Algoma Steel Group Inc. · NASDAQ:ASTL
Algoma Steel — Jefferies Industrial Conference 2024
32 slides from Algoma Steel's conference presentation, September 2024
Slide 1: Investor Presentation
NASDAQ: ASTL TSX: ASTL Investor Presentation Jefferies Industrial Conference - September 2024 in Canadian dollars unless otherwise noted
Slide 2: Disclaimer
Disclaimer CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This presentation contains “forward-looking information” under applicable Canadian securities legislation and “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 (collectivel
Slide 3: Investment Highlights
Investment Highlights Premier Canadian Steel Producer and one of the 1 Leading Flat Steel Producers in North America Presenters: Generated $2.8B of EBITDA and over $2B of free 2 Cash flow over the past 5 years Transitioning to Electric Arc Furnace technology 3 expected to unlock significant value Si
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 • Raw steel capacity of 2.8mm tons (with incremental 0.9mm tons from idled blast furnace capacity) per year • Broad range of high-quality finished sheet and plat
Slide 5: Algoma's EAF Conversion Project: a generational investment unlocking significant value
Algoma’s EAF Conversion Project: a generational Investment unlocking significant value Raw Materials Materials Ironmaking Steelmaking Preparation Expected Benefits of EAF ✓ ~Adds ~700kt of finished steel Iron Ore capacity aligning steelmaking Blast Furnace Mill capacity to rolling capacity (Algoma T
Slide 6: Significantly De-Risked EAF Execution
Significantly De-Risked EAF Execution Balance Sheet Strength Construction On Track Algoma is in a strong financial position to manage market • #2 EAF Operating Floor Structural Cumulative Spending volatility $611M 45 Steel: 100% complete • EAF Substation: 100% Complete Remaining SIF • Utility Room #
Slide 7: Construction Update
Construction Update Quench tower assembly is underway Axial Cyclone installation on Baghouse - New Facilities Inside view of the operating floor Project Statistics2: By the numbers2: Concrete Utility Room #2 Cumulative 25,877 cu/m Electrical Carbon Injection EAF Substation Spending $611M Structural
Slide 8: Operationalizing for increased metallic intake
Operationalizing for increased metallic intake Algoma has begun operationalizing its JV with Triple M Metals Input Metallic Quality by Product • Algoma is serviced by rail, road and water, given strategic Hot Rolled – Black bars represent location on the St. Mary’s River at the Sault Ste. Marie Lock
Slide 9: Powering Algoma's Transformation
Powering Algoma’s Transformation 2025-2026 2026-2028 2029-2030 Initial Phase Secured Phase 2 Approved Phase 3 Configuration Power Lake Superior Existing 115KV Power (LSP) Lake Superior Existing 115KV Local 230KV Regional Bulk Transmission (150MW) Existing 115KV Local 230KV (110MW) Power (LSP) Transm
Slide 10: De-Risked Transition and Ramp-Up Plan
De-Risked Transition and Ramp-Up Plan Direct Strip Production Slab Caster Integrated Steel Making - Today Complex • Operating primary facilities including Coke Making, Blast Furnace BOF #7, Basic Oxygen Furnace while construction is completed LMF#2 LMF #1 • Unimpeded steel Flow during construction P
Slide 11: Plate Mill Modernization Complete
Plate Mill Modernization Complete Algoma’s Path to Higher Plate Production Plate 1 - Quality Focus ✓ New Primary De-scaler (improves surface quality) ✓ Automated Surface Inspection System, detects and maps quality ✓ New Hot Leveler (improves flatness) ✓ Automation Upgrade of the 166 Mill (expands gr
Slide 12: Investment in State-of-the-Art Equipment Throughout Production Process
Investment in State-of-the-Art Equipment Throughout Production Process (C$ in millions, except per ton data) The EAF is expected to conclude a +$1billion modernization of Algoma’s facilities over 5 Years $1,052 - $1,102 $20 $140 $67 $825 - $875 EAF LMF2 Plate Mill Modernization DSPC Upgrades Total I
Slide 13: Safety • Teamwork • Integrity • Caring
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 12
Slide 14: Supplemental Materials
Supplemental Materials ALGOMA — STEEL INC. —
Slide 15: Safety Without Compromise
Safety Without Compromise Continued Focus and Improvement in Lost Time Injury Frequency Rate (LTIFR)1 Health & Safety Performance 1.30 • Ongoing commitment to superior Health & Safety performance has Algoma Steel is proud to led to sustained improvement of safety metrics over time present its 2024 E
Slide 16: Key Performance Highlights
Key Performance Highlights Q1 FY2025 - Ended June 30th, 2024 • Shipping Volume was 503K NT in Q1 FY2025, up 12% from 451K NT in Q4 FY2024 and down 12% from 569K NT in Q1 FY2024. • Steel Revenue was $597 million in Q1 FY2025, up 5% from $568 million in Q4 FY2024 and down 21% from $755 million in Q1 F
