EX-99.2 3 dex992.htm SLIDES OF INTERNATIONAL PAPER COMPANY Slides of International Paper Company
Fourth Quarter
and Full Year
2009 Review
February 3, 2010
Fourth Quarter
and Full Year
2009 Review
February 3, 2010
John V. Faraci
Chairman &
Chief Executive Officer
Tim S. Nicholls
Senior Vice President &
Chief Financial Officer
Exhibit 99.2

2
Forward-Looking Statements
Forward-Looking Statements
These slides and statements made during this presentation contain 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
relate
to:
(i)  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 and changes in pension and health care costs; (iv) unanticipated expenditures
related to the cost of compliance with environmental and other governmental regulations
and to actual or potential litigation; and (v) whether we experience a material disruption at
one of our manufacturing facilities and risks inherent in conducting business through a joint
venture. We undertake no obligation to publicly update any forward-looking statements,
whether as a result of new information, future events or otherwise. 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 the company's Securities and
Exchange Commission filings.

3
Statements Relating to Non-GAAP
Financial Measures
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.

4
IP Delivers Solid Full-Year Results
Despite Challenging Economic Environment
IP Delivers Solid Full-Year Results
Despite Challenging Economic Environment
$2.2 B
Free Cash Flow
1
$4.3 B Balance Sheet Improvement
$3.1 B Debt Reduction
$400 MM Unfunded Pension Obligation Reduction
$800 MM Cash Balance Increase
2.6 MM Ton Excess Capacity Reduction
$500 MM Industrial Packaging Synergies
$500 MM Overhead Cost Reduction
1
Cash provided by continuing operations less capital expenditures, excluding cash received from alternative fuel credits of $1.7 B
and cash received under European accounts receivable securitization of $0.2 B

5
Responding to the Economic Contraction
Decisive Actions in 2009
Responding to the Economic Contraction
Decisive Actions in 2009
NA
Containerboard
1.8 MM tons (16%) LOO
1.4 MM tons (13%) closed
NA
Uncoated
Freesheet
405
M
tons
(13%)
LOO
600 M tons (19%) to close in 2009/10
NA
Coated
Paperboard
300 M tons (16%) LOO
140 M tons (7%) closed
Capacity
Management
Integration
Synergies
Cost
Reduction
Balance
Sheet
$500 MM Overhead Reduction
Hourly Headcount Reduction
Salaried Position Eliminations
Systematic, Not Episodic
$500
MM
Integration
Synergies
Salaried Headcount Reduction
Mill & Box Plants Optimization
Box Margins Improvement
Mill Freight Reduction
Box Plant Rationalization
$300 MM Incremental Synergies
$3.1 B Debt Reduction
$800 MM Cash Increase
$2.75 B Debt Refinanced
$1.5 B Corporate Revolver Extension
$1 B AR Securitization Extension
$450
MM
Capex
Reduction

6
Debt Reduction Progress
$3.7 Billion Reduction since Acquisition
Debt Reduction Progress
$3.7 Billion Reduction since Acquisition
1
Excludes the debt repayment of $1 B from the proceeds of our May bond issuance: $1 B 9.375% notes due 2019
2
Excludes the debt repayment of $1 B from the proceeds of our August bond issuance: $1 B 7.5% notes due 2021
3
Excludes the debt repayment of $750 MM from the proceeds of our November bond issuance: $750 MM 7.3% notes due 2039

7
2009 Full-Year Results
Record Free Cash Flow
2009 Full-Year Results
Record Free Cash Flow
1
Earnings from continuing operations before special items
2
Cash provided by continuing operations less capital expenditures before dividends; 2009 excludes cash received from alternative
fuel credits of $1.7 B and cash received under European accounts receivable securitization of $0.2 B
$ Billion
2008
2009
Sales
$24.8
$23.4
EBITDA
1
$3.0
$2.8
Year-End Debt
$12.1
$9.0
Cash Balance
$1.1
$1.9
Free
Cash
Flow
2
$0.6
$1.7
$2.2
2007
2008
2009

8
Earnings from continuing operations before special items
2009 Earnings per Share
Weak Demand, Input Cost Relief, Strong Operations
2009 Earnings per Share
Weak Demand, Input Cost Relief, Strong Operations

