Schweitzer-Mauduit

NYSE: SWM

First Quarter 2010

2

Key Investment Highlights

• #1 Global position in cigarette paper and reconstituted tobacco products

• Deep customer penetration and longstanding relationships with western

multinational cigarette companies spanning over 50 years

– Market presence in China for 16 years

• Superior product portfolio featuring high value products

• Regulatory backdrop driving strong growth prospects for “safer” cigarettes

• Executed Asian expansion initiatives with additional opportunities on horizon

• Successfully restructured manufacturing operations driving improved

efficiency and profitability in higher cost regions

• Seasoned management team with over 100 years of industry & manufacturing

experience

3

Schweitzer-Mauduit Profile – Financial Highlights

(1) Includes restructuring and impairment

(2) Excludes restructuring and impairment

$158.4

$688.2

$0.88

$11.8

$30.7

$13.5

$13.3

$184.1

1Q09

$1.19Diluted Earnings per share (2)

$41.7Adjusted EBITDA (2)

$(21.3)Net Debt

$771.5Total Assets

$31.4Cash from Operations

$21.8Net Income (2)

$18.6Net Income (1)

$193.0Net Sales

1Q10(Amounts in Millions, Except Per Share

Amounts)

4

Agenda

Overview of Schweitzer-Mauduit����

Successfully Restructured Operations

Reconstituted Tobacco Leaf (RTL)

Low Ignition Propensity Tobacco Paper

Financial Review

5

Corporate Overview

• Founded in 1545, Schweitzer-Mauduit International’s (“SWM” or the “Company”) strategic focus has been on cigarette papers since the early 1900s

• Became a public company in December 1995 through a spin-off by Kimberly-Clark Corporation

• Market leadership in tobacco-related specialty paper products

– Leading manufacturer of lower ignition propensity (“LIP”) cigarette paper

– Sole independent pioneer of reconstituted tobacco leaf (“RTL”) products

• Global Presence – Sales to 90 Countries Worldwide

RTL Expansion Opportunities (Asia)Operation Sites

6

Management Strategy to Deliver Growth

• Finalize restructuring

activities in France and the

U.S. by 2010

• Optimize cost structure

through repositioned

manufacturing footprint

– Company-wide commitment

to operational excellence

– Shift production to lower cost

regions

Leading Global Manufacturer of Fine Papers and Related Products for the Tobacco Industry

• Establish China paper

JV as technology leader

on domestic premium

brands

• Develop new Philippines

RTL facility

• Create new China JV to

expand RTL capabilities

in the region

• Expand sales of RTL

products through new

production capacity and

increased market

penetration in Asia

• Capitalize on regulatory

requirements for high

growth LIP papers

Continue to upgrade

and expand

operations in Asia

Focus on growth

through high value

products & technology

Complete rationalization

of base paper

manufacturing profile

7

Substantial Market Growth Prospects Globally

Global Cigarette Consumption:

• World-wide cigarette consumption estimated

at 6.2 trillion units

– Growing 0.5% to 1.0% annually

• Market shifting from the West to the East

– Asia growing 2.5% to 3.0% annually

World Cigarette Production by Geography in 2009

SWM Sales by Geography in 2009 1

Source: SWM management

1 Total sales include $ 740 mm for SWM and $32 mm for its unconsolidated joint venture, CTM

SWM Strategy is to Target High Growth Developing Markets

Eastern Eu rope

1 5 %

Western Eu rope

1 1 %

Nor th Am er ica

6%

Latin Am er ica

5 %

Other

4%

Asia Pacific

2 2%

Ch ina

3 7 %

Eastern Eu rope,

1 0%

Ch ina , 9%

Asia /Pacific, 1 1 %

Latin

Am er ica ,

7 %

Other , 3%

North Am er ica ,

2 9%

Western

Eu rope,

3 1 %

0

1,000

2,000

3,000

4,000

5,000

6,000

1995 1996 19971998 1999 20002001 2002 20032004 2005 20062007 2008 2009

Mill

ion U

nits

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

% o

f Pro

ductio

n

Production Developed Countries Production Developing Countries

% Developed Countries % Emerging Countries

8

Full Line of High Value Tobacco-Related Products

• Performance critical to high-speed, low-cost cigarette manufacturing

– Runability

– Consistency

• Premium product quality drives longstanding customer relationships

– Seamless integration with leading global customers’ operations

• Technology and research and development efforts support high-value product applications

