Domtar Corporation Reports Preliminary Third Quarter 2016 Financial Results

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

• Third quarter 2016 net earnings of $0.94 per share; earnings before items¹ of $1.13 per share
• Lack-of-order downtime totaling 39 thousand tons in paper
• Personal Care sales growth of 8% year-over-year

FORT MILL, S.C.–(BUSINESS WIRE)–Oct. 27, 2016– Domtar Corporation (NYSE: UFS) (TSX: UFS) today reported net earnings of $59 million ($0.94 per share) for the third quarter of 2016 compared to net earnings of $18 million ($0.29 per share) for the second quarter of 2016 and net earnings of $11 million ($0.17 per share) for the third quarter of 2015. Sales for the third quarter of 2016 were $1.3 billion.

Excluding items listed below, the Company had earnings before items¹ of $71 million ($1.13 per share) for the third quarter of 2016 compared to earnings before items¹ of $38 million ($0.61 per share) for the second quarter of 2016 and earnings before items¹ of $54 million ($0.86 per share) for the third quarter of 2015.

Third quarter 2016 items:

• Impairment of property, plant & equipment of $5 million ($4 million after tax); and
• Closure and restructuring costs of $10 million ($8 million after tax).

Second quarter 2016 items:

• Litigation settlement of $2 million ($2 million after tax);
• Impairment of property, plant & equipment of $3 million ($2 million after tax); and
• Closure and restructuring costs of $21 million ($16 million after tax).

Third quarter 2015 items:

• Closure and restructuring costs of $1 million ($1 million after tax);
• Impairment of property, plant & equipment of $20 million ($12 million after tax); and
• Debt refinancing costs of $42 million ($30 million after tax).

“We had a solid operating performance despite the market related downtime in paper. Productivity improved due to lower planned maintenance outages, and we further benefited from our continuous improvement program efforts resulting in lower costs,” said John D. Williams, President and Chief Executive Officer. “We are making meaningful progress with the ramp-up of the Ashdown fluff pulp machine with milestones achieved throughout the quarter. Production of bale softwood pulp is underway with the fluff qualification period set to begin in the fourth quarter.”

Mr. Williams added, “Strong sales momentum continued in Personal Care; our topline is growing faster than market with year-over-year growth of 8%. The recent acquisition of Home Delivery Incontinent Supplies Co., a leading national direct-to-consumer provider of incontinence products, will support our Personal Care growth strategy going forward.”

QUARTERLY REVIEW

Operating income was $92 million in the third quarter of 2016 compared to operating income of $39 million in the second quarter of 2016. Depreciation and amortization totaled $87 million in the third quarter of 2016.

Operating income before items¹ was $107 million in the third quarter of 2016 compared to an operating income before items¹ of $65 million in the second quarter of 2016.

(In millions of dollars)		3Q 2016				2Q 2016
Sales		$	1,270			$	1,267
Operating income (loss)
Pulp and Paper segment			89				35
Personal Care segment			15				15
Corporate			(12	)			(11	)
Total operating income			92				39
Operating income before items1			107				65
Depreciation and amortization			87				87

The increase in operating income in the third quarter of 2016 was mostly due to lower maintenance costs, lower raw material costs, lower closure and restructuring costs and favorable exchange rates. These factors were partially offset by higher selling, general and administrative expenses, lower average selling prices, a decrease in our paper sales volume and higher freight and other costs.

When compared to the second quarter of 2016, manufactured paper shipments were down 1% and pulp shipments increased by 3%. The shipments-to-production ratio for paper was 102% in the third quarter of 2016, compared to 105% in the second quarter of 2016. Paper inventories decreased by 17,000 tons and pulp inventories increased by 52,000 metric tons when compared to the second quarter of 2016.

LIQUIDITY AND CAPITAL

Cash flow provided from operating activities amounted to $95 million and capital expenditures were $83 million, resulting in a free cash flow¹ of $12 million for the third quarter of 2016. Domtar’s net debt-to-total capitalization ratio¹ stood at 30% at September 30, 2016 and at June 30, 2016.

