International Paper to Explore Strategic Options for Ownership Interest in Ilim Group

Q3 2022 Highlights *Net Sales were $2,451 million versus $1,782 million in the prior year quarter. *Net Organic Sales increased 5% in the quarter and 4% year-to-date driven by global demand for sustainable, innovative fiber-based consumer packaging solutions. *Net Income was $193 million versus $73 million in the prior year quarter. *Global liquidity was $1.4 billion at quarter end. *Repurchased $15 million of common stock during the quarter; returned $38 million in total to stockholders in share repurchases and dividends. *In October, published 2021 environmental, social and governance (ESG) report reaffirming organization-wide focus on continuous improvement and highlighting the milestones achieved during the year advancing the Company's Vision 2025 ESG goals.

International technology group ANDRITZ will rebuild a paper machine at Holmen Paper’s Braviken mill in Sweden to provide maximum production flexibility. Start-up is planned for autumn 2024. This order follows Holmen Paper’s recent successful entry into the packaging market with an innovative lightweight corrugated board product. The rebuild of PM52 will enable Holmen Paper to increase the production of fluting for corrugated boxes. ANDRITZ will implement a sophisticated technology concept allowing to easily switch production between the different paper grades.

Billerud has agreed with the investment company Mimir Group about a divestment of Managed Packaging, which offers packaging solutions to global brand owners. The transaction is expected to be completed during August 2023. The intention to divest the business unit Managed Packaging is a consequence of Billerud’s focus on packaging materials, which means a reduced strategic importance of service offerings. The sale will reduce complexity and positively impact Billerud's EBITDA margin.