General Steel Holdings Inc · OTC:GSIH
General Steel — Investor Presentation (September 2009)
23 slides from General Steel's investor presentation, Sep 10, 2009
Slide 1: Investor Presentation
Investor a » J
Slide 2: Disclaimer and forward-looking statements
The material presented is a presentation of general background information about General Steel Holdings as of the date of the presentation. ‘Itis information in summary form and does hot purport t6 be complete. tis not intended to be relied upon as advice to potential investors. This presentation is
Slide 3: Securities offering notice
Securities may not be offered or sold in the United States unless they are registered or exempt from registration under the Securities Act of 1933. Any offering of securities to be made in the United States will be made by means of an offering memorandum that may be obtained from the underwriters. S
Slide 4: China is Different
China is Different General Steel Holdings, Inc) NOT an ORDINARY Steel Company!!!
Slide 5: The Chinese economy has not been impacted as much as other major economies
* The Chinese economy has not been impacted as much as other major economies. - Mainland China GDP grew 6.1% in the first quarter of 2009 and 7.9% in the second quarter of 2009 — Shaanxi province (our major market) GDP grew 11.8% in the first half of year 2009 ‘Source: National Bureau of Statistics
Slide 6: Revenue
Revenue 2007 2008. 1400% growth Source: Company fling 6
Slide 7: Revenue growth 2008H1 to 2009H1
‘2008H1 2009H1 8% growth ‘Souros: Company fling + Continued Growth in 2009 — Credit crisis — Global economic slowdown — Lower selling prices
Slide 8: Sales Volume
Sales Volume Nition Tons 2008Ht ote 50% growth ‘Source: Company fling + Continued Growth in 2009 — Principal market shows strong, sustained demand. — Long-term drivers for regional economic growth in place.
Slide 9: Revenue Generated for Each Dollar of Shareholder Equity
age te dings, Inc. si Revenue Generated for Each Dollar of Shareholder Equity 2005 2006 2007 2008 ‘Souroe: Company fling 9
Slide 10: General Steel Growth
eral Steel — Growth * Daquizhuang + DQ —remaining + Longmen = Metal (DG)— 20% acquired Longmen Iron Steel—99% completion of two 70% + Baotou Steel Pipe -& Steel—60% acquired new blast fumaces acquired JV— 80% acauired increase capacity acquired ‘rom 2-4mt 6.3 milion ‘one -Track record of aggressive
Slide 11: Our goal is to be one of the largest non-government-owned steel companies in China
“Our goal is to be one of the largest and most profitable non-government-owned 43min te Pinca “ong 4 steel companies in China. 2.8 milion “ane 2 * é 20k tone -_ o Lm Pon | une 04 May 07 une 07 June 08 Dec os PLAN i Daguizhou Metal Baotou Sieel Pipe Ml Addition io Saotou Steel Pipe gl Longmen Stee! J
Slide 12: We are a Consolidator of the Chinese Steel Industry
We are a Consolidator of the Chinese Steel Industry Our mission is to acquire Chinese steel companies and increase their profitability and efficiencies with the infusion of applied western management practices, advanced production technologies and capital resources. Our strategy is to grow through a
Slide 13: Clear road map to reach our goal
+ Clear road map to reach our goal + Continue our 2 pronged strategy + Merger and Acquisitions + Upgrading existing facilities + Wind at our back + Government encouraging consolidation + Consolidation options for steel companies B
Slide 14: Industry: Overview
Industry: Overview Strong Catalysts for Industry Consolidation Government Targets * Central government is forcing the closure of many of the country’s 1,100 steel companies through two rounds of consolidation. Currently, 48% of all Chinese stee! produced by top = Smaller or less efficient mills will
Slide 15: Private Co. / State Owned Enterprise: consolidate with General Steel
Private Co. / State Owned Consolidate with Private Groups Enterprise General Steel Accessto [ES * None ce Capital =a “ | management Mostiketveoiced = Definite replaces Ee ~ No change » Chinese SOE system Benefits Capacity will be * Capacity will be incorsorated Incorporated into parent into parent C
Slide 16: A: Longmen JV
A: Longmen JV Longmen JV Profit Margin Evolution + Integrated production capability (from raw material to finished steel products) for more cost-efficient nel production — fewer than 10% of Chinese ste! i ‘companies have this capability bi = 60% controlling interest - acquired stake for USS39mm ons.
Slide 17: Longmen: Growth Catalysts
& ngmen: Growth Catalysts BEE Near-term Growth Catalysts + Longmen JV is positioned at the bridgehead for development in China's western regions + Transportation cost advantage — limited competition within a 250 km radius of the city of Xan, Shaanxi province + "Go West" tax incentive + 10-point plan
Slide 18: Stimulus plan steel demand
Plan | 300 | 600 100 120 3B 100 340 New | 230 | 250 10 40 10 50 120 Change| +77% | +42% +10% +33% | +20% +50% +35% Total | 530 | 850 110 160 45 150 460 Source: Beng Anta infomation Development 18
Slide 19: B: DQ, C: Baotou, D: Maoming
B: DQ + Located in transportation hub of Northeast + Strong recognition of "DQ" brand + TO production lines — 4 added in 2006, + 400,000 metric tons annualized production capacity — 150,000 tons added in 2006 : Baotou Joint Venture signed with Baotou Iron & Steel, the 13th largest steel company in C
Slide 20: NOT your ORDINARY Steel Company
* NOT your ORDINARY Steel Company Track record of aggressive growth Small cap with over a BILLION in revenue Direct play on China Infrastructure Spending Hedge against falling US dollar
Slide 21: Revenue, equity turnover and EBITDA
Revenue Ussmm 1,600 4,200 800 400 y2005 2006 2007 2008 Revenue generated for each dollar of shareholder equity uss 2005 Y2006 Y2007 2008 Revenue US$mm 750 i 700 650 2008H1 —-2009H1 EBITDA USSmm 2005 Y2006 Y2007 Y2008 21
Slide 22: First Six months ending results
First Six months ending % 2009 2008 Change Volume - metric tons 1,673,641 1,113,026 50% Revenue $ 731,741,043 $ 678,594,935 8% Gross Profit $ 35,420,812 $ 35,850,920 -1% Operating Earnings $ 4,611,702 $ 3,073,103 50% Operating EPS $ 012 $ 0.09 38% ‘Operating Earings and Operating EPS are non-GAAP pe
Slide 23: Company Contact / Investor Contact
Company Contact: Investor Contact: Mr. Ross Warner Mr. Justin Knapp General Steel Holdings, Inc. Ogilvy Financial, Beijing Tel: + 8-10-5879-7346 Tel: +86-10-8520-6556 Email: ross. wamer@qshi-steel.com Email: justin knapp@oailvy com Ms. Jing Ou-Yang Ms. Jessica Barist Cohen General Steel Holdings, In
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