Resources Magazine Q1 2014 by Domtar

The magazine for Domtar employees and retirees > Q1 > 2014

Page 2 > Q1 2014 > Resources > Domtar

In this issue

Resources is Domtar’s corporate magazine, bringing stories of agility, caring and innovation to employees and retirees. The magazine is published quarterly with a print circulation of 13,700 copies. Resources is also available on Canopy, the corporate intranet.

DOMTAR

Deadline for the next issue: May 2, 2014

INCIDENT

2013 targ et 1.05

RATE

EXECUTIVE EDITOR Richard Descarries EDITORIAL ASSISTANTS Michèle Benoit Audrey Haustant Bérangère Parry CONTRIBUTORS Tony Bailey, Kelli Beilharz, Allan Bohn, Vanécia Carr, Providence Cloutier, Becky Coushman, Dean Curtis, Richard Descarries, Serge Goyette, Susan Hadaway, Thomas Howard, Patsy Inglis, PierreÉtienne Lamontagne, Véronique Le Berre, Stuart Lister, Paul Mayer, Karen Molloy, Stefan Nowicki, Valeria Oswald, Daniel Shakibaian, Lisa Simchick, Philip Thomas, Craig Timm, Craig Van Asten, Tamara Walsh, Tammy Waters and Kathy Wholley

Threshold 1.12

Making safety history in 2013

Full-year 2013 0.95

Dec. 2013

> Page 6

COVER STORY > Thanks to a great second half, we recorded the lowest full-year average recordable incident rate in Domtar history with a 0.95 Total Frequency Rate (TFR). Read the story by Allan Bohn, Senior Director, Corporate Health and Safety, who is pictured above.

DESIGN Pelican

To request copies to be delivered to a specific site or to notify of changes to mailing addresses, please direct correspondence to: Domtar Attn: Resources Magazine 395 de Maisonneuve Blvd. West Montreal, Quebec, Canada H3A 1L6 resources@domtar.com

Resources is printed on 70 lb. FSC® certified Cougar, a premium paper and member of the Domtar EarthChoice® family, a full line of socially and environmentally responsible papers. This paper contains 10% post consumer recycled fiber and fiber from well-managed forests, independently certified accordingto the standards of the Forest Stewardship Council.

Legal Deposit: Bibliothèque nationale du Québec March 2014 Publication Mail: 40064869 Printed in Canada

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A JOURNEY THAT NEVER ENDS AT MARLBORO > Let’s keep the journey to excellence moving forward in 2014!

DOMTAR AND FIRST BOOK PUT BOOKS IN THE HANDS OF NEEDY CHILDREN > We help bring the power of books to kids in need.

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> Page 25

BUILDING A PAN-EUROPEAN PERSONAL CARE BUSINESS > Members of Personal Care’s leadership team visited Laboratorios Indas facilities in Spain.

ANOTHER SUCCESSFUL TOY DRIVE AT PLYMOUTH > Bringing holiday cheer has become a tradition amongst our Plymouth colleagues.

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WINDSOR MILL RECEIVES ENVIRONMENTAL STRATEGY AWARD > Since 2009, the mill has reduced emissions of greenhouse gases by 32%.

STRONG SUPPORT FOR UNITED WAY AT KINGSPORT > New records were set during the 2013 United Way annual fund-raising campaign.

AN OUTSTANDING ROTHSCHILD MILL LEADER RECOGNIZED > Sherri Selting was chosen in the Wausau Daily Herald’s first ‘‘20 Under Forty’’ program.

Domtar > Resources > Q1 2014 > Page 3

Message from John D. Williams

BUILDING A PLATFORM FOR SUSTAINABLE PROSPERITY W

HEN I LOOK BACK ON OUR 2013 PERFORMANCE, I CAN SAY WITH CONFIDENCE THAT THE DOMTAR GROWTH STORY IS SET FIRMLY IN ITS PATH. WITH A HIGH-PERFORMING PULP AND PAPER BUSINESS AND A FAST-GROWING PERSONAL CARE BUSINESS, OUR TRANSITION TO BECOMING A FIBER-BASED CONSUMER PRODUCTS COMPANY IS IN FULL SWING. THIS WILL BE OUR PLATFORM FOR SUSTAINABLE PROSPERITY.

Our 2013 results show that we are addressing the declining demand in our core business. This can be seen from the fact that Domtar’s sales decreased 1.6% in 2013, despite a much larger 2.5% decline in demand for our core product, uncoated freesheet. With two acquisitions last year (AHP and Indas), Domtar Personal Care continues to gain momentum. We have now completed five acquisitions in this market since 2011, and the division is approaching 20% of our annual sales. New manufacturing lines are being installed that will bring capacity increases and distribution synergies beginning in 2014. This will contribute organic sales growth, which is an important part of our strategy to reach $300-$500 million of EBITDA from absorbent hygiene products by 2017. I’m pleased to report that we ended 2013 with a solid fourth quarter in the Pulp and Paper

business. This improvement was driven by lower maintenance costs, higher productivity in pulp, an increase in average selling prices for paper and pulp, as well as higher paper shipments. But perhaps no number is more meaningful for us in 2013 than our Health and Safety performance, where we recorded our lowest incident rate on record: 0.95. Caring is one of our core values, and we live it by treating each other with respect, looking out for one another’s safety, and promoting wellness at work. We do it because it makes us a stronger, more resilient, and more productive organization. Putting our people first is the right thing to do and the right way to run a successful, global business. I commend each and every one of our 10,000 employees in North America, Europe and China for this collective safety achievement. What we did together in 2013 is a huge accomplishment, and I challenge us to do even better in 2014. After adeptly steering our way through 2013, our priorities this year include execution and cost containment while pushing forward with the building of an integrated, global Personal Care business. This is our path of transition as we continue to write the latest chapter in Domtar’s long history of adapting to shifting market demands.

Creating useful, everyday products is what we do at Domtar. In that regard an evolving product mix is entirely in keeping not only with our strategic vision for our future, but also our shared values of agility, caring and innovation. <

Page 4 > Q1 2014 > Resources > Domtar

Financial news

2013 ENDS WITH SOLID FOURTH QUARTER IN PULP AND PAPER SEGMENT

$68 MILLION

Q4 EARNINGS BEFORE ITEMS

omtar reported net earnings of $65 million ($2.00 per share) for the fourth quarter of 2013 compared to $19 million ($0.54 per share) for the fourth quarter of 2012. Sales for the fourth quarter of 2013 were $1,359 million compared to $1,375 million in the same 2012 period. Excluding non-recurring and other items, the Company had earnings of $68 million ($2.09 per share) for the fourth quarter of 2013 compared to $46 million ($1.31 per share) for the fourth quarter of 2012. ‘‘Our solid results in the fourth quarter were mostly in line with our expectations in all of our businesses. Lower planned maintenance shutdowns and the continued momentum in pulp markets drove quarter over quarter earnings improvement,’’ commented John D. Williams, President and Chief Executive Officer.

2013 RESULTS For fiscal year 2013, net earnings were $91 million ($2.72 per share, compared to $172 million ($4.76 per share) for fiscal year 2012. The Company had earnings before items of $158 million ($4.73 per share) for fiscal 2013, compared to $233 million ($6.45 per share) for fiscal 2012. Sales were $5.4 billion for fiscal year 2013, compared to $5.5 billion for fiscal year 2012.

HIGHER Q4 PULP AND PAPER SHIPMENTS

$169 MILLION FREE CASH FLOW FOR 2013

‘‘In 2013, we continued to transform Domtar’s earnings profile through further acquisitions in Personal Care, strategic investments in the pulp and paper business and the disposal of non-core assets,’’ noted Mr. Williams.

of common stock at an average price of $78.48 per share since the implementation of its stock repurchase program in May 2010. At the end of the fourth quarter of 2013, Domtar had $121 million remaining under this program.

‘‘The recent acquisition of Indas represents a significant step in building out our Personal Care business, and will further help us achieve our goal of $300-$500 million of EBITDA from growing businesses by 2017. We have made meaningful progress towards this goal and the businesses we have acquired so far bring us closer to the lower end of our target. The continued execution of our strategy will drive earnings and cash flow growth in 2014 and beyond.’’

