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Paper Is Here To Domtar annual review Domtar annual A Conversation with Leaders Let’s talk opportunities and challenges Paper in Our Lives Paper communicates, paper is practical and paper is sustainable Listening to the People Building sustainable relationships Meeting Customer Needs Mills, converting and distribution operations that are unmatched PRINT RESPONSIBLY PAPER IS HERE TO WITH DOMTAR PAPER. stay WWW.DOMTAR.COM DOMTAR A N N U A L R E V I E W CLIENT DOMTAR ÉPREUVE NO CLIENT DOMTAR ÉPREUVE NO PROJET Revue annuelle PROJET Revue annuelle DOSSIER NO DO- DATE -- 3 DOSSIER NO DO- DATE -- 6 Express yourself. As North America’s largest integrated manufacturer and marketer of fi ne paper and a recognized leader in environmentally sustainable practices, we believe our customers deserve even more. At Domtar we strive DOMTAR to do everything — from the forest fl oor to your front door — to earn TM your confi dence and your business through the offering of superior colors quality products, dedicated service and continuous innovation. If you’re looking for distinct paper solutions for your printing, publishing or business With its sunny palette communications, look to Domtar to and range of weights and answer your every need. fi nishes, Domtar Colors offers a variety of color choices to impress your audience and express yourself. The Mark of Responsible Forestry SW-COC-002844 © 1996 Forest Stewardship Council A.C. For more information about Domtar, visit us at www.domtar.com CLIENT DOMTAR ÉPREUVE NO PROJET Revue annuelle DOSSIER NO DO- DATE -- 2 to the Earth by Cougar® TABLE OF P. 4 PAPER IS HERE TO PICTURED ON THE COVER: William Sharp Business Analyst, Finance ON THE BACK COVER: Shawn Freeman Senior Analyst, IT Asset Management ON page 4: Marissa Caron Advisor, Investor Relations ON page 63: Bettie Fleming Executive Secretary, Marlboro Mill, SC Editor the to Letter P. 6 2008 GraPHic DESign ANNUAL REVIEW CONTriBUTORS and PrinT PrOducTION ers LD Michel A. RATHIER Pascal BOSSÉ ARDOISE DESIGN Editor-in-Chief Guy BOUCHER COMMUNICATIONS eho Véronique BOUFFARD Montreal, QC, CANADA AK T PRODUCTION NOTES Mary Jean CASHMAN S Paper: Marie CHAMBERLAND DAILEY & Associates, Cover printed on FSC-certified 65 lb. TO Cougar Cover, Smooth Finish. Dominique CUMMINGS West HOLLYWOOD, CA E Text printed on FSC-certified 70 lb. Michel DAGENAIS Cougar Text, Smooth Finish. AG Richard DESCARRIES PHOTOgraPHY Printing: Printed with UV ink throughout on Nicholas ESTRELA an 8-color Heidelberg Speedmaster XL Meredith LAUCKNER Pierre CHARBONNEAU ess 105 with full inter-deck and end-of-press Pierre CREVIER M UV drying systems. Michel MARCOUILLER Printing techniques: Chantal NEPVEU Inside cover and page 1: Bart NICHOLSON PrinTing Printed out of four-color process with Leaders with spot Raised UV Varnish and Lee O’LEARY ANDERSON Lithograph a dot-for-dot dull varnish. Mélanie PAILLÉ Page 30-31: Los Angeles, CA Printed out of four-color process Bérangère PARRY with spot Raised Glitter UV Varnish Norm RITCHIE A Conversation and a dot-for-dot dull varnish. Page 35: Lyla RADMANOVICH Printed out of four-color process with Peter ROSS a spot Raised Sandpaper UV Varnish and a dot-for-dot dull varnish. Razvan THEODORU The material contained in this Annual Brian WESTER Review is provided for information Kathy WHOLLEY purposes only, and should not be interpreted as constituting soliciting material in connection FeaTureS with our 2009 Annual Stockholders Meeting. All relevant information Letter to the Editor from with respect to our 2009 Annual Dr. Derrick de Kerckhove Stockholders Meeting may be found 10 Cert. no. SW-COC-002844 Professor at the University in our 2009 Proxy Statement and of Toronto 2008 Annual Report on Form 10-K. CONteNts 12 14 38 48 The Domtar Paper in A People Meeting Universe Our Lives Business Customer NORTH AMERICA’s lARGEST WHATEVER THE EVOLVING DOMTAR VIEWS ALL ITS Needs INTEGRATED MANUFACTURER USES OF PAPER MAY BE, EMPLOYEES AS A SOURCE A MIX OF ASSETS THAT OF UNCOATED FREESHEET ONE THING REMAINS — OF INVALUABLE KNOWLEDGE OFFER A BROAD PRODUCT PAPER PAPER HAS BEEN, AND LINE TO MEET A VARIETY OF ALWAYS WILL BE, PART 38 OH&S – Smart People = CUSTOMER REQUIREMENTS 12 2008 Financial OF OUR LIVES. Safe People Highlights 40 Listening to the 64 Tailoring Paper, 18 Paper with a Conscience People Just Right. 