Mativ Holdings, Inc. · NYSE:MATV

Mativ — Schweitzer Mauduit International — Investor Presentation (February 2015)

41 slides from Mativ's investor presentation, Feb 17, 2015

1. Slide 1: Investor Presentation February 2015

   Investor Presentation NYSE: SWM February 2015

2. Slide 2: Safe Harbor Statement

   © 2015 Schweitzer-Mauduit International, Inc. All Rights Reserved. Confidential Safe Harbor Statement This presentation may contain “forward-looking statements.” All statements that address operating performance, events or developments that we expect or anticipate will occur in the future are forwar

3. Slide 3: Agenda

   © 2015 Schweitzer-Mauduit International, Inc. All Rights Reserved. Confidential Agenda Overview Paper & RTL Segments Filtration Segment 3  Growth Catalysts Financials Summary

4. Slide 4: Overview – Highlights

   © 2015 Schweitzer-Mauduit International, Inc. All Rights Reserved. Confidential Overview – Highlights A leading global supplier of highly engineered papers and other advanced materials to a diverse customer base CIGARETTE PAPER & RECONSTITUTED TOBACCO OPERATIONS (RTL): Global tobacco industry (75%+

5. Slide 5: Overview – Historical Cash Flow, Dividends, & Buybacks

   © 2015 Schweitzer-Mauduit International, Inc. All Rights Reserved. Confidential 5 Overview – Historical Cash Flow, Dividends, & Buybacks (1) Free Cash Flow from Continuing Operations is equal to Operating Cash from Continuing Operations less capital expenditures and capitalized software expenditures

6. Slide 6: Overview – Segments/Products

   © 2015 Schweitzer-Mauduit International, Inc. All Rights Reserved. Confidential Overview – Segments/Products 6 Paper • 34% SWM share in the global tobacco paper industry (excluding China) • Profit driver is Low-Ignition Propensity paper (LIP), a fire safety product/feature that has been mandated in

7. Slide 7: Overview – Infrastructure

   © 2015 Schweitzer-Mauduit International, Inc. All Rights Reserved. Confidential Overview – Infrastructure 7 SWM has a global manufacturing infrastructure; U.S.-centric Filtration segment becoming more international with access to global footprint and acquisitions China 9% Paper Paper Recon Paper Pap

8. Slide 8: Overview – Operational and Strategic Outlook

   © 2015 Schweitzer-Mauduit International, Inc. All Rights Reserved. Confidential Overview – Operational and Strategic Outlook 8 Monetization of key tobacco paper technology driving capital return to shareholders, and providing financial flexibility to diversify into adjacencies with favorable growth

9. Slide 9: Agenda

   © 2015 Schweitzer-Mauduit International, Inc. All Rights Reserved. Confidential Agenda Overview Paper & RTL Segments  Filtration Segment 9 Growth Catalysts Financials Summary

10. Slide 10: Paper Segment – Products

    © 2015 Schweitzer-Mauduit International, Inc. All Rights Reserved. Confidential Paper Segment – Products SWM is the global leader in cigarette paper through focus on solving customer issues, collaborative relationships, leading innovation and global capabilities 10 LIP technology is a key profit dri

11. Slide 11: RTL Segment – Products

    © 2015 Schweitzer-Mauduit International, Inc. All Rights Reserved. Confidential RTL Segment – Products RTL offers 3 key benefits 1) Harmful Constituents Reduction – lower tar and nicotine delivery 2) Cost – RTL’s finished good price is cheaper than high-grade virgin tobacco 3) Flavor Control – Proce

12. Slide 12: Paper & RTL Segments – Customers

    © 2015 Schweitzer-Mauduit International, Inc. All Rights Reserved. Confidential Philip Morris Intl 14% BAT 10% Imperial 4% Japan Tobacco 8% China 40% Other 21% PM-USA 2% Paper & RTL Segments – Customers 12 SWM’s extensive expertise in the engineering and production of specialty lightweight papers ha

13. Slide 13: Paper & RTL Segments – Tobacco End-Market

    © 2015 Schweitzer-Mauduit International, Inc. All Rights Reserved. Confidential Paper & RTL Segments – Tobacco End-Market 13 Global Cigarette Consumption 2013: 5.8 trillion sticks, -1% (-3% excluding China) Am & Oceania 2013: -4% ~6% of global Latin America 2013: -2% ~4% of global Europe 2013: -7% ~

