Mercer International Inc. · NASDAQ:MERC
Mercer International — Non-Deal Roadshow (May 2025)
31 slides from Mercer International's roadshow presentation, May 2025
Slide 1: New York Institutional Investor Meetings
Transforming biomass into bioproducts for a more sustainable world New York Institutional Investor Meetings May 2025
Slide 2: Forward-Looking Statements
Forward-Looking Statements 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
Slide 3: Transforming biomass into bioproducts
Our Vision Our Strategic Pillars Operational Synergistic Circular Excellence Diversification Economy Transforming biomass into Maintaining industry Synergistic diversification Meaningful contributions leading core operations of operations to the circular economy bioproducts Our Values for a more + B
Slide 4: Investment Highlights
Investment Highlights Synergistic operational clusters, integrating across the forest product value chain to optimize fiber utilization Strategic, purposeful diversification to reduce earnings cyclicality Company wide focus on aggressive cost reduction and strong mill reliability History of proactiv
Slide 5: Global Megatrends Driving Long-Term Demand
Global Megatrends Driving Long-Term Demand Increasing Population Growth Climate Change Urbanization + Growing + Higher living + Increasing + Housing + Changing + Fossil fuel + Circular + Resource middle class standards consumption demographics regulations replacement economy scarcity 348 million 15%
Slide 6: Purposeful Diversification
Maximizing Pulp Value Through Pallets Pellets Purposeful RESOURCE EFFICIENCY Diversification + FOSSIL FUEL ALTERNATIVES Lumber Green Energy Mass Timber Bioproducts / Materials Sustainably Managed Forests www.mercerint.com 6
Slide 7: Sustained Growth and Diversification
Sustained Growth and Diversification 2,095,000 ADMT(1) (pulp) 398 MW (bioenergy) 960 mmfbm (lumber) 160,000 255,000 m3 (mass timber) 550 57 MR = Mercer Rosenthal MS = Mercer Stendal 140,000 MC = Mercer Celgar MTP = Mercer Timber Products MPR = Mercer Peace River 17,000,000 17,000,000 units (pallets)
Slide 8: Evolving Sales Mix
Evolving Sales Mix Diversified Geographies and Products(1)… …Continued Commitment to Sustained Growth > Pulp Segment(2) Consolidated Revenue (US$mm) Bio-Extractives / Other 11% $1,997 China Green Electricity 35% 23% Other > Product Mix Specialty Paper Germany Solid Wood North America 5% 30% Pulp 24%
Slide 9: Geographic Clusters Maximize Synergies and Value
Leveraging Stendal Geographic Torgau Sawmill Clusters Friesau Torgau Rosenthal Unplaned lumber for processing to Sideboards for pallets Maximize Pulp mills Stendal & Rosenthal German Geographic Synergies Cluster and Value Sawmill Friesau www.mercerint.com 9
Slide 10: Strategic Focus
Strategic Focus Targeting $100 million in cost savings by 2026 compared to our 2024 baseline, achieved through two key avenues Maximizing the Operating Rates of Our Mills Direct Cost Savings • Increasing operating margins to provide more funds to • Aggressive cost reduction programs across all asset
Slide 11: Pulp Segment
Pulp Segment GERMANY Mercer Rosenthal Mercer Stendal • Rosenthal am Rennsteig • Arneburg • 360,000 tonnes NBSK • 740,000 tonnes NBSK • 57 MW green energy • 148 MW green energy CANADA Mercer Celgar Mercer Peace River • Castlegar • Peace River • 520,000 tonnes NBSK • 475,000 tonnes NBSK / NBHK • 100 M
Slide 12: Continued Optimization
Continued Optimization Mercer’s Pulp Capacity has Increased Over 10-Fold Since 1994 Total Capacity (000s tonnes) Decrease resulting from divestiture of Cariboo Pulp & Paper interest NBSK 1,620,000 tonnes + 2,000K tonnes NBSK / NBHK (1994 – 2024) 475,000 tonnes(1) 2,300 2,200 2,095 Current production
Slide 13: Solid Wood Segment
GERMANY Solid Wood Mercer Torgau Mercer Timber Products (Friesau) • Torgau Segment • Saalburg-Ebersdorf • 410,000 mfbm sawn lumber, • 550,000 mfbm sawn lumber • 17 million pallets • 13 MW green energy • 80,000 tonnes briquettes • 150,000 tonnes pellets • 15 MW green energy USA Mercer Spokane Mercer
Slide 14: Continued Expansion to Capture Synergies
Continued Expansion to Capture Synergies Mercer’s two sawmills are amongst the largest globally…. …And is the Largest EPAL Pallet Producer Total Capacity (mmfbm) Total capacity of >1,060 mmfbm 600 500 400 Capacity Additions(1) 17 million Annual pallet production capacity 300 Current 200 Capacity 100
Slide 15: Mercer Mass Timber
Grounded in Wood Science. Driven by Innovation. Mercer Mass Timber Speed of Assembly Biophilic Properties Mass timber construction is ~30% Wooden environments can improve faster than traditional steel and productivity, learning, and overall concrete construction wellbeing Sustainability Impact Desig
Slide 16: Largest Mass Timber Panel Manufacturer by Installed Capacity
Structurecraft, 3% Vaagen, 3% Largest Mass Timber Freres, 4% Panel Manufacturer by Kalesnikoff, 5% Installed Capacity Element 5, 5% in North America Mercer Mass Timber, 30% SilvaSpan, 6% 3 North American facilities with wide geographic reach 2 State-of-the-art facilities in Northwest and Southwest U
Slide 17: Unprecedented Growth
Mass Timber Market Overview Unprecedented Growth North American Forecasted Consumption (000s m 3) (1) 711 Mass Timber is on the Rise 602 From 2014 to 2024, the floor area of US Projects started or 185 completed has grown from 0.2 million ft2 to 7.4 million ft2, with 75.3 484 156 million ft2 currentl
Slide 18: Bioenergy and Biomaterials
Green Energy Performance BioFilaments Bioenergy and Biomaterials • Over 900 GWh of surplus electricity • Mercer’s joint venture with Resolute from biomass every year, enough to Forest Products to develop commercial power ~80,500 homes without fossil applications for cellulose filaments, in fuels. un
Slide 19: Mercer Lignin Centre
Mercer Lignin Centre Overview Industries End Uses Phenolic Compounds for Epoxy Resins Epoxy resins are key in applications such as adhesives, Mercer Lignin Centre coatings, and composite matrices used in automotive, • Mercer Rosenthal Chemicals aerospace, and construction sectors • 250 tonnes high q
Slide 20: Balanced Capital Allocation
Balanced Capital Allocation Capital Allocation is Balanced and Consistent with Mercer’s Strategy Cumulative Capital Allocation, 2019-2024 (US$mm) $386.8 Growing the Company through acquisitions and high-return Leveraging strategic capital expenditures debt to propel growth amid economic shifts $914.
