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Investor Roadshow | August 4, 2017



Forward-Looking Statements

2

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 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 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 other manufacturing facilities; (vi) risks inherent in

conducting business through joint ventures; (vii) the failure to realize the expected synergies and cost-

savings from our purchase of the cellulose fibers business of Weyerhaeuser Company; and (viii) our ability

to achieve the benefits we expect from all other 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.


Statements Relating to Non-GAAP Financial Measures

3

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

will be presented, such as Adjusted Operating EPS, Adjusted EBIT, Adjusted

EBITDA, Adjusted EBITDA Margin, Free Cash Flow and Adjusted ROIC.

A reconciliation of all presented non-GAAP measures (and their components) to

U.S. GAAP financial measures is available on the company’s website at

internationalpaper.com under Performance/Investors.


Ilim JV Information

4

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. 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.”


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

7

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


IP Investment Thesis | The IP Way Forward

8

“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 | Leveraging Selective Choices

9

Cost Positions

• Low-cost asset base

− Mill footprint on cost curve

− Disciplined capital

investment

• Sustained low-cost

positions through

operational excellence

and optimization

• Fiber-based Packaging, Pulp and Paper

• Advantaged positions in advantaged markets

Strategy

Renewable

Natural Resources

Availability and access to

low-cost, sustainable fiber

in key manufacturing

regions

Channels to Market

• Strong market positions

• Sell products in markets

where they are valued

• Winning with the right

customers and segments


IP Investment Thesis | Delivering Shareholder Value

10

Capital Allocation

Strong and sustainable free cash flow to:

Fund dividends (40-50% of FCF)

Maintain healthy balance sheet and

credit rating

Enable opportunistic share buybacks

Reinvest in the businesses and

strengthen portfolio

• Strong and sustainable Free Cash Flow

• Increase value creation

• Exceed shareholders’ TSR expectations

Shareholder Value

Value Creation Levers

Improve what we have:

Manufacturing excellence efforts

Commercial optimization

Targeted investments (IRR>WACC):

Integrate newly-acquired pulp business

and deliver synergies

N.A. Industrial Packaging projects

Madrid mill acquisition / conversion


Capital Allocation | IP’s Balanced Use of Cash

11

Systematically Return Cash to Shareholders

Trough-Tested Sustainable Dividend

(40% − 50% of FCF)

Opportunistic Share Repurchases

CashFrom

OperationsMaintain Strong

Balance Sheet

& Credit Rating

Appropriate Liquidity & Debt Coverage

Proactively Manage Pension Plan

Selective Reinvestment

Value-Creating, Healthy Spread

Above Cost of Capital

Improving Competitive Position

Effective Capital Spending

Maintenance & Regulatory Needs

High Return, Cost Reduction Projects


Strengthening Our Balance Sheet

12

Intend to make $1.25B voluntary pension contribution by September 15th

– Funded partially with proceeds from recent debt offering

– Viewed as debt reduction by rating agencies

– Contribution is tax deductible and locks in cash benefit prior to potential

tax reform

– Improved plan funding level provides significant PBGC1 premium savings

Will take additional steps to “de-risk” pension plan in 2H 2017

No required contributions expected during the next five years

1 Pension Benefit Guaranty Corporation

We continue to target available cash for debt reduction

needed to support investment grade credit rating


De-Risking the Company

13

Will take additional measures to reduce risk in our pension plan 2H 2017

– Making changes to the plan's asset allocation to emphasize more fixed income

– Reallocating the plan’s fixed income investments to longer duration maturities

– Expanding certain hedging strategies

– Exploring other risk mitigation options

IP is taking meaningful and deliberate steps to de-risk our pension plan

2004

Pension plan

closed to new

entrants

2014

Decision made to freeze

defined benefit pension plan

for active salary participants

effective 12/31/18

2016

Voluntary term-vested

buy out program

reduced plan size by

~10% and introduced

new LDI1 policy

Contributions2014

$353MM

2015

$750MM

2016

$750MM

2017

$1.25B

De-Risking

2017

1 Liability Driven Investment


Delivering on Our Commitments For Value Creation

14

Strategically

Reinvest in BusinessReturn Cash to

Shareholders

Maintain Strong

Balance Sheet

Robust Capital Allocation Strategy

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

$1.05 $1.20

$1.40

$1.60 $1.76

$1.85

4Q11 4Q12 4Q13 4Q14 4Q15 4Q16


Global Economic

Recession

$1.6

$1.8

$2.1

$1.8 $1.9

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

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

$ B

illi

on

sStrong, Sustainable Free Cash Flow

15

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, 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. For 2014 onward, see slide #75 for a reconciliation of cash provided by operations to Free Cash Flow.

Transformation:

$0.5 Billion (average)

5-Year Average

$1.8 Billion


Global

Economic

Recession

4.5%

6.3%

7.5%

6.5%

5.0%

8.1%

9.5%

8.3%

9.3% 9.2%

11.0%

9.9%

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

Expanded Spread of Adj. ROIC1 Above Cost of Capital | Increasing Shareholder Value

16

5-Year Average

9.6%

WACC for 20161 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]


Key drivers of margin expansion

Healthy demand outlook in Industrial Packaging and Global Cellulose Fibers

Realization of recent price increases

Solid operational performance and cost reduction initiatives

Significantly lower maintenance outage expense

Global Cellulose Fibers synergies and momentum

Allocate capital to create value with a near-term focus on debt reduction

Remain confident in upside to full year view of 10%+ YoY EBITDA growth

Full Year Outlook | Positioned for Strong Second Half Performance

17


Business Overview


2005 - 2007 2008 - 2010 2011+

IP Transformation Timeline/Plan

Transformation Plan

Divestitures & Strategic

Reinvestment

Global Recession IP Achieves Cost of Capital Returns

N.A. Weyco Pkg.

Acquisition

Russia

Ilim JV

India APPM

AcquisitionChina

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.

N.A. TIN

Acquisition

Turkey

Olmuksan Pkg.

19

Franklin Fluff

Pulp

Conversion

TIN Bldg.

