Investor Roadshow February 4, 2021 Forward-Looking Statements Certain statements in this presentation that are not historical in nature may be considered “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are often identified by the words “will,” “may,” “should,” “continue,” “anticipate,” “believe,” “expect,” “plan,” “appear,” “project,” “estimate,” “intend” and words of a similar nature. These statements are not guarantees of future performance and reflect management’s current views with respect to future events, which are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these statements. Factors which could cause actual results to differ include but are not limited to: (i) developments related to the COVID-19 pandemic, including the severity, magnitude and duration of the pandemic, the development, availability and effectiveness of treatments and vaccines, negative global economic conditions arising from the pandemic, impacts of governments’ responses to the pandemic on our operations, impacts of the pandemic on commercial activity, our customers and business partners and consumer preferences and demand, supply chain disruptions, and disruptions in the credit or financial markets; (ii) the level of indebtedness and changes in interest rates; (iii) industry conditions, including but not limited to changes in the cost or availability of raw materials, energy and transportation costs, competition International Paper faces, cyclicality and changes in consumer preferences, demand and pricing for International Paper products (including changes resulting from the COVID-19 pandemic); (iv) domestic and global economic conditions and political changes, changes in currency exchange rates, trade protectionist policies, downgrades in International Paper’s credit ratings, and/or the credit ratings of banks issuing certain letters of credit, issued by recognized credit rating organizations; (v) the amount of International Paper’s future pension funding obligations, and pension and health care costs; (vi) unanticipated expenditures or other adverse developments related to the cost of compliance with existing and new environmental, tax, labor and employment, privacy and other U.S. and non-U.S. governmental laws and regulations (including new legal requirements arising from the COVID-19 pandemic); (vii) any material disruption at any of International Paper’s manufacturing facilities due to severe weather, natural disasters or other causes (including as the result of the COVID-19 pandemic); (viii) risks inherent in conducting business through joint ventures; (ix) International Paper’s ability to achieve the benefits expected from, and other risks associated with, acquisitions, joint ventures, divestitures and other corporate transactions, (x) information technology risks, (xi) loss contingencies and pending, threatened or future litigation, including with respect to environmental related matters, (xii) the receipt of regulatory approvals relating to the spinoff transaction without unexpected delays or conditions; (xiii) International Paper’s ability to successfully separate the SpinCo business and realize the anticipated benefits of the spinoff transaction; (xiv) the ability to satisfy any necessary conditions to consummate the spinoff transaction within the estimated timeframes or at all; and (xv) the final terms and conditions of any spinoff transaction, including the amount of any dividend by SpinCo to International Paper and the terms of any ongoing commercial agreements and arrangements between International Paper and SpinCo following any such transaction, the costs of any such transaction, the nature and amount of indebtedness incurred by SpinCo, the qualification of the spin-off transaction as a tax-free transaction for U.S. federal income tax purposes (including whether an IRS ruling will be obtained), diversion of management’s attention and the impact on relationships with customers, suppliers, employees and other business counterparties, and the impact of any such transaction on the businesses of International Paper and SpinCo and the relationship between the two companies following any such transaction. These and other factors that could cause or contribute to actual results differing materially from such forward-looking statements can be found in International Paper’s press releases and U.S. Securities and Exchange Commission filings. In addition, other risks and uncertainties not presently known to International Paper or that it currently believes to be immaterial could affect the accuracy of any forward-looking statements. International Paper undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. Statements Relating to Non-U.S. GAAP Measures While the Company reports its financial results in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"), during the course of this presentation, certain non-U.S. GAAP financial measures are presented. Management believes certain non-U.S. GAAP financial measures, when used in conjunction with information presented in accordance with U.S. GAAP, can facilitate a better understanding of the impact of various factors and trends on the Company’s financial condition and results of operations. Management also uses these non-U.S. GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company’s performance. The non-GAAP financial measures in this presentation have limitations as analytical tools and should not be considered in isolation or as a substitute for an analysis of our results calculated in accordance with GAAP. In addition, because not all companies use identical calculations, our presentation of non-GAAP financial measures in this presentation may not be comparable to similarly titled measures disclosed by other companies, including companies in our industry. A reconciliation of all presented non-U.S. GAAP measures (and their components) to U.S. GAAP financial measures is available on IP’s website at http://www.internationalpaper.com/performance/presentations-events/webcasts-presentations. Ilim JV and Graphic Packaging Investment Information All financial information and statistical measures regarding our 50/50 Ilim joint venture in Russia (“Ilim”) and our 7.4% ownership interest in a subsidiary of Graphic Packaging Holding Company, other than historical International Paper Equity Earnings and dividends received by International Paper, have been prepared by the management of Ilim and Graphic Packaging Holding Company, respectively. Any projected financial information and statistical measures reflect the current views of Ilim and Graphic Packaging Holding Company management and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such projections. See “Forward-Looking Statements” above.
Investor Roadshow I February 4, 2021 2 Investment Thesis Investment Thesis | About Us
Who We are one of the world’s leading producers of fiber-based We Are packaging, pulp and paper
We transform renewable resources into recyclable products What people depend on every day We Do
How We do the right things, in the right ways, for the right reasons, We Do It all of the time
Investor Roadshow I February 4, 2021 4 IP Investment Thesis | The IP Way Forward
“The IP Way Forward is how we go beyond just doing the right things; it’s how we create long-term value for all IP stakeholders.”
Mark S. Sutton, Chairman and Chief Executive Officer
5 Global Citizenship
Investor Roadshow I February 4, 2021 6 Vision 2020 Goals
FIBER CERTIFICATION FIBER EFFICIENCY GHG EMISSIONS increase in certified reduction from reduction in greenhouse 47% fiber volume 0.63% reporting mills 22% gas emissions
RECYCLING ENERGY EFFICIENCY AIR EMISSIONS 63% increase in improvement in purchased reduction in air emissions recovery of OCC 5% energy efficiency 49% (PM, SO2, NOx)
SAFETY SUPPLY CHAIN WATER QUALITY reduction in serious Evolved Supplier Code of Conduct decrease in oxygen- 65% safety incidents to Third Party Code of Conduct to 28% depleting substances include all third parties across supply chain and expanded risk monitoring processes
COMMUNITY ENGAGEMENT WATER STEWARDSHIP SOLID WASTE More than Updated water risk framework and reduction in manufacturing donated to charitable continued annual facility 19% waste to landfills $134M organizations since 2010, assessments. Seventy percent of Including more than mills engaging local stakeholders on $24 million in 2019 water
Investor Roadshow I February 4, 2021 7 Vision 2030 | Four Goals. Eight Targets.
