FORWARD-LOOKING AND

CAUTIONARY STATEMENTS

This Presentation on behalf of KP Tissue Inc. (the “Corporation” or “KPT”) does not constitute or form part of any offer for sale or solicitation of any offer to buy orsubscribe for any securities nor shall it or any part of it form the basis of or be relied on in connection with, or act as any inducement to enter into, any contract orcommitment whatsoever.

The information contained in this Presentation does not purport to be all-inclusive. This Presentation is being supplied to you solely for your information and may not bereproduced, further distributed or published in whole or in part by any other person. Neither this Presentation nor any copy of it may be taken or transmitted into ordistributed any other jurisdiction which prohibits the same except in compliance with applicable securities laws. Any failure to comply with this restriction may constitute aviolation of securities law.

No representation or warranty, express or implied, is made or given by or on behalf of the Company or any of the directors, officers or employees of any such entities as tothe accuracy, completeness or fairness of the information or opinions contained in this Presentation and no responsibility or liability is accepted by any person for suchinformation or opinions. In furnishing this Presentation, the Company does not undertake or agree to any obligation to provide the attendees with access to any additionalinformation or to update this Presentation or to correct any inaccuracies in, or omissions from, this Presentation that may become apparent. The information and opinionscontained in this Presentation are provided as at the date of this Presentation. The contents of this Presentation are not to be construed as legal, financial or tax advice.Each person receiving this Presentation should contact his, her or its own legal adviser, independent financial adviser or tax adviser for legal, financial or tax advice.

Certain statements in this presentation about the Corporation and Kruger Products L.P. (“KPLP”) as it relates to their current and future plans, expectations and intentions,results, levels of activity, performance, goals or achievements or any other future events or developments constitute forward-looking statements. The words “may”, “will”,“would”, “should”, “could”, “expects”, “plans”, “intends”, “trends”, “indications”, “anticipates”, “believes”, “estimates”, “predicts”, “likely” or “potential” or the negative orother variations of these words or other comparable words or phrases, are intended to identify forward-looking statements. The forward-looking information is based oncertain key expectations and assumptions made by the Corporation or KPLP, including the continued growth of the U.S. private label market and the continued growth insales of TAD products in the U.S., orders for the TAD machine’s products, the amount and timing of distributions made by KPLP, and Kruger Inc.’s (“Kruger”) cashrequirements. The financial outlook that KPLP Management provides concerning the potential incremental Adjusted EBITDA generated by TAD products may be consideredforward-looking information and is based on additional key expectations and assumptions, including but not limited to (i) limited incremental overhead relating to theoperation of the TAD machine and distribution and sale of products, (ii) the TAD machine operating at near full capacity, (iii) a cost of pulp and energy and a selling price offinished products based on recent prices, adjusted for inflation and (iv) a foreign exchange rate between the Canadian and U.S. dollars approximating current levels. Thepurpose of the outlook is to provide the reader with an indication of management’s expectations, at the date of this presentation, regarding KPLP’s future financialperformance. Readers are cautioned that this information may not be appropriate for other purposes. Although the Corporation and KPLP believe that the expectations andassumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information since noassurance can be given that such expectations and assumptions will prove to be correct.

Unless otherwise stated, references in this presentation to market shares or KPT’s market leadership are based on Nielsen dollar market share data and managementestimates.

2

Growing US platform with significant potential upside from private

label/TAD Products

Strong customer relationships - #1 in CPG survey for 4 consecutive years

Away-From-Home (AFH) – Extend and leverage AFH N.A. platform

Solid track record of EBITDA growth – YTD up 14%

Leading Canadian tissue brands with #1 overall market share

Strong free cash flow with attractive dividend yield

3

INVESTMENT HIGHLIGHTS

CORPORATE STRUCTURE

4

Scott Paper Limited

Commences Operations

Kruger acquires 100% of Scott Paper Limited

from KC for $450 million

Acquisition of

Memphis Plant

Successfully completes

transition of KC brands

KP Tissue IPO

Commercial launch

TAD Project

1923 1997 2002 2007 2012 2013

Acquisition of

Metro Paper

2014

CORPORATE TIMELINE

5

Focus on high-return

CAPEX including Crabtree

expansion

2016

C O N S U M E R AWAY - F R O M - H O M E

Not included in the revenue above is the “Other” segment which had revenue of $19.3 million in FY2014 6

BUSINESS SEGMENTS

LTM Revenue - $950 million

(1) Included is the “Other” segment which had LTM revenue of $17 million

Consolidated LTM Revenue - $1.2 billion (1)

LT M R e v e n u e $ 9 5 0 m i l l i o n LT M R e v e n u e $ 2 2 2 m i l l i o n