Products

Sale

xpedx

Spin-Off

Riegelwood

Fluff Pulp

ConversionValliant

PM3

Sun JV

& Asia

Box Sale

Madrid mill

Acquisition

Weyco Pulp

Business

Acquisition


NorthAmerica

Brazil

EMEA &Russia

India

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

$16.5BNet Sales

$1.1BNet Sales

$2.8BNet Sales

$0.2BNet Sales

Full-year 2016 net sales data1 Ilim JV total sales are not consolidated (IP owns 50% of JV)

International Paper | 2016 Global Portfolio in Packaging, Pulp and Paper

$1.9B1

Ilim JV

Total Sales


Strong Domestic Market Positions

1st

1st

North America

Latin America

EMEA3

2nd

NorthAmerica

83%

Brazil8%

EMEA6%

Russia3%

% Total

Adjusted

EBITDA4

2nd

India

Industrial

PackagingRevenue by

Business1

Consumer

PackagingPrinting

Papers

64% 8%18%

Russia

1st 1st

Ilim

Pulp

* Fluff pulp & specialties grades1 Based on 1H17 sales2 From continuing operations before special items and non-operating pension expense; does not reflect equity earnings from Ilim JV3 Excludes Russia4 Based on 2016 Adj. EBITDA Margins

Global

Cellulose

Fibers

10%

1st*


N.A. Exports | Leveraging Strategic Export Opportunities

22

Fluff Pulp(~90% of N.A. production)

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

EMEA

Asia

Latin America

~50%~40%

~15%

~50%

~35%

% of exports volume shipped to select regions

~10%


Brazil & Russia Exports | Leveraging Strategic Export Opportunities

Softwood Pulp(~50% of Russia production)

Uncoated Freesheet(~50% of Brazil production)

EMEA

Asia

Latin America ~40%

~55%

~5%

~80%

% of exports volume shipped to select regions

~20%


Global

Recession

N.A. Industrial Packaging | Track Record of Success

24

Bu

sin

ess

Ad

j. EB

ITD

A ($

B)

Weyco Packaging

Acquisition & IntegrationAdj.

EBITDA %

IP Adjusted 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

0.3 0.4 0.5

0.8

1.3 1.31.6

2.0

2.52.7 2.7

2.4

9%

13%15% 15%

19%18%

20%19%

22%24% 24%

22%

0%

5%

10%

15%

20%

25%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2H17RunRate

Th

ou

san

ds

TIN Acquisition

& Integration


Full-Year 2016 Financial Results

25

$ Billion(Except as noted)

2014 2015 2016

Sales $23.6 $22.4 $21.1

Adj. EBIT1 $2.7 $2.6 $2.3

Adj. Operating EPS2 $3.00 $3.65 $3.35

Operating EPS impact of Ilim F/X3 – IP Share

($0.63) ($0.18) $0.06

Adj. EBITDA1 $4.1 $3.9 $3.5

Adj. EBITDA Margin 17.5% 17.6% 16.6%

FCF4 $2.1 $1.8 $1.9

Year-End Debt $9.4 $9.3 $11.3

Cash Balance $1.9 $1.0 $1.0

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 Represents F/X impact including that related to Ilim JV USD-denominated net debt (balance of ~$0.6B at year end 2016)4 See slide #75 for a reconciliation of cash provided by operations to Free Cash Flow

$2.1$1.8 $1.9

2014 2015 2016

FCF4

($MM)


Second Quarter 2017 Results

26

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)

Healthy box and containerboard demand driving

N.A. Industrial Packaging performance

Positive momentum in Global Cellulose Fibers

Record fluff pulp sales

Synergies being realized faster

Recent price increases being implemented and

realized across key businesses

OCC cost averaged $20/ton higher than 1Q17

Executed seasonally heavy maintenance outage

schedule; ~75% of outages completed in 1H17

Strong Ilim operational results; equity earnings

negatively impacted by non-cash FX

$0.92

$0.60 $0.65

2Q16 1Q17 2Q17

Adj. Operating EPS1


2Q17 Financial Results

27

2Q16 1Q17 2Q17

Sales ($B) $5.3 $5.5 $5.8

Adj. EBIT1 ($MM) $635 $431 $499

Adj. Operating EPS2 $0.92 $0.60 $0.65

Operating EPS impact of Ilim F/X3 – IP Share

$0.01 $0.06 ($0.04)

Adj. EBITDA1 ($MM) $936 $776 $856

Adj. EBITDA Margin1 17.6% 14.1% 14.8%

Free Cash Flow4 ($MM) $527 $259 $355

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 Represents F/X impact including that related to Ilim JV USD-denominated net debt (balance of ~$0.8B at end of 2Q17)4 See slide #75 for a reconciliation of cash provided by operations to free cash flow

936

776856

2Q16 1Q17 2Q17

Adj. EBITDA1

($MM)


EMEA – Eurozone

Containerboard and Box

28

4Q16 1Q17 2Q17 3Q17 4Q17

NBSK, SBSK

NBSK, SBSK, Fluff

NBSK, SBSK, Fluff

N.A.

Industrial

Packaging

Global

Cellulose

Fibers

Printing

Papers

Brazil Domestic

N.A.

Consumer

Packaging

Jan RISI Pub: $15-$20/ton

Feb RISI Pub: $20-$25/ton

Mar RISI Pub: $20-$35/ton

May RISI Pub: $20-40/ton

Effective March 1: 10.9%

CBD and Box

EMEA – Eurozone & Poland

Effective March 1: 5.0%

Latam ExportEffective May 1: 7.0%

SBS

April RISI Pub ($20 of announced $50)

Nov RISI Pub: $40/ton April RISI Pub: $50/ton

Global Cellulose Cumulative Run Rate

• NBSK +$110

• SBSK +$120

• Fluff +$115

Varies by Region

Export Containerboard

Effective May 15: 5.0%

Announced

April RISI Pub: $20-$30/ton

IP Key Pricing Activity | Setting the Stage for Strong Second Half

NBSK, SBSK, Fluff

NBSK, SBSK, Fluff

May RISI Pub (Additional $10 for cupstock)


