[PPT] - Forward-Looking Statements Certain statements in these slides and PowerPoint Presentation

SLIDE 1

Earnings Presentation | Third Quarter 2016

Third Quarter 2016 Earnings | October 27, 2016

SLIDE 2

Earnings Presentation | Third Quarter 2016

Forward-Looking Statements

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
ur 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

rganizations, 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 manufacturing facilities; (vi) risks inherent in conducting business through joint ventures; (vii) the receipt of regulatory approvals for our pending transaction to purchase the pulp business of Weyerhaeuser Company and the successful fulfillment or waiver of all other closing conditions without unexpected delays or conditions; (viii) the failure to realize the expected synergies and cost-savings from the Weyerhaeuser transaction or delay in realization thereof; and (ix) our ability to achieve the benefits we expect from all 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
f new information, future events or otherwise.

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SLIDE 3

Earnings Presentation | Third Quarter 2016

Statements Relating to Non-GAAP Financial Measures

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.

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SLIDE 4

Earnings Presentation | Third Quarter 2016

Ilim JV Information

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. Ilim management has indicated that the financial information was prepared in accordance with International Financial Reporting Standards and extracted from Ilim’s financial statements, but International Paper has not verified

r audited any of this information. 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.”

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SLIDE 5

Earnings Presentation | Third Quarter 2016

Third Quarter 2016 Highlights

5

1 See slide #18 for a reconciliation of cash provided by operations to free cash flow

Delivered solid performance and strong

Free Cash Flow of $575MM

N.A. Industrial Packaging results impacted by rising

input costs ($36MM), mix and modest price erosion

N.A. Containerboard price increase implemented Oct 1st;

box price implementation underway

Improved market demand across N.A. Industrial

Packaging and Global Pulp

Strong operational performance in Papers and Ilim JV
Maintained robust margins overall
Dividend increase of 5% to $1.85/share
Strengthening portfolio
Continue to work toward 4Q’16 close of

Weyerhaeuser’s pulp business acquisition

No longer evaluating packaging opportunities in India

$512 $527 $575 3Q15 2Q16 3Q16

Free Cash Flow1

($MM)

SLIDE 6

Earnings Presentation | Third Quarter 2016

3Q16 Financial Results

6

3Q15 2Q16 3Q16

Sales ($B) $5.7 $5.3 $5.3

Adj. EBIT1 ($MM)

$757 $635 $613

Adj. Operating EPS2

$0.97 $0.92 $0.91 Operating EPS impact

f Ilim F/X3 – IP Share

($0.15) $0.01 $0.01

Adj. EBITDA1 ($MM)

$1,086 $936 $927

Adj. EBITDA Margin1

19.1% 17.6% 17.6% Free Cash Flow4 ($MM) $512 $527 $575

1 From continuing operations before special items and non-operating pension expense 2 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 primarily related to Ilim JV USD-denominated net debt (balance of ~$0.6B at end of 3Q16) 4 See slide #18 for a reconciliation of cash provided by operations to free cash flow

19.1% 17.6% 17.6%

3Q15 2Q16 3Q16

Adj. EBITDA

Margin1

SLIDE 7

Earnings Presentation | Third Quarter 2016

3Q16 vs. 2Q16 Adj. Operating EPS

7

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

.92 .91

(.08) (.02) (.06) .10 .01 .04

2Q16 Price / Mix Volume Operations & Costs Maintenance Outages Input Costs Corporate & Other Items Tax Ilim JV 3Q16

SLIDE 8

Earnings Presentation | Third Quarter 2016

487 429

(34) (4) (20) (36) 36

2Q16 Price / Mix Volume Operations & Costs Maintenance Outages Input Costs 3Q16

Industrial Packaging | Adj. EBIT1 3Q16 vs. 2Q16

8

$ Million

1 Segment adjusted operating profit before special items

SLIDE 9

Earnings Presentation | Third Quarter 2016

N.A. Industrial Packaging | Better Customer Trends Increase IP’s Demand

 Stronger demand trend continued throughout 3Q  3Q volume up 1.2% year-over-year  Key customer segments trending favorably

