#1Lydall R Investor Presentation March, 2021 THIS DOCUMENT, OR AN EMBODIMENT OF IT IN ANY MEDIA, DISCLOSES INFORMATION THAT IS PROPRIETARY, IS THE PROPERTY OF LYDALL, INC. AND/OR ITS AFFILIATE (COLLECTIVELY, "LYDALL"), IS AN UNPUBLISHED WORK PROTECTED UNDER APPLICABLE COPYRIGHT LAWS AND IS DELIVERED ON THE EXPRESS CONDITION THAT IT IS NOT TO BE USED, DISCLOSED, OR REPRODUCED, IN WHOLE OR IN PART (INCLUDING REPRODUCTION AS A DERIVATIVE WORK), OR USED FOR MANUFACTURE FOR ANYONE OTHER THAN LYDALL WITHOUT ITS WRITTEN CONSENT. NO RIGHT IS GRANTED TO DISCLOSE OR SO USE ANY INFORMATION CONTAINED HEREIN. ALL RIGHTS RESERVED. OLYDALL, INC. 2021 1#2Forward Looking Statement This presentation contains "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are intended to provide management's current expectations for the future operating and financial performance of the Company based on current expectations and assumptions relating to the Company's business, the economy and other future conditions, and generally can be identified through the use of words such as "believes," "anticipates,” “may,” “should,” “will,” “plans,” “projects," "expects," "estimates," "forecasts," "predicts," "targets," "prospects," "strategy," "signs," and other words of similar meaning. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause actual results to differ materially and adversely from those expressed in any forward-looking statement. Investors, therefore, are cautioned against relying on any of these forward-looking statements. Lydall's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and other Securities and Exchange Commission filings discuss important risk factors that could affect the Company's business, results of operations and financial condition. These forward-looking statements speak only as of the date of this presentation, and Lydall does not assume any obligation to update or revise any forward-looking statement made in this presentation. This presentation contains non-GAAP financial measures as defined by SEC regulations. The Appendix of this presentation. includes a reconciliation to the most comparable GAAP measures. Lydall USE OR DISCLOSURE OF INFORMATION CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTIONS ON THE TITLE SLIDE 2#3POSITIONING Transforming and accelerating actions to unlock shareholder value C Kil EXECUTION GROWTH LIQUIDITY DISCIPLINED Innovative bespoke solutions in diverse segments Operational excellence to enhance margins and cash flow Strong secular trends in attractive end markets Strong balance sheet provides flexibility while funding strategic growth Capital allocation to fund additional growth Lydall USE OR DISCLOSURE OF INFORMATION CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTIONS ON THE TITLE SLIDE 3#4Lydall solves some of the worlds most pressing challenges thru deep materials science and engineering expertise Specialty Filtration: 2020 Sales $239M Advanced Materials Solutions: 2020 Sales $542M Indoor Air Quality Filtration Media for PPE Sealing Solutions Outdoor Air Quality Lydall Liquid Filtration Media American American Thermal Management Solutions Advanced Lightweight Composite Materials Automotive Acoustical Solutions Reference Appendix for reconciliation to segment reporting; USE OR DISCLOSURE OF INFORMATION CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTIONS ON THE TITLE SLIDE 4#5Lydall at a Glance (NYSE:LDL) Financial Highlights | 2020 Sales ($M) 