Appendix


Appendix - Table of Contents

Industrial Packaging……………….………………………………….…..31-44

Global Cellulose Fibers………………………………………………......45-52

Printing Papers..……….…………………………………………………..53-62

Consumer Packaging……….….………………………….………….…..63-69

IP Russia & Ilim Group.………….….……………………………….……70-73

Other Financial Information…..………………………………….….......74-90

Global Citizenship………….…..………………………………….….......91-95

Contact Information……………….………………………………….……….96

Slides


N.A. Containerboard | Supply Positions

31

Source: 2017 estimated effective containerboard capacity based on RISI Capacity Reports, SEC Filings, and IP data and analysis

2017 Producer Position

Top 5 = 75%

IP32%

WRK19%

GP10%

PCA9%

KapStone4%

Others26%

Stone13%

Smurfit7%

GP 9%

WY 7%

IP 7%TIN7%

Others 50%

1995 Producer Position

Top 5 = 43%


IP N.A. Industrial Packaging | Balanced Global Strategy

32

1 Includes Saturating Kraft /Gypsum Liner

Source: 2017 estimates based on IP data and analysis

IP’s channels to market provide choices for maximizing value

IP Box Plants~80%

Open Market~20%

U.S.~91%

Non-U.S.~9%

Export~55%

Domestic~45%

EMEA~40%

Lat Am~45%

Asia~15%

N.A. Mill System Capacity~13.5 Million Tons

Containerboard~13.1 Million Tons

Other Uses1

~0.4 Million Tons


Global Containerboard Industry | Total Containerboard Trade Flows

Estimated 2017 Global Demand = 179MM tons

33

Net Export, Tons

Net Import, Tons

Countries with Net Import or

Export greater than 100M tons…

Source: 2017 RISI trade estimates and IP Analysis

`

Europe

5.4MM

Europe

4.9MM

N America

4.9MMAfrica

1.6MM

S America

0.4MMS America

1.1MM

C America

2.5MM

Africa

0.4MM

Mid East

0.9MM

Asia

1.1MM

Oceania

0.9MM


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

34

Source: 2017 estimates based on IP data and analysis; chart includes Saturating Kraft & Gypsum liner

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

Ma

ns

fie

ld

Va

llia

nt

Pra

ttv

ille

Sa

va

nn

ah

Ce

da

r R

iver

Re

d R

iver

Pin

e H

ill

Bo

ga

lus

a

Ro

me

Ora

ng

e

Sp

rin

gfi

eld

Pe

ns

ac

ola

Vic

ks

bu

rg

Ma

ys

vil

le

New

po

rt

He

nd

ers

on

Xa

lap

a

Th

ou

sa

nd

s T

on

s


$0

$200

$400

$600

$800

$1,000

$1,200

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

Ma

nu

fac

turi

ng

Co

sts

($

/To

n)

Cumulative Annual Production (Thousand Tons)

Cash Costs + Delivery to Chicago

Linerboard Global Cost Curve | 99.6% of N.A. Capacity in 1st Cost Quartile

35

Source: FisherSolve™ 1Q17 data

Valliant

Maysville

CamptiPine Hill

Orange

Cedar

River

Prattville

Mansfield

Bogalusa

Vicksburg

Savannah

Rome

Pensacola

SpringfieldHenderson

Xalapa


N.A. Industrial Packaging Relative Adj. EBITDA Margins

36

22.8% 22.6%

18.3%18.7%

20.6%

15.9%

19.3%

22.0%

18.8%

IP PCA WestRock

2Q16 1Q17 2Q17

1Trailing Twelve Months

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

Excludes the Recycling Business and revenue from trade volumes

Competitor Adjusted EBITDA margin estimates obtained from public filings and IP analysis

TTM1

19.5%

21.0%

TTM1

17.2%

TTM1


Note: IP Mix, 2016. Industry Mix, 2016.

Source: IP Analysis

IP Well-Positioned in Attractive Customer Segments

37

59%17%

24%

IP Box Shipments by SegmentMarket Segment

IP

Mix

Industry

Mix

Food & Beverage 59% 49%

Processed Food

Protein

Produce

Beverage

Durable Goods & Distribution 24% 21%

Shipping & Distribution

Building Materials

Other Durables

Other Non-Durable Goods 17% 30%

Paper Products

Chemicals & Pharma

Other Non-Durables


N.A. Industrial Packaging | Building Upon a Great Business

38

Breadth of footprint

Key levers contributing to IP’s track record of success…

Manufacturing/supply chain excellence

Commercial execution

World-class, low-cost assets

Engaged and

talented workforce

Innovation &

value-added

capabilities

Disciplined, targeted capital investment


Pensacola Recovery | Digester Event Summary

• Adjustments to maintenance outage schedule

• Orders redirected to other mills

• Ability to use spare digester dome from Riegelwood mill

System Efforts to Mitigate Impact

• Remediation teams began cleaning common areas within 24 hours

of the incident

• Assessment and cleanup of impacted residences initiated within 48 hours

• Established information line, conducted door-to-door visits, held open house

Community Outreach

• Naturally produced pulping gases combined with pressurized air, triggered

an event never before experienced in IP

• Issued an alert to all IP mills to prevent recurrence

• Shared findings with industry globally

Findings

Jan 22, 2017

Digester Incident

No Injuries

Reported

Mill Down

Jan 23, 2017

Unified Command in

place - Initiated clean

up efforts Investigation

Mar 17, 2017

Spare Digester

Dome Delivered

from Riegelwood

Feb 3, 2017

Fluff Line

Start Up

April 3, 2017

Containerboard

Start Up

Costs & Insurance Recovery• Total costs estimated to be ~$80MM, including $16MM of capex

• Unfavorable 1Q17 earnings impact of $46MM before insurance and mitigation

• Insurance recovery of $12MM booked for 1Q17

• Bottom line impact for 1Q17 mitigated by outage moves and other cost-saving measures


