2. • With leading positions in defensible and profitable
niche markets
• With catalysts to continue to enhance our growth
profile as we diversify from paper
• With financial strength and a clear track record of
value-adding capital deployment and attractive
shareholder returns
2
3. Image
oriented papers
for premium print,
luxury packaging
and other needs
Fine Paper
& Packaging
Technical
Products
3
Performance
products for
filtration, industrial
backings, and
other specialties
> $900 million
net sales
4. Broaden lead positions in defensible, core categories
Expand our geographic presence in transportation filtration
Build off our global specialty backings presence
Leverage our strong market position in fine paper
Invest to expand our presence in niche markets where our
capabilities can be extended and are valued
Invest in specialty filtration, premium packaging, performance media
Prioritize organic growth and supplement with value-adding acquisitions
Deliver consistent, attractive returns
Disciplined capital deployment and double-digit Return on Capital
An attractive dividend part of a meaningful return to shareholders
4
7. Filtration
Specialties
Backings
New Product Sales
(% launched within 36 months)
7
Key technologies
Multi-fiber forming
capabilities
Polymer chemistries
Saturation, coating
and surface treatments
R&D facilities in U.S.
and Germany
Ability to Meet
Specialized
Performance
Requirements
Customer
Intimacy
and
Qualification
Long-standing relationships
Global market-leading
customers
Intricate qualification
requirements
Ongoing joint product
development
11%
14% 16% 16%
2011 2012 2013 2014
Innovative
New Next
Generation
Products
8. '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14
Asia NAFTA Europe RoW
Other
NP
H&V
Ahlstrom
Global Transportation Filtration Market Size and Share
Global Market ~ US $1 billion
Solidly growing global market
Global market growing ~4%/year
Filter needs continuing to become more
demanding (fuel, oil, engine & cabin air)
Consumption: 30% OEMs/ 70% aftermarket
Neenah growing twice the market with
share gains due to advanced technology,
innovations and focus on higher value mix
Current operations based in Germany;
existing capacity likely consumed by 2017
Expansion Opportunity- NAFTA
Historical constraint on NAFTA entry expired
and customers support our global expansion
Proven success against NAFTA competitors
Capital-efficient investment satisfies global
demand by utilizing our existing site in
Wisconsin and repurposing a fine paper asset
Delivers attractive financial returns (mid-teen
IRR) and timed to continue growth trend
8
Net Sales
CAGR 8%
Source: company estimates
9. 9
Beverage Filtration
Micro/Ultrafiltration
(6-12% growth)
Water Filtration
Reverse Osmosis (RO)
(8-10% growth)
Environmental
(4-5% growth)
Energy
Management
(3-4% growth)
Thermal &
Acoustical
Insulation
(2-3% growth)
Important fast-growing markets
Currently representing ~ 25% of our
filtration sales, these products are in some
rapidly growing categories
Products employ a variety of
technologies, including cellulose and
synthetic wet laid nonwovens, glass and
melt blown substrates, to meet customer
needs
Bolstered by July 2014 acquisition of
North American filtration business from
Crane (annual sales of ~ $50 million)
10. 10
Backings
Sizeable global category with
primary end uses including tapes
and abrasives
Markets generally growing with
global GDP
Neenah focused on
performance niches requiring
downstream applications such as
coating and saturating
Global operations will mills in both
US and Germany
Specialties
Niche regional markets including
medical packaging, performance
labels, décor, non-woven wall
cover, image transfer
Markets generally growing at
above GDP rates with attractive
margins
Global operations will mills in both
US and Germany
11. 11
Graphic Imaging Premium Packaging
Unique colors,
textures and finishes
for high-end
commercial printing
and consumer needs
Image-enhancing
colors and textures
of premium folded
cartons, box wrap,
bags, hang tags
and wine, spirit and
food labels
Graphic
Imaging
90%
Pkg
10%
~ $410 million
2014 sales
12. 12
$273 $275
$373
$402 $409
13.6%
14.4%
15.0% 15.0% 15.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
-20
30
80
130
180
230
280
330
380
430
480
2010 2011 2012 2013 2014
Net Sales
OP %
2010 2011 2012
Growing organically via share
gains and organic expansion in
premium packaging
Highly accretive brand
acquisitions further consolidating
category and significantly
boosting returns
Strong brand equity supporting
consistently attractive margins
and cash flows
2013 2014
Fine Paper
& Packaging
13. 13
Demand is pulled as
brands are known > 2:1
over competition
Products specified by
printers, graphic
designers and other
end-use customers
Purpose-built assets
that are youngest in
the industry
Redundant and
unique capabilities to
produce a variety of
textures and colors
Recognized
Brand Equity
Superior Asset
