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Earnings Call Presentation For the 3 months ended September 30 th , 2026 Published: October 28, 2026
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2 Disclaimer CAUTIONARY STATEMENT REGARDING FORWARD - LOOKING STATEMENTS This presentation contains “forward - looking information” under applicable Canadian securities legislation and “forward - looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 (collectively, “forward looking statements”). Forward - looking statements and information generally can be identified by the use of forward - looking terminology such as “outlook”, “objective”, “may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “should”, “plans”, “budget”, “continue” or similar expressions suggesting future outcomes or events. Forward - looking statements and information include, but are not limited to, statements regarding the operations, business, financial condition, expected financial results, performance, opportunities, strategies, outlook and guidance of Algoma Steel Group Inc. (the “Company” or “Algoma”), Algoma's strategic objectives, its plate mill modernization project, potential purchases under its normal course issuer bid, and Algoma’s transformation to electric arc furnace steelmaking (the “EAF Transformation”), including the expected timing for completion of the EAF Transformation, and full EAF transition and the resulting effects on the Company, expectations regarding future economic conditions, including the price of steel, tariffs and/or trade wars, inflation and interest rates, Algoma’s capitalization and ability to create value for its shareholders. Although we believe that our anticipated future results, performance or achievements expressed or implied by the forward - looking statements and information are based upon reasonable assumptions and expectations, the reader should not place undue reliance on forward - looking statements and information because they involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, which may cause the actual results, performance or achievements of the Company to differ materially from anticipated future results, performance or achievements expressed or implied by such forward - looking statements and information. Readers should consider the other risks and uncertainties set forth in the section entitled “Risk Factors” and “Cautionary Note Regarding Forward - Looking Information” in Algoma’s Annual Information Form for the 12 months ended December 31, 2025, filed by Algoma with applicable Canadian securities regulatory authorities (available under the company’s SEDAR+ profile at www.sedarplus.ca) and with the U.S. Securities and Exchange Commission (the “SEC”), as part of Algoma’s Annual Report on Form 40 - F (available at www.sec.gov), as well as in Algoma’s current reports with the Canadian securities regulatory authorities and the SEC. Given these risks, uncertainties and other factors, readers should not place undue reliance on forward ‐looking statements or information as a prediction of actual results. The forward ‐looking statements and information reflects management’s current expectations and beliefs regarding future events and operating performance and is based on information currently available to management. Although we have attempted to identify important factors that could cause actual results to differ materially from the forward ‐looking statements and information contained herein, there are other factors that could cause results not to be as anticipated, estimated or intended. The forward ‐looking statements and information contained herein is current as of the date hereof and, except as required under applicable law, we do not undertake to update or revise it to reflect new events or circumstances. Certain information in this presentation may be considered as “financial outlook” within the meaning of applicable securities legislation. The purpose of this financial outlook is to provide readers with disclosure regarding the Company’s reasonable expectations as to the anticipated results of its proposed business activities for the periods indicated. Readers are cautioned that the financial outlook may not be appropriate for other purposes. PRESENTATION OF FINANCIAL INFORMATION The Company’s fiscal year runs from January 1 st to December 31 st . The Company and its subsidiaries’ functional currency is the United States dollar (“US dollar” or “US$”). The US dollar is the currency of the primary economic environment in which the Company and subsidiaries operate. The items included in the condensed interim consolidated financial statements are measured using the US dollar. For reporting purposes, the condensed interim consolidated financial statements are presented in millions of Canadian dollars (“C$” or “$”). The assets and liabilities are translated into the reporting currency using exchange rates prevailing at the end of each reporting period. Income and expense items are translated at average exchange rates for the reporting period. Exchange differences arising are recognized in other comprehensive (loss) income and accumulated in equity under the heading ‘Foreign exchange on translation to presentation currency’. The Company’s financial statements have been prepared in accordance with IFRS® Accounting Standards as issued by the International Accounting Standards Board (“IASB”) (“IFRS Accounting Standards”). The financial information presented herein may differ in certain material respects from U.S. generally accepted accounting principles (“U.S. GAAP”). As such, the Company’s financial statements are not comparable to the financial statements of U.S. companies prepared in accordance with