CELLMARK FINANCIAL SUMMARY 2020 Bridging the distance FINANCIAL SUMMARY THEME SMÖGENBRON, SWEDEN

Bridging the distance The theme of this Financial Summary

2020 was a very special year that had an immense impact on everyone and everything – professionally and personally. This is especially true for a company that provides products, services, and solutions to a global market.

How well we succeed from this point on, will be determined largely by our ability to work together in the face of brand new challenges. This is the time to grow and deepen relationships; between colleagues, countries, and cultures – made all the more difficult by the need for social distancing.

The only way to keep surpassing expectations with passion and purpose, becomes clear: first and foremost, it will be about bridging the distance that the pandemic has made necessary. To keep connecting, staying close, and working together over great distances. To focus on our global advantages, and not yield to isolation. Bridging the distance is the way forward, and therefore it is also the theme of this Financial Summary.

Photo: Stefan Kaffeemann

2 3 VALUE PLATFORM

Value Platform Additionally: VISION The bedrock of all our actions • We empower each other to be creative and decisive. We are company of ”Surpassing global entrepreneurs, where we generate ideas and welcome change. Expectations”

• We care about the future welfare, health and well-being of our people, our business partners, and the communities where we are present. MISSION Our vision • We build strong, agile teams of dedicated people with a results- ”We deliver products, is Surpassing Expectations. oriented work ethic to align towards common goals. We develop services, and solutions long-lasting relationships while having fun. to the world market” Our mission • We are supportive, promote open dialogues, and treat each is to deliver products, services, and solutions to the world market. other with respect. We celebrate our accomplishments and learn from our experiences. Our Guiding Principles are the bedrock of all our actions. Integrity is the foundation of our • We develop tools, training, and guardrails to facilitate CORE VALUES relationships, with each other, and with our business partners. sustainable growth. ”CellMark Guiding Principles”

ST MICHAEL’S BRIDGE Ghent, Belgium

CELLMARK IN GHENT CellMark has one office in Ghent, represented by our Basic Materials Division. The office specializes in the iron foundry business and offers almost all consumables and equipment a foundry could possibly need.

4 5 TOKYO GATE BRIDGE, TOKYO

GUARDIAN OF THE HOLY MOUNTAIN Designed to increase traffic flow through the Port of Tokyo, the Tokyo Gate Bridge is a powerful example of when sustainable development meets new technology. Meeting the demands of both the marine industry and the nearby airfield took a lot of creative thinking, that in turn has already influenced the construction work of many subsequent bridges.

CELLMARK IN TOKYO One of our CellMark companies, CellMark Japan Co., Ltd., is based in Tokyo. With impressive market experience, CellMark Japan is handling metals, chemicals, and energy products with excellence.

6 7 A WORD FROM THE PRESIDENT

CHRISTER SIMRÉN, A WORD FROM THE PRESIDENT:

A year like no other remotely from home during 2020. This made it possible to continue our close rapid change made demands on our IT partnerships by committing to new standards and support systems. But, ways of communication and collabora- Closing the books on 2020 we coped well with the situation, and tion. As always, we value our relation- the experience gave us great learning ships highly and are pleased with and further preparation for the future. the confidence our partners put We have expanded our thoughts on in our professionalism. how we can apply more flexibility in how we work, while also continuing to live Now, 2021 is here – and we 2020 is a year that none of us will ever basic chemicals competencies, in order Connecticut, which will support the our vision of Surpassing Expectations. are more than ready. forget. In the first quarter, the COVID-19 to provide even more value to our business with ingredients for food, pandemic hit the world with its full customers and suppliers. I am pleased nutraceutical, pharmaceutical, animal Building upon our strategy in 2019, we power and forced us to adapt to a new to declare that our new division, nutrition, and vitamins. It is a great remained focused on our core business Christer Simrén situation with unexpected challenges especially the basic chemicals business, investment that will add value to the during 2020. We aim to grow and diver- President & CEO and uncertainty. At CellMark, we acted performed a record result in 2020. company for many years to come. sify within, or very close to, the core quickly and took decisive measures business areas where we have our most for our supply chain to remain fully CellMark Recycling had their best year CellMark Packaging continued to solid experience and knowledge. Other operational. Once again – thanks to our ever. Even within this volatile environ- broaden the base of its products and focus areas that were important for us most valuable assets, our people – we ment, our trading group did an out- suppliers serving the world market, during the year included sustainability, proved that we know how to use our standing job. The division completed including packaging grades adapted integrity, and risk control. These areas agility and flexibility to pivot in times of the acquisition of Rocky Mountain to novel distribution and packaging will remain in our focus during 2021. uncertainty. Perhaps most importantly Recycling Services, a major supplier methods. Fiber based packaging will is that CellMark managed to make and valued strategic partner for the continue to grow in importance, driven We carried on with the process of continual financial progress and stay last 20 years. Moreover, we started up by sustainability requirements and how modernizing our IT landscape and profitable – a streak we have kept since a new CellMark Recycling company, we consume goods. CellMark will be an improving our cyber security. the company was founded in 1984. Charleston Recycling Services (CRS). important partner in this development. We will continue our IT and digital Recycling is becoming even more modernization journey in 2021. Given the circumstances, we managed important for the future, and CellMark CellMark Pulp delivered a stable and to deliver a satisfactory result for 2020. is a leading force in both sustainability satisfactory result. Several partner- As always, we continued our support While many companies had their and value creation. ships were added, and the business for the PaperSeed Foundation, a toughest year ever, we relied upon our continues to broaden and diversify non-profit organization dedicated to diversification and the fact that we CellMark Paper had a demanding year, into related fiber applications. Pulp will strengthening educational oppor­ operate across multiple industries. This suffering from continued and unprece- always be a fundamental base to a tunities for children and youth around is a unique strength that, over the years, dented deterioration in graphic paper variety of grades and end uses. It has the world. As there is likely to be less has helped us to remain successful and demand. The division implemented contributed to CellMark’s success since money available for education in the competitive through ups and downs. a successful realignment in order to our foundation more than 36 years ago, wake of the pandemic, PaperSeed’s reduce operational costs while ensuring and this will remain for the future. dedicated work is now more important In September, we introduced a new flexibility and adaptability for the than ever. division: CellMark Basic Materials. business. I am very satisfied with this The COVID-19 pandemic not only This division is the result of merging progress and optimistic for the future. affected the markets, but also many In no other year could the theme of two of our divisions, CellMark Metals companies’ way of working. CellMark this Financial Summary, “Bridging the and CellMark Basic Chemicals. The CellMark Chemicals had a satisfactory was no exception. To stop the spread Distance”, be more relevant or impor- aim of the new division is to combine year. The division opened a new of the virus, a major percentage of our tant as during 2020. We are genuinely the best of CellMark’s metals and manufacturing facility in Naugatuck, employees had to switch to working grateful to our partners who have

8 9 ABOUT CELLMARK FREDVANG BRIDGES, FREDVANG

Our company Excellence in supply chain services

CellMark is a privately-owned inde- The company is privately held and Relationships pendent marketing and supply chain owned by its employees and an outside CellMark has established its position services company providing products, corner investor, Ernström & Co., who through long-term relationships and services, and solutions to customers helps us achieve our strategic objec- consistent performance. Our global and suppliers all over the world. We tives. Our annual sales are approxi- network affords our various professionals facilitate trade and business develop- mately USD 2.5 billion, with volumes of with an in-depth understanding of even ment across multiple industries using almost 7 million tons annually. CellMark small changes in the market’s culture our vast network of local offices and takes pride in contributing to global and mechanics. It also facilitates professional expertise. sustainability efforts and is committed superior, day-to-day interaction with to strengthening educational oppor­ clients. This structure helps us continu- Through a network of 70-plus offices in tunities through support of the Paper- ously guide and support customers. 30-plus countries, we provide a full suite Seed Foundation. of services: sourcing, sales & marketing, As we are constantly reminded, environ- exclusive representation, finance, Background ments shift quickly and without warning. logistics, regulatory compliance, and, Founded in 1984 in Gothenburg, We need to be agile and flexible, with- in some areas, research & development Sweden, CellMark has its roots in the out losing sight of the principles and and custom manufacturing. We also international trade and distribution fundamentals on which CellMark was partner with clients to identify new of raw materials related to the global built. Our goal is to remain as we are business opportunities that add value pulp and paper industry. Over the — continuously changing. to their processes and products, or years, we have developed world-class sometimes serve purely as the external marketing and supply chain service Fortunately, we do not work alone. sales or sourcing division for our client. capabilities and expanded into new Our partners’ confidence in our profes- product areas. Today, we run six sionalism has been the backbone of The CellMark Group consists of approx- successful international divisions in Pulp, our development. We value our relation- imately 800 professionals with in-depth Paper, Packaging, Recycling, Chemicals, ships highly, and continuously strive product and market knowledge and and Basic Materials. We have also to earn and maintain the industry’s extensive, long-term relationships in the grown operations for plastics and bio- confidence and respect. We aim to be industries we serve. mass for energy. the industry’s obvious choice for global THE LAND OF THE MIDNIGHT SUN trade services. In Lofoten (an archipelago in northern Norway), bridges are easily as important as ferries. The Fredvang Bridges are two cantilever bridges that connect the fishing village of Fredvang on the island of Moskenesøya with the neighboring island of Flakstadøya. Here, above the Arctic Circle, you can enjoy daylight 24/7 from the end of May until mid-July, when the midnight sun slowly sets.

10 11 ABOUT CELLMARK ABOUT CELLMARK

CellMark delivers a broad range of products, services, and solutions to the world market. We bring order to volatile markets and mitigate risk. Our long-term experiences enable us to develop services that help our industrial partners improve performance.

Sales & marketing Deep financial insight, an extensive This valuable service helps customers With a talented and committed sales global network, and close relationships and suppliers navigate the complexities team featuring unmatched knowledge, with banks and insurance institutions of domestic and foreign markets. At the experience, and global presence, give CellMark the ideal platform from same time, we identify new business CellMark offers producers and end-​ which to customize solutions for our opportunities created by regulatory users all manner of sales and mar­keting customers and suppliers. changes and reduce the possibility of Our services services, timely, accurate market infor- noncompliance. mation, risk management, order track- Always ready to embrace new ideas and We deliver products, services, and solutions to the world market ing, invoicing, and trade documentation. concepts, we have helped importers Custom manufacturing & R&D All of which contribute to our world- and exporters around the world to stay At CellMark, surpassing our customers’ class supply chain service operations. competitive. This creative approach is expectations is central to our way of a result of our commitment to deliver thinking. We strive to offer, design, and Local warehousing, financial solutions that precisely match develop custom-made solutions to logistics & customer service the needs of both buyer and seller. everyday manufacturing challenges in Our logistics capabilities fulfill the needs Indeed, we always strive to design our specialty chemicals through the use of of both our suppliers and customers. solutions around the buyer’s or seller’s our global lab capabilities and R&D We integrate these services with our trading cycle, thereby minimizing risks. platforms. Our sales teams are here to product divisions. As such, we combine provide guidance and technical support our partners’ extensive knowledge Our financial services include: in order to achieve optimal results. with the consideration expertise of our • Short- and medium-term trade logistics professionals. finance Leveraging our inventory of more than • Structured trade finance 500 industrial, pharmaceutical, and As a large shipper of goods, CellMark • Pre-export financing personal care products, Custom has cultivated close relationships • Project finance Manufacturing represents more than with major shipping lines, forwarding • Credit insurance facilities 35 percent of the CellMark Chemicals’ companies, terminals, haulers, and • Credit management sales and is its fastest-growing sector. insurance companies. These partner- • Cash management services ships complement our deep product Our technical and sales professionals knowledge, resulting in high-quality Regulatory & compliance support provide these services for global transportation at competitive costs. In recent years, the regulatory environ- customers: ment for the chemical and allied indus- • Formulations Our logistics services include: tries in which we operate has changed • Custom blending • Container shipments dramatically. To keep up with these • Granulations • Bulk shipments changes, CellMark Chemicals Division • Milling • Dangerous goods has built a global team of Regulatory • Triturations • Contract negotiations Specialists. These professionals ensure • Packaging and Re-packing • Marine insurance that our organization and the products • Research and development • Inspection of goods we provide comply with the full spec- • Pilot trials • Vessel chartering trum of regulatory bodies, including • Laboratory testing • Warehousing REACH, OSHA, FDA, USDA, DEA, EPA, and • Inorganic reactions • Due diligence GHS/CLP. • Claims handling Our sales professionals possess Additionally, our Compliance Managers extensive technical knowledge and Financial services update customers on regulatory experience. Coupled together with our Our dedicated finance team creates changes around the world. They also customer service team, we provide ex- innovative financial and risk manage- exercise Responsible Care Distribution ceptional problem-solving capabilities. ment solutions from offices in Gothen- with imports, in accordance with the burg, Geneva, Shanghai, Tokyo, Novato Customs Modernization Act and our (California), Miami (Florida), South NACD membership. Norwalk (Connecticut), and Shelton (Connecticut).

12 13 HELIX BRIDGE, SINGAPORE

LIKE A DNA OVER UNTROUBLED WATER Inspired by the molecular structure of DNA, pedestrian bridge The Helix was inaugurated in 2010. Its organic symmetry stretches out across the Singapore River, connecting the financial district with the Bayfront. At night, a series of LED lights highlight the double-helix structure – a shining example of how one of the smallest components of our world can inspire impressive and ingenious feats to bring us together.

CELLMARK IN SINGAPORE All of CellMark’s divisions are represented in our Singapore office. 30 dedicated employees within Chemicals, Packaging, Paper, Pulp, Recycling, Basic Materials, and one of our business units, CellMark Energy, are surpassing expectations here every day.

