Investor Roadshow | August 4, 2017
Investor Roadshow | August 4, 2017
Investor Roadshow | August 4, 2017
Forward-Looking Statements
2
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) whether we
experience a material disruption at one of our other manufacturing facilities; (vi) risks inherent in
conducting business through joint ventures; (vii) the failure to realize the expected synergies and cost-
savings from our purchase of the cellulose fibers business of Weyerhaeuser Company; and (viii) 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.
Investor Roadshow | August 4, 2017
Statements Relating to Non-GAAP Financial Measures
3
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.
Investor Roadshow | August 4, 2017
Ilim JV Information
4
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.”
Investor Roadshow | August 4, 2017
Investment Thesis
Investor Roadshow | August 4, 20176
IP Investment Thesis
Our Vision
To be among the most successful,
sustainable and responsible
companies in the world
Our Mission
To improve people’s lives, the planet and
our company’s performance by transforming
renewable resources into products people
depend on every day
Investor Roadshow | August 4, 2017
IP Investment Thesis | About Us
7
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
Investor Roadshow | August 4, 2017
IP Investment Thesis | The IP Way Forward
8
“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
Investor Roadshow | August 4, 2017
IP Investment Thesis | Leveraging Selective Choices
9
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
Investor Roadshow | August 4, 2017
IP Investment Thesis | Delivering Shareholder Value
10
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
Investor Roadshow | August 4, 2017
Capital Allocation | IP’s Balanced Use of Cash
11
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
Investor Roadshow | August 4, 2017
Strengthening Our Balance Sheet
12
Intend to make $1.25B voluntary pension contribution by September 15th
– Funded partially with proceeds from recent debt offering
– Viewed as debt reduction by rating agencies
– Contribution is tax deductible and locks in cash benefit prior to potential
tax reform
– Improved plan funding level provides significant PBGC1 premium savings
Will take additional steps to “de-risk” pension plan in 2H 2017
No required contributions expected during the next five years
1 Pension Benefit Guaranty Corporation
We continue to target available cash for debt reduction
needed to support investment grade credit rating
Investor Roadshow | August 4, 2017
De-Risking the Company
13
Will take additional measures to reduce risk in our pension plan 2H 2017
– Making changes to the plan's asset allocation to emphasize more fixed income
– Reallocating the plan’s fixed income investments to longer duration maturities
– Expanding certain hedging strategies
– Exploring other risk mitigation options
IP is taking meaningful and deliberate steps to de-risk our pension plan
2004
Pension plan
closed to new
entrants
2014
Decision made to freeze
defined benefit pension plan
for active salary participants
effective 12/31/18
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
De-Risking
2017
1 Liability Driven Investment
Investor Roadshow | August 4, 2017
Delivering on Our Commitments For Value Creation
14
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
Investor Roadshow | August 4, 2017
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
15
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 #75 for a reconciliation of cash provided by operations to Free Cash Flow.
Transformation:
$0.5 Billion (average)
5-Year Average
$1.8 Billion
Investor Roadshow | August 4, 2017
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
Expanded Spread of Adj. ROIC1 Above Cost of Capital | Increasing Shareholder Value
16
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]
Investor Roadshow | August 4, 2017
Key drivers of margin expansion
Healthy demand outlook in Industrial Packaging and Global Cellulose Fibers
Realization of recent price increases
Solid operational performance and cost reduction initiatives
Significantly lower maintenance outage expense
Global Cellulose Fibers synergies and momentum
Allocate capital to create value with a near-term focus on debt reduction
Remain confident in upside to full year view of 10%+ YoY EBITDA growth
Full Year Outlook | Positioned for Strong Second Half Performance
17
Investor Roadshow | August 4, 2017
Business Overview
Investor Roadshow | August 4, 2017
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.
