Appvion, Inc. Earnings Review

Fourth Quarter 2015

March 7, 2016

Forward-Looking Statements

This presentation contains forward-looking statements. The words “will,” “may,” “should,” “believes,” “anticipates,” “intends,” “estimates,” “expects,” “projects,” “plans,” “seek” or similar expressions are intended to identify forward-looking statements. All statements in this news release, other than statements of historical fact, including statements which address Appvion’s strategy, future operations, future financial position, estimated revenues, projected costs, prospects, plans and objectives of management and events or developments that Appvion expects or anticipates will occur, are forward-looking statements. All forward-looking statements speak only as of the date on which they are made. They rely on a number of assumptions concerning future events and are subject to a number of risks and uncertainties, many of which are outside the Company’s control that could cause actual results to differ materially from such statements. These risks and uncertainties include, but are not limited to, the factors listed under “Item 1A - Risk Factors” in the Annual Report on Form 10-K for the year ended January 3, 2015. Many of these factors are beyond Appvion’s ability to control or predict. Given these uncertainties, you should not place undue reliance on the forward-looking statements. Appvion disclaims any obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Non-GAAP Financial Measures

This presentation refers to certain non-U.S. GAAP financial measures. A reconciliation of the non-U.S. GAAP financial measures is attached in the appendix of this presentation.

2

Full year improved manufacturing operations of $27.3 million and SG&A cost reduction initiatives of $11.2 million offset volume declines compared to 2014

Negative thermal segment impact from product price and mix of $37.1 million was largely due to point-of-sale (POS) price and foreign exchange

Q4 2015 adjusted EBITDA of $17.5 million was better by $3.9 million compared to Q4 2014 adjusted EBITDA of $13.6 million or 28.7%

Shipment volume for Appvion’s tag, label, and entertainment (TLE) unit was flat year on year compared to 2014; adjusted for the extra week in Q4 2014, volume for the year was up 1.8%. Q4 2015 was 3.2% higher than Q4 2014 and adjusted for the extra week, volume was better 11.1%

Carbonless adjusted full year operating income rose 28.5% compared to 2014, on a volume decline over 6%; adjusted for the extra week in Q4 2014, volume declined roughly 4.5%

The average selling price in Q4 2015 for POS receipt paper increased over 4% from Q3 2015

Full Year and Q4 2015 Overview

3

Total Company – 2015 Overview(1)

4

YTD price was down by $(23.3) million due to POS receipt paper. Along with Euro exchange rates of $(5.6) million and TLE product migration of approximately $(5.0) million

Negative volume impact due to contracting carbonless market, somewhat offset by growing specialty business; thermal volume slightly down due to POS

Favorable manufacturing and SG&A added $38.5 million

($ in millions) 2015 2014 Change

Net Sales $ 700.0 $ 764.7 (8.5%)

Adj. EBIT $ 18.5 $ 32.9 (43.8%)

Adj. EBITDA $ 51.4 $ 65.3 (21.3%)

Adj. EBITDA Margin % 7.3% 8.5% (120Bps)

H-3.8 W-7.55 Position-1.26 x 3.53

(1) Total company results exclude Encapsys

$65.3

$51.4$(2.4)

$27.3

$11.2

$(14.3)

$(35.7)

$0$5

$10$15$20$25$30$35$40$45$50$55$60$65$70

FY 2014 SPN Maintenance Exp Volume Price /

Mix

Mfg. Ops,

net

SG&A /

Other

FY 2015

Adjusted EBITDA w/ ESOP

Total Company – Q4 2015 Overview(1)

5

Q4 2015 price negatively impacted by lower-than- average selling prices within POS receipt paper and unfavorable impact of the strong USD vs. the Euro rate resulted in $5.0 million of negative price

Contracting carbonless market somewhat offset by growing specialty business and strengthening thermal business

Favorable operations and SG&A helped offset negative performance on volume/price/mix

($ in millions) Q4 2015 Q4 2014 Change

Net Sales $ 169.4 $ 184.8 (8.3%)

