2019 A Year In Review Your Marine Carrier of Choice Table of Contents CEO Message 1 About Algoma 3 Celebrating 120 Years 5 Financial Highlights 7 Delivering Our Strategy 9 Strategic Focus 2020 10 Segment Highlights 11 Outlook 2020 15 Sustainability 17 Vision & Values Marine Carrier of Choice TEAMWORK PASSION INTEGRITY We are stronger We are committed We are honest, we together. in heart and mind, are courageous we are driven and and we always we are proud. strive to make the right choice. OWNERSHIP SUSTAINABILITY We take We believe in our accountability for people, we care for our actions and we our planet and we are empowered to work to ensure the initiate change. prosperity of our stakeholders. 1 Algoma Central Corporation Year In Review A Message From Our CEO As fiscal 2019 drew to a close, the senior leadership team of Algoma met away from the work-a-day demands of the office with one purpose in mind – consider the Company’s existing vision statement and corporate values and update them to reflect our current goals and priorities. This meeting led to a new vision and values. While the words may be new, I am happy to say they are fully consistent with the business strategy we adopted four years ago. Marine Carrier of Choice Our new vision statement verbalizes something that Our values describe how we do the things we must has always been a goal for Algoma. It emphasizes do to be the marine carrier of choice. Our values, a fact we know well – all stakeholders have choices simply put, are: and we want Algoma to be at the top of their list. • Teamwork – we are stronger together. This vision statement will drive our actions in all areas of the business: • Passion – we are committed in heart and mind; we are driven and we are proud. • For customers, we want to be their go-to provider of marine freight services. We will • Integrity – we are honest, we are courageous, do this by providing unsurpassed service and and we always strive to make the right choices. flexibility at a fair price. When our customers • Ownership – We take accountability for our succeed, we succeed. actions and we are empowered to initiate • For employees, we are proud they have chosen change. to work at Algoma and want them to stay with • Sustainability – we believe in our people, we us until retirement. For potential employees, care for our planet, and we work to ensure the we want them to consider a job in marine prosperity of our stakeholders. transportation and with Algoma in particular, for an attractive and rewarding career. We took action in 2019 and achieved progress on many fronts in furtherance of our goals: • For investors and other capital providers, Algoma should be their first choice when they • When the self-unloading Algoma Conveyor are thinking of investing their funds in the joined our fleet in the spring, she became the marine sector. eighth vessel in the fleet to employ a closed loop exhaust gas scrubber, a technology that protects • For vendors and our business partners, we the planet by reducing sulphur oxide emissions want them to value the relationship they have and at the same time generates a solid return with Algoma because working together builds on investment. Two more equinox class vessels strength. are under construction and scrubbed vessels will • For society as a whole, choosing marine exceed 50% of our domestic fleet in the not too transportation is a must because it has the distant future. lowest environmental footprint and, in many cases, is the only effective method for moving large volumes of materials. Algoma Central Corporation Year In Review 2 • We added the Algoterra product cooperative approach, working tanker in April which, combined closely with those charged with Key Achievements with the Algonorth acquired last managing the waterways to identify year, resulted in a 40% increase in and implement the best solution. By our full size tanker fleet, enabling its very nature, the optimal solution is Added the Algoma us to be more flexible and a compromise. It has not and cannot Conveyor to the responsive to meet customers’ lead to a rapid decrease in water domestic fleet. The needs. levels, or any closure of the seaway. eighth vessel to Those who depend on marine • We bought out the third partner employ a closed transportation have borne their share in the world’s largest pool of self- loop exhaust of the costs already by adjusting unloading vessels, solidifying our gas scrubber - a operating practices. technology that position in the pool and in the protects the planet. niche market that it serves. We entered 2020 with a strong book of business, a healthy customer • We took steps to strengthen base, and employees ready to the cement business within Added the Algoterra execute efficient operations. Now, our global short sea segment, product tanker in as I write this, the world is facing