BUILDING A BETTER FUTURE FOR PEOPLE, THE PLANET AND OUR COMPANY
Investor Roadshow I February 4, 2021 8 International Paper Awards & Recognitions International Paper Awards & Recognitions
Member of the Ethisphere Institute FTSE4Good Index Series 1 Fortune Magazine World’s Most Ethical for demonstrating strong World’s Most Admired Companies® 2020 for Environmental, Social Companies® 2020 for 17 15 consecutive years and Governance years (ESG) practices
Women’s Choice Award® Reprinted with permission of IDG’s Computerworld 2021 Woman’s Choice Award The Wall Street Journal “100 Best Places to Best Companies to Work For Work in IT” 2020 Diversity & Millennials
International Paper International Paper Brazil Russia Corporate Graphic Paper Social Responsibility Manufacture 2015 Award 2015
1 From FORTUNE Magazine, March 1, 2020. © 2020 Time Inc. Used under license. Investor Roadshow I February 4, 2021 9 IP Investment Thesis | Strategic Framework
Strategy Fiber-based Packaging, Pulp and Paper
Advantaged Positions Attractive Markets Shareholder Value . Low cost, competitive assets . Good market growth rates . Delivers strong and sustainable free cash flows . Operational excellence . Customers and markets that value our products and . Increases intrinsic value with . Availability and access to low cost, innovations return spreads above our sustainable fiber cost of capital (ROIC > . Strong growing supply positions WACC) . Capability to provide differentiated and innovative value propositions . Access to the best global . Supports policies to return customers and segments cash to shareholders . Opportunity for optimization and productivity gains . Maintain strong balance sheet
Renewable Natural Resources
Investor Roadshow I February 4, 2021 10 Capital Allocation Framework | Maximize Value Creation
Debt / EBITDA1 (Target 2.5 – 2.8x) 4.0x 3.3x 2.8x $3.4 2.9x $2.0 $1.8 Investment Excellence 2.9x Invest to Billion $1.6 $1.1 Strategic Fit | Compelling Value | Disciplined $11.3 $11.2 $10.7 $9.8 $8.1 . Cost reduction capex . Strategic capex Return Cash to Shareholders 2016 2017 2018 2019 2020 . Selective M&A Op. Leases Balance Sheet Debt Pension Gap . Sustainable dividend at 40 – 50% of FCF
. Share repurchases Cash to Shareowners
$701 $486 Maintain Strong Balance Sheet $14 Million $100 . Target debt to EBITDA1 2.5x to 2.8x $733 $769 $789 $796 $806 . Pension plan sufficiently funded
2016 2017 2018 2019 2020 Dividend Share Repurchases
Investor Roadshow I February 4, 2021 11 Free Cash Flow1 | Strong Execution of Cash Levers
5-Year Average $2.0
$2.3 $2.3 $2.2 $2.1 $2.0 $1.8 $1.8 $1.9 $1.7 $1.7 $1.7 $1.7 $1.6
Billion $1.0
$0.7
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Investor Roadshow I February 4, 2021 12 Expanded Spread of Adj. ROIC1 Above Cost of Capital
5-Year Average 10.0%
13.2%
11.4% 10.8% 9.7% 10.0% 9.9% 9.5% 9.2% 8.1% 8.3% 7.5% 7.7% 2020 WACC 6.5%
6.3% 5.0%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Investor Roadshow I February 4, 2021 13 Full-Year 2020 Results
. Solid performance and outstanding cash generation in a Free Cash Flow2 ($B) dynamic environment 1 . $3.1B Adjusted EBITDA 2 . $2.3B Free Cash Flow generation $2.3 . 11th consecutive year above cost of capital 2020
. Strong execution to support customer needs
. Strong and resilient operational performance $2.3 2019 . Outstanding cost management
. Executed our capital allocation framework to enhance our financial strength $1.7 2018 . Initiated meaningful actions to Build a Better IP to grow earnings and cash generation
Investor Roadshow I February 4, 2021 14 Full-Year 2020 Financials
Adjusted Operating EPS2 $ Billion 2018 2019 2020 (except as noted) Sales $23.3 $22.4 $20.6 1 $2.80 Adjusted EBIT $3.0 $2.6 $1.8 2020 2 Adjusted Operating EPS $5.32 $4.43 $2.80 1 Adjusted EBITDA $4.3 $3.9 $3.1 $4.43 2019 1 Adjusted EBITDA Margin 18.7% 17.2% 15.1%
Equity Earnings ($MM) $336 $250 $77 3 $5.32 Free Cash Flow $1.7 $2.3 $2.3 2018
Investor Roadshow I February 4, 2021 15 CEO Perspective | Building a Better IP
Accelerate value creation for our shareowners
Take care of our employees
Deliver superior solutions that create value for our customers
Support the needs in our communities
Investor Roadshow I February 4, 2021 16 Select Financial Metrics1
$ Million 2019 2020 2021F
Maintenance Outage Expense $518 $454 $609
Maintenance & Regulatory $750 $430
Cost Reduction $150 $30 ≤ $800 Capex Strategic $400 $290
Depreciation & Amortization $1,301 $1,286 $1,310
Net Interest Expense $493 $446 $390
Corporate Expense $54 $(7) $60
Effective Tax Rate 26% 25% 26%
Investor Roadshow I February 4, 2021 17 Navigating COVID-19 | Principled Leadership in Essential Business
Keep People Safe | Take Care of Customers | Maintain Financial Strength
Containment Recovery
Managing each phase of pandemic with a view toward the short-term and long-term success and sustainability of the company for all stakeholders . Committed to the health and safety of our employees and contractors Recognition and appreciation . Ensuring business continuity with customers and suppliers bonus to employees totaling . Maintaining financial strength to manage economic uncertainty ~$25 million in 4Q20 . Supporting critical needs in our communities