U.S. Containerboard | Industry Statistics

40

200

300

400

500

600

700

800

200

300

400

500

600

700

800

Jan

-05

Ap

r-05

Jul-0

5

Oct-

05

Jan

-06

Ap

r-06

Jul-0

6

Oct-

06

Jan

-07

Ap

r-07

Jul-0

7

Oct-

07

Jan

-08

Ap

r-08

Jul-0

8

Oct-

08

Jan

-09

Ap

r-09

Jul-0

9

Oct-

09

Jan

-10

Ap

r-10

Jul-1

0

Oct-

10

Jan

-11

Ap

r-11

Jul-1

1

Oct-

11

Jan

-12

Ap

r-12

Jul-1

2

Oct-

12

Jan

-13

Ap

r-13

Jul-1

3

Oct-

13

Jan

-14

Ap

r-14

Jul-1

4

Oct-

14

Jan

-15

Ap

r-15

Jul-1

5

Oct-

15

Jan

-16

Ap

r-16

Jul-1

6

Oct-

16

Jan

-17

Ap

r-17

$/short ton$/short ton

Containerboard Pricing

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

Source: RISI

As of Jan 2015, RISI only reports OMP = Open Market Price

$200

$300

$400

$500

$600

$700

$800

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


Economic Indicators and U.S. Box Demand

41

Source: Oxford Economics; RISI North America Containerboard Historical Data

70

80

90

100

110

120

130

140

200

1

200

2

200

3

200

4

200

5

2006

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

201

6In

dexed 1

00 =

2001

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


373378

390396

405401

380 379 380

391 391 395390

374

345

357 359 360 360364

369376

384392

399408

414

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

Sh

ipm

en

ts (

BS

F)

U.S. Corrugated Packaging Shipments

42

Historical Data Source: Fibre Box Association

2017-2021: 1.9% CAGR (RISI – March 2017, 5-yr forecast)

RISI Forecast


Wood / OCC Fiber Breakeven

43

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

2014

2013

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

2015

2016

1Q17

2Q17


Brazil Industrial Packaging | Overview

44

Paulinia Mill

Manaus Box Plant

Box plant

Mill

Rio Verde Box Plant

Paulinia Box Plant Suzano Box PlantFranco da Rocha Mill

Nova Campina Mill

2016 Sales* of US $233 Million

Three Containerboard Mills

Four Box Plants

~340 Thousand Tons of Containerboard

Capacity

Sustainable Fiber Supply

Corrugated Domestic Supply Position ~7%

1: 2015 Brazilian Board Association (ABPO)

* As reported: From Dec’15 to Dec’16 (13 months)

Klabin17%

WRK8%

IP7%

Irani6%

Trombini6%Penha

5%Smurfit Kappa

4%

Others47% 3.8MM

tons¹


Global Cellulose Fibers | Business Overview

45

~70%

~30%

Current Product Mix1

Fluff Pulp & Specialties Market Pulp

Total Capacity ~3.6MM MTPY Targeted Mix

Fluff Pulp & Specialties 3.0MM 85%

Market Pulp 0.6MM 15%

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


0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

1995 2000 2005 2010 2015 2020

An

nu

al G

DP

(U

SD

/cap

ita)

MEA Asia-Pacific Eastern Europe Latin America

AHP demand linked to GDP growth in emerging markets

Source: Euromonitor, 3Q14

Absorbent Hygiene Products (AHP) Outlook | Demand and Growth

46


Global Market Pulp Demand Outlook | Bleached Softwood

North America North America

Latin America Latin America

Western Europe Western Europe

Eastern Europe Eastern Europe

Asia Asia

Rest of WorldRest of World

0

5

10

15

20

25

30

2017 2020

2017 – 2020

CAGR

2.3%

3.1%

2.8%

(1.6%)

(0.2%)

