supplemental data – q2 2014 earnings call

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Supplemental Data – Q2 2014 Earnings Call

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Page 1: Supplemental Data – Q2 2014 Earnings Call

1

Net Sales Q113

Q114 Q213

Q214 Q313 Q314 Q413 Q414 % Change

Q2 % Change

YTD

Fine Paper $99.4 $101.5 $100.0 $106.6 $102.6 $ $99.8 7% 4%

Technical Products 107.0 117.5 105.8 116.9 104.4 98.9 10% 10%

Other 6.8 6.1 6.5 6.9 7.1 6.2 6% (2%)

Consolidated $213.2 $225.1 $212.3 $230.4 $214.1 $204.9 9% 7%

Adj. EBIT

Fine Paper $16.4 $13.3 $15.6 $17.3 $13.5 $14.7 11% (4%)

Technical Products 9.7 14.0 11.9 13.6 6.9 10.3 14% 28%

Unallocated Corp./Other (3.8) (4.0) (4.1) (4.3) (3.6) (2.4) (5%) (5%)

Consolidated $22.3 $23.3 $23.4 $26.6 $16.8 $22.6 14% 9%

Reported E.P.S. $0.73 $0.78 $0.77 $0.88 $0.68 $0.78 14% 10%

Adjusted E.P.S. $0.74 $0.79 $0.80 $0.90 $0.61 $0.78 13% 9%

Financial Overview – Quarterly Comparison

Page 2: Supplemental Data – Q2 2014 Earnings Call

$45.7

$4.5

$3.9 $1.1 $0.2

($4.6) ($0.9)

$49.9

2013 Volume Price/Mix

SG&A/Other

Mfg Energy OtherInputCosts

2014

2

YTD EBIT growth driven by increased volumes,

price and cost performance Input costs higher primarily due to Q1 spike in

US energy prices

Change in Adjusted EBIT

Profit increase led by strong topline performance across all businesses

$23.4

$3.4

$2.2

($0.9) ($0.7) ($0.7) ($0.1)

$26.6

2013 Volume Price/ Mix Mfg SG&A/Other

Energy OtherInputCosts

2014

Q2 YTD

Page 3: Supplemental Data – Q2 2014 Earnings Call

Net Sales 2010 2011 2012 2013 LTM

Q2-14 2010-2014

CAGR

Fine Paper $273.4 $274.9 $372.7 $401.8 $410.5 11%

Technical Products 384.3 421.1 406.6 416.1 437.7 3%

Other 0.0 0.0 29.5 26.6 26.3 NM

Consolidated $657.7 $696.0 $808.8 $844.5 $874.5 7%

Adj. EBIT

Fine Paper $37.1 $39.7 $55.8 $60.2 $58.8 12%

Technical Products 29.2 33.8 37.6 38.8 44.8 11%

Unallocated Corp./Other (14.6) (14.5) (13.1) (13.9) (14.3) NM

Consolidated $51.7 $59.0 $80.3 $85.1 $89.3 15%

Reported E.P.S. $1.61 $1.82 $2.41 $2.96 $3.12 18%

Adjusted E.P.S. $1.47 $1.91 $2.78 $2.93 $3.08 20%

Financial Overview – Annual Trends

3

Page 4: Supplemental Data – Q2 2014 Earnings Call

External Information

Q1 Q2 Q3 Q4 Average

2010 1.39 1.28 1.29 1.36 1.33

2011 1.37 1.44 1.42 1.35 1.39

2012 1.31 1.29 1.25 1.30 1.29

2013 1.32 1.31 1.32 1.36 1.33

2014 1.37 1.37 1.37

Q1 Q2 Q3 Q4 Average

NBSK 2010 880 993 1,000 967 960

2011 970 1,025 998 917 978

2012 870 900 853 863 872

2013 897 937 947 983 941

2014 1,017 1,030

NBHK 2010 787 947 913 838 871

2011 825 855 828 745 813

2012 720 793 768 753 759

2013 792 853 870 860 844

2014 872 873

Q1 Q2 Q3 Q4 Full Year

US 2010 1.6 3.9 2.8 2.8 2.5

2011 (1.3) 3.2 1.4 4.9 1.8

2012 3.7 1.2 2.8 0.1 2.8

2013 1.1 2.5 4.1 2.6 1.9

2014 (2.9) 3.2 1.6

EURO Zone 2010 1.7 3.7 1.4 2.2 1.9

2011 3.7 0.2 0.1 (0.9) 1.7

2012 (0.3) (1.1) (0.6) (2.1) (0.6)

2013 (0.8) 1.3 0.4 1.2 (0.4)

2014 0.8 1.6 1.1

Q1 Q2 Q3 Q4 Full Year

2010 3.4 2.8 (1.3) (3.4) (0.3)

2011 (3.8) (4.9) (2.1) (2.9) (3.4)

2012 (0.9) (5.0) (7.1) (4.4) (4.5)

2013 (7.6) (2.5) 0.3 2.5 (1.9)

2014 (2.9) (3.3)

