Earnings Presentation Third Quarter 2015

October 21, 2015

Safe Harbor Statement

This presentation contains forward-looking statements, including references to goals, plans, strategies, objectives, projected costs or savings,

anticipated future performance, results or events and other statements that are not strictly historical in nature. These statements are based on

management’s current expectations, forecasts and assumptions. This means they involve a number of risks and uncertainties that could cause

actual results to differ materially from those expressed or implied here. These risks and uncertainties include, but are not limited to the following:

end-user demand for products in the office, technology, and furniture product categories may continue to decline; Essendant's reliance on key

customers, and the risks inherent in continuing or increased customer concentration and consolidations; prevailing economic conditions and

changes affecting the business products industry and the general economy; Essendant's ability to effectively manage its operations and to

implement growth, cost-reduction and margin-enhancement initiatives; the impact of Essendant's repositioning, restructuring and rebranding

activities on Essendant's customers, suppliers, and operations; Essendant's reliance on supplier allowances and promotional incentives;

Essendant's reliance on independent resellers for a significant percentage of its net sales and, therefore, the importance of the continued

independence, viability and success of these resellers; continuing or increasing competitive activity and pricing pressures within existing or

expanded product categories, including competition from product manufacturers who sell directly to Essendant's customers; the impact of supply

chain disruptions or changes in key suppliers’ distribution strategies; Essendant's ability to maintain its existing information technology systems

and the systems and e-commerce services that it provides to customers, and to successfully procure, develop and implement new systems and

services without business disruption or other unanticipated difficulties or costs; the creditworthiness of Essendant's customers; Essendant's ability

to manage inventory in order to maximize sales and supplier allowances while minimizing excess and obsolete inventory; Essendant's success in

effectively identifying, consummating and integrating acquisitions; the risks and expense associated with Essendant's obligations to maintain the

security of private information provided by Essendant's customers; the costs and risks related to compliance with laws, regulations and industry

standards affecting Essendant's business; the availability of financing sources to meet Essendant's business needs; Essendant's reliance on key

management personnel, both in day-to-day operations and in execution of new business initiatives; and the effects of hurricanes, acts of terrorism

and other natural or man-made disruptions.

Shareholders, potential investors and other readers are urged to consider these risks and uncertainties in evaluating forward-looking statements

and are cautioned not to place undue reliance on the forward-looking statements. For additional information about risks and uncertainties that

could materially affect Essendant's results, please see the company’s Securities and Exchange Commission filings. The forward-looking

information in this presentation is made as of this date only, and the company does not undertake to update any forward-looking

statement. Investors are advised to consult any further disclosure by Essendant regarding the matters discussed in this presentation in its filings

with the Securities and Exchange Commission and in other written statements it makes from time to time. It is not possible to anticipate or foresee

all risks and uncertainties, and investors should not consider any list of risks and uncertainties to be exhaustive or complete.

2

Q3 2015 Overview

Solid financial performance – $1.00 Adjusted EPS(1) vs. $1.03(2) last year

– $183.7M operating cash flow YTD—up from $93.7M prior year

Acquisitions delivering as expected – Over $81M incremental sales in Q3 YOY

Completed activities outlined in Q1 2015 – Sold Mexican subsidiary, a non-strategic business

– Workforce & Facility Actions: on track to deliver $6M in savings this year

– Successfully transitioned two facilities to common operating platform in the qtr.

Making refinements to strategy under new CEO – Focus on increasing operating leverage, accelerating revenue growth and

expanding earnings

– Recognize potential in core categories: Office Products, JanSan & Breakroom

– Management de-layering and organizational alignment in Q4 ’15

1) For a definition and reconciliation of Adjusted EPS, please see appendix.

2) Prior year values include impact of change in accounting principle related to inventory accounting. See Reconciliation of Restated Financial Statements

in the Q3 2015 Earnings Release.

3

Q3 2015 & YTD Financial Results

1) For a definition and reconciliation of Adjusted Operating Income, Adjusted Operating Expense and Adjusted EPS,

please see appendix.

2) Prior year values include impact of change in accounting principle related to inventory accounting. See

Reconciliation of Restated Financial Statements in the Q3 2015 Earnings Release.