0.5%

Source: PPPC; IP Analysis

25.3MM MTPY 26.7MM MTPYCAGR = 1.3%


Global Cellulose Fibers | Advantaged Position in Advantaged Markets

48

Well-Positioned to Serve Growing Demand with Global, Strategic Customers

Source: Poyry World Fibre Outlook up to 2030, IP Analysis

North America

Latin America

EMEA

Asia

2017

2017 - 2021

CAGR

Column1

2.1%

3.1%

7.6%

3.1%Airlaid

11%

Adult

Incontinence

34%

Feminine

Care

22%

Baby

Diapers

33%

6.1MM MTPY

CAGR = 4.3%

Fluff Demand by Region and End Use

2.3%

3.6%

6.3%

1.6%

2017 - 2021

CAGR


Pulp mill

IP Global Pulp Capacity | Total of 4.1 MM MTPY1

49

Ilim JV

2.0 MM

Europe / Russia

0.3 MM N. America

3.6 MM

L. America

0.2 MM

1 Does not include llim JV


Global Fluff Pulp Industry | Trade Flows – 2016

Net Import Locations Net Export Locations

Global Demand = 5.5MM MTPY

Import

(1.2)MM

87.0% Export

4.8 MM

Import

(0.5)MM

Import

(0.8)MM

Import

(2.3)MM

Source: PPPC, IP Analysis; Units shown in short tons


Pulp | Industry Statistics

51

0

200

400

600

800

1,000

1,200

Jan

-06

Ma

r-06

Ma

y-0

6Jul-0

6S

ep-0

6N

ov-0

6Jan

-07

Ma

r-07

Ma

y-0

7Jul-0

7S

ep-0

7N

ov-0

7Jan

-08

Ma

r-08

Ma

y-0

8Jul-0

8S

ep-0

8N

ov-0

8Jan

-09

Ma

r-09

Ma

y-0

9Jul-0

9S

ep-0

9N

ov-0

9Jan

-10

Ma

r-10

Ma

y-1

0Jul-1

0S

ep-1

0N

ov-1

0Jan

-11

Ma

r-11

Ma

y-1

1Jul-1

1S

ep-1

1N

ov-1

1Jan

-12

Ma

r-12

Ma

y-1

2Jul-1

2S

ep-1

2N

ov-1

2Jan

-13

Ma

r-13

Ma

y-1

3Jul-1

3S

ep-1

3N

ov-1

3Jan

-14

Ma

r-14

Ma

y-1

4Jul-1

4S

ep-1

4N

ov-1

4Jan

-15

Ma

r-15

Ma

y-1

5Jul-1

5S

ep-1

5N

ov-1

5Jan

-16

Ma

r-16

Ma

y-1

6Jul-1

6S

ep-1

6N

ov-1

6Jan

-17

Ma

r-17

Ma

y-1

7

USD/admt Global Pulp Prices

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

Source: RISI

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


IP Global Papers Footprint | Total of 4.3 Million Short Tons1

1 Does not include llim JV

Brazil

1.1 MM

N. America

1.9 MM

Europe

0.7 MM

Russia

0.4 MM

Uncoated paper mill

India

0.2 MM

ILIM

0.3 MM


GP15%

IP13%

Champion10%

Boise10%Willamette

9%

WY9%

Union Camp

9%

Other 25%

1998 Producer PositionTop 2 = 28%

Top 4 = 48%

2017 Producer PositionTop 2 = 50%

Top 3 = 60%

1998, 2016 Source: Poyry Consulting, Fisher International, IP analysis

N.A. Uncoated Freesheet Supply | Capacity Positions

53

Domtar31%

IP19%PCA

10%

GP10%

Glatfelter6%

Other 24%


0%

20%

40%

60%

80%

100%

Riverdale Ticonderoga Eastover Georgetown

% G

rad

e / M

ix

Uncoated Freesheet Non UFS Pulp1

N.A. Papers Mill System | 1.9MM Short Ton Capacity

54

1 Non UFS includes Kraft Bag and Uncoated Bristols

Source: IP analysis

Paper

(M Tons) 615 275 700 305

Pulp

(M Tons) 0 0 115 350C

ap

ac

ity


$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

0 10,000 20,000 30,000 40,000 50,000

Ma

nu

fac

turi

ng

Co

sts

$/T

on


Cash Costs + Delivery to Chicago

Uncoated Freesheet Global Cost Curve | IP N.A. Capacity in 2nd & 3rd Cost Quartile

55

Source: FisherSolve ™ 1Q17 data

Georgetown

Riverdale

Ticonderoga

Eastover


314

575657 657

513 539598

499

310253 261 316

10%

16%

19% 19%18%

20%

22%

18%

12% 12%13%

17%

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

Adj.EBITDA1

%

Adj.EBITDA1

$ MM Papers Only

N.A. Printing Papers | Margin History

56

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


N.A. Printing Papers Relative Adj. EBITDA Margins

57

15.0%

13.4%14.0%

11.1%

15.6%

12.7%

9.0%

15.5%

13.1%

IP PCA Domtar

2Q16 1Q17 2Q17

TTM1

1Trailing Twelve Months

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

Competitor Adjusted EBITDA margin estimates obtained from public filings and IP analysis

TTM1

13.9%

17.2%

14.6%

TTM1


U.S. Uncoated Freesheet Demand

58

Historical Data Source: AF&PA

2017 – 2021: (1.5%) CAGR (RISI February 2017: 5-yr Forecast)

11.612.212.4

13.313.013.2

13.713.614.013.9

12.612.412.3

12.612.0

12.311.9

10.9

9.7 9.6 9.38.9 8.8

8.0 8.07.7 7.7 7.5 7.5 7.4 7.2

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

Mil

lio

n T

on

s

RISI Forecast


U.S. Uncoated Freesheet | Industry Statistics

59

$500

$600

$700

$800

$900

$1,000

$1,100

$1,200

$500

$600

$700

$800

$900

$1,000

$1,100

$1,200

Jan

-06

Ma

r-0

6M

ay-0

6Jul-

06

Se

p-0

6N

ov-0

6Jan

-07

Ma

r-0

7M

ay-0

7Jul-

07

Se

p-0

7N

ov-0

7Jan

-08

Ma

r-0

8M

ay-0

8Jul-

08

Se

p-0

8N

ov-0

8Jan

-09

Ma

r-0

9M

ay-0

9Jul-

09

Se

p-0

9N

ov-0

9Jan

-10

Ma

r-1

0M

ay-1

0Jul-

10

Se

p-1

0N

ov-1

0Jan

-11

Ma

r-1

1M

ay-1

1Jul-

11

Se

p-1

1N

ov-1

1Jan

-12

Ma

r-1

2M

ay-1

2Jul-

12

Se

p-1

2N

ov-1

2Jan

-13

Ma

r-1

3M

ay-1

3Jul-

13

Se

p-1

3N

ov-1

3Jan

-14

Ma

r-1

4M

ay-1

4Jul-

14

Se

p-1

4N

ov-1

4Jan

-15

Ma

r-1

5M

ay-1

5Jul-

15

Se

p-1

5N

ov-1

5Jan

-16

Ma

r-1

6M

ay-1

6Jul-

16

Se

p-1

6N

ov-1

6Jan

-17

Ma

r-1

7M

ay-1

7

$/short ton

Uncoated Freesheet Pricing Trends

RISI 20# Cutsize RISI 50# Offset

Source: RISI


37%

31%

7%

4%

4%

4%

14%

Latin American Uncoated Freesheet Market

60

0

500

1,0

00

1,5

00

2,0

00

2,5

00

Brazil

Argentina

Colombia

Chile

Peru

Other LatAm

Thousand Short Tons

Demand

Capacity

Latin America is a Net Exporter

DemandCapacity @

91% Op. RateNet Exports

2.6 MM 2.8 MM 0.2 MM

Supply & Demand

LatAm analysis excludes Mexico

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

Top 6 Producers > 80%

Smurfit

Kappa

Ledesma

Celulosa

Argentina

Propal

IP

Others

Suzano

3.1MM

tons


IP Brazil Uncoated Freesheet | At a Glance

61

Mogi Guacu Luiz Antonio Três Lagoas IP Brazil

UFS Paper

Machines4 2 1 7

UFS Capacity (thousand tons)

460 410 260 1,130

Market Pulp (thousand tons)

