COMPANY OVERVIEW 2015

MAKING PRODUCTS PEOPLE DEPEND ON EVERY DAY

PERFORMANCE

PEOPLE

PLANET International is a global leader in packaging, paper, and . We use renewable resources responsibly to make recyclable products that people depend on every day. We are unified around shared commitments to strengthen our people and communities, provide solutions for our customers, and ensure the sustainability of our company and our planet.

Our fiber sourcing policies promote healthy and productive forests for generations to come

In 2015, 93% of our facilities operated without a serious injury $15.5 million donated to address critical community needs and improve MAKING our planet PRODUCTS PEOPLE DEPEND ON CONTENTS EVERY DAY 2 2015 Highlights 3 CEO Comments 4 Businesses 6 Performance 12 People $22.4 billion 20 Planet net sales in 2015 28 Awards & Recognitions 29 Vision 2020 Goals International Paper Company Overview 2015 2

65% 13% 22% REVENUE Industrial Consumer Paper 2015 GLOBAL HIGHLIGHTS Packaging Packaging and Pulp We use renewable resources responsibly to make recyclable products people depend on every day. BY BUSINESS

$2.6 billion net sales Manufacturing operations in 24 countries

EMEA*/ Russia

North Asia ** America $1.3 billion net sales Global 55,000 India $17.2 billion Headquarters: employees globally net sales Memphis, Tenn.

$0.2 billion Latin net sales America 44,000

$1.1 billion volunteer hours net sales *Europe, Middle East, Africa worked by employees **Includes the net sales of the International Paper Sun joint venture through around the globe in 2015 October 13, 2015, the effective date of the sale of our interest in the business

Fortune Magazine “World’s Most Every International Paper job of the energy used Ethisphere Institute’s 70 percent Admired Companies®” for the ® in our global mill system is generated supports 3.25 additional “World’s Most Ethical Companies ” th from renewable, carbon-neutral biomass 13 time supplier industry jobs 10 consecutive years according to Economic Policy Institute

For more information about International Paper, our products, and our global citizenship efforts, visit internationalpaper.com. International Paper Company Overview 2015 3

WE DO THE RIGHT THINGS, IN We do business THE RIGHT WAYS, FOR THE RIGHT THE IP REASONS—THIS IS THE IP WAY. WAY The IP Way governs everything we do: from our relationships with people and communities, to our impact on the environment, to how we ensure our businesses will be successful for generations to come. In 2015, we built on this legacy of leadership, integrity, and continuous improvement in three key areas:

PERFORMANCE PLANET We delivered a solid performance in a tough In the last five years we have made significant economic environment. We consider this a great progress toward our Vision 2020 Goals: we’ve reflection of the very strong portfolio of businesses reduced greenhouse gas emissions and waste that we’ve built and our focus on the things we to landfills, worked toward improving water quality control—meeting our customers’ needs, running and energy efficiency, and increased transparency in safely and reliably, and controlling our spending. our supply chain. These projects not only improve our By investing in and strengthening our business global environmental impact, but also help us reduce and global workforce, we demonstrated that we cost and mitigate risk. We will continue to improve can operate safely and sustainably, maintain our impact and promote the long-term sustainability leadership positions in attractive markets, and of both natural capital and our business. generate substantial free cash flow. Looking ahead, I am confident our long-term PEOPLE strategy will continue to create value for our Our most important responsibility is to employees, customers, communities, ensure the safety of our employees, contractors, shareowners, and our planet. and communities. I cannot emphasize that enough. Around the world, we are committed to providing a safe work environment, supporting and strengthening our workforce, and developing leaders at all levels. We also enhanced our global citizenship efforts, which means not only being a good neighbor and providing jobs in local communities, but also addressing critical community needs in the places where our employees live and work. Mark Sutton | Chairman and CEO International Paper Company Overview 2015 4 | 45

BUSINESSES

Industrial Packaging Consumer Packaging Paper and Pulp International Paper is the world’s premier International Paper’s global coated International Paper’s global businesses manufacturer of containerboard and business is a premier producer of high-quality manufacture a wide variety of uncoated papers for corrugated packaging. Our containerboard coated paperboard used for a wide variety commercial printing, imaging, and converting customers. mills, box plants, and converting operations of packaging and foodservice applications. Customers rely on our signature brands including across the globe allow us to sustainably In addition to coated paperboard, consumer Accent®, Chamex®, Hammermill®, Pol™, Reflection™, meet the most challenging customer sales, packaging includes our foodservice business, and Rey® to communicate, advertise, educate, and inform. shipping, storage, and display requirements. which produces paper cups, food containers, and lids. International Paper’s pulp business produces fluff Industrial packaging also includes our pulp for absorbent hygiene products like baby diapers, North American recycling business, which Our consumer packaging business collaborates feminine care, adult incontinence, and other non-woven recovers, processes, and sells several with customers across a wide range of market products. These products serve diverse consumers who million tons of corrugated packaging segments to meet consumer-driven demand for share a common need for confidence in the quality and and paper annually. high-quality, sustainable, and innovative products. convenience of personal hygiene products.

