Clearwater Paper (CLW) 8-K Regulation FD Disclosure

CLEARWATER PAPER

CORPORATION

MARCH 2015

Exhibit 99.1

FORWARD LOOKING

STATEMENTS

2

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

North

American

tissue

demand

and

capacity,

paperboard

demand,

Chinese

paperboard

competition,

business

strategies,

EBITDA

margins

and

model,

measures

to

address

market

dynamics,

strategic

capital

projects,

and

Adjusted

EBITDA

run-rate.

Words

such

as

“anticipate,”

“expect,”

“intend,”

“will,”

“plan,”

“goals,”

“objectives,”

“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

updated

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

and

uncertainties

described

from

time

to

time

in

our

public

filings

with

the

Securities

and

Exchange

Commission,

as

well

as

the

following:

competitive pricing pressures for our products, including as a result of increased capacity as additional manufacturing facilities are operated by

our competitors;

the loss of or changes in prices in regards to a significant customer;

changes in transportation costs and disruptions in transportation services;

manufacturing or operating disruptions, including equipment malfunction and damage to our manufacturing facilities caused by fire or weather-

related events and IT system failures;

changes in the cost and availability of wood fiber and wood pulp;

labor disruptions;

changes in costs for and availability of packaging supplies, chemicals, energy and maintenance and repairs;

environmental liabilities or expenditures;

changes in the U.S. and international economies and in general economic conditions in the regions and industries in which we operate;

changes

in

customer

product

preferences

and

competitors'

product

offerings;

changes in expenses and required contributions associated with our pension plans;

reliance on a limited number of third-party suppliers for raw materials;

cyclical industry conditions;

inability

to

successfully

implement

our

operational

efficiencies

and

expansion

strategies;

inability to fund our debt obligations;

restrictions on our business from debt covenants and terms; and

changes

in

laws,

regulations

or

industry

standards

affecting

our

business.

Forward-looking statements contained in this presentation present management’s views only as of the date of this presentation or as indicated. We undertake no obligation to publicly

update forward-looking statements, whether as a result of new information, future events or otherwise.

OVERVIEW OF

CLEARWATER PAPER

3

INTRODUCTION TO

CLEARWATER PAPER

WE ARE A COMPANY FORMED IN LATE 2008 WITH MORE

THAN 60 YEARS OF OPERATING HISTORY

WE OPERATE

TWO BUSINESS SEGMENTS

Pulp and paperboard: 40% of 2014 net sales

Consumer products: 60% of 2014 net sales

FINANCIAL OVERVIEW FOR 2014

Net Sales: $2.0 Billion

Adjusted EBITDA¹: $240 Million

2008 to 2014 Adjusted EBITDA¹

CAGR: 21%

APPROXIMATELY 3,200 EMPLOYEES

4

1

See Appendix for the definition of Adjusted EBITDA as well as the reconciliation to the most comparable GAAP measure.

CONSUMER PRODUCTS DIVISION

OVERVIEW

Clearwater Paper is one of the LARGEST NORTH AMERICAN

MANUFACTURERS OF PRIVATE LABEL TISSUE, focused on high value tissue

products across all categories, retail channels and geographies.

5

CONSUMER PRODUCTS DIVISION

MARKET DRIVERS

STABLE GROWTH

–

The tissue market has grown an average of

1

%

-

2

%

annually since 1996, consistent with population growth.

Source:

U.S.

Tissue

demand

per

RISI

for

North

America

only

from

US

Tissue

Data

January

2014,

U.S.

Population

per

U.S.

Census

December

2012

6

CONSUMER PRODUCTS DIVISION

CAPACITY AND RETAIL CHANNELS

OVERVIEW OF FACILITIES

Tissue

Production

Capacity

1

:

433,000

tons

Tissue

Conversion

Capacity

1

:

435,000

tons

Clearwater

Paper

Tissue

Parent

Roll

Clearwater

Paper

Tissue

Converting

1

Represents 2014 annual volumes excluding specialty mills

2

IRI Panel data for Retail channel share by dollar amount sold as of Jan. 5, 2015.

3

Company sales data.

