Clearwater Paper Corporation · NYSE:CLW
Clearwater Paper — Investor Presentation (June 2020)
17 slides from Clearwater Paper's investor presentation, Jun 8, 2020
Slide 1: Investor Presentation June 2020
InvestorInvestor PresentationPresentation JuneJune 2020 2020
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Cautionary Statement Regarding 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
Slide 3: Clearwater Paper – At a Glance
CLEARWATER PAPER – AT A GLANCE TRUSTED PRODUCTS THAT ARE ESSENTIAL IN EVERYDAY LIFE Key Highlights Two Well-Positioned Businesses $1,761M $167M 2019 NET SALES 2019 ADJUSTED EBITDA Adjusted SALES1 44% 47% $478M $55M 56% EBITDA1 53% Q1 2020 NET SALES Q1 2020 ADJUSTED EBITDA National Footprint Supporti
Slide 4: Clearwater Paper Value Proposition
CLEARWATER PAPER VALUE PROPOSITION Well positioned across two attractive businesses Consumer Products: . Leading private brand provider with national scale & superior supply chain performance . Shift to private-branded over branded product continues with long runway . Tissue is need-based and econom
Slide 5: Capital Structure and Allocation
CAPITAL STRUCTURE AND ALLOCATION Capital structure: supportive and stable . Capital structure provides ample liquidity Liquidity Profile ($ in millions)1 . No material near-term debt maturities ABL Availability $231.5 . Corporate/Issuer ratings: Ba2/BB- Less Utilization (57.9) Plus Unrestricted Cash
Slide 6: Sustainability
SUSTAINABILITY . We have a strong legacy of prioritizing the sustainability of both the products we make and the way we make them. . This positive impact is possible with the commitment of our employees, who continue to take our company to new levels of sustainability performance. . We are committed
Slide 7: Consumer Products Division
Consumer Products Division Page 7 © Clearwater Paper Corporation 2020
Slide 8: CLW: Consumer Products Overview
CLW: CONSUMER PRODUCTS OVERVIEW . Manufactures and sells a complete line of at-home products for retailers . Leader in growing North American private brand tissue segment . Approximately 1/3 of overall tissue market is private brand1 . National footprint allowing for appropriate scale and partnershi
Slide 9: Consumer Products Industry Overview
CONSUMER PRODUCTS INDUSTRY OVERVIEW Industry Overview . U.S. tissue market is comprised of at-home and the away- from-home (AFH) segments Napkins Facial Tissue 4% − At-home segment: bath, paper towels, facial and napkin 9% AFH product categories, purchased by consumers in grocery, 33% North American
Slide 10: Demand Trends: Consumer Products
DEMAND TRENDS: CONSUMER PRODUCTS Tissue demand grows with population North American Tissue Demand and U.S. Population Growth North American Tissue Demand (Thousands of Tons)1 U.S. Population (mm)2 North American Change in Capacity (Thousands of Tons)3 2003 – 2020E CAGR: 1.7% 2003 – 2020E CAGR: 0.8%
Slide 11: Investment in Shelby, NC
INVESTMENT IN SHELBY, NC Investment Overview . Installation of tissue machine and corresponding converting equipment and warehousing . Located in Shelby, NC, adjacent to existing tissue plant . Completed investment of $420M Investment Benefit Summary Investment Highlights & Progress . More effective
Slide 12: Paperboard Products Division
Paperboard Products Division Page 12 © Clearwater Paper Corporation 2020
Slide 13: CLW: Paperboard Segment Overview
CLW: PAPERBOARD SEGMENT OVERVIEW . Manufactures and markets premium white SBS paperboard; offers services including custom sheeting and slitting, as well as converting solutions consulting . Focused on diverse North American SBS high-end packaging segments . Top 5 SBS manufacturer in North America O
Slide 14: Paperboard Industry Overview
PAPERBOARD INDUSTRY OVERVIEW Industry Overview Other . Clearwater Paper operates within the Solid Bleached 4% Liquid Cup and Sulfate (“SBS”) or premium white paperboard segment Packaging Plate SBS of the broader paperboard industry Unbleached 24% 25% 55% Kraft − SBS is a high-performance paperboard
Slide 15: Demand Trends: Paperboard
DEMAND TRENDS: PAPERBOARD Recession Resilient . Markets for SBS are stable . Continued shift in consumer preference away from both foam and plastic to paper food service products supports demand for paperboard . Approximately 2/3 of end market segments are recession resilient U.S. Bleached Paperboar
Slide 16: Summary
Summary Investor Presentation June 2020
Slide 17: Clearwater Paper Value Proposition
Clearwater Paper Value Proposition . New executive management team . Well positioned across two attractive businesses . Economically resilient market segments . Completed major capital expenditures . Focusing on cash generation to reduce debt by . Delivering benefits from Shelby investment . Continu