Appvion, Inc. Earnings Review

Third Quarter 2016

November 8, 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 2, 2016. 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

Adjusted EBIT & adjusted EBITDA increased 98% and 27%, respectively, compared to Q3 2015; compared to YTD 2015, adjusted EBIT & adjusted EBITDA increased 108% and 31%, respectively

YTD 2016 total company sales decreased 1.4% compared to YTD 2015; Q3 2016 total company sales decreased 6.3% when compared to Q3 2015

YTD 2016 thermal tag, label and entertainment (TLE) shipment volume continues to be strong and is higher than any other three quarter span seen previously

Q3 2016 thermal volume decreased 2% and sales increased 2.2%; carbonless volume and sales decreased approximately 11% and 17% , respectively

Strong performance in Q3 2016 in manufacturing spend and SG&A totaling $9.3 million more than offset unfavorable performance on carbonless volume compared to Q3 2015

Final Fox River payment of $7.5 million made and all obligations fulfilled

Third Quarter 2016 Overview

3

Total Company – YTD 2016 Overview(1)

4

EBITDA up 31% compared to YTD 2015 due to strong manufacturing improvement, SG&A spend and thermal price/mix

Favorable thermal price/mix, plus improved volume, somewhat offset carbonless volume decline impact

Favorable manufacturing performance from cost savings initiatives and mill spend

SG&A’s trend continues to be favorable

($ in millions) YTD 2016 YTD 2015 Change

Net Sales $ 523.3 $ 530.6 (1.4%)

Adj. EBIT $ 22.4 $ 10.8 107.4%

Adj. EBITDA $ 44.4 $ 33.9 31.0%

Adj. EBITDA Margin % 8.5% 6.4% 210 bps

H-3.8 W-7.55 Position-1.26 x 3.53

(1) Total company results exclude Encapsys (2) FX impact on YTD 2016 was ($2.7M)

Adjusted EBITDA w/ ESOP

$33.9

$44.4

$(12.2)

$5.2

$3.3

$14.2

$0

$5

$10

$15

$20

$25

$30

$35

$40

$45

$50

YTD 2015 Volume Price/Mix Mfg. Ops,net

SG&A /Other

YTD 2016(2)

Total Company – Q3 2016 Overview(1)

5

EBITDA up 27% compared to Q3 2015 due to strong cost savings initiatives and better mill spend

Unfavorable carbonless sales quarter over quarter were somewhat offset by the thermal business segment

Final $7.5 million Fox River payment made

SG&A lower by $3.3 million due to lower distribution and freight costs and lower compensation expense

($ in millions) Q3 2016 Q3 2015 Change

Net Sales $ 169.2 $ 180.6 (6.3%)

Adj. EBIT $ 7.3 $ 3.8 92.1%

Adj. EBITDA $ 14.4 $ 11.3 27.4%

Adj. EBITDA Margin % 8.5% 6.3% 220 bps

H-3.8 W-7.55 Position-1.26 x 3.53

(1) Total company results exclude Encapsys (2) No FX impact in Q3 2016

Adjusted EBITDA w/ ESOP

$11.3

$14.4

$(5.6) ($0.6)

$3.3

$6.0

$0

$5

$10

$15

$20

Q3 2015 Volume Price/Mix Mfg. Ops,

net

SG&A /

Other

Q3 2016(2)

Thermal Business Segment – Q3 2016 Overview

6

EBITDA is up $3.8 million vs. Q3 2015 and up $18.6 million vs. YTD 2015

Q3 2016 thermal TLE shipment volume was up 14% compared to the same period in 2015; YTD TLE up 12%

Overall, thermal shipment volume increased over 6% compared to YTD 2015 and over 4% compared to Q2 2016

($ in millions) Q3 2016 Q2 2016 Q3 2015

Volume Change (as compared to)

- 4.3% (2.0%)

Net Sales $ 101.6 $ 100.7 $ 99.4

Adj. EBIT $ 3.4 $ 5.6 $ (0.5)

Adj. EBITDA $ 6.6 $ 8.7 $ 2.8

Adj. EBITDA Margin % 6.5% 8.6% 2.8%

H-3.8 W-7.55 Position-1.26 x 3.53

$2.8

$6.6

$(0.5)

$(0.3)

$3.5

$1.1

$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

$7.0

Q3 2015 Volume Price/Mix Mfg. Ops,net

SG&A /Other

Q3 2016

(1) No FX impact in Q3 2016

(1)

