CLEARWATER PAPER CORPORATIONFOURTH QUARTER AND FULL YEAR 2018SUPPLEMENTAL INFORMATION 03/12/19 LINDA MASSMANPRESIDENT, CHIEF EXECUTIVE OFFICER AND DIRECTORJOHN
HERTZSENIOR VICE PRESIDENT FINANCE AND CHIEF FINANCIAL OFFICER
FORWARD-LOOKING STATEMENTS This presentation of supplemental information contains, in addition to historical information, certain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the Shelby, North Carolina expansion; financial models; estimated Q1 2019 net earnings, EBITDA, adjusted EBITDA, operating income, adjusted
operating income, adjusted net earnings, net earnings per diluted common share, adjusted net earnings per diluted common share, net sales and adjusted operating margin; and Q1 2019 product pricing and sales mix, product volumes shipped, pulp,
transportation and maintenance. These forward-looking statements are based on management’s current expectations, estimates, assumptions and projections that are subject to change. Our actual results of operations may differ materially from those
expressed or implied by the forward-looking statements contained in this presentation. Important factors that could cause or contribute to such differences include the risks and uncertainties described from time to time in the company's public
filings with the Securities and Exchange Commission, as well as the following: competitive pricing pressures for our products, including as a result of increased capacity as additional manufacturing facilities are operated by our competitors;the
loss of, changes in prices in regard to, or reduction in, orders from a significant customer;changes in customer product preferences and competitors' product offerings;our ability to complete construction of our new tissue manufacturing
operations in Shelby, North Carolina on time and within current cost expectations;customer acceptance and timing and quantity of purchases of our tissue products, including the existence of sufficient demand for and the quality of tissue produced
by our expanded Shelby, North Carolina operations when they are completed;consolidation and vertical integration of converting operations in the paperboard industry;our ability to successfully implement our operational efficiencies and cost
savings strategies, along with related capital projects, and achieve the expected operational or financial results of those projects, including from the continuous digester at our Lewiston, Idaho facility;changes in the cost and availability of
wood fiber and wood pulp;changes in transportation costs and disruptions in transportation services;labor disruptions;changes in the U.S. and international economies and in general economic conditions in the regions and industries in which we
operate;manufacturing or operating disruptions, including IT system and IT system implementation failures, equipment malfunctions and damage to our manufacturing facilities;changes in costs for and availability of packaging supplies, chemicals,
energy and maintenance and repairs;larger competitors having operational and other advantages;cyclical industry conditions;changes in expenses, required contributions and potential withdrawal costs associated with our pension plans;environmental
liabilities or expenditures;cyber-security risks;reliance on a limited number of third-party suppliers for raw materials;our ability to attract, motivate, train and retain qualified and key personnel;material weaknesses in our internal control
over financial reporting;our substantial indebtedness and ability to service our debt obligations;restrictions on our business from debt covenants and terms; andchanges in laws, regulations or industry standards affecting our
business.Forward-looking statements contained in this presentation present management’s views only as of the date of this presentation. We undertake no obligation to publicly update forward-looking statements, to retract future revisions of
management's views based on events or circumstances occurring after the date of this presentation. 2
2018 FULL YEARHIGHLIGHTS $1,724 MILLION NET SALES, FLAT VS. 2017 ($98) MILLION GAAP OPERATING LOSS $177 MILLION ADJUSTED EBITDA1 DILUTED GAAP EPS OF ($8.72) AND
ADJUSTED DILUTED EPS OF $2.551 ACHIEVED RECORD PAPERBOARD PRODUCTION AND SHIPMENTS COMPLETED SALE OF LADYSMITH MILL $195 MILLION NON CASH GOODWILL IMPAIRMENT CHARGE RELATED TO CONSUMER PRODUCTS STARTED TISSUE CONVERTING OPERATIONS AT OUR EXPANDED
SHELBY FACILITYCOMPLETED SG&A COST SAVINGS ACTIONS RESULTING IN A $13 MILLION REDUCTION IN 2018 WITH AN EXPECTED FULL $20 MILLION RUN RATE REDUCTION IN 2019 1 Non-GAAP measure – See Appendix for the definition and reconciliation to the most
comparable GAAP measure. 3
FOURTH QUARTERFINANCIAL HIGHLIGHTS $429 MILLION NET SALES, FLAT VS. Q3'18 ($175) MILLION GAAP OPERATING LOSS$45 MILLION ADJUSTED EBITDA1, AT HIGH END OF THE OUTLOOK
RANGE OF $40 TO $46 MILLION DILUTED GAAP EPS OF ($11.39) AND ADJUSTED DILUTED EPS OF $0.451CPD REVERSED OPERATING LOSS TO INCOME$195 MILLION NON CASH GOODWILL IMPAIRMENT CHARGE RELATED TO CONSUMER PRODUCTS 1 Non-GAAP measure – See Appendix for
the definition and reconciliation to the most comparable GAAP measure. 4
