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Investor Roadshow | 1Q 2015
Investor Roadshow | March 18, 2015
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 our
indebtedness and increases 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
manufacturing facilities; (vi) risks inherent in conducting business through joint ventures; and (vii) 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 of new information,
future events or otherwise.
2
Investor Roadshow | March 18, 2015
Statements Relating to Non-GAAP Financial Measures
During the course of this presentation, certain non-U.S. GAAP financial information
will be presented.
A reconciliation of those numbers to U.S. GAAP financial measures is available on
the company’s website at internationalpaper.com under Investors.
3
Investor Roadshow | March 18, 2015
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 or
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.”
4
Investment Thesis
Investor Roadshow | March 18, 2015 6
IP Investment Thesis | Why IP Will Outperform
Vision
Leadership position
Attractive markets
Low-cost assets
Generating…
Strong FCF
Returns above cost-of-capital
• Global packaging and paper platforms
• Leadership positions in scale businesses
• Operational excellence
• Operate in key markets where we can grow profitably
ROIC Consistently >WACC FCF Strong Sustainable Improving Capital Allocation ✔ Value Creation ✔ Return Cash to Shareholders
Strategy Shareholder Value
Investor Roadshow | March 18, 2015 7
Why Invest in IP?
Strong Management Team
ROIC Above WACC
with Further Margin Expansion
Strong, Healthy Balance Sheet Enables Greater
Commitment to Return Cash to Shareholders
Robust, Improving Free Cash Flow Generation
Less Cyclical Business Results
from Refocused Portfolio
Investor Roadshow | March 18, 2015
Global
Economic
Recession
ROIC1 above our Cost of Capital | Increasing Shareholder Value
8
4.5%
6.3%
7.5%
6.5%
5.0%
8.1%
9.5%
8.3%
9.3% 9.2%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
ROIC WACC
2010 – 2014
8.9% (average ROIC)
1 ROIC = Operating Earnings before Interest / Average Invested Capital [Equity (adjusted to remove pension related amounts in OCI, net of tax) + Interest-Bearing Debt]
Investor Roadshow | March 18, 2015
Global Economic
Recession
Strong, Sustainable Free Cash Flow
Free cash flow reflects cash provided by continuing operations for 2005 – 2011, based on data in the 10-K for each year at the time of filing.
Excludes net cash pension contributions impacting 2006, 2010, 2011, 2013 & 2014, 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.
2014 excludes $353MM cash paid for pension plan contribution.
Free cash flow reflects cash provided by operations for 2012 – 2014.
Transformation:
$0.7 Billion (average)
Excluding land sales:
$0.4 Billion (average)
2010 – 2014
$1.8 Billion (average)
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
$ B
illi
on
s
9
Investor Roadshow | March 18, 2015 10
Delivering Results
2012 2013 2014 Near-term
Target
EBITDA ($Billion) 3.6 4.0 4.1 5.1
Free Cash Flow1,2,3 ($Billion)
1.6 1.8 2.1 2.2
ROIC 8% 9% 9% 12%
From continuing operations before special items and non-operating pension expense 1 2012 excludes $120MM cash paid for Temple-Inland change-in-control agreements, $44MM cash paid for Temple-Inland pension plan contribution, $80MM
cash paid for Guaranty Bank settlement, and $251MM cash received from unwinding a timber monetization. 2 2013 excludes $31MM cash paid for pension plan contribution and $30MM cash received from Guaranty Bank insurance reimbursements. 3 2014 excludes $353MM cash paid for pension plan contribution
Near-term Target as of Investor Day 2012 excludes similar items.
xpedx is reflected as a Discontinued Operation in all periods presented.
Investor Roadshow | March 18, 2015 11
Long-Term Runway
Strategically
Consistent,
Accretive M&A
High Return
Capital Projects
Profitable Growth in
Target Markets
Continued Optimization
of Strong NA Platforms
Valliant PM3 Start-up
Investor Roadshow | March 18, 2015 12
Delivering on Our Commitments
Strategically
Reinvest in Business Return Cash to
Shareholders
Maintain a Strong
Balance Sheet
Disciplined Capital Allocation Strategy
$1.05 $1.20
$1.40
$1.60
4Q11 4Q12 4Q13 4Q14
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
Investor Roadshow | March 18, 2015 13
What Makes IP Different? | Key Levers and Runway
Enterprise
• Manufacturing expertise with low-cost assets
• People capability
• EBITDA growth based on IP specific initiatives
• Ramping dividend and sizeable share repurchase program
• Attractive FCF yield
• Strong positions – best margins
• Industrial Packaging optimization
• Consumer Packaging – Increasing demand for fiber-based food packaging
• Papers – new footprint
• Fluff pulp growth
• Leveraging global platform for profitable growth
• Improvement at Brazil Industrial Packaging
• Ilim growth and margin expansion
North America Global
Business Overview
Investor Roadshow | March 18, 2015
2005 - 2007 2008 - 2010
2011+
IP Transformation Timeline/Plan
Transformation Plan
Divestitures & Strategic
Reinvestment
Global Recession IP Achieves Cost of Capital Returns
NA Weyco Pkg.
Acquisition
Russia
Ilim JV
India APPM
Acquisition China
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.
NA TIN
Acquisition
Turkey
Olmuksan Pkg.
15
Franklin
Fluff Pulp
Conversion
TIN Bldg.
