IPG Investor Presentation · Capstone Greenfield Project IPG Investor Presentation 14 • Objective to secure low-cost supply for North American woven products market. • Approximately

IPG Investor Presentation

IPG Investor

PresentationAugust 2018

2IPG Investor Presentation

Safe Harbor Statement• Certain statements and information included in this presentation constitute "forward-looking information" within the meaning of applicable Canadian securities legislation and "forward-looking statements"

within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (collectively, "forward-looking statements"), which

are made in reliance upon the protections provided by such legislation for forward-looking statements. All statements other than statements of historical facts included in this presentation, including

statements regarding expected pro-forma revenue following the Polyair acquisition, the Company's capital allocation priorities, including its investment strategies, acquisition strategies, anticipated

annualized dividends and share repurchases, the Company's capital expenditures, including its anticipated cost and return expectations, the Capstone Greenfield Project, including the project’s goal,

total cash consideration, timing, and next steps, the Powerband Greenfield Project, including the project’s goal, total cash consideration, timing, and next steps, the Midland, North Carolina

manufacturing facility expansion, including the additional investment in and the timing of the project, the expected benefits of the Polyair transaction, the expected annual cost savings and total annual

synergies from the Cantech Acquisition, expected leverage ratio following the Polyair transaction, and the Company's third quarter and full year 2018 outlook, including expected revenue growth,

adjusted EBITDA, the effective tax rate and income tax expenses, may constitute forward-looking statements. These forward-looking statements are based on current beliefs, assumptions,

expectations, estimates, forecasts and projections made by the Company's management. Words such as "may," "will," "should," "expect," "continue," "intend," "estimate," "anticipate," "plan," "foresee,"

"believe," or "seek" or the negatives of these terms or variations of them or similar terminology are intended to identify such forward-looking statements. Although the Company believes that the

expectations reflected in these forward-looking statements are reasonable, these statements, by their nature, involve risks and uncertainties and are not guarantees of future performance. Such

statements are also subject to assumptions concerning, among other things: business conditions and growth or declines in the Company's industry, the Company's customers' industries and the general

economy; the anticipated benefits from the Company's manufacturing facility expansions, greenfield developments, manufacturing cost reduction programs and other restructuring efforts; the anticipated

benefits from the Company’s acquisitions and partnerships; accounting adjustments; the anticipated benefits from the Company’s capital expenditures; the quality and market reception of the

Company's products; the effective tax rate and income tax expenses; the Company's anticipated business strategies; risks and costs inherent in litigation; risks and costs inherent in the Company’s

intellectual property; the Company’s ability to maintain and improve quality and customer service; the Company’s ability to retain, and adequately develop and incentivize, its management team and key

employees; anticipated trends in the Company's business; anticipated cash flows from the Company’s operations; availability of funds under the Company’s 2018 Credit Facility; the Company's ability to

continue to control costs; the impact of raw material price fluctuations; movements in the prices of key inputs such as raw material, freight, energy and labor; government policies, including those

specifically regarding the manufacturing industry, such as industrial licensing, environmental regulations, labor and safety regulations, import restrictions and duties, intellectual property laws, excise

duties, sales taxes, and value added taxes; accidents and natural disasters; changes to accounting rules and standards; expected strategic and financial benefits from the Company’s ongoing capital

investment and mergers and acquisitions programs; and other factors beyond the Company's control. The Company can give no assurance that these statements and expectations will prove to have

been correct. Actual outcomes and results may, and often do, differ from what is expressed, implied or projected in such forward-looking statements, and such differences may be material. You are

cautioned not to place undue reliance on any forward-looking statement.

• For additional information regarding important factors that could cause actual results to differ materially from those expressed in these forward-looking statements and other risks and uncertainties, and

the assumptions underlying the forward-looking statements, you are encouraged to read "Item 3. Key Information - Risk Factors," "Item 5. Operating and Financial Review and Prospects

(Management's Discussion & Analysis)" and statements located elsewhere in the Company's annual report on Form 20-F for the year ended December 31, 2017 and the other statements and factors

contained in the Company's filings with the Canadian securities regulators and the US Securities and Exchange Commission. Each of these forward-looking statements speaks only as of the date of

this presentation. The Company will not update these statements unless applicable securities laws require it to do so.