19
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
Investor Roadshow | August 4, 201720
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
$1.9B1
Ilim JV
Total Sales
Investor Roadshow | August 4, 201721
Strong Domestic Market Positions
1st
1st
North America
Latin America
EMEA3
2nd
NorthAmerica
83%
Brazil8%
EMEA6%
Russia3%
% Total
Adjusted
EBITDA4
2nd
India
Industrial
PackagingRevenue by
Business1
Consumer
PackagingPrinting
Papers
64% 8%18%
Russia
1st 1st
Ilim
Pulp
* Fluff pulp & specialties grades1 Based on 1H17 sales2 From continuing operations before special items and non-operating pension expense; does not reflect equity earnings from Ilim JV3 Excludes Russia4 Based on 2016 Adj. EBITDA Margins
Global
Cellulose
Fibers
10%
1st*
Investor Roadshow | August 4, 2017
N.A. Exports | Leveraging Strategic Export Opportunities
22
Fluff Pulp(~90% of N.A. production)
Containerboard(~10% of N.A. production)
EMEA
Asia
Latin America
~50%~40%
~15%
~50%
~35%
% of exports volume shipped to select regions
~10%
Investor Roadshow | August 4, 201723
Brazil & Russia Exports | Leveraging Strategic Export Opportunities
Softwood Pulp(~50% of Russia production)
Uncoated Freesheet(~50% of Brazil production)
EMEA
Asia
Latin America ~40%
~55%
~5%
~80%
% of exports volume shipped to select regions
~20%
Investor Roadshow | August 4, 2017
Global
Recession
N.A. Industrial Packaging | Track Record of Success
24
Bu
sin
ess
Ad
j. EB
ITD
A ($
B)
Weyco Packaging
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
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 2H17RunRate
Th
ou
san
ds
TIN Acquisition
& Integration
Investor Roadshow | August 4, 2017
Full-Year 2016 Financial Results
25
$ 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 #75 for a reconciliation of cash provided by operations to Free Cash Flow
$2.1$1.8 $1.9
2014 2015 2016
FCF4
($MM)
Investor Roadshow | August 4, 2017
Second Quarter 2017 Results
26
1 Adjusted operating EPS based on Adjusted Operating Earnings (defined as Net Earnings (GAAP) from continuing operations before special items and
non-operating pension expense)
Healthy box and containerboard demand driving
N.A. Industrial Packaging performance
Positive momentum in Global Cellulose Fibers
Record fluff pulp sales
Synergies being realized faster
Recent price increases being implemented and
realized across key businesses
OCC cost averaged $20/ton higher than 1Q17
Executed seasonally heavy maintenance outage
schedule; ~75% of outages completed in 1H17
Strong Ilim operational results; equity earnings
negatively impacted by non-cash FX
$0.92
$0.60 $0.65
2Q16 1Q17 2Q17
Adj. Operating EPS1
Investor Roadshow | August 4, 2017
2Q17 Financial Results
27
2Q16 1Q17 2Q17
Sales ($B) $5.3 $5.5 $5.8
Adj. EBIT1 ($MM) $635 $431 $499
Adj. Operating EPS2 $0.92 $0.60 $0.65
Operating EPS impact of Ilim F/X3 – IP Share
$0.01 $0.06 ($0.04)
Adj. EBITDA1 ($MM) $936 $776 $856
Adj. EBITDA Margin1 17.6% 14.1% 14.8%
Free Cash Flow4 ($MM) $527 $259 $355
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 ~$0.8B at end of 2Q17)4 See slide #75 for a reconciliation of cash provided by operations to free cash flow
936
776856
2Q16 1Q17 2Q17
Adj. EBITDA1
($MM)
Investor Roadshow | August 4, 2017
EMEA – Eurozone
Containerboard and Box
28
4Q16 1Q17 2Q17 3Q17 4Q17
NBSK, SBSK
NBSK, SBSK, Fluff
NBSK, SBSK, Fluff
N.A.
Industrial
Packaging
Global
Cellulose
Fibers
Printing
Papers
Brazil Domestic
N.A.