OUTLOOK

LIQUIDITY AND CAPITAL In 2013, cash flow provided from operating activities amounted to $411 million and capital expenditures were $242 million, resulting in free cash flow of $169 million for fiscal 2013. Domtar’s net debt-to-total capitalization ratio stood at 24% at December 31, 2013 compared to 16% at December 31, 2012. Domtar returned a total of $250 million to shareholders through a combination of dividends and share buybacks in fiscal 2013. Domtar repurchased a total of 11,170,506 shares

In 2014, we expect our paper shipments to be in line with 2013, while we expect the market demand for uncoated free sheet to decline with long-term secular trends. Our paper prices will benefit from the implementation of recently announced price increases. We expect softwood pulp markets to maintain positive momentum but new scheduled industry hardwood pulp capacity makes the latter part of the year more uncertain. The Personal Care segment will continue to see earnings growth with the recent acquisition of Indas and with the addition of new production lines towards the end of the year. <

CHECK ON DOMTAR’S STOCK IN REAL TIME DOMTAR CORPORATION (UFS)

Domtar > Resources > Q1 2014 > Page 5

Financial news

Telling the Domtar story DANIEL SHAKIBAIAN > Intern, Investor Relations Domtar House

bout 10 times a year, Domtar issues a media advisory announcing that a member of our senior management will be speaking at an investment conference hosted by a financial institution. The audience at most of these conferences consists mainly of portfolio managers and financial analysts who work for so-called institutional investors – financial firms that manage large pools of money for mutual funds, pension plans and the like. You may wonder what goes on at these events and what their value is to Domtar? First of all, the mere fact that Domtar executives are invited is a good thing. It shows that the financial community is interested in our industry and particularly in hearing Domtar’s story. From the company’s perspective, the value

of attending an investment conference goes well beyond the actual presentation by our President and CEO John D. Williams or our Chief Financial Officer Daniel Buron. The presentations usually take 45 minutes to one hour, including a question and answer period. However, there is much more to their day than the time spent doing the actual presentation.

TELLING THE DOMTAR STORY TO AS MANY INVESTORS AS POSSIBLE IS AT THE CORE OF THE INVESTOR RELATIONS MISSION.

PRIVATE MEETINGS When Domtar executives are not presenting to the conference, they are speaking privately with institutional investors who own Domtar stock or those who are potential shareholders. Sometimes the meetings are with a single individual, but usually they are with two or more. These meetings are held in a room at the conference venue. The discussions generally last up to an hour and then it’s quickly on to the next meeting. Before you know it, a full day’s work is done. For institutional investors, these meetings with senior management are a necessary step in their

due diligence process. They are looking to assess Domtar’s corporate strategy, market conditions and future financial performance. Domtar’s executives, for their part, are trying to put the company’s best foot forward while also listening very carefully to what their hosts have to say about Domtar’s positioning and prospects.

RECTIFYING FACTS As appropriate, Mr. Williams and Mr. Buron may be able to rectify errors and misconceptions. These face-to-face discussions may even result in tweaks to Domtar’s message. Arguably, these discussions with portfolio managers and financial analysts may be more important to Domtar than the formal presentations at the conference itself. Following these private meetings, Domtar’s institutional shareholders may decide to buy more stock, hold on to what they have or even to sell. Those who aren’t shareholders may be convinced to invest in Domtar by purchasing stock.

INVESTOR OUTREACH Another benefit of attending investment conferences is that they are held in different cities across North America. This allows Domtar management to expand shareholder outreach and target investors in different financial hubs. Telling the Domtar story to as many investors as possible is at the core of the Investor Relations mission. Presentations to investment conferences and face-to-face meetings with small groups of institutional shareholders and potential investors are key components of successful communication. You can view PowerPoints of Domtar’s investor presentations on our web site in the Investors and Media section. <

Page 6 > Q1 2014 > Resources > Domtar

Cover story

2013 SAFETY SUCCESS

ANOTHER STEP TOWARDS WORLD-CLASS PERFORMANCE ALLAN BOHN > Senior Director Corporate Health and Safety Fort Mill Operations Center

ur 2013 health and safety performance was excellent. Thanks to a great second half, we recorded the lowest full-year average recordable incident rate in Domtar history with a 0.95 Total Frequency Rate (TFR). It also marked the first time our annual TFR was below 1.00. This is a 14% improvement over our 2012 performance and 10% better than the 2013 target. The positive result included working eight out of 12 months below a 1.0 TFR. For the last five months of the year, our TFR averaged 0.75. In all, there were 13 fewer recordable incidents compared to 2012. Key to our 2013 safety success was the fact that we ended the year with the fewest incidents in a quarter, an impressive achievement, especially for the fourth quarter. Hopefully, we have broken the previous pattern of poor safety performance in the last three months of the year.

Our 2013 TFR speaks volumes about the leadership and hard work that has been put forth day in, and day out, by employees. Enough canâ&#x20AC;&#x2122;t be said for those sites that went through the year injury-free and those that maintained excellent performance or made significant improvements compared to 2012. Thanks to this performance, Domtar is a safer company to work for. After significant improvements in consecutive years, we have taken another step towards world-class safety performance. These are reasons for pride and celebration. â&#x20AC;&#x192;

2013 SAFETY HIGHLIGHTS > Manufacturing and the mill system achieved record low incident rates of .95 and 1.05, respectively. The mill system had five sites with performance below 1.00 TFR and one site (Marlboro Mill) completed the year incident-free. The converting group tied their best-ever total number of incidents with five and a TFR of .83. Six of the 10 sites were incident-free for the year.

RECORDABLE INCIDENTS - TOTAL FREQUENCY RATES 2013 PULP & PAPER MILLS CONVERTING AND FORMS PLANTS

> Personal Care ended the year with eight

total incidents. Each individual site met their target for number of incidents, which is significant given the amount of change and activity at these sites. Ariva Canada ended 2013 with three of six sites incident-free. However, with five recordables for the group, they did not meet their target for the year due to a difficult fourth quarter that followed eight consecutive incident-free months.

COMMON INJURIES An examination of our incidents continues to show that those involving hands and fingers, as well as soft tissue musculoskeletal incidents, lead the way in frequency. Hand and finger injuries continue to be the most prevalent throughout the company, accounting for about 38% of all injuries in 2013. The majority of 2013 incidents occurred due to slips/trips/falls, sprains and strains, pinch points, mashes and being struck by or against.

YTD

0,95

0,66

0.00

YTD

1,01

1,33

0.80

0.83

1.29

0.00

0.78

1.05

1.36

0.81

1.20

2.00

PULP & PAPER MANUFACTURING (Mills, Conv. & Office)

YTD

Domtar > Resources > Q1 2014 > Page 7

Cover story > Develop internal expertise and leverage

SAFETY EXCELLENCE Where do we go from here? It is a known fact that with safety the only destination is continuous improvement. Our collective challenge – for both leaders and all employees – is to keep moving forward towards world-class performance and instilling a ‘‘Domtar culture of safety excellence’’ that will keep our people safe in the workplace. Creating such a culture requires strong leadership and highly engaged employees. It requires employees to go beyond compliance with rules. Compliant behavior is an important building block and the minimum we require from our employees. We have to continue to build a sense of shared purpose, where our employees’ “want-to” exceeds their “have-to”. Creating a Domtar culture of safety excellence also requires employees to take ownership and to think and act with intent in safety as they do in all other aspects of their work. It means having our employees’ hearts and minds engaged in making Domtar a world-class leader in safety. The 2103 safety results marked another step towards our goal of reducing incidents and injuries that affect the lives, productivity and well-being of our employees. With our workforce participating, we continued on our journey to excellence.

> Quickly integrate best practices for high-

industry-leading practical skills to reduce our exposure to hand and finger injuries • Initiate HandSMART training at several facilities and develop a cadre of “Train-the Trainers” across all business units.

> Improve sharing of key safety learnings across the organization • Ensure all best/good practices are summarized and entered into a new system-wide database.

risk work, processes, identified deficiencies – across divisions – corporate safety expectations • Mobile equipment / employee interaction, hot work, incident investigation, contractor management, site security best practices, among others.

> Domtar audit protocol improvements and

> Re-establish and improve routine reporting of severity. Make this aspect important. • Develop and begin reporting on systemwide incident severity. Note changes in severity on an ongoing basis. • Improve statistical analysis of safety metrics and raw incident data.

integration, specifically in the Personal Care division • Understanding expectations and training • Hold auditor /incident investigation training session • Ensure division focus items accounted for in audit • Continuous improvement in protocol elements – culture assessment

PURSUIT OF SAFETY > Make near miss reporting a higher priority in 2014 • System-wide training and inclusion of near misses and corrective actions resulting from near misses as key metrics in the Leading Safety Indicators. • Remove barriers to reporting and ensure corrective actions are meaningful. • Capitalize on our Joint Health & Safety Committees to further this cause.