Products
Sale
xpedx
Spin-Off
Investor Roadshow | March 18, 2015 16
North America
Brazil
EMEA & Russia
India
Asia
North America
Recognized Leader in Core Segments:
Corrugated Pkg. Uncoated Papers
Coated Paperboard
Emerging Markets Build Leading Positions in Fiber-based Packaging
& Paper Segments in High-Growth Markets
Positioned in attractive markets with low-cost assets that can generate strong free cash flow and returns that can exceed our cost-of-capital
$17.2B Net Sales
$1.4B Net Sales
$3.1B Net Sales
$1.7B Net Sales
$0.2B Net Sales
Full-year 2014 net sales data 1 Ilim JV total sales are not consolidated (IP owns 50% of JV)
International Paper | Global Portfolio in Packaging and Paper
$2.1B1 Ilim JV Total Sales
Investor Roadshow | March 18, 2015
Repositioned & Well-Positioned | Leading Global Positions
17
1st in NORTH AMERICA in corrugated packaging & coated paperboard
2nd in NORTH AMERICA in uncoated freesheet
1st in LATIN AMERICA in uncoated freesheet
PULP
1st in RUSSIA in paper & pulp
Source: RISI
Investor Roadshow | March 18, 2015
EBITDA Margin
2005 2014
Industrial Packaging
North America1 9% 24%
Brazil – 5%
Printing Papers
North America2 11% 13%
Europe & Russia3 16% 15%
Brazil 33% 31%
Consumer Packaging
North America4 14% 14%
Europe 26% 30%
Segment operating profit before special items 1 Includes Corrugated Packaging, Saturating Kraft & Bag businesses; excludes Recycling business and revenue from trade volumes 2 Includes Bleached Kraft ; reflects the Printing Papers and Pulp businesses 3 Uncoated Papers (excludes Pulp) 4 Includes Foodservice business
18
Repositioned & Well-Positioned | Primary Integrated Mill Business Margins
Investor Roadshow | March 18, 2015 19
Global Segment Profile | 2014 EBITDA1
Printing
Papers
22%
Industrial
Packaging
69%
Consumer
Packaging
9%
North America
82% Brazil 8%
Europe 6%
Russia 3%
Asia 1%
1 From continuing operations before special items and non-operating pension expense
Does not reflect equity earnings from Ilim JV
xpedx is reflected as a Discontinued Operation in all periods presented.
Investor Roadshow | March 18, 2015
Global Recession
NA Industrial Packaging | Track Record of Success
20
0.3 0.4 0.5
0.8
1.3 1.3 1.6
2.0
2.5 2.7
9%
13% 15% 15%
19% 18%
20% 19%
22% 24%
0%
5%
10%
15%
20%
25%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Bu
sin
ess
EB
ITD
A ($
B)
Weyco Packaging
Acquisition & Integration
TIN Acquisition
& Integration EBITDA %
IP 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
Investor Roadshow | March 18, 2015
$1,577
$1,831 $2,064
2012 2013 2014
FCF1 ($MM)
Full-Year 2014 Results
1 See slide #75 for a reconciliation of cash provided by operations to free cash flow
21
Delivered record cash from operations and
free cash flow of $2.1B
N.A. Industrial Packaging achieved EBITDA
of $2.7B and 24% margins
ROIC above the cost of capital for fifth
consecutive year
Margin expansion across key businesses
Successful debt restructuring program;
annualized interest savings of ~$40MM
Increased dividend by 14% to $1.60/share
Share buyback program purchases of
~ $1B in 2014
Courtland closure completed
Completed xpedx spin-off; $400MM received
$470MM operational EBITDA up 126% at
Ilim JV; $56MM dividend to IP
Investor Roadshow | March 18, 2015
Full-Year 2014 Financial Results
$ Billion
(Except as noted) 2012 2013 2014
Sales $21.9 $23.5 $23.6
EBIT1 $2.1 $2.5 $2.7
EPS2 $2.51 $3.06 $3.00
EPS impact of Ilim F/X3 – IP Share
$0.04 ($0.07) ($0.63)
EBITDA1 $3.6 $4.0 $4.1
EBITDA Margin 16.5% 17.2% 17.5%
FCF4 $1.6 $1.8 $2.1
Year-End Debt $10.1 $9.5 $9.4
Cash Balance $1.3 $1.8 $1.9
1 From continuing operations before special items and non-operating pension expense 2 EPS based on 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 ~$1.3B at year end 2014) 4 See slide #75 for a reconciliation of cash provided by operations to free cash flow
xpedx is reflected as a Discontinued Operation in all periods presented
22
$3,605
$4,035 $4,143
2012 2013 2014
EBITDA1 ($MM)
Investor Roadshow | March 18, 2015
IP’s Balanced Use of Cash | Increasing Shareholder Value
Return Cash to Shareowners
14% Dividend increase to $1.60/share
Share Buyback Program
• $1.5B program authorized September 2013
• Additional $1.5B program authorized July
2014
Selective Reinvestment
Brazil – Grupo Orsa, acquired remaining shares
Use of Cash ($MM)
~ $600
~ $1,000
~ $450
~ $1,400
~ $135
Debt Reduction & Pension Contribution
2014 Cash from Operations
$3.4 B
Capital Spending xpedx
Spin-off
$0.4 B
23
Investor Roadshow | March 18, 2015
Fourth Quarter 2014 Results
4Q13 3Q14 4Q14
Sales ($B) $5.8 $6.1 $5.9
EBIT1 ($MM) $661 $835 $657
EPS2 $0.81 $0.95 $0.53
EPS impact of Ilim F/X3 – IP Share
($0.01) ($0.19) ($0.40)
EBITDA1 ($MM) $1,028 $1,193 $1,003
EBITDA Margin1 17.6% 19.7% 16.9%
Free Cash Flow4
($MM) $598 $696 $739
1 From continuing operations before special items and non-operating pension expense 2 EPS based on 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 ~$1.3B at year end 2014) 4 See slide #75 for a reconciliation of cash provided by operations to free cash flow
xpedx is reflected as a Discontinued Operation in all periods presented.
