EX-99.2 3 dex992.htm SLIDES OF INTERNATIONAL PAPER COMPANY Slides of International Paper Company
Fourth Quarter
and Full Year
2010 Review
February 3, 2011
Fourth Quarter
and Full Year
2010 Review
February 3, 2011
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
existing
and
new
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
Fourth Quarter 2010
Solid Finish in Transition Year
Fourth Quarter 2010
Solid Finish in Transition Year
Strong Earnings
Strong Free Cash Flow
Incremental price realization
offset seasonal volume declines
More Maintenance Outages
Increased Input Costs
Strong Ilim JV Contribution
Earnings from continuing operations
before special items

5
4Q10 Operating Business EPS
Strongest 4Q in more than a decade
4Q10 Operating Business EPS
Strongest 4Q in more than a decade
Earnings from continuing operations before special items as reported at the time

6
Strong Full-Year 2010 Results
Strong Full-Year 2010 Results
$3.3 B EBITDA
$1.7 B
Free Cash Flow
1
110 BPS EBITDA Margin Expansion
250 BPS ROI Improvement
Significant Debt Reduction Progress
Pension Funding Gap down $1.3 B
Net Debt down $550 MM
Annual Dividend Rate Increase
From $0.10 to $0.75
Earnings from continuing operations before special items
1
See slide #34 for a reconciliation of free cash flows

7
Strong Full-Year 2010 Results
Strong Full-Year 2010 Results
1
See slide #34 for a reconciliation of free cash flows
2
Earnings from continuing operations before special items
$ Billion
2009
2010
Sales
$23.4
$25.2
Free Cash Flow
1
$2.2
$1.7
Year-End Debt
$9.0
$8.7
Cash Balance
$1.9
$2.1
EBITDA
2

8
2010 Revenue
$1.8 Billion Increase
2010 Revenue
$1.8 Billion Increase
1
Reflects 100% of Ilim’s
revenues
2010 vs. 2009 Revenue Growth
U.S.
6%
Non-U.S.
13%
Ilim
Joint Venture
33%
Non-U.S., Inc. Ilim
1
18%

9
Earnings before special items
2010 vs. 2009 EPS
2010 vs. 2009 EPS
Earnings from continuing operations before special items

10
Step-Change
Improvement
in
Free
Cash
Flow
Step-Change
Improvement
in
Free
Cash
Flow
2000 –
2004 Average
$0.9 Billion
2008 –
2010 Average
$1.9 Billion
Transformation
Free cash flow, based on data in the 10-K for each year at the time of filing.
See slide #34 for a reconciliation of free cash flows

11
Transformation Enabling Improved Returns
Recovering from Global Recession
Transformation Enabling Improved Returns
Recovering from Global Recession
Cost of Capital
Return on Investment

12
4Q10 Financial Snapshot
Strong EBITDA & Free Cash Flow
4Q10 Financial Snapshot
Strong EBITDA & Free Cash Flow
4Q09
3Q10
4Q10
Sales ($B)
$6.0
$6.7
$6.5
EBITDA
1
($MM)
$669
$1,061
$872
EBITDA Margin
11%
16%
13%
Free Cash Flow
2
($MM)
$530
$753
$601
Debt ($B)
$9.0
$8.7
$8.7
Cash Balance ($B)
$1.9
$1.4
$2.1
1
Earnings from continuing operations before special items
2
4Q09 excludes cash received from alternative fuel credits of $388 MM; See slide #34 for a reconciliation of 3Q10 and 4Q10
free cash flows

13
Earnings before special items
4Q10 vs. 3Q10 EPS
4Q10 vs. 3Q10 EPS
Earnings before special items

14
Global Input Costs vs. 3Q10
$22 MM Unfavorable, or $0.03/Share
Global Input Costs vs. 3Q10
$22 MM Unfavorable, or $0.03/Share
By Business
By Input Type

15
Industrial Packaging Earnings
4Q10 vs. 3Q10
Industrial Packaging Earnings
4Q10 vs. 3Q10
Earnings before special items

16
N.A. Industrial Packaging Relative EBITDA Margins
N.A. Industrial Packaging Relative EBITDA Margins
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
Excludes revenue from trade volumes
4Q10
Sales
$2.0 B
$0.6 B
$1.6 B

