General Steel Holdings Inc · OTC:GSIH
General Steel — Q2 2010 Earnings Presentation
12 slides from General Steel's earnings presentation, Aug 6, 2010
Slide 1: Second Quarter 2010 Earnings Call Presentation
GENERAL STEEL HOLDINGS INC. Second Quarter 2010 Earnings Call Presentation Henry Yu, CEO & John Chen, CFO
Slide 2: Forward-looking statements
This presentation (including the financial projections and any subsequent questions and answers) contains statements that are forward-looking within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements are on
Slide 3: 2Q10 and 1H10 Financial Highlights
2Q10 and 1H10 Financial Highlights Demand Drivers Key Operating Metrics Third Quarter 2010 Outlook New Board Members Q&A ‘This presentation is intended to be viewed in conjunction with General Steel Holdings, Inc. second quarter 2010 earings call
Slide 4: Second Quarter Total Revenues and Shipment Volume
Second Quarter Total Revenues Increased 22.7% Year-over-Year USD in thousands 600,000 501,679 2009 2 201002 Second Quarter Total Shipment Volume Increased 6.8% Year-over-Year Metric Tons 4,020,000 1,010,755 1,000,000 ‘980,000 ‘960,000 BBB, AOE: 940,000 920,000 1H 2010 Total Revenues Increased 30.5%
Slide 5: Direct beneficiary of the "Go West" economic initiative
Direct beneficiary of the “Go West” economic initiative = One of the top five economic priorities from 2011-2015 = Continue to enjoy corporate tax rate at 15% = 235 construction and infrastructure projects under construction in Shaanxi Province this year Guanzhong-Tianshui SEZ — Covers two western p
Slide 6: Gross Profit and Gross Profit Margin in Second Quarter 2010
Gross Profit was $7.4 Million in the Gross Profit Margin was 1.5% in the Second Quarter of 2010 Second Quarter of 2010 6% 5.5% 22.5 5% 4% 3% 7. 2% 1.5% La] - lal | 0% + a2 2009 2.2010 2 2009 2.2010 USS (mm) 30.0 20.0 10.0 00 ‘This presentation is intended to be viewed in conjunction with General Ste
Slide 7: Gross margin at Longmen JV adversely affected in second quarter
Gross margin at our Longmen JV was adversely affected in the second quarter by the following factors: ~ ASP decreased approximately 15% from middle of April to the end of June ~The price of our primary raw materials stayed at relatively high levels in the second quarter of 2010. Monthly Average Sell
Slide 8: EBITDA for the three and six months ended June 30, 2010
EBITDA for the three months ended and six months ended June 30, 2010 was $18.4 million and $28.3 million, respectively. 8 ‘This presentation is intended to be viewed in conjunction with General Steel Holdings, Inc. second quarter 2010 earings call
Slide 9: Balance sheet (USD 000)
(uso ,000) Assets: ‘June 30, 2010 Cash and Restricted Ca: Accounts Receivable Notes Receivable Inventories. ‘Advances on Inventory Purchases Total Current Assets Property Plant and Equipment Total Assets Liabitities: Total Notes Payable Total Accounts Payable Total Short Term Loan, Customer Deposits
Slide 10: Third quarter 2010 outlook: pricing, raw materials and strategy
* Trend of average selling price * Trend of cost of raw materials ~ Iron Ore - Coke * Strategy to protect profit margin in a tough environment - Negative impact on gross margin partially offset by improved production and cost efficiencies at our Longmen JV - Stable and low cost source of raw materia
Slide 11: New Board Members
On July 23, 2010, the Company appointed Mr. Yong Tao Si and Ms. Angela He as directors. - Mr. Si was the former Chairman of Baotou Iron and Stee! Group Co., Ltd. - Mr. Siis currently the Vice President of China Iron and Steel Association (CISA). - Mr. Si's backgrounds and expertise will further enha
Slide 12: Contact Information
Contact Information Jing Ou-Yang Justin Knapp ‘General Steel Holdings, Inc. Ogilvy Financial, Beijing Tel: + 86-10-5879-7346 Tel: + 86-10-8620-6556 Email: jing. ouyang@gshi-steel.com Email: gsi@ogilvy.com Jessica Barist Cohen Ogilvy Financial, New York Tel: + 1-648-460-9989 Email: gsi@ogilvy.com 12
General Steel Holdings — Q2 2010 Earnings Presentation on 6ix