Change

in

Industry

Retail

Channel

Mix

U.S. TISSUE INDUSTRY

RETAIL

CHANNEL

MIX

2

2009

2014

Grocery

37

%

33

%

Mass

+

Supercenter

28

%

31

%

Club

22

%

23

%

Drug

7

%

5

%

Dollar

3

%

4

%

All Other

3

%

4

%

Clearwater Paper Focus on

Diversifying Channel Mix

CLEARWATER PAPER RETAIL

CHANNEL

MIX

3

2011

2014

Grocery

82

%

68

%

Mass

+

Supercenter

10

%

19

%

Drug

2

%

2

%

Dollar

6

%

10

%

All Other

1

%

7

Lewiston,ID

Las Vegas,NV

Oklahoma City, OK

Shelby, NC

Elwood, IL

Neenah, WI

Lady Smith, WI

PRIVATE LABEL CONTINUES TO

CAPTURE MARKET SHARE IN TISSUE

Clearwater Paper ranks as one of the LARGEST NORTH

AMERICAN

PRIVATE

LABEL

TISSUE

MANUFACTURERS

Private Label Market Share

of Total U.S. Market

2014 U.S. Retail Tissue

Industry Product Mix

2014

Bath Tissue

60

%

Paper Towels

29

%

Facial Tissue

7

%

Napkins

4

%

Source: IRIWorldwide. January 2015

8

OPPORTUNITY FOR PRIVATE LABEL

AND CLEARWATER PAPER TO GROW

MARKET SHARE NATIONALLY

Clearwater

Paper

Market

Share by

Region

WEST

MID-WEST

EAST

Clearwater Paper

17.2

%

8.0

%

5.3

%

Brand Names

69.3

%

73.6

%

73.0

%

Other Private Label

13.5

%

18.4

%

21.7

%

Source:  IRIWorldwide. January 2015

9

NORTH AMERICAN TISSUE MARKET

DEMAND VS. CAPACITY

Longer Term Market Remains in Equilibrium

Source: RISI August 2013 update for Outlook for World Tissue Business, RISI Feb 2015 US Tissue Monthly Data, and Company estimates

1

It is assumed that any productivity improvements (approximately 100k  per year or 1% of capacity) will be offset by closures over a cycle.

Notes: Projected capacity changes represents both virgin and recycled tissue capacity changes. Please see Appendix for breakdown

of specific projects reflected in the capacity changes.

10

PAPERBOARD DIVISION

OVERVIEW

LEADING

MANUFACTURER

OF

SBS

1

used

in

packaging

of

premium

consumer

goods, pharmaceuticals, food and liquid, and food service plates, cups and

folding cartons.

11

1

Solid Bleach Sulfate paperboard

PAPERBOARD DEMAND REMAINS

STABLE AND OUTLOOK IS

FAVORABLE IN THE U.S.

Source: RISI estimates as of January 2015

¹

Based on tons produced. Projections based on North American Packaging papers and board demand estimates per RISI.

²

Average price per short ton of 16 pt. SBS folding carton C1S. Price estimates per RISI.

DEMAND FOR SBS BASED PRODUCTS

EXPECTED TO REMAIN STABLE THROUGH 2016

•

Secular trend away from foam (polystyrene) cups and products is in the early innings

and the SBS market is expected to be a beneficiary

•

Strong economy bodes well for SBS business

•

China’s ivory board is expected to have minimal impact on Clearwater Paper in 2015

•

The strong U.S. dollar may attract foreign SBS manufacturers

12

PULP AND PAPERBOARD DIVISION

CAPACITY AND MARKETS

Clearwater

Paper

ranks

as

one

of

the

top

five

largest

paperboard

manufacturers

in

North

America

Lewiston Mill

ID

Cypress Bend Mill

AR

OVERVIEW OF FACILITIES

Pulp

Production

Capacity

1

:

856,000

tons

Paperboard

Production

Capacity

1

:

812,000

tons

Clearwater Paper Pulp

Clearwater Paper SBS

Source: Company estimates, RISI, AF&PA

1

Represents 2014 annual volumes.

2

Represents ~6.0 million tons.

