Q2 2013 FINANCIAL RESULTS August 13, 2013

1. Q2 2013 FINANCIAL RESULTS August 13, 2013

2. 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 or subscribe 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 or commitment 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 be reproduced, 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 or distributed any other jurisdiction which prohibits the same except in compliance with applicable securities laws. Any failure to comply with this restriction may constitute a violation 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 to the accuracy, completeness or fairness of the information or opinions contained in this Presentation and no responsibility or liability is accepted by any person for such information or opinions.  In furnishing this Presentation, the Company does not undertake or agree to any obligation to provide the attendees with access to any additional information or to update this Presentation or to correct any inaccuracies in, or omissions from, this Presentation that may become apparent.  The information and opinions contained 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 or other variations of these words or other comparable words or phrases, are intended to identify forward-looking statements. The forward-looking information is based on certain key expectations and assumptions made by the Corporation or KPLP, including the completion of the TAD Project on time and within budget, continued growth of the U.S. private label market and demand for TAD products in the U.S., orders for the TAD machine’s products, the amount and timing of distributions made by KPLP, Kruger Inc.’s (“Kruger”) cash requirements and expected savings from the Business Rationalization Project. The financial outlook that KPLP Management provides concerning the potential incremental EBITDA generated by the TAD Project by 2017 may be considered forward-looking information and is based on additional key expectations and assumptions, including but not limited to (i) limited incremental overhead relating to the operation of the TAD machine and distribution and sale of products, (ii) the TAD machine operating at near full capacity and products being sold at prices consistent with current market prices, adjusted for inflation, (iii) a cost of pulp and energy and a selling price of finished products based on recent prices, adjusted for inflation, (iv) Canadian and United States currencies at parity, and (v) the timely completion of the TAD Project within budget. Although the Corporation and KPLP believe that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information since no assurance 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 management estimates.

3. CORPORATE STRUCTURE KRUGER INC. PUBLIC INVESTORS 100% KP TISSUE INC. 83.2% KRUGER PRODUCTS L.P. 16.8%* K.T.G. (USA) INC. Existing Memphis OperationsTAD Project Kruger Products L.P. is the operating company KP Tissue Inc. is the publicly traded entity * Percentage as of July 15, 2013. As of June 30, 2013 was 16.9%

4. KRUGER PRODUCTS L.P. • The following presentation is to review Kruger Products L.P. • Q2 2013 financial results

5. PRESENTERS MARK HOLBROOK • MARIO GOSSELIN Chief Executive OfficerKP Tissue Inc. & Kruger Products L.P. • Chief Financial OfficerKP Tissue Inc. & Kruger Products L.P.

6. Q2 2013 HIGHLIGHTS Revenue up 6.7% to $246.8 million As planned, increased promotional activities during Q2 lead to higher revenue and increased market share Market share gains reported in all consumer product categories in Canada EBITDA of $31.7 million, the highest level since 2009 TAD Project and customer traction progressing as planned Cash position stood at $78.4 million Ranked #1 in Advantage Survey among the largest CPG companies in Canada

7. CANADA’S LEADING TISSUE COMPANY Bathroom Tissue (Dollar Market Share in Parentheses) Facial Tissue • (Dollar Market Share in Parentheses) Paper Towels • (Dollar Market Share in Parentheses) Source: Nielsen; dollar market share for the 52-week period ended June 29, 2013.

8. QUARTERLY FINANCIAL SUMMARY

9. QUARTERLY SEGMENTED RESULTS

10. Q2 2013 REVENUE COMPARED TO Q2 2012 • Q2 2013 revenue increased 6.7% (9.5% without impact of Parent Roll Business) over Q2 2012 based on the combination of the following factors: • Solid growth in Consumer segment of 12.4% related to increased promotional activities in Canadian market and from TAD products • Reduced revenue related to rationalization of parent roll business • Revenue from Other segment was $1.4 million in 2013 versus $7.4 million in 2012 • Slight revenue decline in AFH segment

11. Q2 2013 REVENUE COMPARED TO Q1 2013 • Q2 2013 revenue increased 11.3% over Q1 2013 based on the combination of the following factors: • 11.4% increase in Consumer revenue segment • 13.3% increase in AFH revenue segment

12. Q2 2013 EBITDA COMPARED TO Q2 2012 • Q2 2013 EBITDA increased by $2.3 million over Q2 2012 based on the combination of the following factors: • Higher revenue of 6.7% • Benefits from Business Rationalization Project • Lower gross margin (29.8% in Q2 2013 versus 30.3% in Q2 2012) primarily due to higher pulp and energy costs • Start-up costs related to the TAD Project (see page 16 for more details) • Operating expenses of $52.4 million in Q2 2013 compared to $47.5 million in Q2 2012. Other key factors in the variation are: • Increased freight and warehousing costs related to higher revenue • Higher marketing expenses • Cost of being a public company • Reduction in Kruger Inc. management fees

13. Q2 2013 EBITDA COMPARED Q1 2013 • Q2 2013 EBITDA increased by $6.6 million over Q1 2013 based on the combination of the following factors: • Higher revenue of 11.3% • Higher gross margin (29.8% in Q2 2013 versus 29.1% in Q1 2013) due to improved product mix partially offset by higher commodity prices • Start-up costs related to the TAD Project (see page 16 for more details) • Operating expenses of $52.4 million in Q2 2013 compared to $47.9million in Q1 2013. Other key factors in the variation are: • Increased freight and warehousing costs related to higher revenue • Higher marketing expenses

14. NET DEBT/LTM EBITDA

15. CAPEX

16. TAD PROJECT START-UP COSTS $MM

17. TAD PROJECT UPDATE TAD products currently on the shelves of some major U.S. retailers Customers lined up to take full 2013 production capacity and now working on 2014 Remain on track for gradual TAD product sales ramp-up in 2013 Continue to expect a modest positive contribution to EBITDA for fiscal year 2013

18. CONCLUSION Short-term pressure expected from higher commodity prices Brands gained market share in Canada with facial tissue at an all-time high Consumer channel revenue up 8.5% year-to-date Customer traction for TAD products as planned Significant market opportunities in the premium private label market segment Solid balance sheet More focus on high return CAPEX projects in second half of 2012 Continue to review potential M&A opportunities