EX-99.1 2 swminvestorpresentation2.htm EXHIBIT 99.1 - SWM FEB 2018 INVESTOR PRESENTATION
© 2018 Schweitzer-Mauduit International, Inc. Confidential SWM INVESTOR PRESENTATION February 2018

© 2018 Schweitzer-Mauduit International, Inc. Confidential 2 Forward Looking Statements, Non- GAAP Disclosure, & Definitions This presentation may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws that are subject to the safe harbor created by such laws and other legal protections. Caution should be taken not to place undue reliance on any such forward-looking statements because actual results may differ materially from the results suggested by these statements. These forward-looking statements are made only as of the date of this presentation. We undertake no obligation, except as may be required by law, to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience and present expectations or projections. These risks and uncertainties include, but are not limited to, those described in Part I, “Item 1A. Risk Factors” and elsewhere in our Annual Report on Form 10-K for the period ended December 31, 2016 and those described from time to time in our periodic and other reports filed with the Securities and Exchange Commission Certain financial measures and comments contained in this presentation are “non- GAAP” financial measures, specifically measures which exclude one or more of the following: restructuring and impairment expenses, depreciation and amortization, interest expense, tax provision (benefit), capital spending, capitalized software expenditures, purchase accounting adjustments, and tax valuation adjustments. We believe that investors’ understanding is enhanced by disclosing these non-GAAP financial measures as a reasonable basis for comparison of our ongoing results of operations. All non-GAAP (Adjusted) figures are reconciled to closest GAAP measure in the appendix. All financial metrics are presented on a continuing operations basis unless noted otherwise; all per share metrics are on a diluted basis The following terms/abbreviations are used throughout the presentation and are defined as follows: EP - Engineered Papers segment, AMS - Advanced Materials & Structures segment, OCF – operating cash flow, FCF - free cash flow, OP - operating profit, EBITDA - earnings before interest taxes depreciation and amortization, LIP - low ignition propensity, RTL - reconstituted tobacco leaf, W&B - wrapper and binder, RO - reverse osmosis, TPU - thermoplastic polyurethane

© 2018 Schweitzer-Mauduit International, Inc. Confidential 3 Overview Engineered Papers (EP) Advanced Materials & Structures (AMS) Financial Overview, Outlook

© 2018 Schweitzer-Mauduit International, Inc. Confidential 4 A Specialty Materials Company Delivering high performance critical components for demanding applications GROWING ADVANCED MATERIALS & STRUCTURES SEGMENT • GDP+ organic sales growth in diversified end-markets • Margin expansion from synergies and integration • Platform for future acquisitions MATURE HIGH MARGIN ENGINEERED PAPERS SEGMENT • Tobacco industry concentration • Attractive margins and cash flow, focus on costs and market share STRONG CASH FLOW & ATTRACTIVE DIVIDEND • $131 million OCF, $90 million of FCF • Track record for dividend growth • Balanced capital allocation: M&A, internal investments, and dividends 2017 Financial Highlights Sales: $982 million AMS 44% EP 56% GAAP OP: $125 million 12.7% margin (1) Adjusted measures are non-GAAP and are reconciled to GAAP measures in the appendix of this presentation Increased dividend/share to $1.72 Adjusted OP (1): $157 million 16.0% margin Two segments with common underlying theme…technical expertise, customer collaboration, and operational excellence driving value

© 2018 Schweitzer-Mauduit International, Inc. Confidential 5 SWM legacy attributes and strengths are foundations of AMS platform, but now deployed in multiple growth markets Strategic Transformation Creating A Growth Platform Synergistic acquisitions created a diversified and scaled growth platform $127 $180 $281 $433 13.3% 13.3% 15.2% 17.5% 10% 12% 14% 16% 18% 20% $0 $100 $200 $300 $400 $500 2014 2015 2016 2017 Sales ($mm) Adj. Operating MarginCustomized Value-Add Solutions Customer Collaboration Operational Excellence Technical Expertise Niche Application Leadership Global Assets Critical Components Target Strategic Rationale DelStar 4Q:13 • Filtration, medical, industrial markets • Leader in water filtration application • U.S. centric, international opportunity • Margin expansion through OE • Established resin extrusion technology 2 Bolt-ons 4Q:14 • Bolstered medical and filtration Argotec 4Q:15 • Transportation, medical, industrial markets • Leader in surface protection specialty films • Added new resin extrusion technologies • U.S. centric, international opportunity Conwed 1Q:17 • Infrastructure/construction, industrial, filtration markets • $10 million synergy plan - site closure, SG&A, resin purchasing • Leader in erosion/sediment control applications • U.S. centric, international opportunity AMS Segment Financials (1) Adjusted measures are non-GAAP and are reconciled to GAAP measures in the appendix of this presentation (1)

