1. CREDIT SUISSE NYSE : NP
INVESTOR CONFERENCE New York City
February 2012
2. Forward Looking Statements
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
2
3. Company Overview
Neenah is a leader in performance-based technical products
and high-end printing papers used where image matters.
Technical Products
Specialized, performance-based products
End markets: filtration, industrial backings,
labels, graphics & identification and others
Technical Fine Manufacturing in the U.S. and Germany
Products Paper
Fine Paper
Premium textured and colored papers
End markets: high-end communications and
printing, packaging, crafting and labels
Pro Forma Manufacturing in the U.S.
Net Sales
3
$800 million
4. A History of Strategic Execution
Successful execution of transformation Technical
Products
strategy following company formation in 2004
Leading positions in profitable specialty
markets with meaningful barriers to entry Fine
Sales Mix
Paper
Positioned to pursue new opportunities with Evolution
Pulp
sound capital structure and strong cash flows 2004 2005 2006 2007 2008 2009 2010 2011
Recent catalyst for growth and value creation following January 2012 purchase
of premium brands from Wausau Paper Corp.
Timeline
2005 2006 2007 2008 2009 2010 2011 2012 of
Activities
4
5. Financial Momentum
E.P.S.1
$ millions 2009-2011 $1.91
2009 2010 2011 $1.47
Revenue $574 $658 $696 $0.76
Operating Income1 34 52 59
2009 2010 2011
E.P.S.1 $0.76 $1.47 $1.91
% Change
2011 vs. 2010 30%
EBITDA1 $73 $87 $93
14%
Debt $319 $245 $186 6%
Return on Capital 6% 8% 9%
Sales EBIT E.P.S.
Top line growth via share gains, new products and pricing power
Bottom line reflecting sales growth, improving margins and lower debt costs
Cash generation used for debt reduction and dividend increases
Return on Capital approaching desired double-digit levels
5
(1) Excludes one-time items for closure/sale of Ripon mill, debt refinancing and tax adjustments
6. Technical Products
Filtration
High-performance filtration
media for fuel, air, oil, cabin air
in transportation, as well as
products for other markets
Specialties
Products for a variety of end
markets including labels, non-
woven wall cover, medical
packaging, durable print
media and other markets
Industrial Backings
Saturated and coated papers
used for backing of specialty
abrasives and tapes
6
7. A Diversified Global Portfolio
Est.
Selected Key Filtration
Segment Market
Competitors Customers
Growth
Specialties Tape
Ahlstrom, Mann & 2x
Filtration Hummel,
H&V Mahle, Hengst GDP
Abrasives
Specialties Sales by
(Label, Medical Variety of
Avery Product Group
Pkg, Image competitors with
Dennison, 3M, GDP+
Transfer, limited
Saint-Gobain
Decorative, concentration
Tag…)
Industrial
3M, Shurtape, Europe
Wausau, IPG, Tesa, GDP
Backing- Tape Ahlstrom
Alpha Beta,
RoW
Industrial 3M, St. Gobain,
Ahlstrom,
Backing- Hangzhou Star, GDP Asia North
Munksjo
Abrasives Starcke America
Sales by
Geography 7
8. Success Factors
Ability to meet customer performance needs with specialized technologies:
Multi-fiber technologies and forming capabilities
Saturation, coating and surface treatments
Polymer chemistries
Longstanding relationships and ongoing joint product development with
global blue chip customers who are leaders in their markets
Specialized know-how supported by R&D centers in Germany and the U.S.
