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Investor Roadshow I May 28, 2019

Investor Roadshow I May 28, 2019 2

Forward-Looking Statements

Certain statements in this presentation may be considered forward-looking statements. Words such as “expects”, “anticipates”, “estimates”, “believes”

and similar expressions identify 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 indebtedness and changes in interest rates; (ii) industry conditions, including but not limited

to changes in the cost or availability of raw materials, energy and transportation costs, competition, cyclicality and changes in consumer preferences,

demand and pricing for International Paper 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

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 International

Paper experiences a material disruption at one of its manufacturing facilities; (vi) risks inherent in conducting business through joint ventures; (vii)

International Paper’s ability to achieve the benefits expected from strategic acquisitions, divestitures, restructurings and capital investments; and (viii)

other factors that can be found in International Paper’s press releases and U.S. Securities and Exchange Commission (“SEC”) filings. 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

International Paper’s SEC filings. International Paper does not assume and specifically disclaims any obligation to update any forward-looking

statements, whether as a result of new information, future events or otherwise, except as required by law.

Statements Relating to Non-GAAP Measures

During the course of this presentation, certain non-U.S. GAAP financial measures may be presented. A reconciliation of all presented non-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 20.5% 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.”

Investor Roadshow I Q2 2018 3

Investment Thesis


IP Investment Thesis

Our Vision

To be among the most successful,

sustainable and responsible

companies in the world

Our Mission

To improve people’s lives, the planet and

our company’s performance by

transforming renewable resources into

products people

depend on every day


IP Investment Thesis | About Us

We are one of the world’s leading producers of fiber-based

packaging, pulp and paper

We transform renewable resources into recyclable products

people depend on every day

We do the right things, in the right ways, for the right reasons,

all of the time.

Who

We Are

What

We Do

How

We Do It


“The IP Way Forward is how

we go beyond just doing the

right things; it’s how we create

long-term value for all IP

stakeholders.”

Mark S. Sutton,

Chairman and Chief Executive Officer

IP Investment Thesis | The IP Way Forward


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

7

Renewable Natural Resources


IP Investment Thesis | Capital Allocation Framework to Maximize Value Creation

• Sustainable dividend at 40 – 50% of FCF

• Systematic share repurchases

• 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

1 Moody’s methodology is used to calculate Adjusted DebtTo 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


Annualized Dividend Share Repurchases

$1.05 $1.20

$1.40

$1.60 $1.76

$1.85 $1.90 $2.00

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

Maximizing Value Creation

Running our businesses well and generating strong FCF; Returns consistently above cost of capital

Capital Allocation Framework


Return Cash to Shareholders

Maintain Strong Balance Sheet

Invest to Create Value

$300

$200 $200 $180

2Q18 3Q18 4Q18 1Q19

~$2.1B of share repurchase authorization remaining as of 3/31/19


Balance Sheet | Financial Strength

$9.3 $11.3 $11.2 $10.7

$3.6

$3.4$2.0

$1.8

2015 2016 2017 2018

$ B

illio

n2.8x

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

3.3x

[3.2x]2

Balance

Sheet

Debt

3.2x

Target 2.5 – 2.8x5

$0.5 Op. Lease Adj.

4.0x

[2.9x]3 [2.5x]4

Balance

Sheet

Debt

Balance

Sheet

Debt

Pension Gap

Pension GapPension Gap

[2.4x]1

$0.5 Op. Lease Adj.

Balance

Sheet

Debt

Pension Gap

10

1 Simple Debt Coverage: Balance Sheet Debt / 2015 IP’s Adjusted EBITDA of $3.9B2 Simple Debt Coverage: Balance Sheet Debt / 2016 IP’s Adjusted EBITDA of $3.5B3 Simple Debt Coverage: Balance Sheet Debt / 2017 IP’s Adjusted EBITDA of $3.9B4 Simple Debt Coverage: Balance Sheet Debt / 2018 IP’s Adjusted EBITDA of $4.3B5 Adjusted Debt to Adjusted EBITDA on a Moody’s Basis


$1.6

$1.8

$2.1

$1.8 $1.9$2.0

$1.7

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

$ B

illio

ns

Transformation:

$0.5 Billion (average)

11

Free Cash Flow, a non U.S. GAAP measure, reflects cash provided by continuing operations for 2005 – 2011, based on data in the 10-K for each year at the time of filing. Free Cash Flow reflects cash provided by operations for 2012 onward. Excludes net cash pension contributions impacting 2006, 2010, 2011, 2013, 2014, 2015, 2016 & 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. For 2016 onward, see slide #57 for a reconciliation of cash provided by operations to Free Cash Flow.