Adj. EBIT $ 9.9 $ 4.5 120.0%

Adj. EBITDA $ 17.5 $ 13.6 28.7%

Adj. EBITDA Margin % 10.3% 7.4% 290Bps

H-3.8 W-7.55 Position-1.26 x 3.53

(1) Total company results exclude Encapsys

$13.6

$17.5

$(5.8)

$(7.3)

$14.0

$3.0

$0

$5

$10

$15

$20

$25

Q4 2014 Volume Price /

Mix

Mfg. Ops,

net

SG&A /

Other

Q4 2015

Thermal Business Segment – Q4 2015 Overview

6

Q4 2015 thermal shipment volume declined from Q3 2015 record shipment volumes, however was up 4.2% compared to the same period in 2014

Favorable volume, manufacturing operations, and SG&A savings more than offset negative thermal price

Adjusting for the extra week in 2014, positive volume impact would have been roughly $1.4 million more favorable

($ in millions) Q4 2015 Q3 2015 Q4 2014

Volume Change (as compared to)

- (6.0%) 4.2%

Net Sales $ 95.8 $ 99.4 $ 97.6

Adj. EBIT $ 2.2 $ (0.5) $ (2.2)

Adj. EBITDA $ 5.2 $ 2.8 $ 1.4

Adj. EBITDA Margin % 5.4% 2.8% 1.4%

H-3.8 W-7.55 Position-1.26 x 3.53

$1.4

$5.2

$1.0

$2.7

$(6.3)

$6.4

-$6.0

-$4.0

-$2.0

$0.0

$2.0

$4.0

$6.0

Q4 2014 Volume Price / Mix Mfg. Ops,

net

SG&A /

Other

Q4 2015

Carbonless Business Segment – Q4 2015 Overview

7

Favorable carbonless paper manufacturing spending helped offset market volume declines in Q4 2014 to Q4 2015

Higher international mix negatively impacted price/mix

Adjusting for the extra week in 2014, negative volume impact would have been roughly $2.6 million better

($ in millions) Q4 2015 Q3 2015 Q4 2014

Volume Change (as compared to)

- (6.3%) (14.2%)

Net Sales $ 73.6 $ 81.2 $ 87.2

Adj. EBIT $ 9.6 $ 6.6 $ 6.8

Adj. EBITDA $ 12.7 $ 10.5 $ 10.6

Adj. EBITDA Margin % 18.4% 12.9% 12.2%

H-3.8 W-7.55 Position-1.26 x 3.53

$10.6

$12.7

$(6.8)

$(1.0)

$7.6

$2.3

$0.0

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

$14.0

Q4 2014 Volume Price / Mix Mfg. Ops,

net

SG&A /

Other

Q4 2015

Balance Sheet

8 (1) Operating working capital defined as receivables plus inventory less payables

($ in millions) YE 2015 YE 2014

Net Debt $ 421.6 $ 589.5

Unused revolver plus cash

$ 21.3 $ 21.3

Capital Expenditures $ 16.7 $ 19.7

Operating Working Capital(1) $ 77.7 $ 86.4

Cash Conversion Days

33.2 38.6

Q4 2015 Net Debt & Unused revolver plus cash include the impact of the Encapsys transaction and reset of debt covenants

Operating working capital declined $8.7 million from 2014 year end

Thermal shipment volumes are expected to remain strong

Average price for POS receipt paper will benefit from an increase of 4-6% effective

January 1st that will be realized in Q1-Q2 of 2016

Global TLE price increase announced for April 2016

Continued raw material cost savings and manufacturing spend improvements

Ongoing capital spending related to January 2017 Boiler MACT compliance

9

Outlook

Appendix

10

Total Company Net Sales(1)

11

$ millions

H-4.73 W-9.29 Position-0.17 x 1.91

$193.5$198.5

$188.0 $184.8 $183.8

$166.2

$180.6$169.4

$0

$50

$100

$150

$200

$250

$300

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2014 2015

(1) Total company results exclude Encapsys

Complete

Total Company Adjusted EBITDA(1&2)

12

$ millions

(1) A reconciliation of non-GAAP financial measures is in the attached appendix. Numbers presented have been adjusted for rounding. (2) Total company results exclude Encapsys