FINANCIAL SUMMARY (GAAP BASIS)(UNAUDITED) Twelve Months Ended December 31, (Dollars in thousands - except per-share
amounts) Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 2017 2018 Net
sales $437,525 $429,663 $426,504 $436,716 $436,952 $432,099 $426,460 $428,707 $1,730,408 $1,724,218 Gross
Profit1 $50,465 $48,602 $39,742 $61,258 $44,519 $44,945 $50,239 $46,503 $200,067 $186,206 Selling, general and administrative
expenses1 ($29,955 ) ($29,454 ) ($34,582 ) ($34,891 ) ($32,980 ) ($26,564 ) ($26,283 ) ($27,161 ) ($128,882 ) ($112,988 ) Operating income
(loss)1 $20,510 $19,148 $5,160 $26,367 $11,539 $18,381 $46,900 ($174,729 ) $71,185 ($97,909 ) Consumer
Products1 $6,204 $10,698 $4,525 $7,546 $1,629 ($3,604 ) ($1,269 ) $513 $28,973 ($2,731 ) Gain on divested assets $— $— $— $— $— $— $22,944 $1,008 $— $23,952 Goodwill
impairment $— $— $— $— $— $— $— ($195,079 ) $— ($195,079 ) Pulp and
Paperboard1 $27,200 $21,071 $14,735 $34,354 $26,154 $34,192 $38,280 $31,800 $97,360 $130,426 Corporate1 ($12,894 ) ($12,621 ) ($14,100 ) ($15,533 ) ($16,244 ) ($12,207 ) ($13,055 ) ($12,971 ) ($55,148 ) ($54,477 ) Operating
margin1 4.7 % 4.5 % 1.2 % 6.0 % 2.6 % 4.3 % 11.0 % (40.8 )% 4.1 % (5.7 )% Interest expense,
net ($8,043 ) ($7,673 ) ($7,683 ) ($7,975 ) ($8,020 ) ($7,723 ) ($7,547 ) ($7,330 ) ($31,374 ) ($30,620 ) Non-operating pension and other postretirement benefit income
(costs)1 $48 $517 $291 $287 ($1,279 ) ($1,187 ) ($1,234 ) ($1,233 ) $1,143 ($4,933 ) Income tax (provision)
benefit2 ($5,000 ) ($3,955 ) $3,095 $62,245 $360 ($2,510 ) ($3,675 ) ($4,480 ) $56,385 ($10,305 ) Net earnings
(loss) $7,515 $8,037 $863 $80,924 $2,600 $6,961 $34,444 ($187,772 ) $97,339 ($143,767 ) Net earnings (loss) per diluted common
share $0.45 $0.48 $0.05 $4.88 $0.16 $0.42 $2.08 ($11.39 ) $5.88 ($8.72 ) 5 1 In the first quarter of 2018, we adopted a new accounting standard that resulted in a change in the presentation of pension and
postretirement benefit costs other than service costs on a line outside of operating income. The corresponding prior period amounts have been reclassified to conform with the current period presentation. 2 The Income tax benefit in Q4'17 is
primarily due to the remeasurement of deferred tax liabilities as a result of the Tax Cuts and Jobs Act (the "Act") signed into law on December 22, 2017. The resulting net tax benefit is included in the three months ended December 31, 2017. The
Act is complex and significantly changes the U.S. corporate income tax system by, among other things, reducing the Federal corporate income tax rate from 35% to 21%.
FINANCIAL SUMMARY (ADJUSTED BASIS)(UNAUDITED) 1 Non-GAAP measure - See Appendix for the definition and reconciliation to the most comparable GAAP measure. 2 Adjusted
gross profit margin is defined as Adjusted gross profit divided by Net sales.3 In the first quarter of 2018, we adopted a new accounting standard that resulted in a change in the presentation of pension and postretirement benefit costs other than
service costs on a line outside of operating income. The corresponding prior period amounts have been reclassified to conform with the current period presentation. 4 Adjusted operating margin is defined as Adjusted operating income divided by Net
sales.5 The Income tax benefit in Q4'17 is primarily due to the remeasurement of deferred tax liabilities as a result of the Tax Cuts and Jobs Act (the "Act") signed into law on December 22, 2017. The resulting net tax benefit is included in the
three months ended December 31, 2017. The Act is complex and significantly changes the U.S. corporate income tax system by, among other things, reducing the Federal corporate income tax rate from 35% to 21%.6 Adjusted EBITDA margin is defined as
Adjusted EBITDA divided by Net sales.7 This information is based upon management’s current expectations and estimates, which are in part based on market and industry data. Many factors are outside the control of management, including particularly
input costs for commodity products, and actual results may differ materially from the information set forth above. See “Forward-Looking Statements” on page 2. 8 Consolidated secured leverage ratio is calculated as the net secured debt to rolling
four quarter total adjusted EBITDA plus franchise taxes and other reocuring non-cash items. (Dollars in thousands - except per-share amounts) Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19
Outlook7 2017 2018 Net sales $437,525 $429,663 $426,504 $436,716 $436,952 $432,099 $426,460 $428,707 1% - 2% Lower $1,730,408 $1,724,218 Adjusted gross
profit1,3 $56,668 $49,820 $41,048 $61,675 $44,712 $45,768 $50,399 $46,601 $209,211 $187,480 Adjusted gross profit
margin1,2,3 13.0 % 11.7 % 9.7 % 14.2 % 10.2 % 10.6 % 11.8 % 10.9 % 12.1 % 10.9 % Adjusted selling, general and administrative
expenses1,3 ($31,290 ) ($30,832 ) ($29,158 ) ($29,941 ) ($28,778 ) ($27,171 ) ($25,644 ) ($26,182 ) ($121,221 ) ($107,775 ) Adjusted operating income
(loss)1,3 $25,378 $18,988 $11,890 $31,734 $15,934 $18,597 $24,755 $20,419 $87,990 $79,705 Consumer
Products3 $12,407 $11,916 $10,312 $11,513 $3,072 ($2,596 ) ($1,024 ) $852 $46,148 $304 Pulp and
