Exhibit 99.1
Clearwater Paper Corporation
September 2013
Forward-Looking Statements
This presentation contains, in addition to historical information, certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding tissue market dynamics and our ability to capitalize on such, future growth and market opportunities, including in the Midwestern and Eastern U.S. regions and non-grocery channels, absorption of tissue capacity increases, U.S. tissue and paperboard market demand, paperboard pricing, strategies to grow our tissue business and optimize profitability of our pulp & paperboard business, our DRIVE strategy, our estimated annual and quarterly Adjusted EBITDA run-rates, shipments from our new tissue machine and converting lines in Shelby, North Carolina, expected future savings from cost synergies relating to our Cellu Tissue acquisition, efficiency and cost savings projects and reductions to our cost structure, our future generation of discretionary free cash flow, uses of our cash, our outlook for Q3 2013 including production, shipment volumes, product pricing and mix, pulp costs, wood fiber costs and supply, chemical costs, transportation costs, energy costs, cost and timing of major maintenance and repairs and corporate expenses. Words such as “anticipate,” “expect,” “intend,” “will,” “plan,” “goals,” “objectives,” “target,” “project,” “believe,” “schedule,” “estimate,” “may,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements are based on management’s current expectations, estimates, assumptions and projections that are subject to change. Our actual results of operations may differ materially from those expressed or implied by the forward-looking statements contained in this presentation. Important factors that could cause or contribute to such differences include the risk factors described in Item 1A of Part I of our Form
10-K for the year ended December 31, 2012, as well as the following:
customer acceptance and timing of purchases of our new through-air-dried (TAD) products and capacity;
competitive pricing pressures for our products, including as a result of increased capacity as additional manufacturing facilities are operated by our competitors; difficulties with the optimization and realization of the benefits expected from our new TAD paper machine and converting lines in Shelby, North Carolina; increased dependence on wood pulp; changes in the cost and availability of wood fiber and wood pulp; changes in transportation costs and disruptions in transportation services; manufacturing or operating disruptions, including equipment malfunction and damage to our manufacturing facilities; changes in costs for and availability of packaging supplies, chemicals, energy and maintenance and repairs; changes in customer product preferences and competitors’ product offerings; changes in the U.S. and international economies and in general economic conditions in the regions and industries in which we operate; increased supply and pricing pressures resulting from increasing Asian paper production capabilities; cyclical industry conditions; reliance on a limited number of third-party suppliers for raw materials; labor disruptions our ability to generate cash; and inability to successfully implement our expansion strategies.
Forward-looking statements contained in this presentation present management’s views only as of the date of this presentation. We undertake no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise.
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Overview of Clearwater Paper
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Introduction to Clearwater Paper
We are a company formed in late 2008 with more than 60 years of operating history
Operate two business segments of similar size
– Pulp and Paperboard: 38% of June 2013 YTD net sales
– Consumer Products: 62% of June 2013 YTD net sales
Financial overview as of June 2013
– LTM Net Sales: $1.9 billion
– LTM Adjusted EBITDA1: $208 million
– 2008 to LTM Adjusted EBITDA1 CAGR: 23%
Approximately 3,960 employees
¹ See Appendix for the definition of Adjusted EBITDA as well as the reconciliation to the most comparable GAAP measure.
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Overview of Consumer Tissue Division
Clearwater Paper is one of the largest North American manufacturers of private label tissue, focused on high
value tissue products across all categories, retail channels and geographies
Key Products Overview of Facilities
Clearwater Paper
Tissue Parent Roll
Tissue Production¹: 660,000 tons
Clearwater Paper Tissue Conversion¹: 477,000 tons
Tissue Converting
2013 U.S. Tissue Industry Retail Channel Mix² 2013 Clearwater Paper Retail Channel Mix²
Dollar All Other
4% 4%
Drug Grocery
7% Club 37%
21%
Mass +
Supercenter
27%
Source: Company estimates, IRIWorldwide
¹ Represents 2012 capacity volumes including machine-glazed.