9
Improving Earnings Quality
Replaced Land Sales Earnings
Improving Earnings Quality
Replaced Land Sales Earnings
EBIT before
special
items
including
discontinued
operations; Forest Products EBIT excludes Wood Products
Earnings as reported in the 10-K for each year at time of filing
Forest Products
EBIT ($B)                     
$0.6           $0.5            $0.7            $0.7
$0.5            $0.4           < $0.1

10
Fourth Quarter 2009
Strong Free Cash Flow & Debt Reduction
Fourth Quarter 2009
Strong Free Cash Flow & Debt Reduction
$500 MM Free Cash Flow
1
$600 MM Debt Reduction
$200 MM Cash Increase
$36 MM Input Cost Inflation
Earnings from continuing operations before
special items
•
1
Cash provided by continuing operations less capital expenditures,
excluding cash received from alternative fuel mixture credits

11
Earnings before special items
4Q09 vs. 3Q09 EPS
Stable Volumes, Rising Input Costs, Weather-Impacted Operations
4Q09 vs. 3Q09 EPS
Stable Volumes, Rising Input Costs, Weather-Impacted Operations

12
Industrial Packaging Earnings
4Q09 vs. 3Q09
Industrial Packaging Earnings
4Q09 vs. 3Q09
Earnings before special items

13
N.A. Industrial Packaging Relative EBITDA Margins
Industry-Leading Margins Despite LOO Costs
N.A. Industrial Packaging Relative EBITDA Margins
Industry-Leading Margins Despite LOO Costs
IP EBITDA margins based on North American Industrial Packaging operating profit before special items
Competitor EBITDA margin estimates obtained from public filings and IP analysis
2009
17.5%
2008
16.5%
20.7%
16.9%
19.0%
15.4%
12.4%
12.3%
17.6%
16.9%
0%
4%
8%
12%
16%
20%
24%
IP
Competitor A
1Q09
2Q09
3Q09
4Q09
2008
15.2%
IP 2009 margins reflect 2.1 MM tons
(19% of capacity) of downtime
Competitor A 2009 margins reflect 200
M tons (8% of capacity) of downtime
2009
15.3%

14
Printing Papers Earnings
4Q09 vs. 3Q09
Printing Papers Earnings
4Q09 vs. 3Q09
Earnings before special items

15
Consumer Packaging Earnings
4Q09 vs. 3Q09
Consumer Packaging Earnings
4Q09 vs. 3Q09
Earnings before special items
68
49
(2)
(7)
(10)
(2)
2
$0
$15
$30
$45
$60
$75
3Q09
Price
Input Costs
Operations &
Costs
Maintenance
Outages
Mix
4Q09

16
$ Million
4Q08
3Q09
4Q09
Sales
$1,940
$1,665
$1,675
Earnings
$26
$21
$31
xpedx
xpedx
4Q09 earnings include a $17 MM favorable LIFO adjustment
Paper prices stabilized as the quarter progressed
4Q08 and 3Q09 earnings include $6 MM unfavorable and $3 MM favorable LIFO inventory valuation adjustments respectively

17
$ Million
4Q08
3Q09
4Q09
Sales
$215
$275
$300
Earnings
$44
$36
$33
EBITDA Margin
32%
25%
23%
IP Brazil results are reported in the Printing Papers segment
4Q09 vs. 3Q09
4Q09 vs. 4Q08
Business
Volume
Price /
Ton
Volume
Price /
Ton
Uncoated Freesheet
7%
($29)
44%
($172)
Domestic
(5%)
($43)
(7%)
($70)
Export
16%
($19)
134%
($244)
IP Brazil

18
$ Million
4Q08
3Q09
4Q09
Sales (100%)
$530
$305
$350
Earnings (IP Share)
$0
$0
$6
Ilim’s
results are reported on a one-quarter lag
IP’s shares of Ilim’s
4Q08, 3Q09 & 4Q09 earnings includes an after-tax foreign exchange loss of $11 MM, and after-tax foreign
exchange gains of $10 MM and $2 MM, respectively
4Q09 vs. 3Q09
4Q09 vs. 4Q08
Business
Volume
Price /
Ton
Volume
Price /
Ton
Pulp
0%
$65
(7%)
($213)
Containerboard
10%
$18
15%
($189)
IP received a $51 MM dividend from Ilim in 4Q09
Ilim Joint Venture

