Delta Corp. Ltd. (india) · NSE:DELTACORP
Delta Corp. Ltd. (india) — Delta — Investor Presentation (February 2018)
30 slides from Delta Corp. Ltd. (india)'s investor presentation, February 2018
Slide 1: Investor Presentation
ie | D ELTA CORP LIMITED Investor Presentation
Slide 2: Table of Contents
Table of Contents 01 Introduction 02 Investment Highlights 03 Financial Summary 04 Appendix 2
Slide 3: Section 1: Introduction
DELTA Section 1: Introduction
Slide 4: Delta Corp Limited
Delta Corp Limited The only listed gaming and hospitality company in India • The leading gaming and hospitality company in India • Listed on both the National Stock Exchange and Bombay Stock Exchange Who are with a market capitalization of US$ 1.5BN we? • Led by Chairman, Mr. Jaydev Mody, a first-ge
Slide 5: Historic milestones in the company's development
Historic milestones in the company’s development • Acquired Adda52.com, India’s leading online poker site 2015 - 2017 • Launched land-based casino in Sikkim • Completed ₹ 550 crores/ US$84m QIP equity raise • Acquired an additional 36% stake in Daman Hospitality; increasing our stake to 87% 2014 - 2
Slide 6: Strong recent share price performance
Strong recent share price performance 1-Jan-2017 to 12-Feb-2018 Share Price Performance Stock Information Ticker DELTA IN US$ 1.52 Market Capitalization BN Shares Outstanding 267.6m Free Float 66.1% Average Daily Trading Volume (1M) US$24.5m (3M) US$15.8m Current Share Price (6-Feb-2018) INR363.90 5
Slide 7: A well diversified ownership structure
A well diversified ownership structure • Delta’s promoters, Jaydev Mody and family, hold 33.9% of the company’s NRIs shares through multiple investment 0.7% vehicles • Renowned Indian investor Rakesh Institutions Jhunjhunwala, “the pied piper of Indian (DII + FII) Promoters bourses” – The Economic T
Slide 8: Section 2: Investment Highlights
Section 2: Investment Highlights
Slide 9: Key Investment Highlights
Key Investment Highlights Largest and only listed operator in the organised gaming market in India Exposure to the high growth potential of the Indian gaming/ leisure market First-mover advantage across the under-penetrated industry Platform to act as the consolidator in the nascent online gaming ma
Slide 10: Strong India macro backdrop
Strong India macro backdrop … Growing but volatile GDP Normalizing inflation rate 2,000 8.6% 8.3% 0.10 14.0% 11.9% 6.0% 0.08 12.0% 10.9% 1,500 0.06 9.3% 10.0% 8.6% 1,000 2.5% 0.04 0.5% 8.0% 6.7% 0.02 500 -1.2% 6.0% 4.9% 4.9% 0.00 0 -0.02 4.0% 2010 2011 2012 2013 2014 2015 2016 2010 2011 2012 2013 20
Slide 11: Relative performance also stacking up well
… with relative performance also stacking up well India is one of the fastest growing economies in the India is well placed on growth and interest rate world dynamics 8.0% Real GDP Growth (2016) 6.7% 6.8% 8.0% 6.00 6.50 8.00 4.25 6.00 6.0% 3.00 4.0% 3.1% 1.07 1.12 0.25 1.50 1.25 1.50 1.38 4.00 1.6%
Slide 12: India gaming market overview
India gaming market overview • The gaming industry in India is estimated at US$60 bn per year(1) and is expected to rise with the growth of online gaming • Though there is strong appetite for gaming in India, restrictive laws have curbed the growth of the industry − 12 states offer lottery − 6 state
Slide 13: India gaming regulatory overview
India gaming regulatory overview • Under the Indian constitution, state legislatures have been entrusted with the power to frame specific laws • Vast differences in the regulations of gaming in India with high entry barriers, strict regulations and a cap on the Overview number of licenses • Casinos
Slide 14: Delta Locations
Delta Locations Well located to tap into the large population centres Delta currently has operations in three distinct Indian locations • State in the Southwest of Indian on the Goa Accessibility Arabian Sea • Visited by a large number of international Goa Delta locations and domestic tourists for i
Slide 15: Goa
Goa The heart of gaming in India benefiting from increased tourism Trend in tourist visits to Goa • Goa is widely touted as the gaming capital of No. of tourists India 8,000,000 40.0% • It is a popular tourist destination, famous for its 30.0% 30.5% 30.0% beaches and long stretch of coastline (131 k
Slide 16: Goa gaming and competitive landscape
