Conciliator interrupts the conciliation between UPM Communication Papers and Paperworkers’ Union, conciliation continues in other UPM businesses

Highlights *Fourth quarter 2023 net loss from continuing operations was $21.6 million or $0.12 per share (diluted), compared to net earnings of $2.7 million or earnings of $0.01 per share (diluted) in the third quarter of 2023. For fiscal 2023, net loss from continuing operations was $48.8 million or $0.27 per share (diluted), compared to a net loss of $4.1 million or $0.02 per share (diluted) in 2022 on the same basis. *Average lumber prices for Q4 2023 were lower than Q3 2023, with an average selling price of $611/mfbm compared to $642/mfbm in Q3 2023. There was strong pricing momentum in the first half of Q3 2023 due to supply related concerns, which benefited results at the beginning of the third quarter. Despite lower prices, volumes in Q4 2023 were higher than Q3 2023 due to increased demand in the latter half of Q4 driven by positive trends in US housing starts and the central banks indicating a pause of further interest rate hikes. *The valuation provision for lumber and log inventory was decreased to $4.3 million from $8.7 million at the end of Q4 2022, generating a $4.4 million credit to cost of sales in fiscal 2023. *US Department of Commerce’s (“US DOC”) Final Determination of its Fourth Administrative Review resulted in a final duty rate of 8.05%. The Company stands to benefit from an approximate US$6.9 million (CAD$9.2 million) recovery on duties paid in 2021, as recorded in 2023. Additionally, the ongoing lower duty rate has positively impacted the Company’s earnings and free cash flow since August 1, 2023.

Lecta is pleased to announce the launch of its new ​Termax range of high substance thermal papers, designed specifically for ticketing applications. This new product offering is designed to meet the growing demands for quality and durability for a wide range of applications in admission and access control ticketing for events, transportation tickets, boarding passes, parking lot tickets, data carrier tags for product identification and tracking in the supply chain and logistics and supermarket shelf labels, among others. The new Termax products include Termax TFX (phenol-free) and Termax TFS (BPA-free) papers, available from 105 to 130 g/m2, and the top coated Termax TC30X (phenol-free) paper, available from 115 to 135 g/m2. These papers are characterized by their excellent pre-printing on both sides, and their high thermal image stability and durability.

Effective with shipments May 16, 2018, transaction pricing for the following products will increase approximately 5%-7% in the US and Canada: • Printing and Publishing grades • Domtar Reply Card Rolls and Sheets • EarthChoice® Colors Multipurpose, Hots Text and Cover, Index, Tag and Vellum Bristol • EarthChoice® Opaque Offset 30% Rolls and Sheets • EarthChoice® Tradebook • Husky® Opaque Offset Rolls and Sheets • HuskyJET® Rolls including processed rolls • Lynx® Opaque Ultra Rolls and Sheets • Converting grades • Engineering Laser Bond • Enterprise Postal Advantage™ • Laser Forms Bond including processed rolls and box forms • White Wove Envelope • Business Papers • Business Papers products including all Domtar mill, private label brands and custom cut sheet products • Xerox® Vitality®, Bold Professional™, Bold Digital™ and Revolution™ products. Price increases apply to all pack types; rolls, folio and cut size. All current standard differentials and upcharges remain in effect.