2014 North American Bleached

Paperboard

Production

by

Type

2

2014

Folding

36

%

Liquid Packaging

23

%

Cup

17

%

Plate, Dish, & Tray

13

%

Coated Bristols

8

%

All Other

3

%

2014 North American Bleached

Paperboard Production by Market Share

2014

International Paper

24

%

MeadWestvaco

23

%

Georgia Pacific

13

%

Evergreen

13

%

Clearwater Paper

12

%

Rock-Tenn

7

%

Weyerhauser

5

%

Tembec Paperboard

3

%

13

OUR MACRO STRATEGY TO

OUR MACRO STRATEGY TO

CREATE SHAREHOLDER VALUE

CREATE SHAREHOLDER VALUE

GROW OUR TISSUE BUSINESS

> Lead private label in quality

> Expand geographically

Diversify retail channel penetration

OPTIMIZE PROFITABILITY OF

PAPERBOARD AND TISSUE BUSINESSES

> Improve sales mix

> Reduce costs

> Continue to improve quality

14

SUCCESSFUL EXECUTION OF

PREVIOUSLY STATED GOALS

GOAL

COMPLETE NEW PAPER MACHINE

AT SHELBY, NC FACILITY

GOAL

OPTIMIZE THE

PAPERBOARD BUSINESS

GOAL

MAINTAIN A PRUDENT CAPITAL

STRUCTURE TO LOWER WEIGHTED

AVERAGE COST OF CAPITAL

GOAL

ASSET RATIONALIZATION/

COST INFRASTRUCTURE

GOAL

RETURN OF CAPITAL TO

SHAREHOLDERS

TIMEFRAME

ongoing

STATUS

•

Sold 5 specialty mills in December 2014 for $114 million

•

Closure of Long Island and Thomaston converting operations in 2013-2014

•

Established cross divisional supply chain function to drive out costs system wide

TIMEFRAME

ongoing

STATUS

•

Record

2014

production

of

792K

tons

and

Adjusted

EBITDA

margin

of

22%

2

•

Cost and production improvement projects

•

Idaho major maintenance cycle increased from 12 to 18 months

•

Enhanced access to fiber supply with chipping facility acquisition near Lewiston, Idaho

TIMEFRAME

completed

STATUS

•

70k ton Shelby TAD machine startup in Q4 2012 on budget

•

Full run rate achieved in Q3 2014 versus goal of Q4 2013

TIMEFRAME

ongoing

STATUS

•

Conservative capital structure with target leverage through the cycle of 3x Adjusted

EBITDA and ample liquidity

•

Refinanced bonds and reduced long-term debt interest rate to 5% from 8.6%

since 2013

TIMEFRAME

ongoing

STATUS

•

Announced new $100 million share repurchase program in December 2014

•

Returned $230 million in capital to shareholders from 2011 through 2014 through

share repurchases

•

Reduced shares outstanding by 20% or 4.5 million shares through 2014

TIMEFRAME

ongoing

STATUS

•

Achieved

$72

million

Adjusted

EBITDA

in

Q3

20141

•

Input cost inflation and conventional tissue pricing headwinds persist

•

Sold specialty mills in December 2014 representing 8% or $18.4 million in Adjusted

EBITDA

¹

See Appendix for the definition of Adjusted EBITDA as well as the reconciliation to the most comparable GAAP measure.

2

Pulp

and

Paperboard

operating

income

for

2014

of

$144.2

million

plus

depreciations

of

$25.5

million

and

loss

on

impairment

of

Clearwater

Fiber

intangible

asset

resulting

in

Adjusted

EBITDA

of

$172.7

million

15

GOAL

$300

MILLION

ADJUSTED

EBITDA

1

UPDATED ADJUSTED EBITDA TARGET

IN LIGHT OF CHANGES IN MARKET

CONDITIONS AND DIVESTITURE

16

1

Non-GAAP

measure

–

See

definition

and

reconciliation

to

most

comparable

GAAP

measure

2

.                                                                

2

This

information

is

based

upon

management’s

current

expectations

and

estimates,

which

are

in

part

based

on

market

and

industry

data.

Many

factors

are

outside

the

control

of

management,

including

particularly

input

costs

for

commodity

products,

and

actual

results

may

differ

materially

from

the

information

set

forth

above.

See

“Forward-Looking

Statements

on

page

2.

PRICING AND INPUT COSTS VS. 2011

•

Pricing pressure for conventional tissue products

•

Competitive market environment a barrier to passing through input cost inflation to customers

•

Key input costs up $46 million

•

Partly offset by improved paperboard pricing

•

$18.4

million

of

Adjusted

EBITDA

1

divested

with

sale

of

specialty

products

mills

CLEARWATER PAPER

CROSS CYCLE FINANCIAL MODEL

1

Includes Corporate SG&A percentage of net sales of 2.5%

2

Non-GAAP measure –

See definition and reconciliation to most comparable GAAP measure.

.