Our business and safety goals are one – performance excellence. In both pursuits, we are seeking to create a culture where people want to excel and are excited to add value. That is the essence of a culture of safety excellence, a state of mind in which employees give safety their full attention, day in and day out. Our objective is to root that culture in 2014. Stay safe! Stay engaged! Be safety leaders in 2014! <

MOVING FORWARD Many activities are on the slate for advancing our objectives in 2014. Among them are an E-learning training series called Domtar Culture of Safety Excellence to be rolled out starting in the second quarter, initiatives to reduce hand and finger injuries, improvements to safety reporting and many more. Specific activities include the following:

YTD

0.95

12 month avg - .95 0.71

1.17

YTD

0.89

1.10

1.04

1.02

0.42

0.00

1.01

1.66

3.58

DOMTAR

2.21

PERSONAL CARE 5.22

ARIVA CANADA

YTD

Page 8 > Q1 2014 > Resources > Domtar

Safety & Wellness

Ashdown > Best year ever for safety in 2013 “I am so proud of our team for achieving such an impressive milestone. I know it would not have become a reality without the ongoing commitment and dedication of our entire team,” stated Bob Grygotis, mill manager.

TAMMY WATERS > Manager, Communications and Government Relations Ashdown Mill

he team at the Ashdown Mill has reason to celebrate. It is official, 2013 was the mill’s best recorded safety year to date, ending at a .78 incident rate (IR)! With this achievement, the mill surpassed the IR goal of .96. To put this accomplishment into perspective, the mill had eight recordables in 2013 and 25 in 2010 – a positive trend for sure! Prior to this record, 2012 was Ashdown’s best year with a 1.05 incident rate. In addition, the mill only had two recordable injuries last year from July through December – the lowest number for this time period in the mill’s history!

Moving forward, employees are focused on the 2014 goal – a .78 incident rate – where they ended this past year. In the words of Bob Grygotis, “I believe with the same level of focus we can well surpass this goal, driving our safety number to the ultimate goal – zero injuries!” The mill management team is encouraging employees to continue keeping a keen focus on safety in every task performed, stay involved (Hazard Mapping, SafeStart, Safety Committees, etc.), and continue to watch out for their coworkers’ safety daily.

Congratulations to the entire Ashdown Mill team on this accomplishment and for their strong commitment toward making the mill world-class in all areas. They are looking forward to reaching and celebrating new milestones together in 2014! <

To acknowledge the “best safety year” accomplishment, mill employees enjoyed a celebratory barbeque feed in January.

Nekoosa > An amazing accomplishment DEAN CURTIS > Manager, Purchasing & Stores Nekoosa Mill

very time I see the scar on my hand, I think back to my college days and my part time job in a lumberyard. They sat me on a forklift, told me which levers made the forks go up and down, and tilt back and forth, and that was it. My scar comes from when I was opening a box of paint cans and stuck the knife into my hand. That story leads me to an outstanding safety accomplishment in the Materials Department at the Nekoosa Mill. Department employees have worked over 4,100 days without a recordable injury. During every

one of those days, employees from the Service Crew were moving totes of chemicals and other items with forklifts. Employees from Receiving were opening boxes and other packages. Employees from the Stores were lifting things and putting them on shelves. Office employees in Materials were out in the pulp mill, the paper mill, the wood yard and the power area conducting safety audits, examining purchased materials and assisting their internal customers. For the Nekoosa Materials Department, safety really is Job No. 1 ! Now, when I see that scar on my hand, it also reminds me how safely these employees have worked over the past 11 years. What an amazing accomplishment! <

General Manager Mark Bessette (right) congratulates Materials Department employees on their milestone. (Back row, left to right): Dean Curtis, Ed Saylor, Bill Harry, Bob Nash, and Doug Dillman. (Front row) Tom Rayome, Tim Czappa, Deb Brandl, Lana Fredette, Jody Patrykus and Joanne Keyzer. Missing from the photo are Randy Livernash and Greg Ubinger.

Domtar > Resources > Q1 2014 > Page 9

Safety & Wellness

Washington Court House > Two calendar years without a recordable KAREN MOLLOY > Accounts Payable Specialist Washington Court House Converting

mployees of the Addison Converting and Distribution Center celebrated 1,200 consecutive days injury-free with a Thanksgivingthemed lunch on November 26 last year. Special guest Christine Bishofberger, Regional Director Human Resources, on hand to help mark the occasion, took this picture. <

he D Team at Washington Court House hung a banner in recognition of the safety slogan voted for 2014 – “Safety Comes in ‘Cans’: I Can, You Can, WE Can!” This slogan is being printed on employee T-shirts for 2014 and was submitted by Kathy Thompson, an operator on D Team. The vote on the new slogan followed on the heels of our two full calendar years without a recordable injury milestone, reached on December 1, 2013. This achievement reflects the focus of employees on safety, participation in pre-lift and pre-task risk assessments, reporting of near misses and involvement in various safety challenges in 2012 and 2013. All employees received Domtar hoodies in recognition of this safety milestone. “Congratulations to the entire team,’’ said Rob Bailey, Director of Converting Operations. This could not have been accomplished

Addison > 1,200 consecutive days injury-free

Kathy Thompson proudly hangs the banner with her safety slogan on it. without strong leadership and involvement by everybody in the plant.” <

Rothschild > “Back-to-back” safety performance BECKY COUSHMAN > Business Relations Coordinator/ Executive Assistant Rothschild Mill

he Rothschild Mill had a recordable incident rate of less than 1.0 for 2012. This was a significant accomplishment since the mill had been challenged by “saw-tooth” safety performance in previous years. At the beginning of 2013, the mill set a goal of achieving “back-to-back” safety performance. The achievement was met with a recordable incident rate of less than 1.0 and no lost-time incidents in 2013!

This performance has taken everyone’s focus, hard work and dedication. Among activities that played a part in achieving this goal, leading indicators such as risk assessments, observations and the filing of hazardous condition reports all increased. Other activities included monthly safety challenges, safety focus weeks and a special deer hunting “Fill Your Tag” event. The mill celebrated with a steak feed in January. In 2014, the mill’s focus is on “Doing the Basics Perfectly” to continue keeping people safe and injury-free at the end of the day. < Left to right: Mary Fandrey, Larry Adamus and Tom Kittel at the Paper Department’s steak celebration.

Page 10 > Q1 2014 > Resources > Domtar

Safety & Wellness

Richard Penn proudly displays his “Safety Jeopardy Champion Trophy” with Anna McFarland, event coordinator, and Philip Thomas, game show host.

Ashdown > Games promote safety PHILIP THOMAS > Expert Engineer Ashdown Mill

he Ashdown Mill’s safety activity challenge got off to a great start in 2014 with events presented by the mill’s Engineering department. The activities for the month were based on their slogan, “Don’t Play Games with Safety”. The main event for the month of January was a safety game show designed to find the “Smartest Safety Employee” in the mill. The competition featured representatives from each mill department and the game show winner was crowned champion. The winner received prizes including a trophy, a prime mill parking spot, a gift card and a luncheon for their area. There was a lot on the line for each participant. The competition started with a true/false elimination round that focused on mill rules and safety performance. Three employees went on to a final round called “Safety Jeopardy”. In the tradition of Alex Trebek of Jeopardy fame, Philip Thomas, expert engineer, was the host.

The contestants – Steve Hancock, entry level engineer, Toby Gathright, maintenance and Richard Penn, maintenance – had to provide questions to the presented answers about many mill safety rules and regulations. The contest was close and the “Final Jeopardy” round made the difference, with Richard being crowned the Safety Jeopardy Champion. Congratulations to Richard who was representing the pulp maintenance team. There were many winners for the day with “Let’s Make a Deal” mini games occurring between rounds to involve the audience members. The audience also included 40 students from Ashdown High School who learned a lot about an industrial setting and the importance of safety. The students also assisted by filming the event as a school project. A highlight of the event was when contestant Karen Lewandowski, Purchasing, explained to the audience why she worked safely every day and the important reminders that she carries with her on her key chain. The Accounting department had the most demonstrative fans, who cheered loudly in support of their representative and even made signs. Audience

spirit was tremendous and everyone had a great time. Other game-themed activities during the month included Safety Aware Bingo, Healthy Living Crossword Puzzle and an Eating Right Word Search. Anna McFarland, entry level engineer, led the effort for the engineering department and did a great job of kicking off the year on this positive note. The Safety Activity Challenge is sponsored by the Safety Wellness and Activity Team (SWAT) of the Ashdown Mill and is a yearly competition between 12 areas of the mill to crown an annual safety activity champion. The engineering department started the year on a positive note and set the bar high to try to dethrone the wood procurement group, which won the 2013 Safety Activity Challenge. <

