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IP to Create Two Independent Public Companies; Fourth Quarter and Full Year 2025 Earnings January 29, 2026
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2 Forward-looking Statements Certain statements in this presentation that are not historical in nature may be considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements can be identified by the use of forward-looking or conditional words such as “expects,” “anticipates,” “believes,” “estimates,” “could,” “should,” “can,” “forecast,” “outlook,” “intend,” “look,” “may,” “will,” “remain,” “confident,” “commit” and “plan” or similar expressions. These statements are not guarantees of future performance and reflect management’s current views and speak only as to the dates the statements are made and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these statements. All statements, other than statements of historical fact, are forward-looking statements, including, but not limited to, statements regarding anticipated financial results, economic conditions, industry trends, future prospects, and the anticipated benefits, execution and consummation of strategic corporate transactions. Factors which could cause actual results to differ include but are not limited to: (i) our ability to consummate and achieve the benefits expected from, and other risks, costs and expenses associated with, our plans to separate our North America and Europe, Middle East and Africa (“EMEA”) operations into two independent public companies and other acquisitions, joint ventures, divestitures, spinoffs, capital investments and other corporate transactions on a timely basis or at all, including the risk that an impairment charge may be recorded for goodwill or other intangible assets, which may lead to decreased assets and reduced net earnings; (ii) our ability to successfully integrate and realize anticipated synergies, cost savings and profit opportunities from acquired companies; (iii) risks associated with our strategic business decisions including facility closures, business exits, operational changes, and portfolio rationalizations intended to support the Company’s 80/20 strategic approach for long-term growth; (iv) our failure to comply with the obligations associated with being a public company listed on the New York Stock Exchange and the London Stock Exchange and the costs associated therewith; (v) risks with respect to climate change and global, regional, and local weather conditions, as well as risks related to our targets and goals with respect to climate change and the emission of greenhouse gases and other environmental, social and governance matters, including our ability to meet such targets and goals; (vi) loss contingencies and pending, threatened or future litigation, including with respect to environmental and antitrust related matters; (vii) the level of our indebtedness, including our obligations as guarantor of a Euro Medium Term Note Programme, risks associated with our variable rate debt, and changes in interest rates (including the impact of current elevated interest rate levels); (viii) the impact of global and domestic economic conditions and industry conditions, including with respect to current challenging macroeconomic conditions, inflationary pressures and changes in the cost or availability of raw materials, energy sources and transportation sources, supply chain shortages and disruptions, competition we face, cyclicality and changes in consumer preferences, demand and pricing for our products, and conditions impacting the credit, capital and financial markets; (ix) risks arising from conducting business internationally, domestic and global geopolitical conditions, military conflict (including the Russia/Ukraine conflict, the conflict in the Middle East, the further expansion of such conflicts, and the geopolitical and economic consequences associated therewith), as well as broader geopolitical tensions involving major global actors, including those related to China and Venezuela, changes in currency exchange rates, including in light of our increased proportion of assets, liabilities and earnings denominated in foreign currencies as a result of our business combination with DS Smith Limited, trade policies (including but not limited to protectionist measures and the imposition of new or increased tariffs as well as the potential impact of retaliatory tariffs and other penalties including retaliatory policies against the United States) and global trade tensions, downgrades in our credit ratings, and/or the credit ratings of banks issuing certain letters of credit, issued by recognized credit rating organizations; (x) the amount of our future pension funding obligations, and pension and healthcare costs; (xi) the costs of compliance, or the failure to comply with, existing, evolving or new environmental (including with respect to climate change and greenhouse gas emissions), tax, trade, labor and employment, privacy, anti-bribery and anti-corruption, and other U.S. and non-U.S. governmental laws, regulations and policies (including but not limited to those in the United Kingdom and European Union); (xii) any material disruption at any of our manufacturing facilities or other adverse impact on our operations due to severe weather, natural disasters, climate change or other causes; (xiii) our ability to realize expected benefits and cost savings associated with restructuring initiatives; (xiv) cybersecurity and information technology risks, including as a result of security breaches and cybersecurity incidents; (xv) our exposure to claims under our agreements with Sylvamo Corporation; (xvi) our ability to attract and retain qualified personnel and maintain good employee or labor relations; (xvii) our ability to maintain effective internal control over financial reporting; and (xviii) our ability to adequately secure and protect our intellectual property rights. These and other factors that could cause or contribute to actual results differing materially from such forward-looking statements can be found in our press releases and reports filed with the U.S. Securities and Exchange Commission. In addition, other risks and uncertainties not presently known to the Company or that we currently believe to be immaterial could affect the accuracy of any forward-looking statements. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. Statements Relating to Non-U.S. GAAP Measures While the Company reports its financial results in accordance with accounting principles generally accepted in the United States (“GAAP”), during the course of this presentation, certain non-GAAP financial measures are presented. Management believes these non- GAAP financial measures, when used in conjunction with information presented in accordance with GAAP, can facilitate a better understanding of the impact of various factors and trends on the Company’s financial condition and results of operations. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company’s performance. The non-GAAP financial measures in this presentation have limitations as analytical tools and should not be considered in isolation or as a substitute for an analysis of our results calculated in accordance with GAAP. In addition, because not all companies use identical calculations, our presentation of non-GAAP financial measures in this presentation may not be comparable to similarly titled measures disclosed by other companies, including companies in our industry. A reconciliation of all presented non-GAAP financial measures (and their components) to GAAP financial measures is available on IP’s website at https://www.internationalpaper.com/investors/financial-reports/quarterly-results Discontinued Operations As previouslyannounced,the Companysold its Global CelluloseFibers businesson January 23, 2026. Current and historicalresults have been adjustedto reflectthe Global CelluloseFibers businessas a discontinuedoperation. Non-GAAP Reconciliations Please see Appendixat the end of this presentationas well as the Investorssection of our website(www.internationalpaper.com) for more informationon non-GAAP financialmeasures,definitions,and reconciliationsto most directlycomparableU.S. GAAP measures. Use of Materials The images, graphics,charts, brands, and other content and informationcontainedin this documentare protectedby the copyrightand trademarklaws of the United States and other jurisdictions(the “Content”). InternationalPaper grants a limited,non-exclusive,revocable license to use individualelementsof Content for financialanalysis, reporting and commentaryand for incorporationinto educationalprojects and documentsfor educators and students without further written permission. Such licenses granted here may be withdrawnat the sole discretionof InternationalPaper for any reason and do not otherwiseconstitutea waiver of InternationalPaper’slegal rights for infringements.