Canada61%

U.S.35%

Mexico4%

Canada U.S. Mexico

$37 million+49.2% yr/yr

$537 million+1.8% yr/yr

$314 million+9.8% yr/yr

7

GEOGRAPHIC REVENUES – YTD FY2016

($C millions)

Reaching over 80% of the North American population KPLP represents one-third of total Canadian capacity

New Westminster, BC

Memphis, TN

Crabtree, QC

Sherbrooke, QCGatineau, QC

Mississauga, ON Scarborough, ON

Trenton, ON

8

MANUFACTURING AND DISTRIBUTION

Optimal shipping rangeapproximately 500 miles

CANADA’S LEADING TISSUE COMPANY

• Leading brands: Scotties, Cashmere,

Purex, SpongeTowels

• In 2016, once again, Cashmere was the

best-selling bathroom tissue in Canada.

In Western Canada, Purex

was again the top brand

9

Source: Nielsen; dollar market share for the 52-week period ended September 17, 2016.

Bathroom Tissue Facial Tissue Paper Towel

#136.8%

#131.5%

#223.8%

21.1%

10.2%

4.4%

20.3%

1.0%

18.2%

9.8%

32.3%

2.6%

CANADA’S LEADING TISSUE COMPANY

CONSUMER MARKET SHARE

10

of all branded tissue product sales in

Canada(1)

of all branded tissue product sales at the 5 largest Canadian

Grocers(1)

(1) ACNielsen data – October 15, 2016, on a dollar basis. 11

STRONG CUSTOMER/RETAILER

RELATIONSHIPS

Out of over 20 of the Largest CPG Companies in Canada(1)

Vendor in 2010

1

Vendor in 2011 and 2012

Vendor in 2013, 2014, 2015 and 2016

1

2

(1) Third-party survey evaluating, amongst other things, quality of personnel and services 12

STRONG CUSTOMER/RETAILER

RELATIONSHIPS

(1) Third-party annual survey of Canadian retailers, evaluating amongst other things, quality of personnel and services

SO

FT

NE

SS

B U L K

A significant portion of KPLP’s consumer tissue is manufactured using SRC technology

• Recycled fibre, better quality

• Lower production costs

TAD – Through-Air-Dried

• Softer, bulkier, premium products

• Cost advantage

TADProcess

LDC

WC

Note: WC, LDC, SRC and TAD are the acronyms for wet crepe, light dry crepe, single recrepe and through-air-dried, respectively.

SRC

Objective: Optimum Softness while Maximizing Bulk to reduce unit cost

13

TECHNOLOGICAL ADVANTAGE

AWAY-FROM-HOME (AFH)

• Canadian market share leader with approximately 30%

• 19% of Total Company LTM revenue

• AFH covers multiple market channels:

– Foodservice, property management, lodging, health care, public facilities, education and manufacturing

• Our business is split approximately 2/3’s in Canada and 1/3 in the U.S.

14

AWAY-FROM-HOME (AFH)

MARKET SHARE IN CANADA

15

0%

5%

10%

15%

20%

25%

30%

35%

Source: Industry data and management estimates 2016, based on total Canadian market

KPLP is the Canadian market leader in the AFH segment.

PULP INPUT PRICES

• Pulp prices (NBSK) rose sequentially in 2016 in both USD and CAD and also year-over-year in CAD. Eucalyptus prices (BEK, not shown here) were lower however

• Based on industry information, management expects pulp prices in USD to remain relatively stable in the near term. The continuing weak and volatile CAD will further create fluctuations in pulp input costs during 2016.

Source: Management estimate using 3 industry sources

$700

$800

$900

$1,000

$1,100

$1,200

$1,300

$1,400

Dec-

12

Mar

-13

Jun-

13

Sep-

13

Dec-

13

Mar

-14

Jun-

14

Sep-

14

Dec-

14

Mar

-15

Jun-

15

Sep-

15

Dec-

15

Mar

-16

Jun-

16

Sep-

16

NBSK North American List Prices per MT

USD

CAD

(USD average 1.30 in Q3 2016

compared to 1.30 in Q3 2015)

16

KEY BUSINESS HIGHLIGHTS

& STRATEGY

17

BUSINESS HIGHLIGHTS

18

Maintained positive Adjusted EBITDA trend for our 4th year as a public company – LTM run rate improvement to $140 million vs. $126 million in FY2015

Offset pulp increase/Cdn. dollar weakness by leading a price increase in Consumer Canada / AFH

Implementing a $5 million cost reduction program

Maintained #1 market share in Bathroom Tissue and Facial Tissue and #2 in Paper Towels

Continued to ramp-up TAD Project - on target

Launched two new branded TAD products: Cashmere UltraLuxe Bathroom Tissue and SpongeTowels UltraStrong, well received by retailers and consumers

