Investor Roadshow February 4, 2021

Investor Roadshow

February 4, 2021

2

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

Investment Thesis

4

Investment Thesis | About Us


We are one of the world’s leading producers of fiber-based

packaging, pulp and paper

We transform renewable resources into recyclable products

people depend on every day

We do the right things, in the right ways, for the right reasons,

all of the time

Who

We Are

What

We Do

How

We Do It

5

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

6

Global Citizenship


7

WATER STEWARDSHIP

SUPPLY CHAIN

Evolved Supplier Code of Conduct

to Third Party Code of Conduct to

include all third parties across

supply chain and expanded risk

monitoring processes

AIR EMISSIONS

49%

GHG EMISSIONS

22% reduction in greenhouse

gas emissions

FIBER EFFICIENCY

0.63%reduction from

reporting mills

ENERGY EFFICIENCY

5%RECYCLING

FIBER CERTIFICATION

47%

63%

SAFETY

65%

COMMUNITY ENGAGEMENT

$134M

WATER QUALITY

28%

SOLID WASTE

19%

Vision 2020 Goals

increase in certified

fiber volume

increase in

recovery of OCC

reduction in serious

safety incidents

donated to charitable

organizations since 2010,

Including more than

$24 million in 2019

improvement in purchased

energy efficiency

reduction in air emissions

(PM, SO2, NOx)

decrease in oxygen-

depleting substances

reduction in manufacturing

waste to landfills

Updated water risk framework and

continued annual facility

assessments. Seventy percent of

mills engaging local stakeholders on

water

More than


8

Vision 2030 | Four Goals. Eight Targets.

BUILDING A BETTER FUTURE FOR PEOPLE, THE PLANET AND OUR COMPANY


9

International Paper Brazil

Graphic Paper

Manufacture 2015

International Paper

Russia Corporate

Social Responsibility

Award 2015

Ethisphere Institute

World’s Most Ethical

Companies® 2020 for

15 consecutive years

1 From FORTUNE Magazine, March 1, 2020. © 2020 Time Inc. Used under license.

Fortune Magazine1

World’s Most Admired

Companies® 2020 for 17

years

Member of the

FTSE4Good Index Series

for demonstrating strong

Environmental, Social

and Governance

(ESG) practices

International Paper Awards & Recognitions

Women’s Choice Award®

2021 Woman’s Choice Award

Best Companies to Work For

Diversity & Millennials

International Paper Awards & Recognitions

IDG’s Computerworld

“100 Best Places to

Work in IT” 2020


Reprinted with permission of

The Wall Street Journal

10

Delivers strong and

sustainable free cash flows

Increases intrinsic value with

return spreads above our

cost of capital (ROIC >

WACC)

Supports policies to return

cash to shareholders

Maintain strong balance

sheet

Fiber-based Packaging, Pulp and Paper

Good market growth rates

Customers and markets that

value our products and

innovations

Strong growing supply positions

Access to the best global

customers and segments

Low cost, competitive assets

Operational excellence

Availability and access to low cost,

sustainable fiber

Capability to provide differentiated and

innovative value propositions

Opportunity for optimization and

productivity gains

Strategy

Advantaged Positions Attractive Markets Shareholder Value

IP Investment Thesis | Strategic Framework

Renewable Natural Resources


11

Capital Allocation Framework | Maximize Value Creation

Sustainable dividend at 40 – 50% of FCF

Share repurchases

Target debt to EBITDA1

2.5x to 2.8x

Pension plan sufficiently funded

Invest to

Strategic Fit | Compelling Value | Disciplined

Cost reduction capex

Strategic capex

Selective M&A

Return Cash to Shareholders

Investment Excellence

Maintain Strong Balance Sheet

$11.3 $11.2 $10.7 $9.8$8.1

$3.4$2.0 $1.8

$1.6

$1.1

4.0x3.3x

2.8x2.9x

2.9x

2016 2017 2018 2019 2020

Billio

n

Op. Leases Balance Sheet Debt Pension Gap

Debt / EBITDA1

(Target 2.5 – 2.8x)

$733 $769 $789 $796 $806

$100

$701$486

$14

2016 2017 2018 2019 2020

Millio

n

Cash to Shareowners

Dividend Share Repurchases


12

$1.0

$0.7

$1.7

$2.2

$1.7 $1.7$1.6

$1.8

$2.1

$1.8 $1.9$2.0

$1.7

$2.3 $2.3

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Bil

lio

nFree Cash Flow1 | Strong Execution of Cash Levers


5-Year

Average

$2.0

13

6.3%

7.5%6.5%

5.0%

8.1%

9.5%

8.3%

9.7%9.2%

11.4%

10.0% 9.9%

13.2%

10.8%

7.7%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Expanded Spread of Adj. ROIC1 Above Cost of Capital


