International Paper Company · NYSE:IP
International Paper — Investor Day (March 2025)
100 slides from International Paper's investor day presentation, Mar 25, 2025
Slide 1: Investor Day 2025
Investor Day 2025 MARCH 25 | NEW YORK CITY
Slide 2: Welcome and Opening Remarks
Welcome and Opening Remarks José María Rodríguez Meis VP, Investor Relations 2025 Investor Day 2
Slide 3: Forward-looking Statements
Forward-looking Statements Certain statements in these presentations that are not historical in nature may be considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements can be identified by the use of for
Slide 4: Today's Agenda
Today’s Agenda 9:00 am Welcome and Opening Remarks EMEA Packaging Overview and José María Rodríguez Meis | VP, Investor Relations DS Smith Update Capturing Opportunity to Create a Winning Position Company Vision and Strategic Direction Tim Nicholls | CFO & EVP, International Paper; President, Transf
Slide 5: International Paper Video
International Paper Video 2025 Investor Day 5
Slide 6: Company Vision and Strategic Direction
Company Vision and Strategic Direction Transforming into a Differentiated and Sustainable Global Packaging Company Andy Silvernail Chairman & CEO 2025 Investor Day 6
Slide 7: Company Vision and Strategic Direction Key Messages
Company Vision and Strategic Direction Key Messages Taking Bold Steps to Accelerate Our Growth 1 2 3 4 Building on strong Prioritizing the Applying 80/20 Winning in foundation to right geographies, to drive strategy attractive markets achieve above- customers, and and focus through decisive market g
Slide 8: Transforming IP Through Strategic Focus and a Culture of Accountability
Transforming IP Through Strategic Focus and a Culture of Accountability Rooted in Our Mission and Values VA LU E S SAFETY Above all, we care about people. We look out for each other to ensure everyone is physically and emotionally safe. MISSION Together with our ETHICS We act honestly and operate wi
Slide 9: Sustainability is Woven Throughout Our Business
Sustainability is Woven Throughout Our Business OUR SUSTAINABILITY JOURNEY ▪ Protecting forests through responsible stewardship Balanced Building on Where We Are Today to be Resource ▪ Improving value chain footprint by enhancing Stronger Together Well into the Future Management energy efficiency an
Slide 10: International Paper Snapshot
International Paper Snapshot (NYSE: IP, LSE: IPC) MEMPHIS, TN $27.5B1 $27.1B2 GLOBAL HQ ~51,000 MARKET-CAP 41 SALES ~450 WHY IP Committed to Maximizing Shareholder Value CUSTOMERS MILLS OPERATING FACILITIES 15% Focused portfolio serving attractive and growing markets 38% $24.0B2 13% Net Sales by 34%
Slide 11: Resilient Markets with Steady Demand Growth and Significant Addressable Market Opportunity
Resilient Markets with Steady Demand Growth and Significant Addressable Market Opportunity NORTH AMERICA1 Enablers to Grow Above Market TAM: ~$50B | Long-term Growth: ~3.0% - 4.0% across Both Geographies ▪ #1 position in the leading profit pool TREND IP ADVANTAGE ▪ ~1.0% - 1.5% demand growth2 driven
Slide 12: Stable Market Dynamics
Stable Market Dynamics U.S. Corrugated Packaging Shipments vs. EMEA Industry Shipments vs. Industry Price1,2,3 Corrugated Box Price4,5 Price Shipments Price Shipments 1,000 800 800 80,000 800 70,000 600 600 600 60,000 400 400 50,000 400 200 200 40,000 0 200 0 30,000 2010 2017 2024 2014 2011 2012 201
Slide 13: Update on DS Smith Acquisition
Update on DS Smith Acquisition Lower 2025 Expectations Compared to Proxy Expect to Achieve Greater Synergy1 Assumptions Given Softer Market Environment Targets Through Clear Improvement Drivers ▪ Price decline in second half of 2024 $600M - $700M ▪ Lower volumes than anticipated due to lower industr
Slide 14: Maximizing Value Through Our Competitive Differentiators
