Domtar Specialty Papers – Important Pricing Information

Q1/2018 highlights (vs Q1/2017 proforma): • Net sales EUR 572.4 million (EUR 566.9 million), an increase of 1.0%. In constant currency growth was 5.9%, driven by higher selling prices. • Continued good demand across most markets • Comparable EBITDA EUR 66.7 million (EUR 79.4 million), representing 11.7% (14.0%) of net sales in an environment of significant raw material cost escalation • Net profit EUR 21.2 million (EUR 24.2 million).

Canada is home to among the most-sustainably managed forests in the world, global leading forestry innovation and product development, and a workforce that is 230,000 strong and committed to driving a green recovery that will lift rural and northern Canada up. Today, our industry has 140 capital investment projects across the country that are ready-to-go – worth over $1.5 billion. These projects can safeguard and grow Canadian jobs, improve our ability to win on the global stage, and fast-track our move to a net-zero carbon economy by 2050. We look forward to working with the federal government to build a recovery that lasts and one that can chart a new and exciting path for our workforce and forestry communities across the country.”

UPM and the US-based pulp and paper producer Domtar Paper Company LLC have signed an agreement for UPM to acquire the total annual kraft lignin production of Domtar’s Plymouth Mill in North Carolina, USA as of January 2021. This step enables UPM to expand its role in the growing lignin business and different application segments. Following the agreement, UPM will increase its supply of kraft lignin by more than 20.000 metric tonnes annually. Part of the supply will be used to complement the existing UPM BioPivaTM product family. UPM lignin products will be sold globally through UPM’s sales network and are supported by strong technical expertise. “We are very pleased to have agreed this new supply agreement with Domtar. It enables us to expand our lignin business in the growing biochemicals market before the start-up of our Biorefinery in Leuna, Germany,” says Juuso Konttinen, Vice President, UPM Biochemicals.