Carbonless Business Segment – Q3 2016 Overview

7

Unfavorable carbonless volume and price/mix were somewhat offset by favorable SG&A and manufacturing performance

Specific customer losses negatively impacted shipment volume on the quarter and YTD

Compared to Q3 2015, specialty paper volume is up nearly 28%; up over 9% sequentially

($ in millions) Q3 2016 Q2 2016 Q3 2015

Volume Change (as compared to)

- (2.8%) (11.3%)

Net Sales $ 67.6 $ 72.8 $ 81.2

Adj. EBIT $ 5.4 $ 2.3 $ 6.6

Adj. EBITDA $ 8.8 $ 5.7 $ 10.5

Adj. EBITDA Margin % 13.0% 7.8% 12.9%

H-3.8 W-7.55 Position-1.26 x 3.53

$10.5

$8.8

$(5.1)

$(4.1)

$1.2

$6.3

$0.0

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

Q3 2015 Volume Price/Mix Mfg. Ops,

net

SG&A /

Other

Q3 2016(1)

(1) No FX impact in Q3 2016

Balance Sheet

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

($ in millions) Q3 2016 YE 2015

Net Debt $ 430.4 $ 413.5

Unused revolver plus cash

$ 10.3 $ 21.3

Capital Expenditures $ 5.8 $ 16.7

Operating Working Capital(1) $ 87.9 $ 77.7

Cash Conversion Days 36.9 33.2

Operating working capital increased $10.2 million from 2015 year end primarily due to an increase in accounts receivable of $5.3 million and a decrease in accounts payable of $6.3 million, offset by a reduction in inventory

Thermal shipment volumes for TLE are expected to remain strong compared to last year

Continued raw material cost savings and manufacturing spend improvements

A strong pipeline of cost reduction projects are expected to continue the positive impact

in Q4 of 2016

Q4 POS volume is expected to be in line with Q4 2015 volume

Carbonless segment volume expected to be in line with Q3 2016 and modestly lower than Q4 2015

9

Outlook for Q4 2016

Appendix

10

Total Company Net Sales(1)

11

$ millions

H-4.73 W-9.29 Position-0.17 x 1.91

$183.9

$166.2

$180.6$169.4

$180.5 $173.6$169.2

$0

$50

$100

$150

$200

$250

$300

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2015 2016

(1) Total company results exclude Encapsys

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

$13.6

$9.0

$11.3

$17.5 $17.1

$12.9

$14.4

$0

$2

$4

$6

$8

$10

$12

$14

$16

$18

$20

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2015 2016

Net Debt

13

$ millions

H-4.91 W-9.31 Position-0.17 x 1.91

$584$576

$561

$578 $576 $583

$402$414

$414

$429 $430

$350

$400

$450

$500

$550

$600

$650

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

2014 2015 2016

3rd Quarter 2016 & 2015 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) October 2, 2016 October 4, 2015 Change October 2, 2016 October 4, 2015 Change

Net sales $ 169.2 $ 180.6 -6.3% $ 523.3 $ 530.6 -1.4%

Gross profit 29.3 32.9 -10.9% 95.8 92.5 3.6%

Operating income 3.4 4.2 -19.0% 16.9 7.0 141.4%

Net loss from continuing operations (7.2) (11.0) 34.5% (14.3) (35.4) 59.6%

Other financial data(1)

Normal depreciation and amortization 6.7 7.1 -5.6% 19.9 20.6 -3.4%

EBITDA 10.1 11.3 -10.6% 36.8 27.6 33.3%

Adjusted EBITDA 14.4 11.3 27.4% 44.4 33.9 31.0%

Comparison as a % of net sales:

Gross margin 17.3% 18.2% -0.9% 18.3% 17.4% 0.9%

Operating income 2.0% 2.3% -0.3% 3.2% 1.3% 1.9%

Net loss from continuing operations -4.3% -6.1% 1.8% -2.7% -6.7% 4.0%

EBITDA 6.0% 6.3% -0.3% 7.0% 5.2% 1.8%

Adjusted EBITDA 8.5% 6.3% 2.2% 8.5% 6.4% 2.1%

For the

Three Months Ended

For the

Nine Months Ended

Reconciliation of Adjusted Operating Income

15

H-4.83 W-9.08 Position-0.5 x 1.09

($ in millions) October 2, 2016 October 4, 2015 October 2, 2016 October 4, 2015

Operating income $ 3.4 $ 4.2 $ 16.9 $ 7.0

Repair recovery boiler at Spring Mill $ - $ - $ - $ 2.1

Mark-to-Market for employee benefit plans $ 1.8 $ (2.6) $ 1.9 $ (1.1)