© 2018 Schweitzer-Mauduit International, Inc. Confidential 6 Investment Highlights Transforming Enterprise With An Attractive Dividend An under-followed transformation to a diversified specialty materials growth business with strong free cash flow and attractive dividend Under-Followed Strategic Transformation • Cigarette paper  diversified specialty materials Total non-tobacco related sales increased from under 10% in 2013 to over 50% • Repositioned for growth in 2018 and beyond • Opportunity for increased Street awareness Balanced Capital Allocation Leadership In Valued-Add Technologies, Operational Excellence Balance Sheet & Cash Flow Strength • Unique technical capabilities support profitability, customer relationships • AMS in high-growth areas, typically leading shares • Robust Operational Excellence program to drive efficiencies • Net debt / EBITDA 3x at year-end 2017 • Absent acquisitions, continued debt reduction • 2017 Free cash flow of $90 million • Continued focus on growing AMS through acquisitions • Steadily increasing dividend, raised to $1.72 rate in 2017 • Ample FCF to fund organic growth investments

© 2018 Schweitzer-Mauduit International, Inc. Confidential 7 Overview Engineered Papers (EP) Advanced Materials & Structures (AMS) Financial Overview, Outlook

© 2018 Schweitzer-Mauduit International, Inc. Confidential 8 AMS: Scaled & Diverse Growth Platform Providing customers unique engineered materials with critical performance features that add value far exceeding their cost. Sustaining strong competitive positions in high growth specialty applications GDP+ sales growth prospects and margin expansion opportunities Infrastructure & Construction Transportation 5% - 7% growth* 3% - 4% growth* 5% - 7% growth* GDP growth* * long-term expected growth of end-market/application GDP growth* Medical Industrial Filtration 2017 AMS Financial Highlights(1) - Conwed acquisition: accretive, synergistic - Sales: $433 million, up 54% - Organic Sales Growth: 4% - Adjusted OP: $76 million - Adjusted OP margin: 17.5%, up 230 basis points 2017 acquisition increased scale  synergy and growth opportunities 2017 Sales by End-Market (1) Adjusted measures are non-GAAP and are reconciled to GAAP measures in the appendix of this presentation - Leading competitive positions in many growing niche applications and expanding end-markets - Strong technical expertise in resin extrusion for specialty nets and films - Collaborative customer relationships, co-development, customization - Global operations to match blue chip customers’ global needs - Focal area for internal growth investments and potential M&A

© 2018 Schweitzer-Mauduit International, Inc. Confidential 9 Key Technologies Precision Engineered To Meet Customer Demands Designed to spec…thickness, clarity, durability, UV resistance, flow-through, water resistance, strength, breathability, puncture resistance, heat tolerance • Typical resins: polypropylene, polyethylene • Spacer in RO filtration devices • Pleat support in filtration cartridges • Blankets and socks for erosion/sediment control • Protective pipeline casings for oil & gas • Food packaging • TPU specialty resins deliver unique performance attributes • Surface protection and glass lamination • Finger bandages and woundcare • Specialty textiles/apparel • Architectural glass Film Netting

© 2018 Schweitzer-Mauduit International, Inc. Confidential 10 Filtration Increasing Demand For Cleaner, Purer… Fuel, hydraulic liquids, solvents, and air require high performance filtration across various markets; long-term industrial filtration growth ≈ 6%* • Filters for heavy equipment in oil/gas/mining industries • Semiconductor manufacturing, auto/aerospace OEMs • Emission regulations, growing environmental concerns, and demand for higher-quality products to reduce impurities and improve efficiency * Sources: Research and Markets, Markets and Markets Filtration – Process 5% – 7% expected long-term filtration growth; recurring revenue model SWM has strong share in several key water filtration products used in reverse osmosis desalination plants; long-term RO growth ≈ 7%* • Global water shortages remains a long-term trend • Asia Pacific and Middle East Industrialization expected to lead global RO demand given populations’ needs for clean water • ≈ 5 year replacement cycle • High technical requirements to deliver pressure/temperature tolerance and flow characteristics at minimum thickness Filtration – Water De-salted water Feed Spacer Netting Perforated Collection Tube