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Today’s Agenda International Paper to Create Two Independent Public Companies Andy Silvernail | Chairman & CEO Lance Loeffler | SVP & CFO Tim Nicholls | EVP & President of DS Smith Full Year and Fourth Quarter 2025 Earnings Andy Silvernail | Chairman & CEO Lance Loeffler | SVP & CFO Q&A Session 3
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4 Taking Decisive Steps to Advance Our Transformation Journey Creating Two Best-in-Class Companies to Accelerate Our Ambitions (1) Data as of 12/31/2025 including 12 months of legacy IP NA and 11 months (February – December) of legacy DS Smith NA results. (2) Data as of 12/31/2025 including 12 months of legacy IP EMEA and 11 months (February – December) of legacy DS Smith EMEA results. INTERNATIONAL PAPER Strengthening position as leading sustainable packaging company in North America $15.2B 2025 net sales1 Comprised of current business in North America including legacy IP and DS Smith assets EMEA PACKAGING BUSINESS Elevating European leadership as provider of innovative, sustainable packaging solutions $8.5B 2025 net sales2 Comprised of current business in EMEA, including legacy IP and DS Smith assets
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5 Executing Our Strategy to Drive Sustainable Value Creation W H E R E T O P L A Y H O W T O W I N RIGHT GEOGRAPHIES RIGHT CUSTOMERS RIGHT PRODUCTS ADVANTAGED COST POSITION (ACP) Expand margins while bolstering ability to win with customers; funds investment SUPERIOR CUSTOMER EXPERIENCE (SCX) Deliver additional volume growth and earn loyalty and willingness to pay Build advantaged capabilities and offerings while driving even lower cost HIGH RELATIVE SUPPLY POSITION (High RSP) ACP High RSP SCX+ SIMPLIFY SEGMENT RESOURCE GROW 80/20 + +
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6 Meaningful Accomplishments over Last Year with Significant Opportunities Ahead Regional Businesses Strengthened by DS Smith Acquisition ADVANTAGED COST POSITION (ACP) ~$710MM Full run-rate cost-out actioned through 2025, including synergy benefits SUPERIOR CUSTOMER EXPERIENCE (SCX) #1 Leading customer advocacy amongst North American direct competitors1 #1 Leading customer advocacy amongst EMEA peers2 #1 Player in North America3 #1 Player in EMEA4 HIGH RELATIVE SUPPLY POSITION (High RSP) ACP High RSP SCX (1) IP March 2025 corrugated packaging customer survey. (2) EMEA Packaging Business is the leading provider of corrugate excluding imports as of full year 2025; Analysis excludes Russia, Ukraine, Turkey, Belarus, and Moldova; Source: ICCA, Fefco, National Corrugated Association, Company public information. (3) Fibre Box Association (FBA), Numera Analytics, trade associations, customs agencies, and IP analysis. (4) Based on FBA, Fastmarkets RISI, Oxford Economics, and IP analysis.