14 15 ABOUT CELLMARK ABOUT CELLMARK

How we can add value Our People Continuity and creative business solutions A strong and agile team

Serving a multitude of industries, our daily challenges come in all shapes and sizes. That means we must truly be where our CellMark is a global company with ability to provide exceptional service marked by efficient communication, customers and suppliers are, as well as being one step ahead. And our people need to be as diverse as our wide variety of brilliant people from a range of diverse to business partners all over the world. quick decision-making, and a structure business partners. cultural backgrounds. Our professionals designed to maintain and develop feature various local perspectives, Our corporate culture is informal and our unique competencies. We nurture One key factor for how we do business is our company culture. Centered around informed creativity, our culture is designed speak numerous languages, and offer transparent; it suits versatile people innovation, foster creativity, have open to empower each individual to be their own entrepreneur. We do this by shortening decision-making processes, reducing a wide range of capabilities. Diversity who are comfortable with change. discussions, and are supportive at all lead times, and making our clients quicker on their feet. But being swift only helps us today. In order to succeed tomorrow, we is the very core of our business model. It engenders motivation and assures levels. need a much larger perspective. That is why our main investments go toward continuity, longevity, and long-term business It is the basis for our intimate under- strong employee engagement at all relationships based on integrity and respect. standing of different cultures and our levels. It is a unique corporate culture,

Access to markets and materials Risk elimination Through our local presence on a global Our financial strength and long track scale, we provide producers and cus- record make us a solid, reliable partner. tomers with instant access to markets Through risk management, we take the SYDNEY HARBOUR BRIDGE and materials worldwide. Our expertise worry out of our clients’ global supply Sydney, Australia saves our clients the cost and intricacy chain operations and let them focus on of setting up their own operations. their core business.

Full suite of services Deep industry expertise Regardless of complexity or simplicity, Decades in the industries we serve has our diverse team offers a wide base given us a thorough understanding of of competencies and an even wider our partners’ challenges. Experience variety of supply chain services. It and knowledge that lets us guide them allows us to guide clients through the to informed commercial decisions and ups and downs of market cycles. assist them with compliance.

Easy, swift operations Continuity and commitment Being employee-owned has granted We believe in success through partner- our company an entrepreneurial DNA. ship, investing in long-term business With an organizational structure that relationships based on integrity and CELLMARK IN SYDNEY empowers our employees to make respect. Teaming up with us gives our CellMark has one office in quick decisions, we can help our clients clients a partner that continuously Mona Vale, a suburb to stay resilient in volatile markets. strives to earn and maintain the indus- Sydney. Our Recycling Division try’s confidence and trust. is represented here.

16 17 VENETIAN CAUSEWAY BRIDGE, MIAMI ANNUAL REVIEW CELLMARK PAPER

Unprecedented declines in demand for Paper

HOW ONE BRIDGE BECAME A DOZEN 2020 was a very challenging year for Our Latin American division experienced Despite the unknowns, we enter 2021 When inaugurated, Collins Bridge (connecting the city of Miami with the Paper Division. The extraordinary similar challenges related to COVID-19. extremely optimistic about our future. Miami Beach) was the longest wooden bridge in the world. The dredging difficulties began early in the year However, the product diversification It is our view that we have taken the of Biscayan Bay brought about the creation of a line of artificial islands with the onset of the global pandemic that we bring to our customers enabled necessary steps to restructure our cost dubbed The Venetian Islands, and in 1925 the original Collins Bridge and unfortunately, COVID-19 had an us to deliver a reasonable result. base and are now set up for success. was torn down and replaced with twelve new bridges connecting the extremely negative impact on our The activities in Latin America are not islands. The passage is known as The Venetian Causeway. business just like so many others. We exclusive to graphic papers and some of We recognize that we face new experienced unprecedented declines our specialty areas were less affected. challenges every day, and I have great in demand across almost all printing We did include the Latin American confidence in our current team to & writing grade categories. group in our divisional reorganization, deliver great results. I want to personally and we are excited about the despite thank our partners and all of our team The retail insert market, which is the core the printing and writing paper segments members for their tremendous efforts of our North American activity, was in both North and South America under very difficult conditions. simply decimated. As the lockdown kept continuing to decline. In spite of the everyone at home, the Bricks & Mortar expected reductions, we continue to We fully expect that 2021 will generate stores were hit the hardest. Most were creatively address market needs a very much improved result and we deemed non-essential and forced to and have several new specialty paper are all excited to deliver on this promise. close for long periods of time. and synergy initiatives underway. Joe Hoffman The world was forced to shop on-line, The strongest divisional performance Paper Division President and stores do not advertise with printed was led by the international team, materials when they are closed. We specifically in the European and Asian experienced a surge of immediate print markets. Their strong efforts led to order reductions and many resulted in growth in Australia, Spain, India, and cancellations. The closure of schools China. We were able to benefit from combined with a remote work world the more stable demand as a result of also contributed to significantly less our fully committed Asian supply. The consumption. international team has some exciting new projects and initiatives for 2021 in The challenges were endless and as several new markets. time went on, it was clear we needed to adapt. The sudden loss of substantial The market remains volatile and very volumes in our North American port­folio difficult to predict. There are numerous forced a major restructuring of our forces we cannot control, such group. These were very difficult decisions as currency changes, freight, but necessary in order to ensure a mill & customer closures, and the successful platform for the future. As a impact of digital technology. result, we completed a major rightsizing initiative in order to properly align our cost structure.

CELLMARK IN MIAMI We are heavily focused and constantly measuring our transactional cost A CellMark sales office was per ton. We consistently evaluate this opened in Miami in 1993. Today, metric and continue to improve our our Miami office focuses on sales performance in order to continue as of printing and writing papers in the market’s lowest cost and most Latin America. The office provides efficient distribution channel. As such, a wide range of services from having our global offices aligned and logistics to financing and sales. communicating effectively is essential. There are also representatives from our Packaging and Basic Materials divisions located here.

18 19 HUMBER BAY ARCH BRIDGE, TORONTO ANNUAL REVIEW CELLMARK PULP

Record sales for Pulp in 2020 CELLMARK IN TORONTO Building relationships with suppliers in Canada was Well, what a year! In the midst of one growth in Korea and Japan emerged suppliers and customers as we provide a key factor in expanding our global footprint from our of the largest economic contractions but were delayed as a result of con- a much-needed physical market strong European base in the 1980’s. Today, CellMark has in history, the Pulp Division delivered struction interruptions associated with presence with our network of global one office in Canada. The country is a rapidly growing, excellent financial returns with record COVID-19. Our Nordic Caustic group offices. The market knowledge, cus- highly strategic area for the CellMark Paper Division, sales volumes despite the ravages of saw supply shortages at the beginning tomer assistance, cultural knowledge in particular. the global COVID-19 pandemic. The of the outbreak as demand for related and sales professionalism of our team Pulp Division continues to focus on its PVC & chlorine plummeted. This was continue to demonstrate the value supplier & customer partners to ensure quickly replaced with a very strong proposition of our model. their success in all our markets. activity in building materials which drove PVC production dramatically Finally, I would like to thank the amaz- The Pulp Division’s activities include upwards thereby producing a glut of ingly talented group of team members global trading in all varieties of pulp caustic. As a result, caustic pricing around the world with whom I have (over 2 million tonnes), our Energy reached a record low in October and the privilege of working with every day. groups’ trading activities in biomass has been slowly recovering. Together, with our customer & supplier and woodchips in Europe, Asia and partners, we will make 2021 even better. North America, and our Nordic Caustic Nonetheless, the Caustic group has group which specializes in caustic soda developed multiple new customer & Doug Smith trading in the Nordic region. The overall supplier relationships in 2020. Similarly, Pulp Division President theme in all these markets was, of the Energy group finalized several course, the effect of the COVID-19 virus long-term supply contracts in Japan on business. The pulp market saw an and Korea, and resumed an impressive immediate impact on printing & writing growth trajectory. The Pulp Division’s papers, tissue, and packaging. With pulp activities also have grown in the closure of offices around the suppliers, customers, and markets with world and people working from home, a record sales volume in 2020. Globally, demand for printing and writing papers the pulp market has seen an encour- shrunk from 26 percent of market pulp aging recovery starting in the fourth demand to 20 percent. Tissue and quarter of 2020 as pricing began to packaging sectors saw dramatic in- increase from relatively stagnant levels creases in demand and market pulp throughout the year. A combination of shipments to those sectors realized low producer inventories, extreme similar gains. logistics disruption, surprisingly improved demand from China, and As a result, pulp demand did not see an emerging influence from the the anticipated declines. In fact, market Shanghai Futures Exchange meant pulp shipments grew by 1.3 million tonnes that price increases began in from last year and was in line with the the final two months of 2020 and average 10-year growth rate. Similar have continued into 2021. worries concerning wood chip availa- bility for pulp mills did not come to In summation, despite an pass. Lumber mills (a major source of in­credibly chaotic and sad year fiber to pulp mills) ran at record rates for the world, CellMark’s Pulp to fill the insatiable demand for do-it- Division has been able to yourself project materials for quaran- survive and thrive. Indeed, SPIRIT OF A TRADE ROUTE tined citizens and therefore, pulp mills our business model has proven ran uninterrupted. incredibly relevant for our Humber Bay Arch is one of Toronto’s most iconic structures. Its beautiful architecture pays homage to the trade routes Our Energy and Nordic Caustic group that ran through here, used by aboriginal Australians and saw similar effects on their businesses. fur traders. The top of the bridge displays the Thunderbird, The wood pellet market grew by 8 per- an important symbol as the seer of all. While no longer cent in 2020 to surpass 40 million tonnes. strictly speaking a trade route, the bridge is as popular Support mechanisms continued to be today as ever. renewed and strengthened in the shadow of the pandemic. New demand

20 21 GOLDEN GATE BRIDGE, SAN FRANCISCO ANNUAL REVIEW CELLMARK PACKAGING

Market transitioning impacts A WONDER OF THE on Packaging MODERN WORLD With the 2019 market suffering from to satisfy demand but struggled to Logistics and documentation teams No collection of famous oversupply, 2020 began with a lackluster maintain margins. Freight became the adapted seamlessly to their continu- bridges would be complete recovery pace. Most packaging grades next shortage, as shipments of con- ously changing environments, with without paying tribute to of board and paper were at depressed sumer goods took priority over industrial many of our professionals working from one of the most beautiful prices, and demand was flat. Expecta- products. Increased costs and home for much of the year. With our (and certainly the most tions were for a slow recovery through decreased availability in most ocean strong efforts, we were able to transact photographed): the Golden the year, as demand was projected freight lanes made maintaining service 9 percent more tonnage than in 2019. Gate in San Francisco, USA. to improve at a modest pace. However, and price levels difficult. Results for the year improved during the A Californian landmark since COVID-19 caused an immediate and second half, and we reached a level of its opening in 1937, when it dramatic demand acceleration. Despite these factors, which led to Earnings Before Tax that equaled 2019. was by far the longest and Before long, inventories were drained drastic swings in our segment, we con- tallest suspension bridge of product as end-users faced total tinued to build on our path of market Paul Busnardo in the world. Today it caters uncertainty for packaging demand. growth and product diversification. Packaging Division President to six lanes of traffic (not We added staff and built our first USA counting the designated The pandemic bolstered e-commerce, sales team, which focuses on distributing areas for pedestrians and which was already the largest com­ high-value containerboard imports cyclists). ponent of corrugated box growth over from Europe and Asia-Pacific. the past several years, increased significantly. By Q2-20, it was apparent Additionally, our sales teams in Asia that the consumer trend toward more and Gothenburg adjusted to gain online shopping was building quickly in efficiency and support geographic many markets. Food delivery increased and product growth opportunities. at a frantic pace and packaging users struggled to find raw materials from a depleted supply chain. Producers were unable to add capacity quickly enough to keep pace with increasing demand. Pricing for containerboard increased steadily and reached record levels by Q4-20. Other packaging grades also enjoyed a market recovery, but this resulted in lengthy delivery delays, and disappointed customers in all market regions.

CellMark Packaging felt the impacts of these market transitions immediately. In three months, we moved from excess supply to product shortage. Export quotas and availability dropped from key supply regions in the USA and Europe. Demand from users worldwide increased, from June onward. We worked to find alternate supply sources CELLMARK IN SAN FRANCISCO One of the larger CellMark offices is located in Novato, California. 50-plus of our dedicated employees within the Packaging and Recycling divisions are based out of this office.

22 23 NANPU BRIDGE, SHANGHAI ANNUAL REVIEW CELLMARK RECYCLING

Strong environmental focus A BRIDGE TO FINANCIAL GROWTH boosts Recycling Shanghai is one of the fastest growing cities in the world, making strategical infrastructure a prerequisite for fulfilling the needs The year 2020 will forever be defined confined to their homes, the commercial Our group’s performance in 2020 is of its population. A key area of interest is the Pudong district by the COVID-19 global pandemic. Our and industrial tissue business disap- something we are proud of. Our tonnage on the other side of the Huangpu River, home to over five million lives, and the global business environ- peared, drastically reducing business volume was up slightly from 2019, and people. This is where Nanpu Bridge became a trailblazer for ment as we knew it, changed. As we into some of our largest customers. our financial result was the best the bridges and tunnels throughout the area which is mostly known began the year, no one anticipated that group has delivered to date. As we look for being Shanghai’s financial center. most of the global population would One of the seemingly positive conse- to 2021, we anxiously await the distribu- be locked in their homes, traditional quences of the pandemic for the tion and roll out of vaccines, allowing human socializing prohibited, and recycling industry was the accelerated our teams to once again travel, and to unemployment figures would reach shift toward e-commerce. This dra- put the pandemic behind us. We do not multidecade highs. Yet this is the matically shifted the landscape of our expect that the post-pandemic world environment within which we found business as retailers closed, dozens of will look like the pre-pandemic one. ourselves for most of 2020. which have now filed for bankruptcy, not But whatever it does look like, we are likely to reopen post pandemic. This shift well positioned to adapt accordingly. Fortunately for our group, recycling has greatly benefited the corrugated was deemed an essential service, and packaging industry, as e-commerce has Jimmy Derrico as such, we were permitted to continue dramatically increased the demand for Recycling Division President conducting business. Others were not corrugated packaging. The recycling as fortunate, as the pandemic wreaked industry also benefited simply by virtue havoc on people and industries alike. of the fact there was more demand for The magnitude of which will remain a recycled material, while simultaneously topic of study long after the pandemic more material was being generated in is over. the waste stream.