– Taste

– Reduced tar, carbon monoxide and nicotine delivery

– Lower ignition propensity

Plug WrapPaper

TippingPaper

ReconstitutedTobacco

CigarettePaper

9

Full Range of Specialty Tobacco Products

� Key to provide full range of products to largest, multinational customers

� More competitive environment due to declining demand in developed world

� SWM restructuring activities focused on maximizing efficiency, reducing costs and shifting capacity towards growth in Asia

Base Paper- Cigarette Paper- Plug Wrap- Tipping Paper- Non-tobacco products

� Controls rate of cigarette combustion by slowing air flow

� High growth due to regulatory-mandated adoption

� European, Australia and likely other Asian countries to adopt through 2012

Lower Ignition Propensity Paper

� Manufactured from tobacco by-products

� Used in cigarette design to provide unique brand taste

� Lower cost than natural tobacco

� Benefitting from regulatory change

Reconstituted Tobacco Leaf

CommentaryProduct Type

10

• Sole independent RTL manufacturer globally

• Leading manufacturer of LIP and only producer of both proven technologies

Leading Global Provider of Cigarette Paper & Related Products

Cigarette Paper (LIP)

RTL

>20%<10%>50%<10%Non-tobacco (% of Net Sales)

Tipping Paper (Base,

Finished)

Plug Wrap (Porous,

Conventional)

Cigarette Paper (Wood, Flax)

Miguel y Costas

Julius Glatz

DelfortSWMKey Products

Global Positioning: Tobacco Paper 1

Note: Circles to left reflect relative estimated market strength by productSource: Company filings, SWM management1 Market share by volume, excluding China2 SWM volumes exclude production from its facilities in France (LTR and

Malaucène)

SWM²

(U.S.)

36%

Delfort (Austria)

34%

Julius Glatz

(Germany)

12%

Miguely Costas

(Spain)

8%Other

10%

11

Strong Relationships with Leading Global Players

• Top six customers account for approximately 80% of the global market (incl. China)

– Relationships averaging over 50 years among six leading western multinational customers

2009 Global Cigarette Production (Units) SWM 2009 Sales by Customer (US $)1

Source: SWM management1 Sales include SWM’s $740 mm and its unconsolidated joint venture, CTM’s, sales of $32 mm

Imperial

5%

Japan Tobacco

9%

BAT

1 1%

China

38%

Other

20%

Philip Morris

International

1 4%

Philip Morris USA

3%

Imperial

8%

China

8%

BAT

14%

Other

30%

Philip Morris

USA

1 1%

Japan Tobacco

1 1%

Philip Morris

International

18%

12

Strong Intellectual Patent Protection

Extensive and Expanding Patent Portfolio

• 150 patents granted (80 patents pending) (1)

– Covers cigarette Papers, RTL and cigar wrapper/binder products/processes

Industry-Leading LIP Patent Protection

• 59 patents plus 18 patents pending and 261 Independent Claims covering LIP

– Patent portfolio provides first-mover advantage and significant barriers to entry

– Establishes SWM as the world's leading independent producer of papers used for LIP cigarettes

– Covers all major components of LIP production: smoking article, wrapper and process

• Smoking article = 78 Independent Claims in 32 countries

• Wrapper = 84 Independent Claims in 32 countries

• Process = 99 Independent Claims in 30 countries

– Patent life exclusivity expiring 2017 through 2022

(1) As of 12/31/09

13

Agenda

Overview of Schweitzer-Mauduit����

Successfully Restructured Operations����

Reconstituted Tobacco Leaf (RTL)

Low Ignition Propensity Tobacco Paper

Financial Review

14

Significant Base Paper Turnaround Implemented

11

37

4.8

10.2

15.3

12

31

35

17

$0

$5

$10

$15

$20

$25

$30

$35

$40

2006 2007 2008 2009 2010e 2011e

$ Millions

Cash Restructuring Costs Operating Profit Benefit

• Significant transformation and improvement

executed in base paper manufacturing profile:

• Over $67 million in one-time cash costs invested

– Additional $50 million of non-cash one-time costs

• $35 million run-rate operating income benefit

– $17 million realized in 2009

• Base papers restored to profitability in 2009

• Restructuring implemented in France and the Americas due to excess manufacturing capacity