Strong, Sustainable Free Cash Flow

5-Year

Average

$1.9


4.5%

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%

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

12

2018 WACC

Expanded Spread of Adj. ROIC1 |Above Cost of Capital

Increasing Shareholder Value

5-Year

Average

10.7%

Years 2013-2017 restated to reflect N.A. Consumer Packaging and xpedx as discontinued operations. Years 2005-2012 are as reported in the 10-K for each year at time of filing1 Adjusted ROIC = Adjusted Operating Earnings before Interest / Average Invested Capital [Equity (adjusted to remove pension related amounts in OCI, net of tax) + Interest-bearing Debt]


2019 Outlook | Strong & Resilient Free Cash Flow

$ Billion 20182019

Outlook

Adjusted EBITDA1 $4.3 $4.2 - $4.3

Capex $1.6 $1.4

Free Cash Flow $1.7 $2.0

Dividend $0.8 $0.8

Share Repurchase $0.7$1.2

Debt Reduction $0.5

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



Business Overview


TransformationGlobal Economic

RecessionSustainable Returns Above Cost of Capital

N.A. Weyco Pkg.Acquisition

India APPMAcquisition

$11B Divestitures

Investments:

China Sun JV

Brazil VCP Land/Mill Swap

Russia Ilim JV (2007)

Asia Pkg. Acquisition

Brazil Pkg.Acquisition

N.A. TINAcquisition

Turkey Pkg.Acquisition

Franklin Fluff Pulp Conversion

xpedx Spin-Off

RiegelwoodFluff Pulp Conversion

Valliant PM3 ContainerboardStartup

Sun JV& Asia Pkg. Sale

Madrid MillConversion

Weyco Pulp BusinessAcquisition

Path to Value Creation

2005-2007 2011+2008-2010

15

N.A. Consumer Packaging Transfer to GPIP

N.A. Ind. Pkg. Containerboard Mill Optimization


North America

Brazil

EMEA & Russia

India/Asia

$18.8BNet Sales

$1.2BNet Sales

$3.1BNet Sales

$0.2BNet Sales

Full-year 2018 net sales data; does not reflect total company sales1 Ilim JV total sales are not consolidated (IP owns 50% of JV)

$2.7B1

International Paper 2018 Global Portfolio in Packaging,

Pulp and Paper

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

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

Total Sales

Ilim JV


Industrial

Packaging

Printing

Papers

Global

Cellulose

Fibers

Revenue by

Business1

North

AmericaBrazil

EMEA

Russia

India

% Total

Adjusted

EBITDA2

17

1st

1st

2nd

1st 1st

*Fluff pulp capacity based on Poyry1 Based on 2018 sales, excludes corporate and intercompany eliminations 2 Based on 2018 Adj. EBITDA; from continuing operations before special items and non-operating pension expense; does not

reflect equity earnings from Ilim JV

1st*

Strong Domestic Positions

North America

Latin America

EMEA

Russia

India

Ilim

Pulp

69%12%

19%

85%7%

3%4%1%


% of exports volume

shipped to select regions

IP N.A. Exports | Leveraging Strategic Export Opportunities

Latin America

EMEA

Asia~45%

~15%

~10%

~45%

~45%

~40%

Fluff Pulp(~80% of N.A. production)

Containerboard(~15% of N.A. production)


~55%

% of exports volume

shipped to select regions~20%

Brazil & Russia Exports | Leveraging Strategic Export Opportunities

Latin America

EMEA Asia~80%

~40% ~5%

Softwood Pulp(~50% of Russia production)

Uncoated Freesheet(~50% of Brazil production)

Ilim

Pulp


0.30.4 0.5

0.8

1.3 1.31.6

2.0

2.52.7 2.7

2.42.6

3.0

9%

13%15% 15%

19%18%

20%19%

22%24% 24%

22% 22%23%

0%

5%

10%

15%

20%

25%

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

Tho

usa

nd

s

20

Bu

sine

ssA

dj. E

BITD

A ($

B)

Weyco Packaging

Acquisition & Integration

Ad

j. E

BIT

DA

%

IP Adjusted EBITDA margins based on North American Industrial Packaging operating profit before special itemsExcludes the Recycling Business and revenue from trade volumes

TIN Acquisition &

Integration

N.A. Industrial Packaging | Track Record of Success

Growth and Margin Expansion through Strategic Acquisitions and Successful Integrations


Global Economic Recession


$3.2

$3.7

$4.3

Adjusted EBITDA1

($B)

$ Billion (except as noted)