Paperboard3 $27,200 $21,071 $14,735 $34,486 $26,445 $34,284 $38,351 $31,806 $97,492 $130,886 Corporate3 ($14,229 ) ($13,999 ) ($13,157 ) ($14,265 ) ($13,583 ) ($13,091 ) ($12,572 ) ($12,239 ) ($55,650 ) ($51,485 ) Adjusted
operating margin1,3,4 5.8 % 4.4 % 2.8 % 7.3 % 3.6 % 4.3 % 5.8 % 4.8 % 3.0% - 4.5% 5.1 % 4.6 % Interest expense,
net ($8,043 ) ($7,673 ) ($7,683 ) ($7,975 ) ($8,020 ) ($7,723 ) ($7,547 ) ($7,330 ) ($31,374 ) ($30,620 ) Non-operating pension and other postretirement benefit income
(costs)3 $48 $517 $291 $287 ($1,279 ) ($1,187 ) ($1,234 ) ($1,233 ) $1,143 ($4,933 ) Adjusted income tax (provision)
benefit1,5 ($6,655 ) ($3,902 ) $807 ($9,597 ) ($1,415 ) ($2,566 ) $6,315 ($4,494 ) ($19,347 ) ($2,160 ) Adjusted net
earnings1 $10,728 $7,930 $5,305 $14,449 $5,220 $7,121 $22,289 $7,362 $38,412 $41,992 Depreciation and amortization
expense $27,557 $26,055 $25,856 $25,522 $25,167 $25,177 $25,342 $26,267 $104,990 $101,953 Adjusted EBITDA1 $49,320 $45,023 $37,621 $57,543 $39,822 $42,587 $48,863 $45,453 $37,000 -
$43,000 $189,507 $176,725 Consumer Products3 $26,986 $27,671 $25,969 $25,913 $17,369 $11,624 $13,423 $15,672 $106,539 $58,088 Pulp and
Paperboard3 $35,305 $29,427 $23,063 $44,171 $35,874 $43,645 $47,667 $41,498 $131,966 $168,684 Corporate3 ($12,971 ) ($12,075 ) ($11,411 ) ($12,541 ) ($13,421 ) ($12,682 ) ($12,227 ) ($11,717 ) ($48,998 ) ($50,047 ) Adjusted
EBITDA margin1,6 11.3 % 10.5 % 8.8 % 13.2 % 9.1 % 9.9 % 11.5 % 10.6 % 11.0 % 10.2 % Adjusted net earnings per diluted common
share1 $0.64 $0.48 $0.32 $0.87 $0.31 $0.43 $1.35 $0.45 $2.32 $2.55 Consolidated Secured Leverage Ratio1,8 3.37 3.71 3.69 3.86 4.15 3.95 3.97 0.99 3.86 0.99 Cash flow from
operations $45,538 $58,061 $48,577 $26,494 $30,853 $80,023 $10,223 $47,800 $178,670 $168,899 Capital
Expenditures $41,804 $47,750 $49,269 $59,862 $49,747 $117,712 $85,040 $85,451 $198,685 $337,950 6
2018 VS. 2017CONSOLIDATED ADJUSTED EBITDA1 BRIDGE 1 Non-GAAP measure – See Appendix for the definition and reconciliation to the most comparable GAAP
measure. PRICE/MIX Lower tissue pricing and weaker mix partially offset by paperboard price increases VOLUME Lower tissue shipments primarily due to the sale of our Ladysmith mill in August, offset by record paperboard production and
shipments PULP Higher purchased pulp pricing due to tight pulp market WOOD FIBER Higher wood fiber pricing TRANSPORTATION Higher freight costs due to line haul rate increases partly offset by reduction in miles due to operating model
improvements MAINTENANCE Absence of planned major maintenance at paperboard facilities SG&A SG&A cost reduction initiative and lower profit dependent accruals PENSION & OPEB Lower OPEB Income due to smaller actuarial gain
amortization ADJ. EBITDA1(MILLIONS) 1 1 7
Q4’18 VS. Q3’18CONSOLIDATED ADJUSTED EBITDA1 BRIDGE 1 Non-GAAP measure – See Appendix for the definition and reconciliation to the most comparable GAAP
measure. PRICE/MIX Higher paperboard and tissue pricing from previously announced price increases partially offset by weaker paperboard mix VOLUME Lower tissue shipments due to the sale of our Ladysmith mill and seasonally lower tissue
demand TRANSPORTATION CPD operating model improvements from reduced freight and external warehousing costs ENERGY Higher natural gas prices due to a pipeline disruption impacting the Idaho mill partially offset by lower electrical rates
at the Las Vegas mill MAINTENANCE Recovery boiler maintenance at the Idaho and Arkansas mills IDAHO PULP DISRUPTION Higher purchased pulp due to Idaho mill pulp production disruption, net of insurance recovery ADJ.
EBITDA1(MILLIONS) 1 1 8
1 Includes away-from-home (AFH), contract and parent roll tissue products. 2 Includes retail, AFH, and contract tissue case products.3 In the first quarter of 2018, we
adopted a new accounting standard that resulted in a change in the presentation of pension and postretirement benefit costs other than service costs on a line outside of operating income. The corresponding prior period amounts have been
reclassified to conform with the current period presentation.4 Non-GAAP measure – See Appendix for the definition and reconciliation to the most comparable GAAP measure. 5 Non-GAAP measure – Segment Adjusted EBITDA margin is defined as Segment
Adjusted EBITDA divided by Segment net sales6 Operating income (loss) for Q3'18 and Q4'18 includes $22.9 million and $1.0 million, respectively, for the gain on divested assets, net. KEY SEGMENT RESULTS -CONSUMER
PRODUCTS(UNAUDITED) Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 CONSUMER PRODUCTS CROSS-CYCLE FINANCIAL MODEL Shipments Retail (short
tons) 78,686 77,714 77,544 75,123 80,971 73,070 70,335 69,480 Non-Retail (short tons)1 16,678 13,736 12,958 12,190 11,236 17,316 18,525 11,500 Total Tissue
Tons 95,364 91,450 90,502 87,313 92,207 90,386 88,860 80,980 Converted Products (cases in thousands)2 13,123 12,709 12,727 12,662 13,262 12,027 11,789 11,621 Sales
Price Retail ($/short ton) $2,772 $2,723 $2,754 $2,855 $2,715 $2,707 $2,615 $2,776 Non-Retail ($/short
ton)1 $1,439 $1,454 $1,468 $1,480 $1,509 $1,372 $1,491 $1,727 Total Tissue ($/short ton) $2,539 $2,533 $2,574 $2,663 $2,568 $2,451 $2,381 $2,627 Segment net sales ($ in
