International Paper : Wells Fargo Virtual 2021 Industrials Conference Presentation

Wells Fargo 2021 Virtual Industrials Conference

May 5, 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. These statements are often identified by the words "will," "may," "should," "continue," "anticipate," "believe," "expect," "plan," "appear," "project," "estimate," "intend" and words of a similar nature. These statements are not guarantees of future performance and reflect management's current views with respect to future events, which are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these statements. Factors which could cause actual results to differ include but are not limited to: (i) developments related to the COVID-19 pandemic, including the spread of new variants of the virus, the effectiveness and distribution of vaccines, continuing negative global economic conditions arising from the pandemic, impacts of governments' responses to the pandemic on our operations, impacts of the pandemic on commercial activity, our customers and business partners and consumer preferences and demand, supply chain disruptions, and disruptions in the credit or financial markets; (ii) the level of indebtedness and changes in interest rates; (iii) industry conditions, including but not limited to changes in the cost or availability of raw materials, energy and transportation costs, competition we face, cyclicality and changes in consumer preferences, demand and pricing for our products (including changes resulting from the COVID-19 pandemic); (iv) domestic and global economic conditions and political changes, changes in currency exchange rates, trade protectionist policies, downgrades in 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); (vii) any material disruption at any of our manufacturing facilities due to severe weather, natural disasters or other causes (including as the result of the COVID-19 pandemic); (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) the receipt of regulatory approvals relating to the spin-off transaction without unexpected delays or conditions; (xiii) our ability to successfully separate the SpinCo business (known as Sylvamo Corporation) and realize the anticipated benefits of the spin-off transaction; (xiv) our ability to satisfy any necessary conditions to consummate the spin-off transaction within the estimated timeframes or at all; and (xv) the final terms and conditions of any spin-off transaction, including the amount of any dividend by Sylvamo to us and the terms of any ongoing commercial agreements and arrangements between us and Sylvamo following any such transaction, the costs of any such transaction, the nature and amount of indebtedness incurred by Sylvamo, the qualification of the spin-off transaction as a tax-free transaction for U.S. federal income tax purposes (including whether an IRS ruling will be obtained), diversion of management's attention and the impact on relationships with customers, suppliers, employees and other business counterparties, and the impact of any such transaction on the businesses of the Company and Sylvamo and the relationship between the two companies following any such transaction. 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 it currently believes 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 Graphic Packaging Investment Information

All financial information and statistical measures regarding our 50/50 Ilim joint venture in Russia ("Ilim") and our 7.4% ownership interest in a subsidiary of Graphic Packaging Holding Company, other than historical International Paper Equity Earnings and dividends received by the Company, have been prepared by the management of Ilim and Graphic Packaging Holding Company, respectively. Any projected financial information and statistical measures reflect the current views of Ilim and Graphic Packaging Holding Company management and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such projections. See "Forward-Looking Statements" above.

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Our Visionis to be among the most successful, sustainable and responsible companies in the world.

Our Missionis to improve people's lives, the planet and our company's performance by

transforming renewable resources into products people depend on every day

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Data as of 2019, over a 2010 baseline

Vision 2020 Goals Progress

FIBER CERTIFICATION

Goal:Increase third-party certified fiber by 35%

47%	increase in certified
	fiber volume

FIBER EFFICIENCY

Goal:Reduce fiber lost in the manufacturing process to less than 0.75%

0.63%fiber loss from reporting mills

GHG EMISSIONS

Goal:Reduce greenhouse gas (GHG) emissions (scope 1 and 2) by 20%

22%reduction in greenhouse gas emissions

RECYCLING

Goal:Increase recovery of old corrugated containers (OCC) by 15% by exploring new sources and diverting usable fiber from landfills

63%increase in recovery of old corrugated containers (OCC)

ENERGY EFFICIENCY	AIR EMISSIONS
Goal:Improve efficiency in purchased energy	Goal:Reduce air emissions (PM, SO2, NOX )
use by 15%	by 30%
improvement in purchased	reduction in air emissions
5%energy efficiency	49%(PM, SO2, NOx)

SAFETY

Goal:Injury-free workplace

65%	reduction in serious
	safety incidents

SUPPLY CHAIN

Goal:Establish processes promoting transparency; managing risk by monitoring, identifying opportunities to collaborate with suppliers

Evolved Supplier Code of Conduct to Third Party Code of Conduct to include all third parties across supply chain and expanded risk monitoring processes

WATER QUALITY

Goal:Reduce mill water discharges of oxygen-depleting substances to receiving streams by 15%

28%decrease in oxygen- depleting substances

COMMUNITY ENGAGEMENT

Goal:Measure and report on our charitable support for hunger, education, health and wellness and disaster relief in our communities

More thandonated to charitable organizations $134Msince 2010, including more than

$24 million in 2019

WATER STEWARDSHIP

Goal:Integrate water management into regular facility assessment and proactively engage with stakeholders in communities to address water- related issues within the watershed

Updated water risk framework and continued annual facility assessments. Seventy percent of mills engaging local stakeholders on water

SOLID WASTE

Goal:Reduce manufacturing waste to landfills by 30% and ultimately to zero

19%reduction in manufacturing waste to landfills

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