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Investor Presentaiton

Revenue Stream 3: Utilities and Community Management ERC's extensive infrastructure investments position it as the exclusive utilities and services provider - a model that generates sustainable cash flows. . . Water ERC invests in desalination plant and equipment Management and maintenance subcontracted for a fixed fee • Water sold to developers at market rates 1 cost recovery and 3 profit centers from recurring revenues Electricity • ERC invests in internal electricity grid • ERC licensed electricity distributor • Electricity sub-station in design phase. Once online will result in substantially higher profit margins Communications • ERC invests in equipment and black fiber network throughout entire site • Services supplied through project partners High-Speed Internet VOIP IPTV Other Services Supply of Community Services • Ernst Body Corporate • designed the community administration procedures and community rules and regulations. ERC hired a team of professionals who currently manage and administer the community and its resources. • Volume and quality-based pricing Potable: Apartments: EGP 13.20 per m³ Hotel: EGP 8.80- EGP 6..55 per m³ Irrigation: Golf and Green: EGP 5.78-5.28 per m³ Capacity: 10,000 m³ current 75,000 m³ - 2035 (est.) • Gross Margins of 50% + Guiding Economics • Allocated CAPEX of USD 21.6 mn for the substation • Capacity: 20 MW current 300 MW-2035 (est.) Gross Margins of 50%+ post sub- station • . Quad-play fiber optic cables completed in Phases I and II Tevotech selected as business partner • ERC's revenue share = 25% - 40% of revenues • Fees are based on community management model as cost recovery • 15% Management Fees starting 2014 34 Investor Presentation 2012 ERC Egyptian Pesorts Company
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