Investor Roadshow | February 23,...

Investor Roadshow | February 23, 2017


Forward-Looking Statements

Certain statements in these slides and made during this presentation may be considered forward-looking

statements. These statements reflect management's current views and 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) the level of

our indebtedness and changes in interest rates; (ii) industry conditions, including but not limited to

changes in the cost or availability of raw materials, energy and transportation costs, competition we face,

cyclicality and changes in consumer preferences, demand and pricing for our products; (iii) global

economic conditions and political changes, including but not limited to the impairment of financial

institutions, changes in currency exchange rates, credit ratings issued by recognized credit rating

organizations, the amount of our future pension funding obligation, changes in tax laws and pension and

health care costs; (iv) unanticipated expenditures related to the cost of compliance with existing and new

environmental and other governmental regulations and to actual or potential litigation; (v) changes in our

estimates for the costs and insurance coverage associated with the recent incident at our Pensacola,

Florida mill and for the time required to resume full operations at the mill; (vi) whether we experience a

material disruption at one of our other manufacturing facilities; (vii) risks inherent in conducting business

through joint ventures; (viii) the failure to realize the expected synergies and cost-savings from our

purchase of the cellulose fibers business of Weyerhaeuser Company; and (ix) our ability to achieve the

benefits we expect from all other strategic acquisitions, divestitures and restructurings. These and other

factors that could cause or contribute to actual results differing materially from such forward-looking

statements are discussed in greater detail in our Securities and Exchange Commission filings. We

undertake no obligation to publicly update any forward-looking statements, whether as a result of new

information, future events or otherwise.

2


Statements Relating to Non-GAAP Financial Measures

During the course of this presentation, certain non U.S. GAAP financial measures

will be presented, such as Adjusted Operating EPS, Adjusted EBIT, Adjusted

EBITDA, Adjusted EBITDA Margin, Free Cash Flow and Adjusted ROIC.

A reconciliation of all presented non-GAAP measures (and their components) to

U.S. GAAP financial measures is available on the company’s website at

internationalpaper.com under Performance/Investors.

3


Ilim JV Information

All financial information and statistical measures regarding our 50/50 Ilim joint

venture in Russia (“Ilim”), other than historical International Paper Equity Earnings

and dividends received by International Paper, have been prepared by the

management of Ilim. Any projected financial information and statistical measures

reflect the current views of Ilim 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.”

4

Investment Thesis


IP Investment Thesis | Long-Term Value Creation

To be among the most successful, sustainable and

responsible companies in the world

• Fiber-based Packaging, Pulp and Paper

• Advantaged positions in advantaged markets

• Strong and sustainable Free Cash Flow

• Increase value creation

• Exceed shareholders’ TSR expectations

Vision

Strategy

Shareholder Value


IP Investment Thesis | Leveraging Selective Choices

7

Cost Positions

• Low-cost asset base

− Mill footprint on cost curve

− Disciplined capital

investment

• Sustained low-cost

positions through

operational excellence

and optimization

• Fiber-based Packaging, Pulp and Paper

• Advantaged positions in advantaged markets

Strategy

Renewable

Natural Resources

Availability and access to

low-cost, sustainable fiber

in key manufacturing

regions

Channels to Market

• Strong market positions

• Sell products in markets

where they are valued

• Winning with the right

customers and segments


IP Investment Thesis | Delivering Shareholder Value

Capital Allocation

Strong and sustainable free cash flow to:

Fund dividends (40-50% of FCF)

Maintain healthy balance sheet and

credit rating

Enable opportunistic share buybacks

Reinvest in the businesses and

strengthen portfolio

• Strong and sustainable Free Cash Flow

• Increase value creation

• Exceed shareholders’ TSR expectations

Shareholder Value

Value Creation Levers

Improve what we have:

Manufacturing excellence efforts

Commercial optimization

Targeted investments (IRR>WACC):

Integrate newly-acquired pulp business

and deliver synergies

N.A. Industrial Packaging projects

Madrid mill acquisition / conversion


Capital Allocation | IP’s Balanced Use of Cash

Systematically Return Cash to Shareholders

Trough-Tested Sustainable Dividend

(40% − 50% of FCF)

Opportunistic Share Repurchases

CashFrom

OperationsMaintain Strong

Balance Sheet

& Credit Rating

Appropriate Liquidity & Debt Coverage

Proactively Manage Pension Plan

Selective Reinvestment

Value-Creating, Healthy Spread

Above Cost of Capital

Improving Competitive Position

Effective Capital Spending

Maintenance & Regulatory Needs

High Return, Cost Reduction Projects

9


Delivering on Our Commitments For Value Creation

Strategically

Reinvest in BusinessReturn Cash to

Shareholders

Maintain Strong

Balance Sheet

Robust Capital Allocation Strategy

Annualized Dividend Share Buybacks

$1.5B share buyback (September 2013)

Additional $1.5B

authorization(July 2014)

Running our businesses well and generating strong FCF;

Returns consistently above cost of capital

$1.05 $1.20

$1.40

$1.60 $1.76

$1.85

4Q11 4Q12 4Q13 4Q14 4Q15 4Q16


Global Economic

Recession

$1.6

$1.8

$2.1

$1.8 $1.9

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

$ B

illi

on

sStrong, Sustainable Free Cash Flow

Free Cash Flow, a non U.S. GAAP measure, reflects cash provided by continuing operations for 2005 – 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, 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 $31MM cash paid for pension plan contribution and $30MM cash received from Guaranty Bank

insurance reimbursements. For 2014 onward, see slide #69 for a reconciliation of cash provided by operations to Free Cash Flow.