As we look back on 2020, I can truly say we made the best of a nightmare situation and kept adapting in positive ways to everchanging circumstances. We learned how to work remotely, conduct teleconference meetings, and effectively operate utilizing digital platforms. We faced logistical chal- lenges never before experienced by our teams. Entire countries went into lockdown on a day’s notice and commerce came to a virtual standstill, burdening us with hundreds of loaded containers en route to shuttered cus- tomers around the globe.

We saw many changes in our sector as a direct result of the lockdowns. Office buildings became ghost towns, and we lost the source of wastepaper typically generated at these facilities. This also CELLMARK IN SHANGHAI led to the permanent closures of various One of our major offices is located mills producing printing and writing in Shanghai. Five CellMark divisions papers, as there was no demand for are represented here: Pulp, Pack­ their products. As people remained aging, Recycling, Basic Materials, and Chemicals.

24 25 PONT ROUELLE, PARIS ANNUAL REVIEW CELLMARK CHEMICALS

Balanced diversion secures BACK ON TRACK AFTER 50 YEARS Chemicals’ performance The railway bridge Pont Rouelle was built for the 1900 World Fair in Paris, and the newly erected Eiffel Tower could As we turn the page from one year As challenging as it was to adapt to The fact that our Chemicals Division be seen from the train windows. As train travel decreased to the next, there is always a sense of this new environment, it was somewhat had another successful year despite due to the increasing popularity of the subway system, accomplishment of what we have comforting to know that we were all in the many challenges we have faced, the bridge closed for traffic in 1936. But in 1988 (after more completed the year before, and also this together and needed to unite in is a testament to the resiliency of our than 50 years of being dormant) the line was re-integrated a sense of reflection of what we could order to somehow get through this employees and to the strength of our into the Paris railway system. have done better. The first days and madness. Initially, as an organization, business partnerships with suppliers, weeks of 2020 were met with great en- we were all scurrying to gather all of customers, and service providers. It is thusiasm and excitement as we began the personal protective equipment we for all of these reasons that we have preparations for the year ahead. During could get our hands on to send to our been able to sustain ourselves during those early days of 2020 we also knew colleagues and friends in China, only these challenging times, and we are from past experience that the new year to find that three months later our grateful for everyone’s continued would most certainly bring a whole new colleagues and friends in China would cooperation and support. Thank you. set of challenges – both known and do the same in return. It was impressive unknown – that we would need to over- to see how, as an organization, we all Wishing all continued good health and come. Needless to say, 2020 did not came together to support one another safety. disappoint and brought about un­ and to bridge the distance that the precedented challenges that forced pandemic had created among us. These Hugo Galletta all of us to pivot and to adapt quickly are the markings of a great company, Chemicals Division President to evolving conditions that were not one that we can all say that we are truly easily understood. proud of to be a part of.

The purpose of this message is normally Having said the above, we would like to provide an annual review of the to briefly mention that the Specialty accomplishments and performance of Chemicals Division of CellMark per- our Specialty Chemicals Division. Con- formed reasonably well in 2020 consid- sidering the unprecedented personal ering the hardships many industries and professional challenges we have and people have endured throughout all endured in 2020, and continue to do the year. From a financial perspective so, I feel as though as slightly different we performed much better than we did message is warranted this year. the year before, increasing our Earnings Before Tax by approximately 2020 was a year that taught all of us to 50 percent. We attribute our good take exceptional good care of ourselves performance in 2020 to our diverse and to watch out for our loved ones, and and balanced product portfolio to be grateful for the things we have. which enabled us to smooth As we recount the early days, weeks, out several of the bumps we and months of the global pandemic, encountered along the way. we can recall a lot of shocking and sad stories that have occurred around the world, and at times within our own neighborhoods and families. These were difficult times for all, and I think it is safe to say that every single person, family, organization, and country was CELLMARK IN PARIS impacted one way or another by the Thanks to our two offices located in the East and in the health crisis. We were thrusted into an West of the beautiful French capital, CellMark is bridging unfamiliar environment of social the distance between Eastern and Western Paris, distancing and isolation, and wearing surpassing expectations in both paper and chemicals personal protective equipment – all of business operations. which strangely became a part of our daily lives.

26 27 RAMBLA DEL MAR BRIDGE, BARCELONA ANNUAL REVIEW BASIC MATERIALS

Milestone: Divisions merged into FROM OLYMPICS TO BEACH GAMES Basic Materials When preparing to host the 1992 Olympics, Barcelona invested heavily in city-wide repairs – focusing especially The year 2020 was a very different challenging circumstances. The great Today we are a proud and growing on the then neglected port area. A striking example of the and challenging year for all of us; one joint team effort was made by all our team of 65 professionals located on many improvements is the wooden pedestrian bridge that reminded us of our fragility, but division members from all regions: five continents. I would personally like called Rambla Del Mar, that opens up allowing boats to also of our great strength and agility. Asia, Africa, Europe, Middle East, Latin to thank all our colleagues for their pass through. It might even rival Passeig Marítim as Colleagues and partners around the America, and North America, with effi- support, and our business partners the main tourist attraction – the two miles of beachfront globe demonstrated quick adaptability cient and timely execution. We man- around the globe for choosing CellMark using sand imported from Egypt! for working together to seek out aged to navigate this difficult year, and Basic Materials. solutions and to keep moving forward we are pleased to announce that we as we faced the pandemic together. achieved a successful year-end result. Ersin Alkan Basic Materials Division President The year 2020 also brought a milestone in We now begin the journey of a new CellMark Group’s history when two of year with confidence, focused on goals our divisions, Basic Chemicals and Metals, and targets, to keep our business merged into one. As of September 1, growing in a healthy and mutually 2020, CellMark announced a new division beneficial way along with our partners. – CellMark Basic Materials. With lessons from the past and looking The theme of our financial summary to the future, we will continue to follow this year – “Bridging the Distance” – our key growth drivers: signifies the importance of collaboration in our business. CellMark acts as a • Review and improve our existing bridge between the many stakeholders business. of commodity chemicals and metals • Expand our business in new along the journey from producer to con- geographies. sumer. Trading commodity chemicals • Expand and diversify our product and metals from point A to point B portfolio. requires numerous steps and CellMark is the bridge all the way from our producer partners to our consumer partners.

But we are not only a simple bridge to move products on. We are also a symbolic relational bridge between our partners. With strong feet on the ground, guardrails, and knowledge of global markets, products, financing & logistics solutions, we ensure our partners’ business journey is easy, comfortable, and smooth. We bridge distances every day, around the clock, and around the globe.

Despite the great challenges we faced in 2020, a great team effort gave us a successful year with 10 percent growth on total tonnage-volume in both basic CELLMARK IN BARCELONA chemicals and metals products. It is In CellMark’s two offices in Barcelona, fantastic to see that our business our Basic Materials, Chemicals, and development and growth strategy plans Paper divisions are represented. worked well, even when faced with

28 29 BROOKLYN BRIDGE, NEW YORK

A PIONEER, A PROUD ROOSTER AND 21 ELEPHANTS The Brooklyn Bridge was built to ensure a safer passage to Manhattan for the thousands of workers who had to cross the East River on a daily basis. Completing the build in 1883, Emily Warren Roebling became a pioneer of female engineering and carried a rooster as a symbol of victory. To prove the strength of the structure (and surpassing expectations in the process), showman P.T. Barnum trekked his troupe of 21 elephants, 7 camels, and 10 dromedaries over it.

CELLMARK IN NEW YORK CellMark’s second largest office is located in South Norwalk, Connecticut, an adjoining city to New York. Every day, 60-plus employees are surpassing expectations in support of our Recycling and Paper divisions, and our sub-division CellMark Plastics.

30 31 CARRICK-A-REDE, BALLINTOY SUSTAINABILITY

A FISHING SPOT FOR DAREDEVILS Carrick-a-Rede Rope Bridge hangs 30 meters over the sea near Ballintoy, Northern Ireland; it connects the mainland with the small island of Carrickarede. Rumour has it that salmon fishers have made make-shift bridges of all kinds here for over 350 years. Today, for a bridge fee, any brave visitor is welcome to cross it – but a fair few think better of it, and wind up taking the boat instead. Sustainability Reporting 2020

The following pages covers the sustainability performance of CellMark during 2020. It serves as an accompaniment to the other material in this Financial Summary, where you can find more information about the company, including our financial returns for the same period.

Reporting framework CellMark uses the Global Reporting Initiative’s (GRI) G4 Sustainability Reporting Guidelines to guide our selection of information and improve report quality.

Intellectual property Included within this report there may appear various websites, registered trademarks, logos, research reports and other forms of intellectual property. Without exception, these are acknowledged as the legal property of their respective owners, whether they appear marked or unmarked.

Tons We standardize our reporting of metric tons as equivalent to 1,000 kg.

32 33 LANGKAWI SKY BRIDGE, LANGKAWI SUSTAINABILITY

Message from CEO

Across the world, 2020 has been a sustainable forestry, are a member of 2020 has underscored how connected THE WIDER PERSPECTIVES OF LANGKAWI challenging year. With the COVID-19 the National Association of Chemical our world is, and we understand that A gently curved walkway around Langkawi’s second highest pandemic impacting our professional Distributors and committed to product our decisions as a company affect mountain (Gunung Mat Cincang), the Langkawi Sky Bridge offers and private lives, we have had to adapt stewardship and responsible distribu- not only our employees and business a unique and shifting panoramic view. The 125 meter bridge was to this unprecedented challenge. Our tion in every phase of chemical storage, partners but the entire world. That is constructed in sections that were put in place using helicopters, first priority continues to be the health handling, transportation, and disposal, why we will continue to improve our and you can reach it via a fairly challenging 20 minute mountain and safety of our employees and our and divert tons of waste from landfill to sustainability policies and practices, in track or the SkyGlide inclinator. business partners, while maintaining our recycling each year. order to make a positive impact around business to the greatest extent possible. the world. As a company operating in 70-plus Through our continued partnership with offices in 30-plus countries around the the PaperSeed Foundation, we helped Christer Simrén world, we know how interconnected over 279,000 children in six countries President & CEO the world is, and this global pandemic get a better education. In September, only confirms this. This has highlighted CellMark employees also helped raise how important we all must act together over $15,000 by participating in a virtual across the world to solve our challenges, Run to Raise. All funds raised via regis- which not only includes public health tration and fundraising efforts were issues but also environmental, economic given to select non-profit organizations and social issues. serving children during the COVID-19 crisis. And since the inception of our This is why I am proud and committed CellMark Cares donation program in to share CellMark’s 2020 sustainability 2019, we have supported 163 non-profit performance with you. Our actions in organizations in Belgium, Bulgaria, these areas not only impact our France, Germany, Greece, Ireland, employees, business partners, and the Japan, Mexico, Poland, Spain, Sweden, communities we operate in but also Turkey, United Kingdom, United States the entire world. This is why we work of America, and Vietnam, chosen by with certified suppliers focused on our employees.

Message from Director of Sustainability & Corporate Social Responsibility

Without any doubt, the world looks funds from the company’s first Run to Aliyya Shelley Mattos very different this year than in years Raise virtual race. We continue to assess Director of Sustainability & Corporate past. Amidst the tremendous upheaval the business landscape across the Social Responsibility and numerous challenges around the CellMark ecosystem with an Environ- world, there have been bright spots of mental, Social and Governance (ESG) humanity that have inspired and in- lens and are pleased CellMark AB formed our work. I am hopeful that the achieved silver status from EcoVadis interconnectivity highlighted by the once again. pandemic will inspire us all to build back a better, more inclusive, and environ- We are committed to deeper partner- mentally focused global economy. ship with our customers, suppliers, and service providers in support of The global pandemic highlighted the shared ESG goals and the United need for flexibility and agility, and we are Nations’ Sustainable Development proud that the PaperSeed Foundation Goals. Your feedback, stories of success moved quickly to initiate a rapid and suggestions on how to further our response grant program to support the sustainability aspirations across our education of out-of-school children. value chain are most welcome and we Our employees also prioritized vulnerable look forward to working more deeply children and young people to receive together.

34 35 SUSTAINABILITY SUSTAINABILITY

Sustainability Strategy and Governance

The COVID-19 pandemic challenged global systems in unprecedented ways and while we understand that many challenges remain, we are energized by the opportunity to engage more deeply with our customers, suppliers, and service providers around new ESG initiatives. We look forward to developing shared goals and commitments around the circular economy, resource use, and greater transparency across our supply chain. These areas take work and partnership, and we believe that stakeholder engagement is crucial to our sustainability success.

We continue to work in support of We routinely participate in supply We remain committed to constantly the United Nations’ Sustainable Devel- chain and sustainability assessments looking towards higher standards of opment Goals across our business, and eagerly engage our stakeholders excellence and through our core operations, sustaina- for their expertise, recommendations, responsibility bility metrics, and corporate social knowledge, concerns and priorities. in our policy, responsibility programs. We are proud At CellMark, the governance of sustain- practice and that our sustainability and corporate ability is a shared responsibility between procedures. social responsibility performance the Board of Directors, Management CAPILANO BRIDGE was recognized with a Silver rating from Team, and the Director of Sustainability, Vancouver, Canada EcoVadis again in 2020. along with a cross-functional sustain­ ability task force.