9

Shipping & Distribution

Strong online retail and traditional distribution growth

Processed Foods

Trend associated with healthier product offerings

Protein

Driven by increased beef & pork production/consumption

Produce

Favorable crop conditions

SLIDE 10

Earnings Presentation | Third Quarter 2016

Consumer Packaging | Adj. EBIT1 3Q16 vs. 2Q16

10

1 Segment adjusted operating profit before special items

73 61

(6) (7) (1) 2

2Q16 Price / Mix Volume Operations & Costs Maintenance Outages Input Costs 3Q16

$ Million

SLIDE 11

Earnings Presentation | Third Quarter 2016

101 135

(9) (3) 14 26 6

2Q16 Price / Mix Volume Operations & Costs Maintenance Outages Input Costs FX 3Q16

Printing Papers | Adj. EBIT1 3Q16 vs. 2Q16

11

$ Million

1 Segment adjusted operating profit before special items

SLIDE 12

Earnings Presentation | Third Quarter 2016

Ilim Joint Venture | 3Q16 vs. 2Q16

12

$ Million 3Q15 2Q16 3Q16 Sales Volume

(thousand tons)

828 866 849 Sales $477 $473 $473 EBITDA $18 $170 $170 F/X (Impact of USD Net Debt1) ($176) $18 $2

Adj. Operational EBITDA2

$194 $152 $168 IP Equity Earnings (Loss)3 ($9)

$46 $46

Strong operational performance with continued good execution
4Q outlook slightly lower than prior quarter; increased volume expected to be

more than offset by seasonally higher wood cost

Ilim JV results are on an IFRS basis with the exception of IP Equity Earnings which is US GAAP

1 Represents F/X impact primarily related to Ilim JV USD-denominated net debt (balance of ~$0.6B at end of 3Q16); Ilim Group’s functional currency is the

Ruble (RUB); Non-functional-denominated currency balances are measured monthly using the month-end exchange rate

2 Before F/X impact primarily on USD-denominated net debt 3 IP Equity Earnings (Loss) for 3Q16 and 2Q16 include after-tax F/X gains (primarily on USD-denominated net debt) of $3MM and $6MM, respectively; 3Q15 includes

an after-tax f/x loss of $(65)MM

SLIDE 13

Earnings Presentation | Third Quarter 2016

$2.3B debt issuance successfully completed

– Pending acquisition of Weyerhaeuser Company’s pulp business – Voluntary contributions to the pension plan1, $500MM in 3Q, $750MM YTD

Dividend increase of 5% from $1.76/share to $1.85/share

$1.05 $1.20 $1.40 $1.60 $1.76 $1.85

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

Annualized Dividend

IP Financial Update

13

1 U.S. qualified pension plan

SLIDE 14

Earnings Presentation | Third Quarter 2016

Capital Allocation | IP’s Balanced Use of Cash

Systematically Return Cash to Shareholders

Trough-Tested Sustainable Dividend (40% − 50% of FCF) Opportunistic Share Repurchases

Cash From Operations

Maintain 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

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SLIDE 15

Earnings Presentation | Third Quarter 2016

North America EMEA & Russia Brazil Volume Paper

Stable Stable Seasonality

Packaging

Strong Daily Demand / 4 Less Days EMEA Seasonal Improvement Stable

Pricing / Mix Paper

Pulp Mix Impact Stable Improving

Packaging

Increase Stable Stable

Operations & Other Paper

Hurricane / Seasonality Stable Stable

Packaging

Hurricane / Other Stable Stable

Inputs & Freight Paper

Higher Energy Inflationary Pressure Stable

Packaging

Higher Energy Stable Stable

Mill Maintenance Outages Paper

Decrease $2MM Increase $5MM Increase $1MM

Packaging

Increase $6MM Decrease $2MM N/A

Ilim JV Equity Earnings

4Q operational outlook slightly lower than prior quarter
Non-recurring 3Q currency impact of $0.01 on USD net debt, assuming stable

F/X as of Sept. 30, 2016

Other Items

Tax rate, ~32%
Corporate expense, ~$15MM in 4Q16
Higher interest expense

Fourth Quarter Outlook | Changes from 3Q16

15

SLIDE 16

Earnings Presentation | Third Quarter 2016

Key Takeaways & Outlook

16

 IP continues to perform well amidst an uneven global environment  Remain committed to Free Cash Flow generation and Adj. ROIC1; YTD Adj. ROIC of 10.3% well above cost of capital  Relentless focus on execution and strong margins  Financial discipline  Focus on value-creating catalysts

