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CONOMIC IMPACT OF ALASKA NATIVE REGIONAL CORPORATIONSOur commitment to our shareholders’ financial,educational, social, and cultural needs is long-term.Since Alaska Native Corporations are all headquartered inAlaska, but do business around the world, ANCSA Corporationprofits are quickly brought back to Alaska for furtherinvestment – Alaska benefits from the economic multiplier ofprofits imported to Alaska. ANCSA Corporations have a verymaterial impact on the State of Alaska’s economy.IMPACT OF ANCSA CORPORATIONS 14.8 billiionTop 49ers All JobsTop 49ers AK AK Native CorporationsTop 49ersGross RevenueAK RegionalCorporationsWe invest in the future of shareholders by awarding abroad range of scholarships helping them attain theeducation and training necessary to be successful intoday’s modern economy. In 2016, we awarded over3,500 scholarships at a total investment of 7.7 million.And we support our communities’ social and culturalneeds through our contributions to Native non-profitcorporations who deliver these services. In 2016,ANCSA Regional Corporations contributed 39.7 millionto Native non-profits.From an historical view, Alaska has traditionally been a resourceextraction state. Generally, when a resource is extracted, taxrevenues and other on-the-ground spending benefit the state,but most profits are quickly exported from Alaska to homeoffices or to other investments outside of Alaska.AK Native Corporations8ANCSA Regional Corporations take the responsibility todeliver real economic, educational, social, and culturalvalue to our shareholders very seriously. In 2016, thecompanies paid out 160.5 million in dividends toshareholders. Since a vast majority of our shareholderslive in Alaska, this spending represents a significantcash distribution within the Alaska economy. In additionto the dividends we pay to shareholders, in 2016 wepaid out 234.8 million in payroll just to Alaska Nativeemployees. When we combine dividends paid out withour Alaska Native payroll, this means Alaska Nativepeople were able to spend nearly 400 million in theAlaska economy in 2016.IMPACT ON THE ALASKA ECONOMYAK RegionalCorporationsIMPACT ON SHAREHOLDERS & DESCENDANTSOn average for each of the last five years, ANCSA RegionalCorporations have contributed 170.9 million to dividends, 7.0 million to scholarships, and 23.0 million to Native nonprofit corporations.AK Native CorporationsFor over 45 years, ANCSA Regional Corporationshave been quietly building their businesses, and in theprocess, diversifying the Alaska economy. We inviteyou to review the following section in this report wheresummaries of the businesses owned and operated byeach ANCSA Regional Corporation are presented.These outline a diverse range of industries, companies,and regions of the world. It is this diversification thathas allowed ANCSA Regional Corporations to growand thrive. Through these operating investments, ourcorporations play a vital role in the Alaska economy andan important role in many other U.S. states.AK RegionalCorporationsE

