PAPER-BASED SOLUTIONS

FOR NICHE MARKETS WORLDWIDE

UBS Securities

Paper and Forest Products Conference

September 13, 2012

Henry C. Newell

President and Chief Executive Officer

Sherri L. Lemmer

Senior Vice President and

Chief Financial Officer

Forward Looking Statements

The matters discussed in this presentation concerning the company’s future performance

or anticipated financial results are forward-looking statements and are made pursuant to

the safe harbor provisions of the Securities Reform Act of 1995. Such statements involve

risks and uncertainties which may cause results to differ materially from those set forth in

these statements. Among other things, these risks and uncertainties include the strength

of the economy and demand for paper products, increases in raw material and energy

prices, manufacturing problems at company facilities, and other risks and assumptions

described under “Information Concerning Forward-Looking Statements” in Item 7 and in

Item 1A of the company’s Form 10-K for the year ended December 31, 2011. The

company assumes no obligation to update or supplement forward-looking statements that

become untrue because of subsequent events.

Non-GAAP Financial Measures

This presentation refers to certain non-U.S. GAAP financial measures. A reconciliation of

those numbers to U.S. GAAP financial measures is provided on the Company's website

at: www.wausaupaper.com/investors.

IR Sept 2012 2

Company Profile

• Founded in 1899

• Provider of paper-based

brands and solutions for

Tissue and Technical

Specialty markets

• Five manufacturing

facilities in four states

• ≈ $850 million in revenues*

• 2,000 employees

Mosinee, WisconsinCorporate Headquarters

Middletown, OhioTissue

Harrodsburg, KentuckyTissue

Brainerd, MinnesotaTechnical

Rhinelander, WisconsinTechnical

Mosinee, WisconsinTechnical

* Continuing Operations

IR Sept 2012 3

Vision, Purpose and Goals

• We will be the leading provider of paper based, environmentally sensitive brands and solutions to the markets we serve, driven by our business model of collaborative innovation

• We will be the leading provider of paper based, environmentally sensitive brands and solutions to the markets we serve, driven by our business model of collaborative innovation

Vision

• A sustainable enterprise that delivers long-term attractive returns• A sustainable enterprise that delivers long-term attractive returns

Purpose

• 4-5% Revenue Growth (CAGR)

• +15% Return on Capital Employed

• Earn the Right to Accelerate Growth and Investment

• 4-5% Revenue Growth (CAGR)

• +15% Return on Capital Employed

• Earn the Right to Accelerate Growth and Investment

Strategic Goals (Five Year):

IR Sept 2012 4

Operating Strategies

• Focus on Strategic Markets

• Drive growth through Strategic Innovation

• Deploy Integrated Value Delivery System(s)

aligned to strategic customers

• Build a Strategic Operations Platform to

support market growth

• Instill Sustainable Business Practices

IR Sept 2012 5

Management Team

• Henry C. Newell (54)

– President & CEO – January 2012

• Sherri L. Lemmer (45)

– Senior Vice President and Chief Financial Officer – May 2012

• Matthew L. Urmanski (39)

– Senior Vice President, Tissue – March 2012

• Michael W. Nelson (45)

– Senior Vice President, Paper – March 2011

• Patrick J. Medvecz (49)

– Senior Vice President, Operations – March 2011

IR Sept 2012 6

We Operate in Two Business Segments

Paper

Paper-based solutions designed

for technical requirements of

global Food, Coated & Liner and

Industrial & Tape markets

Tissue

Washroom solutions for

away-from-home Towel

and Tissue markets

41%

% of consolidated LTM sales*

% of consolidated LTM sales*

59%

* Continuing operations for LTM ended June 30, 2012IR Sept 2012 7

Tis

su

eP

ap

er

Brainerd, Minnesota Mosinee, Wisconsin Rhinelander, Wisconsin

Harrodsburg, KentuckyConverting

Harrodsburg, KentuckyTissue Capacity Expansion

Middletown, Ohio

Operations Aligned to Support Growth

IR Sept 2012 8

Our Markets (Tons)