Investor Roadshow I February 4, 2021 18 Building a Better IP Strategic Rationale | Creating Value Through Focus
CREATE TWO FOCUSED, POSITION IP TO BUILD FOUNDATION LEADING COMPANIES ACCELERATE VALUE FOR LONG-TERM CREATION SUCCESS – – – IP: Highly advantaged Building on strength of our Agile organizational and packaging focused company industrial packaging business operating model SpinCo: Well-positioned global Taking meaningful actions Commitment to capital paper company to grow earnings and cash allocation framework and generation investment excellence
Investor Roadshow I February 4, 2021 20 Creating Two Focused, Leading Companies
–IP –SpinCo Highly advantaged corrugated Well-positioned global paper packaging-focused company company • Strong strategic profile • Talented team • Significant earnings growth catalysts • Scale and capabilities • Commitment to capital allocation • Capital structure with potential to framework unlock strategic value
$17B Sales1 $3B Sales1
~20,000 Customers Leading Brands across key markets
28 Mills | 220 Converting Facilities 7 Mills
Investor Roadshow I February 4, 2021 21 IP | Taking Meaningful Action to Grow Earnings and Cash Generation
N.A. Industrial EMEA Industrial Global Cellulose Ilim Packaging Packaging Fibers Partnership
Value Drivers
$50 - $100MM $300MM Executing Incremental Annual Structural Cost Reduction Value-Creating Plan Profitable Growth + Lean effectiveness (~30%) Highly advantaged Commercial execution Process optimization (~40%) Portfolio aligned with IP
Investment excellence Asset optimization (~30%)
$350 - $400MM Incremental earnings growth by end of 2023
Investor Roadshow I February 4, 2021 22 SpinCo | Global Paper Company Positioned for Success
Strong leadership and talented team 7 Mills with Paper Capacity of 2.5MM Metric Tons
Substantial scale with global capabilities Russia 0.4MM Svetogorsk, Russia United States 0.8MM Competitive cost positions across Ticonderoga, New York geographies Eastover, South Carolina Europe 0.2MM Saillat, France
Leading brands across key markets Brazil 1.0MM Luiz Antônio, São Paulo Coated Board Capacity (MT) Significant potential to unlock Mogi, Guacu, São Paulo Três Lagoas, Mato Grosso do Sul Russia 0.1MM strategic options
Investor Roadshow I February 4, 2021 23 Business Overview Path to Value Creation
Global Economic Transformation Sustainable Returns Above Cost of Capital Recession 2005-2007 2008-2010 2011+
$11B Divestitures
Investments: China Sun JV Asia Pkg. Madrid Mill Acquisition Brazil VCP Land/Mill Swap Conversion Russia Ilim JV (2007) Franklin Fluff Pulp N.A. Consumer Conversion Packaging Brazil N.A. Weyco Pkg. Packaging Acquisition Turkey Pkg. Sun JV Transfer to GPK Acquisition & Asia Pkg. Sale Brazil Pkg. Sale Weyco Pulp GPK Acquisition Business Monetization Riegelwood Acquisition N.A. TIN Fluff Pulp India APPM Sale Acquisition Conversion
India APPM Valliant PM3 Acquisition Containerboard N.A. Ind. Pkg. Startup Containerboard Mill xpedx Spin-Off Optimization
Investor Roadshow I February 4, 2021 25 International Paper | 2020 Global Portfolio in Packaging, Pulp and Paper
Positioned in attractive markets with low-cost assets that generate strong free cash flow and returns that exceed our cost-of-capital
$2.8B $2.0B1 Net Sales Total Sales $17.0B EMEA & Ilim JV Net Sales Russia North America
$0.1B Net Sales Brazil
Investor Roadshow I February 4, 2021 Full-year 2020 net sales data; does not reflect total company sales 26 Strong Domestic Positions
Global Cellulose Russia 1st 1st Fibers 12% 73% Industrial Ilim Packaging Pulp st st* nd 1 1 2 Printing 15% Revenue by Papers Business1
North America EMEA
Russia st 1 4% % Total EMEA 7% Adjusted 84% EBITDA2 North 5% America Brazil Latin America
Investor Roadshow I February 4, 2021 *Fluff pulp capacity based on Poyry 27 IP N.A. Exports | Leveraging Strategic Export Opportunities
Fluff Pulp1 ~45% (~90% of N.A. production) Asia
~45% EMEA ~20% Containerboard (~10% of N.A. production) ~40%
Latin America ~10%
~40%
% of export volume shipped to select regions
Investor Roadshow I February 4, 2021 28 Brazil & Russia Exports | Leveraging Strategic Export Opportunities
Ilim Softwood Pulp Pulp (~50% of production) % of export volume shipped to select regions ~30% ~70% EMEA Asia
~30% ~15%
~55% Latin America
Uncoated Freesheet (~50% of Brazil production)
Investor Roadshow I February 4, 2021 29 N.A. Industrial Packaging | Track Record of Success
Weyco Packaging TIN Acquisition & Acquisition & Integration Integration
25% Global Economic 24% 24% 23% Recession 22% 22% 22% 22% 20% 20% 19% 19% 20% 18% 3.0 Adj.EBITDA 15%
15% 2.8 Business 2.7 2.7 Thousands 15% 13% 2.5 2.6
2.4 2.5
% 1 2.0
10% 1 ($B) 1.6 1.3 1.3 5% Adj. EBITDA Adj. 0.8 0.4 0.5 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Investor Roadshow I February 4, 2021 30 Appendix Appendix | Table of Contents
Industrial Packaging……………….………………………………….…..33-41
Global Cellulose Fibers………………………………………………...... 42-47
Printing Papers..……….……………………………………………………48-56
IP Russia & Ilim Group.………….….……………………………….…….57-60
Other Financial Information…..………………………………….…...... 61-78
Footnotes…………………….…..………………………………….…...... 79-82
