Algoma Steel Group Inc. (NASDAQ:ASTL) Q3 2023 Earnings Conference Call February 14, 2023 11:00 AM ET Company Participants Mike Moraca - Treasurer and Investor Relations Officer Michael Garcia - Chief Executive Officer Rajat Marwah - Chief Financial Officer Conference Call Participants David Ocampo - Cormark Securities Ian Gillies - Stifel David Gagliano - BMO Capital Markets Anoop Prihar - Eight Capital Ahmad Shaath - Beacon Securities Operator Hello and welcome to today’s Conference Call to discuss Algoma ...

Exhibit 99.2 Condensed Interim Consolidated Financial Statements ALGOMA STEEL GROUP INC. (Unaudited) As at December 31, 2022 and March 31, 2022 and for the three and nine month periods ended December 31, 2022 and 2021 Algoma Steel Group Inc. Condensed Interim Consolidated Statements of Net (Loss) Income (Unaudited) Three months ended Nine months ended December 31, December 31, 2022 2021 2022 2021 expressed in millions of Canadian dollars, except for per share amounts Revenue (Note 4) $567.8 $1,064.9 $2,101. ...

Algoma Steel Group Inc. (NASDAQ:ASTL) Q2 2023 Earnings Conference Call November 8, 2022 11:00 AM ET Company Participants Michael Moraca - Treasurer and IR Officer Michael Garcia - CEO Rajat Marwah - CFO Conference Call Participants David Ocampo - Cormark Securities Anoop Prihar - Eight Capital Ian Gillies - Stifel Ahmad Shaath - Beacon Securities Alexander Jackson - RBC Operator Good day and welcome to today's conference call to discuss Algoma Steel's Fiscal Second Quarter 2023 Financial Results. My name is ...

Financial Performance - Revenue for the three months ended September 30, 2022, was $599.2 million, a decrease of 40.7% compared to $1,010.2 million for the same period in 2021[3] - Net income for the three months ended September 30, 2022, was $87.2 million, down 69.8% from $288.2 million in the prior year[5] - Operating income for the six months ended September 30, 2022, was $334.5 million, a decline of 48.9% compared to $654.3 million for the same period in 2021[3] - The company reported a total comprehensive income of $168.0 million for the three months ended September 30, 2022, compared to $380.2 million for the same period in 2021[5] - Basic net income per common share for the three months ended September 30, 2022, was $0.72, a decrease from $4.02 in the same period of 2021[3] Assets and Liabilities - Total assets as of September 30, 2022, increased to $2,716.0 million from $2,693.6 million as of March 31, 2022[7] - Total liabilities increased to $1,180.9 million as of September 30, 2022, compared to $1,111.0 million as of March 31, 2022[7] - Total shareholders' equity as of September 30, 2022, was $1,582.6 million, compared to $1,535.0 million at March 31, 2022[9] Cash Flow and Investments - Cash and cash equivalents decreased to $464.9 million as of September 30, 2022, down from $915.3 million as of March 31, 2022[7] - Cash used in operating activities for the three months ended September 30, 2022, was $(66.1) million, down from $380.1 million in the same period last year[12] - Cash used in investing activities for the three months ended September 30, 2022, was $(85.2) million, compared to $(25.1) million in the same period last year[12] - Cash used in financing activities for the three months ended September 30, 2022, was $(554.3) million, an increase from $(14.3) million in the same period last year[12] - The ending cash balance as of September 30, 2022, was $464.9 million, compared to $366.6 million at the end of the previous year[12] Shareholder Activities - The company repurchased and cancelled common shares totaling $(543.0) million during the three months ended September 30, 2022[12] - The balance of common shares outstanding as of September 30, 2022, was 103,854,574, with a stated capital value of $961.0 million[84] - The company completed a substantial issuer bid on July 27, 2022, purchasing 41,025,641 common shares at US$9.75 per share for an aggregate amount of US$400 million, representing approximately 28.0% of the issued and outstanding common shares at that time[88] - As of September 30, 2022, the company purchased and cancelled 3,077,572 common shares at a weighted average price of $9.25 (US$7.30) per share, totaling approximately $34.7 million (US$26.8 million)[86] Pension and Tax Expenses - The company reported a pension expense in excess of funding of $49.1 million for the three months ended September 30, 2022[12] - The current tax expense for the six months ended September 30, 2022, was $105.9 million, compared to $25.7 million for the same period in 2021[77] - The defined benefit costs recognized in net income for the six months ended September 30, 2022, totaled $60.6 million, compared to $12.2 million for the same period in 2021[66] Revenue Breakdown - The geographical distribution of total revenue showed sales to customers in Canada at $210.5 million, down from $338.0 million in the same period of 2021, a decrease of 37.6%[26] - Sales to customers in the United States were $380.3 million for the three months ended September 30, 2022, compared to $652.1 million in the same period of 2021, a decline of 41.6%[26] Operational Changes - The company experienced a net change in non-cash operating working capital of $(133.3) million for the three months ended September 30, 2022[12] - The company recognized a past service cost adjustment of $44.6 million related to the defined benefit pension plan during the three months ended September 30, 2022[30] - The company recognized a past service cost adjustment related to other post-employment benefits of $3.8 million, impacting cost of steel revenue and administrative expenses[74] Market and Economic Factors - A 10% increase in the price of hot-rolled coil would result in an approximate $4.8 million decrease in profit or loss, down from $24.9 million in the previous year[114] - The company had a net loss from operations impacted by a $0.01 change in the US dollar relative to the Canadian dollar, which would have affected income by $0.4 million for the three-month period ended September 30, 2022[109] Management and Compensation - The company’s key management personnel received total remuneration of $6.5 million for the three months ended September 30, 2022, compared to $7.8 million in the same period of 2021[136] - For the three and six month periods ended September 30, 2022, the company recorded a share-based payment compensation expense of $0.9 million and $1.8 million, respectively, in administrative and selling expenses[140][142]