24
Record FCF quarter, strong
working capital management
Solid performance across key
businesses
Benefit of stronger demand for
N.A. box muted by weak global
conditions
Input cost headwinds began to
moderate in quarter
$170MM of shares repurchased
in quarter, bringing total since
September 2013 to $1.44B
Strong operating results at Ilim;
unfavorable F/X impact of
($0.40) EPS
Investor Roadshow | March 18, 2015 25
Summary
Runway from current initiatives
(NA and Global)
Strong FCF and Healthy Balance Sheet drives
increased Capital Allocation opportunities
Pipeline of High Return Capital Projects
Less Cyclical Earnings with Higher Returns
Progress toward near-term goals of
$5.1B EBITDA and $2.2B FCF
Appendix
Investor Roadshow | March 18, 2015
Appendix - Table of Contents
Industrial Packaging……………….……………………………………..28-39
Consumer Packaging……….….………………………….……………..40-47
Printing Papers & Pulp..……….………………………………………...48-66
Ilim Group.…………………………….……………………………………67-70
Financial & Other………………….……………………………………....71-83
Contact Information……………….………………………………………….84
Slides
Investor Roadshow | March 18, 2015
North American Containerboard | Supply Positions
Stone 13%
Smurfit 7%
GP 9%
WY 7%
IP 7% TIN 7%
Others 50%
Source: SEC Filings, RISI Capacity Reports
1995 Producer Position
Top 5 = 43%
2014 Producer Position
Top 5 = 75%
IP 32%
RKT 20%
GP 10%
PCA 9%
Kapstone 4%
Others 25%
28
Investor Roadshow | March 18, 2015 29
IP North American Industrial Packaging | Balanced Global Strategy
IP’s market access provides choices for maximizing value
NA Mill System Capacity ~13 Million Tons
IP Box Plants ~80%
Open Market ~20%
U.S. ~93%
Non-U.S. ~7%
Export ~55%
Domestic ~45%
EMEA
~40% Lat Am ~40%
Asia ~20%
1 Includes Saturating Kraft /Gypsum Liner
2 Estimated 2015 outside purchases from divested mills and others
Source: IP analysis
Outside Purchases2
~350M tons
Containerboard ~12.6 Million Tons
Other Uses1 ~0.4 Million Tons
Investor Roadshow | March 18, 2015
Global Containerboard Industry | Total Containerboard Trade Flows
Net Import Locations Net Export Locations Source: RISI, PPPC, IP analysis
Estimated 2014 Global Demand = 168MM tons
Import
(3.2)MM
Import
(1.2)MM
5.2% Export
0.2 MM
15.9% Export
5.0 MM
8.3% Export
0.3 MM
21.8% Export
0.4 MM
Import
(1.0)MM
30
Investor Roadshow | March 18, 2015
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
Th
ou
sa
nd
To
ns
Va
llia
nt1
Ma
nsfi
eld
Hen
de
rso
n
Xa
lap
a
Pra
ttvil
le
Sa
va
nn
ah
New
po
rt
Sp
rin
gfi
eld
Ma
ys
vil
le
Vic
ks
bu
rg
Pe
nsa
co
la
Ce
da
r
Rap
ids
Cam
pti
Ro
me
Pin
e H
ill
Bo
ga
lus
a
Ora
ng
e
31
IP NA Containerboard Mill System | 13 Million Tons Capacity
1 Valliant includes full-year machine capacity of PM3, scheduled to go-live 2Q15
Source: IP analysis, chart includes Saturating Kraft & Gypsum liner
Investor Roadshow | March 18, 2015
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
0 5,000 10,000 15,000 20,000 25,000 30,000
Ma
nu
fac
turi
ng
Co
sts
($
/To
n)
Cumulative Annual Capacity (Thousand Tons)
Cash Costs + Delivery to Chicago
Rome 2
Global Cost Curve | 85% of Capacity in 1st & 2nd Cost Quartiles
Source: Poyry 2014 Costrac model at 3rd Quarter, 2014, prices and exchange rates 42# Global Kraft Linerboard cash cost per ton delivered to Chicago
Prattville 1
Orange 2
Prattville 2
Mansfield 3
Cedar
Rapids 2
Savannah 8
Valliant 1
Savannah 6 Campti 2
Mansfield 1
Springfield 2
Vicksburg 6
Rome 1
Campti 1
Pensacola 5
Bogalusa 7
Maysville 1
Pine Hill 1
Henderson 1
Bogalusa 8
32
Orange 1
Investor Roadshow | March 18, 2015
NA Industrial Packaging Relative EBITDA Margins
1 Reflects Company’s change in accounting method beginning in 2014
IP EBITDA margins based on North American Industrial Packaging operating profit before special items
Excludes the Recycling Business and revenue from trade volumes
Competitor EBITDA margin estimates obtained from public filings and IP analysis
23.0% 21.9%
17.0%
25.5%
21.3% 20.8% 22.7% 21.4%
17.7%
IP PCA RockTenn
4Q13 3Q14 4Q14
23.6%
21.3%
17.8%
2014
2014
2014
33
1
Investor Roadshow | March 18, 2015
Note: IP Mix, 2013. Industry Mix, 2012.
