American Forest & Paper Association Releases June 2017 Containerboard Report

Third Quarter Highlights: *Net income from continuing operations of $109 million ($2.44 per diluted share) compared with $84 million ($1.89 per diluted share) in the second quarter of 2022 *Free cash flow3 (non-GAAP) of $114 million compared with $39 million in the second quarter of 2022 *Announced an agreement to acquire an uncoated freesheet mill in Nymolla, Sweden, for an attractive price of 150 million euros (approximately $150 million). Third Quarter Commercial and Operational Highlights: *Price and mix improved by $60 million versus the prior quarter, outpacing energy and input cost inflation *Operations and costs increased $3 million this quarter, while total planned maintenance outage expenses improved by $14 million *Input costs grew by $46 million versus the prior quarter, reflecting energy and input cost inflation

Paige Goff, Domtar’s vice president of sustainability, recently spoke to business leaders at an MX.0Southeast event focused on data-driven, resilient and sustainable manufacturing. She shared more about the comprehensive structure of Domtar’s ESG approach and outlook. When people talk about costs as a barrier to being more sustainable, Goff counters that it’s more expensive to do nothing. “There is an initial investment, but it pays off in the long run,” she says. “Our customers expect us to do the right thing and be responsible stewards of the environment. Our reputational risk is their reputational risk.” Similarly, she says, an effective ESG approach is important for recruiting and retaining talent. The E in ESG gets the most attention, with the emphasis on environmental responsibility and care for natural resources. It’s an area where Domtar has been a leader, particularly in forestry. But the G also plays a crucial role in our ESG approach. Governance is how we connect the dots from senior leadership to the frontlines of manufacturing, Goff says. Our ESG committee includes leaders from across the organization with a diverse collection of roles and responsibilities.

Canada’s lumber industry has been able to survive the impacts of preliminary duties, largely thanks to soaring lumber prices. While industry production will remain virtually flat this year, industry revenues are on pace to grow by 8 per cent, according to The Conference Board of Canada’s Canadian Industrial Outlook: Wood Products Manufacturing – Autumn 2017. “Lumber prices are at their highest levels in over a decade due to a perfect storm of factors, including supply constraints in B.C. from the wildfires this summer, and increased demand from a recovering U.S. housing market and rebuilding efforts in hurricane-affected regions,” said Michael Burt, Director, Industrial Trends, The Conference Board of Canada. “The surging lumber prices are providing a welcome relief from the costs of the lumber duties imposed by the U.S., but this is not likely to last.” Click Read More below for additional information.