Algoma Central Corporation · TSX:ALC
Algoma Central — Investor Presentation (January 2018)
26 slides from Algoma Central's investor presentation, January 2018
Slide 1: A Strategic Review: Double Double in Ten
ALGOMA DoubleCENTRAL DoubleCin Ten ORPORATION A Strategic INVESTOR Review PRESENTATION Algoma Central Corporation JBoard ANUARY 2018 Of Directors Sept 9th, 2015
Slide 2: Forward Looking Statements
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
Slide 3: Algoma Central Corporation
Algoma Central Corporation • The largest owner and operator of dry and liquid bulk carriers on the Great Lakes – St. Lawrence Waterway. • A Canadian shipowner since 1900 – 60 vessels globally • 2,000 employees • Trailing twelve months: - Revenue - $443 million - EBITDA - $105 million • Listed on TSX
Slide 4: Vision
Vision Growing our position as the carrier of choice for bulk commodities in the Great Lakes – St. Lawrence Waterway to become a leader in short sea shipping globally. 4 Short Sea Shipping is OUR BUSINESS
Slide 5: Highlights of 2017
Highlights of 2017 Continuation of Great Lakes dry-bulk fleet renewal program: • 2 new vessels added to operations: - Algoma Strongfield (Gearless Bulker) - Algoma Niagara (Belt Self-Unloader) • Took delivery of the Algoma Innovator from the Uljanik d.d. shipyard in Croatia –will join domestic fleet
Slide 6: Highlights of 2017
Highlights of 2017 Expansion of Global Short Sea Shipping: • Expanded cement fleet operating under NovaAlgoma Cement Carriers (NACC) − Fleet now at 11 operating and 2 under development − Includes vessels chartered to two Canadian producers • Acquired a 50% interest in a commercial platform and fleet
Slide 7: Divestiture of Real Estate
Divestiture of Real Estate • Sale proceeds of $104 million to date. • Station Mall in Sault Ste. Marie will be placed on the market in the future. • Strengthens balance sheet and provides funds for growth opportunities. 7 Short Sea Shipping is OUR BUSINESS
Slide 8: Investment Thesis
Investment Thesis Leader in Our Markets – This is Sustainable History of Performance in a Variety of Markets Diversified, Dependable Customer Base Well Capitalized to Pursue Growth Investing in Future Opportunities Internationally Strong History of Dividends 8 Short Sea Shipping is OUR BUSINESS
Slide 9: Growing Cash Flow and Earnings
Growing Cash Flow and Earnings 9 Short Sea Shipping is OUR BUSINESS
Slide 10: Diversified Business
Diversified Business 10 Short Sea Shipping is OUR BUSINESS
Slide 11: Growing from a Strong Financial Base
Growing from a Strong Financial Base Current Yield - 2.3% 11 Short Sea Shipping is OUR BUSINESS
Slide 12: 2025 Strategic Vision
2025 Strategic Vision • Continuation of Great Lakes dry-bulk fleet renewal program • Expansion into global short sea shipping 12 Short Sea Shipping is OUR BUSINESS
Slide 13: Building a Younger, More Efficient Fleet
Building a Younger, More Efficient Fleet 40 35 30 25 20 15 10 5 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 13 Short Sea Shipping is OUR BUSINESS
Slide 14: The Great Lakes Short-Sea Shipping Company
The Great Lakes Short-Sea Shipping Company • Trip times − Shorter than international trips with less time in open waters • Load / Unload − More material to overall voyage duration − Port delays can have significant impact on voyage P&L − Integration with customers' supply chains • Feeder service for
Slide 15: Our Strategy Going Forward
Our Strategy Going Forward Grow into international short-sea markets where we can add value. Target Market Features: • Opportunities for self-unloader or specialized applications to serve as feeder services between shallow draft ports and major seaports. • Opportunities to consolidate small regional
Slide 16: Setting the Scene: World Trade – Global Marine Trends 2030
Setting the Scene World Trade – Global Marine Trends 2030 Global Trade will at least double in the next 20 Years 10 20 Billion Billion Tonnes Tonnes 2010 2030 16 Short Sea Shipping is OUR BUSINESS
Slide 17: Short Sea Shipping to Grow Faster
Short Sea Shipping to Grow Faster Total Main Drivers: • Demography (Growing Population, Urbanization) • Rise of Trade Blocks (EU, NAFTA, ASEAN, UNASUR) • Geography (Europe, Oceania, S.E. Asia) • Lack of Infrastructure (India, Indonesia, Philippines, S.America, Africa) • Environment (“Green” Transpor
Slide 18: Growing Through Partnership
Growing Through Partnership NovaAlgoma NovaAlgoma Cement Carriers (NACC): Short-Sea Carriers (NASC): • Pneumatic cement carriers • Leverage client relationships servicing global manufacturers • Leverage existing business • Typically time charter based and contacts /partnerships under long term contr
Slide 19: Aging Global Cement Fleet
Aging Global Cement Fleet • Total cement carrier fleet (>2,000dwt): 320 vessel • Average fleet age: 25 year • Average age of scrapping: 33 years Illustrative Vessel in Global Fleet NACC Star in Nice, France 19 Short Sea Shipping is OUR BUSINESS
Slide 20: NACC is Now #2 Globally
NACC is Now #2 Globally Others 197,419 dwt 212,791 D 18 Vessels 16 Vessels Avg. Age 43 Yrs Avg. Age 15 Years Baltrader, 44,159 dwt, NACC/NMC 10 vessels, 19 years 95,272 Dwt 11 Vessels Avg. Age 7 Years, Eureka 47,001 Dwt 9 Vessels Avg. Age 33 Yrs______—— source: Howe Robinson Cement Desk, Howe Robins
Slide 21: Strong Global Footprint
Strong Global Footprint NACC POROS NACC TORONTO NACC ALICUDI NACC QUEBEC NACC STAR NACC ITACA NACC PROCIDA NACC PANAREA NACC VIVARA NACC NAPOLI NACC VEGA NACC VALBELLA NACC CAPRI 21
Slide 22: Growing Through Partnership
Growing Through Partnership NovaAlgoma NovaAlgoma Cement Carriers (NACC): Short-Sea Carriers (NASC): • Pneumatic cement carriers • Leverage client relationships servicing global manufacturers • Leverage existing business • Typically time charter based and contacts /partnerships under long term contr
Slide 23: Growing Global Footprint
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Slide 24: NovaAlgoma - The Next Two Years
NovaAlgoma - The Next Two Years • Algoma and Nova Marine will focus attention on growing the organizations’ strengths and capabilities • Establish dedicated staff and offices to lead market development • Short-term, the focus for NASC is the Caribbean and for NACC it is North and South America. • An
Slide 25: Analyst Coverage
Analyst Coverage • David Tyerman, Cormark Securities Inc. 25 Short Sea Shipping is OUR BUSINESS
Slide 26: Questions?
Double Double in Ten A Strategic Review Q UESTIONS? Algoma Central Corporation Board Of Directors Sept 9th, 2015
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