Neenah : Quarterly Financials Document

F I N A N C I A L HIGHLIGHTS

Continuing Operations	Year End December 31,
(Dollar in millions, except share data)	2018	2019	2020
Consolidated Statement of Operations Data

Net Sales by Business

Net Sales	$1,034.9	$938.5	$792.6
Adjusted EBIT	$84.8	$83.1	$64.4
% ROS	8.2%	8.9%	8.1%
Earnings per Diluted Common Share
Adjusted Earnings from Continuing Operations	$3.50	$3.47	$2.46
Weighted-Average Shares Outstanding (in thousands)	16,968	16,906	16,834
Consolidated Balance Sheet Data
Total Assets	$861.2	$827.8	$806.6
Total Stockholders' Equity	$390.2	$406.3	$367.6
Total Debt	$239.1	$200.8	$194.4
Cash and Cash Equivalents	$9.9	$9.0	$37.1
Debt to Adjusted EBITDA	1.9x	1.6x	1.9x
Debt to Capital	38%	33%	35%
Other Financial Data
Net Cash Flow Provided by (used for):

$1,034.9

$5.9

$445.8

$583.2

2018

Technical

Products

$938.5

$792.6

$396.9

$283.7

$541.6 $508.9

2019	2020
Fine Paper		Other
& Packaging

Operating Activities	$92.7	$97.6	$93.4
Capital Expenditures	(38.1)	(21.4)	(18.9)
Free Cash Flow	$54.6	$76.2	$74.5
Stock Price Year-End	$58.92	$70.43	$55.32
Cash Dividend	$1.64	$1.80	$1.88
GAAP Reconciliation	Year End December 31,
(Dollars in millions, except share data)	2018	2019	2020

..................................................

Adjusted EBIT

(In millions of U.S. dollars)

$84.8 $83.1

$64.4

Net Income (Loss)

Loss from Discontinued Operations

Income (Loss) from Continuing Operations Provision (Benefit) for Income Taxes Interest Expense, Net

EBIT (Operating Income (Loss))

Asset Restructuring and Impairment Costs

Other Restructuring and Non-routine Costs

COVID-19 Costs

Adjusted EBIT

Depreciation & Amortization

Amortization Equity-Based Compensation

Adjusted EBITDA

Diluted Earnings (Loss) per Share

Asset Restructuring and Impairment Costs

Other Restructuring and Non-routine Costs

COVID-19 Costs

Tax Adjustments

Adjusted Diluted Earnings per Share

$36.4	$55.4	$(15.8)
0.8	-	-
37.2	55.4	(15.8)
3.9	11.1	(2.9)
13.0	11.8	12.6
54.1	78.3	(6.1)
31.1	4.7	57.8
(0.4)	0.1	9.2
-	-	3.5
84.8	83.1	64.4
35.0	33.8	32.5
4.0	5.6	4.2
$123.8	$122.5	$101.1
$2.17	$3.26	$(0.96)
1.37	0.21	2.64
(0.05)	-	0.40
-	-	0.16
0.01	-	0.22
$3.50	$3.47	$2.46

9%

8%8%

2018 2019 2020

Adjusted EBIT % of Sales

..................................................

Adjusted Earnings

Per Share

$3.50 $3.47

$2.46

2018 2019 2020

TECHNICAL PRODUCTS

Neenah is a leading producer of Technical Products, using various substrates to produce specialized materials that employ saturation, coating and other function-enhancing processes to deliver specified performance to customers.

Our products include filtration, digital image transfer, tape, dye sublimation papers, abrasive backings, labels and other specialized products. Specific end uses include transportation and water filtration, industrial

applications, medical packaging, signage and many others.

The Technical Products group serves over 1,000 customers worldwide through manufacturing facilities in the U.S., Germany, the Netherlands, and the U.K., supported by R&D efforts focused on developing new products that will deliver the performance our customers require and drive our growth.

OUR PRODUCTS DELIVER HIGH-PERFORMANCE SOLUTIONS:

• providing essential filtration capabilities for transportation, water and other uses
• enabling superior performance in products for industrial applications, such as tapes, abrasives and digital image transfer
• meeting specialized needs for strength, durability resistance to water and contamination in products as diverse as medical packaging and labels

FILTRATION

High-performance filtration media for transportation, industrial, water and other markets

PERFORMANCE MATERIALS

Saturated and coated products for a variety of end markets, including digital transfers, backings for specialty abrasives and tapes, labels, durable printing and medical applications

FINE PAPER & PACKAGING

Neenah is the market leader in North America in the creation and manufacturing of premium paper, packaging and sustainable solutions. The Neenah Fine Paper and Packaging portfolio includes recognizable and distinguished brands like CLASSIC ,

ENVIRONMENT , ROYAL SUNDANCE , IMAGEMAX , ASTROBRIGHTS and Southworth . With U.S. manufacturing facilities specializing in color, texture and specialty features, there is an endless combination of paper, packaging, and consumer products like planners, journals and teacher tools available.

Neenah Premium Packaging provides unique, sustainable and custom solutions for many of the world's leading brands in beauty and wellness; wine, spirits and craft beer; and retail. Our offering includes materials for box wrap, gift cards, hangtags, labels, folding board, in-store signs and wallcovering. We provide captivating colors and textures, customized for brands or ready-made, as well as high-performance products and world class customer service.

OUR PRODUCTS ARE IN DEMAND WHEREVER IMAGE & DESIGN

MATTERS:

• high-endmarketing and advertising collateral and business identity systems
• upscale packaging solutions for high value items in small packages, focused on beauty and wellness, alcohol; consumer electronics and retail markets
• brightly colored and fine papers for home, school or business; beautifully designed planners and journals
• sustainable solutions that offer alternatives to plastic

GRAPHIC IMAGING

Unique colors, textures and finishes for identity systems, invitations, crafting, advertising and marketing collateral, and envelopes

PREMIUM PACKAGING

Image-enhancing colors and textures and sustainable solutions for premium folding board, box wrap, bags, hang tags, labels, signs and wallcovering for beauty and wellness, wine, spirits, craft beers, consumer electronics and retail

Neenah, Inc. 2020 Annual Report