Slide 1: Q2 2026 Financial Results
Q2 2026 FINANCIAL RESULTS Au gu st 13, 2026
Slide 2: Forward-Looking Statements
F O R W A R D - LO O K I N G S TAT E M E N T S Certain statements in this presentation about KPT's and Kruger Products’ current and future plans, expectations and intentions, results, levels of activity, performance, goals or achievements or any other future events or developments constitute forward
Slide 3: Corporate Structure
C O R P O R AT E S T RU C T U R E 100% 1 88.0% 12.0% 1As of August 13, 2026 3
Slide 4: KP Tissue Inc
KP KP Tissue Inc OUR VISION TO BE THE MOST TRUSTED AND BEST LOVED TISSUE COMPANY IN NORTH AMERICA OUR MISSION MAKING EVERYDAY LIFE MORE COMFORTABLE
Slide 5: Underlying Strategies
5 U N D E R LY I N G S T R AT E G I E S Drive Strong Revenue, Profit and Shareholder Value in a Sustainable Manner 1 2 3 4 5 Consumer As Our Expand Our End-to-End Supply Deliver Winning Team Compass Business Footprint Chain Excellence Sustainability & Culture 5
Slide 6: Q2 2026 Highlights
Q2 2026 HIGHLIGHTS Revenue Adjusted EBITDA1 Net Income $550.9M $90.6M $22.1M 2.8% 25.0% − over Q2 2025 over Q2 2025 over Q2 2025 ($7.7)M $22.5M over Q2 2025 over Q2 2025 (2.6)% +9.5% Revenue Canada Revenue U.S. 1 Non-GAAP measure – see MD&A for the definition and reconciliation of the most comparabl
Slide 7: Pulp Input Prices
PULP INPUT PRICES Q2 2026 NBSK average prices1 in CAD increased 1.8% while BEK average prices1 rose 11.5% sequentially. Q2 2026 NBSK average prices1 in CAD declined 13.4% whereas BEK average prices1 were up 15.2% year-over-year. Industry analysts expect both NBSK and BEK prices to trend upwards in l
Slide 8: Operations
O P E R AT I O N S • Production rates for paper machines and converting operations exceeded expectations across all sites in Q2 2026 and H1 2026 • Strong safety performance continued through mid-year • Ramp-up of new Memphis converting line progressing ahead of plan • Memphis delivering on key safet
Slide 9: Brand Support
BRAND SUPPORT • Continued equity-building campaigns for Cashmere, SpongeTowels, Scotties and Bonterra • Activated Made in Canada promotions, including Cashmere and Purex support • Released modernized Cashmere packaging to enhance brand segmentation • Launched award-winning Cashmere UltraLuxe Bathroo
Slide 10: Brand Leadership
BRAND LEADERSHIP BATHROOM TISSUE FACI AL TISSUE PAPER TOWEL NO. 1 NO. 1 NO. 2 31.6% 47.0% 23.7% * Data represents Nielsen Canadian dollar market share for 52-week period ended June 13, 2026. 10
Slide 11: Kruger Pro
K RU G E R P RO • Revenue and volume grew year-over-year, but profitability declined slightly due to higher transportation costs • Canada volume rose in the second quarter, but U.S. market continued to drive growth • Revenue, volume and profitability increased sequentially • Announced price increase
Slide 12: Quarterly Financial Summary
Q UA R T E R LY F I N A N C I A L S U M M A RY % Change (Million CAD$, unless otherwise noted) Q2 2026 Q1 2026 Q2 2025 Y/Y Q/Q Revenue 550.9 544.6 536.1 2.8% 1.1% Cost of Sales 440.1 436.9 462.2 (4.8)% 0.7% Gross Profit 110.8 107.7 73.9 49.9% 2.9% Gross Margin 20.1% 19.8% 13.8% Adjusted EBITDA1 90.6
