v Investor Presentation February 2020
Neenah is a global specialty materials company focused on high value niche markets Performance-based Image-oriented FINE PAPER TECHNICAL & PACKAGING PRODUCTS 60% 40% Net Sales ~$1 bn 2
Neenah’s position in value chain Raw Value-add Final Manufacturing End Product Materials Processing Converting ▪ Focused in the intermediate stage of the value chain, taking various raw materials and manufacturing, coating/saturating to develop customized, higher-value products typically sold to customers for final processing ▪ Multiple technologies to combine and/or align fibers with polymers and resins to impart performance characteristics or quality requirements ▪ Products are critical to end-use performance, but a small portion of end-product cost 3
Proven strategies to create long-term value Drive organic growth in core businesses where we have defensible, leading market positions, supplemented by value-adding M&A Protect or enhance margins through cost and pricing initiatives and relentless focus on optimizing operational efficiencies Deliver meaningful cash flow with balanced capital deployment to maintain a high ROIC, strong balance sheet, and attractive dividend 4
Emerging from recent challenges $124 125 25% $122 ✓ Margins now recovering as pricing and cost actions overcome 23% 120 21% unprecedented run-up in input costs $116 $115 19% $110 115 17% ✓ Weaker global economies impacting demand near term; addressing through 15% 13% 110 13% cost management, asset optimization and focus on cash flow generation 12% 12% 11% 105 11% 11% 9% 7% 100 ✓ Added US filtration capacity ramping up (though cost inefficiencies LTM LTM LTM LTM LTM remain due to smaller run sizes and underutilization during initial years) Q418 Q119 Q219 Q319 Q419 EBITDA Margin …with growth catalysts in place Target Targeted markets provide growth opportunities w/out significant capital Market Digital Print ✓ US transportation filtration capacity to provide profitable ~$70-80 mm EOC sales Size ($3bn) Media Filtration ✓ Leading global position in a fast growing digital transfer media market, with recent Pkg & Design breakthrough technology doubling addressable market size ✓ Premium packaging products capitalizing on demand for plastic alternatives Market ✓ Industrial filtration markets in air/water offer additional opportunities to expand Growth 0.07 5-7% 0.06 Rates 3-5% 0.05 3-4% 0.04 0.03 Geographic expansion (80 + % of TP sales currently in No. America/Europe) 0.02 0.01 0 Strong financial position to support value-adding investments Filtration Digital Pkg & Media Design 5
Why we have been successful ✓ Leading positions in end markets with portfolio of highly recognized brands ✓ Defensible niche / hard to replicate products with clear barriers to entry ✓ Variety of best in class manufacturing capabilities with well-capitalized assets ✓ Long tenures with blue-chip customers ✓ Sustainable cash flows/low leverage and established track record of performance through cycle ✓ Experienced management team 6
TECHNICAL PRODUCTS Performance Materials (~55%) ~ $600MM 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: A key growth platform Transportation filtration media Runway for growth Market growth ~3+% /yr, with tight capacity and only 3 Investment in first US plant completed in 2016 global players and provides capacity to maintain historic 7% annual Media used for air, fuel, oil and cabin air in cars and growth rate with best in class capabilities and costs trucks/heavy duty equipment, with > 80% of sales ~$70-80 million EOC sales at attractive margins lead to recurring (after-market) meaningful profit growth (from losses during start up) Leaders in Europe, with recent entry into US 175 Trend towards more demanding engines that require higher Neenah Transp. 155 performing filters. Electrification growing, but studies show Filtration Net Sales 135 limited impact on demand during next 10-15 years Organic CAGR 7% 115 95 75 Global Transportation Other Filtration Market/Shares 55 Neenah ~ US $1.3 billion 35 H&V 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 Ahlstrom Other filtration markets #1 Present in fast-growing markets including water, industrial and beverage filter media Planned small capital investment in 2020 to increase Europe NAFTA Asia RoW capacity for fast-growing water filtration media 9
PERFORMANCE MATERIALS: A collection of growing niche businesses ▪ Focused on performance niches with value added through downstream applications Tape (saturation and coating) backings Abrasive ▪ Backings the most sizeable global category backings with media primarily used in specialty performance tapes and abrasives Digital transfer ▪ Markets generally grow with GDP media ▪ Other specialty markets include digital Performance labels transfer media, labels, security and others ▪ Markets generally grow at GDP+ Security ▪ Innovation pipeline and R&D enabling faster covers Medical growth in digital printing, labeling and other packaging categories 10
Technical Products: Financial Trends Growing markets; recent margins $700 reflect US filtration asset start-up 32% CAGR $583 * $600 6%/yr ▪ Markets growing GDP+ $542 27% Net Sales $502 ▪ Organic investments supplemented with M&A $500 $466 Adjusted EBIT % lead to volume and share gains through 22% $429 $404 performance, innovation and geographic $400 $352 $336 $353 17% expansion $324 ▪ 2019 top line pressured by lower sales to $300 13% 14% 12% 12% China and currency 11% 10% 11% 9% 9% $200 8% ▪ Opportunity to expand margins through: 7% 8% Mix enhancement, led by profitable and $100 2% faster growing filtration products -3% $- Leveraging cost efficiencies and scale 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Managing pricing and costs to offset inputs includes US filtration start up costs R&D-driven new or improved products * includes ~$16 mm for products previously in “Other” segment 11
FINE PAPER & PACKAGING Graphic Imaging (~80%) ~ $400MM Net Sales Premium Packaging (~20%) 12
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 13
GRAPHIC IMAGING ▪ Neenah is the clear market leader in both commercial and consumer channels with our well-known brands Mohawk Fine Neenah Papers ▪ Consolidated niche market of unique 60% 20% papers used for high-end commercial printing and consumer applications Others 20% ▪ Market faces secular pressures from electronic substitution. Opportunistic Premium market volume opportunities in lower value $575 MM & shares premium opaque and other grades Opportunistic volume adjacencies 14
PREMIUM PACKAGING ▪ Targeted addressable market of $450 MM of high value items in small packages. Alcohol ▪ Growing 3-5%/yr. Neenah growth 29% Beauty target =2x market 49% ▪ Products include spirit & wine Retail/ Other labels, premium folding board, 22% luxury box wrap, and plastic- substitute gift cards and others ▪ Efficiently uses fine paper assets Targeted and texture & color capabilities End Markets 15
Fine Paper & Packaging: Financial Trends CAGR > 4%/yr 500 35.0% 492 Net Sales 484 476 $428 $436 $443 $452 $455 $446 33.0% 468 460 Adj. EBIT % 452 Stable mid-teen EBIT margins provide 444 31.0% 436 428 $402 420 $397 29.0% 412 404 strong cash flows for redeployment 396 388 27.0% 380 372 364 25.0% 356 ▪ Commercial print secular market pressures 348 340 332 23.0% 324 316 partly mitigated through growth in premium 308 21.0% 300 $273 $275 292 284 packaging, digital and wide format, M&A, 276 19.0% 268 260 252 17.0% 244 and other actions 236 228 220 16% 15.0% 212 16% 15% 204 15% ▪ Mid-teen EBIT margins supported by pricing 15% 14% 14% 196 14% 14% 13.0% 188 180 172 164 12% 11.0% with strong brands and careful management 156 148 140 9.0% 132 124 of costs 116 108 7.0% 100 92 84 ▪ High return on capital 5.0% 76 68 60 52 3.0% 44 ▪ Substantial cash generation 36 28 1.0% 20 12 4 -4 -1.0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 16
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