In the most recent Alaska Business Monthly (ABM) rankingof the top Alaskan companies, the “Top 49ers,” all twelveANCSA Regional Corporations were on the list as theyhave been every year covered in this report. RegionalCorporations earned 8.4 billion (as reported to theABM) representing 57% of the 14.8 billion brought inby 49 companies on the list. While gross revenue is asometimes-criticized measure, it has now been reportedto ABM consistently for decades and is a good measure ofeconomic activity.Nine ANCSA Village Corporations also made the Top49ers, reporting 2.6 billion in revenue. When combinedwith Regional Corporation revenue, ANCs made up74.5%, three quarters of all the revenue earned by all thecompanies on the list. Considering all Top 49er-ANCsaccount for only 42.9% of the companies on the list, theyhave a significant impact on job generation in Alaska.To put these revenue figures in perspective, the AlaskaGross Domestic Product (GDP) in 2016 was 50.7 billion.Based on the 8.4 billion in revenue reported to theABM Top 49ers report, ANCSA Regional Corporationsaccounted for 16.7% of the Alaska GDP. When the nineANCSA Village Corporations on the Top 49er list areincluded, the ANCs on the ABM list account for over onefifth (21.8%) of the Alaska GDP.From a jobs perspective, Alaska Native Corporations onthe list also accounted for 68.8% of Alaska-based jobsand 86% of all the jobs created by the 49 companies onthe list. Taken separately, ANCSA Regional Corporationsaccounted for 61.9% of the Alaska-based jobs and62.3% of all jobs created. The twelve ANCSA RegionalCorporations make up just 24.5% of the companies on thelist of 49.Considering only the Alaska jobs created by ANCSARegional Corporations, we paid out over 1.0 billion inpayroll into the Alaska economy in 2016.ANCSA Corporations also invest in Alaska. Today, ANCsoften represent a market for successful Alaska companies– capital financing that previously was not present in theAlaska economy. From a real estate perspective, many ofAlaska’s most significant real estate developments haveoccurred through Native Corporation investment. ANCSARegional Corporations have invested nearly 1 billion inAlaska real estate development, another very key indicatorof our commitment to Alaska.IMPACT ON THE U.S. ECONOMYANCSA Regional Corporations also benefit the U.S.economy by creating jobs and business activity in manyother states and territories. In fact, when consideringthe next nine states in which our companies operate,ANCSA Regional Corporations account for 3 billion inrevenues, employing 19,312 non-Alaska-based employees,with an annual payroll of over 1 billion. While Alaska’sRegional Native Corporations play a vital role in Alaska’seconomy, they play an important role in the economy ofmany other states as well. Please refer to page 7 to view amore in-depth analysis of the role Alaska Regional NativeCorporations play throughout the U.S. economy.9

WHAT EVERYONE SHOULD KNOW ABOUT ANCSA CORPORATIONSThe land is part of who we are. Most ANCSAshareholders see gaining fee simple title to 44million acres, 12% of Alaska, as the most importantaccomplishment of ANCSA. Therefore, unlessdeveloped, ANCSA Corporations do not carrythe value of the land on their company’s balancesheets. However, this also significantly limits theborrowing power of ANCSA Corporations. If eachacre was valued at a low 1,000, the total value ofthe land would be roughly worth 44 billion. For anycorporation to intentionally reduce its assets by billionsis a very strong commitment to protecting the realaccomplishment of ANCSA, resolving bonafide AlaskaNative land claims.10Stock in ANCSA Corporations cannot be traded, andownership in an ANCSA Corporation cannot be boughtor sold. When ANCSA was passed in 1971, shareswere intentionally restricted to Alaska Native people ofone-quarter Alaska Native blood quantum and alive onDecember 18, 1971. On a preset review of ANCSA in1991, stockholders voted to continue the prohibitionon trading ANCSA Corporations shares. While thekey concern was to prevent control of the companiesfrom being eroded away from Alaska Native people,the rule has had another important consequence –ANCSA Corporations can take a long-term view to theirbusinesses as opposed to the quarterly or three to fiveyear view many publicly-traded companies are forcedto take.Alaska Native Corporations have been in business for 46years, but have not always been the success story they aretoday. ANCSA was an entirely new concept. It took time forAlaska Native people to adapt to a new corporate model,and the new law had to be fine-tuned as the companiesmoved forward. Two programs were implemented to helpANCs become sustainable enterprises. Between 1986 and1988, ANCs were allowed to sell company net operatinglosses (as all companies had been allowed to do priorTOTAL REVENUES(in billions)Total Revenue10(in billions)8(a) Contract Revenue(in 5.5%24.9%24.5%20122013201420152016

