Mercer International (MERC) Investor presentation summary

Strategic vision and sustainability

• Focus on transforming biomass into bioproducts to support a more sustainable world, with operational excellence and synergistic diversification as core pillars.

• Commitment to the circular economy and balancing social, environmental, and economic values.

• ESG ingrained in strategy, with leadership in environmental and social responsibility.

• 2030 aspirations include 50% reduction in scope 1 GHG emissions per tonne of pulp and 90% of energy from renewable sources.

• ESG-linked €370 million revolving credit facility, with improved ESG risk rating and strong industry ranking.

Diversification, growth, and operational synergies

• Purposeful diversification across pulp, lumber, mass timber, pallets, pellets, and green energy to reduce earnings cyclicality.

• Leveraging geographic clusters, especially in Germany, to maximize synergies and resource efficiency.

• History of proactive capital investments and expansion, with pulp capacity increasing over tenfold since 1994.

• Largest EPAL pallet producer and leading mass timber panel manufacturer in North America.

• R&D-driven biorefinery initiatives exploring green carbon products, synthetic aviation fuel, syngas, and lignin.

Market trends and financial performance

• Global megatrends such as population growth, urbanization, and climate change drive long-term demand for sustainable bioproducts.

• Favorable supply-demand fundamentals for softwood pulp; mass timber market forecasted to grow at 25% CAGR from 2025 to 2029.

• Cyclical earnings influenced by commodity pricing, with a history of positive margins and ongoing margin recovery from 2023 lows.

• Targeting $100 million in cost savings by 2026 through mill reliability, cost reduction, and operational rationalization.

• Strategic shift to deleverage and reduce debt, with a weighted average debt maturity to 2029 and improved liquidity.