Mercer International Inc. · NASDAQ:MERC
Mercer International — Q1 2023 Earnings Presentation
9 slides from Mercer International's earnings presentation, May 5, 2023
Slide 1: Q1 2023 Earnings
Transforming biomass into bioproducts for a more sustainable world Q1 2023 Earnings Juan Carlos Bueno; President & CEO David Ure; SVP, CFO & Secretary May 5, 2023 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: Q1 2023 Financial and Operating Highlights
Q1 2023 Financial and Operating Highlights Weaker prices + lingering effects of inflation on costs Inflation, rising interest ▪ Q1 EBITDA $28M rates and economic ▪ Adjusted EBITDA $43M after $15M non-cash hardwood uncertainty negatively inventory write down impacted input costs and sales prices Pulp
Slide 4: Q1 2023 Financial and Operating Highlights (cont.)
Q1 2023 Financial and Operating Highlights (cont.) European lumber market steady; US declined European lumber markets ▪ European pricing increased, demand steady vs. Q4 saw some positive ▪ Economic uncertainty, high interest rates continued to movement in Q1 2023 put pressure on US lumber prices Rec
Slide 5: Q1 2023 Financial and Operating Highlights (cont.)
Q1 2023 Financial and Operating Highlights (cont.) Electricity generation and sales are a hedge ▪ Electricity sales increased by +15 GWh vs. Q4 2023 target CAPEX ▪ German pricing ~$130/MWh as price cap came into effect end of reduced Q4 ▪ Cap scheduled to be removed in June; today, extension seems u
Slide 6: Q1 2023 Overview
Q1 2023 Overview Lower prices, higher costs negatively impacted Lower pricing, higher earnings average costs a challenge ▪ Prices for lumber, pulp down during the quarter ▪ Average pulp fibre prices higher Growth through capital investments and acquisitions Mills operated smoothly, ▪ Friesau seeing
Slide 7: Q1 2023 Overview (cont.)
Q1 2023 Overview (cont.) Pulp: upward pressure expected later in year Softwood prices expected ▪ Softwood - supply/demand fundamentals expected to firm to firm late in Q2 prices in late Q2 ▪ Hardwood - extended headwinds despite expected increased Growing gap between demand as market absorbs new sup
Slide 8: Looking Forward
Looking Forward Investment in high-return projects 2023 projects focus on ▪ Reduced capex by delaying discretionary projects expanding alternatives ▪ Retaining high-value projects including completion of which displace carbon- Celgar woodroom and Rosenthal lignin plant intensive products Expanding M
Slide 9: 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 9