RESOLUTE FOREST PRODUCTS Q3 2016 RESULTS · RFP Q3 2016 Results 5 Q3 2016 OVERVIEW Adjusted EBITDA : Q3’16 vs Q3’15 Adjusted EBITDA is a non-GAAP financial measure. Refer to Appendices

RESOLUTE FOREST

PRODUCTS

Q3 2016 RESULTSRichard Garneau, President & CEO

Jo-Ann Longworth, SVP & CFO

November 3, 2016

RFP Q3 2016 Results 2

CAUTIONARY STATEMENTS REGARDING

FORWARD-LOOKING INFORMATION

November 3, 2016

Statements in this presentation that are not reported financial results or other historical information of Resolute Forest Products Inc. are “forward-looking

statements” within the meaning of the Private Securities Litigation Reform Act of 1995. They include, for example, statements relating to the company’s: efforts

and initiatives to reduce costs and increase revenues and profitability; business and operating outlook; future financial results, including EBITDA; future pension

funding obligations; assessment of market conditions; the company’s growth and diversification strategies and prospects and growth potential of the company

and the industry in which it operates; liquidity; the expected benefits of the acquisition of Atlas Paper Holdings, Inc. and its subsidiaries (“Atlas Paper”); and

strategies for achieving the company’s goals generally. Forward-looking statements may be identified by the use of forward-looking terminology such as the

words “should,” “would,” “could,” “will,” “may,” “expect,” “believe,” “anticipate,” “attempt,” “project” and other terms with similar meaning indicating possible future

events or potential impact on the company’s business or Resolute’s shareholders.

The reader is cautioned not to place undue reliance on these forward-looking statements, which are not guarantees of future performance. These statements are

based on management’s current assumptions, beliefs and expectations, all of which involve a number of business risks and uncertainties that could cause actual

results to differ materially. The potential risks and uncertainties that could cause the company’s actual future financial condition, results of operations and

performance to differ materially from those expressed or implied in this earnings release and the earnings conference call referred to above include, but are not

limited to, the impact of: developments in alternative media, which are expected to continue to adversely affect the demand for some of the company’s key

products, and the effectiveness of its responses to these developments; any additional closure costs and long-lived asset or goodwill impairment or accelerated

depreciation charges; currency fluctuations; global economic conditions; intense competition in the forest products industry; negative publicity, even if unjustified;

the highly cyclical nature of the forest products industry; contributions to the company’s Canadian pension plans at levels higher than expected; the terms of

outstanding indebtedness, which could restrict current and future operations; the company’s ability to maintain adequate capital resources to provide for all of its

substantial capital requirements; any inability to successfully implement the company’s strategies to increase earnings power; the possible failure to successfully

integrate the businesses of the company and Atlas Paper or that such integration may be more difficult, time-consuming or costly than expected or expected

benefits from the acquisition may not be fully realized or realized within the expected time frame; future acquisitions, divestitures or other strategic transactions or

projects the company may pursue; any failure to comply with environmental or other laws or regulations, even if inadvertent; legal proceedings or disputes; the

future regulation of the company’s Canadian softwood lumber exports to the United States; countervailing duties, cash deposit requirements or other trade

remedies, which could require the company to set aside or pay a substantial amount of cash and impact the competitive position of the affected operations; any

difficulties in obtaining wood fiber at favorable prices, or at all; changes in the cost of purchased energy and other raw materials; any labor disputes; changes in

political or economic conditions in Canada, the United States or other countries in which the company’s products are manufactured or sold; physical and financial

risks associated with climate change; any additional environmental or health and safety liabilities; disruptions to the company’s supply chain, operations or the

delivery of the company’s products; losses that are not covered by insurance; the actions of holders of a significant percentage of the company’s common stock;

extreme weather conditions or natural or man-made disasters; cyber security risks; and the potential risks and uncertainties described under the heading “Risk

Factors” in Part 1, Item 1A of Resolute’s annual report on Form 10-K and other filings with the SEC.

All forward-looking statements in this presentation are expressly qualified by the cautionary statements contained or referred to above and in Resolute’s other

filings with the U.S. Securities and Exchange Commission and the Canadian securities regulatory authorities. Resolute disclaims any obligation to publicly update

or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

All figures in US$ unless otherwise noted

• GAAP net income of $14 million or $0.15 per share

• Adjusted EBITDA of $68 million on sales of $888

million

• Cash and cash equivalents of $55 million

• Liquidity at $520 million

November 3, 2016 RFP Q3 2016 Results 3

Q3 2016 FINANCIAL HIGHLIGHTS

Adjusted EBITDA is a non-GAAP financial measure. Refer to Appendices A and B for a definition and reconciliation of non-GAAP financial measures.