20 Paper We Can 42 Building Sustainable Transforming newly- Depend On Relationships minted raw materials Premium Printing 24 into finished products 29 Going Digital 32 Publishing Papers 66 Distribution 33 Converting and Made to Deliver! Specialty Knitting close ties with customers 36 Not Pulp Fiction 37 Knock on Wood 4 4 SUSTAINabILITY – 6 8 A HIGH STANDARD 7 0 CONTACT A QUESTION OF BALANCE OF GOVERNANCE INFORMATION Paper has been among civilization’s principal supports DITOR for communication. It takes an E infinity of forms, some as humble E as a tossed coffee cup while others forever remain sacred in the libraries, churches and galleries R TO TH of the world. E TT LE PAPER IS HERE TO DOMTAR ⁄⁄⁄ ANNU A L R E V IE w ⁄⁄⁄ 2 0 0 8 ⁄⁄⁄ 5 By Dr. Derrick de Kerckhove* Professor at the University of Toronto forever paper Since the use of papyrus in ancient Egypt, A lot of people prefer to pay bills on-line, but many still want to see them on paper. Photocopying paper has been among civilization’s principal is here to stay. There is still and there will always be a huge advantage of paper over screen for supports for communication and today it is strictly reading material. With words on paper, we remain in control. We decide what to read and ever-present in our lives. when, and how to interpret the information. On a screen, you have to share the control and the responsibility with a machine. Paper takes an infinity of forms, some as humble as a tossed coffee cup or a simple invoice, while If electronic information is that of “real time”, printed information is that of long time. At the US others forever remain sacred in the libraries, Library of Congress, we will find that their best electronic recording device cannot guarantee electronic archives for more than 110 years. After that they begin to degrade. churches or galleries of the world. Is paper under attack? Yes. Critics have long been lamenting the fact that trees have to meet an In one day, we can run into dozens of different untimely death to publish a book. And the argument against using paper continues to rage. The experiences with paper, from the personal, such as industry is doing its best to respond positively and responsibly to this challenge, which can only a love letter, to the official, like a parking ticket! deepen as the environment settles as a top priority of the economy and for all of society. Not all paper is used to support information, but What is needed is a vision: to recognize the unique properties of paper and see where they best fit much of it is. This is the rub. Information, according a need within the electronic environment. Innovation is invited. In fact, the union between print to many observers, is fast becoming electrons, and electrons has already begun. In the field of information distribution, the electrons are taking on-line, in databanks, in electronic transactions command, not yet in numbers but in the variety of necessary services they offer at low costs for very and, usually, on screen. specific usages of just-in-time information. The numbers are still on the paper side but the margin Information is at the meeting point between two and the aura of electronic communications will continue to nibble at the market. The key will be to worlds, that of words and images fixed on paper, bring about a paradigm change where it will not be paper or electrons but paper and electrons. and that of words and images flying across a In fact, there are already direct links being cre- screen. This piece was written on a screen. It was ated between printed media and the Internet. Information is at the sent on-line to the publisher but, ultimately, the By inserting bar codes in the margins of their reader will see it on paper. Thanks to this method, catalogs, some European retailers allow con- meeting point between this will all happen a lot faster than it would have sumers to access additional information on two worlds, that of back when teachers handed out roneo-typed class key products using their mobile phone or other notes to their students. Many of us remember handheld device. This technology is also being words and images how copies once required a fragile and messy used in some magazines, mainly to complement fixed on paper, and sheet of ink to be made. advertising, and a project is in the works to apply it to books. In the latter case, the reader will that of words and Computer networks, screens and now smartphones access either a bar code implanted on the page are bringing enormous benefits to everybody, images flying across a by the publisher or apply their own bar codes accelerating the processing of information far and fill them with information they download screen. This piece was beyond the speed of paper, allowing people to themselves via their phone. A symbiotic relation- share information in ways never tried before, on written on a screen but, ship between paper and the electronic universe a global scale. So does that mean that the era of if ever there was one! ultimately, the reader paper is over? Of course not. The point is, there is practically always a com- will see it on paper.
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