Transformation:

$0.5 Billion (average)

5-Year Average

$1.8 Billion

11


Global

Economic

Recession

4.5%

6.3%

7.5%

6.5%

5.0%

8.1%

9.5%

8.3%

9.3% 9.2%

11.0%

9.9%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

12

Expanded Spread of Adj. ROIC1 Above Cost of Capital | Increasing Shareholder Value

5-Year Average

9.6%

WACC for 20161 Adjusted ROIC = Adjusted Operating Earnings before Interest / Average Invested Capital [Equity (adjusted to remove pension related amounts in OCI, net of tax) +

Interest-bearing Debt]


Deliver strong free cash flow and Adjusted ROIC ≥ 10%

Integrate newly acquired pulp business and drive synergies to bottom line;

improve Global Cellulose Fibers product mix

Drive N.A. Industrial Packaging earnings improvement

Continue strong operations and cost reduction initiatives

Conversion of Madrid Mill

Continue strong performance at Ilim JV

Allocate capital to create value with focus on near-term debt reduction

13

IP Focus Areas For 2017

Business Overview


2005 - 2007 2008 - 2010 2011+

IP Transformation Timeline/Plan

Transformation Plan

Divestitures & Strategic

Reinvestment

Global Recession IP Achieves Cost of Capital Returns

N.A. Weyco Pkg.

Acquisition

Russia

Ilim JV

India APPM

AcquisitionChina

Sun JV

Brazil

VCP Land / Mill Swap

Coated Papers

Wood Products

Forestland

Kraft Paper

Chemicals

Beverage Pkg.

$11B

Asset Sales

China

SCA Pkg.

Brazil

Grupo Orsa Pkg.

N.A. TIN

Acquisition

Turkey

Olmuksan Pkg.

15

Franklin Fluff

Pulp

Conversion

TIN Bldg.

Products

Sale

xpedx

Spin-Off

Riegelwood

Fluff Pulp

ConversionValliant

PM3

Sun JV

& Asia

Box Sale

Madrid mill

Acquisition

Weyco Pulp

Business

Acquisition


NorthAmerica

Brazil

EMEA &Russia

India

Positioned in attractive markets with low-cost assets that can generate strong free cash flow and returns that can exceed our cost-of-capital

$16.5BNet Sales

$1.1BNet Sales

$2.8BNet Sales

$0.2BNet Sales

Full-year 2016 net sales data1 Ilim JV total sales are not consolidated (IP owns 50% of JV)

International Paper | 2016 Global Portfolio in Packaging, Pulp and Paper

$1.9B1

Ilim JV

Total Sales


Strong Domestic Market Positions

1st

1st

North America

Latin America

EMEA3

2nd

NorthAmerica

83%

Brazil7%

EMEA6%

Russia4%

% Total

EBITDA2

2nd

India

Industrial

PackagingRevenue by

Business1

Consumer

PackagingUncoated

Freesheet

67% 9%19%

Russia

1st 1st

GCF

Ilim

PulpGCF

* Fluff pulp & specialties grades1 Based on 2016 sales; GCF based on 2016 combined business pro-forma sales2 From continuing operations before special items and non-operating pension expense; does not reflect equity earnings from Ilim JV3 Excludes Russia

Global

Cellulose

Fibers

5%

1st*


N.A. Exports | Leveraging Strategic Export Opportunities

18

Fluff Pulp(~90% of N.A. production)

Containerboard(~10% of N.A. production)

EMEA

Asia

Latin America

~50%~40%

~15%

~50%

~35%

% of exports volume shipped to select regions

~10%


Brazil & Russia Exports | Leveraging Strategic Export Opportunities

Softwood Pulp(~50% of Russia production)

Uncoated Freesheet(~50% of Brazil production)

EMEA

Asia

Latin America ~40%

~55%

~5%

~80%

% of exports volume shipped to select regions

~20%


Global

Recession

0.3 0.4 0.5

0.8

1.3 1.31.6

2.0

2.52.7 2.7

2.4

9%

13%15% 15%

19%18%

20%19%

22%24% 24%

22%

0%

5%

10%

15%

20%

25%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Th

ou

san

ds

N.A. Industrial Packaging | Track Record of Success

20

Bu

sin

ess

Ad

j. EB

ITD

A ($

B)

Weyco Packaging

Acquisition & IntegrationTIN Acquisition

& IntegrationAdj.

EBITDA %

IP Adjusted EBITDA margins based on North American Industrial Packaging operating profit before special items

Excludes the Recycling Business and revenue from trade volumes

Growth and Margin Expansion through Strategic Acquisitions

and Successful Integrations


Full-Year 2016 Financial Results

$ Billion(Except as noted)

2014 2015 2016

Sales $23.6 $22.4 $21.1

Adj. EBIT1 $2.7 $2.6 $2.3

Adj. Operating EPS2 $3.00 $3.65 $3.35

Operating EPS impact of Ilim F/X3 – IP Share

($0.63) ($0.18) $0.06

Adj. EBITDA1 $4.1 $3.9 $3.5

Adj. EBITDA Margin 17.5% 17.6% 16.6%

FCF4 $2.1 $1.8 $1.9

Year-End Debt $9.4 $9.3 $11.3

Cash Balance $1.9 $1.0 $1.0

1 From continuing operations before special items and non-operating pension expense2 Adjusted operating EPS based on Adjusted Operating Earnings (defined as Net Earnings (GAAP) from continuing operations before special items and non-operating

pension expense)3 Represents F/X impact including that related to Ilim JV USD-denominated net debt (balance of ~$0.6B at year end 2016)4 See slide # 69 for a reconciliation of cash provided by operations to Free Cash Flow

$2.1$1.8 $1.9

2014 2015 2016

FCF4

($MM)