© 2018 Schweitzer-Mauduit International, Inc. Confidential 11 Infrastructure & Construction Increasing Needs For Erosion/Sediment Control Leader in erosion/sediment control applications for highway development and oil & gas industry • Erosion control “blankets” used in highway development; recent strong growth, further infrastructure spending supports outlook • Technical leadership at delivering high strength yet ultra- lightweight netting • Filled “socks” for high performance barriers used in oil & gas site development (i.e., Marcellus Shale), significant adoption potential • Opportunity in handling stormwater to mitigate environmental risks Niche flooring and other home construction products; glass films for commercial buildings • Carpet cushion support netting for residential construction • Netting for sod roll backing to drive production efficiencies; driven by residential construction and landscaping • Other netting applications: house wraps, materials protection • Films for laminated/reinforced glass in global high-rise construction, ballistic resistant, and privacy glass 3% – 4% expected long-term growth; U.S infrastructure and construction play Construction Infrastructure

© 2018 Schweitzer-Mauduit International, Inc. Confidential 12 Transportation Global Expansion Of Surface Protection Films 5% – 7% expected long-term growth in niche applications; strength in Asia Increasing paint protection adoption in Asia driving strong recent growth • Aftermarket automotive customers; penetration relatively low at ≈5% in US • New Asian distribution channels cross-selling to a rising middle class seeking to protect their personal auto investment • Technical leadership in TPU film technology with best-in-class quality to deliver ultra-clear, defect free, installer-friendly material Stable growth in security glass for military applications; emerging demand for automotive glass protection films • Highly durable products for ballistic resistant glass and other high impact applications, aerospace glass • Auto cabin safety applications to reinforce glass, alter lighting • Industry leader in both TPU and EVA (ethylene vinyl acetate); films are interlayer between glass sheets • Printed films for vehicle graphics/marketing Transportation – Lamination & Graphics Transportation – Auto Paint Protection

© 2018 Schweitzer-Mauduit International, Inc. Confidential 13 • Finger bandages • Advanced woundcare • Facemasks/gowns • Pipeline protection • Wind turbine blades • Food packaging • Performance textiles • Wipes • Parts protection Industrial & Medical Innovative Solutions Using Core AMS Technologies Core film and netting capabilities applied in various niche applications to meet unique performance requirements; GDP growth

© 2018 Schweitzer-Mauduit International, Inc. Confidential 14 Overview Engineered Papers (EP) Advanced Materials & Structures (AMS) Financial Overview, Outlook

© 2018 Schweitzer-Mauduit International, Inc. Confidential 15 - Patented LIP paper a key profit driver; fire safety product - Reconstituted tobacco (“Recon”) another key profit driver - Influenced by US/EU (15%* of global demand) smoking attrition, historically ≈ 3%* - Opportunity to further ramp up HnB sales and expand non-tobacco papers - Cigarette papers highly engineered to spec…air flow, burn rate, taste - Paper and Recon JVs in China (44%* of global demand) JVs not included in EP segment EP: Mature High Margin Cash Generator Cost reductions and new products could help offset tobacco headwinds Stabilizing EP segment profits supports improving outlook 2017 EP Financial Highlights(1) - Sales: $549 million, down 2% - Volume down 3% - Price/Mix neutral - Adjusted OP: $121 million - Adjusted OP margin: 22.1% - Initial sales ramp-up of Heat-not- Burn Maximizing cash flow through manufacturing efficiencies and cost reductions, sales mix management, and selective growth investments in innovative new products * Source: Company filings, Euromonitor, management estimates (1) Adjusted measures are non-GAAP and are reconciled to GAAP measures in the appendix of this presentation 2017 Sales by Product • LIP over half of all cigarette paper sales • Traditional RTL large majority of total Recon Reconstituted Tobacco ≈ 25% Non-Tobacco Papers ≈10% LIP & Other Cigarette Papers ≈ 65%

© 2018 Schweitzer-Mauduit International, Inc. Confidential 16 SWM a global LIP leader • SWM has vast majority share in North America… • …40%+ share in EU with another 40%+ under license/royalty with competitors LIP a premium product in paper portfolio • LIP price compression through product life cycle, still good margins • SWM has delivered solid long-term share performance Extensive Patent Portfolio • Royalty income from top competitor ends in 2022 when key LIP patents expire • Successful patent litigation in 2017 LIP is 100% mandated in U.S. and EU • Adoption in 2010 – 2011 • ~16% of global consumption under LIP regulation • Opportunities driven by government regulation, no imminent adoptions expected LIP “bands” restrict air flow, causing self- extinguishment if not actively smoked…fire safety feature Cigarette Papers Leadership In Overall Category, Key LIP Technology SWM has strong share and good margins in LIP specialty product line

