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Letter from the President, Summer 2018

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Bristol Bay’s most vibrant season is here—long days full of light, waters swarming with fish, subsistence traditions and activities alive and well on riverbanks and in villages across our region.

As we look ahead to all that summer brings, we reflect on updates for our shareholder community.

Our fiscal year came to a close at the end of March, marking our best net income result in company history, and our 20th consecutive annual increase in the shareholder dividend. When we look at our impact as an Alaska Native Corporation, offering steadily and consistently increasing dividends is a true indicator of success for us; along with our shareholder programs and benefits, those dividends tell our leadership team that we are doing right by our people as we take on the new fiscal year.

Financially, FY18 was a great year with revenues of $1.7 billion exceeding both budget and prior year. Similarly, net income exceeded both budget and prior year. Earnings from investments, natural resources, and income taxes exceeded both budget and prior year by significant amounts. Earnings from operations remain negatively impacted by weakness in our Industrial Services business line and specifically from

one of our operations on the North Slope whose primary work areas are to support exploration activities. It is very rare for all of our business lines to perform in unison, positively or negatively. Our strategy of prudent diversification helps to ensure that when one of our business areas is weak, the others are still contributing to strong profits and cash flow. Strong cash flow is what allows BBNC to pay dividends and to provide our shareholder programs. The FY18 audited financial statements and Management Discussion and Analysis will be distributed to shareholders this fall.

As you’ll see in the pages ahead, a group of middle school students from four school districts in our region recently spent two weeks attending a science and engineering camp at the University of Alaska Anchorage. Their time on campus not only gave them a preview of college life, but offered real, practical applications of Science, Technology, Engineering, and Math (STEM)— hopefully sparking an interest in future studies and careers in those fields. Thank you to our team and partners who made this ANSEP Middle School Academy possible, and congratulations to the students who participated in it. We hope your experience inspires you now and into the future.

To our shareholders here in Bristol Bay and those of you across Alaska, the Lower 48 and the around the world, thank you as always for your support of BBNC. On behalf of the leadership team, I wish you a fun and safe summer. Here’s to a great season ahead.

– Jason Metrokin