Algoma Central Corporation · TSX:ALC

Algoma Central — Shareholder Meeting (May 2023)

29 slides from Algoma Central's shareholder meeting presentation, May 1, 2023

  1. Slide 1: Annual General Meeting of Shareholders

    ANNUAL GENERAL MEETING OF SHAREHOLDERS Algoma Innovator, Port Colborne – Photo taken by 2nd Engineer Arnav Chatterjee

  2. Slide 2: Presenters

    P R ESENTER S Duncan Jackman, Chairman of the Board Wes Newton, Executive Vice-President Strategy & Business Development, and Corporate Secretary

  3. Slide 3: Agenda

    A GE ND A • Formal Meeting o Receive Financials o Elect Directors o Appoint Auditors • Business Presentation Algoma Innovator, Aurora Borealis in Thunder Bay – Photo taken by 2nd Engineer Arnav Chatterjee

  4. Slide 4: Receive Financials

    R E C E IV E F IN A N C IA L S For the year ended December 31, 2022 Algoma Innovator, Sarnia – Photo taken by 2nd Engineer Arnav Chatterjee

  5. Slide 5: Elect Directors

    E L E C T D IR E C T O R S 1. Mats Berglund 2. Richard B. Carty 3. Jens GrØnning 4. E.M. Blake Hutcheson 5. Duncan N.R. Jackman 6. Trinity O. Jackman 7. Mark McQueen 8. Clive P. Rowe 9. Gregg A. Ruhl 10.Eric Stevenson

  6. Slide 6: Appoint Auditors

    APPOINT AUDITORS Deloitte.

  7. Slide 7: Presenters

    P R ESENTER S Gregg Ruhl, President & CEO Peter Winkley, Executive Vice-President & CFO

  8. Slide 8: 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. Forward-looking statements are based on estimates and

  9. Slide 9: 2022 vs. 2021 Financial Snapshot

    2022 VS. 2021 F INA NC IA L S NA P S H O T FREIGHT REVENUE EBITDA NET EARNINGS RETURN ON EQUITY $900 $220 $205M $140 20% $812M 17.6% $800 $200 $189M $120M 18% $721M $120 $180 16% $700 13.7% $160 $100 14% $600 $140 $82M 12% $500 $80 $120 10% $400 $100 $60 8% $300 $80 $40 6% $60 $200 $40 4% $100 $20 $

  10. Slide 10: Operating Business Units

    OPERATING 2022 B US INE S S UNIT S $120M Net Earnings RELATIVE EARNINGS CONTRIBUTION $205M EBITDA 2021 $82M Net Earnings Domestic Dry-Bulk $189M EBITDA Product Tankers Ocean Self-Unloaders Global Short Sea 2020 $46M Net Earnings $174M EBITDA

  11. Slide 11: Our Fleet, Growth & Investment

    OUR FLEET NUMBER OF VESSELS 2022 GR O W T H & INV E S T M E NT 2 15 19 Domestic Dry-Bulk Ocean Self-Unloaders Product Tankers Northern Cement Carriers Europe 9 Mini-Bulkers 10 Handy-Size North Europe America 10 29 10 34 Med Asia 11 1 VESSELS ORDERED/UNDER CONSTRUCTION Caribbean South 1 6 Asia 2 Sout

  12. Slide 12: Returns to Our Shareholders

    RETURNS TO OUR SHA R E HOLDE R S DIVIDENDS (PER QUARTER) TOTAL SHAREHOLDER RETURN (TSR) $0.20 $1.35 $150 $145 $2.65 $0.18 $0.16 Special Dividends Totaling: $4.75 $125 $0.14 $0.12 $0.75 $0.10 $100 $100 $0.08 $0.06 $0.04 Annual Return: 7.8% $75 $0.02 $- Q1 - 2018 Q2 - 2018 Q3 - 2018 Q4 - 2018 Q1 - 201

  13. Slide 13: Our Sustainability Strategy

    WE ARE POWERED BY OUR PEOPLE OUR PROCESS & SYSTEM IMPROVEMENTS S US T A INA B ILIT Y TRAINING S TR A TE GY WELCOMING UKRAINIAN SEAFARERS NEW GROWTH OPPORTUNITIES YOUR MARINE CARRIER OF CHOICE BUILDING CONNECTIONS OCEAN SUL NEWBUILD PROGRAM A PLACE TO FUREBEAR WORK FOR ALL JOINT VENTURE COMMITMENT TO

  14. Slide 14: 2022 Financial Results

    2022 F IN A N C IA L R E S ULT S Honourable Henry Jackman, Port McNeil, British Colombia – photo taken by Captain Nand Bhatia

  15. Slide 15: Financial Snapshot 2022 vs. 2021

    2022 VS. 2021 FINANCIAL SNAPSHOT REPORTED REVENUE EBITDA NET EARNINGS RETURN ON EQUITY $800 $220 $140 20% $200 18% $700 $120 $180 16% $600 $160 $100 14% $500 $140 12% $80 $120 $400 10% $100 $60 8% $300 $80 $40 6% $200 $60 4% $40 $100 $20 $20 2% $- $- $- 0% 2021 2022 2021 2022 2021 2022 2021 2022

  16. Slide 16: Five Year Financial Trend

    FIVE YEAR F INA NC IA L T R E ND FREIGHT REVENUE EBITDA ADJUSTED NET EARNINGS $900 $250 $120 $800 $100 $700 $200 $600 $80 $150 $500 $60 $400 $100 $300 $40 $200 $50 $20 $100 $- $- $- 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022

