EX-99.1 2 ss104486_ex9901.htm INVESTOR PRESENTATION
Exhibit 99.1

     Sale of Specialty Papers

    August 21, 2018

    NYSE: GLT

     Forward-Looking Statements and
    Use of Non-GAAP Financial Measures

    Any statements included in this presentation which pertain
    to future financial and business matters are
    "forward-looking statements" within the meaning of the safe
    harbor provisions of the United States Private Securities
    Litigation Reform Act of 1995. The Company uses words such
    as "anticipates"; "believes"; "expects"; "future"; "intends"
    and similar expressions to identify forward-looking
    statements. Any such statements are based on management's
    current expectations and are subject to numerous risks,
    uncertainties and other unpredictable or uncontrollable
    factors that could cause future results to differ materially
    from those expressed in the forward-looking statements
    Including, but not limited to: changes in industry,
    business, market, political and economic conditions in the
    U.S. and other countries in which the Company does business,
    demand for or pricing of its products, changes in tax
    legislation, governmental laws, regulations and policies,
    initiatives of regulatory authorities, technological changes
    and innovations, market growth rates, and cost reduction
    initiatives. In light of these risks, uncertainties and
    other factors, the forward-looking matters discussed in this
    presentation may not occur and readers are cautioned not to
    place undue reliance on these forward-looking statements. The
    forward looking statements speak only as of the date of
    this presentation and Glatfelter undertakes no obligation,
    and does not intend, to update these forward-looking
    statements to reflect events or circumstances
    occurring after the date of this presentation. More
    information about these factors is contained in Glatfelter's
    filings with the U.S. Securities and Exchange Commission,
    which are available at www.glatfelter.com. During the course
    of this presentation, certain non-U.S. GAAP financial
    measures will be presented. A reconciliation of these
    measures to U.S. GAAP financial measures is included in the
    appendix of this presentation.

    2

     Completed Strategic Review of Specialty
       Papers

    On August 21, signed definitive agreement to sell the
    Specialty Papers business unit to Lindsay Goldberg

    ("Purchaser")

    Sale price of $360 million on a cash free, debt free basis
    Net cash proceeds of approximately $320 million Price is
    subject to customary working capital adjustment and an
    adjustment for retiree healthcare and other liabilities of
    approximately $40 million to be assumed by Purchaser
    Purchaser will also assume approximately $250 million in
    pension liabilities relating to Specialty Papers' employees
    and receive approximately $300 million of related assets
    from Glatfelter's existing pension plan Glatfelter's
    remaining pension plan will continue to be significantly
    overfunded; no contributions expected for the foreseeable
    future Glatfelter will be required to reimburse Purchaser up
    to $7.5 million if certain assets require additional repairs
    after the closing Transaction costs are estimated at $12
    million Anticipate closing to occur during Q4 2018

    3

     Creating A More Focused Growth Platform

    Transforming Glatfelter into a leading engineered materials
    company Leadership positions in key markets with growth
    rates of 2% to 8% Hygiene, tea, single serve coffee, wall
    cover, wipes and home care products Acquisition of GP's
    European nonwovens business for $185 million expected to
    close in Q4 2018 Long-term strategy will focus investments
    and resources on accelerating growth Growth to be driven by
    strategic acquisitions and continued organic investments
    June 30, 2018 TTM - Pro-Forma Net Sales: $846 million

    Advanced Airlaid Materials $276

    Composite Fibers $571

    June 30, 2018 TTM - Pro-Forma Adj. EBITDA: $111.4* million
    *includes Other and Unallocated of ($20.8)

    [CATEGORY NAME] [VALUE]

    [CATEGORY NAME] [VALUE]

    Positions Glatfelter as a focused, global and
    growth-oriented engineered materials company

    4

     Improved Financial Position

    (in millions)
    Cash

    Total Debt

    Net Debt

    TTM Adj. EBITDA (June 30, 2018)
    Leverage

    June 30 2018
    $107.2
    $521.2
    $414.0
    $146.6
    2.8
    Sale of Specialty Papers

    $90.0
    ($218.0)
    ($308.0)(2)
    $35.2(1)
    Pro Forma June 30, 2018

    $197.2
    $303.2
    $106.0
    $111.4
    1.0
    Proceeds from sale will be primarily used to reduce debt
    Provides additional funds to complete previously announced
    acquisition of GP's European nonwovens business
    (1) Includes
    Adjusted EBITDA for Specialty Papers and $5 million of
    stranded corporate cost allocations. The Company expects to
    eliminate $22 million of the $27 million corporate costs
    currently allocated to Specialty Papers.