² Retail channel share by dollar amount sold. 4
Clearwater Paper is Well Positioned to Capitalize on Favorable
Tissue Market Dynamics
Stable Growth—The tissue market has grown an average of 2% annually since 1996,
consistent with population growth
Source: U.S. Tissue demand per RISI for North America only, U.S. Population per U.S. Census
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Private Label Continues to Capture Market Share in Tissue
Clearwater Paper ranks as one of the largest North American private label tissue
manufacturers
2013 U.S. Retail Tissue Industry
Product Mix
Source: IRIWorldwide, 52 Weeks Ending July 21, 2013
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Significant Opportunity Still Exists for Clearwater Paper To Expand
Across the U.S. Private Label Market
2013 Multi-Outlet 1
West Midwest East Total
Equalized Case Volumes (mm) 86 181 233 500
% of U.S. Population 23% 34% 43% 100%
% Private Label (PL) 32% 25% 25% 26%
% Clearwater Paper of PL 70% 40% 24% 35%
Clearwater Paper led the development of private label tissue in the Western U.S.
Clearwater Paper is focused on growing the private label category and market share in the
Eastern U.S.
If Clearwater Paper could replicate its West model across the U.S.:
– 22% share in Midwest would be an incremental 25 million cases
– 22% share in East would be an incremental 37 million cases
Source: IRIWorldwide, 52 Weeks Ending July 21, 2013
1 Multi-Outlet includes Grocery, Drug, Mass, Dollar and Military.
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North American Market Demand Expected to Absorb Projected
Capacity Increases
(in thousands of short tons)
2012 Demand to Capacity 2014E Demand to Capacity
Ratio of 95% Ratio of 95%
Longer term healthy market dynamics remain intact
Short term market pressures as the new TAD capacity comes on line
and is yet to be fully absorbed by demand
Source: RISI and company estimates
Notes: Projected capacity changes represents both virgin and recycled tissue capacity changes.
Please see Appendix for breakdown of specific projects reflected in the capacity changes. 8
Overview of Pulp and Paperboard Division
Clearwater Paper ranks as one of the top five largest paperboard manufacturers in North America
Key Products Overview of Facilities
Clearwater Paper Pulp
Pulp Production¹: 856,000 tons
Clearwater Paper SBS Paperboard Production¹: 793,000 tons
2012 North American Bleached 2012 North American Bleached Paperboard
Paperboard Production by Product Type² Production by Market Share
Source: Company estimates, RISI
¹ Represents 2012 capacity volumes.
² Represents ~6.0 million tons. 9
Paperboard Demand Remains Stable and Pricing Outlook is
Favorable in the U.S.
Bleached paperboard prices are expected to remain at attractive levels through 2016
Source: RISI, Projected GDP growth estimates represent Bloomberg median estimates as of Feb 2013
¹ Based on tons produced. Projections based on North American Packaging papers and board demand estimates per RISI.
² Average price per short ton of 16 pt. SBS folding carton C1S. Price estimates per RISI. 10
Clearwater Paper’s Strategic Plan
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Our Macro Strategy to Create Shareholder Value
• Lead private label quality
Grow our Tissue • Expand geographically
Business
• Expand retail channel penetration
Optimize Profitability • Improve sales mix
of Paperboard • Reduce costs
Business • Continue to improve quality
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Successful Execution on Its Previously Stated Goals
Stated Goal Timeframe Current Status
Shelby TAD machine was on budget with startup in Q4 2012 with
Complete New Paper Machine and expected full capacity run rate by end of 2013
Corresponding Converting Lines at 2010 – 2013 Operating 4 new converting lines at Shelby
Shelby, NC Facilities ? New napkin line startup in Q3 2013 and the startup of a relocated
line from Thomaston expected by end of 2013
Increased anticipated Cellu Tissue run-rate synergies from $15-
Successfully Integrate Cellu Tissue 2010 – 2013 20 million per annum to $35-40 million per annum by end of 2012
Acquisition
Achieved $40 million run rate in synergies in 2012
Cellu Tissue acquisition and Shelby, NC facilities give Clearwater
Paper a national footprint with expansion in the Eastern U.S.