Responsible Business People

CellMark takes the threat of bribery, corruption, and fraud seriously. Compliance is at the heart of our governance structure CellMark is a global company with an engaged and capable workforce. We have created an ecosystem of business from and the CellMark Audit Committee supports the board in all compliance matters (in particular risk management, internal the local to the global thanks to our experienced people, their unique grit, and commitment to surpass expectations. controls, internal audit) and regarding financial reporting and external audits. The Compliance Manager oversees the work During 2020, CellMark continued to refine our processes in support of our Guiding Principles to further harmonize working of the Audit Committee. between divisions, countries, and cultures.

In October 2020, the Board of Directors is called Ethics Point Incident Manage- CellMark Academy, our e-learning We have a balanced workforce with approved and implemented a new ment (short: EPIM) and can be accessed platform, continues to hold an important 52 percent men and 48 percent women, Anti-Bribery/Anti-Corruption/Anti-Fraud on cellmark.com. The new platform place in supporting our employees’ however at the management level we Policy. CellMark Academy, our e-learning allows users to make a new report and professional development, and we continue to hold ambitions to increase platform, launched a new course on follow-up on a previous report. encourage all employees to take gender equality in decision-making this policy in December 2020 to educate advantage of internal training and roles across the organization. Women employees about the new ABCF Policy, In order to explain the purpose, professional development. CellMark currently make up 37 percent of man- and the course is mandatory for all importance, and content of our Code encourages our employees to under- Our GDPR compliant recruiting platform agers and men comprise 63 percent of employees. The Management Team of Conduct, we continue to share our take at least one hour per month of helps to attract the best talent to our managers. supports the goal that 100 percent of Code of Conduct animated video and competence development and training company in a safe, secure, and unified employees will take the course as soon document with our business partners and we adhere to the 70-20-10 method way. The Development & Goal Conver- CellMark will once again survey the as possible and are updated frequently and are recurrently increasing efforts of professional development: 70 percent sations framework continues to be our entire company on motivation and on its progress. CellMark Academy to ensure the adherence to our policies from on-the-job experience, tasks and tool for performance assessment and engagement using the Great Place To also continues to provide employees across our business. problem solving; 20 percent from feed- feedback, where we discuss future Work Survey® in 2021 and we will use the current information on Compliance back, coaching (formal and informal) goals, development plans, and well­ results to more fully understand of our Training, including sanctions checks Also, in 2020 the Board of Directors and networks; 10 percent from formal being of our employees. We have strengths and development areas. and counterpart transparency. Our whistleblower function is still approved and implemented a new classroom courses like e-learning and mandatory training for all employees working well; in 2020, less than 10 reports Modern Slavery Act Statement. CellMark seminars. For new employees, CellMark and employees must complete Code Based on results from our last survey in In 2020, we are proud to report that were received, and none were business is committed to the protection of Academy has a comprehensive on- of Conduct, Know Your Counterpart, 2018, we improved and implemented there were no confirmed incidents related or had a financial impact. human rights and works in support of boarding program where new employ- Anti-Bribery/Anti-Corruption/Anti- tools to support our employees in their of corruption or legal action for anti- We migrated to a new Whistleblower the United Nations’ Sustainable Devel- ees can learn more about CellMark, its Fraud and Information Security Policy daily work. competitive behavior, anti-trust or platform in January 2021. The new tool, opment Goals, which include Goal 8: history, culture, and business areas. training every two years. monopoly practices. which is provided by NAVEX Global, decent work and economic growth.

36 37 SUSTAINABILITY SUSTAINABILITY

Personal Data Community

CellMark builds strong, agile teams of dedicated people with a results-oriented work ethic to align towards common CellMark Cares is the corporate social responsibility program at CellMark and includes: goals. We care about privacy and strive to protect personal data in the best possible way, for our people and our partners. CellMark complies with all applicable laws and regulations for the protection of personal data. • Employee volunteering and community Since the program was initiated in 2019, in order to allow 100 percent of all support. employees have supported 163 non- donations to directly improve the lives During 2020, as countries and cities to continue to receive training without CellMark is aware of the new data • CellMark Cares donations to charities profit organizations in Belgium, Bulgaria, of children and young people around began responding to the COVID-19 disruption while working from home. requirements resulting from the European of employee’s choosing. France, Germany, Greece, Ireland, the world. Over this time period, Cell- crisis by closing offices and shifting to Court of Justice’s decision in the • Support of the PaperSeed Foundation. Japan, Mexico, Poland, Spain, Sweden, Mark is proud to have helped improve remote work, we benefitted from the In 2020, we did not have any substantiated “Schrems II” case. We are compliant Turkey, United Kingdom, United States the lives of over 1,000,000 children advantages of being well prepared complaints regarding data protection with these new changes, and our CellMark supports our employees in of America, and Vietnam. and young people in resource-lacking when new regulations came into force. issues and were not subject to any inves- database is frequently updated and supporting the communities where communities around the world. During the pandemic, “business as tigations, allegations, or legal actions. contains a full register of all relevant they live and work. All employees are Further, CellMark has underwritten usual” was tested, and we are proud data processes. eligible to provide $200 to a qualifying the operations and administration of CellMark believes in the power of to have achieved positive results. There is a dedicated email address non-profit organization annually. the PaperSeed Foundation since 2011 education to break the cycle of poverty. ([email protected]) which CellMark is committed to the data Every year, CellMark employees in Europe is available on our homepage for any- protection principles of lawfulness, are required to receive training on data one, including third parties, that is fairness, transparency, purpose limi­ privacy regulation, and employees in all monitored on a daily basis. Employees tation, data minimization, accuracy, offices are encouraged to participate. are informed that they need to forward storage limitation, integrity, and Because these trainings are offered any form of data protection requests confidentiality.­ digitally, CellMark employees have been to the Compliance Manager.

CellMark maintains the following certifications:

ISO 9001 and supply chain partners who process, certification, education, advocacy, CellMark has a Quality Management formulate, blend, re-package, ware- and promotion. CCOF envisions a world System certified by Scandinavian house, transport, and market chemical where organic is the norm. For further Business Certification (SBcert). It is in products. Members are committed to information, please see www.ccof.org. accordance with the ISO 9001 standard. product stewardship and responsible distribution in every phase of chemical OK KOSHER (K) FSC® storage, handling, transportation, and OK Kosher is the world’s leading The Forest Stewardship Council® is disposal. For more information, please orthodox kosher certification agency, an independent, nongovernmental, see www.nacd.com. recognized as the global benchmark non-profit organization established to for kosher standards and integrity. The promote the responsible management ENPLUS® OK Kosher mark is one of the world’s of the world’s forests. For further In order to offer the same wood pellet best-known trademarks; it immediately information, please see www.fsc.org. quality all over Europe, new European and universally increases company standards for solid biomass fuels marketability, accountability, and kosher PEFC® were introduced in 2011. They included acceptability. For more information, The Programme for the Endorsement a standard for wood pellets, which please see www.ok.org. of Forest Certification (PEFC) promotes ENplus® helped to implement all over sustainable forest management Europe. The ENplus® quality seal QS — environmentally, socially beneficial, accounts for the whole wood pellet QS quality scheme for food covers all and economically viable management supply chain – from production to stages of the food chain. Strict rules of forests for present and future gener- delivery to the final customer, therefore apply to all participating companies ations through independent third-party ensuring high quality as well as trans- in Germany and abroad, for example forest certification. For further parency. For more information, please regarding traceability and hygiene. information, please see www.pefc.org. see www.enplus-pellets.eu. Auditors and independent certification bodies check regularly whether all NACD CCOF requirements are met. For further The National Association of Chemical CCOF is a non-profit organization information, please see www.q-s.de/en. Distributors (NACD) is an international that advances organic agriculture for association of chemical distributors a healthy world through organic

38 39 SUSTAINABILITY ICANA ROPE BRIDGE, PERU

Sustainable Development Goals

CellMark works in support of the United Nations’ Sustainable Development Goals. A BRIDGE 500 YEARS Quality Education and clay bricks, coal briquettes and support. In the past two years, over IN THE MAKING CellMark is a proud partner of the recycled paper. 120 people have gone through their The Incas penetrated the inaccessible PaperSeed Foundation, underwriting program. Our commitment to creating mountain range of South America all operations and administrative Sustainable Cities and Communities sustainable cities can be seen in the using sheer ingenuity. By braiding expenses of the foundation enabling Recycling is one of our core business over 2 million tons of recycled products blades of grass into thin ropes, to 100 percent of donations to go directly areas. We strive to keep waste in the were sourced and traded globally then braid the thin ropes into heavy to helping kids. During 2020, with recycling stream and out of landfill. in 2020. cables, the Incas managed to build CellMark’s support, the PaperSeed We operate five recycling plants in awe-inspiring suspension bridges Foundation worked to strengthen the North America and two further plants Life on Land over deep ravines. Essential to the education of 279,000 children in six as joint ventures. CellMark maintains a broad range of Inca Trails for more than 500 years, countries. third-party certifications, including today only a handful of these bridges During 2020, CellMark extended our those from the Forest Stewardship remain – one of them being this one, Affordable and clean Energy partnership with a non-profit in Seattle Council (FSC®) and the Programme for the Keshwa Chaca, in Peru. CellMark Energy is a global leader in whose mission is to rehabilitate people the Endorsement of Forest Chain of the production, trade, and proliferation struggling with addiction, allowing Custody Standards (PEFC®). These certi- of biomass-based alternative fuels and them to return to their communities as fications demonstrate our commitment waste-to-energy commodities. Further, productive members of society. Cell- to sustainable, intelligently managed in our lignosulphonate commodity trad- Mark has helped them turnaround their forestry, which makes trees a renewable ing, CellMark supports reduced energy operations by providing debt financing, resource and keeps the world’s wood- usage in the production of ceramics hands-on management, training, and lands healthy and productive.

CELLMARK IN PERU Peru is one of many locations where our non-profit partner, the PaperSeed Foundation, has completed important projects to strengthen educational oppor­ tunities for children. In 2012, PaperSeed built a large two-story modern school to accommodate all students in the Cieneguilla community to study in the elementary and junior high school. Moreover, CellMark has one office in Lima, Peru, representing our Paper Division.

40 41 HIGH STEEL BRIDGE, SHELTON

A STEEL BRIDGE BUILT FOR WOOD The High Steel Bridge stretches across the Shokomish River in Mason County, Washington. At 111 meters above sea level, it was the highest railway bridge in America when it was inaugurated in 1929 – exclusively for transporting timber from the Olympic Peninsula. As railway transports ultimately gave way to trucks, High Steel was converted into a road-bridge in 1950. CELLMARK IN SHELTON CellMark has an office of 40-plus employees in Shelton, Connecticut. CellMark’s Chemicals and Paper divisions are represented here.

42 43 GOLDEN BRIDGE, DA NANG HIGHLIGHTS

REACHING FOR THE SKY Over the hills of Vietnamese Bà Nà, a golden arch reaches across the sky. It is the Golden Bridge, a 150 meters long pedestrian bridge that connects the Avatar-garden and the cable car station. It has two giant hands seemingly of stone (but actually constructed of fiberglass and wire mesh) that appear Highlights to be lifting the bridge towards heaven. It has been a very popular tourist attraction since its inauguration in 2018.

1984 2004 2014 Cellulose Marketing International AB CellMark celebrates its 20th anniversary CellMark celebrates its 30th anniversary. is founded in Gothenburg with 21 em- and reaches a sales volume of more Together with Norske Skog we form ployees. Five overseas sales offices than 4 million tons. NorCell Asia. The addition of Sonaco are established. In 1997, the company Trading AB, a Stockholm-based metals name is changed to CellMark. 2006 trading company and AnMar Interna- CellMark now has 37 offices around tional Ltd, a nutraceutical ingredient 1987 the world. We become FSC® and PEFC® company, broadens our network as well CellMark is now 100 percent employee certified. as our product portfolio and service owned. We acquire Pacific Forest Re- capabilities. sources Inc (PacFor), adding packaging 2009 paper and board and recovered paper CellMark celebrates its 25th anniversary 2017 to our existing base in market pulp and and maintains the 5-million-ton record We acquire Semper Exeter in North whitepaper. reached in 2007. We acquire Fibres America, a distributor and converter of International and CellMark Recycling paper, paperboard, plastics, and films. 1990 now operates 10 recycling facilities in A new long-term investor, Ernström & We reach the 1-million-ton mark and sell North America. Co, becomes a shareholder in CellMark our products in 36 markets. In 1991, we adding new skills and direction to the add chemicals to our product portfolio. 2010 company. CellMark acquires Sicutec AB, a supplier 1996 of second-hand machinery and equip- 2018 The 2-million-ton mark is realized. We ment to the pulp and paper industry. Volumes reach 7 million tons and become ISO-9001 certified and acquire CellMark begins reporting on its our first recycling plant. 2011 sustainability practices. A significant acquisition is completed. 1999 With Alcan International Network 2019 During the 1990s, CellMark acquires onboard, CellMark operates two new CellMark celebrates its 35th anniversary American Paper Sales and Perkins divisions: CellMark Chemicals and and publishes its first stand-alone Goodwin in the US and Unifibra in CellMark Metals. Further, the company Sustainability Report. The Energy and Europe. Singapore Pulp Private Ltd acquires NorCell in the USA and Axe Caustic group have their best year ever. (SPPL) is established in Singapore. Papier in France. 2020 2000 2012 We introduce a new division: CellMark Group sales exceed one billion US Several new business lines are Basic Materials, a result of a merger dollars. We acquire Gothia Paper AB established: Basic Chemicals and between our two existing divisions, and Larsson Paper AB. Waste-to-Energy. CellMark is CellMark Metals and CellMark Basic established as a leading supplier Chemicals. We complete the acquisition 2001 of Biomass to energy in France. of Rocky Mountain Recycling Services Over 3 million tons of pulp and paper LLC, a major supplier and valued stra- are sold to over 100 markets. Most tegic partner to our Recycling Division subsidiaries are consolidated under for the last 20 years. the CellMark brand name.