2016 2017 2018

Sales $19.5 $21.7 $23.3

Adjusted EBIT1 $2.1 $2.4 $3.0

Adjusted Operating EPS2 $3.09 $3.49 $5.32

Adjusted EBITDA Margin1 16.6% 17.2% 18.7%

Equity Earnings ($MM) $198 $177 $336

Free Cash Flow3 $1.9 $2.0 $1.7

2018

2017

2016

Full-Year 2018 Financials

1 From continuing operations before special items and non-operating pension expense2 Adjusted operating EPS based on Adjusted Operating Earnings (defined as Net Earnings (GAAP) from continuing operations beforespecial items and non-operating pension expense3 See slide #57 for a reconciliation of cash provided by operations to Free Cash Flow

21


$0.94

$1.65

$1.11

Adjusted Operating EPS1

First Quarter 2019 Results

1Q19

4Q18

1Q18

1 Adjusted operating EPS based on Adjusted Operating Earnings (defined as Net Earnings (GAAP) from continuing operations before special items and non-operating pension expense)

Solid earnings and strong free cash flow generation

Strong operational performance across all businesses

North America Packaging optimized system in a

high downtime quarter

Higher wood costs offset by lower recovered fiber (OCC)

Strong Ilim performance

Share repurchases of $180MM


$860

$1,268

$896

Adjusted EBITDA1

($MM)

1Q18 4Q18 1Q19

Sales ($B) $5.6 $6.0 $5.6

Adjusted EBIT1($MM) $535 $931 $582

Adjusted Operating EPS2 $0.94 $1.65 $1.11

Adjusted EBITDA Margin1 15.3% 21.3% 15.9%

Equity Earnings ($MM) $95 $79 $114

Free Cash Flow3 ($MM) $174 $535 $440

1Q19

4Q18

1Q18

First Quarter 2019 Financials

1 From continuing operations before special items and non-operating pension expense2 Adjusted operating EPS based on Adjusted Operating Earnings (defined as Net Earnings (GAAP) from continuing operations before special items and non-operating pension expense)3 See slide #57 for a reconciliation of cash provided by operations to Free Cash Flow


Appendix


Appendix | Table of Contents

Industrial Packaging……………….………………………………….…..25-35

Global Cellulose Fibers……………………………………………….......36-41

Printing Papers..……….……………………………………………………42-50

IP Russia & Ilim Group.………….….……………………………….…….51-54

Graphic Packaging Investment…………………………………….…..55

Other Financial Information…..………………………………….….......56-73

Global Citizenship………….…..………………………………….….......74

Contact Information……………….………………………………….…..75

25


IP

31%

WRK

23%

GP

10%

PCA

10%

Pratt

4%

Others

22%

26

Source: 2019 estimated effective containerboard capacity based on RISI Capacity Reports, SEC Filings, and IP data and analysis

2019 Producer Position

Top 5 = 78%

Stone

13%

Smurfit

7%

GP

9%

WY

7%

IP

7%TIN

7%

Others

50%


Top 5 = 43%

N.A. Containerboard | Supply Positions



Non-U.S.~10%

IP Box Plants~80%

Open Market~20%

U.S.~90%

Export~60%

Domestic~40%

EMEA~45%

Lat Am~40%

Asia~15%

N.A. Mill System Capacity~13.5 Million Tons

Containerboard~13.0 MillionTons

Other Uses1

~0.5 MillionTons

1 Includes Saturating Kraft /Gypsum LinerSource: 2019 estimates based on IP data and analysis

IP N.A. Industrial Packaging | Balanced Global Strategy

IP’s channels to market provide choices for maximizing value


Estimated 2019

Global Demand

= 194MM tons

Net Export, Tons

Net Import, Tons

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

Source: 2019 RISI trade estimates and IP analysis

Europe

6.4MM

Europe

3.7MM

N America

5.4MM

Africa

1.7MM

S America

0.4MM

S America

1.2MM

C America

3.1MM

Africa

0.5MM

Mid East

1.1MM

Asia

3.0MM

Oceania

0.9MM

Global Containerboard Industry | Total Containerboard Trade Flows


Source: 2019 estimates based on IP data and analysis; chart includes Saturating Kraft & Gypsum liner

IP N.A. Containerboard Mill System | ~13.5MM Tons Capacity

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

Ma

nsf

ield

Va

llia

nt

Pra

ttv

ille

Sa

va

nn

ah

Ce

da

r

Riv

er

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

Ne

wp

ort

He

nd

ers

on

Xa

lap

a

Tho

usa

nd

s To

ns


Linerboard Global Cost Curve | 93.4% of Capacity in 1st Quartile


$0

$200

$400

$600

$800

$1,000

$1,200

0 20,000 40,000 60,000 80,000 100,000

Ma

nu

fac

turin

g C

ost

s ($

/To

n)

Cumulative Annual Production (Thousand Tons)