– PDM (France) shutdown 3 paper machines

– Lee (U.S.) shut down facility

– Brazil restructured – exited coated papers

– Transferred paper production from U.S. to Brazil

– Malaucène (France) closing facility

– France – announced general staff reduction

– Spotswood (U.S.) shutting down paper machine

SWM Restructuring Cash Costs & Benefits

Source: SWM management

15

Agenda

Overview of Schweitzer-Mauduit����

Successfully Restructured Operations����

Reconstituted Tobacco Leaf (RTL)����

Low Ignition Propensity Tobacco Paper

Financial Review

16

RTL Represents a Key Long-Term Growth Driver

• Today SWM accounts for over 50% of global RTL production

– SWM’s expects market share to grow with Asia expansion

• RTL represents 10-15% of the tobacco blend of American cigarettes

• Global RTL demand of approximately 150K tons (ex. China), growing ~ 3% per year

– 80% of RTL consumption in North America and Europe

– 70K tons used in China – 150K tons by 2015 will drive long-term growth (up from zero in 2004)

– Robust growth to be driven by all of Asia

• Regulatory efforts to reduce tar / nicotine delivery in cigarettes drives demand

– Chinese government currently working to reduce tar / nicotine levels – efforts will effectively double market

• Phased into tobacco blends very slowly by cigarette manufacturers

Total: 150K MT

Global RTL Market Positioning (ex. China)

Source: SWM management

SWM

53%

Reynolds

17%

Philip Morris

USA

11%

Japan

Tobacco

11%

KTG

7%

17

Overview of the Reconstituted Tobacco Process

Tobacco By-Products Water

FibrousPortion

Web formation

SolublePortion

Concentration

Reconstituted tobacco

Separation

Key Benefits

• Batch process for each tobacco blend (e.g. Marlboro)

• RTL adds consistency, flavor and other key attributes for cigarette manufacturers

• Reduced total cost for cigarette production by off-setting new tobacco cost

• SWM acts only as a tolling agent in the process

– SWM does not take on product ownership and maintains no raw material cost risk

Similar manufacturing process to paper products creates a uniform high quality product for customers

18

Significant Strategic Advantages in RTL

• SWM is the sole independent RTL manufacturer globally

– Limited competition from “in-house” producers drives highly attractive

market share

• Growth prospects better than broader cigarette paper market and

exceed cigarette production growth

– Attractive growth prospects for RTL in Asian markets through SWM’s

planned projects in the Philippines and China

– Beneficial global regulatory changes in process

• Attractive margins, given RTL is essentially a tolling operation

19

Opportunities to Expand the RTL Franchise Globally

• Philippines project an estimated $117 million investment

– Production to begin in late 2011

– Potential $65 - $70 million annual revenue

– Run-rate operating profit margins exceeding 40%

– >20% project rate of return

• China Joint Venture an estimated $25 million equity investment

– Total investment estimated at $135 -$140 million

– Two-year construction period

¹ China JV reflects 100% of venture’s projected sales volume

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

200520062007200820092010

20112012201320142015

Metric Tons

Base RTL (France) Philippines China JV¹

SWM RTL Supply Outlook

20

Overview of SWM’s Planned RTL Expansion in Asia

• Driven by demand from multiple leading

customers for second source of RTL production

– Agreement reached with Japan Tobacco; pre-sold

33% of capacity

– Advanced discussions with second customer ongoing,

which would raise pre-sold capacity to ~50%

• Standalone site Manila-area industrial park

– Economic development zone

• Estimated $117 million investment needed

China Joint Venture

• Driven by initiation of RTL use in Chinese

market – robust future growth opportunity

– Response to Chinese regulatory driven need for RTL

– Approximately 67% of output to supply two cigarette

companies that will be partners in the JV

• Standalone site in Yuxi, Yunnan province

–China’s largest tobacco region

• Estimated $25 million equity investment

–Total estimated investment of $135-$140 million

–Financed two-thirds with local debt

Philippines Facility

• Planned Asian facility additions in the Philippines and China expected to add

approximately 30,000 MT annual RTL capacity each

• Anticipated two-year construction period for each facility – Philippines to finish in 2011

21

Agenda

Overview of Schweitzer-Mauduit����

Successfully Restructured Operations����

Reconstituted Tobacco Leaf (RTL)����

Low Ignition Propensity Tobacco Paper����

Financial Review

22

1.5 1.5 2.5

5.5

9.4

17 .6

27.1

46.4

50.3

0

5

10

15

20

25

30

35

40

45

50

55

2005

2006

2007

2008

20092010E

2011E2012E2013E2014E

LIP Volume

Canada US

Australia / Finland EU

S. Africa / S. Korea

LIP Market a Long-Term “Game Changer” for SWM

• Increasing LIP adoption driven by governmental regulation

– Only current viable technology with market acceptance

• Represents a high-margin product driven by technological advantages

– Extensive portfolio of SWM patents and trade secrets

• SWM currently produces two approved LIP products

– Online product developed with Philip Morris

– Offline product manufactured at Newberry (U.S.) facility and a third party converter

