Domtar Corporation Reports Preliminary First Quarter 2016 Financial Results

Earnings affected by higher planned maintenance and related costs

(All financial information is in U.S. dollars, and all earnings per share results are diluted, unless otherwise noted).

  • First quarter 2016 net earnings of $0.06 per share; earnings before items1 of $0.35 per share
  • Closed paper machine at Ashdown mill, reducing annual paper capacity by 364,000 tons
  • Price increases announced for softwood pulp and several uncoated freesheet grades

FORT MILL, S.C.–(BUSINESS WIRE)–Apr. 28, 2016– Domtar Corporation (NYSE: UFS) (TSX: UFS) today reported net earnings of $4 million ($0.06 per share) for the first quarter of 2016 compared to net earnings of $57 million ($0.91 per share) for the fourth quarter of 2015 and net earnings of $36 million ($0.56 per share) for the first quarter of 2015. Sales for the first quarter of 2016 were $1.3 billion.

Excluding items listed below, the Company had earnings before items1 of $22 million ($0.35 per share) for the first quarter of 2016 compared to earnings before items1 of $70 million ($1.11 per share) for the fourth quarter of 2015 and earnings before items1 of $48 million ($0.75 per share) for the first quarter of 2015.

First quarter 2016 items:

  • Closure and restructuring costs of $2 million ($2 million after tax); and
  • Impairment of property, plant & equipment of $21 million ($16 million after tax).

Fourth quarter 2015 items:

  • Closure and restructuring costs of $1 million ($1 million after tax); and
  • Impairment of property, plant & equipment of $20 million ($12 million after tax).

First quarter 2015 items:

  • Closure and restructuring costs of $1 million ($1 million after tax);
  • Gain on disposal of property, plant and equipment of $1 million ($1 million after tax); and
  • Impairment of property, plant & equipment of $19 million ($12 million after tax).

“Although our teams were very agile and executed well on things under our control, our results in pulp and paper were negatively impacted by unexpected costs during the extended maintenance outages,” said John D. Williams, President and Chief Executive Officer. “Given the timing of maintenance activity and costs related to the fluff pulp conversion, our first half results are expected to remain subdued before significantly improving in the second half as the benefits from the Ashdown conversion, lower maintenance and higher prices accrue.”

Mr. Williams added, “We delivered strong year over year EBITDA growth in Personal Care with procurement initiatives and manufacturing cost savings driving the majority of the increase. During the quarter, we began delivering on our new sales growth wins including the successful launch of a partner brand and the ramping up of volume for a major account. We are on track to realize the top-line benefits of the new customer wins through 2016.”

QUARTERLY REVIEW

Operating income before items1 was $41 million in the first quarter of 2016 compared to an operating income before items1 of $115 million in the fourth quarter of 2015. Depreciation and amortization totaled $89 million in the first quarter of 2016.

                 
(In millions of dollars)   1Q 2016     4Q 2015  
                 
Sales   $ 1,287     $ 1,314  
Operating income (loss)                
Pulp and Paper segment     19       86  
Personal Care segment     14       16  
Corporate    

(15)

 

   

(8)

 

Total     18       94  
Operating income before items1     41       115  
Depreciation and amortization     89       89  

The decrease in operating income before items1 in the first quarter of 2016 was the result of increased maintenance costs, lower productivity in pulp and paper, lower volume, higher raw material costs, lower average selling prices, higher selling, general and administrative expenses and other costs. These factors were partially offset by favorable exchange rates and lower freight costs.

When compared to the fourth quarter of 2015, manufactured paper shipments were down 1.4% and pulp shipments decreased 4.4%. The shipments-to-production ratio for paper was 100% in the first quarter of 2016, compared to 95% in the fourth quarter of 2015. Paper inventories remained flat and pulp inventories decreased by 13,000 metric tons when compared to the fourth quarter of 2015.

LIQUIDITY AND CAPITAL

Cash flow provided from operating activities amounted to $97 million and capital expenditures were $100 million, resulting in a negative free cash flow1 of $3 million for the first quarter of 2016. Domtar’s net debt-to-total capitalization ratio1 stood at 30% at March 31, 2016 and at December 31, 2015.

During the quarter, Domtar repurchased $10 million of common stock under its stock repurchase program.

OUTLOOK

The second quarter is expected to be affected by seasonally higher maintenance activity in our pulp and paper business in addition to costs of approximately $23 million related to the fluff pulp conversion outage at our Ashdown mill. For the remainder of the year, Domtar paper shipments are expected to trend with market demand. Recently announced price increases should positively impact Pulp and Paper. Personal Care results should benefit from the new customer wins, market growth and cost savings from the new manufacturing platform. Costs for raw materials should marginally increase.

