Investor Roadshow I April 30,...

Investor Roadshow I April 30, 2020

Investor Roadshow I April 30, 2020 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, 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 rat ing 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 (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, and (xi) loss contingencies and pending, threatened or future litigation, including with respect to environmental related

matters. 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 internationalpaper.com under Performance/Investors.

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 18.7% 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 Q2 2018 3

Investment Thesis


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


IP 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


“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

IP Investment Thesis | The IP Way Forward


Global Citizenship


WATER STEWARDSHIP

SUPPLY CHAIN

Continuous improvement in policies

and procedures to manage a more

responsible supplier base.

AIR EMISSIONS

46%

GHG EMISSIONS

21% reduction in greenhouse

gas emissions

FIBER EFFICIENCY

0.75%*reduction from

reporting mills

ENERGY EFFICIENCY

8.9%RECYCLING

FIBER CERTIFICATION

44%

50%

SAFETY

35%

COMMUNITY ENGAGEMENT

$110 million

WATER QUALITY

18%

SOLID WASTE

15%

Vision 2020 Goals Progress | As of December 2018

increase in certified

fiber volume

increase in

recovery of OCC

reduction in serious

safety incidents

donated

to charitable

organizations

since 2010

improvement in purchased

energy efficiency

reduction in air emissions

(PM, SO2, NOx)

decrease in oxygen-

depleting substances

reduction in manufacturing

waste to landfills

Formed Water Stewardship

governance team. Continued annual

water risk assessments, with sixty-five

percent of mills engaging local

stakeholders on water.

Exceeded

Exceeded

*Fiber loss from reporting mills in 2018 was 0.7498%

Exceeded

Exceeded

Exceeded

Exceeded

More

than

8


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

Vision 2030 | Four Goals. Eight Targets.

9


International Paper Brazil Graphic Paper Manufacture 2015

International Paper Russia Corporate Social Responsibility

Award 2015

Ethisphere InstituteWorld’s Most Ethical Companies® 2020 for 14 consecutive years

Women’s Choice Award®2020 Woman’s Choice Award Best Companies to Work For Diversity & Millennials

IDG’s Computerworld “100 Best Places to Work in IT” 2018

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

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

11

Renewable Natural Resources


$0.7 $0.7 $0.8 $0.8 $0.8

$0.5

$0.1

$0.7$0.5

2015 2016 2017 2018 2019

12

Capital Allocation Framework | Maximize Value Creation

Sustainable dividend at 40 – 50% of FCF

Systematic share repurchase

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

Invest to Create Value

Maintain Strong Balance Sheet

Cash to Shareowners($ Billions)

Dividends Share Repurchase

$1.05$1.20

$1.40

$1.60$1.76

$1.85 $1.90$2.00$2.05

4Q11 4Q12 4Q13 4Q14 4Q15 4Q16 4Q17 4Q18 4Q19

Annualized Dividend


Balance Sheet | Financial Strength

$9.3 $11.3 $11.2 $10.7 $9.8

$3.6

$3.4$2.0

$1.8$1.6

2015 2016 2017 2018 2019

$ B

illio

n

2.9x

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

3.3x

Balance

Sheet

Debt

3.2x

Target 2.5 – 2.8x1

$0.4 Op. Lease Adj.

4.0x

Balance

Sheet

Debt

Balance

Sheet

Debt

Pension Gap

Pension GapPension Gap

$0.5 Op. Lease Adj.

Balance

Sheet

Debt

Pension Gap

13

Balance

Sheet

Debt

Pension Gap

$0.5 Op. Lease Adj.

2.8x


$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

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

$ B

illio

ns

Strong, Sustainable Free Cash Flow1

5-Year

Average

$1.9

14


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%

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

15

2020 WACC

Expanded Spread of Adj. ROIC1 Above Cost of Capital

5-Year

Average

11.0%


First Quarter 2020 Results

$896

$1,002

$802

Adjusted EBITDA1

($MM)

4Q19

1Q19

1Q20

Solid performance in a rapidly changing environment:

$802MM Adjusted EBITDA1

$363MM Free Cash Flow2 generation

Strong operational performance and cost management:

Leveraged system flexibility to mitigate impact of

Bogalusa and Rome production loss

COVID-19:

