Mercer International Inc. · NASDAQ:MERC
Mercer International — Q2 2023 Earnings Presentation
10 slides from Mercer International's earnings presentation, Aug 4, 2023
Slide 1: Mercer International Inc. Q2 2023 Earnings
1 Mercer International Inc. Transforming biomass into bioproducts for a more sustainable world Q2 2023 Earnings August 4, 2023 Juan Carlos Bueno – President & CEO Richard Short – CFO, Executive VP & 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 these harbor” for forward-looking statements. risks and uncertainties, review Mercer’s filings with the United States Securities and Exchange Commission. Certain informatio
Slide 3: Q2 2023 Financial and Operating Highlights
Q2 2023 Financial and Operating Highlights EBITDA negatively impacted by inventory writedown Weak economic growth ▪ Adjusted EBITDA -$17M after accounting for $51M non-cash negatively impacted inventory impairment pulp prices Weaker pulp prices due to economic uncertainty ▪ Decline of NBSK, NBHK pri
Slide 4: Q2 2023 Financial and Operating Highlights (cont.)
Q2 2023 Financial and Operating Highlights (cont.) Lumber prices saw modest upward momentum Lumber prices pushed ▪ Lumber prices improved modestly in both the U.S. and up by steady demand in European markets both the U.S and Europe ▪ Lumber production, sales volumes negatively impacted by minor prod
Slide 5: Q2 2023 Financial and Operating Highlights (cont.)
Q2 2023 Financial and Operating Highlights (cont.) Cash and liquidity, capital allocation Cash usage in quarter ▪ Increased cash usage in Q2 vs. Q1 largely attributable to primarily for strategic acquisition of Structurlam assets for ~$82M acquisition of CLT and ▪ Capital spending of ~$39M glulam as
Slide 6: Q2 2023 Overview
Q2 2023 Overview Compounding effects pushed down pulp prices Pulp prices declined due ▪ High producer inventories to slower than expected ▪ Weaker than expected economic recovery in China economic recovery in ▪ European demand still burdened by Ukraine War China, large producer ▪ Market continuing t
Slide 7: Q2 2023 Overview (cont.)
Q2 2023 Overview (cont.) Celgar curtailment due to BC port strike Disruptions from BC port ▪ 30-day temporary curtailment in August strike created logistical ▪ Inventory backlog, logistical issues expected to be cleared challenges for Celgar by end of curtailment mill Proactive measures amid uncerta
Slide 8: Q2 2023 Overview (cont.)
Q2 2023 Overview (cont.) Lumber seeing some upward movement Flexibility of sawmill ▪ Partial recovery of lumber prices, despite high interest operations allows for rate environment strategic alignment of ▪ Supply/demand fundamentals to put positive pressure lumber product mix and on mid-term custome
Slide 9: Looking Forward
Looking Forward Downward pressure on pulpwood prices, in all markets Fibre costs expected to ▪ Foresee modest decline in fibre costs for Q3; slightly decline over H2 counteracted by increased demand in the energy market 2023 projects focus on Advancing bioproducts: Lignin extraction pilot plant expa
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