Lecta Announces Price Increase for Coated Web Rolls

Overview * Record quarterly reported operating income of $603 million driven by historically high lumber prices and improved global pulp market conditions; record-high quarterly sales of $1.94 billion * Shareholder net income of $428 million, or $3.42 per share * Net debt of $85 million at March 31, 2021; $225 million repayment of term debt in the current quarter * Cumulative cash deposits of $615 million on countervailing and anti-dumping duties at March 31, 2021

Domtar Corporation reported a net loss of $92 million for the third quarter of 2020 compared to net earnings of $19 million for the second quarter of 2020 and net earnings of $20 million for the third quarter of 2019. Sales for the third quarter of 2020 were $1.1 billion. Operating loss was $136 million in the third quarter of 2020 compared to operating income of $14 million in the second quarter of 2020. Depreciation and amortization totaled $71 million in the third quarter of 2020. Operating income before items1 was $43 million in the third quarter of 2020 compared to operating income before items1 of $15 million in the second quarter of 2020. When compared to the second quarter of 2020, manufactured paper shipments were up 20% and pulp shipments decreased 7%. The shipment-to-production ratio for paper was 105% in the third and second quarters of 2020. Paper inventories decreased by 20,000 tons, and pulp inventories increased by 38,000 metric tons when compared to the second quarter of 2020.

It is well known that Jackson Wijaya, the ultimate and sole owner of Paper Excellence, is the son of the current head of APP. In the early days, Jackson benefited from some experience gained from the family business early in his life, as well as support getting his company started. This is hardly a unique or exceptional circumstance. The situation is entirely different today. Jackson operates his Paper Excellence independently. Many stakeholders and regulators – global funding institutions, regulatory bodies and certifiers, among others – have acknowledged this reality. Paper Excellence’s acquisition of Resolute was extensively reviewed under the Investment Canada Act. As we have expanded our business, we have looked for companies and markets steeped in long traditions and with best practices to share in these areas. Our recent acquisitions of Domtar and Resolute were spurred certainly by undervalued businesses that we believe with meaningful investment can be improved and modernized, but equally by the rich experience and expertise of the leadership, and deep understanding of the norms and values of the markets in which they operate.