Mercer's mission is to provide sustainably sourced fibers, renewable energy and chemicals for essential human needs.

Our operations consist of four large-scale, modern pulp mills - Rosenthal, Stendal, Celgar, and Peace River, and a 50% ownership stake in Cariboo Pulp and Paper. We also own and operate one of the largest sawmills in Germany, Friesau. Through the acquisition of Santanol in December 2018, Mercer expanded its presence into the sandalwood oil business.

The Rosenthal, Friesau and Stendal mills are located in eastern Germany. Rosenthal and Friesau are both approximately 300 kilometers south of Berlin, while Stendal is 130 kilometers west of Berlin. Our Celgar mill is located in southeastern British Columbia, Canada, approximately 600 kilometers east of Vancouver. The Peace River mill is located in the town of Peace River, in the Boreal Forest region of Alberta, approximately 500 km north of Edmonton. Cariboo Pulp and Paper is located in Quesnel, Canada, in the Montane Forest region of British Columbia, approximately 650 km north of Vancouver. Santanol is headquartered in Perth, Australia, with plantations in Western Australia and an extraction plant located in Perth.

Our pulp mills' core products are NBSK and NBHK - premium grades of pulp with strong long-term market fundamentals. Combined, our pulp mill operations have an annual capacity of 2.2 million ADMTs of pulp. Our Friesau sawmill produces a wide range of high-quality softwood lumber products with approximately 550 million board feet (mmfbm) in annual production capacity.

We also focus on the bio-economy by producing green energy and chemicals as by-products of our manufacturing processes. At a nominal incremental cost, we are able to convert residuals from our pulping and sawmilling processes into high margin and environmentally-friendly by-products, which add significant value to our business. These are stable revenue sources, unrelated to pulp prices. Most notably, all six of our mills are net suppliers of energy, meaning we produce more energy than we use. We have a total annual electricity generation capacity of 399 MW at our five pulp mills and an annual generation capacity of 13 MW in electricity and 49.6 MW of thermal energy at Friesau.

Our diversified customer base is located all around the world. We ship NBSK pulp globally to tissue, specialty paper and high-quality printing and writing grade manufacturers and our NBHK pulp is sold to high quality publishing paper and specialty product manufacturers in North America and Asia. Our lumber products are sold to customers in Europe, North America, Asia, the Middle East and North Africa. Additionally, we provide energy to local utilities and supply chemicals (most notably tall oil) to regional specialty chemicals producers and fuel refiners.

We employ approximately 2,200 people worldwide, and are proud to manufacture our products as efficiently as possible to ensure that our business enhances the social goals and welfare of the communities and environments in which we operate. We spend a significant amount of time and resources to ensure the safety of our employees while minimizing our impact on the environment. We regularly engage with our stakeholders on a variety of issues, as well as give back to the communities in which we operate. We believe this work is critical to our long-term success.

Our management team has many years of experience and is focused on creating value. In order to maximize our shareholders' value and simultaneously achieve our social goals, we focus on our core businesses in forest products manufacturing, while we continue to explore other new and innovative products. We strive for operational excellence to maximize our profits in the NBSK and NBHK sector, as these products' premium properties and supply-demand balance make them attractive markets, while at the same time diversifying our revenue streams through upstream integration with our sawmill operation. In addition, we are continuing to grow our energy and chemicals revenues, which are less cyclical than our pulp revenues and provide the company with highly profitable and stable cash flows, while at the same time allowing us to fully utilize the forest resource.

Mercer is a Washington state corporation with offices in Vancouver, BC; Seattle, WA; and Berlin, Germany. The common stock is listed for trading on the NASDAQ Global Select Market under the ticker symbol MERC.

Cariboo Pulp and Paper's pulp and electricity generation capacities included in capacities above reflect 50% ownership interest.