TECHNICAL FINE PAPER & PACKAGING PRODUCTS End markets: - PowerPoint PPT Presentation

Performance-based Image-oriented TECHNICAL FINE PAPER & PACKAGING PRODUCTS End markets: filtration End markets: premium media, tape and abrasive packaging and print backings, labels, and other communications, and specialized products crafting 2

 Global sales of ~$1 billion in more than 80 countries  Global manufacturing footprint:  U.S. (10 sites)  Germany (2 sites) and U.K. (1 site)  India (small JV)  Headquarters near Atlanta, GA  >2,500 employees worldwide  Spun off from Kimberly-Clark Corp in 2004 3

Invest efficiently Enhance leading in growing and positions in high defensible niche Transportation Filtration Performance Labels value core markets Premium Fine Paper Premium Packaging categories Specialty Backings Industrial Filtration Maintain a strong financial position and provide attractive returns Disciplined capital allocation Conservative balance sheet Meaningful dividend 4

Performance Filtration Materials 45% 55% ~ $500 million net sales 5

 High value, growing specialty markets Leading Positions  Long customer qualifications - strong barrier in Defensible  Our media a key performance driver, but small part of Niche Markets final product cost  Multiple technologies and chemistries Broad Range of  Technical Proprietary formulations & strong “dark” IP Abilities  Leading performance and innovation  Innovative offerings from a global footprint Strong Customer  Long-term joint development relationships Relationships  Strong technical support and service 6

Transportation Media (75%) Long Runway for Future Growth  Consolidated global market growing  After becoming leaders in Europe and ~4%, with >80% of sales in aftermarket reaching capacity, investment in best in class US asset starting up in 2017  Products include air, fuel, oil and cabin air filters for cars and trucks  Five year ramp up to $80 mm EOC sales  Positive outlook as more demanding  Asia remains a future opportunity engines need higher performing filters Global Transportation Filtration Market/Shares and global capacity remains tight ~ US $1 billion  Strong organic growth history Other Neenah H&V 135 Ahlstrom Net Sales 115 Organic 95 CAGR 8% Europe NAFTA Asia RoW 75 Other Filtration Media (25%) 55  Expanding in other fast-growing markets 35 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 16 including water, industrial, and beverage 7

Backings (55%) Specialties (45%)  Smaller, specialty markets include labels,  Sizeable global category with media security, digital transfer, décor, others primarily used in tapes and abrasives  Saturating and coating know-how to  Focused on performance niches impart unique characteristics requiring downstream applications  Markets generally growing at GDP+  Markets generally grow with global GDP 8

Increasing top line Net Sales $514 20% $468 $466 Adjusted EBIT %  present in growth markets $464 $429 18%  gaining share with performance, $404 innovation and geographic expansion $414 16% $353  investing organically and through M&A $364 14% 14% $314 13% Expanding margins 12% $264 12% 12%  cost efficiencies and scale 11% 10% $214  mix enhancement, led by profitable and 8% $164 fast growing filtration products $114 6%  R&D investments leading to new or 2013 2014 2015 2016 LTM improved products valued by customers Q217* * 2017 includes start up costs for US filtration 9 asset while Europe is at full capacity

Premium Packaging Graphic Imaging 15% 80% Specialty 5% ~ $450 million net sales 10

 Brand equity helps pull demand Leading  Brands Ability to recoup changes in input costs  Highest quality products with a variety of colors and textures Best in Class  Highly-utilized purpose built assets provide leading cost Manufacturing position Capabilities  Technology to accommodate market driven changes  Able to meet short lead times with outstanding service Supply Chain Innovation  Prototyping capabilities allowing for faster commercialization 11

 Consolidated $650 million niche market of Neenah 65% premium textured and colored papers Mohawk Fine Papers 25%  Neenah the clear market leader in both Others commercial and retail channels 10% Commercial Channel  Used for high-end commercial printing, ~$500 million marketing collateral and retail products  Market pressured by electronic substitution Neenah 55% Others 45% Retail Channel ~$150 million 12

 Market growing 3-5% annually; highly fragmented with no clear leader Alcohol 29% Beauty  Targeted premium niche market of $450 49% million in beauty, alcohol and retail/other; Retail/ Other largest opportunity in beauty packaging 22%  Most products made on Fine Paper asset $450 million base; includes label, premium folding board, Targeted Market luxury box wrap, gift cards and others  Continuing to expand our presence and capabilities, allowing us to make award winning and customer-preferred products Packaging growth to offset secular pressures in traditional business 13