Customer segments: Customer segments: Customer segments: • Beverages • Pharmaceuticals • Specialty coffee • Consumers • Office products • Fruit and vegetables • Health and beauty • Grocery and • Schools • Retail packaging and convenience stores labeling applications • Protein and processed foods • Packaged food • Businesses • Hospitality • Absorbent • Consumer and industrial goods • General • Commercial printing hygiene products consumer goods • Shipping and distribution • Book publishing • Wipes, tabletop, and • Quick-service • eCommerce • Advertising medical non-wovens restaurants • Direct mail, bills, and statements International Paper Company Overview 2015 5

We make renewable products that people depend on every day.

Our current investment to increase North American fluff pulp capacity will position International Paper to continue to meet the growing needs of our global customers. We are one of the largest recyclers of corrugated packaging and paper in the world. DELIVERING VALUE TO CUSTOMERS AND SHAREOWNERS We invest to strengthen our global businesses so we can meet market demand and adapt to the changing needs of our customers and the markets we serve. As an industry leader, we will continue to maintain our focus on execution, leadership, and delivering value, without ever sacrificing our responsibility to people and the planet. This focus creates long-term value for our customers and our shareowners. 7

$14.5 BILLION NET SALES $5 BILLION NET SALES INDUSTRIAL PACKAGING $22.4 billion PAPER AND PULP net sales

$2.9 BILLION NET SALES CONSUMER PACKAGING

PERFORMANCE International Paper Company Overview 2015 PERFORMANCE 8

2015 FINANCIAL SUMMARY We performed well despite a challenging global environment where demand for our products was mixed, the strong U.S. dollar hindered our ability to compete in export markets, the Brazilian economy was in recession, and China’s economy weakened significantly. Despite these challenges, we delivered:

RECORD STRONG BEST return on free cash earnings per share invested capital flow in 20 years “Technology has enabled us to understand our processes to a greater degree; however, technology alone does not address all opportunities. The STRONG MARGINS AND EARNINGS in North American Industrial Packaging Manufacturing Excellence STRONG PERFORMANCE by Ilim joint venture approach provides the methods and tools for effective collaboration of diverse, cross-functional teams Annualized Dividend Per Share to drive improvements. I am continually amazed at the creativity 2013 $1.40 we achieve when we engage

2014 $1.60 people using the ME tools.”

—Whitney Beall, Manufacturing Excellence Leadership Consultant ME Blackbelt 2015 $1.76 Loveland, Ohio, 16 years with International Paper International Paper Company Overview 2015 PERFORMANCE 9

MANUFACTURING EXCELLENCE A systematic approach to problem solving and achieving excellence Manufacturing Excellence (ME) is the underlying principle that helps us to meet our objectives. Company-wide use of ME is the key to continuous, deliberate improvement and sustained year-over-year success.

Increasing customer A team, lead by ME green belts, utilized systematic approaches to address an ink-smearing issue at one of our European Mills. satisfaction via The team worked with the customer to investigate, analyze, and Manufacturing provide solutions that significantly improved communication between International Paper and the customer, increased customer Excellence satisfaction, and saved International Paper $150,000 per year.

Cost savings through At one of our containerboard mills, we found that high truck turnaround time added $775,000 to the mill’s annual cost. improvement in truck The fiber supply and mill teams partnered to reduce waste using turnaround time ME tools and processes. Using minimal capital, the team was able to identify and address bottlenecks, which resulted in a 30 percent reduction in turnaround time. Other mills are replicating the process improvements in an effort to generate similar time and cost savings.

In a corrugated box plant, teams from our replenishment planning Cross-functional and deliberate improvement organizations worked with the plant teams work manager and manufacturing manager to reduce holding rail cars, known as rail demurrage. With a goal of a 50 percent reduction in together to realize costs, the team used ME tools and processes to implement solutions savings and create that led to a 64 percent reduction in the first year, a savings of more a model for others than $150,000. This effort is being replicated across our box system. International Paper Company Overview 2015 PERFORMANCE 10

LEADING THROUGH CUSTOMER-FOCUSED INNOVATION Around the world, we work with our customers to provide innovative solutions to their unique challenges. This focus allows us to grow with our existing customers and continue to win new business.