• This presentation contains certain non-GAAP financial measures as defined under applicable securities legislation, including Adjusted EBITDA, Adjusted EBITDA Margin, Trailing Twelve Month (“TTM”)

Adjusted EBITDA, Debt to TTM Adjusted EBITDA, and Leverage Ratio. The Company has included these non-GAAP financial measures because it believes that they allow investors to make a more

meaningful comparison between periods of the Company’s performance, underlying business trends and the Company’s ongoing operations. The Company further believes these measures may be

useful in comparing its operating performance with the performance of other companies that may have different financing and capital structures, and tax rates. Adjusted EBITDA excludes costs that are

not considered by management to be representative of the Company’s underlying core operating performance, including certain non-operating expenses, non-cash expenses and non-recurring

expenses. In addition, adjusted EBITDA is used by management to set targets and is a metric that, among others, can be used by the Company’s Compensation Committee to establish performance

bonus metrics and payout, and by the Company’s lenders and investors to evaluate the Company’s performance and ability to service its debt, finance capital expenditures and acquisitions, and provide

for the payment of dividends to shareholders. The Company has included Leverage Ratio because it believes that it allows investors to make a meaningful comparison of the Company’s liquidity level.

In addition, Leverage Ratio is used by management in evaluating the Company’s performance because it believes that it allows management to monitor the Company's liquidity level and evaluate its

capacity to deploy capital to meet its strategic objectives. As required by applicable securities legislation, the Company has provided definitions of these non-GAAP measures contained in this

presentation, as well as a reconciliation of each of them to the most directly comparable GAAP measure, on its website at http://www.intertapepolymer.com under “Investor Relations” and “Events and

Presentations” and “Investor Presentations”. You are encouraged to review the related GAAP financial measures and the reconciliation of non-GAAP measures to their most directly comparable GAAP

measures set forth on the website and should consider non-GAAP measures only as a supplement to, not as a substitute for or as a superior measure to, measures of financial performance prepared in

accordance with GAAP.

IPG Investor Presentation3


Company Profile

• The second largest tape manufacturer in North America

• Employs approximately 3,400 people(1)

• Recognized leader in a variety of tapes, films, protective

packaging, woven coated fabrics and complementary

packaging systems


60%16%

12%

12%Tapes

Films

ProtectivePackaging

Woven & Other

Expected

pro-forma

revenue(2)

(1) As of August 10th, 2018

(2) Expected pro-forma revenue shown includes the full year impact of Polyair, which the Company believes will generate approximately

$133 million of revenue in the twelve months ending December 31, 2018

Manufacturing Locations


• 20 Manufacturing Facilities in North America

• 1 Manufacturing Facility in Europe

• 2 Manufacturing Facilities in Asia

Tapes At-A-Glance Top market leadership

positions in North America


Carton Sealing Tapes

Hot Melt

Acrylic

Natural Rubber

Water-Activated

Water-Activated Machine Dispensers

Industrial & Specialty Tapes

Paper

Flatback

Filament

Sheathing

Stencil

Films At-A-Glance


Films

Stretch

Shrink

Protective Packaging At-A-Glance


Protective Packaging

Air Pillows

Foam

Bubble Cushioning

Mailers

Paper Void Fill

Woven At-A-Glance

IPG Investor Presentation

Agro-Environmental

Structure Fabrics

Woven Coated Geomembrane

Hay Cover Fabrics

Poultry Fabrics

Building & Construction

Lumber Wrap

10

Top market leadership

positions in North America

Key Raw Materials

(1) Based on purchases of raw materials in 2017

(2) Excludes the Polyair acquisition

(3) Other includes but is not limited to Latex, Fiberglass and Starch


35%

16%22%

27%

Raw Material Inputs(1)(2)

Resin

Adhesive

Paper

Other

Continued investment to grow our business

• Strategic high-return projects

• New distribution channels and market verticals

• R&D investment

Acquisitions

• Potential focus areas include:

• Expansion / consolidation of current product lines

• Addition of new product categories

• Geographic expansion

Dividends

• Reinstated our dividend policy on Aug. 14, 2012

• Annualized dividend of $0.56 per share

• Dividend yield of 4.1%(1)

• Since Aug. 2012, paid approximately $154.3 million in dividends

Share repurchases

• The Company renewed its NCIB which entitles the repurchase for cancellation up to 4 million common shares over a twelve-month period starting July 23, 2018

• As of Aug. 10, 2018, approx. 4.0 million shares remain available to repurchase


Capital Allocation Priorities

(1) Source: Bloomberg, as of August 6, 2018


Capital Expenditures

(In millions of US dollars)

(1) Amounts represent total expected costs. Timeline represents estimated completion.