35 110 - 145


IP Brazil Uncoated Freesheet | Historical Financials

62

280

317

228

296 320

293

334 326

275 264

33% 33%

24%

27% 27% 26%

31% 31% 31%29%

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

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



IP Global Coated Paperboard Footprint | Total of 1.6 Million Tons

Coated paperboard mill

North America

1.2 Million Tons

Europe/Russia

370,000 Tons

63

Reflects repurposing of Riegelwood mill to pulp


22%

39%

4%

42%17%

9%

15%24%

19%11%

60%

9%

5%

21%

Folding2.1 MM tons

Cupstock1.0 MM tons

Liquid1.3 MM tons

Industry Production by IP’s Key Segments1

N.A. Solid Bleached Sulphate | Supply Positions

64

1 Does not include Coated Bristols, Platestock, Dish, Tray and others

Folding includes tobacco; Liquid Packaging includes Aseptic

Source: AF&PA; IP Analysis; Public filings

WRK31%

IP22%

GP14%

Rank Group12%

Clearwater13%

Nippon 5%

Industry Capacity for All Segments

5.6MM

Tons

(1-2%) +1.8% (1%)

CAGR 2017 - 2020


N.A. Consumer Packaging at a Glance

Coated Paperboard mill Foodservice plant

Packaging includes folding carton, liner and liquid; Foodservice includes cupstock and platestock

SpecialtyCoffee

Theater,Convenience,

HospitalityPackaging

N.A. Consumer Packaging Business~ $2 Billion Annual Revenue

IP Coated Paperboard~1.2MM Tons

QuickService

Food Service

IP Foodservice


$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

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

Ma

nu

fac

turi

ng

Co

sts

$/T

on


Cash Cost + Delivery to Chicago

Coated Paperboard Global Cost Curve | IP N.A. Capacity in 1st Cost Quartile

66

Source: FisherSolve™ 1Q17 data

Texarkana

Augusta


N.A. Consumer Packaging Historical Financials

67

242 244 228255

298

419

319263 271 268

212

10% 10%9%

12%13%

17%16%

13%14% 14%

11%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

0

50

100

150

200

250

300

350

400

450

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Adj.

EBITDA1

$ MM

Adj.

EBITDA1

%



U.S. Coated Paperboard | Industry Statistics

68

$450

$550

$650

$750

$850

$950

$1,050

$1,150

$1,250

Jan

-06

Ap

r-06

Jul-

06

Oct-

06

Jan

-07

Ap

r-07

Jul-

07

Oct-

07

Jan

-08

Ap

r-08

Jul-

08

Oct-

08

Jan

-09

Ap

r-09

Jul-

09

Oct-

09

Jan

-10

Ap

r-10

Jul-

10

Oct-

10

Jan

-11

Ap

r-11

Jul-

11

Oct-

11

Jan

-12

Ap

r-12

Jul-

12

Oct-

12

Jan

-13

Ap

r-13

Jul-

13

Oct-

13

Jan

-14

Ap

r-14

Jul-

14

Oct-

14

Jan

-15

Ap

r-15

Jul-

15

Oct-

15

Jan

-16

Ap

r-16

Jul-

16

Oct-

16

Jan

-17

Ap

r-17

$/short ton Folding Cartonboard Prices

Bleached Unbleached Recycled

Source: RISI; Series B prices introduced in January 2016 replacing the transaction price series


U.S. Cup Market

69

• Paper hot cups & food containers continue to experience growth, in part due to

the foam-to-paper conversion

• Consumers making different beverage choices

– Decrease in soda consumption in both fountain & bottle beverages

– Growth in juice & smoothie beverages, bottled sports drinks, tea & coffee, as

well as regular, flavored & carbonated waters

Sources: Technomic Disposables Report 2016; IP Analysis

33% 31% 28%

17% 19% 20%

49% 51% 52%

0

20

40

60

80

100

120

2011 2013 2015

U.S. Cup Demand Market Segmentation

Foam Plastic Paper

Single-Use Foodservice Cup Demand(billions)

2011 2013 2015

‘13-’15

CAGR

‘16-’20

CAGR

Paper 52 53 56 2.2% 2.5%

Hot 15 17 19 5.5% 5.7%

Cold 37 36 37 0.7% 0.7%

Plastic 18 20 22 5.5% 6.1%

Foam 35 32 30 (3.5%) (3.9%)

TOTAL 106 106 108 1.1% 1.7%


IP Russia & Ilim JV | Manufacturing Overview

Ilim JV Production1 2015 2016

Bratsk Mill

Total 1,163 1,257

• Softwood bleached pulp 672 756

• Hardwood bleached pulp 293 293

• KLB 198 207

Koryazhma Mill

Total 1,353 1,372

• PM7 paper 188 200

• PM7 CFS 50 50

• Pulp (BHKP, UKP) 311 329

• KLB and others 804 793

Ust-Ilimsk Mill

Total 857 874

• Pulp (BSKP, UKP) Total 840 848

• Hardwood bleached pulp 17 26

IP Russia Production1

Svetogorsk 2016

Total 717

• Coated Paperboard 121

• Pulp (soft/hardwood) 165

• Fine Papers 431

1 Volumes shown in thousand short tons

Koryazhma

BratskUst-Ilimsk

China

Kazakhstan Mongolia

Svetogorsk

Well-Positioned to Serve Target Markets

70


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

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

market pulp growth

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

Access to significant Russian wood basket

1 Source: FisherSolve™ 1Q17 data

$0

$200

$400

$600

$800

$1,000

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

Ma

nu

fac

turi

ng

Co

sts

($/T

on

)

Cumulative Capacity (Thousand Tons)

Cash Cost + Delivery to Beijing, China1

Ust-Ilimsk

Bratsk


Ilim Joint Venture | Full Year Financials

72

2013 2014 2015 2016

Sales Volume (Million tons) 2.7 3.2 3.3 3.5

Sales ($B) 1.9 2.1 1.9 1.9

Debt ($B) 1.5 1.4 1.2 1.5

Adj. Operating EBITDA ($MM) 203 459 694 680

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

EBITDA ($MM) 123 (215) 506 743

Depreciation ($MM) 176 188 128 121

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

Interest Expense ($MM) 39 69 52 81

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

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

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

Ilim JV results are US GAAP basis 1 Represents F/X impact including that related to Ilim JV USD-denominated net debt (balance of ~$0.6B at year end 2016)


Ilim Joint Venture | 2Q17 vs. 1Q17

73

$ Million$ 2Q16 1Q17 2Q17

Sales Volume (thousand tons)

866 748 900

Sales $473 $449 $546

EBITDA $169 $191 $121

F/X (Impact of USD Net Debt)1 $15 $58 ($46)