    (2) Net transaction proceeds subject to customary working
    capital adjustment and adjustment for retiree healthcare
    liabilities to be assumed by Purchaser and includes $12
    million of estimated transaction costs. Strong balance sheet
    with improved financial flexibility to execute growth
    strategy

    5

     Appendix

    6

     Historical Financial Trends (Pro Forma)

    Net Sales (in millions)

    $683
    2012
    $835
    2013
    $900
    2014
    $786
    2015
    $761
    2016
    $800
    2017
    $846
    TIM 6/30/2108

    Adj. EBITDA/Margin % (in millions)
    10.2%
    $69.5
    2012
    11.9%
    $99.3
    2013
    12.2%
    $109.9
    2014
    12.4%
    $97.2
    2015
    11.4%
    $87.1
    2016
    13.4%
    $107.0
    2017
    13.2%
    $111.4
    TIM 6/30/2018

    Adj. EBITDA
    Margin

    Engineered Materials businesses driving growth and margin
    expansion Note: Above figures reflect historical Pro Forma
    total company results excluding Specialty Papers and
    including $5 million of stranded corporate costs

    7

     Flexible Operating Platforms

    Strong Global Reach

    Gatineau, Quebec

    York, PA
    Fort Smith, AR
    Atlanta, GA
    Lydney, UK
    Caerphilly, UK
    Scaer, France

    Moscow, Russia

    Falkenhagen, Germany

    Dresden, Germany

    Gernsbach, Germany

    Dresden, Germany

    OberSchmitten, Germany

    Suzhou, China

    Hong Kong, China

    Lanao del Norte,

    Philippines

    Corporate Headquarters

    Composite Fibers

    Advanced Airlaid Materials

    Sales / Distribution Offices

    Glatfelter end-markets
    Pro Forma 2017 Revenue Breakdown(1)

    Europe

    North America

    ROW

    Total

    60%
    26%
    14%
    100%
    $0.5 billion
    $0.2 billion
    $0.1 billion
    $0.8 billion
    Strong global production platform in core geographies
    enhanced by key sales and distribution operations

    (1) Reflects Pro Forma total revenue of Airlaid Materials
    and Composite Fibers businesses and excluding Specialty
    Papers operations 8

     Reconciliation of Non-GAAP Measures

    Adjusted EBITDA, Excluding Pension

    In millions
    Net income
    Taxes

    Pension Expense

    Depreciation and Amortization

    Net Interest Expense

    EBITDA, exclusion Pension
    Adjustments / exclusions

    Gains on Timberland Sales and Transaction Related Costs
    Pension settlement charges
    SPBU Environmental Compliance
    Asset Impairment Charge

    Debt Redemption Costs

    Strategic Initiatives

    Acquisition and Integration Related
       Costs

    Cost optimization actions (net of asset write off)
    International Legal Entity Restructuring

    AMBU Capacity Expansion

    Fox River Environmental Matter

    Adjusted EBITDA, excluding pension
    2012
    $59.4
    19.6
    11.6
    69.5
    18.2
    178.3
    (9.2)
    -
    -
    5.1
    -
    -
    -
    $174.2
    2013
    $67.2
    2.0
    14.2
    68.2
    17.7
    $169.3
    (1.4)
    -
    -
    -
    6.5
    -
    2.8
    -
    $177.2
    2014
    $69.2
    18.1
    6.7
    70.6
    18.8
    $183.4
    (4.9)
    -
    3.3
    -
    1.1
    0.5
    -
    -
    $183.3
    2015
    $64.6
    14.0
    9.1
    63.2
    17.2
    $168.1
    (20.9)
    -
    1.2
    -
    0.2
    2.5
    -
    0.1
    10.0
    $161.1
    2016
    $21.6
    (10.7)
    5.5
    65.8
    15.6
    $97.7
    -
    7.3
    8.3
    -
    -
    -
    3.5
    -
    2.7
    40.0
    $159.6
    2017
    $7.9
    31.4
    6.6
    76.0
    17.5
    139.6
    (0.2)
    -
    3.6
    -
    -
    5.5
    -
    10.9
    -
    $159.4
    TTM 6/30/2018

