Algoma Central Corporation · TSX:ALC
Algoma Central — Shareholder Meeting (May 2022)
36 slides from Algoma Central's shareholder meeting presentation, May 1, 2022
Slide 1: 2022 Annual General Meeting
2022 ANNUAL GENERAL MEETING ALGOMA CENTRAL CORPORATION
Slide 2: Presenters
PRESENTERS Duncan Jackman, Chairman of the Board Wes Newton, Corporate Secretary
Slide 3: Agenda
AGENDA • Formal Meeting o Receive Financials o Elect Directors o Appoint Auditors • Business Presentation
Slide 4: Receive Financials
RECEIVE FINANCIALS For the year ended December 31, 2021
Slide 5: Elect Directors
ELECT DIRECTORS Richard B. Carty Paul R. Gurtler E.M. Blake Hutcheson Duncan N.R. Jackman Trinity O. Jackman Mark McQueen Clive P. Rowe Harold S. Stephen Eric Stevenson
Slide 6: Appoint Auditors
APPOINT AUDITORS Deloitte
Slide 7: Business Presentation / Forward Looking Statements
BUSINESS PRESENTATION FORWARD LOOKING STATEMENTS Certain statements in this document about our current and future plans, expectations and intentions, results, levels of activity, performance, goals or achievements or any other future events or developments constitute forward-looking statements. Forw
Slide 8: Presenters
PRESENTERS Gregg Ruhl, President & CEO Peter Winkley, Chief Financial Officer
Slide 9: Financial Snapshot
FINANCIAL SNAPSHOT FREIGHT REVENUES* EBITDA* NET EARNINGS RETURN ON EQUITY $200 $90 16% $800 $189M $82M $721M 13.7% $180 $80 14% $700 $160 $70 12% $600 $140 $60 10% $500 $120 $50 $100 8% $400 $40 $80 6% $300 $30 $60 4% $200 $20 $40 2% $100 $20 $10 $- $- 0% $- 2020 2021 2020 2021 2020 2021 2020 2021
Slide 10: Not Your Average Shipping Company
NOT YOUR AVERAGE SHIPPING COMPANY WHY ALGOMA IS DIFFERENT TYPICAL INTERNATIONAL SHIPPING COMPANY Provider of service and assets necessary for Asset provider (just steel) BUSINESS MODEL customers’ supply chains Commoditized # OF MARKET PARTICIPANTS Limited Highly fragmented Specialized to suit tradin
Slide 11: Long-Term Relationships
LONG-TERM RELATIONSHIPS 80+ years 50+ years 20 years 55+ years 30+ years (owned ~70% by)
Slide 12: Our Fleet Around the World
OUR FLEET Algoma’s marine journey started in 1900, with four steam vessels operating out of Sault Ste. AROUND THE WORLD Marie, Ontario. Today, we operate the largest fleet of dry and liquid bulk carriers on the Great Lakes with fleets that transport essential cargo around the world. NORTHERN EUROPE
Slide 13: Operating Business Units
OPERATING BUSINESS UNITS RELATIVE EARNINGS CONTRIBUTION Global Short Sea Shipping Canadian Domestic 2021 Dry-Bulk $82M Net Earnings $189M EBITDA* *EBITDA includes our 50% share from the Global Short Sea Shipping segment. Ocean Self-Unloaders Canadian Product Tankers
Slide 14: Returns to Shareholders
RETURNS TO SHAREHOLDERS DIVIDENDS (PER QUARTER) TOTAL SHAREHOLDER RETURN $0.18 200 Also Paid $0.16 Special Dividends June 2019 - $0.75 175 $0.14 January 2021 - $2.65 $0.12 150 $0.10 125 $0.08 $0.06 100 $0.04 $0.02 75 2016 2017 2018 2019 2020 2021 $- Algoma Central Corporation S&P/TSX 100 Q1 - 2017 Q
Slide 15: Safety Is First, Period.
SAFETY IS FIRST, PERIOD. 60 50 We recorded the lowest number of 40 lost time injuries in 30 our history in 2021. 20 10 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Slide 16: Strategic Growth
STRATEGIC GROWTH M/V ALGOMA BEAR
Slide 17: Not All Heroes Wear Capes, Some Wear Hard Hats
NOT ALL HEROES WEAR CAPES SOME WEAR HARD HATS.
