Delta Corp. Ltd. (india) · NSE:DELTACORP
Delta Corp. Ltd. (india) — Delta — Investor Presentation (August 2018)
30 slides from Delta Corp. Ltd. (india)'s investor presentation, August 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$ 1.1 bn we? • Led by Chairman, Mr. Jaydev Mody, a first-g
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 • Completed INR 550 crores/ US$84m QIP equity raise • Launched land-based casino in Sikkim • Acquired an additional 36% stake in Daman Hospitality; increasing our stake to 87% 2014 -
Slide 6: Strong recent share price performance
Strong recent share price performance 1-Jan-2017 to 7-Aug-2018 Share Price Performance Stock Information Ticker DELTA IN US$ Market Capitalization 1.06 bn Shares Outstanding 270.9m Free Float 67.2% Average Daily Trading Volume (1M) US$10.7m (3M) US$9.3m Current Share Price (7-Aug-2018) INR 269.75 52
Slide 7: A well diversified ownership structure
A well diversified ownership structure NRIs • Delta’s promoters, Jaydev Mody and 0.7% family, hold 32.8% of the company’s Institutions shares through multiple investment 26.7% Promoters vehicles 32.8% • Renowned Indian investor Rakesh Jhunjhunwala, “the pied piper of Indian 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: … with 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 Deltin Caravela Deltin JAQK Deltin Royale Maharajah Casino Ownership Pride Group Pride Group Delta Corp Group Delta Corp Group Delta Corp Group MD
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 13
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 1,000 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 Welcom Heritage Denzong Regency f
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$100-125m(1) millions 1500 11.5% 15.0% • India’s online gaming market growth is driven primarily 7.2% 6.6% 10.0% 4.2% by the gro
Slide 23: Strong and experienced management team
Strong and experienced management team Jaydev Mody Chairman • Mr. Mody is an entrepreneur with interests in multiple business sectors, including gaming and hospitality • He has been creating, developing and managing businesses for 40 years • He is accredited for building Crossroads, India’s first gl
Slide 24: Section 3: Financial Summary
Section 3: Financial Summary 24
Slide 25: Capitalization Structure
Capitalization Structure Particulars** As at June 30, 2018 (INR lakhs/ US$) Short term borrowings (A): INR 18.60 lakhs / US$0.03m Long term borrowings (B): INR 159.87 lakhs / US$0.23m Current maturities of long term borrowings (C): INR 27.28 lakhs / US$0.04m Total Long Term Debt (D = B + C) INR 187.
Slide 26: Financial Performance Summary
Financial Performance Summary Three months ended Particulars** (INR in lakhs/ US$) Fiscal 2018 Fiscal 2017 Fiscal 2016 June 30, 2018 Total income INR 19,553.61/ INR 63,627.98/ INR 45,960.14/ INR 38,365.80/ (including other income) US$28.4m US$92.5m US$66.9m US$55.8m INR 7,367.25/ INR 27,563.64/ INR
Slide 27: Appendix
DELTA Appendix
Slide 28: Goa gaming regulations
Goa gaming regulations Gaming regulations in Goa Frequency FY2015 FY2016 FY2017 FY2018 FY2017 Application/ Rs. 20 lakh/ Rs. 20 lakh/ Rs. 30 lakh/ Rs. 1 Crore/ Once in 5 years Nil renewal fee US$29,100 US$29,100 US$43,600 US$1,45,500 Rs. 20 lakh/ US$30,500 during application; Security Deposit One tim
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$1.5bn US$2.6bn US$2.8bn US1.5bn US$4.1bn US$28.0bn 125m(b) revenue (a) Yes, but Provisional restrictions pilot license
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