4Q16 Financial Results

4Q15 3Q16 4Q16

Sales ($B) $5.4 $5.3 $5.4

Adj. EBIT1 ($MM) $616 $613 $498

Adj. Operating EPS2 $0.87 $0.91 $0.73

Operating EPS impact of Ilim F/X3 – IP Share

($0.05) $0.01 $0.01

Adj. EBITDA1 ($MM) $930 $927 $826

Adj. EBITDA Margin1 17.1% 17.6% 15.4%

Free Cash Flow4 ($MM) $501 $575 $467

1 From continuing operations before special items and non-operating pension expense2 Adjusted operating EPS based on Adjusted Operating Earnings (defined as Net Earnings (GAAP) from continuing operations before special items and non-operating

pension expense)3 Represents F/X impact including that related to Ilim JV USD-denominated net debt (balance of ~$0.6B at end of 4Q16)4 See slide #69 for a reconciliation of cash provided by operations to free cash flow

Solid results in N.A. Industrial Pkg

driven by strong demand and

increasing prices

Higher input costs ($17MM)

unfavorably impacted earnings

Impact from Hurricane Matthew

Continued solid operational

performance across businesses

Strong performance at Ilim JV

continued with adjusted operational

EBITDA of $180MM

Closed acquisition of Weyco pulp

business and integrating as new

Global Cellulose Fibers business

Appendix


Appendix - Table of Contents

Industrial Packaging……………….………………………………….…..25-37

Global Cellulose Fibers………………………………………………......38-45

Printing Papers..……….…………………………………………………..46-56

Consumer Packaging……….….………………………….………….…..57-63

IP Russia & Ilim Group.………….….……………………………….……64-67

Financial & Other………………….………………………………….…....68-86

Contact Information……………….………………………………….……….87

Slides


N.A. Containerboard | Supply Positions

Source: 2017 estimated effective containerboard capacity based on RISI Capacity Reports, SEC Filings, and IP data and analysis

2017 Producer Position

Top 5 = 75%

IP32%

WRK19%

GP10%

PCA9%

KapStone4%

Others26%

25

Stone13%

Smurfit7%

GP 9%

WY 7%

IP 7%TIN7%

Others 50%

1995 Producer Position

Top 5 = 43%


IP N.A. Industrial Packaging | Balanced Global Strategy

1 Includes Saturating Kraft /Gypsum Liner

Source: 2017 estimates based on IP data and analysis

IP’s channels to market provide choices for maximizing value

IP Box Plants~80%

Open Market~20%

U.S.~91%

Non-U.S.~9%

Export~55%

Domestic~45%

EMEA~40%

Lat Am~45%

Asia~15%

N.A. Mill System Capacity~13.5 Million Tons

Containerboard~13.1 Million Tons

Other Uses1

~0.4 Million Tons


Global Containerboard Industry | Total Containerboard Trade Flows

Estimated 2017 Global Demand = 179MM tons

27

Net Export, Tons

Net Import, Tons

Countries with Net Import or

Export greater than 100M tons…

Source: 2017 RISI trade estimates and IP Analysis

`

Europe

5.4MM

Europe

4.9MM

N America

4.9MMAfrica

1.6MM

S America

0.4MMS America

1.1MM

C America

2.5MM

Africa

0.4MM

Mid East

0.9MM

Asia

1.1MM

Oceania

0.9MM


IP N.A. Containerboard Mill System | ~13.5 Million Tons Capacity

Source: 2017 estimates based on IP data and analysis; chart includes Saturating Kraft & Gypsum liner

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

Ma

ns

fie

ld

Va

llia

nt

Pra

ttv

ille

Sa

va

nn

ah

Ce

da

r R

iver

Re

d R

iver

Pin

e H

ill

Bo

ga

lus

a

Ro

me

Ora

ng

e

Sp

rin

gfi

eld

Pe

ns

ac

ola

Vic

ks

bu

rg

Ma

ys

vil

le

New

po

rt

He

nd

ers

on

Xa

lap

a

Th

ou

sa

nd

s T

on

s


$0

$200

$400

$600

$800

$1,000

$1,200

0 20,000 40,000 60,000 80,000 100,000

Ma

nu

fac

turi

ng

Co

sts

($

/To

n)

Cumulative Annual Production (Thousand Tons)

Cash Costs + Delivery to Chicago

Linerboard Global Cost Curve | N.A. Capacity in 1st & 2nd Cost Quartile

Source: FisherSolve™ 3Q16 data

29

Valliant

Cedar

River

Maysville

Campti

Pine Hill

Orange

Prattville

Mansfield

Bogalusa

Vicksburg

Savannah

Rome

Pensacola

Springfield

HendersonXalapa


N.A. Industrial Packaging Relative Adj. EBITDA Margins

22.0% 22.0%

17.7%

21.3% 20.8%

18.2%

19.7%

20.6%

15.8%

IP PCA WestRock

4Q15 3Q16 4Q16

IP Adjusted EBITDA margins based on North American Industrial Packaging operating profit before special items

Excludes the Recycling Business and revenue from trade volumes

Competitor Adjusted EBITDA margin estimates obtained from public filings and IP analysis

2016

21.1%

201621.5%

17.5%

2016


Note: IP Mix, 2015. Industry Mix, 2014.