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7 Time is Right to Unlock Our Full Potential through Strategic Separation Compelling Strategic Benefits IP + DS Smith combination established winning positions with critical in-region scale, and enabled cross-business sharing of best practices Actions taken to realize value of combination have been implemented via rapid integration and execution of 80/20 roadmap Separation enables both businesses to accelerate progress toward maximizing long-term profitable growth and attractive returns Creates two focused, regional, customer-centric packaging solutions leaders able to optimally capture distinct market opportunities Enables greater strategic agility and customized application of 80/20 approach for distinct regional needs Facilitates tailored investment and capital allocation strategies through separate capital structures 2 31 5 64
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Distinct Environments in North America and EMEA NORTH AMERICA Resilient and Integrated EMEA Dynamic and Localized ~$50B TAM1 ~$40B 1.0% to 1.5%2 LONG-TERM DEMAND GROWTH 1.5% to 2.0%3 ~80% TOP 5 SUPPLY POSITION ~50% More national COMPETITIVE DYNAMICS More localized High SUPPLY INTEGRATION Varies by country Centralized BUYER CONCENTRATION De-centralized Post-combination of Legacy IP and DS Smith Assets, Path to Accelerate In-region Leadership is Best Served by Separate Strategies and Capital Allocation 8 (1) TAM = Total Addressable Market; Source: Fibre Box Association (FBA), Numera Analytics, trade associations, customs agencies, RISI, and IP analysis. (2) Based on FBA, Fastmarkets RISI, Oxford Economics, and IP analysis. (3) Source: Noa Prism, Fastmarkets RISI, Numera Analytics, CEPI Containerboard and IP / DS Smith analysis.
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WHAT WILL CHANGE 9 Continuing to Keep the Customer at the Center of Everything We Do Accelerating 80/20 and Strategy Execution by Creating Two Scaled, Regional Companies WHAT REMAINS THE SAME 80/20 focus: Continuing to apply 80/20 approach, executing strategy with same discipline and pace Customer centricity: Maintaining our relentless focus on reliability and superior customer experience Operating continuity: Keeping same frontline teams and service model; no day-to-day changes for customers Sharper regional focus: North America and EMEA teams fully aligned to distinct customer needs and priorities Faster decision-making: Focused local leadership to accelerate transformation and responsiveness Tailored capital allocation: Investment decisions optimized within each business with fewer cross-region trade-offs
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10 International Paper’s North American Business At-a-Glance Leading Sustainable Packaging Solutions Provider in North America $15.2B NET SALES1 $2.3B ADJ. EBITDA1,2 15.7% ADJ. EBITDA MARGIN1,2 ~220+ FACILITIES ▪ Opportunity to invest in business with significant transformation progress already executed with additional upside ▪ Expect full benefits of cost-out and commercial actions to flow through to adj. EBITDA1,2 in near term ▪ Steadily improving margin and free cash flow1,2 ▪ Strong, investment-grade balance sheet ▪ Incremental organic and inorganic growth opportunities FOCUSED ON CUSTOMERS, ADVANTAGED COST POSITION, AND LEADING INNOVATION Strengthened RSP by Combining Legacy IP and Legacy DS Smith Assets in North America Legacy IP Sites Legacy DS Smith Sites (1) Data as of 12/31/2025 including 12 months of legacy IP NA and 11 months (February – December) of legacy DS Smith NA results; excludes corporate costs. (2) See the Appendix for the non-U.S. GAAP financial measures.
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11 Positioned to Deliver Long-term Profitable Growth IP North America Priorities FINANCIAL PRIORITIES Accelerate organic growth Strengthen margins and cash flow to invest in: ▪ Productivity ▪ Disciplined, strategic acquisitions Maintain strong, investment grade balance sheet STRATEGIC PRIORITIES AND 80/20 PLAN Advantaged Cost Position ▪ Optimize footprint and operational complexity ▪ Transform mill and box plant operations ▪ Further optimize supply chain and input costs Superior Customer Experience ▪ Deliver differentiated service and quality ▪ Strengthen partnerships with largest strategic customers High Relative Supply Position ▪ Develop and execute locally driven strategies ▪ Opportunistically pursue bolt-on acquisitions ▪ Resource to grow in priority segments
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STRONG CUSTOMER RELATIONSHIPS, HIGH-PERFORMANCE OPERATIONS, AND SUSTAINABILITY LEADERSHIP Legacy IP Sites Legacy DS Smith Sites Canary Islands ▪ Opportunity to invest in business with significant transformation upside at earlier stage ▪ IP plans to position EMEA for success by investing ~$400MM throughout 2026 prior to separation ▪ Clear path to adj. EBITDA1,2, margin, and free cash flow1,2 acceleration over the medium term ▪ Strong, investment-grade balance sheet ▪ Potential for opportunistic investments in fragmented market 12 EMEA Packaging Business At-a-Glance Leading Provider of Innovative, Sustainable Packaging Solutions in EMEA $8.5B NET SALES1 $0.8B ADJ. EBITDA1,2 9.3% ADJ. EBITDA MARGIN1,2 ~250+ FACILITIES Strengthened RSP by Combining Legacy IP and Legacy DS Smith Assets in EMEA (1) Data as of 12/31/2025 including 12 months of legacy IP EMEA and 11 months (February – December) of legacy DS Smith EMEA results; excludes corporate costs. (2) See the Appendix for the non-U.S. GAAP financial measures.
