 $56.9 61.5 8.8 0.8 3.9 45 3.2 (0.9) $138.7 (65.0) (1.0) $72.7 $273.7 390.7 $664.4 2009P $1,919.7 8.5% $396.2 $237.5 12.4% $459.7 23.9% $146.9 23.3 $77.4 $373.7 72.3 315.0 16.9 $77.4 67.3 3.6 0.8 5.2 24 3.7 (1.2) $159.3 (72.8) (1.3) $85.2 $272.5 474.8 $747.3 2010P $2,095.8 9.2% $448.2 $279.0 13.3% $510.8 24.4% $179.5 23.1 $98.3 $484.8 78.9 315.6 18.4 $98.3 74.2 3.5 0.8 6.1 14 47 (1.4) $187.4 (74.8) (1.5) $111.1 $271.0 583.6 $854.6 2011P $2,290.8 9.3% $501.3 $320.1 14.0% $568.6 24.8% $212.4 22.9 $117.9 $621.2 86.2 311.1 20.1 $117.9 80.9 3.5 0.8 6.8 0.6 5.6 (1.5) $214.5 (76.4) (1.7) $137.9 $269.3 721.1 $990.4 Excludes equity in earnings of unconsolidated subsidiary (KLC PropCo). * KLC has not divided change in working capital between KLC OpCo and KLC PropCo. Traditionally KLC OpCo operates with positive working capital. ° For additional detail, see the discussion below under the heading ‘“- Long Term Incentive Plan.” * Non-cash expenses related to KSI’s Stock Appreciation Rights Plan attributed to KLC’s employees and payable by KSI in cash upon settlement. ° Represents book value. Revenue Management projects revenue to increase at a 8.0% CAGR, from $1.6 billion in 2006 to $2.3 billion in 2011. Most of the projected growth stems from KLC OpCo’s ECE segment which currently accounts for approximately 96.0% of KLC OpCo’s pro forma revenue. The following table shows projected revenue by business segment: HOUSE_OVERSIGHT_024526