A Word from the President

2014 – Celebrating 30 years of commitment to our partners, continuously changing.

At CellMark, we live by the vision to surpass our partners’ expectations, as well as our own, on the innovation of the services we offer. Looking back over 30 years of continuous change and development, we are very grateful for the trust and confidence our partners place in their relationships with us.

Our mission is to bring products, services and solutions to the world market.Over the years, we have cultivated a strong pride in CellMark’s global platform. Itenables us to complement our traditional strengths with the seamless introduction of new business areas. We continuously review this differentiating capability to ensure that it remains a strategic imperative at CellMark for the future.

2014 results

While our financial result showed a marked improvement compared to 2013, we continued to battle a sluggish, difficult economic environment last year. This was true for most commodity businesses, particularly in Europe and of course CellMark was no exception. Despite these difficulties, 2014 was an exciting year for the Group. We refined and developed services in all six divisions.

Highlights:

• In early 2014, CellMark Metals acquired the Swedish trading company Sonaco, a move that strengthened the Division’s service portfolio and increased its global reach.

• Our Chemicals Division continued its strategic growth by acquiring AnMar, a manufacturer and distributor of vitamins, plant extracts, nutraceutical ingredients, amino acids and other products. The Division’s long-term strategy is to bolster its global presence in specialty markets and expand its custom manufacturing capabilities.

• CellMark Packaging adapted to numerous changes it encountered in 2014, while building its global team to support and expand opportunities. Worldwide demand for packaging grades rose, with new capacity installed to accommodate that demand.

• Despite a challenging marketplace, our Paper Division performed well in 2014. It developed several strategic alliances, and solidified relationships with key global suppliers. (See the story of NorCell, page 8–9.)

• Our Pulp Division secured a significant, multi-year marketing agreement with an American pellet producer. (See our Fram case study, page 6–7.) It also signed a long-term agreement with a key industry partner, making the Division’s future look very exciting indeed.

• The Recycling Division outperformed its 2013 result with continued growth in the non-fiber and stock-lot roll sectors. It also completed a strategic restructuring of plants and sales offices.

Overall, our Divisions developed well last year, in large part because we more quickly recognize and leverage opportunities for synergies among groups. Moreover, our strategy to optimize our global network for additional products and services is proving to be very effective. In fact, we served more than 120 markets in 2014.

In September, after 10 years as CEO, Hans Kling became a senior advisor, and handed the CellMark reins to me. I’m grateful he will remain available to handle special projects, and I am honored to thank him, on behalf of all CellMark employees and partners, for the exceptional work he did to grow our company. I also want to praise my colleagues, who continuously demonstrate an unmatched commitment to our partners and to the communities in which they work and live.

Our future remains challenging; we work in competitive markets with everchanging and important clients. We embrace change and are grateful to all of our partners who continue to place their trust with us, which we will fight hard to retain and strengthen.

Sincerely,
Fredrik Anderson