Source: IP Analysis
IP Well-Positioned in Attractive Customer Segments
58% 27%
15%
IP Box Shipments by Segment
34
Market Segment IP
Mix
Industry
Mix
Food & Beverage 58% 47%
Processed Food
Protein
Produce
Beverage
Other Non-Durable Goods 27% 36%
Paper Products
Chemicals & Pharma
Other Non-Durables
Durable Goods & Distribution 15% 16%
Building Materials
Other Durables
Shipping & Distribution
Investor Roadshow | March 18, 2015
U.S. Containerboard | Industry Statistics
200
300
400
500
600
700
800
$/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
35
$200
$300
$400
$500
$600
$700
$800
Jan-90 Jan-95 Jan-00 Jan-05 Jan-10 Jan-15
Investor Roadshow | March 18, 2015 36
Economic indicators and US box demand
Source: IHS Economics & Country Risk, US Short Term Forecast, Jan 2015; RISI North America Containerboard 5-year Forecast, November 2014
70
80
90
100
110
120
130
2001
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
2010
20
11
20
12
20
13
20
14
Indexed 1
00 =
2001
US Box Shipments US Nondurable Industrial Production US GDP US Industrial Production
Investor Roadshow | March 18, 2015
373 378
390 396
405 401
380 379 380
391 391 395 390
374
345
357 359 360 360 364
369 376 379
387
397
225
250
275
300
325
350
375
400
425
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
20
18
20
19
BS
F
RISI Forecast
U.S. Corrugated Packaging | Forecast
37
Historical Data Source: Fibre Box Association
2015-2019: 1.8% CAGR (RISI – March 2015 5-yr forecast)
Investor Roadshow | March 18, 2015
Wood / OCC Fiber Breakeven
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
2Q14 1Q14
3Q14
4Q14
38
2013
1 RISI national average OCC price, adjusted for delivery 2 Forest2Market chip equivalent basis index price
Investor Roadshow | March 18, 2015
Brazil Industrial Packaging | Overview
39
Paulinia Mill
Manaus Box Plant
Box plant
Mill
Rio Verde Box Plant
Paulinia Box Plant Suzano Box Plant Franco da Rocha Mill
Nova Campina Mill
2014 Sales of US$349 Million
Three Containerboard Mills
Four Box Plants
~350 Thousand Tons of Containerboard
Capacity
Sustainable Fiber Supply
Corrugated Supply Position ~7%
Klabin 16%
MWV 8%
IP 7%
Irani 7%
Trombini 6%
Penha 4% INPA
4%
Others 49%
3.7MM
tons
Source: ABPO
Investor Roadshow | March 18, 2015
IP Global Coated Paperboard Footprint | Total of 3.5 Million Tons
Coated paperboard mill
North America
1.6 Million Tons
Europe/Russia
370,000 Tons
Asia Sun Paper JV
1.5 Million Tons
40
Investor Roadshow | March 18, 2015
25%
38%
51%
4%
24%
11%
27%
9%
14% 22%
10%
60%
19%
12%
5% 5%
15%
8%
21% 5%
3% 12%
1%
Folding 2.2 MM tons
Cupstock 1.0 MM tons
Coated Bristols
0.4 MM tons
Liquid 1.4 MM tons
Supply Position by Segment
North American Solid Bleached Sulphate Capacity
Folding includes tobacco; Liquid Packaging includes Aseptic
Source: 2014 RISI Capacity (includes Ctd. Bristols); AF&PA; IP Analysis
CAGR Flat CAGR +1.6% CAGR (5%) CAGR (1%)
IP 25%
MWV 23%
GP 13%
Rank Group 12%
Clearwater 12%
RKT 6%
Weyco 4%
Coated Paperboard 2014 Supply Position (SBS)
41
6.2MM
Tons
Investor Roadshow | March 18, 2015
North American Consumer Packaging at a Glance
• 2014 Sales: $1.53 B
• 1.5 MM SBS sales tons
• 84% external
• 2014 Sales: $0.7 B
• Consumes over 0.2 MM tons
of IP’s Coated Paperboard
• Hot and cold cups
• Food buckets & containers
• Lids
Specialty Coffee
Theater, Convenience,
Hospitality
Folding Carton
550m tons
Cupstock 400m tons
NA Consumer Packaging Business
Coated Paperboard
Foodservice Business
Quick Service
Commercial Printing
240m tons
Coated Paperboard mill Foodservice plant
42
Investor Roadshow | March 18, 2015
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
0 2,500 5,000 7,500 10,000 12,500 15,000
Man
ufa
ctu
rin
g C
osts
$/T
on
Cumulative Annual Capacity (Thousand Tons)
Cash + Delivery to Chicago
Coated Paperboard Global Cost Curve | IP NA Capacity in 1st Quartile
Based on Poyry’s 2014 CostTrac model at 3rd Quarter, 2014, Prices and Exchange Rates. 57# Folding Carton Board
Augusta 3 Texarkana 1
Augusta 1
Riegelwood 15
43
Riegelwood 18
Investor Roadshow | March 18, 2015
NA Coated Paperboard Historical Financials
219 200 187 211
251
358
254 203 205
15%
13%
11%
15% 16%
22%
17%
13% 13%
0%
5%
10%
15%
20%
25%
0
50
100
150
200
250
300
350
400
2006 2007 2008 2009 2010 2011 2012 2013 2014
EBITDA
$ MM
EBITDA
%
Segment operating profit before special items
44
Investor Roadshow | March 18, 2015
NA Consumer Packaging Relative EBITDA Margins
IP EBITDA margins based on North American Consumer Packaging operating profit before special items
Competitor adjusted EBITDA margins obtained from public filings and IP analysis; reflects Food & Beverage segment
8.8%
11.6%
18.6%
15.9% 14.9%
12.9%
IP MWV
4Q13 3Q14 4Q14
45
13.6% 13.3%
2014 2014
Investor Roadshow | March 18, 2015
U.S. Coated Paperboard | Industry Statistics
$450
$550
$650
$750
$850
$950
$1,050
$1,150
$1,250
$/short ton Folding Cartonboard Prices
Bleached Unbleached Recycled
Source: RISI
46
Investor Roadshow | March 18, 2015
Paper Cups Replacing Foam | Environmental Benefits of Paper Driving Demand
47
Every 1 Billion Foam & Plastic Cups
Converted to Paper = 15 – 25 Thousand Tons of
Coated Paperboard Demand
Foam 31
Plastic 21
Paper Hot 18
Paper Cold
38
2014 U.S. Cup Demand (Billions of Units)
Source: Technomic 2012 Disposables Study, RISI, AF&PA, IP analysis
Hold&Go®
Individually
Wrapped Cup
ecotainer®
Investor Roadshow | March 18, 2015 48
IP Global Papers Footprint | Total of 4.4 Million Tons1
1 Does not include llim JV
Brazil
1.1 MM
N. America
2.0 MM
Europe
0.7 MM
Russia
0.4 MM
Uncoated paper mill
India
0.2 MM
ILIM
0.3 MM
Investor Roadshow | March 18, 2015 49
Printing Papers | 2014 vs. 2013 Change in Segment Operating Profit1 ($MM)
1Before special items
Europe
$27
North America
Pulp
$55
North America
Papers
$2
Brazil
$1
India
$10
Investor Roadshow | March 18, 2015
Domtar 36%
IP 20%
PCA 10%
GP 10%
Other 24%
GP 15%
IP 13%
Champion 10%
Boise 10% Willamette
9%
WY 9%
Union Camp
9%
Other 25%
1998 Producer Position Top 2 = 28%
Top 4 = 48%
2015 Producer Position Top 2 = 56%
Top 3 = 66%
Note: 2015 producer position adjusted for GP Crossett, Boise International Falls, Lincoln Paper, and IP Courtland.
