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
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