Source: IP Analysis

IP Well-Positioned in Attractive Customer Segments

57%

22%

21%

IP Box Shipments by Segment

31

Market SegmentIP

Mix

Industry

Mix

Food & Beverage 57% 50%

Processed Food

Protein

Produce

Beverage

Other Non-Durable Goods 22% 30%

Paper Products

Chemicals & Pharma

Other Non-Durables

Durable Goods & Distribution 21% 20%

Building Materials

Other Durables

Shipping & Distribution


N.A. Industrial Packaging | Building Upon a Great Business

Breadth of footprint

Key levers contributing to IP’s track record of success…

Manufacturing/supply chain excellence

Commercial execution

World-class, low-cost assets

Engaged and

talented workforce

Innovation &

value-added

capabilities

Disciplined, targeted capital investment

32


U.S. Containerboard | Industry Statistics

200

300

400

500

600

700

800

200

300

400

500

600

700

800

$/short ton$/short ton

Containerboard Pricing

Linerboard (List Price) Medium (List Price) Linerboard (OMP) Medium (OMP)

Source: RISI

As of Jan 2015, RISI only reports OMP = Open Market Price

33

$200

$300

$400

$500

$600

$700

$800

Jan-90 Jan-95 Jan-00 Jan-05 Jan-10 Jan-15


Economic Indicators and U.S. Box Demand

Source: Oxford Economics; RISI North America Containerboard Historical Data

70

80

90

100

110

120

130

140

200

1

200

2

200

3

200

4

200

5

2006

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

201

6In

dexed 1

00 =

2001

US Box Shipments US Nondurable Industrial Production US GDP US Industrial Production


373378

390396

405401

380 379 380

391 391 395390

374

345

357 359 360 360364

369376 375

384

395

407414

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

Sh

ipm

en

ts (

BS

F)

U.S. Corrugated Packaging Shipments

35

Historical Data Source: Fibre Box Association

2017-2021: 2.5% CAGR (RISI – November 2016, 5-yr forecast)

RISI Forecast


Wood / OCC Fiber Breakeven

25

50

75

100

125

150

175

200

225

25 30 35 40 45 50 55 60 65

OCC Cost Delivered 1

$/ton

Wood Chip Cost Delivered 2

$/ton

Wood Advantaged

OCC Advantaged

2012

2014

36

2013

1 RISI national average OCC price, adjusted for delivery2 Forest2Market chip equivalent basis index price

2015

2016


Brazil Industrial Packaging | Overview

37

Paulinia Mill

Manaus Box Plant

Box plant

Mill

Rio Verde Box Plant

Paulinia Box Plant Suzano Box PlantFranco da Rocha Mill

Nova Campina Mill

2016 Sales* of US $233 Million

Three Containerboard Mills

Four Box Plants

~340 Thousand Tons of Containerboard

Capacity

Sustainable Fiber Supply

Corrugated Domestic Supply Position ~7%

1: 2015 Brazilian Board Association (ABPO)

* As reported: From Dec’15 to Dec’16 (13 months)

Klabin17%

WRK8%

IP7%

Irani6%

Trombini6%Penha

5%Smurfit Kappa

4%

Others47% 3.8MM

tons¹


Compelling Strategic Acquisition | Strengthening IP Global Cellulose Fibers Business

• IP has agreed to acquire the assets of Weyerhaeuser’s pulp business

for $2.2B (announced May 2, 2016)

• Strengthens IP’s position in the growing global fluff pulp markets

• Adds significant value to IP and for its shareholders

Annual run-rate synergies of ~$175MM expected by end of 2018

Additional cash tax benefit of ~$300MM by purchasing assets

3.6X Adjusted EBITDA multiple1, net of tax benefit and with synergies

• Newly-acquired pulp business consists of best-in-class assets,

outstanding customers and a highly talented workforce

• Expansive portfolio of value-added, innovative pulp products in addition to

fluff pulp will allow IP to offer a broader portfolio of products to customers

• IP has proven track record of successful large-scale integrations

38

1 Based on Weyerhaeuser’s pulp business 2015 Adjusted EBITDA of $350 Million


Global Cellulose Fibers | Business Overview

39

~70%

~30%

Current Product Mix1

Fluff Pulp & Specialties Market Pulp

Total Capacity ~3.6MM MTPY Targeted Mix

Fluff Pulp & Specialties 3.0MM 85%

Market Pulp 0.6MM 15%

1 Combined businesses, with Riegelwood PM18 running SW market pulp


0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

1995 2000 2005 2010 2015 2020

An

nu

al G

DP

(U

SD

/cap

ita)

MEA Asia-Pacific Eastern Europe Latin America

AHP demand linked to GDP growth in emerging markets

Source: Euromonitor, 3Q14

Absorbent Hygiene Products (AHP) Outlook | Demand and Growth

40


Global Market Pulp Demand Outlook | Bleached Softwood

North America North America

Latin America Latin America

Western Europe Western Europe

Eastern Europe Eastern Europe

Asia Asia

Rest of WorldRest of World

0

5

10

15

20

25

30

2016 2020

2016 – 2020

CAGR

4.3%

2.4%

1.2%

(1.5%)

(0.6%)

0.9%

Source: PPPC

24.9MM MTPY 25.8MM MTPYCAGR = 0.9%


Global Cellulose Fibers | Advantaged Position in Advantaged Markets

42

Well-Positioned to Serve Growing Demand with Global, Strategic Customers

Source: Poyry World Fibre Outlook up to 2030, IP Analysis

North America

Latin America

EMEA

Asia

Other

2016

2016 - 2020

CAGR

Column1

4.3%

3.6%

3.5%

2.9%Airlaid

11%

Adult

Incontinence

30%

Feminine

Care

23%

Baby

Diapers

36%

5.5MM MTPY

CAGR = 3.6%

Fluff Demand by Region and End Use

3.0%

1.8%

5.1%

5.8%

1.1%

2016 - 2020

CAGR


Pulp mill

IP Global Pulp Capacity | Total of 4.1 MM MTPY1

43

Ilim JV

1.6 MM

Europe / Russia

0.3 MM N. America

3.6 MM

L. America

0.2 MM

1 Does not include llim JV


Global Fluff Pulp Industry | Trade Flows – 2016

Net Import Locations Net Export Locations

Global Demand = 5.5MM MTPY

Import

(1.2)MM

87.0% Export

4.8 MM

Import

(0.5)MM

Import

(0.8)MM

Import

(2.3)MM

Source: PPPC, IP Analysis; Units shown in short tons


Pulp | Industry Statistics

0

200

400

600

800

1,000

1,200

USD/admt Global Pulp Prices

NBSK (dne) BEK (dne) Fluff (dne)