Strong
Specialized Performance Customer Intimacy and
Requirements
Barriers Qualification
to Entry
8
9. Key Priorities: Technical Products
Grow share by developing and commercializing innovative new products
Drive growth in higher value specialty products (e.g. melt blown filtration,
super smooth abrasives, and specialized labels)
Expand international presence in filtration and other areas by growing with
and following our global customers
Enter adjacent markets that are growing and profitable and value technical
know-how and performance
9
10. Filtration: A Platform for Growth
Neenah Net Sales
Transp. Filtration
Organic Growth
CAGR 8% • Historically, Neenah has focused in the European
auto filtration market (fuel, oil, engine & cabin air)
• The business has grown at a compound annual
rate of 8% from 2003-11
2003 2004 2005 2006 2007 2008 2009 2010 2011 Global Transportation Filtration
Market Size and Share
Global Market ~ US $1 billion
Internationalization
Global engine performance and filter Other
requirements continue to become more demanding NP
H&V
Alignment with leading global filter customers can Ahlstrom
lead to an expanded geographic presence
NAFTA Asia Europe So. Amer. RoW
Life
HVAC Science
/Air
Process
& Food Market Adjacencies
Dust Other filter applications and markets share
Specialty Control Water
filtration
similar technologies and represent areas of
media markets potential growth
> $4 billion Gas Transpo/
Turbine H. Duty 10
Source: company estimates
11. Fine Paper
Graphic Imaging
Unique colors, textures and
finishes for identity, print
collateral, invitations,
advertising, and envelopes
Packaging & Label
Image enhancing colors and textures
of premium folded cartons, box wrap,
bags, premium wine, beverage, and
spirit labels, food labels, hang tags
Brights
Deep , rich, vivid colors and
textures for flyers, posters,
school supplies, crafting,
direct mail advertising and
promotions
11
12. Extending our Reach
Uncoated Other
Free Sheet 5%
Premium fine papers represents a sliver
Finch
5%
of the uncoated free sheet (UFS) market. Mohawk
30% Premium
Value Share
UFS has declined 3-4 percent per year
over the past ten years Premium NP
~3%
60%
Neenah is the clear leader in what is
essentially a two-player market for Source: company estimates
premium fine papers and has gained Where We What
Compete We Sell
share as the market consolidates Color
Digital
Brights Copy
Papers 100% PCW
Premium Packaging
Luxury Labels
Packaging Electronic
We are successfully identifying and Crafts
Scrapbooking
Core
Printing
Applications
Writing,
pursuing new areas of growth to help Text &
Cover
offset market challenges Crane China
Europe
Envelopes South
Durable
America
Papers Middle
Retail East
How Where 12
We Sell We Sell
13. Success Factors
Leading brands that are often specified by designersNP
and printers and that provide pricing power
Highest quality papers with a wide palette of colors
and textures to serve specialized high-end print needs
Purpose-built assets providing an effective cost position
and barrier to entry
Selective distribution resulting in brand pull and
encouraging strong merchant performance
Technology and supply chain tools to help customers
optimize performance and grow share with Neenah
13
14. Key Priorities: Fine Paper
Gain share in a consolidating market with programs and information that
encourages growth with Neenah
Expand in targeted areas: luxury packaging, label, international, envelopes
and national accounts
Develop new revenue streams – including expansion in retail, photo cards
and books, and digital papers
Opportunistically consolidate- integrate recently acquired Wausau brands in
2012
14
15. Wausau Transaction
Transaction Overview Premium WTC Market Brights Market
(~$450 mm) (~$100 mm)
$21million cash payment for:
• Astrobright, Astroparche, and Royal brands Others
• Perpetual license for Exact TM bright, index, tag, and 25%
Others
bristol papers 43% NP WP
• One-month finished inventory and selected assets 50% 75%
Acquired sales of over $100 million/yr WP
One-time integration costs of $10 million in 2012 7%
Strategic Rationale
Expands market participation with entry into new
category (brights)
Increases share in core writing, text & cover
Others
Fills existing asset base with minimal added costs NP
40%
and no dilution in EBIT margins 60%
Provides presence in new channel (retail) with
future growth opportunities
Delivers substantial value and compelling returns
Bigger share of a bigger market!
