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1. They are the 'white label' producer of store-brand toilet paper and paper towels for grocery stores, similar to a behind-the-scenes Procter & Gamble (P&G) for tissue products.

2. They also supply the paperboard for packaging like milk cartons and paper cups, much like International Paper or WestRock supply various packaging materials.

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• Pulp and Paperboard: Manufactures bleached paperboard used primarily for packaging in the food service, liquid packaging, and folding carton markets.
• Private Label Tissue Products: Produces a wide range of private label tissue products, including bath tissue, paper towels, and facial tissue, for retail customers.

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Clearwater Paper (symbol: CLW) primarily sells its products to other companies (Business-to-Business, or B2B) rather than directly to individuals.

Major Customers:

• Walmart Inc. (Symbol: WMT)
  Walmart is Clearwater Paper's largest customer, accounting for approximately 11% of its net sales in 2022, as disclosed in the company's financial filings.

Other Major Customer Categories and Examples:

While specific customer names beyond Walmart are not individually disclosed by Clearwater Paper as accounting for greater than 10% of its revenue, the company serves a broad base of major customers within the retail and packaging sectors. These generally include:

• Large Retailers and Wholesale Distributors (for private-label tissue products):
  Clearwater Paper manufactures private-label bath tissue, paper towels, and facial tissue for major grocery chains, club stores, mass merchants, and discount stores that market products under their own store brands. Public examples of such large retailers, which represent the typical customer base in this sector, include:
  • The Kroger Co. (Symbol: KR)
  • Target Corporation (Symbol: TGT)
  • Costco Wholesale Corporation (Symbol: COST)
• Printing and Packaging Converters (for bleached paperboard products):
  For its high-quality bleached paperboard, Clearwater Paper supplies companies that convert this material into finished packaging for a wide array of end-users in industries such as food, beverage, and other consumer products. Due to the nature of this supply chain, specific individual public customer companies are not typically disclosed by Clearwater Paper.

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Arsen Kitch, President, Chief Executive Officer and Director

Arsen Kitch was appointed President and CEO of Clearwater Paper in April 2020. Prior to this role, he served as the Senior Vice President and General Manager of the Consumer Products Division from 2018 to 2020. Mr. Kitch's history with the company also includes roles as Vice President of Finance and Vice President of Financial Planning and Analysis from 2015 to 2017. He joined Clearwater Paper in 2013 as Senior Director of Strategy and Planning. Before joining Clearwater Paper, he held positions at Nestlé USA, KKR Capstone, and Frito-Lay. His experience at KKR Capstone indicates involvement with private equity-backed companies.

Sherri Baker, Senior Vice President and Chief Financial Officer

Sherri Baker joined Clearwater Paper as Senior Vice President and Chief Financial Officer in August 2023. Before her current role, she served as CFO at PGT Innovations and subsequently at Hyliion Holdings, both of which are NYSE-listed companies. From 2010 to 2019, Ms. Baker worked at Dean Foods, where she held various leadership positions in commercial finance, supply chain, investor relations, and corporate strategy. Her career began at Ernst & Young in audit, and she also held finance roles at Frito-Lay from 1997 to 2010.

Michael S. Gadd, Senior Vice President

Michael S. Gadd transitioned to the role of Senior Vice President at Clearwater Paper in July 2025. He previously served as Senior Vice President, General Counsel and Corporate Secretary from May 2011 until November 2024, continuing as General Counsel until July 2025. Mr. Gadd initially joined Clearwater Paper in March 2006 as Associate General Counsel. Before his tenure at Clearwater Paper, he held legal positions at Potlatch Corporation and practiced corporate/securities and litigation law at firms including Perkins Coie LLP and Ater Wynne LLP.

Kari G. Moyes, Senior Vice President, Human Resources

Kari G. Moyes serves as the Senior Vice President of Human Resources at Clearwater Paper. She brings over 25 years of experience to her role. Prior to joining Clearwater Paper, Ms. Moyes held significant HR leadership positions with Nestlé USA between 2008 and 2013. Her experience also includes HR leadership roles at Meritage Homes Corp. and PepsiCo.

Steve M. Bowden, Senior Vice President, Operations

Steve M. Bowden is the Senior Vice President of Operations at Clearwater Paper. He joined the company in October 2018 as the Senior Vice President and General Manager of the Pulp and Paperboard business. Before his time at Clearwater Paper, Mr. Bowden was the president of the America's food and beverage division for Multi-Color. He also held important leadership roles at International Paper, including Executive Vice President of Marketing and Strategy for xpedx, a former International Paper division.

