Investor Roadshow February 4, 2021
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Investor Roadshow February 4, 2021
Forward-Looking Statements
Certain statements in this presentation that are not historical in nature may be considered “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. These
statements are often identified by the words “will,” “may,” “should,” “continue,” “anticipate,” “believe,” “expect,” “plan,” “appear,” “project,” “estimate,” “intend” and words of a similar nature. These statements are
not guarantees of future performance and reflect management’s current views with respect to future events, which are subject to risks and uncertainties that could cause actual results to differ materially from
those expressed or implied in these statements. Factors which could cause actual results to differ include but are not limited to: (i) developments related to the COVID-19 pandemic, including the severity,
magnitude and duration of the pandemic, the development, availability and effectiveness of treatments and vaccines, negative global economic conditions arising from the pandemic, impacts of governments’
responses to the pandemic on our operations, impacts of the pandemic on commercial activity, our customers and business partners and consumer preferences and demand, supply chain disruptions, and
disruptions in the credit or financial markets; (ii) the level of indebtedness and changes in interest rates; (iii) industry conditions, including but not limited to changes in the cost or availability of raw materials,
energy and transportation costs, competition International Paper faces, cyclicality and changes in consumer preferences, demand and pricing for International Paper products (including changes resulting from
the COVID-19 pandemic); (iv) domestic and global economic conditions and political changes, changes in currency exchange rates, trade protectionist policies, downgrades in International Paper’s credit ratings,
and/or the credit ratings of banks issuing certain letters of credit, issued by recognized credit rating organizations; (v) the amount of International Paper’s future pension funding obligations, and pension and
health care costs; (vi) unanticipated expenditures or other adverse developments related to the cost of compliance with existing and new environmental, tax, labor and employment, privacy and other U.S. and
non-U.S. governmental laws and regulations (including new legal requirements arising from the COVID-19 pandemic); (vii) any material disruption at any of International Paper’s manufacturing facilities due to
severe weather, natural disasters or other causes (including as the result of the COVID-19 pandemic); (viii) risks inherent in conducting business through joint ventures; (ix) International Paper’s ability to achieve
the benefits expected from, and other risks associated with, acquisitions, joint ventures, divestitures and other corporate transactions, (x) information technology risks, (xi) loss contingencies and pending,
threatened or future litigation, including with respect to environmental related matters, (xii) the receipt of regulatory approvals relating to the spinoff transaction without unexpected delays or conditions; (xiii)
International Paper’s ability to successfully separate the SpinCo business and realize the anticipated benefits of the spinoff transaction; (xiv) the ability to satisfy any necessary conditions to consummate the
spinoff transaction within the estimated timeframes or at all; and (xv) the final terms and conditions of any spinoff transaction, including the amount of any dividend by SpinCo to International Paper and the terms
of any ongoing commercial agreements and arrangements between International Paper and SpinCo following any such transaction, the costs of any such transaction, the nature and amount of indebtedness
incurred by SpinCo, the qualification of the spin-off transaction as a tax-free transaction for U.S. federal income tax purposes (including whether an IRS ruling will be obtained), diversion of management’s
attention and the impact on relationships with customers, suppliers, employees and other business counterparties, and the impact of any such transaction on the businesses of International Paper and SpinCo
and the relationship between the two companies following any such transaction. These and other factors that could cause or contribute to actual results differing materially from such forward-looking statements
can be found in International Paper’s press releases and U.S. Securities and Exchange Commission filings. In addition, other risks and uncertainties not presently known to International Paper or that it currently
believes to be immaterial could affect the accuracy of any forward-looking statements. International Paper undertakes no obligation to publicly update any forward-looking statements, whether as a result of new
information, future events or otherwise.
Statements Relating to Non-U.S. GAAP Measures
While the Company reports its financial results in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"), during the course of this presentation, certain non-U.S. GAAP
financial measures are presented. Management believes certain non-U.S. GAAP financial measures, when used in conjunction with information presented in accordance with U.S. GAAP, can facilitate a better
understanding of the impact of various factors and trends on the Company’s financial condition and results of operations. Management also uses these non-U.S. GAAP financial measures in making financial,
operating and planning decisions and in evaluating the Company’s performance. The non-GAAP financial measures in this presentation have limitations as analytical tools and should not be considered in
isolation or as a substitute for an analysis of our results calculated in accordance with GAAP. In addition, because not all companies use identical calculations, our presentation of non-GAAP financial measures
in this presentation may not be comparable to similarly titled measures disclosed by other companies, including companies in our industry. A reconciliation of all presented non-U.S. GAAP measures (and their
components) to U.S. GAAP financial measures is available on IP’s website at http://www.internationalpaper.com/performance/presentations-events/webcasts-presentations.
Ilim JV and Graphic Packaging Investment Information
All financial information and statistical measures regarding our 50/50 Ilim joint venture in Russia (“Ilim”) and our 7.4% ownership interest in a subsidiary of Graphic Packaging Holding Company, other than
historical International Paper Equity Earnings and dividends received by International Paper, have been prepared by the management of Ilim and Graphic Packaging Holding Company, respectively. Any
projected financial information and statistical measures reflect the current views of Ilim and Graphic Packaging Holding Company management and are subject to risks and uncertainties that could cause actual
results to differ materially from those expressed or implied by such projections. See “Forward-Looking Statements” above.
Investor Roadshow I February 4, 2021 2
Investment Thesis
Investment Thesis | About Us
Who We are one of the world’s leading producers of fiber-based
We Are packaging, pulp and paper
We transform renewable resources into recyclable products
What
people depend on every day
We Do
How We do the right things, in the right ways, for the right reasons,
We Do It all of the time
Investor Roadshow I February 4, 2021 4
IP Investment Thesis | The IP Way Forward
“The IP Way Forward is how
we go beyond just doing the
right things; it’s how we create
long-term value for all IP
stakeholders.”
Mark S. Sutton,
Chairman and Chief Executive Officer
5
Global Citizenship Investor Roadshow I February 4, 2021 6
Vision 2020 Goals
FIBER CERTIFICATION FIBER EFFICIENCY GHG EMISSIONS
reduction from
47% increase in certified
fiber volume 0.63% reporting mills 22% reduction in greenhouse
gas emissions
RECYCLING ENERGY EFFICIENCY AIR EMISSIONS
reduction in air emissions
63% increase in
recovery of OCC 5% improvement in purchased
energy efficiency 49% (PM, SO2, NOx)
SAFETY SUPPLY CHAIN WATER QUALITY
65% reduction in serious
safety incidents
Evolved Supplier Code of Conduct
to Third Party Code of Conduct to
28% decrease in oxygen-
depleting substances
include all third parties across
supply chain and expanded risk
monitoring processes
COMMUNITY ENGAGEMENT WATER STEWARDSHIP SOLID WASTE
More than Updated water risk framework and reduction in manufacturing
donated to charitable continued annual facility 19% waste to landfills
$134M organizations since 2010, assessments. Seventy percent of
Including more than mills engaging local stakeholders on
$24 million in 2019 water
Investor Roadshow I February 4, 2021 7
Vision 2030 | Four Goals. Eight Targets.