MEETING PUBLISHERS’ NEEDS IN BRAZIL DEMONSTRATING A STRONG International Paper Brazil understands a publisher’s need for a well-priced, thick printing paper, which gives COMMITMENT TO CUSTOMERS’ their books wider spines and more visibility on bookstore shelves. The Brazilian publishing market is vital to PRODUCT SAFETY NEEDS the Printing and Conversion segment, representing 31 percent of International Paper’s volume in 2015. With International Paper committed to certify Chambril Avena® paper, International Paper met customer demand and was able to attract new business. all of its U.S. corrugated packaging plants that produce food containers to the Global Food Safety Initiative (GFSI) as measured against the IFS PACsecure Standard. This standard was developed DEVISING SOLUTIONS TO MEET SURGE IN DEMAND to identify potential hazards associated When one of our customers, a major U.S. fast food chain, offered a drink promotion that spiked demand with common packaging manufacturing for cups, our foodservice business responded. The collective effort across manufacturing, supply chain, processes. The GFSI certification customer service, and sales resulted in a quick solution to meet the demand surge, including rebalancing addresses the requirements to assure production, setting up alternate sizes, and collaborating with the customer to prioritize orders. food safety by applying the Hazard Analysis and Critical Control Points and Good Manufacturing Practice principles specific to food packaging. To earn the GFSI certification, International Paper container plants will be audited by an CREATING INNOVATIVE FLUFF PULP PRODUCTS independent third-party team to certify International Paper developed treated and semi-treated fluff pulp grades that were tested that materials and processes used in by several customers and launched early in 2016. This new Supersoft® Air™ fluff has unique manufacturing corrugated packaging characteristics that differentiate it from our competitors’ products. are safe for the food industry. International Paper Company Overview 2015 PERFORMANCE 11

MOROCCO INDUSTRIAL PACKAGING ALASKA PLUS LIGHTWEIGHT COATED NEW MOBILE APP FOR TEAM WINNING BUSINESS BOARD WITH UNPARALLELED BENEFITS CUSTOMERS AND DISTRIBUTORS The North American fruit and vegetable market Alaska® Plus™ is our new lightweight coated International Paper India‘s mobile app is is one of the most important markets for paperboard, targeted to growing demand for the first of its kind in the Indian printing Moroccan farmers, especially the citrus sector: cost-competitive, environmentally sustainable paper industry. The app provides access 90,000 tonnes of clementines and oranges are packaging. Alaska Plus uses less raw materials to the most up-to-date information on all exported annually. Traditionally, fruit growers and generates less waste, decreasing the International Paper products with real-time used wooden packaging, but when one of our environmental impact throughout the product’s updates on new products and specification agricultural customers expressed a need for life cycle. It also reduces cost through the value changes. The objective of the mobile app is a solid, high-quality printed box, International chain, starting with lower material costs all the to enable distributors, printers, and others Paper offered a complete solution: boxes, net way to reduced disposal. Alaska Plus features to select the best product for each end use. covers, and printed upper and bottom protection great stiffness, excellent strength and durability, The app includes a user-friendly paper pallets. As a result, customers are switching to as well as industry-leading quality for reliability selector and paper calculator, and features the new boxes. This success will open doors for on high-speed packing lines. Reflection™, Hammermill®, HP, TruPrint other new business in Canada and U.S. Ultra®, and other grades.

We take pride in our ability to adapt to the changing demands of our customers and the global markets we serve. STRENGTHENING OUR PEOPLE & COMMUNITIES Everything begins with our commitment to the safety of our employees and communities. With safety as our foundation, we improve the well-being and professional growth of our global workforce and support our communities through substantial financial contributions and employee volunteer efforts aimed at addressing critical community needs. 13

SUPPORTING HEALTH AND WELLNESS

PROMOTING $3.2 million EDUCATION contributed by employees to our signature giving programs and to other company fundraisers

ADDRESSING HUNGER

EMPLOYEE VOLUNTEERING

PEOPLE International Paper Company Overview 2015 PEOPLE 14

SAFETY At International Paper, safety is a core value. All 55,000 employees share the same objective: 93% of International Paper global ensuring that they and everyone around them locations operated without arrive home safely at the end of each day. a serious injury in 2015 Nothing we do is worth the risk of an injury Our LIFE Program LIFE stands for Life-Changing Injury and to an employee, contractor, or visitor. Fatality Elimination. Our LIFE program is designed to eliminate serious, life-changing Our safety mantra is clear: follow all of the rules, injuries and fatalities. all of the time. All employees are expected to 60% LIFE focuses on recognizing and managing the ensure that work conditions are safe and that five major safety risks: machine safeguarding, decrease motorized equipment, falls, harmful substances they and everyone around them behave safely. in total LIFE events since 2010 and environments, and driver safety.