thousands) $242,423 $231,912 $232,916 $234,656 $238,842 $221,585 $211,642 $212,743 Segment GAAP operating income (loss)3,6 ($ in
thousands) $6,204 $10,698 $4,525 $7,546 $1,629 ($3,604 ) $21,675 ($193,558 ) Segment GAAP operating margin 2.6% 4.6% 1.9% 3.2% 0.7% (1.6)% 10.2% (91.0)% Segment Adjusted EBITDA3,4 ($ in
thousands) $26,986 $27,671 $25,969 $25,913 $17,369 $11,624 $13,423 $15,672 Segment Adjusted EBITDA margin5 11.1% 11.9% 11.1% 11.0% 7.3% 5.2% 6.3% 7.4% 17.0% 9
CLEARWATER PAPERTISSUE SHIPMENTSAND U.S. RETAIL TISSUE MARKET U.S. Retail Tissue Market Q4'18 ($)
(MultiOutlet)1 CATEGORY PRIVATELABEL BRANDS TOTAL Total RetailTissue Share ($) 31 % 69 % 100 % % ChangeQ4’18 vs. Q3’18 0.8 % (0.8 )% — % 1 Data Source: IRI Worldwide data
through December 31, 2018. CLW Q4'18 by Market Segment(% of Tons) CLW Q3'18 by Market Segment(% of Tons) Other Parent Rolls Parent Rolls AFH AFH Retail Retail 10 Other 1% 1%
PRICE/MIX Higher pricing due to previously announced price increases and higher mix of cases and lower parent roll shipments due to Ladysmith
divestiture VOLUME Lower shipments due to the sale of our Ladysmith mill and seasonally lower demand TRANSPORTATION Operating model improvements from reduced freight and external warehousing costs ENERGY Seasonally lower electrical
rates at Las Vegas mill IDAHO PULP DISRUPTION Higher purchased pulp due to Idaho mill pulp production disruption, net of insurance recovery Q4'18 VS. Q3'18CONSUMER PRODUCTS ADJUSTED EBITDA1 BRIDGE 1 Non-GAAP measure – See Appendix for the
definition and reconciliation to the most comparable GAAP measure. SEGMENT ADJ. EBITDA1(MILLIONS) 1 1 11
KEY SEGMENT RESULTS – PULP AND PAPERBOARD(UNAUDITED) 1 Shipments and Sales Price exclude Scrap Sales in the fourth quarter of 20182 In the first quarter of 2018, we
adopted a new accounting standard that resulted in a change in the presentation of pension and postretirement benefit costs other than service costs on a line outside of operating income. The corresponding prior period amounts have been
reclassified to conform with the current period presentation.3 Non-GAAP measure – See Appendix for the definition and reconciliation to the most comparable GAAP measure.4 Non-GAAP measure – Segment Adjusted EBITDA margin is defined as Segment
Adjusted EBITDA divided by Segment net sales. Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 PULP ANDPAPERBOARDCROSS-CYCLEFINANCIAL
MODEL Shipments1 Paperboard (short tons) 210,382 207,152 200,569 210,098 206,309 216,582 218,135 218,322 Sales
Price1 Paperboard ($/short ton) $927 $955 $965 $962 $960 $972 $985 $982 Segment net sales ($ in
thousands) $195,102 $197,751 $193,588 $202,060 $198,110 $210,514 $214,818 $215,964 Segment GAAP operating income2 ($ in
thousands) $27,200 $21,071 $14,735 $34,354 $26,154 $34,192 $38,280 $31,800 Segment GAAP operating margin 13.9% 10.7% 7.6% 17.0% 13.2% 16.2% 17.8% 14.7% Segment Adjusted EBITDA2,3 ($ in
thousands) $35,305 $29,427 $23,063 $44,171 $35,874 $43,645 $47,667 $41,498 Segment Adjusted EBITDA margin4 18.1% 14.9% 11.9% 21.9% 18.1% 20.7% 22.2% 19.2% 19.0% 12
CLEARWATER PAPERPAPERBOARD SHIPMENTS ANDU.S. PAPERBOARD MARKET U.S. Paperboard Production Q4'183 CATEGORY CLEARWATER
PAPER OTHER Total Domestic SBS1 Market Share 14 % 86 % Folding 19 % 81 % Food Service2 14 % 86 % Liquid Packaging 5 % 95 % 1 Solid Bleached Sulfate.2 Food Service includes cup, plate,
dish and tray products.3 Data Source: American Forest and Paper Association Solid Bleached Domestic Production – December 31, 2018. CLW Q4'18 by Market Segment(% of Tons) CLW Q3'18 by Market Segment(% of Tons) Folding Folding Liquid
Pkg Liquid Pkg Food Service Food Service 13
PRICE/MIX Weaker mix largely offset by higher prices due to previously announced price increase VOLUME Flat ENERGY Higher natural gas prices due to a
pipeline disruption impacting the Idaho mill MAINTENANCE Recovery boiler maintenance at the Idaho and Arkansas mills IDAHO PULP DISRUPTION Higher purchased pulp due to Idaho mill pulp production disruption, net of insurance
recovery Q4’18 vs. Q3'18 PULP AND PAPERBOARD ADJUSTED EBITDA1 BRIDGE 1 Non-GAAP measure – See Appendix for the definition and reconciliation to the most comparable GAAP measure. SEGMENT ADJ. EBITDA1(MILLIONS) 1 1 14
CLEARWATER PAPER CROSS-CYCLE FINANCIAL MODEL 1 Non-GAAP measure – See Appendix for the definition and reconciliation to the most comparable GAAP
measure. Twelve Months Ended December 31, CLEARWATER PAPER CROSS-CYCLE FINANCIAL MODEL (Dollars in
thousands) Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 2017 2018 Net
sales 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % Adjusted gross profit margin1 13.0 % 11.7 % 9.7 % 14.2 % 10.2 % 10.6 % 11.8 % 10.9 % 12.1 % 10.9 % 17.0 % Adjusted
SG&A expenses1 as % of net sales (7.2 %) (7.2 %) (6.8 %) (6.9 %) (6.6 %) (6.3 %) (6.0 %) (6.1 %) (7.0 %) (6.3 %) (6.0 %) Adjusted operating
margin1 5.8 % 4.4 % 2.8 % 7.3 % 3.6 % 4.3 % 5.8 % 4.8 % 5.1 % 4.6 % 11.0 % Adjusted net earnings1 as % of net sales 2.5 % 1.8 % 1.2 % 2.5 % 1.2 % 1.6 % 5.2 % 1.7 % 2.2 % 2.4 % 5.0 % Adjusted
EBITDA margin1 11.3 % 10.5 % 8.8 % 13.2 % 9.1 % 9.9 % 11.5 % 10.6 % 11.0 % 10.2 % 15.0 % 15