Domtar > Resources > Q1 2014 > Page 11

Safety & Wellness

Ariva > Safety training in Mississauga SERGE GOYETTE > Health & Safety Specialist

afety training is ongoing at the Ariva warehouse in Mississauga, Ontario. In December 2013 and the beginning of this year, the training was focused on musculoskeletal disorder (MSD) prevention, including signs and symptoms, hazard identification, assessment and controls. The two-hour sessions featured classroom presentations, including videos, followed by practical training in proper lifting methods on the warehouse floor. The sessions were led by Rachel Mitchell, a registered kinesiologist from Altum Health. Safety was also a consideration as part of the installation of a new racking system when Ariva downsized the warehouse space by nearly 50% to 110,000 sq. ft. With the new system, the three lower storage levels are accessible by the order filler from the floor. These aisles mainly consist of smaller products that can be picked from the racks without a

Rachel Mitchell promotes MSD prevention in the classroom and on the warehouse floor.

forklift, thereby increasing efficiency. New labeling allows our products to be stored in their designated areas without exceeding the maximum capacity of the structure. The new

system also promotes better housekeeping and a safer work environment for the 18 warehouse employees. <

Nekoosa > Rigorous process helps protect hearing CRAIG VAN ASTEN > Manager, Safety & Health Nekoosa Mill

he Nekoosa Mill has implemented a hearing conservation program to protect employees from hazardous noise exposure and prevent Standard Threshold Shift (STS) recordable cases. Implementation was carried out over a two-year period and followed a rigorous process.

We began in 2012 with a mill-wide, position specific noise monitoring. Each position in the mill went through 24 hours of noise monitoring so that we could accurately determine an eighthour time weight average (TWA). From there, we developed an attenuation diagram to help ensure that each employee wears the correct ear plug in order to safely attenuate noise levels on their job. In cases where we could not properly attenuate noise levels, a 3M ear plug fit tester was used to quantitatively measure true noise attenuation. This device ensures that the selected ear plug protects the employee. Lastly, we used electronic noise cancelling ear muffs, which offer a passive noise reduction rating of 26 decibels and, thanks to the electronic noise cancelling system inside, have an active noise reduction rating of 20Â decibels.

The Nekoosa Safety Department used a dosimeter to determine noise exposure levels for each job position in the mill. Having accurate data helps to ensure that employees are properly protected from hazardous noise in the workplace. We are proud to say that since the completion of this project, we have not experienced any recordable STS cases at Nekoosa. More importantly, we are preventing long-term hearing loss in our employees, and thatâ&#x20AC;&#x2122;s what we truly care about. <

Page 12 > Q1 2014 > Resources > Domtar

Papers

Paper Machine and Pulp Dryer functional team

Marlboro > A journey that never ends THE MARLBORO TEAM > Marlboro Mill

t the Marlboro Mill, every year is part of a journey. As each New Year rolls around, we are encouraged to up the pace to achieve continuous improvement in safety, quality and reliability. Throughout each annual journey, we are guided by Mill Manager Bill Edwards’ philosophy: “Do the right thing and everything else will take care of itself.” He believes that by applying this philosophy correctly to reliability, quality, safety and talent development, the results can be a culture of teamwork, engagement, innovation, continuous improvement and the agility to adapt to changing priorities and business needs. Last year, the Marlboro team faced some big obstacles right from the get-go. Between the start and finish lines of a paper machine

rebuild in January and hosting Domtar’s Board of Directors in December, there were many challenges, changes and achievements. Along the way, the mill passed a number of significant milestones and ended the year with an all-time safety record.

CHALLENGING COURSE As part of the 15-year Domtar/Appvion agreement, the Marlboro Mill was selected to manufacture a product it was not originally designed for. To position the mill to produce the Appvion thermal grades, the paper machine had to undergo a major rebuild and the winder and roll handling process needed upgrades as well. The rebuild and upgrades took place last January during the mill’s annual maintenance outage. In addition to the standard tasks of an annual shutdown, the Marlboro team was challenged with the task of transitioning the paper machine from manufacturing a commodity to a specialty product.

For the new thermal grades, the necessary reel trim to produce two 163.5” wide finished rolls had to be 330”. This was far from its original design to produce copy paper with a 327” reel trim. In addition, since some of the thermal grades are half the basis weight of business papers, they require a much better CD basis weight profile and are far more sensitive to any type of sheet defects. To address the width and profile requirements, the team installed a new dilution control headbox that was approximately two inches wider. The headbox also helped improve the edge quality. A major rebuild of the dryer section was also completed, which included converting the 4th double felted dryer section into a single felted unirun section by drilling and grooving the bottom dryer cans and adding vacuum to them. New state-of-the-art blow boxes were installed in several dryer sections. These changes improved

Domtar > Resources > Q1 2014 > Page 13

Papers many obstacles to overcome. In addition, there were some reliability issues across the mill that slowed the pace of the team’s efforts to meet the new operating targets. That didn’t stop the Marlboro team from stepping on the gas and moving full speed ahead. Within less than a week after the rebuild, the mill was producing quality paper and gaining momentum each and every day. Chris Gore, Pulp & Utilities Manager, stated, “We lost momentum after the maintenance outage, but in April it seemed like nothing could stop us.”

Headbox runnability, increased sheet width, reduced edge defects and overall sheet defects. An air turn was installed after the size press to provide gentler sheet handling. Five new dryer felt cleaning showers were installed on the unirun felts plus a ropeless threading system. To help reduce sheet defects, a new thin stock screening system was installed and improvements were made to the web inspection system and winder communication system to allow for efficient patching of defects. Over 1,500 contractors and employees were on site during this work. By the time all was done, Marlboro had experienced its busiest and longest maintenance shutdown in recent history.

GAINING SPEED Coming out of a long shutdown held in chilly January, many challenges and changes were experienced around the mill. As with any major rebuild, there is a steep learning curve and

Humidity controller core handling system

All the grade development work continued and the rebuild delivered on its promises. Appvion set production records in both April and May, surpassing their previous record that went back to 2011. Additionally, the paper machine set a record of 8 days, 6 hours and 25 minutes in November for length of time with no downtime. The old record was 6 days, 23 hours and 4 minutes set in 2009. In the midst of everything, new core handling and roll handling systems were installed. To handle the large 16” diameter 160 lb. cores required for the Appvion grades, a new “one-of-a-kind in the world” auto core handling system was put in place. In addition, the first-of-its-kind in North America roll handling system was installed to handle the 163.5” wide rolls that weigh 16,000 lbs.

DOING THE RIGHT THINGS For the Marlboro team, the transition to thermal paper grades was not the only challenge of 2013. As in every previous year, a successful journey requires doing the right things and doing them well throughout the course. Giving back to the community has always been a core value for the mill and last year was no different. Activities included a lakeshore clean-up by our EarthChoice Ambassadors, a reading program for over 4,000 school-aged children (Reach for the Highest Branch), a donation campaign for the American Cancer Society and the American Heart Association (Dump-the-Cup), proactive safety challenges for employees to benefit the local food bank and Habitat for Humanity, and a Christmas gift drive for underprivileged children. The mill also hosted a Junior/Senior tour for six local high schools and a Manufacturing Day event for community leaders. The mill also hosted the Paper Machine and Pulp Dryer Functional Team meeting as well as the Metso Annual Papermaking School. Throughout the year, over 15 mill tours were given to major customers and internal employees.

To end the year, the mill hosted Domtar’s Board of Directors and the Senior Management Committee. We gave our guests the full Marlboro experience, including a close look at the recently converted paper machine. One director was quoted as saying, “I would have paid money for that tour.”

CRITICAL LEG The most critical leg of the annual journey is ensuring employee safety. The mill strongly believes that the goal of each day is for every person to return home safely to their family. With programs and events such as Take-Two, Spot-the-Hazards, Proactive Safety Contests, Health Fairs, Risk Assessments, critical reduction techniques, safety training, sharing best practices, among others, the mill negotiated safety hurdles like never before. In July, Marlboro celebrated 365 days with no recordables. The mill was recognized in September at the annual Mill Manager’s meeting with numerous safety awards, including the inaugural Tom Detwiler Safety Pinnacle Award, given to the Domtar mill with the best overall safety performance for the year. In October, Marlboro surpassed Domtar’s and the mill’s record of consecutive days with no recordables and crossed the finish line by ending 2013 with its first ever calendar year with no recordable incidents. On December 31, the mill was at 521 days with no recordables. As Bill Edwards sums up, “I can’t say enough about the efforts of the Marlboro team in 2013. There is a lot to be proud of, but to get through all that we went through as successfully as we did without a safety recordable is something that we all can feel very good about. This only happens by having a team of folks that work well together, are dedicated professionals and come to work every day with the right attitude. Let’s keep the journey to excellence moving forward in 2014!” <

Bread of Life donation

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Papers

Windsor > A concerted effort to meet environmental standards Specific and targeted actions were taken for each of the categories but, despite seeing some improvements, the results were always temporary and the initial problem would recur. We persevered, continuing our attempts until we got to the root of the problem.

