(Formerly known as Arrow Webtex Limited)

Transcription

1 (Formerly known as Arrow Webtex Limited)

2 Disclaimer Certain statements made in this presentation may not be based on historical information or facts and may be forward looking statements, including those relating to general business plans and strategy of Delta Corp Limited (the "Company"), its future outlook and growth prospects, and future developments in its businesses and its competitive and regulatory environment. Actual results may differ materially from these forwardlooking statements due to a number of factors, including future changes or developments in the Company's business, its competitive environment, its ability to implement its strategies and initiatives and respond to technological changes and political, economic, regulatory and social conditions in India. This presentation does not constitute a prospectus, offering circular or offering memorandum or an offer to acquire any shares and should not be considered as a recommendation that any investor should subscribe for or purchase any of the Company's shares. Neither this presentation nor any other documentation or information (or any part thereof) delivered or supplied under or in relation to the shares shall be deemed to constitute an offer of or an invitation by or on behalf of the Company. The Company, as such, makes no representation or warranty, express or implied, as to, and does not accept any responsibility or liability with respect to, the fairness, accuracy, completeness or correctness of any information or opinions contained herein. The information contained in this presentation, unless otherwise specified is only current as of the date of this presentation. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent development, information or events, or otherwise. Unless otherwise stated in this document, the information contained herein is based on management information and estimates. The information contained herein is subject to change without notice and past performance is not indicative of future results. The Company may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such revision or changes. This presentation may not be copied and disseminated in any manner. THE INFORMATION PRESENTED HERE IS NOT AN OFFER FOR SALE OF ANY EQUITY SHARES OR ANY OTHER SECURITY OF DELTA CORP LIMITED. This presentation is not for publication or distribution, directly or indirectly, in or into the United States, Canada or Japan. These materials are not an offer of securities for sale in or into the United States, Canada or Japan. 2

3 Promoted by Jaydev Mody Jaydev Mody, promoter of Delta Corp has 22yrs of experience in real estate He was the erstwhile Managing Director of Peninsula Land Ltd (promoted by Ashok Piramal Group) Person behind Crossroads Mall One of India s first international stature malls Peninsula Corporate Park First dedicated Office Complex 3

4 Delta Corp Ltd - Corporate structure Delta Corp Limited p (formerly Arrow Webtex Limited) ICICI Venture % Pacific Corporate 7.50% 90% 100% 90% 100% 50% 74% Delta Corp Ltd - Corporate structure Highstreet Cruises & Entertainment Mundus Hospitality AAA Aviation Delta Pan Africa (Kenya) PLL Delta Hotels Delta Hospitality 54% 50% 35% 100% Victor Hotels and Motels Delta Corp East Africa Peninsula Land Limited Advani Hotels & Resorts Casino Royale Kings Casino Casino Caravela Gaming & Entertainment Aviation Real Estate Hospitality 4

5 Delta.. the largest listed gaming company in India Early entrant into the high growth gaming industry in India Significant player in a regulated market Have interest in offshore gaming licenses and potential land based licenses Largest gaming space > 12,000 sq ft Increasing focus on gaming and demerging non-core segments Stable revenue streams from other business Textile business recently demerged Will review existing portfolio; restructuring as gaming portfolio grows (regulations driven) 5

6 Delta Corp Thinking BIG!!! Entertainment & Gaming Real Estate Three offshore casino in Goa (Two majority owned while stake of ~35% in 3 rd Casino i.e Casino Goa ) In-principle EoI for a casino in Daman East Africa : JV with Reliance Industries Rental Income from Trade Plaza (a property developed by Delta Corp) Income from consultancy services for real estate Aviation NSOP License for Flight chartering services 6

7 Entertainment & Gaming Business Noah s Ark..Cruising the goan way. 7

8 Casino s : 2nd Largest form of gambling (%) Forms of gambling participated in during the last 12 months in U.S. 48 Indians wager over $15bn annually And this is only reported gambling! Playing the lottery Casino gambling 13 Playing poker 6 Wagering on a race 2 Internet gambling Source: Luntz, Maslansky Strategy Research and Peter D. Hart Research Associates But casino gambling is still less than $50m (0.3% of the lottery industry) And gambling in casinos outside India Indians form >70% of the visitors in 9 Nepal casinos Indians also visit Genting, Macau for gambling 8

9 Is there a market for gaming in India? Lottery tickets for the mass Cricket betting in Indian blood! Industry valued at $12.5bn $1.5bn wagered in one World Cup match Horse Racing for the upper crust BUT.. A Casino? Annual turnover >$250m Annual turnover <$50m 9

10 Global casinos High value creators Las Vegas Sands Corp MGM Mirage Wynn Resorts (US$ bn) x 36.6 (US$ bn) x 24.6 (US$ bn) x FY10 PE (x) FY10 EV/EBITDA (x) Global peers EBITDA Margins (%) Fixed costs provide high operating leverage Las Vegas Sands 36 Wynn Resorts 40 MGM Mirage 48 Indian peers Caravela 53% 10