WHO OWNS ALASKA1%to 1986) to enable profitable companies to reduce taxliabilities as a way to provide about 450 million in new cashinjections into the ANCs.12 %In the 1990s, minority federal contracting was opened toANCs under modified rules, called 8(a), which recognizedthe unique nature of its shareholders. Alaska NativeCorporations have been successful in this endeavor. As wasintended by the 8(a) program, many Native Corporationowned companies have graduated from the 8(a) program tobecome vital and competitive companies in their own right.In 2012, 8(a) revenues were 3.1 billion and by 2016, thisfigure had been reduced to 2.0 billion, without significantlyimpacting total revenue, representing a 36% reduction in8(a) revenues in the last five years.40%28%19%PrivateNo casinos here. ANCSA Regional Corporations don’t ownIndian casinos. ANCs have owned a resort complex in LasVegas that included gaming, but this was done under thesame rules and regulations all companies would be requiredto meet.Native CorporationsState11Other FederalNational ConservationSystemsBUILDING SHAREHOLDER CAPACITY160%120%Dividends Paid to Shareholders as percentof Net Income80%Scholarship Funds Awarded as percentof Net IncomeDonations to Native Non-Profit Effortsas percent of Net IncomeAverage Capacity Payments to Shareholdersas percent of Net IncomeAverage Dividends Paid to Shareholdersas percent of Net Income40%020122013201420152016

WEATHERING ALASKA’S RECESSION“Halfway through 2017, it is evident that Anchorage’seconomy, as measured by total employment, continues toretreat from its 2015 peak. The latest available estimatesplace Anchorage employment down about three percentover the past two years, with the Professional and BusinessServices, Oil & Gas, Construction, and State Governmentsectors continuing to bear the brunt of local job losses.”(Source: Anchorage Economic Development Corporation3-Year Outlook Report, 2017) Similar to Texas andLouisiana, Alaska’s economy is often counter-cyclical to theU.S. economy due to its dependence on the oil and gasindustry—when oil prices are high, oil states do well; whenoil prices are low, energy-dependent states and industriesdo well.12An additional negative force acting on ANCSA Corporationrevenues is a significantly scaling back in Alaska Statespending, particularly capital spending, due to a drasticdrop in oil tax revenues to the State of Alaska. Since theState of Alaska has well over 50.0 billion in financialreserves, these reductions in state spending are due moreto a political standoff on how to resolve Alaska’s fiscalchallenges going forward than due to an inability to pay forgovernment spending.In particular, downturns in the mining (oil and gas) sector ofthe economy often lead to a reduction in oil and gas jobs,professional and business services, and construction jobs.ANCSA Regional Corporations are invested significantlyin providing these capabilities to the oil and gas industry.Since many ANCSA Regional Corporations provideconstruction and professional services to state capitalprojects, this has also contributed to the 2016 reductionin total revenues. As a result, our 2016 revenues taken inthe aggregate across all twelve Regional Corporations aredown 5.6% from 2015, and down 8.3% over the five yearsof data presented in this report.