OUTLOOK

The fourth quarter will be negatively impacted by seasonality and mix in paper. We expect some short-term pricing volatility in pulp, while raw material unit costs are expected to increase, notably for wood, energy and chemicals. Our Personal Care results are expected to continue to benefit from the new customer wins, market growth and cost savings from the new manufacturing platform.

EARNINGS CONFERENCE CALL

The Company will hold a conference call today at 11:00 a.m. (ET) to discuss its third 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 fourth quarter 2016 earnings results on February 9, 2017 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 10,000 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				Nine months				Nine months
		ended				ended				ended				ended
		September 30,				September 30,				September 30,				September 30,
		2016				2015				2016				2015
		(Unaudited)
		$				$				$				$
Selected Segment Information
Sales
Pulp and Paper			1,054				1,092				3,193				3,348
Personal Care			231				214				675				648
Total for reportable segments			1,285				1,306				3,868				3,996
Intersegment sales			(15	)			(14	)			(44	)			(46	)
Consolidated sales			1,270				1,292				3,824				3,950
Depreciation and amortization and impairment
of property, plant and equipment
Pulp and Paper			71				75				216				224
Personal Care			16				14				47				46
Total for reportable segments			87				89				263				270
Impairment of property, plant			5				20				29				57
and equipment – Pulp and Paper
Consolidated depreciation and amortization and			92				109				292				327
impairment of property, plant and equipment
Operating income (loss)
Pulp and Paper			89				54				143				184
Personal Care			15				18				44				45
Corporate			(12	)			(11	)			(38	)			(35	)
Consolidated operating income			92				61				149				194
Interest expense, net			17				64				49				115
Earnings (loss) before income taxes			75				(3	)			100				79
Income tax expense (benefit)			16				(14	)			19				(6	)
Net earnings			59				11				81				85
Per common share (in dollars)
Net earnings
Basic			0.94				0.17				1.29				1.34
Diluted			0.94				0.17				1.29				1.34
Weighted average number of common
shares outstanding (millions)
Basic			62.6				62.9				62.6				63.4
Diluted			62.7				63.0				62.7				63.5
Cash flows provided from operating activities			95				67				310				316
Additions to property, plant and equipment			83				66				302				202

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

		Three months				Three months				Nine months				Nine months
		ended				ended				ended				ended
		September 30,				September 30,				September 30,				September 30,
		2016				2015				2016				2015
		(Unaudited)
		$				$				$				$
Sales			1,270				1,292				3,824				3,950
Operating expenses
Cost of sales, excluding depreciation and amortization			969				1,026				3,032				3,140
Depreciation and amortization			87				89				263				270
Selling, general and administrative			107				95				314				294
Impairment of property, plant and
equipment			5				20				29				57
Closure and restructuring costs			10				1				33				3
Other operating loss (income), net			—				—				4				(8	)
			1,178				1,231				3,675				3,756
Operating income			92				61				149				194
Interest expense, net			17				64				49				115
Earnings (loss) before income taxes			75				(3	)			100				79
Income tax expense (benefit)			16				(14	)			19				(6	)
Net earnings			59				11				81				85
Per common share (in dollars)
Net earnings
Basic			0.94				0.17				1.29				1.34
Diluted			0.94				0.17				1.29				1.34
Weighted average number of common
shares outstanding (millions)
Basic			62.6				62.9				62.6				63.4
Diluted			62.7				63.0				62.7				63.5

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

		September 30,				December 31,
		2016				2015
		(Unaudited)
		$				$
Assets
Current assets
Cash and cash equivalents			168				126
Receivables, less allowances of $6 and $6			616				627
Inventories			770				766
Prepaid expenses			46				21
Income and other taxes receivable			33				14
Total current assets			1,633				1,554
Property, plant and equipment, net			2,887				2,835
Goodwill			548				539
Intangible assets, net			600				601
Other assets			162				125
Total assets			5,830				5,654
Liabilities and shareholders’ equity
Current liabilities
Trade and other payables			645				720
Income and other taxes payable			25				27
Long-term debt due within one year			63				41
Total current liabilities			733				788
Long-term debt			1,309				1,210
Deferred income taxes and other			692				654
Other liabilities and deferred credits			342				350
Shareholders’ equity
Common stock			1				1
Additional paid-in capital			1,961				1,966
Retained earnings			1,190				1,186
Accumulated other comprehensive loss			(398	)			(501	)
Total shareholders’ equity			2,754				2,652
Total liabilities and shareholders’ equity			5,830				5,654

