Investor Presentation Table of Contents 01 Introduction 02 - PowerPoint PPT Presentation

Investor Presentation

Table of Contents 01 Introduction 02 Investment Highlights 03 Financial Summary 04 Appendix 2

Section 1: Introduction

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$ 0.8 bn we? • Led by Chairman, Mr. Jaydev Mody, a first-generation entrepreneur and leading Indian real estate visionary • Transforming into a gaming and leisure company of international standards Business • Expanding gaming related businesses throughout India with a focus on Goa strategy and the Indian online market • Three offshore gaming boats situated in the Mandovi River, Goa • All-suite hotel and onshore casino in North Goa Key • Integrated resort in Daman business • Land-based casino in Sikkim segments • Upcoming Land-based casino in Nepal • Online platform for games of skill • Exposure to the high growth potential Indian gaming / leisure market • Largest and only listed operator in the organised gaming market in India Key investment • First-mover advantage across the under-penetrated industry highlights • High quality management team with significant operating expertise Platform to act as the consolidator in the nascent online gaming market • 4

Historic milestones in the company’s development Acquired in excess of 25% stake by investing upto INR 70 cr / US$ 10m in Jalesh Cruise • • Acquired 19.55% stake by investing INR 20.5cr / US$ 3.0m in Halaplay, a fantasy sport site 2018 - 2019 • Acquired rights to operate a land based casino in Nepal, to be operational soon • Acquired Adda52.com, India’s leading online poker site 2015 - 2017 • Completed INR 550 cr / US$84m Qualified Institutional Placement (QIP) equity raise • Launched land-based casino in Sikkim Acquired an additional 36% stake in Daman Hospitality; increasing our stake to 87% • 2014 - 2015 • Launched land-based casino in Goa • Commenced operations of Daman Hotel 2013 - 2014 • Made a profitable exit from the Real Estate business • Launched Asia’s largest offshore casino in Goa • Acquired third offshore casino, Casino Caravela 2010 - 2013 • Acquired land in Sri Lanka • Raised INR 285cr / US$43m through preferential allotment to Rakesh Jhunjhunwala & Group • Demerged Textiles business • Commenced operation of 2 offshore casinos, Casino Royale and King’s Casino 2008 - 2010 • Raised INR 82.5 cr / US$12.6m through the QIP route, a first for Delta Corp • Entered the Real Estate business in Nairobi, East Africa 2007 - 2008 • ICICI Ventures invested INR82 cr / US$12.5m, a major private equity deal for Delta Corp 2006 - 2007 Entered the Gaming and Hospitality business • 1990 – 1991 • Starts as a Textiles and Real Estate consultancy company 5

Strong recent share price performance 1-Jan-2017 to 4-Jun-2019 Share Price Performance Stock Information Ticker DELTA IN US$ Market Capitalization 0.81 bn Shares Outstanding 270.9m Free Float 67.2% Average Daily Trading Volume (1M) US$8.8m (3M) US$5.8m Current Share Price (4-Jun-2019) INR 207.70 52-week high on (31-Aug-2018) INR 282.00 52-week low on (17-May-2019) INR 156.00 1-month performance -14.1% 3-month performance -16.7% 6-month performance -12.1% 12-month performance -5.5% 6

A well diversified ownership structure Delta’s promoters, Jaydev Mody and NRIs • family, hold 32.8% of the company’s 1.0% shares through multiple investment Institutions vehicles Promoters 26.5% • Renowned Indian investor Rakesh 32.8% Jhunjhunwala, “the pied piper of Indian bourses” - The Economic Times, holds 7.57% of the company through various entities and sits on the board Notable institutional holders include (1) : • Corporates 8.5% Individuals 31.2% (As on 31 st May 2019) 7

Section 2: 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 market High quality management team with significant operating expertise 9

Strong India macro backdrop … Growing but volatile GDP Normalizing inflation rate 14.5% 2,500 16.0% 11.9% 10.9% 12.0% 2,000 12.0% 9.3% 8.5% 10.0% 7.6% 7.4% 1,500 8.0% 8.0% 8.8% 2.0% 1,000 4.0% 5.8% -1.0% 0.3% 4.9% 6.0% 6.3% 500 0.0% 4.0% 2.5% 0 -4.0% 2010 2011 2012 2013 2014 2015 2016 2017 2.0% 2010 2011 2012 2013 2014 2015 2016 2017 GDP per Capita GDP per Capita Growth Source: World Bank Source: World Bank Stabilizing currency Thriving equity market 76 40,000 74 37,000 72 34,000 70 31,000 68 28,000 66 64 25,000 62 22,000 60 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 BSE Sensex Index INR Spot Currency Source: Bloomberg Source: Bloomberg 10

… 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 6.50 6.00 6.7% 6.8% 8.0% Real GDP Growth (2016) 8.0% 8.00 4.25 6.00 6.0% 3.00 3.1% 1.6% 1.7% 1.0% 1.8% 4.00 1.07 1.12 0.25 1.50 1.25 1.50 1.38 4.0% 4.0% 0.00 -0.06 2.00 2.0% 0.00 0.0% 0.0% -2.00 -0.2% USA Singapore UK Australia Euro Japan India China Indonesia Malaysia Korea Thailand Taiwan -4.0% -3.6% -8.0% Global US Euro Japan UK China India Brazil Russia 2016 GDP growth (y/y, %) Policy Rates (RHS) Source: IMF Source: IMF INR is one of the best performing EM currencies Just three years of net outflows since 1993 Performance since Jan-14 FII flows (USD bn) 29.3 0% 40.0 Appreciation 24.5 -1.4% -5.1% -6.8% -7.9% -9.6% -11.3% 20.0 30.0 17.8 17.6 -20% 16.2 10.8 20.0 -29.1% -30.9% -36.0% 8.6 -40% 8.1 6.7 3.3 3.1 2.7 3.2 2.2 1.6 1.7 10.0 1.2 1.5 0.8 0.7 -60% Depreciation 0.0 -0.2 -0.5 -80% -75.5% -10.0 USD/THB USD/INR USD/KRW USDSGD USD/CNY USD/IDR USD/MYR USD/ZAR USD/BRL USD/RUB -12.2 -20.0 CY93 CY95 CY97 CY99 CY01 CY03 CY05 CY07 CY09 CY11 CY13 CY15 Source: Bloomberg Source: Motilal Oswal 11

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 states allow horse racing − 2 states (Goa and Sikkim) and one union territory (Daman) allow casino gaming • Other gaming avenues in India have been able to garner a huge market while the casino industry has lagged behind Lottery: US$12-14 bn estimated annual turnover (2) − − Horse racing: US$250-400m estimated annual turnover (2) Casino: US$200m estimated annual turnover (2) − • A commercial casino can take the form of a land-based facility/ on-shore casino, or a riverboat facility/ off-shore casino, or an online casino depending on the jurisdiction − Land-based casinos are housed within 5-Star hotels and offer electronic games and slot machines − Off-shore casinos are parked in vessels anchored in a river and can offer both live and electronic games • A change in policy with regards to Casino has been announced and details are expected to be out soon. This envisages moving of off-shore casinos on to land within 4 years from date of announcement of detailed policy. (1) KPMG 12 (2) ICRA Report