Maximizing Value Through Our Competitive Differentiators Long- Continued optimization of standing, Breadth and assets and locations to best Strategic Scale of Global serve customers and Customer Capabilities capture demand growth Relationships Sustainable Execution- Experienced and execution- Deep c
Slide 15: Aligning Resources with 80/20 Performance System
Aligning Resources with 80/20 Performance System A Proven Enabler and Methodology for Success CUSTOMERS REVENUE RESOURCES 80/20 ZERO UP ▪ Aligning right resources with what matters most 20% 80% 20% ▪ Driving greater leadership accountability and empowerment at mill and box plant level through increa
Slide 16: 80/20 in Action: Driving Our Cultural Transformation
80/20 in Action: Driving Our Cultural Transformation Applying Learnings across the Business SIMPLIFY SEGMENT RESOURCE GROW Reduce Complexity Implement Lighthouses Allocate Capital and Talent Drive Commercial Excellence ▪ Push resources and decision ▪ Segment customers and ▪ Drive disciplined ▪ Impro
Slide 17: Focusing Actions Around Two Key Themes to Deliver Profitable Above-market Growth
Focusing Actions Around Two Key Themes to Deliver Profitable Above-market Growth WHERE TO PLAY HOW TO WIN Focusing Efforts on Most Positioning Ourselves Attractive Opportunities to Win by Creating a within a Market Virtuous Cycle 2025 Investor Day 17
Slide 18: Where to Play: Applying a Disciplined Formula
WHERE TO PLAY Where to Play: Applying a Disciplined Formula OUR FORMULA FOR SUCCESS GEOGRAPHIES CUSTOMERS PRODUCTS With Attractive Profit Pools and Favorable We Are Well-positioned to Serve and Who That Allow Us to Differentiate and Earn Supply and Demand Dynamics Differentially Value What We Are Go
Slide 19: Where to Play in Action: Identify Markets with Attractive Demand Trends
Where to Play in Action: Identify Markets with Attractive WHERE TO PLAY Demand Trends to Serve with Differentiated Solutions OUR FORMULA FOR SUCCESS GEOGRAPHIES CUSTOMERS PRODUCTS With Attractive Profit Pools and Favorable We Are Well-positioned to Serve and Who That Allow Us to Differentiate and Ea
Slide 20: How to Win: Virtuous Cycle to Drive Sustainable Value Creation
HOW TO WIN How to Win: Virtuous Cycle to Drive Sustainable Value Creation SUPERIOR Advantaged Cost High Relative Supply Superior Customer CUSTOMER EXPERIENCE Position Position (RSP) Experience ▪ Strengthens ▪ Builds advantaged ▪ Investing in market position capabilities and our customers ▪ Expands m
Slide 21: Controlling the Controllable Through Advantaged Cost Position
HOW TO WIN Controlling the Controllable Through Advantaged Cost Position Simplifying Structure to Align Resources KEY ACTIONS IN PLAY and Assets with the Right Customers ▪ Streamlining enterprise overhead structure Implement Zero Up program to reset our ▪ Optimizing North American and European under
Slide 22: Maximizing Opportunities in Geographies with High Relative Supply Position
Maximizing Opportunities and Benefits in HOW TO WIN Geographies with High Relative Supply Position Invest in Go-to-Market Capabilities and KEY ACTIONS IN PLAY Capacity in Appealing Geographies ▪ Investing across box plant network to increase productivity and scale in target Overserve and grow with 8
Slide 23: Delivering a Superior Customer Experience
HOW TO WIN Delivering a Superior Customer Experience Re-establish Service Excellence Through KEY ACTIONS IN PLAY Clear Transformative Initiatives ▪ Reallocating resources to further maximize our scale and customer offering Reduce organizational complexity - Drive higher on-time delivery - Expand com
Slide 24: How to Win in Action: Applying Our Virtuous Cycle
HOW TO WIN How to Win in Action: Applying Our Virtuous Cycle SPOTLIGHT SUPERIOR CUSTOMER Waterloo, Iowa Box Plant Development EXPERIENCE Background and actions: redeploying capital from footprint restructuring to meet significant unmet demand in growing market ✓ State-of-the-art facility expected to
Slide 25: Unlocking Our Future Potential
