PART I - FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company's unaudited statements show increased sales from acquisitions but a net loss due to a significant asset impairment charge [Condensed Consolidated Statements of Income](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Q1 2022 saw a 69.1% sales increase from acquisitions, but a $117.3 million impairment charge led to a net loss of $108.3 million Q1 2022 vs Q1 2021 Income Statement Highlights | Metric | Q1 2022 (in thousands) | Q1 2021 (in thousands) | Change | | :--- | :--- | :--- | :--- | | **Net Sales** | $381,680 | $225,674 | +69.1% | | **Gross Profit** | $31,665 | $39,296 | -19.4% | | **Goodwill & Asset Impairment** | $117,349 | $0 | N/A | | **Operating Income (Loss)** | ($115,889) | $17,319 | N/A | | **Net Income (Loss)** | ($108,327) | $8,394 | N/A | | **Diluted EPS** | ($2.42) | $0.19 | N/A | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to $1.75 billion due to impairment charges, while total liabilities remained stable at $1.33 billion Balance Sheet Summary | Account | March 31, 2022 (in thousands) | Dec 31, 2021 (in thousands) | | :--- | :--- | :--- | | **Total Current Assets** | $648,845 | $636,566 | | **Goodwill** | $177,063 | $236,165 | | **Intangible Assets, net** | $116,722 | $156,304 | | **Total Assets** | $1,749,038 | $1,880,607 | | **Total Liabilities** | $1,332,305 | $1,337,845 | | **Total Shareholders' Equity** | $416,733 | $542,762 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash used in operations significantly increased to $66.2 million, driven by changes in working capital Cash Flow Summary (Three Months Ended March 31) | Activity | 2022 (in thousands) | 2021 (in thousands) | | :--- | :--- | :--- | | **Net Cash Used by Operating Activities** | ($66,240) | ($6,046) | | **Net Cash Used by Investing Activities** | ($7,801) | ($4,603) | | **Net Cash Provided by Financing Activities** | $16,281 | $179 | | **Net Decrease in Cash** | ($58,508) | ($12,683) | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the impact of acquisitions, a $117.3 million asset impairment charge, and segment performance - Completed the acquisition of Georgia-Pacific's Mount Holly business on May 13, 2021, and Jacob Holm on October 29, 2021[28](index=28&type=chunk)[29](index=29&type=chunk). For Q1 2022, Mount Holly and Jacob Holm contributed **$27.3 million and $96.4 million in net sales**, respectively[31](index=31&type=chunk) - Recorded a **$117.3 million non-cash asset impairment charge** in Q1 2022 related to the Composite Fibers' Dresden facility and segment goodwill, triggered by the Russia/Ukraine military conflict[35](index=35&type=chunk). The charge included **$56.1 million for goodwill**[35](index=35&type=chunk) - Total long-term debt was **$795.1 million** as of March 31, 2022[65](index=65&type=chunk). On May 9, 2022, the company amended its Credit Agreement to increase the maximum permitted leverage ratio to **6.75 to 1.0** through the end of 2023[93](index=93&type=chunk) Net Sales by Segment (Q1, in thousands) | Segment | 2022 | 2021 | | :--- | :--- | :--- | | Composite Fibers | $135,829 | $141,249 | | Airlaid Material | $149,464 | $84,425 | | Spunlace | $96,387 | $0 | | **Total** | **$381,680** | **$225,674** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the Q1 results to the Russia/Ukraine conflict, acquisitions, and significant inflationary pressures - The company reported a **GAAP loss from continuing operations of $108.3 million** ($2.42 per share), primarily due to a **$117.3 million asset impairment charge** related to the Russia/Ukraine conflict[101](index=101&type=chunk)[102](index=102&type=chunk) - On a non-GAAP adjusted basis, the company had a **loss from continuing operations of $6.2 million** ($0.14 per share), compared to income of $8.5 million ($0.19 per share) in Q1 2021[101](index=101&type=chunk)[111](index=111&type=chunk) - Key operational factors in Q1 2022 included: significant inflationary pressures on energy and raw material costs, and an additional **$123.7 million in net sales** from the Mount Holly and Jacob Holm acquisitions[102](index=102&type=chunk) - Cash used by operating activities increased to **$66.2 million** in Q1 2022 from $6.0 million in Q1 2021, mainly due to higher working capital usage[135](index=135&type=chunk) [Results of Operations](index=28&type=section&id=Results%20of%20Operations) Acquisitions drove a $156.0 million sales increase, but cost inflation and a $117.3 million impairment charge led to an operating loss Reconciliation of Net Loss to Adjusted Earnings (Q1 2022, in thousands) | Description | Amount | | :--- | :--- | | **Net Loss** | **($108,327)** | | Goodwill and other asset impairment charges | $117,349 | | Russia/Ukraine conflict charges | $3,948 | | Strategic initiatives | $1,835 | | Cost optimization actions | $941 | | Timberland sales and related costs | ($2,962) | | Income taxes & other | ($19,068) | | **Adjusted Earnings (Loss)** | **($6,159)** | [Segment Financial Performance](index=30&type=section&id=Segment%20Financial%20Performance) Composite