Algoma Steel Group Inc. · NASDAQ:ASTL
Algoma Steel — BMO Metals, Mining & Critical Minerals Conference 2025
44 slides from Algoma Steel's conference presentation, February 2025
Slide 1: Investor Presentation
Investor Presentation BMO Metals, Mining & Critical Minerals Conference February 2025
Slide 2: Disclaimer
Disclaimer CAUTIONARY STATEMENT REGARDING Commission (the “SECˮ), as part of Algomaʼs Annual Report on Form comprehensive (loss) income and accumulated in equity under the FORWARD-LOOKING STATEMENTS 40F (available at www.sec.gov), as well as in Algomaʼs current reports heading ‘Foreign exchange on
Slide 3: Investment Highlights
Investment Highlights Today’s Presentor Premier Canadian Steel Producer and one of the Leading Flat Steel Producers in North America. Generated $2.8B of EBITDA and over $2B of free Cash flow over the past 5 years. Transitioning to Electric Arc Furnace technology expected to unlock significant value.
Slide 4: Premier Canadian Steel Producer
Premier Canadian Steel Producer Leading North American Flat-Rolled Producer Located in the Great Lakes Region in Sault Ste. Marie, Ontario. 4 INVESTOR PRESENTATION
Slide 5: Premier Canadian Steel Producer Historical Performance
Premier Canadian Steel Producer Historical Performance (FY end March 31) Raw steel capacity of 2.8mm tons (with incremental 0.9mm tons from idled blast furnace capacity) per year. Shipments (kt) Broad range of high-quality finished sheet and plate steel for automotive, construction, energy, 2,435 2,
Slide 6: EAF Conversion Project: A Generational Investment Unlocking Significant Value
EAF Conversion Project: A Generational Investment Unlocking Significant Value Expected Benefits of EAF Adds 700kt of finished steel capacity aligning steelmaking capacity to rolling capacity. Reduced conversion cost and expanded margins expected to increase EBITDA by approx. $150M per annum. Signif
Slide 7: Electric Arc Furnace Construction Update: Rendering Becoming Reality
Electric Arc Furnace Construction Update: Rendering Becoming Reality Photo taken January 7, 2025 7
Slide 8: EAF Construction Update
EAF Construction Update February 2025 EAF #2 tilt table installed EAF No.2 transported into EAF building Duct system complete EAF #2 ready for assembly and installation 8 INVESTOR PRESENTATION
Slide 9: Significantly De-Risked EAF Execution
Significantly De-Risked EAF Execution 1. Balance Sheet Strength 2. Construction On Track 3. Secure Supply of Metallics 4. Secure Supply of Energy 9 INVESTOR PRESENTATION
Slide 10: De-Risked Transition and Ramp-Up Plan
Direct Strip Production Complex BOF Slab Caster De-Risked Transition LMF #1 LMF#2 and Ramp-Up Plan Plate and Strip Hot Mill Integrated Steel Making - Today EAF Steel Flow Operating primary facilities including Coke Making, Blast Furnace #7, Basic Oxygen Furnace while construction is completed Unimpe
Slide 11: Market Update
Market Update Historical Hot Rolled Coil (HRC) and As Rolled Plate Prices (ARP) (US$/ton) Macro Economic Drivers $1,600 Trade Policy and Tariffs $1,400 Global Supply Chain Disruptions $1,200 Economic Indicators – Canada Automotive Industry Dynamics $1,000 Inflation $/NT $800 Key Market Drivers $600
Slide 12: Investment in State-of-the-Art Equipment Throughout Production Process
Investment in State-of-the-Art Equipment Throughout Production Process (C$ in millions, except per ton data) The EAF is expected to conclude a $1 billion modernization of Algomaʼs facilities over 5 Years $20 $1,105 $140 $67 $878 (Budgeted) EAF LMF2 Plate Mill Modernization DSPC Upgrades Total Inves
Slide 13: Building Better Lives and a Greener Future
Building Better Lives and a Greener Future Safety • Teamwork • Integrity • Caring With every decision, every action, every day, we will work safely with teamwork, integrity and deep care for our people, their families and the environment. WWW.ALGOMA.COM 1
Slide 14: Supplemental Materials
Supplemental Materials 14 INVESTOR PRESENTATION
Slide 15: 1. Balance Sheet Strength
1. Balance Sheet Strength Algoma is in a strong financial position to manage market volatility $33M SIF $343M ABL AVAILABLE $828M Total Liquidity (as at September 30, 2024 $452M CASH ON HAND 15 INVESTOR PRESENTATION
Slide 16: 2. Construction On Track
2. Construction On Track #2 EAF Operating Floor Structural Steel: 100% complete EAF Substation: 100% Complete Utility Room #1 Structural Steel: 100% Complete Steel Reline Station: 100% Complete Melt Shop Roofing: 90% Complete EAF #2 Tilt Table and Shell Assembly: 90% Complete $870M $672M $33M Cumula
Slide 17: 3. Secure Supply of Metallics
3. Secure Supply of Metallics Joint Venture with Triple M Metals:Strengthening Algoma Steelʼs access to high-quality scrap. Geographic Proximity to Significant Scrap Trade Flows: Leveraging our strategic location near major scrap sources. Prime Scrap Access from the Great Lakes Industrial Region: En
Slide 18: 4. Secure Supply of Energy