BUSINESS HIGHLIGHTS

19

White Cloud rated #1 best all-around U.S. bathroom tissue brand*

Implementing action plan to improve AFH profitability

Capital Program 2016/2017 of $145-160 million:

low risk/high return

government financing at low interest rates

additional capacity to support Canadian Consumer, AFH and U.S. Private Label growth

* Based on a ranking of 21 toilet paper products in the U.S. by a leading consumer publication October 2015

923955

1,046

1,139 1,189

2012 2013 2014 2015 LTM09/16

Revenue

111 116

122 126

140

2012 2013 2014 2015 LTM09/16

Adjusted EBITDA (1)

67.8

82.2 81.6 78.4

90.9

2012 2013 2014 2015 LTM09/16

Operating Income

12.0% 12.2%

11.6%11.1%

11.8%

2012 2013 2014 2015 LTM09/16

Adjusted EBITDA Margin

20

FINANCIAL PERFORMANCE TREND

(1) Non-GAAP measure – see MD&A for the definition and reconciliation of the most comparable GAAP measure

Maintain brand leadership and grow profitability in Canada

Drive Growth in U.S. Consumer Premium Private Label

Improve profitability and focus on U.S. growth in AFH

Continue to focus on Operational Excellenceincluding high return CAPEX projects

21

STRATEGIC INITIATIVES

32.9%

35.2%

37.1%

34.8% 35.0%34.7%

35.0%

36.2%

36.8%

2008 2009 2010 2011 2012 2013 2014 2015 2016

Source: Nielsen Canadian dollar market share for 52-week period data.

22.2% 22.3%

23.3%

21.9%

23.7%24.3%

24.9% 24.7%

23.8%

2008 2009 2010 2011 2012 2013 2014 2015 2016

Ended September 17, 2016

25.4% 25.6%

29.1%

30.2%

31.9%

33.2%

31.4%

32.7%31.5%

2008 2009 2010 2011 2012 2013 2014 2015 2016

#1 Bathroom Tissue #1 Facial Tissue #2 Paper Towel

Ended September 17, 2016Ended September 17, 2016

BRAND LEADERSHIP POSITION IN CANADA

22

Improve Adjusted EBITDA and maintain leading market share

Increase manufacturing performance and operating efficiencies

Implement additional cost reduction initiatives including Supply Chain / Logistics initiatives for freight and warehousing

CONSUMER CANADA BUSINESS

23

CAPEX projects focused on capacity growth and cost reduction/automation for Bathroom tissue and Facial tissue in East and West mill sites

Advertising investment to maintain brand equity

Canadian Consumer business initiatives include:

NET CAPACITY CHANGE

& CAPACITY UTILIZATION

Annual Population

Growth of 1.5%(1) =

+ 130,000 tonnes/year

or 2.5 machines

• Total N.A. capacity at the end of 2015 was 8.8 million metric tonnes• Industry Demand and capacity are relatively well balanced• Capacity utilization rates staying stable in the 92-96% range over the long term.• 2016-2020 capacity additions represent approximately 120,000 tonnes/year on average which

is in line with the demand growth forecast of 1.5%24

* Based on committed projects only

Net Capacity Change* and Capacity Utilization in the North American Tissue

Industry, 2002-2020

80

85

90

95

100

-150

-100

-50

0

50

100

150

200

250

300

350

02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20

Pe

rce

nt

Th

ou

san

d T

on

ne

s

Capacity Change (L)

Capacity Utilization (R)

(1) Source: RISI, tissue demand average for 2011-2015

PRIVATE LABEL – MARKET SHARE

10

15

20

25

30

35

40

2006 2008 2010 2011 2012 2013 2014 2015

USA Canada

PRIVATE LABEL MARKET SHARE

25

Management forecast is for U.S. Private Label share to grow to 30% by 2020

Source: RISI

TAD PRODUCT FINANCIALS

26

(3.6)

1.1

3.5

7.8

6.5

9.1 9.7

11.2 11.2

13.2

10.5

12.0 12.7

(4.0)

(2.0)

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

FY2012 FY 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016

ADJUSTED EBITDA from TAD products(In millions of Cdn. dollars)

• YTD 2016 Adjusted EBITDA from TAD products of $35.2 million, up from $32.1 million in YTD 2015

• Adjusted EBITDA from TAD products for Q4 2016 expected to be higher than Q4 2015, primarily due to sales ramp-up from new customers

TAD PROJECT

• Our outlook for Fiscal 2017 Adjusted EBITDA remains at $60 million for TAD products

• Capacity filled for FY2017 with three new private label customers – machine now fully booked

• Quality at highest level National Brand Equivalent

• Production on target learning curve, increased machine speed for 2017

• Developing one of the best paper towels on the N.A. market

• Next TAD machine currently under study

27

AWAY-FROM-HOME (AFH)

• Completed Metro Paper acquisition in 2014

adding approximately $50 million of revenue

• Consolidation of converting operations in

Trenton / Scarborough with new CAPEX

• Significant CAPEX commitment in 2015-2017

of over $25 million. Payback period of 4 years with benefits starting in FY2017.