17
N.A. Industrial Packaging Relative EBIT
N.A. Industrial Packaging Relative EBIT
Operating profit before special items.
Operating Profit up 13%
Operating Profit up 28%

18
Printing Papers Earnings
4Q10 vs. 3Q10
Printing Papers Earnings
4Q10 vs. 3Q10
Earnings before special items

19
Printing Papers EBITDA Margins
Strong Recovery in 2010 in all Regions
Printing Papers EBITDA Margins
Strong Recovery in 2010 in all Regions
2009
Margin
19%
15%
(6%)
24%

20
Consumer Packaging Earnings
4Q10 vs. 3Q10
Consumer Packaging Earnings
4Q10 vs. 3Q10
Earnings before special items

21
U.S. Coated Paperboard EBITDA Margins
Now similar to UFS & Containerboard Margins
U.S. Coated Paperboard EBITDA Margins
Now similar to UFS & Containerboard Margins

22
$ Million
4Q09
3Q10
4Q10
Sales
$1,675
$1,755
$1,770
Earnings
$31
$22
$9
xpedx
4Q10 vs. 3Q10
xpedx
4Q10 vs. 3Q10
2010 EBIT increased more than 40% vs. 2009
Average daily sales rates increased in all segments
4Q10 results include initial investments to improve results, including
charges to exit specific retail and printing equipment segments
Plans under development to significantly improve operating earnings
Daily Sales Change
vs. 3Q10
Printing
2.8%
Packaging
5.8%
Facility Supplies
6.0%
Earnings before special items

23
$ Million
4Q09
3Q10
4Q10
Sales (100%)
$350
$465
$490
Earnings (IP Share)
$6
$22
$31
1
1
Ilim
recorded an asset impairment charge (IP share was $12 million)
Ilim’s
results are reported on a one-quarter lag.
IP’s shares of Ilim’s
reported earnings for 4Q09 & 4Q10 include an after-tax foreign exchange gain of $2MM and $10MM,
respectively.  3Q10 earnings include an after-tax foreign exchange loss of $6MM.
Ilim
Joint Venture
4Q10
vs.
3Q10
Ilim
Joint Venture
4Q10
vs.
3Q10
4Q10 vs. 3Q10
4Q10 vs. 4Q09
Business
Volume
Price /
Ton
Volume
Price /
Ton
Pulp
4%
($46)
7%
$217
Containerboard
7%
$61
(2%)
$185

24
Ilim’s results are reported on a one-quarter lag
Ilim Joint Venture
Three-Year Progress
Ilim Joint Venture
Three-Year Progress
2010
EPS accretive
Record earnings
2007 -
2010
$0.15 per share of equity earnings
$152 million in cash dividends
Current
Developed & implementing strategic
capital expansion program

25
IP Europe, Middle East & Africa
2010: 10% of IP Sales & 15% of IP EBITDA
IP Europe, Middle East & Africa
2010: 10% of IP Sales & 15% of IP EBITDA
Record earnings in 2010
Strong earnings in paper &
packaging segments
Strong returns in both
Western & Eastern Europe
Return on Investment
2010
European Papers, excl. Russia
18%
Russian Papers
15%
EMEA Container
11%
Total
Capital
Employed
(Billion)
$1.6

26
Debt Reduction Progress
Target: Adjusted Debt < 3X EBITDA
Debt Reduction Progress
Target: Adjusted Debt < 3X EBITDA
Adjusted Debt reflects gross balance sheet debt plus pension gap
1
Pension gap as of 12/31/08
2
Excludes debt repayments of $2.75 B from the proceeds of bonds issuances of $2.75 B
3
Pension gap as of 12/31/10

27
Capital Spending
2011 Estimate: $1.2 -
$1.3 Billion
Capital Spending
2011 Estimate: $1.2 -
$1.3 Billion
$ Million
Normalized Target 60-70% of Depreciation
% of
Depreciation
Reflects continuing operations
Cycle Capex
Target: ~$1B

28
Energy Efficiency Progress
Record-Low Purchased Energy Consumption
Energy Efficiency Progress
Record-Low Purchased Energy Consumption
U.S. Mill System 2010 Fossil Fuel
Consumption per Ton
8% less than 2009 ($75 MM)
45% less than 2000 ($360 MM)
Set new low-record for purchased
energy usage
5 mills set new records
2010 Most-Improved Mills
Saillat –
18% lower
Svetogorsk –
16% lower