4. Secure Supply of Energy In June 2023 new turbines were installed to support power generation for the EAF project. EAF 115KV substation electrical infrastructure is energized and in operation. Danieli QOne power system being installed. PUC Transmission and Hydro One Sault Ste. Marie have secured
Slide 19: Powering Algoma's Transformation
Powering Algoma’s Transformation SECURED APPROVED Algoma has secured all required power to Algoma has made substantial progress on the Algoma has received significant support and operate EAFs at current shipment volumes development of the local 230KV line with commitment from the Ontario government o
Slide 20: Project Statistics
Project Statistics1 Project Estimates Project Financials 22,083 12,000 100% Cubic Metres Tonnes of Shell Reline of Concrete Structural Steel Foundations $870M 100% 100% 90% $672M Dust Hood EAF Substation Meltshop Roofing 100% 99% 95% #2 EAF Operation Floor Utility Room #1 – Utility Room #2 - Structur
Slide 21: Plate Mill Modernization Update
Plate Mill Modernization Update PRIMARY AND MILL DESCALERS DIVIDE SHEAR Algoma Steelʼs new Primary Descaler improves Algoma Steelʼs new divide shear will boost our shear surface quality by eliminating primary furnace scale capability to 2ˮ for as-rolled plates and 1.5ˮ for heat- before rolling. It i
Slide 22: Algoma's Path to Higher Plate Production
Algoma’s Path to Higher Plate Production Plate 1 - Quality Focus New Primary De-scaler (improves surface quality) Automated Surface Inspection System, detects and maps quality New Hot Leveler (improves flatness) Automation Upgrade of the 166 Mill (expands grade offering) Phase 2 – Productivity Focus
Slide 23: Key Performance Highlights
Key Performance Q2 FY2025 YTD Highlights Highlights 1,024 kNT $1,136M Shipments Steel Revenue Q2 FY2025 - Ended September 30th, 2024 Shipping Volume was 520K NT in Q2 FY2025, up 3% from 503K NT in Q1 FY2025 and down 5% $41M 3.3% from 549K NT in Q2 FY2024. Adjusted EBIDTA Adjusted EBIDTA Margin Steel
Slide 24: Overview of Net Working Capital Seasonality
Overview of Net Working Capital Seasonality1 Net Working Capital ($M) $ 641 $ 687 $ 762 $ 623 $ 633 $ 825 $ 926 $ 875 $ 815 $ 849 $ 897 $ 830 $ 820 $ 785 $616M $823M $887M $866M $912M $486M $480M $638M $723M $759M $808M $800M $793M $470M $409M $435M $389M $313M $311M $277M $272M $292M $268M $237M $2
Slide 25: Safety Without Compromise
Safety Without Continued Focus and Improvement in Lost Time Injury Frequency Rate (LTIFR)1 Compromise 1.40 Health & Safety Performance 1.30 Ongoing commitment to superior Health & Safety 1.20 performance has led to sustained improvement of safety metrics over time. 1.00 Health & safety remains our h
Slide 26: Committed to our Path Forward
Committed to our Path Forward We are positioning Algoma for a new era in steel, well-capitalized to make critical investments that enhance long-term performance and create value for our shareholders. STRATEGIC DIRECTION OPERATIONAL & CAPITAL LADLE MET EAF APPROVAL PMM PHASE 1 LSP POWER PLANT EAF PRO
Slide 27: Our 2024 ESG Report
Our 2024 ESG Report Algoma Steel is proud to present its 2024 ESG Report. The report sets out Algomaʼs ESG strategy and approach to mitigating ESG risks and capturing ESG opportunities and provides an update on the Companyʼs ESG performance. Now available on our website at www.algoma.com 27 INVESTOR
Slide 28: Social Updates
Social Updates For more updates follow our social channels: 28 INVESTOR PRESENTATION
Slide 29: EAF Compared to Blast Furnace Steelmaking
EAF Compared to Blast Furnace Steelmaking 4 Excludes BF#6 which is currently idled. 29 INVESTOR PRESENTATION
Slide 30: Algoma Remains Committed to Sustainable Corporate Citizenship
Algoma Remains Committed to Sustainable Corporate Citizenship Environment Algoma has a demonstrated commitment to environmental stewardship and is ISO 14401 certified. Published a Health, Safety and Environment Policy with a focus on continuous improvement. 5 Key Areas of Commitment to the Environme
Slide 31: Community Involvement
Community Involvement As the largest employer in Sault Ste. Marie, Algoma Steel is an active responsible stakeholder and is actively involved in advancing and preserving the quality of life in the community. Long history of charitable giving and corporate partnerships. 50-year partnership with Unite
Slide 32: Operationalizing for Increased Metallic Intake
Operationalizing for Current vs EAF Increased Metallic Intake Current 17% Algoma has begun operationalizing No 1 HMS 37% its JV with Triple M Metals Shredded Plate & Structural 25% Algoma is serviced by rail, road and water, given Other strategic location on the St. Maryʼs River at the Prime Metalli
Slide 33: Input Metallic Quality by Product
Input Metallic Quality by Product Scrap categories are blended to optimize costs while managing residuals to meet target qualities. Hot Rolled – Black bars represent quality requirement for Drawing Quality Algoma products (~3%1) Produced Hot Metal / HBI by BF#7 / Pig Iron Commercial /HSLA (52%1) No.
