we manufacture growth

| We Manufacture Growth

We Manufacture Growth


70% 30%

Business Segments

Americas

Headquarters

Manufacturing facilities

New locations (Itasa)

Europe Malaysia

Global Footprint

A global specialty materials manufacturer focused in premium markets

Performance-based

TECHNICAL PRODUCTS

Filtration

Industrial Solutions

Digital Transfer Papers

Image-orientedFINE PAPER &PACKAGINGCommercial

Consumer

Premium Packaging

Financial Highlights (2020)

$793MMNet Sales

$101MMADJ. EBITDA

$75MMFree Cash Flow

10% ROIC 5 year average

3.4%Dividend Yield

1.6xNet Debt/Adj EBITDA

NetSales

2

| We Manufacture Growth3

A diversified portfolio of products serving various industrial and consumer end markets

Technical Products Fine Paper & Packaging

Transportation Filtration,

Industrial Filtration, Face Masks

High end print papers

Dye Sublimation, Heat Transfer,

other DTP

Backings, Labels, Tapes, Specialties

Consumer papers, planners,

journals

Packaging and labels for spirits, retail and beauty


ManufacturingFinal Converting

& Packaging End ProductRaw

MaterialsValue-add Processing

Our products are critical to performance,but a small part of the cost of end-product

A variety of technologies (wet-laid, melt-blown, coating and saturating) using multiple materials (fibers, glass, chemicals, polymers) to impart desired performance

with customized solutions

4


✓ Often #1 or #2 in markets with strong barriers to entry✓ Long-standing customer relationships✓ Pricing to offset input cost changes supported by our

product performance and brand strength

Financial strength and

discipline

✓ Strong balance sheet/robust cash flow generation✓ Financial strength is valued by our customers✓ History of balanced capital deployment to drive added

value

Effective technology

base

Leading positions in profitable,

defensible markets

5

✓ Wide array of advanced technical capabilities✓ Some of the newest and most cost-effective assets✓ Global footprint aligned with desired local supply chains

for customers


15% 14%

20%

Tech Products Fine Paper & Pkg

0.000.020.040.060.080.100.120.140.160.180.20

2020 Actual

2005

Today

Net Sales

Increasing our organic growth rate, margins and capital efficiency* Includes Itasa acquisition

6


•Net Sales (2021 est.)

•EBITDA Margin:

•Historical growth

•Purchase price

•Annual synergies

• Financing

•Post-deal leverage

Key Transaction Financials

Strategic Logic

Europe60%

Americas26%

RoW14%

Hygiene21%

Tapes18%

Industrial14%

Graphic Arts12%

Composites

11%

Labels11%

Medical 6%

Other7%

• Builds and extends specialty coating capabilities

• Overlaps customers and end-markets

• Accretive to margins and earnings, with strong cash flows

• Solid foundational presence

• Related technologies

• Consistent growth overtime

Net Sales

7

~$140 mm

mid-teen

8% CAGR

€205mm

$4 mm (excl. interest savings)

Term Loan B increase to $450 mm

~3x debt/EBITDA


• Focused on four large, growing, profitable and defensible markets that are aligned with our core capabilities and technologies

• Resources biased toward growth – both organic and M&A

Filtration MediaSeparation and purification of air and liquids for critical applications

Custom Engineered MaterialsSpecialty media for demanding end-use markets

Premium Packaging & DesignEnriching experience through color, texture, and design

Specialty CoatingsEnhancing substrates through chemical and polymer science

• Air (HVAC/HEPA, Industrial)• Water purification• Transportation• Food & Beverage

• Composites• Acoustical/thermal insulation• Glass mat & nonwovens

• Spirits & Food • Consumer & retail solutions• Gift cards

• Digital transfer media• Performance labels • Silicone release liners

2014Crane

2017Hazen

2015FiberMark

2017Coldenhove

Recent Acquisitions

2021ITASA

8


• Revitalized innovation process to drive share gains and expand market reach

• Active M&A process supplementing organic growth; targets typically $25 - $250 MM

Top Line

Targeted platforms more than double our addressable markets

• Installed capacity in place to support growth and leverage cost structure in filtration, specialty coatings, packaging and other strategic growth markets

• Neenah Operating System being implemented globally and will generate $20 MM/yr of cost savings end of curve

Top and bottom line to benefit from strategic execution in targeted growth platforms

Bottom Line

Initiatives underway to increase margins


$352 $336 $353

$404 $429

$466 $502

$583 $542

$509

14%15%

15%15%

16%18%

15%13% 12%

15%

-3%

2%

7%

12%

17%

22%

27%

32%

37%

42%

$100

$200

$300

$400

$500

$600

$700

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Net Sales

Adj. EBITDA %

CAGR4%/year

NetSales

Reduction Asia Tariffs and Trade

11

Digital Transfer

Papers

Industrial Solutions

Filtration


35

85

135

185

05 07 09 11 13 15 17 19

Transp. Filtration SalesOrganic CAGR 6%

Europe NAFTA Asia RoW

OtherNeenahH&VAhlstrom

Global Transp. Market $1+ bn

Transportation Market (70%)