Projects include Bathroom Tissue, Towel and Facial finished product converting

• Centralizing distribution centre in new Oshawa facility in Q3-Q4 2016

• Lincoln paper machine installation in Crabtree, Quebec (PM#8) primarily dedicated

to AFH, with CAPEX of $55 million. Uses 100% recycled paper. Construction started

in August and expected benefits starting in Fiscal 2018

• Long-term strategic priority: Build North American footprint and market coverage

28

Total Company year-to-date CAPEX of $58.7 million, up from $35.1million last year, 2016 estimated at approximately $80-$90 million

Focus is on high return CAPEX involving Cost reduction and Capacity /Growth projects generally having 3 to 4 year paybacks

2017 CAPEX plan is for $65-70 million in spending includingapproximately $35 million for the Lincoln paper machine installation inthe Crabtree site

HIGH RETURN CAPEX PROJECTS

CAPEX COMPONENTS Fiscal 2016 %

Capacity/Growth 48%

Cost reductions 27%

Maintenance 25%

Total 100%

29

LOOKING AHEAD

• Maintain market share leadership in

Canadian consumer segment

• Continue to mitigate impact of high

commodity prices and weak Canadian dollar

• Continue to leverage our TAD product

manufacturing capacity to take advantage of

growth opportunities in the U.S. premium

private label market

• Continue to analyze opportunities for TAD 2

30

LOOKING AHEAD

• Benefits from Metro Paper acquisition and

CAPEX ramp-up in AFH will start in FY2017

• New paper machine in Crabtree. Expected

benefits starting in Fiscal 2018

• Focus on high-return CAPEX projects aimed at

improving profitability and manufacturing

efficiencies

31

SUPPLEMENTARY INFORMATION:

APPENDIX

32

QUARTERLY FINANCIAL SUMMARY

(C$ millions, unless otherwise noted) Q3 2016 Q2 2016 Q3 2015 Y/Y Q/Q

Revenue 312.8 295.8 293.6 6.5% 5.7%

Cost of Sales 256.8 249.9 248.0

Gross Profit 56.0 45.9 45.6 22.8% 22.0%

Gross Margin 17.9% 15.5% 15.5%

Adjusted EBITDA 45.7 35.9 34.8 31.3% 27.3%

Adjusted EBITDA Margin 14.6% 12.1% 11.9%

Operating Income (EBIT) 33.7 23.5 24.3

EBIT Margin 10.8% 7.9% 8.3%

Net Income (Loss) 21.6 12.0 (5.9)

Net Income Margin 6.9% 4.1% -2.0%

% Change

33

(C$ millions, unless otherwise noted) Q3 2016 Q2 2016 Q3 2015 Y/Y Q/Q

Segmented Revenue

Consumer 248.8 232.4 230.2 8.1% 7.1%

AFH 59.4 59.1 59.5 (0.2)% 0.5%

Other 4.6 4.3 3.9

Total segment revenue 312.8 295.8 293.6 6.5% 5.7%

Segment Adjusted EBITDA

Consumer 43.9 34.1 32.3 35.8% 28.7%

AFH 1.5 1.4 1.8 (14.9)% 7.1%

Other 0.3 0.4 0.7

Total segment Adjusted EBITDA 45.7 35.9 34.8 31.2% 27.3%

Segment Adjusted EBITDA Margin

Consumer 17.6% 14.7% 14.0%

AFH 2.5% 2.4% 3.0%

Other

Total segment Adjusted EBITDA Margin 14.6% 12.1% 11.9%

% Change

QUARTERLY SEGMENTED RESULTS

34

QUARTERLY SEGMENTED RESULTS

(C$ millions, unless otherwise noted)

Q3 2016 Q2 2016

Cash & cash equivalents 19.5 10.1

Current portion of long-term debt 9.0 9.1

Long-term debt 415.7 408.4

Net Debt 405.1 407.5

LTM EBITDA 139.9 129.0

Net Debt/LTM EBITDA 2.9 3.2

35

BALANCE SHEET

CSR: PROGRAMS VERSUS OBJECTIVES

Component Objective Actual

Energy -15% - 5%

Emissions -15% -16%

Water -15% -18%

Packaging - 5% -13%

Logistics +15% +10%

Certified Fibre 100% 100%

FSC® Chain of Custody Yes Yes

Certified Products 100+ 144http://www.sustainability2015.ca/

36

37