Source: RISI

Global pulp prices delivered to Northern Europe; Units shown in metric tonnes

45


IP Global Papers Footprint | Total of 4.3 Million Short Tons1

1 Does not include llim JV

Brazil

1.1 MM

N. America

1.9 MM

Europe

0.7 MM

Russia

0.4 MM

Uncoated paper mill

India

0.2 MM

ILIM

0.3 MM


GP15%

IP13%

Champion10%

Boise10%Willamette

9%

WY9%

Union Camp

9%

Other 25%

1998 Producer PositionTop 2 = 28%

Top 4 = 48%

2017 Producer PositionTop 2 = 50%

Top 3 = 60%

1998, 2016 Source: Poyry Consulting, Fisher International, IP analysis

N.A. Uncoated Freesheet Supply | Capacity Positions

47

Domtar31%

IP19%PCA

10%

GP10%

Glatfelter6%

Other 24%


0%

20%

40%

60%

80%

100%

Riverdale Ticonderoga Eastover Georgetown

% G

rad

e / M

ix

Uncoated Freesheet Non UFS Pulp1

N.A. Papers Mill System | 1.9MM Short Ton Capacity

1 Non UFS includes Kraft Bag and Uncoated Bristols

Source: IP analysis

Paper

(M Tons) 615 275 700 305

Pulp

(M Tons) 0 0 115 350C

ap

ac

ity

48


$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

0 10,000 20,000 30,000 40,000 50,000

Ma

nu

fac

turi

ng

Co

sts

$/T

on


Cash Costs + Delivery to Chicago

Uncoated Freesheet Global Cost Curve | IP N.A. Capacity in 2nd & 3rd Cost Quartile

Source: FisherSolve ™ 3Q16 data

Georgetown

Riverdale

Ticonderoga

49

Eastover


314

575657 657

513 539598

499

310253 261 316

10%

16%

19% 19%18%

20%

22%

18%

12% 12%13%

17%

0%

5%

10%

15%

20%

25%

0

200

400

600

800

1,000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Adj.EBITDA1

%

Adj.EBITDA1

$ MM Papers Only

N.A. Printing Papers | Margin History

50

Tons (MM)

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 From continuing operations before special items and non-operating pension expense


N.A. Printing Papers Relative Adj. EBITDA Margins

10.8%

9.2%

15.9%

21.6%

19.1%

17.3%

13.5%

18.4%

15.0%

IP PCA Domtar

4Q15 3Q16 4Q16

IP Adjusted EBITDA margins based on operating profit from continuing operations before special items

Competitor Adjusted EBITDA margin estimates obtained from public filings and IP analysis

2016

16.7%

2016

17.1%2016

14.8%


U.S. Uncoated Freesheet Demand

Historical Data Source: AF&PA

2017 – 2021: (1.7%) CAGR (RISI November 2016: 5-yr Forecast)

11.612.212.4

13.313.013.2

13.713.614.013.9

12.612.412.3

12.612.0

12.311.9

10.9

9.7 9.6 9.38.9 8.8

8.0 8.07.7 7.9 7.7 7.6 7.5 7.3

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

Mil

lio

n T

on

s

52

RISI Forecast


U.S. Uncoated Freesheet | Industry Statistics

$500

$600

$700

$800

$900

$1,000

$1,100

$1,200

$500

$600

$700

$800

$900

$1,000

$1,100

$1,200

$/short ton

Uncoated Freesheet Pricing Trends

RISI 20# Cutsize RISI 50# Offset

Source: RISI

53


37%

31%

7%

4%

4%

4%

14%

Latin American Uncoated Freesheet Market

0

500

1,0

00

1,5

00

2,0

00

2,5

00

Brazil

Argentina

Colombia

Chile

Peru

Other LatAm

Thousand Short Tons

Demand

Capacity

Latin America is a Net Exporter

DemandCapacity @

91% Op. RateNet Exports

2.6 MM 2.8 MM 0.2 MM

Supply & Demand

54

LatAm analysis excludes Mexico

Source: Ibá / AFCP / RISI / Fisher / IP Estimates

Top 6 Producers > 80%

Smurfit

Kappa

Ledesma

Celulosa

Argentina

Propal

IP

Others

Suzano

3.1MM

tons


IP Brazil Uncoated Freesheet | At a Glance

Mogi Guacu Luiz Antonio Três Lagoas IP Brazil

UFS Paper

Machines4 2 1 7

UFS Capacity (thousand tons)

460 410 260 1,130

Market Pulp (thousand tons)

35 110 - 145

55


IP Brazil Uncoated Freesheet | Historical Financials

56

280

317

228

296 320

293

334 326

275 264

33% 33%

24%

27% 27% 26%

31% 31% 31%29%

0%

5%

10%

15%

20%

25%

30%

35%

0

50

100

150

200

250

300

350

400

450

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Adj.

EBITDA1

US $ MM

Adj.

