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Investor Presentaiton

Revenue Stream 3: Community and Utilities Management ERC's extensive infrastructure investments position it as the exclusive utilities and services provider - a model that generates sustainable cash flows Water 1 cost recovery and 3 profit centers from recurring revenues Electricity Communications • ERC invests in desalination • plant and equipment Management and maintenance subcontracted for a fixed fee • Water sold to developers at market rates • ERC invests in internal electricity grid • ERC is the licensed electricity distributor . Electricity sub-station in design phase. Once online will result in substantially higher profit margins • 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 15.00 per m³ • Hotels: EGP 10.00 per m³ Irrigation: • Golf and Green: EGP 6.25 per m³ Capacity: 14,000 m³ - current 75,000 m³ - 2035 (est.) Guiding Economics • Budgeted CAPEX of EGP 100 million for a new 40 MW substation ⚫ Capacity: 20 MW current 300 MW-2035 (est.) • Gross Margins TBA post sub-station Quad-play fiber optic cables completed in Phases I and II • Tevotech & LinkdotNet selected as business partners • ERC's revenue share = 15%-40% of revenues • Fees are based on community management model as cost recovery • Gross Margins of 50% + 37 31 Investor Presentation Q2/1H 2016 ERC Egyptian Resorts Company
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