PIERRE-ÉTIENNE LAMONTAGNE > Maintenance Engineer, Steam & Recovery Windsor Mill

n recent years, the Windsor Mill was experiencing a gradual increase in the average opacity of the gas exiting its recovery boiler, despite a lower production rate.

BLACK LIQUOR FIRED 5,400

The diagram below shows the improvement. The more green dots there are, the higher the production rate.

5,300

5,250

Nov 13

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OPACITY 27.5 25.5 23.5

19.5 17.5 15.5

40 35 30 25 20 15 10 5

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Opacity (%)

21.5

21/01/13

5,150

Mar 10

5,200

FIC5171.PV / AI5058e.PV | Black liquor vs opacity ratio avg/hour (CALC) ICP level

BL Firing (Kg/min)

5,350

The main problem proved to be air speed and distribution. On November 18, 2013, during a planned sectorial outage, we worked on as many aspects impacting opacity as we could. It was then that we discovered a major obstruction in the ducts connecting the boiler to the precipitator. This was the last piece of the puzzle. These important elements combined with all the improvements we made along the way enabled us to restore the production rate.

Date Nov 13

Sep 13

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In the spring of 2013, the situation deteriorated and the mill was forced to reduce pulp production in order to meet environmental standards related to recovery boiler stack opacity. The response was to set up a cross-functional working group in August 2013 to identify the root cause and resolve the problem. The team used Kaizen tools to define the overall problem and find ways to solve it. Mapping the entire process allowed the team to group all of the elements that could be impacting opacity into six precise categories. We then drew an interrelationships diagram for these categories and performed multi-variable analyses using BrainCube software, which led to the development of an action plan based on the results of our work.

Air Control Liquor Firing

Pulp Washing Opacity

Precipitator Efficiency

Liquor Chemistery Scrubbers Efficiency

In the spirit of continuous improvement, we established a key performance indicator allowing us to monitor performance in terms of air emissions in relation to the production rate of the recovery boiler. Finally, we took actions to ensure sustainable long-term performance. The result of our efforts underlines the importance of tackling a complex problem holistically, in order to make sure that our approach integrates all of the elements that could have a role in finding the solution. A special thank you goes out to team members André LeBlanc and Sabryna Vachon as well as to all those who played a part in the success of our undertaking. <

Domtar > Resources > Q1 2014 > Page 15

Papers

Domtar at PaperWeek 2014 Mr. Williams took time to visit the Domtar booth and chat with Mylène Boisvert and Martin Lorrion, Vice-President Manufacturing, Region 1.

RICHARD DESCARRIES > Manager, Communication Services Domtar House

aperWeek Canada 2014, hosted by the Pulp and Paper Technical Association of Canada (PAPTC), held its 100th anniversary conference in Montreal on February 3-6, 2014. This annual event attracted more than 1,100 pulp and paper professionals from all over the world. Business sessions and technical presentations dealt with such topics as industry transformation, R&D including biorefining, packaging trends, reliability, workforce renewal and industry recognition, to name but a few.

Numerous keynote speakers addressed the conference, including our President and CEO, John D. Williams. Speaking to a capacity audience, Mr. Williams presented Domtar’s roadmap for the future, acknowledging both the importance of our pulp and paper roots and expertise, as well as the necessity of the transition to fiber-based consumer products.

We also hosted a wireless-device-free “Paper Hotspot” at the conference’s trade show – an engaging reminder of paper’s enduring value in our digital age. <

Recognizing stand-out achievements in the industry is an important part of PaperWeek and this year was no exception. Our Windsor Mill was honored at the annual luncheon awards for its environmental strategy (see story below). Domtar’s presence at the event was manifested in other ways as well. Our booth at PaperWeek’s job fair allowed Domtar representatives to greet students and discuss employment opportunities with them.

These are some of the students who stopped by the Domtar booth and spoke to Domtar’s Mylène Boisvert, left.

Windsor Mill receives environmental strategy award PATSY INGLIS > Head – Process and Environment Windsor Mill

he Windsor Mill received one of the three national Business Awards handed out during PaperWeek Canada 2014, the Environmental Strategy Award. This prize is in recognition of the highest level of leadership and engagement with respect to environmental protection in the Canadian pulp and paper industry. We received the award by demonstrating the positive impact of the actions taken by our employees towards sustainable growth and environmental protection. Since 2009, the mill

has reduced emissions of greenhouse gases by 32%, the equivalent of taking 9,000 cars off the road yearly. In water quality, we proved that our performance is 70% below the standard for suspended solids and biological oxygen demand. Last year, we increased renewable energy production to 91% of our needs and reduced our natural gas consumption by 8.2 million m3 on an annual basis. We were the only paper manufacturer to obtain certification from the Quebec Standards Office for calciumcontaining residues and ash. We also remain committed to our objective of zero landfill. In terms of fiber, 100% of our supply is controlled wood, of which 50% comes from FSC-certified forests.

We have demonstrated that sustainable growth is integral to our operations. Our environmental fiber guides us in our business and manufacturing practices, from the forest to our finished product – paper. <

Patsy Inglis received the award from Glenn Mason, Deputy Minister, Canadian Forest Service.

Page 16 > Q1 2014 > Resources > Domtar

Papers Domtar and First Book

Putting books in the han KATHY WHOLLEY > Director of Communications & Strategy Fort Mill Operations Center

n the midst of our technology-driven world, Domtar and First Book are showing the enormous power that comes from every child having the opportunity to hold and own a real book of their very own. Domtar teamed up with First Book in 2012 to help bring the power of books into the communities where Domtar employees live and work. In that first year together, First Book and Domtar provided ongoing access to books for kids in low-income schools and programs in communities across the nation. Highlights include 935 book titles provided through grants to children in Domtar communities, 25,000 free books distributed across the U.S., nearly 1,000 additional groups identified as prospective recipients of First Book’s resources and the printing of a special edition book focused on the environment — Recycle This Book. Building on the successes of the first year of our partnership, we grew our reach in 2013 by providing books to kids in nine Domtar communities, as well as four First Nations communities in Canada. Our support also included paying for the shipping of an additional 35,000 books to schools and

“WITH THE FIRST BOOK GRANT WE WERE ABLE TO BUY MUCH-NEEDED BOOKS FOR OUR LIBRARY AND CLASSROOMS, WHICH HELPS US TO ENCOURAGE THE LOVE OF READING WITH OUR STUDENTS” ROBERT GRUMLEY PRINCIPAL OF SOUTH ST. MARY’S ELEMENTARY SCHOOL Students at South St. Mary’s Elementary School in St. Mary’s, PA, show off new books provided by Domtar. programs across the U.S. By this year’s program end, the current campaign will have provided schools and programs with approximately 60,000 books with an estimated retail value of US$482,000. The feedback we receive from teachers and school administrators reinforces that we are in fact honoring our commitment to sustainable community development by promoting education and emphasizing literacy. “With the First Book grant we were able to buy much-needed books for our library and classrooms, which helps us to encourage the love of reading with our students,” said Robert Grumley, principal of South St. Mary’s

Elementary School near Domtar’s Johnsonburg Mill in Pennsylvania. “We are so grateful to Domtar for this gift.” In November, Domtar employees visited Bennettsville Primary School in Bennettsville, SC, to deliver books to students directly in their classrooms. The school visit also served as an opportunity for First Book and Domtar to document their tremendous work in the form of a partnership video, currently available on Domtar.com. Together with First Book we are transforming the lives of children across North America by providing the critical reading materials they need to read, learn and succeed. <

ABOUT FIRST BOOK FIRST BOOK, A NONPROFIT SOCIAL ENTERPRISE, WAS FOUNDED 20 YEARS AGO WITH THE MISSION OF PUTTING NEW BOOKS IN THE HANDS OF KIDS WHO NEED THEM. SINCE ITS FOUNDING, FIRST BOOK HAS DISTRIBUTED MORE THAN 100 MILLION BOOKS AND CLASSROOM MATERIALS TO PROGRAMS AND SCHOOLS SERVING CHILDREN FROM LOW-INCOME FAMILIES THROUGHOUT THE U.S. AND CANADA.

