investor roadshow i april 30, 2020investor roadshow i april 30, 2020 2 forward-looking statements...
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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
Investor Roadshow I April 30, 2020 4
IP Investment Thesis
Our Vision
To be among the most successful,
sustainable and responsible
companies in the world
Our Mission
To improve people’s lives, the planet and
our company’s performance by
transforming renewable resources into
products people
depend on every day
Investor Roadshow I April 30, 2020 5
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
Investor Roadshow I April 30, 2020 6
“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
Investor Roadshow I April 30, 2020 7
Global Citizenship
Investor Roadshow I April 30, 2020
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
Investor Roadshow I April 30, 2020
BUILDING A BETTER FUTURE FOR PEOPLE, THE PLANET AND OUR COMPANY
Vision 2030 | Four Goals. Eight Targets.
9
Investor Roadshow I April 30, 2020
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
Investor Roadshow I April 30, 2020
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
Investor Roadshow I April 30, 2020
$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
Investor Roadshow I April 30, 2020
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
Investor Roadshow I April 30, 2020
$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
Investor Roadshow I April 30, 2020
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%
Investor Roadshow I April 30, 202016
First Quarter 2020 Results
$896
$1,002
$802
Adjusted EBITDA1
($MM)
4Q19
1Q19
1Q20
Solid performance in a rapidly changing environment:
$802MM Adjusted EBITDA1
$363MM Free Cash Flow2 generation
Strong operational performance and cost management:
Leveraged system flexibility to mitigate impact of
Bogalusa and Rome production loss
COVID-19:
Early actions to safeguard people and operations
Prudent actions to further strengthen liquidity
Strong immediate demand for corrugated packaging
and pulp
Significant demand decline for printing papers
Investor Roadshow I April 30, 202017
1Q19 4Q19 1Q20
Sales ($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
Investor Roadshow I April 30, 2020
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
Investor Roadshow I Q2 2018 19
COVID-19 Update
Investor Roadshow I April 30, 2020
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
Investor Roadshow I April 30, 2020
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.
Investor Roadshow I April 30, 2020 22
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
Invest to Create Value
2020 capex reduced from
$0.9-$1.0B to $0.6B
Funding mission-critical needs
Return Cash to Shareholders
1Q20 dividend paid ~$0.2B
Share repurchases suspended
Maintain Strong Balance Sheet
No change to target leverage ratio
Pension plan sufficiently funded
COVID-19 Update
Investor Roadshow I April 30, 2020
$3.4
$2.0 $1.8 $1.6 $1.5
YE16 YE17 YE18 YE19 3/31/20
Pension Gap($ Billions)
Balance Sheet | Financial Strength
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
Investor Roadshow I April 30, 2020
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
Investor Roadshow I April 30, 2020
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
Investor Roadshow I April 30, 202026
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
Investor Roadshow I Q2 2018 27
Business Overview
Investor Roadshow I April 30, 2020
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
Investor Roadshow I April 30, 2020 29
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
$2.2B1
International Paper 2019 Global Portfolio in Packaging,
Pulp and Paper
Positioned in attractive markets with low-cost assets that generate strong free
cash flow and returns that exceed our cost-of-capital
Total Sales
Ilim JV
Investor Roadshow I April 30, 2020
Industrial
Packaging
Printing
Papers
Global
Cellulose
Fibers
Revenue by
Business1
North
AmericaBrazil
EMEA
Russia
India
% Total
Adjusted
EBITDA2
30
1st
1st
2nd
1st 1st
*Fluff pulp capacity based on Poyry
1st*
Strong Domestic Positions
North America
Latin America
EMEA
Russia
Ilim
Pulp
69%12%
19%
84%
6%
5%
1%
4%
Investor Roadshow I April 30, 2020 31
% of export volume
shipped to select regions
IP N.A. Exports | Leveraging Strategic Export Opportunities
Latin America
EMEA
Asia~45%
