General Steel Holdings Inc · OTC:GSIH
General Steel — Investor Presentation (March 2011)
29 slides from General Steel's investor presentation, Mar 4, 2011
Slide 1: Investor Presentation (NYSE: GSI)
Slide 2: Disclaimer
of general background information about General Steel Holdings, Inc. as of the matin nay ar ‘and does not purport to be complete, itis not Be investors. This cesar! lal and may not be disclosed to any other express of med i¢ made concerning, end no reece should be placed on, the Jon (neuding the nan
Slide 3: Agenda
Il. Products and Operating Subsidiaries Ill. Products and Operating Subsidiaries IV. Financial Highlights
Slide 4: Ticker Symbol
. -" Ticker Symbol NYSE: GSI Price (as of 3/3/2011) $2.44 Market Cap $133.41 million Fiscal Year End December 31 First 9 Months 2010 Shipment Volume lion Metric Tons, First 9 Months 2010 Revenue. $1.41 billion First 9 Months 2010 Net Loss Per Share ($0.20) First 9 Months 2010 Adjusted EBITDA $48.4 m
Slide 5: About General Steel
About General Steel General Steel Holdings: Inc. is a leading China-based integrated steel producer an of Chinese steel ie Founded in 1988 One of the largest non-state-owned steel producers in China with annual crude steel capacity of over 7 million metric tons Operates through five subsidiaries, in
Slide 6: Investment Highlights
Investment Highlights BHaRER Well positioned in a large, growing market fueled by multiple catalysts Infrastructure and housing investment driving continued strong demand for steel in China ‘oised to benefit from changing government regulation and indu consolidation with demonstrated track record of
Slide 7: Management and Directors
Name Title Experience Founded the Company in 1988 cionce and Technology of Tianjin City anifom ne Grate School o ann Party Uaversty Vice president of the China Chamber of Metallurgical Indust John Chen Director * Joined Company in May 2004 + Former senor accountant a Moore Stephens Wurth Frazer and
Slide 8: Company History and Milestones
‘Established Tianwu General Steel Material Trading Co.,Ltd. “Listed shares on the New York Stock Exchange sted shares on the American Stock Exchange Established Shanxi Longmen ron and Steel Co, Ltd. through 2 Joint Venture with Shaanxi Longmen Iron and Steel Group ‘Established Baotou ‘Special Steel
Slide 9: Agenda: Company Overview
|. Company Overview Ill. Products and Operating Subsidiaries IV. Financial Highlights
Slide 10: Growth Strategy
Growth Strategy Expand Capacity Organically and Through Acquisition * Add new production lines * Pursue strategic acquisitions of steel manufacturers in conjunction with Chinese government's push for industry consolidation Improve Operational Efficiencies to Drive Margin Expansion * Replace older, l
Slide 11: Expanding Production Capacity
Expanding Production Capacity BRmRER Increase Crude Steel Production Capacity and Manufacturing Efficiency = Replaced older, energy-inefficient blast furnaces with new and state-of-the-art equipment to improve manufacturing efficiency and yields at Longmen Joint Venture = Lease agreement to operate
Slide 12: Raw Materials Sourcing
Raw Materials Sourcing Current Raw Materials Procurement: Cost Advantage Iron Ore Coke ‘= 50% imported, purchased at market price = 100% sourced locally, purchased at market price = 36% domestic, purchased at market price * Location of Longmen Joint Venture within China's = 15% from Longmen Joint te
Slide 13: Acquisition Scenarios
‘Scenario A: Acquire Manufacturing Capacity ET contauelinaaty : ieee teas + Target enterprises and ies that me rmment’s stringent industry sara 2 Baek pet renee key industry constituents ‘Scenario B: Acquire Raw Materials Supply = Targets it upstream i ‘operations = Strengthens vertical integration
Slide 14: Industry Overview