Domtar > Resources > Q1 2014 > Page 17

Papers

nds of needy children TESTIMONIALS “Your donation provided almost 400 books for children in each of our programs, from babies through teenagers. Please know that your generosity is truly appreciated.” Kerry Woehle Manager of Program Operations Boys & Girls Club of Kamloops

“Your wonderful donation will put a book in the hands and homes of almost every student in our school. Thank you.” Christine Their – 3rd grade teacher Robertson Elementary School Yakima, Washington

“A huge thank you to Domtar Paper! They have made generous grants available through First Book to get more new books into underserved communities and the Free Bookmobile has been selected as a recipient. This means we’ll be soon receiving hundreds of new children’s books, chosen by us, completely free of charge. What a great partnership!” Free Bookmobile of Sonoma County

“Thank you so much for your gift of books to Kids-Centric! We will make sure that they are in the hands of the children with special needs that we serve. Your generosity is appreciated!” Martin Kepecs via Facebook

“I am blown away by the generosity of Domtar Paper! Thanks for helping Madison Elementary get books in kids’ hands! Love surprises too.” Amber Garbe via Twitter

“Thank you, Domtar Paper. You are now part of the successes in our classroom.” Donna Dearing – 4th grade teacher Cresthaven Elementary School

s e g a P l u f r e w Po g literacy phasizin m e d n a rt the ion to suppo g educat t in n t e o m m it o r P comm munities Domtar’s f our com o t n is part of e m lop ive, ble deve es initiat g sustaina a P l fu r Powe tions Domtar’s organiza h it w Through e g e the nga a to shar roud to e ic r p e e r m a A e h w r s Nort dents fo ols acros quip stu e lp e and scho h o dt ading an gift of re . pply learning ook to su B t s ir F ith U.S. ed in the nership w t e r n a p in e s h T s to kid f this ew book ponent o m o c 100,000 n e n o ludes the da is but s also inc e and Cana g a P l fu . Power initiative : g actions followin

eading Carson R e h t f o t Fund at shmen cholar’s S n > Establi o s r a h the C l ry Schoo Room wit lementa E g r g to u b n ht helpin Johnso ig N k o o f World B son to orship o from per g in d > Spons a e fr he love o spread t roviding person Central p m o o r dents s s t of Cla eged stu r il o iv p r p p u r S e > und pplies to Domtar school su ograms in r p g in d f rea pment o > Develo ities ning commun emy lear d a c A t s e e For tion of th > Promo for kids website

Page 18 > Q1 2014 > Resources > Domtar

Papers

Ariva gets a new look TAMARA WALSH > Marketing Manager Ariva – Mississauga

ith Domtar’s sale of the Ariva U.S. business last summer, and the subsequent change of Ariva Canada’s reporting structure into the Pulp and Paper segment, we have commenced a new phase in our existence. With these changes, the opportunity presented itself to review many areas of the Ariva business, including the logo and brand. As we continue to be an important part of Domtar’s marketing strategy in Canada, the

timing was perfect with the start of a new year to begin with a fresh new look. Ariva’s new logo renews historical ties with Domtar and builds on synergies between Ariva, Enteprise Group and Domtar. With

its clean and modern look, the new logo confidently states that Ariva Canada is in a new phase of its existence. Welcome to the new Ariva. <

Presidential holiday card printed on Domtar paper VANÉCIA CARR > Director of Marketing Printing Papers, Fort Mill Operations Center

e are proud that the 2013 Presidential holiday card was printed on Domtar

paper.

Designed by Chris Hankinson of Hilltop Studios in Grand Rapids, MI, the pop-up-style card has a three-dimensional image of the front of the White House. Admore Inc. in Macomb, MI, did the printing and it was hand-folded by Handy Bindery in the Detroit suburb of Clinton Township. Featuring intensive die-cutting, folding and foil stamping techniques, the card was printed on Cougar, Domtar’s premium uncoated paper. ‘‘I use Cougar for 99% of my custom cards and have for as far back as I can remember,’’ Chris Hankinson told us. Our paper stood up to every challenge that the designer created. We are proud of the Rothschild Mill for keeping the standards and quality of

Cougar at the highest level and we are honored that everyone involved in the process for the Presidential card chose Domtar paper. <

Presidential holiday card

Domtar > Resources > Q1 2014 > Page 19

Government Relations

Nekoosa > Domtar hosts legislative caucus CRAIG TIMM > Manager, Public Affairs

he Nekoosa Mill hosted the year’s first State Legislative Caucus in conjunction with the Wisconsin Paper Council on January 12. General Manager Mark Bessette presented Domtar’s vision, mission and values, along with informa-

tion specific to the local operation. The group also discussed environmental issues that are pertinent to the Nekoosa Mill and the paper industry. Nekoosa’s state senator and representative were in attendance, along with additional state and federal officials. After the discussion, officials toured the paper mill. Domtar remains active in these events, and both the Rothschild and Nekoosa mills have been host sites in the past. <

General Manager Mark Bessette addressing legislators

Kingsport > Informing elected officials THOMAS HOWARD > Vice-President, Government Relations Fort Mill Operations Center

delegation of Domtar colleagues recently spent a day at the Tennessee State Capitol in Nashville helping to ensure that state officials better understand our business interests in Tennessee. During the day the delegation met with state legislators and Governor Bill Haslam. “A lot of times we take things for granted when we are back at our work sites,” said

Bill MacPherson, vice president and general manager, Kingsport Mill. “It’s important to set aside some time to let our elected officials know what is important to Domtar. It’s also important that we maintain dialogue with our government representatives to make sure they understand the impacts – both good and not so good – their actions can have on our operations.” Among the items discussed were the need for an educated and trainable future workforce, the challenges of moving wood fiber into our mills and the need for regulatory flexibility impacting mill maintenance.

In addition to Governor Haslam, the Domtar delegation met with Tennessee’s Lt. Gov. Ron Ramsay, Senator Joe Hensley M.D., Rep. Tony Shipley, Rep. Vance Dennis and Rep. Andy Holt. In addition, they held discussions with Tennessee’s Department of Labor and State Treasurer, Jason Mumford. <

Left to right are Stefan Nowicki (Government Relations), Steve Morrison (Engineering Manager), Bill MacPherson (VP and Mill Manager), Governor Bill Haslam, Michael Morris (Fiber Procurement Manager), Anthony Robinson (Environment) and Dan Allard (Wood Procurement Manager).

Page 20 > Q1 2014 > Resources > Domtar

Personal Care

Attends Germany > Through the eyes of a trainee VALERIA OSWALD > HR Trainee Attends Schwalbach

t 24 years of age, I would normally be considered too old for an apprenticeship in Germany. But here I am after work experiences halfway around the world. After graduating from high school, I began studying to be a teacher. Young and inquisitive, I applied to join a student association in order to undertake internships in India and Cambodia. My first work experience was teaching in schools and non-governmental organizations in those countries. While in Cambodia, I developed an interest in hygiene and medicine. Upon returning to Germany, I was determined to enter the medical field and started training to become a nurse. However, I quickly realized that I preferred medical care and the business world to medicine itself. It was also important for me to be in a profession related to social responsibility. While studying to be a nurse, I worked with incontinence products and acquired some basic knowledge in this field. One day I came across an Attends job advertisement on the Internet. Full of enthusiasm, I started my apprenticeship at Attends with three other interns in August

2013. We all came from different backgrounds but for each of us it was the first step into an international company. Two days a week, we attend vocational school to learn theory about business, communications, data processing, accounting and business English. We then put this knowledge to use as part of our training at Attends during the three other days. As I write this, I am working in the human resources department. One of the experiences that greatly impressed me was taking part in job interviews and contributing to hiring decisions. I had never really thought about the number of factors involved in organizing and conducting a job interview. Who decides if a job opening is advertised and how is a job ad put together? As part of my training, I did research and exchanged ideas with the Marketing Department for a job advertisement that addressed a specific group. The growth of our business due to demographic trends has quite an impact on the HR Department. The search for suitable candidates to fill positions is a major task and the hiring process involves many steps. It also requires knowledge of laws protecting personal information, which are very strict in Germany. As part of our apprenticeship, we also learn the functions of the in-house legal department, payroll and expense account processing and continuing education. Life-long learning is

Left to right are Valeria Oswald, Franka Gäbel, Human Resources and Legal Manager, and Diana Wenz, Human Resources Assistant.

