SEC Filings | Domtar Corporation
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UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 14A Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934 (Amendment No. ) Filed by the Registrant x Filed by a Party other than the Registrant ¨ Check the appropriate box: ¨ Preliminary Proxy Statement ¨ Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) ¨ Definitive Proxy Statement x Definitive Additional Materials ¨ Soliciting Material Pursuant to §240.14a-12 DOMTAR CORPORATION (Name of Registrant as Specified In Its Charter) (Name of Person(s) Filing Proxy Statement, if other than the Registrant) Payment of Filing Fee (Check the appropriate box): x No fee required. ¨ Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11. (1) Title of each class of securities to which transaction applies: (2) Aggregate number of securities to which transaction applies: (3) Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined): (4) Proposed maximum aggregate value of transaction: (5) Total fee paid: ¨ Fee paid previously with preliminary materials. ¨ Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing. (1) Amount Previously Paid: (2) Form, Schedule or Registration Statement No.: (3) Filing Party: (4) Date Filed: 2012 ANNUAL REPORT MBuaidledlienign eo Furé qfuutiuère in fiber. Together. RDicrehcatrodr ,E C. oMrpuollreante Credit Montreal, QC DVoicme-tParesident Market Development and Analysis Fort Mill, SC THE FIBER of Domtar OuUrR v iVsiIoSnI OisN t,o M beIS tSheIO leNa,d eAr NinD i nVnAoLvaUtiEnSg fiber-based products, technologies, Oanudr smerivssicioesn, icso tmo mdeitltievde rt oth ae shuigsthaeisnta bvlael uaen dto b oeuttre rc ufustoumre.ers, Ttoo eamchpioewvee ro ouur rg eomalps lwoyee wesi ltlo r elxyc eoln, atnhde thor epeo sciotriev evlayl uimesp tahcatt ouunri tceo musm, duenfiitniees u. s, IaTn’dS c IrNea tOe UouRr FsuIBccEesRs TtoOg eBthEer: Agility, Caring, and Innovation. OAuGrI LinEdustry is changing and so are we. When we need to change course, we do it. We are doers, not talkers, but when we act, we act thoughtfully. We’re always looking for simpler, more efficient ways to work. CITA’SR ING OUR FIBER TO BE IWT’eS l oINok O oUutR f oFrI BeaEchR oTthOe rB’sE safety as well as our own. We never forget that our company is woven into the fabric of our communities above all else. WINeN aOlwVaAyTs IlVooEk to the future beyond the horizon. We always want to make things better, and we work together to do it. We bring our resourcefulness and creativity to bear for long-term success. SJeaalnes S Rheaprkresyentative, Ariva Albany, NY PMroarcveisns DAeirm Literaiduesr ,G Aayttends Greenville, NC Every day, Domtar’s 9,300 employees make a difference in peoples’ weh oa rhe abvuei lmdiandge au ss uas lteaaindaebr lien ftuhteu rien dinu swtrhyi cbhy Dthoem sttarre nwgitlhl polfa tyh eair DMiogrgee rt hPaonn edver, fiber is at the center of our lives...and yours. MFoarreiset rCyy arnd Woodyard Manager Ashdown, AR WAsisnidsstaonr,t QSuCperintendent ildiveeass .t hWroourkgihn gth teo qguetahlietry w oift ho uoru pr rcoudsutoctms earnsd, ssueprvpilcieesrs. Iatn’sd ahlosost ocuorm pmeoupnlieties, Bdeycriosniv De orowlee,l lnot as a bystander, but as an active participant. HBalewaecshv Pilulel,p KMYill Supervisor