 0 Clearwater Paper Corporation Goldman Sachs 2011 Montreal Paper Conference March 16, 2011 Exhibit 99.1 |
 1 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 the benefits of, and synergies from, our Cellu Tissue acquisition, internal and external pulp purchases and sales, pulp requirements, customer purchases of private label tissue, production capacity of operating divisions, completion of additional converting and paper making capacity, the cost and timing to complete new facilities, future growth opportunities, sales volumes, input costs, and our financial condition and results of operations. Words such as “anticipate,” “expect,” “intend,” “will,” “plan,” “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, 2010, as well as the following: • an inability to successfully implement our expansion and operating strategies; • difficulties with the integration process or the realization of the benefits expected from the acquisition of Cellu Tissue; • difficulties with the completion of our new tissue making and converting facilities; • the Cellu Tissue acquisition may expose our operations to unidentified liabilities; • changes in the cost and availability of wood fiber used in the production of our products; • changes in freight costs and disruptions in transportation services; • changes in raw material costs and energy availability and costs; • changes in customer product preferences and competitors’ product offerings; • changes in the United States and international economies and in general economic conditions in the regions and industries in which we operate; • cyclical industry conditions; • the loss of business from any of our three largest Consumer Products segment customers or a large Pulp and Paperboard segment customer; • competitive pricing pressures for our products; • reliance on a limited number of third party suppliers for raw materials; • our qualification to retain, or ability to utilize, tax credits associated with alternative fuels or cellulosic biofuels; • labor disruptions; • unforeseen environmental liabilities or expenditures; • unanticipated manufacturing or operating disruptions, including equipment malfunction and damage to our manufacturing facilitates caused by fire or weather- related events and IT system failures; • changes in the relationship between supply and demand in the forest products industry, including the amount of available manufacturing capacity and wood fiber used in manufacturing our products; • changes in expenses and required contributions associated with our pension plans; • an inability to fund our debt obligations; • restrictions on our business from debt covenants and terms; • changes in laws, regulations or industry standards affecting our business; and • changes in exchange rates between the U.S. dollar and other currencies. 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. |
 2 Company Overview Clearwater Paper is a leader in quality private label consumer tissue and exceptional bleached paperboard – focused on helping our customers build their brands. |
 3 Clearwater Paper Overview Leading manufacturer of private-label consumer tissue and fully-bleached SBS paperboard, with approximately $1.4 billion in net sales and $166.8 million of Adjusted EBITDA¹ for the twelve months ended December 31, 2010 Segment Net Sales 2,3 Segment Adjusted EBITDA¹ Segment Adjusted EBITDA Margin % 1,4 % of LTM Net Sales² ($ in millions) Pulp & Paperboard (PPD) $802.9 $110.6 13.8% $570.1 $ 87.2 15.3% Consumer Products (CPD) 1 See Appendix A: “Financial Detail” for the definitions of Adjusted EBITDA and Segment Adjusted EBITDA as well as the reconciliation to the most comparable GAAP measures. 2 Net sales excludes intersegment net sales and transfers. 3 Amounts for Consumer Products segment include four days of Cellu Tissue results. 4 Segment Adjusted EBITDA margin percentage calculated by dividing Segment Adjusted EBITDA by Segment Net Sales. |