Contact Information……………….………………………………….…..83
Investor Roadshow I February 4, 2021 32 N.A. Containerboard | Supply Positions
Stone 13% Others 24% IP Smurfit 31% 7%
1995 Producer GP 2021 Producer Others Position 9% Pratt Position 50% 5% WY 7% PCA 10% IP WRK 7% GP TIN 9% 21% 7%
Source: 2021 estimated effective containerboard capacity based on RISI Capacity Reports, SEC Filings, and IP data and analysis
Investor Roadshow I February 4, 2021 33 IP N.A. Industrial Packaging | Balanced Global Strategy
IP’s channels to market provide choices for maximizing value
N.A. Mill System Capacity Other Uses1 ~13.9 MillionTons ~0.4 MillionTons
Containerboard ~13.5 MillionTons
IP Box Plants Open Market ~85% ~15%
U.S. Non-U.S. Domestic Export ~90% ~10% ~40% ~60%
EMEA Lat Am Asia ~40% ~40% ~20%
Source: 2020 estimates based on IP data and analysis Investor Roadshow I February 4, 2021 34 Global Containerboard Industry | Total Containerboard Trade Flows
Europe 6.5MM
Europe 4.3MM
Estimated 2021 N America Global Demand 5.1MM = 191MM tons Asia Africa 3.0MM C America 1.5MM Mid East 2.6MM 0.7MM
Oceania S America Countries with Net Import or Export S America 0.7MM greater than 100M tons… 1.0MM 0.5MM Africa Net Export, Tons 0.3MM Net Import, Tons
Source: 2021 RISI trade estimates and IP analysis Investor Roadshow I February 4, 2021 35 IP N.A. Containerboard Mill System | ~13.9MM Tons Capacity1
1,800
1,600
1,400
1,200
1,000
800
Thousand Tons Thousand 600
400
200
0
Rome
Xalapa
Orange
Valliant
PineHill
Newport
Maysville
Bogalusa
Prattville
Red River Red
Mansfield
Savannah
Vicksburg
Springfield
Pensacola Henderson Cedar River Cedar
Source: 2020 estimates based on IP data and PM15 Riverdale analysis; chart includes Saturating Kraft & Gypsum Investor Roadshow I February 4, 2021 liner 36 Linerboard Global Cost Curve | 93% of Capacity in 1st Quartile
$1,200
Cash Costs + Delivery to Chicago
$1,000 )
($/Ton $800
Vicksburg $600 Springfield Orange Prattville Bogalusa Savannah Pine Hill Red River $400 Manufacturing Costs Costs Manufacturing Henderson
Pensacola $200 Rome Newport Mansfield Valliant Maysville Xalapa
Cedar Rapids $0 0 20,000 40,000 60,000 80,000 100,000
Cumulative Annual Production (Thousand Tons)
Investor Roadshow I February 4, 2021 Source: FisherSolve ™ 3Q19 data 37 Well-Positioned in Attractive Customer Segments
Customer Segment Industry IP
Food & Beverage ~45%
Processed Food Fresh Produce Protein (Meat & Poultry) Beverage
Other Non-Durables ~30% Chemicals & Pharmaceuticals Paper, Towels & Tissue Other Non-Durables
Durable Goods & Distribution ~25% E-commerce, Shipping & Distribution Durable Goods
Fastest Growth
Investor Roadshow I February 4, 2021 38 U.S. Containerboard | Industry Statistics
Containerboard Pricing
$/short ton $/short ton 800 800
700 700
600 600 Linerboard (List Price) Medium (List Price) Linerboard (OMP) 500 500 Medium (OMP)
$800
$700
400 $600 400
$500
$400 300 $300 300 $200
200 200
Jul-06 Jul-07 Jul-08 Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14 Jul-15 Jul-16 Jul-17 Jul-18 Jul-19 Jul-20
Oct-06 Oct-07 Oct-08 Oct-09 Oct-10 Oct-11 Oct-12 Oct-13 Oct-14 Oct-15 Oct-16 Oct-17 Oct-18 Oct-19 Oct-20
Apr-06 Apr-07 Apr-08 Apr-09 Apr-10 Apr-11 Apr-12 Apr-13 Apr-14 Apr-15 Apr-16 Apr-17 Apr-18 Apr-19 Apr-20
Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Source: RISI Investor Roadshow I February 4, 2021 As of Jan 2015, RISI only reports OMP = Open Market Price 39 Economic Indicators and U.S. Box Demand
150
140
130
120
110 Indexed 100 = 2001 = 100 Indexed 100
90
80
70
US Box Shipments US Nondurable Industrial Production US GDP US Industrial Production
Source: Oxford Economics; RISI North America Containerboard Historical Data
InvestorInvestor Roadshow Roadshow I February I February 4, 2021 4, 2021 40 U.S. Corrugated Packaging Shipments
RISI Forecast
448 438 426 415 420 405 407 396 401 395 390 391 391 390 386 392 394 378 380 379 380 376 373 374 369 357 359 360 360 364
345 Shipments (BSF) Shipments
Historical Data Source: Fibre Box Association Investor Roadshow I February 4, 2021 2021-2025: 1.9% CAGR (RISI – February 2021, 5-yr forecast) 41 Global Cellulose Fibers | Business Overview
Grand Prairie, Alberta
Svetogorsk, Russia Franklin,Franklin, VA VA Eastover SC Market Pulp Mill Eastover SC Kwidzyn, Gdansk, NewNew Bern, Bern, NC NC Poland Poland Fluff Pulp Mill Riegelwood, NC Columbus,Columbus, MS MS Riegelwood, NC Georgetown,Georgetown, SC SC Converting facilities PortPort Wentworth, Wentworth, GA GA Saillat, France Flint River, GA Pensacola,Pensacola, FL FL Flint River, GA Market Pulp ~25%
Current Product Mix1 Total Capacity ~3.6MM MTPY Targeted Mix
~75% Fluff Pulp & Specialties 2.7MM 85% Fluff Pulp & Specialties Market Pulp 0.9MM 15%
Investor Roadshow I February 4, 2021 42 Absorbent Hygiene Products (AHP) Outlook | Demand & Growth
AHP demand linked to disposable incomes in emerging markets
10,000
8,000
6,000 USD USD per capita
Disposable Disposable Incomes 4,000
2,000
0 2000 2010 2020 2024 2030 Middle East & Africa Latin America Asia Pacific China
Source: Euromonitor Investor Roadshow I February 4, 2021 43 Global Market Pulp Demand Outlook | Bleached Softwood
24.8MM MTPY CAGR = 1.3% 26.5MM MTPY 2019 – 2023 30 CAGR