Containerboard and box price increase
Weyerhaeuser pulp business acquisition
Madrid mill conversion

1 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]

SLIDE 17

Earnings Presentation | Third Quarter 2016

Appendix

Investor Relations Contacts

Jay Royalty 901-419-1731 Michele Vargas 901-419-7287

Media Contact

Tom Ryan 901-419-4333

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SLIDE 18

Earnings Presentation | Third Quarter 2016

$ Million 3Q15 2Q16 3Q16 Cash Provided by Operations $837 $605 $341 Cash Invested in Capital Projects ($325) ($328) ($266) Cash Contribution to Pension Plan

$250

$500 Free Cash Flow $512

$527 $575 Free Cash Flow

18

SLIDE 19

Earnings Presentation | Third Quarter 2016

Maintenance Outages Expenses | 2016 Forecast

$ Million 1Q16A 2Q16A 3Q16A 4Q16F 2016F Industrial Packaging $73 $80 $44 $38 $235 North America 73 78 44 38 233 Brazil 2 2 Printing Papers Total $66 $50 $26 $29 $171 North America 66 35 16 14 131 Europe 8 9 14 33 Brazil 7 1 8 India 1 1 Consumer Packaging $19 $3 $3 $13 $38 North America 19 12 31 Europe 3 3 1 7 Total Impact $158 $133 $73 $80 $444

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SLIDE 20

Earnings Presentation | Third Quarter 2016

North American Downtime

20

48 93 140 146 72 92 141 125 86 69 53 55 78 230 212 85 107

Maintenance Economic

7 18 12 15 21

41 13 4 29 31

1 31 13 29 30 11 25 12 18 15 12 4 29 18

131

Containerboard Uncoated Papers Pulp

Thousand Tons Thousand Tons Thousand Tons Thousand Tons

146 150 117 48

Coated Paperboard

201 31 16 322 46 353 210 193

SLIDE 21

Earnings Presentation | Third Quarter 2016

Special Items Before Tax | Continuing Operations

21

Special Items Pre-Tax ($ Million) 3Q15 2Q16 3Q16 Industrial Packaging

Impairment of Asia Box & Restructuring ($28) ($5)

Consumer Packaging

Riegelwood Repurposing ($7) Impairment of Sun JV Goodwill & PPE ($186) Other ($1)

Printing Papers

Pulp Business Acquisition ($5) ($7)

Corporate

Timber Monetization Restructure ($17) Debt Extinguishment ($29) India Packaging Evaluation Write-off ($17) Regulatory Pre-Engineering Write-off ($8) Total Special Items Before Tax

($211) ($33) ($66)

SLIDE 22

Earnings Presentation | Third Quarter 2016

Special Items Net of Taxes

22

2Q16 3Q16

$ Million EPS $ Million EPS

Earnings Before Special Items $379 $0.92 $380 $0.91 Special Items Net of Taxes:

Debt Extinguishment

($18)

India Packaging Evaluation Write-off

($11)

Regulatory Pre-Engineering Write-off

($5)

Tax Adjustments

($17)

Impairment of Asia Box & Restructuring

($20) ($4)

Pulp Business Acquisition

($3) ($4) Total Special Items Net of Taxes ($40) ($0.10) ($42) ($0.10) Non-Operating Pension Expense ($299)1 ($0.72)1 ($26) ($0.06) Net Earnings $40 $0.10 $312 $0.75

1 Includes non-cash settlement charge before tax of $439MM and net of taxes of $270MM, or ($0.65) EPS

SLIDE 23

Earnings Presentation | Third Quarter 2016

Adj. Operating Profits by Industry Segment | Continuing Operations

23

$ Million 3Q15 2Q16 3Q16

Earnings (Loss) From Continuing Operations Before Income Taxes and Equity Earnings