© 2018 Schweitzer-Mauduit International, Inc. Confidential 17 Reconstituted Tobacco Innovation Changing The Category Heat-not-Burn (HnB) Traditional RTL and W&B • Traditional reconstituted tobacco leaf (RTL) is a highly engineered recycled material used in cigarette blends - Key benefits: harm reduction, cost, flavor control • Tolling operation with attractive margins • Many cigarette makers have internal capacity/alternative technology • Used in machine-made cigars, wrappers and binders (W&B) • HnB replaces lit cigarettes. A key technology is 100% recon- based heated sticks that release vapor; SWM supplies this material • Positive consumer reaction in Japan and testing in Europe/Asia/Americas; evolving regulatory landscape • SWM’s technical expertise and available capacity offers customers a quick and reliable path to market • Sales ramp-up began with one customer in 2017; ongoing commercial activities with several tobacco companies Paper making process applied with tobacco fibers creates a unique customer solution Tobacco companies’ substantial investments in HnB technology could drastically shift “smoking” landscape; SWM can capitalize Leveraging technical expertise to deliver new reduced risk tobacco products

© 2018 Schweitzer-Mauduit International, Inc. Confidential 18 Overview Engineered Papers (EP) Advanced Materials & Structures (AMS) Financial Overview, Outlook

© 2018 Schweitzer-Mauduit International, Inc. Confidential 19 2017 Segment Performance AMS delivered 4% organic growth with over 200 basis points of margin expansion; EP sales and margins declined as expected $ in Millions 2016 2017 Sales $281 $433 GAAP Operating Profit $9 $49 Adjusted Operating Profit $43 $76 Adjusted Operating Margin 15.2% 17.5% Engineered Papers Sales $559 $549 GAAP Operating Profit $138 $116 Adjusted Operating Profit $142 $121 Adjusted Operating Margin 25.4% 22.1% GAAP Unallocated Expenses $41 $40 Adjusted Unallocted Expenses $41 $40 Adj. % of Consolidated Sales 4.8% 4.1% Advanced Materials & Structures • AMS sales increased 54% due to Conwed acquisition and 4% organic sales growth, adjusted OP up nearly 80% • Conwed acquisition achieved financial targets and early-stage synergy milestones • Double-digit growth in surface protection films for transportation, gains in Medical and Industrial • Positive mix, Conwed’s strong profitability and synergies contributed to margin expansion • Segment optimization underway - footprint rationalization, commercial realignment, system-wide IT integration • EP sales down 2%, adjusted OP margin contracted versus a strong 2016 • Volume was down 3%, price/mix was neutral, currency was positive • Traditional RTL declined as anticipated, but was partially offset by HnB ramp- up • Step-down in LIP royalty rate impacted sales and profits, as expected, due to contract terms…rate will remain intact through 2022 • Lower volumes and price concessions also impacted OP margins 2017 Segment Highlights NOTE: Adjusted measures are non-GAAP and are reconciled to GAAP measures in the appendix of this presentation

© 2018 Schweitzer-Mauduit International, Inc. Confidential 20 2017 Consolidated Review, 2018 Outlook $ in Millions 2016 2017 Net Sales $840 $982 GAAP Operating Profit $106 $125 Adjusted Operating Profit $144 $157 Adjusted Operating Margin 17.1% 16.0% Adjusted EBITDA $183 $201 Adjusted EBITDA % 21.8% 20.4% GAAP EPS $2.70 $1.12 Adjusted EPS $3.26 $3.18 Operating Cash Flow $130 $131 Capex $31 $41 Free Cash Flow $99 $90 Dividends $49 $52 Net Debt / EBITDA 2.0x 3.0x 2017 Highlights • GAAP EPS of $1.12; Adjusted EPS of $3.18 exceeded guidance of $3.15 - 2017 non-GAAP adjustments included $1.29 for impact of U.S. tax reform, $0.21 of restructuring and impairment, and $0.56 of non-cash purchase accounting expenses • OCF increased slightly to $131 million; FCF of $90 million reflected higher capex for growth projects across the business and 2017 acquisition In 2017, AMS growth and synergistic Conwed acquisition offset by RTL decline in EP; in 2018, projected AMS organic growth and EP relative stability 2018 Outlook • Adjusted EPS guidance of $3.30 – $3.45 - Equates to GAAP EPS of $2.73 to $2.88; GAAP EPS includes estimated purchase accounting expenses of $0.53, and restructuring and impairment expenses of $0.04 • Sales, Adjusted OP, Adjusted EPS, and FCF all expected to grow • Balanced AMS organic sales growth and continued synergy execution • EP segment profitability impacted by smoking attrition; HnB and cost actions as offsets • Lower tax rate from U.S. legislation changes • AMS strategic priorities include accelerating organic sales growth, synergy execution and continued segment-wide optimization, expanded Chinese facility, and new international film line • EP strategic priorities remain to focus on efficiencies, maintain/grow share in LIP, and support customers’ HnB innovation growth plans NOTES: 1) Adjusted measures are non-GAAP and are reconciled to GAAP measures in the appendix of this presentation 2) Credit agreement makes certain adjustments to EBITDA and net debt, including an adjustment to overseas cash balances 3) Year-end 2016 total debt of $440.4 million and cash of $107.4 million; year-end 207 total debt $684.2 million and cash of $106.9 million