Slide 13: Quarterly Segmented Results
Q UA R T E R LY S E G M E N T E D R E S U LT S % Change (Million CAD$, unless otherwise noted) Q2 2026 Q1 2026 Q2 2025 Y/Y Q/Q Segment Revenue Consumer 457.6 461.7 449.2 1.9% (0.9)% AFH 93.3 82.9 86.9 7.4% 12.6% Total Segment Revenue 550.9 544.6 536.1 2.8% 1.1% Segment Adjusted EBITDA1 Consumer 85.3
Slide 14: Q2 2026 Revenue Compared to Q2 2025
Q 2 2 0 2 6 R E V E N U E C O M PA R E D TO Q 2 2 0 2 5 $14.8M $550.9M in Q2 2026 compared to $536.1M in Q2 2025 Increase primarily due to: Q2 2026 Revenue increase • Higher U.S. Consumer and AFH sales volume Partially offset by: 2.8% • Lower Consumer volume in Canada over Q2 2025 ($7.7)M $22.5M ove
Slide 15: Q2 2026 Adjusted EBITDA Compared to Q2 2025
Q 2 2 0 2 6 A D J U S T E D E B I T DA 1 C O M PA R E D TO Q 2 2 0 2 5 $18.1M $90.6M in Q2 2026 compared to $72.5M in Q2 2025 Q2 2026 Adjusted EBITDA1 increase Increase primarily due to: 25.0% • Improved mill performance at Memphis site over Q2 2025 • Higher sales volume • Lower pulp prices Adjusted
Slide 16: Q2 2026 Revenue Compared to Q1 2026
Q 2 2 0 2 6 R E V E N U E C O M PA R E D TO Q 1 2 0 2 6 $550.9M in Q2 2026 compared to $544.6M in Q1 2026 $6.3M Sequential increase primarily due to: Q2 2026 Revenue increase • Higher AFH sales volume 1.1% over Q1 2026 $3.0M $3.3M over Q1 2026 over Q1 2026 +1.0% +1.3% Revenue Canada Revenue U.S. 16
Slide 17: Q2 2026 Adjusted EBITDA Compared to Q1 2026
Q 2 2 0 2 6 A D J U S T E D E B I T DA 1 C O M PA R E D TO Q 1 2 0 2 6 $3.7M $90.6M in Q2 2026 compared to $86.9M in Q1 2026 Q2 2026 Adjusted EBITDA1 increase Sequential increase primarily due to: 4.2% • Lower manufacturing overhead costs over Q1 2026 • Higher AFH sales volume • Decreased marketing
Slide 18: Balance Sheet
BA L A N C E S H E E T (Million CAD$, unless otherwise noted) Q2 2026 Q1 2026 Q2 2025 Cash 165.2 205.9 85.3 Current Portion of Long-term Debt 86.8 110.1 80.0 Long-term Debt 1,076.7 1,058.0 1,125.5 Net Debt 998.3 962.2 1,120.2 LTM Adjusted EBITDA1 347.4 329.3 280.8 Net Debt/LTM Adjusted EBITDA1 2.9x
Slide 19: Capital Expenditures
C A P I TA L E X P E N D I T U R E S $200 • Q2 2026 CAPEX totaled $15.5M compared to $16.0M in Q1 2026 $180 $160 • Anticipating $90M-$110M in CAPEX for 2026, $140 driven by strategic projects, including pre- $120 engineering work for U.S. TAD expansion Millions $100 $80 $60 $40 $20 $0 2022 2023 2024
Slide 20: Reimagine 2030: Sustainability Focus
R E I M AG I N E 2 0 3 0 : S U S TA I N A B I L I T Y F O C U S 20
Slide 21: Executing Today Building for Tomorrow
EXECUTING TODAY BUILDING FOR TOMORROW • Delivering margins given potential escalating input costs and tariffs • Ramping up new converting line in Memphis • Driving long-term brand share • Kruger PRO continuing to deliver profitable growth • Progressing towards selecting final location for new TAD fa
Slide 22: KP Tissue Inc.
KP Tissue Inc. Ca Bonterra ~\i ( P Purex pom ‘Sponge! TAN e Towels A Scottics aim Seale THANK YOU WWW.KPTISSUEINC.COM