  17. Slide 17: Relative Size Business Unit Contributions

    RELATIVE SIZE B US INE S S UNIT C O NT R IB UT IO NS 100% 7% 90% 17% 27% 80% 25% 70% 28% 60% 21% 33% 50% 9% 40% 9% 30% 47% 46% 20% 31% 10% 0% 2020 2021 2022 Domestic Dry-Bulk Product Tankers Oceans Self-Unloaders Global Short Sea Shipping

  18. Slide 18: Domestic Dry-Bulk Financial Performance

    DOMESTIC DRY-BULK F INA NC IA L P E R F O R M A NC E REVENUE EBITDA NET EARNINGS $400 $100 $60 $350 $90 $50 $80 $300 $70 $40 $250 $60 $200 $50 $30 $150 $40 $20 $30 $100 $20 $10 $50 $10 $- $- $- 2020 2021 2022 2020 2021 2022 2020 2021 2022

  19. Slide 19: Product Tankers Financial Performance

    PRODUCT TANKERS F INA NC IA L P E R F O R M A NC E REVENUES EBITDA NET EARNINGS $140 $40 $18 $35 $16 $120 $14 $30 $100 $12 $25 $80 $10 $20 $60 $8 $15 $6 $40 $10 $4 $20 $5 $2 $- $- $- 2020 2021 2022 2020 2021 2022 2020 2021 2022

  20. Slide 20: Ocean Self-Unloaders Financial Performance

    OCEAN SELF-UNLOADERS F INA NC IA L P E R F O R M A NC E REVENUE EBITDA NET EARNINGS $220 $80 $50 $200 $45 $70 $180 $40 $160 $60 $35 $140 $50 $30 $120 $40 $25 $100 $20 $80 $30 $15 $60 $20 $40 $10 $20 $10 $5 $- $- $- 2020 2021 2022 2020 2021 2022 2020 2021 2022 Honourable Henry Jackman, Port McNeil, B

  21. Slide 21: Global Short Sea Shipping Financial Performance

    GLOBAL SHORT SEA SHIPPING F INA NC IA L P E R F O R M A NC E REVENUE(1) EBITDA(2) EQUITY EARNINGS(2) $300 $60 $35 $250 $30 $50 $25 $200 $40 $20 $150 $30 $15 $100 $20 $10 $50 $10 $5 $- $- $- 2020 2021 2022 2020 2021 2022 2020 2021 2022 (1) Revenue from the Global Short Sea segment is not included in

  22. Slide 22: Q1 2023 Financial Results

    Q1 2023 F IN A N C IA L R E S UL T S Algoma Innovator, Lake Erie – Photo taken by 2nd Engineer Arnav Chatterjee

  23. Slide 23: Q1 2023 Financial Snapshot

    Q1 2023 FINANCIAL SNAPSHOT FREIGHT REVENUE REPORTED REVENUE EBITDA NET LOSS $160 $120 $- $- $140 $(1) $100 $(2) $(5) $120 $100 $80 $(3) $(10) $(4) $80 $60 $(5) $60 $(15) $40 $(6) $40 $(7) $(20) $20 $20 $(8) $- $- $(9) $(25) 2022 2023 2022 2023 2022 2023 2022 2023

  24. Slide 24: Domestic Dry-Bulk Financial Performance

    DOMESTIC DRY-BULK F INA NC IA L P E R F O R M A NC E REVENUE EBITDA NET LOSS $40 $- $- $35 $(5) $(5) $30 $(10) $(10) $25 $20 $(15) $(15) $15 $(20) $(20) $10 $(25) $(25) $5 $- $(30) $(30) Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Algoma Niagara, Mackinac Straits – Photo by Captain Peter Klaasse

  25. Slide 25: Product Tankers Financial Performance

    PRODUCT TANKERS F INA NC IA L P E R F O R M A NC E REVENUE EBITDA NET EARNINGS $35 $6 $5 $30 $4 $5 $25 $3 $4 $20 $2 $3 $15 $1 $2 $10 $- $5 $1 $(1) $- $- $(2) Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023

  26. Slide 26: Ocean Self-Unloaders Financial Performance

    Algoma Victory, Baltimore – Photo taken by Training Captain Borys Kulakov OCEAN SELF-UNLOADERS F INA NC IA L P E R F O R M A NC E REVENUE EBITDA NET EARNINGS $50 $14 $7 $45 $12 $6 $40 $35 $10 $5 $30 $8 $4 $25 $6 $3 $20 $15 $4 $2 $10 $2 $1 $5 $- $- $- Q1 2022 Q2 2023 Q1 2022 Q2 2023 Q1 2022 Q1 2023

  27. Slide 27: Global Short Sea Shipping Financial Performance

    GLOBAL SHORT SEA SHIPPING F INA NC IA L P E R F O R M A NC E REVENUE(1) EBITDA(2) EQUITY EARNINGS(2) $70 $9 $3.0 $60 $8 $2.5 $7 $50 $6 $2.0 $40 $5 $1.5 $30 $4 $3 $1.0 $20 $2 $10 $0.5 $1 $- $- $- Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 (1) Revenue from the Global Short Sea segment is not incl

  28. Slide 28: Business Outlook

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  29. Slide 29: Questions?

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