44 45 THE TWIST, KISTEFOS

WHERE FUNCTION MEETS EXPERIENCE Sometimes, there’s more to a bridge than meets the eye. One good example is the covered bridge The Twist in Norway’s sculpture park Kistefos. The Twist is a gallery, a bridge and a sculpture, all in one. Designed by Danish star architects Bjarke Ingels Group, this marvelous structure is cited as a “must-see” cultural destination by The New York Times, Bloomberg, and The Telegraph to name a few.

Photo: Laurian Ghinitoiu

46 47 THEODOR HEUSS BRIDGE, MAINZ HISTORICAL PROGRESS SINCE THE START

FROM CLOSED BORDER TO MULTICULTURAL HOTSPOT There are almost a hundred bridges that cross the long Rhen river. One of them is the Theodor Heuss Bridge, and since 1950 it unites Wiesbaden in the north-east and Mainz in the south-west – an area famous for once comprising the closed northern border of the Roman empire. In fact, the Romans themselves built a preceding bridge here. Historical Tonnage and Sales Development

Tonnage Operating income

Tons MUSD 7 500 000 3 500 7 000 000 6 500 000 3 000 6 000 000 5 500 000 2 500 5 000 000 4 500 000 2 000 4 000 000 3 500 000 1 500 3 000 000 2 500 000 1 000 2 000 000 1 500 000 500 1 000 000 500 000 0 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

48 49 DIRECTORS’ REPORT DIRECTORS’ REPORT

Risk Management Expected Future Development Sustainability Report CellMark has defined the risk in its The world has now lived with the Information about the Company’s business model and has well-developed COVID-19 pandemic for approximately sustainability and corporate social Directors’ Report processes to reduce such risks. The one year. Although various vaccines are responsibility performance can be Group has clear policies to handle credit now offered in the market, it is still too found in the Financial Summary and in risk and currency exposure, inventory early to say when countries will begin CellMark’s stand-alone Sustainability and trading and for investment and to open up. The Board of Directors and Report that can be obtained from the acquisitions. the Management Team are closely Company’s website cellmark.com. monitoring the regional progress and Price and product risks are covered as development of vaccination programs. The financial result as well as the we conclude back-to-back transactions The general view is that CellMark is in operating and financial position of the The Board of Directors hereby submits Significant Events during The composition of the Group with suppliers and customers. CellMark an excellent financial and strategical Group are presented in the following a brief summary of the Group’s consoli- the Financial Year During the year there have been three sells counterpart and political risks in position to continue to be a market income statement and balance sheet, dated financial statements and high- 2020 was an extraordinary year with additions to the Group: CellMark New the insurance and banking markets, leader in the future. cash flow statement and related lights for the financial year 2020. The the COVID-19 pandemic impacting daily Zealand Ltd, Rocky Mountain Recycling where CellMark also covers its foreign supplementary information. statutory Annual Report, including the life globally and forcing the world to Services LLC and Charleston Recycling exchange exposures. CellMark has a financials of the parent company and adapt to new and unexpected chal- Services LLC. The Group holds 100 per- Code of Conduct that all employees complete supplementary information, lenges. At CellMark, we acted quickly cent of the shares in these companies. are obliged to follow. can be obtained from the Company and took decisive actions to ensure CellMark Shanghai Trading Co has been or the Swedish Company Registration that our employees were safe and that liquidated during the year. Hylte Con- Office (“Bolagsverket”). our supply chain remained fully opera- verting AB, Sicutec AB and Worldchem tional. We followed the laws, regulations, Scandinavia AB have all been merged Financial Highlights of the Group (MUSD*) Operations and recommendations in the countries into CellMark AB. Intersales KB has 2020 2019 2018 2017 2016 Founded in 1984, CellMark is a inde- and regions where we operate and been deregistered during the year. pendent marketing and supply chain thanks to a very limited presence in Operating Revenue 2 458 2 944 3 250 2 874 2 664 services company providing products, each office as well as to our employee’s There have been no additional significant Profit after Financial Items 20.9 19.7 16.4 17.3 10.5 services and solutions to customers efforts, we have managed to avoid the events besides what has been stated. Total Assets 818 794 976 891 829 and suppliers all over the world. worst health effects. Although business Equity Ratio (%) 22.5 21.8 17.1 18.9 18.6 could not be conducted as usual, Group Identification CellMark AB, together with subsidiaries investments in our IT environment and CellMark AB is a subsidiary of CellMark *MUSD shall be read as Millions of US Dollars. For definitions see Supplementary Information. and associated companies, markets the digitalization journey that began Investment AB, company registration pulp, paper, packaging, chemicals, several years ago enabled our number 556737-1959. basic chemicals, metals and recycling employees to continue interacting with Changes in Equity (TSEK) products. Services provided to cus­ customers, partners, and colleagues Foreign Branches tomers and suppliers include sourcing, worldwide. The Group has representative offices Other Other Equity Share Minority sales and marketing, exclusive rep- in Poland, Shanghai, Qingdao, Taiwan Added incl. Profit Total Capital Interest resentation, finance, logistics, regulatory For 2020, the Company saw natural cost and Korea. Capital for the Year compliance, business development reductions due to travel restrictions and Balance brought forward 2020-01-01 9 015 40 295 1 558 795 -1 025 1 607 080 and custom chemicals manufacturing. we continued our work on increasing Use of Financial Instruments cost efficiencies. CellMark can show Hedge accounting is conducted in Reclassification Neg. Min. Share -1 156 1 156 0 CellMark has high local presence with volumes that are on par with 2019 accordance with the Group’s financial Actuarial loss Pension Liability -2 751 -2 751 70-plus offices in 30-plus countries. (-0.5 percent). However, falling prices manual and entails the hedging of Translation Difference for the Year -108 364 155 -108 209 have led to a decrease in sales open currency positions against the Dividend Paid -140 000 -140 000 (-18.8 percent), but with a stronger Gross legal entities local accounting. Profit for the Year 149 801 -286 149 515 Margin than last year. Hedging through forward contracts are Amount at Year-End 9 015 40 295 1 456 325 0 1 505 635 used to mitigate currency exposure. Accumulated translation difference amounts to TSEK 142,803 (251,012).

50 51 FINANCIAL SUMMARY FINANCIAL SUMMARY

CONSOLIDATED INCOME STATEMENT CONSOLIDATED BALANCE SHEET 2020 2019 Dec 31, 2020 Dec 31, 2019 SEK (000) USD (000)* SEK (000) USD (000)** Assets SEK (000) USD (000)* SEK (000) USD (000)**

Operating Revenue Fixed Assets Net Sales 22 584 015 2 453 797 27 802 869 2 938 868 Intangible Fixed Assets Capitalized Production Costs 0 0 260 27 Goodwill 50 421 6 158 46 305 4 970 Other Operating Income 42 865 4 657 45 573 4 817 Computer Software 2 384 291 481 52 Total Operating Revenue 22 626 880 2 458 454 27 848 702 2 943 712 Prepayments regarding Intangible Assets 0 0 260 28 Other Intangible Fixed Assets 4 768 582 5 954 639 Operating Expenses Total Intangible Fixed Assets 57 573 7 031 53 000 5 689 Cost of Goods Sold -20 992 367 -2 280 862 -26 120 131 -2 760 996 Other External Costs -349 429 -37 966 -455 122 -48 108 Tangible Fixed Assets Personnel Costs -970 995 -105 501 -936 372 -98 978 Land and Buildings 76 239 9 310 87 441 9 385 Depreciation of Fixed Assets -49 615 -5 391 -46 724 -4 939 Equipment 124 809 15 242 102 076 10 956 Result from Participations in Associated Companies 4 392 477 8 125 859 Total Tangible Fixed Assets 201 048 24 552 189 517 20 341 Total Operating Expenses -22 358 014 -2 429 243 -27 550 224 -2 912 162 Financial Assets Operating Profit 268 866 29 213 298 478 31 550 Participations in Associated Companies 28 983 3 539 47 946 5 146 Other Shares 1 081 132 179 19 Result from Financial Investments Endowment Insurance 24 662 3 012 26 677 2 863 Interest Income 12 469 1 355 72 881 7 704 Other Long-Term Receivables 39 387 4 810 105 771 11 352 Interest Expenses -88 887 -9 658 -185 118 -19 568 Deferred Tax Asset 86 739 10 593 107 329 11 520 Total Result from Financial Investments -76 418 -8 303 -112 237 -11 864 Total Financial Assets 180 852 22 086 287 902 30 900

Profit after Financial Items 192 448 20 910 186 241 19 686 Total Fixed Assets 439 473 53 669 530 419 56 930

Appropriations -3 800 -413 -3 100 -328 Current Assets Tax on Profit for the Year -39 133 -4 252 -65 845 -6 960 Inventory 1 599 764 195 365 2 238 140 240 219 Net Result for the Year 149 515 16 245 117 296 12 398 Current Receivables Attributable to Accounts Receivable - Trade 3 313 379 404 633 3 557 532 381 828 Shareholder of the Parent Company 149 515 16 245 118 104 12 484 Receivables from Parent Company 599 077 73 160 518 775 55 680 Minority Shareholders 0 0 -808 -85 Receivables from Associated Companies 99 049 12 096 17 452 1 873 Income Tax Receivable 3 898 476 4 534 487 *Based on average exchange rate during the year 1 USD = SEK 9.2037 Other Receivables 121 452 14 832 205 884 22 097 **Based on average exchange rate during the year 1 USD = SEK 9.4604 Prepaid Expenses and Accrued Income 101 895 12 443 91 392 9 809 Total Current Receivables 4 238 750 517 640 4 395 569 471 774

Cash and Bank Balances 418 818 51 147 231 082 24 802

Total Current Assets 6 257 332 764 152 6 864 791 736 795

TOTAL ASSETS 6 696 805 817 821 7 395 210 793 725

*Based on closing day rate of exchange 1 USD = SEK 8.1886 **Based on closing day rate of exchange 1 USD = SEK 9.3171

52 53 FINANCIAL SUMMARY FINANCIAL SUMMARY

CONSOLIDATED BALANCE SHEET CONSOLIDATED CASH FLOW STATEMENT Dec 31, 2020 Dec 31, 2019 2020-01-01 2019-01-01 Amounts in TSEK Equity And Liabilities SEK (000) USD (000)* SEK (000) USD (000)** 2020-12-31 2019-12-31 Operating Activities Equity Operating Profit 268 865 298 478 Share Capital 9 015 1 101 9 015 968 Adjustment for Items Excluded from Cash Flow Statement, etc. Other Added Capital 40 295 4 921 40 295 4 325 Depreciation 49 615 46 724 Other Equity 1 306 810 159 589 1 440 691 154 629 Other Adjustments -5 991 -3 853 Profit for the Year 149 515 18 259 118 104 12 676 Currency Exchange Differences -55 775 -5 442 Equity Attributable to Shareholder of the Parent Company 1 505 635 183 870 1 608 105 172 598 Capital Gain/Loss Fixed Assets -16 180 1 899 Minority Interest 0 0 -1 025 -110 240 534 337 806 Total Equity 1 505 365 183 870 1 607 080 172 488 Interest Received 12 469 72 881 Provisions Interest Paid -88 887 -185 118 Deferred Taxes 7 286 890 5 850 628 Income Taxes Paid -12 099 -35 265 Provisions for Pension or similar 144 356 17 629 151 573 16 268 Cash Flow from Operating Activities before Changes in Working Capital 152 017 190 304 Total Provisions 151 642 18 519 157 423 16 896 Cash Flow from Changes in Working Capital Long-Term Liabilities Change in Inventories 638 376 -115 352 Liabilities to Credit Institutions 12 780 1 561 17 652 1 895 Change in Accounts Receivable 244 157 1 347 570 Other Long-Term Liabilities 25 018 3 055 2 093 225 Change in Other Receivables -88 670 -16 552 Total Long-Term Liabilities 37 798 4 616 19 745 2 120 Change in Accounts Payable 47 968 -893 657 Change in Current Liabilities 129 250 -17 082 Current Liabilities Cash Flow from Operating Activities 1 123 098 495 231 Liabilities to Credit Institutions 2 692 412 328 800 3 495 453 375 165 Accounts Payable - Trade 1 355 421 165 526 1 307 453 140 328 Investing Activities Liabilities to Associated Companies 27 507 3 359 22 284 2 392 Purchase of Intangible Fixed Assets -3 680 -3 093 Income Tax Liability 53 718 6 560 37 127 3 985 Purchase of Tangible Fixed Assets -88 869 -26 893 Other Current Liabilities 127 401 15 558 208 268 22 353 Purchase of Financial Assets 0 -2 841 Accrued Expenses and Prepaid Income 745 271 91 013 540 377 57 998 Purchase of Subsidiaries 0 1 Total Current Liabilities 5 001 730 610 816 5 610 962 602 221 Sale of Tangible Fixed Assets 44 502 0 Sale of Financial Assets 2 538 0 TOTAL EQUITY AND LIABILITIES 6 696 805 817 821 7 395 210 793 725 Dividend Received 15 624 19 276

*Based on closing day rate of exchange 1 USD = SEK 8.1886 Change in Long Term Receivables 67 497 9 864 **Based on closing day rate of exchange 1 USD = SEK 9.3171 Cash Flow from Investing Activities 37 612 -3 686

Financing Activities Change in Other Long-Term Liabilities -1 641 223 Change in Loan from Credit Institutions etc -807 913 -487 828 Group Contributions -3 100 -22 200 Dividend paid out -140 000 -38 763 Cash Flow from Financing Activities -952 654 -548 568

Net Change in Cash and Cash Equivalents 208 056 -57 023 Cash and Cash Equivalents Beginning of the Year 231 082 282 076 Exchange Rate Difference in Cash and Cash Equivalents -20 320 6 029 Cash and Cash Equivalents End of the Year 418 818 231 082

Cash Flow from Purchase of Subsidiaries Purchase Price Paid 16 1 399 Cash and Cash Equivalents in Purchased Companies -16 -1 398 Cash Flow from Purchase of Subsidiaries 0 1

54 55 TOLERANCE BRIDGE, DUBAI

CELLMARK IN DUBAI A CellMark sales office for the Middle East was established in Dubai in 1997. CellMark reached 39 overseas sales offices this same year.

