Mercer International Inc. · NASDAQ:MERC
Mercer International — Investor Presentation (September 2004)
15 slides from Mercer International's investor presentation, Sep 30, 2004
Slide 1: Mercer International Inc.
Mercer International Inc. (NASDAQ: MERCS) (TSE: MRLU)
Slide 2: Safe Harbour Statement
Safe Harbour Statement The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. Certain information included in this presentation contains statements that are forward-looking, such as statements relating to results of operations and financial cond
Slide 3: Mercer International Overview
Mercer International Overview «> US Reporting Public Company (NASDAQ: MERCS TSE: MRI.U) * Strategic Focus on High Quality Northern Bleached Softwood Kraft Pulp (NBSK) “862,000 Tonnes of Capacity Annually* “ Two Mills Ideally Located in Fiber Rich Germany » Germany: the Largest Import Country in Euro
Slide 4: Corporate History and Facilities
Corporaite History and Facilities 4yp00 : Start-up of tendal Stendal 63.6% owned) pulp mil 562,000 tpy NBSK pulp - Greenfield construction completed 4893: Acquired 4398-2000: Divested Dresden Papier 4non-core paper (6 mulls} i Rosenthal 310,000 tpy NBSK pulp - Low cost, high quality -Proftable histo
Slide 5: Rosenthal Mill — An Unparalleled Success
Rosenthal Mill — An Unparalleled Success M In 1999, Conversion of Rosenthal Mill to Kraft Pulp Production Created Unique Asset First Kraft Pulp Facility in Germany in Modern Times Strong Cost Position » Lowest Quartile From a Global Delivered Cost Perspective to Europe 310,000 tpy NBSK pulp .. » Low
Slide 6: Rosenthal Mill Startup 1999
Rosenthal Mill Startup 1999 <- Fastest Startup Cumustive Capacity Utilisation 100% 06 eons 7096 ee ee Musi totus 0% Finish Pulp Millin 18805 ane ou — = —Firnish Pulp Milin 18805 Indonesian Pup Mili ane ‘oan P 1086 Finish Pulp Milin 1870s 6 a Rosenta 428 4 5 6 7 8 9 0 Hn 2 MONTHS FROM START-UP Shue
Slide 7: Conversion of Rosenthal Created Superior Environmental Performance
Gonversion of Rosenthal Created Superior Environmental Performance _ From Sulphite to Kraft Technology $0, Busine inkTp w 120 00000 10 280000 en000 0 20000 i zen000 zon000 ‘0 en000 0000 20 140000 0 120000 1551 199 194 195 1996 1957 1558 2000 20m 2002 CoD ford —Foducton bral
Slide 8: Stendal Mill — Successful Startup
Stendal Mill — Successful Startup “ €1 billion “Greenfield” Project Completed in July 2004 > Startup with Targeted Production of 80% by the end of 2004 « Projected to be Lowest Quartile From a Global Delivered Cost Perspective (est. €293/tonne*) » Projected Cost Lower than Rosenthal Based on Economi
Slide 9: Location Provides Competitive Advantage
Location Provides Competitive Advantage ~Rosenthal
Slide 10: Sales By Region 2003
S By Region 2003 14.0% b ecermany 16.4% wey CEuropean Union GEastem Europe and Other 25.5% Two-way Integrated Logistics Provides Cost Savings M 10
Slide 11: Strong Fiber Supply
Strong Fiber Supply High Quality Fiber Supply Rosenthal - Spruce Stendal — Pine Largest Consumer of Wood Chips in Germany Typically 1 Year Contracts Numerous Suppliers Low Historical Volatility in Wood Chip Pricing to Pulp Prices
Slide 12: Low Cost NBSK Pulp Producer
Low Gost NBSK Pulp Producer €1.00=$1.23 emt Cost Level 1904 | Distribution, Franiturt 23MM etl lm Manfacturing Costs 1.8 MM mam Rosenthal e319 Til sl Se eee nie mae geaey | ata aeae 2 ‘Source lasiko Poyry ‘orl vine ANN, hole ace pepNESKreKag Gonertooapue Asghar phish invio pata 12
Slide 13: EU Accession Countries
EU Accession Countries “ Consumption Growth within these Countries should be Significant *» According to Jaakko Péyry: > 2000-2015 Demand Growth in Eastern Europe Almost Twice Global Average |" » Consumption Exceeds Production in Eastern European Accession Countries > Per Capita Consumption is Curre
Slide 14: Financial Viability
Financial Viabtty World Glass Assets €1.00 $1.23 as ABSK exclunling coarse grades delivered'to Wester a ABSK exclunling coarse grades delivered'to Wester anes Door oat i By wi Stendar @ nes 100 100 aa yl ad FA : -s ie © a Soma vast Canaia, East im F — ee :
Slide 15: Searchable text section of graphics
Searchable text section of graphics shown above [ LOG O] Mercer International Inc. (NASDAQ: MERCS) (TSE: MRI.U) M E R C E R Saf e Harbour Statement The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. Certain information included in this prese
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