Early actions to safeguard people and operations

Prudent actions to further strengthen liquidity

Strong immediate demand for corrugated packaging

and pulp

Significant demand decline for printing papers


1Q19 4Q19 1Q20

Sales ($B) $5.6 $5.5 $5.4

Adjusted EBIT2($MM) $582 $661 $480

Adjusted Operating EPS1 $1.11 $1.09 $0.57

Ilim F/X3 Impact to Operating EPS $0.05 $0.02 $(0.13)

Adjusted EBITDA2($MM) $896 $1,002 $802

Adjusted EBITDA Margin2 15.9% 18.2% 15.0%

Equity Earnings (Loss) ($MM) $114 $29 $(31)

Free Cash Flow 4($MM) $440 $565 $363

First Quarter 2020 Financials

$1.11

$1.09

$0.57

Adjusted Operating EPS1

4Q19

1Q19

1Q20


Select Financial Metrics1

18

$ Million 2018 2019 2020F

Maintenance Outage Expense $548 $518 $481

Maintenance & Regulatory $900 $750 $350

Cost Reduction $150 $150 $10

Strategic $550 $400 $240

Depreciation & Amortization $1,322 $1,301 $1,300

Net Interest Expense $536 $491 $470

Corporate Expense $67 $54 $80

Effective Tax Rate 25% 26% Withdrawn

Ca

pe

x

Withdrew full-year Adj. EBITDA and FCF outlooks due to COVID-19


COVID-19 Update


Keeping People Safe | Taking Care of Customers | Strengthening Liquidity

Navigating COVID-19 | Principled Leadership in Essential Business

Containment Recovery Normalization Growth

Keeping people safe

Taking care of customers

Strengthening liquidity

Committed to the health and safety of our

employees and contractors

Ensuring business continuity with customers

and suppliers

Taking prudent actions to further strengthen liquidity

20


Navigating COVID-19 | Principled Leadership in Essential Business

Employees Customers Operations Communities

Committed to health and safety

of our employees and

contractors

Practicing hygiene, social

distancing, site cleaning, and

other measures as

recommended by the CDC

and WHO

Implemented contact tracing

and isolation protocols

Taking care of customers in a rapidly changing demand environment

Scale and flexibility of mill and

converting system provides

reliable supply to customers

No significant raw material

issues at this time – recovered

fiber generation declining

rapidly

Truck and rail networks stable

Ocean supply chains

stretched

IP’s three businesses designated

essential

No material operational

disruptions due to COVID-19

positive employees

Vigorous scenario and

sensitivity testing to

understand and manage risk

Taking prudent actions to

strengthen liquidity and

preserve cash

Leveraging core business to support critical needs in our communities

Donating corrugated boxes

to agencies that deliver

essential food and supplies to

those in need

21

Keeping People Safe | Taking Care of Customers | Strengthening Liquidity

Containment

International Paper is a critical part of the supply chain required to

produce and deliver food, pharmaceuticals, hygiene products

and emergency supplies for consumers around the world.


Capital Allocation Framework | Maximize Value Creation

Sustainable dividend at 40 – 50% of FCF

Systematic share repurchase

Target Debt to EBITDA1

2.5x to 2.8x


Invest to

Strategic Fit | Compelling Value | Disciplined

Cost reduction capex

Strategic capex

Selective M&A





2020 capex reduced from

$0.9-$1.0B to $0.6B

Funding mission-critical needs


1Q20 dividend paid ~$0.2B

Share repurchases suspended


No change to target leverage ratio


COVID-19 Update


$3.4

$2.0 $1.8 $1.6 $1.5

YE16 YE17 YE18 YE19 3/31/20

Pension Gap($ Billions)


Discount Rate

4.10% 3.60% 4.30% 3.40% 3.55%

Strong Balance Sheet | No Near-Term Maturities

Balance sheet debt reduced by $1.5B since 2017

Strong credit ratings (Moody’s Baa2 stable; S&P

BBB stable)

Annual interest expense reduced by ~$100MM

since 2017

$8

$420

$88

$5

$117

$170

$70$109

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Quarterly Maturity Profile1

($ Millions)