EARNINGS CONFERENCE CALL

The Company will hold a conference call today at 10:00 a.m. (ET) to discuss its first quarter 2016 financial results. Financial analysts are invited to participate in the call by dialing 1 (800) 499-4035 (toll free – North America) or 1 (416) 204-9269 (International) at least 10 minutes before start time, while media and other interested individuals are invited to listen to the live webcast on the Domtar Corporation website at www.domtar.com.

The Company will release its second quarter 2016 earnings results on July 28, 2016 before markets open, followed by a conference call at 10:00 a.m. (ET) to discuss results. The date is tentative and will be confirmed approximately three weeks prior to the official earnings release date.

About Domtar
Domtar is a leading provider of a wide variety of fiber-based products including communication, specialty and packaging papers, market pulp and absorbent hygiene products. With approximately 9,850 employees serving more than 50 countries around the world, Domtar is driven by a commitment to turn sustainable wood fiber into useful products that people rely on every day. Domtar’s annual sales are approximately $5.3 billion and its common stock is traded on the New York and Toronto Stock Exchanges. Domtar’s principal executive office is in Fort Mill, South Carolina. To learn more, visit www.domtar.com.

Forward-Looking Statements
Statements in this release about our plans, expectations and future performance, including the statements by Mr. Williams and those contained under “Outlook,” are “forward-looking statements.” Actual results may differ materially from those suggested by these statements for a number of reasons, including changes in customer demand and pricing, changes in manufacturing costs, future acquisitions and divestitures, including facility closings, and the other reasons identified under “Risk Factors” in our Form 10-K for 2015 as filed with the SEC and as updated by subsequently filed Form 10-Q’s. Except to the extent required by law, we expressly disclaim any obligation to update or revise these forward-looking statements to reflect new events or circumstances or otherwise.

Domtar Corporation
Highlights
(In millions of dollars, unless otherwise noted)

    Three months     Three months  
    ended     ended  
    March 31,     March 31,  
    2016     2015  
    (Unaudited)  
   

$

    $  
                 
Selected Segment Information                
Sales                
Pulp and Paper     1,085       1,146  
Personal Care     216       218  
Total for reportable segments     1,301       1,364  
Intersegment sales    

(14)

 

   

(16)

 

Consolidated sales     1,287       1,348  

Depreciation and amortization and impairment
of property, plant and equipment

               
Pulp and Paper     73       74  
Personal Care     16       16  
Total for reportable segments     89       90  

Impairment of property, plant
and equipment – Pulp and Paper

    21       19  
           

Consolidated depreciation and amortization
and impairment of property, plant and equipment

    110       109  
           
                 
Operating income (loss)                
Pulp and Paper     19       75  
Personal Care     14       10  
Corporate    

(15)

 

   

(14)

 

Consolidated operating income     18       71  
Interest expense, net     17       26  
Earnings before income taxes     1       45  
Income tax (benefit) expense    

(3)

 

    9  
Net earnings     4       36  
Per common share (in dollars)                
Net earnings                
Basic     0.06       0.56  
Diluted     0.06       0.56  

Weighted average number of common
shares outstanding (millions)

               
               
Basic     62.7       63.8  
Diluted     62.8       63.9  
Cash flows provided from operating activities     97       127  
Additions to property, plant and equipment     100       70  

Domtar Corporation
Consolidated Statements of Earnings
(In millions of dollars, unless otherwise noted)

    Three months     Three months
    ended     ended
    March 31,     March 31,
    2016     2015
    (Unaudited)
    $     $
               
Sales     1,287       1,348
Operating expenses              
Cost of sales, excluding depreciation and amortization     1,050       1,062
Depreciation and amortization     89       90
Selling, general and administrative     103       100
Impairment of property, plant and     21       19
equipment              
Closure and restructuring costs     2       1
Other operating loss, net     4       5
      1,269       1,277
Operating income     18       71
Interest expense, net     17       26
Earnings before income taxes     1       45
Income tax (benefit) expense    

(3)

 

    9
Net earnings     4       36
Per common share (in dollars)              
Net earnings              
Basic     0.06       0.56
Diluted     0.06       0.56
Weighted average number of common              
shares outstanding (millions)              
Basic     62.7       63.8
Diluted     62.8       63.9