Consumer
Packaging
Jan RISI Pub: $15-$20/ton
Feb RISI Pub: $20-$25/ton
Mar RISI Pub: $20-$35/ton
May RISI Pub: $20-40/ton
Effective March 1: 10.9%
CBD and Box
EMEA – Eurozone & Poland
Effective March 1: 5.0%
Latam ExportEffective May 1: 7.0%
SBS
April RISI Pub ($20 of announced $50)
Nov RISI Pub: $40/ton April RISI Pub: $50/ton
Global Cellulose Cumulative Run Rate
• NBSK +$110
• SBSK +$120
• Fluff +$115
Varies by Region
Export Containerboard
Effective May 15: 5.0%
Announced
April RISI Pub: $20-$30/ton
IP Key Pricing Activity | Setting the Stage for Strong Second Half
NBSK, SBSK, Fluff
NBSK, SBSK, Fluff
May RISI Pub (Additional $10 for cupstock)
Investor Roadshow | August 4, 2017
Appendix
Investor Roadshow | August 4, 2017
Appendix - Table of Contents
Industrial Packaging……………….………………………………….…..31-44
Global Cellulose Fibers………………………………………………......45-52
Printing Papers..……….…………………………………………………..53-62
Consumer Packaging……….….………………………….………….…..63-69
IP Russia & Ilim Group.………….….……………………………….……70-73
Other Financial Information…..………………………………….….......74-90
Global Citizenship………….…..………………………………….….......91-95
Contact Information……………….………………………………….……….96
Slides
Investor Roadshow | August 4, 2017
N.A. Containerboard | Supply Positions
31
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%
Stone13%
Smurfit7%
GP 9%
WY 7%
IP 7%TIN7%
Others 50%
1995 Producer Position
Top 5 = 43%
Investor Roadshow | August 4, 2017
IP N.A. Industrial Packaging | Balanced Global Strategy
32
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
Investor Roadshow | August 4, 2017
Global Containerboard Industry | Total Containerboard Trade Flows
Estimated 2017 Global Demand = 179MM tons
33
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
Investor Roadshow | August 4, 2017
IP N.A. Containerboard Mill System | ~13.5 Million Tons Capacity
34
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
Investor Roadshow | August 4, 2017
$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 | 99.6% of N.A. Capacity in 1st Cost Quartile
35
Source: FisherSolve™ 1Q17 data
Valliant
Maysville
CamptiPine Hill
Orange
Cedar
River
Prattville
Mansfield
Bogalusa
Vicksburg
Savannah
Rome
Pensacola
SpringfieldHenderson
Xalapa
Investor Roadshow | August 4, 2017
N.A. Industrial Packaging Relative Adj. EBITDA Margins
36
22.8% 22.6%
18.3%18.7%
20.6%
15.9%
19.3%
22.0%
18.8%
IP PCA WestRock
2Q16 1Q17 2Q17
1Trailing Twelve Months
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
TTM1
19.5%
21.0%
TTM1
17.2%
TTM1
Investor Roadshow | August 4, 2017
Note: IP Mix, 2016. Industry Mix, 2016.
Source: IP Analysis
IP Well-Positioned in Attractive Customer Segments
37
59%17%
24%
IP Box Shipments by SegmentMarket Segment
IP
Mix
Industry
Mix
Food & Beverage 59% 49%
Processed Food
Protein
Produce
Beverage
Durable Goods & Distribution 24% 21%
Shipping & Distribution
Building Materials
Other Durables
Other Non-Durable Goods 17% 30%
Paper Products
Chemicals & Pharma
Other Non-Durables
Investor Roadshow | August 4, 2017
N.A. Industrial Packaging | Building Upon a Great Business
38
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
Investor Roadshow | August 4, 201739
Pensacola Recovery | Digester Event Summary
• Adjustments to maintenance outage schedule
• Orders redirected to other mills
• Ability to use spare digester dome from Riegelwood mill
System Efforts to Mitigate Impact
• Remediation teams began cleaning common areas within 24 hours
of the incident
• Assessment and cleanup of impacted residences initiated within 48 hours
• Established information line, conducted door-to-door visits, held open house
Community Outreach
• Naturally produced pulping gases combined with pressurized air, triggered