Q3 2016 OVERVIEW

Adjusted EBITDA : Q3’16 vs Q2’16


November 3, 2016

85

68

Q2 2016 FX Salesprice

Volume Costs SG&A Freight Q3 2016

•

(1)

4

(23)

(7)

12

(2)

85

68

Q2 2016 Marketpulp

Tissue Woodproducts

Newsprint Specialtypapers

Corporate Q3 2016

2

14

(7)

(17)

(8) (1)


Q3 2016 OVERVIEW

Adjusted EBITDA : Q3’16 vs Q3’15


November 3, 2016

82

68

Q3 2015 Marketpulp

Tissue Woodproducts

Newsprint Specialtypapers

Corporate Q3 2016

(21)

25 3

(18)

(3)

82

68

Q3 2015 FX Salesprice

Volume Tissue Costs SG&A Freight Q3 2016

(1)

1

4(11)

(11)

7

(3)


MARKET PULP

1. EBITDA is a non-GAAP financial measure. Refer to Appendices A and B for a definition and reconciliation of non-GAAP financial measures.

2. The “all-in” delivered cost is the total cost of each ton shipped (cost of sales, depreciation and amortization, distribution costs and selling, general and administrative expenses).

November 3, 2016

93102

88

77

9094

83

100

Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016

Inventory (000's mt)

610592

500

525

550

575

600

625

650

675

700

725

750

Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016

$/m

t

average transaction price "all-in" delivered cost ²

Global chemical pulp demand ↑ 2.4% in

Q3 vs. 2015– China ↑ 9%; North America: ↑ 1.1%

Western Europe ↓ 3.6%

– World capacity ↑ 3.8%

– 2016 world demand ↑ 4% for softwood,

1.1% for hardwood

Transaction price ↑ $3/mt

Delivered cost ↑ $17/mt

Production shortfall of 40K mt

(US$mm) Q3 2016 Q2 2016

Sales 198 210

Operating income 5 12

EBITDA1 15 23

Shipments (000’s mt) 323 345

November 3, 2016 RFP Q3 2016 Results 7

TISSUE US consumption ↑ 4% in Q3 vs. 2015

– Away-from-home ↑ 2.8%

– At-home ↑ 1.5%

– Parent roll production ↑ 2.1%

Transaction price ↓ $11/st

Delivered cost ↑ $86/st

Calhoun project $50 million capex in Q3– On time and on budget


(US$mm) Q3 2016 Q2 2016

Sales 23 24

Operating loss (5) (4)

EBITDA1 (3) (2)

Shipments (000’s st) 15 16

6 53 4

Q4 2015 Q1 2016 Q2 2016 Q3 2016

Inventory (000's st)

(200)(200)

(150)

(100)

(50)

0

50

100

Q4 2015 Q1 2016 Q2 2016 Q3 2016

$/s

t

EBITDA / unit

1,549

1,878

1,000

1,200

1,400

1,600

1,800

2,000

Q4 2015 Q1 2016 Q2 2016 Q3 2016

$/s

t

average transaction price "all-in" delivered cost


WOOD PRODUCTS


November 3, 2016

$250

$275

$300

$325

$350

$375

$400

$425

$450

$475

$500

Random Lengths Composite 2x4 -L/A #1-2 KD GL 2x4x8 Stud KD GL

Q3 2016

331

263

250

275

300

325

350

375

400

Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016

$/m

bf


Q3 seasonally adjusted US single family

housing starts, ↑ 0.5% vs. Q2

Total housing starts ↓ 1.8%

US seasonally adjusted sales ↑ 6.1%

Transaction price ↑ $6/mbf

Delivered cost ↓ $15/mbf

Shipments ↑ 61 mmbf

(US$mm) Q3 2016 Q2 2016

Sales 168 145

Operating income 36 20

EBITDA1 43 29

Shipments (mmbf) 506 445

117133

117135 130 126 129 121

Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016

Inventory (000's mbf)

115105

97 10191

10496

105

Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016

Inventory (000's mt)

515

531

475

500

525

550

575

600

625

650

Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016

$/m

t



NEWSPRINT


November 3, 2016

NA demand ↓ 4.1% in Q3’16 vs.

2015 Overseas shipments ↓ 78k mt

World demand ↓ 4.4 %

NA operating rate of 91%

Transaction price ↑ $11/mt

Delivered cost ↑ $20/mt

(US$mm) Q3 2016 Q2 2016

Sales 242 257

Operating loss (8) (3)

EBITDA1 9 16

Shipments (000’s mt) 470 510


SPECIALTY PAPERS


November 3, 2016

83

92

114

102

88

78

88

75

Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016

Inventory (000's st)

672

677

600

625

650

675

700

725

Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016

$/s

t


NA demand ↓ 9.9% in UM grades vs.