Financial Data and Key Metrics Changes - Algoma Steel reported revenue of CAD 934 million for Q1 2023, with adjusted EBITDA of CAD 358 million, reflecting an adjusted EBITDA margin of 38.3% [12][15] - Net income was CAD 301.4 million or CAD 1.49 per share, with cash generated from operating activities amounting to CAD 277 million [15][19] - The company finished the quarter with CAD 1.1 billion in unrestricted cash, maintaining a strong balance sheet despite funding a CAD 400 million substantial issuer bid [15][19] Business Line Data and Key Metrics Changes - Shipments totaled 538,000 tons, down 2% sequentially and down 12% year-over-year, impacted by a scheduled outage at the plate mill [16][19] - Net sales realization averaged CAD 16.32 per ton, up 1% sequentially and up 38% compared to the prior year [16][19] - Steel revenue was CAD 877 million, flat sequentially but up 21% year-over-year [16] Market Data and Key Metrics Changes - The North American steel market pricing has fallen from recent highs, but current pricing remains historically high compared to pre-2021 levels [21][22] - Demand from automotive, construction, and oil and gas sectors remains consistent, with controls on imports still in place [22] Company Strategy and Development Direction - Algoma Steel is focused on transitioning to a leading North American producer of green steel, with ongoing construction of an electric arc furnace project on budget and on schedule for a 2024 startup [12][21] - The company aims to maintain financial discipline while returning capital to shareholders through dividends and share repurchases [20][23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about pricing stability and market fundamentals, despite concerns regarding inflation, currency fluctuations, and global conflicts [21][22] - The company is positioned to benefit from favorable market conditions while executing the EAF project [22] Other Important Information - The company successfully completed a substantial issuer bid, repurchasing approximately 41 million shares, or about 27.9% of its issued shares [14][20] - The plate mill modernization project has faced delays, impacting production and shipments [10][12] Q&A Session Summary Question: Can you talk through what is happening operationally and the delays mentioned? - Management indicated that the start-up of the plate mill has taken longer than planned, affecting operations [28] Question: Can you provide insights on operating assumptions and metrics for the upcoming quarter? - Management noted that the plate mill outage would result in lower production and shipments in the upcoming quarter [30] Question: What is the expected impact of pricing trends on the business? - Management stated that current pricing remains above mid-cycle levels, with expectations of stability [31] Question: How is the decline in shipments trending, and is it primarily on the spot business? - The decline is mostly attributed to the spot business, affected by the plate mill outage [37] Question: What flexibility is there in contracted business? - There is typically a flexibility of plus/minus 10% in contracted business [39] Question: What are the trends in cost, particularly regarding iron ore and natural gas? - Costs are expected to decrease due to a lag in iron ore prices, while natural gas prices are being monitored for potential hedging strategies [42][48] Question: What is the cadence of capital spending for the EAF project? - A significant portion of capital spending is expected in the next two quarters, with key milestones anticipated [57]