Slide 21: Shifting Strategy in Line with Economic Conditions
Shifting Strategy in Line with Economic Conditions Past Present Strategy: Inorganic growth through acquisitions, Seeking to reduce debt / deleverage to lower weighted average coupon rate on debt: expansion of product offerings • $100 million company-wide cost savings by the end of 2026 • Strong mill
Slide 22: ESG-Linked Loan
Sustainability Framework ESG-Linked Loan Mercer’s Sustainalytics ESG Risk Rating has Improved by 4.0 Points since 2023 • Mercer has a €370 million revolving credit facility with a five-year term, with borrowing costs linked to ESG performance. Mercer is Among the Lowest Risk Within its Industry Grou
Slide 23: Entering a New Frontier – Integrated Biorefineries
Entering a New Frontier – Integrated Biorefineries Operational pilot plant & R&D driven through strategic financial partnerships exploring commercialization Green Carbon Products Synthetic Aviation Fuel Syngas Lignin • Advanced to the Front-End • Enabling greener air • A versatile gaseous fuel • A s
Slide 24: Managing Tariff Related Uncertainties
Managing Tariff Related Uncertainties Considerations Moving Forward • Pulp and mass timber imports from Canada and lumber imports from Germany are not currently subject to tariffs, but under a Section 232 review As it Stands Today • Wood chips imported from the U.S. poses potential counter-tariff ri
Slide 25: Current and Forward-Looking Market Conditions
Current and Forward-Looking Market Conditions • Lack of material greenfield NBSK capacity additions coupled with closures / curtailments (e.g. Metsa Fibre, Canfor Prince George, Paper Excellence Ashdown, Stora Enso) is maintaining favorable supply-demand fundamentals. Softwood Pulp • Steady demand c
Slide 26: Canadian NBSK Supply Overview
Canadian NBSK Supply Overview Substantial Decrease in Total Canadian NBSK Capacity Over the Last Few Years Total Canadian NBSK Capacity (000s tonnes) Notable Capacity Changes (> 100,000 tonnes) 6,000 Change Effective Company Mill Location (000s tonnes) Date 5,750 1 West Fraser Hinton Hinton, AB (100
Slide 27: Financial Performance
Financial Performance Cyclical Earnings through the Cycle, Strongly Influenced by Commodity Pricing (Pulp, Lumber) EBITDA (1) (US$mm) Pulp(4) Solid Wood Products (5) $537 $479 $244 $210 $227 $193 $17 2019 2020 2021 2022 2023 2024 Q1 2025 LTM Net Income: ($10) ($17) $171 $247 ($242) ($85) ($91) Histo
Slide 28: With a history of growth, Mercer is well-positioned for future growth
With a history of growth, and sustainability and synergistic diversification ingrained in its strategy, Mercer is well-positioned to drive its future growth engines. Strong history of Global Synergies from Economies of Innovation Strong ESG positive margin megatrends such continuous scale across pul
Slide 29: Contact Us
CONTACT US info@mercerint.com Suite 1120, 700 W Pender St, Vancouver BC V6C 1G8 +1 (604) 684-1099 www.mercerint.com
Slide 30: Reconciling Net Income (Loss) to Operating EBITDA
Reconciling Net Income (Loss) to Operating EBITDA Consolidated (US$mm)(1)(2)(3) 2019 2020 2021 2022 2023 2024 Q1 2025 LTM Net Income (Loss) ($9.6) ($17.2) $171.0 $247.0 ($242.1) ($85.1) ($90.8) Add: Income Tax Provision (Recovery) $19.2 $6.1 $89.6 $98.3 ($27.8) ($1.8) $5.3 Add: Interest Expense $75.
Slide 31: Reconciling Net Income (Loss) to Operating EBITDA
Reconciling Net Income (Loss) to Operating EBITDA Note: For other reconciliations of Net Income (Loss) to Operating EBITDA in periods not shown, please refer to that period’s respective Form 10-Q or 10-K, which can be found on our website (www.mercerint.com) Operating EBITDA is defined as operating