Source: Bank of America Merrill Lynch – July 3, 2014

Source: PPPC UNCOATED WOODFREE PAPERS STATISTICS – June 2014

N.A. Uncoated Free Sheet Market % Change Demand

Source: Average (Bank of America/JPMorgan/Goldman Sachs/Commerzbank) – June 2014

4

Source: RISI – July, 2014

% GDP Growth

Exchange Rate (EURO/US)

Pulp Market List Price $/MT

Page 5: Supplemental Data – Q2 2014 Earnings Call

Quarterly GAAP Reconciliation Table

5

Continuing Operations $ millions Q113

Q114 Q213 Q214 Q313 Q314 Q413 Q414

GAAP Operating Income $ 22.2 $ 23.0 $ 22.6 $ $ 16.4 $ 22.6

Pension settlement charge - - 0.2 - -

Integration/Restructuring costs 0.1 0.3 0.1 0.4 -

Early extinguishment of debt - - 0.5 - -

Adjusted Operating Income $ 22.3 $ 23.3 $ 23.4 $ $ 16.8 $ 22.6

GAAP Income $ 12.1 $ 13.2 $ 12.8 $ $ 11.4 $ 13.1

Pension settlement charge - 0.2 0.1 - -

Integration/Restructuring costs 0.1 - 0.1 0.2 -

Early extinguishment of debt - - 0.3 - -

R&D tax credit - - - (1.4) -

Adjusted Income $ 12.2 $ 13.4 $ 13.3 $ $ 10.2 $ 13.1

GAAP Earnings per Diluted Common Share $ 0.73 $ 0.78 $ 0.77 $0. $ 0.68 $ 0.78

Pension settlement charge - - 0.01 - -

Integration/Restructuring costs 0.01 0.01 - 0.01 -

Early extinguishment of debt - - 0.02 - -

R&D tax credit - - - (0.08) -

Adjusted Earnings per Share $ 0.74 $ 0.79 $ 0.80 $0. $ 0.61 $ 0.78

Continuing Operations $ millions

Q113

Q114 Q213 Q214 Q313 Q314 Q413 Q413

GAAP Operating Income $ 22.2 $ 23.0 $ 22.6 $ 25.9 $ 16.4 $ $ 22.6 $

Pension settlement charge - - 0.2 - - -

Integration/Restructuring costs 0.1 0.3 0.1 0.7 0.4 -

Early extinguishment of debt - - 0.5 - - -

Adjusted Operating Income $ 22.3 $ 23.3 $ 23.4 $ 26.6 $ 16.8 $ $ 22.6 $

GAAP Income $ 12.1 $ 13.2 $ 12.8 $ 15.0 $ 11.4 $ $ 13.1 $

Pension settlement charge - - 0.1 - - -

Integration/Restructuring costs 0.1 0.2 0.1 0.4 0.2 -

Early extinguishment of debt - - 0.3 - - -

R&D tax credit - - - - (1.4) -

Adjusted Income $ 12.2 $ 13.4 $ 13.3 $15.4 $ 10.2 $ $ 13.1 $

GAAP Earnings per Diluted Common Share $ 0.73 $ 0.78 $ 0.77 $ 0.88 $ 0.68 $ $ 0.78 $

Pension settlement charge - - 0.01 - - -

Integration/Restructuring costs 0.01 0.01 - 0.02 0.01 -

Early extinguishment of debt - - 0.02 - - -

R&D tax credit - - - - (0.08) -

Adjusted Earnings per Share $ 0.74 $ 0.79 $ 0.80 $ 0.90 $ 0.61 $ $ 0.78 $

Page 6: Supplemental Data – Q2 2014 Earnings Call

Annual GAAP Reconciliation Table

6

Continuing Operations $ millions 2010

2011 2012 2013

LTM 2014

GAAP Operating Income $ 55.1 $ 56.6 $ 70.4 $ 83.8 $87.9

Gain on Ripon Sale (3.4) - - - -

Pension settlement charge - - 3.5 0.2 -

Integration/Restructuring costs - - 5.8 0.6 1.4

Early extinguishment of debt - 2.4 0.6 0.5 -

Adjusted Operating Income $ 51.7 $ 59.0 $ 80.3 $ 85.1 $ 89.3

GAAP Income $ 25.0 $ 29.3 $ 39.9 $ 49.4 $ 52.7

Gain on Ripon Sale (2.1) - - - -

Pension settlement charge - - 2.2 0.1 -

Integration costs - - 3.5 0.4 0.8

Early extinguishment of debt - 1.4 0.4 0.3 -

R&D tax credit - - - (1.4) (1.4)

Adjusted Income $ 22.9 $ 30.7 $ 46.0 $ 48.8 $ 52.1

GAAP Earnings per Diluted Common Share $ 1.61 $ 1.82 $ 2.41 $ 2.96 $ 3.12

Gain on Ripon Sale (0.14) - - - -

Pension settlement charge - - 0.13 0.01 -

Integration costs - - 0.22 0.02 0.04

Early extinguishment of debt - 0.09 0.02 0.02 -

R&D tax credit - - - (0.08) (0.08)

Adjusted Earnings per Share $1.47 $ 1.91 $ 2.78 $ 2.93 $ 3.08