Unlocking Our Future Potential Driving Enhanced Financial Performance Through Strategy Implementation and Disciplined Execution 2025 Investor Day 25
Slide 26: 2027 Performance Targets
2027 Performance Targets1 Net Sales 2 $26.0B - $28.0B Adjusted EBITDA 3 $5.5B - $6.0B Free Cash Flow 3,4 $2.0B - $2.5B On-time Delivery 98%+ Safety (Serious Injuries and Fatalities) ZERO Potential to Create Sustainable Value by Focusing on Where to Play and How to Win 1 Excludes GCF; DS Smith presen
Slide 27: 2027E Total IP Adj. EBITDA Bridge
INITIAL VIEW 2027E Total IP Adj. EBITDA1 Bridge ($B) EARNINGS DRIVERS $0.5 $6.0 Cost out drives structural advantage $1.4 GCF: $0.45 ▪ Footprint rationalization ▪ Operations optimization ▪ Overhead reduction (Zero Up) $0.8 $4.0 Commercial improvement beyond market $1.2 ▪ Mid-cycle price and demand e
Slide 28: 2027E Total Adj. EBITDA Bridge by Region
CURRENT VIEW 2027E Total Adj. EBITDA1 Bridge by Region ($B) North American Packaging Solutions EMEA Packaging Solutions $0.8 $3.7 - $4.0 $1.4 Initiatives: $0.4 Market6: $0.4 $0.3 $1.8 - $2.0 $1.7 $0.1 $0.5 Synergies3: $0.2 $1.1 Initiatives: $0.1 Market6: $0.2 Synergies3,4: $0.45 $0.1 5 2024 2024 Cos
Slide 29: Committed to Our TSR Algorithm and Targets
Committed to Our TSR Algorithm and Targets Double 3% - 4% >5% 3% - 4% 3% - 4% Digit Revenue EBIT Dividend Yield Growth from High- TSR Through Growth Growth (40% - 50% FCF1) return Reinvestment the Cycle (Organic Growth, Buybacks, or M&A) Optimizing Our Business to Generate Sustainable Returns Note:
Slide 30: Key Takeaways
Key Takeaways Taking Bold Steps to Accelerate Our Growth 1 2 3 4 Building on strong Prioritizing the Applying 80/20 Winning in foundation to right geographies, to drive strategy and attractive markets achieve above- customers, and focus resources through clear market growth products initiatives acro
Slide 31: North American Packaging Solutions Video
North American Packaging Solutions Video 2025 Investor Day 31
Slide 32: North American Packaging Solutions Overview
North American Packaging Solutions Overview Taking Action Designed to Accelerate Our Path to Sustainable Profitable Growth Tom Hamic EVP & President, North American Packaging Solutions 2025 Investor Day 32
Slide 33: North American Packaging Solutions Key Messages
North American Packaging Solutions Key Messages Taking Actions to Accelerate Our Growth Potential 1 2 3 4 Building on Re-establishing Optimizing Enhancing our advantaged cost leadership by footprint and customer foundation and applying 80/20 to reinvesting to experience through strong market focus r
Slide 34: North American Packaging Solutions Snapshot
North American Packaging Solutions Snapshot Decisive Actions to Transform and Realize Full Potential $15.1B $1.8B 11.9% ~200 NET SALES1,2 ADJ. EBITDA2,3 ADJ. EBITDA MILLS & PLANTS MARGIN1,2,3 4% 14% ■ Fresh Food 32% ■ Processed Food & Beverage Net Sales by ■ E-commerce & Logistics Segment4 23% ■ Non
Slide 35: Solid Industry Fundamentals Supported by Positive Trends
Solid Industry Fundamentals Supported by Positive Trends U.S. Corrugated Packaging Shipments vs. Industry Price1,2,3 Attractive North American Industry Structure Anticipate Continued, Steady Shipment Volume Leading Provider of Sustainable Packaging Solutions and Historical Price Trend Price Shipment
Slide 36: Well-positioned to Capitalize on Growth Trends
Well-positioned to Capitalize on Growth Trends TAM1 of ~$50B | Long-term Growth: 3% - 4% IP Position2: ~31% | Expect to Grow Above Market Where to Play: North American Packaging Why IP Wins: Sustainable Solutions Strategic Opportunities Capabilities and Solutions ▪ E-commerce expansion: proximity to
Slide 37: Value Proposition in Action: Segment-tailored Capabilities and Differentiated Solutions