• Leader in Europe, growing share in US , 50% cars: 50% heavy duty/trucks

• EVs growing though demand for our media to grow for at least 20 years

Industrial Filtration Markets (30%) continue to expand

• Sole US reverse osmosis water filter component

• High-end face mask media for Europe

• Substantial opportunities in other fast-growing markets with existing assets and technologies

Growth Strategies

• Strong innovations, preferred products, strong customer joint relationships

• Grow transportation share in NAFTA and maintain leadership base in Europe

• Expand in other filtration markets

12

Market Characteristics

• Global, diverse markets with GDP or GDP+ growth

• Blue chip customers who require customized performance often imparted through unique coatings

• Trends include increased “at home” use, customized (digital) printing, and need for lighter weight materials

Growth Strategies

• Expand our winning digital transfer technology in new markets & geographies

• Develop innovative product solutions

• Leverage our global footprint


$275

$402$428 $436 $443 $452 $455

$446$397

$284

18%16% 16% 16%

18% 18%17%

14%17%

14%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

-44

1220283644526068768492

100108116124132140148156164172180188196204212220228236244252260268276284292300308316324332340348356364372380388396404412420428436444452460468476484492500

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Net Sales

Adj. EBITDA %

Premium Packaging

Commercial

NetSales

CAGR0.3%/yr

Market leading brands, specified by customers

Purpose-built, best in class assets with array of colors and textures

Broad portfolio of premium packaging media with in-house

design know-how

Divested non-strategic mill

Consumer

13


Neenah66%

Mohawk FP 15%

Others19%

14

Retail50%

Beverage30%

Beauty20%

Addressable Market$450 MM

Neenah Brands

59%

Private Labels21%

All Other20%

Market Share %

Market Share %


• Commercial print market has declined with a migration towards digital substitution

• Commercial print sold mostly through distributors where Neenah is highly valued due to marketing and supply chain expertise

• Clear leader in a mature and highly consolidated US market

• High quality, well-known brands distinguish Neenah from commodity print papers

Growth Strategies

• Maintain and grow brand equity with winning customers

• Distributors shifting share to Neenah due to brand strength and company stability in a declining, post COVID market

• Proven cost management to maintain strong cash flow/capital efficiency


• GDP+ growth, with our presence primarily in US

• Focused on “high value items in small packages” where the unboxing experience is valued by premium brands

• ~20% share today in fragmented market with few pure premium players

• Attractive recurring revenue stream in labels, premium folding board, box wrap, gift cards, signs and wall covering

• Sustainability as a growing macro trend & requirement by end users looking for plastic alternatives

Growth Strategies

• Leverage our custom solutions, in-house design & prototyping capabilities to drive sales with End Users

• Focus on the plastic alternatives space accelerating growth in premium packaging

• Drive innovation by offering sustainable solutions highly valued by companies and consumers

• Utilize fine paper assets for cost and capital efficiency and work to offset secular commercial print pressures with growth in packaging and design


• Market in modest decline but less than commercial driven by trends in DIY Crafting and Digital Detox

• Sales shift from traditional Office Super Stores into Mass and .com

• Consumer trends towards design and personalization

• Brands consistently outperform the market and gaining share

• Astrobrights® as the #1 brand in Brights Papers

• Southworth® #1 in Business Papers

Growth Strategies

• Leverage Category Captain position to expand into adjacent categories around the “desk”

• Grow “share of desk” with new consumer products (journals, planners, teacher tools)

• Omni-channel presence as market evolves

• Proven cost management to maintain strong cash flow/capital efficiency


Swift actions protect employees and liquidity

• New policies and protocols to protect employees

• Disciplined spending & supply chain management to deliver > $7 MM of ongoing savings

• Available liquidity of over $175 MM as of 12/31

Strategy gaining momentum pre-COVID

$110$115

$122

$131

11% 12% 13% 14%

9%

14%

19%

24%

29%

LTM Q219 LTM Q319 LTM Q419 LTM Q120

95

100

105

110

115

120

125

130

135

EBITDA

Margin

2019 2020

Qtr2 Qtr3 Qtr4

• Sales growing with innovative new product launches and ramp up in North America filtration

• Margins recover with operational efficiencies and pricing actions to overcome steep run up in input costs

Consistent recovery from Q2 low point• Sales recovering, with fastest improvements in filtration and

other Technical Products

• Both segments quickly back to double-digit EBIT margins and Technical Products FY 2020 > 2019

• Full recovery in Technical Products in early 2021 while Fine Paper & Packaging regains 90% of pre-COVID sales