~20%
~10%
~45%
~40%
~40%
Fluff Pulp1
(~90% of N.A. production)
Containerboard(~10% of N.A. production)
Investor Roadshow I April 30, 2020 32
~50%
% of export volume
shipped to select regions~30%
Brazil & Russia Exports | Leveraging Strategic Export Opportunities
Latin America
EMEA Asia~70%
~45% ~5%
Softwood Pulp(~50% of production)
Uncoated Freesheet(~50% of Brazil production)
Ilim
Pulp
Investor Roadshow I April 30, 2020
0.4 0.5
0.8
1.3 1.31.6
2.0
2.52.7 2.7
2.42.6
3.02.8
13%15% 15%
19%18%
20%19%
22%24% 24%
22% 22%23%
22%
0%
5%
10%
15%
20%
25%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Tho
usa
nd
s
33
Bu
sine
ssA
dj. E
BITD
A1
($B
)
Weyco Packaging
Acquisition & Integration
Ad
j. E
BIT
DA
1%
TIN Acquisition &
Integration
N.A. Industrial Packaging | Track Record of Success
Investor Roadshow I April 30, 2020
Global Economic Recession
Investor Roadshow I Q2 2018 34
Appendix
Investor Roadshow I April 30, 2020
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
Investor Roadshow I April 30, 2020
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%
1995 Producer Position
N.A. Containerboard | Supply Positions
Investor Roadshow I April 30, 2020
Investor Roadshow I April 30, 2020 37
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
Investor Roadshow I April 30, 2020 38
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
Investor Roadshow I April 30, 2020 39
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
Investor Roadshow I April 30, 2020 40
Linerboard Global Cost Curve | 93% of Capacity in 1st Quartile
Investor Roadshow I April 30, 2020
$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
Investor Roadshow I April 30, 2020 41
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
Investor Roadshow I April 30, 2020 42
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
Investor Roadshow I April 30, 2020
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
Investor Roadshow I April 30, 2020
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
Investor Roadshow I April 30, 2020 45
~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
Investor Roadshow I April 30, 2020
Investor Roadshow I April 30, 2020
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
Investor Roadshow I April 30, 2020 47
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%
Investor Roadshow I April 30, 2020 48
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
Investor Roadshow I April 30, 2020 49
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
Investor Roadshow I April 30, 2020 50
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
Investor Roadshow I April 30, 2020
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
Investor Roadshow I April 30, 2020
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 Producer Position
2019 Producer Position
1998, 2018 Source: Poyry Consulting, RISI, IP analysis2019 Producer Position based off of 3Q 2019 Capacity
52
N.A. Uncoated Freesheet Supply | Capacity Positions
Investor Roadshow I April 30, 2020
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
Investor Roadshow I April 30, 2020
$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
Investor Roadshow I April 30, 2020
Investor Roadshow I April 30, 2020 56
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
Investor Roadshow I April 30, 2020 57
$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
$/short ton
Uncoated Freesheet Pricing Trends
RISI 20# Cutsize RISI 50# Offset
Source: RISI
U.S. Uncoated Freesheet | Industry Statistics
Investor Roadshow I April 30, 2020 58
Latin America Uncoated Freesheet Market
38%
30%
7%
4%
4%
3%
14%
Latin America is a Net Exporter
DemandCapacity @
88% Op. RateNet Exports
2.5 MM 2.7 MM 0.2 MM
0 500 1,000 1,500 2,000 2,500
Brazil
Argentina
Colombia
Chile
Peru
Other LatAm
Thousand Short Tons
Demand Capacity
Supply & DemandLatin America Capacity
LatAm analysis excludes MexicoSource: Ibá / AFCP / RISI / Fisher / IP Estimates
Smurfit
Kappa
Ledesma
Celulosa
Argentina
Propal
IP
Others
Suzano
3.0MM
tons
Investor Roadshow I April 30, 2020 59
280 317
228 296
320 293 334 326
275 264297
329
251
33% 33%
24%
27%27%
26%
31% 31% 31%29%
31%34%
26%
0%
5%
10%
15%
20%
25%
30%
35%
40%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
-
50
100
150
200
250
300
350
400
Ad
j. E
BIT
DA
1%
Bu
sine
ss
Ad
j. EB
ITDA
1($
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