17

2014

RESULTS

100%

13.9%

(6.3%)

7.5%

3.5%

11.5%

2015

FOCUS

•

Pulp optimization at mills

•

Standardize the back end of our converting lines

•

Bring new swing-line in Las Vegas on-line

2015

FOCUS

•

Execute national warehousing and logistics optimization strategy

•

100% adoption of pallet-based warehouse platform

•

Standardize

our

national

3

party

logistics

strategy

2015

FOCUS

•

Grow cup market stock and folding carton market share

•

Simplify cup and brik manufacturing complexity

•

Reduce complexity in our business through grade & SKU validation

•

Improve our category insights to help retailers sell best mix of

products

2015

FOCUS

•

Implement Black/Green belt training projects through Total Productive

Maintenance (TPM)

•

Conduct loss analysis audits by mill

2015

FOCUS

•

Develop Supply Chain planning tools (Demantra) for efficiencies

•

Launch Phase 2 of JD Edwards (Project 1Way), TM1 (financial forecasting)

PATH TO 15% ADJUSTED EBITDA

CROSS CYCLE TARGET MARGIN

18

GOAL

INCREASE OUR SALES

EFFECTIVENESS

GOAL

ACHIEVE SUPPLY CHAIN

EFFICIENCIES

GOAL

STRENGTHEN OUR CONTINUOUS

IMPROVEMENT CULTURE

GOAL

IMPROVE OUR MANUFACTURING

COST STRUCTURE

GOAL

IMPLEMENT THE RIGHT

PROCESSES, TOOLS, SYSTEMS

•

Reallocate $107M net specialty proceeds to strategic

investments

•

Operational improvements

rd

STRATEGIC INVESTMENTS

EXPECTED TO ACHIEVE

ADJUSTED EBITDA MARGIN TARGET

19

(MILLIONS $)

2015

2016-2018

FULL RUN-RATE EXPECTED¹

STRATEGIC INVESTMENTS²

CAPEX

CAPEX

ADJUSTED EBITDA IMPACT

Pulp Optimization

$26

$120-$130

$30-$35

Warehouse Automation

$12

$25-$30

$27-$32

Paper Machine and Converting Line Upgrades

$27

$11-$12

Converting Lines

$14

$10-$12

IT

$6

TOTAL STRATEGIC CAPEX

$85

$145-$160

PLUS BENEFITS FROM:

Operational Efficiency

$20-$32

Sales & Marketing Efficiency

$10-$15

Stranded Overhead

$7

TOTAL

$115-$145

Invest to improve operating efficiency and profitability

1

Non-GAAP

measure

–

See

definition

and

reconciliation

to

most

comparable

GAAP

measure

2

This

information

is

based

upon

management’s

current

expectations

and

estimates,

which

are

in

part

based

on

market

and

industry

data.

Many

factors

are

outside

the

control

of

management,

including

particularly

input

costs

for

commodity

products,

and

actual

results

may

differ

materially

from

the

information

set

forth

above.

See

“Forward-Looking

Statements

on

page

2.

•

High return/low risk investments

•

Expected to permanently reduce cost structure

•

Expected

Adjusted

EBITDA

improvement

of

$115

to

$145

million

in

2-3

years

1

•

Funding in Year 1 from sale proceeds of specialty mills

EXPECTED ADJUSTED EBITDA

FROM STRATEGIC INVESTMENTS AND

OPERATIONAL

IMPROVEMENTS

1,2

20

•

Expected

to

yield

a

$115-$145

million

Adjusted

EBITDA

increase

over

the

$230M

reset

run

rate

1

•

Assumes an annual $10-15 million of margin pressure

•

Implies

$285-$335

million

Adjusted

EBITDA

run

rate

in

2018

1

2

1

This information is based upon management’s current expectations and estimates, which are in part based on market and industry data. Many factors are outside the control of management, including particularly input costs for commodity products,

and actual results may differ materially from the information set forth above. See “Forward-Looking Statements on page 2.

Non-GAAP measure – See definition and reconciliation to most comparable GAAP measure.

CLEARWATER PAPER’S

VALUE PROPOSITION

21

BALANCED

CAPITAL

ALLOCATION

2011-2014

22

1

Discretionary Free Cash Flow is cash flow from operations less maintenance capital expenditures

.

•

20% of total shares outstanding from

2011 through 2014

•

Continued investment in the business

while returning capital to investors

Capital Allocation

2011-2014

Cumulative Shares Repurchased

Total Shares Outstanding

(As of Dec 31st)

Commitment

to

return

at

least

50%

of

Discretionary

Free

Cash

Flow

1

to

shareholders

through

2015

CLEARWATER PAPER IS A

LEADER AMONGST ITS PEERS

IN VALUE CREATION

Source: Bloomberg, market data as of  October 24, 2014

Note: Total Shareholder Return includes with dividends reinvested and stock price performance.

1

Small cap tissue peers include Cascades, Orchids, and Wausau.