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

		For the nine months ended
		September 30, 2016				September 30, 2015
		(Unaudited)
		$				$
Operating activities
Net earnings			81				85
Adjustments to reconcile net earnings to cash flows from operating activities
Depreciation and amortization			263				270
Deferred income taxes and tax uncertainties			6				(50	)
Impairment of property, plant and equipment			29				57
Net gains on disposals of property, plant and equipment			—				(15	)
Stock-based compensation expense			5				5
Other			(3	)			4
Changes in assets and liabilities, excluding effect of acquisition of business
Receivables			19				(11	)
Inventories			6				(70	)
Prepaid expenses			(5	)			(3	)
Trade and other payables			(53	)			8
Income and other taxes			(18	)			30
Difference between employer pension and other post-retirement			(16	)			2
contributions and pension and other post-retirement expense
Other assets and other liabilities			(4	)			4
Cash flows provided from operating activities			310				316
Investing activities
Additions to property, plant and equipment			(302	)			(202	)
Proceeds from disposals of property, plant and equipment			—				35
Acquisition of business, net of cash acquired			(1	)			—
Other			1				9
Cash flows used for investing activities			(302	)			(158	)
Financing activities
Dividend payments			(76	)			(75	)
Stock repurchase			(10	)			(50	)
Net change in bank indebtedness			1				(9	)
Change in revolving bank credit facility			60				75
Proceeds from receivables securitization facility			140				—
Repayments of receivables securitization facility			(40	)			—
Issuance of long-term debt			—				300
Repayments of long-term debt			(40	)			(439	)
Other			(3	)			1
Cash flows provided from (used for) financing activities			32				(197	)
Net increase (decrease) in cash and cash equivalents			40				(39	)
Impact of foreign exchange on cash			2				(7	)
Cash and cash equivalents at beginning of period			126				174
Cash and cash equivalents at end of period			168				128
Supplemental cash flow information
Net cash payments for:
Interest (including $40 million of redemption premiums in 2015)			50				121
Income taxes paid, net			37				16

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 are useful to understand our operating performance and benchmark with peers within the industry. The Company calculates “Earnings before items” and “EBITDA before items” by excluding the after-tax (pre-tax) effect of specified items. These metrics are presented as a complement to enhance the understanding of operating results but not in substitution for GAAP results.