Investor Roadshow I April 30, 2020
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
Investor Roadshow I April 30, 2020 61
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
Investor Roadshow I April 30, 2020 62
2013 2014 2015 2016 2017 2018 2019
Sales Volume (Million metric tonnes) 2.4 2.9 3.0 3.2 3.1 3.3 3.2
Sales ($B) 1.9 2.1 1.9 1.9 2.2 2.7 2.2
Debt ($B) 1.5 1.4 1.2 1.5 1.6 1.6 2.2
Adj. Operating EBITDA ($MM) 203 459 694 680 695 1,207 706
F/X Gain (Loss)1 ($MM) (80) (674) (188) 63 37 (204) 79
EBITDA ($MM) 123 (215) 506 743 732 1,003 785
Depreciation ($MM) 176 188 128 121 151 156 134
EBIT ($MM) (53) (403) 378 622 581 847 651
Interest Expense ($MM) 39 69 52 81 88 70 82
Net Income / (Loss) ($MM) (72) (359) 237 385 362 571 424
IP Equity Earnings / (Loss) ($MM)(46) (194) 131 199 183 290 207
Dividends (to IP) ($MM) 0 56 35 60 134 128 246
ILIM Joint Venture | Full Year Financials
Investor Roadshow I April 30, 202063
$ 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
Investor Roadshow I April 30, 2020 64
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
Investor Roadshow I April 30, 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
Investor Roadshow I April 30, 2020 66
Reduced balance sheet debt by $0.9B
Limited near-term maturities
Pension plan sufficiently funded
$0.5B cash balance at year-end
2019 Highlights
Balance Sheet | Financial Strength
Pension Gap
Balance
Sheet
Debt
Balance
Sheet
Debt
Pension Gap
Pension GapPension Gap
$9.3$11.3 $11.2 $10.7
$9.8
$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
Pension GapPension 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
Investor Roadshow I April 30, 2020 67
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
Investor Roadshow I April 30, 2020
342
545
387
447
364
290
209
93
$0
$150
$300
$450
$600
2012 2013 2014 2015 2016 2017 2018 2019
Millio
n
Annual Pension Expense2
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
Investor Roadshow I April 30, 2020 69
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
Pension plan sufficiently funded
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
Investor Roadshow I April 30, 2020
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
Investor Roadshow I April 30, 2020
Investor Roadshow I April 30, 2020
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
Investor Roadshow I April 30, 2020
$ 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
Investor Roadshow I April 30, 2020 73
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
Investor Roadshow I April 30, 2020
Total Cash Components | 2019
74
Fiber
37%
Materials
19%Labor
15%
Overhead
14%
Chemicals
7%
Energy
8%
North American mills only
Investor Roadshow I April 30, 2020 75
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
Investor Roadshow I April 30, 2020 76
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
Investor Roadshow I April 30, 2020 77
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
Investor Roadshow I April 30, 2020 78
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
Investor Roadshow I April 30, 2020 79
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
Investor Roadshow I April 30, 2020 80
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
Investor Roadshow I April 30, 2020
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
gap. EBITDA is adjusted to include lease and pension adjustments (non-GAAP)
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
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Investor Roadshow I April 30, 2020
FootnotesSlide 181 Before special items
Slide 221 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 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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Investor Roadshow I April 30, 2020
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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Investor Roadshow I April 30, 2020
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 661 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 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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Investor Roadshow I April 30, 2020
Contact Information
Investor Relations
Guillermo Gutierrez
+1-901-419-1731
Michele Vargas
+1-901-419-7287
Media
Thomas Ryan
+1-901-419-4333
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