Value Proposition in Action: Segment-tailored Capabilities and Differentiated Solutions Processed Food Retail E-commerce Protein Produce & Beverage Channel ▪ Dedicated team, ▪ Mechanical packaging ▪ Mechanical packaging ▪ Facility network provides ▪ Fulfillment operations for manufacturing scale, an
Slide 38: 80/20 in Action: Driving Our Cultural Transformation
80/20 in Action: Driving Our Cultural Transformation Applying Learnings across the Business SIMPLIFY SEGMENT RESOURCE GROW Reduce Complexity Implement Lighthouses Redesign Organization Drive Commercial ▪ Streamlined business and ▪ Intensified focus on 80s and Incentive Plans Excellence eliminated se
Slide 39: How to Win: Our Virtuous Cycle to Drive Sustainable Value Creation
How to Win: Our Virtuous Cycle to Drive Sustainable Value Creation SUPERIOR CUSTOMER EXPERIENCE ADVANTAGED COST POSITION HIGH RELATIVE SUPPLY POSITION 2025 Investor Day 39
Slide 40: Transforming Box Plant Operations
Transforming Box Plant Operations Advantaged Cost Position FEWER, BIGGER, AND SPOTLIGHT BETTER BOX PLANTS Network Optimization via Lighthouses ▪ Optimize asset network to drive performance ▪ Launched pilots to achieve advantaged cost position and reinvest capital organically or inorganically by segm
Slide 41: Optimizing Mill Operations
Optimizing Mill Operations Advantaged Cost Position FEWER, BIGGER, AND SPOTLIGHT BETTER MILLS Network Optimization ▪ Drive mill efficiencies ▪ Launched targeted initiatives to improve capacity ⎻ Align containerboard capabilities with and reliability targeted core box demand - Optimizing mill system
Slide 42: Focus on 80s Customers Enables Investment in Differentiation
Focus on 80s Customers Enables Investment in Differentiation High Relative Supply Position HISTORICAL ACTIONS BEING TAKEN FUTURE STATE All plants within a given region Applying 80/20 to focus on Providing reliable service at scale ran the same relative mix, optimized sizeable customers with less thr
Slide 43: Strategy in Action: Investing in Advantaged Plants and Reallocating Resources
Strategy in Action: Investing in Advantaged Plants and Reallocating Resources to Grow with 80s Customers High Relative Supply Position SPOTLIGHT: ATLANTA REGION Regional Scale with High Plant Concentration ✓ Exited Cleveland, TN plant in 4Q24 Closed TN ✓ Reallocated ~1,000 items to 4 remaining plant
Slide 44: Delivering a Superior Customer Experience to Increase Willingness to Pay
Delivering a Superior Customer Experience to Increase Willingness to Pay and Enable Above-market Growth Superior Customer Experience ▪ Reinvesting in remaining assets following footprint Seamless Reliability rationalization to provide more reliable service Quality boxes arrive on-time without 92%
Slide 45: Strategy in Action: Reliability Enables Next-level Customer Discussions About Value
Strategy in Action: Reliability Enables Next-level Customer Discussions About Value Superior Customer Experience BACKGROUND OUR UNIQUE APPROACH HOSTED 3-DAY INNOVATION SPRINT ▪ Large Consumer Packaging Goods Objective: Discover Innovative Packaging Solutions in Pursuit of Solving Pain Points (CPG) c
Slide 46: How to Win: Our Virtuous Cycle to Drive Sustainable Value Creation
How to Win: Our Virtuous Cycle to Drive Sustainable Value Creation SUPERIOR CUSTOMER EXPERIENCE Value Creation via Scale Problem Solving ADVANTAGED and Innovation COST POSITION 80/20 Mindset HIGH RELATIVE SUPPLY POSITION 2025 Investor Day 46
Slide 47: 2027E North American Packaging Solutions Adj. EBITDA Bridge
2027E North American Packaging Solutions Adj. EBITDA Bridge1 ($B) EARNINGS DRIVERS $0.8 $3.7 - $4.0 Cost out drives structural advantage ▪ Footprint rationalization $1.4 ▪ Operations optimization Initiatives: $0.4 ▪ Overhead reduction (Zero Up) Market5: $0.4 Commercial improvement beyond market ▪ Mi
Slide 48: Key Takeaways
Key Takeaways Taking Actions to Accelerate Our Growth Potential 1 2 3 4 Building on Re-establishing Optimizing footprint Enhancing customer our advantaged cost leadership by and reinvesting to experience through foundation and strong applying 80/20 to build scale and increase reliable service and ma