Domtar Corporation
Consolidated Balance Sheets at
(In millions of dollars)

    March 31,     December 31,  
    2016     2015  
    (Unaudited)  
    $     $  
Assets                
Current assets                
Cash and cash equivalents     97       126  
Receivables, less allowances of $7 and $6     642       627  
Inventories     779       766  
Prepaid expenses     32       21  
Income and other taxes receivable     21       14  
Total current assets     1,571       1,554  
Property, plant and equipment, net     2,868       2,835  
Goodwill     551       539  
Intangible assets, net     614       601  
Other assets     154       125  
Total assets     5,758       5,654  
Liabilities and shareholders’ equity                
Current liabilities                
Bank indebtedness     6        
Trade and other payables     709       720  
Income and other taxes payable     21       27  
Long-term debt due within one year     41       41  
Total current liabilities     777       788  
Long-term debt     1,211       1,210  
Deferred income taxes and other     677       654  
Other liabilities and deferred credits     357       350  
Shareholders’ equity                
Common stock     1       1  
Additional paid-in capital     1,957       1,966  
Retained earnings     1,165       1,186  
Accumulated other comprehensive loss     (387 )     (501 )
Total shareholders’ equity     2,736       2,652  
Total liabilities and shareholders’ equity     5,758       5,654  

Domtar Corporation
Consolidated Statements of Cash Flows
(In millions of dollars)

    For the three months ended  
   

March 31,
2016

   

March 31,
2015

 
    (Unaudited)  
    $   $  
Operating activities                
Net earnings     4       36  
Adjustments to reconcile net earnings to cash flows from operating activities                
Depreciation and amortization     89       90  
Deferred income taxes and tax uncertainties     (3 )     (15 )
Impairment of property, plant and equipment     21       19  
Net gains on disposals of property, plant and equipment           (1 )
Stock-based compensation expense     1       2  
Other           (1 )
Changes in assets and liabilities                
Receivables     (5 )     (44 )
Inventories     (1 )     (12 )
Prepaid expenses     (1 )     2  
Trade and other payables     1       (10 )
Income and other taxes     (9 )     55  
Difference between employer pension and other post-retirement     (1 )     2  
contributions and pension and other post-retirement expense        
Other assets and other liabilities     1       4  
Cash flows provided from operating activities     97       127  
Investing activities                
Additions to property, plant and equipment     (100 )     (70 )
Proceeds from disposals of property, plant and equipment           1  
Cash flows used for investing activities     (100 )     (69 )
Financing activities                
Dividend payments     (25 )     (24 )
Stock repurchase     (10 )     (13 )
Net change in bank indebtedness     7       (4 )
Proceeds from receivables securitization facility     20        
Repayments of receivables securitization facility     (20 )      
Repayments of long-term debt     (1 )     (1 )
Other           1  
Cash flows used for financing activities     (29 )     (41 )
Net (decrease) increase in cash and cash equivalents     (32 )     17  
Impact of foreign exchange on cash     3       (8 )
Cash and cash equivalents at beginning of period     126       174  
Cash and cash equivalents at end of period     97       183  
Supplemental cash flow information                
Net cash payments for:                
Interest     20       27  
Income taxes paid (refund), net     6       (23 )

Domtar Corporation
Quarterly Reconciliation of Non-GAAP Financial Measures
(In millions of dollars, unless otherwise noted)

The following table sets forth certain non-U.S. generally accepted accounting principles (“GAAP”) financial metrics identified in bold as “Earnings before items”, “Earnings before items per diluted share”, “EBITDA”, “EBITDA margin”, “EBITDA before items”, “EBITDA margin before items”, “Free cash flow”, “Net debt” and “Net debt-to-total capitalization”. Management believes that the financial metrics presented are frequently used by investors and are useful to evaluate our ability to service debt and our overall credit profile. Management believes these metrics are also useful to measure the operating performance and benchmark with peers within the industry. These metrics are presented as a complement to enhance the understanding of operating results but not in substitution for GAAP results.

The Company calculates “Earnings before items” and “EBITDA before items” by excluding the after-tax (pre-tax) effect of items considered by management as not reflecting our current operations. Management uses these measures, as well as EBITDA and Free cash flow, to focus on ongoing operations and believes that it is useful to investors because it enables them to perform meaningful comparisons between periods. Domtar believes that using this information along with Net earnings provides for a more complete analysis of the results of operations. Net earnings and Cash flows provided from operating activities are the most directly comparable GAAP measures.