Slide 18: Sustainable Progress
SUSTAINABLE PROGRESS GHG REDUCTION TARGET NEW TECHNOLOGIES DATA COLLECTION MARINE ECOSYSTEMS
Slide 19: How We Create Value
HOW WE CREATE VALUE OUR PEOPLE OUR CUSTOMERS OUR SHAREHOLDERS SOCIETY Randy Chislett, Ordinary Seaman
Slide 20: 2021 Financial Results
25 34 202 ALGOMA INTREPID TORONTO Mo s772967
Slide 21: Financial Snapshot
FINANCIAL SNAPSHOT FREIGHT REVENUES* REPORTED REVENUES NET EARNINGS RETURN ON EQUITY $800 $700 $90 16% $700 $80 14% $600 $70 $600 12% $500 $60 $500 10% $400 $50 $400 8% $300 $40 $300 6% $30 $200 $200 4% $20 $100 $100 2% $10 $- $- $- 0% 2020 2021 2020 2021 2020 2021 2020 2021 *Freight revenues and EB
Slide 22: 5 Year Business Unit Trend
5 YEAR BUSINESS UNIT TREND FREIGHT REVENUES* REPORTED REVENUES ADJUSTED NET EARNINGS $800 $700 $90 $700 $80 $600 $70 $600 $500 $60 $500 $400 $50 $400 $300 $40 $300 $30 $200 $200 $20 $100 $100 $10 $- $- $- 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 *Freight revenues an
Slide 23: Relative Size of Businesses
RELATIVE SIZE OF BUSINESSES RELATIVE EARNINGS CONTRIBUTION 100% $90,000 11% 7% 90% 17% $80,000 80% 25% $70,000 28% 70% 28% $60,000 60% 21% $50,000 50% 23% 9% $40,000 40% $30,000 30% 47% 46% $20,000 20% 38% 10% $10,000 0% $- 2019 2020 2021 DDB Tankers Oceans GSS Earnings (Right)
Slide 24: Domestic Dry-Bulk
DOMESTIC DRY-BULK REVENUES NET EARNINGS EBITDA $400 $60 $100 $350 $90 $50 $80 $300 $70 $40 $250 $60 $200 $30 $50 $150 $40 $20 $30 $100 $20 $10 $50 $10 $- $- $- 2019 2020 2021 2019 2020 2021 2019 2020 2021
Slide 25: Product Tankers
PRODUCT TANKERS REVENUES NET EARNINGS EBITDA $160 $18 $40 $140 $16 $35 $120 $14 $30 $12 $100 $25 $10 $80 $20 $8 $60 $15 $6 $40 $10 $4 $20 $2 $5 $- $- $- 2019 2020 2021 2019 2020 2021 2019 2020 2021
Slide 26: Ocean Self-Unloaders
OCEAN SELF-UNLOADERS REVENUES NET EARNINGS EBITDA $180 $35 $60 $160 $30 $50 $140 $25 $120 $40 $100 $20 $30 $80 $15 $60 $20 $10 $40 $5 $10 $20 $- $- $- 2019 2020 2021 2019 2020 2021 2019 2020 2021
Slide 27: Global Short Sea Shipping
GLOBAL SHORT SEA SHIPPING REVENUES* EQUITY EARNINGS EBITDA $140 $20 $35 $120 $15 $30 $100 $10 $25 $80 $5 $20 $60 $- $15 $40 $(5) $10 $20 $(10) $5 $- $(15) $- 2019 2020 2021 2019 2020 2021 2019 2020 2021 *Revenues includes our 50% share of revenue from the Global Short Sea Shipping segment.
Slide 28: 2022 Q1 Financial Results
- 2022 Q1 FINANCIAL RESULTS YOUR MARINE CARRIER OF CHOICE.” -
Slide 29: Financial Snapshot
FINANCIAL SNAPSHOT FREIGHT REVENUES* REPORTED REVENUES NET LOSS EBITDA $120 $90 $(18.0) $- $80 $(18.5) $(1) $100 $(19.0) $70 $(19.5) $(2) $80 $60 $(20.0) $50 $(3) $60 $(20.5) $40 $(4) $(21.0) $40 $30 $(21.5) $(5) $20 $(22.0) $20 $(6) $10 $(22.5) $- $- $(23.0) $(7) Q1 2021 Q1 2022 Q1 2021 Q1 2022 Q1
Slide 30: Domestic Dry-Bulk
DOMESTIC DRY-BULK REVENUES NET LOSS EBITDA $30 $(19.0) $(20) $25 $(19.5) $(21) $(20.0) $(21) $20 $(20.5) $(22) $15 $(21.0) $(22) $10 $(21.5) $(23) $5 $(22.0) $(23) $- $(22.5) $(24) Q1 2021 Q1 2022 Q1 2021 Q1 2022 Q1 2021 Q1 2022
Slide 31: Product Tankers
PRODUCT TANKERS REVENUES NET LOSS EBITDA $20 $2.5 $4.5 $18 $4.0 $2.0 $16 $3.5 $1.5 $14 $3.0 $12 $1.0 $2.5 $10 $0.5 $2.0 $8 $- $6 $1.5 $(0.5) $4 $1.0 $2 $(1.0) $0.5 $- $(1.5) $- Q1 2021 Q1 2022 Q1 2021 Q1 2022 Q1 2021 Q1 2022
Slide 32: Ocean Self-Unloaders
OCEAN SELF-UNLOADERS REVENUES NET EARNINGS EBITDA $45 $7 $13.5 $40 $6 $13.0 $35 $5 $12.5 $30 $25 $4 $12.0 $20 $3 $11.5 $15 $2 $11.0 $10 $5 $1 $10.5 $- $- $10.0 Q1 2021 Q1 2022 Q1 2021 Q1 2022 Q1 2021 Q1 2022
Slide 33: Global Short Sea Shipping
GLOBAL SHORT SEA SHIPPING REVENUES* EQUITY EARNINGS EBITDA $35 $3.0 $9.0 $30 $8.0 $2.5 $7.0 $25 $2.0 $6.0 $20 $5.0 $1.5 $15 $4.0 $1.0 $3.0 $10 $2.0 $5 $0.5 $1.0 $- $- $- Q1 2021 Q1 2022 Q1 2021 Q1 2022 Q1 2021 Q1 2022 *Revenues includes our 50% share of revenue from the Global Short Sea Shipping seg
Slide 34: 2022 Business Outlook
2022 BUSINESS OUTLOOK Randy Chislett, Ordinary Seaman
Slide 35: Support for Our Ukrainian Seafarers
SUPPORT FOR OUR UKRAINIAN SEAFARERS. Randy Chislett, Ordinary Seaman
Slide 36: Questions?
JOAN D.-LEITCH