Slide 49: North American Packaging Solutions Panel Discussion
North American Packaging Solutions Panel Discussion 2025 Investor Day 49
Slide 50: Today's Distinguished Panelists
Today’s Distinguished Panelists MODERATOR Tom Hamic Murry Franklin Ram Kumar EVP & President, Region General Manager, Complex General Manager, North American Upper Midwest Atlanta Region Packaging Solutions 2025 Investor Day 50
Slide 51: Targeted Redeployment of Resources
Targeted Redeployment of Resources Spotlight: Chicago and Atlanta Lighthouse Approach I am thrilled we have been selected as an initial ‘Get to Perfect’ customer and look forward to building on our initial success. Through the first several months of this initiative, we’ve experienced on-time delive
Slide 52: Break
gee International we Paper
Slide 53: EMEA Packaging Video
EMEA Packaging Video 2025 Investor Day 53
Slide 54: EMEA Packaging Overview and DS Smith Update
EMEA Packaging Overview and DS Smith Update Capturing Opportunity to Create a Winning Position Tim Nicholls CFO & EVP, International Paper; President, DS Smith - An International Paper Company1 1 Role effective April 1, 2025; Lance Loeffler will join International Paper as the CFO on April 1. 2025 I
Slide 55: EMEA Packaging Key Messages
EMEA Packaging Key Messages Abundance of Opportunities to Accelerate Our Growth Potential 1 2 3 4 Capturing large, Improving cost Creating a clear Deepening long-term market structure through 80/20 roadmap to customer opportunity productivity actions streamline portfolio partnerships despite softer
Slide 56: EMEA Packaging Snapshot
EMEA Packaging Snapshot Extensive Presence across Geographies and Segments $9.1B $1.2B 12.9% ~250 NET SALES1,2 ADJ. EBITDA2,3 ADJ. EBITDA MILLS & PLANTS MARGIN1,2,3 ■ Processed Food & Beverage Canary Islands 32% ■ Fresh Food 43% Net Sales by ■ E-commerce & Logistics Segment4 ■ Non-durables 8% ■ Dura
Slide 57: Expected Resilient Demand Growth in Targeted Segments
Expected Resilient Demand Growth in Targeted Segments EMEA Industry Shipments vs. Remain Focused on Faster Growing Segments3 Corrugated Box Price1,2 Price Shipments Percentage of Overall Long-term Expected 800 80,000 EMEA Industry Supply Growth Rate 70,000 Food & Beverage ~35% - 40% ~3% p.a. 600 60,
Slide 58: Well-positioned to Capitalize on Growth Trends
Well-positioned to Capitalize on Growth Trends TAM1 of ~$40B | Long-term Growth: 3% - 4% IP DS Smith (EMEA) Position: ~20% | Expect to Grow Above Market Where to Play: EMEA Packaging Why IP Wins: Creating Winning Positions in Solutions Strategic Opportunities Sustainable Packaging Solutions ▪ Plasti
Slide 59: Opportunity to Build on Existing DS Smith Value Proposition by Applying 80/20
Opportunity to Build on Existing DS Smith Value Proposition by Applying 80/20 Performance System CUSTOMER BENEFITS OF SPOTLIGHT OUR VALUE PROPOSITION Transferring North American Packaging Solutions Learnings to EMEA ▪ Sustainable packaging solutions that meet customer needs generate higher sales ▪ E
Slide 60: How to Win: Our Virtuous Cycle to Drive Sustainable Value Creation
How to Win: Our Virtuous Cycle to Drive Sustainable Value Creation SUPERIOR CUSTOMER EXPERIENCE ADVANTAGED COST POSITION HIGH RELATIVE SUPPLY POSITION 2025 Investor Day 60
Slide 61: Systematically Improving Cost Base Through Efficiencies
Systematically Improving Cost Base Through Efficiencies Advantaged Cost Position Initiatives Launched to Fuel Our KEY ACTIONS IN PLAY Transformation and Gain Efficiencies • Delivering solutions cost effectively for customers ▪ Delivering benefits of previous - Improve integrated mills to box cost po
Slide 62: Strategy in Action: Capturing Benefits from Well-invested Converting System