2023202220212020

Pension Plan Sufficiently Funded

No required contributions expected in next

five years

Reduced exposure to interest rate variability;

plan hedged 75% against interest rate

movement

23


Strong Liquidity | Strengthening Our Liquidity Position

Standby Liquidity $ Million Status Maturity

A/R facility – committed1 $550 Unused1 Apr. 20221

Bank revolver (364-Day) – committed $750 Unused Mar. 2021

Bank revolver (5-Year) – committed $1,500 Unused Dec. 2021

Bond market Accessible

Sufficient liquidity to meet current

economic uncertainty

New $750MM 364-day bank facility

entered March 2020

Credit ratings provide attractive access

to bond market

No covenant concerns

24

Cash Balance $ Million Comments

12/31/2019 $511

03/31/2020 $1,239 Drew ~$550 A/R facility

04/30/2020 ~$1,000 Repaid ~$550 A/R facility


Financial Flexibility to Manage Uncertainty

Cash Levers $ Million

Reduced 2020 capex ~$350

Cost and maintenance initiatives (2020 impact)

~$200

Unwound interest / currency swaps (March and April)

$114

Ilim dividend(Received April)

$141

GPK monetization $250

Extended 2020 debt maturities $87

Deferring payroll taxes to 2021/2022 per CARES Act

~$120

Suspended share repurchases 2019 = $485MM

25

Strong Balance Sheet

Strong and stable credit ratings

No near-term maturities

Strong Liquidity

$2,250MM unused bank revolvers

$550MM unused A/R facility

Multiple Cash Levers

Focus on free cash flow generation

Financial Strength

Strong balance sheet and sufficient

liquidity to manage current

economic uncertainty


CEO Perspective

Talented and committed employees

Unique capabilities to serve

diverse customer base

Ability to optimize full value chain

Solid financial footing

Well-positioned to navigate COVID-19


Business Overview


TransformationGlobal Economic

RecessionSustainable Returns Above Cost of Capital

N.A. Weyco Pkg.Acquisition

India APPMAcquisition

$11B Divestitures

Investments:

China Sun JV

Brazil VCP Land/Mill Swap

Russia Ilim JV (2007)

Asia Pkg. Acquisition

Brazil Pkg.Acquisition

N.A. TINAcquisition

Turkey Pkg.Acquisition

Franklin Fluff Pulp Conversion

xpedx Spin-Off

RiegelwoodFluff Pulp Conversion

Valliant PM3 ContainerboardStartup

Sun JV& Asia Pkg. Sale

Madrid MillConversion

Weyco Pulp BusinessAcquisition

Path to Value Creation

2005-2007 2011+2008-2010

28

N.A. Consumer Packaging Transfer to GPK

N.A. Ind. Pkg. Containerboard Mill Optimization

GPK Monetization

India APPM Sale


North America

Brazil

EMEA & Russia

India/Asia

$18.0BNet Sales

$1.2BNet Sales

$3.1BNet Sales

$0.2BNet Sales

Full-year 2019 net sales data; does not reflect total company sales

$2.2B1

International Paper 2019 Global Portfolio in Packaging,

Pulp and Paper

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

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

Total Sales

Ilim JV


Industrial

Packaging

Printing

Papers

Global

Cellulose

Fibers

Revenue by

Business1

North

AmericaBrazil

EMEA

Russia

India

% Total

Adjusted

EBITDA2

30

1st

1st

2nd

1st 1st

*Fluff pulp capacity based on Poyry

1st*

Strong Domestic Positions

North America

Latin America

EMEA

Russia

Ilim

Pulp

69%12%

19%

84%

6%

5%

1%

4%


% of export volume

shipped to select regions

IP N.A. Exports | Leveraging Strategic Export Opportunities

Latin America

EMEA

Asia~45%

~20%

~10%

~45%

~40%

~40%

Fluff Pulp1

(~90% of N.A. production)

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


~50%

% of export volume

shipped to select regions~30%

Brazil & Russia Exports | Leveraging Strategic Export Opportunities

Latin America

EMEA Asia~70%

~45% ~5%

Softwood Pulp(~50% of production)

Uncoated Freesheet(~50% of Brazil production)

