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Investor Roadshow | 3Q 2014

Investor Roadshow | November 5, 2014

Forward-Looking Statements

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

statements. These statements reflect management's current views and are subject to risks and uncertainties

that could cause actual results to differ materially from those expressed or implied in these statements.

Factors which could cause actual results to differ include but are not limited to: (i) the level of our

indebtedness and increases 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

manufacturing facilities; (vi) risks inherent in conducting business through joint ventures; and (vii) our ability

to achieve the benefits we expect from all strategic acquisitions, divestitures and restructurings. These and

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

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

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

future events or otherwise.

2


Statements Relating to Non-GAAP Financial Measures

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

will be presented.

A reconciliation of those numbers to U.S. GAAP financial measures is available on

the company’s website at internationalpaper.com under Investors.

3


Ilim JV Information

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

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

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

management of Ilim. Ilim management has indicated that the financial information

was prepared in accordance with International Financial Reporting Standards and

extracted from Ilim’s financial statements, but International Paper has not verified or

audited any of this information. Any projected financial information and statistical

measures reflect the current views of Ilim management and are subject to risks and

uncertainties that could cause actual results to differ materially from those

expressed or implied by such projections. See “Forward-Looking Statements.”

4

Investment Thesis

Investor Roadshow | November 5, 2014 5

IP Investment Thesis | Why IP Will Outperform

Vision

Leadership position

Attractive markets

Low-cost assets

Generating…

Strong FCF

Returns above cost-of-capital

• Global packaging and paper platforms

• Leadership positions in scale businesses

• Operational excellence

• Operate in key markets where we can grow profitably

ROIC Consistently >WACC FCF Strong Sustainable Improving Capital Allocation ✔ Value Creation ✔ Return Cash to Shareholders

Strategy Shareholder Value


Why Invest in IP?

Strong Management Team

ROIC Above WACC

with Further Margin Expansion

Strong, Healthy Balance Sheet Enables Greater

Commitment to Return Cash to Shareholders

Robust, Improving Free Cash Flow Generation

Less Cyclical Business Results

from Refocused Portfolio


Global Economic

Recession

Returns on Invested Capital1 above our Cost of Capital

7

4.5%

6.3%

7.5%

6.5%

5.0%

8.1%

9.5%

8.3%

9.3%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

2005 2006 2007 2008 2009 2010 2011 2012 2013

ROIC WACC

2010 – 2013

8.8% (average ROIC)

1 ROIC = Operating Earnings before Interest / Average Invested Capital [Equity (adjusted to remove pension related amounts in OCI, net of tax) + Interest-Bearing Debt]


Global Economic

Recession

Strong, Sustainable Free Cash Flow

Free cash flow, based on data in the 10-K for each year at the time of filing.

Excludes net cash pension contributions impacting 2006, 2010, 2011 & 2013, 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.

Transformation:

$0.7 Billion (average)

Excluding land sales:


2010 – 2013


$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

2005 2006 2007 2008 2009 2010 2011 2012 2013

$ B

illi

on

s

8


Delivering Results

2012 2013 Near-term

Target

EBITDA ($Billion) 3.7 4.1 5.1

Free Cash Flow1,2 ($Billion) 1.6 1.8 2.2

ROIC 8% 9% 12%

From continuing operations before special items and non-operating pension expense 1 2012 excludes $120MM cash paid for Temple-Inland change-in-control agreements, $44MM cash paid for Temple-Inland pension plan contribution, $80MM

cash paid for Guaranty Bank settlement, and $251MM cash received from unwinding a timber monetization. 2 2013 excludes $31MM cash paid for pension plan contribution and $30MM cash received from Guaranty Bank insurance reimbursements.

Near-term Target as of Investor Day 2012 excludes similar items.


Long-Term Runway

Strategically

Consistent,

Accretive M&A

High Return

Capital Projects

Profitable Growth in

Emerging Markets

Continued Optimization

of Strong NA Platforms

Mogi Guacu Biomass Boiler


Delivering on Our Commitments

Strategically

Reinvest in Business Return Cash to

Shareholders

Maintain a Strong

Balance Sheet

Disciplined Capital Allocation Strategy

$1.05 $1.20

$1.40

$1.60

4Q11 4Q12 4Q13 4Q14

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


What Makes IP Different? | Key Levers and Runway

Enterprise

• Manufacturing expertise with low-cost assets

• People capability

• EBITDA growth based on IP specific initiatives

• Ramping dividend and sizeable share repurchase program

• Attractive FCF yield with improving FCF

• Strong positions – best margins

• Industrial Packaging optimization

• Consumer Packaging foam to paper cup conversions

• Papers repositioning post Courtland

• Leveraging global platform for profitable growth

• Coated Paperboard quality project at Kwidzyn

• Packaging synergies at Orsa

• Ilim ramp up

North America Global

Business Overview


2005 - 2007 2008 - 2010

2011+

IP Transformation Timeline/Plan

Transformation Plan

Divestitures & Strategic

Reinvestment

Global Recession IP Achieves Cost of Capital Returns

NA Weyco Pkg.