$329 ($14) $373

Interest Expense, Net

$141 $129 $132

Noncontrolling Interest / Equity Earnings Adjustment

$6

$1

Corporate Items, Net

$10 $26 $11

Special Items, Net

$211 $33 $66

Non-Operating Pension Expense

$76 $4871 $42

Adj. Operating Profit2

$773 $661 $625

Industrial Packaging2

$553 $487 $429

Printing Papers2

$179 $101 $135

Consumer Packaging2

$41 $73 $61

Total Adj. Industry Segment Operating Profit

$773 $661 $625

Equity Earnings (Loss), net of taxes – Ilim

($9) $46 $46

1 Includes non-cash settlement charge before tax of $439MM 2 Excludes special items (Non-GAAP)

SLIDE 24

Earnings Presentation | Third Quarter 2016

Geographic Business Segment Operating Results

24

$ Million

Sales D & A

Adj. Operating Profit2

3Q15 2Q16 3Q16 3Q16 3Q15 2Q16 3Q16

Industrial Packaging North America $3,175 $3,086 $3,099 $166 $557 $496 $439 Europe $262 $295 $313 $9 $1 $6 $0 Brazil $55 $51 $61 $5 ($4) ($12) ($9) Asia $150 $165 $109 $0 ($1) ($3) ($1) Printing Papers North America $500 $466 $478 $21 $81 $51 $81 Europe $284 $318 $306 $12 $30 $36 $41 Brazil $219 $220 $227 $26 $56 $34 $53 India $39 $42 $35 $5 ($4) ($2) ($8) N.A. Pulp $216 $225 $220 $25 $16 ($18) ($32) Consumer Packaging North America $494 $416 $407 $27 $30 $48 $39 Europe $80 $85 $87 $5 $20 $25 $22 Asia (Sun JV)1 $235

($9)
1 Sold in 4Q15

2 Excludes special items (Non-GAAP)

SLIDE 25

Earnings Presentation | Third Quarter 2016

2016 Operating Earnings

25

Pre-Tax $MM Tax $MM Non- controlling Interest $MM Equity Earnings Net Income $MM Average Shares MM Diluted EPS1 Net Earnings from Continuing Operations 1Q16 $317 ($41)

$63

$339 414 $0.82 2Q16 ($14) $9

$45

$40 415 $0.10 3Q16 $373 ($107) $3 $43 $312 415 $0.75 Net Special Items 1Q16 $38 ($74)

($36)

414 ($0.09) 2Q16 $33 $7

$40

415 $0.10 3Q16 $66 ($24)

$42

415 $0.10 Non-Operating Pension Expense 1Q16 $44 ($17)

$27

414 $0.07 2Q16 $487 ($188)

$2992

415 $0.722 3Q16 $42 ($16)

$26

415 $0.06

Adj. Operating Earnings

1Q16 $399 ($132)

$63

$330 414 $0.80 2Q16 $506 ($172)

$45

$379 415 $0.92 3Q16 $481 ($147) $3 $43 $380 415 $0.91

1 A reconciliation to GAAP EPS is available at www.internationalpaper.com under the Performance tab, Investors section 2 Includes non-cash settlement charge before tax of $439MM and net of taxes of $270MM, or ($0.65) EPS

SLIDE 26

Earnings Presentation | Third Quarter 2016

Adj. Operating EPS

26

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

.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

2006 2007 2010 2008

Impact of Mineral Rights Gain

2009

.83

2011

.93

Final Land Sale

2012 2013 2014 2015 2016

SLIDE 27

Earnings Presentation | Third Quarter 2016

.97 .91

(.21) (.06) (.01) .02 .03 .01 .03 .13

3Q15 Price / Mix Volume Operations & Costs Maintenance Outages Input Costs Corporate & Other Items Tax Ilim JV 3Q16

3Q16 vs. 3Q15 Adj. Operating EPS

27

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

SLIDE 28

Earnings Presentation | Third Quarter 2016

553 429

(90) (43) (16) 18 7

3Q15 Price / Mix Volume Operations & Costs Maintenance Outages Input Costs 3Q16

Industrial Packaging | Adj. EBIT1 3Q16 vs. 3Q15

28

$ Million

1 Segment adjusted operating profit before special items

SLIDE 29

Earnings Presentation | Third Quarter 2016

3Q16 vs. 2Q16 3Q16 vs. 3Q15 Business

Volume Price / Mix per Ton Volume Price / Mix per Ton

N.A. Container1 Flat ($5) 1% ($27) European Container (8%) €7 Flat €3

Average IP volume and price realization (includes the impact of mix across all segments)

