General Steel Holdings Inc · OTC:GSIH
General Steel — Q1 2011 Earnings Presentation
12 slides from General Steel's earnings presentation, May 11, 2011
Slide 1: First Quarter 2011 Earnings Call Presentation
£4 IRE SENSRAL STEEL MOLoMNES INC. First Quarter 2011 Earnings Call Presentation Henry Yu, CEO, John Chen, CFO Jenny Wang, Investor Relations Manager
Slide 2: Safe Harbor Statement
‘e Harbor Statement BBRRER 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 forwar
Slide 3: First Quarter 2011 Highlights and Longmen JV
First Quarter 2011 Highlights and Longmen JV Unified Management Agreement Highlights First Quarter Financial Highlights and Key Operating Metrics Market Overview and Geographic Advantage ) This presentation is intended to be viewed in conjunction with the General Steel Holdings, Inc. first quarter 2
Slide 4: First Quarter 2011 Highlights
First Quarter 2011 Highlights USD Million Q1 2011 Financial Highlights First Quarter 2011 Revenue 1,000 = Q1 2011 net income of $2.6 million vs. net loss of $(5.5) million in Q1 2010 oy 710 = Revenue of $710.5 million (+57% yiy) on a oat * Gross Margin of 4.0% (+272 bps y/y) ner * Crude Steel Capaci
Slide 5: Longmen JV Unified Management Agreement
* Shaanxi Coal Group is the parent company of Shaanxi Steel Group. Key Implications = Confirms the operating model of the 3 million metric ton of annual crude steel production capacity = Provides access to improved raw material purchasing terms and reduced transportation costs. = Improves operationa
Slide 6: Longmen JV Unified Management Agreement
i men JV Unified Management Agreement BRBS#RE AR Sermo STRRL MOLONES NS. General Stee! and Shaanxi Steel Group Will Jointly Accounting Treatment Manage the Production of Crude Steel at Longmen JV of Key Items * Joint management term: 20 years Unified * Pre-tax profit sharing (for the first 2 years):
Slide 7: First Quarter 2011 Financial Results
($MM, except per share data) Mar. 31,2011 = Mar. 31, 2010 Revenue $710.5 $ 453.0 Shipment (KMT) 1,189 1,035 Cost of Sales 682.1 447.3 Gross Profit 28.3 5.7 Gross Margin 40 43 SG&A 14.5 12.1 Operating Income 13.8 (6.4) Finance & Interest Expense 14.1 11.0 Net Income (Loss) 2.6 (5.5) EPS 0.05 (0.11) ‘
Slide 8: Improving Gross Margin
Improving Gross Margin 34% 3.4% 4.0% 4.0% 2.0% 0.0% Tm T T 7 1 2010 Q1 2010 G2 2010 Q3 2010 Q4* 2011 Q1 Average Selling Prices of Rebar 606 2010 O1 2010 Q4 2011 Q1 “* Gross profit in the fourth quarter 2010 adjusted for a cost deduction of a $27.1 million compensation payment from Shaarvi Steel Grou
Slide 9: Balance Sheet Highlights
Balance Sheet Highlights BEWREE Mar. 31, 2011 Dec. 31, 2010 Assets: Cash and Restricted Cash $292,286 $263,068 Accounts Receivable $24,947 $17,591 Notes Receivable $117,804 $49,147 Inventories $521,066. $475,879 Advances on Inventory Purchases $41,482 $30,764 Total Current Assets $1,395,262 $1,154,5
Slide 10: China Annual Crude Steel Output 2000~2010
China Annual Crude Steel Output 2000~2010 milion tons: * Q1 2011 China's crude steel production 700 reached 169.9 million* metric tons eo (up 8.7% yly) aon » 2010 steel production in China was a 300 record 626.7 million metric tons (44.3% of = I | I global output), with consumption a a | ‘| estimate
Slide 11: Year-over-Year Increases in GDP
Year-over-Year Increases in GDP » Under the PRC government's “Go West” initiative and 20.0% Biba 12th Five-Year Plan, significant capital is being 16.0% TT i allocated toward the development of China’s Western 12.0% = Soe ae. >» GSI's Longmen JV subsidiary is the dominant supplier aR. | of rebar in
Slide 12: @tng.iz.com
@tng.iz.com MAI M ERIE BE GENERAL STEEL HOLDINGS INC,
General Steel Holdings — Q1 2011 Earnings Presentation on 6ix