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13 Accelerate Delivery of Well-defined Transformation Roadmap EMEA Packaging Business Priorities STRATEGIC PRIORITIES AND 80/20 PLAN FINANCIAL PRIORITIES Deliver strong organic growth and cost-out Expand margins and drive cash flow and returns Maintain robust, investment grade balance sheet and dividend policy to enable: ▪ Strong operational delivery ▪ High-return organic and inorganic investments STRATEGIC PRIORITIES AND 80/20 PLAN Advantaged Cost Position ▪ Complete legacy DS Smith acquisition integrations ▪ Execute footprint and supply chain optimization plans ▪ Continue aligning SG&A resources to optimize value Superior Customer Experience ▪ Double down on strategic customer focus / execution ▪ Advance leadership in sustainability and innovation High Relative Supply Position ▪ Continue to strengthen position in key regions ▪ Reallocate resources to focus on highest priority customers ▪ Accelerate innovation in priority segments
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14 Transaction Summary STRUCTURE ▪ Expected to be structured as spin-off of combined EMEA Packaging Business to shareholders1 ▪ IP intends to retain meaningful ownership stake in EMEA Packaging Business ▪ EMEA Packaging Business expected to be listed on LSE and NYSE PROCESS & TIMING ▪ Completion expected in 12-15 months ▪ Subject to satisfaction of certain customary conditions2 NEXT STEPS ▪ IP plans to position EMEA for success by investing ~$400MM throughout 2026 prior to separation ▪ Incremental process updates to be provided as appropriate LEADERSHIP ▪ IP: Andy Silvernail, Chairman and CEO; Lance Loeffler, SVP and CFO; Tom Hamic, Executive Vice President and President, Packaging Solutions North America ▪ EMEA Packaging Business (expected leadership following separation): Tim Nicholls, CEO; David Robbie, Chairman (1) Whether transaction will be tax-free to U.S. shareholders will depend on ultimate terms, the amount of shares retained and otherfactors. (2) Includes final approval by IP Board of Directors, filing and effectiveness of registration statement with the U.S. SEC and publication of prospectus approved by U.K. FCA.
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15 2025 Performance Highlights ▪ PS NA delivered step-change in profitability with Adj. EBITDA1 +37% YoY showing strategy is working ▪ Commercial excellence delivering strategic wins and share gain, expected to outpace market by 3-4% in 4Q2 ▪ Cost transformation well underway with $510MM+ of run-rate benefit actioned through ’25 ▪ $110MM of transformation costs related to continued footprint optimization impacting ’25 Adj. EBITDA1 ▪ 80/20 roadmap has shifted from planning to delivery ▪ Decisive actions underway: 27 site closures and ~2,000 role reductions actioned/proposed3 ▪ Procurement, mill productivity, and integration synergies delivered tangible ‘25 benefits; additional upside identified through ‘27 ▪ Improved systems and transparency are strengthening accountability and execution consistency across regions Transformation is gaining momentum, delivering meaningful results with strong Adj. EBITDA growth into '26 Positioned to accelerate transformation with clear roadmap to deliver profitable growth PACKAGING SOLUTIONS NORTH AMERICA (PS NA) PACKAGING SOLUTIONS EMEA (PS EMEA) (1) See the Appendix for the non-U.S. GAAP financial measures. (2) Comparison based on FBA YoY daily basis, source: IP internal analysis, Oxford Economics & Numera Analytics. (3) Subject to employee consultation.
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16 Enterprise: FY25 Results1 (1) All prior year results excluding Free Cash Flow have been restated to exclude GCF due to sale | '23-'24 do not include DSS results | ‘25 includes DSS from February onward. (2) See the Appendix for the non-U.S. GAAP financial measures. (3) Includes $958MM impact from step up depreciation from integration and accelerated depreciation from strategic actions. $16,033 $15,835 $23,634 2023 2024 2025 Sales ($MM) $787 $786 $229 2023 2024 2025 Adj. EBIT2,3 ($MM) $1,933 $1,636 $2,976 2023 2024 2025 Adj. EBITDA2 ($MM) 12.1% 10.3% 12.6% 2023 2024 2025 Adj. EBITDA Margin2 $1.18 $1.33 $(0.20) 2023 2024 2025 $692 $757 $(159) 2023 2024 2025 Free Cash Flow3 ($MM)Adj. Operating EPS2,3
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17 PS NA Continues to Demonstrate that 80/20 Transformation is Driving Results PS NA FY25: +37% Adj. EBITDA1, 340 bps of Adj. EBITDA1 Expansion $1.67 $2.28 FY24A FY25A Adj. EBITDA Margin1 12.3% 15.7% PS NA Full Year Adj. EBITDA1 ($B) +37% (1) See the Appendix for the non-U.S. GAAP financial measures. 2025 EARNINGS DRIVERS Commercial Commercial momentum with additional strategic wins and above-market growth in 2H Strong price realization enabled by service, quality, and customer advocacy Exiting non-strategic export business Cost-out Optimization of Plant / Mill footprint with facility closures and divestitures Continued expansion of lighthouse 80/20 model to 85% of Box Plants and all Mills Streamlined overhead with decision making closer to business Transformation and one-time costs to achieve
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18 PS NA: 4Q25 Results ($MM) 3Q25 to 4Q25 COMMENTARY 3Q25 Adj. EBITDA1 655 Price & Mix 6 Favorable box mix Volume (87) Strategic wins Exited non-strategic business $(60)MM | 3 fewer shipping days Ops & Costs 3 Cost-out impact of footprint optimization +$60MM Transitional distribution costs | Timing/seasonal spend Maintenance Outages (41) Planned maintenance outages higher in 4Q following lighter outage quarter in 3Q Inputs 24 Reduced Valliant curtailment impact | Lower recycled fiber costs 4Q25 Adj. EBITDA1 560 Depreciation & Amortization Expense 244 (Actual) (1) See the Appendix for the non-U.S. GAAP financial measures.