Ilim

Pulp


0.4 0.5

0.8

1.3 1.31.6

2.0

2.52.7 2.7

2.42.6

3.02.8

13%15% 15%

19%18%

20%19%

22%24% 24%

22% 22%23%

22%

0%

5%

10%

15%

20%

25%

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

Tho

usa

nd

s

33

Bu

sine

ssA

dj. E

BITD

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


Appendix | Table of Contents

Industrial Packaging……………….………………………………….…..36-44

Global Cellulose Fibers……………………………………………….......45-50

Printing Papers..……….……………………………………………………51-59

IP Russia & Ilim Group.………….….……………………………….…….60-63

Other Financial Information…..………………………………….….......64-80

Footnotes…………………….…..………………………………….….......81-84

Contact Information……………….………………………………….…..85

35


December 4, 2019

IP

31%

WRK

21%GP

9%

PCA

10%

Pratt

5%

Others

24%

36

Source: 2020 estimated effective containerboard capacity based on RISI Capacity Reports, SEC Filings, and IP data and analysis

2020 Producer Position

Stone

13%

Smurfit

7%

GP

9%

WY

7%

IP

7%TIN

7%

Others

50%


N.A. Containerboard | Supply Positions



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~13.7 Million Tons

Containerboard~13.2 MillionTons

Other Uses1

~0.5 MillionTons

Source: 2019 estimates based on IP data and analysis

IP N.A. Industrial Packaging | Balanced Global Strategy

IP’s channels to market provide choices for maximizing value


Estimated 2020

Global Demand

= 188MM tons

Net Export, Tons

Net Import, Tons

Countries with Net Import or Export greater than 100M tons…

Source: 2020 RISI trade estimates and IP analysis

Europe

6.1MM

Europe

4.1MM

N America

5.7MM

Africa

1.3MM

S America

0.3MM

S America

1.2MM

C America

3.0MM

Africa

0.5MM

Mid East

0.7MM

Asia

2.5MM

Oceania

0.8MM

Global Containerboard Industry | Total Containerboard Trade Flows


Source: 2020 estimates based on IP data and analysis; chart includes Saturating Kraft & Gypsum liner

IP N.A. Containerboard Mill System | ~14.0MM Tons Capacity1

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

Ma

nsf

ield

Va

llia

nt

Pra

ttville

Sa

va

nn

ah

Ce

da

r R

ive

r

Re

dR

ive

r

Pin

eH

ill

Ro

me

Bo

ga

lusa

Ora

ng

e

Sp

rin

gfie

ld

Vic

ksb

urg

Pe

nsa

co

la

Ma

ysv

ille

Riv

erd

ale

PM

15

Ne

wp

ort

He

nd

ers

on

Xa

lap

a

Tho

usa

nd

To

ns


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

turin

g C

ost

s ($

/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


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


Source: RISIAs of Jan 2015, RISI only reportsOMP = Open Market Price

U.S. Containerboard | Industry Statistics

200

300

400

500

600

700

800

200

300

400

500

600

700

800

Ja

n-0

6

Ap

r-0

6

Ju

l-06

Oc

t-0

6

Ja

n-0

7

Ap

r-0

7

Ju

l-07

Oc

t-0

7

Ja

n-0

8

Ap

r-0

8

Ju

l-08

Oc

t-0

8

Ja

n-0

9

Ap

r-0

9

Ju

l-09

Oc

t-0

9

Ja

n-1

0

Ap

r-1

0

Ju

l-10

Oc

t-1

0

Ja

n-1

1

Ap

r-1

1

Ju

l-11

Oc

t-1

1

Ja

n-1

2

Ap

r-1

2

Ju

l-12

Oc

t-1

2

Ja

n-1

3

Ap

r-1

3

Ju

l-13

Oc

t-1

3

Ja

n-1

4

Ap

r-1

4

Ju

l-14

Oc

t-1

4

Ja

n-1

5

Ap

r-1

5

Ju

l-15

Oc

t-1

5

Ja

n-1

6

Ap

r-1

6

Ju

l-16

Oc

t-1

6

Ja

n-1

7

Ap

r-1

7

Ju

l-17

Oc

t-1

7

Ja

n-1

8

Ap

r-1

8

Ju

l-18

Oc

t-1

8

Ja

n-1

9

Ap

r-1

9

Ju

l-19

Oc

t-1

9

Ja

n-2

0

Ap

r-2

0

$/short ton

Containerboard Pricing

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

$200

$300

$400

$500

$600

$700

$800

$/short ton


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

Economic Indicators and U.S. Box Demand

43Investor Roadshow I April 30, 2020

US Box Shipments

US GDP

US Industrial Production

US Nondurable Industrial Production


December 4, 2019

373 378390 396

405 401

380 379 380391 391 395 390

374

345357 359 360 360 364 369

376386 392 394 388

401414 418

427

Sh

ipm

en

ts (

BSF)