Packaging

50%

Printing &

Writing 27%

Specialty7%

Tissue

8%

Newsprint

8%

Specialty ~25MM

Tissue ~28MM

World Paper & Board Demand~400MM

Our Market Segments

At Home

77%

Away-from-Home 23%

North America 9%

Food 5%

Tape & Industrial 24%

Coated & Liner 5%

Sources: AWA, RISI, and Company

IR Sept 2012 9

Markets We Serve

IR Sept 2012 10

SECTOR TISSUE FOODTAPE &

INDUSTRIAL

COATED &

LINER

SolutionsWashroom

Solutions

Food Packaging

& Processing

Solutions

Engineered

Solutions

Pressure Sensitive

Solutions

End Use

Markets

• Educational

Institutions

• Office Buildings

• Lodging

• Healthcare

• Food Service

• Consumer Packaging

• Bakeries

• Food Processors

• Food Service

• Consumer Packaging

• Construction

• Automotive

• Manufacturing

• Healthcare

• Consumer Packaging

• Alternative Energy

• Aerospace

• Medical

• Hygiene

Product

Categories

• Towel Products

• Tissue Products

• Dispensing Systems

• Greaseproof

Applications

• Microwavable

Applications

• Baking Papers

• Crepe Tape Base

• Coating &

Laminating Base

• Abrasive & Specialty

Saturating Base

• Interleavers

• Technical Specialties

• Silicone Coated

Papers

• High Performance

Release Liners

• Supercalendared Kraft

• Specialty Glassines

Wausau Paper Revenue

2011 $1.0B 2012 Expected $0.9B

Print

33%

Tissue

31%

Transition8%

5-Year $1.1B

Tissue 52%

Food15%

Tape & Industrial

18%

Coated & Liner

15%

Executing Growth Strategy (Post Print)

Food16%

Tape & Industrial

19%

Coated & Liner

16%

Tissue 41%

IR Sept 2012 11

Significant Actions in 2011-2012

• Capital Investments– $27MM Brainerd Investment (Tape)

– $220MM Tissue Expansion

• Discontinued Operations– Print & Color Sale

– Brokaw Site Shutdown and Sale

• Financing– Sale of Timberlands

– Favorable Financing Construct

IR Sept 2012 12

Tissue

IR Sept 2012 13

Lodging /Other 23%

Food Service40%

Healthcare15%

Education 10%

Office Buildings

12%

North American Away-From-Home Tissue(Tons)

Demand 2.5MM

Lodging / Other 26%

Food Service 3%

Healthcare8%

Education

27%

Wausau Paper .2MM

Office

Buildings

36%

Sources: AF&PA, RISI , and Company

IR Sept 2012 14

Tissue - Overview

IR Sept 2012 15

• Annual sales ≈ $343MM (LTM*)

– ≈ 8% share of North American AFH market

– Consistently achieving above-market growth and margins

• Broad line of towel, tissue, soap and dispensing systems

• Sold exclusively through distribution

• Major $220MM investment underway:

– Expand premium offering

– Raise product quality

– Reduce cost to manufacture

* LTM ended June 30, 2012

Tissue Expansion $220MM

• Highly flexible manufacturing asset

(conventional tissue, premium towel & tissue)

• Premium attributes equivalent to TAD (virgin)

• Fiber flexibility – 100% recycled fiber or virgin

• Strong competitive cost position

• 75,000 TPY

IR Sept 2012 16

Enhanced Products

• Full spectrum of quality possible

(recycled & virgin)

• Improved mid-grade Dubl-Nature®

• New to world - premium 100% recycled fiber

products

• First Green Seal™ eligible premium products

IR Sept 2012 17

Paper

IR Sept 2012 18

Paper Segment

IR Sept 2012

Bakery & Restaurant

Food Processing

Consumer Packaging

Markets

INDUSTRIAL & TAPE

Building & Construction

Automotive & Electronics

Diversified Manufacturing

Markets

FOOD COATED & LINER

Aerospace Composite

Alternative Energy

Electronics & Consumer

Markets

19

90% of Sales

Customer Specific800 Unique Grades

Tape & Industrial6.1MM

SpecializedCommodity

66%

Technical Specialty

34%Specialized Commodity

65%

Coated & Liner1.3MM

Coated

16%

Technical

Specialty

52%

Food1.2MM

Technical Specialty

35%

Specialized Commodity 32%

Our Markets: 8.7MM

Specialty Focus: 3.7MM

Wausau Capacity: ≈0.3MM

Today’s Specialty is Often Tomorrow’s Specialized Commodity

Worldwide – Technical Specialty(Tons)

Sources: AWA and Company

IR Sept 2012 20

Paper Overview

• Annual Sales ≈ $500MM (LTM*)

• Growing Technical Specialty

• Expanding Margins Despite

Elevated Input Costs

• 2011 Strongest Technical

Specialty Profit in 13 Years

• Exited Print & Color

IR Sept 2012 21

* LTM ended June 30, 2012

Brainerd Machine Rebuild

• $27MM rebuild completed Q1 2011

• Supports global customer growth

• Lowest cost crepe tape asset in the

world across full spectrum of qualityIR Sept 2012 22

WHY WAUSAU?

