Domtar Price Increase Announcement

The AF&PA Board of Directors comprises top industry leaders representing a broad spectrum of companies in the paper and wood products manufacturing sector. AF&PA also welcomed 5 new directors: Arsen Kitch, President and Chief Executive Officer, Clearwater Paper Corporation; Charles Hodges, President and Chief Operating Officer, Hood Container Corporation; Dick Carmical, Chief Executive Officer, The Price Companies, Inc.; Mark Ushpol, Executive Vice President, Food & Consumer Packaging, Ahlstrom; Ole Rosgaard, President and Chief Executive Officer, Greif, Inc.

Overview • Record-high 2021 operating income before adjusting items of $2.2 billion; adjusted shareholder net income of $1.5 billion, or $12.16 per share • Fourth quarter of 2021 adjusted operating income of $216 million; adjusted shareholder net income of $155 million or $1.24 per share • 2021 includes impairment charges totaling $294 million or $1.47 per share, resulting in reported operating income of $1.9 billion for the year, net shareholder income of $1.3 billion or $10.74 per share; fourth quarter of 2021 operating loss of $67 million, net shareholder loss of $23 million or $0.19 per share • Completed acquisition of Millar Western Forest Products Ltd.’s (“Millar Western”) solid wood operations and associated tenure located in Alberta, Canada, for $420 million, including an estimated $56 million in working capital, adding 630 million board feet to Canfor’s annual production capacity • Announced sale of Mackenzie forest tenure and sawmill assets for combined proceeds of $70 million

According to the report, total printing-writing paper shipments increased 11 percent in May compared to May 2020. U.S. purchases of total printing-writing papers increased six percent in May compared to the same month last year. Total printing-writing paper inventory levels remained essentially flat (+0.3 percent) when compared to April 2021. Uncoated free sheet (UFS) paper shipments increased 22 percent compared to May 2020 while the inventory level increased two percent compared to April 2021. UFS imports and exports both increased compared to April 2020, up 10 percent and 25 percent respectively. U.S. purchases of coated free sheet (CFS) papers in May decreased 16 percent compared to last May while the inventory level decreased one percent compared to April 2021. CFS imports decreased 14 percent while exports increased 32 percent in April 2021. Coated mechanical (CM) paper shipments decreased 14 percent compared to May 2020 while the inventory level increased one percent compared to April 2021. CM imports decreased 17 percent while exports increased five percent in April 2021. U.S. purchases of uncoated mechanical (UM) papers in May increased 16 percent compared to last May while the inventory level decreased 15 percent compared to April 2021. UM imports increased 10 percent while exports decreased 17 percent in April 2021.