A BRIDGE TO CROSS ALL DIVIDES The residents of the UAE come from over 200 countries – what better place to erect the Bridge of Tolerance? This grand symbol of the never- ending importance of peaceful co-existence and cultural unity connects both sides of the Dubai Water Canal since 2017. It is actually the only clear span suspension bridge in the Middle East, and hosts many artistic and community programs throughout the year.

56 57 SUPPLEMENTARY INFORMATION SUPPLEMENTARY INFORMATION

Recognition of Leases Income Tax performance increases in proportion Leases that means that the economic Current tax is income tax the financial to the asset’s value. risks and benefits in its substantial has year and relates to the taxable profit been transferred from the lessor to a for the year and the share of income Expenditures for repairs and mainte- Group Company classifies as finance tax for previous financial years that has nance are expensed. lease. Assets that are leased via finance not yet been recognized. leases are accounted for as tangible Depreciation according to plan is fixed assets while future leasing fees Deferred tax is income tax on taxable computed as follows: are recorded as liabilities. profit relating to future financials years Computer equipment 20 % as a result of past transactions or Other equipment 20 % Accounting and When a lease is first recognized, the events. Buildings 2–4 % asset and the liability are recognized Goodwill 10–20 % as the present value of the future Deferred tax is calculated on the basis Other intangible assets 10–20 % minimum leasing fees and any residual of temporary differences. A temporary value. When calculating the present difference arises when the book value In cases where depreciation of good- Valuation Principles value of the minimum leasing fees, the of an asset or a liability differs from its will is longer than 5 years, assessment implicit interest rate of the agreement value for tax purposes. Temporary has been made that the overvalue is used. Operating leases are recog- differences are not taken into account from acquisitions contains business nized as a cost linearly over the period in the case of differences attributable relations and contracts that creates of the lease. to investments in subsidiaries, affiliated opportunities extending 6-10 years. companies, associated companies, Remuneration to Employees or joint ventures if the company can Financial Instruments Postemployment dictate the time of the reversal of the All financial instruments are measured The parent company and the group temporary difference and it is not and recognized based on acquisition The annual report has been prepared Participations in associated companies Receivables and Liabilities in have both defined contribution and evident that the temporary difference cost in accordance with the rules of according to the Swedish Annual have been reported according to the Foreign Currency defined benefit pension plans. Pension will be reversed within the foreseeable chapter 11, in BFNAR 2012: 1. Financial Accounts Act and BFNAR 2012:1 Annual equity method. Companies where Receivables and liabilities in foreign plans classified as defined contribution future. Difference attributable to the instruments recognized in the balance Accounts and Consolidated Accounts CellMark holds between 20 percent currency have been translated at the plans are those where fixed fees are initial recognition of goodwill do not sheet include accounts receivable and (K3). The accounting principles are and 50 percent of the voting rights are rate of exchange at year-end. The paid and there is no obligation to make comprise temporary differences. other receivables, accounts payable, unchanged compared to the prior year. treated as associated companies. difference between the acquisition value any payments other than said fixed loans and derivatives. The instruments The equity method means that the and the value at year-end has been fees. Defined benefit plans are Deferred tax receivables relating to are recognized in the balance sheet Consolidated Financial Statements acquisition cost for the shares, adding accounted for as income/expense. accounted for in accordance with deficit deductions or other future de- when the company becomes a part in The consolidated income statement and the change in the associated company’s Receivables and liabilities that have paragraphs 57-131 of the International ductibles for tax purposes are recog- the instrument’s contractual terms. balance sheet include all companies equity after the date of acquisition, been sold forward have been valued Accounting Standard IAS 19 Employee nized to the extent that it is probable in which the parent company directly is accounted for under the heading at the closing rate. Benefits. Fees for defined contribution that the deductions can be set off Accounts receivable and or indirectly holds more than 50 percent “Participations in Associated Companies” plans are recognized as a cost for the against future taxable surpluses. other receivables of the shares or voting rights. in the consolidated balance sheet. Income Recognition period in which the employees render Receivables are recognized as current Income is recorded at the fair value of the services from which the obligation Fixed Assets assets, except for receivables with All acquisitions of companies have been The current method has been used in the amount the company has received stems. The Group records defines Fixed assets are accounted for at the due dates more than 12 months after recorded according to the purchase translating the income statements and or expects to receive. Deductions benefit obligations in compliance with acquisition cost with deduction for balance sheet date which are classified method. Untaxed reserves reported in balance sheets in foreign subsidiaries are made for any discounts that are the exemption rule of BFNAR 2012:1 28.22. depreciation according to plan. The as fixed assets. Receivables are the individual group companies are into Swedish kronor. All assets and provided. acquisition value includes expenditure recorded at the amount expected to be divided in the consolidated balance liabilities in the foreign subsidiaries’ The parent company and the group that is directly attributable to the paid after deductions for individually sheet as a capital part and a tax part. balance sheets have been translated In the sales of goods, income is gen­ have defined benefit plan obligations acquisition of the asset. assessed doubtful receivables. The capital part has been accounted at year-end rate and all items in the erally recognized when the significant that are exclusively dependent on the for under equity. The tax part is income statements have been trans- benefits and risks associated with the value of the endowment insurance When a component in a fixed assets is Loan liability and accounts payable accounted for as an allocation under lated using the average rate of the ownership of the goods have been policies held by the company and the replaced, any remaining part of the old Loan liability and accounts payables deferred taxes. year. Translation differences arising transferred from the company to the group. Endowment insurance policies component will be disposed and the are recognized initially at acquisition have been entered directly as equity. buyer. are recorded as financial assets. In new component is activated. value after deductions for transaction Companies acquired during the compliance with the exemption rule of costs. If the reported amount differs year have been consolidated from Interest income is recorded as income BFNAR 2012:1, pension obligations are Additional expenditures related to from the amount expected to be acquisition date. in accordance with the effective rate recognized as a provision of equal value assets that are not divided into com- repaid on the due date the difference method. to the book value of the concerned ponents are added to the acquisition is treated as interest expense over the endowment insurance policy. value to the extent that the asset’s term of the loan using the instrument’s

58 59 SUPPLEMENTARY INFORMATION AUDITORS’ REPORT

effective interest rate. Hereby on Cash Flow Statement Definition of key ratios The financial information, which comprises a brief summary of the of the Group’s consolidated financial statements and maturity date the reported amount The cash flow statement has been pre- Operating Revenue highlights for the financial year 2020, on pages 50–60 is translated and retrieved from parts of parent company CellMark will be consistent with the expected pared in accordance with the indirect Main revenue from operations, AB’s Annual accounts which the board of the company has submitted for the financial year 2020. The Auditors’ Report amount to be repaid. method. The reported cash flow only invoiced expenses, incidental revenue below is a translation of the Auditors’ Report KPMG has submitted regarding the complete Annual accounts for 2020. includes transactions that have resulted and corrections to revenue This translation does not constitute the Auditors’ report submitted by KPMG, which for example means that it is not signed. Documented hedges of in payments made or received. Besides The Auditors’ Report in relation to the complete CellMark AB’s Annual accounts can be obtained from the Company or the financial assets and liabilities cash, the company classifies the follow- Profit after Financial Items Swedish Company Registration Office (“Bolagsverket”). in foreign currency (hedge) ing as liquid funds: available balances Profit after financial income and CellMark utilizes foreign exchange for- at the bank and other credit institutions expenses, but before extraordinary ward contracts to manage the currency as well as short-term liquid investments income and expenses risk arising from the purchase and sales listed on a major exchange that have a in foreign currency. For these transac- shorter maturity than 3 months from the Total Assets tions normally hedge accounting are date of acquisition. Restricted funds The company’s total assets applied. When the transaction is con- are not classified as cash. Changes in Auditors’ Report cluded, the relationship is documented restricted funds are reported in invest- Equity Ratio (%) between the hedging instruments and ing activities. Shareholder’s equity as a percentage To the Annual General Meeting of the shareholders of CellMark AB, corp. id 556244-2433 hedged items, as well as the Group’s of total assets risk management objectives and risk Estimates and assessments management strategy for hedging. When preparing financial statements and applying accounting principles, Gothenburg, April 20, 2021 Auditing (ISA) and generally accepted In connection with our audit of the Currency forward contracts protect management is often required to make REPORT ON THE ANNUAL auditing standards in Sweden. Our annual accounts and consolidated against fluctuations in exchange rates assessments, estimates and assump- Mr Henrik Forsberg Schoultz responsibilities under those standards accounts, our responsibility is to read as the contract determining the rate at tions that are deemed as being reason- Chairman of the Board ACCOUNTS AND are further described in the Auditors’ the information identified above and which the asset or liability in foreign able at the time. Estimates and assess- Responsibilities section. We are inde- consider whether the information is currency will be realized. When hedging ments are based on prior experience Mr Thomas Hedberg CONSOLIDATED ACCOUNTS pendent of the parent company and materially inconsistent with the annual of these transactions take place, and a number of other factors, which, the group in accordance with profes- accounts and consolidated accounts. hedging instrument is revalued due to given the circumstances, are deemed Mr Victor E Rice Opinions sional ethics for accountants in Sweden In this procedure we also take into changed currency exchange rates and as being reasonable. The results of this We have audited the annual accounts and have otherwise fulfilled our ethical account our knowledge otherwise currency future contracts are reported are used to assess the carrying Ms Sara Murray and consolidated accounts of CellMark responsibilities in accordance with obtained in the audit and assess in the balance sheet. The entire effect amounts of assets and liabilities, when AB for the year 2020. these requirements. whether the information otherwise of changes in exchange rates adjust the the exact amounts are not possible to Mr Ola Cronholm appears to be materially misstated. value of the asset or liability hedging obtain from other sources. In our opinion, the annual accounts We believe that the audit evidence related. Mr Jimmy Derrico and consolidated accounts have been we have obtained is sufficient and If we, based on the work performed The actual outcome could differ from prepared in accordance with the appropriate to provide a basis for our concerning this information, conclude Inventory these estimates and assessments. The Mr Doug Smith Annual Accounts Act, and present fairly, opinions. that there is a material misstatement of Inventories have been valued at the estimates and assumptions that have a in all material respects, the financial this other information, we are required lower of cost or market, i e the lower of significant risk of material adjustments Mr Christer Simrén position of the parent company and Other Information than the annual to report that fact. We have nothing to the acquisition value and the estimated to the values of assets and liabilities President & CEO the group as of 31 December 2020 and accounts and consolidated accounts report in this regard. net sales value. Net sales value refers to within the next year are outlined the their financial performance and cash The Board of Directors and the CEO are the goods estimated selling price less values of assets and liabilities within the flow for the year then ended in accord- responsible for the other information. Responsibilities of the Board of selling costs. next year are outlined: ance with the Annual Accounts Act. The The other information comprises Directors and the CEO statutory administration report is con- “Financial Summary 2020” (but does The Board of Directors and the CEO Provisions Inventory obsolescence is made based sistent with the other parts of the annual not include the annual accounts are responsible for the preparation of Provisions are recognized when there on individual assessment. accounts and consolidated accounts. and consolidated accounts and our the annual accounts and consolidated is a legal or informed obligation as auditors’ report thereon) that we accounts and that they give a fair a result of a past event, it is probable Bad Debt for accounts receivable is We therefore recommend that the expect to be provided with after the presentation in accordance with the that an outflow of resources will be made based on individual assessment. general meeting of shareholders adopts signing of this auditors’ report. Annual Accounts Act. The Board of required to settle the obligation, and the income statement and balance Directors and the CEO are also respon- a reliable estimate of the amount can Provisions for disputes are made if the sheet for the parent company and the Our opinion on the annual accounts sible for such internal control as they be made. The time or the amount of outcome is expected to be negative. group. and consolidated accounts does not determine is necessary to enable the the outflow may remain uncertain. cover this other information and we preparation of annual accounts and Estimates and assumptions are Basis for Opinions do not express any form of assurance consolidated accounts that are free regularly reviewed. We conducted our audit in accordance conclusion regarding this other infor- from material misstatement, whether with International Standards on mation. due to fraud or error.

