Q4 2019 Q4 2019 In Invest stor or Pr Prese sentation ion We - PowerPoint PPT Presentation

v NYSE: NP Q4 2019 Q4 2019 In Invest stor or Pr Prese sentation ion

We We a are a a gl globa obal specia cialty ty mate teria ials com company y focuse fo sed on hi n high v h val alue NI NICHE HE mar marke kets Perf erform rmance-ba based ed Image age-ori rien ented ed TECH CHNICA ICAL P PRO RODUCT UCTS FIN INE P PAPER & R & PACKA CKAGIN GING Net Sa Sales s 60% 40% $1 b $1 bn 2

Prov oven S STR TRATE TEGIE GIES To cr To create te LON ONG-TERM v M val alue 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 3

Emergin ging g From om rece cent ch t challengin ging p g period iod 31.0% 260.0  Added US filtration capacity ramping up (though cost inefficiencies 26.0% 250.0 $253 remain due to smaller run sizes and underutilization) $247 21.0% 240.0 $239 16.0% 230.0 $233 $232  Margins now recovering from an unprecedented run-up in input costs 11.0% 220.0 9%  Weaker global economies impacting demand near term; addressing through cost 9% 210.0 6.0% 7% 7% 6% management, asset optimization and focus on cash flow generation 200.0 1.0% Q318 Q418 Q119 Q219 Q319 Net Sales Fx/Divest Adj. EBIT % WITH WITH K KEY gr Y growth owth CA CATALYSTS TS IN IN P PLACE CE Target Market Size ($3bn) Targeted growth markets with opportunities to expand w/out significant capital Pkg & Design  US transportation filtration capacity to provide profitable ~$80 mm EOC sales Digital Print Filtration  Air/liquid industrial filtration markets offer additional opportunities to expand Media  Leading global position in a fast growing digital transfer media market Target Market  Premium packaging/design mitigating secular pressures in fine paper 0.07 5-7% Growth Rates 0.06 0.05 3-5% 3-4% 0.04 • Geographic expansion (80 + % of TP sales currently in No. America/Europe) 0.03 0.02 0.01 0 • Strong financial position to weather storms/support value-adding investments Filtration Digital Pkg & Media Design 4

TE TECH CHNICA ICAL P PROD ODUCTS CTS Perf erform rmance M e Materi erials ( (~55%) ~ $600MM ~ $600MM Net Sa Sale les Fil iltration ion ( (~45% ~45%) Growing and profitable performance-based markets 5

Te Tech chnica ical P Prod oducts cts - Why hy WE ar are su successfu ssful  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 6

Fil iltr tration tion Tran Tr anspo portati tion Runway f Run for r gro rowth  Global market growing ~3 + % per year, with  First US asset started up in 2017 after tight capacity and only 3 global players consuming available capacity in Europe  Filter media used for air, fuel, oil and cabin  Global customers support our expansion air in cars and trucks/heavy duty equipment and desire added choice in No. America  Trend towards more demanding engines that  Asset provides best in class capabilities and cost position require higher performing filters  > 80% of sales recurring (after-market)  ~$80 million EOC sales at attractive margins 175 to lead to meaningful profit turnaround 155 135 Global T r anspor tation Ne t Sale s F iltr ation Mar ke t/ Shar e s 115 Org a nic CAGR 7% ~ US $1.3 b illio n 95 Othe r Ne e na h 75 H&V 55 Ahlstro m 35 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 Other er Mark rket ets  Present in fast-growing markets including water, industrial, and beverage filter media E ur ope NAF T A Asia RoW 7

Pe Perfo formanc mance Ma Material als Backi king ngs spe peci cial alti ties  Sizeable global category with media  Markets include digital transfer media, primarily used in tapes and abrasives labels, security, and others  Markets generally grow with GDP though  Markets generally growing at GDP+ currently under pressure  Saturating and coating know-how used  Focused on performance niches requiring to impart unique characteristics downstream applications Digital t transfer Perfor ormance Ta Tape media label els back ckin ings gs Abrasive Ab back ckin ings gs Security Medical covers rs pack ckagin ging g 8

Techni hnical al Pr Products Fi s Financ nancial al Trend nds EMERG RGING NG FRO ROM C CHAL HALLENG NGING NG PE PERI RIOD $700  Selling prices and cost management beginning 32% to overcome rapid run up of input costs CAGR * $583  Global volumes remain pressured, addressing $600 6%/yr 27% through cost management and R&D efforts $502 $500 Ne t Sa le s $466 22% $429 Adjuste d E BI T % $404 FA FAST-GRO ROWING NG T TOP L P LINE NE; RE RECENT NT marg argins ns $400 $352 $336 $353 17% $324 Refle flect US S FI FILTRATION A Asse sset st start-up up $300 $263  Markets growing GDP+ 12% 14% 13% 12%  Organic investments supplemented with M&A lead 11% 11% 10% $200 9% 9% to volume and share gains through performance, 7% 8% innovation and geographic expansion 5%  Historical margin expansion through: $100 2%  Mix enhancement, led by profitable and faster growing filtration products -3% $- 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018  Leveraging cost efficiencies and scale includes US filtration  Managing pricing and costs to offset inputs start up  R&D-driven new or improved products * includes ~$16 mm for products previously in “Other” segment 9

Fi Fine ne P Pape aper & & Pac ackag kaging ng Commercial print (~60%) ~ $425MM ~ $425MM Premium Packaging (~20%) Net Sa Sale les Retail (~20%) High returns and cash flows while repositioning for growth 10

Fi Fine ne P Pape aper & & Pac ackag kaging ng: WHY HY W WE AR ARE SU SUCCESSFU SSFUL  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

Comme mmercial al pr print nt/R /RETAI AIL  Consolidated niche market of unique papers used for high-end commercial printing and consumer applications Mohawk Ne e nah F ine Pape r s  Neenah is the clear market leader in 60% 20% both commercial and consumer channels with our well-known brands Othe r s 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

Premi Pr mium P m Pac ackag kaging ng Targeted Markets  Targeted addressable market of $450 MM of high value items in Alc ohol small packages. 29% Be auty 49%  Growing 3-5%/yr. Neenah growth Re tail/ target =2x market Othe r 22%  Products include spirit & wine 90.0 labels, premium folding board, Neenah 80.0 luxury box wrap, and plastic- Sales substitute gift cards and others 70.0 60.0  Efficiently uses fine paper assets 50.0 and texture & color capabilities 40.0 30.0 2014 2015 2016 2017 2018 13