Rest of World 1.0% 25 Rest of World
20 3.1% Asia Asia
15
Eastern Europe Eastern Europe 2.6% 10 Western Europe Western Europe (2.2)%
5 Latin America Latin America 0.1%
North America North America 0.7% 0 2018 2023
Investor Roadshow I February 4, 2021 Source: PPPC November 2019 Chemical Market Pulp Forecast SRN 44 Global Cellulose Fibers | Advantaged Position in Attractive Markets
Fluff Demand by Region and End Use
2018 Demand 2018 - 2023 2018 - 2023 5.9MM MTPY CAGR CAGR
Airlaid 12% 0.8% Asia Feminine Care 5.1% 23% 2.8% Well positioned to serve Adult Incontinence 7.7% growing demand with global, EMEA 3.4% 32% strategic customers
Latin America 2.0% Baby Diapers 1.1% 33% North America 1.4%
Source: CAGR, Region and End Use – Price Hanna 2019 Outlook for Absorbent Products; Investor Roadshow I February 4, 2021 2018 Demand – IP analysis 45 IP Global Pulp Capacity | Total of 3.9MM MTPY1
Ilim JV Europe/Russia 2.0 MM 0.3 MM
North America 3.4 MM
Latin America 0.2 MM
Pulp mill
Investor Roadshow I February 4, 2021 46 Pulp | Industry Statistics
USD/admt Global Pulp Prices 1,600
1,400
1,200
1,000
800
600
400
200 NBSK (dne) BEK (dne) Fluff (dne)
0
Jul-06 Jul-07 Jul-08 Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14 Jul-15 Jul-16 Jul-17 Jul-18 Jul-19 Jul-20
Oct-06 Oct-07 Oct-08 Oct-09 Oct-10 Oct-11 Oct-12 Oct-13 Oct-14 Oct-15 Oct-16 Oct-17 Oct-18 Oct-19 Oct-20
Apr-06 Apr-07 Apr-08 Apr-09 Apr-10 Apr-11 Apr-12 Apr-13 Apr-14 Apr-15 Apr-16 Apr-17 Apr-18 Apr-19 Apr-20
Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21
Source: RISI Investor Roadshow I February 4, 2021 Global pulp prices delivered to Northern Europe; Units shown in metric tons 47 IP Global Papers Footprint | Total of 4.0MM Short Tons1
Russia 0.4 MM Ilim JV 0.4 MM Europe North America 0.8 MM 1.7 MM
Brazil 1.1 MM
Uncoated paper mill
Investor Roadshow I February 4, 2021 48 N.A. Uncoated Freesheet Supply | Capacity Positions
GP Other 24% Other 15% 25%
Domtar IP 34% 13% Pixelle 1998 Producer 7% 2019 Producer Union Position Position Camp 9% PCA Champion 10% 10% WY 9% Boise Willamette 10% IP 9% 24%
1998, 2018 Source: Poyry Consulting, RISI, IP analysis Investor Roadshow I February 4, 2021 2019 Producer Position based off of 3Q 2019 Capacity 49 N.A. Papers Mill System | 1.7MM Short Ton Capacity
Uncoated Freesheet Non UFS1 Pulp
100%
80%
60%
40% % % GradeMix /
20%
0% Riverdale PM16 Ticonderoga Eastover Georgetown Paper 350 280 750 290 (M Tons) Pulp 0 0 95 340 Capacity (M Tons)
Investor Roadshow I February 4, 2021 Source: IP Analysis 50 st Uncoated Freesheet Global Cost Curve | IP N.A. Capacity in 1 Cost Quartile
$3,600 Cash Costs + Delivery to Chicago
$3,200
$2,800
$2,400
$2,000
$1,600 Eastover Georgetown
$1,200 Manufacturing Costs $/Ton Costs Manufacturing $800
$400 Ticonderoga Riverdale PM16 $0 0 10,000 20,000 30,000 40,000 50,000
Cumulative Annual Production (Thousand Tons)
Source: FisherSolve ™ 3Q19 data Investor Roadshow I February 4, 2021 51 N.A. Printing Papers | Margin History
25% 19% 19% 22% 16% 20% 20% 18% 18% Adj.EBITDA 17%
% 15%
1 Business 15% 657 657 13% 13% 499 12% 12% 12% 10% 598 575 539 10% 513 1 295 7% ($MM) 314 310 254
Adj. EBITDA Adj. 316 253 261 213 5% 124 0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Tons 4.0 4.1 3.9 3.5 3.0 2.8 2.7 2.7 2.6 2.0 2.0 1.9 1.9 1.9 1.8 1.3 Sold (MM)
Investor Roadshow I February 4, 2021 52 U.S. Uncoated Freesheet Demand
14.013.9 13.3 13.713.6 13.013.2 12.4 12.612.4 12.6 12.2 12.3 12.012.3 11.6 11.9 10.9 9.7 9.6 9.3 RISI Forecast 8.9 8.8 8.0 8.0 7.9 7.6 7.4 6.6 6.1 6.0 5.8
5.3 5.6 5.4 Million Tons
91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Historical Data Source: AF&PA Investor Roadshow I February 4, 2021 2021 – 2025: (3.0%) CAGR (RISI February 2021: 5-yr Forecast) 53 U.S. Uncoated Freesheet | Industry Statistics
Uncoated Freesheet Pricing Trends $/short ton $1,200 $1,200
$1,100 $1,100
$1,000 $1,000
$900 $900
$800 $800
$700 $700 RISI 20# Cutsize RISI 50# Offset
$600 $600
$500 $500
Jul-06 Jul-07 Jul-08 Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14 Jul-15 Jul-16 Jul-17 Jul-18 Jul-19 Jul-20
Oct-06 Oct-07 Oct-08 Oct-09 Oct-10 Oct-11 Oct-12 Oct-13 Oct-14 Oct-15 Oct-16 Oct-17 Oct-18 Oct-19 Oct-20
Apr-06 Apr-07 Apr-08 Apr-09 Apr-10 Apr-11 Apr-12 Apr-13 Apr-14 Apr-15 Apr-16 Apr-17 Apr-18 Apr-19 Apr-20
Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21
Investor Roadshow I February 4, 2021 Source: RISI 54 Latin America Uncoated Freesheet Market
Latin America Capacity Supply & Demand
Others Other LatAm Peru Smurfit 14% IP Demand Capacity Kappa Chile 3% Colombia Ledesma 4% 38% Argentina Celulosa Argentina 4% 3.0MM Brazil 0 500 1,000 1,500 2,000 2,500 7% tons Propal Thousand Short Tons
Latin America is a Net Exporter
30% Capacity @ Demand Net Exports 88% Op. Rate Suzano 2.5 MM 2.7 MM 0.2 MM
Investor Roadshow I February 4, 2021 LatAm analysis excludes Mexico Source: Ibá / AFCP / RISI / Fisher / IP Estimates 55 IP Brazil Papers | Historical Financials
40% 400 33% 34% 35% 33% 31% 350 27% 31% 31% 31% 27% 26% 29% Adj.EBITDA 30% 26% 300
% 24% 329 334 24% Business 25%1 326 250 317 320 293 297 280 296 275 264 251
20% 228 200 1 15% ($MM) 150 149 10% EBITDA Adj. 100
5% 50