19
Global Input Costs by Segment
$36 MM, or $0.06/Share Unfavorable vs. 3Q09
Global Input Costs by Segment
$36 MM, or $0.06/Share Unfavorable vs. 3Q09
By Business
By Input Type
($30)
($8)
$2
Industrial
Packaging
Printing
Papers
Consumer
Packaging
Fiber
Energy
Chemicals
Freight
OCC
($26)
($16)
($3)
$9
Fiber
Energy
Freight
Chemicals
Outside North America
North America

20
Positives
Improved N.A. Exports
Printing Papers Results
Quarter-End Price Momentum
Further Cost Reduction
Continued Debt Reduction
Offsets
Increasing Fiber Costs
Isolated Operating Issues
Ongoing LOO Downtime
Costs
Fourth Quarter Summary

21
Input Cost Inflation
Input Costs Ahead of Price Increases
Input Cost Inflation
Input Costs Ahead of Price Increases
Previously Announced IP Price Increases
Business
Increase
per Ton
IP Capacity
(MM Tons)
N. A. Industrial Packaging
$50
10.0
N. A. Uncoated Freesheet
$40
2.6
N. A. Coated Paperboard
$40
1.8
Global Pulp
$30 -
$40
3.0
Brazil Export Cut-Size
$50
.4
European Cut-Size
€30 -
€40
.4
Russian Cut-Size
$30
.3
Sun Coated Paperboard
$25
.9
($36)
($120)
($120)
($100)
($80)
($60)
($40)
($20)
$0
4Q09
1Q10
Wood
OCC
Natural Gas
Other

22
From 4Q09 to 1H10
Cost Increases Precede Price Increases
From 4Q09 to 1H10
Cost Increases Precede Price Increases
Input Cost Inflection
Isolated Operating Issues
Input Cost Escalation
Higher Maintenance Outages
Input Cost Stabilization
Price Increase Realization
1Q
2Q
4Q

23
First Quarter Outlook
Changes from 4Q09
First Quarter Outlook
Changes from 4Q09
North America
Europe
Brazil
Russia -
Svetogorsk
Asia
Volume
Paper
Slight Increase
Slight
Decrease
Decrease
Decrease
Flat
Packaging
Slight Increase
Seasonal
Decrease
Stable
Pricing
Paper
Ramping Up
Flat
Slight
Increase
Flat
Slight
Increase
Packaging
Ramping Up
Margin
Squeeze
Slight
Increase
Maintenance
Outages
~$25MM
Increase
Flat
Flat
Flat
Input & Freight
Costs
~$120MM
Increase
Increasing
Increasing
Increasing
Pulp
Increasing
xpedx
Seasonal
Decrease
Ilim
Decrease
Corporate
Expense
Increase

24
2010 Priorities
2010 Priorities
Regain momentum after 1Q input cost squeeze
Increase margins and ROI
Capture benefits of higher operating rates
Build on operating performance
Balanced use of cash

25
Appendix
Investor Relations Contacts
Thomas A. Cleves
901-419-7566
Emily Nix
901-419-4987
Media Contact
Kathleen Bark
901-419-4333

26
4Q09 Financial Snapshot
4Q09 Financial Snapshot
4Q08
3Q09
4Q09
Sales ($B)
$6.5
$5.9
$6.0
EBITDA ($MM)
$671
$780
$669
Free
Cash
Flow
1
($MM)
$443
$605
$530
Debt ($B)
$12.1
$9.6
$9.0
Cash Balance ($B)
$1.1
$1.7
$1.9
•
Earnings from continuing operations before special items
•
1
Cash provided by continuing operations less capital expenditures, excluding cash received from alternative fuel credits of 
   $0.5 B in 3Q09, $0.4 B in 4Q09 and cash received under European accounts receivable securitization of $0.2 B in 3Q09