Fibers' income fell due to the Russia/Ukraine conflict, while Airlaid Materials grew through acquisition Operating Income (Loss) by Segment (Q1, in thousands) | Segment | 2022 | 2021 | | :--- | :--- | :--- | | Composite Fibers | ($335) | $16,065 | | Airlaid Material | $12,221 | $7,197 | | Spunlace | ($1,572) | $0 | | Other and unallocated | ($126,203) | ($5,943) | | **Total** | **($115,889)** | **$17,319** | - Composite Fibers' performance was negatively impacted by a **34% decline in wallcover shipments**, primarily due to the conflict in Russia and Ukraine[119](index=119&type=chunk) [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained liquidity with $80.5 million in cash and amended its credit agreement to increase its leverage covenant - The company had **$80.5 million in cash and cash equivalents** at quarter-end[134](index=134&type=chunk) - The leverage ratio per the Credit Agreement was **4.8x** as of March 31, 2022[140](index=140&type=chunk). A subsequent amendment on May 9, 2022, increased the maximum allowable ratio to **6.75 to 1.0** until the end of 2023[140](index=140&type=chunk) - Projected capital expenditures for the full year 2022 are expected to be between **$45 million and $50 million**[138](index=138&type=chunk) [Quantitative and Qualitative Disclosures About Market Risks](index=37&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risks) The company is primarily exposed to market risks from interest rate fluctuations and foreign currency exchange, particularly the Euro - As of March 31, 2022, the company had **$795.1 million of long-term debt**, with **6.4% at variable interest rates**[147](index=147&type=chunk) - A hypothetical **100 basis point increase** in interest rates on variable-rate debt would increase annual interest expense by **$0.4 million**[147](index=147&type=chunk) - The company has significant foreign currency risk, particularly with the Euro, as annual Euro-denominated net sales exceed Euro expenses by approximately **€150 million**[150](index=150&type=chunk) [Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective with no material changes to internal controls - The Chief Executive Officer and principal financial officer concluded that the company's disclosure controls and procedures were **effective** as of March 31, 2022[151](index=151&type=chunk) - **No changes** in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[152](index=152&type=chunk) PART II – OTHER INFORMATION [Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors) The Russia/Ukraine conflict poses significant risks, including reduced demand, supply chain disruptions, and cybersecurity threats - In 2021, approximately **$95 million (7.3%)** of the company's net sales were from customers in Russia and Ukraine[154](index=154&type=chunk) - The conflict led to a significant reduction in expected wallcover revenues, resulting in a **$117.3 million non-cash asset impairment charge** in Q1 2022[154](index=154&type=chunk) - European manufacturing sites face risks of shortages and increased costs for **natural gas**, a substantial portion of which originates from Russia[155](index=155&type=chunk) - The conflict has increased the risk of **cybersecurity incidents and attacks**, which could adversely affect operations and the supply chain[156](index=156&type=chunk) [Exhibits](index=39&type=section&id=Item%206.%20Exhibits) Key exhibits filed include CEO/CFO certifications under the Sarbanes-Oxley Act and Interactive Data Files - The filing includes **CEO and CFO certifications** pursuant to Sections 302(a) and 906 of the Sarbanes-Oxley Act of 2002[160](index=160&type=chunk)[161](index=161&type=chunk) - **Interactive Data Files**, including Inline XBRL documents, are furnished as part of the filing[161](index=161&type=chunk)

Financial Data and Key Metrics Changes - The company reported a first-quarter adjusted earnings loss of $6.2 million or $0.14 per share, a decrease of $0.33 compared to the same period last year [14][15] - Adjusted free cash flow was lower by approximately $66 million versus the same quarter last year, primarily due to working capital usage of $42 million and lower cash earnings of about $9 million [37] - The bank covenant leverage ratio increased to 4.8x as of March 31, compared to 3.8x at the end of 2021, driven by lower earnings and higher working capital usage [39] Business Line Data and Key Metrics Changes - Composite Fibers segment revenues were nominally up on a constant currency basis, driven by higher selling prices of $17.6 million, but shipments were down 19% or nearly 5,900 tons, significantly impacted by the Russia/Ukraine crisis [18][19] - Airlaid Materials revenues increased by 83% on a constant currency basis, supported by the addition of Mount Holly, with legacy volume up 22% driven by strong demand in tabletop, hygiene, and home care products [27] - Spunlace segment revenue was approximately $96 million, with shipments 10% higher than expectations, driven by stronger demand in the consumer wipes category [30][31] Market Data and Key Metrics