General Steel Holdings Inc · OTC:GSIH
General Steel — Investor Presentation (April 2014)
20 slides from General Steel's investor presentation, Apr 15, 2014
Slide 1: Investor Presentation April 2014
1 1 Investor Presentation (NYSE: GSI) April 2014
Slide 2: Forward Looking Statements
2 Forward Looking Statements The material presented is a presentation of general background information about General Steel Holdings, Inc . as of the date of the presentation . The information is in summary form and it does not purport to be complete . It is not intended to be relied upon as advice
Slide 3: GSI's Investment Highlights
3 Strategic long - term relationships through Longmen Joint Venture with industry leaders and state - owned - enterprises GSI ’ s Investment Highlights Proven execution on two - pronged strategy: expand capacity and enhance efficiency Outstanding geographical advantages to benefit from supportive go
Slide 4: Company Overview
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Slide 5: Products & Customers
5 Products & Customers Representative Direct - Sales Projects Baotou - Xi’an Railway, China The Three Gorges Dam, Sichuan, China Xi'an Xianyang Intl Airport, Shaanxi, China Jiuquan Satellite Project, Gansu, China Applications: Infrastructure and construction Applications: Infrastructure and construc
Slide 6: Strategic Geography and Sales Network
6 Strategic Geography and Sales Network Target Western China Leading Market Share: Over 70% market share for rebar products in Shaanxi Province Enhanced Sales Channel with Increased Direct Sales Top five Distributors , 23% Top five Distributors , 22% 1H 2013 FY 2013
Slide 7: Long-term Relationships and Cooperation with Prominent SOEs
7 Long - term Relationships and Cooperation with Prominent SOEs ▪ Long - term relationships and continuing cooperation with prominent SOEs - Shaanxi Coal, Shaanxi Steel and TME Group. ▪ SignedUnified Management Agreementin2011 between General Steel, Shaanxi Coal and Shaanxi Steel. Cooperation with P
Slide 8: GSI's Unique Geographic Advantage
8 Source: National Bureau of Statistics of China, Shaanxi Bureau of Statistics of China, GSI ’ sUnique Geographic Advantage » Under the PRC government’s “Go West” initiative and 12 th Five - Year Plan ( 2011 - 2015 ), significant capital is being allocated toward the region . » Solid demand supporte
Slide 9: Industry overcapacity and Western China emphasis
9 » Government initiatives to control consistent overcapacity for China’s steel industry ▪ Tightenedpollution control and environmental protection ▪ MIITaims to cutovercapacity, with Hebei Province being a major targetforovercapacity controls » Strong emphasis on Western China ▪ The National Develop
Slide 10: Proven Strategy
10 Proven Strategy Expand Capacity Greater Crude Steel Capacity Higher Continuous Rolling Capacity Enhance Efficiency Improving Cost Structure Benchmarking Yields Positive Savings Continuous Casting Billets Rebar Cooling
Slide 11: Expand Capacity: Higher Continuous Rolling Capacity
11 Higher Continuous Rolling Capacity Further eliminatingintermediate re - heating costs, transportation, and outsourced - processing cost ▪ Constructed two additional continuous rolling rebar production lines at Longmen Joint Venture in 2013 ▪ Expanded continuous rolling capacity by 2.1 million met
Slide 12: Enhance Efficiency
12 Enhance Efficiency Environment Protection Raw Material Sourcing Manufacturing Technique & Management Inventory Management Non - Manufacturing Capabilities Improving Cost Structure Benchmarking Yields Positive Savings ▪ New, state - of - the - art equipment reduces energy consumption and improves
Slide 13: Financial Overview
BAMRER i FAS (GENERAL STEEL HOLDINGS, INC. Financial.Overview
Slide 14: Fourth Quarter 2013 Financial Summary
14 1,310 1,152 115 2 Longmen Joint Venture Other Subsidiaries Items 2013 Q4 2012 Q4 Y - o - Y% Total Sales Volume (Thousands per metric ton) 1,154 1,425 - 19.0% ASP of Rebar** (US$ per metric ton) 474.3 542.6 - 12.6% Revenue (US$ million) 548.7 723.4 - 24.2% Gross (Loss)/Profit (US$ million) - 32.7
Slide 15: Full-Year 2013 Financial Summary
15 * Includes $174.6 million change in fair value of profit sharing liability for 2013; ** ASP of rebar at Longmen Joint Venture Items FY2013 FY2012 Y - o - Y% Total Sales Volume (Thousands per metric ton) 5,100 5,336 - 4.4% ASP of Rebar** (US$ per metric ton) 490.7 560.6 - 12.5% Revenue (US$ millio
Slide 16: Savings in Finance Expense through Working Capital Optimization
16 Savings in Finance ExpensethroughWorkingCapitalOptimization Significant savings in finance expense on bank borrowings and discounted notes receivables x Totalfinanceexpenseof $ 91 . 9 mln (down 40 % YoY) x Interest expense on bank borrowings and discounted note receivablesof $ 71 . 1 mln(down 46
Slide 17: Balance Sheet Summary
17 Balance Sheet Summary AS OF (USD 1,000) December 31, 2013 December 31, 2012 Assets: Cash and Restricted Cash $431,300 $369,887 Accounts Receivable $7,020 $21,661 Notes Receivable $60,054 $145,502 Inventories $212,921 $212,671 Advances on Inventory Purchases $127,900 $126,131 Total Current Assets
Slide 18: Management and Directors
18 Name Title Experience Zuosheng (Henry) Yu CEO & Chairman ▪ Founded the Company in 1988 ▪ Bachelor’s degree from Sciences and Engineering Institute, Tianjin, China ▪ Granted “Senior Economist” by the Committee of Science and Technology of Tianjin City ▪ Member of China APEC ( Asia Pacific Economic
Slide 19: Key Takeaways
19 Key Takeaways x Well - positioned to benefit from supportive government policies and spending on infrastructure projects in the Western region x Steel industry leader poised to capture additional market share in China’s faster - growing Western region x Focused strategy on expanding capacity and
Slide 20: Thank You!
20 20 Thank You! Jenny Wang Joyce Sung General Steel Holdings, Inc. General Steel Holdings, Inc. Tel: + 86 - 10 - 5775 - 7691 +1 - 347 - 534 - 1435 Email: jenny.wang@gshi - steel.com Email: joyce.sung@gshi - steel.com
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