27
$ Million
2008
2009
2010
Estimate
Capital Spending
$1,002
$534
$800
Depreciation &
Amortization
$1,347
$1,472
$1,450
1
Net Interest Expense
$492
$669
$620 -
$640
Corporate Items
2
$103
$181
$200 -
$225
Effective Tax Rate
2
31.5%
30%
30-32%
1
Estimated depreciation may be impacted by lack-of-order downtime
2
Before special items and excluding Ilim
Key Financial Statistics
Key Financial Statistics

28
Free Cash Flow
2009
Free Cash Flow
2009
$ Million
2007
2008
1Q09
2Q09
3Q09
4Q09
2009
Cash from Operations
$1,887
$2,669
$649
$707
$713*
$697
$2,766*
Cash Received from
Alternative Fuel
Mixture Tax Credits
$0
$0
$145
$688
$463
$388
$1,684
Cash Provided by
Continuing Operations
$1,887
$2,669
$794
$1,395
$1,381
$1,085
$4,655
Less Capital Investment
($1,288)
($1,002)
($128)
($131)
($108)
($167)
($534)
Free Cash Flow
$599
$1,667
$666
$1,264
$1,273
$918
$4,121
Free Cash Flow
Excluding AFMTC &
European AR Cash
$599
$1,667
$521
$576
$605
$530
$2,232
* Excludes $205 MM cash received under European accounts receivable securitization in 3Q09

29
Monetization & Other: Intend to rollover or refinance timber monetization debt, Sun JV debt and other foreign subsidiary debt
Debt Maturity Profile
Maturities as of Year-End
Debt Maturity Profile
Maturities as of Year-End

30
Cash & Committed Facilities
$4.4 Billion
Cash & Committed Facilities
$4.4 Billion
Maturity
Facility
Cost
Quarter-End Cash
-
$1.9 B
-
$1 B
1
Accounts
Receivables Program
JAN 2011
Zero Drawn
CP Rate
2
+ 100 bps
$1.5 B Corporate Revolver 
NOV 2012
Zero Drawn
LIBOR + 300 bps
Total Cash & Committed Facilities
$4.4 B
-
Cost includes commitment fees
1
$816 MM available at quarter-end based on eligible receivable balances
2
Conduit’s rate

31
Debt Covenants & Credit Ratings
Debt Covenants & Credit Ratings
Covenant
Year-end
Actual
Maximum Debt-to-Total Capital
60%
43.3%
Minimum Consolidated Net Worth
$9 B
$11.8 B
Rating
Outlook
Standard & Poor’s
BBB
Negative
Moody’s
Baa3
Negative

32
Pension Update
Pension Update
Market value of assets
increased to $6.8 B
23.8% return in 2009
Benefits obligation
increased to $9.5 B
1
Unfunded obligation
declined from $3.2 B to
$2.8 B
1
No cash contribution
required in 2010
1
US GAAP basis
2009 Year-End Portfolio

33
Pension Plan
Pension Plan
Key Variables
2008
2009
2010E
Assumed Rate
of Return
8.5%
8.25%
8.25%
Discount Rate
6.2%
6.0%
5.8%
*
Non-cash
expense
for
U.S.
plans
only
Pension expense reflects service cost, interest cost, amortization of actuarial losses and expected return on plan assets
Average Annualized Returns
2009
23.8%
Past Five Years
5.9%
Past Ten Years
5.6%
Portfolio Asset Allocation at 12-31-09
Target
Actual
Equity
40% -
51%
49%
Bonds
30% -
40%
32%
Real Estate
7% –
13%
7%
Other
9% -
18%
12%

34
Capacity Management Summary
Permanent Capacity Reductions in 2009
Capacity Management Summary
Permanent Capacity Reductions in 2009
Mill
Products
Annual
Capacity
(Tons)
% of  IP
Global
Capacity
Closure Date
Franklin, VA
Uncoated Freesheet
600,000
1
12%
Spring 2010
Coated Paperboard
140,000
4%
December 2009
Albany, OR
Containerboard
580,000
12%
December 2009
Pineville, LA
Containerboard
390,000
Valliant, OK
Containerboard
430,000
2
Etienne, France
Containerboard
200,000
2%
November 2009
Inverurie, Scotland
Uncoated Freesheet
275,000
5%
March 2009
•
1
Does not include 150,000-ton capacity of #3 machine previously closed in November 2008
•
2
Capacity of #3 machine previously indefinitely idled in November 2008

