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to

grow

to

sustain

To

inspire

as a company focused on energy in all its

our commitment to core values that

excellence and unity throughout

forms, nurturing success in our workforce

nourish human potential and guide

the organization, so that our

and communities, reaching out to partners

each of us in making the wisest

energy radiates and expands

in government, industry and beyond.

energy choices and investments.

with new possibility.


Our potential is powerful. What makes us ALLETE? All of us, working together

As we embark on this new frontier, I call on each one of us to

at ALLETE, Minnesota Power, BNI Coal and Superior

consider ways to foster growth and inspire success. How will you

Water, Light & Power, contribute to our combined strength.

cultivate boundless new energy while holding true to our core

Each of us brings boundless new energy that defines

values? Because when you realize your capabilities, you generate

our shared success and drives our quest for excellence.

fuel to help us all prosper—as both the people who comprise

It’s expressed in the places and ways in which we work.

ALLETE, and the many customers and communities we serve.

It’s nurtured by the creativity, dedication and flexibility apparent in our different roles and experiences. Our diversity fosters both reliability and sustainability, just like the products and services we provide. These are transformative times. Our Company history began as an energy company harnessing hydropower. Today, we’re refocusing on our core strengths—energy in all its forms—to create and deliver a sustainable energy future. We are poised to grow. And the potential is powerful.

A l a n R. H o d n i k P r es i d e n t a n d C h i e f E x ec u t i v e O f f i c e r


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OUR SHARED PURPOSE I ALLETE will be a

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OUR MISSION

leader in clean, safe, efficient and affordable energy

Minnesota Power I Together we safely and reliably

products and services that fuel modern day necessities

create and deliver vital energy to enhance security,

and enrich quality of life. We are committed to

comfort and quality of life.

providing exceptional customer value and superior

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shareholder returns. Through wise investments and

SWL&P I Together we safely, reliably, and competitively

strong partnerships, we will grow while answering

procure and deliver water, natural gas, and electric

the call to transform the nation’s energy landscape.

energy to enhance our customers’ security, comfort and quality of life.

OUR SHARED VALUES I ALLETE and its

employees expect and embrace lifelong learning,

BNI Coal I Together we are committed to safely producing

creativity and diversity of perspectives, personal

a low-cost fuel that supports the region’s economy while

accountability and continuous improvement in all

protecting the quality of the state’s land, air and water.

that we do. Our culture nourishes excellence through our shared values, which are lived every day.


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C H A RT I N G A CO U R S E TO S U CC ES S

Today, ALLETE consists of several closely connected and successful energy businesses, including Minnesota Power, Superior Water, Light & Power, BNI Coal and an investment in the American Transmission Company. Our businesses have successfully charted a course through good and challenging economic times, while energy markets and policies have rapidly evolved. While we recognize our accomplishments, it is clear that we must continue to evolve and transition as we look towards the future. ALLETE will be an investment of choice by pursuing earnings growth in renewable energy, transmission and other energy centric business opportunities. Our current businesses will be financially healthy, and provide reliable, cost competitive and environmentally compliant service to our customers. At its core, ALLETE is an energy company. Transforming... Our Energy World.

Major changes in energy supply, delivery and use are clearly underway

Facing Uncertainty... Head On. Uncertainty has become the new “certainty”

in business. The “Great Recession of 2008-2009” itself was preceded by a decade of economic swings. Technological advances, financial crises, world events and political developments make it virtually impossible to predict the future with any certainty. In this context, ALLETE and its employees must be more enterprising, nimble and diverse. We must understand our customers and actively seek the most cost competitive and creative ways to meet their changing energy needs. For Minnesota Power and SWLP, this means remaining cost competitive, from both a retail and wholesale perspective. For BNI Coal, this also means aggressively maintaining its low-cost attributes while seeking additional markets. For ALLETE, this requires a more diverse business and customer base to strengthen and grow earnings. This energy centric diversity may be realized through regulated or non-regulated business acquisition or growth. In an uncertain environment, ALLETE must also aggressively manage its capital and continually seek operating efficiencies across its businesses, as well as develop flexibility within each business to either take advantage of or weather inevitable changes in markets, our customer expectations and the economy.

worldwide and ALLETE must adapt to and capitalize on these changes

Leading... Into the Future . Over the next five years, ALLETE expects

to thrive and grow. Everything from technological advancements to

to replace more than half of its 1,300 employees. These new team members will come

changes in societal preferences to increased environmental concerns

from a rapidly changing pool of talent. As this talent transition unfolds, ALLETE

are driving deep and fundamental shifts in energy policies and energy

will also renew its business, technical and leadership competencies, creating

markets. Indeed, while these changes will require that we evolve our

tremendous opportunities for employees to grow and develop. We will create

core businesses to remain competitive, they are also sure to provide

a learning environment that provides opportunities to broaden experiences,

exciting new opportunities for investment.

take on new roles and increase responsibilities.

For example, environmental trends require that Minnesota Power

Onward. A successful transition for ALLETE in this new world requires world-class

reshape its generation asset mix to be more flexible, efficient and

leadership, strategic and astute asset investment, management and operations, as well as

diverse. For ALLETE, environmental and societal changes create

creative new energy business development. In doing these things, we will continue to forge

opportunity, and we will look to capitalize on renewable, transmission

a bright future for our employees, our communities, our shareholders and customers alike.

or other evolving energy centric markets for growth opportunities.


30 WEST SUPERIOR STREET D U LU T H , M I N N E S O TA 5 5 8 0 2 - 2 0 9 3

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Through wise investments and strong partnerships, we will grow while answering the call to transform the nation’s energy landscape.

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ALLETE will be a leader in clean, safe, efficient and affordable energy products and services that fuel modern day necessities and enrich quality of life. We are committed to providing exceptional customer value and superior shareholder returns.

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OUR SHARED PURPOSEVALUES

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ALLETE STRATEGY

What’s essential for ALLETE to succeed? Grow profitably Diversify earnings Compete effectively Develop talent


Boundless New Energy