EBITDA1

Margin

Tons

(MM) 0.9 1.0 1.2 1.2 1.3 1.3 1.3 1.3 1.2 1.2



IP Global Coated Paperboard Footprint | Total of 1.6 Million Tons

Coated paperboard mill

North America

1.2 Million Tons

Europe/Russia

370,000 Tons

57

Reflects repurposing of Riegelwood mill to pulp


22%

39%

4%

42%17%

9%

15%24%

19%11%

60%

9%

5%

21%

Folding2.1 MM tons

Cupstock1.0 MM tons

Liquid1.3 MM tons

Industry Production by IP’s Key Segments1

N.A. Solid Bleached Sulphate | Supply Positions

1 Does not include Coated Bristols, Platestock, Dish, Tray and others

Folding includes tobacco; Liquid Packaging includes Aseptic

Source: AF&PA; IP Analysis; Public filings

WRK31%

IP22%

GP14%

Rank Group12%

Clearwater13%

Weyco 5%

Industry Capacity for All Segments

58

5.6MM

Tons

(1-2%) +1.8% (1%)

CAGR 2017 - 2020


N.A. Consumer Packaging at a Glance

Coated Paperboard mill Foodservice plant

Packaging includes folding carton, liner and liquid; Foodservice includes cupstock and platestock

SpecialtyCoffee

Theater,Convenience,

HospitalityPackaging

N.A. Consumer Packaging Business~ $2 Billion Annual Revenue

IP Coated Paperboard~1.2MM Tons

QuickService

Food Service

IP Foodservice


$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

0 5,000 10,000 15,000 20,000

Ma

nu

fac

turi

ng

Co

sts

$/T

on


Cash Cost + Delivery to Chicago

Coated Paperboard Global Cost Curve | IP N.A. Capacity in 1st Cost Quartile

Source: FisherSolve™ 3Q16 data

60

Texarkana

Augusta


N.A. Consumer Packaging Historical Financials

242 244 228255

298

419

319263 271 268

212

10% 10%9%

12%13%

17%16%

13%14% 14%

11%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

0

50

100

150

200

250

300

350

400

450

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Adj.

EBITDA1

$ MM

Adj.

EBITDA1

%


61


U.S. Coated Paperboard | Industry Statistics

$450

$550

$650

$750

$850

$950

$1,050

$1,150

$1,250

$/short ton Folding Cartonboard Prices

Bleached Unbleached Recycled

Source: RISI; Series B prices introduced in January 2016 replacing the transaction price series

62


U.S. Cup Market

63

• Paper hot cups & food containers continue to experience growth, in part due to

the foam-to-paper conversion

• Consumers making different beverage choices

– Decrease in soda consumption in both fountain & bottle beverages

– Growth in juice & smoothie beverages, bottled sports drinks, tea & coffee, as

well as regular, flavored & carbonated waters

Sources: Technomic Disposables Report 2016; IP Analysis

33% 31% 28%

17% 19% 20%

49% 51% 52%

0

20

40

60

80

100

120

2011 2013 2015

U.S. Cup Demand Market Segmentation

Foam Plastic Paper

Single-Use Foodservice Cup Demand(billions)

2011 2013 2015

‘13-’15

CAGR

‘16-’20

CAGR

Paper 52 53 56 2.2% 2.5%

Hot 15 17 19 5.5% 5.7%

Cold 37 36 37 0.7% 0.7%

Plastic 18 20 22 5.5% 6.1%

Foam 35 32 30 (3.5%) (3.9%)

TOTAL 106 106 108 1.1% 1.7%


IP Russia & Ilim JV | Manufacturing Overview

Ilim JV Production1 2015 2016

Bratsk Mill

Total 1,163 1,257

• Softwood bleached pulp 672 756

• Hardwood bleached pulp 293 293

• KLB 198 207

Koryazhma Mill

Total 1,353 1,372

• PM7 paper 188 200

• PM7 CFS 50 50

• Pulp (BHKP, UKP) 311 329

• KLB and others 804 793

Ust-Ilimsk Mill

Total 857 874

• Pulp (BSKP, UKP) Total 840 848

• Hardwood bleached pulp 17 26

IP Russia Production1

Svetogorsk 2016

Total 717

• Coated Paperboard 121

• Pulp (soft/hardwood) 165

• Fine Papers 431

1 Volumes shown in thousand short tons

Koryazhma

BratskUst-Ilimsk

China

Kazakhstan Mongolia

Svetogorsk

Well-Positioned to Serve Target Markets

64


Ilim Joint Venture | Well-Positioned to Serve Growing Pulp Markets

China will account

for more than 60% of

world’s incremental

market pulp growth

1st quartile cost positions

with favorable access to

China NBSK market

Access to significant

Russian wood basket

1 Source: FisherSolve™ 3Q16 data

$0

$200

$400

$600

$800

$1,000

0 5,000 10,000 15,000 20,000

Ma

nu

fac

turi

ng

Co

sts

($/T

on

)

Cumulative Capacity (Thousand Tons)

Cash Cost + Delivery to Chicago

Ust-Ilimsk

Bratsk

1


Ilim Joint Venture | Full Year Financials

2013 2014 2015 2016

Sales Volume (Million tons) 2.7 3.2 3.3 3.5

Sales ($B) 1.9 2.1 1.9 1.9

Debt ($B) 1.5 1.4 1.2 1.5

Adj. Operating EBITDA ($MM) 203 459 694 680

F/X Gain (Loss)1 ($MM) (80) (674) (188) 63

EBITDA ($MM) 123 (215) 506 743

Depreciation ($MM) 176 188 128 121

EBIT ($MM) (53) (403) 378 622

Interest Expense ($MM) 39 69 52 81

Net Income / (Loss) ($MM) (72) (359) 237 385

IP Equity Earnings / (Loss) ($MM) (46) (194) 131 199

Dividends (to IP) ($MM) 0 56 35 60

Ilim JV results are US GAAP basis 1 Represents F/X impact including that related to Ilim JV USD-denominated net debt (balance of ~$0.6B at year end 2016)


Ilim Joint Venture | 4Q16 vs. 3Q16

$ Million 4Q15 3Q16 4Q16 2015 2016

Sales Volume (thousand tons)