Source: SWM management

Global LIP Market Development(000 metric tons)

Areas of low air diffusion

23

Regulatory Backdrop Favors LIP: Global Adoption

• North American LIP compliance requirements

now at 100%

• EU nations have initiated LIP regulatory process

– Potentially 2x North American market size

– Likely effective starting in 2011

Growing Global Commitment to LIP Paper

Source: SWM management

Regulation in Place Regulation Pending

• Australia LIP regulation effective March

2010, Finland in April 2010

• South Africa, South Korea and the

Philippines considering regulation

• Substantial margin improvement potential

24

Agenda

Overview of Schweitzer-Mauduit����

Successfully Restructured Operations����

Reconstituted Tobacco Leaf (RTL)����

Low Ignition Propensity Tobacco Paper����

Financial Review����

25

First Quarter 2010 Financial Highlights

(1) Includes restructuring and impairment

(2) Excludes restructuring and impairment

$158.4

$688.2

$0.88

$11.8

$30.7

$13.5

$13.3

$184.1

1Q09

$1.19Diluted Earnings per share (2)

$41.7Adjusted EBITDA (2)

$(21.3)Net Debt

$771.5Total Assets

$31.4Cash from Operations

$21.8Net Income (2)

$18.6Net Income (1)

$193.0Net Sales

1Q10(Amounts in Millions, Except Per Share

Amounts)

26

SWM Financial Performance Over Time

(US$ in millions)

Adj. Operating Profit Adj. EBITDA

Adj. Earnings Per Share Free Cash Flow¹

Note: Adjusted financials exclude restructuring and impairment expenses 1 Free cash flow defined as operating cash flow less capital and software spending less dividends.

$26

$42 $39

$103

2006 2007 2008 2009

$34

YTD 2010

$58

$75 $73

$142

2006 2007 2008 2009

$42

YTD 2010

$0.83

$1.20$0.97

$4.25

2006 2007 2008 2009

$1.19

YTD 2010

$29

$5$(17)

$33

2006 2007 20082009

$15

YTD 2010

27

Capital Structure & Liquidity Overview

$70Less: cash

$49 Total Debt

$(21) Net Debt

2 Other

3 Bank Overdraft

10 French Employee Profit Sharing

34 Euro Revolver

$--U.S. Revolver

Amount at 3/31/2010Facility

Capital Structure

Debt Maturity Profile

(US$ in millions)

2010 Cash Uses:

• Dividends – $0.15 per quarter (unchanged since second quarter of 1996)

• Capital spending expected to be $105 - $115 million, which includes $60 - $70 million for Philippines RTL project and $25 million for European LIP projects

• Projected equity injection for China RTL JV of $13 - $20 million

• Restructuring-related severance payments expected to be $35 - $40 million

• Other cash needs expected to be $13 - $20 million (including capitalized software spending)

$6$2

$34

$4 $3

2010 2011 2012 2013 2014

Source: Company public filings, SWM management

28

Key Takeaways

• Leading global full-line supplier in the tobacco-related papers industry

• Strong global market position

• Leading position in growing Asian markets

• Focus on high value-added sectors of the market

• Reputation for premium quality and service

• Unique research and development expertise

• History of profitability and earnings

• Strong cash flow and prudent capital structure

• Repositioning through restructuring for future earnings improvement

• Dynamic management team with significant industry experience

29

Appendix / Additional Slides

Appendix / Additional Slides

30

Regulation G

Certain financial measures and comments contained in this presentation are “non-GAAP” financial measures, specifically measurements which exclude restructuring expenses. We believe that investors’ understanding is enhanced by disclosing financial measurements without restructuring expenses as a reasonable basis for comparison of our ongoing results of operations.