35
N.A. Lack of Order & Maintenance Downtime
14% of Capacity in 4Q, 20% for the Year
N.A. Lack of Order & Maintenance Downtime
14% of Capacity in 4Q, 20% for the Year
Lack-of-order & maintenance downtime for North American Containerboard, Uncoated Papers, Market Pulp, & Coated    
Paperboard.  See the following slide for detail by business.
2009
LOO
downtime
excludes
capacity
from
mills
or
machines
that
have
been
permanently
shutdown
(Franklin
#3
-
32,000
tons
and
Louisiana
mill
-
120,000
tons)
as
of
December
31,
2009
107
1,013
1,253
965
653
617

36
N.A. Lack of Order & Maintenance Downtime
N.A. Lack of Order & Maintenance Downtime
Containerboard
Uncoated Papers
Market Pulp
Coated
Paperboard
LOO downtime excludes capacity from mills or machines that have been permanently shutdown (Franklin  #3 - 32,000 tons
and Louisiana mill - 120,000 tons) as of December 31, 2009

37
$ Million
4Q09
1Q10E
2009
2010E
Industrial Packaging
$26
$70
$120
$140
North America
$32
$25
$118
$125
Europe
0
0
$39
$40
Brazil
0
0
$7
$5
Printing Papers Total
$32
$25
$164
$170
Consumer Packaging
$16
$5
$41
$40
Total Impact
$74
$100
$325
$350
Dollar impact of planned maintenance outages are estimates and subject to change
Maintenance Outages Expenses
Maintenance Outages Expenses
~70% of 2010 outage expense planned for 1H10

38
Forest Products
4Q09 vs. 3Q09
Forest Products
4Q09 vs. 3Q09
4Q08
3Q09
4Q09
Sales ($ MM)
$65
$5
$25
Earnings ($ MM)
$38
$2
$18
Acres Sold
30,000
3,200
7,700
1
Price / Acre
$2,106
$1,994
$2,655
1
1
4Q09 figures exclude a 17,000-acre sale of a partnership interest at $369 per acre.
The previously announced agreement to sell 143,000 acres of timberland has expired
in accordance with its terms and will not be completed.

39
4Q09 vs. 3Q09
4Q09 vs. 4Q08
Business
Volume
Price /
Ton
Volume
Price /
Ton
N.A. Container
(4%)
($14)
(5%)
($65)
European Container
2%
(€23)
(8%)
(€81)
Industrial Packaging
Industrial Packaging

40
Average
IP
price
realization
(includes
the
impact
of
mix
across
all
grades)
4Q09 vs. 3Q09
4Q09 vs. 4Q08
Business
Volume
Price / Ton
Volume
Price / Ton
N.A. Paper
(3%)
($11)
(1%)
($82)
N.A. Pulp
(3%)
$37
(1%)
($27)
European Paper
9%
(€15)
(8%)
(€105)
Printing Papers
Printing Papers

41
Average IP price realization (includes the impact of mix across all grades)
4Q09 vs. 3Q09
4Q09 vs. 4Q08
Volume
Price/Ton
Volume
Price/Ton
U.S. Coated Paperboard
(5%)
($10)
(19%)
($3)
Revenue
Price
Revenue
Price
Converting Businesses
(4%)
NA
(10%)
NA
Consumer Packaging
Consumer Packaging

42
Special Items Pre-Tax
from Continuing Operations
Special Items Pre-Tax
from Continuing Operations
Special Items Pre-Tax ($Million)
4Q08
3Q09
4Q09
Industrial
Packaging
Alternative Fuel Mixture Credits
$221
$212
Facility & Machine Closure Costs
($8)
($7)
($670)
Integration Costs
($26)
($18)
($15)
Other
($2)
Printing
Papers
Alternative Fuel Mixture Credits
$226
$221
Facility Closure Costs
($153)
($1)
($223)
Consumer
Packaging
Alternative Fuel Mixture Credits
$78
$83
Facility Closure Costs
($67)
Reorganization
($4)
($2)
($2)
xpedx
Reorganization
($5)
Corporate
Impairments of Goodwill
($1,777)
Restructuring & Other Charges
($53)
($141)
($82)
Total Special Items Pre-Tax
($2,021)
$356
($550)

