3rd Quarter 2021 Earnings Conference Call

Third Quarter 2021 Earnings

October 27, 2021

Forward-Looking Statements

Certain statements in this presentation that are not historical in nature may be considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "expects," "anticipates," "believes," "estimates" and similar expressions identify forward-looking statements. These statements are not guarantees of future performance and 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) developments related to the COVID-19 pandemic, including the spread of new variants of the virus, the effectiveness, acceptance and availability of vaccines and booster shots, and associated levels of vaccination as well as the possibility that strains of the virus may be resistant to currently available vaccines, impacts of government responses to the pandemic on our operations, including vaccine mandates, impacts of the pandemic on global and domestic economic conditions, including with respect to commercial activity, our customers and business partners, consumer preferences and demand, supply chain shortages and disruptions, inflationary pressures, and disruptions in the credit or financial markets; (ii) the level of our indebtedness and changes in interest rates; (iii) industry conditions, including but not limited to changes in the cost or availability of raw materials, energy sources and transportation sources, the availability of labor and competitive labor market conditions, competition we face, cyclicality and changes in consumer preferences, demand and pricing for our products (including any such 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 our credit ratings, and/or the credit ratings of banks issuing certain letters of credit, issued by recognized credit rating organizations, (v) the amount of our 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);

1. any material disruption at any of our manufacturing facilities or other adverse impact on our operations due to severe weather, natural disasters, climate change or other causes; (viii) risks inherent in conducting business through joint ventures; (ix) our ability to achieve the benefits expected from, and other risks associated with, acquisitions, joint ventures, divestitures and other corporate transactions, (x) information technology risks; (xi) loss contingencies and pending, threatened or future litigation, including with respect to environmental related matters; (xii) our ability to realize the anticipated benefits of the spin-off transaction; and (xiii) the impact of the spin-off transaction on the Company and the relationship between the two companies going forward, including the ongoing commercial agreements and arrangements between us and Sylvamo. These and other factors that could cause or contribute to actual results differing materially from such forward-looking statements can be found in our press releases and U.S. Securities and Exchange Commission filings. In addition, other risks and uncertainties not presently known to the Company or that we currently believe to be immaterial could affect the accuracy of any forward-looking statements. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

Statements Relating to Non-U.S. GAAP Measures

While the Company reports its financial results in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"), during the course of this presentation, certain non-U.S. GAAP financial measures are presented. Management believes certain non-U.S. GAAP financial measures, when used in conjunction with information presented in accordance with U.S. GAAP, can facilitate a better understanding of the impact of various factors and trends on the Company's financial condition and results of operations. Management also uses these non-U.S. GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company's performance. The non-GAAP financial measures in this presentation have limitations as analytical tools and should not be considered in isolation or as a substitute for an analysis of our results calculated in accordance with GAAP. In addition, because not all companies use identical calculations, our presentation of non-GAAP financial measures in this presentation may not be comparable to similarly titled measures disclosed by other companies, including companies in our industry. A reconciliation of all presented non-U.S. GAAP measures (and their components) to U.S. GAAP financial measures is available on IP's website at http://www.internationalpaper.com/performance/presentations-events/webcasts-presentations.

Ilim JV and Sylvamo Corporation Investment Information

All financial information and statistical measures regarding our 50/50 Ilim joint venture in Russia ("Ilim"), and our 19.9% ownership interest in Sylvamo Corporation, other than historical International Paper Equity Earnings and dividends received by International Paper, have been prepared by the management of Ilim and Sylvamo Corporation, respectively. Any projected financial information and statistical measures reflect the current views of Ilim and Sylvamo Corporation 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.

Earnings Presentation I Third Quarter 2021	2

Third Quarter 2021 Highlights

• Earnings growth and margin expansion
• • $938MM Adjusted EBITDA2
  • $519MM Free Cash Flow3 generation
• Continued strong demand for corrugated packaging and solid demand for absorbent pulp
• Widespread supply chain constraints impacted volume
• Strong progress on price realization from prior increases
• Input costs significantly higher than anticipated
• Strong Ilim performance with equity earnings of $95MM
• Strong cash generation
• Capital allocation:
• • Debt reduction of $235MM
  • Dividends of $199MM and Share repurchases of $212MM
  • Printing Papers spin-off completed October 1

Adjusted Operating EPS1

$1.35 3Q21

$1.06 2Q21

$0.71 3Q20

Earnings Presentation I Third Quarter 2021	See footnotes beginning on slide 15	3

Third Quarter 2021 Financials

	3Q20	2Q21	3Q21
Sales ($B)	$5.1	$5.6	$5.7
Adjusted EBIT1 ($MM)	$493	$487	$620
Adjusted Operating EPS2	$0.71	$1.06	$1.35
Adjusted EBITDA1 ($MM)	$813	$793	$938
Adjusted EBITDA Margin1	15.9%	14.1%	16.4%
Equity Earnings ($MM)	$(28)	$104	$94
Free Cash Flow3 ($MM)	$616	$633	$519

Adjusted EBITDA1 ($MM)

$938 3Q21

$793 2Q21

$813 3Q20

Earnings Presentation I Third Quarter 2021	See footnotes beginning on slide 15	4

3Q21 vs. 2Q21 Adjusted Operating EPS1

									2
				.34	(.46)
									1.8
	.43	(.06)	.03						1.6
					.04	(.03)	1.35
						1.4
1.06									1.2
									1
									0.8
									0.6
									0.4
									0.2
									0
2Q'21	Price/Mix	Volume	Operations	Maintenance	Input Costs	Corporate	Equity Earnings	3Q'21
			& Costs	Outages		& Other Items

Earnings Presentation I Third Quarter 2021	See footnotes beginning on slide 15	5