Severance $ - $ 2.2 $ 0.2 $ 2.8

Consulting & other legal fees $ 2.1 $ - $ 3.4 $ -

Adjusted operating income $ 7.3 $ 3.8 $ 22.4 $ 10.8

Three Months Ended Nine Months 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) October 2, 2016 October 4, 2015 October 2, 2016 October 4, 2015

Net Loss $ (7.2) $ 180.9 $ (14.5) $ 165.3

Gain on sale $ - $ (188.9) $ - $ (188.9)

Income from disc ops $ - $ (3.0) $ - $ (11.8)

Loss from continuing operations $ (7.2) $ (11.0) $ (14.5) $ (35.4)

Interest expense, net $ 10.2 $ 11.1 $ 30.6 $ 36.4

Provision for income taxes $ 0.1 $ 0.0 $ 0.2 $ 0.2

Depreciation $ 6.0 $ 6.5 $ 17.9 $ 18.9

Amortization $ 0.7 $ 0.6 $ 2.0 $ 1.7

Debt extinguishment expenses $ - $ 3.6 $ - $ 3.6

Foreign exchange loss (Gain) $ 0.1 $ 0.2 $ (0.2) $ 1.4

Other expense $ 0.2 $ 0.3 $ 0.8 $ 0.8

EBITDA $ 10.1 $ 11.3 $ 36.8 $ 27.6

Repair recovery boiler at Spring Mill $ - $ - $ - $ 2.1

Mark-to-Market for employee benefit plans $ 1.8 $ (2.6) $ 1.9 $ (1.1)

Consulting & other legal fees $ 2.1 $ - $ 3.4 $ -

Severance $ - $ 2.2 $ 0.2 $ 2.8

ESOP contributions and issuances $ 0.4 $ 0.4 $ 2.1 $ 2.5

Adjusted EBITDA $ 14.4 $ 11.3 $ 44.4 $ 33.9

For the For the

Three Months Ended Nine Months Ended

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)$ 4.0$ 5.6$ 3.4$ -$ 12.9$

Depreciation, amortization & other 3.2$ 3.2$ 3.3$ 3.0$ 12.7 3.2$ 3.1$ 3.2$ -$ 9.5$

Adjusted EBITDA 2.2$ (1.2)$ 2.8$ 5.2$ 9.0$ 7.1$ 8.7$ 6.6$ -$ 22.4$

Carbonless papers

Adjusted operating income 10.1$ 8.9$ 6.6$ 9.6$ 35.2$ 7.7$ 2.3$ 5.4$ -$ 15.4$

Depreciation, amortization & other 3.5 3.5 3.9 3.2 14.1 3.4$ 3.3$ 3.4$ -$ 10.2$

Adjusted EBITDA 13.6$ 12.4$ 10.5$ 12.8$ 49.4$ 11.1$ 5.7$ 8.8$ -$ 25.6$

Unallocated corporate charges

Adjusted operating income (2.9)$ (3.8)$ (2.5)$ (1.9)$ (11.1)$ (1.7)$ (2.7)$ (1.4)$ -$ (5.8)$

Depreciation, amortization & other 0.7 1.5 0.5 1.4 4.1 0.5$ 1.2$ 0.4$ -$ 2.2$

EBITDA (2.2)$ (2.3)$ (2.0)$ (0.5)$ (7.0)$ (1.2)$ (1.4)$ (1.0)$ -$ (3.6)$

Adjusted EBITDA 13.6$ 9.0$ 11.3$ 17.5$ 51.4$ 17.1$ 12.9$ 14.4$ -$ 44.4$

2015 2016

Condensed Balance Sheets

18

H-5.63 W-6.48 Position-1.58 x 1.13

($ in millions) October 2, 2016 January 2, 2016

Cash and cash equivalents 3.7$ 1.8$

Accounts receivable 46.9 41.6

Inventories 85.7 87.2

Other current assets 2.8 4.7

Total current assets 139.1 135.3

Property, plant and equipment, net 210.0 214.9

Other long-term assets 45.0 48.2

Total assets 394.1$ 398.4$

Accounts payable 44.8 51.1

Other current liabilities 61.5 53.4

Total current liabilities 106.3 104.5

Long-term debt 428.3 413.8

Other long-term liabilities 165.1 163.6

Total equity (305.6) (283.5)

Total liabilities & equity 394.1$ 398.4$