an event never before experienced in IP
• Issued an alert to all IP mills to prevent recurrence
• Shared findings with industry globally
Findings
Jan 22, 2017
Digester Incident
No Injuries
Reported
Mill Down
Jan 23, 2017
Unified Command in
place - Initiated clean
up efforts Investigation
Mar 17, 2017
Spare Digester
Dome Delivered
from Riegelwood
Feb 3, 2017
Fluff Line
Start Up
April 3, 2017
Containerboard
Start Up
Costs & Insurance Recovery• Total costs estimated to be ~$80MM, including $16MM of capex
• Unfavorable 1Q17 earnings impact of $46MM before insurance and mitigation
• Insurance recovery of $12MM booked for 1Q17
• Bottom line impact for 1Q17 mitigated by outage moves and other cost-saving measures
Investor Roadshow | August 4, 2017
U.S. Containerboard | Industry Statistics
40
200
300
400
500
600
700
800
200
300
400
500
600
700
800
Jan
-05
Ap
r-05
Jul-0
5
Oct-
05
Jan
-06
Ap
r-06
Jul-0
6
Oct-
06
Jan
-07
Ap
r-07
Jul-0
7
Oct-
07
Jan
-08
Ap
r-08
Jul-0
8
Oct-
08
Jan
-09
Ap
r-09
Jul-0
9
Oct-
09
Jan
-10
Ap
r-10
Jul-1
0
Oct-
10
Jan
-11
Ap
r-11
Jul-1
1
Oct-
11
Jan
-12
Ap
r-12
Jul-1
2
Oct-
12
Jan
-13
Ap
r-13
Jul-1
3
Oct-
13
Jan
-14
Ap
r-14
Jul-1
4
Oct-
14
Jan
-15
Ap
r-15
Jul-1
5
Oct-
15
Jan
-16
Ap
r-16
Jul-1
6
Oct-
16
Jan
-17
Ap
r-17
$/short ton$/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
$200
$300
$400
$500
$600
$700
$800
Jan-90 Jan-95 Jan-00 Jan-05 Jan-10 Jan-15
Investor Roadshow | August 4, 2017
Economic Indicators and U.S. Box Demand
41
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
Investor Roadshow | August 4, 2017
373378
390396
405401
380 379 380
391 391 395390
374
345
357 359 360 360364
369376
384392
399408
414
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
42
Historical Data Source: Fibre Box Association
2017-2021: 1.9% CAGR (RISI – March 2017, 5-yr forecast)
RISI Forecast
Investor Roadshow | August 4, 2017
Wood / OCC Fiber Breakeven
43
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
2013
1 RISI national average OCC price, adjusted for delivery2 Forest2Market chip equivalent basis index price
2015
2016
1Q17
2Q17
Investor Roadshow | August 4, 2017
Brazil Industrial Packaging | Overview
44
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
Investor Roadshow | August 4, 2017
Global Cellulose Fibers | Business Overview
45
~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 North American production. Combined businesses, with Riegelwood PM18 running SW market pulp
Investor Roadshow | August 4, 2017
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
46
Investor Roadshow | August 4, 201747
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
2017 2020
2017 – 2020
CAGR
2.3%
3.1%
2.8%
(1.6%)
(0.2%)
0.5%
Source: PPPC; IP Analysis
25.3MM MTPY 26.7MM MTPYCAGR = 1.3%
Investor Roadshow | August 4, 2017
Global Cellulose Fibers | Advantaged Position in Advantaged Markets
48
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
2017
2017 - 2021
CAGR
Column1
2.1%
3.1%
7.6%
3.1%Airlaid
11%
Adult
Incontinence
34%
Feminine
Care
22%
Baby
Diapers
33%
6.1MM MTPY
CAGR = 4.3%
Fluff Demand by Region and End Use
2.3%
3.6%
6.3%
1.6%
2017 - 2021
CAGR
Investor Roadshow | August 4, 2017
Pulp mill
IP Global Pulp Capacity | Total of 4.1 MM MTPY1
49
Ilim JV
2.0 MM
Europe / Russia
0.3 MM N. America
3.6 MM
L. America
0.2 MM
1 Does not include llim JV
Investor Roadshow | August 4, 201750
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
Investor Roadshow | August 4, 2017
Pulp | Industry Statistics
51
0
200
400
600
800
1,000
1,200
Jan
-06
Ma
r-06
Ma
y-0
6Jul-0
6S
ep-0
6N
ov-0
6Jan
-07
Ma
r-07
Ma
y-0
7Jul-0
7S
ep-0
7N
ov-0
7Jan
-08
Ma
r-08
Ma
y-0
8Jul-0
8S
ep-0
8N
ov-0
8Jan
-09
Ma
r-09
Ma
y-0
9Jul-0
9S
ep-0
9N
ov-0