Acquisition

Russia

Ilim JV

India APPM

Acquisition China

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.

NA TIN

Acquisition

Turkey

Olmuksan Pkg.

13

Franklin

Fluff Pulp

Conversion

TIN Bldg.

Products

Sale

xpedx

Spin-Off


North America

Brazil

EMEA & Russia

India

Asia

North America

Recognized Leader in Core Segments:

Corrugated Pkg. Uncoated Papers

Coated Paperboard

Emerging Markets Build Leading Positions in Fiber-based Packaging

& Paper Segments in High-Growth Markets

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

$16.8B Net Sales

$1.4B Net Sales

$3.1B Net Sales

$1.9B Net Sales

$0.2B Net Sales

Full-year 2013 net sales data (xpedx is reflected as a Discontinued Operation in all periods presented.) 1 Ilim JV total sales are not consolidated (IP owns 50% of JV)

International Paper | Global Portfolio in Packaging and Paper

$1.9B1 Ilim JV Total Sales


Repositioned & Well-Positioned | Leading Global Positions

15

1st in NORTH AMERICA in corrugated packaging & coated paperboard

2nd in NORTH AMERICA in uncoated freesheet

1st in LATIN AMERICA in uncoated freesheet

PULP

1st in RUSSIA in paper & pulp

Source: RISI


EBITDA Margin

2005 2013

Industrial Packaging

North America1 9% 22%

Brazil – 8%

Printing Papers


Europe & Russia3 16% 18%

Brazil 33% 31%

Consumer Packaging


Europe 26% 32%

Segment operating profit before special items 1 Includes Corrugated Packaging, Saturating Kraft & Bag businesses; excludes Recycling business and revenue from trade volumes 2 Includes Bleached Kraft (excludes Pulp) 3 Uncoated Papers (excludes Pulp) 4 Includes Foodservice business

16

Repositioned & Well-Positioned | Primary Integrated Mill Business Margins


Global Segment Profile | 2013 EBITDA1

Printing

Papers

24%

Industrial

Packaging

66%

Consumer

Packaging

10%

North America

79% Brazil 9%

Europe 7%

Russia 4%

Asia 1%

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

Does not reflect equity earnings from Ilim JV

xpedx is reflected as a Discontinued Operation in all periods presented.


Global Recession

NA Industrial Packaging | Track Record of Success

18

0.3 0.4 0.5

0.8

1.3 1.3 1.6

2.0

2.5

9%

13% 15% 15%

19% 18%

20% 19%

22%

0%

5%

10%

15%

20%

25%

2005 2006 2007 2008 2009 2010 2011 2012 2013

Bu

sin

ess

EB

ITD

A ($

B)

Weyco Packaging Acquisition &

Integration

TIN Acquisition &

Integration EBITDA %

IP 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


$441 $3771

$6962

3Q13 2Q14 3Q14

Free Cash Flow1 ($MM)

Third Quarter 2014 Results

1 Excludes $205MM cash paid for pension plan contribution 2 Excludes $90MM cash paid for pension plan contribution


19

Record quarter for EBITDA and Free

Cash Flow

Outstanding performance from NA

Industrial Packaging group

Strong performance in other key

businesses

Continuing pressure from input costs

IP 14% dividend increase to $1.60/share

Share buyback program purchases of

$1.3B through Sept. 30, 2014

Ilim dividend of $56MM received

Solid operating results at Ilim;

unfavorable F/X impact of ($0.19) EPS


3Q14 Financial Results

3Q13 2Q14 3Q14

Sales ($B) $6.0 $5.9 $6.1

EBIT1 ($MM) $711 $686 $835

EPS2 $1.01 $0.93 $0.95

EBITDA1 ($MM) $1,108 $1,041 $1,193

EBITDA Margin1 18.5% 17.6% 19.7%

Free Cash Flow ($MM)

$441 $3773 $6964

1 From continuing operations before special items and non-operating pension expense 2 EPS based on Operating Earnings (defined as Net Earnings (GAAP) from continuing operations before special items and non-operating pension expense) 3 Excludes $205MM cash paid for pension plan contribution 4 Excludes $90MM cash paid for pension plan contribution


$1,108 $1,041

$1,193

3Q13 2Q14 3Q14

EBITDA1 ($MM)

20


Summary

Runway from current initiatives

(NA and Global)

Strong FCF and Healthy Balance Sheet drives

increased Capital Allocation opportunities

Pipeline of High Return Capital Projects

Less Cyclical Earnings with Higher Returns

Progress toward near-term goals of

$5.1B EBITDA and $2.2B FCF

Appendix


Appendix - Table of Contents

Industrial Packaging……………….……………………………………..23-35

Consumer Packaging……….….………………………….……………..36-44

Printing Papers & Pulp..……….………………………………………...45-64

Ilim Group.…………………………….……………………………………65-71

Financial & Other………………….……………………………………....72-83

Contact Information……………….………………………………………….84

Slides


North American Containerboard | Supply Positions

Stone 13%

Smurfit 7%

GP 9%

WY 7%

IP 7% TIN 7%

Others 50%

Note: 2014 producer position based on 2013 RISI capacity reports adjusted for Kapstone and PCA acquisitions and Norampac’s new Niagra Falls PM