34% 38% $764 28% Net Debt Leverage Ratio 3 (December 31, 2020) 2.5x Adjusted EBITDA 1 ($M) Adj. $67 EBITDA 8.7% Margin¹ Free Cash Flow 2 ($M) $41 Global Footprint | 2020 Revenue by Region & Locations 65% N. America 29% EMEA ~3,500 employees globally 6% Asia Lydall 1 Reference Appendix for reconciliation between adjusted financials and GAAP financials; 2 FCF Cash flow from operations less capex; reference Appendix for 2020 data Performance Materials Technical Nonwovens Thermal Acoustical Solutions 3 Net Debt = (Total Debt less cash and equivalents at end of period) / (Trailing Twelve Month Adjusted EBITDA) USE OR DISCLOSURE OF INFORMATION CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTIONS ON THE TITLE SLIDE 5#6Delivering Stable, Profitable Growth EXECUTION PRIORITIES Consistently evolving portfolio towards Specialty Filtration and Advanced Materials Solutions • Leveraging installed base and global footprint to pursue new adjacencies and innovation •Investing in highest ROIC activities. Lydall USE OR DISCLOSURE OF INFORMATION CONTAINED ON THIS SHEET IS SUB 101 GKH Fixed Pressure Test Stand 6#7Long-Term Roadmap to Value Creation 2. Grow and Differentiate 2021 - 2023 Fixing the core and optimizing the portfolio Leveraging our optimized portfolio to further expand into high-growth areas 3. Accelerate Value Creation 2023 - Forward Delivering enhanced shareholder returns over long-term Clear, Consistent Strategy for Profitable Growth 1. Fix and Focus 2020-2021 Lydall OPTIMIZING LYDALL'S PORTFOLIO TO DRIVE LONG-TERM GROWTH AND ACCELERATE DELIVERY OF SHAREHOLDER VALUE USE OR DISCLOSURE OF INFORMATION CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTIONS ON THE TITLE SLIDE 7#8Global Megatrends underpinning Lydall's Strategy AWARENESS OF INDOOR AIR QUALITY GOES MAINSTREAM DOMESTIC SUPPLY CHAIN COMMANDS ATTENTION VEHICLE ELECTRIFICATION REDEFINING SAFETY AND SOUND Driving demand for specialty filtration across industrial, commercial, residential and medical/health sectors Sustained, localized demand for PPE even as vaccination efforts ramp Increased demand for advanced materials that meet changing customer expectations Embedded Partnerships CDC Centers for Disease Control and Prevention EPA CDC 24/7: Saving Lives, Protecting People™ International ISO Organization for Standardization ASTM INTERNATIONAL Helping our world work better Lydall ASHRAE United States Environmental Protection Agency Shaping Tomorrow's Built Environment Today Association of the inda Nonwoven Fabrics Industry ADVANCING ENGINEERED MATERIAL SOLUTIONS The New York Times Biden Signs Executive Order Bolstering 'Buy American' Provisions BAIN & COMPANY Shock-Proof: How to Forge Resilient Supply Chains Flexibility is in, dependence on one region or country is out. abc NEWS Biden says he will replace the entire federal fleet with electric vehicles Ford Ford Europe Goes All-In on EVs on Road to Sustainable Profitability USE OR DISCLOSURE OF INFORMATION CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTIONS ON THE TITLE SLIDE 8#9Performance Materials (PM) at a Glance Business Highlights ✓ Decades of applications engineering experience to address the most rigorous performance specifications ✓ Complete portfolio of specialty filtration media for high performance residential, commercial, and industrial/clean room applications ✓ Actively engaged in the ever-increasing air quality regulatory requirements and standards globally ✓ Materials science expertise for high performance fiber-based sealing solutions and specialty high temperature and cryogenic insulation applications ✓ Global scale and expertise in wet-laid and fine fiber meltblown media production ✓ Strong customer partnerships fostered by technical expertise and customized solutions Financial Performance¹ 2020 Sales by Region ($M) $265 $245 3% $169 $102 $111 $117 28% ■ North America 13% 15% 14% 14% 21% 12% $265M 69% ■ EMEA ■ Asia T T 2015 2016 2017 2018 2019 2020 Revenue -Adj. EBITDA Margin Estimated Share of Segment Served 2020 Sales by Application Air Filtration² Sealing & Advanced Solutions³ 10% 6% ■ Filtration $265M 45% 55% $2.3B $1.8B ■Sealing & Advanced Solutions Lydall 1 Reference Appendix for reconciliation between adjusted and GAAP financials; 2 Competitors: Hollingsworth & Vose, Ahlstrom Munksjo, Hokuetsu, and Neenah Paper; 3 3 Competitors: Unifrax, Owens Corning, Neenah Paper, EnPro, and Frenzelit USE OR DISCLOSURE OF INFORMATION CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTIONS ON THE TITLE SLIDE 9#10Technical Nonwovens (TNW) at a Glance Business Highlights ✓ Global brands renowned for quality and innovation <>GUTSCHE Texel Textile Engineering TECHNICAL MATERIALS, INC. ($M) Financial Performance¹ ✓ Manufacturing scale and operational resiliency to address diversified end markets and geographic demand trends ✓ Deep expertise in technical needle-woven felt fabrics to address demanding filtration media for industrial dust and pollution control ✓ Extension of core capability to address adjacent markets for medical, acoustical, heat, and safety applications Lydall 2020 Sales by Region $269 $277 $255 $222 10% $139 $156 ■ North America 13% 16% 15% 14% 14% 14% 29% $222M 60% ■ EMEA ■ Asia 2015 2016 2017 2018 2019 2020 Revenue -Adj. EBITDA Margin Estimated Share of Segment Served 2020 Sales by Application Industrial Filtration² Advanced Materials³ ■Industrial Filtration 5% 46% $222M 54% 20% ■ Advanced Materials $0.7B $2.7B 1 Reference Appendix for reconciliation between adjusted and GAAP financials; 2 Competitors: BWF Envirotec, Savings, and Testori; 3 Competitors: Propex, TexTech, TenCate, and Sandler. USE OR DISCLOSURE OF INFORMATION CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTIONS ON THE TITLE SLIDE 10#11Thermal Acoustical Solutions (TAS) at a Glance Business Highlights ✓ Highly engineered solutions to address demanding thermal, acoustical, and electromagnetic interference Financial Performance¹ ($M) $342 $365 $362 $321 $298 $295 ✓ Leverage strong customer relationships and experience to succeed in the 20% 20% 19% 13% 10% 4% transition to xEV platforms globally ✓ Growth aligned with secular trends toward vehicle light-weighting, transition to xEV and regulatory requirements ✓ Vertical integration of fibers and insulation material to capture value ✓ Sole source awards with global OEMs on platforms drives long term sales. Lydall 2015 2016 2017 Revenue 2018 2019 2020 -Adj. EBITDA Margin Estimated Share of Segment Served Heat Shield (Global)² 12% $2.1B Acoustical (U.S.)