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F2011 - 2015 Financial AnalysisTotal RevenueINANCIAL RESULTS8(a) Contract Revenue20112012 8,455,926,848 3,020,641,783 Total revenues for 2016 were 8.2 billion, down 5.6%35.7%from the previous year, off 8.3% from five years earlier,Total Net Income250,811,171and representing 95.7% of the five-year averageforProfit Margin total revenue earned by the twelve ANCSA Regional3.0%Corporations.8(a) Revenue as per cent of Total Revenue8(a) revenues for 2016 were 2.0 billion7.6% from off 6,108,481,052 2015,representing81.2%ofthefive-yearaverage.Return on Assets4.1%However, these reductions in revenue are not due toTotal Asset Turnover1.4the downturn in the Alaska economy from low oil prices.Rather, this reduction of 36% in 8(a) revenues over thelastEquityfive years represents two key factors.ANCSATotal Shareholder First,3,613,403,930 holder Equity as per cent of Total Assets59.2%8(a) programs as was intended. ANCs have become viableReturn on Equity6.9%companies competing successfully against other wellTotal Debt Ratioestablished government contractors. A second factor40.9%is aDebt to Equity Ratio69.1%conscious effort by many ANCs to reduce their portfoliosEquity Multiplieron these revenues due to the politically volatile nature1.7ofthis business space.Total Assets14 Total 7 (i) Distributions Paidalso took a significant hit in 2016.162,597,825TheTotal DividendsNetPaid incometo Shareholdersaggregate net income for the twelve ANCSA Regional64.8%Corporations was 107.3 million off 55.4% from 2015,representing just 49.8% of the five-year average. Thissignificantreduction was due in large partTotal ScholarshipFunds Awarded from mersamongtheScholarships as a per cent of Net Income2.6%twelve Regional Corporations heavily invested in the oil andgas industry.Total Dividends as per cent of Net Income201320148,972,864,816 8,498,897,183 8,575,078,0893,139,378,700 2,614,078,317 2,443,185,6206,426,656,335 6,175,478,080 6,680,563,275five-year average of 2.5%. It is important to remember35.0%30.8%28.5%that ANCSA Regional Corporations hold as their highest270,879,859 benefits153,695,975 304,953,947obligationto assureto shareholdersare as stable3.0%In 2016, ANCSA Regional1.8%as possible.Corporations3.6%paidout 193.6% of net income in dividends, scholarships, andcontributions to non-profit organizations.Shareholderfive4.2% equity has continued2.5% to grow over the4.6%years of this report. In 2016, shareholder equity was 4.11.41.41.3billion, 102.1% of the five-year average and representinga 5.7% increase since 2012. ANCSA Regional Corporationmanagementto balance long-termgrowth in3,845,123,091 works hard3,790,890,072 4,116,887,086equity .4%61.6%While management recognizes that large dividends,7.0%4.1%7.4%and continued investment in scholarships and Native40.2%38.4%non-profitsslows corporation38.6%growth, shareholders67.1%62.9%62.3%have expresseda strong needfor benefits in the shortterm. Many1.7shareholders live in 1.6rural Alaska where cash1.6dividends are vital to support subsistence hunting activities 93,587,000or other cash needs like utility payments. And investment in scholarships165,862,349 and Native204,997,354155,779,801non-profits help preparethe133.4%51.1%ANCSA 61.2%work force of the future.7(i) Distributions Provision 7(i) of the Alaska Native ClaimsAct is a unique7,656,962agreement amongall6,365,679ANCSA Settlement7,652,528 Corporations2.8% to share in the earnings5.0% from natural resource2.1%development. 7(i) revenues measure the amount of incomestemming from natural resource development that isDonations to Native non profit efforts 18,692,168 redistributed22,871,882 among the 20,436,642 Corporations.16,281,172other RegionalAssets have continued to grow. In 2016, total assets wereDonations to Native non profit efforts as per cent ofAnd, since Regional Corporations hold the subsurface 7.0 billion, a 4.8% increase from the previous year and aNet Income7.5%13.3%rights to 8.4%all Village Corporationland, 50% of these 5.3%7(i)9.5% increase across the five years of this report. ionson assets, due to significant reductions in net income,each region.related7(i)Donations to non-Native Distributions1,491,683 to the 1,946,658declinedCharities57.6% from the previous year and was1,904,229only 46.4% within1,837,829provisionin2016were 67.7million.Thesedistributionsof the Givingfive-yearaverage.non-Native Charitableas percent of Netoften represent a very important source of revenue forIncome0.8%our0.7%1.0%0.6%Profit margin for 2016 was 1.3%, off significantly frommany of the ANCSA Village Corporations.Percent of Net Income Paid Out in Dividends,Scholarships and Non-Profit Contributions75.7%73.2%152.6%59.2%