1998, 2014 Source: SEC Filings, RISI, IP Analysis

1995 Producer Position

Top 5 = 43%

2014 Producer Position

Top 5 = 75%

IP 34%

RKT 19%

GP 10%

PCA 8%

Norampac 4%

Others 25%

23


IP North American Industrial Packaging | Balanced Global Strategy

IP’s market access provides choices for maximizing value

NA Mill System Capacity ~13 Million Tons

IP Box Plants ~80%

Open Market ~20%

U.S. ~93%

Non-U.S. ~7%

Export ~55%

Domestic ~45%

EMEA

~35% Lat Am ~45%

Asia ~20%

1 Includes Saturating Kraft /Gypsum Liner

2 Estimated 2014 purchases from divested mills

Source: IP analysis

Outside Purchases2

~550M tons

Containerboard ~12.6 Million Tons

Other Uses1 ~0.4 Million Tons

Global Customers


Global Containerboard Industry | Total Containerboard Trade Flows - 2013

Net Import Locations Net Export Locations Source: RISI, PPPC

Global Demand = 163MM tons

Import

(3.4)MM

Import

(1.0)MM

3.8% Export

0.2 MM

13.6% Export

5.0 MM

8.6% Export

0.3 MM

30.0% Export

0.7 MM

Import

(1.0)MM

25


IP NA Containerboard Mill System | 13 Million Tons Capacity

0

200

400

600

800

1000

1200

1400

1600

1800

2000

Va

llia

nt

Ma

nsfi

eld

Pra

ttvil

le

Sa

va

nn

ah

Ce

da

r R

ap

ids

Cam

pti

Ro

me

Pin

e H

ill

Bo

ga

lus

a

Ora

ng

e

Sp

rin

gfi

eld

Vic

ks

bu

rg

Ma

ys

vil

le

Pe

nsa

co

la

New

po

rt

Hen

de

rso

n

Xa

lap

a

Th

ou

sa

nd

To

ns

Source: IP analysis, chart includes Saturating Kraft & Gypsum liner


$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

0 5,000 10,000 15,000 20,000 25,000 30,000

Ma

nu

fac

turi

ng

Co

sts

($

/To

n)

Cumulative Annual Capacity (Thousand Tons)

Cash Costs + Delivery to Chicago

Rome 2

Global Cost Curve | 85% of Capacity in 1st & 2nd Cost Quartiles

Source: Poyry Costrac 2Q14 42# Global Kraft Linerboard cash cost per ton delivered to Chicago

Prattville 1 Orange 2

Prattville 2

Mansfield 3

Cedar

Rapids 2

Savannah 8

Valliant 1

Savannah 6 Campti 2

Mansfield 1 Springfield 2

Vicksburg 6

Rome 1

Campti 1

Pensacola 5

Bogalusa 7

Maysville 1

Pine Hill 1

Henderson 1

Bogalusa 8

27

Orange 1


NA Industrial Packaging Relative EBITDA Margins

1 Reflects Company’s change in accounting method beginning in 2014 2 Does not include unreported 3Q14

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

Excludes the Recycling Business and revenue from trade volumes

Competitor EBITDA margin estimates obtained from public filings and IP analysis

24.4% 22.5%

20.7%

23.7% 21.5%

17.4%

25.5%

21.3%

IP PCA RockTenn

3Q13 2Q14 3Q14

23.7%

21.5%

17.6%

TTM2

TTM

TTM

28

RKT

reports

11/4

1


Note: IP Mix, 2013. Industry Mix, 2012.

Source: IP Analysis

IP Well-Positioned in Attractive Customer Segments

58% 27%

15%

IP Box Shipments by Segment

29

Market Segment IP

Mix

Industry

Mix

Food & Beverage 58% 47%

Processed Food

Protein

Produce

Beverage

Other Non-Durable Goods 27% 36%

Paper Products

Chemicals & Pharma

Other Non-Durables

Durable Goods & Distribution 15% 16%

Building Materials

Other Durables

Shipping & Distribution


Industrial Packaging | U.S. Corrugated Market1

Total Box Volume 3Q YoY

IP +1.1%

FBA Industry +1.7%

West of Rockies 19% of Volume

East Of Rockies 81% of Volume

IP Volume

3Q YoY Absolute

IP +2.3%

FBA +1.9%

3Q YoY Absolute

IP (3.7%)

FBA +0.9%

IP Select Segment

Performance (YoY)

•Poultry

•Shipping &

Distribution

•Beverage

•Processed Foods

•Beef

•Agriculture

(West Coast)

1Corrugator plant sales

Source: Fibre Box Association (FBA), IP Analysis


U.S. Containerboard | Industry Statistics

200

300

400

500

600

700

800

$/short ton

Containerboard Pricing

Linerboard Medium

Source: RISI

31

$200

$300

$400

$500

$600

$700

$800

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


Economic indicators and US box demand

Source: Global Insight US Short Term Forecast, April 2014; RISI World Forecast- North America, March 2014