BUILDING A BETTER FUTURE FOR PEOPLE, THE PLANET AND OUR COMPANY
Investor Roadshow I February 4, 2021 8
International Paper Awards & Recognitions
International Paper Awards & Recognitions
Member of the
Ethisphere Institute FTSE4Good Index Series
Fortune Magazine 1 World’s Most Ethical for demonstrating strong
World’s Most Admired Companies® 2020 for Environmental, Social
Companies® 2020 for 17 15 consecutive years and Governance
years (ESG) practices
Women’s Choice Award® Reprinted with permission of
IDG’s Computerworld 2021 Woman’s Choice Award The Wall Street Journal
“100 Best Places to Best Companies to Work For
Work in IT” 2020 Diversity & Millennials
International Paper
International Paper Brazil Russia Corporate
Graphic Paper Social Responsibility
Manufacture 2015 Award 2015
1
Investor Roadshow I February 4, 2021 From FORTUNE Magazine, March 1, 2020. © 2020 Time Inc. Used under license.
9
IP Investment Thesis | Strategic Framework
Strategy
Fiber-based Packaging, Pulp and Paper
Advantaged Positions Attractive Markets Shareholder Value
Low cost, competitive assets Good market growth rates Delivers strong and
sustainable free cash flows
Operational excellence Customers and markets that
value our products and Increases intrinsic value with
Availability and access to low cost, innovations return spreads above our
sustainable fiber cost of capital (ROIC >
Strong growing supply positions WACC)
Capability to provide differentiated and
innovative value propositions Access to the best global Supports policies to return
customers and segments cash to shareholders
Opportunity for optimization and
productivity gains Maintain strong balance
sheet
Renewable Natural Resources
Investor Roadshow I February 4, 2021 10Capital Allocation Framework | Maximize Value Creation
Debt / EBITDA1
(Target 2.5 – 2.8x)
4.0x
3.3x
2.8x
Billion
$3.4 $2.0 2.9x
Investment Excellence $1.8
Invest to $1.6 2.9x
$1.1
Strategic Fit | Compelling Value | Disciplined $11.3 $11.2 $10.7 $9.8
$8.1
Cost reduction capex
Strategic capex
Return Cash to Shareholders 2016 2017 2018 2019 2020
Selective M&A Op. Leases Balance Sheet Debt Pension Gap
Sustainable dividend at 40 – 50% of FCF
Share repurchases
Cash to Shareowners
Million
$701
$486
Maintain Strong Balance Sheet $14
$100
1
Target debt to EBITDA 2.5x to 2.8x
$733 $769 $789 $796 $806
Pension plan sufficiently funded
2016 2017 2018 2019 2020
Dividend Share Repurchases
Investor Roadshow I February 4, 2021 11Free Cash Flow1 | Strong Execution of Cash Levers
5-Year
Average
$2.0
$2.3 $2.3
$2.2
$2.1
$2.0
$1.8 $1.8 $1.9
$1.7 $1.7
$1.7 $1.7
$1.6
Billion
$1.0
$0.7
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Investor Roadshow I February 4, 2021 12Expanded Spread of Adj. ROIC1 Above Cost of Capital
5-Year
Average
10.0%
13.2%
11.4%
10.8%
9.7% 10.0% 9.9%
9.5% 9.2%
8.1% 8.3%
7.5% 7.7%
2020 WACC 6.5%
6.3% 5.0%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Investor Roadshow I February 4, 2021 13Full-Year 2020 Results
Solid performance and outstanding cash generation in a
Free Cash Flow2 ($B)
dynamic environment
1
$3.1B Adjusted EBITDA
2
$2.3B Free Cash Flow generation
$2.3
11th consecutive year above cost of capital 2020
Strong execution to support customer needs
Strong and resilient operational performance $2.3
2019
Outstanding cost management
Executed our capital allocation framework to enhance our
financial strength $1.7
2018
Initiated meaningful actions to Build a Better IP
to grow earnings and cash generation
Investor Roadshow I February 4, 2021 14Full-Year 2020 Financials
$ Billion Adjusted Operating EPS2
2018 2019 2020
(except as noted)
Sales $23.3 $22.4 $20.6
1
$2.80
Adjusted EBIT $3.0 $2.6 $1.8 2020
2
Adjusted Operating EPS $5.32 $4.43 $2.80
1
Adjusted EBITDA $4.3 $3.9 $3.1 $4.43
2019
1
Adjusted EBITDA Margin 18.7% 17.2% 15.1%
Equity Earnings ($MM) $336 $250 $77
3 $5.32
Free Cash Flow $1.7 $2.3 $2.3 2018
Investor Roadshow I February 4, 2021 15CEO Perspective | Building a Better IP
Accelerate value creation for our shareowners
Take care of our employees
Deliver superior solutions that create value
for our customers
Support the needs in our communities
Investor Roadshow I February 4, 2021 16Select Financial Metrics1
$ Million 2019 2020 2021F
Maintenance Outage Expense $518 $454 $609
Maintenance & Regulatory $750 $430
Capex
Cost Reduction $150 $30 ≤ $800
Strategic $400 $290
Depreciation & Amortization $1,301 $1,286 $1,310
Net Interest Expense $493 $446 $390
Corporate Expense $54 $(7) $60
Effective Tax Rate 26% 25% 26%
Investor Roadshow I February 4, 2021 17Navigating COVID-19 | Principled Leadership in Essential Business
Keep People Safe | Take Care of Customers | Maintain Financial Strength
Containment Recovery
Managing each phase of pandemic with a view toward the short-term and long-term success
and sustainability of the company for all stakeholders
Committed to the health and safety of our employees and contractors
Recognition and appreciation
Ensuring business continuity with customers and suppliers bonus to employees totaling
Maintaining financial strength to manage economic uncertainty ~$25 million in 4Q20
Supporting critical needs in our communities