(2) “CST” = Carton Sealing Tape

(3) “WAT” = Water-Activated Tape

• Ongoing initiatives(1):

– H1/19 - Capstone woven greenfield ~ $28-32M

– H1/19 – Powerband CST(2) greenfield ~ $18-20M

– Q1/19 – North Carolina WAT(3) line ~ $14-16M

– Q4/18 - Utah shrink film line ~ $9-10M

• Recently completed:

– Q1/18 – Specialty tape line ~$6M

– Q4/17 – North Carolina WAT greenfield ~ $48M

– Q4/17 – Virginia stretch film line ~ $11M

– Q2/17 - Portuguese shrink film line ~ $11M

• Normalized run-rate capital expenditures ~

$40-$60M per annum

• High-return projects expected to yield after-

tax returns of at least 15%All strategic initiatives are progressing substantially as planned both in

terms of timeline and expenditure levels.

Capstone Greenfield Project


• Objective to secure low-cost supply for North

American woven products market.

• Approximately $13 million total project spend as of

June 30, 2018.

• Expected total investment $28 to $32 million.

• Commercial operations expected to commence in the

first half of 2019.

Karoli, India

Next steps:

• Complete main building construction and

infrastructure.

• Install first set of new manufacturing equipment

and utilities.

• Continue to hire and train operators and plant

personnel.

Powerband Greenfield Project


• Greenfield manufacturing facility to

manufacture carton sealing tapes in

India.

• Approximately $9 million total project

spend as of June 30, 2018.

• Expected total investment between $18

and $20 million.

• Completion expected in the first half of

2019.

Next steps:

• Complete building construction.

• Install new manufacturing equipment

and utilities.

• Continue to hire and train operators and

plant personnel.

Dahej, India

Midland, North Carolina Expansion


• Doubling capacity driven by e-

commerce demand.

• Equipment installation to increase

capacity in progress.

• Additional investment of $14 to $16

million.

• Commissioning and ramp up

progressing on time, on budget for

completion in early 2019.

Core Business Purchase Price Acquisition Date

Water-activated tape dispensers $15.9 MM April 7, 2015

Filament and pressure sensitive tapes $11.0 MM November 2, 2015

Acrylic tapes $41.9 MM September 2, 2016(1)

Industrial and specialty tapes $67.0 MM July 1, 2017

Woven products $13 MM May 11, 2018

Protective packaging $146 MM August 3, 2018

Business Acquisitions


Note: Amounts in USD Millions

(1) IPG acquired 74% ownership stake in Powerband.

(2) IPG acquired 55% of Airtrax; for additional information please refer to the Capstone Partnership section of the 2018 Second Quarterly Report.

(3) Purchase price remains subject to purchase price adjustments.

(2)

(3)


• August 3, 2018 - the Company acquired 100% of the outstanding equity value in Polyair Inter Pack Inc.

(“Polyair”) for a total cash consideration of approximately $146 million (funded from the 2018 Credit Facility),

subject to certain purchase price adjustments.

• Polyair expected to generate approximately $133 million of revenue, approximately $14 million in adjusted

EBITDA in the twelve months ending December 31, 2018 and should be accretive to the Company earnings in

2019, excluding M&A Costs. Deal and integration costs are expected to be approximately $2 million and $3 to

$4 million, respectively, with the majority of integration costs to be recognized during 2019 and 2020.

• Polyair expected to generate approximately $20 to $22 million in adjusted EBITDA by 2021, which includes

synergies and organic growth driven primarily by the e-commerce business channel. Post-transaction

valuation multiple is expected to be approximately seven times adjusted EBITDA.

Other Highlights


Capstone Partnership

On May 11, 2018, the Company acquired substantially all of the assets

and assumed certain liabilities of Airtrax. As part of the agreement, the

minority shareholders of Capstone have contributed in kind certain

assets and liabilities valued at approximately $13 million and formerly

attributed to Airtrax’s woven product manufacturing operations in

exchange for newly-issued shares of Capstone. On August 10, 2018,

the Company acquired additional shares of Capstone in exchange for

approximately $3.6 million in cash as part of the same overall

transaction. As a result of this purchase, the Company now has a

controlling 55% ownership stake in Capstone with the minority

shareholders of Capstone owning 45%.

