Algoma Central Corporation · TSX:ALC
Algoma Central — Investor Presentation (February 2021)
29 slides from Algoma Central's investor presentation, Feb 9, 2021
Slide 1: Investor Presentation
Investor Presentation February 9h, 2021
Slide 2: Disclaimer
Disclaimer This presentation does not constitute an offer or invitation to subscribe for or purchase any securities and nothing contained herein shall form the basis of any contract or commitment whatsoever. The information contained in this presentation has been prepared by Algoma Central Corporati
Slide 3: Disclaimer (cont'd)
Disclaimer (cont’d) Any information in this presentation demonstrating or implying the historical performance of the Company or any other entity addressed in this presentation is intended only to illustrate past performance of such entities and are not necessarily indicative of future performance of
Slide 4: Today's Presenters
Today’s Presenters Gregg Ruhl Peter D. Winkley President & Chief Executive Officer Chief Financial Officer 4 Your Marine Carrier of Choice™
Slide 5: Table of Contents
Table of Contents 1 Executive Summary 2 Company Overview 3 Company Attributes 5 Your Marine Carrier of Choice™
Slide 6: Executive Summary
Executive Summary Section I
Slide 7: Company in a Nutshell
Company in a Nutshell Algoma Central Corporation (“Algoma” or the “Company”) is a leading provider of maritime transportation services within the Great Lakes – St. Lawrence Waterway as well as other specialized markets internationally − The Company serves as a critical link in the supply chains of
Slide 8: Algoma Central – Provider of Critical Maritime Infrastructure
Algoma Central – Provider of Critical Maritime Infrastructure CY2019 EBITDA Breakdown Incorporated in 1899 as the Algoma Central Railway Company, Algoma Central Corporation (“Algoma” or the “Company”) owns and operates the largest fleet of dry and liquid bulk carriers on the Great Lakes - St. by B
Slide 9: Simplified Business Segment Structure
Simplified Business Segment Structure Algoma Central Corporation 100% 100% 100% 50% 100% Global Domestic Domestic Product Ocean Investment Short Sea Shipping Dry-Bulk Tankers Self-Unloaders Properties (JV Interests) Investments and Core Marine Non-Core Businesses Businesses Source: Company materials
Slide 10: Company Overview
Company Overview Section II
Slide 11: The Great Lakes – St. Lawrence Seaway is a Critical Regional Transportation Corridor
The Great Lakes – St. Lawrence Seaway is a Critical Regional Transportation Corridor By the Numbers $6 trillion annual economic output 30% combined Canadian-U.S. economic activity +50 million jobs 230 million metric tons of cargo delivered each year through the corridor Connects more than 110 port c
Slide 12: The Evolution of a Leading Regional Infrastructure Company
The Evolution of a Leading Regional Infrastructure Company Algoma Today (2020+) Building a Maritime Infrastructure Well-capitalized and entrenched with customers Platform (2000 – 2019) Long-term investments in asset base ‒ Great Lakes fleet renewal largely complete ‒ Expanded domestic product ta
Slide 13: Not Just Another Shipping Company – Why Algoma is Different
Not Just Another Shipping Company – Why Algoma is Different Typical International Shipping Company Provider of service and assets necessary Asset provider (just steel) Business Model for customers’ supply chains Commoditized # of Market Participants Limited Highly fragmented Specialized to suit trad
Slide 14: Unique and Unmatched Aspects of Algoma's Self-Unloader Fleet
Unique and Unmatched Aspects of Algoma’s Self-Unloader Fleet – Creating Barriers to Competition 1 Long-Term Solution Provider Longer-term contractual arrangements on the back of long-term relationships; “stickiness of trade” Significant scale (e.g. numerous ships) required to provide efficient a
Slide 15: Business Unit Overview
Business Unit Overview Great Lakes, St. Lawrence Waterways, and Atlantic Canada International Niche Markets / Trades Domestic Dry-Bulk Domestic Product Tankers Ocean Self-Unloaders Global Short Sea Shipping Dry-bulk products including iron ore, Primarily semi-refined products Coal, crushed agg
Slide 16: Specialized Asset Base – A Necessary Link in Supply Chains of Customers