2020 WACC

5-Year

Average

10.0%

14

Solid performance and outstanding cash generation in a

dynamic environment

$3.1B Adjusted EBITDA1

$2.3B Free Cash Flow2

generation

11th consecutive year above cost of capital

Strong execution to support customer needs

Strong and resilient operational performance

Outstanding cost management

Executed our capital allocation framework to enhance our

financial strength

Initiated meaningful actions to Build a Better IP

to grow earnings and cash generation


Full-Year 2020 Results

$1.7

$2.3

$2.3

Free Cash Flow2 ($B)

2018

2020

2019

15

$ Billion (except as noted)

2018 2019 2020

Sales $23.3 $22.4 $20.6

Adjusted EBIT1

$3.0 $2.6 $1.8

Adjusted Operating EPS2

$5.32 $4.43 $2.80

Adjusted EBITDA1

$4.3 $3.9 $3.1

Adjusted EBITDA Margin1

18.7% 17.2% 15.1%

Equity Earnings ($MM) $336 $250 $77

Free Cash Flow3

$1.7 $2.3 $2.3


Full-Year 2020 Financials

$5.32

$4.43

$2.80

Adjusted Operating EPS2

2019

2018

2020

16

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

CEO Perspective | Building a Better IP


17

Select Financial Metrics1


$ Million 2019 2020 2021F

Maintenance Outage Expense $518 $454 $609

Maintenance & Regulatory $750 $430

Cost Reduction $150 $30 ≤ $800

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%

Ca

pex

18

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

Ensuring business continuity with customers and suppliers

Maintaining financial strength to manage economic uncertainty

Supporting critical needs in our communities

Navigating COVID-19 | Principled Leadership in Essential Business


Recognition and appreciation

bonus to employees totaling

~$25 million in 4Q20

Building a Better IP

20

Strategic Rationale | Creating Value Through Focus

CREATE TWO FOCUSED,

LEADING COMPANIES

–IP: Highly advantaged packaging focused company

SpinCo: Well-positioned global paper company

BUILD FOUNDATION

FOR LONG-TERM

SUCCESS

–Agile organizational and

operating model

Commitment to capital allocation framework and investment excellence

POSITION IP TO

ACCELERATE VALUE

CREATION

–Building on strength of our

industrial packaging business

Taking meaningful actions

to grow earnings and cash

generation


21

Creating Two Focused, Leading Companies

IP–Highly advantaged corrugated

packaging-focused company

• Strong strategic profile

• Significant earnings growth catalysts

• Commitment to capital allocation

framework

SpinCo–Well-positioned global paper

company

• Talented team

• Scale and capabilities

• Capital structure with potential to

unlock strategic value

$17B Sales1

~20,000 Customers

28 Mills | 220 Converting Facilities

$3B Sales1

Leading Brands across key markets

7 Mills


22

Value Drivers

IP | Taking Meaningful Action to Grow Earnings and Cash Generation

N.A. Industrial

Packaging

EMEA Industrial

Packaging

Global Cellulose

Fibers

Ilim

Partnership

Executing

Value-Creating Plan

Highly advantaged

Portfolio aligned with IP

+$300MM

Structural Cost Reduction

Lean effectiveness (~30%)

Process optimization (~40%)

Asset optimization (~30%)

$50 - $100MM

Incremental Annual

Profitable Growth

Commercial execution

Investment excellence

$350 - $400MM

Incremental earnings growth by end of 2023


23

SpinCo | Global Paper Company Positioned for Success

Strong leadership and talented team

Substantial scale with global capabilities

Competitive cost positions across

geographies

Leading brands across key markets

Significant potential to unlock

strategic options

7 Mills with Paper Capacity of 2.5MM Metric Tons

Brazil 1.0MM

Luiz Antônio, São Paulo

Mogi, Guacu, São Paulo

Três Lagoas, Mato Grosso do Sul

Europe 0.2MM

Saillat, France

United States 0.8MM

Ticonderoga, New York

Eastover, South Carolina

Russia 0.4MM

Svetogorsk, Russia

Coated Board Capacity (MT)

Russia 0.1MM


Business Overview

25

TransformationGlobal Economic

RecessionSustainable Returns Above Cost of Capital

N.A. Weyco Pkg.