1998, 2015 Source: Poyry Consulting, Fisher International, IP analysis
NA Uncoated Freesheet Supply | Supply Positions
50
Investor Roadshow | March 18, 2015
0%
20%
40%
60%
80%
100%
Riverdale Ticonderoga Eastover Georgetown Franklin Riegelwood Pensacola
% G
rad
e / M
ix
Pulp Non UFS Uncoated Freesheet Coated Paperboard Containerboard 1
Printing Papers & Pulp Mill System | 3.4MM Tons Capacity
1 Non UFS includes Kraft Bag and Uncoated Bristols
Source: IP analysis
Paper
(M Tons) 650 300 730 320 0 0 0
Pulp
(M Tons) 0 0 110 360 320 400 190
Tenant Mills
Cap
ac
ity
51
Investor Roadshow | March 18, 2015
Uncoated Freesheet Global Cost Curve | 95% of Capacity in 1st & 2nd Cost Quartiles
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
0 2,500 5,000 7,500 10,000 12,500 15,000 17,500 20,000 22,500 25,000 27,500 30,000 32,500 35,000
Ma
nu
fac
turi
ng
Co
sts
$/T
on
Cumulative Capacity (Thousand Tons)
Cash + Delivery to Chicago
Ticonderoga 7
Based on Poyry’s 2014 CostTrac model at 3rd Quarter, 2014, Prices and Exchange Rates.
Eastover 2
Eastover 1
Riverdale 15
Riverdale 16
Georgetown 1
Ticonderoga 8
50# Roll Offset
52
Investor Roadshow | March 18, 2015
317
575
657 657
513 539
598
499
310 253
10%
16%
19% 19% 18%
20%
22%
18%
12% 12%
0%
5%
10%
15%
20%
25%
0
200
400
600
800
1,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
EBITDA %
EBITDA $ MM Paper Only
North American Printing Papers | Attractive Margins & Cash Flow
Tons (MM)
4.0 4.1 3.9 3.5 3.0 2.8 2.7 2.7 2.6 2.0
Segment operating profit before special items
53
Investor Roadshow | March 18, 2015
N.A. Printing Papers Relative EBITDA Margins
12.8% 13.9%
17.9%
14.5% 14.4%
15.8%
IP Domtar
4Q13 3Q14 4Q14
IP EBITDA margins based on operating profit from continuing operations before special items
Competitor EBITDA margin estimates obtained from public filings and IP analysis
EBITDA margins reflect the Printing Papers and Pulp businesses
12.8%
2014
2014
14.0%
54
Investor Roadshow | March 18, 2015
U.S. Uncoated Freesheet Demand
Historical Data Source: AF&PA
2015 – 2019: -2.6% CAGR (RISI Feb 2015 5-yr Forecast)
11.6
12.2 12.4
13.3 13.0 13.2
13.7 13.6 14.0 13.9
12.6 12.4 12.3 12.6
12.0 12.3
11.9
10.9
9.7 9.6 9.3
8.9 8.8 8.3 8.1 7.9
7.6 7.4 7.3
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
RISI Forecast
Mil
lio
n T
on
s
UFS Demand and RISI Forecast
55
Investor Roadshow | March 18, 2015
U.S. Uncoated Freesheet | Industry Statistics
$500
$600
$700
$800
$900
$1,000
$1,100
$1,200
$500
$600
$700
$800
$900
$1,000
$1,100
$1,200
$/short ton
UFS Pricing Trends
RISI 20# Cutsize RISI 50# Offset
Source: RISI
56
Investor Roadshow | March 18, 2015
35%
30%
6%
4%
4%
3%
18%
Latin American Uncoated Freesheet Market
0
50
0
1,0
00
1,5
00
2,0
00
2,5
00
Brazil
Argentina
Colombia
Chile
Peru
Venezuela
Other …
Thousand Metric Tonnes
Demand
Capacity
Latin America is a Net Exporter
Demand Capacity @
91% Op. Rate* Net Exports
2.7 MM 2.8 MM 0.1 MM * Excluding Mexico
Supply & Demand
57
Source: Bracelpa/ AFCP / RISI/ Fisher/ IP Estimates; Units shown in metric tonnes
Top 6 Producers > 80%
Others
Smurfit
Kappa
Ledesma
Celulosa
Argentina
Propal
IP
Suzano
Investor Roadshow | March 18, 2015
IP do Brasil | At a Glance
Mogi Guacu Luiz Antonio Três Lagoas IP Brazil
Paper
Machines 4 2 1 7
UFS
Capacity (Thousand MT)
424 367 234 1,025
Market Pulp (Thousand MT)
8 103 0 111
58
Units shown in metric tonnes
Investor Roadshow | March 18, 2015
IP do Brasil | Historical Financials
59
280
320
230
300 320
293
334
33% 33%
24%
27% 27% 26%
31%
0%
5%
10%
15%
20%
25%
30%
35%
0
50
100
150
200
250
300
350
400
450
2007 2008 2009 2010 2011 2012 2013
EBITDA
US$ MM EBITDA
Margin
Segment operating profit before special items
Tons (MM)
0.9 1.0 1.2 1.2 1.3 1.3 1.3