U.S. GAAP. This presentation should be read in conjunction with, the Company’s September 30 th , 2026 condensed interim consolidated financial statements and the accompanying notes, and the related management’s discussion & analysis. NON - GAAP MEASURES To supplement our financial statements, we use certain non - GAAP measures to evaluate the performance of Algoma. These terms do not have any standardized meaning prescribed within IFRS Accounting Standards and, therefore, may not be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS Accounting Standards by providing a further understanding of our financial performance from management’s perspective and providing management and investors with additional information for comparison of our operating results across different time periods and to the operating results of other companies. Accordingly, they should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS Accounting Standards. Please refer to the Company’s most recent MD&A for further discussion of these non - GAAP financial measures, including Adjusted EBITDA, and for a reconciliation to comparable IFRS Accounting Standards, including net (loss) income. See also Annex: Adjusted EBITDA Reconciliation on slide 20. EARNINGS CALL PRESENTATION
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Today’s Presentors 3 Agenda Chief Executive Officer Rajat Marwah Chief Financial Officer Michael Moraca 01 Safety Performance 02 Financial Performance 03 Strategic Update 04 Market Update 05 Questions & Answers EARNINGS CALL PRESENTATION
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4 Safety Without Compromise 1 - Continued Focus and Improvement in Lost Time Injury Frequency Rate (LTIFR) Continued Focus and Improvement in Lost Time Injury Frequency Rate (LTIFR) 1 Health & Safety Performance Employee safety remains our top priority and our core value. Ongoing commitment to superior health & safety performance has led to sustained improvement of safety metrics over time. Continued to strengthen our safety culture across the steelworks through ongoing engagement, training, and continuous improvement. Algoma is constantly striving to enhance our Health and Safety Management system, reinforcing standardized processes and governance to drive consistency and operational excellence. 1.00 0.20 0.17 0.14 0.17 0.24 0.10 0.20 0.28 0.00 0.20 0.00 0.25 0.07 0.18 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 YTD
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5 Key Performance Highlights 145K NT Shipments ($14M) Adjusted EBITDA $218M Steel Revenue (5.6%) Adjusted EBITDA Margin Q3 2026 Highlights Q3 2026 – Ended Sept 30, 2026 Shipping Volume was 145K NT in Q3 2026, down 20% from 181K NT in Q2 2026 and down 65% from 419K NT in Q3 2025. Steel Revenue was $218 million in Q3 2026, down 12% from $247 million in Q2 2026 and down 54% from $473 million in Q3 2025. Adjusted EBITDA was ($14) million in Q3 2026, down $28 million from $14 million in Q2 2026 and up $73 million from ($87) million in Q3 2025. Net Loss was ($130) million in Q3 2026, down $34 million from ($96) million in Q2 2026 and up $355 million from ($485) million in Q3 2025. Liquidity was $428 million at the end of Q3 2026 including $152.4 million of cash, availability of $232.5 million under the Revolving Credit Facility, and an additional $43.5 million available under the Large Enterprise Tariff Loan (LETL). Adjusted EBITDA margin Q3 2026 was (5.6%). Source: Company Management's Discussion and Analysis prepared for the 3 months ended September 30 th , 2026 Adjusted EBITDA and Adjusted EBITDA margin are non - GAAP financial measures. See Annex: Adjusted EBITDA Reconciliation on slide 2 0.
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6 Third Quarter Financial Highlights Q3 2026 Quarterly Adjusted EBITDA Margin was (5.6%). Source: Company Management's Discussion and Analysis prepared for the 3 months ended September 30 th , 2026. Adjusted EBITDA, Adjusted EBITDA margin, Net Sales Realization per ton, and Cost of Steel Products Sold are non - GAAP financial m easures. See Annex: Steel Revenue and Cost of Sales on Slide 19, Annex: Adjusted EBITDA Reconciliation on slide 20, and Annex: Selected Quarterly Information on slide 21. Q3 2026 Q3 2025 Change Q2 2026 Change Shipping volume (‘000s tons) 145 419 ↓ - 65% 181 ↓ - 20% Net Sales Realization per ton ($/ton) 1,510 1,129 ↑ 34% 1,361 ↑ 11% Steel Revenue ($ million) 218 473 ↓ - 54% 247 ↓ - 12% Cost of Steel Products Sold ($/ton) 1,492 1,282 ↑ 16% 1,411 ↑ 6% Adjusted EBITDA ($ million) (14) (87) ↑ - 14 ↓ - Net Loss ($ million) (130) (485) ↑ - (96) ↓ -
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7 Plate - First Strategy in Action Steel Revenue by Product (millions) 69% 22% 19% 31% 78% 81% $473 $247 $218 Q3 2025 Q2 2026 Q3 2026 Sheet & Strip Plate Plate Now Leads Steel Revenue Canada’s Only Plate Producer Plate revenue of $175.8 million was second only to Q2 2026's record, serving infrastructure, construction and defence demand. Higher steel prices and the shift to plate drove a 34% increase in net sales realization to $1,510 per ton. Government Support Canada and Ontario announced a $5.22 billion Joint Steel Action Fund to help steel producers diversify production, enter overseas markets, and prioritize domestic steel through Buy Canadian and Buy Ontario public procurement policies. Plate represented 81% of steel revenue in Q3 2026, up from 31% in Q3 2025. Plate shipments rose to 105K NT from 97K NT, while sheet fell to 40K NT from 322K NT as U.S. - bound volumes were cut. Source: Company Management's Discussion and Analysis, condensed interim consolidated financial statements and notes for the 3 an d 9 months ended September 30, 2026.