Acquisition

India APPM

Acquisition

$11B Divestitures

Investments:

China Sun JV

Brazil VCP Land/Mill Swap

Russia Ilim JV (2007)

Asia Pkg.

Acquisition

Brazil Pkg.

Acquisition

N.A. TIN

Acquisition

Turkey Pkg.

Acquisition

Franklin Fluff Pulp

Conversion

xpedx Spin-Off

Riegelwood

Fluff Pulp

Conversion

Valliant PM3

Containerboard

Startup

Sun JV

& Asia Pkg.

Sale

Madrid Mill

Conversion

Weyco Pulp

Business

Acquisition

2005-2007 2011+2008-2010

Path to Value Creation

N.A. Consumer

Packaging

Transfer to GPK

N.A. Ind. Pkg.

Containerboard Mill

Optimization

GPK

Monetization

India APPM Sale

Brazil

Packaging

Sale


26

International Paper | 2020 Global Portfolio in Packaging, Pulp and Paper

North America

Brazil

EMEA & Russia

$17.0BNet Sales

$0.1BNet Sales

$2.8BNet Sales

Full-year 2020 net sales data; does not reflect total company sales

$2.0B1

Positioned in attractive markets with low-cost assets that generate strong free

cash flow and returns that exceed our cost-of-capital

Total Sales

Ilim JV


27

Industrial Packaging

Printing Papers

Global CelluloseFibers

Revenue by

Business1

NorthAmerica

Brazil

EMEA

Russia

% Total

Adjusted

EBITDA2

Strong Domestic Positions

1st

1st

2nd

1st 1st

*Fluff pulp capacity based on Poyry

1st*

North America

Latin America

EMEA

Russia

Ilim

Pulp

73%12%

15%

84%

5%

7%

4%


28

IP N.A. Exports | Leveraging Strategic Export Opportunities


% of export volume

shipped to select regions

Latin America

EMEA

Asia~45%

~20%

~10%

~45%

~40%

~40%

Fluff Pulp1

(~90% of N.A. production)

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

29

Brazil & Russia Exports | Leveraging Strategic Export Opportunities

~55%

% of export volume

shipped to select regions~30%

Latin America

EMEA Asia~70%

~30% ~15%

Softwood Pulp(~50% of production)

Uncoated Freesheet(~50% of Brazil production)

Ilim

Pulp


30

0.4 0.5

0.8

1.3 1.31.6

2.0

2.52.7 2.7

2.42.6

3.02.8

2.513%15% 15%

19%18%

20%19%

22%24% 24%

22% 22%23%

22%

20%

0%

5%

10%

15%

20%

25%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Th

ou

san

ds

Bu

sin

es

s

Ad

j. EB

ITD

A1

($B

)

Weyco Packaging

Acquisition & Integration

Ad

j. E

BIT

DA

1%

TIN Acquisition &

Integration

N.A. Industrial Packaging | Track Record of Success

Global Economic

Recession


Appendix

32

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


33

IP31%

WRK21%

GP9%

PCA10%

Pratt5%

Others24%

N.A. Containerboard | Supply Positions

Source: 2021 estimated effective containerboard capacity based on RISI Capacity Reports, SEC Filings, and IP data and analysis