³ 10% 28% 2020 Sales by Region 6% $295M ■ North America ■ ЕМЕА 66% ■ Asia Light Vehicle Customers GM NISSAN TI Automotive - JOHN DEERE Heavy Truck/Other CATERPILLAR PAULSTRA Ford 长城汽车 MAHLE PACCAR Walters RENAULT TOYOTA MITSUBISHI $1.4B KKAUTEX BOSCH Peterbilt KENWORTH Mercedes-Benz Volkswagen FORSCHE VOLVO CHRYSLER H Garrett Mack POLARIS DAIMLER HONDA ADVANCING HOTION VOLVO TRUCKS 1 Reference Appendix for reconciliation between adjusted and GAAP financials; 2 Competitors: ElringKlinger, Federal Mogul, Dana, and Autoneum; 3 Competitors: Autoneum, Borgers, HP Pelzer Group, and IAC. USE OR DISCLOSURE OF INFORMATION CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTIONS ON THE TITLE SLIDE 11#12Where we are today and tomorrow ע ADJUSTED EBITDA1 2020 2023 2025 $67M $110M - $120M $140M - $160M -65% 75%+ FCF CONVERSION2 ~50% ROIC³ Lydall 7.5% -15% 20%+ ACCELERATING 1 Reference appendix for reconciliation between adjusted and GAAP financials for 2020 2 Free Cash Flow Conversion = (Adj. EBITDA less Capital Expenditures) / Adj. EBITDA; reference Appendix for 2020 data 3 ROIC (Adjusted EBITA after pro-forma tax) / Average (Net PP&E plus Net Working Capital); reference Appendix for 2020 data SHAREHOLDER RETURNS USE OR DISCLOSURE OF INFORMATION CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTIONS ON THE TITLE SLIDE 12#13Clear Path to Nearly Doubling Adjusted EBITDA by 2023 $67M $5 $6 million 2020 GROW & DIFFERENTIATE Lydall FIX & FOCUS $140M - $160M $110M - $120M Near-Term Execution Actions Solidify global leadership in specialty filtration • Deploy new specialty filtration assets • Rationalize manufacturing footprint & focus on high ROIC opportunities • Continue to optimize proven product lines to enhance margins • Long-Term Optimization Priorities Rapidly develop next generation filtration capabilities • Differentiate & grow in attractive markets 2023 ACCELERATE VALUE CREATION 2025 . Direct capital towards high-margin engineered solutions USE OR DISCLOSURE OF INFORMATION CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTIONS ON THE TITLE SLIDE 13#14Capital Allocation Strategy 2015-2019 FCF DEPLOYMENT CASH PRIORITIES Disciplined Reinvestment to Drive Organic Growth 2020-2023 FCF DEPLOYMENT ($M) M&A Share Repurchase M&A Debt Paydown Target Debt/EBITDA Leverage of <2.5x Share Repurchase Debt Paydown Opportunistic Share Repurchases Organic Investment Organic Investment Long-term, Tuck-in Acquisitions Lydall Net Debt and Net Debt Leverage¹ 276 Texel >> GUTSCHE Interace 221 168 Performance Materials 17 57 2016 2017 2018 2019 2020 0.7x 0.2x 3.1x 2.8x 2.5x CLEAR CAPITAL ALLOCATION STRATEGY TO PROVIDE STRONG LIQUIDITY WHILE FUNDING STRATEGIC GROWTH 1 Net Debt Total Debt less cash and equivalents at year end Net Debt Leverage Ratio = Net Debt/ (Trailing Twelve Month Adjusted EBITDA) 14 USE OR DISCLOSURE OF INFORMATION CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTIONS ON THE TITLE SLIDE#15Delivering on our Corporate Responsibility Commitments ENVIRONMENTAL • Create a cleaner, quieter and safer world •Addressing global sustainability megatrends • Strong corporate environmental policy * SOCIAL • Robust supply chain oversight to ensure responsible sourcing Freedom of Association Policy • Ethics and Business Conduct Code Strengthened focus on employee safety initiatives . Expanding D&I Initiatives Beyond Executive Team and BOD GOVERNANCE Independent, involved and experienced Board of Directors • • Strong Board diversity • Anonymous, non-retaliatory whistleblower program 巾 Lydall LYDALL IS FOCUSED ON CREATING A CLEANER, QUIETER AND SAFER WORLD FOR PEOPLE EVERYWHERE USE OR DISCLOSURE OF INFORMATION CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTIONS ON THE TITLE SLIDE 15#16Lydall R USE OR DISCLOSURE OF INFORMATION CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTIONS ON THE TITLE SLIDE 16#17Segment Results ($M) ($M) Performance Materials Technical Nonwovens Thermal Acoustical Solutions 361.6 Tooling 35.1 294.8 264.6 255.3 Sales 245.5 222.3 22.4 Filtration 93.3 120.0 Advanced 111.0 Parts Materials 103.0 326.4 272.4 Sealing & Adv Industrial 152.2 Solutions 144.7 144.3 119.4 Filtration FY-2019 FY-2020 FY-2019 FY-2020 FY-2019 FY-2020 54.4 Adjusted 36.8 35.1 EBITDA and Margin¹ 31.3 29.8 20.5% 9.7% 11.1 12.1% 14.4% 14.1% Lydall FY-2019 FY-2020 FY-2019 FY-2020 FY-2019 3.8% FY-2020 1 Reference Appendix for reconciliation between adjusted and GAAP 17 USE OR DISCLOSURE OF INFORMATION CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTIONS ON THE TITLE SLIDE#18$5.3 Billion Global Filtration Market for Nonwoven Media 57% 2019 Global Market by Technology Lydall 43% ■ Air Filtration ■ Liquid Filtration -10% Air Filtration by Application 28% ■ HVAC (IAQ) PPE/Healthcare 62% ■ Other * 10% Lydall's current share of air filtration media segment • IAQ and PPE markets exceeding 10% CAGR 50% 2019 Global Market by Geography 34% ■ Americas 43% ■ EMEA Percent of Air Filtration market driven by high-performance filters demanding specialty filtration media 23% ■ APAC *Includes Cabin Air and Industrial filtration Source: Internal estimates; Freedonia, BCC, Frost & Sullivan, and INDA 18 USE OR DISCLOSURE OF INFORMATION CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTIONS ON THE TITLE SLIDE#19Strong Corporate Governance - Compensation Base Salary Annual Incentive Long Term Incentive 50% Payout based on relative total shareholder return (TSR) over three-year performance period 50th percentile required for target payout ✓ Vest over 3 years 23% 23% 54% APPROXIMATELY 77% VARIABLE AND AT-RISK COMPENSATION USE OR DISCLOSURE OF INFORMATION CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTIONS ON THE TITLE SLIDE 50% Payout based on return on invested capital (ROIC) over three-year performance period 19#20Strong Corporate Governance - Board Composition Gender and Diversity 38% Diverse Director Tenure 12 year average 3 Diverse 5 Other 3 Newer Directors (10 yrs or less) 5 Experienced Directors (10+ years) Lydall * Director Independence 88% Independent 7 Independent 1 Not Independent AN EXPERIENCED, DIVERSE GROUP OF LEADERS WITH DEEP BUSINESS KNOWLEDGE In addition to gender, which is identified separately, diversity is the representation of ethnic, geographic, cultural and other perspectives USE OR DISCLOSURE OF INFORMATION CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTIONS ON THE TITLE SLIDE 20 20#21Reconciliation of Sales, Free Cash Flow, and ROIC Sales Free Cash Flow / Conversion ROIC ($M) PM Filtration FY-2020 FY-2019 ($M) FY-2020 FY-2019 ($M) FY-2020 FY-2019 TNW Industrial Filtration $ 120.0 $ 93.3 119.4 Net cash provided by operating activities $ 74.2 $ 86.9 Adjusted EBITDA $ 66.6 $ 80.4 144.3 Capital expenditures (33.4) (35.9) Depreciation 27.9 27.1 Specialty Filtration $ 239.3 $ 237.6 Free cash flow $ 40.7 $ 51.0 Adjusted EBITA $ 38.7 $ 53.2 Pro-forma Tax Rate 25% 25% PM Sealing & Advanced Solutions $ 144.7 $ 152.2 Adjusted EBITDA $ 66.6 $ 80.4 EBITA After Tax $ 29.0 $ 39.9 TNW Advanced Materials 103.0 111.0 FCF Conversion 50% 55% Thermal Acoustical 294.8 361.6 PP&E, Net 214.5 $ 221.6 Advanced Material Solutions $ 542.5 $ 624.8 Operating Lease Right-of-Use Assets 22.2 23.1 Other Assets, Net 5.3 6.2 Eliminations (17.8) (25.0) Current Assets 349.4 283.6 Current