Cash Costs + Delivery to Chicago

Newport

Source: FisherSolve ™ 3Q18 data

Cedar Rapids

Henderson

Maysville

Mansfield

Bogalusa

Orange

Pine Hill

Red River

Valliant

Vicksburg

Prattville

Rome Savannah

Pensacola

Springfield


Well-Positioned in Attractive Customer Segments

Customer Segment Industry IP

Durable & Non-Durable Goods ~40%Well

Positioned

Paper Products

Chemicals & Pharma

Other Non-Durables

Other Durables

Food & Beverage ~45%Advantaged

Position

Processed Food

Fresh Produce

Protein (Meat & Poultry)

Beverage

eCommerce & Distribution ~15%Advantaged

Position

eCommerce

Shipping & Distribution

Fastest Growth


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

U.S. Containerboard | Industry Statistics

200

300

400

500

600

700

800

200

300

400

500

600

700

800

Ja

n-0

5

Ap

r-0

5

Ju

l-05

Oc

t-0

5

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

$/short ton

Containerboard Pricing

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

$200

$300

$400

$500

$600

$700

$800

Jan-90 Jan-95 Jan-00 Jan-05 Jan-10 Jan-15

$/short ton

Investor Roadshow I Q2 2018

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

33Investor Roadshow I May 28, 2019

US Box Shipments

US GDP

US Industrial Production

US Nondurable Industrial Production


373 378390 396

405 401

380 379 380391 391 395 390

374

345357 359 360 360 364 369

376386 392

410418 419

428443

Sh

ipm

en

ts (

BSF)

34

Historical Data Source: Fibre Box Association2019-2023: 2.0% CAGR (RISI – September 2018, 5-yr forecast)

RISI Forecast

U.S. Corrugated Packaging Shipments


Wood / OCC Fiber Breakeven

35

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

1 RISI national average OCC price, adjusted for delivery2 Forest2Market chip equivalent basis index price

2013

2015

2016

2017

2014

2012

2018


~75%

~25%

Current

Product Mix1

Total Capacity ~3.6MM MTPY Targeted Mix

Fluff Pulp & Specialties 2.7MM 85%

Market Pulp 0.9MM 15%

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

Global Cellulose Fibers | Business Overview

Franklin, VA

New Bern, NC

Riegelwood, NC

Georgetown, SC

Port Wentworth, GA

Flint River, GA

Eastover SC

Pensacola, FL

Columbus, MS

Grand Prairie,

Alberta

Saillat, France

Kwidzyn,

PolandGdansk,

Poland

Svetogorsk, Russia

Fluff Pulp &

Specialties

Market Pulp

Market Pulp Mill

Fluff Pulp Mill

Converting facilities



0

2,000

4,000

6,000

8,000

10,000

12,000

2010 2014 2018 2022

GD

P/C

ap

ita

(U

SD

)

SEA MEA China Latin America

Source: IHS Global Insights 37

Absorbent Hygiene Products (AHP) Outlook | Demand & Growth

AHP demand linked to GDP growth in emerging markets


North America North America

Latin America Latin America

Western Europe Western Europe

Eastern Europe Eastern Europe

AsiaAsia

Rest of World

Rest of World

0

5

10

15

20

25

30

2018 2022

Source: PPPC November 2018 Chemical Market Pulp Supply & Demand Forecast

25.3MM MTPY 27.3MM MTPYCAGR = 1.8%

Global Market Pulp Demand Outlook | Bleached Softwood

2018 – 2022

CAGR

1.6%

4.0%

2.1%

(1.4%)