Adj. Operational EBITDA2 $154 $133 $167

IP Equity Earnings (Loss)3 $46 $50 $21

Seasonally stronger demand and higher pulp pricing drove operational

EBITDA improvement

F/X loss (non-cash) on USD denominated net debt driven by ruble weakening

Seasonally weaker volume expected in 3Q17; equity earnings forecasted to be $35MM4

Ilim JV results are on U.S. GAAP basis 1 Represents F/X impact including amounts related to Ilim JV USD-denominated net debt (balance of ~$0.8B at end of 2Q17); Ilim Group’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 2Q16, 1Q17 and 2Q17 include after-tax F/X gains (losses) (primarily on USD-denominated net debt) of $6MM, $23MM and ($18MM),

respectively4 At June 30, 2017 RUB/USD exchange rate


Adj. Operating EPS

74

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

.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

.53

.84

.97.97

.87

.80

.92.91

.73

.60.65

.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

4Q

1Q

2Q

3Q

4Q

1Q

17

2Q

17

2006 2007 20102008

Impact of Mineral

Rights Gain

2009

.83

2011

.93Final Land Sale

2012 2013 2014 2015 2016


$ Million 2014 2015 2Q16 2016 1Q17 2Q17

Cash Provided by Operations

$3,077 $2,580 $605 $2,478 $633 $645

Cash Invested in Capital Projects

($1,366) ($1,487) ($328) ($1,348) ($374) ($290)

Cash Contribution to Pension Plan

$353 $750 $250 $750 - -

Free Cash Flow $2,064 $1,843 $527 $1,880 $259 $355

Free Cash Flow

75


Balance Sheet | Financial Strength

76

$ B

illio

n

3.2x

$9.4Balance

Sheet

Debt

$0.8 Op. Lease Adj. $0.5 Op. Lease Adj.

$3.6Pension Gap

[2.3x]1

20152014 2016

3.9x

Moody’s methodology: Adjusted Debt reflects gross balance sheet debt plus pension gap and operating leases

Moody’s methodology: 2016 Adjusted EBITDA of $3.9B incorporates pension and lease expense adjustments1 Simple Debt Coverage: Balance Sheet Debt / 2014 IP’s Adjusted EBITDA of $4.1B2 Simple Debt Coverage: Balance Sheet Debt / 2015 IP’s Adjusted EBITDA of $3.9B3 Simple Debt Coverage: Balance Sheet Debt / 2016 IP’s Adjusted EBITDA of $3.5B

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

Pension gap decreased by $0.2B

Made $750MM voluntary

pension contribution

Year-end discount rate decreased from

4.4% (2015) to 4.1% (2016)

Attractive debt financing

10 year and 30 year debt to finance

Weyco pulp acquisition

$ 1.0B cash balance at year end

$9.3Balance

Sheet

Debt

[2.4x]2

$0.5 Op. Lease Adj.

$3.9Pension Gap

3.2x

$11.3Balance

Sheet

Debt

$3.4Pension Gap

[3.2x]3

2016 Highlights


$0

$200

$400

$600

$800

$1,000

$1,200

2017 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 2045 2047

Mil

lio

n

Debt Maturities Other Debt Commercial Paper

1 Primarily foreign debt (intended to be rolled over or refinanced).

Debt Maturity Profile | Maturities as of December 31, 2016

77

1


25%

50%

75%

100%

125%

$0

$300

$600

$900

$1,200

$1,500

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

Maintenance Regulatory Strategic Cost Reduction % of Depreciation

$ Million% of

Depreciation

Reflects continuing operations

Capital Spending

78

~$1,500


Pension Plan Update | As of December 31, 2016

79

• No contribution 1960-2005;

$2.5B contribution 2006-2013

• $1.1B contribution made in

2014-2015

• $750MM voluntary contributions

for 2016

• No contributions required before

2019

($2.8)

($1.5)

($2.4)

($4.1)

($2.2)

($3.9)

($3.6)($3.4)

Billio

n

Year-End Funded Status1

1 Reflects status as of December 31


Pension Plan Update1 | As of December 31, 2016

80

342

545

387

447

364

310

$0

$150

$300

$450

$600

2012 2013 2014 2015 2016 2017E

Millio

n

Annual Pension Expense2 Key Variables 2015 2016 2017E

Assumed Rate of Return

7.75% 7.75% 7.50%

Discount Rate 4.40% 4.10% 4.10%

Average Annualized Returns3

2016 7.1%

Past Five Years 8.7%

Past Ten Years 6.4%

Portfolio Asset Allocation at 12-31-16

Target Actual

Equity 43% - 54% 51%

Bonds 25% - 35% 27%

Real Estate 7% - 13% 10%

Other 8% - 17% 12%1 2013 and onward include Temple-Inland pension plan2 Non-cash expense for U.S. plans only3 Through December 2016

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 approx 200 observations


Maintenance Outages Expenses | 2016 Actual

81

$ Million 1Q16A 2Q16A 3Q16A 4Q16A 2016A

Industrial Packaging $73 $80 $44 $36 $233

North America 73 78 44 35 230

Brazil 0 2 0 1 3

Global Cellulose Fibers1 $50 $9 $16 $3 $78

Printing Papers Total $16 $41 $11 $28 $96


Europe 0 8 10 15 33

Brazil 0 7 0 0 7

India 0 0 1 0 1

Consumer Packaging $19 $3 $2 $11 $35


Europe 0 3 2 0 5

Total Impact $158 $133 $73 $78 $442

1 4Q’16 and FY’16 includes Dec’16 maintenance outages expenses from newly-acquired pulp business