© 2018 Schweitzer-Mauduit International, Inc. Confidential 21 Multiple organic catalysts across the company to support profitable growth Organic Growth Drivers • Continued AMS margin expansion, path toward 20% Adj. OP margin long-term • $10 million run-rate synergy target, ramping throughout 2018 • Further potential manufacturing optimization Optimize AMS Platform / Conwed Synergies • Capitalize on leadership positions in fast-growing markets/applications…filtration, erosion/sediment control, surface protection • 4% AMS organic sales growth in 2017, positive outlook AMS GDP+ Growth End-Markets • Expanded and upgraded Chinese facility • Leveraging European footprint to add first international surface protection film line • Additional internationalization opportunities AMS Growth Projects • HnB potential to help offset impact of smoking declines • Apply recon technology outside tobacco, advance paper technology in emerging energy storage applications EP Growth Projects

© 2018 Schweitzer-Mauduit International, Inc. Confidential 22 Acquisitions could strengthen positions within existing “sandbox” or potentially expand AMS’ technologies or end-markets M&A Opportunities Growing AMS With Synergistic Acquisitions End-markets / Technologies Filtration Infrastructure & Construction Transportation Industrial Medical Add New End-Markets Nets     Films     Non-Wovens    Tubes   Add New Technology Add new end- markets, but similar assets and technologies (cost synergies) Add new technologies to deeper penetrate existing end-markets (commercial synergies) Conwed acquisition illustrates AMS sandbox framework for value creation • Paid 8x EBITDA, post synergy could be 6x • Similar netting technology to existing assets  $10 million cost synergy goal • Added infrastructure & construction end-markets • Similar filtration and industrial products, strengthened AMS’ competitive positions • Created AMS scale, enabled organizational optimization Attractive consolidation opportunities could arise in tobacco industry

© 2018 Schweitzer-Mauduit International, Inc. Confidential 23 APPENDIX Non-GAAP Reconciliations & Supplemental Data Historical Segment Financials