891 849 987 3,349 3,523

Sales $492 $473 $539 $1,931 $1,927

EBITDA $129 $172 $194 $506 $743

F/X (Impact of USD Net Debt)1 ($48) $6 $14 ($188) $63

Adj. Operational EBITDA2 $177 $166 $180 $694 $680

IP Equity Earnings (Loss)3 $34 $46 $45 $131 $199

Record production at all three mills in 4Q and full year

Higher sales volume driven by stronger demand

Expect modest export price improvement, more than offset by normal seasonality for 1Q’17

Ilim JV results are on U.S. GAAP basis 1 Represents F/X impact including that related to Ilim JV USD-denominated net debt (balance of ~$0.6B at end of 4Q16); Ilim Group’s functional currency is the

Ruble (RUB); Non-functional-denominated currency balances are measured monthly using the month-end exchange rate2 Before F/X impact including USD-denominated net debt3 IP Equity Earnings (Loss) for 4Q15 include after-tax f/x losses (primarily on USD-denominated net debt) of ($19)MM, 3Q16 and 4Q16 include after-tax F/X gains

(primarily on USD-denominated net debt) of $3MM and $6MM, respectively; FY15 include after-tax f/x loss of ($75)MM and FY16 include after-tax f/x gain of $25MM


Adj. Operating EPS

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

.12

.35

.40

.47 .45

.52

.57

.73

.45.49

.41

.15

.07

.27

.38

.22

.05

.44

.85

.72.76 .77 .78

.67

.58

.49

.77

.66.64

.61

1.01

.81

.60

.93.95

.53

.84

.97 .97

.87

.80

.92 .91

.73

.42

.08

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 20102008

Impact of Mineral

Rights Gain

2009

.83

2011

.93Final Land Sale

2012 2013 2014 2015 2016


$ Million 2014 4Q15 2015 1Q16 2Q16 3Q16 4Q16 2016

Cash Provided by Operations

$3,077 $990 $2,580 $620 $605 $341 $912 $2,478

Cash Invested in Capital Projects

($1,366) ($489) ($1,487) ($309) ($328) ($266) ($445) ($1,348)

Cash Contribution to Pension Plan

$353 - $750 - $250 $500 - $750

Free Cash Flow $2,064 $501 $1,843 $311 $527 $575 $467 $1,880

69

Free Cash Flow


Balance Sheet | Financial Strength$

Bill

ion

3.2x

$9.4Balance

Sheet

Debt

$0.8 Op. Lease Adj. $0.5 Op. Lease Adj.

$3.6Pension Gap

[2.3x]1

20152014 2016

3.9x

Moody’s methodology: Adjusted Debt reflects gross balance sheet debt plus pension gap and operating leases

Moody’s methodology: 2016 Adjusted EBITDA of $3.9B incorporates pension and lease expense adjustments1 Simple Debt Coverage: Balance Sheet Debt / 2014 IP’s Adjusted EBITDA of $4.1B2 Simple Debt Coverage: Balance Sheet Debt / 2015 IP’s Adjusted EBITDA of $3.9B3 Simple Debt Coverage: Balance Sheet Debt / 2016 IP’s Adjusted EBITDA of $3.5B

Moody’s Target: Adjusted Debt < 3X Adjusted EBITDA

Pension gap decreased by $0.2B

Made $750MM voluntary

pension contribution

Year-end discount rate decreased from

4.4% (2015) to 4.1% (2016)

Attractive debt financing

10 year and 30 year debt to finance

Weyco pulp acquisition

$ 1.0B cash balance at year end

$9.3Balance

Sheet

Debt

[2.4x]2

$0.5 Op. Lease Adj.

$3.9Pension Gap

3.2x

$11.3Balance

Sheet

Debt

$3.4Pension Gap

[3.2x]3

2016 Highlights


$0

$200

$400

$600

$800

$1,000

$1,200

2017 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 2045 2047

Mil

lio

n

Debt Maturities Other Debt Commercial Paper

1 Primarily foreign debt (intended to be rolled over or refinanced).

Debt Maturity Profile | Maturities as of December 31, 2016

1

71


25%

50%

75%

100%

125%

$0

$300

$600

$900

$1,200

$1,500

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017E

Maintenance Regulatory Strategic Cost Reduction % of Depreciation

$ Million% of

Depreciation

Reflects continuing operations

Capital Spending

72

~$1,500


Pension Plan Update | As of December 31, 2016

• No contribution 1960-2005;

$2.5B contribution 2006-2013

• $1.1B contribution made in

2014-2015

• $750MM voluntary contributions

for 2016

• No contributions required before

2019

($2.8)

($1.5)

($2.4)

($4.1)

($2.2)

($3.9)

($3.6)($3.4)

Billio

n

Year-End Funded Status1

73

1 Reflects status as of December 31


Pension Plan Update1 | As of December 31, 2016

342

545

387

447

364

310

$0

$150

$300

$450

$600

2012 2013 2014 2015 2016 2017E

Millio

n

Annual Pension Expense2 Key Variables 2015 2016 2017E

Assumed Rate of Return

7.75% 7.75% 7.50%

Discount Rate 4.40% 4.10% 4.10%

Average Annualized Returns3

2016 7.1%

Past Five Years 8.7%

Past Ten Years 6.4%

Portfolio Asset Allocation at 12-31-16

Target Actual

Equity 43% - 54% 51%

Bonds 25% - 35% 27%

Real Estate 7% - 13% 10%

Other 8% - 17% 12%1 2013 and onward include Temple-Inland pension plan2 Non-cash expense for U.S. plans only3 Through December 2016