H-4.91 W-9.29 Position-0.17 x 1.91

$15.4

$17.6

$18.7

$13.6 $13.6

$9.0

$11.3

$17.5

$0

$2

$4

$6

$8

$10

$12

$14

$16

$18

$20

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2014 2015

Net Debt

13

$ millions

H-4.91 W-9.31 Position-0.17 x 1.91

$517

$573

$551

$595 $597$588

$574

$589 $587$593

$411

$422

$350

$400

$450

$500

$550

$600

$650

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2013 2014 2015

4th Quarter 2015 & 2014 Earnings Summary(1)

14

(1) A reconciliation of non-GAAP financial measures is in the attached appendix.

H-5.19 W-9.05 Position-0.61 x 1.31

% %

($ in millions) January 2, 2016 January 3, 2015 Change January 2, 2016 January 3, 2015 Change

Net sales $ 169.4 $ 184.8 -8.3% $ 700.0 $ 764.7 -8.5%

Gross profit 31.1 (13.1) -337.4% 123.6 107.4 15.1%

Operating income 3.5 (60.2) 105.8% 10.5 (56.9) 118.5%

Net (loss) income (6.7) (70.5) 90.5% 158.6 (92.8) 270.9%

Other financial data(1)

Normal depreciation and amortization 6.2 7.5 -17.3% 26.8 27.7 -3.2%

EBITDA 9.7 (52.7) 118.4% 37.3 (29.2) -227.7%

Adjusted EBITDA 17.5 13.6 28.7% 51.4 65.3 -21.3%

Comparison as a % of net sales:

Gross margin 18.4% -7.1% 25.5% 17.7% 14.0% 3.7%

Operating income 2.1% -32.6% 34.7% 1.5% -7.4% 8.9%

Net (loss) income -4.0% -38.1% 34.1% 22.7% -12.1% 34.8%

EBITDA 5.7% -28.5% 34.2% 5.3% -3.8% 9.1%

Adjusted EBITDA 10.3% 7.4% 2.9% 7.3% 8.5% -1.2%

For the

Three Months Ended

For the

Year Ended

Reconciliation of Adjusted Operating Income

15

H-4.83 W-9.08 Position-0.5 x 1.09

($ in millions) January 2, 2016 January 3, 2015 January 2, 2016 January 3, 2015

Operating income (loss) $ 3.5 $ (60.2) $ 10.5 $ (56.9)

Repair recovery boiler at Spring Mill $ 1.6 $ - $ 3.7 $ -

Fox River settlement - - - 24.0

Mark-to-Market for employee benefit plans 4.6 64.4 3.5 63.2

Severance 0.3 - 3.1 -

ITC, duties defense and other legal fees - 0.3 - 2.7

Adjusted operating income $ 9.9 $ 4.5 $ 20.7 $ 32.9

Three Months Ended Year Ended

For the For the

Reconciliation of Non-GAAP EBITDA & Adjusted EBITDA

(1)

16

H-5.24 W-9.08 Position-0.42 x 1.22

(1) Pro Forma Non-GAAP EBITDA & Adj. EBITDA excludes Encapsys

($ in millions) January 2, 2016 January 3, 2015 January 2, 2016 January 3, 2015

Net income (loss) $ (6.7) $ (70.5) $ 158.6 $ (92.8)

Gain on sale $ 0.2 $ - $ (188.6) $ -

Income from disc ops $ - $ (4.0) $ (11.9) $ (16.2)

Loss from continuing operations $ (6.5) $ (74.5) $ (41.9) $ (109.0)

Interest expense, net $ 9.6 $ 13.0 $ 46.0 $ 49.1

Provision for income taxes $ - $ 0.2 $ 0.2 $ 0.3

Depreciation $ 5.6 $ 6.9 $ 24.5 $ 25.4

Amortization $ 0.6 $ 0.6 $ 2.3 $ 2.3

Debt extinguishment expenses $ - $ - $ 3.6 $ -

Foreign exchange loss $ 0.2 $ 0.9 $ 1.6 $ 2.1

Other expense $ 0.2 $ 0.2 $ 1.0 $ 0.6

EBITDA $ 9.7 $ (52.7) $ 37.3 $ (29.2)

