Domtar Announces an Increase to Its Quarterly Dividend

(All financial information is in U.S. dollars, unless otherwise noted.)

FORT MILL, S.C.--(BUSINESS WIRE)-- Domtar Corporation (NYSE: UFS) (TSX: UFS) announced that its Board of Directors approved a 4% increase to its quarterly dividend (from $0.40 per share to $0.415 per share) on its common stock. The Board of Directors declared the dividend payable on July 15, 2016 to stockholders of record as of the close of business on July 5, 2016.

"The dividend increase reinforces our ongoing commitment to return cash to shareholders. Today’s announcement reflects our continued confidence in our cash flow generation,” said John D. Williams, President and Chief Executive Officer. "A balanced approach to the deployment of our capital remains our top priority, while we continue to invest in our growth strategy.”

About DomtarDomtar is a leading provider of a wide variety of fiber-based products including communication, specialty and packaging papers, market pulp and absorbent hygiene products. With approximately 9,850 employees serving more than 50 countries around the world, Domtar is driven by a commitment to turn sustainable wood fiber into useful products that people rely on every day. Domtar’s annual sales are approximately $5.3 billion and its common stock is traded on the New York and Toronto Stock Exchanges. Domtar’s principal executive office is in Fort Mill, South Carolina. To learn more, visit www.domtar.com.

Forward-Looking StatementsStatements in this release about our plans, expectations and future performance, including the statements by Mr. Williams and those contained under “Outlook,” are “forward-looking statements.” Actual results may differ materially from those suggested by these statements for a number of reasons, including changes in customer demand and pricing, changes in manufacturing costs, future acquisitions and divestitures, including facility closings, and the other reasons identified under “Risk Factors” in our Form 10-K for 2015 as filed with the SEC and as updated by subsequently filed Form 10-Q’s. Except to the extent required by law, we expressly disclaim any obligation to update or revise these forward-looking statements to reflect new events or circumstances or otherwise.

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INVESTOR RELATIONS
Nicholas Estrela, 514-848-5555 x 85979
Director
Investor Relations
or
MEDIA RELATIONS
David Struhs, 803-802-8031
Vice-President
Corporate Services and Sustainability

Source: Domtar Corporation

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