2021 Producer

Position

Stone13%

Smurfit7%

GP9%

WY7%

IP7%

TIN7%

Others50%

1995 Producer

Position


34

IP N.A. Industrial Packaging | Balanced Global Strategy


Non-U.S.~10%

IP Box Plants~85%

Open Market~15%

U.S.~90%

Export~60%

Domestic~40%

EMEA~40%

Lat Am~40%

Asia~20%

N.A. Mill System Capacity~13.9 MillionTons

Containerboard~13.5 MillionTons

Other Uses1

~0.4 MillionTons

Source: 2020 estimates based on IP data and analysis

IP’s channels to market provide choices for maximizing value

35

Global Containerboard Industry | Total Containerboard Trade Flows

Estimated 2021

Global Demand

= 191MM tons

Net Export, Tons

Net Import, Tons

Countries with Net Import or Export

greater than 100M tons…

Source: 2021 RISI trade estimates and IP analysis

Europe

6.5MM

Europe

4.3MM

N America

5.1MM

Africa

1.5MM

S America

0.5MM

S America

1.0MM

C America

2.6MM

Africa

0.3MM

Mid East

0.7MM

Asia

3.0MM

Oceania

0.7MM


36

IP N.A. Containerboard Mill System | ~13.9MM Tons Capacity1


Source: 2020 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

Ma

ns

field

Vallia

nt

Pra

ttv

ille

Sava

nn

ah

Ced

ar

Riv

er

Pin

eH

ill

Ro

me

Bo

galu

sa

Red

Riv

er

Ora

ng

e

Sp

rin

gfi

eld

Vic

ks

bu

rg

Ma

ysv

ille

Pen

sa

co

la

Riv

erd

ale

PM

15

New

po

rt

Hen

de

rso

n

Xala

pa

Th

ou

sa

nd

To

ns

37

Linerboard Global Cost Curve | 93% of Capacity in 1st Quartile

$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

Newport

Source: FisherSolve ™ 3Q19 data

Cedar Rapids

Henderson

Maysville

Mansfield

Bogalusa

Orange

Pine Hill

Red River

Valliant

Vicksburg

Prattville

Rome

Savannah

Pensacola

Springfield

Xalapa


38

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

39

U.S. Containerboard | Industry Statistics

Source: RISI

As of Jan 2015, RISI only reports

OMP = Open Market Price

200

300

400

500

600

700

800

200

300

400

500

600

700

800

Jan

-06

Ap

r-06

Jul-

06

Oct-

06

Jan

-07

Ap

r-07

Jul-

07

Oct-

07

Jan

-08

Ap

r-08

Jul-

08

Oct-

08

Jan

-09

Ap

r-09

Jul-

09

Oct-

09

Jan

-10

Ap

r-10

Jul-

10

Oct-

10

Jan

-11

Ap

r-11

Jul-

11

Oct-

11

Jan

-12

Ap

r-12

Jul-

12

Oct-

12

Jan

-13

Ap

r-13

Jul-

13

Oct-

13

Jan

-14

Ap

r-14

Jul-

14

Oct-

14

Jan

-15

Ap

r-15

Jul-

15

Oct-

15

Jan

-16

Ap

r-16

Jul-

16

Oct-

16

Jan

-17

Ap

r-17

Jul-

17

Oct-

17

Jan

-18

Ap

r-18

Jul-

18

Oct-

18

Jan

-19

Ap

r-19

Jul-

19

Oct-

19

Jan

-20

Ap

r-20

Jul-

20

Oct-

20

Jan

-21

$/short ton

Containerboard Pricing

Linerboard (List Price)

Medium (List Price)

Linerboard (OMP)

Medium (OMP)

$200

$300

$400

$500

$600

$700

$800

$/short ton


40

Economic Indicators and U.S. Box Demand

Source: Oxford Economics; RISI North

America Containerboard Historical Data

70

80

90

100

110

120

130

140

150

Ind

ex

ed

10

0 =

20

01

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

Investor Roadshow I February 4, 2021Investor Roadshow I February 4, 2021

41

373 378390 396

405 401

380 379 380391 391 395 390

374

345357 359 360 360 364 369

376386 392 394

407415 420 426

438448

Sh

ipm

en

ts (

BS

F)

U.S. Corrugated Packaging Shipments

Historical Data Source: Fibre Box Association

2021-2025: 1.9% CAGR (RISI – February 2021, 5-yr forecast)