29
Fourth-Quarter Summary
Fourth-Quarter Summary
Started with strong 3Q momentum
Seasonal volume decline offset by price realization
More maintenance outages
Input cost increases
Strong Ilim JV contribution
Strong 4Q Earnings & Free Cash Flow

30
First Quarter Outlook
Changes from 4Q10
First Quarter Outlook
Changes from 4Q10
North America
Europe
Brazil
Asia
Volume
Paper
Stable
Stable
Seasonal
Decrease
Packaging
Stable
Stable
Stable
Pricing
Paper
Stable
Stable
Stable
Packaging
Stable
Stable
Stable
Maintenance Outages
~$12MM
Increase
~$14MM
Decrease
Stable
Input & Freight Costs
Higher Fiber
& Chemicals
Slight Increase
Stable
Stable
xpedx
Increase
Ilim
Increase

31
1Q & 2011 Outlook
Momentum Continues
1Q & 2011 Outlook
Momentum Continues
1Q11 Outlook
Stable volumes
Stable prices (with some 
pressure on exports)
Increasing fiber & chemicals
costs
Strong Ilim
JV contribution
Strong 1Q EPS & FCF
2011 Outlook
Global economies continue
to recover
Demand growth in most IP
business segments
Inventories in good shape
Robust margin-improvement
initiatives
OCC costs to remain high
Strong EPS, FCF & ROI

32
Appendix
Investor Relations Contacts
Thomas A. Cleves
901-419-7566
Emily Nix
901-419-4987
Media Contact
Tom Ryan
901-419-4333

33
$ Million
(Except as noted)
2009
2010
2011
Estimate
Capital Spending
$534
$775
$1.2 -
$1.3 B
Depreciation &
Amortization
$1,472
$1,456
$1.4 B
Net Interest Expense
$669
$608
$575 -
$600
Corporate Items
$181
$226
$175 -
$200
Effective Tax Rate
30%
30%
32 -
34%
Before special items and excluding Ilim
Key Financial Statistics
Key Financial Statistics

34
Free Cash Flow
2010
Free Cash Flow
2010
$ Million
2008
2009
1Q10
2Q10
3Q10
4Q10
2010
Cash from Operations
$2,669
$2,766
1
$159
$509
$937
2
$919
3
$2,524
2,3
Cash Received from
AFMTC & CBTC
$0
$1,684
$0
$132
$0
$17
$149
Cash Provided by
Continuing Operations
$2,669
$4,655
$159
$641
$937
$936
$2,673
Less Capital Investment
($1,002)
($534)
($120)
($153)
($184)
($318)
($775)
Free Cash Flow
$1,667
$4,121
$39
$488
$753
$618
$1,898
Free Cash Flow
Excluding AFMTC, CBTC
& European AR Cash
$1,667
$2,232
$39
$356
$753
$601
$1,749
1
Includes $205 MM cash received under European accounts receivable securitization
2
Excludes $1,150 MM cash paid for voluntary pension contributions
3
Excludes
a
tax
receivable
of
$108
MM
collected
related
to
pension
contributions
IP received $1,684 MM cash from alternative fuel mixture tax credits (AFMTC) in 2009; $132 MM in 2Q10
IP received $17 MM cash from cellulosic biofuel
tax credits (CBTC) in 4Q10

35
Monetization & Other: Timber Monetization debt and other debt intended to be rolled over or refinanced,
(Sun joint venture debt and other foreign subsidiary debt)
Debt Maturity Profile
Maturities as of Year-End
Debt Maturity Profile
Maturities as of Year-End

36
Cash & Committed Facilities
$4.6 Billion
Cash & Committed Facilities
$4.6 Billion
Maturity
Facility
Cost
Quarter-End Cash
-
$2.1 B
-
$1 B
1
Accounts
Receivables Program
JAN 2012
Zero Drawn
CP Rate
2
+ 75 bps
$1.5 B Corporate Revolver 
NOV 2012
Zero Drawn
LIBOR + 300 bps
Total Cash & Committed Facilities
$4.6 B
-
Cost includes commitment fees
1
$877 MM available at quarter-end based on eligible receivable balances. Program renewed in January, 2011.
2
Conduit’s rate