            2016     2015
            Q1     Q1     Q2     Q3     Q4     YTD  
Reconciliation of “Earnings before items” to Net                                                    
earnings                                                      
    Net earnings   ($)     4       36       38       11       57       142  
  (+) Impairment of property, plant and equipment   ($)     16       12       11       12       12       47  
  (+) Closure and restructuring costs   ($)     2       1       1       1       1       4  
  (-)

Net gains on disposals of property, plant and

  ($)           (1 )     (11 )                 (12 )
    equipment                                                    
  (+) Debt refinancing costs   ($)          

 

          30             30  
  (=) Earnings before items   ($)     22       48       39       54       70       211  
  (/) Weighted avg. number of common shares outstanding (diluted)   (millions)     62.8       63.9       63.7       63       62.9       63.4  
  (=) Earnings before items per diluted share   ($)     0.35       0.75       0.61       0.86       1.11       3.33  
                                                         
Reconciliation of “EBITDA” and “EBITDA before                                                    
items” to Net earnings                                                    
    Net earnings   ($)     4       36       38       11       57       142  
  (+) Income tax (benefit) expense   ($)     (3 )     9       (1 )     (14 )     20       14  
  (+) Interest expense, net   ($)     17       26       25       64       17       132  
  (=) Operating income   ($)     18       71       62       61       94       288  
  (+) Depreciation and amortization   ($)     89       90       91       89       89       359  
  (+) Impairment of property, plant and equipment   ($)     21       19       18       20       20       77  
  (-)

Net gains on disposals of property, plant

  ($)           (1 )     (14 )                 (15 )
    and equipment                                                    
  (=) EBITDA   ($)     128       179       157       170       203       709  
  (/) Sales   ($)     1,287       1,348       1,310       1,292       1,314       5,264  
  (=) EBITDA margin   (%)     10 %     13 %     12 %     13 %     15 %     13 %
    EBITDA   ($)     128       179       157       170       203       709  
  (+) Closure and restructuring costs   ($)     2       1       1       1       1       4  
  (=) EBITDA before items   ($)     130       180       158       171       204       713  
  (/) Sales   ($)     1,287       1,348       1,310       1,292       1,314       5,264  
  (=) EBITDA margin before items   (%)     10 %     13 %     12 %     13 %     16 %     14 %
                                                         
Reconciliation of “Free cash flow” to Cash flows                                                    
provided from operating activities                                                    
    Cash flows provided from operating activities   ($)     97       127       122       67       137       453  
  (-) Additions to property, plant and equipment   ($)     (100 )     (70 )     (66 )     (66 )     (87 )     (289 )
  (=) Free cash flow   ($)     (3 )     57       56       1       50       164  
                                                         
“Net debt-to-total capitalization” computation                                                    
    Bank indebtedness   ($)     6       6       1       1                
  (+) Long-term debt due within one year   ($)     41       169       169       42       41          
  (+) Long-term debt   ($)     1,211       1,170       1,169       1,236       1,210          
  (=) Debt   ($)     1,258       1,345       1,339       1,279       1,251          
  (-) Cash and cash equivalents   ($)     (97 )     (183 )     (207 )     (128 )     (126 )        
  (=) Net debt   ($)     1,161       1,162       1,132       1,151       1,125          
  (+) Shareholders’ equity   ($)     2,736       2,710       2,761       2,659       2,652          
  (=) Total capitalization   ($)     3,897       3,872       3,893       3,810       3,777          
    Net debt   ($)     1,161       1,162       1,132       1,151       1,125          
  (/) Total capitalization   ($)     3,897       3,872       3,893       3,810       3,777          
  (=) Net debt-to-total capitalization   (%)     30 %     30 %     29 %     30 %     30 %        

“Earnings before items”, “Earnings before items per diluted share”, “EBITDA”, “EBITDA margin”, “EBITDA before items”, “EBITDA margin before items”, “Free cash flow”, “Net debt” and “Net debt-to-total capitalization” have no standardized meaning prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies and therefore should not be considered in isolation or as a substitute for Net earnings, Operating income or any other earnings statement, cash flow statement or balance sheet financial information prepared in accordance with GAAP. It is important for readers to understand that certain items may be presented in different lines by different companies on their financial statements thereby leading to different measures for different companies.