Base and Cost
Position
Clear Market
Leadership
Widely distributed at
major wholesalers and
retailers
Technology tools helping
to drive demand and
supply chain efficiencies
14. Neenah
55%
Others
45%
Market Share
Retail Channel
~$150 million
NA Printing
& Writing
$20+ bn
Uncoated
Free sheet
$10 bn
14
Premium
Fine Paper
~ $650 mm
Graphic Imaging
Niche market focused on high
quality, textured and colored
papers used where image matters
While market growth is challenging,
we have grown organically and
through highly accretive
consolidating acquisitions
End uses include premium
commercial print needs, marketing
collateral and advertising, and
specialty retail products
Clear leadership in both
commercial and consumer/retail
channels
US-based operations and sales
Neenah
65%
Mohawk
25%
Others
10%
Market Share
Commercial Channel
~$500 million
15. Cosmetics
&
Fragrance
Alcohol
Electronics
Retail
Global
Packaging
Market
$42 Billion
Premium
Packaging
Market
$2 bn (5%)
Near Term
Targeted
$300
Million
(<1%)
24%
20%
11%
3%
Alcohol Electronics Retail Cosm /
Frag
2014 Neenah
Market Shares
15
Premium Packaging
Global market, growing 3-5%
annually
Fragmented category with no
market clear leader
Nicely fits with our high-end, color
and texture capabilities
$300 million targeted opportunity
focused in 4 niche areas (RACE)
16. 16
Consistent and profitable growth
High Return on Capital and Return on Equity
Efficient and prudent capital structure
Attractive shareholder returns, with a meaningful
cash component
17. 17
$ millions
2010 2011 2012 2013 2014
% 14
vs. 13
Sales $ 658 $ 696 $ 809 $ 845 $ 903 7%
Adj. EBIT1 52 59 80 85 94 11%
% ROS 7.9% 8.5% 9.9% 10.1% 10.4%
Adj. E.P.S.1 $ 1.47 $ 1.91 $ 2.78 $ 2.93 $ 3.28 12%
(1) Excludes one-time items for divestitures, integration and other costs as noted
in GAAP table
Top line growth in both segments via share gains,
new products, price/mix and acquisitions
Faster bottom line growth via margin
improvement and debt reduction
$1.47
$1.91
$2.78
$2.93
$3.28
2010 2011 2012 2013 2014
Adjusted
E.P.S.
8%
16%
22%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
Sales Adj. EBIT Adj. E.P.S
% Annual Growth
2010-2014
18. 8%
9%
11%
12% 13%
2010 2011 2012 2013 2014
18
Delivering improvements through:
Profitable growth/margin expansion
Focus on asset efficiency
Disciplined capital spending/good returning projects
Strategic moves (divest pulp, capital-efficient acquisitions)
WACC
~ 8%
Primary measure to evaluate investments, judge business performance
and also a key metric in management compensation plans
19. $245
$186
$182
$212
$234
2.8x
2.0x
1.6x
1.8x 1.8x
1
1.5
2
2.5
3
3.5
0
50
100
150
200
250
300
350
Dec 10 Dec 11 Dec 12 Dec 13 Dec 14
19
$ millions
Dec
2010
Dec
2011
Dec
2012
Dec
2013
Dec
2014
Bonds 5.25%
(due Nov. 2021)
$ 223 $ 158 $ 90 $ 175 $ 175
Global ABL
(due Nov. 2017)
- - 56 - 50
Term Loan - - 30 - -
Germany 22 28 6 37 9
Debt $ 245 $ 186 $ 182 $ 212 $ 234
Cash $ 48 $ 13 $ 8 $ 73 $ 73
Balance sheet providing financial strength and capacity for growth
Currently below targeted range of 2 – 3 x Debt/EBITDA
Global revolver providing added flexibility
Attractively-priced bonds, with debt rating of Ba3/BB-
Debt/Net Debt
($ millions)
Targeted
Debt/EBITDA
Range
2.0x – 3.0x
Actual
Debt/EBITDA
20. 20
Pro Forma Cash Flow
($ millions)
EBITDA $ 135
Interest Expense (10)
Other
(tax, wkg cap, pension, etc.)
(25 - 30)
Cash From Operations $ 95 – 100
Capital Spending (3-5% sales) (30 - 50)
Free Cash Flow $ 50 – 70
FCF/Share > $3.50
Cash Deployment
Priority on highest
returning investments
Organic initiatives
Value-adding M&A
Committed to cash
returns via attractive
dividend; moving
towards 3% yield target
Stock repurchase plan
of $25 million
Cash Generation
Strong operating
cash flows
Efficient asset base,
with maintenance
cap-ex of only
$10–12 mm/year
Pension plan well
funded
Significant US R&D
tax credits
$0.40 $0.44 $0.48
$0.60
$0.80
$0.96
$1.08
$1.20
0
0.2
0.4
0.6
0.8
1
1.2
1.4
Annual Dividend
(per share)
2010 2011 2012 2013
2H
2013
1H
2014
1H
2014
2H
2015
1H
21. 21
Performance-based and aligned with shareholders
All incentive plans are tied to performance achievement
Short-term bonus metric: growth in business profit/EBITDA
Approximately 50% of pay is equity-based (options and performance
shares) and management is required to hold a multiple of base salary
in Neenah stock (for example CEO = 6x)
Performance share metrics based equally on:
Return on Capital
improvement
Revenue growth
Free cash flow
(as a % of sales)
Total Shareholder Return
(vs. Russell 2000 value index)
22. Active process with dedicated resources
Demonstrated track record and competency in
deal execution and integration to capture value
Focused on growing and profitable, defendable
niche markets (filtration, performance media,
premium packaging, etc…)
May include bolt-ons as well as targets that
broaden a growth platform. Most targets sized
between $50 and $250 million of sales.