Q1’19 ADJUSTED EBITDA OUTLOOK1 AND RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) 1 This information is based upon management’s current expectations and
estimates, which are in part based on market and industry data. Many factors are outside the control of management, including particularly input costs for commodity products, and actual results may differ materially from the information set forth
above. See “Forward-Looking Statements” on page 2.2 EBITDA is a non-GAAP measure that management uses as a supplemental performance measure. The most directly comparable GAAP measure is net earnings (loss). EBITDA is net earnings adjusted for net
interest expense, income taxes, and depreciation and amortization. It should not be considered as an alternative to net earnings computed under GAAP.3 Adjusted EBITDA excludes the impact of the items listed that we do not believe are indicative
of our core operating performance. OUTLOOK THREE MONTHS ENDINGMARCH 31, 2019 RANGE OF ESTIMATE (Dollars in thousands) FROM TO Earnings before interest, income taxes, and depreciation &
amortization (EBITDA)2: GAAP net earnings $1,500 $5,500 Interest expense, net 7,900 8,100 Income tax provision 600 1,900 Depreciation and amortization
expense 25,500 26,000 EBITDA2 $35,500 $41,500 Directors' equity-based compensation expense 500 500 Reorganization expenses associated with SG&A cost control measures 100 100 Other 900 900 Adjusted
EBITDA3 $37,000 $43,000 16
Q1’19 ADJUSTED NET EARNINGS OUTLOOK1 AND RECONCILIATION OF NON-GAAPFINANCIAL MEASURES (UNAUDITED) 1 This information is based upon management’s current expectations
and estimates, which are in part based on market and industry data. Many factors are outside the control of management, including particularly input costs for commodity products, and actual results may differ materially from the information set
forth above. See “Forward-Looking Statements” on page 2.2 Adjusted operating income, Adjusted net earnings and Adjusted net earnings per diluted common share exclude the impact of the items listed that we do not believe are indicative of our core
operating performance.3 All non-tax items are tax effected at a 26% annual rate.4 GAAP net earnings per diluted common share and Adjusted net earnings per diluted common share are calculated utilizing fourth quarter 2018 diluted average common
shares outstanding of 16,491 (in thousands). OUTLOOK THREE MONTHS ENDINGMARCH 31, 2019 RANGE OF ESTIMATE (Dollars in thousands) FROM TO GAAP Operating Income $11,000 $17,000 Directors'
equity-based compensation expense 500 500 Reorganization expenses associated with SG&A cost control measures 100 100 Other 900 900 Adjusted operating income2 $12,500 $18,500 (Dollars in
thousands) FROM TO GAAP net earnings $1,500 $5,500 Adjustments, after tax3: Directors' equity-based compensation expense 370 370 Reorganization expenses associated with SG&A cost control
measures 70 70 Other 670 670 Adjusted net earnings2 $2,610 $6,610 FROM TO GAAP net earnings per diluted common share4 $0.09 $0.33 Adjusted net earnings per diluted common
share2,4 $0.16 $0.40 17
Q1'19 OUTLOOK1 1% - 2% Lower 3.0% - 4.5% $37M - $43M $0.16 - $0.40 NET SALES ADJUSTED OPERATING MARGIN2,3 ADJUSTED EBITDA2 ADJUSTED NET EARNINGS PER
DILUTED COMMON SHARE2,4 1 This information is based upon management’s current expectations and estimates, which are in part based on market and industry data. Many factors are outside the control of management, including particularly input
costs for commodity products, and actual results may differ materially from the information set forth above. See “Forward-Looking Statements” on page 2.2 Non-GAAP measure – See prior slides for the reconciliation to the most comparable GAAP
measure.3 Adjusted operating margin is defined as net sales divided by adjusted operating income.4 Adjusted net earnings per diluted common share is calculated utilizing fourth quarter 2018 diluted average common shares outstanding of 16,491 (in
thousands). 18
APPENDIX 19
ADJUSTED GROSS PROFIT& ADJUSTED SG&ARECONCILIATION OF NON-GAAPFINANCIAL MEASURES (UNAUDITED) 1 Gross profit is defined as net sales minus cost of sales.2 In
the first quarter of 2018, we adopted a new accounting standard that resulted in a change in the presentation of pension and postretirement benefit costs other than service costs on a line outside of operating income. The corresponding prior
period amounts have been reclassified to conform with the current period presentation. 3 Adjusted gross profit and Adjusted selling, general and administrative expenses exclude the impact of the items listed that we do not believe are indicative
of our core operating performance. Twelve Months Ended December 31, (Dollars in
thousands) Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 2017 2018 Gross
profit1,2 $50,465 $48,602 $39,742 $61,258 $44,519 $44,945 $50,239 $46,503 $200,067 $186,206 Costs associated with Long Island facility closure 466 661 610 298 — — — — 2,035 — Costs
associated with Oklahoma City facility closure 5,737 275 576 119 — — — — 6,707 — Write-off of assets as a result of Warehouse Automation project — 41 — — — — — — 41 — Accelerated