Domtar Corporation
Quarterly Reconciliation of Non-GAAP Financial Measures – By Segment 2016
(In millions of dollars, unless otherwise noted)

The following table sets forth certain non-U.S. generally accepted accounting principles (“GAAP”), financial metrics identified in bold as “Operating income (loss) before items”, “EBITDA before items” and “EBITDA margin before items” by reportable segment. Management believes that the financial metrics presented are frequently used by investors and are useful to measure the operating performance and benchmark with peers within the industry. These metrics are presented as a complement to enhance the understanding of operating results but not in substitution for GAAP results.

The Company calculates the segmented “Operating income (loss) before items” by excluding the pre-tax effect of items considered by management as not reflecting our ongoing operations. Management uses these measures to focus on ongoing operations and believes that it is useful to investors because it enables them to perform meaningful comparisons between periods. Domtar believes that using this information along with Operating income (loss) provides for a more complete analysis of the results of operations. Operating income (loss) by segment is the most directly comparable GAAP measure.

            Pulp and Paper   Personal Care   Corporate   Total
            Q1’16   Q2’16   Q3’16   Q4’16   YTD   Q1’16   Q2’16   Q3’16   Q4’16   YTD   Q1’16   Q2’16   Q3’16   Q4’16   YTD   Q1’16   Q2’16   Q3’16   Q4’16   YTD

Reconciliation of Operating income (loss)
to “Operating income (loss) before items”

                                                                                   
    Operating income (loss)   ($)   19         19   14         14  

(15)

 

     

(15)

 

18         18
  (+) Impairment of property, plant and equipment   ($)   21         21            

 

        21         21
  (+) Closure and restructuring costs   ($)   2         2          

 

          2         2
  (=) Operating income (loss) before items   ($)   42         42   14         14  

(15)

       

(15)

 

41         41
                                                                                         

Reconciliation of “Operating income (loss)
before items” to “EBITDA before items”

                                                                                   
    Operating income (loss) before items   ($)   42         42   14         14  

(15)

 

     

(15)

  41         41
  (+) Depreciation and amortization   ($)   73         73   16         16             89         89
                                                                                         
  (=) EBITDA before items   ($)   115         115   30         30  

(15)

 

     

(15)

  130         130
  (/) Sales   ($)   1,085         1,085   216         216             1,301         1,301
  (=) EBITDA margin before items   (%)   11%         11%   14%         14%             10%         10%

“Operating income (loss) before items”, “EBITDA before items” and “EBITDA margin before items” have no standardized meaning prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies and therefore should not be considered in isolation or as a substitute for Operating income (loss) or any other earnings statement, cash flow statement or balance sheet financial information prepared in accordance with GAAP. It is important for readers to understand that certain items may be presented in different lines by different companies on their financial statements thereby leading to different measures for different companies.

Domtar Corporation
Quarterly Reconciliation of Non-GAAP Financial Measures – By Segment 2015
(In millions of dollars, unless otherwise noted)

The following table sets forth certain non-U.S. generally accepted accounting principles (“GAAP”), financial metrics identified in bold as “Operating income (loss) before items”, “EBITDA before items” and “EBITDA margin before items” by reportable segment. Management believes that the financial metrics presented are frequently used by investors and are useful to measure the operating performance and benchmark with peers within the industry. These metrics are presented as a complement to enhance the understanding of operating results but not in substitution for GAAP results.

The Company calculates the segmented “Operating income (loss) before items” by excluding the pre-tax effect of items considered by management as not reflecting our ongoing operations. Management uses these measures to focus on ongoing operations and believes that it is useful to investors because it enables them to perform meaningful comparisons between periods. Domtar believes that using this information along with Operating income (loss) provides for a more complete analysis of the results of operations. Operating income (loss) by segment is the most directly comparable GAAP measure.

            Pulp and Paper   Personal Care   Corporate   Total
            Q1’15   Q2’15   Q3’15   Q4’15   YTD   Q1’15   Q2’15   Q3’15   Q4’15   YTD   Q1’15   Q2’15   Q3’15   Q4’15   YTD   Q1’15   Q2’15   Q3’15   Q4’15   YTD

Reconciliation of Operating income (loss)
to “Operating income (loss) before items”

                                                                                   
    Operating income (loss)   ($)   75   55   54   86   270   10   17   18   16   61  

(14)

 

(10)

 

(11)

 

(8)

 

(43)

  71   62   61   94   288
  (+) Impairment of property, plant and equipment   ($)   19   18   20   20   77          

 

       

 

19   18   20   20   77
  (-)

Net gains on disposals of property, plant and equipment

  ($)  

 

(14)

     

(14)

 

       

 

(1)

 

     

(1)

 

(1)

 

(14)