RISI Forecast


42

Global Cellulose Fibers | Business Overview


~75%

~25%

Current Product Mix1

Total Capacity ~3.6MM MTPY Targeted Mix

Fluff Pulp & Specialties 2.7MM 85%

Market Pulp 0.9MM 15%

Franklin, VA

New Bern, NC

Riegelwood, NC

Georgetown, SC

Port Wentworth, GA

Flint River, GA

Eastover SC

Pensacola, FL

Columbus, MS

Saillat, France

Kwidzyn,

PolandGdansk,

Poland

Svetogorsk, Russia

Fluff Pulp &

Specialties

Market Pulp

Market Pulp Mill

Fluff Pulp Mill

Converting facilities

Grand Prairie,

Alberta

Franklin, VA

Georgetown, SC

Flint River, GA

Eastover SC

Pensacola, FL

Columbus, MS

New Bern, NC

Riegelwood, NC

Port Wentworth, GA

43Source: Euromonitor

Absorbent Hygiene Products (AHP) Outlook | Demand & Growth

AHP demand linked to disposable incomes in emerging markets


0

2,000

4,000

6,000

8,000

10,000

2000 2010 2020 2024 2030

Dis

posable

Incom

es

US

D p

er

capita

Middle East & Africa Latin America Asia Pacific China

44

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 World

Rest of World

0

5

10

15

20

25

30

2018 2023

Source: PPPC November 2019 Chemical Market Pulp Forecast SRN

24.8MM MTPY 26.5MM MTPYCAGR = 1.3% 2019 – 2023

CAGR

1.0%

3.1%

2.6%

(2.2)%

0.7%

0.1%


45

Global Cellulose Fibers | Advantaged Position in Attractive Markets

North America

Latin America

EMEA

Asia

2018 - 2023

CAGR

1.1%

2.8%

7.7%

0.8%Airlaid 12%

Adult

Incontinence 32%

Feminine Care23%

Baby Diapers33%

Fluff Demand by Region and End Use

2.0%

3.4%

5.1%

1.4%

2018 - 2023

CAGR

Well positioned to serve

growing demand with global,

strategic customers

2018 Demand

5.9MM MTPY

Source: CAGR, Region and End Use – Price Hanna 2019 Outlook for Absorbent Products;

2018 Demand – IP analysisInvestor Roadshow I February 4, 2021

46

IP Global Pulp Capacity | Total of 3.9MM MTPY1

2.0 MM

North America

Latin America

Europe/RussiaIlim JV

0.2 MM

3.4 MM

0.3 MM

Pulp mill


47

Pulp | Industry Statistics

0

200

400

600

800

1,000

1,200

1,400

1,600

Jan

-06

Ap

r-06

Jul-

06

Oct-

06

Jan

-07

Ap

r-07

Jul-

07

Oct-

07

Jan

-08

Ap

r-08

Jul-

08

Oct-

08

Jan

-09

Ap

r-09

Jul-

09

Oct-

09

Jan

-10

Ap

r-10

Jul-

10

Oct-

10

Jan

-11

Ap

r-11

Jul-

11

Oct-

11

Jan

-12

Ap

r-12

Jul-

12

Oct-

12

Jan

-13

Ap

r-13

Jul-

13

Oct-

13

Jan

-14

Ap

r-14

Jul-

14

Oct-

14

Jan

-15

Ap

r-15

Jul-

15

Oct-

15

Jan

-16

Ap

r-16

Jul-

16

Oct-

16

Jan

-17

Ap

r-17

Jul-

17

Oct-

17

Jan

-18

Ap

r-18

Jul-

18

Oct-

18

Jan

-19

Ap

r-19

Jul-

19

Oct-

19

Jan

-20

Ap

r-20

Jul-

20

Oct-

20

Jan

-21

USD/admt Global Pulp Prices

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

Source: RISI

Global pulp prices delivered to Northern Europe;

Units shown in metric tonsInvestor Roadshow I February 4, 2021

48

Europe

0.8 MM

IP Global Papers Footprint | Total of 4.0MM Short Tons1


0.4 MM

North America

Brazil

Ilim JV

1.1 MM

1.7 MM

Russia

0.4 MM

Uncoated paper mill

49

Domtar34%

IP24%

PCA10%

Pixelle7%

Other 24%

GP15%

IP13%

Champion

10%

Boise10%Willamette

9%

WY9%

Union Camp

9%

Other 25%

1998 Producer

Position

2019 Producer

Position

1998, 2018 Source: Poyry Consulting, RISI, IP analysis

2019 Producer Position based off of 3Q 2019 Capacity

N.A. Uncoated Freesheet Supply | Capacity Positions


50

0%

20%

40%

60%

80%

100%

Riverdale PM16 Ticonderoga Eastover Georgetown

% G

rad

e / M

ix

Uncoated Freesheet Non UFS Pulp1

N.A. Papers Mill System | 1.7MM Short Ton Capacity

Paper

(M Tons) 350 280 750 290

Pulp

(M Tons) 0 0 95 340C

ap

ac

ity

Source: IP AnalysisInvestor Roadshow I February 4, 2021

51

$0

$400

$800

$1,200

$1,600

$2,000

$2,400

$2,800

$3,200

$3,600

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

Ma

nu

fac

turi

ng

Co

sts

$/T

on

Cumulative Annual Production (Thousand Tons)

Cash Costs + Delivery to Chicago

Uncoated Freesheet Global Cost Curve |

Source: FisherSolve ™ 3Q19 data

Georgetown

Ticonderoga

Eastover

Riverdale PM16


IP N.A. Capacity in 1st

Cost Quartile

52

314

575

657 657

513539

598 499

310253 261 316

213254

295

124

10%

16%

19% 19%

18%20%

22%

18%

12% 12%13%

17%

12%13%

15%

7%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

0%

5%

10%

15%

20%

25%

Bu

sin

es

sA

dj. E

BIT

DA

1($

MM

)