Adjusted Operating Income(1,2) ($M)

$154.7$154.6

$66.5$67.9

YTD

2014

(Restated)

YTD

2015

Q3

2014

(Restated)

Q3

2015

Adjusted EPS(1,2) ($/diluted share) $2.26$2.29

$1.00$1.03

Q3

2014

(Restated)

Q3

2015

YTD

2014

(Restated)

YTD

2015

Adjusted Operating Income(1)

declined 2.1% on 2.0% lower

sales

– Driven by organic sales decline of

7.7%; partly offset by acquisitions

+5.7%

– Organic Adjusted Operating

Expense(1) (excluding

acquisitions) declined by

$1.7M, or 1.1%

Adjusted EPS(1) down 3 cents YOY

– LIFO re-statement increased prior

year by $0.05 to $1.03

$90M YTD increase in Operating

Cash Flow driven by focus on

working capital

4

Q3 Sales Decline Driven by Strategic Decisions and Industrial Headwinds, Partly Offset by Acquisitions

$81

$1,420

Acquisitions

$1,391

Q3

2015

Sales

Q3

2015

Organic

Sales

$1,310

Core

Categories

($5)

Industrial

Headwind

($21)

Tech

($44)

($17)

Cut-sheet

Paper

($40)

Q3

2014

Sales

Q3 2015 Sales Bridge

($M)

Azerty

Mexico

sale

Traditional office

products and

furniture: +$1.9M

↓

1 2

3

Total Sales Δ from

Strategic Moves &

Industrial (~$105M)

5

Q3 Gross Margin Improvement Driven by Favorable Product Margin, Freight Expense and Acquisitions

Q3 2015

Gross

Margin

Other

(24 bp)

Acquisitions

17 bp

Inventory

16.2%

15.3%

48 bp

Freight

31 bp

Product

Margin

20 bp

Q3 2014

Gross

Margin

(Restated)

Q3 2015 Gross Margin Rate Bridge

(% total, basis point change)

(2)

2) Prior year values include impact of change in accounting principle related to inventory accounting. See

Reconciliation of Restated Financial Statements in Q3 2015 Earnings Release.

6

Q3 Organic Adjusted Operating Expense(1) Declined Despite Investment in Common Platform

$2

$12

$159

($3)

Common

Platform

Project

Expense

Q3 2014

Adjusted

Opex

(Restated)

Q3 2015

Adjusted

Opex

$149

Restructuring

Benefits &

Expense

Control

$148

Q3 2015

Organic

Adjusted

Opex

Acquisitions

Q3 2015 Adjusted Operating Expense(1) Bridge

($M)

1) For a definition and reconciliation of Adjusted Operating Expense, please see appendix.

2) Prior year values include impact of change in accounting principle related to inventory accounting. See

Reconciliation of Restated Financial Statements in Q3 2015 Earnings Release.

(1,2)

7

8

2015 Initiatives Update

$10 $10

($9)

$6

2017E 2016E 2015E

Expected Benefits from Restructuring

($M)

($13)

2015E 2016E

$5-10

2017E

$15-20

Expected Benefits from Common Operating

Platform

($M)

$7.5M spent YTD ↓

Expected Restructuring Savings

Restructuring Charge Common Platform Implementation Cost

Expected Benefit from Common Platform

$8.2M spent YTD ↓

Strategic Pillars

Grow Share in

Core Office

Products and

JanSan

Businesses

Win the Shift to

Online

Diversify

into Channels

and Categories

that Leverage

our Common

Platform

Strategy Overview

Accelerate organic sales growth in core by using scale and distribution

capability to grow share, control cost and expand earnings dollars

Focus M&A on opportunities that leverage common platform---not only

IT system but distribution, data infrastructure, digital expertise and

functional capabilities in merchandising, sales and operations

Committed

to strategy,

with two key

refinements

1

2

9

Near-Term Objectives

1) Move all businesses onto common platform – Beginning with Office Products, JanSan and Breakroom

– CPO and Automotive to follow

2) Generate profitable sales growth – Aligning with customers who are taking share in each

channel we serve

3) Simplify business and continue to lower costs – Gain operating leverage and reduce overhead by fully

integrating recently acquired businesses

4) Pursue merchandising excellence – Optimize assortment and create additional value for

business and customers

10

Appendix

Q3 2015 Operational Performance

Days Sales Outstanding (DSO)

Days Payable Outstanding (DPO)

37.3 37.3 36.0 35.739.9

4Q14 3Q14 3Q15 2Q15 1Q15

Inventories

($M)

$782 $850 $790 $792 $790

4Q14

$59

1Q15 2Q15

$56 $58 $70

3Q15 3Q14

Inventory Turns

6.15.3 5.2 5.3 5.5

1Q15 2Q15 3Q15 3Q14 4Q14

39.9 37.3 38.1 37.6 39.5

3Q14 2Q15 3Q15 1Q15 4Q14

Organic Acquisitions

12

Inventory Turns = Annualized trailing 3 months Cost of Goods Sold / Average Inventory

DSO = Net Trade Receivables / (trailing 3 months net financial sales/91 days)

DPO = Total Accounts Payable / (trailing 3 months Cost of Goods Sold/91 days)

Q3 2015 Product Category Sales Change & Mix

Furniture

Industrial

17%

Technology 25%

Office Products

24%

Janitorial/Breakroom

28%

7%

Q3 2015 Sales Mix

Furniture

6%

28%

Office Products

26%

Janitorial/Breakroom

28%

Industrial

12%

Technology

Q3 2014 Sales Mix

Q3 2015 YOY Category Sales Change

2.7%Furniture

Cut-sheet Paper (32.2%)

Office Products, net of Paper (0.2%)

Technology (10.6%)

Janitorial/Breakroom

Industrial 37.3%

(1.8%)

3) Includes acquisition of MEDCO in 2014 and Nestor Sales LLC in 2015.