14. Slide 14: Paper & RTL Segments – Tobacco End-Market: Global Positioning

    © 2015 Schweitzer-Mauduit International, Inc. All Rights Reserved. Confidential SWM, 54% Reynolds, 11% KT&G, 7% Japan Tobacco, 14% Altria, 14% SWM, 34% Delfort, 24% Glatz, 14% MyC, 8% BMJ, 11% Other, 9% Global Positioning – RTL1 Total: 132k tons Paper & RTL Segments – Tobacco End-Market 1 Share by v

15. Slide 15: Paper & RTL Segments – Marketplace Trends / Developments

    © 2015 Schweitzer-Mauduit International, Inc. All Rights Reserved. Confidential Paper & RTL Segments – Tobacco End-Market 15 Marketplace Trends / Developments Comments / Impacts LIP compliance adopted in North America and Western Europe 2010 - 2012, potential further international adoptions - SWM’s

16. Slide 16: Agenda

    © 2015 Schweitzer-Mauduit International, Inc. All Rights Reserved. Confidential Agenda Overview Paper & RTL Segments Filtration Segment  16 Growth Catalysts Financials Summary

17. Slide 17: Filtration Segment – Products

    © 2015 Schweitzer-Mauduit International, Inc. All Rights Reserved. Confidential Filtration Segment – Products 17 SWM produces highly engineered filtration components; several niche products have secured strong footholds in water, industrial, and healthcare sub-segments Plastic Netting NALTEX • Large

18. Slide 18: Filtration Segment – Customers

    © 2015 Schweitzer-Mauduit International, Inc. All Rights Reserved. Confidential Filtration Segment – Customers 18 A culture of customer intimacy and innovation regularly results in co-development and proprietary R&D work for many top customers, which often leads to unique exclusivity and sole source

19. Slide 19: Filtration Segment – End-Markets: Water Filtration

    © 2015 Schweitzer-Mauduit International, Inc. All Rights Reserved. Confidential Filtration Segment – End-Markets 19 Water Filtration Global demand for reverse osmosis (RO) water filtration is growing at approximately 10% per year, and SWM is well- positioned to capitalize on this growth Exposure to

20. Slide 20: Filtration Segment – End-Markets: Other Filtration and Healthcare

    © 2015 Schweitzer-Mauduit International, Inc. All Rights Reserved. Confidential Filtration Segment – End-Markets 20 Other Filtration Other liquid, fuel, and air filtration, primarily in automotive and aerospace, exhibit growth rates in the 5% - 7% range due to expansion of China and India and a glob

21. Slide 21: Filtration Segment – Recent Strategic Acquisitions

    © 2015 Schweitzer-Mauduit International, Inc. All Rights Reserved. Confidential 21 Filtration Segment – Recent Strategic Acquisitions • Acquired assets from Smith & Nephew’s Wound Management Division, plant in the UK • Expected annual revenue $16+ million • Key product lines are resin-based nets, fo

22. Slide 22: Agenda

    © 2015 Schweitzer-Mauduit International, Inc. All Rights Reserved. Confidential Agenda Overview Paper & RTL Segments Filtration Segment 22 Growth Catalysts  Financials Summary

23. Slide 23: Growth Catalysts – Highlights

    © 2015 Schweitzer-Mauduit International, Inc. All Rights Reserved. Confidential Growth Catalysts – Highlights • Only ~15% of global cigarette consumption under LIP regulation • South Korea announced 2015 implementation, however uncertainty remains regarding technical standards • Several other countr

24. Slide 24: Growth Catalysts – LIP

    © 2015 Schweitzer-Mauduit International, Inc. All Rights Reserved. Confidential Growth Catalysts – LIP Source: SWM management 24 With only ~15% of global cigarette production under LIP regulation, a sizeable opportunity remains for global adoption • SWM’s LIP technology became preferred choice… a “g

25. Slide 25: Growth Catalysts – China

    © 2015 Schweitzer-Mauduit International, Inc. All Rights Reserved. Confidential 25 Growth Catalysts – China • China dominates global tobacco industry with 40% of consumption • Chinese smokers are ‘trading up’ • Premium cigarette’s segment share was 5% in 2006 and is expected to reach 16% by 2016 • S

26. Slide 26: Growth Catalysts – China Joint Ventures

    © 2015 Schweitzer-Mauduit International, Inc. All Rights Reserved. Confidential Growth Catalysts – China Joint Ventures • SWM ownership: 50% (signed in 2011) • Start-up: 2014 • SWM equity contribution: ≈ $35 million • Potential Annual Net Income (SWM share): $8 - $10 million • Run-rate expected to b