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8 Overview of Net Working Capital 1 Source Company Notes to the Financial Statements: 1. Please note that the chart shown includes Inventory, Trade Receivables, Payables Net of Prepaids, and Taxes Payable Net o f T axes Receivable Net Working Capital ($M) $815 $849 $897 $830 $820 $785 $868 $730 $717 $777 $742 $613 $589 $374 - $172M - $219M - $256M - $206M - $205M - $241M - $276M - $284M - $318M - $290M - $174M - $177M - $181M - $188M $272M $292M $268M $239M $252M $247M $223M $263M $237M $238M $172M $140M $149M $135M $759M $823M $887M $808M $800M $793M $879M $694M $736M $790M $569M $476M $449M $418M - $45M - $48M - $1M - $10M - $27M - $14M $43M $57M $62M $39M $174M $174M $172M $9M Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Accounts Payable (net of prepaids) Trade Accounts Receivable Inventory Taxes (Payable)/Receivable (net) Structural Step-Down Through the EAF Transition Peak-to-trough inventory swings have compressed and the absolute base has reset as raw-material inventory converts to scrap-based supply Working capital intensity steps down structurally with the EAF The blast furnace required months of iron ore, coal and coke on the ground, including a winter stockpile built ahead of Great Lakes lock closure. Scrap for the EAF is bought year round with a faster conversion cycle. ~$461M of inventory released since Q4 2024 $879M → $418M. Peak-to-trough reflecting conversion to the EAF platform. Income tax recovery collected Approximately $200 M of income tax recovery expected in 2026.
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9 100% Electric Steel Production EARNINGS CALL PRESENTATION A New Era Operating Platform Continuous 24 - hour EAF operations underway Producing quality plate and hot - rolled coil to customer specifications After 125 years as an integrated producer, our blast furnace and coke - making operations have been permanently decommissioned Steel production now fully transitioned to Electric Arc Furnace steelmaking Strategic Position Canada’s only discrete plate producer Positioned to support defence , infrastructure, energy, and industrial supply chains Producing sustainable steel to meet the needs of Canada today. Build a better future. Build with .
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10 Unit Two EAF: First Steel Produced First heat of liquid steel from Unit Two on October 9, 2026, following completion of first arc testing in September. Ramp - up pro gressing as expected. Unit Two expected to contribute to production and shipments in Q4 2026. EARNINGS CALL PRESENTATION
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11 Supporting Canada’s Priorities and Strategic Partnerships Real - World Impact Algoma is actively supporting projects aligned with Canada’s nation - building priorities across shipbuilding, defence , transportation, and infrastructure.
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12 Government Alignment & Buy Canadian Focus Algoma Steel works closely with governments to support policies that strengthen Canada's domestic steel industry, reinforce Buy Canadian objectives, and ensure critical Canadian projects are built with Canadian - made materials. Early Progress Ongoing Partnership Trade Protection Industry Engagement Algoma's voice is being heard, particularly in sectors where domestic supply is critical, including shipbuilding and marine programs, defence and national security projects, and infrastructure and energy systems .