Investor Roadshow | March 18, 2015
Margin Improvement From Geography Shift
60
Europe & Others Other Latin America Brazil
~3.5X
~1.8X
Improve Geographic Mix from 75% to 100% in Latin America
2013
U.S. $
EBITDA / ton Avg FX 2.15
U.S. $132 U.S. $252 U.S. $455
Investor Roadshow | March 18, 2015 61
IP India Printing Papers | APPM
Hyderabad
Rajahmundry
Kadiyam
Corporate Office
UFS Paper Mill
IP owns 75% of Andhra Pradesh
Paper Mills (APPM); Remaining
25% shares listed in India
Two uncoated freesheet paper
mills with combined capacity of
~250,000 tons
Significant and fast growing
emerging market
Located in the heart of India’s fiber
basket
Successful farm forestry program
IP leaders on ground with APPM
management team to assist with
optimization of assets
Platform for potential growth in
paper and packaging
Investor Roadshow | March 18, 2015
Global Market Pulp | Bleached Softwood Pulp
North America North America
Latin America Latin America
Western Europe Western Europe
Eastern Europe Eastern Europe
Asia Asia
Rest of World Rest of World
0
5
10
15
20
25
30
2014 2018
Mil
lio
n M
etr
ic T
on
ne
s
2014 – 2018
CAGR
0.9%
3.0%
1.4%
(1.6%)
(1.0%)
0.8%
Source: PPPC; Units shown in metric tonnes
Global Demand = 24.0 → 24.9MM mtpy
CAGR = 0.9%
62
Investor Roadshow | March 18, 2015
Global Market Pulp | Fluff Pulp Demand
North America North America
Latin America Latin America
Western Europe Western Europe
Eastern Europe Eastern Europe
Asia
Asia
Other
Other
0
1
2
3
4
5
6
7
2014 2018
Mil
lio
n M
etr
ic T
on
ne
s
2014 – 2018
CAGR
4.3%
5.2%
2.5%
1.6%
1.2%
2.4%
Source: IP analysis; Units shown in metric tonnes
Global Demand = 5.2 → 5.9MM mtpy
CAGR = 3.4%
63
Investor Roadshow | March 18, 2015
Pulp mill
64
IP Global Pulp Capacity | Total of 3.2 Million Metric Tonnes
Ilim JV
1.6 MM
Europe / Russia
0.3 MM N. America
1.2 MM
L. America
0.1 MM
Investor Roadshow | March 18, 2015 65
Global Fluff Pulp Industry | Trade Flows – 2014
Net Import Locations Net Export Locations
Global Demand = 5.2MM mtpy
Import
(0.9)MM
86.0% Export
4.3 MM
Import
(0.4)MM
Import
(0.6)MM
Import
(2.1)MM
Source: PPPC, IP Analysis; Units shown in metric tonnes
Investor Roadshow | March 18, 2015
Pulp | Industry Statistics
0
200
400
600
800
1,000
1,200
USD/admt Global Pulp Prices
NBSK (dne) BEK (dne) Fluff (dne)
Source: RISI
Global pulp prices delivered to Northern Europe; Units shown in metric tonnes
66
Investor Roadshow | March 18, 2015
IP Russia & Ilim JV | Manufacturing Overview
Ilim JV Production1 2013 Post-project ,
Fully Ramped
Bratsk Mill
Total 740 1,150
• Softwood bleached pulp 300 670
• Hardwood bleached pulp 250 220
• KLB 190 260
Koryazhma Mill
Total 1,245 1,335
• PM7 paper 100 165
• PM7 CFS 0 80
• Pulp (BHKP, UKP) 365 315
• KLB and others 780 775
Ust-Ilimsk Mill
Pulp (BSKP, UKP) Total 830
IP Russia Production1
Svetogorsk 2013
Total 710
• Coated Paperboard 105
• Pulp (soft/hardwood) 190
• Fine Papers 415
1 Volumes shown in thousand short tons
Koryazhma
Bratsk Ust-Ilimsk
China
Kazakhstan Mongolia
Svetogorsk
Well-Positioned to Serve Target Markets
67
Investor Roadshow | March 18, 2015 68
Ilim Joint Venture | Well-Positioned to Serve Growing Pulp Markets
China will account
for 75% of world’s
incremental market pulp
growth
1st quartile cost positions
with favorable access to
China NBSK market
Access to significant
Russian wood basket
0
10
20
30
40
50
60
70
80
1995 2000 2005 2010 2011 2015 2020 2025
Mil
lio
n M
etr
ic T
on
nes
Western Europe
North America
China
Eastern Europe
Forecast1
2011-2025
China
14.7 MM
Rest of
World
4.8 MM
Units shown in metric tonnes 1 Source: Poyry World Fibre Outlook 2012 2 Based on Poyry’s 2014 CostTrac model at 3rd Quarter, 2014, prices and exchange rates.