1 Corrugator plant sales on FBA shipping day basis

Industrial Packaging | Volume and Pricing Trends

29

SLIDE 30

Earnings Presentation | Third Quarter 2016

25.2% 22.4% 20.1% 23.2% 22.6% 18.3% 21.2% 20.8%

IP PCA WestRock

3Q15 2Q16 3Q16

WRK reports 11/07/16

21.5%

N.A. Industrial Packaging Relative Adj. EBITDA Margins

30

1 Trailing twelve months

IP Adj. EBITDA margins based on North American Industrial Packaging operating profit before special items Excludes the Recycling Business and revenue from trade volumes Competitor Adj. EBITDA margin estimates obtained from public filings and IP analysis

TTM1 TTM1

22.1%

SLIDE 31

Earnings Presentation | Third Quarter 2016

41 61

(14) (4) 17 4 11 6

3Q15 Price / Mix Volume Operations & Costs Maintenance Outages Input Costs Sun JV / Other 3Q16

Consumer Packaging | Adj. EBIT1 3Q16 vs. 3Q15

31

$ Million

1 Segment adjusted operating profit before special items

SLIDE 32

Earnings Presentation | Third Quarter 2016

Average IP price realization (includes the impact of mix across all grades)

1 All periods exclude Carolina brand coated bristols sales

3Q16 vs. 2Q16 3Q16 vs. 3Q15

Volume Price / Mix per Ton Volume Price / Mix per Ton

N.A. Coated Paperboard1 Flat ($15) (3%) ($43)

Revenue Revenue

Foodservice 1% Flat Consumer Packaging | Volume and Pricing Trends

32

SLIDE 33

Earnings Presentation | Third Quarter 2016

179 135

(24) (2) (12) (12) 3 3

3Q15 Price / Mix Volume Operations & Costs Maintenance Outages Input Costs FX 3Q16

33

Printing Papers | Adj. EBIT1 3Q16 vs. 3Q15

$ Million

1 Segment adjusted operating profit before special items

SLIDE 34

Earnings Presentation | Third Quarter 2016

3Q16 vs. 2Q16 3Q16 vs. 3Q15 Business

Volume Price / Mix per Ton Volume Price / Mix per Ton

N.A. Printing Papers 3% Flat (3%) ($16) N.A. Pulp1 (3%) ($1) 14% ($72) European Papers2 (6%) (€14) 1% €25

Average IP volume and price realization (includes the impact of mix across all grades)

1 Reflects Fluff and Market Pulp combined 2 Excludes Russia

Printing Papers | Volume and Pricing Trends

34

SLIDE 35

Earnings Presentation | Third Quarter 2016

N.A. Printing Papers Relative Adj. EBITDA Margins

35

20.4% 14.8% 12.0% 15.0% 13.4% 14.0% 21.3% 19.1%

IP PCA Domtar

3Q15 2Q16 3Q16

1 Trailing twelve months

Excludes N.A. Pulp IP Adj. EBITDA margins based on operating profit from continuing operations before special items Competitor Adj. EBITDA margin estimates obtained from public filings and IP analysis

TTM1

16.0%

TTM1

14.8%

UFS reports 10/27/16

SLIDE 36

Earnings Presentation | Third Quarter 2016

Printing Papers | IP Brazil

36

$ Million 3Q15 2Q16 3Q16 Sales $219 $220 $227

Adj. Earnings

$56 $34 $53

Adj. EBITDA Margin

35% 25% 35% 3Q16 vs. 2Q16 3Q16 vs. 3Q15

Uncoated Freesheet

Volume Price / Mix per Ton Volume Price / Mix per Ton

Domestic (BRL) 12% R$43 (9%) R$573 Export (USD) (7%) ($13) (3%) ($67)

Segment adjusted operating profit before special items IP Brazil results are reported in the Printing Papers segment Average IP Brazil price realization (includes the impact of mix across all grades)

SLIDE 37

Earnings Presentation | Third Quarter 2016

Ilim Joint Venture | Full Year Financials

37

2009 2010 2011 2012 2013 2014 2015

Sales Volume (Million short tons) 2.6 2.8 2.8 2.9 2.7 3.2 3.3 Sales ($B) 1.3 1.9 2.2 2.0 1.9 2.1 1.9 Debt ($B) 0.4 0.5 0.9 1.2 1.5 1.4 1.2

Adj. Operating EBITDA ($MM)

