General Steel Holdings Inc · OTC:GSIH
General Steel — Merriman Curhan Ford Investor Summit 2009
15 slides from General Steel's conference presentation, Nov 10, 2009
Slide 1: General Steel Holdings Inc. - Merriman Curhan Ford Investor Summit 2009
. ae is eh eh is Az GENERAL STEEL HOLDINGS INC. Merriman Curhan Ford Investor Summit 2009
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 ofthe presentation. itis information in summary form and does not purport to.be complete, {tis not intended to be relied upon as advice to potential investors. This presentation is
Slide 3: Only fully-integrated Chinese steel company listed on a US exchange
GSlis the only fully-integrated Chinese steel company listed on aUS. stock exchange GSI's current portfolio is comprised of 4 operating subsidiaries: ‘A: Shaanxi Longmen Iron & Steel Co., Ltd. "Longmen JV") B: Tianjin Dagiuzhuang Metal Sheet Co., Ltd. CD") : Baotou Stee! - General Steel Special Stee
Slide 4: 3Q09: Revenues, shipment volumes and operating profit reach record highs
3Q09: Revenues, shipment volumes and operating profit reach record highs J 8 Aug 2008: Company moves to NYSE big board 2 \ 5 Jul 2008: Company acquires 99% ownership of Maoming Hengda ‘5 Mar 2008: Company lists on NYSE Arca under the ticker “GSI” \) 3 Oct 2007: Company lists on AMEX under the ticker
Slide 5: Strong Catalysts for Industry Consolidation
Strong Catalysts for Industry Consolidation > Central government is forcing the closure of many of the country’s 800 steel companies through two rounds of consolidation > Smaller or less efficient mills will be considered ‘obsolete and targeted for shutdown or M&A > Greenfield operations limited by
Slide 6: Established track record of acquiring high-quality assets
“Established track record of acquiring high-quality assets at attractive valuations with a goal of expanding market share and diversifying product mix.” Aligning Interests > Central government > Provincial government > Management teams, Acquisition Improving Profitability of Acquired Assets Accessin
Slide 7: To be one of the largest and most profitable non-government-owned steel companies
To be one of the largest and most profitable non- government-owned steel @ Merge & JV with Pr companies in China. ‘Seeking management team with proven tracking record rivate Co's & SOEs Capital Injection & Western Management Practices Retaining Existing Management Central Government - Industry conso
Slide 8: Subsidiaries: Longmen JV
bsidiaries A: Longmen JV > Integrated production capability (from raw material to finished steel products) for more cost-efficient production fewer than 10% of Chinese steel companies have this capability > 60% controlling interest - acquired stake for US$39mm. in June 2007 > Largest steel producer
Slide 9: Go West
“Go West” 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 250km. radius of the city of Xi'an, Shaanxi province * “Go West” tax incentive Stimulus Package + 10-point plan
Slide 10: Increased GDP Comparison in 2009
aoe b 3 g % Increased GDP Comparison in 2009 Dist Quarter @ 2nd Quarter (3rd Quarter: National Shaanxt Sango Guangdong Xian #1, #2 Subway Xian-ChengDu Railway Water Pumping Station
Slide 11: Subsidiaries Cont'd
bsidiaries Cont'd... CMe 100% owned by GSI 80% owned by GSI, 20% by Baotao Group 400,000 metric tons Hot-rolled carbon sheet Founded in 1989 as one of the first, EenPTTeE Chinese non-SOE steel companies Comments 100,000 metric tons, Spiral-weld pipe for use in the energy sector JV with 15th largest
Slide 12: Third Quarter 2009 results
| Third Quarte 308 3009 YoY ‘Shipment Volume (kmt) 6195 1,036.1 67.3% Total Revenues $411.5 million $484.8 million 17.8% Gross Profit $(6.3) million $39.7 milion 7 Net Income* $20.5 million $10.3 million 49.8% EPS (Fully Diluted) $057 $0.23 59.6% * The decrease in net income was caused by the deriva
Slide 13: Revenue and EBITDA
Revenue EBITDA Ussimm : test 7 © 0 © oy rT ol fi 100 2008 ‘2008 2008 ‘07 2008 200 m05 ‘008 ‘007 ‘08, Revenue Generated for Each Dollar Production Volume of Shareholder Equity
Slide 14: Historical financials
Historical (USD .000) 2005 2007 Total Revenue 87,832 89,740 139,495 772,439 1,361,203, Total Cost of Revenue (81,613) (81,166) (135,324) (715,750) (1,343,275) Total Gross Profit 6219 3574 4:70 6,689 7,928 SGA Expense (2,317) (2,781) (2,421) (16,164) (36,942) Operating Income (EBIT) 3,902 5,793 1749
Slide 15: Company Contact
Company Contact: Mr. Ross Warner General Steel Holdings, Inc. Tel: + 86-10-5879-7346 Email: ross. warner@gshi-steel.com Investor Contact: Mr. Justin Knapp Ogilvy Financial, Beijing Tel: +86-10-8520-6556 Email: gsi@ogilvy.com Ms. Jing Ou-Yang General Steel Holdings, Inc. Tel: +86-10-5879-7346 Email:
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