0.2%

0.8%


Source: 1Price Hanna 2017 Outlook For Absorbent Products, RISI, IP analysis

North America

Latin America

EMEA

Asia

2017 - 2021

CAGR

2.1%

3.1%

7.6%

3.1%Airlaid 11%

Adult Incontinence

33%

Feminine Care23%

Baby Diapers34%

Fluff Demand by Region and End Use1

2.7%

3.6%

6.3%

1.5%

2017 - 2021

CAGR

Global Cellulose Fibers | Advantaged Position in Attractive Markets

Well-positioned to serve

growing demand with

global, strategic customers2017 Demand5.9MM MTPY


2.0 MM

1 Does not include llim JV

IP Global Pulp Capacity | Total of 3.9MM MTPY1

North America

Latin America

Europe/RussiaIlim JV

0.2 MM

3.4 MM

0.3 MM

Pulp mill


0

200

400

600

800

1,000

1,200

1,400

1,600

Ja

n-0

6

Ap

r-0

6

Ju

l-06

Oc

t-0

6

Ja

n-0

7

Ap

r-0

7

Ju

l-07

Oc

t-0

7

Ja

n-0

8

Ap

r-0

8

Ju

l-08

Oc

t-0

8

Ja

n-0

9

Ap

r-0

9

Ju

l-09

Oc

t-0

9

Ja

n-1

0

Ap

r-1

0

Ju

l-10

Oc

t-1

0

Ja

n-1

1

Ap

r-1

1

Ju

l-11

Oc

t-1

1

Ja

n-1

2

Ap

r-1

2

Ju

l-12

Oc

t-1

2

Ja

n-1

3

Ap

r-1

3

Ju

l-13

Oc

t-1

3

Ja

n-1

4

Ap

r-1

4

Ju

l-14

Oc

t-1

4

Ja

n-1

5

Ap

r-1

5

Ju

l-15

Oc

t-1

5

Ja

n-1

6

Ap

r-1

6

Ju

l-16

Oc

t-1

6

Ja

n-1

7

Ap

r-1

7

Ju

l-17

Oc

t-1

7

Ja

n-1

8

Ap

r-1

8

Ju

l-18

Oc

t-1

8

Ja

n-1

9

Ap

r-1

9

USD/admt Global Pulp Prices

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

Pulp | Industry Statistics


Europe

0.8 MM

42

1 Does not include llim JV

IP Global Papers Footprint | Total of 4.6MM Short Tons1

0.3 MM

North America

Brazil

Ilim JV

1.1 MM

2.0 MM

Russia

0.4 MM

0.3 MM

India

Uncoated paper mill


Domtar

31%

IP

20%

PCA

10%

GP

9%

Pixelle

4%

Other

25%GP

15%

IP

13%

Champion

10%

Boise

10%Willamette

9%

WY

9%

Union Camp

9%

Other

25%


Top 2 = 28%

Top 4 = 48%


Top 2 = 51%

Top 3 = 61%

1998, 2018 Source: Poyry Consulting, Fisher International, IP analysis2018 Producer Position based off of 3Q 2018 Capacity

43

N.A. Uncoated Freesheet Supply | Capacity Positions

1998 Producer

Position

2018 Producer

Position


0%

20%

40%

60%

80%

100%

Riverdale Ticonderoga Eastover Georgetown

% G

rad

e /

Mix

Uncoated Freesheet Non UFS Pulp1

44

1 Non UFS includes Kraft Bag and Uncoated BristolsSource: IP analysis

Paper (M Tons)

645 295 745 305

Pulp (M Tons)

0 0 115 350

Ca

pa

city

N.A. Papers Mill System | 2.0 MM Short Ton Capacity


$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

45

Source: FisherSolve ™ 3Q18 data

Georgetown

Riverdale

Ticonderoga

Eastover

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

Investor Roadshow I Q2 2018

314

575

657 657

513 539598

499

310253 261 316

213254

10%

16%

19% 19%18%

20%

22%

18%

12% 12%13%

17%

12%13%

0%

5%

10%

15%

20%

25%

0

200

400

600

800

1,000

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

Adj.

EBITDA1

%

Adj.

EBITDA1

$ MM

46

Tons (MM)

4.0 4.1 3.9 3.5 3.0 2.8 2.7 2.7 2.6 2.0 2.0 1.9 1.9 1.9


N.A. Printing Papers | Margin History



Historical Data Source: AF&PA2019 – 2023: (2.7%) CAGR (RISI January 2019: 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 7.7 7.8 7.6 7.5 7.36.9 6.7 6.7

