Annual Investor Factsheet

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Annual Investor Factsheet ANNUAL INVESTOR FACTSHEET DOMTAR CONTINUES TO BUILD ON ITS CAPABILITIES AND EXECUTE A WELL-DEFINED STRATEGY TO MAXIMIZE THE VALUE OF EACH OF ITS BUSINESSES. LED BY A STRONG TEAM, DOMTAR IS WELL POSITIONED TO DRIVE GROWTH, RETURN CAPITAL TO SHAREHOLDERS AND REACH THE NEXT STAGE IN ITS EVOLUTION AS A LEADING NORTH AMERICAN PULP AND PAPER COMPANY AND A RECOGNIZED PERSONAL CARE PRODUCTS SUPPLIER. 2019 OVERVIEW SALES BY SALES EBITDA CASH RETURNED BUSINESS SEGMENT (In millions of dollars) BEFORE ITEMS1 TO SHAREHOLDERS Pulp and Paper 82% (In millions of dollars) (In millions of dollars) 725 329 Personal Care 18% 5,455 5,148 5,220 569 563 104 108 2017 2018 2019 2017 2018 2019 2017 2018 2019 SALES BY REGION CASH FLOWS FREE LONG-TERM DEBT, 1 U.S. 71% Asia 7% FROM OPERATING CASH FLOW INCLUDING CURRENT Europe 11% Other 3% ACTIVITIES (In millions of dollars) PORTION Canada 8% (In millions of dollars) (In millions of dollars) 554 359 1,130 449 442 939 267 854 187 2017 2018 2019 2017 2018 2019 2017 2018 2019 1 - Non-GAAP financial measure. For a reconciliation to GAAP financial measures, please refer to earnings in the investor section at www.domtar.com. DOMTAR ANNUAL INVESTOR FACTSHEET 1/4 PULP AND PAPER PERSONAL CARE SEGMENT SEGMENT • Largest integrated manufacturer of uncoated freesheet paper in North America • Recognized manufacturer of quality, cost-effective • Major global producer of softwood and fluff pulp absorbent hygiene solutions • Low-cost, flexible manufacturing asset base • Unique combination of proprietary insights, category management and • Pulp business well-positioned in attractive markets with favorable medium innovation capabilities to long-term outlook COMMUNICATION SPECIALTY AND MARKET ADULT INFANT PAPERS PACKAGING PAPERS PULP PRODUCTS PRODUCTS OTHER Business, commercial Thermal, technical Papergrade, Briefs, professional Diapers, training Other print and publishing and specialty fluff and specialty care, protective and youth pants, absorbency papers packaging papers pulp underwear, pads and bed mats products and underpads 49% 12% 21% 13% 4% 1% of 2019 sales of 2019 sales of 2019 sales of 2019 sales of 2019 sales of 2019 sales 3-5% GDP 1-3% 3-5% 0-2% Long-term Long-term Long-term Long-term Long-term growth rate growth rate growth rate growth rate growth rate MANUFACTURING CAPACITY BY REGION SALES BY PRODUCT CATEGORY PAPER MARKET PULP U.S. 76% U.S. 54% Adult Incontinence 69% Canada 24% Canada 46% Infant 23% Other 8% SALES BY REGION SALES BY REGION PAPER MARKET PULP U.S. 88% U.S. 40% U.S. 52% Canada 8% China 24% Europe 46% Europe 4% Other 16% Asia 1% Europe 11% Other 1% Mexico 7% Canada 2% SHIPMENTS BY GRADE SALES BY CHANNEL PAPER – MANUFACTURED MARKET PULP1 Communication 84% Softwood 54% Healthcare 51% Specialty and Fluff 42% Retail 37% Packaging 16% Hardwood 4% Direct-to-consumer 9% Other 3% 1 Includes pulp shipments to Personal Care DOMTAR ANNUAL INVESTOR FACTSHEET 2/4 PULP AND PAPER PERSONAL CARE SEGMENT SEGMENT CORPORATE OFFICES Fort Mill, South Carolina Montreal, Quebec DIVISION HEADQUARTERS Fort Mill, South Carolina UNCOATED FREESHEET (Annual paper manufacturing capacity in short tons) Ashdown, Arkansas CONVERTING AND REGIONAL (200,000 tons) DISTRIBUTION – ONSITE REPLENISHMENT CORPORATE OFFICES Espanola, Ontario Ashdown, Arkansas CENTERS – CANADA Fort Mill, South Carolina (69,000 tons) Rothschild, Wisconsin Richmond, Quebec Montreal, Quebec Hawesville, Kentucky Windsor, Quebec Toronto, Ontario (596,000 tons) Winnipeg, Manitoba DIVISION HEADQUARTERS Johnsonburg, Pennsylvania (344,000 tons) CONVERTING AND FORMS Raleigh, North Carolina MANUFACTURING REPRESENTATIVE Kingsport, Tennessee (426,000 tons) Addison, Illinois OFFICE – INTERNATIONAL MANUFACTURING Marlboro (Bennettsville), Brownsville, Tennessee Hong Kong, China AND DISTRIBUTION South Carolina (274,000 tons) Dallas, Texas FACILITIES Nekoosa, Wisconsin DuBois, Pennsylvania LOCAL DISTRIBUTION Aneby, Sweden (168,000 tons) Owensboro, Kentucky CENTERS Delaware, Ohio Ridgefields, Tennessee Port Huron, Michigan Buffalo, New York Greenville, North Carolina Rock Hill, South Carolina (95,000 tons) Cincinnati, Ohio Jesup, Georgia