Investor Roadshow I February 4, 2021 18Building a Better IP
Strategic Rationale | Creating Value Through Focus
CREATE TWO FOCUSED, POSITION IP TO BUILD FOUNDATION
LEADING COMPANIES ACCELERATE VALUE FOR LONG-TERM
CREATION SUCCESS
–
IP: Highly advantaged
– –
Building on strength of our Agile organizational and
packaging focused company industrial packaging business operating model
SpinCo: Well-positioned global Taking meaningful actions Commitment to capital
paper company allocation framework and
to grow earnings and cash
generation investment excellence
Investor Roadshow I February 4, 2021 20Creating Two Focused, Leading Companies
IP SpinCo
–
Highly advantaged corrugated
–
Well-positioned global paper
packaging-focused company company
• Strong strategic profile • Talented team
• Significant earnings growth catalysts • Scale and capabilities
• Commitment to capital allocation • Capital structure with potential to
framework unlock strategic value
$17B Sales1 $3B Sales1
~20,000 Customers Leading Brands across key markets
28 Mills | 220 Converting Facilities 7 Mills
Investor Roadshow I February 4, 2021 21IP | Taking Meaningful Action to Grow Earnings and Cash Generation
N.A. Industrial EMEA Industrial Global Cellulose Ilim
Packaging Packaging Fibers Partnership
Value Drivers
$50 - $100MM $300MM Executing
Incremental Annual Structural Cost Reduction Value-Creating Plan
Profitable Growth
Commercial execution
+ Lean effectiveness (~30%) Highly advantaged
Process optimization (~40%) Portfolio aligned with IP
Investment excellence Asset optimization (~30%)
$350 - $400MM
Incremental earnings growth by end of 2023
Investor Roadshow I February 4, 2021 22SpinCo | Global Paper Company Positioned for Success
Strong leadership and talented team 7 Mills with Paper Capacity of 2.5MM Metric Tons
Substantial scale with global capabilities
Russia 0.4MM
Svetogorsk, Russia
United States 0.8MM
Competitive cost positions across Ticonderoga, New York
geographies Eastover, South Carolina Europe 0.2MM
Saillat, France
Leading brands across key markets
Brazil 1.0MM
Luiz Antônio, São Paulo
Mogi, Guacu, São Paulo Coated Board Capacity (MT)
Significant potential to unlock Russia 0.1MM
Três Lagoas, Mato Grosso do Sul
strategic options
Investor Roadshow I February 4, 2021 23Business Overview
Path to Value Creation
Global Economic
Transformation Sustainable Returns Above Cost of Capital
Recession
2005-2007 2008-2010 2011+
$11B Divestitures
Investments:
China Sun JV Asia Pkg. Madrid Mill
Acquisition Conversion
Brazil VCP Land/Mill Swap
Russia Ilim JV (2007) Franklin Fluff Pulp N.A. Consumer
Conversion Packaging Brazil
N.A. Weyco Pkg. Packaging
Acquisition Turkey Pkg. Sun JV Transfer to GPK
Acquisition & Asia Pkg. Sale
Brazil Pkg. Sale Weyco Pulp GPK
Acquisition Business Monetization
Riegelwood Acquisition
N.A. TIN Fluff Pulp
Acquisition India APPM Sale
Conversion
India APPM Valliant PM3
Acquisition Containerboard
N.A. Ind. Pkg.
Startup
Containerboard Mill
xpedx Spin-Off Optimization
Investor Roadshow I February 4, 2021 25International Paper | 2020 Global Portfolio in Packaging, Pulp and Paper
Positioned in attractive markets with low-cost assets that generate strong free
cash flow and returns that exceed our cost-of-capital
$2.8B $2.0B1
Net Sales
Total Sales
$17.0B EMEA &
Net Sales Ilim JV
Russia
North America
$0.1B
Net Sales
Brazil
Investor Roadshow I February 4, 2021 Full-year 2020 net sales data; does not reflect total company sales
26Strong Domestic Positions
Global
Cellulose
Russia 1st 1st Fibers
12% Industrial
Ilim 73% Packaging
Pulp
1st 1st* 2nd Printing 15% Revenue by
Papers Business1
North America
EMEA
Russia
1st 4% % Total
EMEA 7% Adjusted
84%
EBITDA2 North
5% America
Brazil
Latin America
Investor Roadshow I February 4, 2021 *Fluff pulp capacity based on Poyry 27IP N.A. Exports | Leveraging Strategic Export Opportunities
Fluff Pulp1
~45%
(~90% of N.A. production) Asia
~45%
EMEA ~20%
Containerboard
(~10% of N.A. production) ~40%
Latin America ~10%
~40%
% of export volume
shipped to select regions
Investor Roadshow I February 4, 2021 28Brazil & Russia Exports | Leveraging Strategic Export Opportunities
Ilim Softwood Pulp
Pulp (~50% of production)
% of export volume
shipped to select regions
~30% ~70%
EMEA Asia
~30% ~15%
~55% Latin America
Uncoated Freesheet
(~50% of Brazil production)
Investor Roadshow I February 4, 2021 29N.A. Industrial Packaging | Track Record of Success
Weyco Packaging TIN Acquisition &
Acquisition & Integration Integration
25% Global Economic 24% 24% 23%
Thousands
Recession 22% 22% 22% 22%
20% 20%
20% 19% 19%
18%
Adj. EBITDA1 ($B)
3.0
15% 15% 2.8
2.7 2.7
15%
Business
13% 2.5 2.6 2.5
2.4
Adj. EBITDA1 %
2.0
10%
1.6
1.3 1.3
5%
0.8
0.4 0.5
0%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Investor Roadshow I February 4, 2021 30Appendix
Appendix | Table of Contents
Industrial Packaging……………….………………………………….…..33-41
Global Cellulose Fibers……………………………………………….......42-47
Printing Papers..……….……………………………………………………48-56
IP Russia & Ilim Group.………….….……………………………….…….57-60
Other Financial Information…..………………………………….….......61-78
Footnotes…………………….…..………………………………….….......79-82
Contact Information……………….………………………………….…..83