© 2018 Schweitzer-Mauduit International, Inc. Confidential 24 Non-GAAP Reconciliations & Supplemental Data Certain financial measures and comments contained in this presentation are “non-GAAP” financial measures, specifically measures which exclude one or more of the following: restructuring and impairment expenses, depreciation and amortization, interest expense, tax provision (benefit), capital spending, capitalized software expenditures, purchase accounting adjustments, and tax valuation and transition tax adjustments. We believe that investors’ understanding is enhanced by disclosing these non-GAAP financial measures as a reasonable basis for comparison of our ongoing results of operations. Adjusted Operating Profit from Continuing Operations: FY 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 FY 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 FY 2017 Operating Profit from Continuing Operations 103.0$ 31.6$ 37.5$ 30.8$ 6.2$ 106.1$ 26.6$ 39.5$ 38.5$ 20.1$ 124.7$ Plus: Restructuring and Impairment Expense 14.6 1.8 0.9 1.3 21.6 25.6 1.1 1.6 1.5 3.9 8.1 Plus: Purchase accounting adjustments 7.5 3.1 3.1 3.0 3.1 12.3 7.9 5.9 5.4 5.4 24.6 Adjusted Operating Profit from Continuing Operations 125.1$ 36.5$ 41.5$ 35.1$ 30.9$ 144.0$ 35.6$ 47.0$ 45.4$ 29.4$ 157.4$ Adjusted Operating Margin from Continuing Operations 16.4% 17.0% 19.1% 16.8% 15.6% 17.1% 15.3% 18.4% 17.6% 12.5% 16.0% Adjusted Net Income (Loss) from Continuing Operations: FY 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 FY 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 FY 2017 Net income from continuing operations 90.5$ 21.1$ 26.0$ 18.7$ 17.0$ 82.8$ 13.7$ 22.3$ 25.7$ (27.3)$ 34.4$ Plus: Restructuring and impairment expense 14.6 1.8 0.9 1.3 21.6 25.6 1.1 1.6 1.5 3.9 8.1 Less: Tax impact of restructuring and impairment expense (2.7) (0.4) (0.3) (0.5) (9.0) (10.2) (0.4) (0.4) (0.4) (0.2) (1.4) Plus: Purchase accounting adjustments 7.5 3.1 3.1 3.0 3.1 12.3 7.9 5.9 5.4 5.4 24.6 Less: Tax impact of purchase accounting adjustments (2.8) (1.2) (1.2) (1.0) (1.1) (4.5) (2.5) (1.9) (1.5) (1.9) (7.8) Plus: Transitional tax adjustment - - - - - - - - - 48.7 48.7 Less: Net deferred tax movements, one-time tax expense & income tax valuation allow ance - - (0.4) 1.3 (7.4) (6.5) - - - (9.1) (9.1) Adjusted Net Income from Continuing Operations 107.1$ 24.4$ 28.1$ 22.8$ 24.2$ 99.5$ 19.8$ 27.5$ 30.7$ 19.5$ 97.5$ EBIT, Adjusted EBIT and Adjusted EBITDA from Continuing Operations: FY 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 FY 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 FY 2017 Net income from Continuing Operations 90.5$ 21.1$ 26.0$ 18.7$ 17.0$ 82.8$ 13.7$ 22.3$ 25.7$ (27.3)$ 34.4$ Plus: Int t e p se 9.7 4.6 4.1 3.9 4.0 16.6 5.8 6.8 7.4 6.9 26.9 Plus: Tax provision (benefit) 21.6 8.1 9.1 10.7 (12.5) 15.4 7.1 9.9 9.5 43.1 69.6 EBIT from Continuing Operations 121.8 33.8 39.2 33.3 8.5 114.8 26.6 39.0 42.6 22.7 130.9 Plus: Restructuring and impairment expense 14.6 1.8 0.9 1.3 21.6 25.6 1.1 1.6 1.5 3.9 8.1 Adjusted EBIT from Continuing Operations 136.4 35.6 40.1 34.6 30.1 140.4 27.7 40.6 44.1 26.6 139.0 Plus: Depreciation & amortization 41.0 10.8 11.3 11.2 9.5 42.8 16.2 14.8 15.0 15.5 61.5 Adjusted EBITDA from Continuing Operations 177.4$ 46.4$ 51.4$ 45.8$ 39.6$ 183.2$ 43.9$ 55.4$ 59.1$ 42.1$ 200.5$