Expand the Geographic and Channel 2010 – ? Increase penetration in grocery, drug, club and mass retail
Reach of Clearwater Paper Ongoing markets in the Eastern U.S.
Expansion into away-from-home, parent roll sales, and machine
glazed sales product types
Enhanced access to fiber supply with Lewiston chipping facility
acquisition
Sold Lewiston sawmill
Optimize the Paperboard Business Ongoing
Installed chip screening at Lewiston pulp mill
Idaho major maintenance cycle improvement from 12 to 18
months
Conservative capital structure with target leverage through the
cycle of 2.5x and ample liquidity
Maintain a Prudent Capital Structure Ongoing
Clearwater Paper continues to de-lever through EBITDA
expansion
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Continued momentum into 2013
Refinanced debt to secure long-term capital flexibility
Initiated a $100 million stock buyback
Commenced chipping facility operations
Announced asset rationalization with the phased closure of Thomaston converting facility
Launched a new mission, vision and strategy companywide called DRIVE
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Our 3 Year Strategy
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Clearwater Paper’s Value Proposition
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Key Initiatives Expected to Significantly Improve Earnings Power
($ in millions) Expected Free Cash
Flow (FCF)
Realization of Full Cost
Shelby Cellu Tissue Savings Adj. EBITDA1 $300
Ramp-up Synergies Programs Less:
Cash Taxes ($55)
Expected benefit Incremental Expected benefit Cash Interest ($45)
from full ramp-up savings from lean
of TAD paper expected from manufacturing and CAPEX ($75)
machine, 5 Cellu Tissue cost optimization Free Cash Flow $125
converting lines acquisition initiatives FCF per Share $5.60
and Las Vegas Weighted Avg. Shares
paper machine Outstanding—22.3 million
upgrade
Realized To Date
Sale of Wood Products $ 4
Realized To Date Idaho chipping facility 4
Energy projects 5
$40+ Chip screening 2
Expected EBITDA Ramp Paper machine dry stack 2
Per Quarter $17
Q2-2013 $ 2 Anticipated
Q3-2013 3-4 • Thomaston closure $12
Q4-2013 7 • Extend maintenance cadence 5
Q1-2014 9 • Coating operating change 5
• Arkansas recovery upgrade 2
Expected Full Ramp •Other opportunities 4+
($12-$15 in Q3-2014) EXPECTED COST SAVINGS $45+
Note: Assumes no change in prices or input costs from 2011
¹ See Appendix for the definition of Adjusted EBITDA as well as the reconciliation to
the most comparable GAAP measure. 17
Roadmap from Q2-2013 to Pro Forma $75 Million
Quarterly Run Rate1
($ in millions)
Price & Unit Input Costs
Q2-2013 vs. 2011
% Change4
Paperboard 2.1%
Pricing
External Pulp 6.0%
•Thomaston closure costs
$1-$ 3
Current Q1’14 •Paper machine Wood/Fiber 5.7%
Expectations project $0-$ 1
•Coating operating
change $0-$ 1 Natural Gas 2.1%
•Arkansas recovery
upgrade $.5
$7MM $4MM $3MM •Extend maintenance $ 70-$75MM Chemical 5.8%
cadence $1 Costs
Diesel Fuel 8.5%
1 Assumes no change in prices or input costs from Q2’13. This information is based upon management’s current expectations and estimates, which are in
part based on market and industry data. Many factors are outside the control of management, including particularly input costs for commodity products, and
actual results may differ materially from the information set forth above. See “Forward-Looking Statements” on page 1.
2 Non-GAAP measure – See definition and reconciliation to GAAP.
3 In July 2013, management estimated the achievement of this run rate by Q1’14.
4 In September 2012 we announced a $300 million adjusted EBITDA target run rate for 2014, which was based on 2011 prices and input costs. This table shows percentage
changes in certain price and input costs between 2011 and Q2’13.