43
Special Items Net of Taxes
from Continuing Operations
Special Items Net of Taxes
from Continuing Operations
4Q09
2009
$ Million
EPS
$ Million
EPS
Earnings Before Special Items
$101
$0.24
$378
$0.88
Special Items Net of Taxes:
Alternative Fuel Mixture Credits
$469
$1,413
North American Mill Shutdowns
($525)
($525)
Machine
Shutdown
–
Valliant
PM#3
($50)
($50)
Etienne Mill Shutdown
($17)
($87)
Inverurie
Mill Shutdown
($28)
Tax Adjustments
($15)
($165)
Debt Extinguishment Costs
($35)
($113)
Overhead Reduction Initiative
($15)
($92)
Integration Costs
($10)
($54)
Other
($4)
($14)
Total Special Items Net of Taxes
($202)
($0.48)
$285
$0.67
Net Earnings
($101)
($0.24)
$663
$1.55

44
4Q09 EBITDA
before Special Items
4Q09 EBITDA
before Special Items
Operating
Profit
$ Million
D & A
$ Million
Tons
Thousand
EBITDA
per Ton
EBITDA
Margin
Industrial Packaging
North America
1
$68
$162
2,502
$92
13.1%
Europe
$17
$9
256
$102
9.9%
Printing Papers
North America
2
$70
$58
754
$170
18.4%
Western Europe
3
$0
$2
74
$27
1.2%
Eastern Europe & Russia
3
$46
$16
256
$242
30.0%
Brazil
$33
$35
311
$219
22.6%
U.S. Market Pulp
($11)
$9
292
($7)
(1.2%)
Consumer Packaging
U.S. Coated Paperboard
$22
$33
310
$177
16.5%
1
Excludes Recycling & Bag businesses; includes Saturating Kraft business
2
Includes Bleached Kraft business
3
Excludes Market Pulp

45
Operating Profits by Industry Segment
from Continuing Operations
Operating Profits by Industry Segment
from Continuing Operations
$ Million
4Q08
3Q09
4Q09
2008
2009
Industrial Packaging
$145
$214
$84
$482
$741
Printing Papers
$113
$138
$139
$734
$464
Consumer Packaging
$1
$68
$49
$47
$177
Distribution
$26
$21
$31
$103
$55
Forest Products
$38
$2
$18
$409
$25
Operating Profit
$323
$443
$321
$1,775
$1,462
Net Interest Expense
($186)
($169)
($163)
($492)
($669)
Noncontrolling Interest /
Equity Earnings Adjustment
($13)
$5
$4
($2)
$23
Corporate Items
($21)
($46)
($40)
($103)
($181)
Special Items
($2,021)
$356
($550)
($2,331)
$564
Earnings from continuing operations
before income taxes, equity earnings &
noncontrolling interest
($1,918)
$589
($428)
($1,153)
$1,199
Equity
Earnings,
net
of
taxes
-
Ilim
$0
$0
$6
$54
($50)

46
Geographic Business Segment Operating Results
from Continuing Operations
Geographic Business Segment Operating Results
from Continuing Operations
Excludes Forest Products
$ Million
Sales
4Q08
3Q09
4Q09
2008
2009
Industrial Packaging
North American
$2,125
$1,890
$1,855
$6,170
$7,585
European
$255
$240
$260
$1,170
$980
Asian
$75
$100
$95
$350
$325
Printing Papers
North American
$765
$725
$700
$3,435
$2,815
European
$350
$300
$340
$1,655
$1,280
Brazilian
$215
$275
$300
$950
$960
U.S. Market Pulp
$170
$155
$160
$750
$575
Asian
$5
$15
$25
$20
$50
Consumer Packaging
North American
$635
$565
$540
$2,505
$2,200
European
$70
$80
$85
$300
$315
Asian
$95
$145
$160
$390
$545
Distribution
$1,940
$1,665
$1,675
$7,970
$6,525