© 2018 Schweitzer-Mauduit International, Inc. Confidential 25 Non-GAAP Reconciliations & Supplemental Data Certain financial measures and comments contained in this presentation are “non-GAAP” financial measures, specifically measures which exclude one or more of the following: restructuring and impairment expenses, depreciation and amortization, interest expense, tax provision (benefit), capital spending, capitalized software expenditures, purchase accounting adjustments, and tax valuation and transition tax adjustments. We believe that investors’ understanding is enhanced by disclosing these non-GAAP financial measures as a reasonable basis for comparison of our ongoing results of operations. Adjusted Earnings Per Share from Continuing Operations - Diluted FY 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 FY 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 FY 2017 Diluted net income per share from continuing operations 2.96$ 0.69$ 0.85$ 0.61$ 0.55$ 2.70$ 0.45$ 0.72$ 0.84$ (0.89)$ 1.12$ Plus: Purchase accounting adjustments, per share 0.25 0.10 0.10 0.10 0.10 0.40 0.26 0.19 0.18 0.18 0.81 Less: Tax impact of purchase accounting adjustments, per share (0.09) (0.04) (0.03) (0.04) (0.04) (0.15) (0.08) (0.07) (0.04) (0.06) (0.25) Plus: Restructuring and impairment expense, per share 0.48 0.06 0.03 0.04 0.71 0.84 0.04 0.05 0.04 0.13 0.26 Less: Tax impact of restructuring and impairment expense, per share (0.09) (0.01) (0.02) (0.01) (0.29) (0.33) (0.01) (0.01) (0.02) (0.01) (0.05) Plus: Transitional tax adjustment - - - - - - - - - 1.59 1.59 Less: Net deferred tax movements, one-time tax expense & income tax valuation allow ance - - (0.01) 0.04 (0.23) (0.20) - - - (0.30) (0.30) Adjusted Earnings Per Share from Continuing Operations - Diluted 3.51$ 0.80$ 0.92$ 0.74$ 0.80$ 3.26$ 0.66$ 0.88$ 1.00$ 0.64$ 3.18$ Adjusted Diluted Earnings Per Share: FY 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 FY 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 FY 2017 Diluted net income, per share 2.94$ 0.69$ 0.85$ 0.61$ 0.55$ 2.70$ 0.45$ 0.72$ 0.84$ (0.89)$ 1.12$ Plus: Purchase accounting adjustments, per share 0.25 0.10 0.10 0.10 0.10 0.40 0.26 0.19 0.18 0.18 0.81 Less: Tax impact of purchase accounting adjustments, per share (0.09) (0.04) (0.03) (0.04) (0.04) (0.15) (0.08) (0.07) (0.04) (0.06) (0.25) Plus: Restructuring and impairment expense, per share - Continuing Operations 0.48 0.06 0.03 0.04 0.71 0.84 0.04 0.05 0.04 0.13 0.26 Less: Tax impact of restructuring and impairment expense, per share - Continuing Operations (0.09) (0.01) (0.02) (0.01) (0.29) (0.33) (0.01) (0.01) (0.02) (0.01) (0.05) Plus: Transitional tax adjustment - - - - - - - - - 1.59 1.59 Less: Net deferred tax movements, one-time tax expense & income tax valuation allow ance - - (0.01) 0.04 (0.23) (0.20) - - - (0.30) (0.30) Adju t E rn gs Per Share - Diluted 3.49$ 0.80$ 0.92$ 0.74$ 0.80$ 3.26$ 0.66$ 0.88$ 1.00$ 0.64$ 3.18$ Free Cash Flow FY 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 FY 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 FY 2017 Cash provided by Operating Activities by Continuing Operations 144.6$ 17.7$ 34.6$ 30.8$ 46.6$ 129.7$ 12.9$ 31.9$ 48.4$ 37.7$ 130.9$ Less: Capital spending (24.2) (4.5) (5.2) (7.8) (10.3) (27.8) (11.1) (8.2) (8.2) (9.7) (37.2) Less: Capitalized softw are expenditure (0.9) (0.2) (0.7) (0.8) (1.1) (2.8) (0.8) (0.8) (1.0) (0.9) (3.5) Free Cash Flow 119.5$ 13.0$ 28.7$ 22.2$ 35.2$ 99.1$ 1.0$ 22.9$ 39.2$ 27.1$ 90.2$

© 2018 Schweitzer-Mauduit International, Inc. Confidential 26 Segment Financials – Historical In October 2015, SWM consolidated its former Paper and Reconstituted Tobacco segments into one reportable segment, Engineered Papers, conforming to the current organizational structure and strategic management of the business. The Company's other reportable segment remained Advanced Materials & Structures, which is comprised of the operations of DelStar, the December 2014 acquisitions, Argotec and Conwed. The following are the segment results under the new reporting structure: Net Sales FY 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 FY 2016 FY 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 FY 2016 AMS 180.2$ 71.0$ 72.0$ 72.5$ 65.1$ 280.6$ 41.4% 75.3% 77.3% 72.6% 14.0% 55.7% EP 583.9 143.6 145.3 136.8 133.6 559.3 -12.4% -2.6% 2.8% -3.9% -12.5% -4.2% Total Consolidated 764.1$ 214.6$ 217.3$ 209.3$ 198.7$ 839.9$ -3.8% 14.1% 19.5% 13.5% -5.3% 9.9% Operating Profit (Loss) from Continuing Operations FY 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 FY 2016 FY 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 FY 2016 AMS 16.7$ 5.2$ 8.9$ 8.7$ (13.8)$ 9.0$ 9.3% 7.3% 12.4% 12.0% -21.2% 3.2% EP 121.5 35.5 35.9 32.0 34.6 138.0 20.8% 24.7% 24.7% 23.4% 25.9% 24.7% Unallocated (35.2) (9.1) (7.3) (9.9) (14.6) (40.9) Total Consolidated 103.0$ 31.6$ 37.5$ 30.8$ 6.2$ 106.1$ 13.5% 14.7% 17.3% 14.7% 3.1% 12.6% Restructuring Expenses and Purchase Accounting Adjustments FY 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 FY 2016 AMS - Restructuring & Impairment Expense -$ 0.6$ -$ -$ 20.7$ 21.3$ AMS - Purchase Accounting Adjustments 7.3 3.1 3.1 3.0 3.1 12.3 EP - Restructuring & Impairment Expense 14.4 0.9 0.9 1.3 0.9 4.0 Unallocated 0.4 0.3 - - - 0.3 Total Consolidated 22.1$ 4.9$ 4.0$ 4.3$ 24.7$ 37.9$ Adjusted Operating Profit (Loss) from Continuing Operations* FY 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 FY 2016 FY 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 FY 2016 AMS 24.0$ 8.9$ 12.0$ 11.7$ 10.0$ 42.6$ 13.3% 12.5% 16.7% 16.1% 15.4% 15.2% EP 135.9 36.4 36.8 33.3 35.5 142.0 23.3% 25.3% 25.3% 24.3% 26.6% 25.4% Unallocated (34.8) (8.8) (7.3) (9.9) (14.6) (40.6) Total Consolidated 125.1$ 36.5$ 41.5$ 35.1$ 30.9$ 144.0$ 16.4% 17.0% 19.1% 16.8% 15.6% 17.1% Percent Change Return on Net Sales * Adjusted Operating Profit (Loss) from Continuing Operations, a non-GAAP financial measure, is calculated by adding Restructuring and Impairment Expenses, and Purchase Accounting Adjustments to Operating Profit from Continuing Operations. Return on Net Sales