Investor Roadshow I February 4, 2021 32N.A. Containerboard | Supply Positions
Stone
13% Others
24% IP
Smurfit 31%
7%
1995 Producer GP 2021 Producer
Others 9% Pratt
Position Position
50% 5%
WY
7% PCA
10%
IP WRK
7% GP
TIN 9% 21%
7%
Source: 2021 estimated effective containerboard capacity based on RISI Capacity Reports, SEC Filings, and IP data and analysis
Investor Roadshow I February 4, 2021 33IP N.A. Industrial Packaging | Balanced Global Strategy
IP’s channels to market provide choices for maximizing value
N.A. Mill System Capacity Other Uses1
~13.9 Million Tons ~0.4 Million Tons
Containerboard
~13.5 Million Tons
IP Box Plants Open Market
~85% ~15%
U.S. Non-U.S. Domestic Export
~90% ~10% ~40% ~60%
EMEA Lat Am Asia
~40% ~40% ~20%
Investor Roadshow I February 4, 2021 Source: 2020 estimates based on IP data and analysis
34Global Containerboard Industry | Total Containerboard Trade Flows
Europe
6.5MM
Europe
4.3MM
Estimated 2021 N America
Global Demand 5.1MM
Asia
= 191MM tons Africa 3.0MM
C America 1.5MM Mid East
2.6MM
0.7MM
Oceania
S America
Countries with Net Import or Export
1.0MM S America 0.7MM
greater than 100M tons… Africa
0.5MM
Net Export, Tons 0.3MM
Net Import, Tons
Investor Roadshow I February 4, 2021 Source: 2021 RISI trade estimates and IP analysis
35IP N.A. Containerboard Mill System | ~13.9MM Tons Capacity1
1,800
1,600
1,400
1,200
Thousand Tons
1,000
800
600
400
200
0
Xalapa
Valliant
Rome
Orange
Newport
Red River
Henderson
Springfield
Riverdale PM15
Bogalusa
Maysville
Cedar River
PineHill
Pensacola
Prattville
Mansfield
Savannah
Vicksburg
Source: 2020 estimates based on IP data and
analysis; chart includes Saturating Kraft & Gypsum
Investor Roadshow I February 4, 2021 liner 36Linerboard Global Cost Curve | 93% of Capacity in 1st Quartile
$1,200
Cash Costs + Delivery to Chicago
$1,000
Manufacturing Costs ($/Ton)
$800
Vicksburg
Springfield
$600 Orange
Prattville
Bogalusa Savannah
Pine Hill
Red River
$400
Henderson
Pensacola
Rome
$200 Newport
Mansfield
Valliant
Maysville Xalapa
Cedar Rapids
$0
0 20,000 40,000 60,000 80,000 100,000
Cumulative Annual Production (Thousand Tons)
Investor Roadshow I February 4, 2021 Source: FisherSolve ™ 3Q19 data
37Well-Positioned in Attractive Customer Segments
Customer Segment Industry IP
Food & Beverage ~45%
Processed Food
Fresh Produce
Protein (Meat & Poultry)
Beverage
Other Non-Durables ~30%
Chemicals & Pharmaceuticals
Paper, Towels & Tissue
Other Non-Durables
Durable Goods & Distribution ~25%
E-commerce, Shipping & Distribution
Durable Goods
Fastest Growth
Investor Roadshow I February 4, 2021 38200
300
400
500
600
700
800
Jan-06 $/short ton
Apr-06
Jul-06
Oct-06
Jan-07
Apr-07
Jul-07
Oct-07
Jan-08
Apr-08
Investor Roadshow I February 4, 2021
Jul-08
Oct-08
Jan-09
Apr-09
Jul-09
Oct-09
Jan-10
Apr-10
Jul-10
Oct-10
Jan-11
Apr-11
Jul-11
Oct-11
Jan-12
Apr-12
Jul-12
Oct-12
Jan-13
Apr-13
Jul-13
Source: RISI
Oct-13
Jan-14
Apr-14
Jul-14
$200
$300
$400
$600
$700
$800
$500
Oct-14
Jan-15
OMP = Open Market Price
Apr-15
Jul-15
Oct-15
As of Jan 2015, RISI only reports
Jan-16
Apr-16
Jul-16
Oct-16
Containerboard Pricing
Jan-17
U.S. Containerboard | Industry Statistics
Apr-17
Jul-17
Oct-17
Jan-18
Apr-18
Jul-18
Oct-18
Jan-19
Apr-19
Jul-19
Oct-19
Jan-20
Apr-20
Jul-20
Oct-20
Jan-21
200
300
400
500
600
700
800
$/short ton
Medium (OMP)
Linerboard (OMP)
Medium (List Price)
Linerboard (List Price)
39Economic Indicators and U.S. Box Demand
150
140
Indexed 100 = 2001
130
120
110
100
90
80
70
US Box Shipments US Nondurable Industrial Production US GDP US Industrial Production
Source: Oxford Economics; RISI North
America Containerboard Historical Data
Investor
Investor Roadshow
Roadshow I February
I February 4, 2021
4, 2021 40U.S. Corrugated Packaging Shipments
RISI Forecast
448
Shipments (BSF)
438
426
415 420
405 401 407
390 396 391 391 395 390 386 392 394
373 378 380 379 380 374 376
369
357 359 360 360 364
345
Historical Data Source: Fibre Box Association
Investor Roadshow I February 4, 2021 2021-2025: 1.9% CAGR (RISI – February 2021, 5-yr forecast) 41Global Cellulose Fibers | Business Overview
Grand Prairie,
Alberta
Svetogorsk, Russia
Franklin, VAVA
Franklin, Market Pulp Mill
Eastover SCSC
Eastover Kwidzyn,
NewNew
Bern, NC NC Gdansk,
Bern, Poland Fluff Pulp Mill
Poland
Riegelwood, NC
Riegelwood, NC
Columbus, MSMS
Columbus,
Georgetown,
Georgetown,SCSC Converting facilities
Port Wentworth, GA
Port Wentworth, GA Saillat, France
Pensacola, FLFL Flint River,
Flint GAGA
River,
Pensacola,
Market Pulp
~25%
Current
Product Mix1
Total Capacity ~3.6MM MTPY Targeted Mix
Fluff Pulp & Specialties 2.7MM 85% ~75%
Fluff Pulp &
Specialties
Market Pulp 0.9MM 15%
Investor Roadshow I February 4, 2021 42Absorbent Hygiene Products (AHP) Outlook | Demand & Growth
AHP demand linked to disposable incomes in emerging markets
10,000
8,000
Disposable Incomes
USD per capita
6,000
4,000
2,000
0
2000 2010 2020 2024 2030
Middle East & Africa Latin America Asia Pacific China
Investor Roadshow I February 4, 2021 Source: Euromonitor
43Global Market Pulp Demand Outlook | Bleached Softwood
24.8MM MTPY CAGR = 1.3% 26.5MM MTPY 2019 – 2023
30 CAGR
Rest of World 1.0%
25 Rest of World
20
Asia 3.1%
Asia
15