70

80

90

100

110

120

130

20

01

20

02

20

03

20

04

20

05

2006

2007

2008

20

09

20

10

20

11

20

12

20

13

Ind

exed

10

0 =

20

01

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


373 378

390 396

405 401

380 379 380

391 391 395

390

374

345

357 359 360 360 365

371 376 373

381

250

275

300

325

350

375

400

425

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

BS

F

RISI Forecast

U.S. Corrugated Packaging | Forecast

33

Historical Data Source: Fibre Box Association

2014-2018: 1.1% CAGR (RISI - 2014 5-yr forecast)


Wood / OCC Fiber Breakeven

25

50

75

100

125

150

175

200

225

25 30 35 40 45 50 55 60 65

OCC Cost Delivered 1

$/ton

Wood Chip Cost Delivered 2

$/ton

Wood Advantaged

OCC Advantaged

2012

2Q14 1Q14

3Q14

34

2013

1 RISI national average OCC price, adjusted for delivery 2 Forest2Market chip equivalent basis index price


Grupo Orsa | Company at a Glance

35

Paulinia Mill

Manaus Box Plant

Box plant

Mill

Rio Verde Box Plant

Paulinia Box Plant Suzano Box Plant Franco da Rocha Mill

Nova Campina Mill

2013 Sales of US$335 Million

Three Containerboard Mills

Four Box Plants

~400 Thousand Tons of Containerboard

Capacity

Corrugated Supply Position ~8%

Sustainable Fiber Supply

Closed Acquisition on January 15, 2013

Purchased Remaining 25% in April 2014


IP Global Coated Paperboard Footprint | Total of 3.5 Million Tons

Coated paperboard mill

North America

1.6 Million Tons

Europe/Russia

370,000 Tons

Asia Sun Paper JV

1.5 Million Tons

36


25%

40%

58%

4%

24%

13%

22%

9%

14%

22%

7%

60%

19%

9% 6%

11%

15% 9%

15%

3%

14%

1%

Folding 2.2 MM tons

Cupstock 1.0 MM tons

Coated Bristols

0.4 MM tons

Liquid 1.4 MM tons

Supply Position by Segment

North American Solid Bleached Sulphate Capacity

Folding includes tobacco; Liquid Packaging includes Aseptic

Source: 2012 RISI Capacity (includes Ctd. Bristols); AF&PA; IP Analysis

CAGR Flat CAGR +2% CAGR (4%) CAGR (1%)

IP 25%

MWV 23%

GP 13%

Rank Group 13%

Clearwater 12%

RKT 7%

Weyco 4%

Coated Paperboard 2013 Supply Position (SBS)

6.3 MM Tons

37


North American Consumer Packaging at a Glance

• 2013 Sales: $1.5 B

• 1.6 MM SBS sales tons

• 78% external

• 2013 Sales: $0.6 B

• Consumes almost 0.2 MM

tons of IP’s Coated

Paperboard

• Hot and cold cups

• Food buckets & containers

• Lids

Specialty Coffee

Theater, Convenience,

Hospitality

Folding Carton

560m tons

Cupstock 400m tons

NA Consumer Packaging Business

Coated Paperboard

Foodservice Business

Quick Service

Commercial Printing

240m tons

Coated Paperboard mill Foodservice plant

38


$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

0 2,500 5,000 7,500 10,000 12,500 15,000

Man

ufa

ctu

rin

g C

osts

$/T

on

Cumulative Annual Capacity (Thousand Tons)

Cash + Delivery to Chicago

Coated Paperboard Global Cost Curve | IP NA Capacity in 1st Quartile

Based on Poyry’s 2014 CostTrac model at 2nd Quarter, 2014, Prices and Exchange Rates. 57# Folding Carton Board

Augusta 3 Texarkana 1

Augusta 1

Riegelwood 15

39

Riegelwood 18


NA Coated Paperboard Historical Financials

219 200 187 211

251

358

254 263

15%

13%

11%

15% 16%

22%

17%

14%

0%

5%

10%

15%

20%

25%

0

50

100

150

200

250

300

350

400

2006 2007 2008 2009 2010 2011 2012 2013

EBITDA

$ MM

EBITDA

%

Segment operating profit before special items

40


NA Consumer Packaging Relative EBITDA Margins

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

Competitor adjusted EBITDA margins obtained from public filings and IP analysis; reflects Food & Beverage segment

18.0%

14.0% 12.9%

13.7%

18.6%

15.9%

IP MWV

3Q13 2Q14 3Q14

41

12.1% 13.0%

TTM

TTM


U.S. Coated Paperboard | Industry Statistics

$450

$550

$650

$750

$850

$950

$1,050

$1,150

$1,250

$/short ton Folding Cartonboard Prices

Bleached Unbleached Recycled

Source: RISI

42


Consumer Packaging 2H 2014 Earnings Runway

43

1H2014

• 1Q severe weather

• Volume constrained during

heavy outage period

• Price increases announced

• High input costs

• Kwidzyn project construction

and start-up

2H2014

Lower outages / Volume pickup

Pricing realizations

Incremental cupstock growth due

to shift from foam to paper

Double digit foodservice volume

growth driving solid demand for

coated paperboard

Mix improvements associated with

seasonality (hot cup season)

