Investor Presentation August 2020
Image-oriented Performance-based TECHNICAL FINE PAPER & PACKAGING PRODUCTS 60% 40% A global specialty materials company focused in premium markets 2
Addressing COVID Strategy execution Actions taken to protect delivering pre-COVID employees and preserve liquidity • Implemented appropriate policies to protect $131 135 EBITDA 19% employees and keep them safe 130 Margin $122 125 17% • Strict spending controls across all facets of the 120 $115 14% business 15% 115 13% $110 12% • Capital spending prioritized and reduced to 110 13% 11% 105 approximately $15 million 11% 100 • Aggressive management of supply chain; 9% 95 LTM Q219 LTM Q319 LTM Q419 LTM Q120 reducing inventories, rationalizing skus, optimizing footprint and operating schedules ✓ Margins recover as pricing/cost actions overcome • Significant impact to demand in Q2, however unprecedented run-up in input costs sequentially improving demand through the ✓ US filtration capacity ramping up (though cost quarter inefficiencies remain due to underutilization) ✓ Innovative new product launches Expect >$50 mm of cash improvement ✓ Improved operational efficiencies vs. base plan 3
Playing a key role in the value chain Final Raw Value-add Manufacturing End Product Converting & Materials Processing Packaging We take various inputs and employ multiple proprietary technologies to impart customer-desired performance characteristics or quality requirements Our products are critical to end-use performance, but represent a small portion of end-product cost Typically sold to customers for final processing 4
Proven strategies to create long-term value Drive organic growth in core businesses where we have defensible, leading market positions and focus investments, including M&A ,in targeted growth platforms Protect or enhance margins and ROIC through systemic cost initiatives, pricing discipline and relentless focus on capital-efficient growth Deliver meaningful cash flow with balanced capital deployment to maintain a strong balance sheet and provide an attractive dividend 5
Our Growth Platforms Filtration Digital & Specialty Coating Separation and purification Enhancing substrates through of air and liquids for critical chemical and polymer science applications Example Growth Markets Example Growth Markets • Transportation • Digital transfer paper • Water Purification • Labels • Air (HVAC/HEPA/Industrial) • Wide format • Food/Beverage • Silicone release liner Custom Engineered Packaging & Design Materials Enriching the customer experience through color, Specialty media for texture, and design demanding end-use markets Example Growth Markets Example Growth Markets • Premium packaging • Composites • Stored value cards • Acoustical/thermal insulation • Consumer • Glass mat • Retail solutions • Medical packaging 6
TECHNICAL PRODUCTS Performance Materials (~55%) > $500MM Net Sales Filtration (~45%) 7
Technical Products Why we are successful ▪ High value, growing specialty markets Leading Positions in ▪ Long customer qualifications - strong barrier Defensible Niche ▪ Our media is a key performance driver, but a small Markets part of product cost ▪ Multiple technologies and chemistries Broad Range of ▪ Technical Proprietary formulations & strong “dark” IP Abilities ▪ Leading performance and innovation Strong customer ▪ Innovative offerings from a global footprint relationships with ▪ Long-term joint development relationships long qualification ▪ Strong technical support and service periods 8
Filtration Media Transportation Other End Markets Market Size & Share Other by Region Neenah Water filtration H&V Global Ahlstrom Market Demand growing GDP+ #1 $1.3 Bn Currently only US manufacturer for GDP+ growth component of reverse osmosis filters Europe NAFTA Asia RoW Air/industrial filtration Media for air, fuel, oil and cabin air in cars and heavy duty equipment. >80% recurring sales Demand growing almost 2x GDP Consolidated market; 3 global players Addressable market sized at $2 bn Market moving to high performing filters Recent entry in face masks and expansion US investment to provide >$70 mm EOC sales 175 into other industrial end markets Neenah Transportation 155 Filtration Net Sales € 135 Beverage filtration 115 Organic CAGR 7% 95 GDP+ growth market 75 Manufacture media for coffee capsules 55 35 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 9
Performance Materials: A collection of growing niche businesses ▪ Focused on performance niches where we add value downstream applications Tape Backings (saturation and coating) Abrasive Backings ▪ Products include backings used in specialty tapes and abrasives, and other Digital Transfer markets including digital transfer media, Media labels, security and others Performance Labels ▪ Innovation pipeline and R&D enabling faster growth in digital printing, labeling Security Covers and other categories Medical Packaging 10
FINE PAPER & PACKAGING Graphic Imaging (~80%) ~ $400MM Net Sales Premium Packaging (~20%) 11
Fine Paper & Packaging Why we are successful ▪ Leading brand equity pulls demand Leading ▪ Pricing ability to recoup input costs Brands ▪ Selective distribution ▪ Specialty colors, textures and coatings allow creation of Best in Class unique and customized product portfolio Manufacturing ▪ Unique purpose-built assets provide fast, flexible and Capabilities low cost offerings at highest quality ▪ Design and rapid prototyping, provides customers a more Go To Market holistic solution and create barriers for competitors Innovation ▪ Able to replicate short lead times with outstanding service 12
GRAPHIC IMAGING ▪ Neenah is the clear market leader in both commercial and consumer channels with our well-known brands Mohawk Neenah Fine Papers ▪ Consolidated niche market of unique 20% 60% papers used for high-end commercial printing and consumer applications Others 20% ▪ Market faces secular pressures from electronic substitution. Opportunistic volume opportunities in lower value Premium market premium opaque and other grades $575 MM & shares Opportunistic volume adjacencies 13
PREMIUM PACKAGING ▪ Targeting “high value items in small packages” ▪ Market growing 3-4%/yr. Neenah target/historical Alcohol performance = 2x market 29% Beauty ▪ Categories include labels for spirits, wine and 49% craft beers, premium folding board and box wrap Retail/ for retail and beauty products, and plastic- Other substitute gift cards and advertising signage 22% ▪ Efficiently uses fine paper assets and texture & color capabilities Addressable market by end use ~$ 450MM 14
Financial Principles ✓ Generate consistent profitable growth ✓ Capital efficient decisions, guided by ROIC ✓ Maintain a prudent balance sheet ✓ Provide shareholder returns, including an attractive dividend 15
Value-adding capital deployment Substantial cash flows and balanced capital deployment has resulted in: ✓ Mid-single digit top line growth Return to Acquisitions ✓ Attractive Return on Capital Shareholders $169 MM $177 MM ✓ Strong balance sheet and cash flows ✓ Total shareholder returns of almost 2x the R2000 index Value-Adding Organic Capital $150 MM Five-year cash deployment 16
Consolidated P&L Data CAGR Net Sales > 3%/yr Adj. EBITDA % 1200 35.0% $738 $782 $840 $888 $942 $980$1,035 $940 $840 30.0% ✓ Top-line growth driven by 1000 25.0% 800 share gains, new products, $626 20.0% 600 15.0% 17% price/mix improvement and 16% 15% 15% 14% 14% 14% 400 13% 13% 12% 10.0% acquisitions. 200 5.0% 0 0.0% 2011 2012 2013 2014 2015 2016 2017 2018 2019 LTM Q220 2011-2013 excludes divested Lahnstein CAGR > 5%/yr Adjusted $4.54 $4.32 ✓ Earnings in 2017-19 include E.P.S. $3.70 $3.50 $3.47 impact during early years of $2.63$2.87 $3.21 $2.86 US filtration capacity ramp-up $1.84 and timing of input cost recovery 2011 2012 2013 2014 2015 2016 2017 2018 2019 LTM Q220 17
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