 $445 $452 $504 $554 $570 $672 $731 $751 $696 $803 2006 2007 2008 2009 2010 $41 $34 $53 $138 $87 $70 $80 $35 $51 $111 9.0% 8.8% 6.0% 13.9% 12.2% 2006 2007 2008 2009 2010 4 Financial Track Record ($ in millions) Adjusted EBITDA 2,3 Net Sales¹ $1,117 $1,183 $1,255 $1,250 $101 $104 $75 5 Yr Average: $1,236 $174 CPD PPD Adj. EBITDA Margin % 4 5 Yr Average: $124 $1,373 $167 1 Excludes intersegment net sales and transfers. Net sales for 2010 for CPD includes four days of Cellu Tissue results. 2 See Appendix A: “Financial Detail” for the definition of Adjusted EBITDA and Segment Adjusted EBITDA as well as the reconciliation to the most comparable GAAP measures. 3 Clearwater Paper’s total Adjusted EBITDA includes corporate and eliminations. 4 Adjusted EBITDA margin percentage calculated by dividing Adjusted EBITDA by Net Sales. |
 5 Total Cost¹: % of Total Cost of Sales 2009 2010 Historical Cost Drivers - Wood Fiber 2008 $325.4 M 28% $269.7 M 26% $314.3 M 27% 1 Excludes intersegment amounts • Wood fiber includes pulp, wood chips, sawdust and saw logs. • Historically, we have been a net buyer of approximately 85,000 tons of pulp annually. Going forward, we expect to be a net buyer of approximately 400,000 tons of pulp annually. • Historically, we produced approximately 804,000 tons of pulp representing about 92% of our total annual pulp needs. We expect to continue to produce the same amount of pulp going forward, which will represent about 68% of our total annual pulp needs. • Generally we use a mix of pulp including northern softwood, southern softwood, northern hardwood, eucalyptus and recycled. Wood Fiber |
 6 Total Cost: % of Total Cost of Sales 2009 2010 Other Key Historical Cost Drivers Other key cost drivers are chemicals, energy, transportation and maintenance Energy Transportation 2008 Total Cost: % of Total Cost of Sales Total Cost¹: % of Total Cost of Sales $143.0 M 12% $114.7 10% $97.3 9% $92.0 8% $123.2 10% $100.3 9% $117.3 10% $ 61.9 5% $70.0 7% $82.4 7% $123.2 M 12% $132.3 M 11% Maintenance & Repair Total Cost: % of Total Cost of Sales Chemicals 1 Excludes related labor costs. |
 7 Strong Financial Performance ($ in Millions) Clearwater Paper (Twelve Months Ended December 31, 2010) Cellu Tissue (Period from January 1, 2010 through December 27, 2010) Combined Net Sales 2 $1,373.0 $529.6 $1,902.6 Adjusted EBITDA 3 $166.8 $42.1 $208.9 Adjusted EBITDA Margin % 4 12.2% 7.9% 11.0% Capacity ('000 TDY ) Tissue Parent Roll 227 337 564 Tissue Converted 221 241 462 1 Cellu Tissue was acquired on December 27, 2010. Clearwater Paper’s results for 2010 include four days of Cellu Tissue results. 2 Net sales excludes intersegment net sales and transfers. 3 See Appendix A: “Financial Detail” for the definition of Adjusted EBITDA as well as the reconciliation to the most comparable GAAP measure. 4 Adjusted EBITDA margin percentage calculated by dividing Adjusted EBITDA by net sales. |
 8 Pro Forma Sales Mix Change Acquisition Supports Strategy to Grow the Size and Scope of Consumer Products Segment Clearwater Paper Stand Alone Sales Mix Twelve Months Ended December 31, 2010 Period from January 1, 2010 through December 27, 2010 Cellu Tissue Stand Alone Sales Mix¹ Pro Forma Sales Mix $1,373 Million $530 Million $1,903 Million 1 Cellu Tissue was acquired on December 27, 2010. Clearwater Paper’s results for 2010 include four days of Cellu Tissue results. Consumer Products 58% Pulp & Paperboard 42% Consumer Products 42% Pulp & Paperboard 58% Tissue 77% Machine- glazed 22% Foam 1% |
 9 Consumer Products Segment Overview • Committed to maintaining high-quality products that match the quality of leading national brands • Only U.S. consumer tissue producer that manufactures solely private label tissue High-Quality, Premium Products ($ in millions) 1 Cellu Tissue was acquired on December 27, 2010. Clearwater Paper’s results for 2010 include four days of Cellu Tissue results. 2 See Appendix A: “Financial Detail” for the definition of Segment Adjusted EBITDA as well as the reconciliation to the most comparable GAAP measure. $41 $34 $53 $138 $87 $129 $0 $20 $40 $60 $80 $100 $120 $140 $160 2006 2007 2008 2009 2010 PF 2010 |