depreciation of assets as a result of Warehouse Automation project — 241 120 — — — — — 361 — Reorganization expenses associated with SG&A cost control
measures — — — — 193 31 2 — — 226 Consumer Products reorganization related expenses — — — — — 792 158 98 — 1,048 Adjusted gross
profit3 $56,668 $49,820 $41,048 $61,675 $44,712 $45,768 $50,399 $46,601 $209,211 $187,480 Selling, general and administrative expenses
(SG&A)2 ($29,955 ) ($29,454 ) ($34,582 ) ($34,891 ) ($32,980 ) ($26,564 ) ($26,283 ) ($27,161 ) ($128,882 ) ($112,988 ) Directors' equity-based compensation (benefit)
expense (1,450 ) (1,483 ) 463 (363 ) (709 ) (1,990 ) 769 (410 ) (2,833 ) (2,340 ) Costs associated with Oklahoma City facility closure — — 4,481 3,530 — — — — 8,011 — Manchester Industries
acquisition related expenses 115 105 — — — — — — 220 — Reorganization expenses associated with SG&A cost control measures — — 480 1,783 4,911 1,045 208 545 2,263 6,709 Other
— — — — — 338 (338 ) 844 — 844 Adjusted selling, general and administrative
expenses2 ($31,290 ) ($30,832 ) ($29,158 ) ($29,941 ) ($28,778 ) ($27,171 ) ($25,644 ) ($26,182 ) ($121,221 ) ($107,775 ) 20
SEGMENT ADJUSTED OPERATING INCOME (LOSS)RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) 1 In the first quarter of 2018, we adopted a new accounting standard
that resulted in a change in the presentation of pension and postretirement benefit costs other than service costs on a line outside of operating income. The corresponding prior period amounts have been reclassified to conform with the current
period presentation. 2 Adjusted operating income (loss) excludes the impact of the items listed that we do not believe are indicative of our core operating performance.3 Operating income for Q3'18 and Q4'18 includes $22.9 million $1.0 million,
respectively, for the gain on divested assets, net. Twelve Months Ended December 31, (Dollars in
thousands) Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 2017 2018 Consumer Products Operating income
(loss)1,3 $6,204 $10,698 $4,525 $7,546 $1,629 ($3,604 ) $21,675 ($193,558 ) $28,973 ($173,858 ) Costs associated with Long Island facility
closure 466 661 610 298 — — — — 2,035 — Costs associated with Oklahoma City facility closure 5,737 275 5,057 3,649 — — — — 14,718 — Write-off of assets as a result of Warehouse
Automation project — 41 — — — — — — 41 — Accelerated depreciation of assets as a result of Warehouse Automation project — 241 120 — — — — — 361 — Reorganization expenses associated
with SG&A cost control measures — — — 20 1,443 216 87 241 20 1,987 Consumer Products reorganization related expenses — — — — — 792 158 98 — 1,048 Gain on divested assets,
net — — — — — (22,944 ) (1,008 ) — (23,952 ) Goodwill impairment — — — 195,079 — 195,079 Adjusted Consumer Products operating income
(loss)2 $12,407 $11,916 $10,312 $11,513 $3,072 ($2,596 ) ($1,024 ) $852 $46,148 $304 Pulp and Paperboard Operating
Income1 $27,200 $21,071 $14,735 $34,354 $26,154 $34,192 $38,280 $31,800 $97,360 $130,426 Reorganization expenses associated with SG&A cost control
measures — — — 132 291 92 71 6 132 460 Adjusted Pulp and Paperboard operating
income2 $27,200 $21,071 $14,735 $34,486 $26,445 $34,284 $38,351 $31,806 $97,492 $130,886 Corporate Operating
loss1 ($12,894 ) ($12,621 ) ($14,100 ) ($15,533 ) ($16,244 ) ($12,207 ) ($13,055 ) ($12,971 ) ($55,148 ) ($54,477 ) Directors' equity-based compensation (benefit)
expense (1,450 ) (1,483 ) 463 (363 ) (709 ) (1,990 ) 769 (410 ) (2,833 ) (2,340 ) Manchester Industries acquisition related expenses 115 105 — — — — — — 220 — Reorganization expenses
associated with SG&A cost control measures — — 480 1,631 3,370 768 52 298 2,111 4,488 Other — — — — — 338 (338 ) 844 — 844 Adjusted Corporate operating
loss2 ($14,229 ) ($13,999 ) ($13,157 ) ($14,265 ) ($13,583 ) ($13,091 ) ($12,572 ) ($12,239 ) ($55,650 ) ($51,485 ) 21
ADJUSTED NET EARNINGS & ADJUSTED NET EARNINGS PER DILUTED COMMON SHARE RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) 1 All non-tax items are tax
effected at the expected annual rate for that period.2 Adjusted net earnings and Adjusted net earnings per diluted common share exclude the impact of the items listed that we do not believe are indicative of our core operating performance. 3 The
federal tax rate change in Q4'17 is primarily due to the remeasurement of deferred tax liabilities as a result of the Tax Cuts and Jobs Act (the "Act") signed into law on December 22, 2017. The resulting net tax benefit is included in the three
months ended December 31, 2017. The Act is complex and significantly changes the U.S. corporate income tax system by, among other things, reducing the Federal corporate income tax rate from 35% to 21%. Twelve
Months Ended December 31, (Dollars in thousands - except per-share amounts) Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 2017 2018 GAAP net earnings
(loss) $7,515 $8,037 $863 $80,924 $2,600 $6,961 $34,444 ($187,772 ) $97,339 ($143,767 ) Adjustments, after tax1: Directors' equity-based compensation (benefit)
expense (957 ) (988 ) 306 (242 ) (532 ) (1,472 ) 524 (337 ) (1,881 ) (1,817 ) Costs associated with Long Island facility closure 308 440 402 199 — — — — 1,349 — Costs associated with