Tatum, South Carolina Rothschild, Wisconsin Cleveland, Ohio Toledo, Spain Washington Court House, Ohio (131,000 tons) Denver, Colorado Windsor, Quebec Des Moines, Iowa SALES OFFICES ARIVA – CANADA (642,000 tons) Houston, Texas Bodö, Norway Halifax, Nova Scotia Kansas City, Kansas Bourgoin Jallieu, France MARKET PULP Montreal, Quebec Minneapolis, Minnesota Mount Pearl, Newfoundland Daytona Beach, Florida (Annual pulp manufacturing Omaha, Nebraska and Labrador Tuitjenhorn, The Netherlands capacity in air-dried metric tons) Phoenix, Arizona Ottawa, Ontario Olivette, Missouri Ashdown, Arkansas Plain City, Ohio Quebec City, Quebec Oslo, Norway (586,000 tons)1 Richmond, Virginia Toronto, Ontario Linz, Austria Dryden, Ontario Salt Lake City, Utah (327,000 tons) San Antonio, Texas Madrid, Spain REGIONAL Rheinfelden, Switzerland Kamloops, British Columbia San Lorenzo, California REPLENISHMENT (408,000 tons) St. Louis, Missouri Schwalbach am Taunus, Germany CENTERS – UNITED STATES Stockholm, Sweden Plymouth, North Carolina Vancouver, Washington (390,000 tons) Charlotte, North Carolina Walton, Kentucky Texarkana, Arkansas Chicago, Illinois Wayne, Michigan Wakefield, United Kingdom Dallas, Texas Wisconsin Rapids, Wisconsin CHIP MILLS Delran, New Jersey Hawesville, Kentucky Indianapolis, Indiana Johnsonburg, Pennsylvania Jacksonville, Florida Kingsport, Tennessee Mira Loma, California Marlboro (Bennettsville), Seattle, Washington South Carolina 1 - This reflects an incremental 70,000 tons of softwood and fluff pulp production expected as a result of the closure of a paper machine in November of 2019. DOMTAR ANNUAL INVESTOR FACTSHEET 3/4 At Domtar, our investment in sustainability is rooted in SUSTAINABILITY responsibility, efficiency and engagement. We aspire to foster innovation, reduce risks, enhance brand reputation, PERFORMANCE drive business success and grow shareholder value. 1 View the full report at: HIGHLIGHTS www.domtar.com/en/how-we-work/sustainability-domtar PULP AND PAPER PERSONAL CARE SEGMENT SEGMENT 38% OF FIBER 72% 69% 86% needs were met with renewable energy used in our of pulp and paper mill of manufacturing byproducts certified wood in 2018, pulp and paper mills.2 manufacturing byproducts generated at our personal including 21% from Industry average = 67%.3 were beneficially used. care facilities were beneficially FSC-certified sources. Industry average = 43%.4 used or recycled. 2% REDUCTION An equivalent of 72% 15% REDUCTION 13% REDUCTION in water use at our of the electricity used in in total direct greenhouse in total direct greenhouse pulp and paper mills our pulp and paper mills gas emissions and indirect gas emissions and indirect since 2014. was self-generated. emissions from purchased emissions from purchased Industry average = 55%.3 energy at our pulp and paper energy at personal mills since 2010. care facilities since 2014. 1 - Facts and figures as of 2018. 2 - Net of renewable energy and attribute sales. 3 - 2018 American Forest & Paper Association Sustainability Report. 4 - 2018 American Forest & Paper Association Sustainability Report, Additional Environmental Indicators. ANALYST SHAREHOLDER COVERAGE INFORMATION Bank of America/Merrill Lynch George Staphos Common Stock Investor Relations Domtar Corporation Nicholas Estrela Bank of Montreal Mark Wilde Director, Investor Relations Symbol: UFS (NYSE; TSX) CIBC Hamir Patel [email protected] CUSIP: 257559203 Citigroup Anthony Pettinari To find out more about Shares Outstanding Domtar and its people, D.A. Davidson Steven Chercover UFS: 56,273,429 products and operations, Goldman Sachs Brian Maguire (February 17, 2020) go to: domtar.com KeyBanc Adam Josephson Transfer Agent Computershare Investor Services Raymond James Daryl Swetlishoff North American Toll Free RBC Capital Markets Paul Quinn Number: 1-877-282-1168 Tel.: 1-781-575-2879 Scotia Capital Benoît Laprade www.computershare.com Stephens Mark Connelly 2020 Earnings Release Schedule TD Securities Sean Steuart First Quarter 2020: Thursday, April 30, 2020 Second Quarter 2020: Thursday, July 30, 2020 Third Quarter 2020: Thursday, October 29, 2020 Fourth Quarter 2020: Thursday, February 11, 2021 DOMTAR ANNUAL INVESTOR FACTSHEET 4/4.
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