Input costs remain high,

above expectations

Kwidzyn project ramp-up


Paper Cups Replacing Foam | Environmental Benefits of Paper Driving Demand

44

Every 1 Billion Foam & Plastic Cups

Converted to Paper = 15 – 25 Thousand Tons of

Coated Paperboard Demand

Foam 31

Plastic 21

Paper Hot 18

Paper Cold

38

2014 U.S. Cup Demand (Billions of Units)

Source: Technomic 2012 Disposables Study, RISI, AF&PA, IP Analysis

Hold&Go®

Individually

Wrapped Cup

ecotainer®


IP Global Papers Footprint | Total of 4.4 Million Tons1

1 Does not include llim JV

Brazil

1.1 MM

N. America

2.0 MM

Europe

0.7 MM

Russia

0.4 MM

Uncoated paper mill

India

0.2 MM

ILIM

0.2 MM


Printing Papers | 3Q14 vs. 3Q13 Change in Segment Operating Profit1 ($MM)

1Before special items

Europe

$2

North America

Pulp

$17 North America

Papers

$13

Brazil

$13

India

$7


GP 15%

IP 13%

Champion 10%

Boise 10% Willamette

9%

WY 9%

Union Camp

9%

Other 25%

1998 Producer Position Top 2 = 28%

Top 4 = 48%

2014 Producer Position Top 2 = 57%

Top 3 = 67%

Note: 2014 producer position adjusted for GP Crossett, Boise International Falls, Lincoln Paper, and IP Courtland.

1998, 2014 Source: Poyry Consulting, Fisher International, IP Strategic Planning

NA Uncoated Freesheet Supply | Supply Positions

47

Domtar 38%

IP 19%

PCA 10%

GP 10%

Other 24%


0%

20%

40%

60%

80%

100%

Riverdale Ticonderoga Eastover Georgetown Franklin Riegelwood Pensacola

% G

rad

e / M

ix

Pulp Non UFS Uncoated Freesheet Coated Paperboard Containerboard 1

Printing Papers & Pulp Mill System | 3.4MM Tons Capacity

1 Non UFS includes Kraft Bag and Uncoated Bristols

Source: IP Finance

Paper

(M Tons) 650 300 730 320 0 0 0

Pulp

(M Tons) 0 0 110 360 300 475 165

Tenant Mills

Cap

ac

ity

48


Uncoated Freesheet Global Cost Curve | 95% of Capacity in 1st & 2nd Cost Quartiles

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

0 2,500 5,000 7,500 10,000 12,500 15,000 17,500 20,000 22,500 25,000 27,500 30,000 32,500 35,000

Ma

nu

fac

turi

ng

Co

sts

$/T

on

Cumulative Capacity (Thousand Tons)

Cash + Delivery to Chicago

Ticonderoga 7

Based on Poyry’s 2013 CostTrac model at 2nd Quarter, 2014, Prices and Exchange Rates.

Eastover 2

Eastover 1

Riverdale 15

Riverdale 16

Georgetown 1

Ticonderoga 8

50# Roll Offset

49


317

575

657 657

513 539

598

499

310

10%

16%

19% 19% 18%

20%

22%

18%

12%

0%

5%

10%

15%

20%

25%

0

200

400

600

800

1,000

2005 2006 2007 2008 2009 2010 2011 2012 2013

EBITDA %

EBITDA $ MM Paper Only

North American Printing Papers | Attractive Margins & Cash Flow

Tons (MM)

4.0 4.1 3.9 3.5 3.0 2.8 2.7 2.7 2.6


50


N.A. Printing Papers Relative EBITDA Margins

14.2%

12.0% 12.0% 12.8%

17.9%

14.5%

IP Domtar

3Q13 2Q14 3Q14

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

Competitor EBITDA margin estimates obtained from public filings and IP analysis

EBITDA margins reflect the Printing Papers and Pulp businesses

12.4%

TTM TTM

13.6%

51


NA Uncoated Freesheet Consumption | Developed World Convergence

North America

Japan

W. Europe

High Broadband Countries1

NA UFS MM

Tons

9

7

BRIC Countries

1 Korea, Singapore, Denmark, Netherlands, Switzerland

Source: Poyry Consulting, IP Strategic Planning

16

52

0

5

10

15

20

25

30

35

40

45

50

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

UF

S C

on

su

mp

tio

n K

g p

er

Cap

ita

North America

Japan

W. Eur. w/o Greece

High Broadband

BRIC Avg.