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13 Market Update Source: Market data as of October 28, 2026. Historical Hot Rolled Coil (HRC) and As Rolled Plate Prices (ARP) (US$/ton) Key Market Drivers Macroeconomic Drivers Ongoing Canada US trade negotiations Recent improvement on Canadian coil prices Reduction of allowable quota levels on imported steel in Canada and the Buy Canada program Canadian government nation building projects Counter tariffs on US steel imports into Canada took effect Sept 8, 2026 Trade Policy and Tariffs Global Supply Chain Disruptions Economic Indicators – Canada Automotive Industry Dynamics Inflation Central Bank Policy Geopolitical Tensions and Oil Supply Disruptions $- $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 1/4/2023 7/22/2023 2/6/2024 8/23/2024 3/10/2025 9/25/2025 4/12/2026 10/28/2026 US$/NT ARP HRC
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14 Committed to our Path Forward We are positioning Algoma for a new era in steel, focused on making critical investments that enhance long - term performance and create value for our shareholders. STRATEGIC DIRECTION OPERATIONAL & CAPITAL IMPROVEMENTS Algoma has developed and executed numerous operational and capital projects that add long term value to the business. EAF APPROVAL Received Board approval to begin construction of Electric Arc Furnace. Nov 2021 PMM PHASE 1 Enhancing quality and expanding grade range on Canada’s only discrete plate mill. 2022 LSP POWER PLANT Installation of new turbines to support power generation for EAF project. Jun 2023 PMM PHASE 2 Final installation of key elements substantially complete. 2024 EAF UNIT ONE Operating on a 24 - hour schedule. 2025 EAF UNIT TWO First heat of liquid steel produced and processed into hot - rolled coil. Oct 2026 OPERATIONAL PIVOT Accelerate EAF transformation with a plate – first strategy focusing primarily on the Canadian market. 2026 FINANCIAL DISCIPLINE Algoma has focused on streamlining its balance sheet, finding effective sources of capital to fund its strategic initiatives and providing long - term value to stakeholders. RETURN TO PUBLIC MARKETS Including Equity injection of $306M USD. Oct 2021 SUBSTANTIAL ISSUER BID Algoma buys back approximately 1/3 of outstanding shares. Aug 2022 NORMAL COURSE ISSUER BID Algoma renewed its NCIB for share repurchases. 2023/24 ABL RENEWAL Amend and extend Algoma’s now upsized US$300M asset - based loan. May 2023 DEBT OFFERING Opportunistically raised $350M USD to strengthen balance sheet and mitigate risk. Apr 2024 ABL UPSIZE Algoma amended and upsized its asset - based loan from US$300M to US$375M. 2025 LIQUIDITY FUNDING SUPPORT Algoma closed on its credit agreement for $500M of financing from the Governments of Canada and Ontario. 2025 STRATEGIC PARTNERSHIPS Algoma continues to develop partnerships focused on de - risking the organization and creating long - term value for stakeholders. ATM METALS JV with Triple M Metals for committed supply of scrap and metallic units. Ongoing DANIELI Technology partner for OEM Equipment for Algoma’s Transformation to Electric Arc Steelmaking. 2021 – 2025 TRANSPOD Partnering with TransPod and Supreme Steel to build Canada’s first ultra - high - speed TransPod line between Calgary and Edmonton. Ongoing SEASPAN Signed MoU with Seaspan and Stigterstaal to explore strategic partnership o n expanding shipbuilding in Canada. Ongoing DAVIE Davie and Algoma celebrated the rolling of Canadian steel plate for the Polar Max Icebreaker. 2026 ROSHEL Formed Roshel Algoma Defence (RADS), a joint venture to establish a Canadian Centre of Excellence for Ballistic Steel Production. 2026 MECP Enhancement of the emissions performance program with an increase maximum available funding to $108 M. July 2026 ESG FOCUS Algoma is committed to initiatives geared at driving performance, reducing risk and developing a culture of organizational excellence that improve our ESG performance. FOCUS ON SAFETY Continued to strengthen our safety culture across the steelworks through ongoing engagement, training, and continuous improvement. Ongoing STRONG BOARD GOVERNANCE An active, well - informed board with diverse perspectives and experience. Ongoing ENTERPRISE RISK MANAGEMENT Develop a culture of risk management. Nov 2019 ESG POSITION STATEMENT Published Algoma’s approach to ESG. Apr 2023 INTEGRATED BUSINESS PLANNING Planning process to enhance operational efficiency and improve ship - on - time performance. Ongoing SUSTAINABILITY REPORT Published its third annual Sustainability Report. 2026 EMISSION REDUCTION EAF project expects to reduce emissions 70% and improve GHG performance once fully transitioned.