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

Mil

lio

n T

on

s

RISI Forecast

U.S. Uncoated Freesheet Demand


$500

$600

$700

$800

$900

$1,000

$1,100

$1,200

$500

$600

$700

$800

$900

$1,000

$1,100

$1,200

Ja

n-0

6

Ap

r-0

6

Ju

l-06

Oc

t-0

6

Ja

n-0

7

Ap

r-0

7

Ju

l-07

Oc

t-0

7

Ja

n-0

8

Ap

r-0

8

Ju

l-08

Oc

t-0

8

Ja

n-0

9

Ap

r-0

9

Ju

l-09

Oc

t-0

9

Ja

n-1

0

Ap

r-1

0

Ju

l-10

Oc

t-1

0

Ja

n-1

1

Ap

r-1

1

Ju

l-11

Oc

t-1

1

Ja

n-1

2

Ap

r-1

2

Ju

l-12

Oc

t-1

2

Ja

n-1

3

Ap

r-1

3

Ju

l-13

Oc

t-1

3

Ja

n-1

4

Ap

r-1

4

Ju

l-14

Oc

t-1

4

Ja

n-1

5

Ap

r-1

5

Ju

l-15

Oc

t-1

5

Ja

n-1

6

Ap

r-1

6

Ju

l-16

Oc

t-1

6

Ja

n-1

7

Ap

r-1

7

Ju

l-17

Oc

t-1

7

Ja

n-1

8

Ap

r-1

8

Ju

l-18

Oc

t-1

8

Ja

n-1

9

Ap

r-1

9

$/short ton

Uncoated Freesheet Pricing Trends

RISI 20# Cutsize RISI 50# Offset

Source: RISI

U.S. Uncoated Freesheet | Industry Statistics


Latin American Uncoated Freesheet Market

37%

30%

7%

4%

4%

4%

14%

Latin America is a Net Exporter

DemandCapacity @

88% Op. RateNet Exports

2.6 MM 2.9 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 & DemandTop 6 Producers > 80%

LatAm analysis excludes MexicoSource: Ibá / AFCP / RISI / Fisher / IP Estimates

Smurfit

Kappa

Ledesma

Celulosa

Argentina

Propal

IP

Others

Suzano

3.3MM

tons


280

317

228

296 320

293

334 326

275 264297

329

33% 33%

24%

27% 27% 26%

31% 31% 31%29%

31%

34%

0%

5%

10%

15%

20%

25%

30%

35%

0

50

100

150

200

250

300

350

400

450

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

Adj. EBITDA1

US $ MM

Adj.

EBITDA1

Margin

Tons

(MM) 0.9 1.0 1.2 1.2 1.3 1.3 1.3 1.3 1.2 1.2 1.3 1.2


IP Brazil Papers| Historical Financials


Ilim JV Production tonnes1 2018

Bratsk Mill

Total 1,202

Softwood bleached pulp 722

Hardwood bleached pulp 281

KLB 199

Koryazhma Mill

Total 1,308

PM7 paper 184

PM7 CFS 56

Pulp (BHKP, UKP) 296

KLB and others 772

Ust-Ilimsk Mill

Total 796

Pulp (BSKP, UKP) Total 696

Hardwood bleached pulp 100

IP Russia Production1

Svetogorsk 2018

Total 654

Coated Paperboard 111

Pulp (soft/hardwood) 150

Fine Papers 393

1 Volumes shown in thousand metric tons

Koryazhma

BratskUst-Ilimsk

China

Kazakhstan Mongolia

Svetogorsk

Well-Positioned to Serve Target Markets

51

IP Russia & ILIM JV | Production Overview


China will account for more than 60% of world’s incremental market pulp growth

1st quartile cost positions with favorable access to China NBSK customers

Access to significant Russian wood basket

1 Source: FisherSolve™ 3Q18 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, China1

Ust-Ilimsk

Bratsk

ILIM Joint Venture | Well-Positioned to Serve Growing Pulp Markets


2013 2014 2015 2016 2017 2018

Sales Volume (Million metric tonnes) 2.4 2.9 3.0 3.2 3.1 3.3

Sales ($B) 1.9 2.1 1.9 1.9 2.2 2.7

Debt ($B) 1.5 1.4 1.2 1.5 1.6 1.6

Adj. Operating EBITDA ($MM) 203 459 694 680 695 1,207

F/X Gain (Loss)1 ($MM) (80) (674) (188) 63 37 (204)

EBITDA ($MM) 123 (215) 506 743 732 1,003

Depreciation ($MM) 176 188 128 121 151 156

EBIT ($MM) (53) (403) 378 622 581 847

Interest Expense ($MM) 39 69 52 81 88 70

Net Income / (Loss) ($MM) (72) (359) 237 385 362 571

IP Equity Earnings / (Loss) ($MM) (46) (194) 131 199 183 290

Dividends (to IP) ($MM) 0 56 35 60 134 128

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 ~$0.8B at year end 2018)

ILIM Joint Venture | Full Year Financials


$ Million 1Q18 4Q18 1Q19

Sales Volume (thousand metric tonnes)

800 838 819

Sales $677 $684 $620

EBITDA $293 $263 $306

F/X (Impact of USD Net Debt)1 $(1) $(47) $52

Adj. Operating EBITDA2 $294 $310 $254

IP Equity Earnings (Loss)3 $92 $67 $101

ILIM Joint Venture | 1Q19 vs. 4Q18

1 Represents F/X impact including amounts related to Ilim Group USD-denominated net debt (balance of ~$0.5B as of March 31, 2019); IlimGroup’s functional currency is the Ruble (RUB); Non-functional-denominated currency balances are measured monthly using the month-end exchange rate2 Before F/X impact including USD-denominated net debt3 IP Equity Earnings (Loss) for 1Q18, 4Q18, and 1Q19 include after-tax F/X gains (losses) (primarily on USD-denominated net debt) of $0MM, $(19)MM, and $21MM, respectively