9Jan
-10
Ma
r-10
Ma
y-1
0Jul-1
0S
ep-1
0N
ov-1
0Jan
-11
Ma
r-11
Ma
y-1
1Jul-1
1S
ep-1
1N
ov-1
1Jan
-12
Ma
r-12
Ma
y-1
2Jul-1
2S
ep-1
2N
ov-1
2Jan
-13
Ma
r-13
Ma
y-1
3Jul-1
3S
ep-1
3N
ov-1
3Jan
-14
Ma
r-14
Ma
y-1
4Jul-1
4S
ep-1
4N
ov-1
4Jan
-15
Ma
r-15
Ma
y-1
5Jul-1
5S
ep-1
5N
ov-1
5Jan
-16
Ma
r-16
Ma
y-1
6Jul-1
6S
ep-1
6N
ov-1
6Jan
-17
Ma
r-17
Ma
y-1
7
USD/admt Global Pulp Prices
NBSK (dne) BEK (dne) Fluff (dne)
Source: RISI
Global pulp prices delivered to Northern Europe; Units shown in metric tons
Investor Roadshow | August 4, 201752
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
Investor Roadshow | August 4, 2017
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
53
Domtar31%
IP19%PCA
10%
GP10%
Glatfelter6%
Other 24%
Investor Roadshow | August 4, 2017
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
54
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
Investor Roadshow | August 4, 2017
$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
Cumulative Annual Production (Thousand Tons)
Cash Costs + Delivery to Chicago
Uncoated Freesheet Global Cost Curve | IP N.A. Capacity in 2nd & 3rd Cost Quartile
55
Source: FisherSolve ™ 1Q17 data
Georgetown
Riverdale
Ticonderoga
Eastover
Investor Roadshow | August 4, 2017
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
56
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
Investor Roadshow | August 4, 2017
N.A. Printing Papers Relative Adj. EBITDA Margins
57
15.0%
13.4%14.0%
11.1%
15.6%
12.7%
9.0%
15.5%
13.1%
IP PCA Domtar
2Q16 1Q17 2Q17
TTM1
1Trailing Twelve Months
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
TTM1
13.9%
17.2%
14.6%
TTM1
Investor Roadshow | August 4, 2017
U.S. Uncoated Freesheet Demand
58
Historical Data Source: AF&PA
2017 – 2021: (1.5%) CAGR (RISI February 2017: 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 7.7 7.5 7.5 7.4 7.2
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
RISI Forecast
Investor Roadshow | August 4, 2017
U.S. Uncoated Freesheet | Industry Statistics
59
$500
$600
$700
$800
$900
$1,000
$1,100
$1,200
$500
$600
$700
$800
$900
$1,000
$1,100
$1,200
Jan
-06
Ma
r-0
6M
ay-0
6Jul-
06
Se
p-0
6N
ov-0
6Jan
-07
Ma
r-0
7M
ay-0
7Jul-
07
Se
p-0
7N
ov-0
7Jan
-08
Ma
r-0
8M
ay-0
8Jul-
08
Se
p-0
8N
ov-0
8Jan
-09
Ma
r-0
9M
ay-0
9Jul-
09
Se
p-0
9N
ov-0
9Jan
-10
Ma
r-1
0M
ay-1
0Jul-
10
Se
p-1
0N
ov-1
0Jan
-11
Ma
r-1
1M
ay-1
1Jul-
11
Se
p-1
1N
ov-1
1Jan
-12
Ma
r-1
2M
ay-1
2Jul-
12
Se
p-1
2N
ov-1
2Jan
-13
Ma
r-1
3M
ay-1
3Jul-
13
Se
p-1
3N
ov-1
3Jan
-14
Ma
r-1
4M
ay-1
4Jul-
14
Se
p-1
4N
ov-1
4Jan
-15
Ma
r-1
5M
ay-1
5Jul-
15
Se
p-1
5N
ov-1
5Jan
-16
Ma
r-1
6M
ay-1
6Jul-
16
Se
p-1
6N
ov-1
6Jan
-17
Ma
r-1
7M
ay-1
7
$/short ton
Uncoated Freesheet Pricing Trends
RISI 20# Cutsize RISI 50# Offset
Source: RISI
Investor Roadshow | August 4, 2017
37%
31%
7%
4%
4%
4%
14%
Latin American Uncoated Freesheet Market
60
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
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
Investor Roadshow | August 4, 2017
IP Brazil Uncoated Freesheet | At a Glance
61
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
Investor Roadshow | August 4, 2017
IP Brazil Uncoated Freesheet | Historical Financials
62
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
1 From continuing operations before special items and non-operating pension expense
Investor Roadshow | August 4, 2017
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
63
Reflects repurposing of Riegelwood mill to pulp
Investor Roadshow | August 4, 2017
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
64
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%
Nippon 5%
Industry Capacity for All Segments
5.6MM
Tons
(1-2%) +1.8% (1%)
CAGR 2017 - 2020