$0
$200
$400
$600
$800
$1,000
0 5,000 10,000 15,000 20,000
Man
ufa
ctu
rin
g C
osts
($
/Me
tric
To
nn
e)
Cumulative Capacity (Thousand Metric Tonnes)
Cash + Delivery to Beijing
Ust-Ilimsk
Bratsk
(Pre-Project)
Bratsk
2
Investor Roadshow | March 18, 2015
2009 2010 2011 2012 2013 2014
Sales Volume (Million short tons) 2.6 2.8 2.8 2.9 2.7 3.2
Sales ($B) 1.3 1.9 2.2 2.0 1.9 2.1
Capital Employed ($B) 1.2 1.2 1.6 2.1 2.4 1.4
Debt ($B) 0.4 0.5 0.9 1.2 1.5 1.4
Operating EBITDA ($MM) 197 516 591 291 208 470
F/X Gain (loss)1 (35) 12 (60) 39 (80) (684)
EBITDA ($MM) 163 528 531 330 128 (214)
EBITDA Margin 12% 28% 24% 17% 7% (10%)
Depreciation ($MM) 120 121 124 134 177 193
EBIT ($MM) 43 407 406 196 (49) (408)
Interest Expense ($MM) 28 18 7 6 39 69
Net Income (loss) ($MM) (19) 266 299 132 (72) (362)
IP Equity Earnings (loss) ($MM) (27) 103 134 56 (46) (194)
Dividends (to IP) 2 ($MM) 50 34 85 0 0 56
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 ~$1.3B at year end 2014) 2 In 2008, IP received dividends of $67MM
69
Ilim Joint Venture | Full Year Financials
Investor Roadshow | March 18, 2015
Ilim Joint Venture | As Shared on January 28th Earnings Call
$ Million 4Q13 3Q14 4Q14 2013 2014
Sales Volume (thousand tons)
677 766 859 2,679 3,188
Sales $482 $520 $520 $1,897 $2,139
Operational EBITDA1 $61 $100 $143 $208 $470
F/X (Impact of USD Net Debt2) ($15) ($210) ($432) ($80) ($684)
IP Equity Earnings(Loss)3 ($12) ($70) ($136) ($46) ($194)
Continued improvement in operational EBITDA and record volumes
following major JV-funded capital projects and efficiency improvements
4Q14 operational EBITDA run rate approaching $600MM target
Significant unfavorable non-cash F/X impact on debt; however, ruble
devaluation has positioned JV as lowest cost NBSK in the world
70
Ilim JV results are on an IFRS basis with the exception of IP Equity Earnings which is US GAAP 1 Before F/X impact on USD-denominated net debt 2 4Q14 mainly driven by Ilim JV USD-denominated net debt balance of ~$1.3B; Ilim Group’s functional currency is the Ruble (RUB); Non-functional-denominated
currency balances are measured monthly using the month-end exchange rate
3 IP Equity Earnings(Loss) for 4Q13, 3Q14, and 4Q14 include after-tax f/x losses (primarily on USD-denominated net debt) of $(6)MM, $(82)MM, and $(171)MM,
respectively; FY13 and FY14 include after-tax f/x losses of $(32)MM and $(269)MM respectively (US GAAP)
Investor Roadshow | March 18, 2015
Operating Business EPS
2005-2006 as originally reported
2007-2011 adjusted for elimination of the Ilim JV reporting lag
2005-2010 Net Earnings from continuing operations and before special items; 2010 onward reflects Operating Earnings
xpedx is reflected as a Discontinued Operation from 2010 forward.
71
.36 .31
.29
.12 .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
.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
2005 2006 2007 2010 2008
Impact of Mineral
Rights Gain
2009
.83
2011
.93
Final Land Sale
2012 2013 2014
Investor Roadshow | March 18, 2015
$ Million 2012 4Q13 2013 1Q14 2Q14 3Q14 4Q14 2014
Cash Provided by Operations
$2,9601 $1,037 $3,0292 $5293 $7344 $1,0235 $1,144 $3,4306
Less Capital Investment
($1,383) ($439) ($1,198) ($277) ($357) ($327) ($405) ($1,366)
Free Cash Flow $1,577 $598 $1,831 $252 $377 $696 $739 $2,064
Free Cash Flow
1 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. 2 Excludes $31MM cash paid for pension plan contribution and $30MM cash received from Guaranty Bank insurance reimbursements 3 Excludes $58MM cash paid for pension plan contribution 4 Excludes $205MM cash paid for pension plan contribution 5 Excludes $90MM cash paid for pension plan contribution 6 Excludes $353MM cash paid for pension plan contribution
72
Investor Roadshow | March 18, 2015 73
Balance Sheet | Debt Coverage $ B
illio
n
$4.1 Pension Gap
3.8x
2.9x
$10.1 Balance
Sheet
Debt
$9.5 Balance
Sheet
Debt
$1.2 Op. Lease Adj. $1.2 Op. Lease Adj.
$3.9 Pension Gap
[2.7x]1 [2.3x]2
2013 2012 2014 Adjusted Debt reflects gross balance sheet debt plus pension gap and operating leases (Moody’s Methodology)
Adjusted EBITDA of $4.4B incorporates pension and lease expense adjustments (Moody’s Methodology) 1 Simple Debt Coverage: Balance Sheet Debt / 2012 Reported EBITDA of $3.7B 2 Simple Debt Coverage: Balance Sheet Debt / 2013 Reported EBITDA of $4.1B 3 Simple Debt Coverage: Balance Sheet Debt / 2014 Reported EBITDA of $4.1B 4 AA Corporate Bond Rate
Moody’s Target: Adjusted Debt < 3X Adjusted EBITDA
Pension Gap increased by $1.7B
primarily due to discount rate4
decrease and updated mortality
assumptions
Significant debt restructuring in
mid-2014
Bond issue and tender offer
successfully reduced 2018
and 2019 debt towers
Lowered annualized interest
expense ~$40MM
Made ~$350MM pension
contribution in 2014
$1.9B cash balance at year end
$9.4 Balance
Sheet
Debt
[2.3x]3
$1.1 Op. Lease Adj.