Strong operating performance

F/X gain (non-cash) of $0.05 EPS on

USD-denominated net debt in 1Q19

$237 million cash dividend received April 2019


Overview

Transaction

Financial Considerations

Valuation

Closing

1 Graphic Packaging International Partners, LLC (GPIP)2 Based on adjusted 2017 estimated EBITDA of $210 million

Combined IP’s N.A. Consumer Packaging business with Graphic Packaging

Created leading consumer packaging company with $6 billion of revenue

IP contributed N.A. Consumer Packaging business into Graphic Packaging subsidiary1

2-year lock-up IP cannot sell any of its ownership interest

5-year standstill IP cannot increase its ownership interest

No IP involvement in operation or governance of the business

Valued at $1.8 billion at an 8.6X EBITDA multiple2

IP has 20.5% ownership in Graphic Packaging subsidiary1

valued at $1.14 billion

Earnings neutral to slightly accretive

Dividends to IP of ~$25 million annually (based on current GPK dividend policy)

Leverage neutral

No current cash taxes expected on transaction

Closed January 2, 2018

Ownership interest reflected in IP’s equity earnings

Investment in Graphic Packaging


Adj. Operating EPS1

2006 as originally reported2007-2011 adjusted for elimination of the Ilim JV reporting lag2006-2010 Net Earnings from continuing operations and before special items; 2010 onward reflects Operating Earningsxpedx is reflected as a Discontinued Operation from 2010 onwardN.A. Consumer Packaging is reflected as a Discontinued Operation from 2013 onward

.83

.93

.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

1.11

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


$ Million 2016 2017 1Q18 4Q18 2018 1Q19

Cash Provided by Operations $2,478 $1,757 $663 $821 $3,226 $733

Cash Invested in Capital Projects $(1,348) $(1,391) $(489) $(286) $(1,572) $(293)

Cash Contribution to Pension Plan

$750 $1,250 - - - -

Kleen Products Settlement - $354 - - - -

Free Cash Flow $1,880 $1,970 $174 $535 $1,654 $440

57

Free Cash Flow


1 Simple Debt Coverage: Balance Sheet Debt / 2016 IP’s Adjusted EBITDA of $3.5B2 Simple Debt Coverage: Balance Sheet Debt / 2017 IP’s Adjusted EBITDA of $3.9B (incl. Consumer Pkg)3 Simple Debt Coverage: Balance Sheet Debt / 2018 IP’s Adjusted EBITDA of $4.3B4 Adjusted Debt to Adjusted EBITDA on a Moody’s basis

Target 2.5 – 2.8X4

Reduced balance sheet debt by $0.5B

Limited near-term maturities

Pension plan sufficiently funded

Year-end discount rate increased from

3.6% (2017) to 4.3% (2018)

Took definitive actions to further de-risk

pension plan

$0.6B cash balance at year-end

2018 Highlights

Balance Sheet | Financial Strength

Pension Gap

$11.3 $11.2 $10.7

$3.4$2.0

$1.8

$ B

illio

n

2.8x

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

20172016 2018

3.3x

[3.2x]1

Balance

Sheet

Debt

$0.5 Op. Lease Adj.

4.0x

[2.9x]2 [2.5x]3

Balance

Sheet

Debt

Balance

Sheet

Debt

Pension Gap

Pension GapPension Gap

Investor Roadshow I May 28, 20191 Primarily foreign debt (intended to be rolled over or refinanced).

59

Debt Maturity Profile | Maturities as of December 31, 2018

$0

$200

$400

$600

$800

$1,000

$1,200

2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 2045 2047

Millio

n

Debt Maturities Commercial Paper Other Debt1


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+

1 Liability Driven Investment

De-Risking the Company

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


342

545

387

447

364

310

209

103

$0

$150

$300

$450

$600

2012 2013 2014 2015 2016 2017 2018 2019E

Millio

n

Annual Pension Expense2

61

Key Variables 2017 2018 2019E

Assumed Rate of Return

7.50% 7.50% 7.25%

Discount Rate 3.60% 4.30% 4.30%

Average Annualized Returns3

2018 (3.0%)

Past Five Years 6.0%

Past Ten Years 9.9%

Portfolio Asset Allocation at 12-31-18

Target Actual

Equity 32% - 43% 32%

Bonds 44% - 56% 51%

Real Estate 5% - 11% 11%

Other 3% - 8% 6%

1 2013 and onward include Temple-Inland pension plan2 Non-cash expense for U.S. plans only3 Through December 2018Pension expense reflects service cost, interest cost, amortization of actuarial losses and expected return on plan assetsFor the past 10 years, IP Pension Plan performance ranked in the top decile of the State Street Bank Corporate and Public Master Trust Universe of approx 200 observations