Eastern Europe Eastern Europe 2.6%
10
Western Europe Western Europe (2.2)%
5 Latin America Latin America 0.1%
North America North America
0.7%
0
2018 2023
Investor Roadshow I February 4, 2021 Source: PPPC November 2019 Chemical Market Pulp Forecast SRN
44Global Cellulose Fibers | Advantaged Position in Attractive Markets
Fluff Demand by Region and End Use
2018 Demand 2018 - 2023 2018 - 2023
5.9MM MTPY CAGR CAGR
Airlaid 12%
0.8%
Asia Feminine Care
2.8%
5.1% 23%
Well positioned to serve
Adult
Incontinence 7.7% growing demand with global,
EMEA 3.4% 32%
strategic customers
Latin America 2.0% Baby Diapers 1.1%
33%
North America 1.4%
Source: CAGR, Region and End Use – Price Hanna 2019 Outlook for Absorbent Products;
Investor Roadshow I February 4, 2021 2018 Demand – IP analysis 45IP Global Pulp Capacity | Total of 3.9MM MTPY1
Ilim JV
Europe/Russia
2.0 MM
0.3 MM
North America
3.4 MM
Latin America
0.2 MM
Pulp mill
Investor Roadshow I February 4, 2021 461,000
1,200
1,400
1,600
0
200
400
600
800
Jan-06
USD/admt
Apr-06
Jul-06
Oct-06
Jan-07
Apr-07
Jul-07
Oct-07
Jan-08
Apr-08
Investor Roadshow I February 4, 2021
Jul-08
Oct-08
Jan-09
Apr-09
Jul-09
Oct-09
Pulp | Industry Statistics
Jan-10
Apr-10
Jul-10
Oct-10
Jan-11
Apr-11
Jul-11
Oct-11
Jan-12
Source: RISI
Apr-12
Jul-12
Oct-12
Jan-13
Apr-13
Units shown in metric tons
Jul-13
Oct-13
Jan-14
Apr-14
Global Pulp Prices
Jul-14
Oct-14
Jan-15
Global pulp prices delivered to Northern Europe;
Apr-15
Jul-15
Oct-15
Jan-16
NBSK (dne)
Apr-16
Jul-16
Oct-16
Jan-17
Apr-17
Jul-17
Oct-17
Jan-18
BEK (dne)
Apr-18
Jul-18
Oct-18
Jan-19
Apr-19
Jul-19
Oct-19
Jan-20
Fluff (dne)
Apr-20
Jul-20
Oct-20
Jan-21
47IP Global Papers Footprint | Total of 4.0MM Short Tons1
Russia
0.4 MM Ilim JV
0.4 MM
Europe
North America
0.8 MM
1.7 MM
Brazil
1.1 MM
Uncoated paper mill
Investor Roadshow I February 4, 2021 48N.A. Uncoated Freesheet Supply | Capacity Positions
GP Other
15% 24%
Other
25%
Domtar
IP 34%
13% Pixelle
1998 Producer 7% 2019 Producer
Union Position Position
Camp
9% PCA
Champion 10%
10%
WY
9% Boise
Willamette 10% IP
9% 24%
1998, 2018 Source: Poyry Consulting, RISI, IP analysis
Investor Roadshow I February 4, 2021 2019 Producer Position based off of 3Q 2019 Capacity 49N.A. Papers Mill System | 1.7MM Short Ton Capacity
Uncoated Freesheet Non UFS 1 Pulp
100%
80%
% Grade / Mix
60%
40%
20%
0%
Riverdale PM16 Ticonderoga Eastover Georgetown
Paper
Capacity
350 280 750 290
(M Tons)
Pulp
0 0 95 340
(M Tons)
Investor Roadshow I February 4, 2021 Source: IP Analysis
50IP N.A. Capacity in 1st
Uncoated Freesheet Global Cost Curve | Cost Quartile
$3,600 Cash Costs + Delivery to Chicago
$3,200
$2,800
Manufacturing Costs $/Ton
$2,400
$2,000
$1,600
Eastover
Georgetown
$1,200
$800
$400
Ticonderoga
Riverdale PM16
$0
0 10,000 20,000 30,000 40,000 50,000
Cumulative Annual Production (Thousand Tons)
Investor Roadshow I February 4, 2021 Source: FisherSolve ™ 3Q19 data
51N.A. Printing Papers | Margin History
25%
19% 19% 22%
16% 20%
20% 18% 18%
Adj. EBITDA1 ($MM)
17%
Adj. EBITDA1 %
15%
15% 13%
Business
657 657 13%
598 499 12% 12% 12%
10%
575 539
10% 513
314 310 295 7%
316 254
253 261 213
5%
124
0%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Tons
Sold (MM)
4.0 4.1 3.9 3.5 3.0 2.8 2.7 2.7 2.6 2.0 2.0 1.9 1.9 1.9 1.8 1.3
Investor Roadshow I February 4, 2021 52U.S. Uncoated Freesheet Demand
14.0 13.9
13.3 13.7 13.6
13.0 13.2 12.6 12.4
12.2 12.4 12.3 12.6 12.0 12.3 11.9
11.6
10.9
9.7 9.6 RISI Forecast
9.3
8.9 8.8
8.0 8.0 7.9
7.6 7.4
Million Tons
6.6
6.1 6.0 5.8
5.3 5.6 5.4
91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Historical Data Source: AF&PA
Investor Roadshow I February 4, 2021 2021 – 2025: (3.0%) CAGR (RISI February 2021: 5-yr Forecast) 53$/short ton
$500
$600
$700
$800
$900
$1,000
$1,100
$1,200
Jan-06
Apr-06
Jul-06
Oct-06
Jan-07
Apr-07
Jul-07
Oct-07
Jan-08
Apr-08
Investor Roadshow I February 4, 2021
Jul-08
Oct-08
Jan-09
Apr-09
Jul-09
Oct-09
Jan-10
Apr-10
Jul-10
Oct-10
Jan-11
Apr-11
Jul-11
Oct-11
Jan-12
Apr-12
Jul-12
Oct-12
Jan-13
Apr-13
Jul-13
Source: RISI
Oct-13
RISI 20# Cutsize
Jan-14
Apr-14
Jul-14
Oct-14
Jan-15
Apr-15
Jul-15
Uncoated Freesheet Pricing Trends
U.S. Uncoated Freesheet | Industry Statistics
Oct-15
Jan-16
Apr-16
Jul-16
Oct-16
Jan-17
Apr-17
RISI 50# Offset
Jul-17
Oct-17
Jan-18
Apr-18
Jul-18
Oct-18
Jan-19
Apr-19
Jul-19
Oct-19
Jan-20
Apr-20
Jul-20
Oct-20
Jan-21
$500
$600
$700
$800
$900
$1,000
$1,100
$1,200
54Latin America Uncoated Freesheet Market
Latin America Capacity Supply & Demand
Others
Other LatAm
Peru
Smurfit 14% IP Demand Capacity
Kappa Chile
Ledesma
3% Colombia
4% 38% Argentina
Celulosa
Argentina 4% 3.0MM Brazil
0 500 1,000 1,500 2,000 2,500
Propal 7% tons Thousand Short Tons
Latin America is a Net Exporter
30% Capacity @
Demand Net Exports
88% Op. Rate
Suzano
2.5 MM 2.7 MM 0.2 MM
LatAm analysis excludes Mexico
Investor Roadshow I February 4, 2021 Source: Ibá / AFCP / RISI / Fisher / IP Estimates 55IP Brazil Papers | Historical Financials
40% 400
35% 33% 33% 34% 350
31% 31% 31%
27% 31%
27% 26% 29%
30% 300
Adj. EBITDA1 ($MM)
26%
24%
Adj. EBITDA1 %
334 329 24%
25% 326 250
Business
317 320 293 297
280 296 275 264 251
20% 228 200
15% 150
149
10% 100
5% 50
0% -