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19 Cost and Commercial Programs will Continue to Deliver in ’26 as Full Benefits Are Realized PS NA: 2026E Adj. EBITDA1 ($B) (1) See the Appendix for the non-U.S. GAAP financial measures. $0.1 $0.5 $(0.2) $2.3 2025 Commercial Cost-out Transformatio n costs Inflation 2026E PS NA Adj. EBITDA1 ($B) $2.5-2.6 2025A Commercial Cost-Out Riverdale Conversion + Planned Outages Inflation 2026E $(0.2) +9-13% 2026E Assumptions NA Ind Growth 0 to +1% | PS NA Above-Ind Growth +2% | Excludes Impact of Future Pricing Realization 2026 EARNINGS DRIVERS Commercial Strategic wins and ’25 pricing carryover Exiting non-strategic export business Cost-out Cost Optimization across footprint, productivity, supply chain, sourcing, overhead Riverdale Conversion + Planned Outages Riverdale – unabsorbed fixed costs & spend Reliability investments with higher outage expense Inflation/PPV Persistent inflationary headwinds
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20 Transformation Costs in 1H26 | Confidence in 2H26 Step Change (1) See the Appendix for the non-U.S. GAAP financial measures. 1H26 YoY Headwinds: $(165)MM Normalized for 1x items ~+$100-120MM 1,069 1,215 1,000 – 1,025 1,500 – 1,600 1H25 2H25 1H26E 2H26E ’25 Actual $2.3B ’26 Outlook $2.5-2.6B | ~+9-13% YoY Normalized YoY % 9-11% 23-32% PS NA Adj. EBITDA1 ($MM) ~$(165) 1 1 2H26 Sequential Growth: ~+$500-575MM2 2 Timing Impacts ($MM) ~$(85) Mill reliability investments, timing of planned maintenance outages ~$(60) Riverdale conversion – unabsorbed fixed cost, conversion spend ~$(20) 1 fewer shipping day Growth Drivers ($MM) ~+$200 Timing of planned maintenance outages ~+$80 Riverdale conversion – ramp, optimization ~+$75 Volume | Mix | Seasonality ~+$200 80/20 initiatives (including footprint, productivity improvements, reduction of on-going mill costs, SC and procurement initiatives)
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21 PS NA: 1Q26 Outlook (1) See the Appendix for the non-U.S. GAAP financial measures. ($MM) 4Q25 to 1Q26 Outlook COMMENTARY 4Q25 Adj. EBITDA1 560 Price & Mix 51 Favorable seasonal mix | Favorable export business Volume (68) Strategic wins | 1 more shipping day Seasonality | Commercial impact of mill closure Ops & Costs — Cost-out impact from footprint optimization +$20MM Inflation Maintenance Outages (8) Timing of planned outages Inputs (1) Favorable OCC Seasonal utilities 1Q26 Adj. EBITDA1 534 Depreciation & Amortization Expense 230 (Outlook)
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22 PS EMEA: 4Q25 Results (1) See the Appendix for the non-U.S. GAAP financial measures. (2) Includes impact from step up depreciation from integration and accelerated depreciation from strategic actions. ($MM) 3Q25 to 4Q25 COMMENTARY 3Q25 Adj. EBITDA1 209 Price & Mix (5) Board price decline Volume (3) Soft but stable demand Ops & Costs 2 Cost out initiatives Integration costs Maintenance Outages 3 Timing of planned outages Inputs 22 Lower fiber and energy costs 4Q25 Adj. EBITDA1 228 Depreciation & Amortization Expense2 451 (Actual)
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23 80/20 Transformation Expected to Build Momentum Throughout ‘26 PS EMEA: 2026E Adj. EBITDA1 Outlook ($B) 2026 EARNINGS DRIVERS Commercial EMEA market growth 1-1.5% Continued progress from 80/20 customer strategy Cost-out Footprint and org optimizations Procurement, distribution, and mill/box improvements Inflation Underlying cost inflation partly offset by lower energy cost $0.2 $0.2 $(0.1) $0.8 2025A Commercial Cost-out Inflation 2026E $1.0 - $1.1 PS EMEA Adj. EBITDA1 ($B) +25-38% 2026E Assumptions EMEA Ind Growth +1-1.5% | PS EMEA Above-Ind Growth +0.5-1% | Excludes Impact of Future Pricing Realization (1) See the Appendix for the non-U.S. GAAP financial measures.
