General Steel Holdings Inc · OTC:GSIH
General Steel — Q1 2010 Earnings Presentation
14 slides from General Steel's earnings presentation, May 10, 2010
Slide 1: Henry Yu, CEO
Henry Yu, CEO & Jol
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: First Quarter 2010 Financial Highlights
First Quarter 2010 Financial Highlights Demand Drivers Key Operating Metrics DQ Subsidiary Business Model Change Maoming Subsidiary Rebar Production Line Impact of Quarterly Iron Ore Pricing System Second Quarter 2010 Outlook Q&A
Slide 4: Total revenues increased 40.6% YoY
Total revenues increased 40.6% YoY to $453.8 million from $322.8 million in 1Q09 Aggregate shipment volume increased 44.2% YoY to 1.03 million metric tons from 0.72 million metric tons in 1Q09 Total Revenues Increased 40.6% sD in thousand 00,000, 453,762 48009, $eh:000 | 22,704 300/09, 280,09, 20000
Slide 5: Go West economic initiative
“Go Bid economic initiative ~ Top five economic priority in the 12th Five-Year National Economic and Seeial Bran ('NESDP’) (2011-2015) = Total infrastructure spending of approximately RMB480 billion National stimulus package ~ RWMIB4 tion economic package is equal to nearly 20% of China's GDP ot 1/3
Slide 6: Increased GDP comparing to First Quarter 2010
Ye neeased ODP Comparin a Fit Quarter 2010 Provincial Infrastructure Projects: learly RMB100 bilion, or approximately 18815 billon through 2013 * Selected infrastructure Projects: ian #1, #2 subway, Xian-Chengdu ‘alway and 67 reservoir pumping stations Ne Us Fainoun toon eh nee8222 re
Slide 7: Gross Profit was $5.8 Million in the First Quarter of 2010
Gross Profit was $5.8 Million inthe First Gross Profit Margin Improved to 4.47% Quarter of 2010 in March 2010 USS (mm 200 29 100 58 00 1 2009 at 2010, Gross Margin was 1.3% in the First Quarter of 2010 7
Slide 8: Gross margin at Longmen JV adversely affected in first quarter
Gross margin at our Longmen JV was adversely affected in the first quarter by the following factors: {Rising raw materia costs frm the beginning ofthe quarter * Alag time between the increase of both production costs and selling prices * Added depreciation coss of our wo new bast furnaces ‘04-2008 J
Slide 9: Balance sheet: March 31, 2010
Assets: Maren 31,2010 ber 31,2008 ‘cash and Restricted Cash soiree sar4se ‘Accounts Recelable se2ar 5. Notes Receivable sis cs $237,695 ‘Advances on Inventory Purchases 534930 rota Curent Assets 9 Property Pant and Equipment 852,51 sissssu abies: Tota Notes Payable s3907 “otal Accounts Payable s2i1s
Slide 10: General Steel (China) leased its workshops, land, facilities
General Steel (China) leased its workshops, land, facilities to Tianjin Dagiuzhuang Steel Plates Co., equipment and other Term of the lease is from January 1, 2010 to December 31, 2011 Reduces overhead costs and provides a steady revenue stream of fixed monthly lease payment of approximately $246,00
Slide 11: Maoming strategic alliance with Yueyufeng
In 1010, Maoming entered into a strategic alliance agreement with Yueyufeng Iron and Steel Co., Ltd As part of the agreement, Yueyufeng will fund approximately $4.4 million to construct a new 400,000 metric tons capacity rebar production line to operate at our Maoming facility 400,000 metric tons pr
Slide 12: Iron ore pricing visibility reduced for the entire industry
Iron ore pricing visibility reduced for the entire industry - Greater costs and market price volatility - _ Increase in steel price as producers pass costs on to customers Less spread between contract rate and spot rate - Amore level playing field for those like GSI Greater emphasis on securing iron
Slide 13: Second Quarter 2010 Outlook
+ Robust demand in addressable market + Trend of cost of raw materials: + Acquisition progress - revised industry guidelines
Slide 14: Contact Information
Contact Information Ross Warner sing Ou-¥a0g usin Knapp Jessica Barist Cohen
General Steel Holdings — Q1 2010 Earnings Presentation on 6ix