Ad

j. E

BIT

DA

1%

N.A. Printing Papers | Margin History

Tons

Sold (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 1.9 1.9 1.8 1.3


53

U.S. Uncoated Freesheet Demand

Historical Data Source: AF&PA

2021 – 2025: (3.0%) CAGR (RISI February 2021: 5-yr Forecast)

11.612.212.4

13.313.013.2

13.713.614.013.9

12.612.412.312.612.012.3

11.9

10.9

9.7 9.6 9.38.9 8.8

8.0 8.0 7.9 7.6 7.46.6

5.36.1 6.0 5.8 5.6 5.4

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

Mil

lio

n T

on

s

RISI Forecast


54

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

Jan

-06

Ap

r-06

Jul-

06

Oct-

06

Jan

-07

Ap

r-07

Jul-

07

Oct-

07

Jan

-08

Ap

r-08

Jul-

08

Oct-

08

Jan

-09

Ap

r-09

Jul-

09

Oct-

09

Jan

-10

Ap

r-10

Jul-

10

Oct-

10

Jan

-11

Ap

r-11

Jul-

11

Oct-

11

Jan

-12

Ap

r-12

Jul-

12

Oct-

12

Jan

-13

Ap

r-13

Jul-

13

Oct-

13

Jan

-14

Ap

r-14

Jul-

14

Oct-

14

Jan

-15

Ap

r-15

Jul-

15

Oct-

15

Jan

-16

Ap

r-16

Jul-

16

Oct-

16

Jan

-17

Ap

r-17

Jul-

17

Oct-

17

Jan

-18

Ap

r-18

Jul-

18

Oct-

18

Jan

-19

Ap

r-19

Jul-

19

Oct-

19

Jan

-20

Ap

r-20

Jul-

20

Oct-

20

Jan

-21

$/short ton

Uncoated Freesheet Pricing Trends

RISI 20# Cutsize RISI 50# Offset

Source: RISIInvestor Roadshow I February 4, 2021

55

Latin America Uncoated Freesheet Market

Latin America is a Net Exporter

DemandCapacity @

88% Op. RateNet Exports

2.5 MM 2.7 MM 0.2 MM

38%

30%

7%

4%

4%

3%

14%

0 500 1,000 1,500 2,000 2,500

Brazil

Argentina

Colombia

Chile

Peru

Other LatAm

Thousand Short Tons

Demand Capacity

Supply & DemandLatin America Capacity

LatAm analysis excludes Mexico

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

Smurfit

Kappa

Ledesma

Celulosa

Argentina

Propal

IP

Others

Suzano

3.0MM

tons


56

IP Brazil Papers | Historical Financials

280 317

228 296

320 293 334 326

275 264297

329

251

149

33% 33%

24%

27%27%

26%

31% 31% 31%29%

31%34%

26%24%

0%

5%

10%

15%

20%

25%

30%

35%

40%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

-

50

100

150

200

250

300

350

400

Ad

j. E

BIT

DA

1% B

us

ine

ss

A

dj. E

BIT

DA

1($

MM

)

Tons

Sold

(MM) 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


Ilim JV Production tonnes1 2019

Bratsk Mill

Total 1,108

Softwood bleached pulp 685

Hardwood bleached pulp 324

KLB 98

Koryazhma Mill

Total 1,334

PM7 paper 186

PM7 CFS 58

Pulp (BHKP, UKP) 314

KLB and others 776

Ust-Ilimsk Mill

Total 677

Pulp (BSKP, UKP) Total 628

Hardwood bleached pulp 49

IP Russia Production1

Svetogorsk 2019

Total 654

Coated Paperboard 113

Pulp (soft/hardwood) 150

Fine Papers 391

Koryazhma

BratskUst-Ilimsk

China

Kazakhstan Mongolia

Svetogorsk

Well Positioned to Serve Target Markets

57

IP Russia & ILIM JV | Production Overview


58

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

Source: FisherSolve™ 3Q19 data

$0

$200

$400

$600

$800

$1,000

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

Ma

nu

factu

rin

g C

osts

($/T

on

)

Cumulative Capacity (Thousand Tons)

Cash Cost + Delivery to Beijing, China

Ust-Ilimsk

Bratsk

ILIM Joint Venture | Well Positioned to Serve Growing Pulp Markets


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

IP Equity Earnings / (Loss) ($MM)(46) (194) 131 199 183 290 207

Dividends (to IP) ($MM) 0 56 35 60 134 128 246

ILIM Joint Venture | Full Year Financials

Investor Roadshow I February 4, 2021 59

Investor Roadshow I February 4, 2021 60

$ Million 4Q19 3Q20 4Q20 2019 2020

Sales Volume (thousand metric tonnes)