Slide 17: Committed to our Path Forward, Creating a Track Record of Success
Committed to our Path Forward, Creating a Track Record of Success Strategic Direction Operational & Capital Ladle Met Furnace EAF Approval PMM Phase 1 LSP Power Plant EAF Project PMM Phase 2 PMM Phase 2 Improvements #2 Received board Enhancing quality and Installation of new Construction Commissioni
Slide 18: Recent Updates
Recent Updates For more updates follow our social channels on: @AlgomaSteelInc Algoma Steel Inc 17
Slide 19: Corporate Citizenship
Algoma Remains Committed to Sustainable Corporate Citizenship Environment Community Involvement • Algoma has a demonstrated commitment to environmental • As the largest employer in Sault Ste. Marie, Algoma Steel is an stewardship and is ISO 14401 certified active responsible stakeholder and is activ
Slide 20: Robust Go-To-Market Strategy Driving Expected Shipment Growth
Robust Go-To-Market Strategy Driving Expected Shipment Growth • Plate Modernization adds incremental 350k tons of plate capacity Algoma Strategy / Advantages • Enhances grades and qualities – Algoma to serve a broader range of end ✓ Displacement of imports in both sheet and plate markets and custome
Slide 21: Full Year Financial Highlights
Full Year Financial Highlights Source: Company Q4 & Full Year FY2024 Management's Discussion and Analysis 20 Adjusted EBITDA and Adjusted EBITDA margin are non-IFRS financial measures. See Annex: Adjusted EBITDA Reconciliation on Slide 15
Slide 22: Overview of Net Working Capital Seasonality
Overview of Net Working Capital Seasonality Net Working Capital $M1 $ 573 $ 589 $ 588 $ 568 $ 641 $ 687 $ 762 $ 623 $ 633 $ 825 $ 926 $ 875 $ 815 $ 849 $ 897 $ 830 $ 820 $1,250 $1,050 $850 $823 $887 ($ millions) $650 $808 $800 $616 $486 $866 $912 $759 $450 $480 $638 $723 $470 $415 $250 $489 $490 $52
Slide 23: Market Update
Market Update North American HRC and plate pricing remain subdued Historical Hot Rolled Coil (HRC) and As Rolled Plate Prices (ARP) (US$/ton) Key Market Drivers $2,200 • Index HRC remains below $700/NT with annual lows of CRU Index HRC / ARP $656/NT in July 2024. $2,000 • Imports continue to exceed
Slide 24: Algoma's Flexible, Low-Cost Operations Facilitates Optimization Across High Value Products
Algoma’s Flexible, Low-Cost Operations Facilitates Optimization Across High Value Products ✓ Algoma produces a wide variety of products to serve diverse end-markets ✓ Algoma is the only plate producer in Canada with current capacity of 350-400kt and anticipated capacity of 700kt per year once debott
Slide 25: 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 a broad customer base across various end markets • Operational flexibility to adjust product mix to align with market pricing and customer demand, a
Slide 26: DSPC Line Offers ~C$30-$40/NT Structural Conversion Cost Advantage Over BOF Peers
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: 2.3mm • Upgraded automation to incorporate most producer to operate a DSPC line, which tons rece
Slide 27: EAF Transition Expected to Materially Improve Algoma's Environmental Footprint
EAF Transition Expected to Materially Improve Algoma’s Environmental Footprint… Environmental Strategy • EAF production would unlock significant Improving Algoma’s Environmental Profile Provides environmental benefits – EAF steelmaking Long-Term Advantages generates substantially less CO2 and other
Slide 28: Annex: Steel Revenue and Cost of Sales
Annex: Steel Revenue and Cost of Sales Source: Company Q1 FY2025 Management's Discussion and Analysis 27
Slide 29: Annex: Adjusted EBITDA Reconciliation
Annex: Adjusted EBITDA Reconciliation Three months Three months millions of dollars ended ended June 30, 2024 June 30, 2023 Net income $6.1 $130.9 Depreciation of property, plant and equipment and amortization of intangible assets 33.2 23.3 Finance costs 16.4 5.1 Interest on pension and other post-e
Slide 30: Annex: Selected Quarterly Information
Annex: Selected Quarterly Information (millions of dollars, except where otherwise noted) 2025 2024 2023 As at and for the three months ended1 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Financial results Total revenue C$ 650.5 C$ 620.6 C$ 615.4 C$ 732.6 C$ 827.2 C$ 677.4 C$ 567.8 C$ 599.2 C$ 934.1 Steel products 59
Slide 31: Glossary
Glossary Term Definition Term Definition Basic Oxygen Furnace Vessel used to convert liquid hot metal from a blast Hot Rolled Sheet Carbon steel product commonly used for applications in (BOF) furnace into steel which dimensional tolerances and surface finish quality is not critical (e.g. automotive
Slide 32: NASDAQ:ASTL TSX: ASTL
NASDAQ:ASTL TSX: ASTL 57
Algoma Steel Group — Jefferies Industrial Conference 2024 on 6ix