Cantech Acquisition Synergies

In order to further expand on operational synergies gained from the Cantech Acquisition completed in July 2017, the

Company has set out a plan to close its Johnson City, Tennessee manufacturing facility and transfer production to

other existing manufacturing facilities. The Company believes these changes will generate additional annual cost

savings of between $1.5 and $2.0 million by reducing its manufacturing overhead footprint while simultaneously

improving machine utilization in its existing plants. As a result, total annual synergies gained from the Cantech

Acquisition are now expected to be between $3.5 and $6.0 million by the end of 2019, an increase from the prior

estimate of between $2.0 and $4.0 million.

Chopanki, India


• Cash flow based facility of $600 million negotiated in June 2018

• As of June 30th, 2018:

– Total cash and loan availability was $271.9 million

• For the quarter ending June 30th, 2018, the average cost of debt was 3.9%

• Leverage ratio(1) expected to be 3.2x following the Polyair acquisition

Source of Funds

Cash Flow Based FacilityKey Terms

Facility$200 million term loan, amortizing 35% over five years

$400 million revolving credit facility

Incremental Facility

(Accordion Feature)$200 million

PricingBenchmark interest rate of the company’s choice (2) + spread

LIBOR + spread (1.25% to 2.50%)

Key Negative

Financial Covenants

(1) Consolidated Secured Net Leverage Ratio < 3.50

(2) Interest Coverage Ratio > 3.0

Maturity June 14, 2023

(1) Non-GAAP financial measure: Net debt, divided by trailing twelve month (“TTM”) proforma adjusted EBITDA which includes twelve months of Adjusted EBITDA from Polyair, expected at the end of the third quarter of

2018.

(2) The Company can chose to borrow Eurocurrency rate loans, base rate loans, or prime rate loans with benchmark interest rates dependent on LIBOR, Fed Funds, and BOA Prime rate, respectively.

Q2 2018 compared to Q2 2017:

• Gross margin decreased to 21.9% from 22.5% primarily due to the Cantech Acquisition and the Airtrax Acquisition, partially offset

by an increase in spread between selling prices and combined raw material and freight costs.

• Adjusted EBITDA Margin(1)(2) decreased to 13.9% from 14.8% primarily due to an increase in variable compensation expense and

the dilutive impact of the Cantech Acquisition, partially offset by an increase in spread between selling prices and combined raw

material and freight costs.

2018 Q2 Results


in millions US $Q2 2018 Q2 2017

Change

%

2018

Q2 YTD

2017

Q2 YTD

Change

%(except per share amounts)

Revenue $249.1 $210.2 18.5% $486.3 $417.3 16.5%

Gross profit $54.5 $47.4 15.0% $104.9 $96.5 8.7%

IPG Net Earnings $15.1 $10.2 48.5% $26.5 $23.7 12.0%

Adj EBITDA(1) $34.6 $31.1 11.3% $64.8 $61.5 5.4%

IPG EPS, fully

diluted$0.26 $0.17 49.6% $0.45 $0.40 13.4%

(1) Non-GAAP financial measure. Please see “Safe Harbor Statement” for an explanation of the Company’s use of this measure and a cross-reference to a reconciliation to its most directly comparable GAAP measure.

(2) Adjusted EBITDA as a percentage of revenue.


Outlook

• Revenue and adjusted EBITDA in the third quarter of 2018 are expected to

be greater than in the third quarter of 2017

(1) The Company's expectations for the fiscal year have been updated to include the impact of the Polyair Acquisition.

(2) Excluding any significant fluctuations in selling prices caused by unforeseen variations in raw material prices.

(3) These expectations exclude the potential impact of changes in the mix of earnings between jurisdictions and any new guidance or legislative revisions made with respect to the Tax Cuts and Job Acts

enacted into law in the United States on December 22, 2017.

Fiscal Year 2018 Current Guidance

Revenue growth(2) Between 16% and 18%

Adjusted EBITDA $140 to $150 million

Total capital

expenditures$80 to $90 million

Effective tax rate(3) 18% to 23%

Cash taxes paid(3) Less than 1/3rd of income tax expense

Thank You!


Documents

IPG Investor Presentation · Capstone Greenfield Project IPG Investor Presentation 14 • Objective to secure low-cost supply for North American woven products market. • Approximately