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24 Material Cost Savings for 2026 Anticipated from Proposed Actions Significant Proposals Made to Right Size PS EMEA’s Footprint Through 80/20 (1) Includes publicly announced reductions, subject to employee consultation. $160MM+ of run rate footprint and headcount cost savings announced in ‘25 ACTIONED PROPOSED Footprint Reduction¹ Net Headcount Reduction¹ Footprint Reduction¹ Net Headcount Reduction¹ Packaging 17 Plants 1,000+ 7 Plants 700+ Paper 2 1 Mill | 1 Recycling Center 300+ – – Corporate Functions 1 100+ – – Total PS EMEA 20 1,400+ 7 700+
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25 PS EMEA: 1Q26 Outlook (1) See the Appendix for the non-U.S. GAAP financial measures. ($MM) 4Q25 to 1Q26 Outlook COMMENTARY 4Q25 Adj. EBITDA1 228 Price & Mix 19 Favorable mix and seasonality Volume 14 Known wins Ops & Costs (42) Timing of energy allowances | Impacts of accounting process and policy changes Maintenance Outages 7 Timing of planned outages Inputs (5) Higher energy cost 1Q26 Adj. EBITDA1 221 Depreciation & Amortization Expense 267 (Outlook)
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2626 (1) See the Appendix for the non-U.S. GAAP financial measures. 2026 TARGETSTAKING SWIFT, DECISIVE ACTION TO CREATE LONG-TERM VALUE Combination created two regional powerhouses, primarily by capturing in-region benefits 80/20 approach delivering efficiency via sharpened focus on distinct value drivers and complexity reduction Separation will align capital and resource allocation to unique mission of each business Optimal path to achieve best-in-class performance and ultimately best-in-class valuation PS NA PS EMEA Total Net Sales $14.6-15.0B $9.5-9.9B $24.1-24.9B Adj. EBITDA1 $2.5-2.6B $1.0-1.1B $3.5-3.7B Free Cash Flow1 ~$300-500MM 2027 Target of $5B Adj. EBITDA1 remains on track Key Takeaways
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27 Investor Relations Mandi Gilliland +1-901-419-4595 mandi.gilliland@ipaper.com Michele Vargas +1-901-419-7287 michele.vargas@ipaper.com Media newsroom@ipaper.com
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Appendix
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29 Enterprise: 4Q25 Results1 (1) All prior year results excluding Free Cash Flow have been restated to exclude GCF due to sale | '24 do not include DSS results | ‘25 includes 11 months of DSS results (February-December). (2) See the Appendix for the non-U.S. GAAP financial measures. (3) Includes impact from step up depreciation from integration and accelerated depreciation from strategic actions. $3,922 $6,222 $6,006 4Q24 3Q25 4Q25 Sales ($MM) $443 $859 $758 4Q24 3Q25 4Q25 Adj. EBITDA2 ($MM) 11.3% 13.8% 12.6% 4Q24 3Q25 4Q25 Adj. EBITDA Margin2 $0.38 $(0.43) $(0.08) 4Q24 3Q25 4Q25 $137 $150 $255 4Q24 3Q25 4Q25 $222 $(240) $61 4Q24 3Q25 4Q25 Adj. EBIT2,3 ($MM) Free Cash Flow2 ($MM)Adj. Operating EPS2,3
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30 PS NA: 4Q25 Results1 (1) '24 does not include DSS results | ‘25 includes DSS from February onward. (2) See the Appendix for the non-U.S. GAAP financial measures. (3) Excludes Recycling business Adj. EBITDA. $3,539 $3,898 $3,715 4Q24 3Q25 4Q25 Sales ($MM) $228 $(166) $319 4Q24 3Q25 4Q25 $434 $655 $560 4Q24 3Q25 4Q25 Adj. EBITDA2,3 ($MM) 12.9% 17.5% 15.7% 4Q24 3Q25 4Q25 Adj. EBITDA2,3 Margin Adj. EBIT2 ($MM)
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31 PS NA: FY25 Results1 (1) ’23 & '24 do not include DSS results | ‘25 includes DSS from February onward. (2) See the Appendix for the non-U.S. GAAP financial measures. (3) Excludes Recycling business Adj. EBITDA. $14,293 $14,293 $15,175 2023 2024 2025 Sales ($MM) $1,912 $1,666 $2,284 2023 2024 2025 Adj. EBITDA2,3 ($MM) 14.1% 12.3% 15.7% 2023 2024 2025 Adj. EBITDA2,3 Margin $839 $891 $572 2023 2024 2025 Adj. EBIT2 ($MM)
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32 PS EMEA: 4Q25 Results1 Adj. EBIT2 ($MM) $357 $2,310 $2,300 4Q24 3Q25 4Q25 Sales ($MM) $19 $(58) $(223) 4Q24 3Q25 4Q25 $35 $209 $228 4Q24 3Q25 4Q25 Adj. EBITDA2 ($MM) 9.8% 9.0% 9.9% 4Q24 3Q25 4Q25 Adj. EBITDA2 Margin (1) ’23 & '24 do not include DSS results | ‘25 includes DSS from February onward. (2) See the Appendix for the non-U.S. GAAP financial measures.