40.0% 494 38.0% 486 36.0% 478 34.0% Net Sales 470 32.0% Consistently strong financial results Adjusted EBIT % 462 $455 30.0% $452 454 28.0% $443  stable mid-teen EBIT margins with brand 446 26.0% $436 equity that supports pricing 438 24.0% $428 430 22.0%  capital efficient, substantial cash generation 422 20.0% 414 18.0%  countering top-line pressures with 406 16.0% 16% 16% 398 14.0% 15%  consolidating acquisitions 14% 14% 390 12.0% 382 10.0%  packaging growth 374 8.0% 366 6.0%  manufacturing cost efficiencies 358 4.0% 350 2.0%  share gains and price optimization 2013 2014 2015 2016 LTM Q217 14

 Consistent, profitable growth  High Return on Capital/Return on Equity  Flexible and prudent capital structure  Attractive shareholder returns 15

Our businesses provide substantial cash flows that we’ve deployed in a balanced manner to result in:  Double digit earnings growth Return to Shareholders $125mm  High Return on Capital  Increasing cash returns to shareholders Acquisitions $220mm  Strong balance sheet Value-Adding  Market-beating shareholder returns Organic Capital $150mm Five-year key cash deployment 16

Net Sales $944 % Annual Adjusted EBIT % $942 1000 15.0% 25.0% Growth 950 $888 20% 14.0% 2011- 2016 900 $840 20.0% 850 16% $782 13.0% 800 13% 750 12.0% 15.0% 12% 12% 700 8% 11.0% 650 10.0% 11% 11% 600 10.0% 550 5.0% 500 9.0% 2013 2014 2015 2016 LTM 0.0% Q217* Sales Adj. EBIT Adj. E.P.S $4.54 Adjusted  Five-year sales growth reflecting share $4.34 E.P.S. $3.70 gains, new products, price/mix $3.21 $2.87 improvement and acquisitions  Faster earnings growth with focus on market-back pricing, cost control and efficiencies, and mix shift to higher 2013 2014 2015 2016 LTM value products Q217* *2017 includes impacts from US filtration asset start up 17

Delivering double-digit ROIC through: 13% 13% 12% 12%  Profitable growth 11% WACC  Focus on asset efficiency ~ 7-10%  Disciplined organic capital spending  Good returning projects  Value-adding acquisitions (and divestitures) 2013 2014 2015 2016 LTM 2017* * 2017 includes impacts from US filtration asset start up Primary measure to evaluate investment decisions and judge business performance and a key compensation plan measure 18

Debt ($ millions)  Debt/EBITDA well below $ 229 250 $228 targeted range of 2 to 3x $221 $221 3 $ 207 53 54 46 46 200 2.5 32  $175 mm bond due in 2021with attractive 5.25% rate and rating 1.8x 2 1.7x 150 1.6x Debt/ of Ba3/BB 1.5x 1.4x EBITDA 1.5 100 175 175 175 175 175  Remaining short term debt 1 primarily ABL (sized at $200 million) 50 0.5 0 0  Capital structure and availability Dec 13 Dec 14 Dec 15 Dec 16 Jun 17 provides significant flexibility to act on opportunities 2021 Bonds S-T Debt 19

Cash Generation Cash Deployment Strong business cash  Priority on highest  Pro Forma Cash Flow flows, compounded returning investments ($ millions) with acquisitions  Organic initiatives  Value-adding M&A EBITDA $ 155 - $170 Interest Expense (10 - 15)  Committed to cash Significant US R&D tax  returns via attractive credits; well-funded Other (tax, wkg cap, pension, etc.) (25 - 30) and growing dividend pension plan Cash From Operations $ 110 – 135  Authorized $25 mm Efficient asset base;  Total Capital Spend (3-5% sales) ~(40) stock repurchase plan maintenance cap-ex < $15 mm/year Free Cash Flow $ 70 – 95 Cash From Dividends $1.48 Operations 1.6 per share $1.20 $1.32 140 $116 1.4 $111 $104 120 $95 $1.02 1.2 $84 100 1 $0.70 80 0.8 $0.48 60 0.6 40 0.4 20 0.2 0 0 2013 2014 2015 2016 LTM 2012 2013 2014 2015 2016 2017 2017* *2017 includes impacts from US filtration asset start up 20