THE SUPPORT OF COLLEAGUES AND SUPERIORS IS INVALUABLE IN HELPING US PERFORM THE TASKS REQUIRED AND UNDERSTAND HOW THE COMPANY FUNCTIONS.

very important at Attends. Product training is organized on a regular basis for new employees and to keep existing staff up to date on the latest developments. At the end of each week, we give our Attends trainers a weekly report. This helps us keep track of what we have learned and to inform them of what we covered in our classroom education. We also discuss with them the practical experience acquired in the various departments we work in. Every day brings a new challenge that allows us to develop both professionally and personally. The support of colleagues and superiors is invaluable in helping us perform the tasks required and understand how the company functions. These are some of my first impressions since joining Attends and I’m excited about learning more. <

Attends Germany trainees (front, left to right) Stephanie Misiak, Steven Dörr, Saskia Hanl, (back, left to right) Carlos Parra-Sanchez, Valeria Oswald and Insa Mlodzinski. (Missing: Claudia Nicolai)

Domtar > Resources > Q1 2014 > Page 21

Personal Care

Mike Fagan welcomes an Indas factory employee.

Building a pan-European Personal Care business STUART LISTER > Manager, Corporate Communications & Public Affairs Domtar House

n early January Domtar finalized the acquisition of Laboratorios Indas, Spain’s largest manufacturer and marketer of branded adult incontinence (AI) products. This move brings over 400 new employees into the Domtar family and makes us the third largest AI producer in Europe. Indas employees were welcomed to Domtar by Mike Fagan, Senior Vice-President – Personal Care, and other members of his leadership team when they visited Indas facilities in Madrid and Toledo, Spain. At the Toledo facility, more than 250 employees were on hand for the occasion. Javier Martin, Chief Executive Officer of Indas, acted as the master of ceremonies. When the introduction and welcoming ceremonies ended, Mike Fagan shook hands with every Indas employee as they returned to work. With Indas on board, Domtar now has the critical mass to build out a pan-European business from manufacturing and distribution hubs in Aneby, Sweden (Attends Europe) and Toledo, Spain (Indas).

Resources asked our President and CEO, John D. Williams, to put this latest move into perspective. ‘‘With five acquisitions under our belt, we are now nearing the point where 20% of our overall sales will be coming from absorbent hygiene products. Combine a fast-growing Personal Care business with a high-performing Pulp and Paper business, and you’ve got a winning formula for creating the revenue growth that Domtar needs.’’ He added: ‘‘We have made an impactful entry into the Personal Care segment in a short period of time. That we have emerged as one of the leaders in a high-growth niche of this market – adult incontinence products – is a testament to our collective resolve to position the Company for long-term prosperity.’’ Domtar’s transformation story is truly one of putting Company values to work: agility (adapting to shifting market demand), caring (focusing on long-term sustainability) and innovation (leveraging our fiber expertise in a growth market). <

Paul Mayer contributed to this article.

Indas employees gather to hear Mike Fagan and Javier Martin welcome them to Domtar.

Javier Martin introduces members of the Indas staff (left to right), Diego Giron - Quality Manager; Antonio Yañez - Operations Managing Director; Juan Luna - Purchasing Manager and José Castellanos - Production Manager.

Page 22 > Q1 2014 > Resources > Domtar

Community

Johnsonburg > Toy drive benefits kids in need LISA SIMCHICK > Administrative Assistant Johnsonburg Mill

he Johnsonburg Mill’s 2013 toy drive proved to be the best ever. Efforts began earlier than in the previous year and seemed to have paid off as donations by mill employees reached a total of $2,661, well above the record $2,200 raised in 2012!

mill employees doing the shopping. The toys were given to two organizations in the Johnsonburg/Elk County area – Citizens Against Physical, Sexual and Emotional Abuse and Dickenson Mental Health Center. In addition, Mill management decided to match the amount raised through employee donations and a check for $2,600 was presented to Dickenson Mental Health Center. Thank you to all contributors and we hope that 2014 proves even better! <

The funds were once again used to purchase toys for children in need, with a group of

Left to right: Renee Brechtel, Fiberline utility (one of the toy shoppers), Heidi Thomas of Dickenson Mental Health Center and Grant Forrest, Mill General Manager

Rothschild > Festival of Trees SUSAN HADAWAY > Human Resources Manager Rothschild Mill

ach year the Rothschild Mill participates in the Festival of Trees, a week-long silent auction and raffle for trees, centerpieces, wreaths and other festive decorations that raises funds in support of end-of-life care services. During the event, visitors are offered coffee and cookies while children enjoy activities like Santa’s workshop, coloring and a special visit with Santa and Mrs. Claus.

The mill purchases a pre-lit Christmas tree from the Aspirus Health Foundation and employees volunteer as decorators to ‘‘dress it up’’ for this popular community fund-raising event. The decorators are challenged to find just the right decorations and props to bring the theme to life and tempt event patrons to spend big bucks purchasing the tree for their home or business. The 2013 volunteers were Finishing Unit employees Dawn Friske, Liz Tryba and Tracie Alexander, who chose the theme ‘‘Woodland Christmas’’ for their decoration. This annual holiday decorating event raises funds to support Aspirus Hospice House in Wausau, in whose rooms, facilities and gardens are designed to feel more like home and less

like a hospital. The 2013 Festival of Trees raised $167,000 for the music therapy program and two community bedrooms at the facility for patients with limited ability to pay. The Rothschild Mill has been a proud supporter of this event since 2000, when Paula Jenkins, Mary Fandrey, and Cindy Helke entered the first of many beautifully decorated trees. Since then, many volunteer hours and much talent have been contributed every year and our decorators are already planning for our 2014 Festival of Trees entry! < The Rothschild Mill’s 2013 tree decorators were (left to right) Dawn Friske, Liz Tryba and Tracie Alexander.

Domtar > Resources > Q1 2014 > Page 23

Community

Gifts for children from low-income families: Marc Morin, Grand Knight, Knights of Columbus; Sue Daigneau, Chantal Gagné and Sylvie Leduc from the Windsor Mill; Jean Shink, Knight of Columbus; and Anie Vigneux, Windsor Mill.

Windsor > Helping the needy PROVIDENCE CLOUTIER > Communications Advisor Windsor Mill

Finally, on December 13, a group of managers braved the cold at 6:00 a.m. to distribute food baskets to needy families in the Sherbrooke area as part of the Paniers de l’Espoir (Baskets of Hope) initiative.

“These efforts are testimony to the great generosity and engagement of our employees to our communities,” said Windsor Mill General Manager Eric Ashby. <

Non-perishable food: Suzie Tessier, Johanne Foret and Luc Beaudet, all volunteers with Action Partage

Check presentation: André Cloutier, President, Action Partage, Eric Ashby, Windsor Mill General Manager, and Michel Poirier, representing the Knights of Columbus

hether with money, gifts, food or time, every effort to help those in need counts, and nobody knows it better than the employees at the Windsor Mill. The 2013 spirit of giving began with a non-perishable food drive in late November. Then, at the December 6 Christmas party, employees raised $5,081, which was donated to Action Partage and the Windsor Knights of Columbus. The two organizations, which help low-income families, used the money to fill their 2013 Christmas baskets. A few days later, employees got together to buy over one hundred brand new gifts for children from low-income families in the area.

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Community

Kingsport > Strong support for United Way KELLI BEILHARZ > Administrative Relations Kingsport Mill

ew records were set by the Kingsport Mill and city-wide during the 2013 United Way annual fund-raising campaign. Roger Smith, K1 Paper Machine Manager, was the overall Campaign Chair for the city-wide campaign and David Hobbs, K1 Maintenance Coordinator, served as Campaign Coordinator at the mill. The 2013 United Way goal was $3,875,000, an increase of $125,000 over the 2012 objective. By the time the campaign results celebration was held on November 22, 2013, the total amount raised had exceeded the goal by $1,518.18. With subsequent pledges and in-kind donations, an additional $216,409 was raised, bringing the final total to $4,128,340! “It was a very challenging but rewarding campaign,” said Roger. “We weren’t sure whether or not we would exceed the goal in time for the November announcement but things turned out well in the end.’’ Roger has served on the Campaign Cabinet for six of the eight years he has been at the Kingsport Mill and continues his service as a member of the Board of Directors.