Repair recovery boiler at Spring Mill $ 1.6 $ - $ 3.7 $ -

Fox River settlement $ - $ - $ - $ 24.0

Mark-to-Market for employee benefit plans $ 4.6 $ 64.4 $ 3.5 $ 63.2

ITC, duties defense and other legal fees $ - $ 0.3 $ - $ 2.7

Severance $ 0.3 $ - $ 3.1 $ -

ESOP contributions and issuances $ 1.3 $ 1.7 $ 3.8 $ 4.7

Adjusted EBITDA $ 17.5 $ 13.6 $ 51.4 $ 65.3

For the For the

Three Months Ended Year Ended

Total Company

Segment EBITDA

17

H-5.19 W-9.64 Position-0.25 x 1.39

($ in millions) Year Ended Year Ended

QTR 1 QTR 2 QTR 3 QTR 4 FY QTR 1 QTR 2 QTR 3 QTR 4 FY

Thermal papers

Adjusted operating income (1.0)$ (4.3)$ (0.5)$ 2.2$ (3.6)$ 3.1$ 6.7$ 6.4$ (2.2)$ 14.0$

Depreciation, amortization & other 3.2$ 3.2$ 3.3$ 3.0$ 12.7 3.2$ 3.4$ 3.1$ 3.6$ 13.5$

Adjusted EBITDA 2.2$ (1.2)$ 2.8$ 5.2$ 9.0$ 6.3$ 10.1$ 9.5$ 1.4$ 27.5$

Carbonless papers

Adjusted operating income 10.1$ 8.9$ 6.6$ 9.6$ 35.2$ 7.6$ 4.8$ 8.2$ 6.8$ 27.4$

Depreciation, amortization & other 3.5 3.5 3.9 3.2 14.1 3.4 3.3 3.5 3.8 14.0

Adjusted EBITDA 13.6$ 12.4$ 10.5$ 12.8$ 49.4$ 11.0$ 8.2$ 11.8$ 10.6$ 41.4$

Unallocated corporate charges

Adjusted operating income (2.9)$ (3.8)$ (2.5)$ (1.9)$ (11.1)$ (2.6)$ (2.7)$ (3.2)$ (0.1)$ (8.6)$

Depreciation, amortization & other 0.7 1.5 0.5 1.4 4.1 0.7 2.0 0.6 1.7 5.0

EBITDA (2.2)$ (2.3)$ (2.0)$ (0.5)$ (7.0)$ (1.9)$ (0.7)$ (2.6)$ 1.6$ (3.6)$

Adjusted EBITDA 13.6$ 9.0$ 11.3$ 17.5$ 51.4$ 15.4$ 17.6$ 18.7$ 13.6$ 65.3$

2015 (1) 2014 (1)

Condensed Balance Sheets

18

H-5.63 W-6.48 Position-1.58 x 1.13

($ in millions) January 2, 2016 January 3, 2015

Cash and cash equivalents 1.8$ 2.7$

Accounts receivable 41.6 48.8

Inventories 87.2 92.9

Other current assets 4.7 6.8

Assets of discontinued operations - 2.4

Total current assets 135.3 153.6

Property, plant and equipment, net 214.9 223.5

Other long-term assets 56.3 59.2

Assets of discontinued operations - 13.0

Total assets 406.5$ 449.3$

Accounts payable 51.1 55.6

Other current liabilities 53.4 65.4

Liabilities of discontinued operations - 3.4

Total current liabilities 104.5 124.4

Long-term debt 421.9 587.4

Other long-term liabilities 163.6 166.9

Liabilities of discontinued operations - 1.5

Total equity (283.5) (430.9)

Total liabilities & equity 406.5$ 449.3$

Reconciliation to Bank EBITDA

3/8/2016 19

2015

Reported ($ In millions): 51.4$

Additional Brazilian basestock costs in Q1 and

Q2 2015 4.0$

Lower SG&A cost in Q1 and Q2 in 2015 as a

result of the Encapsys sale 1.6$

Noncash asset write-off due to Encapsys sale 1.2$

All Other 0.3$

EBITDA for covenant calculation purposes 58.5$