General Steel Holdings Inc · OTC:GSIH
General Steel — FY2010 Earnings Presentation
14 slides from General Steel's earnings presentation, Mar 16, 2011
Slide 1: Fourth Quarter and Full Year 2010 Earnings Call Presentation
& mS iFM eR AE AB GENERAL STEEL HOLDINGS INC. Fourth Quarter and Full Year 2010 Earnings Call Presentation Henry Yu, CEO & John Chen, CFO & Jenny Wang, IR Manager
Slide 2: Forward-looking statements disclaimer
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: Agenda
& Agenda i FAERIE AR (-% Highlights and Growth Strategy J » FY2010 and 4Q Financial Highlights and Key Operating Metrics (- Market and Operational Overview J FQBA 3 This presentation is intended to be viewed in conjunction with the General Steel Holdings, Inc. fourth quarter and fiscal year 2010 eam
Slide 4: Growth Strategy
Growth Strategy BFA cquisitio Expand Capacity anically and Thro: = Add new blast furnaces and new production lines = Pursue strategic acquisitions of steel manufacturers in conjunction with the Chinese government’s push for industry consolidation Improve Operational Efficiencies to Drive Margin Expa
Slide 5: 2010 Highlights
2010 Highlights nancial Highlights = FY2010 Revenue increased 13.5% to $1.9 billion = Continued bottom-line improvement; 402010 net income of $2.2 million vs. net loss of $11.1 million in 4Q2009 = 4Q2010 Gross Margin increased 600 basis points year-over-year to 9.0% Capacity expansion, Mergers & Acq
Slide 6: 4Q2010 Financial Highlights
Revenue $ 478.6 $ 452.0 5.9% Shipment (KMT) 969 1124 -13.8% Cost of Sales 435.4 438.6 -0.7% Gross Profit 43.2 13.4 222.6% Gross Margin 9.0 3.0 600bps SG&A 17.6 119 48.2% Operating Income 25.7 15 1,561.9% Finance & Interest Expense 13.7 9A 45.1% Net Income (Loss) 2.2 (11.4) 120.0% EPS 0.04 (0.26) 115
Slide 7: FY2010 Financial Highlights
| FY2010 Financial Highlights Fiscal Year Ended. Dec. 31,2010 Dec. 31, 2009 Revenue $ 1893.6 $ 1,668.4 13.5% Shipment (KMT) 3,955 3,834 3.2% Cost of Sales 1,821.7 1,579.9 15.3% Gross Profit 71.9 88.6 -18.8% SG&A 52.9 411 28.9% Operating Income 19.0 47.5 -60.1% Finance and Interest Expense 513 27.8 8
Slide 8: Improving Gross Margin
Improving Gross Margin 10.00% 8.00% - 9.0% 6.00% 3.4% 4.00% ~ a 1.5% 2.00% — 0.00% 2010 1Q 2010 2Q 2010 3Q 2010 4Q Average Selling Prices of Rebar (US$) | 560 800 447 452 Bee 400 200 - of 2009 4Q 2010 4Q FY 2009 FY 2010 8 This presentation is intended to be viewed in conjunction with the General Ste
Slide 9: Balance Sheet
(USO 1,000) Assets: Cash and Restricted Cash Accounts Receivable Notes Receivable Inventories Advances on Inventory Purchases Total Current Assets Property Plant and Equipment Total Assets Liabilities: Total Notes Payable Total Accounts Payable Total Short Term Loan Customer Deposits Taxes Payable T
Slide 10: China Annual Crude Steel Output 2000~2010
China Annual Crude Steel Output 2000~2010 million tons se »2010 steel production in China was e0D a record 626.7 million metric tons 500 (44.3% of global output), with 400 + consumption estimated to be md | approximately 596 million tons (42% 400 of global consumption) ) 2000 2001 2002 2003 2004 200
Slide 11: China Steel Industry Consolidation
China Steel Industry Consolidation iFAIMEKIE AR Si ng Catalysts for | istry Consolidat = Central government initiatives aimed at improving industry efficiency through national consolidation effort = Limitations on new capacity development force larger steel producers to increase capacity through acq
Slide 12: Capacity Expansion
Capacity Expansion »Completed construction and began testing on new production equipment at Longmen Joint Venture = Adding annual crude steel capacity of 3 million metric tons = Current total annual crude steel capacity of 7 million metric tons = Negotiating terms of an agreement to operate such new
Slide 13: Demand Drivers
200% 180% 14.0% 120% 100% 80% 6.0% 40% 2.0% 00% mand Drivers Year-over-Year Increases in GDP by > Direct beneficiary of the “Go West” economic initiative and 12th Five-Year Plan Region 192% peak yoy si RTC 9.35 mae 2 190% 98% National Shaanxi Jiangsu Guangdong - = 3M2010 ™=6M2010 “© 9M2010 = FY2010
Slide 14: ings, Inc.
ings, Inc. is FA eh eX 1 A GENERAL STEEL HOLDINGS INC.
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