11 US: Introducers of Casino culture to the world Gross gaming revenues (GGR) of of $34.13bn in in Las Las Vegas in in Nevada and and Atlantic City City in in New New Jersey are are the the dominant casino regions 54.5m 54.5m Americans visited visited Las Las Vegas Vegas casinos casinos in in making making 376m 376m trips trips (Source: Harrah s Entertainment Polling data) Key casino cities in US GGR Visitor volume (in m) No of casinos Nevada $12.8 billion New Jersey $4.9 billion Mississippi $2.9 billion Indiana $2.6 billion Louisiana $2.6 billion *GGR The amount a gaming operation earns before taxes, salaries and other expenses are paid (the equivalent of sales, not profit 11

12 Delta Corp : A significant casino player in India Gaming space Delta Corp has an an aggregate gaming space of ~12,000 sq ft Dominant player in a restrictive environment Acquired 2 of the 6 licenses issued by the Goa government till date Delta Corp has also acquired a stake of ~35% in the Advani Hotels which owns 51% in Caravela Also holds an in-principle EoI for a casino in Daman High Roller attractions Casino Royale - separate gaming zones for VIP and VVIP guests Amphitheater and helipad on the sun deck of Casino Royale 6,000 sq ft live kitchen managed by China Garden 12

13 GOA the new Las Vegas of the East!! Goa government has granted FIVE INCREMENTAL LICENSES for off-shore live casinos till date Nine land casinos also present in 5 star hotels (live gambling not permitted) Other than Goa, Sikkim and Daman are the only Indian states permitting casinos License owner Status of casino Name of Casino Capacity Advani Hotels Operational since 1999 Caravela 300 Leela Group of Hotels Operational since June 2008 Casino Rio - Delta Corp Operational since Sept 2008 King's Casino 217 Delta Corp Operational since Oct 2008 Casino Royale 888 Mariott (Salgaonkar Group) Not operational Boa Sorte - Goa Coastal Resorts Operational Pride of Goa - 13

14 Delta Corp Casino business model Casino Royale Kings Casino Capacity of 888 people Four decks with a separate VIP and VVIP gaming area. Total area 31,900 sq. ft. Live gaming area Approx. 10,098 sq. ft. A helipad and amphitheater on the sun deck High speed feeder boats and four jetties 6,000 sq ft live kitchen managed by China Garden A 45-key floating hotel will be attached to the casino A 2000 sq. ft. gaming casino vessel with a capacity of 217 people Total investment of Rs100 mn Delta Corp plans to further invest and increase the size of the vessel in the near future Size of boat permits mooring in shallow water thus giving access to other river in Goa. Creche and Aquabar Games Number Slot Machines 40 Roulette 19 Blackjack 17 Texas Hold'em Poker 4 Mini Flush 2 Flush 2 Craps 1 Money Wheel 1 Other Games 13 Note: Other Games includes Caribbean Stud Poker and Baccarat 14

15 Infrastructure Jetties Noah s Ark : Barco Lento : Noah's Ark is floating restaurant on a hand - crafted wooden cruise boat with a full-fledged bar and restaurant serving Goan food while it glides over the River Mandovi in Goa. Noah s Ark also has a jetty allotted to it. It is also used as a Boarding Point for Feeder Boats for Casino Royale & Kings Casino Reis Magos and Betim Embarkation point for Casino Royale and Kings Casino Floating bar and restaurant Vallet Parking Reception Facilities Creche Entertainment Highstreet has acquired riverine land measuring sq. mtrs. at Betim and 2700 sq. mtrs. at Reis Magos village to develop jetties which will provide feeder services to Casino Royale & Kings Casino in River Mandovi. Both Betim and Reis Magos jetties are on the opposite side of the River Mandovi to the existing Jetties, Which will help Highstreet to unfold the attractiveness to a larger target audience. 15

16 Infrastructure - Feeder Boats Casino Royale and King s Casino is serviced via our modern fleet of 6 Feeder Boats Gulf Crafts Touring 36. Proven sea-handling and performance, functional yet comfortable. Fully air-conditioned luxurious interiors. 16

17 Stake in Advani Hotels.. Caravela Delta Hospitality Owns ~35% of Advani Hotels and Resorts Operates off shore casino Caravela in Goa and owns Ramada Hotel 17

18 18 10, ,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 June-09 July-09 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr ,910 4,481 5,984 5,275 5,,086 4,611 7,309 7, ,7477 1,306 1,322 Footfall & Other operational data Casino Royale 1,400 Kings Casino 1,200 1, Monthly Foot fall May June July

19 Footfall & Other Operational Data WI- Foreigner, 7% Casino Royale WI-Foreigner, 1% King's Casino VIP, 35% WI-Local, 38% WI-Local, 58% VIP, 61% Client Distribution 19