LIFE Events International Paper Safety Leadership Commitment EMPLOYEES CONTRACTORS As a safety leader:

11 I know nothing is more important than safe operations. 57 56 52 5 “Every day we watch each other, help each I care about my colleagues. 45 11 other, and even encourage each other when 8 28 necessary. Safety is a way of life. We are I have an active safety mindset at all 23 extremely pleased to celebrate our 25-year safety times. I observe and address potentially milestone of no lost-time incidents. We now turn unsafe conditions. our attention to hitting the 30-year mark.” 2010 2011 2012 2013 2014 2015 —Ken Wall, Plant Manager I hold myself and others accountable Tracking of contractor LIFE events began in 2012 Edinburg, Texas, 10 years at International Paper for behaving safely. International Paper Company Overview 2015 PEOPLE 15

Our top priority is the ETHICS AND COMPLIANCE We believe our path to success is as important as the results we safety of every employee, achieve. We are committed to doing the right things in the right ways for the right reasons. Our Code of Conduct lays the groundwork in the right ways for how we treat our customers, investors, suppliers, whether at home or at work. communities, and each other in our operations around the world. We expect our suppliers to adhere to the same ethical standards.

Our CORE Values

We are committed to doing what is in the COMMITMENT best interest of our shareholders, the company, our communities, the planet, and each other.

We are each individually accountable for OWNERSHIP following the spirit as well as the letter of the laws that apply to International Paper.

We treat others and the planet with respect. RESPECT We deal fairly with suppliers, customers, and other business partners.

We pride ourselves on operational excellence, EXCELLENCE and we exercise integrity when managing the information and assets that are at the heart of our business. International Paper Company Overview 2015 PEOPLE 16

RECRUITING FUTURE LEADERS Across the company we have a variety of programs designed to attract and retain promising talent

As part of International Paper’s Supply Chain University, the LAUNCH program LAUNCH provides a broader perspective on International Paper’s supply chain and is Learning and Understanding designed to complement what new hires learn in their day-to-day roles. for New Colleagues and Hires

Aimed at engineers across all fields, REACH provides new college REACH graduates with a path for technical, professional, and personal “The LAUNCH program Recruit Engage development at International Paper. Align College Hires provided me with networking

opportunities, formal training, The CORE program provides new hires in Information Technology with CORE a structured, supportive environment to learn and develop their skills. and on-the-job learning to help Collegiate On-boarding build the skills and confidence and Rotational Experience I needed to excel during my first years with the company.” Through FORUM, new hires serving in finance roles receive FORUM professional development and career guidance. Emphasis is placed —Kenneth Johnson, Global Sourcing Associate on leadership, skills development, career guidance, building relationships, Mansfield, La., 18 months at International Paper and community consciousness. International Paper Company Overview 2015 PEOPLE 17

DEVELOPING EMPLOYEES We help our employees grow in a number of ways, depending on each employee’s capabilities and interests, and the needs of the company. Our programs include:

• Leadership Institute: Provides interactive learning and growth opportunities for employees with exceptional promise. Since 2005, more than 2,900 employees have participated. • International Paper Leadership II: Started in 2014, this eight-month program is designed for more-experienced leaders and combines on-the-job learning with formal leadership training.

Diversity and Inclusion Fostering a diverse and inclusive workforce is essential to the future of our company. When teams with different viewpoints and backgrounds work toward a common vision, we are able to create better solutions.

Building and Engaging and Educating on leveraging diverse teams developing all talent inclusive behaviors

Mentoring Boards In addition to diversity education, training, and forums on related topics, we have mentoring boards for African Americans, Hispanics and Latinos, and women to provide support and guidance.

Our mentoring boards guiding principles: • Build on International Paper’s goal to maintain work environments that encourage meaningful International Paper’s professional relationships and personal connections. • Provide participants with career guidance, professional development, and personal growth information. Leadership Institute offers 15 programs that “More than just offering tools, International Paper provides programs and growth opportunities based on the needs of each employee. This helps address all aspects of employees grow within the company and shape their own careers.” —Edilaine Mendes Dias, Human Resource Analyst leading teams Luis Antonio, Brazil, 7 years at International Paper International Paper Company Overview 2015 PEOPLE 18

EMPLOYEE ENGAGEMENT We value the skills, strengths, and perspectives of all. Our goal is to create an inclusive culture that attracts and retains the best team members and enables them to learn, grow, and contribute to sustainable results. We know that engaged employees drive safe operations and improved business results. And when our results continue to improve, we all benefit from working for a better, safer, more-competitive company.