37
Debt Covenants & Credit Ratings
Debt Covenants & Credit Ratings
Covenant
12/31/10
Actual
Maximum Debt-to-Total Capital
60%
41.2%
Minimum Consolidated Net Worth
$9 B
$12.4 B
Rating
Outlook
Standard & Poor’s
BBB
Stable
Moody’s
Baa3
Stable

38
Pension Update
Pension Update
Market value of assets
increased to $8.3 B
15.1% return on plan assets
in 2010
Pension benefits obligation
increased to $9.8 B
1
Unfunded obligation declined
from $2.8 B to $1.5 B
1
No cash contribution required
in 2011
1
US GAAP basis
Year-End Funded Status

39
Pension Plan
Pension Plan
Key Variables
2009
2010
2011E
Assumed Rate
of Return
8.25%
8.25%
8.25%
Discount Rate
6.0%
5.8%
5.6%
* 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
2010
15.1%
Past Five Years
6.5%
Past Ten Years
7.2%
Portfolio Asset Allocation at 12-31-10
Target
Actual
Equity
40% -
51%
49%
Bonds
30% -
40%
31%
Real Estate
7% –
13%
8%
Other
9% -
18%
12%

40
$ Million
4Q10
1Q11E
2010
2011E
Industrial Packaging
$22
$41
$136
$149
North America
$29
$39
$131
$138
Europe
14
0
$38
$35
Brazil
0
0
$13
$15
Printing Papers Total
$43
$39
$182
$188
Consumer Packaging
$17
$0
$42
$44
Total Impact
$82
$80
$360
$381
Dollar impact of planned maintenance outages are estimates and subject to change
Maintenance Outages Expenses
Maintenance Outages Expenses
~60% of 2011 outage expense planned for 1H11

41
4Q10 vs. 3Q10
4Q10 vs. 4Q09
Business
Volume
Price /
Ton
Volume
Price /
Ton
N.A. Container
(5%)
$4
3%
$89
European Container*
13%
€7
7%
€76
Industrial Packaging
Industrial Packaging
* European Container volumes reflect box shipments only, including the shipments by the non-consolidated joint venture in
Turkey

42
Average
IP
price
realization
(includes
the
impact
of
mix
across
all
grades)
4Q10 vs. 3Q10
4Q10 vs. 4Q09
Business
Volume
Price / Ton
Volume
Price / Ton
N.A. Paper
(6%)
$7
(12%)
$91
N.A. Pulp
(10%)
$3
(14%)
$211
European Paper
(2%)
€0
(7%)
€68
Printing Papers
Printing Papers

43
Average IP price realization (includes the impact of mix across all grades)
4Q10 vs. 3Q10
4Q10 vs. 4Q09
Volume
Price/Ton
Volume
Price/Ton
U.S. Coated Paperboard
(7%)
$14
9%
$77
Revenue
Price
Revenue
Price
Converting Businesses
4%
NA
7%
NA
Consumer Packaging
Consumer Packaging

44
Cellulosic Biofuel
Tax Credit
4Q10
Cellulosic Biofuel
Tax Credit
4Q10
$40 million after-tax credit
1
$17
million cash benefit
IP cannot quantify the value of additional
CBTC because it depends on future taxable
earnings, but it could be significant
1
Reflects the after-tax value of 65 million gallons of black liquor processed in 2009 that was not submitted for alternative fuel mixture tax credits

45
Special Items Pre-Tax
from Continuing Operations
Special Items Pre-Tax
from Continuing Operations
Special Items Pre-Tax ($Million)
4Q09
3Q10
4Q10
Industrial
Packaging
Alternative Fuel Mixture Credits
$212
Facility & Machine Closure Costs
($670)
($10)
Integration Costs
($15)
Other
($2)
($3)
Printing
Papers
Alternative Fuel Mixture Credits
$221
Facility Closure Costs
($223)
Other
($2)
Consumer
Packaging
Alternative Fuel Mixture Credits
$83
Facility Closure Costs
($67)
Reorganization
($2)
($4)
xpedx
Reorganization
($5)
Corporate
Net Gain on Sale of Business
$25
Restructuring & Other Charges
($82)
($36)
Total Special Items Pre-Tax
($550)
$0
($30)