						2016																2015
						Q1				Q2				Q3				YTD				Q1				Q2				Q3				Q4				Year
Reconciliation of “Earnings before items” to Net earnings
		Net earnings		($)			4				18				59				81				36				38				11				57				142
	(+)	Impairment of property, plant and equipment		($)			16				2				4				22				12				11				12				12				47
	(+)	Closure and restructuring costs		($)			2				16				8				26				1				1				1				1				4
	(+)	Litigation settlement		($)			—				2				—				2				—				—				—				—				—
	(-)	Net gains on disposals of property, plant and equipment		($)			—				—				—				—				(1	)			(11	)			—				—				(12	)
	(+)	Debt refinancing costs		($)			—				—				—				—				—				—				30				—				30
	(=)	Earnings before items		($)			22				38				71				131				48				39				54				70				211
	(/)	Weighted avg. number of common shares outstanding (diluted)		(millions)			62.8				62.7				62.7				62.7				63.9				63.7				63.0				62.9				63.4
	(=)	Earnings before items per diluted share		($)			0.35				0.61				1.13				2.09				0.75				0.61				0.86				1.11				3.33
Reconciliation of “EBITDA” and “EBITDA before items” to Net earnings
		Net earnings		($)			4				18				59				81				36				38				11				57				142
	(+)	Income tax (benefit) expense		($)			(3	)			6				16				19				9				(1	)			(14	)			20				14
	(+)	Interest expense, net		($)			17				15				17				49				26				25				64				17				132
	(=)	Operating income		($)			18				39				92				149				71				62				61				94				288
	(+)	Depreciation and amortization		($)			89				87				87				263				90				91				89				89				359
	(+)	Impairment of property, plant and equipment		($)			21				3				5				29				19				18				20				20				77
	(-)	Net gains on disposals of property, plant and equipment		($)			—				—				—				—				(1	)			(14	)			—				—				(15	)
	(=)	EBITDA		($)			128				129				184				441				179				157				170				203				709
	(/)	Sales		($)			1,287				1,267				1,270				3,824				1,348				1,310				1,292				1,314				5,264
	(=)	EBITDA margin		(%)			10	%			10	%			14	%			12	%			13	%			12	%			13	%			15	%			13	%
		EBITDA		($)			128				129				184				441				179				157				170				203				709
	(+)	Closure and restructuring costs		($)			2				21				10				33				1				1				1				1				4
	(+)	Litigation settlement		($)			—				2				—				2				—				—				—				—				—
	(=)	EBITDA before items		($)			130				152				194				476				180				158				171				204				713
	(/)	Sales		($)			1,287				1,267				1,270				3,824				1,348				1,310				1,292				1,314				5,264
	(=)	EBITDA margin before items		(%)			10	%			12	%			15	%			12	%			13	%			12	%			13	%			16	%			14	%
Reconciliation of “Free cash flow” to Cash flows provided from operating activities
		Cash flows provided from operating activities		($)			97				118				95				310				127				122				67				137				453
	(-)	Additions to property, plant and equipment		($)			(100	)			(119	)			(83	)			(302	)			(70	)			(66	)			(66	)			(87	)			(289	)
	(=)	Free cash flow		($)			(3	)			(1	)			12				8				57				56				1				50				164
“Net debt-to-total capitalization” computation
		Bank indebtedness		($)			6				1				—								6				1				1				—
	(+)	Long-term debt due within one year		($)			41				64				63								169				169				42				41
	(+)	Long-term debt		($)			1,211				1,237				1,309								1,170				1,169				1,236				1,210
	(=)	Debt		($)			1,258				1,302				1,372								1,345				1,339				1,279				1,251
	(-)	Cash and cash equivalents		($)			(97	)			(111	)			(168	)							(183	)			(207	)			(128	)			(126	)
	(=)	Net debt		($)			1,161				1,191				1,204								1,162				1,132				1,151				1,125
	(+)	Shareholders’ equity		($)			2,736				2,716				2,754								2,710				2,761				2,659				2,652
	(=)	Total capitalization		($)			3,897				3,907				3,958								3,872				3,893				3,810				3,777
		Net debt		($)			1,161				1,191				1,204								1,162				1,132				1,151				1,125
	(/)	Total capitalization		($)			3,897				3,907				3,958								3,872				3,893				3,810				3,777
	(=)	Net debt-to-total capitalization		(%)			30	%			30	%			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 are useful to understand our operating performance and benchmark with peers within the industry. The Company calculates the segmented “Operating income (loss) before items” by excluding the pre-tax effect of specified items. These metrics are presented as a complement to enhance the understanding of operating results but not in substitution for GAAP results.