“Diversity is a fundamental aspect “It’s part of who I am as a person. “In our daily meetings, we of our personal and professional I grew up in an atmosphere where bring employee engagement lives. By working in all four of our it wasn’t called volunteering—it’s just to an individual level. We take Italian box plants and collaborating what you did. Through International into account the whole crew with colleagues from all across Paper, I’m able to satisfy the part of and have discussions that the EMEA region, I learned to me that wants to volunteer in the focus on how they are doing. appreciate differences. Diversity Memphis community.” We are like a family.” is the best opportunity we have —Landon Richards, Packaging —David Settlemeyer, to grow and learn from others.” & Application Development, Pulp Mill Bleach Plant —Laura Zanellotti, EHS Regional IT and Volunteer Champions for Maintenance Leader, EMEA Packaging Italy International Paper Memphis Riegelwood, N.C., 40 years Bellusco, Italy, 6 years at Memphis, Tenn., 15 years at at International Paper International Paper International Paper International Paper Company Overview 2015 PEOPLE 19

SUPPORTING OUR COMMUNITIES OUR PRODUCTS More than employers, we are responsible neighbors, environmental stewards, IN ACTION and members of the community. We mobilize our people, products, and resources to improve the communities where we live and work. After historic flooding in Signature Giving Programs Our focus areas for critical community South Carolina in October, needs include: International Paper donated • United Way: $2.3 million donated by 2,000 corrugated boxes to employees, plus $1.3 million contributed Harvest Hope Food Bank, by International Paper to fund the agencies HEALTH AND WELLNESS $750,000 to the American that provide health and human services in Red Cross, and many our communities. employee volunteer hours • Coins 4 Kids®: The International Paper EDUCATION to help individuals and Foundation and employees and their HUNGER AND DISASTER RELIEF communities in need. spouses contributed $890,000 to the World Food Program. Our efforts provided meals to17,000 school children in areas Employees from our near Nairobi, Kenya. 23% Espaly, France, box plant • Employee Relief Fund: $120,000 given filled and distributed to employees who were victims of FoundationsFoundations 56% breakfast boxes donated natural disasters, hardships, or personal GGrantsrants by International Paper to emergencies. 8,000 local families, raising 40,000 Euros for the local • Employee Time: In addition to their Trisomy21 Association. outstanding financial generosity, employees volunteered more than 44,000 hours. Company Employee ContrContributionsibutions Every International Paper job supports Giving International Paper 3.25 jobs outside the industry*: volunteers filled 3,500 • 60 percent in supplier industries 21% of our corrugated boxes (chemicals, trucking, logging, etc.) donated by the company with food to feed families • 40 percent in local communities where paper in need in Memphis, Tenn. industry workers spend their wages and in government (teachers, policemen, etc.) *according to Economic Policy Institute $15.5 million given in 2015 In Brazil, our Mogi Guaçu supported The Secretariat for the “We depend on financial contributions to provide comfort and hope to people in need. Environment of the State We couldn’t do our work without the generosity of donors such as International Paper.” of São Paulo’s Institute of Botany by donating —Brad Kieserman, Vice President of Red Cross Disaster Operations and Logistics 20 boxes of Chamex® paper. 20

IMPROVING OUR ENVIRONMENTAL IMPACT Natural resources are crucial to the future of our company and our planet. We work continuously to reduce our environmental footprint and promote the long-term sustainability of natural capital by ensuring the responsible management of natural resources and improving all aspects of our value chain. International Paper supports 33 PERCENT 70 PERCENT CERTIFIED tens of millions BIOMASS FIBER of acres of working forests around the world RENEWABLE ENERGY

97 PERCENT OF PULPING CHEMICALS ARE RECOVERED AND RE-USED IN THE KRAFT PULPING PROCESS

PLANET International Paper Company Overview 2015 PLANET 22

Promoting Responsible RESPONSIBLE FORESTRY Forestry on a Global Scale We are actively focused on preventing International Paper takes an active approach to responsible forest stewardship. Our illegally harvested wood products from entering the United States and global actions create value for landowners, communities, customers, and ecosystems. We make marketplaces and will not accept fiber a positive impact on the forests in our supply chain by providing an economic incentive for from illegally logged forests or from forests where high conservation values landowners to manage their forests responsibly. Our commitment to sourcing fiber from are threatened by management activities. well-managed forests promotes healthy and productive forests for future generations. ln 2015, we expanded our World Wildlife Fund (WWF) Global Forest and Trade Network agreement from two to five countries, including the U.S., Brazil, France, India, and Russia. 100% 21 million tons of certified fiber breakdown of the fiber used to make our products meet the standards of our Global Fiber Procurement Policy 6% PEFC 59% SFI®