 10 Attractive Industry Characteristics -Tissue Source: RISI and IRI. 1 Based on converted short tons. 2 Represents market share as a % of sales in U.S. grocery channel. |
 30% 17% 16% 7% 6% 5% 4% 2% 2% 2% 1% 1% 1% 1% 1% 1% 0% 0% 0% 4% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 11 2010 North American Tissue Market by Producer Remaining Manufacturing Base Highly Fragmented Large Brand Manufacturers Source: Equity research. 1 Represents pro forma Clearwater Paper tissue parent roll capacity combined with Cellu Tissue tissue parent roll production. 1 The Combined Company Was the Sixth-Largest Manufacturer in the North American Tissue Market in 2010 |
 Consumer Products Strategy Cellu Tissue Acquisition • National manufacturing footprint to complement existing national customer footprint • Ability to service all tissue quality segments (ultra, premium, value and economy) as well as away-from-home tissue market • Strengthen position as one of the leading private label tissue manufacturers • Papermaker and converter of tissue products with 14 combined sites throughout North America Shelby, NC Expansion • Building a 70,000 ton TAD paper machine facility and 7 tissue converting lines capable of producing ultra grades of private label tissue products • Initial 2 converting lines expected to come on-line in second quarter of 2011, adding 27,000 tons of annual converting capability; paper machine expected to begin production in the second half of 2012 12 |
 Cellu Tissue Synergies • Reduction in Freight Cost • Pulp Integration • Pulp Purchasing • SG&A • Parent Roll Integration • Efficiency Improvements • Scale Benefits 13 $15-$20 Million of Annual Net Cost Savings Expected to Be Realized by End of 2012 |
 Synergy Opportunity Example Underutilized large converting winder in Neenah, WI (formerly Cellu Tissue) can more efficiently produce Away-from-Home products and 1000 count bathroom tissue •Actions: 1. Relocate a wrapper machine from Elwood, IL (formerly CLW) to Neenah, WI 2. Reposition an underutilized case packer in Neenah, WI 3. Redirect the existing 1000 count product from Lewiston, ID (formerly CLW) and Thomaston, GA (formerly CLU) to Neenah, WI 4. Increase the production schedule of the existing underutilized large converting winder in Neenah, WI from 5 to 7 days •Expected Results: 1. Creates new case capacity in the systems at Neenah, Lewiston and Thomaston 2. Reduces freight 3. Improves paper machine trim 14 |
 15 Pulp and Paperboard Segment Overview • Focus on high-end paperboard products, such as pharmaceuticals and cosmetics packaging – Superior print surfaces and cleanliness for discriminating domestic and international markets – Valued industry consulting – Effective logistics to meet just-in-time customer needs High-Quality, Premium Products ($ in millions) Segment Adjusted EBITDA 1,2 Net Sales¹ 1 Includes Wood Products segment. 2 See Appendix A: “Financial Detail” for the definition of Segment Adjusted EBITDA as well as the reconciliation to the most comparable GAAP measure. |
 16 Attractive Industry Characteristics – Paperboard Source: RISI. 1 Top 5 manufacturers in 1998 were International Paper, Westvaco, Temple-Inland, Georgia-Pacific and Potlatch. Top 5 manufacturers in 2010 were International Paper, MeadWestvaco, Georgia-Pacific, Evergreen Packaging and Clearwater Paper. 2 Based on tons produced. 3 Average price per short ton of 16 pt. SBS folding carton C1S. |
