International Paper Co.

Overview Key strengths Key risks Largest containerboard and corrugated products manufacturer in North America. Exposure to cyclical end markets and raw material/input price volatility. Low-cost mills and access to high-quality softwood fiber. Potential large, debt-financed acquisitions could stretch leverage. Global cellulose fibers business provides some diversity to its core industrial packaging segment. Supply chain and port congestion affecting export volumes. After navigating through significant operational and supply chain constraints last year, we expect IP to better manage the continued challenging operating environment this year. Input costs continued to rise in the first quarter, including natural gas, chemicals, distribution, and fuel. Offsetting costs is the company?s realization of price increases that it implemented late last year, with better price/mix within both

...Stable demand for International Paper's (IP's) products should support higher pricing and offset inflationary input cost pressures in 2022. After navigating through significant operational and supply chain constraints last year, we expect IP to better manage the continued challenging operating environment this year. Input costs continued to rise in the first quarter, including natural gas, chemicals, distribution, and fuel. Offsetting costs is the company's realization of price increases that it implemented late last year, with better price/mix within both the industrial packaging and global cellulose fibers segments. When supply chain constraints ease and the company is able to more easily move its inventory to supply its box plants, we expect continued margin improvement through the year, with S&P Ratings'-adjusted EBITDA margins in the 16% area by year end....

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