Liabilities (187.6) (129.9) Total $ 764.0 $ 837.4 Long-Term Lease Liability (17.9) (18.4) Specialty Filtration 31% 28% Invested Capital 385.9 $ 386.2 Advanced Material Solutions 69% 72% Return on Invested Capital 7.5% 9.9% Lydall USE OR DISCLOSURE OF INFORMATION CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTIONS ON THE TITLE SLIDE 21 21#22Segment Details As Reported Adjusted¹ ($ in 000) Q4 2020 Q4 2019 Var $ Var % YTD Q4 2020 YTD Q4 2019 Var $ Var% Q4 2020 Q4 2019 Var $ Var% YTD Q4 2020 YTD Q4 2019 Var $ Var % Net sales Filtration $ 33,547 $ 22,221 $ 11,326 51.0 % $ 119,969 $ 93,314 $ 26,655 28.6% $ 33,547 $ 22,221 $ 11,326 51.0 % $ 119,969 $ 93,314 $ 26,655 28.6% Sealing and Advanced Solutions 39,588 33,577 6,011 17.9% 144,676 152,166 (7,490) (4.9)% 39,588 33,577 6,011 17.9% 144,676 152,166 (7,490) (4.9)% Performance Materials Segment 73,135 55,798 17,337 31.1% 264,645 245,480 19,165 7.8% 73,135 55,798 17,337 31.1 % 264,645 245,480 19,165 7.8% Industrial Filtration 28,942 30,315 (1,373) (4.5)% 119,367 144,320 (24,953) (17.3)% 28,942 30,315 (1,373) (4.5)% 119,367 144,320 (24,953) (17.3)% Advanced Materials 25,479 26,435 (956) (3.6)% 102,973 111,026 (8,053) (7.3)% 25.479 26,435 (956) (3.6)% 102,973 111,026 (8,053) (7.3)% Technical Nonwovens Segment 54,421 56,750 (2,329) (4.1)% 222,340 255,346 (33,006) (12.9)% 54,421 56,750 (2,329) (4.1)% 222,340 255,346 (33,006) (12.9)% Parts 82,959 75,845 7,114 9.4% 272,414 326,436 (54,022) (16.5)% 82,959 75,845 7,114 9.4% 272,414 326,436 (54,022) (16.5)% Tooling 5,116 10,221 (5,105) (49.9)% 22,393 35,141 (12,748) (36.3)% 5,116 10,221 (5,105) (49.9)% 22,393 35,141 (12,748) (36.3)% Thermal Acoustical Solutions Segment 88,075 $ 86,066 2,009 2.3% $ 294,807 $ 361,577 $ (66,770) (18.5)% $ 88,075 $ 86,066 $ 2,009 2.3% $ 294,807 $ 361,577 $ (66,770) (18.5)% Operating income Performance Materials % of net sales Technical Nonwovens % of net sales Thermal Acoustical Solutions % of net sales $ 12,213 (65,278) $ 77,491 $ (46,044) (59,804) $ 13,760 $ 12,886 (777) $ 13,663 $ 16.7% (117.0)% (17.4)% (24.4)% 17.6% (1.4)% 30,528 11.5% 4,697 $ 25,831 1.9% 3,041 3,152 $ (111) 18,599 22,895 $ (4,296) 3,041 3,582 $ (541) $ 18,599 23,915 $ (5,316) 5.6% 5.6% 8.4% 9.0% 5.6% 6.3% 8.4% 9.4% (1,388) 1,720 $ (3,108) (871) 23,590 $ (24,461) (1,125) 3,106 $ (4,231) (351) 24,976 $ (25,327) (1.6)% 2.0% (0.3)% 6.5% (1.3)% 3.6% (0.1)% 6.9% Segment EBITDA Performance Materials $ 17,988 (58,949) $ 76,937 SA $ (22,214) (34,686) $ 12,472 $ 18,661 5,552 $ 13,109 $ 54,358 29,815 $ 24,543 % of net sales 24.6% (105.6)% (8.4)% (14.1)% 25.5% 10.0% 20.5% 12.1% Technical Nonwovens % of net sales 6,412 6,356 $ 56 31,340 35,745 $ (4,405) 6,412 6,786 $ (374) $ 31,340 36,765 $ (5,425) 11.8% 11.2% 14.1% 14.0% 11.8% 12.0% 14.1% 14.4% Thermal Acoustical Solutions 1,749 2.0% 4,272 $ 5.0% (2,523) 10,589 3.6% 33,758 $ 9.3% (23,169) $ 2,012 5,658 $ (3,646) $ 11,109 35,144 $ (24,035) 2.3% 6.6% 3.8% 9.7% % of net sales Lydall' 1Reference Appendix for reconciliation between adjusted and GAAP financials USE OR DISCLOSURE OF INFORMATION CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTIONS ON THE TITLE SLIDE 222#23Reconciliation Between Adjusted and Reported GAAP Financials For the Twelve Months Ended December 31, 2020 As Reported, For the Twelve Months Ended December 31, 2019 As Reported, In thousands except per share data Lydall, Inc Adjustments Adjusted Results Lydall, Inc Adjustments Adjusted Results Net