44

Historical Data Source: Fibre Box Association2020-2024: 2.4% CAGR (RISI – May 2020, 5-yr forecast)

RISI Forecast

U.S. Corrugated Packaging Shipments


~75%

~25%

Current

Product Mix1

Total Capacity ~3.6MM MTPY Targeted Mix

Fluff Pulp & Specialties 2.7MM 85%

Market Pulp 0.9MM 15%

Global Cellulose Fibers | Business Overview

Franklin, VA

New Bern, NC

Riegelwood, NC

Georgetown, SC

Port Wentworth, GA

Flint River, GA

Eastover SC

Pensacola, FL

Columbus, MS

Grand Prairie,

Alberta

Saillat, France

Kwidzyn,

PolandGdansk,

Poland

Svetogorsk, Russia

Fluff Pulp &

Specialties

Market Pulp

Market Pulp Mill

Fluff Pulp Mill

Converting facilities



0

2,000

4,000

6,000

8,000

10,000

12,000

2010 2014 2018 2022

GD

P/C

ap

ita

(U

SD

)

SEA MEA China Latin America

Source: IHS Global Insights 46

Absorbent Hygiene Products (AHP) Outlook | Demand & Growth

AHP demand linked to GDP growth in emerging markets


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%

Global Market Pulp Demand Outlook | Bleached Softwood

2019 – 2023

CAGR

1.0%

3.1%

2.6%

(2.2)%

0.7%

0.1%


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

Global Cellulose Fibers | Advantaged Position in Attractive Markets

Well positioned to serve growing demand with

global, strategic customers2018 Demand5.9MM MTPY

Source: CAGR, Region and End Use – Price Hanna 2019 Outlook for Absorbent Products; 2018 Demand – IP analysis


2.0 MM

IP Global Pulp Capacity | Total of 3.9MM MTPY1

North America

Latin America

Europe/RussiaIlim JV

0.2 MM

3.4 MM

0.3 MM

Pulp mill


0

200

400

600

800

1,000

1,200

1,400

1,600

Ja

n-0

6

Ap

r-0

6

Ju

l-06

Oc

t-0

6

Ja

n-0

7

Ap

r-0

7

Ju

l-07

Oc

t-0

7

Ja

n-0

8

Ap

r-0

8

Ju

l-08

Oc

t-0

8

Ja

n-0

9

Ap

r-0

9

Ju

l-09

Oc

t-0

9

Ja

n-1

0

Ap

r-1

0

Ju

l-10

Oc

t-1

0

Ja

n-1

1

Ap

r-1

1

Ju

l-11

Oc

t-1

1

Ja

n-1

2

Ap

r-1

2

Ju

l-12

Oc

t-1

2

Ja

n-1

3

Ap

r-1

3

Ju

l-13

Oc

t-1

3

Ja

n-1

4

Ap

r-1

4

Ju

l-14

Oc

t-1

4

Ja

n-1

5

Ap

r-1

5

Ju

l-15

Oc

t-1

5

Ja

n-1

6

Ap

r-1

6

Ju

l-16

Oc

t-1

6

Ja

n-1

7

Ap

r-1

7

Ju

l-17

Oc

t-1

7

Ja

n-1

8

Ap

r-1

8

Ju

l-18

Oc

t-1

8

Ja

n-1

9

Ap

r-1

9

Ju

l-19

Oc

t-1

9

Ja

n-2

0

Ap

r-2

0

USD/admt Global Pulp Prices

NBSK (dne) BEK (dne) Fluff (dne)Source: RISIGlobal pulp prices delivered to Northern Europe; Units shown in metric tons

Pulp | Industry Statistics


Europe

0.8 MM

51

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


Domtar

34%

IP

24%

PCA

10%

Pixelle

7%

Other

24%GP

15%

IP

13%

Champion

10%

Boise

10%Willamette

9%

WY

9%

Union Camp

9%

Other

25%



1998, 2018 Source: Poyry Consulting, RISI, IP analysis2019 Producer Position based off of 3Q 2019 Capacity