802 878 932 3,162 3,460

Sales $495 $498 $541 $2,188 $2,015

EBITDA1

$138 $(21) $206 $785 $393

F/X (Impact of USD Net

Debt)2 $21 $(138) $55 $79 $(126)

Adj. Operating EBITDA

3 $117 $117 $151 $706 $519

IP Equity Earnings (Loss)

4 $21 $(33) $53 $207 $48

Strong demand for softwood pulp in China

Price/mix improvement driven by higher softwood

pulp pricing

IP dividends of $141 million in 2020

F/X gain (non-cash) of $0.05 EPS primarily on

USD-denominated net debt in 4Q20

ILIM Joint Venture | 4Q20 vs. 3Q20

61

Adj. Operating EPS1


2006 2007 20102008 2009 2011 2012 2013 2014 2015 2016 2017 2018

.12

.35.40

.47.45

.52.57

.73

.45.49

.15

.07

.27

.38

.22

.05

.44

.72.76.77.78

.67

.58.49

.77

.66

.58.52

.91

.78

.59

.87.87

.46

.79

.90.91.84

.78.82.83

.67

.56

.66

1.01

1.27

.94

1.19

1.56

1.65

1.111.15

1.09

.57

.77.71.75

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

.83

.93

2019

1.09Impact of Mineral

Rights Gain.42 .08 Final Land Sale

2020

62

$ Million 4Q19 2019 1Q20 2Q20 3Q20 4Q20 2020

Cash Provided by Operations

$928 $3,610 $649 $890 $735 $789 $3,063

Cash Invested in Capital Projects, Net of Insurance Recoveries

$(363) $(1,276) $(286) $(252) $(119) $(94) $(751)

Free Cash Flow $565 $2,334 $363 $638 $616 $695 $2,312


Free Cash Flow

63

Balance Sheet | Financial Strength

Pension Gap

Balance

Sheet

Debt

Balance

Sheet

Debt

Pension Gap

Pension GapPension Gap

$9.3$11.3 $11.2 $10.7

$9.8$8.1

$3.6

$3.4$2.0

$1.8$1.6

$1.1

2015 2016 2017 2018 2019 2020

Bill

ion

Op Lease Adj Balance Sheet Debt Pension Gap

2.8x3.3x

2.9x

Target 2.5 – 2.8x1

4.0x

3.2x

2.9x


Reduced balance sheet debt by $1.7B

Limited near-term maturities


$0.6B cash balance at year-end

2020 Highlights

64

Debt Maturity Profile | Maturities as of September 30, 2020

$0

$200

$400

$600

$800

$1,000

$1,200

2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048

Mil

lio

n


65

Pension Plan Update1 | As of December 31, 2020

342

545

387

447

364

290

209

93

$0

$150

$300

$450

$600

2012 2013 2014 2015 2016 2017 2018 2019

Millio

n

Annual Pension Expense2

Key Variables 2018 2019 2020

Assumed Rate of Return

7.50% 7.25% 7.00%

Discount Rate 4.30% 3.40% 2.60%

Average Annualized Returns3

2020 24.7%

Past Five Years 13.9%

Past Ten Years 10.7%

Portfolio Asset Allocation at 12-31-20

Target Actual

Equity 32% - 43% 40%

Bonds 44% - 56% 48%

Real Estate 5% - 11% 7%

Other 3% - 8% 5%


66

Proactively Managing Pension Plan

2016

Voluntary term-vested buy

out program reduced plan

size by ~10% and introduced

new LDI1 policy

Contributions2014

$353MM

2015

$750MM

2016

$750MM

2017

$1.25B

2017+

Continue to assess if

there are attractive

opportunities to further

de-risk pension plan on

a structural basis


Changed the plan's asset allocation to emphasize more fixed income

Reallocated the plan’s fixed income investments to longer duration maturities

Expanded certain hedging strategies

Transferred ~$2.9B of pension benefit obligations to Prudential ($1.3B in 2017; $1.6B in 2018)

Took definitive actions to de-risk pension plan and further reduce

exposure to interest rate variability on a structural basis

1960-2005

$0

2006-2013

$2.5B

2019

Defined Benefit Pension Plan

frozen as of 12/31/18

2004

Defined Benefit Pension Plan

closed to new entrants


67

25%

50%

75%

100%

125%

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021E

Maintenance Regulatory Strategic Cost Reduction % of Depreciation

Millio

n

% of Depreciation

Reflects continuing operations

~$800

Capital Spending


68

2021 Capital Investment

$0

$200

$400

$600

$800

$1,000

$1,200

0 50,000 100,000

Cumulative Annual Containerboard Global Production (Thousand Tons)