35% 33% FSC® is third-party certified, up 28 percent since 2010

Global Fiber Procurement Policy We use new and recovered fiber for our packaging and paper products. We have a commitment to ensure our products contain “International Paper spends a lot of wood fiber from responsibly managed and harvested forests. time helping tree farmers by teaching

Forest Certification proven agricultural practices, providing International Paper is dedicated to sustainable forestry. We work with technical support, and improving the Global Responsible landowners and suppliers to advance credible third-party certification productivity of our land. These steps Forest Stewardship in order to grow our fiber sourcing from certified forests. have gone a long way in improving our Commitment External Collaboration economic conditions and in building We collaborate with other organizations and private landowners long-term valuable relationships.” to promote sustainable forest management, combat illegal logging —Mr. Chiriki Pydi Naidu, Tree Farmer and deforestation, and support healthy working forests. Village: Theeda, District: Vishakhapatnam State: Andhra Pradesh, Country: India International Paper Company Overview 2015 PLANET 23

• Promoting clean water and biodiversity SUPPORTING • Expanding economic opportunities 1 million jobs are provided RESPONSIBLE by forests in the U.S. South FORESTRY • Improving management of private and public forests for environmental and economic needs PRACTICES • Restoring populations of at-risk wildlife and plant species During the past five years, International Paper 200,000 acres of forest habitat has contributed $7.5 million to Forestland were restored and enhanced Stewards, a collaboration with the National Fish and Wildlife Foundation to support sustainable • Improving water and air quality through forestry management by: healthier forests

WATER Water is a critical resource for International Paper, the communities in which we operate, our customers, and our employees. As such, we are committed to water stewardship efforts around the world.

In the past year, we launched a program to quantify current and potential water-related risks for our operations. We developed a tool to not only evaluate those risks, but also assist in identifying key stewardship opportunities in the areas surrounding our operations. This program is part of a broader effort and commitment to a global water stewardship strategy. “Water is vital to our paper production and we remain focused on using all natural Key components of our water stewardship program include: resources wisely. Many people at our

Developing an evaluation approach for our global operations Pensacola mill and throughout International Paper worked together to improve our

Integrating this water-risk evaluation approach into managing water quantity and quality water footprint. Being recognized by The American Forest & Paper Association for water stewardship affirms our efforts are Integrating our water stewardship program into regular operation auditing activities making a difference.” —Kyle Moore, EHS Manager Engaging with stakeholders in our communities through collective action efforts Ticonderoga, N.Y., (previously at Pensacola, Fla.), to address water-related issues within each watershed 22 years at International Paper International Paper Company Overview 2015 PLANET 24

Improving Water Quality • In our Saillat Sur Vienne, France mill, we completed an oxygen delignification project that improved the efficiency of the manufacturing process and improved effluent quality by 30 percent. • We completed our waste water treatment plant projects at our Bogalusa, La. containboard mill, and improved operating practices and spill control. The projects have improved water quality by 38 percent. • At our coated paperboard mill in Augusta, Ga., we enhanced wastewater equipment to improve effluent quality and recover more fiber for beneficial use.

Efficient Use of Water

Surface Water (River and Lake Water) Ground Water Public Utility Water

WORKING WITH LOCAL 87% 11% 2% COMMUNITIES ON WATER NEEDS International Paper works with communities 93% of the and local authorities to provide drinking water. water used to Most of the remaining manufacture our • We have four mills that supply drinking water products is returned 7% evaporates to their local communities: Texarkana, Texas; to the environment Riegelwood, N.C.; Rajahmundry, India; and Svetogorsk, Russia. • Our mill in Pine Hill, Ala., supplies river water to the city, which then provides drinking water back to the mill and the community. • In Kwidzyn, Poland, our mill sponsors the drinking water treatment plant in the city.

967 million gallons of drinking We re-use water up to 10 times before we return it water provided to communities each year International Paper Company Overview 2015 PLANET 25

EMISSIONS AND ENERGY USE Our strategy for reducing air emissions is linked to our management of purchased energy. Reducing the purchased energy used to create our products not only reduces our costs, it also decreases resulting greenhouse gas and air pollutant emissions. Through continuous improvements in operations, equipment, and fuel diversity, we have achieved significant company-wide reductions over the past decade, and will continue to evaluate and implement improvement projects across our global operations.