Maintenance Outages Expenses | 2017 Forecast

82

$ Million 1Q17A 2Q17A 3Q17F 4Q17F 2017F

Industrial Packaging $71 $100 $47 $32 $250


Brazil 2 0 0 0 2

Global Cellulose Fibers $50 $44 $8 $11 $113

Printing Papers $23 $43 $2 $13 $81


Europe 0 6 0 0 6

Brazil 0 3 0 2 5

India 0 0 1 0 1

Consumer Packaging $0 $35 $0 $4 $39


Europe 0 2 0 0 2

Total Impact $144 $222 $57 $60 $483


IP North American Downtime

83

146

72 92141 125

86117 93

157

55230

212

85107 41

35

Maintenance Economic

12 15 210 10 0

35

4 29

31

0

29

0

30

1125

0 10

24 253

15 12 429

18 0

55

13190

Containerboard

Uncoated Papers

Cellulose Fibers

Th

ou

sa

nd

To

ns

Thousand T

ons

Th

ou

sa

nd

To

ns

150

Coated Paperboard

201

16

322

46

353

210193

158

13

78

128

Th

ou

sa

nd

To

ns


Total Cash Cost Components | 2Q17 YTD

84

Fiber34%

Materials17%

Freight12%

Labor12%

Energy8%

Overhead10%

Chemicals7%

North American mills only (excludes newly acquired pulp business)


90

95

100

105

110

115

120

125

130

U.S. Mill Wood Delivered Cost Trend | 2Q17 Average Cost Down 2% vs. 1Q17

85

IP data, cost Indexed to January 2007 values

2008 2009 2010 2011 2012 2013 2014 2015 2016


40

60

80

100

120

140

160

180

200

220


U.S. OCC Delivered Cost Trend | 2Q17 Average Cost Up 10% vs. 1Q17

86

2008 2009 2010 2011 2012 2013 2014 2015 2016


U.S. Natural Gas Cost Trend | 2Q17 Average Cost Down 6% vs. 1Q17

87

0

50

100

150

200

250


NYMEX Natural Gas closing prices

2008 2009 2010 2011 2012 2013 2014 2015 2016


0

50

100

150

200

250

300

U.S. Fuel Oil Cost Trend | 2Q17 Average Cost Down 13% vs. 1Q17

88


WTI Crude prices

2008 2009 2010 2011 2012 2013 2014 2015 2016


75

100

125

150

175

200

U.S. Chemical Composite Cost Trend | 2Q17 Average Cost up 1% vs. 1Q17

89


Delivered cost to U.S. facilities: includes Caustic Soda, Sodium Chlorate, Starch and Sulfuric Acid 2007 - 2008 excludes WY PKG

2008 2009 2010 2011 2012 2013 2014 2015 2016


2017 Global Consumption | Annual Purchase Estimates for Key Inputs

90

CommodityNorth

AmericaNon – North

America

Energy

Natural Gas (MMBTUs) 85,000,000 11,000,000

Fuel Oil (Barrels) 450,000 400,000

Coal (Tons) 95,000 600,000

FiberWood (Tons) 60,000,000 8,000,000

Old Corrugated Containers / DLK (Tons) 4,800,000 300,000

Chemicals

Caustic Soda (Tons) 470,000 70,000

Starch (Tons) 390,000 120,000

Sodium Chlorate (Tons) 200,000 60,000

LD Polyethylene (Tons) 40,000 -

Latex (Tons) 10,000 6,000


Global Citizenship | The IP Way Forward


Global Citizenship | Sustaining Forests

92

Our entire business depends upon the

sustainability of forests. We will

continue to lead the world in

responsible forest stewardship to

ensure healthy and productive forest

ecosystems for generations to come.

500,000

acres

certified in

our Forest

Management

Group

$7.5MM

invested in

Forestland

Stewards

since 2013

31% increase

in certified

fiber volume

since 2010


Global Citizenship | Improving our Planet

93

We tackle the toughest issues in

our value chain, reduce our

environmental footprint and

promote the long-term

sustainability of natural capital.

19%

reduction in

greenhouse

gas

emissions

28%

improvement

in effluent

water quality

23%

reduction in

air emissions

11%

reduction in

waste to

landfills

Statistics indicate progress from a 2010 baseline


Global Citizenship | Investing in People

94

We make sustainable investments to

protect and improve the lives of our

employees and mobilize our people,

products and resources to address

critical needs in the communities

where our employees live and work.

Completed

2016 without

a fatal injury

39%

reduction in

serious

safety

incidents

$17.3MM

donated to

charitable

organizations

in 2016

Statistics indicate progress from a 2010 baseline


Global Citizenship | Progress Toward our Vision 2020 Goals

95

* Includes $3 million raised through employee giving and fundraising

WATER QUALITY PROGRESS

28% improvementin effluent water quality

SOLID WASTE PROGRESS

11% reductionin manufacturing waste to landfills

WATER STEWARDSHIP PROGRESS

Mapped water use and risk by location, identified priority mills and initiated annual stakeholder and facility assessments

SUPPLY CHAIN PROGRESS

Established baseline supply chain performance and implemented improvement plans

AIR EMISSIONS PROGRESS

23% reductionin air emissions(PM, SO2, NOx)

GHG EMISSIONS PROGRESS

19% reductionin greenhouse gas emissions

FIBER EFFICIENCY PROGRESS

0.79% fiber lossfrom reporting mills

SAFETY PROGRESS

39% reductionin serious safety incidents

COMMUNITY INVOLVEMENT PROGRESS

$17.3 milliondonated to charitable organizations in 2016*

ENERGY EFFICIENCY PROGRESS

6.4% improvementin purchased energy efficiency

FIBER CERTIFICATION PROGRESS

31% increasein certified fiber volume

RECYCLING PROGRESS

17% increasein recovery of OCC


Investor Relations | Contact Information

96

Guillermo Gutierrez• 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]


International Paper Brazil

Graphic Paper

Manufacture 2015

International Paper Russia

Corporate Social

Responsibility Award 2015

Named by the Ethisphere

Institute as one of the

“World’s Most Ethical

Companies®” 2017

2015 AF&PA Better

Practices, Better Planets

2020 Sustainability Award

International Paper India

Parivartan Award 2015

International Paper Awards & Recognitions

IDG’s Computerworld

“100 Best Places to

Work in IT” 2017

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®” 2017

1

Commercial Appeal’s

“Top Workplace 2016”

2

Institutional Investor’s

“Most Honored Company” 2017

in the Paper & Packaging sector

investor roadshow | august 4, 2017s1.q4cdn.com/.../2017/08/roadshow-handout_website.pdf · investor...

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