sales Cost of sales Gross profit $ 764,041 $ 764,041 $ 837,398 $ 837,398 619,166 (229) (a) 618,937 684,978 144,875 229 145,104 152,420 (987) (g) 987 683,991 153,407 Gross margin 19.0% 19.0% 18.2 % 18.3% Selling, product development and administrative expenses 129,928 (3,429) (b) 126,499 126,272 (4,671) (h) 121,601 Impairment of goodwill and other long-lived assets 61,109 (61,109) (c) 64,206 (64,206) (i) Restructuring expenses 15,903 (15,903) (d) 767 (767) (j) Operating (loss) income (62,065) 80,670 18,605 (38,825) 70,631 31,806 Operating margin (8.1)% 2.4% (4.6)% 3.8% Employee benefit plans settlement expenses 385 (385) (e) 25,247 (25,247) (k) Interest expense 15,979 15,979 14,262 14,262 Other expense (income), net 2,166 2,166 (1,257) 1,459 (1) 202 (Loss) income before income taxes (80,595) 81,055 460 (77,077) 94,419 17,342 Income tax (benefit) expense (6,833) 7,608 (f) 775 (6,416) 11,451 (m) 5,035 Income from equity method investment (37) (37) (148) (148) Net (loss) income (Loss) earnings per share: Basic Diluted (73,725) 73,447 (278) (70,513) 82,968 12,455 S9 S (4.24) (0.02) (4.24) (0.02) SS $ (4.08) (4.08) S9S9 0.72 0.72 Weighted average number of common shares outstanding: Basic Diluted 17,379 17,379 17,379 17,379 (a) Exclude the reduction-in-force severance expenses of $0.1 million related to the Thermal Acoustical Solutions segment. 17,271 17,271 (b) Exclude the corporate strategic initiatives expenses of $3.1 million and reduction-in-force severance expenses of $0.3 million related to the Thermal Acoustical Solutions segment. (c) Exclude the impairment of goodwill and other long-lived assets expense of $61.1 million related to the Performance Materials segment. (d) Exclude the restructuring expenses of $15.9 million, primarily related to the Performance Materials segment. (e) Exclude the employee benefit plan settlement expenses of $0.4 million. (f) Excludes the tax benefits and expenses realized on the adjustments in (a), (b), (c), (d), and (e) of $7.6 million. (g) Exclude the reduction-in-force severance expenses of $1.0 million across all segments. 17,271 17,326 (h) Exclude the CEO transition expenses of $2.3 million, corporate strategic initiatives expenses of $1.5 million, and reduction-in-force severance expenses of $1.0 million across all segments. (i) Exclude the impairment of goodwill and other long-lived assets expense of $64.2 million related to the Performance Materials segment. (j) Exclude the restructuring expenses of $0.8 million related to the Technical Nonwovens segment. (k) Exclude the employee benefit plans settlement expense of $25.2 million. (I) Exclude the gain on sale from divestiture of $1.5 million. (m) Exclude the tax benefits and expenses realized on the adjustments in (g), (h), (i), (j), (k), and (I) of $11.5 million. USE OR DISCLOSURE OF INFORMATION CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTIONS ON THE TITLE SLIDE Lydall 23#24Reconciliation Between Adjusted and Reported GAAP Financials Year to date 2020 EBITDA For the Twelve Months Ended December 31, 2020 Segments ($ in 000) Performance Materials Technical Nonwovens Thermal Acoustical Solutions Total Corporate Office Net loss Employee benefit plans settlement expenses Interest expense Income tax benefit Consolidated Lydall $ (73,725) 385 15,979 (6,833) Other expense, net 2,166 Income from equity method investment Operating (loss) income (37) Depreciation and amortization (1) $ (46,044) 23,830 $ 18,599 