23

489% Total Shareholder Return Since Spin-off

²

Paperboard peers include International Paper, Graphic Packaging, Kapstone, MeadWestvaco, RockTenn, Packaging Corp

of America, and Sonoco.

³

Large cap consumer product peers include Kimberly-Clark and Procter & Gamble.

Strong Upward Trend in Multiple Over Time

WHICH HAS LED TO MULTIPLE

EXPANSION SINCE THE SPIN

24

Source: Bloomberg, Capital IQ, market data as of October 24, 2014

1

Small cap tissue peers include Cascades, Orchids, and Wausau.

²

Paperboard peers include International Paper, Graphic Packaging, Kapstone, MeadWestvaco, RockTenn, Packaging Corp and Sonoco.

³

Large cap consumer product peers include Kimberly-Clark and Procter & Gamble.

RETURN ON INVESTED CAPITAL

1,5

(UNAUDITED)

1

Return

on

Invested

Capital

(ROIC)

is

defined

as

[Net

Earnings

+

Interest

Expense]

/

[Tangible

Stockholders’

Equity

5

+

Debt

–

Excess

(Deficit)

Cash]

2

Weighted

Average

Cost

of

Capital

(WACC)

is

defined

as

[(Debt

x

Cost

of

Debt

x

{1-Marginal

Tax

Rate})/(Debt

+

Stockholders’

Equity)]+[(Stockholders’

Equity

x

Cost

of

Equity)/(Debt

+

Stockholders’

Equity)]

3

2013

Adjusted

ROIC

Net

Earnings

was

adjusted

to

remove

a

benefit

of

$67.5

million

from

discrete

tax

items

relating

to

release

of

uncertain

tax

positions.

2013

Adjusted

ROIC

Interest

Expense

includes

debt

retirement

costs

of

$17.1

million.

4

2014

Adjusted

ROIC

Net

Earnings

was

adjusted

to

remove

costs/loss

associated

with

optimization

and

sale

of

the

specialty

mills

totaling

$37.0

million

after-tax.

2014

Adjusted

ROIC

Interest

Expense

includes

debt

retirement

costs

of

$24.4

million.

5

Non-GAAP

Measure

–

See

definition

and

reconciliation

to

most

comparable

GAAP

measure.

25

CLEARWATER PAPER’S

OUTLOOK

26

FIRST QUARTER 2015 OUTLOOK

1,2

(COMPARED TO Q4’14, EXCLUDING  SPECIALTY MILLS)

27

CONSUMER PRODUCTS

(EXCLUDING SPECIALTY MILLS)

PULP AND PAPERBOARD

CORPORATE

SHIPMENT VOLUMES

•

Slightly higher:

0–1% higher

•

Improved shipments:

1–5% higher

PRICE/MIX

•

Slightly Higher:

0–1% higher

•

Slightly Higher:

0–1% higher

PULP/WOOD FIBER COSTS

•

Cost/shipped ton:

higher

•

Cost/shipped ton:

stable

CHEMICAL COSTS

•

Cost/shipped ton:

stable

•

Cost/shipped ton:

lower

OP. & PKG. SUPPLIES

•

Cost/shipped ton:

lower

•

Cost/shipped ton:

stable

TRANSPORTATION COSTS

•

Cost/shipped ton:

lower

•

Cost/shipped ton:

stable

ENERGY COSTS

•

Cost/shipped ton:

stable

•

Cost/shipped ton:

stable

MAINTENANCE & REPAIRS

•

Stable

•

Higher due to planned major

maintenance outage

•

($13–$15M)

SG&A

•

Higher

•

Stable

•

Stable

1

This

informationis

based

upon

management’s

current

expectations

and

estimates,

which

arein

part

basedonmarket

andindustry

data.

Many

factors

are

outside

the

control

of

management,

including

particularly

input

costs

for

commodity

products,

and

actual

results

may

differ

materially

from

the

information

set

forth

above.

See

“Forward-Looking

Statements”

onpage

1.

2

Excludingimpact

of

sale

ofspecialty

mills.

Consolidated

Outlook:

Net

sales

2

:1-3%

higher;

Operating

margin:

3-5%

BRIDGE TO Q1’15 ADJUSTED EBITDA

OUTLOOK

1,2

28

1

This

information

is

based

upon

management’s

current

expectations

and

estimates,

which

are

in

part

based

on

market

and

industry

data.

Many

factors

are

outside

the

control

of

management,

including

particularly input costs for commodity products, and actual results may differ materially from the information set forth above. See “Forward-Looking Statements on page 2.