Goa gaming and competitive landscape Delta Corp holds 3 of the 6 offshore gaming licenses in Goa Competitive landscape in Goa Casino Pride Casino Pride 2 Casino Rio Deltin JAQK Deltin Royale Deltin Caravela Ownership Pride Group Pride Group MDLR Group Delta Corp Group Delta Corp Group Delta Corp Gro
Slide 17: Deltin Royale – The flagship destination
Deltin Royale – The flagship destination • Vessel, formerly known as M.V. Horseshoe Casino, was purchased from Caesar’s Entertainment and refurbished in India • Asia’s largest offshore casino vessel • Positioned as a premium casino to attract the most affluent segment of players in the market - Comp
Slide 18: Additional vessels to cater to a broader customer base
Additional vessels to cater to a broader customer base Deltin Jaqk (mass focused) Deltin Caravela (VIP focused) • Mass focused asset catering to each segment of • High-end product focused exclusively on the the market, particularly the value oriented nascent VIP market • Gaming area spread across 11
Slide 19: Hotels – The Deltin brand to compliment the gaming operations
Hotels – The Deltin brand to compliment the gaming operations Deltin Suites Deltin Palms • 106 room All-suite hotel and casino • 27 room boutique hotel • Houses Casino with approximately 2,500 sq.ft. gaming area 19
Slide 20: Daman – The Deltin: The next frontier
Daman – The Deltin: The next frontier • Daman is a Union Territory situated between Gujarat and Maharashtra - 2.5 hours drive from Mumbai; 1.5 - 4 hours drive from major cities of Gujarat - Drive-in destination for a large catchment of over 35 million people - Large visitation numbers from Gujarat d
Slide 21: Sikkim – The only approved casino gaming outside Goa
Sikkim – The only approved casino gaming outside Goa • Sikkim is a picturesque, mountainous state in Northeastern India bordering China, Nepal, and Bhutan • It is the only Indian state, in addition to Goa, to permit casino gaming • In 2016 Delta partnered with Hotel WelcomHeritage Denzong Regency fo
Slide 22: Online Platform – Key growth driver
Online Platform – Key growth driver • Online gaming in India is at a nascent stage, with the Trend in total Indian wireless subscribers size of the industry estimated at US$100-125m(1) millions 1500 11.5% 15.0% • India’s online gaming market growth is driven primarily 7.2% 6.6% 10.0% 4.2% by the gro
Slide 23: Strong and experienced management team
Strong and experienced management team Jaydev Mody Chairman • Mr. Mody is an entrepreneur with interests in multiple business sectors, including gaming and hospitality • He has over 35 years experience in the field of real estate development and more than 36 years practice in creating, developing, a
Slide 24: Section 3: Financial Summary
Section 3: Financial Summary 24
Slide 25: Capitalization Structure
Capitalization Structure Particulars** As at December 31, 2017 (INR lakhs/ US$) Short term borrowings (A): INR19.01 lakhs / US$0.03m Long term borrowings (B): INR149.18 lakhs / US$0.23m Current maturities of long term borrowings (C): INR82.02 lakhs / US$0.13m Total Long Term Debt (D = B + C) INR231.
Slide 26: Financial Performance Summary
Financial Performance Summary Nine months ended Particulars** (INR in lakhs/ US$) Fiscal 2017 Fiscal 2016 Fiscal 2015 December 31, 2017 Total income INR52,883.18/ INR45,960.14/ INR38,365.80/ INR30,739.61/ (including other income) US$82.3m US$70.7m US$59.1m US$47.3m INR19,975.95/ INR16,890.89/ INR12,
Slide 27: Appendix
DELTA Appendix
Slide 28: Goa gaming regulations
Goa gaming regulations Gaming regulations in Goa Frequency FY2015 FY2016 FY2017 FY2018 Application/ Rs. 20 lakh/ Rs. 20 lakh/ Rs. 30 lakh/ Once in 5 years Nil renewal fee US$30,500 US$30,500 US$45,700 Rs. 20 lakh/ US$30,500 during application; Security Deposit One time Nil Rs. 10 lakh/ US$15,200 dur
Slide 29: India industry dynamics relative to the rest of Asia
India industry dynamics relative to the rest of Asia Country India Vietnam Cambodia South Korea Philippines Malaysia Singapore Macau Estimated 2018 US$100- gross gaming ~ US$300m US$500m+ US2.6bn US$2.8bn US1.5bn US$4.1bn US$28.0bn 125m(b) revenue (a) Yes, but Provisional restrictions pilot licenses
Slide 30: #DELTINROVALE $ DELTINJAGK —§ DELTINCARAVELA § pettiwocwzonc
wb ss #DELTINROVALE $ DELTINJAGK —§ DELTINCARAVELA § pettiwocwzonc CASINO » PANJIM® GOA GANGTOK + SIKKIM HOTEL+DAMAN = JB | CASING*+HOTEL-GOA = J | HOTEL BRITTONA+ GOA