0% - 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Tons Sold 0.9 1.0 1.2 1.2 1.3 1.3 1.3 1.3 1.2 1.2 1.3 1.2 1.3 0.9 (MM)
Investor Roadshow I February 4, 2021 56 IP Russia & ILIM JV | Production Overview Well Positioned to Serve Target Markets
Ilim JV Production tonnes1 2019
Bratsk Mill Koryazhma Total 1,108 Softwood bleached pulp 685 Ust-Ilimsk Bratsk Svetogorsk Hardwood bleached pulp 324 KLB 98 Kazakhstan Mongolia Koryazhma Mill China Total 1,334 PM7 paper 186 PM7 CFS 58 Pulp (BHKP, UKP) 314 IP Russia Production1 KLB and others 776 Svetogorsk 2019 Ust-Ilimsk Mill Total 654 Total Coated Paperboard 113 677 Pulp (soft/hardwood) 150 Pulp (BSKP, UKP) Total 628 Fine Papers 391 Hardwood bleached pulp 49
Investor Roadshow I February 4, 2021 57 ILIM Joint Venture | Well Positioned to Serve Growing Pulp Markets
. China will account for more than 60% of world’s incremental market pulp growth . Cost positions with favorable access to China NBSK customers . Access to significant Russian wood basket
$1,000 Cash Cost + Delivery to Beijing, China $800
$600 Ust-Ilimsk
($/Ton) $400
Manufacturing Costs Manufacturing $200 Bratsk $0 0 5,000 10,000 15,000 20,000
Cumulative Capacity (Thousand Tons)
Source: FisherSolve™ 3Q19 data Investor Roadshow I February 4, 2021 58 ILIM Joint Venture | Full Year Financials
2013 2014 2015 2016 2017 2018 2019
Sales Volume (Million metric tonnes) 2.4 2.9 3.0 3.2 3.1 3.3 3.2 Sales ($B) 1.9 2.1 1.9 1.9 2.2 2.7 2.2 Debt ($B) 1.5 1.4 1.2 1.5 1.6 1.6 2.2 Adj. Operating EBITDA ($MM) 203 459 694 680 695 1,207 706 F/X Gain (Loss)1 ($MM) (80) (674) (188) 63 37 (204) 79 EBITDA ($MM) 123 (215) 506 743 732 1,003 785 Depreciation ($MM) 176 188 128 121 151 156 134 EBIT ($MM) (53) (403) 378 622 581 847 651 Interest Expense ($MM) 39 69 52 81 88 70 82 Net Income / (Loss) ($MM) (72) (359) 237 385 362 571 424
(46) (194) 131 199 183 290 207 IP Equity Earnings / (Loss) ($MM)
Dividends (to IP) ($MM) 0 56 35 60 134 128 246
Investor Roadshow I February 4, 2021 59 ILIM Joint Venture | 4Q20 vs. 3Q20
$ Million 4Q19 3Q20 4Q20 2019 2020
Sales Volume 802 878 932 3,162 3,460 (thousand metric tonnes)
Sales $495 $498 $541 $2,188 $2,015
EBITDA1 $138 $(21) $206 $785 $393
F/X (Impact of USD Net 2 $21 $(138) $55 $79 $(126) Debt) Adj. Operating 3 $117 $117 $151 $706 $519 EBITDA Strong demand for softwood pulp in China IP Equity Earnings Price/mix improvement driven by higher softwood 4 $21 $(33) $53 $207 $48 pulp pricing (Loss) IP dividends of $141 million in 2020 F/X gain (non-cash) of $0.05 EPS primarily on USD-denominated net debt in 4Q20
Investor Roadshow I February 4, 2021 60 Adj. Operating EPS1
1.65 1.56
1.27
1.19 1.15 Impact of Mineral .42 .08 Final Land Sale 1.11 1.091.09 Rights Gain 1.01 .93 .91 .91 .94 .87 .90 .87 .84 .83 .83 .79 .82 .76.77.78 .77 .78 .78 .77 .73 .72 .71.75 .67 .66 .67 .66 .57 .58 .58 .59 .56 .57 .52 .52 .49 .49 .47.45 .45 .44 .46 .40 .38 .35 .27 .22 .12 .15 .07
.05
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Investor Roadshow I February 4, 2021 61 Free Cash Flow
$ Million 4Q19 2019 1Q20 2Q20 3Q20 4Q20 2020
Cash Provided by $928 $3,610 $649 $890 $735 $789 $3,063 Operations Cash Invested in Capital Projects, Net of $(363) $(1,276) $(286) $(252) $(119) $(94) $(751) Insurance Recoveries
Free Cash Flow $565 $2,334 $363 $638 $616 $695 $2,312
Investor Roadshow I February 4, 2021 62 Balance Sheet | Financial Strength
Target 2.5 – 2.8x1 4.0x 3.3x 3.2x $3.4 2.8x $2.0 $1.8 2.9x $3.6 2020 Highlights $1.6 2.9x Pension Gap . Reduced balancePension Gap sheet debt by $1.7B Pension Gap $1.1 Pension Gap . Limited near-term maturities
Billion $11.3 $11.2 $10.7 . Pension plan sufficiently funded $9.3 $9.8 $8.1 . $0.6B cash balanceBalance at year-endBalance Sheet Sheet Debt Debt
2015 2016 2017 2018 2019 2020
Op Lease Adj Balance Sheet Debt Pension Gap
Investor Roadshow I February 4, 2021 63 Debt Maturity Profile | Maturities as of September 30, 2020
$1,200
$1,000
$800
$600 Million $400
$200
$0 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048
Investor Roadshow I February 4, 2021 64 Pension Plan Update1 | As of December 31, 2020
Key Variables 2018 2019 2020 2 Assumed Rate of Annual Pension Expense 7.50% 7.25% 7.00% Return $600 545 Discount Rate 4.30% 3.40% 2.60%
447 Average Annualized Returns3 $450 387 2020 24.7% 364 342 Past Five Years 13.9% 290 $300 Past Ten Years 10.7%
Million 209 Portfolio Asset Allocation at 12-31-20 $150 Target Actual 93 Equity 32% - 43% 40% Bonds 44% - 56% 48% $0 2012 2013 2014 2015 2016 2017 2018 2019 Real Estate 5% - 11% 7% Other 3% - 8% 5%
Investor Roadshow I February 4, 2021 65 Proactively Managing Pension Plan
1960-2005 2006-2013 2014 2015 2016 2017 Contributions $0 $2.5B $353MM $750MM $750MM $1.25B
Took definitive actions to de-risk pension plan and further reduce exposure to interest rate variability on a structural basis
2004 2016 2017+ 2019 Defined Benefit Pension Plan Voluntary term-vested buy Defined Benefit Pension Plan closed to new entrants out program reduced plan frozen as of 12/31/18 size by ~10% and introduced new LDI1 policy
