Our transformation over the past decade has positioned us  well to compete successfully in global packaging, paper and  pulp markets. As the world around us changes, we must  remain agile and adapt to meet the evolving and emerging  needs of our stakeholders. To be the industry leader we  want to be, International Paper has established six key  enterprise-wide priorities for 2015. I’d like to share these  priorities with you. As we look back, 2014 was a successful year for  International Paper as we generated $2.1 billion of free  cash flow, record cash from operations and record earnings from our industrial packaging business. We completed the successful spin-off of our xpedx business,  from which we received more than $400 million in cash  payments. Our foodservice business and Ilim joint  venture each generated record revenue and our global  papers business also posted much-improved year-over- year performance. Our first priority is continuing to develop a culture where  every team member is accountable for his or her own  safety, where team members lead by example and where  they are appreciated for boldly intervening when they see  unsafe behavior or conditions. Second, we must generate  strong, sustainable cash flow that allows us to strategically  reinvest in our businesses, maintain a healthy balance  sheet and return cash to our shareowners. International Paper’s ability to generate strong, sustainable  free cash flow provides the foundation for our ongoing  commitment to return cash to shareowners, strategically  reinvest in our businesses and maintain a strong balance  sheet. In 2014, we returned more cash to our shareowners  with a 14 percent increase in our annual dividend and  bought back approximately $1 billion in shares.  Next, we must continue to build an even more diverse and   inclusive work environment that enables us to successfully  compete for and retain the most talented employees  around the globe, which in turn, will lead to better overall  performance for the company. Also, to be the best, all of  our team members, including myself, must set stretch  goals that encourage us to think beyond business as usual.  On the operations side, we must ramp up our manufactur- ing excellence initiatives to generate deliberate, continuous  and sustainable improvement and apply what we learn  across every area of the company. Finally, we must win with  the right customers—those customers who are growing  profitably and want us to grow along with them. We must  go out of our way to delight them with our product quality,  ability to innovate, customer service and day-to-day  dependability.  In April, we acquired the remaining 25 percent share of  Orsa International Paper Embalagens S.A. in Brazil from  our joint venture partner. We are now in a position to fully  optimize our system in alignment with our strategy to  selectively grow our industrial packaging business globally  in attractive markets. In North America, we broke ground  on a 250,000 square foot expansion of our foodservice  plant in Kenton, Ohio, and expect it to be operational in  mid-2015. The expansion supports our customers’ organic  growth in response to increasing consumer demand for  renewable fiber-based packaging. We also announced an  investment to restart the idled No. 3 paper machine at our  Valliant, Okla., containerboard mill. The machine will provide  greater flexibility in our North American containerboard  system and enable us to grow in specialty markets and  through our international box system. The machine should  be production-ready by summer 2015.  LETTER FROM NEW CEO, MARK S. SUTTON 04