Investor Roadshow | August 4, 201765
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
Investor Roadshow | August 4, 2017
$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
Cumulative Annual Production (Thousand Tons)
Cash Cost + Delivery to Chicago
Coated Paperboard Global Cost Curve | IP N.A. Capacity in 1st Cost Quartile
66
Source: FisherSolve™ 1Q17 data
Texarkana
Augusta
Investor Roadshow | August 4, 2017
N.A. Consumer Packaging Historical Financials
67
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
%
1 From continuing operations before special items and non-operating pension expense
Investor Roadshow | August 4, 2017
U.S. Coated Paperboard | Industry Statistics
68
$450
$550
$650
$750
$850
$950
$1,050
$1,150
$1,250
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
$/short ton Folding Cartonboard Prices
Bleached Unbleached Recycled
Source: RISI; Series B prices introduced in January 2016 replacing the transaction price series
Investor Roadshow | August 4, 2017
U.S. Cup Market
69
• 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%
Investor Roadshow | August 4, 2017
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
70
Investor Roadshow | August 4, 201771
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™ 1Q17 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 Beijing, China1
Ust-Ilimsk
Bratsk
Investor Roadshow | August 4, 2017
Ilim Joint Venture | Full Year Financials
72
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)
Investor Roadshow | August 4, 2017
Ilim Joint Venture | 2Q17 vs. 1Q17
73
$ Million$ 2Q16 1Q17 2Q17
Sales Volume (thousand tons)
866 748 900
Sales $473 $449 $546
EBITDA $169 $191 $121
F/X (Impact of USD Net Debt)1 $15 $58 ($46)
Adj. Operational EBITDA2 $154 $133 $167
IP Equity Earnings (Loss)3 $46 $50 $21
Seasonally stronger demand and higher pulp pricing drove operational
EBITDA improvement
F/X loss (non-cash) on USD denominated net debt driven by ruble weakening
Seasonally weaker volume expected in 3Q17; equity earnings forecasted to be $35MM4
Ilim JV results are on U.S. GAAP basis 1 Represents F/X impact including amounts related to Ilim JV USD-denominated net debt (balance of ~$0.8B at end of 2Q17); 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 2Q16, 1Q17 and 2Q17 include after-tax F/X gains (losses) (primarily on USD-denominated net debt) of $6MM, $23MM and ($18MM),
respectively4 At June 30, 2017 RUB/USD exchange rate
Investor Roadshow | August 4, 2017
Adj. Operating EPS
74
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
.60.65
.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
1Q
17
2Q
17
2006 2007 20102008
Impact of Mineral
Rights Gain
2009
.83
2011
.93Final Land Sale
2012 2013 2014 2015 2016
Investor Roadshow | August 4, 2017
$ Million 2014 2015 2Q16 2016 1Q17 2Q17
Cash Provided by Operations
$3,077 $2,580 $605 $2,478 $633 $645
Cash Invested in Capital Projects
($1,366) ($1,487) ($328) ($1,348) ($374) ($290)
Cash Contribution to Pension Plan
$353 $750 $250 $750 - -
Free Cash Flow $2,064 $1,843 $527 $1,880 $259 $355
Free Cash Flow
75
Investor Roadshow | August 4, 2017
Balance Sheet | Financial Strength
76
$ B
illio
n
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
Investor Roadshow | August 4, 2017
$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
77
1
Investor Roadshow | August 4, 2017
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
78
~$1,500
Investor Roadshow | August 4, 2017
Pension Plan Update | As of December 31, 2016
79
• 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
1 Reflects status as of December 31
Investor Roadshow | August 4, 2017
Pension Plan Update1 | As of December 31, 2016
80
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