20 Footfall & Other Operational Data Casino Royale King's Casino Thousands Thousands Highroller Walk-in 0 Highroller Walk-in GGR - March 09 20

21 What are we doing to increase footfalls. Move from word of mouth advertising to major campaign Advertising campaign launch in June in all the major metros and mini metros Advertising deal signed with Times of India - promote the casino and hospitality business over next 3-5 years Proposed tie ups with 5 star properties in Goa, travel agents & airlines Dedicated and experienced Marketing team in place focusing on tie ups with travel agents to market specially designed casino packages involving hotel, airfare and free chips Loyalty program to reward and incentivize regular highrollers INCREASE FOOTFALL = DIRECT INCREASE IN BOTTOMLINE 21

22 Growth Drivers : Overall market is growing In the last 12 months Five offshore licences were issued Four offshore casinos began operations Four land based casinos have begun operations The daily average footfalls today are what Caravela achieved after 8 years of operations Flexibility to open new markets in Goa itself Expand into land based operations Presently market in focused on North Goa Can move one of the vessels to South Goa to attract the South Goa visitors 22

23 Growth Drivers Experienced team who understands the business Opportunity to enter into management contracts with existing players in Goa Opportunity to enter into new markets when it opens up Have combination of Own + Manage model 23

24 Casino : Cost Structure 0ther Operating cost 15% Ship Operating 11% Salary & Benefits 32% Variable Cost 14% Advertisement & Marketing 11% Cost Of sales 9% Fixed Cost 86% License Cost 22% 24

25 Casino : House Edge Casinos, do not really gamble. The odds of the games insure that over a long run, the house will always come out ahead. Probability of wins: GAME Hold (%)* House Edge(%) Slot Machines Blackjack Single Zero Roulette Caribbean Stud Poker Flush (Three Card) *Hold A measure of how much a casino expects to win, expressed as a percentage of the player s wager 25

26 26 Real Estate - Providing Stable Income

27 Real Estate Consulting & Development Real Real estate consulting Consulting Consulting income income from from Peninsula Peninsula Properties Properties Currently Currently three three ongoing ongoing projects projects Income from developed commercial properties A ~135,000 ~135,000 sq sq ft ft property property in in Prabhadevi, Prabhadevi, Mumbai Mumbai called called Tradeplaza Tradeplazalease lease rentals rentals of of Rs250m Rs250m FY09: ~Rs90m + Annual rentals of ~Rs250m with a price escalation of 15% beginning FY10 Revenues of ~Rs340m assured 27

28 Real estate in East Africa Entered into into a 40:60 JV JV with with a wholly-owned subsidiary of of Reliance Industries Limited to to develop real real estate in in East East Africa JV JV has has already invested Rs2.0bn, acquiring nine nine plots of of land land in in prime locations of of Nairobi approx approx 803,720 million million sq. sq. ft. ft. to to be be developed for for commercial as as well well residential purpose Two Two projects are are currently under development One One project --leased out out to to Ministry of of Justice & Constitutional Affairs, Kenya 28

29 29 Aviation Business

30 Aviation Eyes on the sky!! AAA Aviation Licensed NSOP Existing fleet includes One fixed wing Beechcraft KingAir C90B One chopper Robinson R - 44 Flight chartering services commenced in FY09 30

31 31 Company : A Brief Background

32 Shareholding Pattern NRIs, 0.80% Individual shareholders, 17.00% ICICI Ventures, 15.00% Promoters, 54.60% Other Bodies Corporate, 12.20% Institutions, 0.20% As on 30th June

33 Delta Corp Key Financials Rs. In Million Key Financials FY09 FY08 Textile Division Gaming Division Real Estate Division Hospitality Division Others Less: Inter segment Net sales (Rs m) 1, , EBITDA EBITDA Margins (%) 44.7% 46.5% Net profit (Rs m) Shares in issue (m) Net Worth 2, ,

34 Board of Directors Name Jaydev Mody Ashish Kapadia Ambika Kothari Mahesh Gupta Rajeev A. Piramal Rajesh Jaggi Sudarshan Bajoria Vrajesh Udani Designation Chairman, Promoter Director Managing Director Promoter Director Independent Director Independent Director Independent Director Nominee Director Independent Director 34

35 Delta Corp : Human Capital Name Jaydev Mody Ashish Kapadia Arun Kapoor Hardik Dhebar Neelesh Shah Soundararajan M. Narinder Punj James Anderson Bora Ozel Capt. V. K. Madan Designation Chairman, Delta Corp Ltd. Managing Director, Delta Corp Ltd. Group CEO, Delta Corp Ltd. Group CFO, Delta Corp Ltd. Executive Vice Chairman, DCEAL (Kenya) Managing Director & CEO, DCEAL (Kenya) Managing Director, Highstreet Cruises and Entertainment VP, Marine Operations, Highstreet Cruises & Entertainment GM, Casino Operations, Highstreet Cruises & Entertainment Director, AAA Aviation Private Limited 35

36 36 Thank you