Clearwater Paper Corporation · NYSE:CLW
Clearwater Paper — Investor Presentation (September 2013)
28 slides from Clearwater Paper's investor presentation, Sep 10, 2013
Slide 1: Clearwater Paper Corporation September 2013
Exhibit 99.1 Clearwater 2013 September Paper Corporation
Slide 2: Forward-Looking Statements
Forward-Looking This market U.S. quarterly efficiency pricing “expect,” looking implied 10-K customer competitive benefits transportation of economic limited Forward-looking 1result packaging presentation tissue for ofdynamics and number by statements expected new the Adjusted acceptance “intend,” c
Slide 3: Overview of Clearwater Paper
2Overview of Clearwater Paper
Slide 4: Introduction to Clearwater Paper
Introduction We Operate –Financial 3¹Approximately See Pulp Consumer LTM 2008 are Appendix and Adjusted to Net atwo company overview LTM Paperboard: Sales: Products: business to Clearwater Adjusted 3,960 for EBITDA1: $1.9 formed the assegments employees of 62% definition billion 38% EBITDA1 June in
Slide 5: Consumer Products Division Overview: Clearwater Tissue
Overview value Key Clearwater Tissue 2013 Dollar 4% Drug 7% Mass 21% Source: 27% ²¹Supercenter Represents Retail 4% Club Products U.S. Grocery + tissue All Parent Production¹: Converting channel Company 37% of Tissue Other Paper products 2012 Consumer Roll Overview share Industry Tissue iscapacity e
Slide 6: Stable Tissue Market Growth
Clearwater Tissue Stable consistent 5Source: Growth—The Market U.S. with Paper Tissue Dynamics population is Well demand tissue Positioned growth market per RISI has tofor Capitalize grown NorthanAmerica average on Favorable only, of 2%U.S. annually Population since per 1996, U.S. Census
Slide 7: Private Label Tissue Continues to Capture Market Share
Private Clearwater 2013 manufacturers Product 6Source: U.S. Label IRIWorldwide, Mix Retail Paper Continues Tissue ranks 52 as Industry toone Weeks Capture of the Ending Market largest July Share North 21, in 2013 American Tissue private label tissue
Slide 8: Significant Private Label Opportunity Across the West
Significant Across 2013 West Equalized % Clearwater Eastern –If 71Source: 22% Multi-Outlet Clearwater of U.S. Private Clearwater Midwest Multi-Outlet share the U.S. IRIWorldwide, Label Population Case U.S. Paper Opportunity inPaper Paper East includes Midwest East Volumes Private (PL) led is 1Total
Slide 9: North American Tissue Capacity and Demand
North Capacity (in 2012 Ratio Longer Short and Source: Notes: Please thousands isDemand of term American yet see Projected term RISI 95% Increases to Appendix market be healthy and Ratio of tofully short Market capacity Capacity company pressures ofmarket absorbed for tons) 95% Demand breakdown chan
Slide 10: Pulp and Paperboard Division Overview
Overview Key Pulp Clearwater 2012 Paperboard ²¹Source: Represents Products Production¹: North Company ofPaper American Production 2012 ~6.0 Pulp Overview ranks Pulp SBS million 856,000 and capacity estimates, Bleached Paperboard Paperboard by as oftons. one Product tons Facilities volumes. RISI of 9
Slide 11: Favorable Bleached Paperboard Outlook
Paperboard Favorable Bleached ²¹Source: Average Based on RISI, paperboard price in tons Demand the Projected per produced. U.S. short Remains prices GDP ton Projections are of growth Stable 16 expected pt.and estimates SBS based to Pricing folding remain on represent North Outlook carton at attracti
Slide 12: Clearwater Paper's Strategic Plan
Clearwater Paper’s Strategic Plan 11
Slide 13: Our Business Strategy
Our •Grow Optimize of Business 12 Lead Expand Paperboard Macro our private •retail Profitability Tissue Continue Strategy label •channel Reduce • Expand quality to•Create improve penetration Improve costs geographically Shareholder quality sales mix Value
Slide 14: Successful Execution Against Stated Goals
Successful Stated Shelby Complete Corresponding Shelby, line Increased Successfully Achieved Acquisition Cellu Paper Expand Reach Expansion glazed Enhanced Sold acquisition Optimize Installed Idaho Conservative months cycle Maintain Clearwater 13 expansion from Lewiston of Tissue aof major Goal sale