47
Geographic Business Segment Operating Results
from Continuing Operations before Special Items
Geographic Business Segment Operating Results
from Continuing Operations before Special Items
Excludes Forest Products
$ Million
Operating Profit
4Q08
3Q09
4Q09
2008
2009
Industrial Packaging
North American
$130
$201
$68
$414
$685
European
$15
$14
$17
$64
$57
Asian
$0
$0
($1)
$4
($1)
Printing Papers
North American
$73
$92
$70
$435
$307
European
$36
$28
$46
$146
$115
Brazilian
$44
$36
$33
$186
$112
U.S. Market Pulp
($39)
($18)
($11)
($33)
($71)
Asian
($1)
$0
$1
$0
$1
Consumer Packaging
North American
$16
$44
$22
$38
$87
European
$5
$17
$21
$22
$66
Asian
($20)
$7
$6
($13)
$24
Distribution
$26
$21
$31
$103
$55

48
Pre-Tax
$MM
Tax
$MM
Non-
controlling
Interest
$MM
Equity
Earnings
Net
Income
$MM
Estimated
Tax Rate
Average
Shares
1
MM
Diluted
EPS
2
Before Special Items
1Q08
$239
($75)
($5)
$16
$175
32%
423
$0.41
2Q08
$312
($100)
($7)
$30
$235
33%
423
$0.56
3Q08
$524
($170)
($3)
$5
$356
33%
423
$0.84
4Q08
$103
($24)
$12
($2)
$89
23%
421
$0.21
2008
$1,178
($369)
($3)
$49
$855
32%
421
$2.01
Special Items
1Q08
($41)
$16
$0
$0
($25)
39%
423
($0.06)
2Q08
($10)
$3
$0
$0
($7)
30%
423
($0.02)
3Q08
($259)
$52
$0
$0
($207)
20%
423
($0.49)
4Q08
($2,021)
$136
$0
$0
($1,885)
7%
421
($4.47)
2008
($2,331)
$207
$0
$0
($2,124)
9%
421
($5.03)
Earnings from Continuing Operations
1Q08
$198
($59)
($5)
$16
$150
30%
423
$0.35
2Q08
$302
($97)
($7)
$30
$228
32%
423
$0.54
3Q08
$265
($118)
($3)
$5
$149
45%
423
$0.35
4Q08
($1,918)
$112
$12
($2)
($1,796)
6%
421
($4.26)
2008
($1,153)
($162)
($3)
$49
($1,269)
(14%)
421
($3.02)
2008 Earnings from Continuing Operations
2008 Earnings from Continuing Operations
1
Assuming dilution
2
A
reconciliation
to
GAAP
EPS
is
available
at
www.internationalpaper.com under the Investors tab at Webcasts and Presentations

49
1
Assuming dilution
2
A
reconciliation
to
GAAP
EPS
is
available
at
www.internationalpaper.com under the Investors tab at Webcasts and Presentations
Pre-Tax
$MM
Tax
$MM
Non-
controlling
Interest
$MM
Equity
Earnings
Net
Income
$MM
Estimated
Tax Rate
Average
Shares
1
MM
Diluted
EPS
2
Before Special Items
1Q09
$97
($32)
($4)
($27)
$34
33%
423
$0.08
2Q09
$183
($61)
($4)
($32)
$86
33%
425
$0.20
3Q09
$233
($70)
($6)
$0
$157
30%
429
$0.37
4Q09
$122
($27)
($4)
$10
$101
22%
427
$0.24
2009
$635
($190)
($18)
($49)
$378
30%
428
$0.88
Special Items
1Q09
$421
($198)
$0
$0
$223
47%
423
$0.53
2Q09
$337
($287)
$0
$0
$50
85%
425
$0.12
3Q09
$356
($142)
$0
$0
$214
40%
429
$0.50
4Q09
($550)
$348
$0
$0
($202)
63%
427
($0.48)
2009
$564
($279)
$0
$0
$285
49%
428
$0.67
Earnings
1Q09
$518
($230)
($4)
($27)
$257
44%
423
$0.61
2Q09
$520
($348)
($4)
($32)
$136
67%
425
$0.32
3Q09
$589
($212)
($6)
$0
$371
36%
429
$0.87
4Q09
($428)
$321
($4)
$10
($101)
75%
427
($0.24)
2009
$1,199
($469)
($18)
($49)
$663
39%
428
$1.55
2009 Earnings from Continuing Operations
2009 Earnings from Continuing Operations