U.S. Uncoated Freesheet Demand

Historical Data Source: AF&PA

2014 – 2018: -3.1% CAGR (RISI 2014 5-yr Forecast)

11.6 12.2 12.4

13.3 13.0 13.2

13.7 13.6 14.0 13.9

12.6 12.4 12.3 12.6

12.0 12.3

11.9

10.9

9.7 9.6 9.3

8.9 8.7 8.3 8.1 7.8

7.5 7.3

91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18

RISI Forecast

Mil

lio

n T

on

s

UFS Shipments

53


U.S. Uncoated Freesheet | Industry Statistics

$500

$600

$700

$800

$900

$1,000

$1,100

$1,200

$500

$600

$700

$800

$900

$1,000

$1,100

$1,200

$/short ton

UFS Pricing Trends

RISI 20# Cutsize RISI 50# Offset

Source: RISI

54


35%

30%

6%

4%

4%

3%

18%

Latin American Uncoated Freesheet Market

0

50

0

1,0

00

1,5

00

2,0

00

2,5

00

Brazil

Argentina

Colombia

Chile

Peru

Venezuela

Other …

Thousand Metric Tonnes

Demand

Capacity

Latin America is a Net Exporter

Demand Capacity @

91% Op. Rate* Net Exports

2.7 MM 2.8 MM 0.1 MM * Excluding Mexico

Supply & Demand

55

Source: Bracelpa/ AFCP / RISI/ Fisher/ IP Estimates; Units shown in metric tonnes

Top 6 Producers > 80%

Others

Smurfit

Kappa

Ledesma

Celulosa

Argentina

Propal

IP

Suzano


IP do Brasil | At a Glance

Mogi Guacu Luiz Antonio Três Lagoas IP Brazil

Paper

Machines 4 2 1 7

UFS

Capacity (Thousand MT)

424 367 234 1,025

Market Pulp (Thousand MT)

8 103 0 111

56

Units shown in metric tonnes


IP do Brasil | Historical Financials

57

280

320

230

300 320

293

334

33% 33%

24%

27% 27% 26%

31%

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

EBITDA

US$ MM EBITDA

Margin


Tons (MM)

0.9 1.0 1.2 1.2 1.3 1.3 1.3


Margin Improvement From Geography Shift

58

Europe & Others Other Latin America Brazil

~3.5X

~1.8X

Improve Geographic Mix from 75% to 100% in Latin America

2013

U.S. $

EBITDA / ton Avg FX 2.15

U.S. $132 U.S. $252 U.S. $455


India Will Become #2 Global Market in Uncoated Freesheet

Total Uncoated Freesheet

Consumption 2009


Consumption 2015


Consumption 2025

13,100

10,400

6,800

3,950

3,800

3,700

1,400

1,350

1,350

1,250

1,000

China

NA

WE

Japan

Rest of Asia

India

LA exc. BZ

Brazil

Indonesia

CIS inc. Ru

C&EE

19,700

8,500

7,450

5,950

4,400

2,850

2,600

2,580

2,200

1,950

1,200

China

India

NA

WE

Rest of Asia

Japan

Brazil

LA exc. BZ

Indonesia

CIS inc. Ru

C&EE

15,650

9,200

6,500

5,400

4,000

3,600

1,750

1,750

1,650

1,475

1,100

China

NA

WE

India

Rest of Asia

Japan

LA exc. BZ

Brazil

Indonesia

CIS inc. Ru

C&EE

Source: IP Study w McKinsey, India update : IP Study w Poyry

59


Global Market Pulp | Bleached Softwood Pulp

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

2013 2017

Mil

lio

n M

etr

ic T

on

ne

s

2013 – 2017

CAGR

3.7%

3.0%

1.2%

(2.3%)

(2.9%)

1.0%

Source: PPPC; Units shown in metric tonnes

Global Demand = 23.9 → 24.4MM mtpy

CAGR = 0.5%

60


Global Market Pulp | Fluff Pulp Demand

North America North America

Latin America Latin America

Western Europe Western Europe

Eastern Europe Eastern Europe

Asia

Asia

Other

Other

0

1

2

3

4

5

6

7

2013 2017

Mil

lio

n M

etr

ic T

on

ne

s

2013 – 2017

CAGR

4.7%

6.1%

2.3%

1.7%

1.1%

2.2%

Source: IP analysis; Units shown in metric tonnes

Global Demand = 5.0 → 5.8MM mtpy

CAGR = 3.6%

61


Pulp mill

62

IP Global Pulp Capacity | Total of 3.1 Million Metric Tonnes

Ilim JV

1.5 MM

Europe / Russia

0.3 MM N. America

1.2 MM

L. America

0.1 MM


Global Fluff Pulp Industry | Trade Flows – 2013

Net Import Locations Net Export Locations

Global Demand = 5.0MM mtpy

Import

(0.8)MM

86.7% Export

4.3 MM

Import

(0.4)MM

Import

(0.5)MM

Import

(2.0)MM

Source: PPPC, IP Analysis; Units shown in metric tonnes


Pulp | Industry Statistics

0

200

400

600

800

1,000

1,200

USD/admt Global Pulp Prices

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

Source: RISI

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

64


Ilim Joint Venture | Low-Cost, Well-Positioned

Corrugated

Packaging Kotlas /

Koryazhma

Ust-

Ilimsk

Bratsk


World Demand for Global Market Pulp | 1995-2025

66

0

10

20

30

40

50

60

70

80

1995 2000 2005 2010 2011 2015 2020 2025

Mil

lio

n M

etr

ic T

on

ne

s

Western Europe

North America

China

Rest of Asia

Eastern Europe

Forecast

0

5

10

15

20

25

2011-2025

China

14.7 MM

Rest of

World

4.8 MM

Source: Poyry World Fibre Outlook 2012; Units shown in metric tonnes

China will account

for 75% of

incremental growth


ILIM JV Overview

2007 - 2011

• IP purchased 50% of ILIM Holding in 2007 ($640MM)