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Tons
Sold 0.9 1.0 1.2 1.2 1.3 1.3 1.3 1.3 1.2 1.2 1.3 1.2 1.3 0.9
(MM)
Investor Roadshow I February 4, 2021 56IP Russia & ILIM JV | Production Overview
Well Positioned to Serve Target Markets
Ilim JV Production tonnes1 2019
Bratsk Mill
Koryazhma Total 1,108
Softwood bleached pulp 685
Ust-Ilimsk
Svetogorsk Bratsk
Hardwood bleached pulp 324
KLB 98
Kazakhstan Mongolia
Koryazhma Mill
China Total 1,334
PM7 paper 186
PM7 CFS 58
IP Russia Production1
Pulp (BHKP, UKP) 314
KLB and others 776
Svetogorsk 2019
Ust-Ilimsk Mill
Total 654
Coated Paperboard 113
Total 677
Pulp (soft/hardwood) 150 Pulp (BSKP, UKP) Total 628
Fine Papers 391 Hardwood bleached pulp 49
Investor Roadshow I February 4, 2021 57ILIM Joint Venture | Well Positioned to Serve Growing Pulp Markets
China will account for more than 60% of world’s incremental
market pulp growth
Cost positions with favorable access to China NBSK customers
Access to significant Russian wood basket
$1,000
Cash Cost + Delivery to Beijing, China
$800
Manufacturing Costs
$600
($/Ton)
Ust-Ilimsk
$400
$200
Bratsk
$0
0 5,000 10,000 15,000 20,000
Cumulative Capacity (Thousand Tons)
Investor Roadshow I February 4, 2021 Source: FisherSolve™ 3Q19 data
58ILIM Joint Venture | Full Year Financials
2013 2014 2015 2016 2017 2018 2019
Sales Volume (Million metric tonnes) 2.4 2.9 3.0 3.2 3.1 3.3 3.2
Sales ($B) 1.9 2.1 1.9 1.9 2.2 2.7 2.2
Debt ($B) 1.5 1.4 1.2 1.5 1.6 1.6 2.2
Adj. Operating EBITDA ($MM) 203 459 694 680 695 1,207 706
F/X Gain (Loss)1 ($MM) (80) (674) (188) 63 37 (204) 79
EBITDA ($MM) 123 (215) 506 743 732 1,003 785
Depreciation ($MM) 176 188 128 121 151 156 134
EBIT ($MM) (53) (403) 378 622 581 847 651
Interest Expense ($MM) 39 69 52 81 88 70 82
Net Income / (Loss) ($MM) (72) (359) 237 385 362 571 424
IP Equity Earnings / (Loss) ($MM)
(46) (194) 131 199 183 290 207
Dividends (to IP) ($MM) 0 56 35 60 134 128 246
Investor Roadshow I February 4, 2021 59ILIM Joint Venture | 4Q20 vs. 3Q20
$ Million 4Q19 3Q20 4Q20 2019 2020
Sales Volume 802 878 932 3,162 3,460
(thousand metric tonnes)
Sales $495 $498 $541 $2,188 $2,015
1
EBITDA $138 $(21) $206 $785 $393
F/X (Impact
2
of USD Net
$21 $(138) $55 $79 $(126)
Debt)
Adj. Operating
3 $117 $117 $151 $706 $519 Strong demand for softwood pulp in China
EBITDA
Price/mix improvement driven by higher softwood
IP Equity Earnings
4 $21 $(33) $53 $207 $48 pulp pricing
(Loss)
IP dividends of $141 million in 2020
F/X gain (non-cash) of $0.05 EPS primarily on
USD-denominated net debt in 4Q20
Investor Roadshow I February 4, 2021 60Adj. Operating EPS1
1.65
1.56
1.27
1.19 1.15
Impact of Mineral 1.11 1.09
1.09
.42 .08 Final Land Sale
Rights Gain 1.01
.93 .91 .94
.90.91
.87 .87 .84
.83 .79 .82.83
.73 .76.77.78 .77 .78 .78 .77 .75
.72 .71
.67 .66 .67 .66
.57 .58 .58 .59 .56 .57
.52 .52
.49 .49
.47.45 .45 .44 .46
.40 .38
.35
.27
.22
.12 .15
.07
.05
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Investor Roadshow I February 4, 2021 61Free Cash Flow
$ Million 4Q19 2019 1Q20 2Q20 3Q20 4Q20 2020
Cash Provided by
$928 $3,610 $649 $890 $735 $789 $3,063
Operations
Cash Invested in Capital
Projects, Net of $(363) $(1,276) $(286) $(252) $(119) $(94) $(751)
Insurance Recoveries
Free Cash Flow $565 $2,334 $363 $638 $616 $695 $2,312
Investor Roadshow I February 4, 2021 62Balance Sheet | Financial Strength
Target 2.5 – 2.8x1
4.0x
3.2x 3.3x
$3.4 2.8x
$2.0 2.9x
$1.8 2020 Highlights
$3.6
$1.6
2.9x Pension Gap
Reduced balance
Pension Gapsheet debt by $1.7B
$1.1 Pension Gap
Pension Gap
Billion
Limited near-term maturities
$11.3 $11.2 $10.7 Pension plan sufficiently funded
$9.3 $9.8
$8.1
$0.6B cash balance
Balance at year-end
Balance
Sheet Sheet
Debt Debt
2015 2016 2017 2018 2019 2020
Op Lease Adj Balance Sheet Debt Pension Gap
Investor Roadshow I February 4, 2021 63Debt Maturity Profile | Maturities as of September 30, 2020
$1,200
$1,000
$800
$600
Million
$400
$200
$0
2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048
Investor Roadshow I February 4, 2021 64Pension Plan Update1 | As of December 31, 2020
Key Variables 2018 2019 2020
Annual Pension Expense2 Assumed Rate of
7.50% 7.25% 7.00%
Return
$600
545 Discount Rate 4.30% 3.40% 2.60%
447 Average Annualized Returns3
$450
387 2020 24.7%
364
342 Past Five Years 13.9%
Million
290
$300 Past Ten Years 10.7%
209
Portfolio Asset Allocation at 12-31-20
$150 Target Actual
93
Equity 32% - 43% 40%
Bonds 44% - 56% 48%
$0
2012 2013 2014 2015 2016 2017 2018 2019 Real Estate 5% - 11% 7%
Other 3% - 8% 5%
Investor Roadshow I February 4, 2021 65Proactively Managing Pension Plan
1960-2005 2006-2013 2014 2015 2016 2017
Contributions
$0 $2.5B $353MM $750MM $750MM $1.25B
Took definitive actions to de-risk pension plan and further reduce
exposure to interest rate variability on a structural basis
2004 2016 2017+ 2019
Defined Benefit Pension Plan Voluntary term-vested buy Defined Benefit Pension Plan
closed to new entrants out program reduced plan frozen as of 12/31/18
size by ~10% and introduced
new LDI1 policy
Pension plan sufficiently funded
Continue to assess if
Changed the plan's asset allocation to emphasize more fixed income
there are attractive