50
Earnings from continuing operations before special items
4Q09 vs. 4Q08 EPS
4Q09 vs. 4Q08 EPS
Forest
Products
Earnings

51
Industrial Packaging Earnings
4Q09 vs. 4Q08
Industrial Packaging Earnings
4Q09 vs. 4Q08
Earnings before special items

52
Printing Papers Earnings
4Q09 vs. 4Q08 
Printing Papers Earnings
4Q09 vs. 4Q08 
Earnings before special items

53
Consumer Packaging Earnings
4Q09 vs. 4Q08
Consumer Packaging Earnings
4Q09 vs. 4Q08
Earnings before special items

54
Total Cash Cost Components
2009
Total Cash Cost Components
2009
North American Mills Only

55
Global Input & Freight Costs by Input
$212 MM, or $0.39/Share Favorable vs. 4Q08
Global Input & Freight Costs by Input
$212 MM, or $0.39/Share Favorable vs. 4Q08
Input costs for continuing businesses
103
37
37
35
($5)
$10
$25
$40
$55
$70
$85
$100
Chemicals
Energy
Fiber
Freight
North America
Outside North America

56
NYMEX Natural Gas closing prices
Index: Jan 2005 Natural Gas Costs = 100
Natural Gas Costs
23% Increase vs. 3Q09 Average Cost
Natural Gas Costs
23% Increase vs. 3Q09 Average Cost
2005
2006
2007
2008
2009

57
U.S. Mill Wood Costs
5% Increase vs. 3Q09 Average Cost
U.S. Mill Wood Costs
5% Increase vs. 3Q09 Average Cost
Index: Jan 2005 Wood Costs = 100
Delivered cost to U.S. facilities
2005
2006
2007
2009
2008

58
Index: Jan 2005 OCC Costs = 100
U.S. Old Corrugated Containers Costs
1% Increase vs. 3Q09 Average Cost
U.S. Old Corrugated Containers Costs
1% Increase vs. 3Q09 Average Cost
2005-2007 represents WY PKG delivered costs; 2008-2009 represents delivered costs to the integrated system
2005
2006
2007
2008
2009

59
Index: Jan 2006 Fuel Oil Costs = 100
U.S. Fuel Oil
9% Increase vs. 3Q09 Average Cost
U.S. Fuel Oil
9% Increase vs. 3Q09 Average Cost
WTI Crude prices
2006
2007
2008
2009

60
U.S. Chemical Composite Index
5% Decrease vs. 3Q09 Average Cost
U.S. Chemical Composite Index
5% Decrease vs. 3Q09 Average Cost
Delivered cost to U.S. facilities; includes Caustic Soda, Sodium
Chlorate, Starch and Sulfuric Acid
2005 -
2008 excludes WY PKG
Index: 1Q05 Chemical Composite= 100
2005
2006
2007
2009
2008

61
2010 Global Consumption
Annual Purchase Estimates for Key Inputs
2010 Global Consumption
Annual Purchase Estimates for Key Inputs
Does not include Asian or Ilim consumption
Estimates are based on normal operations and may be impacted by downtime
Commodity
U. S.
Non –
U. S.
Energy
Natural Gas (MM BTUs)
42,000,000
13,000,000
Fuel Oil (Barrels)
1,500,000
500,000
Coal (Tons)
860,000
260,000
Fiber
Wood (Tons)
44,200,000
8,800,000
Old Corrugated Containers (Tons)
3,000,000
310,000
Chemicals
Caustic Soda (Tons)
250,000
70,000
Starch (Tons)
394,000
96,000
Sodium Chlorate (Tons)
180,000
40,000
LD Polyethylene (Tons)
39,000
-
Latex (Tons)
22,000
4,000