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• Competitive Pressures and Industry Downturn: The pulp and paper industry, particularly the paperboard segment, is highly competitive and cyclical. Clearwater Paper is currently navigating an industry downcycle characterized by oversupply from new competitor capacity and declining average net selling prices for its products. These factors directly impact the company's pricing, market share, and profitability.
• Volatile Raw Material and Operational Costs: The company is exposed to significant fluctuations in the cost of raw materials such as wood fiber and wood pulp, as well as energy and transportation costs. Additionally, compliance with environmental regulations necessitates substantial investments and can increase operational costs. Major maintenance outages at its facilities also contribute to significant costs and can reduce production volumes.
• Risks from Strategic Shift and Reduced Diversification: Clearwater Paper has undergone a significant transformation, including the divestiture of its tissue business and the acquisition of the Augusta paperboard mill, to focus primarily on bleached paperboard. While intended to streamline operations and reduce debt, this strategic shift carries risks associated with less diversification in product offerings and the potential challenges of integrating the newly acquired assets and realizing anticipated financial benefits.

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The widespread adoption of bidet technology, particularly bidet attachments and smart toilets, is an emerging threat to Clearwater Paper's private-label tissue business. As consumers increasingly adopt bidets for hygiene and environmental reasons, the demand for toilet paper, a core product for CLW, could diminish significantly. This trend is already evidenced by increased sales and interest in bidet products, especially in North American markets.

Additionally, the accelerating development and market penetration of advanced non-wood fiber alternatives for tissue products (e.g., bamboo, sugarcane bagasse) and innovative reusable/circular packaging systems for consumer goods represent an emerging threat. While Clearwater Paper employs sustainable forestry, a strong consumer and corporate shift towards products made from entirely different fiber sources or away from single-use packaging altogether could erode demand for their traditional wood-fiber-based tissue and bleached paperboard products.

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Clearwater Paper (CLW) is expected to drive future revenue growth over the next two to three years through several key strategies:

1. Increased Sales Volume from Augusta Acquisition: The acquisition of the Augusta, Georgia paperboard facility in May 2024 has significantly expanded Clearwater Paper's Solid Bleached Sulfate (SBS) capacity to approximately 1.4 million tons. This expansion has already contributed to increased sales volumes in 2024 and is anticipated to continue driving revenue growth in 2025 through a full year of incremental sales volume.
2. Recovery in Paperboard Market Demand: Despite a current cyclical downturn due to new industry capacity, Clearwater Paper expects a demand recovery in the paperboard market through 2025 and 2026. The company projects modest shipment growth and foresees potential for increased domestic demand influenced by tariffs and a weaker dollar, which could favor local producers over imports.
3. Expansion of Product Portfolio with Innovative Solutions: Clearwater Paper is actively investing in and developing new products and innovative solutions within consumer-focused fiber-based packaging. This includes continued investment in brands like NuVo cupstock and ReMagine folding carton, which feature up to 35% post-consumer recycled content. The company is also developing compostable plates and lightweight folding cartons, with the latter expected to be in the market by the first half of 2026, offering alternatives to imports.
4. Strategic Focus on Independent Converters: The company is concentrating on strengthening its position as a leading independent supplier of paperboard packaging products to North American converters. This strategy involves effectively serving a diverse range of small to medium-sized customers and providing a competitive alternative to integrated suppliers, thereby potentially capturing a larger share of the approximately 45% of the North American paperboard market consumed by independent converters.
5. Realignment of Pricing and Demand through Industry Dynamics: Clearwater Paper anticipates that potential industry capacity reductions and shifts among various paperboard substrates could lead to a realignment of pricing and an increase in demand for domestic products. This market rebalancing, alongside ongoing efforts to improve operational performance and cost structures, is expected to positively impact revenue.

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Share Repurchases

• Clearwater Paper's Board of Directors approved a new $100 million share repurchase authorization in November 2024, replacing a previous authorization.
• The company repurchased approximately $9 million of shares through February 7, 2025, since the new program commenced on November 1, 2024.
• In 2023, Clearwater Paper repurchased $18 million of outstanding shares, and during 2022, approximately $5.0 million was used for share repurchases.

Inbound Investments

• On May 1, 2024, Clearwater Paper acquired Graphic Packaging International's bleached paperboard manufacturing facility in Augusta, Georgia, for $700 million.
• This acquisition increased Clearwater Paper's paperboard capacity by approximately 70% to 75% and enhanced its geographic footprint in North America.

Capital Expenditures

• Clearwater Paper anticipates capital expenditures of $80 million to $90 million in 2025, with $70 million to $80 million allocated for annual maintenance.
• These projections for 2025 exclude larger strategic or replacement projects, which are expected to add an average of $10 million to $20 million per year over the long term.
• The company projected capital expenditures of $70 million to $80 million for 2023, and in June 2024, it invested approximately $22.6 million to expand its Shelby, North Carolina, operations by adding a facial tissue line.