							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)
					($)		19		35		89		—		143		14		15		15		—		44		(15)		(11)		(12)		—		(38)		18		39		92		—		149
	(+)	Impairment of property, plant and equipment			($)		21		3		5		—		29		—		—		—		—		—		—		—		—		—		—		21		3		5		—		29
	(+)	Closure and restructuring costs			($)		2		21		10		—		33		—		—		—		—		—		—		—		—		—		—		2		21		10		—		33
	(+)	Litigation settlement			($)		—		—		—		—		—		—		—		—		—		—		—		2		—		—		2		—		2		—		—		2
	(=)	Operating income (loss) before items			($)		42		59		104		—		205		14		15		15		—		44		(15)		(9)		(12)		—		(36)		41		65		107		—		213
Reconciliation of “Operating income (loss) before items” to “EBITDA before items”
		Operating income (loss) before items			($)		42		59		104		—		205		14		15		15		—		44		(15)		(9)		(12)		—		(36)		41		65		107		—		213
	(+)	Depreciation and amortization			($)		73		72		71		—		216		16		15		16		—		47		—		—		—		—		—		89		87		87		—		263
	(=)	EBITDA before items			($)		115		131		175		—		421		30		30		31		—		91		(15)		(9)		(12)		—		(36)		130		152		194		—		476
	(/)	Sales			($)		1,085		1,054		1,054		—		3,193		216		228		231		—		675		—		—		—		—		—		1,301		1,282		1,285		—		3,868
	(=)	EBITDA margin before items			(%)		11%		12%		17%		—		13%		14%		13%		13%		—		13%		—		—		—		—		—		10%		12%		15%		—		12%

“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 are useful to understand our operating performance and benchmark with peers within the industry. The Company calculates the segmented “Operating income (loss) before items” by excluding the pre-tax effect of specified items. These metrics are presented as a complement to enhance the understanding of operating results but not in substitution for GAAP results.

						Pulp and Paper										Personal Care										Corporate										Total
						Q1’15		Q2’15		Q3’15		Q4’15		Year		Q1’15		Q2’15		Q3’15		Q4’15		Year		Q1’15		Q2’15		Q3’15		Q4’15		Year		Q1’15		Q2’15		Q3’15		Q4’15		Year
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				Q2				Q3				YTD				Q1				Q2				Q3				Q4				Year
Pulp and Paper
Segment
Sales			($)			1,085				1,054				1,054				3,193				1,146				1,110				1,092				1,110				4,458
Operating income			($)			19				35				89				143				75				55				54				86				270
Depreciation and			($)			73				72				71				216				74				75				75				73				297
amortization
Impairment of property,			($)			21				3				5				29				19				18				20				20				77
plant and equipment
Paper
Paper Production			(‘000 ST)			785				715				726				2,226				808				806				794				837				3,245
Paper Shipments –			(‘000 ST)			786				752				744				2,282				804				783				779				797				3,163
Manufactured
Communication			(‘000 ST)			657				627				620				1,904				669				653				648				669				2,639
Papers
Specialty and			(‘000 ST)			129				125				124				378				135				130				131				128				524
Packaging
Paper Shipments –			(‘000 ST)			32				29				35				96				35				29				35				28				127
Sourced from
3rd parties
Paper Shipments –			(‘000 ST)			818				781				779				2,378				839				812				814				825				3,290
Total
Pulp
Pulp Shipments(a)			(‘000 ADMT)			369				360				369				1,098				350				345				333				386				1,414
Hardwood Kraft			(%)			6	%			4	%			5	%			5	%			9	%			8	%			8	%			8	%			8	%
Pulp
Softwood Kraft			(%)			69	%			66	%			67	%			67	%			65	%			65	%			65	%			69	%			66	%
Pulp
Fluff Pulp			(%)			25	%			30	%			28	%			28	%			26	%			27	%			27	%			23	%			26	%
Personal Care
Segment
Sales			($)			216				228				231				675				218				216				214				221				869
Operating income			($)			14				15				15				44				10				17				18				16				61
Depreciation and			($)			16				15				16				47				16				16				14				16				62
amortization
Average Exchange			$US / $CAN			1.375				1.289				1.305				1.323				1.241				1.229				1.309				1.335				1.279
Rates
			$CAN / $US			0.727				0.776				0.766				0.756				0.806				0.813				0.765				0.749				0.782
			€ / $US			1.103				1.130				1.116				1.116				1.126				1.106				1.112				1.095				1.110

^(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.

 

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Source: Domtar Corporation

Domtar Corporation
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