2

Non-GAAP measure –

See definition and reconciliation to most comparable GAAP measure.

APPENDIX

29

RECONCILIATION

OF

GAAP

TO

NON-GAAP:

CLEARWATER

PAPER

EBITDA

1

AND

ADJUSTED

EBITDA

1

30

¹

See Appendix for the definition of Adjusted EBITDA as well as the reconciliation to the most comparable GAAP measure.

2

Interest expense, net for 2009, 2013, and 2014 includes debt retirement costs of $6.2 , $17.1 and $24.4 million respectively.

($ in millions)

2008

2009

2010

2011

2012

2013

2014

Net earnings/(loss)

$

9.7

$

182.5

$

73.8

$

39.7

$

64.1

$

107.0

$

(2.3)

Income tax provision (benefit)

$

5.6

$

93.2

$

2.4

$

31.2

$

47.5

$

(68.7)

$

(18.6)

Interest expense, net

2

$

13.1

$

21.7

$

22.6

$

44.8

$

33.8

$

61.1

$

63.6

Depreciation and amortization

$

47.0

$

47.4

$

47.7

$

76.9

$

79.3

$

90.3

$

90.1

EBITDA

1

$

75.4

$

344.8

$

146.5

$

192.7

$

224.7

$

189.6

$

170.0

Alternative Fuel Mixture Tax Credit

-

$

(170.6)

-

-

-

-

-

Cellu Tissue acquisition related expenses

-

-

$

20.3

-

-

-

-

Lewiston, Idaho sawmill sale related adjustments

-

-

-

$

2.9

-

-

-

Loss on sale of foam assets

-

-

-

-

$

1.0

-

-

Expenses associated with Metso litigation

-

-

-

-

$

2.0

-

-

Costs associated with Thomaston facility closure

-

-

-

-

-

$

6.0

$

1.3

Costs associated with Long Island facility closure

-

-

-

-

-

-

$

18.8

Directors equity-based compensation expense

-

$

2.6

$

3.7

1.5

$

1.4

$

4.1

$

4.6

Costs associated with optimization and sale of the specialty mills

$

40.8

Loss on impairment of Clearwater Fiber intangible asset

-

-

-

-

-

-

$

3.1

Adjusted EBITDA

1

$

75.4

$

176.8

$

170.5

$

197.1

$

229.1

$

199.7

$

238.5

(Dollars in thousands)

Q1'13

Q2'13

Q3'13

Q4'13

Q1'14

Q2'14

Q3'14

Q4'14

2012

2013

2014

Earnings before interest, income taxes, and

     depreciation & amortization (EBITDA)¹

GAAP net (loss) earnings

($882)

$  11,658

$  13,317

$  82,862

$  6,226

$  12,453

$  6,253

($27,247)

$  64,131

$  106,955

($2,315)

Interest expense, net²

28,040

11,094

10,708

11,252

10,734

10,688

33,990

8,158

33,796

61,094

63,570

Income tax (benefit) provision

(14,675)

6,962

(5,183)

(55,825)

3,558

9,942

3,735

1,321

47,460

(68,721)

18,556

Depreciation and amortization expense

22,151

23,253

22,180

22,688

22,231

22,015

22,293

23,606

79,333

90,272

90,145

EBITDA¹

$  34,634

$  52,967

$  41,022

$  60,977

$  42,749

$  55,098

$  66,271

$  5,838

$  224,720

$  189,600

$  169,956

Loss on sale of foam assets

-

-

-

-

-

-

-

-

1,014

-

-

Costs associated with Metso litigation

-

-

-

-

-

-

-

-

2,019

-

-

Directors' equity-based compensation expense (benefit)

3,472

(1,141)

361

1,392

2,817

(36)

(185)

2,010

1,369

4,084

4,606

Costs associated with Thomaston facility closure

183

1,013

1,717

3,064

750

374

42

91

-

5,977

1,257

Costs associated with Long Island facility closure

-

-

-

-

8,432

1,843

4,767

3,771

-

-

18,813

Costs/loss associated with optimization and sale of the specialty mills

-

-

-

-

-

-

1,066

39,735

-

-

40,801

Loss on impairment of Clearwater Fiber intangible asset

-

-

-

-

-

-

-

3,078

-

-

3,078

Adjusted EBITDA³

$  38,289

$  52,839

$  43,100

$  65,433

$  54,748

$  57,279

$  71,961

$  54,523

$  229,122

$  199,661

$  238,511

Twelve Months Ended

December 31,

RECONCILIATION

OF

GAAP

TO

NON-GAAP:

CLEARWATER

PAPER

EBITDA

1

AND

ADJUSTED

EBITDA

1

¹

See Appendix for the definition of Adjusted EBITDA as well as the reconciliation to the most comparable GAAP measure.