27. Slide 27: Growth Catalysts – Filtration & Other Diversification

    © 2015 Schweitzer-Mauduit International, Inc. All Rights Reserved. Confidential 27 Growth Catalysts – Filtration & Other Diversification SWM also remains committed to diversification through organic investments and sizeable acquisitions that complement existing businesses and newly formed Advance Fi

28. Slide 28: Agenda

    © 2015 Schweitzer-Mauduit International, Inc. All Rights Reserved. Confidential Agenda Overview Paper & RTL Segments Filtration Segment 28 Growth Catalysts Financials  Summary

29. Slide 29: Financials – Recent Results

    © 2015 Schweitzer-Mauduit International, Inc. All Rights Reserved. Confidential 29 Financials – Recent Results (1) GAAP Net (Loss) Income from Continuing Operations includes restructuring and impairment expenses. (2) Excludes restructuring and impairment expenses, income tax valuation adjustments, p

30. Slide 30: Financials – Capital Structure & Liquidity

    © 2015 Schweitzer-Mauduit International, Inc. All Rights Reserved. Confidential 2014 Cash Uses: • Capital spending: $35 million (including Filtration) • Final CTS funding: $9 million • Dividends: $45 million • Share Buyback: $50 million • Filtration Segment Acquisitions: $30 million (1) Net Debt (Ca

31. Slide 31: Financials – Capital Allocation Strategy

    © 2015 Schweitzer-Mauduit International, Inc. All Rights Reserved. Confidential • Tobacco business • Selective tobacco-related investments - Products (LIP), Geographies (China) - Operational improvements - Industry Consolidation • Diversification and acquisitions • Filtration segment organic investm

32. Slide 32: Financials – 2014 Review & 2015 Outlook

    © 2015 Schweitzer-Mauduit International, Inc. All Rights Reserved. Confidential 32 • Adjusted EPS from Continuing Operations of $3.46 exceeded $3.40 guidance (see non-GAAP reconciliation in appendix) - Adjusted EBITDA: $178 million Free Cash Flow: $130 million • Recon volumes down 28%, driven by cus

33. Slide 33: Agenda

    © 2015 Schweitzer-Mauduit International, Inc. All Rights Reserved. Confidential Agenda Overview Paper & RTL Segments Filtration Segment 33 Growth Catalysts Financials Summary 

34. Slide 34: Summary – Investment Considerations

    © 2015 Schweitzer-Mauduit International, Inc. All Rights Reserved. Confidential Summary – Investment Considerations 34 Execution, customer intimacy, and technology are our foundation for success and provide strong financial footing for future growth Cash Flow from Tobacco Operations Management Execu

35. Slide 35: Appendix / Additional Slides

    Appendix / Additional Slides 35

36. Slide 36: Sustainability’s Working Themes

    © 2015 Schweitzer-Mauduit International, Inc. All Rights Reserved. Confidential 36 Sustainability’s 4 Working Themes

37. Slide 37: Sustainability Key Initiatives

    © 2015 Schweitzer-Mauduit International, Inc. All Rights Reserved. Confidential • ERM (Enterprise Risk Management) • Compliance Program • QEHS (Quality, Environment, Health & Safety) Management System : add value Risk Management • Innovation & Product Stewardship : develop Good Manufacturing Practic

38. Slide 38: Manufacturing Cost Components – 2014

    © 2015Schweitzer-Mauduit International, Inc. All Rights Reserved. Confidential Manufacturing Cost Components – 2014 38 Labor, 25% Wood Pulp, 9% Energy, 10% Chemicals, 8% D,T,I, 6% Veg. Fiber, 5% Other, 37%

39. Slide 39: Capital Spending

    © 2015 Schweitzer-Mauduit International, Inc. All Rights Reserved. Confidential $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 $100 2000 2002 2004 2006 2008 2010 2012 2014 M il li o n s Capital Spending 39 P D M R e stru c tu ri n g B ra z il # 6 P M P h ilip p in e R T L E U L IP P h ilip p in e R T L Fi l

40. Slide 40: Non-GAAP Reconciliations

    © 2015 Schweitzer-Mauduit International, Inc. All Rights Reserved. Confidential Non-GAAP Reconciliations Note: Non-GAAP info spreadsheet saved in applicable SEC filing folder. Copy, paste as enhanced metafile with white fill to eliminate grid lines Certain financial measures and comments contained i

41. Slide 41: Non-GAAP Reconciliations – Con’t

    © 2015 Schweitzer-Mauduit International, Inc. All Rights Reserved. Confidential Non-GAAP Reconciliations – Con’t Note: Non-GAAP info spreadsheet saved in applicable SEC filing folder. Copy, paste as enhanced metafile with white fill to eliminate grid lines Certain financial measures and comments con

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