 17 Strategically Positioned Pulp & Paperboard Facilities Facilities positioned to provide broad geographic reach and cost-efficient transportation points • Idaho Mill – Reduced transportation costs to Asia versus East Coast competitors – One of two bleached paperboard mills in Western U.S. – 423,000 tons of bleached paperboard produced in 2010 • Arkansas Mill – Central location reduces freight costs to Midwest and East Coast – Most recently built bleached paperboard mill in North America – 317,000 tons of bleached paperboard produced in 2010 2010 PPD Sales |
 18 Appendix A: Financial Detail |
 19 External Pulp Purchases – CLW External Pulp Purchases – CLU² External Pulp Sales Net Pulp Purchased Projected¹ Approximate Pulp Flows 2010 134,000 0 (60,000) 74,000 134,000 240,000 0 374,000 1 We expect to eliminate external pulp sales over time and instead utilize that pulp in our Consumer Products segment. 2 Excludes recycled fiber used at Ladysmith, WI Pulp Production External Pulp Purchases External Pulp Sales Internal Pulp Requirements 804,000 134,000 (60,000) 878,000 804,000 374,000 0 1,178,000 (92% of requirements) (68% of requirements) Projected¹ 2010 Net Pulp Purchased Pulp Integration (in tons) |
 20 Reconciliation of GAAP to Non-GAAP: Clearwater Paper EBITDA and Adjusted EBITDA 1 See last page of Appendix A for definitions of EBITDA and Adjusted EBITDA. ($ in millions) 2006 2007 2008 2009 2010 Net Earnings $20.9 $25.3 $9.7 $182.5 $73.8 Income Tax Provision 12.4 14.1 5.6 93.2 2.4 Interest Expense 13.0 13.0 13.1 15.5 22.6 Earnings Before Interest and Income Taxes 46.3 52.4 28.5 291.2 98.8 Depreciation & Amortization 54.3 51.3 47.0 47.4 47.7 EBITDA¹ $100.6 $103.7 $75.4 $338.7 $146.5 Alternative Fuel Mixture Tax Credit (170.6) Debt Retirement Costs - - - $6.2 - Cellu Tissue Acquisition Related Expenses 20.3 Adjusted EBITDA¹ $100.6 $103.7 $75.4 $174.3 $166.8 |
 21 Reconciliation of GAAP to Non-GAAP: Cellu Tissue EBITDA and Adjusted EBITDA 1 See last page of Appendix A for definitions of EBITDA and Adjusted EBITDA. ($ in millions) Cellu Tissue (Period from January 1, 2010 through December 27, 2010) Net Loss $(56.2) Income Tax Provision (34.6) Interest Expense 86.4 Earnings Before Interest and Income Taxes (4.4) Depreciation & Amortization 33.3 EBITDA 1 $28.9 Acquisition Related Expenses 13.2 Adjusted EBITDA¹ $42.1 |
 22 Reconciliation of GAAP to Non-GAAP: Clearwater Paper Segment EBITDA and Segment Adjusted EBITDA ($ in millions) 1 See last page of Appendix A for definitions of Segment EBITDA and Segment Adjusted EBITDA. 2006 2007 2008 2009 2010 Consumer Products Operating Income $25.7 $17.6 $37.3 $122.1 $63.7 Depreciation 15.8 16.3 15.7 16.0 17.0 Segment EBITDA¹ $41.5 $33.9 $53.0 $138.1 $80.7 Cellu Tissue Acquisition Related Expenses - - - - 6.5 Segment Adjusted EBITDA¹ $41.5 $33.9 $53.0 $138.1 $87.2 Pulp & Paperboard Operating Income¹ $32.2 $45.0 $4.4 $191.9 $81.9 Depreciation 38.1 34.6 30.9 29.9 28.7 Segment EBITDA¹ $70.2 $79.6 $35.3 $221.8 $110.6 Alternative Fuel Mixture Tax Credits - - - (170.6) - Segment Adjusted EBITDA¹ $70.2 $79.6 $35.3 $51.1 $110.6 |
 23 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 related expenses and alternative fuel mixture tax credits. The most directly comparable GAAP measure is net earnings. It should not be considered as an alternative to net earnings computed under GAAP. Segment EBITDA is a non-GAAP measure used by Clearwater Paper management. The most directly comparable GAAP measure is segment operating income. Segment EBITDA, as defined by Clearwater Paper management, is segment operating income adjusted for segment depreciation and amortization. It should not be considered as an alternative to segment operating income computed under GAAP. Segment Adjusted EBITDA is a non-GAAP measure that Clearwater Paper management defines as Segment EBITDA adjusted for nonrecurring expenses or income, including alternative fuel tax credits. The most directly comparable GAAP measure is segment operating income. It should not be considered as an alternative to segment operating income computed under GAAP. |