Strategy in Action: Capturing Benefits from Well-invested Converting System Advantaged Cost Position STATE-OF-THE-ART, COST-ADVANTAGED CONVERTING SYSTEM Large-scale greenfield box plants with capacity to support growth Bełchatów, Energy-efficient technologies that support Poland sustainability by lo
Slide 63: Strategy in Action: Realizing Advantaged Costs Through Recent Mill Investments
Strategy in Action: Realizing Advantaged Costs in Converting System Through Recent Mill Investments Advantaged Cost Position CUSTOMER-LED INVESTMENT DRIVING EFFICIENCY AND GROWTH Leveraging customer-centric approach to accelerate investment across value chain Lucca, Meeting evolving market demands t
Slide 64: Strategy in Action: Improving Reliability and Productivity
Strategy in Action: Improving Reliability and Productivity High Relative Supply Position ITEMS Applying Largest Smallest 80/20 to SPOTLIGHT: 80/20 IBERIA PILOT Focus on Largest Positive Initial Performance Results Sizeable Customers ✓ 22% increase in key customer volume QUAD QUAD with Less 80S 1 2 P
Slide 65: 80/20 Roadmap: Driving Transformation in EMEA
80/20 Roadmap: Driving Transformation in EMEA High Relative Supply Position OUTLINE DEFINE EXECUTE Initiate Go-forward Plan with Create Execution Plan and Implement Clear Action Plans in the 80/20 Mindset Establish 80/20 Targets Near and Long Term ▪ Assess customer portfolio and ▪ Assess portfolio a
Slide 66: Strategy in Action: Building on Strong Foundation to Strengthen Position with Customers
Strategy in Action: Building on Strong Foundation to Strengthen Position with Customers High Relative Supply Position Significant Opportunity to Grow and Drive Operational Efficiency in Key Regions Focus on existing and targeted large, #1 growing customers Advantaged U.K. #3 GERMANY Reallocate resou
Slide 67: Creating Greater Customer Value via 80/20 and Innovation
Creating Greater Customer Value via 80/20 and Innovation Superior Customer Experience Capitalizing on High NPS KEY ACTIONS IN PLAY • Grow existing 80s customers by ensuring an ▪ Assigning the right resources to delight outstanding experience at each touchpoint of their our 80s customers while optimi
Slide 68: 2027E EMEA Adj. EBITDA Bridge
2027E EMEA Adj. EBITDA Bridge1 ($B) EARNINGS DRIVERS Cost out drives structural advantage ▪ Footprint rationalization ▪ Operations optimization $0.3 $1.8 - $2.0 ▪ Overhead reduction (Zero Up) Commercial improvement beyond market $0.5 ▪ Mid-cycle price and demand environment Initiatives: $0.1 Market6
Slide 69: Key Takeaways
Key Takeaways Abundance of Opportunities to Accelerate Our Growth Potential 1 2 3 4 Capturing large, Improving cost Creating a clear Deepening customer long-term market structure through 80/20 roadmap to partnerships by opportunity despite productivity actions streamline portfolio leveraging DS Smit
Slide 70: EMEA Panel Discussion
EMEA Panel Discussion 2025 Investor Day 70
Slide 71: Today's Distinguished Panelists
Today’s Distinguished Panelists MODERATOR Tim Nicholls Stefano Rossi Marc Chiron CFO & EVP, International Paper; Head of Packaging, Sales, Marketing, and President, DS Smith - An EMEA Innovation Director - International Paper Company1 Packaging EMEA 1 Role effective April 1, 2025; Lance Loeffler wil
Slide 72: Replicable Model to Build and Maintain Durable Customer Relationships
Replicable Model to Build and Maintain We are tremendously Durable Customer Relationships excited about our next venture with DS Smith and Spotlight: Mondelez Partnership grateful for the collaborative journey we have shared over the last ten years. The mutual trust we have Sole 50+ ~100 built over
Slide 73: Delivering Market-leading, Segment-tailored Solutions for Our Customers
Delivering Market-leading, Segment-tailored Our products reach Solutions for Our Customers stores and our consumers perfectly Spotlight: DS Smith Round Wrap packaged thanks to this. It plays an important part in maintaining the image of our brands. $700M Higher 20%+ Packaging Development Manager Ann