46
Special Items Net of Taxes
from Continuing Operations
Special Items Net of Taxes
from Continuing Operations
4Q10
2010
$ Million
EPS
$ Million
EPS
Earnings Before Special Items
$296
$0.68
$890
$2.05
Special Items Net of Taxes:
Mill & Machine Shutdowns
$1
($196)
Tax Adjustments
($46)
Debt Extinguishment Costs
($8)
($21)
Environmental Reserve
($11)
($11)
Box Plant Closures
($9)
($9)
Cellulosic Biofuel Tax Credit
$40
$40
Reorganization
($2)
($4)
Overhead Reduction Initiative
($3)
($4)
Other
($3)
($10)
Net Gain on Sale of Business
$15
$15
Total Special Items Net of Taxes
$20
$0.05
($246)
($0.57)
Net Earnings
$316
$0.73
$644
$1.48

47
4Q10 EBITDA
4Q10 EBITDA
Operating
Profit
$ Million
D & A
$ Million
Tons
Thousand
EBITDA
per Ton
EBITDA
Margin
Industrial Packaging
North America
1
$259
$128
2,463
$157
19.5%
Europe
$16
$10
272
$96
9.4%
Printing Papers
North America
2
$92
$49
663
$214
21.0%
Eastern Europe & Russia
3
$37
$21
306
$190
19.3%
Brazil
$63
$36
289
$343
31.6%
U.S. Market Pulp
$43
$14
250
$228
30.0%
Consumer Packaging
U.S. Coated Paperboard
$36
$36
341
$211
18.2%
1
Excludes Recycling & Bag businesses; includes Saturating Kraft business
2
Includes Bleached Kraft business
3
Excludes Market Pulp

48
Operating Profits by Industry Segment
from Continuing Operations
Operating Profits by Industry Segment
from Continuing Operations
$ Million
4Q09
3Q10
4Q10
2009
2010
Industrial Packaging
$84
$332
$274
$741
$845
Printing Papers
$139
$278
$236
$464
$798
Consumer Packaging
$49
$71
$64
$177
$215
Distribution
$31
$22
$9
$55
$78
Forest Products
$18
$49
($3)
$25
$94
Operating Profit
$321
$752
$580
$1,462
$2,030
Net Interest Expense
($163)
($152)
($150)
($669)
($608)
Noncontrolling Interest /
Equity Earnings Adjustment
$4
$5
($5)
$23
$15
Corporate Items
($40)
($58)
($63)
($181)
($226)
Special Items
($550)
$0
($30)
$564
($389)
Earnings from continuing operations
before income taxes, equity earnings &
noncontrolling interest
($428)
$547
$332
$1,199
$822
Equity Earnings, net of taxes -
Ilim
$6
$22
$31
($50)
$55

49
Geographic Business Segment Operating Results
Geographic Business Segment Operating Results
Excludes Forest Products
$ Million
Sales
4Q09
3Q10
4Q10
2009
2010
Industrial Packaging
North American
$1,855
$2,210
$2,135
$7,585
$8,355
European
$260
$235
$275
$980
$990
Asian
$95
$165
$160
$325
$495
Printing Papers
North American
$700
$715
$675
$2,815
$2,750
European
$340
$325
$345
$1,280
$1,305
Brazilian
$300
$275
$315
$960
$1,090
U.S. Market Pulp
$160
$210
$190
$575
$715
Asian
$25
$25
$15
$50
$80
Consumer Packaging
North American
$540
$615
$605
$2,200
$2,350
European
$85
$85
$95
$315
$430
Asian (Sun JV)
$160
$170
$180
$545
$620
Distribution
$1,675
$1,755
$1,770
$6,525
$6,730

50
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
4Q09
3Q10
4Q10
2009
2010
Industrial Packaging
North American
$65
$320
$261
$682
$776
European
$17
$14
$16
$57
$73
Asian
$2
($2)
($3)
$2
($4)
Printing Papers
North American
$70
$125
$92
$307
$333
European
$46
$58
$38
$115
$199
Brazilian
$33
$46
$63
$112
$159
U.S. Market Pulp
($11)
$49
$43
($71)
$107
Asian
$1
$0
$0
$1
$0
Consumer Packaging
North American
$22
$51
$38
$87
$105
European
$21
$17
$20
$66
$76
Asian (Sun JV)
$6
$3
$6
$24
$34
Distribution
$31
$22
$9
$55
$78