opportunities to further Reallocated the plan’s fixed income investments to longer duration maturities
de-risk pension plan on Expanded certain hedging strategies
a structural basis
Transferred ~$2.9B of pension benefit obligations to Prudential ($1.3B in 2017; $1.6B in 2018)
Investor Roadshow I February 4, 2021 66Capital Spending
% of Depreciation
$1,600 125%
$1,400
$1,200 100%
$1,000
Million
$800 ~$800 75%
$600
$400 50%
$200
$0 25%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021E
Maintenance Regulatory Strategic Cost Reduction % of Depreciation
Investor Roadshow I February 4, 2021 Reflects continuing operations
672021 Capital Investment
Maintenance & Cost Reduction Strategic
Regulatory
Creating value through pipeline
Maintaining world-class, Reinvesting in core businesses
of high return projects
low-cost, advantaged assets with higher growth profile
≥ 30% IRR
$0.2B $0.4B
$1,200
Cash Cost (Delivered to Chicago)
IP N.A. Containerboard Mills
$1,000
$800
$600
$400
$200
$0
0 50,000 100,000 Madrid Mill Conversion
Cumulative Annual Containerboard
Global Production (Thousand Tons)
Investor Roadshow I February 4, 2021 Source: IP Analysis, FisherSolve™ 3Q19 data 68Maintenance Outages Expenses | 2020
$ Million 1Q20A 2Q20A 3Q20A 4Q20A 2020A
Industrial Packaging $75 $44 $70 $28 $217
North America $74 $40 $60 $28 $202
Europe $1 - $3 - $4
Europe Coated Paperboard - $4 $7 - $11
Brazil - - - - -
Global Cellulose Fibers $30 $3 $46 $54 $133
North America $30 $1 $44 $52 $127
Europe - $2 $2 $2 $6
Printing Papers $36 $23 $31 $14 $104
North America $36 $12 $13 $11 $72
Europe - $8 $16 $3 $27
Brazil - $3 $2 - $5
Total Impact $141 $70 $147 $96 $454
Investor Roadshow I February 4, 2021 69Maintenance Outages Expenses | 2021 Forecast
$ Million 1Q21F 2Q21F 3Q21F 4Q21F 2021F
Industrial Packaging $115 $135 $59 $29 $338
North America $115 $129 $56 $28 $328
Europe - - $2 $1 $3
Europe Coated Paperboard - $6 $1 - $7
Global Cellulose Fibers $48 $57 $11 $55 $171
North America $48 $54 $10 $44 $156
Europe - $3 $1 $11 $15
Printing Papers $16 $40 $14 $30 $100
North America $15 $28 $8 $19 $70
Europe $1 $12 $1 $11 $25
Brazil - - $5 - $5
Total Impact $179 $232 $84 $114 $609
Investor Roadshow I February 4, 2021 70North American Downtime
Containerboard Cellulose Fibers
Thousand Tons
Thousand Tons
74 9 47
328
410 9
66
190 68
104 83 3 50 48
202 123 1 36 15 41
22 110 91 86 105 26 18
77 36 63 14 1
Uncoated Papers
205 76
Economic
Thousand Tons
2
Maintenance
40
27
30 43
33
10 11 16 14 15 13
9 7
Investor Roadshow I February 4, 2021 71Total Cash Components | 2019
Energy
8% Fiber
37%
Chemicals
7%
Overhead
14%
Materials
Labor 19%
15%
Investor Roadshow I February 4, 2021 North American mills only
724Q20 Average Cost Up 1%
U.S. Mill Wood Delivered Cost Trend | vs. 3Q20
130
125
120
115
110
105
100
95
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
90
Investor Roadshow I February 4, 2021 IP data, cost Indexed to January 2007 values
73U.S. OCC Delivered Cost Trend | 4Q20 Average Cost Up 5% vs. 3Q20
220
200
180
160
140
120
100
80
60
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
40
IP data, cost Indexed to January 2007
Investor Roadshow I February 4, 2021 values 74U.S. Natural Gas Cost Trend | 4Q20 Average Cost Up 28% vs. 3Q20
250
200
150
100
50
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
0
IP data, cost Indexed to January 2007 values
Investor Roadshow I February 4, 2021 NYMEX Natural Gas closing prices 75U.S. Fuel Oil Cost Trend | 4Q20 Average Cost Up 5% vs. 3Q20
300
250
200
150
100
50
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
0
IP data, cost Indexed to January 2007 values
Investor Roadshow I February 4, 2021 WTI Crude prices 764Q20 Average Cost Flat
U.S. Chemical Composite Cost Trend | vs. 3Q20
200
175
150
125
100
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
75
IP data, cost Indexed to January 2007 values
Delivered cost to US facilities: includes Caustic Soda, Sodium Chlorate, Starch and Sulfuric Acid 2007 - 2008 excludes WY PKG
Investor Roadshow I February 4, 2021 772019 Global Consumption | Annual Purchases for Key Inputs
Commodity North America Non – North America
Natural Gas (MMBTUs) 80,000,000 13,000,000
Energy Fuel Oil (Barrels) 300,000 400,000
Coal (Tons) 80,000 400,000
Wood (Tons) 53,000,000 9,000,000
Fiber
Old Corrugated Containers / DLK (Tons) 4,400,000 500,000
Caustic Soda (Tons) 400,000 60,000
Chemicals Starch (Tons) 320,000 140,000
Sodium Chlorate (Tons) 160,000 40,000