$2.2 Pension Gap
3.3x
Investor Roadshow | March 18, 2015
25%
50%
75%
100%
125%
$0
$300
$600
$900
$1,200
$1,500
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015E
Maintenance Regulatory Strategic Cost Reduction % of Depreciation
$ Million % of
Depreciation
Reflects continuing operations
Capital Spending
74
~$1,500
Investor Roadshow | March 18, 2015
Pension Plan Update | As of December 31, 2014
• No contribution 1960-2005;
$2.6B contribution 2006-2013
• $353MM contribution made
in 2014
• Pension contribution of
~$100MM in 2015
($0.2)
($3.2)
($2.8)
($1.5)
($2.4)
($2.7)
($4.1)
($2.2)
($3.9)
Billio
n
Year-End Funded Status1
75
1 Reflects status as of December 31
Investor Roadshow | March 18, 2015
Pension Plan Update1 | As of December 31, 2014
231 195
342
545
387
488
$0
$150
$300
$450
$600
2010 2011 2012 2013 2014 2015E
Millio
n
Annual Pension Expense2 Key Variables 2013 2014 2015E
Assumed Rate of Return
8.0% 7.6% 7.8%
Discount Rate 4.1% 4.9% 4.1%
Average Annualized Returns3
2014 6.4%
Past Five Years 10.5%
Past Ten Years 8.2%
Portfolio Asset Allocation at 12-31-14
Target Actual
Equity 42% - 53% 47%
Bonds 30% - 40% 33%
Real Estate 6% – 12% 10%
Other 3% - 15% 10%
1 2013 and onward include Temple-Inland pension plan 2 Non-cash expense for U.S. plans only 3 Through December 2014
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 239 observations
76
Investor Roadshow | March 18, 2015
Maintenance Outages Expenses | 2014
$ Million 1Q14 2Q14 3Q14 4Q14 2014
Industrial Packaging $69 $91 $26 $48 $234
North America 69 91 23 48 231
Brazil 0 0 3 0 3
Printing Papers Total $31 $60 $16 $43 $150
North America 30 35 14 32 111
Europe 1 24 1 0 26
Brazil 0 1 0 11 12
India 0 0 1 0 1
Consumer Packaging $20 $26 $1 $11 $58
North America 20 19 1 11 51
Europe 0 7 0 0 7
Total Impact $120 $177 $43 $102 $442
77
Investor Roadshow | March 18, 2015
Maintenance Outages Expenses | 2015
$ Million 1Q15F 2Q15F 3Q15F 4Q15F 2015F
Industrial Packaging $66 $99 $37 $67 $269
North America 66 96 37 67 265
Brazil 0 3 0 0 3
Printing Papers Total $35 $67 $32 $46 $180
North America 29 43 14 39 125
Europe 0 23 17 0 40
Brazil 6 1 0 7 14
India 0 0 1 0 1
Consumer Packaging $15 $17 $11 $17 $60
North America 15 12 4 17 48
Europe 0 5 7 0 12
Total Impact $116 $183 $80 $130 $509
78
Investor Roadshow | March 18, 2015
127 167
99 88 46
118 123
48
126
49 30
1 70
276
60 58
69
53
Maintenance Market
Coated Paperboard1
22 13 1
24 24 20
7
27
24
41
38
18
53
19
58
16 20 1
31
North American Downtime
8 14
21 20 2
15 19
12 0
Containerboard Uncoated Papers2
Market Pulp
Th
ou
sa
nd
To
ns
Th
ou
sa
nd
To
ns
Th
ou
sa
nd
To
ns
Th
ou
sa
nd
To
ns
1Augusta PM#2 was permanently shutdown in March 2013 (36000 tons / quarter) 2Courtland shutdown of two machines in 4Q13; shutdown complete in February 2014
179
49
176
79
197
100
158
322
178 181
117
0
48
Investor Roadshow | March 18, 2015
Total Cash Cost Components | 4Q14 YTD
Fiber 31%
Freight 16%
Materials 14%
Labor 12%
Energy 10%
Overhead 9%
Chemicals 8%
80
North American mills only
Investor Roadshow | March 18, 2015
2007 2008 2009 2010 2011 90
95
100
105
110
115
120
125
130
2012 2013 2014
U.S. Mill Wood Delivered Cost Trend | Flat vs. 3Q14 Average Cost
Cost Indexed to January 2007 values
81
Investor Roadshow | March 18, 2015
2007 2008 2009 2010 2011 40
60
80
100
120
140
160
180
200
2012 2013 2014
Cost Indexed to January 2007 values
U.S. OCC Delivered Cost Trend | 4% Decrease vs. 3Q14 Average Cost
82
Investor Roadshow | March 18, 2015
2015 Global Consumption | Annual Purchase Estimates for Key Inputs
Commodity U. S. Non – U. S.
Energy
Natural Gas (MM BTUs) 65,000,000 11,000,000
Fuel Oil (Barrels) 650,000 380,000
Coal (Tons) 415,000 640,000
Fiber Wood (Tons) 52,000,000 8,000,000
Old Corrugated Containers / DLK (Tons) 4,600,000 630,000
Chemicals
Caustic Soda (Tons) 350,000 80,000
Starch (Tons) 390,000 100,000
Sodium Chlorate (Tons) 160,000 57,000
LD Polyethylene (Tons) 37,000 -
Latex (Tons) 22,000 11,000
Does not include Asia or volume consumed by joint ventures (Sun JV, Ilim JV) Estimates are based on normal operations and may be impacted by downtime Excludes annual consumption related to Courtland operations terminated in 1Q14
83
Investor Roadshow | March 18, 2015
Investor Relations | Contact Information
Jay Royalty • Vice President, Investor Relations
901-419-1731
Michele Vargas • Director, Investor Relations
901-419-7287
Betty Groom • Financial & Administrative Analyst
901-419-4250
84