General Steel Holdings Inc · OTC:GSIH
General Steel — Investor Presentation (August 2010)
18 slides from General Steel's investor presentation, Aug 10, 2010
Slide 1: Investor Presentation
Slide 2: Forward-looking statements disclaimer
ite forwardooking winin the meaning of Section 27A of tne Securiles Act of 1939 and Sech Exenange act of 1994.” Such foworadoouing” statements are only. presetons and are net guaranlees ‘ot ture mance, Investors are <auuones that any’such Noniara-igoang Statements are ‘and wil De, 45 the case may be
Slide 3: General Steel Holdings, Inc. (NYSE: GSI)
* General Stee! Holdings, Inc. (NYSE: GSI) the only fully integrated Chinese steel company ited on a US stock cena is acting as a steel industry consolidator ‘Sataling fabonalce te mous Capacity of 6.3 milion metric les the lar tons; inearated steel prodlicor in shaanxi Province ‘aes 20% poston nant
Slide 4: Investment highlights
v Favorable industry position with strong government support v Platform that aligns interests of all key industry constituents v Established industry consolidator with demonstrated track record ¥v Strong financial performance v Proven management team with extensive industry experience
Slide 5: Management team
Name Title Experience Zuosheng CEO& __* Started the Company in 1998 mh Chairman * Bachelor degree from Institute of Business Management for + Senior Economist frm the Commitee of Science and TSeimoley of Trin ty + MBA degree from the Graduate School of Tianjin Party Universi . Nember of chia 's APEC
Slide 6: Strong Catalysts for Industry Consolidation
Strong Catalysts for Industry Consolidation + Central goverment is working toward the closure of many of the country’s 800 steel companies through a national consolidation effort + Smaller and less efficient mills will be considered obsolete and targeted for shutdown + Greenfield operations limited
Slide 7: Interests of constituents
Interests Central Government * Sustainable industry development * Efficiency improvement * Polittion reduction / improved = Elimination of backward capacity = Prudent management practices Provincial Government Local economic development Sustainable & stable growth Raising employment Modem equipment
Slide 8: Growth strategy: organic growth and acquisitions
Organic Growth Acquisitions = Continue improving efficiency and margins * Modern equipment and techniques « New customer development * Active price management = Continue industry consolidation through selected quality acquisitions = Look for SOE and private companies with 1-2 million metric tons cap
Slide 9: Corporate structure and locations
al Structure Locations 100% General STesT TvesTTENE BVI) 100% ‘General Steel (China) Co, Lid 99.3% YangouTnvestnent producer in Shaanx‘ Western R
Slide 10: Longmen JV overview
* Fully integrated production capability provides cost- icient productio * 80% controling interest - acquired stake for USS38mm in June 2007 * Largest steel producer in Shaanxi province, a key area levelopment of the Western region with approximately 70% market share and limited eB hrpation within a
Slide 11: "Go West"
“Go West” Longmen JV is positioned at the bridgehead for development in China's Western region * Transportation cost advantage — limited competition within a 250 km radius of the city of Xi'an, Shaanxi province * Guanzhong-Tianshui Economic Zone * “Go West" tax incentive Stimulus Package = 10-point
Slide 12: Western Region Development is a Top Priority
stern Region Development is a Top Priority Central Government % Increased GDP Comparison in 2009 7 i ne Tota Construction Ps Construction Scale investment moso om Xian #1, #2 Subway 2006-2013 et Une = 26-4 kin 39 #2 ne —2533 kn Xian-GhengDu Railway 2008-2019, 2340 km 72 m4 Water Pumping tation 2009-
Slide 13: Iron ore and coke supply
Iron Ore 15% imported from abroad — Purchased at market price 70% domestic — Purchased at market price 15% from Daxigou mine owned by Longmen JV Partner — Purchased at market price Mulonggou and Daxigou Mines + Owned by Longmen JV partner * Source 80,000 metric tons per month at attractive market pr
Slide 14: Other subsidiaries
er Subsidiaries General Steel (China) ~_ | Tianjin municipality EST 00% ovreay csi 400,000 met ons ot oteacrbon set Founded in 1989 as one of the frst ‘Chinese non-SOE steel companies Strong sales and distribution network FEE 10% cunesny cst 1000000 met ons State-of-art production line Close to deep
Slide 15: Financial results: Q2 and first half comparison
408 4009 Yor Fy08 FY09 Yor Shipment Volume (mt) | 575.0 4.1238 95.4% 23075 3.6335 65.1% Total Revenues $261.1 milion | $4520 millon | 73.1% sibition | — $1.7 bilion 235% Gross Proft $(21.6) milion | $13.4 milion NA s7.mition | $886-milion | Over 1,000% Adjusted nor GAAP | (22.4)milion | 16.1 milion
Slide 16: Financial results year over year
2009 2a10 YoY ‘Shipment Volume (km) 955.5 1010.7 6.8% Total Revenues $408.9 milion | $501.7 million 21% Gross Proft $225 milion $74 milion 871% Net Income (Loss) '8(31.8) milion | $(2.1) millon 93.4% EPS (Fully Diluted) $0.80) (0.041) 95% Souroe Companys Financial Saevents
Slide 17: Balance sheet (USD thousands)
(USD ,000) Assets: June 30, 2010 December 31, 2009 Cash and Restricted Cash $920,442 4,159 ‘Accounts Receivable $21,493 $9,525 Notes Receivable $56,365 $29,185 Inventories $281,276 208,087 ‘Advances on inventory Purchases $48,883, 91.402 Total Gurrent Assets $029,415 so1s.278 Property Plant and Equi
Slide 18: Contact Information
v Favorable industry position with strong government support v Platform that aligns interests of all key industry constituents v Established industry consolidator with demonstrated track record Y Strong financial performance v Proven management team with extensive industry experience Contact Informa
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