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

Investor Presentation

Table of Contents Introduction 01 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$ 1.5BN 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 • A Boutique hotel located in Goa business • Integrated resort in Daman segments • Land-based casino in Sikkim • 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 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 - 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 • Acquired land in Sri Lanka 2010 - 2013 • Raised ₹ 285 crores/ 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 ₹ 82.5 crores/ US$12.6m through the Qualified Institutional Placement (QIP) route, a first for Delta Corp • Entered the Real Estate business in Nairobi, East Africa 2007 - 2008 • ICICI Ventures invested ₹82 crores/ 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 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 52-week high on (23-Jan-2018) INR401.60 52-week low on (16-Feb-2017) INR112.30 1-month performance 13.8% 3-month performance 37.8% 6-month performance 121.8% 12-month performance 184.9% Source: Bloomberg 6

A well diversified ownership structure • Delta’s promoters, Jaydev Mody and family, hold 33.9% of the company’s shares through multiple investment NRIs 0.7% vehicles • Renowned Indian investor Rakesh Institutions Jhunjhunwala, “the pied piper of Indian (DII + FII) Promoters bourses” – The Economic Times, holds 27.6% 33.9% 7.48% of the company through various entities and sits on the board • Notable institutional holders include (1) : Corporates 9.8% Individuals 28.0% (As on 31st Dec 2017) (1) Source: Bloomberg 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 8.6% 2,000 0.10 14.0% 8.3% 11.9% 0.08 10.9% 12.0% 6.0% 1,500 0.06 9.3% 10.0% 8.6% 2.5% 1,000 0.04 8.0% 0.5% 6.7% 0.02 500 -1.2% 4.9% 4.9% 6.0% 0.00 0 -0.02 4.0% 2010 2011 2012 2013 2014 2015 2016 2010 2011 2012 2013 2014 2015 2016 GDP per Capita GDP per Capita Growth Source: World Bank Source: World Bank Stabilizing currency Thriving equity market 70 34000 68 31000 66 28000 64 25000 62 22000 60 58 19000 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 INR Spot Currency BSE Sensex Index 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% 4.00 1.07 1.12 0.25 1.50 1.25 1.50 1.38 4.0% 1.6% 1.8% 4.0% 1.7% 0.00-0.06 1.0% 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 till date FII flows (USD bn) 0% 40.0 29.3 Appreciation 24.5 -1.4% -5.1% -6.8% -7.9% -9.6%-11.3% 30.0 20.0 -20% 17.8 17.6 16.2 10.8 20.0 -29.1%-30.9% -36.0% -40% 8.6 8.1 6.7 3.1 3.3 3.2 10.0 2.7 2.2 1.2 1.6 1.7 1.5 0.8 0.7 -60% Depreciation 0.0 -80% -0.2 -0.5 -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$100-125m 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 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 likely to be announced soon. This is envisaging the moving of off-shore casinos on to land in a prescribed time frame (1) KPMG 12 (2) ICRA Report

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 number of licenses Overview • Casinos are currently allowed in Goa, Sikkim and Daman (for Daman – license yet to be issued by government) • Certain states have recognized “games of skill” and such games are not regulated by gaming laws • Casino can be land based/on shore, riverboat/offshore or online - Land-based casinos are permitted in Goa, Daman and Sikkim - Offshore casinos are permitted only in Goa Casino - Online casinos are permitted in Sikkim and Nagaland formats • Land based casinos are housed within hotels and offer electronic games and slot games • Off shore casinos offer live games (e.g. games manned by dealers) in addition to electronic games • The Goa, Daman and Diu Public Gambling Act, 1976 allows on-shore casinos to be set up only at 5-star hotels or off-shore vessels with prior permission from the government • Goa gaming The State Government of Goa has the authority under law to issue licenses and rules to regulate casinos • regulations Casino licenses are typically awarded for a term of 5 years with fees payable annually and there are currently six offshore casinos and 10 on shore casinos • Gaming tax has been now subsumed under GST and the applicable rate is 28% Daman and • Daman: Currently no casinos in operation with one casino waiting for final approval Sikkim gaming • Sikkim: Currently there are three land based casinos operating in Sikkim regulations • The Consolidated FDI Policy Circular 2016 prohibits FDI in gambling and betting including casinos. Furthermore, Foreign direct technology collaboration in any form including licensing, trademark, brand name, management contract is also investment prohibited for lottery, gambling and betting activities 13 Source: ICRA Research