Investor Roadshow | August 4, 2017
Maintenance Outages Expenses | 2016 Actual
81
$ 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
North America 16 26 0 13 55
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
North America 19 0 0 11 30
Europe 0 3 2 0 5
Total Impact $158 $133 $73 $78 $442
1 4Q’16 and FY’16 includes Dec’16 maintenance outages expenses from newly-acquired pulp business
Investor Roadshow | August 4, 2017
Maintenance Outages Expenses | 2017 Forecast
82
$ Million 1Q17A 2Q17A 3Q17F 4Q17F 2017F
Industrial Packaging $71 $100 $47 $32 $250
North America 69 100 47 32 248
Brazil 2 0 0 0 2
Global Cellulose Fibers $50 $44 $8 $11 $113
Printing Papers $23 $43 $2 $13 $81
North America 23 34 1 11 69
Europe 0 6 0 0 6
Brazil 0 3 0 2 5
India 0 0 1 0 1
Consumer Packaging $0 $35 $0 $4 $39
North America 0 33 0 4 37
Europe 0 2 0 0 2
Total Impact $144 $222 $57 $60 $483
Investor Roadshow | August 4, 2017
IP North American Downtime
83
146
72 92141 125
86117 93
157
55230
212
85107 41
35
Maintenance Economic
12 15 210 10 0
35
4 29
31
0
29
0
30
1125
0 10
24 253
15 12 429
18 0
55
13190
Containerboard
Uncoated Papers
Cellulose Fibers
Th
ou
sa
nd
To
ns
Thousand T
ons
Th
ou
sa
nd
To
ns
150
Coated Paperboard
201
16
322
46
353
210193
158
13
78
128
Th
ou
sa
nd
To
ns
Investor Roadshow | August 4, 2017
Total Cash Cost Components | 2Q17 YTD
84
Fiber34%
Materials17%
Freight12%
Labor12%
Energy8%
Overhead10%
Chemicals7%
North American mills only (excludes newly acquired pulp business)
Investor Roadshow | August 4, 2017
90
95
100
105
110
115
120
125
130
U.S. Mill Wood Delivered Cost Trend | 2Q17 Average Cost Down 2% vs. 1Q17
85
IP data, cost Indexed to January 2007 values
2008 2009 2010 2011 2012 2013 2014 2015 2016
Investor Roadshow | August 4, 2017
40
60
80
100
120
140
160
180
200
220
IP data, cost Indexed to January 2007 values
U.S. OCC Delivered Cost Trend | 2Q17 Average Cost Up 10% vs. 1Q17
86
2008 2009 2010 2011 2012 2013 2014 2015 2016
Investor Roadshow | August 4, 2017
U.S. Natural Gas Cost Trend | 2Q17 Average Cost Down 6% vs. 1Q17
87
0
50
100
150
200
250
IP data, cost Indexed to January 2007 values
NYMEX Natural Gas closing prices
2008 2009 2010 2011 2012 2013 2014 2015 2016
Investor Roadshow | August 4, 2017
0
50
100
150
200
250
300
U.S. Fuel Oil Cost Trend | 2Q17 Average Cost Down 13% vs. 1Q17
88
IP data, cost Indexed to January 2007 values
WTI Crude prices
2008 2009 2010 2011 2012 2013 2014 2015 2016
Investor Roadshow | August 4, 2017
75
100
125
150
175
200
U.S. Chemical Composite Cost Trend | 2Q17 Average Cost up 1% vs. 1Q17
89
IP data, cost Indexed to January 2007 values
Delivered cost to U.S. facilities: includes Caustic Soda, Sodium Chlorate, Starch and Sulfuric Acid 2007 - 2008 excludes WY PKG
2008 2009 2010 2011 2012 2013 2014 2015 2016
Investor Roadshow | August 4, 2017
2017 Global Consumption | Annual Purchase Estimates for Key Inputs
90
CommodityNorth
AmericaNon – North
America
Energy
Natural Gas (MMBTUs) 85,000,000 11,000,000
Fuel Oil (Barrels) 450,000 400,000
Coal (Tons) 95,000 600,000
FiberWood (Tons) 60,000,000 8,000,000
Old Corrugated Containers / DLK (Tons) 4,800,000 300,000
Chemicals
Caustic Soda (Tons) 470,000 70,000
Starch (Tons) 390,000 120,000
Sodium Chlorate (Tons) 200,000 60,000
LD Polyethylene (Tons) 40,000 -
Latex (Tons) 10,000 6,000
Investor Roadshow | August 4, 20179191
Global Citizenship | The IP Way Forward
Investor Roadshow | August 4, 201792
Global Citizenship | Sustaining Forests
92
Our entire business depends upon the
sustainability of forests. We will
continue to lead the world in
responsible forest stewardship to
ensure healthy and productive forest
ecosystems for generations to come.