31

Reconciliations of non-GAAP Measures

(US$ in millions)

Adjusted Operating Profit: 2006 2007 2008 2009 YTD 2010

Operating Income 5.3 17.9 16.9 53.0 29.1

Plus: Restructuring & Impairment Expense 21.1 24.0 22.1 50.2 4.8

Adjusted Operating Profit 26.4 41.9 39.0 103.2 33.9

Adjusted EBITDA: 2006 2007 2008 2009 YTD 2010

Net income attributable to SWM (0.8)$ 3.4$ 0.7$ 35.6$ 18.6$

Plus: Interest expense 5.5 5.9 10.5 4.8 0.4

Plus: Tax provision (benefit) (4.2) 0.5 (1.9) 12.7 9.7

Plus: Depreciation & amortization 38.2 39.2 47.4 43.9 10.0

Less: Amortization of deferred revenue (5.9) (6.0) (5.8) (5.1) (1.8)

Plus: Minority interest in earnings of subsidiaries 4.1 8.0 0.2 - -

Plus: Restructuring & impairment expense 21.1 24.0 22.1 50.2 4.8

Adjusted EBITDA 58.0$ 75.0$ 73.2$ 142.1$ 41.7$

Adjusted Earnings Per Share: 2006 2007 2008 2009 YTD 2010

Diluted net income per share (0.05)$ 0.22$ 0.05$ 2.20$ 1.02$

Plus: Restructuring and impairment expense per share 0.88 0.98 0.92 2.05 0.17

Adjusted net income per share 0.83$ 1.20$ 0.97$ 4.25$ 1.19$

Free Cash Flow: 2006 2007 2008 2009 YTD 2010

Cash flow from operations 51.8 71.3 33.3 63.4 31.4

Less: Capital spending (9.6) (47.7) (35.3) (15.3) (9.9)

Less: Capitalized software costs (3.8) (8.9) (6.4) (5.5) (2.7)

Less: Cash dividends paid (9.4) (9.4) (9.4) (9.6) (2.7)

Free Cash Flow 29.0$ 5.3$ (17.8)$ 33.0$ 16.1$

32

Changes in Operating Profit

N.M.

$ 53.0

6.617.124.1(11.7)

$ 16.9

As Reported

FY 2009

N.M.

$ 103.2

30.513.931.5(11.7)

$ 39.0

Without Restructuring

and Impairment

$ 33.9$ 29.1 $ 39.0$ 16.9Operating Profit

6.6(1.4)3.71.9

2.2(1.4)3.61.9

(3.4)(3.6)3.01.1

(10.0)(6.4)14.31.1

Changes by Segment

FranceBrazil

United StatesCorporate

$ 23.1$ 22.8$ 41.9$ 17.9Prior Year Operating Profit

Without Restructuring and Impairment

As Reported

Without Restructuring

and Impairment

As Reported

N.M.N.M.-6.9%-5.6%% Change from Prior Year

YTD 2010FY 2008

$ Millions

33

Profit Comparison

• Operating Profit Comparison (1)

(1) Operating profit excludes restructuring and impairment expense.

$23.1

$4.8

$7 .9

$33.9

$0.1

$1.0

$1.7

$0.8

$1.4$0.3

0

5

10

15

20

25

30

35

40

Mar

ch-0

9

Volume

Mix &

Sellin

g Pr

ice

Infla

tion

ary Co

sts

Cost R

educ

tions

Fixe

d Co

st Abs

orpt

ion

Malau

cene

Non

man

ufac

turin

g Co

sts

Curren

cy Tra

nslatio

n

Mar

ch-10

34

0

100

200

300

400

500

600

700

800

2002 2003 2004 2005 2006 2007 2008 2009 Q 1 2010

Changes in Net Sales in Relation to EPS

Currency $ 9

Price/Mix 10

Volume (10)

$4.25

(1) Excludes restructuring and impairment

EPS(1) $2.17 $2.28 $2.36 $1.26 $0.83 $1.20 $0.97

$566

$ M

illio

ns

$768

$501$567

$658 $670 $655$715

$193$184

$1.19

35

Manufacturing Cost Components – 2009

Labor

28%

Wood Pulp

8%

Energy

13%

Chemicals

6%D,T,I

8%

Veg. Fiber

5%

Other

32%

36

Capital Spending

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

$100

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e

Millions

Average

Banded Cigarette Paper LTRI No. 3

PdMRestructuring

Brazil #6 PM

Philippine RTL

EU LIP

37

Safe Harbor Statement

• This presentation may contain “forward-looking statements.” All statements that address operating performance, events or developments that we expect or anticipate will occur in the future are forward-looking statements. Caution should be taken not to place undue reliance on any such forward-looking statements because actual results may differ materially from the results suggested by these statements. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In addition, forward looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience and present expectations or projections. These risks and uncertainties include, but are not limited to, those described in Part I, “Item 1A. Risk Factors” and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2009 and those described from time-to-time in our periodic and other reports filed with the Securities and Exchange Commission.