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15 Priorities for the Balance of 2026 and Beyond Completing the transition and positioning the business for improved profitability 01 Ramp EAF steelmaking EAF Unit 2 is part of the regular production schedule. Focus now turns to ramping the combined EAF platform. 02 Focus on cost improvement Driving towards a structurally lower cost base with improved conversion costs, positioning our EAF platform for cost advantages across market cycles . 03 Scale the plate franchise Grow discrete plate volumes into infrastructure, construction and defence demand as Canada’s only plate producer. 04 Disciplined cash management Maintain capital spending well below peak EAF construction levels and preserve available liquidity. 05 Advance strategic initiatives Progress Roshel Algoma Defence and sovereign ballistic steel capability, continue Buy Canadian engagement, and explore entry into the structural beam market and further plate mill upgrades. 06 Navigate the trade environment Continue to manage Section 232 exposure and support trade measures that address unfairly priced imports. Source: Company Management's Discussion and Analysis, condensed interim consolidated financial statements and news release fo r t he 3 and 9 months ended September 30, 2026.
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16 Appendices
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17 17 Algoma’s 2025 Sustainability Report EARNINGS CALL PRESENTATION Algoma Steel is proud to share its 2025 Sustainability Report covering the twelve months ended December 31, 2025. The report outlines our sustainability strategy, highlights progress made over the past year, and details how we are addressing sustainability risks while advancing opportunities that support a more sustainable future. Now available on our website at www.algoma.com.
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18 For more updates follow our social channels: Social Updates
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19 Annex: Steel Revenue and Cost of Sales Source: Company Management's Discussion and Analysis prepared for the 3 and 9 months ended September 30 th , 2026.
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20 Annex: Adjusted EBITDA Reconciliation Source: Company Management's Discussion and Analysis prepared for the 3 and 9 months ended September 30 th , 2026.
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21 Annex: Selected Quarterly Information Source: Company Management's Discussion and Analysis prepared for the 3 and 9 months ended September 30 th , 2026.
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22 Glossary Term Definition Basic Oxygen Furnace (BOF) Vessel used to convert liquid hot metal from a blast furnace into steel. Blast Furnace (BF) Metallurgical furnace combining fuel, ores and flux to smelt iron ore to produce pig iron, which is fed downstream into a BOF. Cogeneration Also known as combined heat and power (CHP), a cogeneration plant uses gas generated from the steelmaking process to create electricity. Coke Fuel for a Blast Furnace that is made by heating coal in the absence of air. Cold Rolled Sheet Hot rolled steel that has been further processed to increase its strength and strength - to - weight ratio, providing better overall surface finish. Continuous Casting Process whereby molten metal is solidified into a "semi - finished" billet, bloom, or slab for subsequent rolling in the finishing mills. CRU Index Price index which is widely used throughout the steel industry. Prepared by CRU, a leading steel data provider ( cruindices.com ). Electric Arc Furnace (EAF) Method for producing steel with primary inputs of scrap steel and electricity. EAFs form new steel by heat charging material with an electric arc. Hard Coking Coal (HCC) A category of metallurgical coal that is converted to coke and used as fuel for the blast furnace in an integrated steel mill. Hot Briquetted Iron (HBI) Compacted form of direct reduced iron (DRI) that serves as a supplement for pig iron and scrap in electric arc furnace steel mills. Hot Metal Blast furnace iron ore that is charged to the BOF in hot liquid form.
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23 Term Definition Hot Rolled Sheet Carbon steel product commonly used for applications in which dimensional tolerances and surface finish quality is not critical (e.g. automotive accessories, stampings). Iron Ore Pellets Pellets are small balls of iron ore used in the production of steel that are agglomerated from fines. Limestone Also referred to as flux, limestone is an essential input in a blast furnace. Ladle Metallurgy Furnace (LMF) Holding furnace for hot metal coming out of the BOF or EAF, increases capacity of melt shop and allows for improvements to steel grade. Metallics Iron ore or similar products that are used to produce raw steel. NOx Nitrous oxide (NOx) is a greenhouse gas that traps heat in the atmosphere. Net Sales Realization (NSR) The average selling price of steel excluding costs of freight. Pig Iron Intermediate solid input made by smelting iron ore with a high - carbon fuel and reductant, such as coke, with flux for use as a feedstock in the BOF. Plate Includes steel sheet metal that is 5mm or thicker used for construction or structural purposes due to its low maintenance versatility (e.g. shipping containers, roofing, heavy equipment). Prime Scrap High quality, clean scrap metal that tends to trade at a premium to lower quality shredded scrap. Slab Thick semi - finished (intermediate) steel that is further converted into hot rolled sheet or plate. Service Center Wholesalers that may further process steel purchased from manufacturer (e.g. cutting or forming). SOx Sulfur oxide (SOx) is an air pollutant that has negative health consequences.
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