Changes - The escalation of energy prices in Europe negatively impacted results by $29 million compared to the prior year period, with North Atlantic freight rates more than doubling since Q4 [21][22] - The company expects selling prices to fully offset raw material and energy cost inflation in the second quarter, with volumes expected to be between 5% to 10% lower sequentially, primarily in wallcover [26] Company Strategy and Development Direction - The company is focused on mitigating inflation through aggressive cost control, strategic sourcing, and moving more customers to a cost pass-through model, especially for Composite Fibers [41] - The company aims to return the Spunlace segment to profitability in Q2 and is progressing with the integration of this new segment [41] - The company is committed to building a leading sustainable engineered materials company, with 90% of products being essential consumer staples [42] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging start to the year due to the Russia/Ukraine conflict and its impact on energy prices and logistics [6][7] - The company plans for macroeconomic and geopolitical challenges to persist in the near to midterm, focusing on critical business imperatives [41] - Management expressed confidence in achieving or exceeding the 50% target for converting customers to a cost pass-through model [75] Other Important Information - The company recorded non-cash asset goodwill impairment and working capital charges of $121 million in the first quarter, including $61 million of Dresden asset impairment [25] - Corporate costs were $1 million favorable compared to the same period last year, mainly due to lower incentive accruals and cost control initiatives [35] Q&A Session Summary Question: Efforts to mitigate the drop-off in Russian and Ukrainian business - Management discussed the challenges related to sanctions and military conflict, noting that capacity utilization at Dresden was just below 50% and plans to recalibrate staffing levels and cost structures [50][52] Question: Cumulative Russian-Ukrainian exposure over Gernsbach - Management indicated that the first quarter impact from Russia-Ukraine translated to around $3 million of cost penalties, with similar expectations for Q2 [54][55] Question: Update on bank covenant comments - Management confirmed full compliance with bank covenants in Q1 and ongoing discussions with banks to amend the debt covenant framework [62][63] Question: Demand trends in Spunlace - Management highlighted a 10% higher volume in Q1 than guided, with significant improvements expected in Q2 driven by pricing actions and operational efficiencies [68][70]

Financial Performance - Adjusted EBITDA was $23 million and adjusted EPS was a loss of ($0.14)[4] - Q1 2022 net loss from continuing operations was $1083 million or ($242) per share, compared to Q1 2021 net income of $84 million or $019 per share[6] - Adjusted Free Cash Flow from continuing operations decreased by approximately $665 million compared to the previous year[21] - Net debt increased to $7288 million as of March 31, 2022[26] Segment Highlights - Composite Fibers' profitability was below expectations due to rising raw material, energy, and logistics costs, as well as the Russia/Ukraine crisis, resulting in non-cash asset and goodwill impairment charges of approximately $121 million[4] - Airlaid Materials experienced strong demand, with legacy volume up by 22% and Mount Holly contributing $27 million in revenue compared to the prior-year quarter[4] - Spunlace performance exceeded expectations due to stronger volume, partially offset by inflation[4] - Spunlace revenue was $96 million for the quarter[16] Composite Fibers - Composite Fibers revenue increased by 04% compared to Q1 2021 on a constant currency basis[8] - Composite Fibers volume decreased by 19% compared to Q1 2021[8] - Raw material and energy prices for Composite Fibers were unfavorable by $291 million due to inflationary pressures[8] Airlaid Materials - Airlaid Materials revenue increased by 83% compared to Q1 2021 on a constant currency basis, including a full quarter of Mount Holly acquisition[12] - Airlaid Materials volume increased by 49%, including favorable mix[12] Outlook - The company expects corporate costs to be approximately $25 million in 2022[20] - The company anticipates capital expenditures of approximately $45 to $50 million in 2022, including $7 to $8 million for Spunlace integration[22]

G L A T F E L T E R J.P. Morgan Global High Yield & Leveraged Finance Conference February 28, 2022 NYSE: GLT Sam Hillard, SVP & CFO Ramesh Shettigar, VP – ESG, IR & Treasury 1 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 "forwardlooking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. The Company uses w ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 2021 ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to 4350 Congress Street, Suite 600 Charlotte, North Carolina 28209 (Address of principal executive offices) (704) 885-2555 (Registrant's telephone number, incl ...