4.7 percent improvement We are more than halfway to our goal of decreasing in energy efficiency since 2010 absolute GHG emissions by 20 percent by 2020

18 percent reduction Our 16 percent reduction in GHG emissions in PM, SO2 and NOx since 2010 is equal to taking 500,000 cars off the road

Greenhouse Gas Emissions MM Metric tons CO2e SCOPE 1/DIRECT SCOPE 2 /INDIRECT

5.4 5.1 4.8 4.9 Reducing Emissions in Savannah 4.8 4.6 In February 2015, we equipped the Savannah mill power boiler with new burners to replace coal 10.6 with cleaner burning natural gas, which reduced “We are on track to reach our target 10.2 10.1 GHG emissions by 33 percent. The additional 9.4 8.9 for reducing GHG emissions and have 8.7 environmental benefits of this project include: consistently beat our target for reducing particulate matter, nitrogen oxides, and Reduction of 3,500 tons sulphur dioxide. The great work by our of previously landfilled ash mill and technology teams is instrumental to our success.” 2010 2011 2012 2013 2014 2015 —Madeline Golson, Air and GHG Goal Team Lead 32% reduction in criteria air Memphis, Tenn., 5 years with International Paper emissions (PM, SOx and NOx) International Paper Company Overview 2015 PLANET 26

WASTE AND REDUCTION 2015 Solid Waste/Residuals Our goal is to reduce manufacturing waste to landfills by 30 percent by 2020, and ultimately divert 100 percent of our residual materials from landfills. With improvements in the 8% Used for energy efficiency of our operations, we continue to reduce overall waste generated, while also finding new ways for residuals to be used. 48% Landfilled Effective waste management is important to achieve our goals 17% for both world-class manufacturing and sustainability goals. Land applied

Examples of how we use waste/residuals for beneficial means: 27% • Wood byproducts are collected and sent to other companies to make Used for other solvents, soaps, lubricants, and paint thinners, and other products. beneficial means • At our Rajahmundry mill in India, we make cement bricks from fly ash, a byproduct of our energy generation process. This results in less waste to landfills, as well as an inexpensive construction material and jobs for 125 people. • Resin acid, another wood byproduct, is used in adhesives and printing inks, and is the major component in rosin, which musicians use to improve the grip of bows on string instruments. • Our Cedar River, Iowa, containerboard mill provides wastewater residuals to local farmers who use it as an inexpensive fertilizer. 11% reduction in solid waste/residuals to landfills since 2010

Improving Fiber Efficiency in Prattville In 2015 we made progress on our Fiber Recovery and Management Project at our Prattville, Ala., containerboard mill. This project which focuses on capturing 90 percent of lost fiber to the process, is expected to:

• Recover approximately 20,000 tons of fiber each year • Divert 4,400 tons of waste from landfills each year International Paper Company Overview 2015 PLANET 27

Our Supply Chain Strategy

SUPPLY CHAIN In 2015, we furthered our strategy to ensure a sustainable global supply chain by:

An efficient and responsible supply • Improving the processes that drive transparency and accountability chain is key to obtaining quality raw • Setting legal, ethical, and business expectations and monitoring compliance materials and services that support • Improving collaboration, innovation, and deliberate improvement with suppliers our operations and ensure we meet • Enhancing our strategic sourcing process to incorporate an improved initial risk review of suppliers our customers’ needs. It’s also essential • Conducting significant training with our sourcing and procurement colleagues to the sustainability of our business. • Initiating training for our suppliers and creating additional resource material for distribution to our supply chain • Continuing risk review and assessment of our global procurement processes and strategic suppliers

PLAN DO CHECK AND ADJUST

Establish expectations Assess suppliers Collaborate for success Monitor and adjust

See the 2015 GRI Index for more information at internationalpaper.com. International Paper Company Overview 2015 28

AWARDS AND RECOGNITION

FORTUNE’S “WORLD’S MOST ETHISPHERE INSTITUTE’S INSTITUTIONAL INVESTOR’S IDG’S COMPUTERWORLD ADMIRED COMPANIES” 2016 “WORLD’S MOST ETHICAL “MOST HONORED COMPANY 2016” FOR 2015 “100 BEST PLACES FORTUNE magazine named COMPANIES 2016” International Paper achieved TO WORK IN IT 2015” International Paper as one of Ethisphere Institute recognized the Institutional Investor International Paper’s IT the “World’s Most Admired International Paper as one of the “Most Honored Company 2016” organization was named Companies®” for the “World’s Most Ethical Companies®” recognition in the Paper & among the “100 Best Places 13th time in the last 14 years. for the 10th consecutive year. Packaging Sector. Carol Roberts to work in IT” and recognized topped the list for Best CFO in the for how we challenge our buy side and sell side categories. IT staffs while providing great benefits and compensation.