2 Interest expense, net for 2009, 2013, and 2014 includes debt retirement costs of $6.2 , $17.1 and $24.4 million respectively.

31

RETURN ON INVESTED CAPITAL

TANGIBLE STOCKHOLDERS’

EQUITY &

EXCESS CASH RECONCILIATION OF NON-

GAAP FINANCIAL MEASURES

32

(Dollars in thousands)

2009

2010

2011

2012

2013

2014

Net earnings

1

69,520

$     

73,800

$     

39,674

$    

64,131

$    

106,955

$ 

($2,315)

Interest expense, net

15,505

22,571

44,809

33,796

44,036

39,150

Net earnings before interest

2

85,025

$     

96,371

$     

84,483

$    

97,927

$    

150,991

$ 

36,835

$     

Tangible stockholders' equity3

363,736

$   

182,416

$   

205,623

$ 

263,608

$ 

334,783

$ 

263,494

$   

Debt

148,285

538,314

523,694

523,933

650,000

575,000

Less excess cash

4

(175,750)

(130,023)

(48,440)

(17,579)

(78,675)

(62,331)

Invested capital

336,271

$   

590,707

$   

680,877

$ 

769,962

$ 

906,108

$ 

776,163

$   

Return on Invested Capital (ROIC)

25.3%

16.3%

12.4%

12.7%

16.7%

4.7%

Stockholders' equity

363,736

$   

468,349

$   

484,904

$ 

540,894

$ 

605,094

$ 

497,537

$   

Goodwill

-

(229,533)

(229,533)

(229,533)

(229,533)

(209,087)

Intangible assets, net

-

(56,400)

(49,748)

(47,753)

(40,778)

(24,956)

Tangible stockholder equity

3

363,736

$   

182,416

$   

205,623

$ 

263,608

$ 

334,783

$ 

263,494

$   

Cash

2,824

$       

18,928

$     

8,439

$      

12,579

$    

23,675

$    

27,331

$     

Short-term investments

187,926

126,095

55,001

20,000

70,000

50,000

Operating cash

5

(15,000)

(15,000)

(15,000)

(15,000)

(15,000)

(15,000)

Excess cash

4

175,750

$   

130,023

$   

48,440

$    

17,579

$    

78,675

$    

62,331

$     

1

2009 Net Earnings was adjusted to remove a benefit of $170.6 million resulting from the recognition of Alternative Fuel Mixture Tax Credits. 

2

Non-GAAP measure.

3

Tangible stockholders' equity is defined as stockholders’ equity less Goodwill and Intangible assets, net.

4

Excess (deficit) cash is defined as the sum of Cash and Short-term investments less Operating cash

2

.

5

Operating cash is defined as a minimum amount of available cash deemed by management to be sufficient to avoid operating disruptions due to a mismatch of cash inflows and outflows during an

   accounting period.

Note:  Balance sheet items are as of December 31   of each year presented. 

st

Segment

Adjusted

EBITDA

($

in

thousands)

KEY SEGMENT RESULTS 

PULP AND PAPERBOARD

1 Non-GAAP measure –

See definition and reconciliation to most comparable GAAP measure.

2 Segment Adjusted EBITDA margin is defined as Segment Adjusted EBITDA divided by Segment net sales.

33

Q1'13

Q2'13

Q3'13

Q4'13

Q1'14

Q2'14

Q3'14

Q4'14

Shipments

Paperboard (short tons)

186,350

190,518

199,408

188,776

200,665

195,924

201,609

176,467

Sales Price

Paperboard ($/short ton)

$  935

$  946

$  973

$  978

$  988

$  1,017

$  1,016

$  1,017

Segment

net

sales

($

in

thousands)

$  175,922

$  181,294

$  194,910

$  188,012

$  198,412

$  199,629

$  205,038

$  180,675

1

$  23,212

$  30,550

$  22,047

$  43,238

$  43,046

$  39,654

$  51,541

$  38,460

Segment Adjusted EBITDA margin

1,2

13.3%

17.0%

11.3%

23.0%

21.7%

19.9%

25.1%

21.3%

19.0%

Pulp and

Paperboard

Cross-Cycle

Financial Model

PRO FORMA IMPACT OF SALE OF

SPECIALTY MILLS

1 Non-GAAP measure –

See definition and reconciliation to most comparable GAAP measure.