60 61 AUDITORS’ REPORT AUDITORS’ REPORT

In preparing the annual accounts and from error, as fraud may involve collu- • Obtain sufficient and appropriate accordance with professional ethics for Directors or the CEO in any material As a basis for our opinion on the Board consolidated accounts The Board of sion, forgery, intentional omissions, audit evidence regarding the financial accountants in Sweden and have other- respect: of Directors’ proposed appropriations Directors and the CEO are responsible misrepresentations, or the override of information of the entities or business wise fulfilled our ethical responsibilities • has undertaken any action or been of the company’s profit or loss we for the assessment of the company’s internal control. activities within the group to express in accordance with these requirements. guilty of any omission which can give examined the Board of Directors’ and the group’s ability to continue as • Obtain an understanding of the an opinion on the consolidated rise to liability to the company, or reasoned statement and a selection of a going concern. They disclose, as company’s internal control relevant accounts. We are responsible for the We believe that the audit evidence • in any other way has acted in supporting evidence in order to be applicable, matters related to going to our audit in order to design audit direction, supervision and perfor- we have obtained is sufficient and contravention of the Companies Act, able to assess whether the proposal is concern and using the going concern procedures that are appropriate in mance of the group audit. We remain appropriate to provide a basis for our the Annual Accounts Act or the in accordance with the Companies Act. basis of accounting. The going concern the circumstances, but not for the solely responsible for our opinions. opinions. Articles of Association. basis of accounting is however not purpose of expressing an opinion on applied if the Board of Directors and the the effectiveness of the company’s We must inform the Board of Directors Responsibilities of the Board of Our objective concerning the audit of Gothenburg, April 30, 2021 CEO intend to liquidate the company, internal control. of, among other matters, the planned Directors and the CEO the proposed appropriations of the to cease operations, or has no realistic • Evaluate the appropriateness of scope and timing of the audit. We must The Board of Directors is responsible company’s profit or loss, and thereby Signed on the Swedish original alternative but to do so. accounting policies used and the also inform of significant audit findings for the proposal for appropriations of our opinion about this, is to assess with reasonableness of accounting during our audit, including any signifi- the company’s profit or loss. At the reasonable degree of assurance Johan Pauli Auditors’ responsibility estimates and related disclosures cant deficiencies in internal control that proposal of a dividend, this includes whether the proposal is in accordance Authorized Public Accountant Our objectives are to obtain reasonable made by the Board of Directors we identified. an assessment of whether the dividend with the Companies Act. assurance about whether the annual and the CEO. is justifiable considering the require- Filip Larsson accounts and consolidated accounts • Conclude on the appropriateness ments which the company’s and the Reasonable assurance is a high level Authorized Public Accountant as a whole are free from material of the Board of Directors’ and the group’s type of operations, size and of assurance, but is not a guarantee misstatement, whether due to fraud or CEO’s, use of the going concern basis REPORT ON OTHER risks place on the size of the parent that an audit conducted in accordance error, and to issue an auditors’ report of accounting in preparing the annual company’s and the group’s equity, with generally accepted auditing that includes our opinions. Reasonable accounts and consolidated accounts. LEGAL AND REGULATORY consolidation requirements, liquidity standards in Sweden will always detect assurance is a high level of assurance, We also draw a conclusion, based and position in general. actions or omissions that can give but is not a guarantee that an audit on the audit evidence obtained, as REQUIREMENTS rise to liability to the company, or that conducted in accordance with ISAs to whether any material uncertainty The Board of Directors is responsible the proposed appropriations of the and generally accepted auditing exists related to events or conditions Opinions for the company’s organization and the company’s profit or loss are not in standards in Sweden will always detect that may cast significant doubt on In addition to our audit of the annual administration of the company’s affairs. accordance with the Companies Act. a material misstatement when it exists. the company’s and the group’s ability accounts and consolidated accounts, This includes among other things con- Misstatements can arise from fraud or to continue as a going concern. If we we have also audited the administration tinuous assessment of the company’s As part of an audit in accordance with error and are considered material if, conclude that a material uncertainty of the Board of Directors and the CEO and the group’s financial situation and generally accepted auditing standards individually or in the aggregate, they exists, we are required to draw of CellMark AB for the year 2020 and ensuring that the company’s organiza- in Sweden, we exercise professional could reasonably be expected to influ- attention in our auditors’ report to the proposed appropriations of the tion is designed so that the accounting, judgment and maintain professional ence the economic decisions of users the related disclosures in the annual company’s profit or loss. management of assets and the com- scepticism throughout the audit. The taken on the basis of these annual accounts and consolidated accounts pany’s financial affairs otherwise are examination of the administration and accounts and consolidated accounts. or, if such disclosures are inadequate, We recommend to the general meeting controlled in a reassuring manner. the proposed appropriations of the to modify our opinion about the annual of shareholders that the profit be company’s profit or loss is based As part of an audit in accordance with accounts and consolidated accounts. appropriated in accordance with the The CEO shall manage the ongoing primarily on the audit of the accounts. ISAs, we exercise professional judgment Our conclusions are based on the proposal in the statutory administration administration according to the Board and maintain professional scepticism audit evidence obtained up to the report and that the members of the of Directors’ guidelines and instructions Additional audit procedures performed throughout the audit. We also: date of our auditors’ report. However, Board of Directors and the CEO be dis- and among other matters take meas- are based on our professional judg- • Identify and assess the risks of future events or conditions may cause charged from liability for the financial ures that are necessary to fulfill the ment with starting point in risk and material misstatement of the annual a company and a group to cease to year. company’s accounting in accordance materiality. This means that we focus accounts and consolidated accounts, continue as a going concern. with law and handle the management the examination on such actions, areas whether due to fraud or error, design • Evaluate the overall presentation, Basis for Opinions of assets in a reassuring manner. and relationships that are material for and perform audit procedures structure and content of the annual We conducted the audit in accordance the operations and where deviations responsive to those risks, and obtain accounts and consolidated accounts, with generally accepted auditing Auditors’ responsibility and violations would have particular audit evidence that is sufficient and including the disclosures, and whether standards in Sweden. Our responsibili- Our objective concerning the audit of importance for the company’s situation. appropriate to provide a basis for our the annual accounts and consolidated ties under those standards are further the administration, and thereby our We examine and test decisions under- opinions. The risk of not detecting a accounts represent the underlying described in the Auditors’ Responsibili- opinion about discharge from liability, taken, support for decisions, actions material misstatement resulting from transactions and events in a manner ties section. We are independent of the is to obtain audit evidence to assess taken and other circumstances that fraud is higher than for one resulting that achieves fair presentation. parent company and the group in with a reasonable degree of assurance are relevant to our opinion concerning whether any member of the Board of discharge from liability.

62 63 HANS WILSDORF BRIDGE, GENEVA BOARD OF DIRECTORS

Board of Directors

Mr Henrik Forsberg Schoultz Chairman of the Board

Mr Thomas Hedberg

Mr Victor E Rice

Ms Sara Murray

Mr Ola Cronholm

Mr Jimmy Derrico

Mr Doug Smith

Mr Christer Simrén President & CEO

BRIDGING THE DISTANCE BETWEEN TIME, ART, AND ARCHITECTURE The spiral steel bridge Hans Wilsdorf Bridge across the river Arve uses interlaced elliptic rings to link the two CELLMARK IN GENEVA river banks of Arve in Geneva. Built on the legacy of the One of CellMark’s first overseas founder of Rolex, the Hans Wilsdorf Bridge is the result of offices was established in groundbreaking collaborations between expert groups Geneva. Establishing this office fusing aesthetic expressions with innovative engineering. was an important step in our Best seen at night, when the project turns into a work of company’s journey to expand its art that surpasses all expectations. global presence.

64 65 ÄLVSBORG BRIDGE, GOTHENBURG

UNITING SWEDEN’S LARGEST PORT CITY Gothenburg faced several challenges trying to unite a city divided by its port entrance. In order to accommodate increased travelling and industrial development, the Älvsborg Bridge was erected 1963–1966, becoming Sweden’s longest bridge at the time. Over 250,000 vehicles cross Älvsborg Bridge on a daily basis, making it an essential route for citizens and companies alike.

CELLMARK IN GOTHENBURG In Gothenburg, on July 2, 1984, our “original 21” had a dream of a new alternative for the international marketing and distribution of forestry products for the global pulp and paper industry. Collectively, they had many years of experience in international trade and impressive competence in every major market. They were ready to take on the world – and formed Cellulose Marketing International, later shortened to CellMark. Today our head office is located in this beautiful city.

Photo: Christer Larsson

66 67 OUR OFFICES OUR OFFICES

ASIA EUROPE

CellMark Asia Pte Ltd, Thailand CellMark AB, Rep Office CellMark Shanghai Co Ltd CellMark Kimya Tic AS CellMark AB CellMark Netherlands B.V. 2589 Soi Laprado 91, Khlong Chaokhunsing, Alfalah Town Lahore Cantonment 198 A, Block B Unit 3501, T1 Building, SOHO Tian Shan, 1717 Tian Fener Mahallesi 1943 sokak P O Box 11927 CellMark Recycling European Main Office Wang Thonglang, Bangkok 10310, Thailand Lahore, Pakistan Shan Road, Changning District, 200050 Shanghai, Mulumulu sitesi 13/a SE-404 39 Gothenburg, Sweden Bargelaan 182K Peoples Republic of China Muratpasa, Antalya, Turkey 2333 CW Leiden, The Netherlands CellMark Packaging CellMark Basic Materials Courier delivery address: Ananya Tang Phone: +92 307 4903 606 Phone: +86 21 6473 0266 CellMark Basic Materials Lilla Bommen 3C, 6th floor CellMark Recycling Mobile: +66 817316005 Phone: +92 42 35894 039 Fax: +86 21 6473 0030 Phone: +90 216 337 10 60 SE-411 04 Gothenburg, Sweden Phone: +31 62 81 32 488 [email protected] [email protected] [email protected] CellMark Packaging Phone: +46 31 100300 [email protected] Fax: +46 31 136421 CellMark Iberica, S.L. Madrid CellMark Thailand Co Ltd. CellMark India Pvt Ltd CellMark Pulp CellMark Hellas Single Member S.A. CellMark Pulp Calle Lira 1 Escalera Centro 1°C 2024/139-140 Rimtangrodfai Road, Phra Khanong, Damji Shamji Corporate Square B Winig, Unit No. 707, [email protected] 26 Mylopotamou Str. & 4 Tsokatou Str. [email protected] 28007 Madrid, Spain Klong Toei, Bangkok 01260, Thailand 7th floor Andheri Link Road, Laxmi Nagar, GR- 115 26 Athens, Greece CellMark Recycling CellMark Paper CellMark Paper Ghatkopar (East), Mumbai – 400075, India CellMark Pulp [email protected] Phone: +30 210 6982 560 [email protected] Phone: +34 910523360 [email protected] CellMark Chemicals Fax: +30 210 6990 605 CellMark Paper CellMark Packaging Phone: +91 (22) 2500 5676, +91 (22) 2500 5677 CellMark Recycling [email protected] CellMark Chemicals [email protected] Mobile: +91 932 225 6670 CellMark Italy Srl Phone: +66 23331300 [email protected] Fax: +91 22 2852 6596 CellMark Basic Materials CellMark Basic Materials Largo De Benedetti 2 Fax: +66 23331299 [email protected] [email protected] CellMark Basic Materials [email protected] 20124 Milano, Italy [email protected] CellMark Basic Materials CellMark Chemicals CellMark Energy CellMark Basic Materials CellMark Vietnam Company Limited Rahul Mendiratta [email protected] [email protected] Phone: +39 02 668 931 8th floor, No #58 Vo Van Tan Street Ward 6 Phone: +91 981 089 00 89 Fax: +39 02 66893222 District 3 Ho Chi Minh City, Vietnam [email protected] CellMark Iberica SL [email protected] Carrer Pere I Pons, Nº 9-11, Floor 12, CellMark Asia Pte Ltd CellMark Basic Materials Rep Office CellMark Energy P3 Es-08034 Barcelona, Spain CellMark Chemicals 11 Beach Road, Crasco Building #01-01 Van Der Zaenlaan 5 Phone: +84 28 3636 1806 [email protected] CellMark Shanghai Co Ltd, Qingdao Singapore 189675 CellMark Basic Materials 1215 SG Hilversum, The Netherlands Mobile: +84 (0) 979 032 828 Room 402, Unit 1, Building 2 Phone: + 34 93 494 99 02 Fax: +84 28 3636 1807 Phone: +65 6737 1137 Phone: +31 35 623 89 67 HengYiHuiXinYuan, No.22 Liaoyang East Road Fax: +34 93 419 9280 [email protected] Fax:+ 65 67378762 Fax: +31 35 624 32 05 CellMark AB Rep Office Laoshan District, Qingdao, [email protected] [email protected] Zetlitz’ Gate 5a CellMark Pulp Peoples Republic of China CellMark Chemicals CellMark Chemicals 0165 Oslo, Norway Phone: +84 28 3636 1806 Phone +65 6603 1288 CellMark Basic Materials Phone: + 34 93 494 99 02 Mobile: +84 (0) 979 032 828 [email protected] CellMark Pulp, Caustic Soda Nordics Phone: +86 13 9698 72227 Fax: +34 93 419 9280 Fax: +84 28 3636 1807 CellMark Kimya Tic AS Laila Bogen Fax: +86 53 2839 35279 CellMark Basic Materials [email protected] Altayçeşme Mah. Zuhal Sok. No. 22 [email protected] [email protected] [email protected] Phone: +65 660 31283 Niyazibey İş Merkezi, D:6 CellMark Paper CellMark Basic Materials [email protected] Mobile: +65 9755 2554 34843 Maltepe, Istanbul, Turkey Phone: +34 93 414 5887 Phone: +84 28 3636 1806 [email protected] Fax: +34 93 414 4535 Mobile: +84 398 837 977 CellMark Basic Materials CellMark France SAS [email protected] Fax: +84 28 3636 1807 CellMark Asia Pte Ltd, Qingdao Rep Office CellMark Packaging Ilker Ozturk 182 Avenue Charles de Gaulle [email protected] Room 1103, 11/F, A Tower Vanke Centre [email protected] Phone: +90 216 337 1060 FR- 92200 Neuilly-sur-Seine, Cedex, Paris, France Fax: +90 216 337 1061 No 2 Heilongjiang South Road CellMark Recycling CellMark Chemicals CellMark Packaging CellMark Deutschland GmbH [email protected] 266035 Qingdao, Peoples Republic of China [email protected] Phone: +33 171 113791 Phone: +84 28 3636 1806 Parsevalstraße 9a [email protected] [email protected] Mobile: +84 944 244 166 CellMark Paper CellMark Pulp 40468 Düsseldorf, Germany Fax: +84 28 3636 1807 Phone: +86 532 8077 1236/7/8 [email protected] CellMark Chemicals [email protected] Fax: +86 53 2807 71239 CellMark AB Rep Office CellMark Paper Phone: +49 211 52380 [email protected] Ulica Kobylinskiego 5/2 CellMark Papier SAS [email protected] Fax: +49 211 5238 300 ZAC du Gué Langlois 10 Avenue du Gué Langlois 40-026 Katowice, Poland [email protected] FR-77600 Bussy Saint Martin, Paris, France CellMark Raw Materials AB Rep Office CellMark Energy CellMark Basic Materials RM 1804 18/F, OfficePlus@Wan Chai, CellMark Korea Co Ltd [email protected] CellMark Recycling CellMark Paper Phone: +48 32 785 71 14 303 Hennessy Road, Wan Chai, Hong Kong 7F, Tower 8, Jong-ro 5 gil, Nick Scheepens Phone: +33 1 4881 0058 Fax: +48 32 785 71 12 7 Jongno-gu 13157, Seoul, Republic of Korea Phone: +31 628 132 488 CellMark Basic Materials [email protected] [email protected] Phone: +852 2882 1684 CellMark Basic Materials NorCell Asia Fax: +852 2882 1296 Phone: +82 2 575 7550 11 Beach Road, Crasco Building #01-01 CellMark Chemicals Ltd [email protected] Mobile: +82 10 5646 2922 Singapore, 189675 CellMark AB Rep Office Regal Court 42-44 High Street CellMark SA Slough-Berkshire, SL1 1EL, United Kingdom Fax: +82 2 6226 8205 Jovana Jovanovića Zmaja 51 Phone: +65 6327 4188 1 Rue Pedro Meylan [email protected] 23300 – Kikinda, Serbia Mobile: +65 9338 4880 CH-1208 Geneva, Switzerland CellMark Chemicals CellMark Asia Pte Ltd, Indonesia [email protected] Phone: +44 1753 245 530 CellMark Energy CellMark Basic Materials CellMark Pulp Fax: +44 1753 245531 CellMark Packaging Phone: +82 2 575 7550 Phone:+381 (0) 69 5025 800 Phone: +41 22 7074102 [email protected] Mobile: +65 9828 0435 Mobile: +82 10 5135 2057 [email protected] Fax: +41 22 7000062 [email protected] Fax: +82 2 6226 8205 CellMark Australia Pty Ltd [email protected] Suite COM 15, Pittwater Place 10 Park Street CellMark Recycling Mona Vale, NSW 2103, Australia CellMark Deutschland Gmbh CellMark Raw Materials AB Mobile: +65 98280435 CellMark Chemicals CellMark Belgium Nv Birger Jarlsgatan 75 Phone: +82 2 575 7550 CellMark Recycling Sp Zoo Oddzial W Polsce [email protected] Verlorenbroodstraat 63b 11356 Stockholm, Sweden Ul Cystersow 9 PL-31-553 Krakow, Poland Mobile: + 82 10 9164 0515 Phone: +61 2 99982300 BE-9820 Merelbeke, Ghent, Belgium Fax: +82 2 6226 8205 Fax: +61 2 99982399 CellMark Basic Materials CellMark Chemicals [email protected] [email protected] CellMark Basic Materials Phone: +46 8 765 2801 CellMark Asia Pte Ltd, Malaysia Phone: +48 12 370 87 62 Phone: +32 9 218 7180 Fax: +46 8 765 2805 No 5, Lorong CP5/46 Fax: +48 12 638 08 92 Fax: +32 9 233 0831 [email protected] Cheras Perdana 43200, Cheras, Selangor, Malaysia [email protected] CellMark AB, Shanghai Rep Office CellMark Asia Pte Ltd Taiwan Rep Office [email protected] CellMark Packaging Unit 3501, T1 Building, SOHO Tian Shan, 11F-8, No. 58 Min Chung East Road, Sec.3 Phone: +60 123 094 840 1717 Tian Shan Road 104678 Taipei, Taiwan, R.O.C. CellMark UK Ltd [email protected] Changning District, 200050 Shanghai, CellMark Pulp 19b Low Moor Side Lane Peoples Republic of China Roger Lo New Farnley, Leeds, LS12 5EH, United Kingdom Phone: +86 21 6473 0266 Phone: +886 955 955 499 CellMark Paper Fax: +86 21 6473 0030 [email protected] Phone: + 44 7889 190 048 Fax: +44 19977 553 556 CellMark Japan 7F, Shinjuku I-LAND Tower 6-5-1, Nishi-Shinjuku, Shinjuku-ku Tokyo 163-1307 Phone: +81 3 3349 6600 Fax: +81 3 3344 4392 68 69 OUR OFFICES OUR OFFICES

