Glatfelter : 2024 Q1 Earnings Presentation

2024 First Quarter Earnings Conference Call

Thomas Fahnemann, President & CEO

Ramesh Shettigar, SVP, CFO & Treasurer

May 9, 2024

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", "plans", "targets", and similar expressions to identify forward-looking statements. Any such statements are

based on the Company'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, which are described in the Company's filings with the U.S. Securities and Exchange Commission ("SEC"), including those set forth in the Risk Factors section and under the heading "Forward-Looking Statements" in the Company's most recently filed Annual Report on Form 10-K and Quarterly Report on Form 10-Q, which are available on the SEC's website at www.sec.gov. 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 the Company 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.

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.

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Highlights - Q1 2024

• Q1 2024 adjusted EBITDA of $23.8 million, lower by $1.0 million compared to Q1 2023
• Airlaid Materials EBITDA lower by ~$9 million versus Q1 2023 driven by adverse price- cost gap, lower shipments and lower production
• Composite Fibers EBITDA higher by ~$2 million versus Q1 2023 mainly driven by price-cost gap improvements
• Spunlace EBITDA higher by ~$5 million versus Q1 2023 primarily driven by price-cost gap improvements, and turnaround strategy actions (cost and operational improvements)
• Adjusted free cash flow lower by ~$9 million versus Q1 2023 largely driven by higher cash interest payments and higher working capital usage
• Leverage, based on covenants in our credit agreement, was 3.7x* at March 31, 2024
• Achieved significant merger regulatory milestone with expiration of the HSR waiting period and anticipate closing of merger transaction to be in the second half of 2024

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1. - Debt covenant compliance ratio of 3.7x as of March 31, 2024 versus threshold of 4.25x For a reconciliation of these measures to U.S. GAAP financial measures, see slides 18 to 23

Financial Summary

On a GAAP basis, net loss from continuing operations for Q1 2024 was $26.2 million or ($0.58) per share

compared to net loss from continuing operations of $13.2 million or ($0.29) per share in Q1 2023

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For a reconciliation of these measures to U.S. GAAP financial measures, see slides 18 to 23

Airlaid Materials Q1 2024 Highlights

USD in Thousands	Q1 2023	Q4 2023	Q1 2024
Tons Shipped (MT)	39,827	37,293	38,341
Net Sales	159,441	127,514	131,529
Operating Income	13,914	8,371	4,958
EBITDA	21,600	15,959	12,622
EBITDA Margin	13.5%	12.5%	9.6%

$21.6	$(20.3)				USD in Millions
			$17.9	$(3.8)
					$(1.0)	$12.6
		$(1.8)
Q1 2023	Selling	Volume	RM, Energy Operations	FX	Q1 2024
EBITDA	Price	& Mix	& Other	& Other		EBITDA
			Inflation

• Revenue down 18% versus Q1 2023 on constant currency

• • Volume down 4% vs. Q1 2023 o Hygiene down 13%
    o Home Care down 4% o Wipes up 5%
    o Tabletop up 1%
• Selling price $20.3 million lower versus Q1 2023 which reflects lower raw material costs pass-through and selective pricing actions to regain volume
• Raw material, energy & other inflation favorable $17.9 million mainly due to lower raw material costs of $15.3 million and energy costs of $1.9 million
• Operations unfavorable by $3.8 million mainly due to lower production of ~2,800 MT (7%) to manage inventory levels and higher wage inflation
• FX, net of currency hedging, was $1.0 million unfavorable

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Composite Fibers Q1 2024 Highlights

USD in Thousands	Q1 2023	Q4 2023	Q1 2024
Tons Shipped (MT)	24,818	22,770	25,002
Net Sales	132,591	115,486	116,150
Operating Income	6,127	7,054	8,259
EBITDA	10,092	10,959	12,023
EBITDA Margin	7.6%	9.5%	10.4%

$13.6 $(0.8)

$(0.2) $12.0

$10.1 $(11.1)

			$0.4
Q1 2023	Selling	Volume	RM,	Operations	FX	Q1 2024
EBITDA	Price	& Mix	Energy &	& Other		EBITDA
					Other
					Inflation

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• Revenue down 13% versus Q1 2023 on constant currency

• Volume up 1% vs. Q1 2023

• 1. Composite Laminates up 43% o Metallized Products up 28%
     o Technical Specialties down 26% (excl. Ober-Schmitten sales up 13%) o Wallcover down 4%
     o Food & Beverage down 1%
• Selling prices were $11.1 million lower versus Q1 2023 driven by targeted pricing actions to retain volume and lower raw material costs pass-through to floating customers
• Raw material, energy, and other inflation favorable $13.6 million mainly due to lower raw materials costs of $10.6 million and energy cost of $2.9 million
• Operations unfavorable by $0.8 million mainly due to lower production
• FX, net of currency hedging, was $0.2 million unfavorable