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 approx 200 observations

74


Maintenance Outages Expenses | 2016 Actual

$ Million 1Q16A 2Q16A 3Q16A 4Q16A 2016A

Industrial Packaging $73 $80 $44 $36 $233

North America 73 78 44 35 230

Brazil 0 2 0 1 3

Global Cellulose Fibers1 $50 $9 $16 $3 $78

Printing Papers Total $16 $41 $11 $28 $96


Europe 0 8 10 15 33

Brazil 0 7 0 0 7

India 0 0 1 0 1

Consumer Packaging $19 $3 $2 $11 $35


Europe 0 3 2 0 5

Total Impact $158 $133 $73 $78 $442

75

1 4Q’16 and FY’16 includes Dec’16 maintenance outages expenses from newly-acquired pulp business


Maintenance Outages Expenses | 2017 Forecast

$ Million 1Q17F 2Q17F 3Q17F 4Q17F 2017F

Industrial Packaging $94 $95 $47 $48 $284


Brazil 2 0 0 0 2

Global Cellulose Fibers $50 $49 $27 $10 $136

Printing Papers Total $36 $42 $9 $12 $99


Europe 0 9 0 1 10

Brazil 0 0 7 0 7

India 0 0 1 0 1

Consumer Packaging $0 $31 $0 $11 $42


Europe 0 3 0 0 3

Total Impact $180 $217 $83 $81 $561

76


North American Downtime

93140 146

72 92141 125

86117

53

55

78

230

212

85107 41

Maintenance Economic

718 12 15 21

0 0

10

4113

4 29

31

31

13

29

0

30

11

25

0103

0

17 13 11

4

2716

0

119

Containerboard Uncoated Papers

Global Cellulose Fibers

Th

ou

sand

Sh

ort

To

ns

Th

ou

sand

Sh

ort

To

ns

Th

ou

sand

Me

tric

To

ns

146 150

48

Coated Paperboard

201

31

16

322

46

353

210193

158

13

Th

ou

sand

Sh

ort

To

ns


Total Cash Cost Components | FY 2016

Fiber35%

Materials15%

Freight12%

Labor12%

Energy8%

Overhead10%

Chemicals8%

North American mills only


90

95

100

105

110

115

120

125

130

79

U.S. Mill Wood Delivered Cost Trend | 4Q16 Average Cost Down 1% vs. 3Q16

IP cost Indexed to January 2007 values

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016


40

60

80

100

120

140

160

180

200


80

U.S. OCC Delivered Cost Trend | 4Q16 Average Cost Up 4% vs. 3Q16

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016


0

50

100

150

200

250

81

U.S. Natural Gas Cost Trend | 4Q16 Average Cost Up 6% vs. 3Q16


NYMEX Natural Gas closing prices

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016


0

50

100

150

200

250

300

82

U.S. Fuel Oil Cost Trend | 4Q16 Average Cost Up 3% vs. 3Q16


WTI Crude prices

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016


75

100

125

150

175

200

83

U.S. Chemical Composite Cost Trend | 4Q16 Average Cost Up 3% vs. 3Q16


Delivered cost to U.S. facilities: includes Caustic Soda, Sodium Chlorate, Starch and Sulfuric Acid 2007 - 2008 excludes WY PKG

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016


2017 Global Consumption | Annual Purchase Estimates for Key Inputs

Commodity U. S. Non – U. S.

Energy

Natural Gas (MM BTUs) 75,000,000 11,000,000

Fuel Oil (Barrels) 350,000 400,000

Coal (Tons) 130,000 600,000

FiberWood (Tons) 52,000,000 8,000,000

Old Corrugated Containers / DLK (Tons) 4,800,000 400,000

Chemicals

Caustic Soda (Tons) 320,000 70,000

Starch (Tons) 370,000 120,000

Sodium Chlorate (Tons) 160,000 50,000

LD Polyethylene (Tons) 40,000 -

Latex (Tons) 10,000 6,000

Data does not include newly-acquired pulp business


Global Citizenship | Planet

85

Water

Developing a global water stewardship strategy to use water sustainably

Generating more than 70% of energy needs from renewable fuels

Improved energy efficiency by 4.7% since 2010

Reduced GHG emissions by 16% since 2010

Increased third-party certified fiber by 28% since 2010

IP only accepts fiber that is legally harvested and has known origins

GHG Emissions Forest Stewardship


Global Citizenship | People

86

Safety

Reduced serious injuries by 60% since 2010

Reduced Lost Work Day Incident Rate by 8% since 2010

Named for the tenth consecutive year as one of the World’s Most Ethical Companies®

by the Ethisphere Institute

Stakeholder dialogue allows us to collaborate with communities and continue to improve

Ethics & ComplianceStakeholder

Engagement

For more information visit

internationalpaper.com/sustainability


Investor Relations | Contact Information

Jay Royalty• Vice President, Investor Relations

901-419-1731

[email protected]

Michele Vargas• Director, Investor Relations

901-419-7287

[email protected]

Betty Groom• Financial & Administrative Analyst

901-419-4250

[email protected]

87


International Paper Brazil

Graphic Paper

Manufacture 2015

International Paper Russia

Corporate Social

Responsibility Award 2015

Ethisphere Institute’s

“World’s Most Ethical

Companies®” 2016

Institutional Investor’s

“Most Honored

Company” 2016

2015 AF&PA Better

Practices, Better Planets

2020 Sustainability Award

International Paper India

Parivartan Award 2015

International Paper Awards & Recognitions

IDG’s Computerworld

“100 Best Places to

Work in IT” 2016

1 From FORTUNE Magazine, March 1, 2016. © 2016 Time Inc. Used under license2 From Commercial Appeal (Memphis, TN)

FORTUNE’S “World’s

Most Admired

Companies®” 2016

1

Commercial Appeal’s

“Top Workplace 2016”

2

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