2020 Annual Performance Summary

1 2020 Annual Performance SummaryWHO WE ARE We are one of the world s leading producers of renewable, fiber-based packaging, pulp and WE DO We improve people s lives, the planet and our company s Performance by transforming renewable resources into products people depend on every day. HOW WE DO IT We do the right things, in the right ways, for the right reasons, all of the time this is The IP Way. Together, The IP Way and our Core Values of Safety, Ethics and Stewardship serve as our guideposts as we carry out our Mission. The IP Way Forward is our strategic framework for pursuing our Vision and creating value for all stakeholders for generations to Vision is to be among the most successful, sustainable and responsible companies in the than 25,000 Customers in 150 Countries$21 Billion Net Sales in 2020 Approximately 48,000 EmployeesAbout the cover: A forest is one of nature s most powerful systems to capture carbon dioxide, purify water and create diverse plant and animal habitats, and they provide economic opportunity for millions of people.

2 International Paper is committed to the stewardship of our natural resources, including the sustainability of forests for generations to of Directors As of April 1, 2021 Ahmet C. Dorduncu Chief Executive Officer Akk k GroupIlene S. Gordon Presiding Director Retired Chairman, President and Chief Executive Officer Ingredion IncorporatedChristopher M. Connor Retired Chairman, President and Chief Executive Officer The Sherwin-Williams CompanyREGIONAL HEADQUARTERSI nternational Paper Russia International Paper Russia Kropotkina Street 1, Litera I Senator Center Saint Petersburg, 197101 RussiaInternational Paper Europe, Middle East and Africa (EMEA) Chauss e de la Hulpe 166 1170 Brussels, BelgiumInternational Paper Do Brasil Rodovia SP 340, KM 171 Mogi Gua u/SP CEP: 13845-901 International Paper Asia 28F, Ascendas Plaza 333 Tianyaoqiao Road, Xuhui District, Shanghai 200030 ChinaWORLD HEADQUARTERSI nternational Paper Company 6400 Poplar Avenue Memphis, TN 38197 United States of AmericaRay G.

3 Young Executive Vice President and Chief Financial Officer Archer Daniels Midland CompanyAnton V. Vincent President Mars Wrigley North AmericaDonald G. DG Macpherson Chairman and Chief Executive Officer Grainger, Gustafsson Chief Executive Officer Zebra Technologies CorporationClinton A. Lewis, Jr. Former Executive Vice President and Group President International Operations, Commercial Development, Global Genetics and PHARMAQ Zoetis Inc. Jacqueline C. Hinman Former Chairman, President and Chief Executive Officer CH2M HILL Companies, Ltd. Kathryn D. Sullivan Senior Fellow at the Potomac Institute for Policy Studies and Ambassador-at-Large at the Smithsonian National Air and Space MuseumMark S. Sutton Chairman of the Board and Chief Executive Officer International Paper CompanyJ.

4 Steven Whisler Retired Chairman and Chief Executive Officer Phelps Dodge Corporation (Until May 10, 2021)International PaperIn 2020, the COVID-19 pandemic forced us to work in different ways, but it also strengthened our sense of responsibility and pride in manufacturing essential, sustainable products that people depend on every our facilities to take care of customers starts with our employees showing up and working safely and they did just that, every day, throughout the pandemic. I am incredibly proud of and grateful for our global team s resilience and their ongoing commitment to our customers, our communities and each stayed true to our core values of Safety, Ethics and Stewardship throughout the challenging year. We made a measurable improvement to close out our 2020 sustainability goals and introduced Vision 2030, which includes robust targets to drive sustainable outcomes for people and communities, the environment and our the last three years, we contributed nearly $70 million to our signature causes in our communities in addition to funds contributed by our generous employees.

5 Addressing critical community needs remained a significant focus in 2020, and we were proud to donate two million corrugated boxes to local food banks and agencies to support their efforts to deliver essential food and supplies to those in need. 2020 RESULTSIn 2020, we continued to demonstrate the strength and resilience of our employees, our diverse customer base and our world-class manufacturing and supply chain capabilities. Adapting to our customers rapidly changing needs was critical to successfully navigating demand surges in parts of our corrugated packaging and cellulose fibers businesses, as well as unprecedented demand declines in printing papers resulting from the pandemic s impact on businesses and schools. We also managed costs extremely well across our three businesses and took prudent and early actions to reinforce cash generation and enhance our financial strength in the face of economic the combination of these actions, we delivered: $ billion in adjusted earnings before interest, tax, depreciation and amortization (Adjusted EBITDA) Outstanding free cash flow of $ billion, bringing our five-year average free cash flow to $ billion The 11th consecutive year of value-creating returnsWe continued to make choices consistent with our capital allocation framework: We repaid $ billion of debt to further strengthen our balance sheet.