12,704 (871) 11,460 $ (28,316) 47,994 (33,749) $ (62,065) 683 48,677 Employee benefit plans settlement expenses 385 385 Other expense, net 2,166 2,166 Income from equity method investment (37) (37) (37) EBITDA % of net sales (22,214) 31,340 (8.4)% 14.1 % 10,589 3.6 % $ 19,715 SA (35,617) $ (15,902) 2.5 % (2.1)% Strategic initiatives expenses $ SA $ $ 3,138 $ 3,138 Impairment of goodwill and long-lived assets 61,109 Reduction-in-force severance expenses 520 61,109 520 61,109 520 PM restructuring expenses (1) 15,463 15,463 440 15,903 Employee benefit plans settlement expenses 385 385 Discrete tax adjustment 1,439 1,439 EBITDA, adjusted $ 54,358 % of net sales 20.5% 31,340 14.1 % 11,109 3.8 % 96,807 (30,215) $ 66,592 12.4 % 8.7 % (1) For purposes of this schedules the depreciation and amortization expense for the twelve-month period ended December 31, 2020, excludes $5.3 million of accelerated depreciation of property, plant and equipment and other intangible assets in the PM segment since this expense is included in the restructuring expenses of $15.5 million. Lydall EBITDA is reported for Consolidated Lydall data and defined as Net Income before interest, taxes, depreciation, and amortization Segment EBITDA is reported for each operating segment (Performance Materials, Technical Nonwovens, and Thermal Acoustical Solutions) and is defined as Operating Income net of depreciation and amortization expenses, plus income/loss from equity method investments USE OR DISCLOSURE OF INFORMATION CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTIONS ON THE TITLE SLIDE 24#25Reconciliation Between Adjusted and Reported GAAP Financials Year to Date 2019 EBITDA For the Twelve Months Ended December 31, 2019 Segments ($ in 000) Performance Materials Technical Nonwovens Thermal Acoustical Solutions Total Corporate Office Consolidated Lydall Net loss Employee benefit plans settlement expenses Interest expense Income tax benefit $ (70,513) 25,247 14,262 (6,416) Other income, net (1,257) Income from equity method investment Operating income (loss) (148) Depreciation and amortization $ (59,804) $ 25,118 22,895 12,702 $ 23,590 $ (13,319) 10,168 47,988 Employee benefit plans settlement expenses Other income, net Income from equity method investment SA (25,506) $ (38,825) 635 48,623 25,247 25,247 (1,257) (1,257) (148) EBITDA % of net sales (34,686) $ 35,745 33,758 $ (148) 34,817 (148) $ (48,861) $ (14,044) (14.1)% 14.0% 9.3 % 4.0 % (1.7)% Strategic initiatives expenses $ $ $ 1,456 $ 1,456 TNW restructuring expenses 767 Impairment of goodwill and long-lived assets 64,206 CEO transition expenses Reduction-in-force severance expenses 295 ཚི། |ལྔ 767 64,206 767 64,206 2,259 2,259 253 1,386 1,934 9 1,943 Employee benefit plans settlement expenses 25,247 25,247 Gain on sale from a divestiture EBITDA, adjusted 29,815 % of net sales 12.1 % 36,765 14.4 % 35,144 $ 101,724 $ (1,459) (21,349) $ (1,459) 80,375 9.7% 11.8 % 9.6% Lydall EBITDA is reported for Consolidated Lydall data and defined as Net Income before interest, taxes, depreciation, and amortization Segment EBITDA is reported for each operating segment (Performance Materials, Technical Nonwovens, and Thermal Acoustical Solutions) and is defined as Operating Income net of depreciation and amortization expenses, plus income/loss from equity method investments USE OR DISCLOSURE OF INFORMATION CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTIONS ON THE TITLE SLIDE 25