500,000
acres
certified in
our Forest
Management
Group
$7.5MM
invested in
Forestland
Stewards
since 2013
31% increase
in certified
fiber volume
since 2010
Investor Roadshow | August 4, 201793
Global Citizenship | Improving our Planet
93
We tackle the toughest issues in
our value chain, reduce our
environmental footprint and
promote the long-term
sustainability of natural capital.
19%
reduction in
greenhouse
gas
emissions
28%
improvement
in effluent
water quality
23%
reduction in
air emissions
11%
reduction in
waste to
landfills
Statistics indicate progress from a 2010 baseline
Investor Roadshow | August 4, 201794
Global Citizenship | Investing in People
94
We make sustainable investments to
protect and improve the lives of our
employees and mobilize our people,
products and resources to address
critical needs in the communities
where our employees live and work.
Completed
2016 without
a fatal injury
39%
reduction in
serious
safety
incidents
$17.3MM
donated to
charitable
organizations
in 2016
Statistics indicate progress from a 2010 baseline
Investor Roadshow | August 4, 201795
Global Citizenship | Progress Toward our Vision 2020 Goals
95
* Includes $3 million raised through employee giving and fundraising
WATER QUALITY PROGRESS
28% improvementin effluent water quality
SOLID WASTE PROGRESS
11% reductionin manufacturing waste to landfills
WATER STEWARDSHIP PROGRESS
Mapped water use and risk by location, identified priority mills and initiated annual stakeholder and facility assessments
SUPPLY CHAIN PROGRESS
Established baseline supply chain performance and implemented improvement plans
AIR EMISSIONS PROGRESS
23% reductionin air emissions(PM, SO2, NOx)
GHG EMISSIONS PROGRESS
19% reductionin greenhouse gas emissions
FIBER EFFICIENCY PROGRESS
0.79% fiber lossfrom reporting mills
SAFETY PROGRESS
39% reductionin serious safety incidents
COMMUNITY INVOLVEMENT PROGRESS
$17.3 milliondonated to charitable organizations in 2016*
ENERGY EFFICIENCY PROGRESS
6.4% improvementin purchased energy efficiency
FIBER CERTIFICATION PROGRESS
31% increasein certified fiber volume
RECYCLING PROGRESS
17% increasein recovery of OCC
Investor Roadshow | August 4, 2017
Investor Relations | Contact Information
96
Guillermo Gutierrez• Vice President, Investor Relations
901-419-1731
Michele Vargas• Director, Investor Relations
901-419-7287
Betty Groom• Financial & Administrative Analyst
901-419-4250
Investor Roadshow | August 4, 2017
International Paper Brazil
Graphic Paper
Manufacture 2015
International Paper Russia
Corporate Social
Responsibility Award 2015
Named by the Ethisphere
Institute as one of the
“World’s Most Ethical
Companies®” 2017
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” 2017
1 From FORTUNE Magazine, March 1, 2017. © 2017 Time Inc. Used under license2 From Commercial Appeal (Memphis, TN)
FORTUNE’S “World’s
Most Admired
Companies®” 2017
1
Commercial Appeal’s
“Top Workplace 2016”
2
Institutional Investor’s
“Most Honored Company” 2017
in the Paper & Packaging sector