15
16. Generate Attractive Returns to Shareholders by: Consolidated Strategy
Grow size of business through:
Geographic expansion with global customers
Technical New products/innovation
Products Entry into market adjacencies
Improve margins to double digit levels
Counter challenging market through:
Growing share in consolidating market
Fine Paper Expanding in targeted growth areas
Maintain attractive financial returns
Deliver value by successful integration of
acquired Wausau brands in 2012
Allocate cash flows effectively to:
Increase Return on Capital
Maintain prudent capital structure
Corporate Provide attractive shareholder returns
Ensure scalability of corporate costs
Pursue M&As where strategic fit and
financial returns are compelling 16
17. Financial Objectives
Deliver consistent profitable growth while:
Increasing Return on Capital through growth in operating
income, margin expansion and asset efficiencies
Maintaining a prudent capital structure
Rewarding shareholders through cash generation and
meaningful dividend yield
17
18. Profitable Growth
Net Sales
OP%
$421
$384 Technical Products
$318
Volume growth focused on filtration, labels
7.6% 8.0% and higher growth categories
4.6% Margins expanding with higher value mix,
sales growth, cost efficiency and pricing
Targeting sustainable double-digit margins
2009 2010 2011
Net Sales
OP % $273 $275
Fine Paper
$256 Delivering consistent and attractive profits ,
13.6% 14.4% cash flows and return on capital
14.2%
Growing share and in targeted niches to
offset challenging market conditions
2009 2010 2011
Pricing power and cost control in both businesses has offset almost
18
$50 million of input cost increases since 2009
19. Return on Capital
% Return on 9%
Invested Capital 8%
Primary metric used to measure
6% business performance and evaluate
investment opportunities
Increasing ROIC a primary component
of management compensation plans
2009 2010 2011
Improving with
Sales/Assets 1.3
Profitable growth
1.1 Careful control of assets and
0.9 capital investments
Divestiture of pulp
Nearing desired double-digit levels
2009 2010 2011 19
20. Capital Structure
Dec Dec Dec
$ millions $319 Debt and
2009 2010 2011 Debt/EBITDA
Bonds 7 3/8%
$225 $223 $158
(due Nov. 2014)
$245
ABL 28 0 0
(due Nov. 2015)
4.4x
Other U.S. 41 0 0 $186
2.8x
Germany 25 22 28 2.0x
Total Debt $319 $245 $186
Total Cash $5 $48 $20 Dec 09 Dec 10 Dec 11
$95 million North American revolving credit facility expires in late 2015
Completed call of $65 million bonds in March 2011 (saving $5 million/year in interest)
Credit rating upgraded to Ba3/BB- in 2010
Recent $21 million purchase of Wausau brands funded by low cost ABL borrowing
20
21. Attractive cash flows and returns
Annual Dividend $0.48
Pro Forma (excl. WP purchase) $ millions
per share
$0.44
EBITDA $95
Interest Expense (14) $0.40
Other (tax, wkg cap, pension, etc..) (21)
Cash From Operations $60
2010 2011 2012
Capital Expenditures (25)
Strong cash flow base
Free Cash Flow $35
Ability to grow efficiently with scalable
FCF/share $2.35 infrastructure
Moderate capital spending with capacity
FCF Yield 1 9% available for growth
Efficient N. America cash tax position
Attractive cash flows and yield (NOLs = $80 million)
even before including returns from Competitive dividend yield (approx. 2%),
Wausau brand purchase with consecutive annual increases
21
(1) Based on $27 NP stock price
22. Investment Conclusions
Leading positions in profitable specialty markets with barriers to entry
Momentum in sales and profits reflecting successful execution of plans
Deleveraging has resulting in sound capital structure and financial flexibility
Sustainable, strong cash flows helping to support $93
growth and provide attractive investor returns Consolidated
EBITDA $87
(U$ millions)
Recent Wausau brand acquisition expected to
provide compelling value creation $73
$69
Strategic focus on continued expansion in
specialty markets and evolution away from
historical “pulp & paper” positioning
2008 2009 2010 2011
22
23. Contact
For more information Investor Relations
visit our website: www.neenah.com Bill McCarthy
email: investor@neenahpaper.com VP, Financial Planning and Analysis & Investor Relations
5460 Preston Ridge Rd. Suite 600
Alpharetta, GA 30005
Phone: (678) 518-3278
Email: bill.mccarthy@neenahpaper.com
23
