International Paper : Investor Day 2025 - Presentation
IP
Welcome and Opening Remarks
Forward-looking Statements
Certain statements in these presentations 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," "intend," "look," "may," "will," "remain," "target," attractive," "upside," "confident," "commit," "positioned," 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, opportunities and future prospects, and the anticipated benefits, execution and consummation of corporate transactions or contemplated acquisitions, including our recently completed business combination with DS Smith Plc, subsequently re-registered as DS Smith Limited ("DS Smith"), which closed on January 31, 2025. 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 associated with, acquisitions, joint ventures, divestitures, spinoffs, capital investments and other corporate transactions, including, but not limited to, our business combination with DS Smith; (ii) our ability to integrate and implement our plans, forecasts, and other expectations with respect to the combined company, including in light of our increased scale and global presence; (iii) 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; (iv) 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 ("GHG") and other environmental, social and governance matters, including our ability to meet such targets and goals; (v) loss contingencies and pending, threatened or future litigation, including with respect to environmental related matters; (vi) the level of our indebtedness, risks associated with our variable rate debt, and changes in interest rates (including the impact of current elevated interest rate levels); (vii) the impact of global and domestic economic conditions and industry conditions, including with respect to current challenging macroeconomic conditions, recent 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; (viii) 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), 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 recently completed business combination with DS Smith, trade policies (such as protectionist measures and increased tariffs and retaliatory tariffs) and 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; (ix) the amount of our future pension funding obligations, and pension and healthcare costs; (x) the costs of compliance, or the failure to comply with, existing, evolving or new environmental (including with respect to climate change and GHG 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); (xi) 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; (xii) our ability to realize expected benefits and cost savings associated with restructuring initiatives; (xiii) cybersecurity and information technology risks, including as a result of security breaches and cybersecurity incidents; (xiv) our exposure to claims under our agreements with Sylvamo Corporation; (xv) the qualification of such spin-off as a tax-free transaction for U.S. federal income tax purposes; (xvi) risks associated with our review of strategic options for our global cellulose fibers business; (xvii) our ability to attract and retain qualified personnel and maintain good employee or labor relations; (xviii) our ability to maintain effective internal control over financial reporting; and (xix) 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 athttps://www.internationalpaper.com/investors/financial-reports/quarterly-results
Discontinued Operations
As previously announced, the Company sold its interest in the Ilim joint venture in Russia on September 18, 2023. Current and historical results have been adjusted to reflect Ilim as a discontinued operation. All financial information and statistical measures regarding our prior 50/50 ownership in Ilim, other than historical International Paper Equity Earnings and dividends received by International Paper, have been prepared by the management of Ilim.
Use of Materials
The images, graphics, charts, brands, and other content and information contained in this document are protected by the copyright and trademark laws of the United States and other jurisdictions (the "Content") . International Paper grants a limited, non-exclusive, revocable license to use individual elements of Content for financial analysis, reporting and commentary and for incorporation into educational projects and documents for educators and students without further written permission. Such licenses granted here may be withdrawn at the sole discretion of International Paper for any reason and do not otherwise constitute a waiver of International Paper's legal rights for infringements.
9:00 am
Today's Agenda
Welcome and Opening Remarks
José María Rodríguez Meis | VP, Investor Relations
Company Vision and Strategic Direction
Transforming into a Differentiated and Sustainable Global Packaging Company
Andy Silvernail | Chairman & CEO
North American Packaging Solutions Overview
Taking Action Designed to Accelerate Our Path to Sustainable Profitable Growth
Tom Hamic | EVP & President, North American Packaging Solutions
NORTH AMERICAN PACKAGING SOLUTIONS PANEL DISCUSSION
Moderator: Tom Hamic | EVP & President, North American Packaging Solutions
Panelist: Murry Franklin | Region General Manager, Upper Midwest
Panelist: Ram Kumar | Complex General Manager, Atlanta Region
10:15 am BREAK
1 Role effective April 1, 2025; Lance Loeffler will join International Paper as the CFO on April 1.
11:15 am Q&A SESSION
Andy Silvernail | Chairman & CEO
EMEA Packaging Overview and DS Smith Update
Capturing Opportunity to Create a Winning Position Tim Nicholls | CFO & EVP, International Paper; President, DS Smith - An International Paper Company1
DS SMITH (EMEA) PANEL DISCUSSION
Moderator: Tim Nicholls | CFO; EVP & President, DS Smith - An International Paper Company1 Panelist: Stefano Rossi | Head of Packaging, EMEA Panelist: Marc Chiron | Sales, Marketing, and Innovation Director - Packaging EMEA
Executing a Focused Plan to Step Up Profitability for Sustainable Growth
Andy Silvernail | Chairman & CEO
Closing Remarks
International Paper Video
Company Vision and Strategic Direction Key Messages
Transforming IP Through Strategic Focus and a Culture of Accountability Rooted in Our Mission and Values
MISSION
Together with our customers, we make the world safer and more productive, one sustainable packaging solution at a time.
We set high expectations and deliver outstanding results for each other, our customers, and our shareholders.
VALUES
SAFETY
Above all, we care about people. We look out for each other to ensure everyone is physically and emotionally safe.
ETHICS
We act honestly and operate with integrity and respect. We promote a culture of transparency and accountability.
EXCELLENCE
A Great Place to Work Driving Customer Excellence and Profitable Growth
Sustainability is Woven Throughout Our Business
OUR SUSTAINABILITY JOURNEY
Building on Where We Are Today to be Stronger Together Well into the Future
▪ Sustainability is core to success at both International Paper and DS Smith
▪ Embarking on a new chapter as a combined company in 2025 focused on:
- Analyzing and consolidating sustainability data and roadmaps
- Developing new framework reflecting current and future identity
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Creating Long-term Value by Further Integrating Sustainability into Our Strategy
Acting as a diligent steward of our forests, responsible custodian of our environment, and force for good in our communities
▪ Protecting forests through responsible stewardship
▪ Improving value chain footprint by enhancing energy efficiency and expanding use of renewable energy
▪ Creating innovative solutions for a circular world that are reuseable, recyclable, or compostable
▪ Striking a balance between economic growth and environmental responsibility
▪ Integrating sustainability across organization through robust governance structures
▪ Prioritizing employee safety and community wellbeing
International Paper Snapshot (NYSE: IP, LSE: IPC)
MEMPHIS, TN
GLOBAL HQ
~51,000
CUSTOMERS
$27.5B1
MARKET-CAP
$27.1B2
SALES
41
MILLS
~450
OPERATING FACILITIES
PACKAGING SOLUTIONS NET SALES
■ North America ■ EMEA
Significant Growth Opportunity in Attractive Geographies
$24.0B2
■ Processed Food & Beverage ■ Fresh Food ■ E-commerce & Logistics ■ Non-durables ■ Durables
Focused portfolio serving attractive and growing markets
Strategic and diverse customer relationships Significant capabilities, scale, and competitive assets
Executing strategy to unlock step change in earnings potential
1 As of 3/21/2025. 2 Calendar year 2024 DS Smith included at an exchange rate of £1/$1.278, sales between DS Smith and IP are not eliminated, DS Smith presented on IFRS basis and combined with IP U.S. GAAP basis. 3 Calendar year 2024 DS Smith included at an exchange rate of €1/$1.082, sales between DS Smith and IP are not eliminated, DS Smith presented on IFRS basis and combined with IP U.S. GAAP basis. 4 Excludes GCF.
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Disclaimer
International Paper Company published this content on March 25, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on March 25, 2025 at 10:10:29.719.