Strategic Growth
Touch points
Geographies
Technologies
Products/
End Markets
Customers
Disciplined process to ensure value-adding and attractive returns
22
23. • With leading positions in defensible
and profitable niche markets
• With catalysts to continue to
enhance our growth profile as we
diversify from paper
• With financial strength and a track
record of value-adding capital
deployment and attractive
shareholder returns
23
Transportation filtration
Backings & specialties
Fine papers
NAFTA filtration expansion
Premium packaging
M&A opportunities
Strong cash flow generation
Low debt/financial flexibility
Double-digit ROIC
Top quartile shareholder
returns and growing dividend
24. 24
For more information
visit our website: www.neenah.com
email: investors@neenah.com
Investor Relations
Bill McCarthy
VP, Financial Planning and Analysis &
Investor Relations
3460 Preston Ridge Rd., Suite 600
Alpharetta, GA 30005
Phone: (678) 518-3278
Email: bill.mccarthy@neenah.com
25. 25
Continuing Operations
$ millions 2010 2011 2012 2013 2014
EBIT (Operating Income) $ 55 $ 57 $ 70 $ 84 $ 87
Ripon Mill Close/(Gain on Sale) (3)
Acquisition integration costs 6 1
Other1 2 4
Adjusted EBIT $ 52 $ 59 $ 80 $ 85 $ 94
Depreciation & Amortization 29 30 28 29 30
Amort. Equity-Based Compensation 5 4 5 5 5
Adjusted EBITDA $ 86 $ 93 $ 113 $ 119 $ 129
Earnings (Loss) per Share $ 1.61 $ 1.82 $ 2.41 $ 2.96 $ 4.03
Ripon Mill Close/(Gain on Sale) (0.14)
Acquisition integration costs 0.22 0.02 0.11
R&D Tax Credit (0.08) (1.00)
Other1 0.09 0.15 0.03 0.14
Adjusted Earnings per Share $ 1.47 $ 1.91 $ 2.78 $ 2.93 $ 3.28
1 Results for year ended December 31, 2011, includes $2.4 million of costs related to the early extinguishment of debt, results for the year ended
December 31, 2012, include a supplemental executive pension plan settlement charge of $3.5 million and costs related to the early
extinguishment of debt of $0.6 million, results for the year ended December 31, 2013, include integration and restructuring costs of $0.6 million, a
post-retirement benefit plan settlement charge of $0.2 million and costs related to the early extinguishment of debt of $0.5 million, results for the
year ended December 31, 2014, include integration and restructuring costs of $2.9 million, a post-retirement benefit plan settlement charge of
$3.5 million and costs related to the early extinguishment of debt of $0.2 million.
26. EBITDA, Adjusted EBITDA and Free Cash Flow as presented in these slides, are supplemental measures
of our performance, and Net Debt, as presented in these slides, is a supplemental measure of our
financial position. In each case, these measures are not required by, or presented in accordance
with, generally accepted accounting principles in the United States (‘‘GAAP’’). EBITDA, Adjusted
EBITDA and Free Cash Flow are not measurements of our financial performance or financial position
under GAAP and should not be considered as alternatives to net sales, net income (loss), operating
income or any other performance measures derived in accordance with GAAP or as alternatives to
cash flow from operating activities as a measure of our liquidity.
Adjusted EBITDA consists of operating income plus depreciation, amortization and stock-based
compensation expense. We also exclude acquisition-related costs, gain (loss) on sale of fixed assets,
SERP settlement charge and costs related to early retirement of debt, as these amounts are not
considered as part of usual business operations. Our management considers EBITDA, Adjusted EBITDA
and Free Cash Flow to be measurements of performance which provide useful information to both
management and investors. Because EBITDA, Adjusted EBITDA and Free Cash Flow are not
calculated identically by all companies, our measurements of EBITDA, Adjusted EBITDA and Free
Cash Flow may not be comparable to similarly titled measures reported by other companies. All
amounts in USD unless otherwise noted.
EBITDA, Adjusted EBITDA and Free Cash Flow, as presented herein, are 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 is included as an
appendix to this presentation.
26
27. 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 Paper, Inc. at the time this presentation was
made. Although Neenah Paper 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
27
