Investor Presentation Q3 2016 slide image

Investor Presentation Q3 2016

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 • 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 Communications ERC invests in IT equipment and fiber optic network throughout the entire site Fiber optic cables completed in Phases I and || TEVOTECH/Vodafone & Orange & Noor & Etisalat selected as business partners Services supplied through project partners: - High Speed Internet - IPTV (Internet Protocol Television) - VOD (Video On Demand) - 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 18.50 per m³ Hotels: EGP 13.00 per m³ Irrigation: • Golf and Green: EGP 9 per m³ Capacity: 14,000 m³ current - 75,000 m³ - 2035 (est.) Gross Margins of 50% + Budgeted CAPEX of EGP 180 million for a new 70 MW substation Capacity: 20 MW - current 300 MW - 2035 (est.) • Gross Margins TBA post sub-station Guiding Economics • • ERC's revenue share = 10%-40% of revenues ERC leases 13 mobile towers plots to Vodafone & Orange & Etisalat (revenue generating) • Fees are based on community management model as cost recovery 31 Investor Presentation Q3 2016 ERC Egyptian Resorts Company
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