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33 PS EMEA: FY25 Results1 (1) ’23 & '24 do not include DSS results | ‘25 includes DSS from February onward. (2) See the Appendix for the non-U.S. GAAP financial measures. $1,398 $1,355 $8,451 2023 2024 2025 Sales ($MM) $80 $60 $(236) 2023 2024 2025 $144 $124 $784 2023 2024 2025 Adj. EBITDA2 ($MM) 10.3% 9.2% 9.3% 2023 2024 2025 Adj. EBITDA2 Margin Adj. EBIT2 ($MM)
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34 4Q24 to 4Q25 Adj. EBITDA1 Bridge ($MM) Packaging Solutions North America Packaging Solutions EMEA 4Q24 Adj. EBITDA1,2 434 35 Price & Mix 148 (14) Volume (99) (3) Ops & Costs 40 23 Maintenance Outages 7 – Inputs 24 11 DS Smith Legacy EBITDA1 6 176 4Q25 Adj. EBITDA1 560 228 Depreciation & Amortization Expense 244 451 (1) See the Appendix for the non-U.S. GAAP financial measures. (2) '24 does not include DSS results.
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35 Select Financial Metrics1 ($MM) 2024 2025 2026F Maintenance Outage Expense $371 $390 $474 Capital Expenditures $921 $1,857 Targeting $1,950 – $2,050 Depreciation & Amortization2 $850 $2,747 $2,000 Net Interest Expense $224 $372 $375 Corporate Expense $170 $109 $60 Effective Tax Rate 15% 32% 25-27%3 (1) Before special items. (2) Includes expense of $233 million for 2024 associated with mill closure and plant closures, and $958 million for 2025 associated with mill closures and plant closures. (3) No reconciliation of the anticipated operational effective income tax rate for 2026, a forward -looking non-GAAP financial measure, to the most comparable GAAP measure, is included in this presentation because we are unable to quantify certain amounts that would be required to be included in the GAAP measure without unreasonable efforts, including forecasting net inc ome for 2026.
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36 Maintenance Outages Expenses | 2025 ($MM) 1Q25A 2Q25A 3Q25A 4Q25A 2025A Packaging Solutions North America $93 $132 $46 $87 $358 Packaging Solutions EMEA $4 $9 $11 $8 $32 Total Impact $97 $141 $57 $95 $390
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37 Maintenance Outages Expenses | 2026 Forecast ($MM) 1Q26F 2Q26F 3Q26F 4Q26F 2026F Packaging Solutions North America $95 $215 $114 $27 $451 Packaging Solutions EMEA $1 $8 $9 $5 $23 Total Impact $96 $223 $123 $32 $474
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38 4Q25 vs 3Q25 Adjusted Operating EPS1 (0.43) (0.08) 0.00 (0.12) 0.01 (0.05) 0.06 (0.07) 0.52 3Q25 Price/Mix Volume Operations & Costs Maintenance Outages Input Costs Corporate & Other Items Depreciation & Amortization 4Q25 (1) See the Appendix for the non-U.S. GAAP financial measures.
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39 FY24 vs FY25 Adjusted Operating EPS1,2 1.33 (0.20) 2.00 (0.30) (0.36) 0.02 0.12 (0.06) (4.54) 1.59 2024 Price/Mix Volume Operations & Costs Maintenance Outages Input Costs Corporate & Other Items Depreciation & Amortization Legacy DS Smith 2025 (1) See the Appendix for the non-U.S. GAAP financial measures. (2) '24 does not include DSS results | ‘25 includes DSS from February onward.
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40 North America Box Volume Trend (1) The Fibre Box Association (FBA) is the U.S. trade association that provides industry key indicators of demand, capacity utilization, and sustainability progress for the paper and packaging sector | Data excludes legacy DSS volume. Strategic shift in customer focus Accelerating customer-centric approach -12% -10% -8% -6% -4% -2% 0% 2% 4% 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 IP FBA Actuals 1 YoY Daily Basis MSF +2%
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41 Sales Volume by Product1 | Preliminary and Unaudited (1) Sales volume includes third party and inter-segment sales and excludes sales of equity investee. (2) Volumes for corrugated box sales reflect consumed tons sold (“CTS”). Board sales by these businesses reflect invoiced tons. Three Months Ended December 31, Three Months Ended September 30, Twelve Months Ended December 31, 2025 2024 2025 2025 2024 PS NA (In thousands of short tons) Corrugated Packaging2 2,233 2,132 2,261 8,887 8,811 Containerboard 649 715 767 3,000 3,017 Recycling 514 504 486 2,003 2,163 Saturated Kraft 5 44 14 89 191 Gypsum / Release Kraft 51 53 56 215 235 PS NA 3,452 3,448 3,584 14,417 14,417 PS EMEA (In thousands of short tons) Corrugated Packaging2 1,419 284 1,406 5,348 1,074 Containerboard 383 68 377 1,455 250 PS EMEA 1,802 352 1,783 6,803 1,324
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42 2025 Operating Earnings Pre-Tax $MM Tax $MM Non-controlling Interest $MM Equity Earnings $MM Net Income $MM Diluted Average Shares MM Diluted EPS1 Earnings (Loss) from Continuing Operations 1Q25 $(155) $32 - $(1) $(124) 438 $(0.28) 2Q25 $116 $(40) - $(1) $75 533 $0.14 3Q25 $(675) $250 - $(1) $(426) 528 $(0.81) 4Q25 $(2,654) $291 - - $(2,363) 528 $(4.48) Net Special Items1 1Q25 $237 $(42) - - $195 438 $0.44 2Q25 $20 $3 - - $23 533 $0.04 3Q25 $354 $(149) - - $205 528 $0.39 4Q25 $2,626 $(302) - - $2,324 528 $4.41 Non-Operating Pension Expense (Income) 1Q25 $3 $(1) - - $2 438 $0.01 2Q25 $(5) $1 - - $(4) 533 $0.00 3Q25 $(4) $1 - - $(3) 528 $(0.01) 4Q25 $(6) $2 - - $(4) 528 $(0.01) Adj. Operating Earnings1 1Q25 $85 $(11) - $(1) $73 438 $0.17 2Q25 $131 $(36) - $(1) $94 533 $0.18 3Q25 $(325) $102 - $(1) $(224) 528 $(0.43) 4Q25 $(34) $(9) - - $(43) 528 $(0.08) (1) See the Appendix for the non-U.S. GAAP financial measures.
