Annual Meeting Shareholder Questions

Aleut’s investment strategy has evolved, and what was previously referred to as the Permanent Fund is now the Aleut Strategic Reserve Fund. Shareholders can find information about Aleut’s investment portfolio in the Investment Income section on page 27 of the Annual Report and under marketable securities on the balance sheet on page 38. The combined portfolio value at fiscal year-end was $52.3 million, which has doubled in the last four years. The Strategic Reserve Fund holds available capital until it is needed for future business opportunities.

In 2021, Skoey and the Board reviewed Aleut’s financial and organizational health and identified changes needed to strengthen the Corporation and position it for long-term growth. Beginning in 2022, Aleut strengthened financial reporting, improved operations, including dissolving underperforming subsidiaries, optimized its portfolio, enhanced shareholder programs and benefits, and increased its focus on efficiency and accountability. These changes helped establish a stronger foundation for sustainable growth and long-term shareholder opportunities.

The reorganization was separate from the postponement of the 2022 Annual Meeting. That meeting was postponed because the auditors needed additional time to complete the audit. Since then, Aleut has had clean and on-time audits.

Aleut is not invested in the Pebble Mine.

Aleut recruits shareholders and descendants both in-Region and elsewhere, while matching each position with the qualifications and work environment needed for success. Not every role is suited for remote work, but when opportunities allow, Aleut prioritizes creating employment opportunities for shareholders and descendants. The King Cove project, with an emphasis on more than 50% local hire, is one example. As Aleut grows, our goal is to place shareholders, descendants, and other employees in roles where they and The Corporation can succeed.

Aleut continues to build education and career pathways for shareholders and descendants. Our 2026 Summer Internship Program included six interns, and recruitment for 2027 internships will begin in early spring, with positions posted on Aleut’s website when applications open.

• Ulakaia Center: Supports trade training, workforce credentials, professional certifications, and career coaching.
• Training Partnerships: Includes AVTEC partnerships in fisheries with Trident and fueling mechanics with the Denali Commission.
• Future Pathways: Aleut is exploring aviation opportunities connected to the Aleut Hangar and continues to connect with schools in-Region so programs align with workforce needs.
• Hospitality: Aleut’s Wildbirch investment includes a 10% shareholder-hire commitment, creating an additional pathway for shareholders interested in hospitality careers.

Aleut wants shareholder distributions and Elder benefits to grow in a way Aleut can sustain over the long term. Record revenue does not equal record EBITDA or profit, and earnings are an important factor in distribution decisions. Aleut also reinvests in its businesses to support continued growth.

Annual and Elder distributions totaled approximately $4.7 million, while shareholder programs and benefits totaled approximately $9.5 million, nearly 30% of Aleut’s earnings. The $1,000 Elder benefit and Annual Distribution are provided through the Aleut Settlement Trust, making those distributions tax-free to shareholders, with Aleut absorbing the tax burden. Aleut also considers the potential impact on Elders living on fixed incomes and advocates for policy changes at the federal level.

Compensation for Aleut’s highest-paid executives, including the President & CEO, and Board compensation is disclosed in the Proxy Statement on page 22, which is mailed with the Annual Report to voting shareholders and is available through the Shareholder Portal.

Aleut uses industry benchmarks, comparison data, national and local trends, and performance standards to structure competitive compensation. The Board sets the President & CEO’s compensation and works with independent, third-party data and consultants. Board compensation is benchmarked against peer Alaska Native corporations. The goal is to attract and retain strong leadership while keeping compensation intentional, competitive, and tied to company performance.

Aleut serves shareholders wherever they live. The Board voted to hold the Annual Meeting in the Pacific Northwest every three years to meet the needs of a growing shareholder community in that area. About 28% of shareholders live in the Pacific Northwest, and 42% live outside Alaska. Aleut’s first Annual Meeting there in 2023 drew nearly 300 attendees, and this year we had over 400 shareholders RSVP.

Aleut has evaluated hosting the Annual Meeting in-Region. Lodging, travel, cost, and venue requirements would make an event of this size difficult for a regional community to host without creating unintended strain. Aleut continues to visit communities in-Region during the summer to share information and connect directly with shareholders.

Velocity 33 sets ambitious long-term goals for Aleut, and investment decisions are evaluated through a disciplined, balanced approach centered on Aleut’s mission to provide dividends and opportunities for shareholders. Aleut considers strategic alignment, expected returns, capital needs, operating costs, risk, timing, diversification, and long-term value.