Slide 74: Developing Innovative and Sustainable Packaging Solutions for Our Customers
Developing Innovative and Sustainable This is the first-ever Packaging Solutions for Our Customers packaging solution of its kind for 1.5 litre Spotlight: DS Smith Lift Up multipacks of Coca-Cola, Fanta and Sprite. It’s the result of our entrepreneurial mindset, an absolute belief $300M 1st Mover 40
Slide 75: Executing a Focused Plan to Step Up Profitability for Sustainable Growth
Executing a Focused Plan to Step Up Profitability for Sustainable Growth Andy Silvernail Chairman & CEO 2025 Investor Day 75
Slide 76: Bridging to Sustained, Profitable Growth
Bridging to Sustained, Profitable Growth 2025 Investor Day 76
Slide 77: 2027E Total Adj. EBITDA Bridge by Region
2027E Total Adj. EBITDA1 Bridge by Region ($B) North American Packaging Solutions EMEA Packaging Solutions $0.8 $3.7 - $4.0 $1.4 Initiatives: $0.4 Market6: $0.4 $0.3 $1.8 - $2.0 $1.7 $0.1 $0.5 Synergies3: $0.2 $1.1 Initiatives: $0.1 Market6: $0.2 Synergies3,4: $0.45 $0.1 5 2024 2024 Cost Out Commerc
Slide 78: 2025 Will be a Transformational Year
2025 Will be a Transformational Year North American Packaging EMEA Packaging Solutions Solutions (DS Smith) GCF TOTAL IP Market Predict return to 1.0% - 1.5% Lower demand than Stable consumer Demand demand growth anticipated demand Realization of Lower containerboard prices Realization of Price prio
Slide 79: Unlocking Long-term Opportunity Through Targeted Investments
Unlocking Long-term Opportunity Through Targeted Investments 2025 Investments Enable Potential DRIVING PRODUCTIVITY, Sustained Future Cash Generation COST REDUCTION, AND Free Cash Flow ($B) PROFITABLE GROWTH $2.0 – $2.5 ▪ Continued implementation of 80/20 mill and box plant optimization from custome
Slide 80: Healthy Balance Sheet Enables Near-term Investment
Healthy Balance Sheet Enables Near-term Investment… BALANCE SHEET HIGHLIGHTS Total Debt ($B) and Well-positioned for (As of 12/31/24) $12.0 Debt / Adj. EBITDA1 8.0 Future Growth $10.1 $10.1 Cash & Temporary Investments ~$1.2B ▪ Debt / Adj. EBITDA1 targeted 7.0 $10.0 range of ~2.5x - 2.8x Net Debt ~$
Slide 81: Realizing IP's Profit Potential
Realizing IP’s Profit Potential 2025 Investor Day 81
Slide 82: Sustainable Financial Playbook
Sustainable Financial Playbook Executing Our TSR Algorithm to Drive Results and Value Creation 1 2 3 4 Defining where to Utilizing 40% - Reinvesting Delivering play and how to win 50% of cash flow remaining cash double-digit to drive revenue to provide flow with returns through and EBIT growth relia
Slide 83: Our TSR Algorithm: Foundational Above-market Growth
Our TSR Algorithm: Foundational Above-market Growth Expected to Enable Flexible Capital Deployment Double 3% - 4% >5% 3% - 4% 3% - 4% Digit Revenue EBIT Dividend Yield Growth from High- TSR Through Growth Growth return Reinvestment the Cycle Driving Revenue and EBIT Growth by Executing Our Long-term
Slide 84: Our TSR Algorithm: Leveraging Growth to Fund Reliable Dividend
Our TSR Algorithm: Expecting to Leverage Revenue and Earnings Growth to Fund Reliable Dividend Double 3% - 4% >5% 3% - 4% 3% - 4% Digit Revenue EBIT Dividend Yield Growth from High- TSR Through Growth Growth return Reinvestment the Cycle Committed to Maintaining Our Track Record of Providing Shareho
Slide 85: Our TSR Algorithm: Remaining Cash Flow Provides Capital Deployment Optionality
Our TSR Algorithm: Remaining Cash Flow Provides Capital Deployment Optionality Double 3% - 4% >5% 3% - 4% 3% - 4% Digit Revenue EBIT Dividend Yield Growth from High- TSR Through Growth Growth return Reinvestment the Cycle Maximizing Shareholder Value with Flexibility to Return Cash Organic Growth Sh
Slide 86: Disciplined Approach to Value Creation