51
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

52
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
1Q10
$40
($13)
($9)
($2)
$16
32%
429
$0.04
2Q10
$262
($81)
($7)
$7
$181
31%
433
$0.42
3Q10
$547
($170)
($2)
$22
$397
31%
434
$0.91
4Q10
$362
($100)
($3)
$37
$296
28%
435
$0.68
2010
$1,211
($364)
($21)
$64
$890
30%
434
$2.05
Special Items
1Q10
($215)
$37
$0
$0
($178)
17%
429
($0.42)
2Q10
($144)
$56
$0
$0
($88)
39%
433
($0.21)
3Q10
$0
$0
$0
$0
$0
0%
434
$0
4Q10
($30)
$50
$0
$0
$20
167%
435
$0.05
2010
($389)
$143
$0
$0
($246)
37%
434
($0.57)
Earnings
1Q10
($175)
$24
($9)
($2)
($162)
14%
429
($0.38)
2Q10
$118
($25)
($7)
$7
$93
21%
433
$0.21
3Q10
$547
($170)
($2)
$22
$397
31%
434
$0.91
4Q10
$332
($50)
($3)
$37
$316
15%
435
$0.73
2010
$822
($221)
($21)
$64
$644
27%
434
$1.48
2010 Earnings from Continuing Operations
2010 Earnings from Continuing Operations

53
Earnings before special items
4Q10 vs. 4Q09 EPS
4Q10 vs. 4Q09 EPS
Earnings from continuing operations before special items

54
Industrial Packaging Earnings
4Q10 vs. 4Q09
Industrial Packaging Earnings
4Q10 vs. 4Q09
Earnings before special items

55
Printing Papers Earnings
4Q10 vs. 4Q09
Printing Papers Earnings
4Q10 vs. 4Q09
Earnings before special items

56
$ Million
4Q09
3Q10
4Q10
Sales
$300
$275
$315
Earnings
$33
$46
$63
EBITDA Margin
23%
29%
32%
IP Brazil results are reported in the Printing Papers segment
IP Brazil
IP Brazil
4Q10 vs. 3Q10
4Q10 vs. 4Q09
Business
Volume
Price /
Ton
Volume
Price /
Ton
Uncoated Freesheet
10%
($7)
(7%)
$93
Domestic
13%
($23)
5%
$7
Export
8%
$6
(15%)
$167

57
Consumer Packaging Earnings
4Q10 vs. 4Q09
Consumer Packaging Earnings
4Q10 vs. 4Q09
Earnings before special items

58
2010 Total North American Mills
Cash Cost Components
2010 Total North American Mills
Cash Cost Components

59
Global Input & Freight Costs vs. 2009
$643 MM Unfavorable, or $1.05/Share
Global Input & Freight Costs vs. 2009
$643 MM Unfavorable, or $1.05/Share
Input costs for continuing businesses

60
Global Input & Freight Costs vs. 4Q09
$168 MM Unfavorable, or $0.31/Share
Global Input & Freight Costs vs. 4Q09
$168 MM Unfavorable, or $0.31/Share
Input costs for continuing businesses

61
U.S. Mill Wood Delivered Cost Trends
2% Decrease vs. 3Q10 Average Cost
U.S. Mill Wood Delivered Cost Trends
2% Decrease vs. 3Q10 Average Cost

62
U.S. OCC Delivered Cost Trends
17% Increase vs. 3Q10 Average Cost
U.S. OCC Delivered Cost Trends
17% Increase vs. 3Q10 Average Cost
2005-2007 represents WY PKG delivered costs; 2008-2010 represents delivered costs to the integrated system

63
NYMEX Natural Gas closing prices
Natural Gas Costs
13% Decrease vs. 3Q10 Average Cost
Natural Gas Costs
13% Decrease vs. 3Q10 Average Cost

64
U.S. Fuel Oil
7% Increase vs. 3Q10 Average Cost
U.S. Fuel Oil
7% Increase vs. 3Q10 Average Cost
WTI Crude prices

65
U.S. Chemical Composite Index
7% Increase vs. 3Q10 Average Cost
U.S. Chemical Composite Index
7% Increase vs. 3Q10 Average Cost
Delivered cost to U.S. facilities; includes Caustic Soda, Sodium
Chlorate, Starch and Sulfuric Acid
2005 -
2008 excludes WY PKG

66
2011 Global Consumption
Annual Purchase Estimates for Key Inputs
2011 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
-
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