Gse Co., Ltd · KRX:053050
Gse — Investor Presentation (November 2012)
18 slides from Gse's investor presentation, Nov 6, 2012
Slide 1: Durability Runs Deep
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Slide 2: Forward Looking Statements
Forward Looking Statements Statements made during the course of this presentation include forward-looking statements thet are subject to risks and uncertainties. All statements other than statements of historical fact included in this presentation are forward-looking statements. Forward-looking stat
Slide 3: Who We Are
Who We Are + Global provider of geosynthetic containment solutions + Leading worldwide market share; #1 or #2 in all end-markets * Significant and growing opportunities in international and emerging markets + Expanding growth opportunities — Oil & Gas Fracking, Coal Ash + Strategic focus on higher m
Slide 4: Our Strategy — Investment Highlights
Our Strategy — Investment Highlights w m Global market leader with established brand recognition Expanding Global regulatory environment driving increased demand Emerging growth opportunities in Coal Ash, Oil & Gas Fracking industries Precious Metal (Gold and Copper) mining expected to grow 6% annua
Slide 5: Global Regulatory Climate Remains a Tailwind
Global Regulatory Climate Remains a Tailwind «= Increased regulation of ‘groundwater activity Coal ash management Shale gas /fracking Mine work tailings Brazil - First national waste ‘management law (2010) Chile ~ Environmental regulations and sustainability are a priority GSE Water contaminatio reg
Slide 6: Precious Metals, Water Consumption, Solid and Hazardous Waste
+ Precious Metals + Water Consumption, Agriculture + Solid and Hazardous Waste Irrigation, Waste Water Treatment Containment, Industrial Waste + Not Coal iron Ore Sule + Canals, Reservoirs, Storage + Heep Leach Pads, Tailings and . Saints pantera Tanks, Ponds Landfill Cells, Closures and Ponds + Pro
Slide 7: aon Tg,” aig
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Slide 8: Current Product Portfolio
Current Product Portfolio Geomembranes Geomembranes are the most widely used products for solid waste containment (such as land liners), mining, and water ‘containment applications, GeoSynthetic Clay Liners Geosynthetic clay liners (GOLs) comtine geosynthetics with sodium bentonite clay {o form ahig
Slide 9: Margin Expansion: Re-Engineering Core Products
Margin Expansion: Re-Engineering Core Products « Utilizing polymer science to create a three-tier product strategy 2011 : Gross Margin Target Gross Margins 25-29% 300 - 400 bps ~14% 15-17% gross margin improvement 17-21% {9}
Slide 10: Emerging Growth Drivers
Emerging Growth Drivers + 629 existing impoundments at + Potential addressable market 235 coal utilities(1) ‘opportunity up to $1 billion through 2016 (2) + Cap existing impoundments 5 : + Recent lower natural gas prices + Line new coal ash landfills Shifting some drilling West to + Planned expansio
Slide 11: Coal Ash Barrier System — Total System Solution
Coal Ash Barrier System — Total System Solution It is the only system of its kind and combines three of our innovative geosynthetic products working in tandem to provide superior results and airspace savings. + CoalDrain Geocomposite, Leak Location Liner, Coal Ash Resistant GCL (68 coal ash systom G
Slide 12: International Emerging Markets
International Emerging Markets * China — New manufacturing facility being developed that is slated to come online in 2013 — Growing demand in a region where we are already recognized as an established leader = Heightened focus on environmental regulation is expect to drive significant growth * Thail
Slide 13: Multi-faceted Growth Strategy
Multi-faceted Growth Strategy 2012 2013 2014 9015 2016 2017 GSE © Market Expansion (Mining, Coal Ash, Hydrocarbon market) ‘@ New Customer Acquisitions. @ Products (Coal Drain, Mine Drain, Leak Location, Application Specific) @ Sales Coverage in attractive geographies ‘@ Acquisitions & Partnerships @
Slide 14: Financial Highlights
Slide 15: 3Q'12 Earnings Recap
3Q’12 Earnings Recap * Sales of $121.2 million was lower compared to $146.8 million in the prior year period * Challenging operating environment as a result of lower North American volumes and a competitive pricing landscape + Increased Gross Margins by 260 basis points compared to 3Q’11 due to the
Slide 16: Financial Performance Overview
Financial Performance Overview [ Revenue Gross Profit Margin Adjusted EBITDA Margin 500 10.0% 120% shad 163% 450 16.0% 152% 10.0% 10.0% ht ie os 40% 128% 350 sit) 82% $291 129% | 14% 8.0% 300 65% 10.0% 250 60% 0.0% 200 - 6.0% 40% 100 40% 20% %0 2.0% 0 0.0% 00% 1 2009 20102011 9 Months 2009 20102011
Slide 17: Capital Structure — as of 9/30/2012
Capital Structure — as of 9/30/2012 Actual Cash and Equivalents $12 Revolving Credit Facility $26 Term Loans 157 Other “ Total Long-Term Debt, incl. Current Portion $183 Stockholders’ Equity $97 Total Capitalization $280 Net Debt $174 Net Debt / EBITDA. 3.9x GSE
Slide 18: Our Strategy — Investment Highlights
Our Strategy — Investment Highlights + Expanding Global regulatory environment driving increased demand Emerging growth opportunities in Coal Ash, Oil & Gas Fracking industries Strong expected growth in Gold and Copper mining Expanding international footprint in China, Thailand, and Egypt Re-enginee