(3)

(3)

13

Expect to deliver flat to low single-digit Adjusted EPS growth in FY 2015

FY 2014

Adjusted EPS

(Restated)

LIFO

Restatement

$3.08

($0.18)

$3.26

FY 2014

Adjusted EPS

FY2014 Adjusted EPS(1) Bridge

($)

2015 Adjusted EPS(1) Results & Outlook

($)

$0.46

Q4 2015E

Adjusted EPS

FY 2015E

Adjusted EPS

Q1 2015

Adjusted EPS

(Restated)

$1.00

Q3 2015

Adjusted EPS

$0.81

Q2 2015

Adjusted EPS

(Restated)

1) For a definition and reconciliation of Adjusted EBITDA & Adjusted EPS, please see page 17.

14

Currently expect flat to low

single-digit FY Adjusted

EPS growth compared to

prior year restated number

Liquidity & Capitalization

($M, except ratios)

QTD Q3

2014

QTD Q4

2014

QTD Q1

2015

QTD Q2

2015

QTD Q3

2015

Cash $25 $21 $24 $30 $28

Debt $546 $714 $684 $661 $669

Equity $855 $840 $814 $825 $833

Total

Capitalization $1,401 $1,554 $1,498 $1,486 $1,502

Debt-to-

EBITDA 2.0x 2.5x 2.4x 2.4x 2.6x

15

Historical Capital Allocation

Capital Allocation 2009-2014

($M)

162

252

83

458

Cash M&A

Share Repurchase

Dividends

Capex

$955

Operating Cash Flow

$849

Note: Dividend initiated in Q1 2011; current dividend pays $0.14/share per quarter

16

Non-GAAP Reconciliations

17

% to % to % to % to

Amount Net Sales Amount Net Sales Amount Net Sales Amount Net Sales

Net Sales 1,391,545$ 100.0% 1,419,947$ 100.0% 4,065,719$ 100.0% 3,994,123$ 100.0%

Gross profit 225,143$ 16.2% 216,701$ 15.3% 635,657$ 15.6% 593,131$ 14.9%

Operating expenses 172,159$ 12.4% 148,831$ 10.5% 526,653$ 13.0% 438,538$ 11.0%

Workforce reduction and facility consolidation

charge (200) - - - (6,495) (0.2%) - -

Rebranding - intangible asset impairment and

amortization (511) - - - (11,485) (0.3%) - -

Notes receivable impairment (10,738) (0.8%) (10,738) (0.3%)

Loss on sale of business and related costs (2,072) (0.1%) - - (16,999) (0.4%) - -

Adjusted operating expenses 158,638$ 11.4% 148,831$ 10.5% 480,936$ 11.8% 438,538$ 11.0%

Operating income 52,984$ 3.8% 67,870$ 4.8% 109,004$ 2.7% 154,593$ 3.9%

Operating expense items noted above 13,521 1.0% - - 45,717 1.1% - -

Adjusted operating income 66,505$ 4.8% 67,870$ 4.8% 154,721$ 3.8% 154,593$ 3.9%

Net income 27,667$ 40,231$ 51,492$ 90,045$

Operating expense items noted above, net of tax 10,017 - 34,854 -

Adjusted net income 37,684$ 40,231$ 86,346$ 90,045$

Diluted earnings per share 0.74$ 1.03$ 1.35$ 2.29$

Per share operating expense items noted above 0.26 - 0.91 -

Adjusted diluted earnings per share 1.00$ 1.03$ 2.26$ 2.29$

Adjusted diluted earnings per share - change over the

prior year period (2.9%) (1.3%)

Weighted average number of common shares - diluted 37,608 38,884 38,109 39,244

For the Nine Months Ended September 30,

2015 2014 (Revised)

For the Three Months Ended September 30,

2015 2014 (Revised)

Note: Adjusted Operating Expenses, Adjusted Operating Income, Adjusted Net Income and Adjusted Earnings Per Share in the three and nine month periods

ended September 30, 2015 exclude the effects of a workforce reduction and facility consolidation, an intangible asset charge and accelerated amortization

related to rebranding, an impairment of certain notes receivable relating to the company’s prior year sale of its software service subsidiary, and a charge

attributable to a sale of a business and the related costs to sell. Generally Accepted Accounting Principles require that the effects of these items be included

in the Condensed Consolidated Statements of Income. Management believes that excluding these items is an appropriate comparison of its ongoing

operating results and to the results of the prior year. It is helpful to provide readers of its financial statements with a reconciliation of these items to its

Condensed Consolidated Statements of Income reported in accordance with Generally Accepted Accounting Principles.