16


$626

$738$782

$840$888

$942$980

$1,035

$939

793*

14% 14% 15% 15%16% 17%

14%

12%13% 13%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

0

200

400

600

800

1000

1200

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Net Sales

Adj. EBITDA %

CAGR2.4%/yr

• A solid history of growth driven by share gains, new products, price/mix improvement and acquisitions

• Revenue decline in 2020 due primarily to COVID-19 pandemic, especially in Fine Paper & Packaging. Solid recovery in Technical Products, led by Filtration

• Margins to improve with:

✓ Neenah Operating System implementation

✓ Filtration capacity ramp-up

✓ Growth in profitable targeted markets

17

*Recent results reflect devastation, Asian Tariff and COVID-19


•

•

•

•

•

Return to Shareholders

$180

Organic Cap-Ex$150

Acquisitions$300

Five-year capital deployment~$630 MM

18


Cash & Equivalents

$3 $5 $10 $9 $37

175 175 175 175 192

46 80 6426 3

1.4x1.8x 1.9x

1.6x1.9x

0

1

2

3

4

5

0

50

100

150

200

250

300

350

400

Dec-16 Dec-17 Dec-18 Dec-19 Dec-20

$221$255

$47$57 $55

$76 $75

5% 6% 5%8% 9%

2%

7%

12%

17%

22%

2016 2017 2018 2019 2020

20

30

40

50

60

70

80

90

• Efficient asset base/capital spending needs

Target 2-4% of sales; maintenance cap-ex ~$15 MM

• Strong balance sheet and liquidity

Flexible $450MM Term Loan B with a variable rate currently at 3.5% due 2028

Substantial capacity available with $175 MM Global Revolving Credit Facility

All debt facilities considered covenant-light

• Attractive direct returns to shareholdersHistory of a consistent and growing dividend

Modest share buybacks to offset dilution

• Capital deployment prioritizes highest returns

(1-organic, 2-M&A, 3-debt reduction)

Debt/EBITDA

$239$201 $194

$0.40 $0.44 $0.48$0.70

$1.02$1.20

$1.32$1.48

$1.64$1.80 $1.88

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2

2010 2012 2014 2016 2018 2020

19


Environmental Social Governance

• Corporate Sustainability Report published annually in line with SASB industry guidelines

• Double-digit reductions achieved in greenhouse gas, water and energy usage (energy usage = only 8% reduction) vs. baseline

• 100% of wood fiber purchases are FSC-certified or controlled

• Largest purchaser of Green-E in the state of Wisconsin

• Invested in Regenerative Thermal Oxidizers to significantly reduce emissions and natural gas consumption at two of our mills

• Reinvigorated our innovation efforts to develop sustainable products that drive sustainable, long-term value creation

• Redefined our mission, vision, values and strategy, providing clear direction and focus on key drivers that will add value and support growth in our four targeted platforms

• Workplace safety remains #1 commitment and priority

• Along with our employees, contribute over $250,000 annually to local charities in our communities

• Dedicated resources reinforcing commitment to diverse, inclusive and equitable workforce; on-going employee training; establishing Employee Resource Groups; and developing best practices for recruiting

• Strong industry relationships Board seats on Paper and Packaging Board and National Paper Trade Association Packaging Board and National Paper Trade Association

• Increasingly diverse Board, Management and Workforce; >10% increase in gender and racial diversity over past 5 years

• Board providing risk oversight on Climate Change, Cybersecurity and Human Capital Management

• Board providing risk oversight on Climate Change, Cybersecurity and Human Capital Management

• “Pay for Performance” compensation plan aligned with stakeholders

• Guidelines and ongoing training on our Code of Business Conduct and Ethics and other trending topics

20


✓

Financial strength and

discipline

Effective technology

base

Leading positions in profitable,

defensible markets

✓

✓

✓

✓


For more information

Visit Our Website: www.neenah.com

Email: [email protected]

Investor RelationsBill McCarthyVice President- Investor Relations

3460 Preston Ridge Road

Suite 600

Alpharetta, GA 30005

Phone: (678) 518-3278

Email: [email protected]

22

http://www.neenah.com/

mailto:[email protected]

mailto:[email protected]


Statements in this presentation which are not statements of historical fact are “forward-looking statements” within the “safe harbor”' provision of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on the information available to, and the expectations and assumptions deemed reasonable by, Neenah, Inc. at the time this presentation was made. Although Neenah believes that the assumptions underlying such statements are reasonable, it can give no assurance that they will be attained. Factors that could cause actual results to differ materially from expectations include the risks detailed in the section “Risk Factors” in the Company’s most recent Form 10-K and SEC filings.

In addition, the company may use certain figures in this presentation that include non-GAAP financial measures as defined by SEC regulations. As required by those regulations, a reconciliation of these measures to what management believes are the most directly comparable GAAP measures would be included as an appendix to this presentation and posted on the company’s web site at www.neenah.com

24

http://www.neenah.com/

we manufacture growth

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