CTroancviee rAtilnegx aDnedpearrtment Rothschild, WI DOMTAR AT A GLANCE iDnocomnttairn eCnocrep poroatdiuocnt s(.N TYhSeE f:o uUnFdSat)i o(TnS oXf :i tUs FbSus) idneessisg inss ,a mneatnwuofarkct uorfe ws,o mrldar-kcleatss, awnodo ddi sfitbriebru ctoesn vae wrtindge vasasrieettsy t hoaf tf ipbreord-buacsee pda ppreorgdruacdtes, ifnlculfuf,d ianngd csopmecmiaultnyi cpautilopns. pTahpe rms, asjpoerictiya lotyf iatnsd p pualpck pargoidnugc ptiaopne riss, caonnds uadmueldt Hinutesrknya®lly O tpoa mquaen uOffafcsteutr,e F piarspte rC ahnodi cceo®n,s uamnde rD pormodtuarc tEs.a rDthoCmhtoairc ies® t.h eD loamrgteasrt iisn atelsgora ate lde amdianrkge mtera rokfe tuenr caonadte pdr ofrdeueschere eotf paa pcoerm ipnl eNteo rltihn eA omf eirnicoa nwtiinthen rceec ocgarnei zperdo dburacntsd sm saurkchet eads Cproimugaarri®ly, uLnydnexr ®th eO Apattqeuned sU®lt rbar,and Cnaommep. aDnyo memtapr loowysn sa papnrdo xoipmeraatteelsy A9r,i3v0a0® p, eao pnleet.w Toork l eoafr nst rmatoergei,c avlilsyi tl owcwatwed.d poampetar ra.cnodm p.rinting supplies distribution facilities. In 2012, Domtar had sales of US$5.5 billion from some 50 countries. The (SInA LmEilSlions of dollars) 150,8 1510 152,612 5,482 (OInP EmRilAliTonINs Gof IdNoCllOarMs)E 366073 592 E10B I1T1D 1A2 (BInE FmOilRliEon IsT oEfM dSol1lars) 719,0983 1,100 N10E T11 D 1E2BT-TO-TOTAL (CAAs PaI TpeArcLeInZtAagTeI)ON1 126 190 11 12 D1 ONMonT-GAARA 2P0 1f2in AanNciNalU mAeLa sRuEreP. OCRonTsult the Reconciliation of Non-GAAP Financial Measures at the end of this document or at www.domtar.com Selected financial figures 2(i0n1 m0 i2l0li1o1n s2 0o1f 2dollars, unless otherwise noted) OCpoenrsaotilnidga tiendc osmale s( l5o,s8s5) 0p e5r, 6s1eg2m 5e,4n8t2 DPuisltpr iabnudti opnap (e3r) 6–6 7(1 568)1 346 WPeorsoodn1a l( 5c4a)r e– – – 7 45 OCpoerpraotriantge i(n7c) o4m (e8 )603 592 367 CNaest he afrlnoiwn gpsr o6v0i5d e3d6 5fr o1m72 operating activities 1,166 883 551 FCraepei tcaals hex fploenwd2i t1u,r0es1 31 5733 91 4341 5236 LTontagl- taesrsmet sd e6b,0t,2 i6n c5l,u8d6i9n g6 ,c1u2r3rent portion 827 841 1,207 TNoeta dl esbhta-rteoh-tooltdaelr sc’a peiqtualiitzya t3i,o2n0 2ra t2i,o927 29 %2, 81727% 16% SWAeLigEhSted average number of common and exchangeable shares outstanding in millions (diluted) 43.2 40.2 36.1 8b0y% business segment 1P3u%lp and paper 7D%istribution SPAerLsoEnSal care 7b5y% region 1U3n%ited States 1C2a%nada EOMthPerLOYEES 6b3y% region 3U1n%ited States 6C%anada 1O tDhoermtar sold its wood business on June, 30, 2010. D2 ONMonT-GAARA 2P0 1f2in AanNciNalU mAeLa sRuEreP. OCRonTsult the Reconciliation of Non-GAAP Financial Measures at the end of this document or at www.domtar.com BMuEilSdSinAgG oEu rT fOut uSrHe AinR fEibHeOr. LTDoEgeRthSer. fTinwaon ctihaol urseasnudlt sa nadre tnweevlevret hwelaess sa ns tiamrtpinogrt aton ts yheoawr itnh eD boemnetafirt’s oevf oinluvteisotnm fernotms wtrea’driet imonaakli npgu lipn aonudr pfaacpielirt imesa,k ienr toou rt rpueo fpiblee,r aindn oivna otourr. fWuteu raer.e still in the early days of this business transformation, but our aLnodo kpirnogfi toaubti laitcyro—ssw 2e0 h1a2v,e w loe tesx teoc ubtee dp rwoueldl ofn. tThhinerges auren daelsr oo usor mcoen atrroeal.s Ownh eorue rw foe uwr iklle yn epeedr ftoor mreadnocueb ilned oicuart oefrfso (rKtsP iIns )2 t0h1a3t ,w gei vmene atshuer er eoturnse olvf esse cbuyl—ar hdeeamltahn adn de scalifnetey i,n c uosutro cmoerer sbautsisinfaecstsi.on, pulp productivity, sWtoeo pde brfeolromwe d1 .w0 eflolr bseiyxo onudt oouf rt wtaerglveet fmoro nhtehaslt,h w ahnidc hs aifse twyo, rwldi-tchl aas sto stafle itnyc pideerfnotr mfreaqnuceen. cy rate of 1.08, the lowest on record for Domtar. This represents a 20% improvement compared to 2011. Moreover, the rate cLyocolikcianlgit yto o pf rpoufiltpa bpirliictiyn gas t hmaet aissu eremdb beyd doeudr EBITDA target (Earnings before Interest, Taxes, Depreciation, and Amortization), after two years of record earnings our financial performance receded in 2012. The pinri coiunrg b aunsdin geosso dc ocnotsrti bcuotnetdr otlo. tAhne dm oavjoeraitlyl, oitf itsh iws oyretahr -uonvdeer-rylienairn dge tchliant et,h be uCt oitm wpialnl yp rgoevniedrea teeadr n$i7n9g9s miolmlioen tiunm E aBsI TthDe Am ianrk 2e0t 1re2c,o wveitrhs. $D3e1s5p imtei ltlhioesne ohfe fardewe icnadshs, folouwr .paper business performed well, with stable oAusr wapep croonactihn.u Te otgoe sthuecrc,e swsefu alrley beuxielcduitneg o ouur rP feurtfuorrem i—n fGibreorw. — Break Out strategic roadmap, I am reminded of an old proverb “If you want to go fast, go alone; if you want to go far, go together.” This is indeed OFU RF SSCU®S TCAEIRNTAIBFIILEIDT YP APPREORM IINS EN OISR ETMH BAOMDEIERDIC BAY, ETAHRET EHVCOHLOUICTIEO NO OWF AOCUCRO EUANRTTSH FCOHRO IOCVEE BRR 2A0N%D O. FC UORURRE TNOTTLAYL K PNAOPWERN SAASL OENSE A ONFD TAH BE ILALIROGNE DSTO,L MLAORSST ICNO TMEPRRMESH EONFS SIVAEL ELSIN. E DTHOEM BTARRA N2D01 I2S A WNENLULA OLN R IETPSO WRTAY TO BECOMING AN OVERARCHING SUSTAINABILITY PHILOSOPHY FOR OUR ORGANIZATION. A pivotal year on our strategic journey HOef aclothucrasree, La ibmigit epda r(t“ oAft tehned nse Extu rcohpaep”t)e,r sc oonf stohlei dDatoemd toaur rs toowryn eirss hoiupr oexf pthane sAiotnte nindtso btrhaen dp eorsno bnoalt hc asried ems aorkf etth.e T Ahtel aanctqiuc.isition of the sister operations of our existing North American Attends business, Attends pTehres osnuabls ceaqruee pnrto adcuqcutiss iitni oan h oigf hElAy Mco mCpoerptiotirvatei oind, uasnt riyn.novative manufacturer of absorbent cores, put us in a solid position to grow the business while giving us levers to further differentiate our full line of cOafm npoutsee, sw teh acto hmapvlee tbeedc oam ke ya nb uinilndoinvgat ibolno chku, bt hfeo rs eat twinidge u rpa nogfe a o gf lcoobnasl uomffeicr ep froord uthcet rPeesresaorcnha la Cnda rde edvievliospiomne nint. Raleigh, North Carolina. It stands to benefit from its proximity to the region’s university research rOesuur lPtse.r sWone aalr eC marea kdiinvgi siinovne satcmcoeunntste tdo fgoro 7w% o oufr DPeormsotnara’ls Ctoatrael bsuasleins,e scsl,o swinitgh ian goona l$ t6o7 dmouilbliloe ne aorfn iEnBgsIT fDroAm itnh i2s0 e1x2i,s toirn gcl obsues itnoe s1s0 %ov eorf tohuer nceoxnts foilvied ayteadr sr uwnh-rialtee lEooBkIiTnDg Afo br aasdeddi toionn faolu brtohl tq-ouna ratecrq u2i0s1it2i ofninsa.ncial WSieg nairfei ccaonmt mdeivtteeldo ptmo emnatsx iimn itzhien gc oarned enhancing the value of our existing assets, and our ongoing transformation involves just as importantly the repositioning and repurposing of pulp and paper operations.