Doug Buth, Chairman
Mark Richards, CEO and President
Dale Parker, Chief Financial Officer
Coated
Solutions
Thermal and
Advanced
Technical
Products
Security
Products
Performance
Packaging
100% employee owned
In business since 1907, Appleton creates product
solutions for customers through coating formulations
and applications, encapsulation, security, printing
and packaging technologies
Introduction to Appleton
2
Executive Succession
Mark Richards – CEO and President
Joined Appleton April 2005
Former President Engineered Support
Structures Division of Valmont Industries
Bachelors Degree – Packaging, Michigan State
Masters Degree – Business, Northwestern
3
Appleton
4
11 Manufacturing Locations
2 Paper Mills
1 Coating Plant
1 Capsule Plant
4 Packaging Plants
3 Printing Plants
Utrecht
Turners Falls, MA
Teesside
Hull
Derby
West Carrollton, OH
Roaring Spring, PA
Wisconsin
Appleton
Merrill
Rhinelander
Portage
Milton
The Changing Revenue Profile of Appleton
2001
LTM 4/3/05
Thermal
18%
Coated Solutions
60%
Coated Solutions
81%
Thermal
21%
Security
13%
Performance
Packaging
6%
Security
1%
$955 Million
$992 Million
5
Change in Revenue 2001 - 2004
-150
+37
+103
$ Millions
+47
Carbonless
Thermal
Security
Packaging
Growth
Organic +$ 50
Acquisitions +$137
+$187
6
Revenue Growth
Q1 Q2 Q3 Q4 Q1
$ Millions $251 $234 $244 $261 $253
% Growth vs +23% +11% +12% +14% +1%
prior year quarter
2004
2005
7
The Changing EBITDA Profile of Appleton
2001(1)
LTM 4/3/05 (1)
Thermal
9%
Coated Solutions
74%
Coated Solutions
91%
Thermal
15%
Security
6%
Performance
Packaging
5%
$183 Million
$142 Million
(1) Excluding business development and restructuring charges
8
EBITDA Beginning To Stabilize
2003
2004
76
77
72
76
$ Millions
Excluding business development and restructuring charges
9
Carbonless Paper Shipments
2004 Full Year
Decline Rate: -2%
2005 YTD April
Decline Rate: -7%
2004
2003
(000 tons)
355
348
382
2002
10
Thermal Paper Shipments
2004 Full Year
Growth Rate: +16%
2005 YTD April 0%
2004
2003
(000 tons)
82
95
2002
74
11
Security Paper Shipments
(000 tons)
+26%
+16%
+52%
LTM 4/3/05
+39%
12
BemroseBooth
High value added security printer
Over $100 million revenue
850 employees
Manufacturing in England
Derby
Hull
Thornaby
13
BemroseBooth Revenue
11
110
$ Millions
108
2003
2004
LTM 4/3/05
Acquired December 2003
14
Performance Packaging – Film
American Plastics - Rhinelander, WI
Produces high barrier, multilayered films and
commercial packaging
C&H Packaging - Merrill, WI
Prints and laminates films for flexible packaging
materials
NEX – Turners Falls, MA
Produces single and multilayer polyethylene films
15
Building A Film Business Revenue
($ Millions) LTM
2003 2004 4/3/05
American Plastics/ $30 $47 $47
C&H Packaging
(Acquired 4/03)
New England Extrusion -- -- $12
(Acquired 1/05)
$30 $47 $59
16
Dale Parker
Chief Financial Officer
17
Income Statement
($ Millions) Q1 Q2 Q3 Q4 Q1
Net Sales $251 $234 $244 $261 $253
Gross Profit $68 $57 $66 $63 $61
% Margin 27% 25% 27% 24% 24%
SG&A/Other $50 $50 $48 $52 $54
Operating Income $18 $ 7 $18 $11 $ 7
Depreciation & Amortization 20 20 19 18 20
EBITDA $38 $27 $37 $29 $27
% Margin 15% 12% 15% 11% 11%
2004
2005
18
Carbonless Shipments
000’s
tons
89
93
85
19
($ millions)
Adjustment for abnormally high Q1 2004 carbonless shipments $2
Net carbonless movements (improved pricing less manufacturing operations,
raw material and utility increases) 5
Business development investments 1
Restructuring charges 3
Q1 2005 vs Q1 2004 EBITDA deviation $11
Reconciliation of change in EBITDA
for Q1 2005 vs Q1 2004
20
Total Company Debt
($ millions)
Appleton refinanced debt structure in June 2004 and retired deferred payment obligation.
11/09
3/31
6/30
9/29
12/28
2002
3/30
6/29
9/28
2003
1/03
4/04
7/04
10/03
2004
1/01
4/03
2005
2001
21
Investment in Appleton Since 11/01
Debt Reduction &nbs p; $ 60
Acquisitions 182
Capital Expenditures 114
Organic Growth &nbs p; 37
Total & nbsp; $393
22
Liquidity as of 4/03/05
($-millions)
Cash &n bsp; $ 14
Revolver Availability &nb sp; $100
Total Liquidity &nb sp; $114
23