. Pension plan sufficiently funded Continue to assess if . Changed the plan's asset allocation to emphasize more fixed income there are attractive opportunities to further . Reallocated the plan’s fixed income investments to longer duration maturities de-risk pension plan on . Expanded certain hedging strategies a structural basis . Transferred ~$2.9B of pension benefit obligations to Prudential ($1.3B in 2017; $1.6B in 2018)
Investor Roadshow I February 4, 2021 66 Capital Spending
% of Depreciation $1,600 125%
$1,400
$1,200 100%
$1,000
$800 ~$800 75% Million $600
$400 50%
$200
$0 25% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021E
Maintenance Regulatory Strategic Cost Reduction % of Depreciation
Reflects continuing operations Investor Roadshow I February 4, 2021 67 2021 Capital Investment
Maintenance & Cost Reduction Strategic Regulatory Creating value through pipeline Reinvesting in core businesses Maintaining world-class, of high return projects with higher growth profile low-cost, advantaged assets ≥ 30% IRR
$0.2B $0.4B
$1,200 Cash Cost (Delivered to Chicago) IP N.A. Containerboard Mills $1,000
$800
$600
$400
$200
$0 0 50,000 100,000 Madrid Mill Conversion Cumulative Annual Containerboard Global Production (Thousand Tons)
Investor Roadshow I February 4, 2021 Source: IP Analysis, FisherSolve™ 3Q19 data 68 Maintenance Outages Expenses | 2020
$ Million 1Q20A 2Q20A 3Q20A 4Q20A 2020A Industrial Packaging $75 $44 $70 $28 $217 North America $74 $40 $60 $28 $202 Europe $1 - $3 - $4 Europe Coated Paperboard - $4 $7 - $11 Brazil - - - - - Global Cellulose Fibers $30 $3 $46 $54 $133 North America $30 $1 $44 $52 $127 Europe - $2 $2 $2 $6 Printing Papers $36 $23 $31 $14 $104 North America $36 $12 $13 $11 $72 Europe - $8 $16 $3 $27 Brazil - $3 $2 - $5 Total Impact $141 $70 $147 $96 $454
Investor Roadshow I February 4, 2021 69 Maintenance Outages Expenses | 2021 Forecast
$ Million 1Q21F 2Q21F 3Q21F 4Q21F 2021F Industrial Packaging $115 $135 $59 $29 $338 North America $115 $129 $56 $28 $328 Europe - - $2 $1 $3 Europe Coated Paperboard - $6 $1 - $7 Global Cellulose Fibers $48 $57 $11 $55 $171 North America $48 $54 $10 $44 $156 Europe - $3 $1 $11 $15 Printing Papers $16 $40 $14 $30 $100 North America $15 $28 $8 $19 $70 Europe $1 $12 $1 $11 $25 Brazil - - $5 - $5 Total Impact $179 $232 $84 $114 $609
Investor Roadshow I February 4, 2021 70 North American Downtime
Containerboard Cellulose Fibers
74 9 47 328 410 66 9 190 68 104 83 3 50 48 202 123 1 36 15 41 26 22 110 91 77 86 105 63 18 14 1
Thousand Tons Thousand 36 Thousand Tons Thousand
Uncoated Papers
205 76
Economic 2 Maintenance 40 27 30 43 33 11 16 14 15
9 10 7 13 Thousand Tons Thousand
Investor Roadshow I February 4, 2021 71 Total Cash Components | 2019
Energy 8% Fiber 37% Chemicals 7%
Overhead 14%
Materials Labor 19% 15%
North American mills only Investor Roadshow I February 4, 2021 72 4Q20 Average Cost Up 1% U.S. Mill Wood Delivered Cost Trend | vs. 3Q20 130
125
120
115
110
105
100
95
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 90
Investor Roadshow I February 4, 2021 IP data, cost Indexed to January 2007 values 73 U.S. OCC Delivered Cost Trend | 4Q20 Average Cost Up 5% vs. 3Q20
220
200
180
160
140
120
100
80
60 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 40
IP data, cost Indexed to January 2007 Investor Roadshow I February 4, 2021 values 74 U.S. Natural Gas Cost Trend | 4Q20 Average Cost Up 28% vs. 3Q20
250
200
150
100
50
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 0
IP data, cost Indexed to January 2007 values Investor Roadshow I February 4, 2021 NYMEX Natural Gas closing prices 75 U.S. Fuel Oil Cost Trend | 4Q20 Average Cost Up 5% vs. 3Q20
300
250
200
150
100
50
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 0
IP data, cost Indexed to January 2007 values Investor Roadshow I February 4, 2021 WTI Crude prices 76 4Q20 Average Cost Flat U.S. Chemical Composite Cost Trend | vs. 3Q20 200
175
150
125
100
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 75
IP data, cost Indexed to January 2007 values Delivered cost to US facilities: includes Caustic Soda, Sodium Chlorate, Starch and Sulfuric Acid 2007 - 2008 excludes WY PKG
Investor Roadshow I February 4, 2021 77 2019 Global Consumption | Annual Purchases for Key Inputs
Commodity North America Non – North America
Natural Gas (MMBTUs) 80,000,000 13,000,000 Energy Fuel Oil (Barrels) 300,000 400,000 Coal (Tons) 80,000 400,000 Wood (Tons) 53,000,000 9,000,000 Fiber Old Corrugated Containers / DLK (Tons) 4,400,000 500,000 Caustic Soda (Tons) 400,000 60,000 Chemicals Starch (Tons) 320,000 140,000 Sodium Chlorate (Tons) 160,000 40,000
Investor Roadshow I February 4, 2021 78 Footnotes
Slide 11 1 Moody’s methodology is used to calculate Adjusted Debt to EBITDA ratio. Moody’s adjusts debt to include balance sheet debt, operating leases/deferred tax liability and debt issuance expense, and pension gap. EBITDA is adjusted to include lease and pension adjustments (non-GAAP)