Financial Performance - Q4 2021 - Adjusted EBITDA was $26 million[4] and adjusted EPS was $004[4] - Net loss from continuing operations for Q4 2021 was $112 million or ($025) per share, compared to net income from continuing operations of $91 million or $020 per share in Q4 2020[6] - Adjusted Free Cash Flow from continuing operations was approximately $10 million lower versus last year[22] - Q4 2021 Adjusted Free cash flow was $19 million lower than Q4 2020 due to lower earnings and higher capital expenditures[22] Segment Performance - Composite Fibers operating income decreased from $150 million in Q4 2020 to $45 million in Q4 2021[6], with volume down 11%[8] - Airlaid Materials revenue increased 48% versus Q4 2020 on constant currency[11], including a full quarter of Mount Holly acquisition[11] - Spunlace segment reported revenue of $58 million for the quarter under Glatfelter ownership[18], with a volume of 125k MT[18] and an EBITDA margin of 06%[17] Strategic Initiatives and Financial Position - Net Leverage increased to 46x at December 31, 2021, from 17x at December 31, 2020, driven by Spunlace and Mount Holly acquisitions in 2021[4] - Strategic initiatives costs were $310 million in 2021 related to acquisition activities including Mount Holly and Jacob Holm[21] - The company executed $500 million bond financing in October 2021[24]

Financial Data and Key Metrics Changes - Adjusted earnings per share for Q4 2021 were $0.04, a decrease of $0.18 compared to the same period last year [8][9] - Adjusted EBITDA for the quarter was $26 million, reflecting the impact of rising energy costs and raw material inflation [5][8] - The leverage ratio increased to 4.6 times as of December 31, 2021, compared to 1.7 times at the end of 2020, primarily due to acquisitions [10][18] Business Line Data and Key Metrics Changes - Airlaid materials segment reported a 48% revenue increase year-over-year, driven by the addition of Mount Holly and strong recovery in the tabletop category [11][12] - Composite Fibers segment saw a 1.3% increase in total revenues on a constant currency basis, but shipments were down 11% due to price-sensitive customers altering buying patterns [9][10] - Spunlace segment generated approximately $58 million in revenue for the quarter, with shipments slightly below expectations due to demand management and production delays [13][14] Market Data and Key Metrics Changes - Energy prices in Europe significantly impacted earnings, with an estimated negative effect of $4 million in Q4 compared to prior guidance [6][10] - The company experienced a $16.6 million negative impact from rising energy, wood pulp, and freight costs compared to the same quarter last year [10] - The food and beverage business within Composite Fibers performed relatively well, remaining flat year-over-year but showing slight sequential growth from Q3 to Q4 [40][41] Company Strategy and Development Direction - The company is focused on integrating recent acquisitions and optimizing profitability amid challenging macroeconomic conditions [20][22] - A priority is to restore Spunlace profitability and implement raw material and energy cost pass-through mechanisms in the Composite Fibers segment [21][22] - The company aims to migrate approximately 50% of its revenue base to a dynamic pricing model in 2022 to reduce volatility [21] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the unprecedented inflationary pressures and supply chain disruptions affecting all segments [3][4] - The company is taking aggressive steps to manage through volatility and is optimistic about the strategic rationale behind its acquisitions [4][20] - Future guidance is cautious, with expectations that energy prices will remain high in the near term, impacting overall financial performance [10][21] Other Important Information - Corporate costs for the full year 2021 were approximately $22.4 million, lower than the previous year, but expected to rise to about $27 million in 2022 [16] - The company anticipates capital expenditures for 2022 to be between $45 million and $50 million, including costs related to Spunlace systems integration [17] Q&A Session Summary Question: Will energy be included in the pass-through for Composite Fibers? - Yes, energy will be included in the pass-through arrangements [27] Question: What has been the customer reception regarding the pass-throughs? - Discussions are ongoing, and the speed and magnitude of input cost inflation are facilitating pragmatic conversations with customers [28] Question: Was the year-end inventory management by customers a surprise? - It was somewhat unexpected, as the company is still integrating new colleagues into its sales and operations planning [34] Question: How did geopolitical tensions affect pricing strategies? - Geopolitical uncertainty can impact consumer sentiment and pricing strategies, but the company has adapted its product offerings to meet market needs [36] Question: What was the contribution from Mount Holly in Q4? - The operating profit from Mount Holly was around $2 million for the fourth quarter [38]

☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to 4350 Congress Street, Suite 600 Charlotte, North Carolina 28209 (Address of principal executive offices) (704) 885-2555 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2021 or | (Registrant's telephone number, includin ...