Specialized Asset Base – A Necessary Link in Supply Chains of Customers Lakes Lakes Domestic Product Ocean Specialized Cement Short & Deep Self-Unloader Gearless Bulker Tanker Self-Unloader Carrier Sea Mini-Bulker Size: 23-37,000 dwt Size: 31-39,000 dwt Size: 11-18,500 dwt Size: 45-76,000 dw
Slide 17: Long-Term, Sustained Investments in the Asset Base
Long-Term, Sustained Investments in the Asset Base 1 Domestic Dry-Bulk Renewal – $435 million since 2009 ‒ Fleet renewal largely complete with eight new Equinox class vessels delivered over the last decade ‒ Significantly reduced the average fleet age by approximately 30 years ‒ Improved safety, erg
Slide 18: Operational Excellence Supported by Leading Safety Track Record
Operational Excellence Supported by Leading Safety Track Record Algoma Central is committed to injury prevention and continuously innovates operational improvements to drive a safe, efficient and sustainable working environment Algoma Central’s Safety Management Culture Defined worker safety practic
Slide 19: Company Attributes
Company Attributes Section III
Slide 20: Key Company Attributes
Key Company Attributes 1 2 3 A Leader in the Core Component of North Compelling Great Lakes Market American Transportation Cash Flow Profile Infrastructure 4 5 6 Highly Defensible Diversified Revenue, Experienced Workforce with Business Large Customers and Deep Industry Knowledge and Stable End Mark
Slide 21: A Leader in the Great Lakes Market
A Leader in the Great Lakes Market Proven track record and reputation as a leading Great Lakes provider that continuously delivers a high quality, reliable service to its customers Hard-to-Replicate Brand, Sticky, Long-Term 1 Asset Base and Business Model Largest operator in the Great 2 Relationsh
Slide 22: Core Component Of Regional Infrastructure – No Efficient Alternatives Exist
Core Component Of Regional Infrastructure – No Efficient Alternatives Exist Transportation Criteria(1) Decision Physical Constraints Economic Considerations Other Factors Points Infra Availability Load Capacity Price Haul Distance Transport Speed Safety Fuel Emissions Shipping Mid High Low High Low
Slide 23: Compelling Cash Flow Profile
Compelling Cash Flow Profile Operational Proven track record of generating stable operating cash flow for Excellence High Quality over two decades Counterparties Compelling business model delivers an attractive cash flow profile Modest Leverage − Critical infrastructure partner − Significant bar
Slide 24: Multiple Defensive Attributes Protect Algoma's Market Leadership Position
Multiple Defensive Attributes Protect Algoma’s Market Leadership Position Only a limited number of independent Significant regulation of the domestic operators have the safety record, geographic waterways transportation industry in both footprint, fleet size and logistics expertise of Canada and
Slide 25: Diversified Revenue, Large Customers and Stable End Markets
Diversified Revenue, Large Customers and Stable End Markets Commentary Iron Ore Limestone and cement Grain (wheat, barley, soy The customer, geographic and operational diversity of Uses: Domestic steel Uses: Construction of bean, corn, canola) the Company mitigates negative economic impact to prod
Slide 26: Senior Management Team with Strong Commercial Knowledge and Valuable Customer Relationships
Senior Management Team with Strong Commercial Knowledge and Valuable Customer Relationships Algoma’s Executive Team Gregg Ruhl Peter D. Winkley President and Chief Financial Officer Chief Executive Officer Joined Algoma: 2015 Joined Algoma: 2010 Industry Experience: 32 years Industry Experience: 10
Slide 27: Legal and Regulatory Considerations
Legal and Regulatory Considerations Per the Act, foreign or non-duty paid vessels are prohibited from engaging in any form of coasting trade activities in Canadian waters, or between Canadian ports unless they obtain a so-called coasting trade license prior to starting the operations − In order to
Slide 28: Competitive Dynamics – Consolidated Markets with Rational Competitive Dynamics
Competitive Dynamics – Consolidated Markets with Rational Competitive Dynamics Commentary Algoma owns and operates the largest fleet of dry Domestic Dry-Bulk Landscape and liquid bulk carriers on the Great Lakes - St. Lawrence Waterway Vessel Type Increasingly difficult for smaller and undercapi
Slide 29: Thank You
Thank You
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