Percentage Changefrom 20142015Averages 2011 2015 8,714,490,8661.6% 8,643,451,560 2,176,928,741-10.9% 2,678,842,6322015 as percentageof AveragePercentage Changeover 5 years100.8%3.1%81.3%-27.9%Return to ANCSAShareholders-12.3%and Descendants is 31.0%a unique25.0%measure of ANCSA Regional Corporations that considers percentage240,795,534-21.0% goes244,227,297theof net income eachyear thatdirectly2.8%-22.3% scholarships, and2.8%into funding dividendsto shareholders,contributions to Native non-profit corporations. These returnsarein both real dollar termspercentage measured6,716,964,3250.5% and as a6,421,628,613of net income. On average for the last five years, ANCSA3.6%3.8%Regional Corporationshave paid-21.5%out 110.9% of net income1.1%to shareholders1.3and descendants inthe form of direct 1.4dividends, scholarships and contributions to Native nonprofitcorporations, which deliver -0.6%the bulk of socialservices in 4,090,718,4033,891,404,516their regions. In 2016, 207.8 million, 193.6% of net income,60.9%-1.2%60.6%went to these three categories, roughly 268% of the five5.9%-20.5%6.3%year average. Arguably, no other corporation, or groupof corporationsworld, returns as large39.1%anywhere in the 1.9%39.4%apercentage64.2%of net income directlybacktoitsshareholders3.1%65.0%as do ANCSA Regional Corporations.TOTALEQUITY AND ASSETS80.6% SHAREHOLDER-30.1%6541.61.2%1.7 131,770,00040.8% 112,678,5000 167,344,9277.4% ,533-3.90%6.5%21.8%1,571,833-19.3%0.7%79.6% -4.0%97.8%73 (in billions)98.6%-6.8%Shareholder 34.6%80.7%97.9%5.2% Shareholder Equity1520152016

ANCSA REGIONAL CORPORATIONS 2012–2016 FINANCIAL ANALYSIS (in thousands)2012–2016 Financial Analysis201220142015Total Revenue 8,972,865 8,498,897 8,575,078 8,714,4918(a) Contract Revenue 3,139,379 2,614,078 2,443,186 2,176,9298(a) Revenue as Percent of Total RevenueTotal Net Income35.0% Profit MarginTotal Assets270,88030.8% 3.0% 6,426,656153,69628.5% 1.8% 6,175,478304,95425% 3.6% 6,680,563240,7962.8% 6,716,964Return on Assets4.2%2.5%4.6%3.6%Total Asset Turnover1.401.381.281.30Total Shareholder Equity Shareholder Equity as Percent of Total Assets1620133,845,123 3,790,890 4,116,887 4,090,71859.8%61.4%61.6%60.9%Return on Equity7.0%4.1%7.4%5.9%Total Debt Ratio40.2%38.6%38.4%39.1%Debt to Equity Ratio67.1%62.9%62.3%64.2%1.671.631.621.64Equity MultiplierTotal 7(i) Distributions PaidTotal Dividends Paid to Shareholders Total Dividends as Percent of Net IncomeTotal Scholarship Funds Awarded Non-Native Charitable Giving as Percent of Net IncomePercent of Net Income Paid Out in Dividends,Scholarships, and Non-Profit Contributions7,653 22,872 1,838 131,770 155,780 167,3457,65751.1% 5.0% 8.4% 204,99793,587133.4%2.8%Donations to Native Non-Profit Efforts as Percent ofNet IncomeDonations to Non-Native Charities 61.2%Scholarships as a Percent of Net IncomeDonations to Native Non-Profit Efforts165,862 20,4371,492 2.1% 13.3% 6,36669.5%16,2812.4% 5.3% 1,9475,83415,6536.5% 1,5720.7%1.0%0.6%0.7%72.5%151.7%58.5%78.4%

Percentage Changefrom 20152016Averages 2012–20162016 as Percentage ofAveragePercentage ChangeOver 5 Years 8,224,808-5.6% 8,597,22895.7%-8.3% 2,010,565-7.6% 9%7,040,0614.8%6,607,945106.5%9.5%1.5%-57.6%3

Arctic Slope Regional Corporation 21 Bering Straits Native Corporation 22 Bristol Bay Native Corporation 23 Calista Corporation 24 Chugach Alaska Corporation 25 . Our approach to our annual Economic Impact Report has always been to report as a group of twelve companies united in purpo