Spring 2016 Cautionary Statements Forw ard-Looking Statem ents - PowerPoint PPT Presentation

Spring 2016

Cautionary Statements Forw ard-Looking Statem ents This presentation contains forward-looking statements that involve certain contingencies and uncertainties. The Company intends these forward- looking statements to be covered by the safe harbor provision for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. These statements relate to future events or future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause its actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. I n some cases, forward-looking statements can be identified by term inology such as "may," "should," "could," "expects," "plans," "intends," "anticipates," "believes," "estimates," "predicts," "potential," "will" or "continue" or the negative of such terms or other comparable term inology. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievements. These statements are only predictions. Factors that could materially affect the Company's actual results, levels of activity, performance or achievements include, without limitation, those detailed under the caption "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2015, as filed with the Securities and Exchange Commission on March 7, 2016 and the Company’s quarterly report on From 10-Q filed on April 29, 2016. The Company's actual results may be materially different from what it expects. The Company does not undertake any duty to update these forward- looking statements after the date hereof, even though the Company's situation may change in the future. All of the forward-looking statements herein are qualified by these cautionary statements. We have filed a registration statement (including prospectus) and a prospectus supplem ent with the SEC for the offering to which this communication relates. Before you invest, you should read the registration statement, the prospectus supplement and other documents we have filed with the SEC for more complete information about us and these offerings. You may obtain these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Non-GAAP Financial I nform ation This presentation contains information regarding the Company’s Adjusted EBI TDA, a non-GAAP financial measure. A non-GAAP financial measure is a numerical measure of a company's financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with Generally Accepted Accounting Principles ("GAAP") in the United States in the statement of income, balance sheet or statement of cash flows of a company. Adjusted EBI TDA is not a measurement of financial performance under GAAP and should not be considered as an alternative to net income or any other performance measure derived in accordance with GAAP. Adjusted EBI TDA represents net income before net interest expense, income tax expense, depreciation and amortization, stock-based compensation expense, expenses related to business acquisitions and costs to demolish property, plant and equipment. Management believes Adjusted EBI TDA facilitates operating performance comparisons from period to period and company to company by eliminating potential differences caused by variations in capital structures (affecting relative interest expense), tax positions (such as the impact on periods or companies of changes in effective tax rates or net operating losses), the age and book depreciation of facilities and equipment (affecting relative depreciation expense), non-cash compensation (affecting stock-based compensation expense) and sporadic expenses (including costs of business acquisitions and demolition costs). Tradem arks The trademarks included herein are the property of the owners thereof and are used for reference purposes only. Such use should not be construed as an endorsement of the products or services of the company. 2

Vision Vision is to be a custom er-focused , integrated national supplier of private label and branded tissue products across all quality tiers Grow th Focused Market Leading Custom ers $175 40.0% $150 30.0% $125 20.0% $100 10.0% $75 $50 0.0% 2012 2013 2014 2015 Net Sales Adjusted EBITDA Margin Full Product Offering (1) Pro Forma for Fabrica transaction as if the transaction had occurred on January 1, 2014. 3

Company Overview National supplier of high quality consumer tissue products in the value, premium and ultra-premium  tier product segments Company focused on growth   Capitalizing on favorable industry trends  Ability to grow market share in a fragmented market  National supplier with established customer relationships and distribution channels  Versatile product capabilities with low cost platform  Low-cost flexible manufacturing  Capacity growth driving revenues 2015 positive trends   First full-year of sales from supply agreement with Fabrica provided a significant increase in sales and EBITDA  Successfully implemented a new converting line and a new paper machine in the Oklahoma location, resulting in capacity and cost improvements  Began construction of greenfield site in Barnwell, South Carolina 2015 financial results   Revenues $168 million up 18% , EBITDA $31 million up 15% , EPS $1.37  Paid a dividend for 19 consecutive quarters; last 10 quarters paid at $0.35 a share Long term guidance of $280 million of net sales, adjusted EBITDA margins of 20% - 24% and EPS  $2.50 to $3.40 4

Key Statistics Share Statistics Cap Structure Trading Symbol (OTC) NYSE MKT: TIS Cash on Hand $16.37M Stock Price (4/ 4/ 16) $27.96 Long Term Debt $71.7M 52wk Range $21.42-$32.50 Shareholder Equity $133.8M Shares Outstanding 10,275,141 Other Market Capitalization $287.4M Full-Time Employees 352 Enterprise Value $346.3M Fiscal Year Ends December 31 Fwd Ann. Dividend Yield 5.01% Website www.orchidspaper.com 3 Month Avg. Volume 67,724 Corporate Headquarters Pryor, Oklahoma Insider Ownership 8.9% Financials Q1 2 0 1 6 Revenues $47.74M Adjusted EBITDA $11.65M 5

Orchids Transformation Novem ber 5 , 2 0 1 3 Jeffrey Schoen appointed  Q2 2 0 1 6 President and CEO • Start-up of second May 2 0 1 5 converting line March 2 0 1 5 • Startup of new converting line • Successful start up of at Pryor new paper m achine at Pryor. I ncreased paper m aking capacity from 5 7 ,0 0 0 to 7 4 ,0 0 0 tons Novem ber 2 0 1 3 Q1 2 0 1 7 • I nitiated m anufacturing • Startup of expansion plan at Pryor paper m achine July 2 0 0 5 to upgrade paper March 2 0 1 6 m aking and converting I nitial • Startup of capabilities Public converting line 1 Offering in Barnw ell April 2 0 1 5 • Announce plans for Eastern May 2 0 1 4 Expansion in South Carolina • Entered W est Coast through acquisition of February 2 0 1 1 Fabrica • I nitiated quarterly dividend policy Transformative investments leading to expanded geographic reach and manufacturing capabilities 6

Capitalizing on Favorable Industry Trends Com pound Annual Population At-Hom e U.S. Tissue Private Label Tissue Sales ( 4) Grow th ( 1,2) Shipm ents ( 3) y/ y % Tons (millions) ($ in billions) 5.7 $3.4 5.6 1.3% $3.3 1.20% $3.2 1.2% 5.5 $3.0 5.4 1.1% 1.04% $2.9 $2.8 5.3 1.0% 5.2 0.9% 0.86% 0.8% 0.76% 0.7% 0.6% 2010 2011 2012 2013 2014 2015 2010 - 2014 2014 - 2020E 2010 2011 2012 2013 2014 2015 US Population Growth Orchids Target Region Demand highly correlated to Consumer staple with no Private label tissue segment    population growth substitutes sales continue to gain market share over nationally branded Growth of targeted region set Non-discretionary products   products to outpace national population with a high degree of growth household penetration (1) Source: Census estimates and Weldon Cooper Center for Public Service. (2) Orchids target region includes Arizona, Arkansas, California, Florida, Georgia, Kansas, Kentucky, Maryland, Missouri, Nevada, New Mexico, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Utah, Virginia, West Virginia. (3) Source: RISI. 7 (4) Source: Information Resources Inc. (IRI)

National Supplier of “At-Home” Tissue Products Pryor, Oklahom a Barnw ell, South Carolina Mexicali, Baja California Distribution locations Expansion allows us to pursue national customers as well as branch into new retail channels 8