including adding a third vessel April increasing our unprecedented times as the spread servicing the key Canadian full size tanker fleet of COVID-19 has affected countless market. by 40% since early businesses across Canada and 2018. Of course, 2019 was not without around the world. Here at Algoma challenges, and living our values we have accepted the challenge allowed the Company to rise to meet of being an essential service and Increased our them. One of the most critical issues are continuing our operations. Our position in the we, and the industry at large, face team has stepped up and been largest pool of today is attracting and retaining working harder than ever to put new ocean-going self- skilled workers. This is one reason measures in place to protect our unloading vessels. that being a marine employer of crew, staff, customers and vendors choice is so important to us. We while we continue to deliver essential took a number of initiatives in 2019 goods that feed the world and fuel to address this issue, focusing on society's economic engine. Due to Strengthened training and on ensuring the best the current environment, we are cement business, combination of compensation and experiencing higher volumes in grain adding a third vessel working conditions possible. There and lower volumes in steel related in Canada. will always be more to do on this shipments. front and we continue to look for Our business, while an essential ways to make Algoma the employer service, will experience reduced of choice in our industry. activity and lower returns, but I The environment was also a key believe Algoma is resilient and focus in 2019. In particular, the Great well positioned to overcome the Lakes experienced water levels at challenges ahead. We are, after all, or approaching record levels for your marine carrier of choice. almost the entire year. Property owners, especially those with homes along the shores of Lake Gregg A. Ruhl Ontario, experienced flooding that President & CEO was unabated for much of the year. Unfortunately, there is no one simple solution for this situation, despite claims from some quarters that there is. We are taking a proactive, 3 Algoma Central Corporation Year In Review About Algoma Algoma (TSX: ALC) owns and operates international markets and a 50% interest the largest fleet of dry and liquid bulk in NovaAlgoma, which owns and operates carriers operating on the Great Lakes, a diversified portfolio of dry-bulk fleets including dry-bulk carriers and product serving customers internationally. tankers. Algoma also owns ocean self- Visit algonet.com and follow us on social unloading dry-bulk vessels operating in media @AlgomaCentral Domestic Product Ocean Global Dry-Bulk Tankers Self-Unloaders Short Sea Shipping Algoma offers customers The Product Tanker fleet This fleet of eight ocean- The Global Short Sea within the Great Lakes of eight Canadian tanker going self-unloading Shipping segment - St. Lawrence Seaway vessels services energy vessels participates in comprises three joint and Atlantic Canada industry customers on the world's largest Pool ventures with our regions the most the Great Lakes, the of these specialized partner Nova Marine Holding SA of Lugano, versatile fleet of dry-bulk St.Lawrence Seaway and vessels. The Pool Switzerland, including carriers available today. the east coast of North provides transportation the largest fleet of Our domestic dry-bulk America. of dry-bulk commodities pneumatic cement fleet comprises eight and trades primarily on carriers in the world. This gearless dry-bulk carriers the east and west coasts joint venture has grown and 11 self-unloading of North and South rapidly since it began in dry-bulk carriers. America. early 2016. 5 Algoma Central Corporation Year In Review Proudly Celebrating 120 Years of History 1899 Algoma Central and Hudson Bay Railway Company is founded by Francis Clergue in Sault Ste. Marie, Ontario. 1900 Four steamships are purchased for freight and passenger service. The Algoma Central Steamship Line is born. 1913 - 1914 Head office and railway station opens in Sault Ste. Marie Ontario and the Algoma bear logo is introduced. 1935 Ships are re-named with the prefix ALGO. 1951 - 1959 Algoma Steamships Limited is formed. 1959 marks the end of the Corporation’s long period of receivership. 1973 Algocen Realty Holdings is established while the Corporation’s self-unloader fleet continues to expand. 1990 The name was changed to Algoma Central Corporation. 1995 Algoma Central Railway was sold. Algoma Central Corporation Year In Review 6 Proudly Celebrating 120 Years of History 1997 Algoma acquires a 50% interest in Marbulk Canada Inc. expanding into ocean self- unloaders. 1998 Algoma expands its domestic shipping operations and Algoma Tankers Limited is formed, leading to the acquisition of Imperial Oil's Great Lakes fleet.