Mercer International Inc. · NASDAQ:MERC
Mercer International — BMO Timber & Wood Products Summit 2022
17 slides from Mercer International's conference presentation, May 10, 2022
Slide 1: Exceptional people creating bioproducts for a more sustainable world
Exceptional people creating bioproducts for a more sustainable world BMO Timber & Wood Products Summit May 10, 2022 David Ure Senior Vice President, CFO & Secretary 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: Our 4-element strategy for adding value
The world's tolerance of pollution and carbon emissions is rapidly diminishing. Sustainably sourced biomaterials, including wood fiber and derivatives are part of the solution. However, supply is not boundless, and only the most efficient and innovative producers and products will be capable of meet
Slide 4: Products
Products • NBSK and NBHK from sustainably managed forests are used in the production of tissue, recyclable graphic paper, and packaging alternatives to plastics | One of the largest global producers of market NBSK with deep Pulp expertise and a market reputation as a reliable, efficient and high-qua
Slide 5: Building a Platform for Growth
Building a Platform for Growth 1994: Acquisition of Rosenthal mill Consolidated Revenue ($ millions) (1)(2) 2,000 1999: Rebuild of Rosenthal mill Bio-extractives/other 2004: Stendal greenfield construction 1,800 Wood products 2005: Acquisition of Celgar mill 1,600 Green electricity 2007: Celgar “Pro
Slide 6: World-class Assets and Innovation
World-class Assets and Innovation ▪ One of the largest producers of market NBSK in the world ▪ Operating among the most modern NBSK mills in the world ▪ Efficient distribution channels to major pulp consuming markets of ▪ Low cost, energy self-sufficient, net exporters of green Asia, Europe, and Nor
Slide 7: World-class Assets and Innovation
World-class Assets and Innovation Top 20 Softwood Sawmills (MMfbm) (1)(2) Ilim Wismar Canfor Plateau Mercer Timber Products Canfor Houston West Fraser Quesnel North America • Unique flexibility Mercer Friesau(3) Europe to produce metric Binderholz Kösching Other and US dimension Offner Wolfberg grad
Slide 8: World-class Assets and Innovation: Mercer Mass Timber
World-class Assets and Innovation Design Precision: High-precision manufacturing for specific Mercer Mass Timber end-use applications with little to no job site waste – MMT can manufacture more than 140,000 cubic metres of CLT per year State-of-the-art cross-laminated timber (CLT) – more than 1/4 of
Slide 9: Optimization Through Innovation
Optimization Through Innovation Logistics Construction Continuous 1 Innovation 2 Expertise 3 Improvement ▪ Design and construction ▪ Forest waste material ▪ Greenfield and brownfield of dedicated trains and recovery pulp mills truck fleet for shipping ▪ Pulp and lumber wood yield wood and end-produc
Slide 10: Financial Performance
Financial Performance Annual Operating EBITDA (1)(2) $600 1,350 $1,500 • Operating EBITDA (1)(2) Operating EBITDA NBSK Prices 1,260 1,170 was historically $500 1,030 $1,250 NBSK Price ($/ADMT) influenced by global 910 933 910 ($ millions) $400 810 820 $1,000 798 NBSK pricing, however: $300 $750 551
Slide 11: Prudent, Agile Capital Structure
Prudent, Agile Capital Structure Liquidity is managed to the global economic conditions: Debt composition is optimized when opportunistic: 2016-2018: Tighter liquidity during stronger economic Weighted average maturity of senior debt is 2028 conditions and expansion period for Mercer Weighted
Slide 12: Balanced Capital Allocation
Balanced Capital Allocation Capital allocation is balanced and consistent with the strategy: ▪ Maintenance of Business (1) capital expenditures to maintain modern, efficient and reliable mills. ▪ Growing the Company through acquisitions and high-return capital expenditures. ▪ Commitment to returning
Slide 13: Environmental Responsibility
Environmental Responsibility Modern assets and innovation makes our processes sustainable. A continuous improvement culture keeps us advancing. Signatory to Science-based Target Over the past 5 years, AOX intensity Climate change scenario analysis 85% of energy comes from Initiative (SBTi) with appr
Slide 14: Social Responsibility
Social Responsibility Embracing social responsibility means consciously upholding our commitments. That’s the Mercer way. Partnered with Business for Social Signatory to Canadian Council of High-potential global candidates Global DE&I council workgroups Responsibility (BSR) to develop Aboriginal Bus
Slide 15: Current Market Conditions
Current Market Conditions Pulp: Near-Term Pulp: Mid-Term No material new near-term NBSK capacity Steady demand growth, principally from the increasing middle class of emerging economies, will support demand for graphics papers, packaging, hygiene, and specialty paper products New hardwood capacity f
Slide 16: Investment Highlights
Investment Highlights Management committed to Compelling growth in spaces where we have core competencies Carbon-forward Products Prudent and agile balance sheet discipline, commitment to the dividend Sustainable, Commitment to sustainability in Long-term our products, operations, and communities Gr
Slide 17: 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 17
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