Slide 34: Low-costs and attractive energy construct will position Algoma to gain market share
Low-costs and attractive energy construct will position Algoma to gain market share as the EAF expands the mill’s capacity Plate Sales Driven By Modernization Program Canadian Steel Plate Demand by Source (~782k ton, annually)1 and Displacement of Imports Historical Average Target Plate Modernizatio
Slide 35: Recent and Ongoing Initiatives
% NSR of CRU Index 3,700kt) Hot Rolled Coil Sheet Cold Entire System will be 2 EAFs + Vacuum Cold Rolled Close Replaced by 2 EAFs Mill Degassing (Liquid Steel) Anneal 2 Hot Rolled Pickled Finishing & Oiled Direct Strip (temper, Production recoiling Hot Rolled Iron Ore trimming, 95-100% LMF#1 Comple
Slide 36: High-Quality Products and Diversified Blue Chip Customer Base
High-Quality Products and Diversified Blue Chip Customer Base in Attractive End Markets Product width and strength flexibility allows Algoma to serve R&D investments support higher quality, lower cost products a broad customer base across various end markets. and drive value proposition for customer
Slide 37: DSPC Line Offers ~C$30-$40/NT Structural Conversion Cost Advantage
DSPC Line Offers ~C$30-$40/NT Structural Conversion Cost Advantage Over BOF Peers Key Highlights DSPC Complex Recent Enhancements Algoma is the only integrated steel Annualized production capability: Upgraded automation to incorporate producer to operate a DSPC line, 2.3mm tons most recent OEM techn
Slide 38: EAF Transition Expected to Materially Improve Environmental Footprint
EAF Transition Expected to Materially Improve Algoma’s Environmental Footprint Environmental Strategy Reduction % Reduction EAF production would unlock significant environmental benefits – EAF steelmaking generates substantially less CO2 3.0mm tonnes 70% GHG CO2 and other air pollutants compared to
Slide 39: Annex: Steel Revenue and Cost of Sales
Annex: Steel Revenue and Cost of Sales Source: Company Q2 FY2025 Management's Discussion and Analysis 39 INVESTOR PRESENTATION
Slide 40: Annex: Adjusted EBITDA Reconciliation
Annex: Adjusted EBITDA Reconciliation Source: Company Q2 FY2025 Management's Discussion and Analysis 40 INVESTOR PRESENTATION
Slide 41: Annex: Selected Quarterly Information
Annex: Selected Quarterly Information Source: Company Q2 FY2025 Management's Discussion and Analysis 41 INVESTOR PRESENTATION
Slide 42: Glossary
Glossary Term Definition Basic Oxygen Vessel used to convert liquid hot metal from a blast furnace Furnace (BOF) into steel. Blast Furnace (BF) Metallurgical furnace combining fuel, ores and flux to smelt iron ore to produce pig iron, which is fed downstream into a BOF. Cogeneration Also known as com
Slide 43: Glossary (continued)
Term Definition Hot Rolled Sheet Carbon steel product commonly used for applications in which dimensional tolerances and surface finish quality is not critical (e.g. automotive accessories, stampings). Iron Ore Pellets Pellets are small balls of iron ore used in the production of steel that are agglo
Slide 44: Building Better Lives and a Greener Future
Building Better Lives and a Greener Future WWW.ALGOMA.COM
Algoma Steel Group — BMO Metals, Mining & Critical Minerals Conference 2025 on 6ix