Industry Overview 2010 steel production in China was a record 626.7 million metric tons (44.3% of global output), with consumption estimated to be approx. 596 million tons (42% of global output) Highl industry, with 800 mils in operation ») nationwide, including both non-stat d and stat d | \ (SOEs)
Slide 15: Strong Catalysts for Industry Consolidation
Strong Catalysts for Industry Consolidation consolidation effort = Smaller, gf Shutdown or acquisition Wea capacity through Acquisition Government Targets 48% of all Chinese 50% produced 70% produced by steel produced top 10 players top 10 players top 10 players
Slide 16: Operational Philosophy Supports Industry Consolidation
Operational Philosophy Supports Industry Consolidation Interests Central Government * Sustainable industry development + Etiniten t eabtard capacity = Prudent management practices Provincial Government * Local economic development * Sustainable & stable growth * Job creation * Modernization of equip
Slide 17: Agenda: Products and Operating Subsidiaries
|. Company Overview Il. Products and Operating Subsidiaries IV. Financial Highlights
Slide 18: Products
Hot-Rolled High Speed Carbon and Wire c Specialty market Construction asi ell and infrastructure Construction an infrastructure Spiral-Weld Steel Pipe Energy market applications, including the transportation of oil, natural gas and steam
Slide 19: Longmen Joint Venture
FIRES SE OIE Sa Ser ean d stake for lion in June 2007 . Hina Steel producer in Shaanxi province, a key area for development of Western China, with af Sppronanale 70% inarkel share ana iniied egonal competion = Benefits from the “Go West” tax treatment, lowering corporate tax rate from 25% to 15% = 7
Slide 20: Western Region Development is a Top Priority
Western Region Development is a Top Priority for Central Government SEREER % Increased GDP Comparison in 2010 pd Sh cg pres ete me 6 32010 ou fi = 1H2010 peed 9M2010 ‘a mFY2010 I ‘Shaanxi viangsu Guangdong Selected Infrastructure Investment in Shaanxi (RMB bn} Contton Pei Contam see nat
Slide 21: Near-term Growth Catalysts and Competitive Advantages
Near-term Growth Catalysts and Competitive Advantages * Significant development of China's Wester region = Huge spending in high-speed railway building "Go West’ tax incentive 1m 42th Five-Year Plan _Five-Year Plan er) jor gateway ion; allows for easy access to raw id ceffcient shipment and logistic
Slide 22: Other Subsidiaries
Other Subsidiaries General Steel (China) Tianjin municipality Hotolled carbon sheat cre in 1989s ono of ther Chinese ro CRM fechalails Strong sales and distribution network Strat se agreement with Tianin Daciuthuong Stet to generate eeuring mony mime asen head
Slide 23: Other Subsidiaries (cont'd)
Other Subsidiaries (cont'd) BmmReER Guangdong Province Tianwu Tianjin municipality
Slide 24: Agenda: Financial Highlights
1. Company Overview Il. Prod and O ML. Pr and Op i idiaries
Slide 25: Selected Financials
Selected Financials 2000 2008 Yor naed 0/10 Ended S30 vor Shipment volume km | 38385 20078 03.4% 29087 27007 102% Total Revenuos sizeition | stavition | 205% stapiten | s12bion 162% Gross Proft seaemiion | s72mition | overs,o00% | s207mtion | s752miton | -ore% Netinceme ese" | $:252)miton | (11.2)mi
Slide 26: 200s aorsatn| onnzo10
200s 208 aorsatn| onnzo10
Slide 27: December 31,2009,
615277 December 31,2009, 525 $29.15 $208,007 sotaoz e851
Slide 28: Key Takeaways
Key Takeaways Y Industry leader poised to capture additional market share in China’ fast-growing steel industry Y Expanding capacity and improving operational efficiency to capture sizeable growth opportunity in Western China Y Poised to benefit from changing government policy and industry consolida
Slide 29: Thank You!
Thank You! BRM
General Steel Holdings — Investor Presentation (March 2011) on 6ix