• IP received $234 million in cash dividends to date

• IP EPS accretive – cumulative $213MM in IP equity earnings to date

• Record ILIM Holding earnings in 2011 - $530 million EBITDA

2012 - 2013

• High return, strategic capital build out (Bratsk Mill new fiber line,

Koryazhma Mill PM-7)

2014

• Capital projects ramp up

67


2009 2010 2011 2012 2013

Sales Volume (Million short tons) 2.6 2.8 2.8 2.9 2.7

Sales ($B) 1.3 1.9 2.2 2.0 1.9

Capital Employed ($B) 1.2 1.2 1.6 2.1 2.4

Debt ($B) 0.4 0.5 0.9 1.2 1.5

Operating EBITDA ($MM) 197 516 591 291 208

F/X Gain (loss) (35) 12 (60) 39 (80)

EBITDA ($MM) 163 528 531 330 128

EBITDA Margin 12% 28% 24% 17% 7%

Depreciation ($MM) 120 121 124 134 177

EBIT ($MM) 43 407 406 196 (49)

Interest Expense ($MM) 28 18 7 6 39

Net Income (loss) ($MM) (19) 266 299 132 (72)

IP Equity Earnings (loss) ($MM) (27) 103 134 56 (46)

Dividends (to IP) ($MM) 50 34 85 0 0

Ilim JV results are IFRS basis.

68

Ilim Joint Venture | Full Year Financials


Ilim Joint Venture | Pro Forma View – As Shared on February 4th Earnings Call

$ Million ‘09-‘12

Average1 2013 2014

Depreciation $125 $177 ~$225

Interest Expense $15 $39 ~$75

69

Ilim JV figures are on an IFRS basis with the exception of IP Equity Earnings which is US GAAP. IP position in joint venture is 50%.

* Assumes stable FX & current pulp prices 1 See slide #68 for yearly results and additional financial measures

$388

$128

$270

$350 - $400*

~$550 - $600*

'09 - '12 Average 2013 2H2013 Annualized

2014E Fully Ramped Potential

EBITDA Ramp-Up $MM

1

~$100-$120

IP Equity

Earnings* ~$20-$40

IP Equity

Earnings*


Ilim Joint Venture | Bratsk Project Ramp-Up

63%

75% 82%

89% 94%

4Q13 1Q14 2Q14 3Q14 4Q14F

% o

f F

ull P

rod

ucti

on

Ramp-Up Performance

Steady progress throughout 2014

Significant outage in early 3Q

On track to ramp up to full production by year end


Market Pulp Global Cost Curve | Ilim Bleached Softwood Kraft Market Pulp

Ust-Ilimsk

Based on Poyry’s 2014 CostTrac model at 2nd Quarter, 2014, Prices and Exchange Rates. Units shown in metric tonnes

$0

$200

$400

$600

$800

$1,000

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

Ma

nu

fac

turi

ng

Co

sts

($

/Me

tric

To

nn

e)

Cumulative Capacity (Thousand Metric Tonnes)

Cash + Delivery to Beijing

71

Bratsk

Bratsk

(Pre-Project)


Operating Business EPS

2005-2006 as originally reported

2007-2011 adjusted for elimination of the Ilim JV reporting lag

2005-2010 Net Earnings from continuing operations and before special items; 2010 onward reflects Operating Earnings

xpedx is reflected as a Discontinued Operation from 2010 forward.

72

.36 .31

.29

.12 .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

.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

2005 2006 2007 2010 2008

Impact of Mineral

Rights Gain

2009

.83

2011

.93

Final Land Sale

2012 2013 2014


Balance Sheet | Debt Coverage – As Shared on February 4th Earnings Call

$ B

illio

n

$4.1 Pension Gap

3.8x

2.9x

$10.1 Balance

Sheet

Debt

$9.5 Balance

Sheet

Debt

$1.2 Op. Lease Adj. $1.2 Op. Lease Adj.

$2.2 Pension Gap

[2.7x]1 [2.3x]2

2013 2012

Adjusted Debt reflects gross balance sheet debt plus pension gap and operating leases (Moody’s Methodology)

Adjusted EBITDA incorporates pension and lease expense adjustments (Moody’s Methodology) 1 Simple Debt Coverage: Balance Sheet Debt / 2012 Reported EBITDA of $3.7B 2 Simple Debt Coverage: Balance Sheet Debt / 2013 Reported EBITDA of $4.1B 3 AA Corporate Bond Rate

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

Reduced Balance Sheet debt $2.5B

since Temple-Inland acquisition;

$650MM paid in 2013

Pension Gap decreased by $1.9B

due to asset performance and

discount rate3 increase

Achieved Moody’s debt coverage

target of < 3X adjusted EBITDA

as of year end 2013

$1.8B cash balance at year end


$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040

Mil

lio

n

Debt Maturities Monetization & Other

1 Timber Monetization debt and other debt intended to be rolled over or refinanced, (Sun joint venture debt and other foreign subsidiary debt)