Disciplined Approach to Value Creation Organic Growth Share Repurchases Inorganic Growth ▪ Reinvesting in business to ▪ Accelerating share repurchases ▪ Opportunistically targeting drive value for customers when stock trades below bolt-on M&A as an accelerator - Strengthen core customer- intrinsic v
Slide 87: Key Takeaways
Key Takeaways 2027 PERFORMANCE TARGETS1 Executing Our TSR Algorithm to Drive Results and Value Creation Net Sales2 $26.0B - $28.0B 1 Defining where to play and how to win to drive revenue and EBIT growth Adj. EBITDA3 $5.5B - $6.0B 2 Utilizing 40% - 50% of cash flow to provide reliable dividends to s
Slide 88: Q&A Session
Q&A Session All Presenters 2025 Investor Day 88
Slide 89: Closing Remarks
Closing Remarks Andy Silvernail Chairman & CEO 2025 Investor Day 89
Slide 90: Invest With Us
Invest With Us Transforming International Paper into a 1 differentiated, sustainable packaging company 2 Taking bold steps to accelerate our growth potential Driving a significant step up in sustainable value 3 creation through clear actions 2025 Investor Day 90
Slide 91: Appendix
Appendix Glossary and Reconciliation Tables 2025 Investor Day 91
Slide 92: Glossary
Glossary FINANCIAL AND ECONOMIC TERMS BUSINESS TERMS CAGR: Compound Annual Growth Rate EMEA: Europe, Middle East, and Africa EBIT: Earnings before Interest and Taxes FMCG: Fast Moving Consumer Goods EBITDA: Earnings before Interest, Taxes, Depreciation, GCF: Global Cellulose Fibers and Amortization
Slide 93: Calculation of Adjusted EBITDA (Actual)
Calculation of Adjusted EBITDA (Actual) NA Pkg Solutions EMEA Pkg Solutions Including DS Smith Including DS Smith 2024 2024 $ Millions Business segment operating profit $ 891 $ 60 Depreciation and amortization 786 64 DS Smith EBITDA 110 1,047 Adjusted EBITDA 1,787 1,171 Net Sales as reported 14,293
Slide 94: Calculation of Adjusted EBITDA (Target)
Calculation of Adjusted EBITDA (Target) IP Consolidated IP Consolidated Estimate Estimate 2025 2027 $ Millions Earnings (loss) from continuing operations $1,430 - $1,930 $3,640 - $4,140 before income taxes and equity earnings Interest expense, net 420 410 Adjusted EBIT $1,850 - $2,350 $4,050 - $4,55
Slide 95: Calculation of Adjusted EBITDA by Business Segment (Target)
Calculation of Adjusted EBITDA by Business Segment (Target) NA Pkg EMEA Pkg NA Pkg EMEA Pkg Solutions Solutions GCF Solutions Solutions 2025 2025 2025 2027 2027 $ Millions Estimate Estimate Estimate Estimate Estimate Business segment $1,450 - $1,650 $325 - $525 $80 - $180 $2,900 - $3,200 $1,175 - $1
Slide 96: Reconciliation of Operating Cash Flow to Free Cash Flow
Reconciliation of Cash Provided by (Used for) Operating Activities to Free Cash Flow 2025 2027 $ Millions Estimate Estimate Cash provided by (used for) operating activities $2,000 - $2,200 $3,900 - $4,400 Adjustments: Cash invested in capital projects 1,900 1,900 2027 Target Free Cash Flow $100 - $3
Slide 97: Appendix: Presenter Bios
Appendix Presenter Bios 2025 Investor Day 97
Slide 98: Andy Silvernail
Andy Silvernail Chairman & Andrew “Andy” Silvernail joined International Paper as Chief Executive Officer on Chief Executive May 1, 2024. He became chairman of the International Paper Board of Directors Officer on October 1, 2024. Silvernail has two decades of experience leading global companies in
Slide 99: Tom Hamic
Tom Hamic EVP & President, Tom Hamic joined International Paper in 1991. Over the course of his career, he has North American served in a variety of sales, marketing, finance, strategic planning and leadership Packaging Solutions roles in the United States and Europe. In 2009, Hamic was named a comp
Slide 100: Tim Nicholls
Tim Nicholls CFO & EVP, Tim Nicholls currently holds the role of Chief Financial Officer and Interim EMEA International Paper; Leader but was recently named Executive Vice President and President of DS Smith, President, DS Smith – an International Paper company, reporting to Chairman and Chief Execu
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