Description of Domtar's Business Segments

The registrant operates through three reportable segments: Paper and Packaging, Pulp and Tissue, and Wood Products. The Paper and Packaging segment comprises six integrated pulp and paper mills with an annual capacity of approximately 2.2 million tons of uncoated freesheet paper, one mechanical paper mill with a 265,000-ton capacity producing coated, directory, and specialty papers, converting and forms manufacturing operations, and one mill producing packaging materials from 100% recycled content with an annual capacity of about 600,000 tons. This segment also produces fluff pulp at the Ashdown and Plymouth pulp mills and softwood pulp at the Skookumchuck pulp mill, with a combined market pulp sales capacity of approximately 1.4 million metric tons. The Pulp and Tissue segment produces softwood pulp at the Saint-Félicien pulp mill and recycled pulp at the Menominee pulp mill, with a market pulp sales capacity of about 0.4 million metric tons. It operates five mills producing newsprint and specialty papers with a total capacity of 1.0 million tons, and three tissue product facilities with a combined capacity of 128,000 tons and 11 tissue converting lines, manufacturing various tissue products for retail and away-from-home markets. The Wood Products segment owns or operates 13 sawmills in Canada and two in the southern United States, with a total mechanical capacity of approximately 2,616 million board feet. Canadian sawmills produce dimension spruce-pine-fir lumber and wood chips for pulp and paper mills and third parties. U.S. sawmills produce dimension lumber and decking from southern yellow pine and supply wood chips and residues to pulp and paper mills and other end users for renewable energy. This segment also operates two remanufactured wood products facilities, two engineered wood products facilities producing I-joists, and one wood pellet facility.

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Composition of Domtar Corporation Revenues by Segments


Member	7.92 %	of total Revenue
Pulp and Tissue	65.07 %	of total Revenue
Wood Products	29.57 %	of total Revenue
Intersegment Elimination	-2.79 %	of total Revenue
Specialty and Packaging Paper	38.69 %	of total Revenue
Market Pulp Product	42.45 %	of total Revenue
Tissue	6.84 %	of total Revenue
Wood	29.52 %	of total Revenue

Q2 three months ended (Jun 30 2026)
Revenues by Business Segments	Revenues (in millions $)	% (of total Revenues)
Member	139.00	7.92 %
Pulp and Tissue	1,142.00	65.07 %
Wood Products	519.00	29.57 %
Intersegment Elimination	-49.00	-2.79 %
Specialty and Packaging Paper	679.00	38.69 %
Market Pulp Product	745.00	42.45 %
Tissue	120.00	6.84 %
Wood	518.00	29.52 %
Total	1,755.00	100 %

Q2 three months ended (Jun 30 2026)
Revenue Growth rates by Segment	Y/Y Revenue %	Q/Q Revenue %
Member	-	-
Pulp and Tissue	-	-
Wood Products	-	129.65 %
Intersegment Elimination	-	-
Specialty and Packaging Paper	-	-
Market Pulp Product	-	-
Tissue	-	93.55 %
Wood	-	129.2 %
Total	-	4.59 %

Q2 three months ended (Jun 30 2026)
Income by Business Segments	Income (in millions $)	% (Profit Margin)
Member	131.00	94.24 %
Pulp and Tissue	-130.00	-
Wood Products	-1.00	-
Corporate Non Segment	-96.00	-
Total	-56.00	-

Q2 three months ended (Jun 30 2026)
Income Growth rates by Segment	Y/Y Income %	Q/Q Income %
Member	-	-
Pulp and Tissue	-	-
Wood Products	-	-
Corporate Non Segment	-	-
Total	-	-

Annual Report on Domtar Corporation Divisions, Sales by Country


Pulp and Tissue	19.85 %	of total Revenue
Wood Products	13.83 %	of total Revenue
Tissue	3.43 %	of total Revenue
Wood	13.83 %	of total Revenue
Communication Papers	31.66 %	of total Revenue
Specialty and Packaging Papers	18.08 %	of total Revenue
Market Pulp	24.85 %	of total Revenue
Linerboard	3.51 %	of total Revenue
Newsprint	4.65 %	of total Revenue
Paper And Packaging	67.39 %	of total Revenue
InterSales	-1.07 %	of total Revenue
United States	70.59 %	of total Revenue
Canada	10.5 %	of total Revenue
Asia	10.66 %	of total Revenue
Europe	4.97 %	of total Revenue
Other Foreign Countries	3.28 %	of total Revenue

Twelve months ended 2025
UFS s Annual Revenue by Geography and Business Segments	Sales (in millions $)	% (of total Sales)
Pulp and Tissue	1,378.00	19.85 %
Wood Products	960.00	13.83 %
Tissue	238.00	3.43 %
Wood	960.00	13.83 %
Total	6,943.00	100 %
Communication Papers	2,198.00	31.66 %
Specialty and Packaging Papers	1,255.00	18.08 %
Market Pulp	1,725.00	24.85 %
Linerboard	244.00	3.51 %
Newsprint	323.00	4.65 %
Paper And Packaging	4,679.00	67.39 %
InterSales	-74.00	-1.07 %
United States	4,901.00	70.59 %
Canada	729.00	10.5 %
Asia	740.00	10.66 %
Europe	345.00	4.97 %
Other Foreign Countries	228.00	3.28 %

Twelve months ended 2025
UFS s Annual Income by Country and Business Segments	Income (in millions $)	% (Profit Margin)
Total	-804.00	-

Twelve months ended 2025
Annual Revenue and Income Growth by Country and Business Segments	% Y/Y Sales Growth	% Y/Y Income Growth
Pulp and Tissue	-8.74 %	-
Wood Products	-4.57 %	-
Tissue	4.85 %	-
Wood	-4.57 %	-
Communication Papers	-10.87 %	-
Specialty and Packaging Papers	7.54 %	-
Market Pulp	-1.09 %	-
Linerboard	26.42 %	-
Newsprint	-7.98 %	-
Paper And Packaging	-1.02 %	-
InterSales	-	-
United States	-4.89 %	-
Canada	-3.57 %	-
Asia	2.35 %	-
Europe	9.18 %	-
Other Foreign Countries	10.68 %	-

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