Aleut is investing in the Region, while recognizing that regional projects can require additional infrastructure, transportation, utilities, workforce, permitting, and outside funding, which can mean longer lead times and returns. Aleut focuses on areas where it has expertise and capacity and supports tribal, village, municipal, and regional partners where they are best positioned to lead.

Unalaska is strategically important to our Region, and we are committed to staying closely engaged with community leadership to understand its priorities and opportunities. That includes ongoing collaboration with Mayor Vince Tutiakoff Sr. and advocating for Regional priorities with Alaska’s congressional delegation in Washington, D.C.

As Aleut considers where it can best support critical transportation infrastructure, collaboration remains central to that evaluation. We want to strengthen how we communicate Unalaska’s strategic importance, especially given the recent investment, and move forward with community partners with a unified regional voice.

Aleut is actively investing in the Region. Current examples include:

• Adak: $115 million in federal infrastructure investment supporting transportation, fuel storage, and energy reliability; $1.5 million invested by Aleut in contamination cleanup efforts; and grant funding paired with Aleut investment in Pier 5.
• Cold Bay: A $1.25 million Aleut investment to open a fixed-base operation, including a new hangar, pilot lounge, and lodging.
• King Cove: Aleut Federal is performing road work with a strong emphasis on local hire and workforce development, with more than 50% of the workforce local.
• Regional Economy: Aleut is advocating for fishing families, partnering on responsible in-Region development, and supporting entrepreneurship. While Aleut Marketplace is not returning this year, Aleut is partnering with Southwest Alaska Municipal Conference on Upstart Alpha.

Outmigration is tied to interconnected challenges including transportation, jobs, food security, housing, energy costs, education, and healthcare. Aleut cannot solve every issue alone; we are taking a proactive, solutions-oriented approach and focusing resources where the Corporation can have the greatest impact.

That includes partnering with regional leaders, supporting business and workforce development, advocating for regional priorities, and diversifying industries in the Region through aviation, tourism, mining, and other opportunities. These efforts are grounded in Aleut’s mission to provide dividends and economic opportunity for shareholders and its commitment to the Region.

Aleut has long supported the Road to King Cove, a community priority designed to improve year-round connectivity between King Cove and Cold Bay and provide safer, more reliable access to emergency medical care. King Cove Corporation and the Agdaagux̂ Tribe are leading conversations around the project, while Aleut remains active in advocacy and in opposing legal challenges to the road.

Aleut Federal is performing work on 2.8 miles of the road, with an emphasis on local hire and workforce development. The project supports Aleut’s commitment to healthy, resilient communities, self-determination, quality of life, and opportunities for future generations to live and thrive in the Aleut Region.

Under Aleut Board of Directors Policy, the Board does not take a position on political issues without a majority vote of the full Board. Board members and employees may participate in political activities or make contributions as private individuals, but those actions are personal and not connected to Aleut. Aleut does not use corporate funds for political contributions or endorsements.

Aleut is also distinct from the ANCSA Regional Association (ARA). Skoey serves as Vice Chair of the ARA Board alongside the presidents and CEOs of the other Alaska Native regional corporations. ARA supports broader Alaska Native corporation business and policy interests, including lobbying and political endorsements, independently from Aleut’s Board.

Aleut is not moving to a board-selected board. It’s encouraging to see nine candidates on the ballot this year, and Aleut is committed to a fair, transparent shareholder election process in which shareholders retain full voting rights and decide who represents them on the Board. The Aleut Board of Directors’ Board Evolution does not change the voting process, the weight of a shareholder’s vote, or shareholders’ ability to vote for eligible candidates.

The changes are designed to provide greater transparency and information while making Board candidacy more accessible. Aleut removed the previous 10-signature requirement, provides candidate visibility through Aleut-owned communications, and, beginning in 2027, will invite candidates to participate in a standardized interview and review process with the Board of Directors. All eligible candidates will continue to appear in proxy materials and on the ballot, and shareholders will decide the outcome.

We appreciate the suggestion and will keep it in mind as we develop future Annual Reports. In the meantime, all of Aleut’s past and current Board members are available on our website.

This is a great idea. Aleut will explore opportunities with the Ulakaia Center and other partners to offer virtual cultural programming that gives shareholders and descendants more ways to connect with Aleut culture, wherever they live.

Aleut is committed to creating opportunities for shareholders and descendants to learn, grow, and stay connected to their culture and community. Through the Ulakaia Center, we support education, vocational training, career development, and cultural programs. Aleut also creates opportunities through jobs across our family of companies and builds long-term shareholder value through distributions and continued investment in the Corporation.

Together, these efforts help the next generation build skills, pursue their goals, and participate in Aleut’s future