Spunlace Q1 2024 Highlights

USD in Thousands	Q1 2023	Q4 2023	Q1 2024
Tons Shipped (MT)	16,420	15,571	16,091
Net Sales	86,723	77,982	80,130
Operating Income / (Loss)	(2,023)	2,322	2,764
EBITDA	1,069	5,710	6,137
EBITDA Margin	1.2%	7.3%	7.7%

$2.4 $0.2 $6.1

$7.4

$1.1 $(4.2)

• Revenue down 8% versus Q1 2023 on constant currency
• • Volume down 2% vs. Q1 2023

• 1. Critical Cleaning up 11% o Healthcare down 8%
     o Consumer Wipes down 4% o Hygiene down 3%
• Selling prices were $4.2 million lower versus Q1 2023 reflecting lower raw material costs pass-through and energy surcharges
• Raw material, energy, and other inflation favorable $7.4 million mainly driven by lower raw material costs of $7.0 million
• Operations favorable by $2.4 million due to lower operational spending, improved operations, and turnaround actions
• FX, net of currency hedging, was $0.2 million favorable

$(0.8)
Q1 2023 EBITDA Selling Price Volume& Mix RM, Energy &	Operations &	FX	Q1 2024 EBITDA
			Frieght PPV	Other

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Corporate Costs and Other Financial Items

Details of Other and Unallocated

The following sets forth details of 'Other and Unallocated' amounts presented in the Company's Segment

Financial Information included in total operating income in the earnings release.

USD in M illions	Q1 2023 Q1 2024

Timberland sales and related costs

Strategic initiatives

Turnaround strategy costs

Special items excluded from adjusted earnings

Corporate costs excluding depreciation and amortization*

Depreciation and amortization costs

Total corporate costs

Total corporate costs & other financial items

• Q1 2024 Corporate expenses lower $0.7 million versus Q1 2023
• • Lower professional services spending versus Q1 2023
• Strategic initiatives costs higher $10.2 million versus Q1 2023
• • Driven mainly by professional services fees related to announced merger with Berry Global's 'HHNF' business

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Notes:

1. Corporate costs are primarily comprised of employee costs, legal fees, and professional services fees. The sum of individual amounts set forth above may not agree to the column totals due to rounding.

Cash Flow

• Q1 2024 Adjusted Free Cash Flow	(in millions)		Q1 2023		Q1 2024
lower by ~$9 million versus last year
Adjusted EBITDA	$24.8	$23.8
− Adjusted EBITDA lower ~$1 million
Change in working capital (*)	(34.3)	(36.4)
− Interest paid increased by ~$5 million
Taxes paid	(1.7)	(2.8)
related to higher interest rates and debt
refinancing in Q1 2023	Interest paid	(5.0)	(10.4)
− Higher working capital usage of ~$2
Other	(14.5)	(7.7)
million
− Taxes paid higher by ~$1 million	Cash Flow from continuing Operations	($30.6)	($33.5)
Less: Capital expenditures	(9.5)	(7.5)
− CAPEX lower by ~$2 million
	Free Cash Flow	($40.1)	($41.0)
		Less: Adjustments to Free Cash Flow (1)		11.9		4.1
		Adjusted Free Cash Flow	($28.2)	($36.9)

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(*) - Working capital is defined as accounts receivable plus inventories less accounts payable

Notes:

(1) - Appendix includes the details for the Adjustments to Free Cash Flow in page 21

Balance Sheet and Liquidity

• Leverage, as calculated in accordance with the covenants of our credit agreement is 3.7x* on March 31, 2024
• Available liquidity of approximately $84 million

(in millions)	31-Dec-22	31-Dec-23	31-Mar-24
Cash	$110.7	$50.3	$30.2
Debt
Current portion of long term debt	40.4	1.0	-
Short term debt	11.4	6.1	7.5
$500 million 4.75% bond	500.0	500.0	500.0
Term Loans 1.3% - 2.4% due 2022 - 2025	185.1	-	-
11.25% Term Loan, due 2029	-	271.2	265.5
Revolving credit agreement	118.7	99.5	119.2
Unamortized deferred financing costs	(10.5)	(17.5)	(16.5)
Total Debt	$845.1	$860.3	$875.7
Net Debt	$734.4	$810.1	$845.5
Shareholders' Equity	$318.0	$256.9	$223.3
TTM Adj. EBITDA	$98.8	$92.6	$91.6
Available Liquidity	$87.4	$135.3	$83.6

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Notes:

1. - Debt covenant compliance ratio of 3.7x as of March 31, 2024 includes additional add backs permitted under credit agreement (max of 4.25x) The sum of individual amounts set forth above may not agree to the column totals due to rounding.