6 Our pension gap improved by $500 million in 2020, resulting in a healthy 95% funding IP Way Forward is our strategic framework for pursuing our Vision and creating value for all stakeholders for generations to Shareowners,Our Vision is to be among the most successful, sustainable and responsible companies in the S. Sutton, Chairman of the Board and Chief Executive Officer$21 Billion Net Sales in 2020 2020 annual performance summary | 1 We paid $800 million in dividends to our shareowners in 2020, bringing our five-year total to $ billion returned through dividends and share repurchases. This represents just over 50% of our free cash flow in that five-year period. We continued to invest in our North American and EMEA corrugated packaging businesses to enhance our capabilities, serve customers and grow was a year of relentless challenges through it all, we demonstrated that we can navigate all types of economic conditions, operate safely and produce solid OUTLOOKAs we enter 2021, we are mindful that we are still in the midst of a global pandemic.

7 We remain committed to our principles for navigating COVID-19 and for remaining strong and resilient for all our are excited about the path we are charting to accelerate value creation. In December of 2020, we announced plans to position International Paper as a highly-advantaged corrugated packaging company. We are building on the strength of our packaging business and taking meaningful actions to drive sustainable, profitable growth and accelerate value creation for our customers and plan includes the proposed spin-off of our Printing Papers business into the world s premier global paper company. And with a more focused portfolio, International Paper will take meaningful actions to accelerate profitable growth and reduce our cost structure to deliver $350 - $400 million in incremental earnings growth by the end of 2023.

8 We have significant catalysts to accelerate our Performance including: Streamlining and simplifying our organization to support a corrugated packaging and absorbent fibers company with a more focused geographic footprint Redesigning processes to increase efficiency and reduce costs in maintenance and reliability, distribution, logistics and sourcing Identifying opportunities to optimize our manufacturing and converting assets to reduce costs and be more capital efficientOur Performance in 2020 and our outlook reinforce our confidence in the strength of International Paper and our ability to drive improvement through operational, commercial and investment excellence. I am proud of our team and our results. We remain committed to strengthening our company for all our stakeholders in the short-term and the long-term, as we pursue our Vision to be among the most successful, sustainable and responsible companies in the behalf of International Paper s Board of Directors and our 48,000 employees around the world, thank you for your continued support and ownership of International , Mark S.

9 Sutton, Chairman of the Board and Chief Executive OfficerTHRIVING PEOPLE& COMMUNITIES HEALTHY &ABUNDANT FORESTS RENEWABLE SOLUTIONSSUSTAINABLEOPERATIONS VISION2030 OUR GOALS: Vision 2030 is a set of four goals and eight corresponding targets that demonstrate our commitment to building a better future for people, the planet and our company. THRIVING PEOPLE& COMMUNITIES HEALTHY &ABUNDANT FORESTS RENEWABLE SOLUTIONSSUSTAINABLEOPERATIONS VISION2030 OUR GOALS: Vision 2030 is a set of four goals and eight corresponding targets that demonstrate our commitment to building a better future for people, the planet and our company. See our targets at: 2030 is a set of four goals and eight corresponding targets that demonstrate our commitment to building a better future for people, the planet and our company.

10 Our Vision 2030 commitment is aligned with the United Nations Sustainable Development Goals (SDGs).To support critical community needs where we live and work, we are donating $500,000 to the American Red Cross as part of a multi-year collaboration. This year s contribution is in memory of those who lost their lives during the COVID-19 pandemic. | 2020 Annual Performance SUMMARY2 SENIOR LEADERSHIP RETIREMENTS Catharine I. Slater, senior vice president, Global Cellulose Fibers and IP Asia retired on January 31, 2021. Cathy was elected senior vice president in December 2016, when she joined the company as part of the Weyerhaeuser Cellulose Fibers acquisition. We recognize and appreciate Cathy s many contributions and wish her continued good health and happiness in Michael Amick, Jr.