Investor Roadshow I February 4, 2021 78Footnotes Slide 11 1 Moody’s methodology is used to calculate Adjusted Debt to EBITDA ratio. Moody’s adjusts debt to include balance sheet debt, operating leases/deferred tax liability and debt issuance expense, and pension gap. EBITDA is adjusted to include lease and pension adjustments (non-GAAP) Slide 12 Free Cash Flow, a non-GAAP financial measure, reflects cash provided by continuing operations for 2006 – 2011, based on data in the 10-K for each year at the time of filing. Free Cash Flow reflects cash provided by operations for 2012 onward. Excludes net cash pension contributions impacting 2006, 2010, 2011, 2013, 2014, 2015, 2016 & 2017, cash flows under European accounts receivable securitization beginning in 2009 and ending in 2011, and cash received from Black Liquor Tax Credits in 2009 and 2010. 2012 excludes $120MM cash paid for Temple-Inland change-in-control agreements, $251MM cash received from unwinding a timber monetization, $44MM cash paid for Temple-Inland pension plan contribution, and $80MM cash paid for Guaranty Bank settlement. 2013 excludes $30MM cash received from Guaranty Bank insurance reimbursements. 1 For 2019 onward, see slide #63 for a reconciliation of cash provided by operations to Free Cash Flow, a non-GAAP financial measure Slide 13 Years 2013-2017 restated to reflect N.A. Consumer Packaging and xpedx as discontinued operations. Years 2006-2012 are as reported in the 10-K for each year at time of filing 1 Adjusted ROIC, a non-GAAP financial measure, based on Adjusted Operating Earnings before Interest / Average Invested Capital [Equity (adjusted to remove pension related amounts in OCI, net of tax) + Interest- bearing Debt] Slide 14 1 Before special items and non-operating pension expense (income) (non-GAAP) 2 See slide #63 for a reconciliation of cash provided by operations to Free Cash Flow, a non-GAAP financial measure Slide 14 1 Before special items and non-operating pension expense (income) (non-GAAP) 2 Adjusted operating EPS , a non-GAAP financial measure based on Adjusted Operating Earnings (defined as Net Earnings Attributable to International Paper (GAAP) before special items and non-operating pension expense (income)) 3 See slide #63 for a reconciliation of cash provided by operations to Free Cash Flow, a non-GAAP financial measure Slide 17 1 Before special items Slide 21 1 2020 full-year estimates Slide 26 1 Ilim JV total sales are not consolidated (IP owns 50% of JV) Investor Roadshow I February 4, 2021 79
Footnotes Slide 27 1 Based on 2020 sales, excludes corporate and intercompany eliminations 2 Based on 2020 Adj. EBITDA; before special items and non-operating pension expense (income) (non-GAAP); does not reflect equity earnings from Ilim JV Slide 28 1 Includes modified absorbent products Slide 31 1 IP Adjusted EBITDA margins based on North American Industrial Packaging operating profit before special items Excludes the Recycling Business and revenue from trade volumes Slide 34 1 Includes Saturating Kraft /Gypsum Liner Slide 36 1 Includes Riverdale’s run-rate capacity post-conversion Slide 42 1 North American production. Combined businesses, with Riegelwood PM18 running SW market pulp Slide 46 1 Does not include llim JV Slide 48 1 Does not include llim JV Slide 50 1 Non UFS includes Specialty and Uncoated Bristols; 2020 Short Ton capacity Slide 52 1 Before special items and non-operating pension expense (income) (non-GAAP) Investor Roadshow I February 4, 2021 80
Footnotes Slide 56 1 Before special items and non-operating pension expense (income) (non-GAAP) Slide 57 1 Volumes shown in thousand metric tons Slide 59 Ilim JV results are US GAAP basis 1 Represents F/X impact including that related to Ilim Group JV USD-denominated net debt (balance of ~$0.4B at year end 2019) Slide 60 Ilim JV results are on U.S. GAAP basis 1 A non-GAAP financial measure 2 Represents F/X impact including amounts related to Ilim Group USD-denominated net debt (balance of ~$90MM as of December 31, 2020); Ilim Group’s functional currency is the Ruble (RUB); Non-functional-denominated currency balances are measured monthly using the month-end exchange rate 3 Before F/X impact including USD-denominated net debt 4 IP Equity Earnings (Loss) for 4Q19, FY2019, 3Q20, 4Q20 and FY2020 include after-tax F/X gains (losses) (primarily on USD-denominated net debt) of $8MM, $32MM, $(55)MM, $22MM and $50MM, respectively Slide 61 2006 as originally reported 2007-2011 adjusted for elimination of the Ilim JV reporting lag 2006-2010 Net Earnings from continuing operations and before special items; 2010 onward reflects Operating Earnings xpedx is reflected as a Discontinued Operation from 2010 onward N.A. Consumer Packaging is reflected as a Discontinued Operation from 2013 onward Slide 63 1 Moody’s methodology is used to calculate Adjusted Debt to EBITDA ratio. Moody’s adjusts debt to include balance sheet debt, operating leases/deferred tax liability and debt issuance expense, and pension gap. EBITDA is adjusted to include lease and pension adjustments (non-GAAP) Investor Roadshow I February 4, 2021 81
Footnotes Slide 65 Pension expense reflects service cost, interest cost, amortization of actuarial losses and expected return on plan assets For the past 10 years, IP Pension Plan performance ranked in the top decile of the State Street Bank Corporate and Public Master Trust Universe of approximately 200 observations 1 2013 and onward include Temple-Inland pension plan 2 Non-cash expense for U.S. plans only 3 Through December 2019 Slide 66 1 Liability Driven Investment Investor Roadshow I February 4, 2021 82
Contact Information
Investor Relations
• Guillermo Gutierrez
+1-901-419-1731
guillermo.gutierrez@ipaper.com
• Michele Vargas
+1-901-419-7287
michele.vargas@ipaper.com
Media
• Thomas Ryan
+1-901-419-4333
thomas.ryan2@ipaper.com
Investor Roadshow I February 4, 2021You can also read