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Clearwater Paper Is A Leader Amongst Its Peers in Value Creation
360%+ Total Return Since Spin-off
500%
468.2%
450%
400%
350% 359.4%
300%
Return 250%
Total 200%
150% 155.4%
100% 108.5%
Indexed 84.3%
50%
0%
(50)%
(100)%
Dec-2008 Sep-2009 Jul-2010 Apr-2011 Feb-2012 Nov-2012 Aug-2013
Spin Date
Clearwater Paper Small Cap Tissue¹ Paperboard² Large Cap Consumer³ S&P 500
Source: Bloomberg as of Aug 30,2013
1 Small cap tissue peers include Cascades, Orchids, and Wausau.
² Paperboard peers include International Paper, Graphic Packaging, Kapstone,
MeadWestvaco, RockTenn, Packaging Corp, and Sonoco.
³ Large cap consumer product peers include Kimberly-Clark and Procter & Gamble. 19
Note. Total Return includes dividend reinvestment and stock price performance.
Strong Upward Trend in Multiple Over Time
14x
12x
11.1 x
ultiple 10x
4 M 8.5 x
8x 7.8 x
EBITDA 7.6 x
ard 6x
Forw
Year 4x
-
1
2x
0x
Dec-2008 Aug-2009 Apr-2010 Dec-2010 Aug-2011 Apr-2012 Dec-2012 Aug-2013
Spin Date
Clearwater Paper Small Cap Tissue¹ Paperboard² Large Cap Consumer Products³
Source: Bloomberg, Capital IQ, market data as of Aug 30, 2013
1 Small cap tissue peers include Cascades, Orchids, and Wausau.
² Paperboard peers include International Paper, Graphic Packaging, Kapstone,
MeadWestvaco, RockTenn, Packaging Corp and Sonoco. 20
³ Large cap consumer product peers include Kimberly-Clark and Procter & Gamble.
4 Non-GAAP measure – See definition and reconciliation to GAAP.
Clearwater Paper’s Outlook
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Third Quarter 2013 Outlook (Compared to Q2’13)1
Consumer Products Pulp and Paperboard Corporate
Production Paper and converting Down due to Idaho
volumes production up as transition maintenance outage
progresses (1-3% higher) (1-2% lower)
Shipment Flat retail cases2 with Higher due to seasonality
volumes higher parent roll tons and stronger backlogs
(tons 1-3% higher) (2-3% higher)
Flat to down with higher Higher due to previously
Price/Mix parent roll shipments3 announced price increases
(0-2% lower) (2-3% higher)
Moderately higher external
Pulp/Wood/Fiber pulp costs and lower
costs internal pulp usage due to Stable
Idaho maintenance outage
($2-3M higher)
Chemical costs Stable Stable
Transportation
costs Stable Stable
Energy costs Stable Stable
Idaho maintenance outage
Maintenance & Stable $16.5 million ($13M with 10
Repairs days paper machine downtime and
$3.5M of other outage costs)
SG&A Up Slightly Up Slightly Q3 and Q4 run rate of
$11M-$12M
1 This information is based upon management’s current expectations and estimates, which are in part based on market and industry data. Many factors are outside the control of management,
including particularly input costs for commodity products, and actual results may differ materially from the information set forth above. See “Forward-Looking Statements” on page 1.