2015 ABTCP AMERICAN CHAMBER “DESTAQUES DO SETOR” OF COMMERCE Award in the category CORPORATE SOCIAL “Graphic Paper Manufacturer” RESPONSIBILITY AWARD

2015 AF&PA BETTER PRACTICES, The ABTCP-Brazilian Technical The American Chamber INTERNATIONAL PAPER INDIA BETTER PLANET 2020 Association of pulp and paper of Commerce recognized PARIVARTAN AWARD 2015 recognized International Paper International Paper Russia for its SUSTAINABILITY AWARD The Parivartan Award recognizes Brazil in the category of “Graphic strong program. The award is in The Industrial Packaging’s large corporations leading the Paper Manufacture.” This accolade recognition of their continued Pensacola, Fla., containerboard charge on Sustainability in India is the most important award in dedication to being a strong mill was recognized as a leader as well as emerging innovators the to corporate citizen and to making in sustainability by the American developing cutting edge solutions. honor and recognize the most an extremely positive and Forest & Paper Association’s International Paper India was respected manufacturers and sustainable contribution to (AF&PA) with the Sustainability recognized for its Farm Forestry suppliers by their customers in the local communities in which Award for Water Stewardship. Initiative and was picked as the market. it operates. the winner in the category of “Corporate Branding Actions for Sustainability.” VISION PLANET WATER 2020 GOAL: Reduce mill wastewater QUALITY 17% reduction discharges of oxygen-depleting substances 2020 GOALS to receiving streams by 15%

We recognize the importance of Mapped water use and risk ORIGINAL 2020 GOAL: Map water usage through aligning our business with the needs WATER by location, identified priority our manufacturing locations by 2013; USE mills, and initiated programs develop site-specific plans by 2015 to reduce of the world around us and we’re to reduce water use use in strategic watershed areas by 2020 committed to continuous improvement and transparency around our sustainability goals. We set 12 voluntary goals with ENERGY GHG AIR EFFICIENCY EMISSIONS EMISSIONS a 2010 baseline aimed at improving our impact on people and the planet, and 4.7% improvement 16% reduction 18% reduction are happy to share our progress. 2020 GOAL: Improve efficiency in 2020 GOAL: Reduce GHG emissions 2020 GOAL: Reduce air emissions To find about more about our Vision 2020 purchased energy use by 15%* by 20% (direct and indirect)* (PM, SO2, NOx) by 10%* Goals, go to: internationalpaper.com *Results do not include data from International Paper India

SUPPLY Established baseline supply chain performance and implemented plans to improve CHAIN ORIGINAL 2020 GOAL: NEW GOAL SET IN 2014: PEOPLE Establish baseline supply chain Establish processes promoting transparency, performance and implement managing risk by monitoring, and identifying plans to improve by 2013 opportunities to collaborate with suppliers SAFETY

ORIGINAL 2020 GOAL:

60% reduction Increase third-party certified fiber by 15% in serious safety incidents FIBER 28% CERTIFICATION increase NEW GOAL SET IN 2014: 2020 GOAL: Injury-free workplace Increase third-party certified fiber by 35%

FIBER SOLID RECYCLING COMMUNITY INVOLVEMENT EFFICIENCY WASTE

$15.5 million donated 0.51% fiber loss to charitable organizations from reporting mills 11% reduction 3% increase 2020 GOAL: Measure and report on our 2020 GOAL: Reduce 2020 GOAL: Reduce 2020 GOAL: Increase recovery of old charitable support for education, literacy fiber lost in the manufacturing waste corrugated containers by exploring and health and human services in the manufacturing process to landfills by 30% and new sources and diverting usable communities where we operate to less than 0.75% ultimately to zero fiber from landfills by 15%

©2016 International Paper Company. All rights reserved. Accent, Alaska, Chambril Avena, Chamex, Coins 4 Kids, Hammermill, Rey, Suspersoft, and TruPrint Ultra are registered trademarks of International Paper Company or its affiliates. Pol and Reflection are trademarks of International Paper Company or its affiliates. Forest Stewardship Council, FSC and the FSC logo are trademarks of Forest Stewardship Council. PEFC and the PEFC logo are registered trademarks of the PEFC Council. SFI marks are registered marks owned by Sustainable Forestry Initiative Inc.

“World’s Most Ethical Companies” and “Ethisphere” names and marks are registered trademarks of Ethisphere LLC. FORTUNE and The World’s Most Admired Companies are registered trademarks of Time Inc. and are used under license. From FORTUNE Magazine, March 1, 2015 ©2016 Time Inc. Used under license. FORTUNE and Time Inc. are not affiliated with, and do not endorse products or services of, Licensee. All other product and company names are trademarks or registered trademarks of their respective holders.

Cover printed on Accent® Opaque Cover Smooth White 100lb. Text printed on Accent® Opaque Text Smooth White 100lb.