Oklahoma City facility closure 3,786 183 3,338 2,434 — — — — 9,741 — Manchester Industries acquisition related expenses 76 70 — — — — — — 146 — Write-off of assets as a result of
Warehouse Automation project — 27 — — — — — — 27 — Accelerated depreciation of assets as a result of Warehouse Automation project — 161 79 — — — — — 240 — Reorganization expenses
associated with SG&A cost control measures — — 317 1,189 3,828 796 143 447 1,506 5,214 Federal tax rate change3 — — — (70,055 ) — — — — (70,055 ) — Impact of state tax rate
changes — — — — (676 ) — — — — (676 ) Consumer Products reorganization related expenses — — — — — 586 108 80 — 774 Other
— — — — — 250 (250 ) 693 — 693 Gain on divested assets, net — — — — — — (12,680 ) (828 ) — (13,508 ) Goodwill
impairment — — — — — — — 195,079 — 195,079 Adjusted net earnings2 $10,728 $7,930 $5,305 $14,449 $5,220 $7,121 $22,289 $7,362 $38,412 $41,992 Net earnings (loss) per diluted common
share $0.45 $0.48 $0.05 $4.88 $0.16 $0.42 $2.08 ($11.39 ) $5.88 ($8.72 ) Adjustments, after tax1: Directors' equity-based compensation (benefit)
expense (0.06 ) (0.06 ) 0.02 (0.01 ) (0.03 ) (0.09 ) 0.03 (0.02 ) (0.11 ) (0.11 ) Costs associated with Long Island facility closure 0.02 0.03 0.02 0.01 — — — — 0.08 — Costs associated
with Oklahoma City facility closure 0.23 0.01 0.20 0.15 — — — — 0.59 — Manchester Industries acquisition related expenses — 0.01 — — — — — — 0.01 — Write-off of assets as a result
of Warehouse Automation project — — — — — — — — — — Accelerated depreciation of assets as a result of Warehouse Automation project — 0.01 0.01 — — — — — 0.01 — Reorganization
expenses associated with SG&A cost control measures — — 0.02 0.07 0.22 0.04 0.01 0.03 0.09 0.32 Federal tax rate change3 — — — (4.23 ) — — — — (4.23 ) — Impact of state tax rate
changes — — — — (0.04 ) — — — — (0.04 ) Consumer Products reorganization related expenses — — — — — 0.04 0.01 0.01 — 0.05 Other
— — — — — 0.02 (0.02 ) 0.04 — 0.04 Gain on divested assets, net — — — — — — (0.76 ) (0.05 ) — (0.82 ) Goodwill
impairment — — — — — — — 11.83 — 11.83 Adjusted net earnings per diluted common share2 $0.64 $0.48 $0.32 $0.87 $0.31 $0.43 $1.35 $0.45 $2.32 $2.55 22
ADJUSTED INCOME TAX PROVISION RECONCILIATION OF NON-GAAP FINANCIAL MEASURE (UNAUDITED) 1 Adjusted income tax provision excludes the impact of the items listed that we
do not believe are indicative of our core operating performance.2 The federal tax rate change in Q4'17 is primarily due to the remeasurement of deferred tax liabilities as a result of the Tax Cuts and Jobs Act (the "Act") signed into law on
December 22, 2017. The resulting net tax benefit is included in the three months ended December 31, 2017. The Act is complex and significantly changes the U.S. corporate income tax system by, among other things, reducing the Federal corporate
income tax rate from 35% to 21%. Twelve Months Ended December 31, (Dollars in
thousands) Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 2017 2018 GAAP income tax (provision)
benefit ($5,000 ) ($3,955 ) $3,095 $62,245 $360 ($2,510 ) ($3,675 ) ($4,480 ) $56,385 ($10,305 ) Adjustments, tax impact: Directors' equity-based compensation benefit
(expense) 493 495 (157 ) 121 177 518 (245 ) 73 952 523 Costs associated with Long Island facility closure (158 ) (221 ) (208 ) (99 ) — — — — (686 ) — Costs associated with Oklahoma City
facility closure (1,951 ) (92 ) (1,719 ) (1,215 ) — — — — (4,977 ) — Manchester Industries acquisition related expenses (39 ) (35 ) — — — — — — (74 ) — Write-off of assets as a result of
Warehouse Automation project — (14 ) — — — — — — (14 ) — Accelerated depreciation of assets as a result of Warehouse Automation project — (80 ) (41 ) — — — — — (121 ) — Reorganization
expenses associated with SG&A cost control measures — — (163 ) (594 ) (1,276 ) (280 ) (67 ) (98 ) (757 ) (1,721 ) Federal tax rate change2 — — — (70,055 ) — — — — (70,055 ) — Impact of
state tax rate changes — — — — (676 ) — — — — (676 ) Consumer Products reorganization related expenses — — — — — (206 ) (50 ) (18 ) — (274 ) Other
— — — — — (88 ) 88 (151 ) — (151 ) Gain on divested assets, net — — — — — — 10,264 180 — 10,444 Goodwill impairment — — — — — — — — — — Adjusted
income tax (provision) benefit1 ($6,655 ) ($3,902 ) $807 ($9,597 ) ($1,415 ) ($2,566 ) $6,315 ($4,494 ) ($19,347 ) ($2,160 ) 23
EBITDA & ADJUSTED EBITDA RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) 1 EBITDA is a non-GAAP measure that management uses as a supplemental
performance measure. The most directly comparable GAAP measure is net earnings. EBITDA is net earnings adjusted for net interest expense, income taxes, and depreciation and amortization. It should not be considered as an alternative to net
earnings computed under GAAP.2 Adjusted EBITDA excludes the impact of the items listed that we do not believe are indicative of our core operating performance. Twelve Months Ended December 31,
(Dollars in thousands) Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 2017 2018 Earnings before interest, income taxes, and depreciation & amortization