Slide 15: Continued Momentum
Continued Refinanced Initiated Commenced Announced Launched 14 a a$100 momentum debt asset new chipping million to mission, rationalization secure facility into stock vision long-term 2013 buyback operations with and capital strategy the phased flexibility companywide closure of Thomaston called DRI
Slide 16: Our 3 Year Strategy
Our 3 Year Strategy DEVELOP Engage and protect our people REALIZE Grow and enhance financial performance IMPROVE Promote efficient processes VALUE Deepen relationships with our customers ENSURE ‘Sustain the future for our company, industry and communities 15 A al
Slide 17: Clearwater Paper's Value Proposition
Clearwater Paper’s Value Proposition 16
Slide 18: Key Free Cash Flow Realization
Key ($ Flow Realization Shelby Ramp-up Cash from of machine, converting and paper upgrade Sale Realized Energy $40+ Per Q2-2013 Q3-2013 Q4-2013 •Q1-2014 Expected ($12-$15 ¹Note: the Arkansas See TAD inmost Quarter Las Initiatives of millions) Appendix full Taxes (FCF) Chip Assumes machine Cellu Wood
Slide 19: Roadmap and Quarterly Price Changes
Roadmap Quarterly ($ Price Q2-2013 % Paperboard External Pricing •Thomaston $1-$ Current Expectations •Coating change •Arkansas upgrade $7MM cadence 1Diesel part 432actual changes 18Assumes Non-GAAP In inbased Change4 July September 3millions) &results Fuel $4MM $0-$ Q1’14 Unit $1 $.5 in Pulp 2013,
Slide 20: Total Return Since Spin
360%+ 350% 400% 450% 468.2% 500% Return 300% Total 150% 100% Indexed Dec-2008 (100)% (50)% 0% 50% Spin Clearwater ²1Source: ³MeadWestvaco, Note. Paperboard Large Small Date 200% Total 359.4% 155.4% 108.5% 250% cap Total Bloomberg cap 84.3% Sep-2009 Paper Return consumer tissue peers Return RockTenn,
Slide 21: Strong Upward Trend in EBITDA Multiple
Strong 11.1 12x 14x ultiple 8x EBITDA ard Year -2Forw Dec-2008 0x Spin Clearwater ²1Source: 4³MeadWestvaco, xLarge Paperboard M7.8 Small Non-GAAP 6x 8.5 xDate 4xx10x Upward cap Bloomberg, cap x7.6 Aug-2009 Paper consumer tissue peers xmeasure Trend RockTenn, Small peers include Capital Apr-2010 prod
Slide 22: Clearwater Paper's Outlook
Clearwater Paper’s Outlook 21
Slide 23: Third Quarter 2013 Outlook
Third Consumer Production progresses Shipment volumes (tons Flat Price/Mix (0-2% Moderately Pulp/Wood/Fiber ($2-3M Chemical costs Transportation Energy Idaho Maintenance Repairs $3.5M 1SG&A $11M-$12M 32including 22This Theto1-3% internal Stable Quarter maintenance outlook lower) information down of
Slide 24: Appendix
Appendix 23 A al
Slide 25: Reconciliation of Clearwater Net Income to Adjusted EBITDA
Reconciliation Clearwater ($ 2008 Net Income Interest Earnings Depreciation EBITDA1 Alternative Cellu Lewiston, Loss Expenses Costs Directors closure 21Adjusted 24See Interest inearnings millions) on 2009 Tissue page associated tax expense2 sale before EBITDA¹ equity-based expense, associated Idaho
Slide 26: Reconciliation of Clearwater and Cellu Tissue Pro Forma EBITDA
Reconciliation Clearwater ($ Cellu Cross Tissue Shelby Operating Depreciation EBITDA1 1Adjusted 25See in millions) Cycle page Cost Synergies EBITDA¹ income $26 Paper Adjusted 50.0 and of ofthis amortization Pro GAAP $Optimization $40.0 $37.0 Appendix Forma 50.0 $to $19.0 $40.0 Non-GAAP: 40.0 Adjuste
Slide 27: Definitions of Non-GAAP Measures
Definitions Clearwater EBITDA defined Adjusted GAAP. disposition GAAP 26 measure byis EBITDA Clearwater Paper related of a non-GAAP Non-GAAP isDefinitions net expenses, is aearnings. Paper non-GAAP measure Measures management, alternative of ItNon-GAAP should that measure Clearwater fuel not isthat
Slide 28: North American Tissue Capacity Changes
North Company Capacity K.T.G. Florelle First Confidential No Announced Conv Tak Recycled Net Potential Procter Snelling, South *Carolina Source: 27= announced estimated Capacity Investments Quality Rebuild American Georgia (USA)/Kruger &RISI Tissue committed Changes Projects Barnwell PMT Mill/Locati
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