General Steel Holdings Inc · OTC:GSIH
General Steel — Investor Presentation (March 2010)
17 slides from General Steel's investor presentation, Mar 5, 2010
Slide 1: Slide 1
Slide 2: Safe harbor statement
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Slide 3: Company overview
"Seco Conary ts on US stock Rien iy Selalay Sonccmsaler coptaazing rrments mena fabonalos he mousy + Capacity of 6.3 milion metic opel steal proderin ince
Slide 4: Favorable industry position with strong government support
Y Favorable industry position with strong government support Y Platform that aligns interests of all key industry constituents ¥ Established industry consolidator with demonstrated track record Y Strong financial performance v Proven management team with extensive industry experience
Slide 5: Management experience
Experience Zuosheng CEO & Yu ‘Chairman John Chen Director & ‘ Started the Company in 1998 Bachelor degroe trom Insitute of Business Management for Officers “Senior Economist” from the Committee of Science and Technology of Tianjin Cty [MBA degree from the Graduate School of Tianjin Party University
Slide 6: Strong catalysts for industry consolidation
‘Strong Catalysts for Industry Consolidation ‘Sovernment Targets, + Central government is working toward the closure of many of the country's 800 steel companies through two rounds of ‘consolidation ‘+ Smaller and less efficient mills will be considered obsolete ‘and targeted for shutdown — + Grenel
Slide 7: Elimination of backward capacity
* Elimination of backward capacity * Prudent management practices Local Companies = ~800 small or less efficient stee! companies * Choice; jpprove, get closed or merge ( me * Looking for survival & capital interests FAME = Provides comprehensive solution to the government plan for industry consolida
Slide 8: Organic growth and acquisitions
Organic Growth Acquisitions = Continue improving efficiency & margins +Modern equipment and techniques + New customer development + Active price management = Continue industry consolidation through selected quality acquisitions = Look for SOE or private companies with 1-2mm metric tons capacity and
Slide 9: Slide 9
Slide 10: Fully-integrated production capability provides cost-efficient production
++ Fully-integrated production capability provides cost- ehident poducton on aren + 60% controlling interest - acquired stake for US$39mm in June 2007 + Largest steel producer in Shaanxi province, a key area fordevelopment of he Western region ait approximately 70% market share and limited competiti
Slide 11: Go West stimulus package
“Go West” ‘Stimulus Package Earthquake Rebuilding Projects ‘Longmen JV is positioned at the bridgehead for development in China's Western region ‘Transportation cost advantage ~ limited competition within a 250km radius ofthe city of Xi'an, Shaanxi province * Guanzhong-Tianshui Economic Zone "Go Wes
Slide 12: GDP growth and infrastructure projects
% GOP Groth mw. 1a me 11 Line —26 4k Xian #1, #2 Subway 20-2013 ed 264 oa ‘Xian-ChengDu Railway 2009-2013 ‘340K 486 02 (67 water pumping Water Pumping Station 2000-2013, 18 on
Slide 13: Iron ore and coke sourcing
Iron Ore Coke 15% imported from abroad + Longmen located within China's — Purchased at contract price bem 70% domestic + Low/insignificant transportation — Purchased on spot market cost 15% from Daxigou mine — Purchased at market price — Purchased at market price Mulonggou and Daxigou Mines Daxigou
Slide 14: 80% owned by GSI, 20% by Baotao Group
80% owned by GSI, 20% by Baotao Group 400,000 mete ons 100000 metic ons Hood cton sos Speed poe for uso nth oer sector Foard 109 on ot JV with 15th largest stool company in China Sloat compames CEREEEIEN Raw matoril and transport are sourced Strong sal and distribution network ‘trough Baotou High sp
Slide 15: EPS (fully diluted)
EPS (uly Diluted) sosr 023 sa0% The decroase in net income was caused by the derivative instrument gain occuring inthe third quarter of 2008 which was non operating, non-cash gain related Io the convertible promissory noto and warrants issued in Decombor of 2007, ‘Source: Companys Financial Statemen
Slide 16: Financial summary
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Slide 17: Contact Information
¥ Favorable industry position with strong government support ¥ Platform that aligns interests of all key industry constituents ¥ Established industry consolidator with demonstrated track record ¥ Strong financial performance v Proven management team with extensive industry experience Contact Informa
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