Slide 12 Free Cash Flow, a non-GAAP financial measure, reflects cash provided by continuing operations for 2006 – 2011, based on data in the 10-K for each year at the time of filing. Free Cash Flow reflects cash provided by operations for 2012 onward. Excludes net cash pension contributions impacting 2006, 2010, 2011, 2013, 2014, 2015, 2016 & 2017, cash flows under European accounts receivable securitization beginning in 2009 and ending in 2011, and cash received from Black Liquor Tax Credits in 2009 and 2010. 2012 excludes $120MM cash paid for Temple-Inland change-in-control agreements, $251MM cash received from unwinding a timber monetization, $44MM cash paid for Temple-Inland pension plan contribution, and $80MM cash paid for Guaranty Bank settlement. 2013 excludes $30MM cash received from Guaranty Bank insurance reimbursements. 1 For 2019 onward, see slide #63 for a reconciliation of cash provided by operations to Free Cash Flow, a non-GAAP financial measure
Slide 13 Years 2013-2017 restated to reflect N.A. Consumer Packaging and xpedx as discontinued operations. Years 2006-2012 are as reported in the 10-K for each year at time of filing 1 Adjusted ROIC, a non-GAAP financial measure, based on Adjusted Operating Earnings before Interest / Average Invested Capital [Equity (adjusted to remove pension related amounts in OCI, net of tax) + Interest- bearing Debt]
Slide 14 1 Before special items and non-operating pension expense (income) (non-GAAP) 2 See slide #63 for a reconciliation of cash provided by operations to Free Cash Flow, a non-GAAP financial measure
Slide 14 1 Before special items and non-operating pension expense (income) (non-GAAP) 2 Adjusted operating EPS , a non-GAAP financial measure based on Adjusted Operating Earnings (defined as Net Earnings Attributable to International Paper (GAAP) before special items and non-operating pension expense (income)) 3 See slide #63 for a reconciliation of cash provided by operations to Free Cash Flow, a non-GAAP financial measure
Slide 17 1 Before special items
Slide 21 1 2020 full-year estimates
Slide 26 1 Ilim JV total sales are not consolidated (IP owns 50% of JV)
Investor Roadshow I February 4, 2021 79 Footnotes
Slide 27 1 Based on 2020 sales, excludes corporate and intercompany eliminations 2 Based on 2020 Adj. EBITDA; before special items and non-operating pension expense (income) (non-GAAP); does not reflect equity earnings from Ilim JV
Slide 28 1 Includes modified absorbent products
Slide 31 1 IP Adjusted EBITDA margins based on North American Industrial Packaging operating profit before special items Excludes the Recycling Business and revenue from trade volumes
Slide 34 1 Includes Saturating Kraft /Gypsum Liner
Slide 36 1 Includes Riverdale’s run-rate capacity post-conversion
Slide 42 1 North American production. Combined businesses, with Riegelwood PM18 running SW market pulp
Slide 46 1 Does not include llim JV
Slide 48 1 Does not include llim JV
Slide 50 1 Non UFS includes Specialty and Uncoated Bristols; 2020 Short Ton capacity
Slide 52 1 Before special items and non-operating pension expense (income) (non-GAAP)
Investor Roadshow I February 4, 2021 80 Footnotes
Slide 56 1 Before special items and non-operating pension expense (income) (non-GAAP)
Slide 57 1 Volumes shown in thousand metric tons
Slide 59 Ilim JV results are US GAAP basis 1 Represents F/X impact including that related to Ilim Group JV USD-denominated net debt (balance of ~$0.4B at year end 2019)
Slide 60 Ilim JV results are on U.S. GAAP basis 1 A non-GAAP financial measure 2 Represents F/X impact including amounts related to Ilim Group USD-denominated net debt (balance of ~$90MM as of December 31, 2020); Ilim Group’s functional currency is the Ruble (RUB); Non-functional-denominated currency balances are measured monthly using the month-end exchange rate 3 Before F/X impact including USD-denominated net debt 4 IP Equity Earnings (Loss) for 4Q19, FY2019, 3Q20, 4Q20 and FY2020 include after-tax F/X gains (losses) (primarily on USD-denominated net debt) of $8MM, $32MM, $(55)MM, $22MM and $50MM, respectively
Slide 61 2006 as originally reported 2007-2011 adjusted for elimination of the Ilim JV reporting lag 2006-2010 Net Earnings from continuing operations and before special items; 2010 onward reflects Operating Earnings xpedx is reflected as a Discontinued Operation from 2010 onward N.A. Consumer Packaging is reflected as a Discontinued Operation from 2013 onward
Slide 63 1 Moody’s methodology is used to calculate Adjusted Debt to EBITDA ratio. Moody’s adjusts debt to include balance sheet debt, operating leases/deferred tax liability and debt issuance expense, and pension gap. EBITDA is adjusted to include lease and pension adjustments (non-GAAP)
Investor Roadshow I February 4, 2021 81 Footnotes
Slide 65 Pension expense reflects service cost, interest cost, amortization of actuarial losses and expected return on plan assets For the past 10 years, IP Pension Plan performance ranked in the top decile of the State Street Bank Corporate and Public Master Trust Universe of approximately 200 observations 1 2013 and onward include Temple-Inland pension plan 2 Non-cash expense for U.S. plans only 3 Through December 2019
Slide 66 1 Liability Driven Investment
Investor Roadshow I February 4, 2021 82 Contact Information
Investor Relations • Guillermo Gutierrez +1-901-419-1731 [email protected]
• Michele Vargas +1-901-419-7287 [email protected]
Media • Thomas Ryan +1-901-419-4333 [email protected]
Investor Roadshow I February 4, 2021