(EBITDA)1 GAAP net earnings (loss) $7,515 $8,037 $863 $80,924 $2,600 $6,961 $34,444 ($187,772 ) $97,339 ($143,767 ) Interest expense,
net 8,043 7,673 7,683 7,975 8,020 7,723 7,547 7,330 31,374 30,620 Income tax provision (benefit) 5,000 3,955 (3,095 ) (62,245 ) (360 ) 2,510 3,675 4,480 (56,385 ) 10,305 Depreciation
and amortization
expense 27,557 26,055 25,856 25,522 25,167 25,177 25,342 26,267 104,990 101,953 EBITDA1 $48,115 $45,720 $31,307 $52,176 $35,427 $42,371 $71,008 ($149,695 ) $177,318 ($889 ) Directors'
equity-based compensation (benefit) expense (1,450 ) (1,483 ) 463 (363 ) (709 ) (1,990 ) 769 (410 ) (2,833 ) (2,340 ) Costs associated with Long Island facility
closure 466 365 314 298 — — — — 1,443 — Costs associated with Oklahoma City facility closure 2,074 275 5,057 3,649 — — — — 11,055 — Manchester Industries acquisition related
expenses 115 105 — — — — — — 220 — Write-off of assets as a result of Warehouse Automation project — 41 — — — — — — 41 — Reorganization expenses associated with SG&A cost
control measures — — 480 1,783 5,104 1,076 210 545 2,263 6,935 Consumer Products reorganization related expenses — — — — — 792 158 98 — 1,048 Other
— — — — — 338 (338 ) 844 — 844 Gain on divested assets, net — — — — — — (22,944 ) (1,008 ) — (23,952 ) Goodwill
impairment — — — — — — — 195,079 — 195,079 Adjusted EBITDA2 $49,320 $45,023 $37,621 $57,543 $39,822 $42,587 $48,863 $45,453 $189,507 $176,725 24
SEGMENT EBITDA & ADJUSTED EBITDA RECONCILIATION OF NON-GAAPFINANCIAL MEASURES (UNAUDITED) 1 In the first quarter of 2018, we adopted a new accounting standard
that resulted in a change in the presentation of pension and postretirement benefit costs other than service costs on a line outside of operating income. The corresponding prior period amounts have been reclassified to conform with the current
period presentation. 2 Segment EBITDA is a non-GAAP measure that management uses as a supplemental performance measure. The most directly comparable GAAP measure is segment operating income (loss). Segment EBITDA is segment operating income
(loss) adjusted for depreciation and amortization and non-operating pension and other postretirement benefit costs. It should not be considered as an alternative to segment operating income (loss) computed under GAAP. 3 Segment Adjusted EBITDA
excludes the impact of the items listed that we do not believe are indicative of our core operating performance.4 Operating income for Q3'18 and Q4'18 includes $22.9 million $1.0 million, respectively, for the gain on divested assets,
net. Twelve Months Ended December 31, (Dollars in
thousands) Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 2017 2018 Consumer Products Operating income
(loss)1,4 $6,204 $10,698 $4,525 $7,546 $1,629 ($3,604 ) $21,675 ($193,558 ) $28,973 ($173,858 ) Depreciation and amortization
expense 18,242 16,292 16,073 14,400 14,297 14,220 14,447 14,820 65,007 57,784 Segment
EBITDA2 $24,446 $26,990 $20,598 $21,946 $15,926 $10,616 $36,122 ($178,738 ) $93,980 ($116,074 ) Costs associated with Long Island facility
closure 466 365 314 298 — — — — 1,443 — Costs associated with Oklahoma City facility closure 2,074 275 5,057 3,649 — — — — 11,055 — Write-off of assets as a result of Warehouse
Automation project — 41 — — — — — — 41 — Reorganization expenses associated with SG&A cost control measures — — — 20 1,443 216 87 241 20 1,987 Consumer Products reorganization
related expenses — — — — — 792 158 98 — 1,048 Gain on divested assets, net — — — — — (22,944 ) (1,008 ) — (23,952 ) Goodwill
impairment — — — — — — — 195,079 — 195,079 Segment Adjusted EBITDA3 $26,986 $27,671 $25,969 $25,913 $17,369 $11,624 $13,423 $15,672 $106,539 $58,088 Pulp and
Paperboard Operating income1 $27,200 $21,071 $14,735 $34,354 $26,154 $34,192 $38,280 $31,800 $97,360 $130,426 Depreciation and amortization
expense 8,105 8,356 8,328 9,685 9,429 9,361 9,316 9,692 34,474 37,798 Segment
EBITDA2 $35,305 $29,427 $23,063 $44,039 $35,583 $43,553 $47,596 $41,492 $131,834 $168,224 Reorganization expenses associated with SG&A cost control
measures — — — 132 291 92 71 6 132 460 Segment Adjusted
EBITDA3 $35,305 $29,427 $23,063 $44,171 $35,874 $43,645 $47,667 $41,498 $131,966 $168,684 Corporate Operating
loss1 ($12,894 ) ($12,621 ) ($14,100 ) ($15,533 ) ($16,244 ) ($12,207 ) ($13,055 ) ($12,971 ) ($55,148 ) ($54,477 ) Depreciation and amortization
expense 1,210 1,407 1,455 1,437 1,441 1,596 1,579 1,755 5,509 6,371 Non-operating pension and other postretirement benefit
costs1 48 517 291 287 (1,279 ) (1,187 ) (1,234 ) (1,233 ) 1,143 (4,933 ) Corporate
EBITDA2 ($11,636 ) ($10,697 ) ($12,354 ) ($13,809 ) ($16,082 ) ($11,798 ) ($12,710 ) ($12,449 ) ($48,496 ) ($53,039 ) Directors' equity-based compensation (benefit)
expense (1,450 ) (1,483 ) 463 (363 ) (709 ) (1,990 ) 769 (410 ) (2,833 ) (2,340 ) Manchester Industries acquisition related expenses 115 105 — — — — — — 220 — Reorganization expenses
associated with SG&A cost control measures — — 480 1,631 3,370 768 52 298 2,111 4,488 Other — — — — — 338 (338 ) 844 — 844 Corporate Adjusted
EBITDA3 ($12,971 ) ($12,075 ) ($11,411 ) ($12,541 ) ($13,421 ) ($12,682 ) ($12,227 ) ($11,717 ) ($48,998 ) ($50,047 ) 25
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