52

N.A. Uncoated Freesheet Supply | Capacity Positions


0%

20%

40%

60%

80%

100%

Riverdale PM16 Ticonderoga Eastover Georgetown

% G

rad

e /

Mix

Uncoated Freesheet Non UFS Pulp1

53

Paper (M Tons)

350 280 750 290

Pulp (M Tons)

0 0 95 340

Ca

pa

city

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

Source: IP Analysis


$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

54

Source: FisherSolve ™ 3Q19 data

Georgetown

Ticonderoga

Eastover

Uncoated Freesheet Global Cost Curve | IP N.A. Capacity in 1st Cost Quartile

Riverdale

Investor Roadshow I Q2 2018

314

575

657 657

513539

598 499

310253 261 316

213254

295

10%

16%

19% 19%

18%

20%22%

18%

12% 12%13%

17%

12%13%

15%

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

0%

5%

10%

15%

20%

25%B

usin

ess

Ad

j. EB

ITDA

1($

MM

)

Ad

j. E

BIT

DA

1%

55

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

N.A. Printing Papers | Margin History



Historical Data Source: AF&PA2019 – 2024: (3.1%) CAGR (RISI April 2020: 5-yr Forecast)

11.612.2 12.4

13.313.0 13.2

13.7 13.614.0 13.9

12.6 12.4 12.3 12.612.0 12.3

11.9

10.9

9.7 9.6 9.38.9 8.8

8.0 8.0 7.9 7.6 7.46.7

6.1 6.3 6.1 5.9 5.7

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

Mil

lio

n T

on

s

RISI Forecast

U.S. Uncoated Freesheet Demand


$500

$600

$700

$800

$900

$1,000

$1,100

$1,200

$500

$600

$700

$800

$900

$1,000

$1,100

$1,200

Ja

n-0

6

Ap

r-0

6

Ju

l-06

Oc

t-0

6

Ja

n-0

7

Ap

r-0

7

Ju

l-07

Oc

t-0

7

Ja

n-0

8

Ap

r-0

8

Ju

l-08

Oc

t-0

8

Ja

n-0

9

Ap

r-0

9

Ju

l-09

Oc

t-0

9

Ja

n-1

0

Ap

r-1

0

Ju

l-10

Oc

t-1

0

Ja

n-1

1

Ap

r-1

1

Ju

l-11

Oc

t-1

1

Ja

n-1

2

Ap

r-1

2

Ju

l-12

Oc

t-1

2

Ja

n-1

3

Ap

r-1

3

Ju

l-13

Oc

t-1

3

Ja

n-1

4

Ap

r-1

4

Ju

l-14

Oc

t-1

4

Ja

n-1

5

Ap

r-1

5

Ju

l-15

Oc

t-1

5

Ja

n-1

6

Ap

r-1

6

Ju

l-16

Oc

t-1

6

Ja

n-1

7

Ap

r-1

7

Ju

l-17

Oc

t-1

7

Ja

n-1

8

Ap

r-1

8

Ju

l-18

Oc

t-1

8

Ja

n-1

9

Ap

r-1

9

Ju

l-19

Oc

t-1

9

Ja

n-2

0

Ap

r-2

0

$/short ton

Uncoated Freesheet Pricing Trends

RISI 20# Cutsize RISI 50# Offset

Source: RISI

U.S. Uncoated Freesheet | Industry Statistics


Latin America Uncoated Freesheet Market

38%

30%

7%

4%

4%

3%

14%

Latin America is a Net Exporter

DemandCapacity @

88% Op. RateNet Exports

2.5 MM 2.7 MM 0.2 MM

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

Smurfit

Kappa

Ledesma

Celulosa

Argentina

Propal

IP

Others

Suzano

3.0MM

tons


280 317

228 296

320 293 334 326

275 264297

329

251

33% 33%

24%

27%27%

26%

31% 31% 31%29%

31%34%

26%

0%

5%

10%

15%

20%

25%

30%

35%

40%

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

-

50

100

150

200

250

300

350

400

Ad

j. E

BIT

DA

1%

Bu

sine

ss

Ad

j. EB

ITDA

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

IP Brazil Papers| Historical Financials


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

60

IP Russia & ILIM JV | Production Overview


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

fac

turin

g C

ost

s

($/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


$ Million 1Q19 4Q19 1Q20

Sales Volume (thousand metric tonnes)