Roger Smith (left) and David Hobbs At the mill level, David Hobbs showed his leadership by turning in the highest pledge total the mill has ever achieved. David attributed this success to the generosity of mill employees. “It is humbling to work with such caring and giving people,” said David. United Way supports a number of local organizations such as Meals on Wheels, the

Boys and Girls Club and Salvation Army. By supporting United Way, Domtar gives back to the community as a whole, helping many people with different needs. Employees not only generously give money, but also volunteer their time with the United We Read campaign, helping 2nd graders with reading, and with Meals on Wheels, delivering food to the elderly. <

Windsor > Domtar blood drive PROVIDENCE CLOUTIER > Communications Advisor Windsor Mill

he Domtar blood drive for Héma-Québec took place in Windsor on January 20, 2014, in collaboration with the Daughters of Isabella and the Centre Le Bel Âge, a seniors center. A total of 95 donations were collected, including one from Martin Lorrion, Vice-President Manufacturing, Region 1. As in past years, a number of Domtar employees and retirees braved the January cold to take part. Since 2000, Domtar blood drives in Windsor have yielded a total of 1,535 donations. When you consider that one donation can save up to four lives, that’s a potential 6,000 people saved! <

Martin Lorrion and volunteers from the Daughters of Isabella

Domtar > Resources > Q1 2014 > Page 25

Community

Plymouth Mill employees stand proudly behind the toys collected for children in need. Front row, left to right, are Naomi Roberson, Carol Waters, Gay Styons, Helen Freenan and Marty Barfield. Back row are Mike Nihoa, Diane Hardison, Vicki Stotesbury, Ken Matveia, Dennis Askew and Carroll Jones.

Plymouth > Another successful toy drive STEFAN NOWICKI > Manager, Communications and Government Relations Fort Mill Operations Center

or the third year in a row, Plymouth has made the holiday season better for the children of Eastern North Carolina, and every year their efforts yield greater results.

As is the case for many rural communities in which we have operations, Plymouth does not have “big box” stores within its city limits. This reality is felt particularly during the holiday season, because such stores usually drive toy collections for underprivileged children and families. As such, three years ago, the Plymouth Mill decided to inaugurate its own ‘‘Toys for Tots’’ drive. Employees bring in toys to place in collection bins set up throughout the mill site,

and every year the number of toys collected grows. The toys are given to the Department of Social Services to be distributed among families in need to bring a little joy to little ones. Even the employees of Social Services were mighty impressed by the volume of toys dropped off this year. By now this has become a tradition amongst our Plymouth colleagues, one that is sure to continue to bring holiday cheer in the years to come. <

Port Huron > A tradition of giving TONY BAILEY > Network Technician Port Huron Mill

he Port Huron Mill continued a 28-year tradition of giving this past Christmas by helping 24 families. Names of individuals in need were submitted by employees and also referred to us by local agencies.

Domtar donated turkeys to the families. We also purchased the “fixin’s” for a traditional Christmas dinner as well as a week’s worth of groceries and miscellaneous cleaning and health supplies thanks to generous donations from our vendors and employees. Our employees continued the Christmas spirit by selecting a child from the names submitted and purchasing gifts for them. Gifts and groceries were delivered on December 21 by employee volunteers. <

Some of the gifts and food collected for distribution.

Page 26 > Q1 2014 > Resources > Domtar

People and places

John D. Williams named AF&PA board chairman O ur President and CEO John D. Williams was elected as the 2014 board chairman of the American Forest & Paper Association (AF&PA) at the association’s January meeting. He succeeded David Scheible, Chairman, President and CEO of Graphic Packaging.

“John’s extensive experience working on the consumer side of the business will provide a unique perspective as we look at issues affecting the industry, and I look forward to working with him to advance our policy objectives this year,” said AF&PA President and CEO Donna Harman. U.S. Commerce Secretary Penny Pritzker, Sen. Jeff Sessions (R-Ala.), and Rep. Michael Michaud (D‑Maine) were also present at the meeting, speaking to the board about the AF&PA’s key policy issues. Thomas Howard, Vice-president, Government Relations, reports that during the meeting Mr. Williams and Secretary Pritzker had a good opportunity to exchange views on issues facing Domtar and our industry, including the importance of international trade. The AF&PA is the industry voice for American pulp, paper, packaging and wood products manufacturers who collectively provide 900,000 jobs. The AF&PA Board of Directors currently consists of 30 top industry leaders representing the broad spectrum of the paper and wood products manufacturing sector. < Mr. Williams looks on as Secretary Spritzker addresses the AF&PA board members.

Microsoft rewards one of our IT employees VÉRONIQUE LE BERRE > IT Communications Advisor Domtar House

nformation technology may be the industry sector where the pace of change is the most rapid. IT professionals have to constantly keep their skills up to date and be on the lookout for new technology. When your work isn’t just a job but a passion, everybody wins, including Domtar. François-Xavier Cat started working at Domtar in June 2009. He is administrator, Infrastructure, in the Information Technology (IT) group in Montreal. Computer infrastructure is what enables 6,000 Domtar users to communicate with each other and access the applications they use in their work every day. François-Xavier has embraced technology in all its forms and, for the past three years, has been studying the scripting language PowerShell. This expertise, which he shares on

his blog lazywindamin.com, was recognized by Microsoft early this year.

INTERNATIONAL RECOGNITION Microsoft’s MVP (Most Valuable Professional) program recognizes independent experts and community leaders who share, in a hands-on way, their passion, technical expertise and experience with Microsoft products. That’s exactly the title that François-Xavier obtained. He is the second individual from Quebec to receive the honour, which puts him among the 62 professionals in the world recognized by Microsoft as being experts in PowerShell. François-Xavier is also one of the first five winners of another Microsoft accolade, the “2014 PowerShell Heroes.”

POWERSHELL AT DOMTAR A number of IT groups benefit from PowerShell technology and François-Xavier’s expertise. Among his achievements is a script for a graphic interface that lets users enter the information necessary to deploy a Windows server in 15 to 30 minutes. Once this step is done, the script performs a certain number of validations to verify compliance before proceeding with the server deployment automatically. Not so long ago, the task required four person-hours. Thank you François-Xavier and congratulations! <

Domtar > Resources > Q1 2014 > Page 27

People and places

Rothschild > An outstanding leader recognized SUSAN HADAWAY > Human Resources Manager Rothschild Mill

herri Selting, Senior Process Engineer at the Rothschild Mill, was one of 20 individuals who were chosen from among 78 nominees in the Wausau Daily Herald’s first ‘‘20 Under Forty’’ program. Sherri was honored at a ceremony held last November at The Grand Theater in downtown Wausau. The Daily Herald Media, in partnership with the Wausau Region Chamber of Commerce, hosted the recognition event to laud the achievement, excellence, commitment and leadership of exemplary people under the age of 40. The event was also held to show the importance of cultivating young leadership as well as community appreciation and encouragement of younger leaders and activists. Sherri came to the Rothschild Mill in 1998 as a Paper mill co-op student. In 2001, she accepted a full-time position as a process engineer with the Paper Unit. Throughout her career at our mill, Sherri has excelled in a number of challenging and rewarding positions, including Waste Water Treatment Plant Supervisor, Wood Room Supervisor and Reliability Engineer.

In Memoriam JACQUES DOUCET Jacques Doucet, 55, a mobile equipment maintenance employee, passed away on November 30, 2013, after a long illness. He was employed at the Windsor Mill for 13 years and his workmates remember him as being very conscientious and professional.

CLYDE RICHARD MCKELVEY III Clyde Richard McKelvey III, 80, a retiree from the Port Huron Mill, passed away on January 6, 2014 following a car accident in Otsego County, MI, which also claimed the life of his wife Nancy on January 11. <

Matt Fischer, Sherri Selting and Dave Faucett, Production Coordinator, at the award ceremony Sherri’s commitment to excellence at work and in the community is amazing. She is a mother, wife, career leader and community advocate. Sherri volunteers with Junior Achievement, Wisconsin River cleanup and Girl Scouts. In addition, she is a youth choir director, a participant in the Domtar Paper Express school program and a

member of the Academic Advisory Committee at the University of Wisconsin-Stevens Point for the Paper Science program. Mill Manager Matt Fischer comments, “Sherri epitomizes the leader that our mill and community need for today and the future.” <

Port Huron > Retiree receives war medal

im Collins, 87, who retired from the Port Huron Mill more than two decades ago, has received the Bronze Star for heroic actions while serving in the U.S. Army during World War II. He worked at the mill for more than four decades as a machine tender on Paper machine #6. According to a story in The Times Herald, Jim was presented with his medal by the commander of the American Legion Post 8 in Port Huron in front of a large crowd on August 20, 2013. He served in the Army from 1944 to 1946 and earned his medal for running across a battlefield in Germany to get ammunition for his unit. The award finally found its way to him after his son had looked into obtaining veteran’s assistance to help with Jim’s dementia. When

a caseworker pulled up his file, she saw he was supposed to have received the Bronze Star. Congratulations to Jim for this belated honor! < Jim Collins holds onto his Bronze Star as he stands next to a wall showing his military family history. (credit: Wendy Torello/Times Herald)

Letâ&#x20AC;&#x2122;s make history... again! Be safe! Stay engaged! Be safety leaders in 2014