    $0.3
    20.5
    7.1
    80.6
    20.1
    $128.7
    (1.8)
    -
    1.1
    -
    4.3
    -
    3.2
    -
    11.1
    -
    $146.6
    Note: The sum of individual amounts set forth above may not
    agree to the column totals due to rounding. 9

     Reconciliation of Non-GAAP Measures

    Adjusted EBITDA, Excluding Pension

    in millions
    Composite Fibers Operating Profit

    Addback: Depreciation & Amortization

    Composite Fibers EBITDA
    Advanced Airlaid Materials Operating
       Profit

    Addback: Depreciation & Amortization

    Advanced Airlaid Materials EBITDA

    Speciality Papers Operating Profit

    Addback: Depreciation & Amortization

    Specialty Papers EBITDA
    2012
    $36.1
    23.5
    $59.6
    $18.0
    8.7
    $26.7
    $67.3
    32.4
    $99.7
    2013
    $62.4
    24.8
    $87.2
    $21.4
    8.9
    $30.4
    $39.7
    33.2
    $72.9
    2014
    $68.2
    29.7
    $97.9
    $25.3
    9.1
    $34.4
    $38.6
    29.9
    $68.4
    2015
    $61.3
    26.2
    $87.6
    $21.2
    8.8
    $30.0
    $33.0
    26.0
    $58.9
    2016
    $54.2
    27.8
    $82.1
    $26.3
    9.0
    $35.3
    $41.2
    26.3
    $67.5
    2017
    $62.3
    28.3
    $90.6
    $30.1
    9.6
    $39.7
    $16.6
    30.8
    $47.3
    TTM 6/30/2018
    $61.7
    29.1
    $90.8
    $30.2
    11.3
    $41.5
    ($2.0)
    32.2
    $30.2
    Note: The sum of individual amounts set forth above may not
    agree to the column totals due to rounding. 10

     Reconciliation of Non-GAAP Measures

    Net Sales and Adjusted EBITDA, Excluding
       Pension

    In millions
    Net Sales

    Less: Specialty Papers Net Sales

    Pro Forma Net Sales

    EBITDA

    Less: Specialty Papers EBITDA

    Less: Stranded Corporate costs

    Pro Forma Adjusted EBITDA

    2012
    $1,578
    (895)
    683
    $174.2
    (99.7)
    (5.0)
    $69.5
    2013
    $1,723
    (888)
    835
    $177.2
    (72.9)
    (5.0)
    $99.3
    2014
    $1,802
    (903)
    900
    $183.3
    (68.4)
    (5.0)
    $109.9
    2015
    $1,661
    (875)
    786
    $161.1
    (58.9)
    (5.0)
    $97.2
    2016
    $1,605
    (844)
    761
    $159.6
    (67.5)
    (5.0)
    $87.1
    2017
    $1,591
    (791)
    800
    $159.4
    (47.3)
    (5.0)
    $107.0
    TTM 6/30/18

    $1,630
    (783)
    846
    $146.6
    (30.2)
    (5.0)
    $111.4
    Note: The sum of individual amounts set forth above may not
    agree to the column totals due to rounding. 11

     Reconciliation of Non-GAAP Measures

    Net Debt and Leverage

    Net debt & Leverage

    In millions
    Current Portion of Long-Term Debt

    Long-Term Debt

    Total Debt

    Less: Cash

    Net Debt

    Net Debt

    Divided by: TTM Adjusted EBITDA

    Leverage*

    December 31 2017
    $11.3
    470.1
    481.4
    (116.2)
    $365.2
    $365.2
    159.4
    2.3x
    June 30 2018
    $11.0
    510.2
    521.2
    (107.2)
    $414.0
    $414.0
    146.6
    2.8x
    June 30 2018 (Pro Forma)

    $11.0
    292.2
    303.2
    (197.2)
    $106.0
    $106.0
    111.4
    1.0x
    * - The above calculation is not intended to be used for
    purposes of calculating debt covenant compliance. 12