Mercer International Inc. · NASDAQ:MERC
Mercer International — Q2 2022 Earnings Presentation
10 slides from Mercer International's earnings presentation, Jul 29, 2022
Slide 1: Quarter 2, 2022 Earnings & HIT acquisition
Exceptional people creating bioproducts for a more sustainable world Quarter 2, 2022 Earnings & HIT acquisition Juan Carlos Bueno; President & CEO David Ure; SVP, CFO & Secretary July 29, 2022 1
Slide 2: Forward-looking Statements
Forward-looking Statements The Private Securities Litigation Reform Act of 1995 provides a “safe For more information regarding harbor” for forward-looking statements. these risks and uncertainties, review Mercer’s filings with the Certain information included in this presentation contains statement
Slide 3: Q2, 2022 Financial and operating highlights
Q2, 2022 Financial and operating highlights Steady, solid EBITDA Constructive end product pricing, • $145M in Q2 rising USD are offsetting • A new wood products record at $49M inflationary pressure Planned maintenance • Most ambitious maintenance quarter of the year now Cashflows supporting ambitiou
Slide 4: Market conditions; Executing the strategy
Market conditions; Executing the strategy Market conditions • Pulp: Tepid underlying demand in China offset by solid Execution of the capex plan demand in Western economies and disruptions in supply of NBSK; unplanned outages and shipping restrictions Stendal pulpmill returns to • despite falling ho
Slide 5: HIT acquisition
HIT acquisition ▪ integrated sawmill and value-add pallet production facility in Torgau, Germany ▪ Key products include lumber and wood pallets, biofuels, and energy ▪ €270 million ($~275.4 million) purchase price, inclusive of forecasted net working capital of ~€43 million (~$43.9 million) ▪ Transa
Slide 6: Product Portfolio
Product Portfolio Sawn Timber Products: 410 MMfbm capacity Expanding Solid Wood Business 1,200 Solid Wood Capacity (MMfbm) Pallets: The largest 960 producer of EPAL pallets in 900 the world; 17 million +410 pallets annually 600 Bio-Electricity: 15 MW of 300 green electricity 550 550 - Pellets & Briq
Slide 7: Strategic Highlights
Strategic Highlights Mercer Stendal Grows solid wood capacity by ~75% to 960 MMfbm and electricity generation capacity by ~15 MW Diversify Mercer's product mix with the HIT Torgau introduction of pallets and biofuels Mercer Timber Products HIT Dahlen Attractive entry point into pallet Mercer product
Slide 8: Financial Highlights
Financial Highlights • Consideration of €270 million ($~275.4 million), inclusive of forecasted net working capital of ~€43 million (~$43.9 million) • To be funded using our existing cash on hand and/or our revolving credit facilities • HIT generated Net Income of €31 million and Adjusted EBITDA of
Slide 9: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA Adjusted EBITDA is defined as net income, plus taxes, interest, depreciation, amortization and non-recurring items. We believe certain investors and financial analysts use these measures to evaluate financial performance. Adjusted EBITDA is also included to help fac
Slide 10: Contact Information
Contact Mercer International Inc. Information P: +1 (604) 684 1099 info@mercerint.com Suite 1120, 700 West Pender St Vancouver, B.C. Canada www.mercerint.com V6C 1G8 10