MIDDLE EAST NORTH AMERICA

CellMark Middle East LLC CellMark Inc CellMark Inc CellMark Paper Inc CellMark USA, LLC Cascell Trading Group 201 Al Reem Tower, Al Maktoum Street 6500 River Place Blvd 16 North Franklin Street # 205 2043 Tenoga Drive PO Box 1626 12343 104 Ave Unit C P O Box 32436 Building 7, Ste 250 Doylestown, PA 18901, USA Mississauga, ON L5H 3KI, Canada One Blue Hill Plaza – 10th Floor Surrey, BC V3W 3H2, Canada Dubai, United Arab Emirates Austin, TX 78730 Pearl River, NY 10965, USA CellMark Recycling CellMark Pulp CellMark Recycling Pulp, Recycling, Basic Materials CellMark Recycling Phone: +1 215 8221914 Phone: +1 905 9903940 CellMark Basic Materials Phone: +1 604 9309170 Phone: +971 42271716 Kevin Baker Fax: +1 215 8221915 Fax: +1 815 3465271 Phone: +1 203 251 9056 Fax: +1 604 9309170 Fax: +971 42272574 Phone: +1 415 465 0626 Fax: +1 203 541 9378 [email protected] [email protected] [email protected] [email protected] [email protected] Sunset Trading CellMark Inc 450 Rock Springs 5 Krysta Court Sunset Trading Birmingham Recycling & Recovery LLC Kingsport, TN 37663, USA Mount Laurel, NJ 08054, USA Rocky Mountain Recycling Services, LLC 500 West Eight Street Suite 120 #9 41st Street South 2950 W 900 S Vancouver, WA, 98660, USA CellMark Recycling CellMark Recycling Birmingham, AL 35222, USA Salt Lake City, UT 84104, USA Phone: +1 423 5025730 Phone: +1 856 2357162 CellMark Recycling CellMark Recycling Fax: +1 423 7651961 Fax: +1 856 2357164 CellMark Recycling Phone: +1 360 546 3679 OCEANIA Phone: +1 205 5918201 Phone: +1 (801) 557 7222, + 385 222 0757 Fax: +1 360 546 3684 Fax: +1 205 5950706 [email protected] Jamaica Recycles, CellMark USA LLC CellMark Inc. Rep Office International Recycling & Reclamation Ltd 141 Sheridan Dr Sunset Trading 8 Oceania Sands Way Semper/Exeter Paper Co Ltd 164 Spanish Town Rd. Naugatuck, CT 06770, USA 3030 Old Ranch Parkway Suite 110 CellMark Paper Canada Inc Tauranga 3118, New Zealand 1 Tiffany Pointe, Suite 300 Kingston 11, Jamaica Seal Beach CA, 90740 Seal Beach, USA 28-1817 Wellington Avenue CellMark Chemicals & CellMark Ingredients Bloomingdale, IL 60108, USA Winnipeg, MB, R3H 0T8, Canada CellMark Packaging CellMark Recycling Phone: +1 203 3368343 CellMark Recycling Phone: +64 9391 4174 CellMark Recycling Rohan Brown Fax: +1 203 3365508 Phone: +1 562 5921200 CellMark Paper Mobile: +64 2723 44174 Phone: +1 630 775 9500 Phone: +1 876 758 8700 [email protected] Phone: +1 204 7845242 [email protected] Fax: +1 630 626 4836 Fax: +1 876 764 8777 CellMark Basic Materials [email protected] CellMark USA LLC Jean-Luc Carrière Urban Impact Recycling Ltd 2 Corporate Drive, 5th Floor Phone: +1 204 784 5242 5 Capilano Way Shelton, CT 06484, USA Sunset Trading Charleston Recycling Services, LLC [email protected] 12346 St. Simon Drive 8099 Palmetto Commerce Parkway New Westminster, BC V3L 5G3, Canada CellMark Chemicals Boca Raton, FL 33428, USA Ladson, SC 29456, USA CellMark Recycling Phone: +1 203 541 9200 CellMark Recycling CellMark Recycling Phone: +1 604 5170640 Fax: +1 203 541 9191 Paper Tube & Core Phone: +1 561 218 2629 Phone: +1 843 376 9100 Fax: +1 604 5170679 [email protected] 239 Lindbergh Place Fax: +1 561 218 9932 [email protected] Paterson, NJ 07503, USA CellMark Ingredients Phone: +1 203 3368330 CellMark Recycling CellMark Inc Fax: +1 203 5419191 Phone: +1 973 977 8823 CellMark Inc 440 5th Street, Suite C CellMark Inc 811 W Evergreen Ave Suite 4SW Lake Oswego, OR 97034, USA 88 Rowland Way Chicago IL 60642, USA Novato, CA 94945, USA CellMark Packaging CellMark Inc CellMark Recycling Phone: +1 415 9456387, +1 503 453 0801 Phone: +1 415 927 1700 15 Belle Oaks Drive Phone: +1 203 2995023 Fax: +1 415 945 6386 Fax: +1 415 381 4358 Simpsonville, SC 29680, USA Fax: +1 203 2995043 [email protected] CellMark Packaging CellMark Recycling SOUTH AMERICA [email protected] [email protected] CellMark Inc CellMark Inc CellMark Recycling CellMark AB Rep office 121 Sohier Street 40 West Main Street [email protected] CellMark Inc, CellMark Paper Inc Carrera 68 C No 4-42 Cohasset, MA 02025, USA Little Falls, NY 13365, USA 80 Washington Street Sur Barrio: Floresta Sur Bogota, Colombia CellMark Packaging CellMark Recycling South Norwalk, CT 06854, USA Sunset Trading CellMark Basic Materials Phone: +1 415 8477810 Phone: +1 315 766 0219 2500 Rowesville Rd CellMark Pulp Phone: +57 13748464 [email protected] Orangeburg, SC 29115, USA Phone: +1 203 2995050 [email protected] CellMark Paper, SA DE CV CellMark Recycling CellMark Paper Semper/Exeter Paper Co Ltd Insurgentes Sur 1898, Piso 15 Colonia Florida Phone: +1 562 592 1200 Phone: +1 203 251 9090 CellMark AB Rep office 2617 Legends Way Delegacion Alvaro Obregón CP 01030 Mexico DF, CellMark Recycling Rua Duarte da Costa 1063 cond. Crestview Hills, KY 41017, USA Mexico Phone: +1 203 2995000 SPII 06706-060, Cotia Sao Paolo, Brazil CellMark Paper Inc CellMark Recycling CellMark Paper 617 Highland CellMark Plastics CellMark Basic Materials Phone: +1 859 341 7100 Phone: +52 55 5 322 9240 Ottawa ON K2A 2K2, Canada [email protected] Patricia Vandenberghe Fax: +1 859 341 9170 Fax: +52 55 5 622 7066 Mobile: +55 11 9 8275 0736 CellMark Pulp Phone: +55 11 4702 2064 Neil Gosbee NorCell Inc [email protected] CellMark Inc CellMark Paper Inc Phone: +1 647 4555566 [email protected] 80 Washington Street 5055 New Chapel Hill Way One Biscayne Tower 2 [email protected] South Norwalk, CT 06854, USA Cumming, GA 30041, USA South Biscayne Blvd, Suite 3185 Miami FL 33131, USA Phone: +1 203 256 3651 CellMark Recycling CellMark Paper Peru SRL CellMark Inc [email protected] Phone: +1 770 8449466 Phone: +1 305 4594100 AV. Circunvalación Club Golf Los Inkas No 208 7602 NW 127 Manor Fax: +1 770 8440992 Fax: +1 305 4594141 Oficina 802B Parkland, FL 33076, USA Distrito Santiago de Suco, Lima, Peru CellMark Paper CellMark Inc CellMark Recycling CellMark Paper [email protected] 400 Rella Boulevard, Suite 155 Sunset Trading Phone: +1 201 3106640 Phone: +51 1 2213713 Suffern, NY 10901, USA 3950 Summerwood Drive CellMark Basic Materials Fax: +51 1 4214304 Cumming, GA 30041, USA Phone: +1 416 560 9895 CellMark Recycling [email protected] [email protected] Semper/Exeter Paper Co Ltd Phone: +1 203 299 5000 Phone: +1 770 2055541 402 Walcott Street Fax: +1 203 299 5000 Fax: +1 770 2055549 CellMark Recycling Pawtucket, RI 02860, USA [email protected] CellMark Recycling Phone: +1 401 723 4200 Fax: +1 401 723-449

Cover photo: Christer Larsson

70 71 Lilla Bommen 3C, 6th floor, SE-411 04 Gothenburg, Sweden Phone: +46 31 100300 • Fax: +46 31 136421 • cellmark.com 72