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18 4 (5) 7 8 14 - - Energy Fiber Chemicals Freight OCC North America EMEA 43 Global Input Costs 4Q25 vs 3Q25 | $46MM Favorable, $0.06 per share 24 22 Packaging Solutions North America Packaging Solutions EMEA Energy Wood Chemicals Freight OCC By Input TypeBy Business
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44 Non-GAAP Financial Measures Management has elected to present forward-looking guidance based on Adjusted EBITDA, rather than Adjusted EBIT. This change refl ects investor feedback and our view that Adjusted EBITDA provides a more meaningful measure of operating performance and cash flow generation, particularly in evaluating the Company’ s ongoing results and future outlook during this period of transformation. See the reconciliation of all presented non -GAAP measures to the most directly comparable GAAP financial measure s on IP’s website at https://www.internationalpaper.com/investors/financial-reports/quarterly-results. Adjusted Operating Earnings, a non-GAAP financial measure, is based on earnings (loss) from continuing operations under GAAP before net special items and non -operating pension expense (income). The most directly comparable GAAP measure is earnings (loss) from continuing operations. Adjusted EBIT, a non-GAAP financial measure, earning (loss) before income taxes and equity earnings, excluding special items and non -operating pension expense (income), presented as a supplemental measure of our performance. The Company believes this measure provides additional meaningful information in eval uating the Company’s performance over time, and that other companies use this and/or similar measures for similar purposes. However, Adjusted EBIT has limitations as an analytical tool , and you should not consider it in isolation, or as a substitute for analysis of our results as reported under GAAP. Adjusted EBIT no longer excludes accelerated depreciation expense related to strategic mill actions. Adjusted EBITDA, a non-GAAP financial measure, earning (loss) before income taxes and equity earnings and depreciation and amortization, excludin g special items and non-operating pension expense (income) presented as a supplemental measure of our performance. The Company believes this measure provides additional meaningful information in eval uating the Company’s performance over time, and that other companies use this and/or similar measures for similar purposes. However, Adjusted EBIT DA has limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for analysis of our results as reported under GAAP. We use this non -GAAP financial measure at a segment level, along with other factors, to evaluate our segment performance against our peers. We believe that investors use this measure to evaluate our performance relative to our peers. Adjusted EBITDA Margin, a non-GAAP financial measure, presented as a supplemental measure of our performance. The Company believes this measure provides additional meaningful information in evaluating the Company’s performance over time, and that other companies use this and/or similar measures for similar purp oses. However, Adjusted EBITDA Margin has limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for analysis of our results as reported under GAAP. We use this non-GAAP financial measure at a segment level, along with other factors, to evaluate our segment performance against our peers. We believe that investors use this measure to evaluate our pe rformance relative to our peers. Adjusted Operating EPS, a non-GAAP financial measure, based on Adjusted Operating Earnings (defined as earnings (loss) from continuing operations (GAAP) before net special items and non- operating pension expense (income)). The most directly comparable GAAP measure is diluted earnings (loss) per share. Free Cash Flow, a non-GAAP financial measure, which equals cash provided by (used for) operations less capital expenditures. The most directly comparable GAAP measure is cash provided by (used for) operations. PS NA & PS EMEA Adjusted EBIT, a non-GAAP financial measure, at a segment level is Business Segment Operating Profit for such segment defined as earnings (loss ) before income taxes and equity earnings, but including the impact of less than wholly owned subsidiaries, and excluding interest expense, net, corpor ate expenses, net, net special items and non-operating pension expense. Business Segment Operating Profit at a segment level is a measure reported to our management for purposes of making decisions about allocating resources to our business segments and assessing the performance of our business segments and is presented in our financial statement footnotes in accordance with ASC 280.