2 The outlook provided by management in July 2013 was for retail cases to be up 1-3%.
3 The outlook provided by management in July 2013 was for price/mix to be 1-3% higher.
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Appendix
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Reconciliation of GAAP to Non-GAAP:
Clearwater Paper EBITDA and Adjusted EBITDA
($ in millions)
2008 2009 2010 2011 2012 LTM
Net earnings $9.7 $182.5 $73.8 $39.7 $64.1 $49.7
Income tax provision 5.6 93.2 2.4 31.2 47.5 13.7
Interest expense2 13.1 21.7 22.6 44.8 33.8 54.0
Earnings before interest and income taxes 28.5 297.4 98.8 115.7 145.4 117.4
Depreciation and amortization 47.0 47.4 47.7 76.9 79.3 85.4
EBITDA1 $75.4 $344.8 $146.5 $192.7 $224.7 $202.8
Alternative fuel mixture tax credit — (170.6) ——— -
Cellu Tissue acquisition related expenses —— 20.3 —— -
Lewiston, Idaho sawmill sale related adjustments ——— 2.9 — -
Loss on sale of foam assets 1.0
Expenses associated with Metso litigation 2.0 0.1
Costs associated with announced Thomaston facility 1.2
closure
Directors equity-based compensation — 2.6 3.7 1.5 1.4 3.8
Adjusted EBITDA¹ $75.4 $176.8 $170.5 $197.1 $229.1 $207.9
1 See page 26 of this Appendix for definitions of EBITDA and Adjusted EBITDA.
2 Interest expense, net for LTM and 2009 includes debt retirement costs of $6.2 and $17.1 million respectively.
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Reconciliation of GAAP to Non-GAAP:
Clearwater Paper Pro Forma Adjusted EBITDA
($ in millions)
Cross
Cellu Cycle
Tissue Cost Adjusted
Shelby Synergies Optimization EBITDA
Operating income $ 37.0 $ 40.0 $ 16.0 $ 210.0
Depreciation and amortization 13.0 — 3.0 90.0
EBITDA1 $ 50.0 $ 40.0 $ 19.0 $ 300.0
Adjusted EBITDA¹ $ 50.0 $ 40.0 $19.0 $ 300.0
1 See page 26 of this Appendix for definitions of EBITDA and Adjusted EBITDA.
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Definitions of Non-GAAP Measures
Clearwater Paper Definitions of Non-GAAP Measures
EBITDA is a non-GAAP measure that Clearwater Paper management uses to evaluate the cash generating capacity of Clearwater Paper. The most directly comparable GAAP measure is net earnings. EBITDA, as defined by Clearwater Paper management, is net earnings adjusted for net interest expense, income taxes, and depreciation and amortization. It should not be considered as an alternative to net earnings computed under GAAP.
Adjusted EBITDA is a non-GAAP measure that Clearwater Paper management defines as EBITDA adjusted for items that we do not believe are indicative of our core operating performance, including acquisition and disposition related expenses, alternative fuel mixture tax credits, sale of foam assets, expenses associated with the Metso litigation and costs associated with directors compensation. The most directly comparable GAAP measure is net earnings. It should not be considered as an alternative to net earnings computed under GAAP.
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North American Tissue Projected Capacity Change
Capacity Changes in the North American Tissue Industry
Capacity
Company Mill/Location Conv/TAD Change Date Channel/Business/Products
Announced New Capacity
K.T.G. (USA)/Kruger Memphis, Tennessee TAD 70,000 2013:Q1 Retail/Brand/P.L.
Florelle Tissue Brownville, New York Conv 15,000 2013:Q3* New PM from Elite Tissue Machine, China
First Quality Tissue Anderson, South Carolina ATMOS 75,000 2014:Q1* Retail/P.L./BRT
Confidential Confidential Conv 80,000 2014* Metso Advantage DCT 200TS
Confidential Confidential Conv 35,000 2014* Metso Advantage DCT 100+
Confidential Confidential Conv 70,000 2014* Metso Advantage DCT
Announced Shutdowns
No announced shutdowns
Announced Rebuilds
Conv Rebuild of a fine paper PM to tissue by
Tak Investments Franklin, Virginia 70,000 2013:Q1
Recycled PMT Italia and other suppliers
Net Capacity Change 415,000
Potential Projects
Procter & Gamble Box Elder, Utah (?) TAD 80,000 ??ON HOLD Retail/Brand/Bounty
Snelling, Barnwell County, South New mill for parent rolls only; investment
South Georgia Tissue 32,000 2014:Q2* incentives approved but not yet fully
Carolina committed
* = estimated
Source: RISI and Other Industry
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