Investor Presentation May 2020
Image-oriented Performance-based TECHNICAL FINE PAPER & PACKAGING PRODUCTS 60% 40% A global specialty materials company focused in high value niche markets 2
Proven strategies to create long-term value Drive organic growth in core businesses where we have defensible, leading market positions and supplement efforts with value-adding M&A in targeted growth platforms Protect or enhance margins and ROIC through cost and pricing initiatives and relentless focus on optimizing operational efficiencies Deliver meaningful cash flow with balanced capital deployment to maintain a strong balance sheet and provide an attractive dividend 4
Long-term growth Emerging from recent catalysts in place challenges (prior to COVID) EBITDA 130 21% Margin $128 125 19% $122 Digital Print Media 17% 120 Filtration $116 $115 Pkg & 14% Target 115 15% 13% Design $110 Market 12% 13% 110 11% Size ($3bn) 11% 105 11% Targeted markets provide growth opportunities 9% 100 LTM Q119 LTM Q219 LTM Q319 LTM Q419 LTM Q120 w/out requiring significant capital ✓ US transportation filtration capacity addition to ✓ Margins recover as pricing/cost actions overcome provide profitable ~$70-80 mm EOC sales unprecedented run-up in input costs ✓ Leading position in a fast growing digital transfer ✓ Added US filtration capacity ramping up (though media, recent breakthrough technology doubling cost inefficiencies remain due to underutilization addressable market size in initial years) ✓ Premium packaging products capitalizing on ✓ COVID-19 impacting demand near term; actions demand for plastic alternatives taken to reduce costs, optimize cash flow and ✓ Industrial filtration markets in air/water offer preserve strong liquidity position opportunities to expand existing technology base 5
TECHNICAL PRODUCTS Performance Materials (~55%) Tape, abrasives, digital transfer media, labels, security and other niche products > $500MM Net Sales Filtration (~45%) High-performance filtration media for transportation, water and other markets 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: An attractive growth platform 175 Transportation filtration media Neenah Transportation 155 Filtration Net Sales € 135 Media for air, fuel, oil and cabin air in cars and heavy Organic CAGR 7% 115 duty equipment. > 80% of sales recurring (after-market) 95 Market growing ~3+% /yr, with tight capacity and only 3 75 global players. Neenah a leader in Europe, with recent 55 US expansion providing an added growth opportunity 35 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 Trend towards more demanding engines and higher Runway for growth performing filters. Electrification growing, but studies show limited impact on demand in next 10-15 years US plant provides ~$70-80 million EOC sales at attractive margins with best in class capabilities Global Transportation lead to meaningful profit growth (from losses Filtration Market/Shares Other ~ US $1.3 billion Neenah during start up) H&V 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 where we Tape add value downstream applications Backings (saturation and coating) Abrasive Backings ▪ Backings the most sizeable global category with our media primarily used in specialty Digital Transfer Media performance tapes and abrasives ▪ Other specialty markets include digital Performance Labels transfer media, labels, security and others ▪ Innovation pipeline and R&D enabling Security Covers faster growth in digital printing, labeling and other categories Medical Packaging 10
Technical Products Financial trends Growing markets; recent margins $700 CAGR reflect US filtration asset start-up 42% 5%/yr * $583 ▪ Markets growing GDP+ $600 37% $542 $544 Net Sales ▪ Organic investments supplemented with M&A $502 32% Adj. EBITDA % $500 $466 lead to volume and share gains through $429 27% $404 performance, innovation and geographic $400 $352 $336 $353 expansion 22% ▪ 2019 top line pressured by lower sales to $300 17% 18% China and currency 16% 14% 15% 15% 15% 15% 12% 13% 12% 13% ▪ Opportunity to expand margins through: $200 7% Mix enhancement, led by profitable and $100 faster growing filtration products 2% Leveraging cost efficiencies and scale -3% $- 2011 2012 2013 2014 2015 2016 2017 2018 2019 LTM Q120 Managing pricing and costs to offset inputs R&D-driven new or improved products includes US filtration plant start-up losses 9 * includes ~$16 mm for products previously in “Other” segment 2011-2013 excludes Lahnstein
FINE PAPER & PACKAGING Graphic Imaging (~80%) Premium textured and colored papers used for high- end commercial printing and other end uses. Sold through distribution channels and retail ~ $400MM Net Sales Premium Packaging (~20%) Specialty secondary packaging using unique colors, coating, and finished textures to focus on consumer brand enhancement 10
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 11
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 $575 MM & shares Opportunistic volume adjacencies 12
PREMIUM PACKAGING ▪ Targeting “high value items in small packages” ▪ Market growing 3-4%/yr. Neenah target/historical Alcohol 29% performance = 2x market Beauty 49% ▪ Categories include labels for spirits, wine and craft beers, premium folding board and box wrap Retail/ Other for retail and beauty products, and plastic- 22% substitute gift cards and advertising signage ▪ Efficiently uses fine paper assets and texture & Addressable market color capabilities by end use ~$ 450MM 13
Fine Paper & Packaging Financial trends CAGR > 4%/yr Consistent mid to upper-teen EBITDA Net Sales margins generate important cash 500 Adj. EBITDA % 40.0% 492 484 $436 $443 $452 $455 $446 476 38.0% 468 flows for redeployment 460 $428 452 36.0% 444 436 428 $402 $397 34.0% 420 412 $389 404 32.0% 396 388 380 372 30.0% ▪ Commercial print facing continued secular 364 356 348 28.0% 340 332 market pressures of 3 to 5% 324 26.0% 316 308 300 $275 24.0% 292 ▪ Neenah battling secular pressure through 284 276 22.0% 268 260 252 20.0% 244 consolidating acquisitions, growth in 236 228 18.0% 220 19% 212 18% 18% 204 18% premium packaging, and other initiatives 196 17% 16.0% 17% 188 16% 16% 180 16% 172 14.0% 164 ▪ Leading brand power and diligent cost 14% 156 148 12.0% 140 132 124 10.0% management help support margins 116 108 100 8.0% 92 84 ▪ Well-capitalized asset base with limited 76 6.0% 68 60 52 44 4.0% 36 capital needs generating high return on 28 20 2.0% 12 4 -4 0.0% capital 2011 2012 2013 2014 2015 2016 2017 2018 2019 LTM Q120 14
Financial principles ✓ Generate consistent profitable growth ✓ Capital efficient decisions, guided by ROIC ✓ Maintain a strong 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
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