“Investment Thesis”

IR Sept 2012 23

Investment Thesis

Wausau: Grow at Target Margins• 4-5% Revenue Growth (CAGR)

• 15% Return on Capital Employed (ROCE)

Paper: Earn the Right to Grow (ROCE Improvement)• Stable Revenue

• 7-8% Operating Margins within 36 months

• 16% ROCE

Tissue: Investing $220MM (High ROCE Business)• +6% Case Growth (CAGR)

• 13-15% Operating Margins

• 20-25% ROCE

ROCE: Return on Capital Employed (pretax)IR Sept 2012 24

UBS Securities

Paper and Forest Products ConferenceSeptember 13, 2012

FINANCE

Sherri L. Lemmer

Senior Vice President and Chief Financial Officer

IR Sept 2012 25

Financial Overview($MM)

($MM)

Consolidated Net Sales

Adjusted EBITDA

Revenue Growth

Tissue: +3-4% (2012)

+6% CAGR (5-year)

Technical: +8% (2012)

+$500MM Revenue (5 year)

EBITDA Improvement

Tissue Expansion

Growth, Cost Structure & Mix

Technical Growth

Volume & Margin Improvement

IR Sept 2012 26

$1,032 $1,056 $1,035$1,100

$823

Net sales from continuing operations, unauditedPrint Exit Transition

4-5% CAGR

Adjusted EBITDA from

continuing operations

Adjusted EBITDA as

originally reported

See Appendix for reconciliations of Consolidated Net Sales from continuing operations and Adjusted EBITDA.

• Tissue Expansion

• Technical Growth

Capital Investment Funding

($MM)

* Net of $33.1MM in cash & cash equivalents

($MM)

Capital Spending

Net Long-term Debt

• Expect $162MM

2012 Capital Spend

• $325MM Capacity under

Existing Credit Agreements

• Capacity Secured to Fulfill

Funding Obligations

IR Sept 2012 27

Change in Net Debt

Six Months Ended

6/30/12

Year Ended

12/31/11

($MM)

(1) See Appendix for reconciliation of EBITDA(2) See Appendix for details of the “Other” category

EBITDA (1) $37.9 $29.8

Capital Expenditures, Net of Grants (73.6) (77.5)

Change in Receivables 0.8 6.4

Change in Inventories 32.4 19.0

Change in Other Assets/Liabilities (18.7) (19.2)

Proceeds on Disposals 20.5 43.8

Other (2) (15.2) 22.1

Net Change in Debt $(15.9) $24.4

Beginning Net Debt $101.0 $125.4

Ending Net Debt $116.9 $101.0

IR Sept 2012 28

Value Drivers

2012 Five Year Target

Tissue

Growth (Cases) +3-4% +6% (CAGR)

Operating Margin 13% 13-15%

Paper

Growth (Technical) +8%

(Volume)

+$500MM

(Revenue)

Operating Margin Cash Focus 7-8%

IR Sept 2012 29

Our Near-Term Outlook

• Tissue

– Expanding Margins

– Demand Recovery

– Gains through Operations

– Major Investment on Plan

– Customer Engagement

in 2012 New Product

Strategy: High

• Paper

– Stable Revenue

– Transition of Print & Color

– Outlook - Selective Demand

Improvement - Global

Recovery Inconsistent

– Commercialization of

Brainerd Tape Investment

IR Sept 2012 30

PAPER-BASED SOLUTIONS

FOR NICHE MARKETS WORLDWIDE

UBS Securities

Paper and Forest Products Conference

September 13, 2012

Henry C. Newell

President and Chief Executive Officer

Sherri L. Lemmer

Senior Vice President and

Chief Financial Officer

QUESTIONS

IR Sept 2012 32

APPENDIX

IR Sept 2012 33

Wausau Paper

Adjusted Return on Capital Employed

See reconciliation of Adjusted ROCE.

IR Sept 2012 34

• Five-year Target + 15%

Adjusted ROCE

• Pressure as we Start-up

Tissue Machine

6/30/12 12/31/11

Cash & Equivalents $33.1 $26.7

Net Working Capital $58.2 $71.0

Long-Term Debt $150.0 $127.7

Shareholders’ Equity $204.7 $196.2

Debt/Total Capital* 42.3% 39.4%

Total Borrowing Base $325

Remaining Available Borrowing Capacity $175

Balance Sheet Highlights

($MM)

* The calculation of Debt/Total Capital is not intended to be used for purposes of calculating debt covenant compliance

IR Sept 2012 35

Second Half Outlook

• Cautious Economic Outlook

• New Tissue Machine

Startup

• Brainerd Machine

Commercialization

• Full Year Adjusted EPS

$.39-$.41 per Share

2012

IR Sept 2012 36

2012 Guidance

($MM)

IR Sept 2012 37

Continuing Operations 2012 Targets

Depreciation, Depletion and Amortization $45-$48

Interest Expense, net of Capitalized Interest $2-$3

Tax Rate 37%

Capital Expenditures $162

Pension:

Cash Contributions $25

Non-Cash Pension Expense $19-$21