 

   

(15)

  (+) Closure and restructuring costs   ($)     1   1   1   3   1         1             1   1   1   1   4
  (=) Operating income (loss) before items   ($)   94   60   75   107   336   11   17   18   16   62  

(15)

 

(10)

 

(11)

 

(8)

 

(44)

  90   67   82   115   354
                                                                                 

 

 

 

 

Reconciliation of “Operating income (loss)
before items” to “EBITDA before items”

                                                                           

 

 

 

 

    Operating income (loss) before items   ($)   94   60   75   107   336   11   17   18   16   62  

(15)

 

(10)

 

(11)

 

(8)

 

(44)

  90   67   82   115   354
  (+) Depreciation and amortization   ($)   74   75   75   73   297   16   16   14   16   62             90   91   89   89   359
                                                                                         
  (=) EBITDA before items   ($)   168   135   150   180   633   27   33   32   32   124  

(15)

 

(10)

 

(11)

 

(8)

 

(44)

  180   158   171   204   713
  (/) Sales   ($)   1,146   1,110   1,092   1,110   4,458   218   216   214   221   869             1,364   1,326   1,306   1,331   5,327
  (=) EBITDA margin before items   (%)   15%   12%   14%   16%   14%   12%   15%   15%   14%   14%             13%   12%   13%   15%   13%

“Operating income (loss) before items”, “EBITDA before items” and “EBITDA margin before items” have no standardized meaning prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies and therefore should not be considered in isolation or as a substitute for Operating income (loss) or any other earnings statement, cash flow statement or balance sheet financial information prepared in accordance with GAAP. It is important for readers to understand that certain items may be presented in different lines by different companies on their financial statements thereby leading to different measures for different companies.

Domtar Corporation
Supplemental Segmented Information
(In millions of dollars, unless otherwise noted)

        2016     2015
        Q1     Q1     Q2     Q3     Q4     YTD  
Pulp and Paper                                                    
Segment                                                    
Sales   ($)     1,085       1,146       1,110       1,092       1,110       4,458  
Operating income   ($)     19       75       55       54       86       270  

Depreciation and
amortization

  ($)     73       74       75       75       73       297  

Impairment of property,
plant and equipment

  ($)     21       19       18       20       20       77  
                                                     
Paper                                                    
Paper Production   (‘000 ST)     785       808       806       794       837       3,245  

Paper Shipments –
Manufactured

  (‘000 ST)     786       804       783       779       797       3,163  

Communication
Papers

  (‘000 ST)     657       669       653       648       669       2,639  

Specialty and
Packaging

  (‘000 ST)     129       135       130       131       128       524  

Paper Shipments –
Sourced from
3rd parties

  (‘000 ST)     32       35       29       35       28       127  

Paper Shipments –
Total

  (‘000 ST)     818       839       812       814       825       3,290  
Pulp                                                    
Pulp Shipments(a)   (‘000 ADMT)     369       350       345       333       386       1,414  

Hardwood Kraft
Pulp

  (%)     6 %     9 %     8 %     8 %     8 %     8 %

Softwood Kraft
Pulp

  (%)     69 %     65 %     65 %     65 %     69 %     66 %
Fluff Pulp   (%)     25 %     26 %     27 %     27 %     23 %     26 %
                                                     
Personal Care                                                    
Segment                                                    
Sales   ($)     216       218       216       214       221       869  
Operating income   ($)     14       10       17       18       16       61  

Depreciation and
amortization

  ($)     16       16       16       14       16       62  

 

                                                   
                                                     

Average Exchange
Rates

  $US / $CAN     1.375       1.241       1.229       1.309       1.335       1.279  

 

                                                   
    $CAN / $US     0.727       0.806       0.813       0.765       0.749       0.782  
    € / $US     1.103       1.126       1.106       1.112       1.095       1.11  

(a) Figures are gross of market pulp purchased from other producers on the open market for some of our paper making operations. Pulp Shipments represent the amount of pulp produced in excess of our internal requirement.

Note: the term “ST” refers to a short ton and the term “ADMT” refers to an air dry metric ton.

1 Non-GAAP financial measure. Refer to the Reconciliation of Non-GAAP Financial Measures in the appendix.

 

Source: Domtar Corporation

Domtar
INVESTOR RELATIONS
Nicholas Estrela, 514-848-5555 x 85979
Director
Investor Relations
or
MEDIA RELATIONS
David Struhs, 803-802-8031
Vice-President
Corporate Services and Sustainability

 

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