34

Consumer Products

Including Specialty Mills

Specialty Mills

Pro Forma

Consumer Products

Excluding Specialty Mills

(Dollars in millions)

Twelve Months Ended

December 31, 2014

Twelve Months Ended

November 30, 2014

Pro Forma

Net sales

1,183.4

$                            

217.7

$                               

965.7

$                               

Adjusted operating income

1

54.8

$                                 

8.8

$                                    

46.0

$                                 

Depreciation and amortization expense

61.5

9.6

51.9

Adjusted EBITDA

1

116.3

$                               

18.4

$                                 

97.9

$                                 

RECONCILIATION OF GAAP TO NON-

GAAP: Q1’15 OUTLOOK

35

¹

See Appendix for the definition of Adjusted EBITDA as well as the reconciliation to the most comparable GAAP measure.

(Dollars in thousands)

From

To

Earnings before interest, income taxes, and

depreciation & amortization (EBITDA)

1

GAAP net earnings

$4,500

$7,500

Interest expense, net

8,000

8,000

Income tax provision

2,800

4,800

Depreciation and amortization expense

21,000

22,000

EBITDA

1

$  36,300

$  42,300

Directors' equity-based compensation expense

700

700

Adjusted EBITDA

1

$  37,000

$  43,000

Three Months Ending

March 31, 2015

Range of Estimate

Outlook

RECONCILIATION OF GAAP TO NON-

GAAP: STRATEGIC INVESTMENTS

36

¹

See Appendix for the definition of Adjusted EBITDA as well as the reconciliation to the most comparable GAAP measure.

Pulp Optimization

Warehouse

Automation

Paper Machine

Upgrades

Converting Line

Operating

Efficiencies

Sales & marketing

Efficiency

Stranded

Overhead

Operating Income

$37.5 -

$42.5

$32.7 -

$37.7

$14.9 -

$15.9

$11.4 -

$13.4

$20 -

$32

$10 -

$15

$7

Depreciation

$7.5

$5.7

$3.9

$1.4

-

-

-

EBITDA

$30 -

$35

$27 -

$32

$11-12

$10 -

$12

$20 -

$32

$10 -

$15

$7

Adjusted EBITDA

$30 -

$35

$27 -

$32

$11-12

$10 -

$12

$20 -

$32

$10 -

$15

$7

1

DEFINITIONS OF NON-GAAP

MEASURES

CLEARWATER PAPER DEFINITIONS OF NON-GAAP MEASURES

EBITDA is a non-GAAP measure that Clearwater Paper management uses as a

supplemental

performance

measure

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 and disposition related expenses, alternative fuel mixture

tax credits, sale of foam assets, expenses associated with the Metso litigation and costs

associated with directors equity based compensation.  The most directly comparable GAAP

measure is net earnings.  It should not be considered as an alternative to net earnings

computed under GAAP.

37

NORTH AMERICAN TISSUE

PROJECTED CAPACITY CHANGE

38

Source:  RISI and Other Industry

COMPANY

MILL/LOCATION

CONV/TAD

CAPACITY

CHANGE

ESTIMATED DATE

CHANNEL/BUSINESS/PRODUCTS

Announced New Capacity

Double Tree/Royal

Gila Bend, AZ

Conv

32,000

2015:Q1

PrimeLine PM from Adritz

Orchids Paper Products

Pryor, OK

Conv

30,000

2015:Q1

New PM from Recard

Confidential

Confidential

Conv

70,000

2015

Metso Advantage DCT

Confidential

Confidential

Conv

80,000

2015

Metso Advantage DCT 200TS

First Quality Tissue

Anderson, SC

TAD

70,000

2015:Q3

TAD PM Valmet

Von Drehle Corporation

Natchez, MS

Conv

35,000

2015:Q4

Valmet Advantage NTT

St. Croix Tissue (APP)

Baileyville, ME

Conv

66,000

2015:Q4

PrimeLine W8 PM from Adritz

Procter & Gamble

Box Elder, UT

TAD

80,000

2015:Q4

Retail/Brand/Bounty

First Quality Tissue

Anderson, SC

ATMOS

75,000

2016:Q1

Retail/P.L./BRT

St. Croix Tissue (APP)

Baileyville, ME

Conv

66,000

2016:Q2

PrimeLine W8 PM from Adritz

First Quality Tissue

Anderson, SC

TAD

70,000

2016:Q3

TAD PM likely Valmet

Net Capacity Change

674,000

Capacity Changes in the North American Tissue Industry