Debt Maturity Profile | Maturities as of December 31, 2013

74

1


25%

50%

75%

100%

125%

$0

$300

$600

$900

$1,200

$1,500

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014E

Maintenance Regulatory Strategic Cost Reduction % of Depreciation

$ Million % of Depreciation

Reflects continuing operations

Capital Spending

75

~$1,400


Pension Plan Update | As of December 31, 2013

• No contribution 1960-2005; $2.5B

contribution 2006-2011

• In 2012, no IP plan contribution and

$44MM for TIN plan

• $31MM contribution made in 2013

• 2014 pension contribution ~$450MM

• Further contributions expected over

2015/16 timeframe

($0.2)

($3.2)

($2.8)

($1.5)

($2.4)

($2.7)

($4.1)

($2.2)

Billio

n

Year-End Funded Status1

76

1 Reflects status as of December 31


Pension Plan Update1 | As of December 31, 2013

231 195

342

545

366

$0

$150

$300

$450

$600

2010 2011 2012 2013 2014E

Millio

n

Annual Pension Expense2 Key Variables 2012 2013 2014E

Assumed Rate of Return

8.0% 8.0% 7.6%

Discount Rate 5.1% 4.1% 4.9%

Average Annualized Returns3

2013 14.1%

Past Five Years 13.7%

Past Ten Years 8.8%

Portfolio Asset Allocation at 12-31-13

Target Actual

Equity 42% - 53% 49%

Bonds 30% - 40% 32%

Real Estate 6% – 12% 10%

Other 3% - 15% 9% 1 2013 and onward include Temple-Inland pension plan 2 Non-cash expense for U.S. plans only 3 Through December 2013

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 241 observations

77


Maintenance Outages Expenses | 2014

$ Million 1Q14 2Q14 3Q14 4Q14F 2014F

Industrial Packaging $69 $91 $26 $47 $233

North America 69 91 23 47 230

Brazil 0 0 3 0 3

Printing Papers Total $31 $60 $16 $47 $154


Europe 1 24 1 0 26

Brazil 0 1 0 9 10

India 0 0 1 0 2

Consumer Packaging $20 $26 $1 $11 $58


Europe 0 7 0 0 7

Total Impact $120 $177 $43 $105 $445

78


19

127 167

99 88 46

118 123

48

300 49

30

1 70

276 60 58

69

Maintenance Market

Coated Paperboard1

6

22 13 1

24 24 20

53 27

24

59

2

38

18

53

19

58

16 20 1

North American Downtime

1 8 14

21 20 2

15 19

12

Containerboard Uncoated Papers2

Market Pulp

Th

ou

sa

nd

To

ns

Th

ou

sa

nd

To

ns

Th

ou

sa

nd

To

ns

Th

ou

sa

nd

To

ns

1 Augusta PM#2 was permanently shutdown in March 2013 (36000 tons / quarter) 2 Courtland shutdown of two machines in 4Q13; shutdown complete in February 2014

319

49

176

79

197

100

158

322

178 181

117

0


Total Cash Cost Components | 3Q14 YTD

Fiber 31%

Freight 16%

Materials 14%

Labor 12%

Energy 10%

Overhead 9%

Chemicals 8%

80

North American mills only


2007 2008 2009 2010 2011 90

95

100

105

110

115

120

125

130

2012 2013 2014

U.S. Mill Wood Delivered Cost Trend | 1% Increase vs. 2Q14 Average Cost

Cost Indexed to January 2007 values

81


2007 2008 2009 2010 2011 40

60

80

100

120

140

160

180

200

2012 2013 2014

Cost Indexed to January 2007 values

U.S. OCC Delivered Cost Trend | 5% Decrease vs. 2Q14 Average Cost

82


2014 Global Consumption | Annual Purchase Estimates for Key Inputs

Commodity U. S. Non – U. S.

Energy

Natural Gas (MM BTUs) 65,000,000 11,000,000

Fuel Oil (Barrels) 880,000 400,000

Coal (Tons) 490,000 700,000

Fiber Wood (Tons) 52,000,000 9,000,000

Old Corrugated Containers / DLK (Tons) 4,500,000 430,000

Chemicals

Caustic Soda (Tons) 370,000 95,000

Starch (Tons) 430,000 102,000

Sodium Chlorate (Tons) 180,000 45,000

LD Polyethylene (Tons) 40,000 -

Latex (Tons) 16,000 5,000

Does not include Asia or volume consumed by joint ventures (Sun JV, Ilim JV) Estimates are based on normal operations and may be impacted by downtime Excludes annual consumption related to Courtland operations terminated in 1Q14

83


Investor Relations | Contact Information

Jay Royalty • Vice President, Investor Relations

901-419-1731

[email protected]

Michele Vargas • Director, Investor Relations

901-419-7287

[email protected]

Betty Groom • Financial & Administrative Analyst

901-419-4250

[email protected]

84

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