© 2018 Schweitzer-Mauduit International, Inc. Confidential 27 Segment Financials – Historical In October 2015, SWM consolidated its former Paper and Reconstituted Tobacco segments into one reportable segment, Engineered Papers, conforming to the current organizational structure and strategic management of the business. The Company's other reportable segment remained Advanced Materials & Structures, which is comprised of the operations of DelStar, the December 2014 acquisitions, Argotec and Conwed. The following are the segment results under the new reporting structure: Net Sales Q1 2017 Q2 2017 Q3 2017 Q4 2017 YTD 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2017 YTD 2017 AMS 100.0$ 117.8$ 116.2$ 99.2$ 433.2$ 40.8% 63.6% 60.3% 52.4% 54.4% EP 133.3 137.5 141.6 136.5 548.9 -7.2% -5.4% 3.5% 2.2% -1.9% Total Consolidated 233.3$ 255.3$ 257.8$ 235.7$ 982.1$ 8.7% 17.5% 23.2% 18.6% 16.9% Operating Profit (Loss) from Continuing Operations Q1 2017 Q2 2017 Q3 2017 Q4 2017 YTD 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2017 YTD 2017 AMS 8.9$ 16.6$ 15.4$ 7.6$ 48.5$ 8.9% 14.1% 13.3% 7.7% 11.2% EP 26.9 30.8 32.3 26.1 116.1 20.2% 22.4% 22.8% 19.1% 21.2% Unallocated (9.2) (7.9) (9.2) (13.6) (39.9) Total Consolidated 26.6$ 39.5$ 38.5$ 20.1$ 124.7$ 11.4% 15.5% 14.9% 8.5% 12.7% Restructuring Expenses and Purchase Accounting Adjustments Q1 2017 Q2 2017 Q3 2017 Q4 2017 YTD 2017 AMS - Restructuring & Impairment Expense 0.4$ 0.8$ 1.2$ 0.3$ 2.7$ AMS - Purchase Accounting Adjustments 7.9 5.9 5.4 5.4 24.6 EP - Restructuring & Impairment Expense 0.5 0.8 0.4 3.6 5.3 Unallocated 0.2 - (0.1) - 0.1 Total Consolidated 9.0$ 7.5$ 6.9$ 9.3$ 32.7$ Adjusted Operating Profit (Loss) from Continuing Operations* Q1 2017 Q2 2017 Q3 2017 Q4 2017 YTD 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2017 YTD 2017 AMS 17.2$ 23.3$ 22.0$ 13.3$ 75.8$ 17.2% 19.8% 18.9% 13.4% 17.5% EP 27.4 31.6 32.7 29.7 121.4 20.6% 23.0% 23.1% 21.8% 22.1% Unallocated (9.0) (7.9) (9.3) (13.6) (39.8) Total Consolidated 35.6$ 47.0$ 45.4$ 29.4$ 157.4$ 15.3% 18.4% 17.6% 12.5% 16.0% Percent Change Return on Net Sales Return on Net Sales * Adjusted Operating Profit (Loss) from Continuing Operations, a non-GAAP financial measure, is calculated by adding Restructuring and Impairment Expenses, and Purchase Accounting Adjustments to Operating Profit from Continuing Operations.