197 516 591 291 208 470 724 F/X Gain (loss)1 (35) 12 (60) 39 (80) (684) (218) EBITDA ($MM) 163 528 531 330 128 (214) 506 Depreciation ($MM) 120 121 124 134 177 193 240 EBIT ($MM) 43 407 406 196 (49) (408) 266 Interest Expense ($MM) 28 18 7 6 39 69 53 Net Income / (Loss) ($MM) (19) 266 299 132 (72) (362) 150 IP Equity Earnings / (Loss) ($MM) (27) 103 134 56 (46) (194) 131 Dividends (to IP) ($MM) 50 34 85 56 35

Ilim JV results are IFRS basis IP Equity Earnings (Loss) on US GAAP basis

1 Represents F/X impact primarily related to Ilim JV USD-denominated net debt (balance of ~$0.7B at year end 2015)

SLIDE 38

Earnings Presentation | Third Quarter 2016

Ilim Joint Venture | Volume and Pricing Trends

38

3Q16 vs. 2Q16 3Q16 vs. 3Q15 Business

Volume Price / Mix per Ton Volume Price / Mix per Ton

Pulp (metric ton) (1%) $10 6% ($46)

Average Ilim JV (100%) volume and price realization (includes the impact of mix across all grades and destinations)

SLIDE 39

Earnings Presentation | Third Quarter 2016

Total Cash Cost Components | 3Q16 YTD Fiber 33% Materials 16% Freight 12% Labor 13% Energy 8% Overhead 10% Chemicals 8%

39

North American mills only

SLIDE 40

Earnings Presentation | Third Quarter 2016

($8) ($26) ($1) ($5)

Fiber Energy Chemicals Freight

North America Outside North America

($36) ($4) $0

Industrial Packaging Printing Papers Consumer Packaging

Energy Wood Chemicals Freight OCC

By Business By Input Type

Input costs ($MM) for continuing businesses

Global Input Costs vs. 2Q16 | $40MM Unfavorable, or $0.06/Share

40 OCC Wood

SLIDE 41

Earnings Presentation | Third Quarter 2016

$9 $1 $2 $9

Fiber Energy Chemicals Freight

North America Outside North America

$7 $3 $11

Industrial Packaging Printing Papers Consumer Packaging

Energy Wood Chemicals Freight OCC

By Business By Input Type

Global Input Costs vs. 3Q15 | $21MM Favorable, or $0.03/Share

41

Input costs ($MM) for continuing businesses

OCC Wood

SLIDE 42

Earnings Presentation | Third Quarter 2016 90 95 100 105 110 115 120 125 130

U.S. Mill Wood Delivered Cost Trend | 3Q16 Average Cost Down 3% vs. 2Q16

Cost Indexed to January 2007 values

2007 2008 2009 2010 2011 2012 2013 2014 2015

42

2016

SLIDE 43

Earnings Presentation | Third Quarter 2016 40 60 80 100 120 140 160 180 200

Cost Indexed to January 2007 values

U.S. OCC Delivered Cost Trend | 3Q16 Average Cost Up 16% vs. 2Q16

43

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

SLIDE 44

Earnings Presentation | Third Quarter 2016 50 100 150 200 250

U.S. Natural Gas Cost Trend | 3Q16 Average Cost Up 39% vs. 2Q16

44

Cost Indexed to January 2007 values NYMEX Natural Gas closing prices

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

SLIDE 45

Earnings Presentation | Third Quarter 2016 50 100 150 200 250 300

U.S. Fuel Oil Cost Trend | 3Q16 Average Cost Up 20% vs. 2Q16

45

Cost Indexed to January 2007 values WTI Crude prices

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

SLIDE 46

Earnings Presentation | Third Quarter 2016 75 100 125 150 175 200

U.S. Chemical Composite Cost Trend | 3Q16 Average Cost Up 2% vs. 2Q16

46

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

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

SLIDE 47

Earnings Presentation | Third Quarter 2016 47

Commodity

U. S.

Non – U. S. Energy

Natural Gas (MM BTUs)

70,000,000 11,000,000

Fuel Oil (Barrels)

525,000 460,000

Coal (Tons)

200,000 600,000 Fiber

Wood (Tons)

51,000,000 7,700,000

Old Corrugated Containers / DLK (Tons)

4,600,000 400,000 Chemicals

Caustic Soda (Tons)

370,000 70,000

Starch (Tons)

380,000 120,000

Sodium Chlorate (Tons)

160,000 50,000

LD Polyethylene (Tons)

40,000

Latex (Tons)

10,000 6,000

2016 Global Consumption | Annual Purchase Estimates for Key Inputs