IP N.A. Containerboard Mills

Cash Cost (Delivered to Chicago)

Maintenance &

Regulatory

Maintaining world-class,

low-cost, advantaged assets

Madrid Mill Conversion

$0.2B $0.4B

Cost Reduction Strategic

Creating value through pipeline

of high return projects

≥ 30% IRR

Reinvesting in core businesses

with higher growth profile

Source: IP Analysis, FisherSolve™ 3Q19 dataInvestor Roadshow I February 4, 2021

69

$ 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 $133North 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


Maintenance Outages Expenses | 2020

70

$ 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 $171North 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


Maintenance Outages Expenses | 2021 Forecast

71

North American DowntimeT

ho

usa

nd

To

ns

Cellulose FibersContainerboard

Maintenance

Economic

11

2636

68

18 14

41

1

50 48

74 9

66

15

47

9

Th

ou

sa

nd

To

ns

9 10

33

167

43

14 15 13

2

27

30

76

40

Uncoated Papers

205

722 110202

91 7 86 36105 63

410328

190104 83

1233

1

Th

ou

sa

nd

To

ns


72

Total Cash Components | 2019

Fiber37%

Materials19%Labor

15%

Overhead14%

Chemicals7%

Energy8%

North American mills only Investor Roadshow I February 4, 2021

73

U.S. Mill Wood Delivered Cost Trend |

IP data, cost Indexed to January 2007 values

90

95

100

105

110

115

120

125

130

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020


4Q20 Average Cost Up 1% vs. 3Q20

74

U.S. OCC Delivered Cost Trend | 4Q20 Average Cost Up 5% vs. 3Q20

IP data, cost Indexed to January 2007

values

40

60

80

100

120

140

160

180

200

220

20192008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2020


75

U.S. Natural Gas Cost Trend | 4Q20 Average Cost Up 28% vs. 3Q20


NYMEX Natural Gas closing prices

0

50

100

150

200

250

20172008 2009 2010 2011 2012 2013 2014 2015 2016 2018 2019 2020


76

U.S. Fuel Oil Cost Trend | 4Q20 Average Cost Up 5% vs. 3Q20


WTI Crude prices

0

50

100

150

200

250

300

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020


77

U.S. Chemical Composite Cost Trend |


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

75

100

125

150

175

200

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

4Q20 Average Cost Flat

vs. 3Q20


78

2019 Global Consumption | Annual Purchases for Key Inputs

Commodity North America Non – North America

Energy

Natural Gas (MMBTUs) 80,000,000 13,000,000

Fuel Oil (Barrels) 300,000 400,000

Coal (Tons) 80,000 400,000

FiberWood (Tons) 53,000,000 9,000,000

Old Corrugated Containers / DLK (Tons) 4,400,000 500,000

Chemicals

Caustic Soda (Tons) 400,000 60,000

Starch (Tons) 320,000 140,000

Sodium Chlorate (Tons) 160,000 40,000


79

Slide 111 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 filing1 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 141 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 141 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 171 Before special items

Slide 211 2020 full-year estimates

Slide 261 Ilim JV total sales are not consolidated (IP owns 50% of JV)

Footnotes


80

FootnotesSlide 271 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 281 Includes modified absorbent products

Slide 311 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 341 Includes Saturating Kraft /Gypsum Liner

Slide 361 Includes Riverdale’s run-rate capacity post-conversion

Slide 421 North American production. Combined businesses, with Riegelwood PM18 running SW market pulp

Slide 461 Does not include llim JV

Slide 481 Does not include llim JV

Slide 501 Non UFS includes Specialty and Uncoated Bristols; 2020 Short Ton capacity

Slide 521 Before special items and non-operating pension expense (income) (non-GAAP)


81

FootnotesSlide 561 Before special items and non-operating pension expense (income) (non-GAAP)

Slide 571 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 measure2 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 rate3 Before F/X impact including USD-denominated net debt4 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 631 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)


82

FootnotesSlide 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 observations1 2013 and onward include Temple-Inland pension plan2 Non-cash expense for U.S. plans only3 Through December 2019

Slide 661 Liability Driven Investment


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]

mailto:[email protected]



Investor Roadshow February 4, 2021

Documents

Transcript of Investor Roadshow February 4, 2021