Pension Plan Update1 | As of December 31, 2018


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 2019E

Maintenance Regulatory Strategic Cost Reduction % of Depreciation

$ M

illio

n

% of Depreciation

Reflects continuing operations

~$1,400

62

Capital Spending



2019 Capital Investment | Optimizing Advantaged Assets

63

$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

$0.8B $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

$0.2B $0.4B

Source: IP Analysis, FisherSolve™ 2Q17 data


$ Million 1Q18A 2Q18A 3Q18A 4Q18A 2018A

Industrial Packaging $107 $116 $65 $7 $295 North America 102 111 65 7 285

Europe 1 0 0 0 1

Europe Coated Paperboard 4 4 0 0 8

Brazil 0 1 0 0 1

Global Cellulose Fibers $63 $37 $24 $27 $151 North America 60 29 24 27 140Europe 3 8 0 0 11

Printing Papers $37 $50 $6 $9 $102 North America 26 28 5 9 68

Europe 8 18 0 0 26

Brazil 3 4 0 0 7

India 0 0 1 0 1

Total Impact $207 $203 $95 $43 $548

64

Maintenance Outages Expenses| 2018 Actual


$ Million 1Q19A 2Q19F 3Q19F 4Q19F 2019F

Industrial Packaging $93 $130 $58 $2 $283

North America 93 123 53 2 271

Europe - - 1 - 1

Europe Coated Paperboard - 7 1 - 8

Brazil - - 3 - 3

Global Cellulose Fibers $38 $70 $17 $11 $136 North America 38 67 17 4 126Europe - 3 - 7 10

Printing Papers $12 $56 $25 $17 $110North America 12 36 18 9 75

Europe - 17 - 8 25

Brazil - 3 4 - 7

India - - 3 - 3

Total Impact $143 $256 $100 $30 $529

65

Maintenance Outages Expenses| 2019 Forecast


North American Downtime

Tho

usa

nd

To

ns

Tho

usa

nd

To

ns

Maintenance

Economic

Cellulose FibersContainerboard

Uncoated Papers

90

93157

8546

181 154 161

22

11035 0

00

410

Tho

usa

nd

To

ns

24 25

11

25

10 4 9 101

6

90

55

711

7943

32 2636

74


Total Cash Components | 2018

67

Fiber

33%

Materials

17%

Freight

13%

Labor

12%

Overhead

11%

Chemicals

7%

Energy

7%

North American mills only


U.S. Mill Wood Delivered Cost Trend | 1Q19 Average Down 3% vs. 4Q18

90

95

100

105

110

115

120

125

130

20172008 2009 2010 2011 2012 2013 2014 2015 2016

IP data, cost Indexed to January 2007 values

2018


U.S. OCC Delivered Cost Trend | 1Q19 Average Cost Down 10% vs. 4Q18

IP data, cost Indexed to January 2007 values

40

60

80

100

120

140

160

180

200

220

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018


U.S. Natural Gas Cost Trend | 1Q19 Average Cost Down 9% vs. 4Q18

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


U.S. Fuel Oil Cost Trend | 1Q19 Average Cost Up 3% vs. 4Q18

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


U.S. Chemical Composite Cost Trend | 1Q19 Average Cost Up 3% vs. 4Q18

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


Commodity North America Non – North America

Energy

Natural Gas (MMBTUs) 80,000,000 11,000,000

Fuel Oil (Barrels) 500,000 550,000

Coal (Tons) 60,000 500,000

FiberWood (Tons) 55,000,000 8,000,000

Old Corrugated Containers / DLK (Tons) 4,900,000 400,000

Chemicals

Caustic Soda (Tons) 430,000 70,000

Starch (Tons) 330,000 110,000

Sodium Chlorate (Tons) 170,000 40,000

2018 Global Consumption | Annual Purchases for Key Inputs


Global Citizenship


Contact Information

Guillermo Gutierrez

Vice President, Investor Relations

+1-901-419-1731

[email protected]

Michele Vargas

Director, Investor Relations

+1-901-419-7287

[email protected]

Betty Groom

Administrative Assistant

+1-901-419-4250

[email protected]

75


International Paper Brazil Graphic Paper Manufacture 2015

International Paper Russia Corporate Social Responsibility

Award 2015

Named by the EthisphereInstitute as one of the “World’s Most Ethical

Companies®” 2019

2018 Woman’s Choice Award Best Companies to Work For Millennials

International Paper India Parivartan Award 2015

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

1 From FORTUNE Magazine, March 1, 2017. © 2017 Time Inc. Used under license2 From Commercial Appeal (Memphis, TN)

FORTUNE’S “World’s Most Admired Companies®” 2018

1

Commercial Appeal’s“Top Workplace 2018”

2

Institutional Investor’s “Most Honored Company” 2018 in the Paper & Packaging sector

International Paper Awards & Recognitions

76

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