819 802 796

Sales $620 $495 $482

EBITDA1 $306 $138 $(15)

F/X (Impact of USD Net Debt)2 $52 $21 $(128)

Adj. Operating EBITDA3 $254 $117 $113

IP Equity Earnings (Loss)4 $101 $21 $(35)

ILIM Joint Venture | 1Q20 vs. 4Q19

1Q20 performance:

Volume stable

Impact of price flow-through offset by

improved operations and lower input costs

F/X loss (non-cash) of $(0.13) EPS on USD-

denominated net debt in 1Q20

$141 million cash dividend received April 2020


2006 2007 20102008 2009 2011 2012 2013 2014 2015 2016 2017

Adj. Operating EPS1

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

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

.83

.93

2019

1.09Impact of Mineral Rights Gain

.42 .08 Final Land Sale

2020


$ Million 2017 2018 1Q19 4Q19 2019 1Q20

Cash Provided by Operations

$1,757 $3,226 $733 $928 $3,610 $649

Cash Invested in Capital Projects, Net of Insurance Recoveries

$(1,391) $(1,572) $(293) $(363) $(1,276) $(286)

Cash Contribution to Pension Plan

$1,250

Cash Payment for KleenSettlement

$354

Free Cash Flow $1,970 $1,654 $440 $565 $2,334 $363

65

Free Cash Flow


Reduced balance sheet debt by $0.9B

Limited near-term maturities


$0.5B cash balance at year-end

2019 Highlights


Pension Gap

Balance

Sheet

Debt

Balance

Sheet

Debt

Pension Gap


$9.3$11.3 $11.2 $10.7

$9.8

$3.6

$3.4$2.0

$1.8$1.6

2015 2016 2017 2018 2019

$ B

illio

n

2.8x

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

3.3x

Balance

Sheet

Debt

2.9x

Target 2.5 – 2.8x1

4.0x

Balance

Sheet

Debt

Balance

Sheet

Debt

Pension Gap


Balance

Sheet

Debt

Pension Gap

$0.4 Op. Lease Adj.$0.5 Op. Lease Adj.

Balance

Sheet

Debt

Pension Gap

$0.5 Op. Lease Adj.

3.2x


Debt Maturity Profile | Maturities as of December 31, 2019

$0

$200

$400

$600

$800

$1,000

$1,200

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

Millio

n

Debt Maturities Commercial Paper


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

68

Key Variables 2017 2018 2019

Assumed Rate of Return

7.50% 7.50% 7.25%

Discount Rate 3.60% 4.30% 3.40%

Average Annualized Returns3

2019 23.9%

Past Five Years 9.2%

Past Ten Years 9.9%

Portfolio Asset Allocation at 12-31-19

Target Actual

Equity 32% - 43% 37%

Bonds 44% - 56% 50%

Real Estate 5% - 11% 8%

Other 3% - 8% 5%

Pension Plan Update1 | As of December 31, 2019


2016Voluntary term-vested buy out program reduced plan

size by ~10% and introduced new LDI1 policy

Contributions2014

$353MM2015

$750MM

2016

$750MM

2017

$1.25B

2017+

Proactively Managing Pension Plan

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

2019Defined Benefit Pension Plan

frozen as of 12/31/18

2004Defined Benefit Pension Plan

closed to new entrants


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 2020E

Maintenance Regulatory Strategic Cost Reduction % of Depreciation

$ M

illio

n

% of Depreciation

Reflects continuing operations

~$600

70

Capital Spending



2020 Capital Investment | Funding Mission-Critical Needs

71

$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

$350MM $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

$10MM $240MM

Source: IP Analysis, FisherSolve™ 3Q19 data


$ Million 1Q20A 2Q20F 3Q20F 4Q20F 2020F

Industrial Packaging $75 $48 $87 $31 $241

North America $74 $45 $75 $31 $225

Europe $1 - $3 - $4

Europe Coated Paperboard - $3 $7 - $10

Brazil - - $2 - $2

Global Cellulose Fibers $30 $5 $38 $55 $128 North America $30 $2 $36 $54 $122Europe - $3 $2 $1 $6