Financial Data and Key Metrics Changes - The company reported adjusted earnings per share of $0.21, an increase of $0.05 compared to the same period last year, driven primarily by strong earnings in the Airlaid segment and a favorable tax rate [14][8] - Adjusted EBITDA for the quarter was $32 million, reflecting the operational performance improvements [8] - The leverage ratio decreased to 2.8 times as of September 30, 2021, compared to 3.0 times at the end of June, but was higher than year-end 2020 [34] Business Line Data and Key Metrics Changes - Airlaid Materials segment performed well, with revenues up about 40% year-over-year on a constant currency basis, supported by strong recovery in tabletop and wipes categories [24] - Composite Fibers segment faced challenges with total revenues increasing by 3.4% on a constant currency basis, but shipments were down 6% due to softer demand in wallcover products [17][18] - The company announced a 12% price increase across the Composite Fibers product portfolio to mitigate rising input costs [11] Market Data and Key Metrics Changes - The company experienced a sequential volume growth of 10% in hygiene products after a destocking phase in the first half of the year [9] - Energy prices more than doubled in key European countries, significantly impacting the Composite Fibers segment [10][19] - Demand for Composite Fibers products is expected to remain robust across most categories [36] Company Strategy and Development Direction - The acquisition of Jacob Holm is a significant milestone, enhancing the scale and diversification of the product portfolio [6][12] - The company aims to achieve $20 million of annual synergies from the Jacob Holm acquisition while focusing on integrating it into Glatfelter's operating model [13][34] - The near-term focus will be on ensuring successful integration and reducing leverage [34] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the business prospects, with expectations for robust demand in Composite Fibers products [36] - The company is actively managing costs and operational efficiencies to improve EBITDA and free cash flow [37] - Input costs are expected to remain volatile, and the company will continue to monitor developments closely [21] Other Important Information - The company successfully executed a $500 million bond offering to finance the Jacob Holm acquisition [12] - Corporate costs were favorable by $1.7 million compared to the same period last year, with an expectation of approximately $22 million for the full year [29][30] - The tax rate for the third quarter was 27%, lower than previously expected, with an estimated full-year tax rate between 38% and 40% [31] Q&A Session Summary Question: Inflation recovery timing and impact on Q4 - Management expects a significant pickup in inflation recovery in Q4, guiding toward $6 million of improvement in prices for Composite Fibers [44] - Energy prices in Europe are anticipated to be slightly higher in Q4 compared to Q3 due to unexpected spikes [45][46] Question: Impact of fiber costs and mix shift in Airlaid - Management noted that while fiber costs have started to abate, energy prices had a larger impact in Q3 [48] - A mix shift in Airlaid is expected to negatively impact profit by $1 million, primarily due to seasonality in tabletop products [49][50] Question: Production expectations for inclined wire - Inclined wire production is primarily related to food and beverage papers and Composite Laminates, with expectations for Q4 to be in line with Q3 [51][53] Question: Inventory impact from Jacob Holm - Management stated it is premature to provide estimates on the inventory step-up for Jacob Holm as they are still working through purchase accounting [54]

G L A T F E L T E R Jefferies Virtual Industrials Conference August 4, 2021 NYSE: GLT Dante Parrini, Chairman & CEO 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 "forwardlooking 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", ...