Printing Papers $36 $24 $37 $15 $112

North America $36 $15 $15 $13 $79

Europe - $8 $17 $2 $27

Brazil - $1 $5 - $6

Total Impact $141 $77 $162 $101 $481

72

Maintenance Outages Expenses | 2020 Forecast


Tho

usa

nd

To

ns

Cellulose FibersContainerboard

Maintenance

Economic

North American Downtime

11

181 154 161

22

110202

91

786

410

328

190

104

83

Tho

usa

nd

To

ns

79

4332 26

36

68

18 14

41

74 9

66

15

Tho

usa

nd

To

ns

25

104 9 10

33

167

43

227

30

Uncoated Papers

25


Total Cash Components | 2019

74

Fiber

37%

Materials

19%Labor

15%

Overhead

14%

Chemicals

7%

Energy

8%

North American mills only


U.S. Mill Wood Delivered Cost Trend | 1Q20 Average Cost Up 1% vs. 4Q19

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


U.S. OCC Delivered Cost Trend | 1Q20 Average Cost Up 7% vs. 4Q19

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


U.S. Natural Gas Cost Trend | 1Q20 Average Cost Down 15% vs. 4Q19

IP data, cost Indexed to January 2007 valuesNYMEX Natural Gas closing prices

0

50

100

150

200

250

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


U.S. Fuel Oil Cost Trend | 1Q20 Average Cost Up 5% vs. 4Q19

IP data, cost Indexed to January 2007 valuesWTI Crude prices

0

50

100

150

200

250

300

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


U.S. Chemical Composite Cost Trend | 1Q20 Average Down 4% vs. 4Q19

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

75

100

125

150

175

200

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


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

2019 Global Consumption | Annual Purchases for Key Inputs


FootnotesSlide 121 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 131 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


Slide 14

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 2018 onward, see slide #65 for a reconciliation of cash provided by operations to Free Cash Flow, a non-GAAP financial measure

Slide 15

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 161 Before special items and non-operating pension expense (income) (non-GAAP)2 See slide #65 for a reconciliation of cash provided by operations to Free Cash Flow, a non-GAAP financial measure

Slide 171 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))2 Before special items and non-operating pension expense (income) (non-GAAP)3 Represents IP’s share of F/X impact to adjusted operating EPS, a non-GAAP financial measure (defined as Net Earnings Attributable to International Paper (GAAP) before special items and non-operating

pension expense(income))4 See slide #65 for a reconciliation of cash provided by operations to Free Cash Flow, a non-GAAP financial measure

81


FootnotesSlide 181 Before special items



Slide 231 Debt maturity profile on April 30, 2020

Slide 241 As of April 30, 2020

Slide 291 Ilim JV total sales are not consolidated (IP owns 50% of JV)

Slide 301 Based on 2019 sales, excludes corporate and intercompany eliminations 2 Based on 2019 Adj. EBITDA; before special items and non-operating pension expense (income) (non-GAAP); does not reflect equity earnings from Ilim JV

Slide 311 Includes modified absorbent products

Slide 331 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 371 Includes Saturating Kraft /Gypsum Liner

Slide 391 Includes Riverdale’s run-rate capacity post-conversion

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FootnotesSlide 451 North American production. Combined businesses, with Riegelwood PM18 running SW market pulp

Slide 491 Does not include llim JV

Slide 511 Does not include llim JV

Slide 531 Non UFS includes Specialty and Uncoated Bristols; 2020 Short Ton capacity

Slide 551 Before special items and non-operating pension expense (income) (non-GAAP)

Slide 591 Before special items and non-operating pension expense (income) (non-GAAP)

Slide 601 Volumes shown in thousand metric tons

Slide 62

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 63

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 ~$0.7B as of March 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 1Q19, 4Q19 and 1Q20 include after-tax F/X gains (losses) (primarily on USD-denominated net debt) of $21MM, $8MM, and $(51MM) respectively

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FootnotesSlide 64

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 68

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 Segment adjusted operating profit before special items (non-GAAP)

Includes European Coated Paperboard adjusted operating profit of $17MM and $17MM for 3Q19 and 4Q19, respectively1 2013 and onward include Temple-Inland pension plan2 Non-cash expense for U.S. plans only3 Through December 2019

Slide 691 Liability Driven Investment

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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]

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