2015– SC ↓ 11.8%

– NA operating rates at 90%

CM demand ↓ 5.6% in Q3’16

– NA production ↓ 9.8%

– Imports ↑ 8.6%

– NA operating rates at 94%

Transaction price ↑ $4/st

Delivered cost ↑ $52/st

(US$mm) Q3 2016 Q2 2016

Sales 257 255

Operating (loss) income (2) 16

EBITDA1 9 26

Shipments (000’s st) 384 382

P&L

Selected financial information

Q3 2016 vs Q2 2016 vs Q3 2015

Net income1

$19mm+$13mm +$5mm

Sales $888mm -0.03% -2%

EPS1 $0.21 $0.14 $0.06

Adjusted EBITDA2

$68mm-20% -17%

1. Excluding special items. Refer to Appendices A and B for a definition and reconciliation of non-GAAP financial measures.

2. Adjusted EBITDA is a non-GAAP financial measure. Refer to Appendices A and B for a definition and reconciliation of non-GAAP financial measures.

3. Other postretirement benefit.

Special items affecting net income (pre-tax)

Q3 2016

- $6mm non-operating pension and OPEB3 costs

Selected financial information

11

Shipments

November 3, 2016 RFP Q3 2016 Results

323

506

470

384

15

0

20

40

60

80

100

200

250

300

350

400

450

500

550

600

650

Market pulp 000's mt Wood products 000's mbf

Newsprint 000's mt Specialty papers 000's st

Tissue 000's st (right-hand scale)

Laurentide(-190k mt)

Iroquois Falls, Baie-Comeau PM1, Clermont PM5: (-465k mt)

Thunder Bay pellet plant

Ignace begins ramp-up

Atikokan beginsramp-up

Tissue shipments begin

Augusta PM1: (-190k mt)

Market outages

PERFORMANCE METRICS

12November 3, 2016 RFP Q3 2016 Results

« All-in » delivered cost1 EBITDA per unit1,2

EBITDA2

contribution from cogen

(in $US millions)

Q4’14 Q1’15 Q2’15 Q3’15 Q4’15 Q1’16 Q2’16 Q3’16

8 12 13 10 8 13 13 9

46

85

19

23

0

20

40

60

80

100

120

$/u

nit

Market pulp $/mt Wood products $/mbf

Newsprint $/mt Specialty papers $/st

592

263

531

677

200

300

400

500

600

700

800

$/u

nit

Market pulp $/mt Wood products $/mbf

Newsprint $/mt Specialty papers $/st

1. Performance metrics related to our tissue segment are available on page 7.



LIQUIDITY AND CASH FLOW

Q3 2016

(US$mm)vs Q2 2016 vs Q3 2015

Cash 55 15 180

Working capital 578 5 66

Total debt 727 116 137

Interest 10 1 1

• Entered into $185mm credit facility

in Q3, including $46mm term loan

• Net borrowings of $90mm under

revolving credit facilities in Q3

• Q3 capex of $78mm ↑ $26mm

from Q2:

– $50mm for tissue project

• 2016 capex forecast ~$250mm

– Up to $165mm for tissue project

• Liquidity healthy at $520mm

• Q3 net cash from ops $51mm

Available liquidity(US$mm)

2016 2015 2014

Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4

Total debt 727 611 611 591 590 590 590 590

Cash on hand 55 40 37 58 235 303 324 337

Available under revolving credit facilities 465 412 406 444 448 468 464 521

November 3, 2016


PENSION

(in $US millions) Q3’2016 2015 2014

Net pension and OPEB liabilities 1,111 1,193 1,631

U.S. GAAP discount rate at 12/311 N/A 4.2% 4.0%

(in $US millions) 2016E Q3’2016 2015 2014

Pension contributions2 165 67 143 164

OPEB payments 15 4 13 19

1. Pension plans

2. Includes defined benefit, defined contribution and target benefit plans

3. Excluded from Adjusted EBITDA

• Net pension & OPEB liability as of September 30, 2016 ↓ $78 million in Q2

• Defined benefit pension plan contributions and OPEB payments of $65 million, including

$29 million of annual supplemental and solvency deficit reduction contributions

November 3, 2016

Operating pension and OPEB costs 25 8 28 36

Non-op. pension and OPEB costs3 25 6 66 (10)

Total pension and OPEB costs 50 14 94 26

APPENDIX A

RFP Q3 2016 Results 16November 3, 2016

Three months ended September 30, 2016

(unaudited, in millions, except per share amounts) EPS

GAAP, as reported 10$ 14$ 0.15$

Adjustments for special items:

Start-up costs 1 1 0.01

Non-operating pension and OPEB costs 6 6 0.07

Other income, net - (1) (0.01)

Income tax effect of special items - (1) (0.01)

Adjusted for special items 17$ 19$ 0.21$



GAAP, as reported 6$ (6)$ (0.07)$


Foreign currency translation loss - 5 0.06

Closure costs, impairment and other related charges 2 2 0.02




Income tax effect of special items - 2 0.02

RESOLUTE FOREST PRODUCTS INC.

RECONCILIATION OF OPERATING INCOME AND NET INCOME ADJUSTED FOR SPECIAL ITEMS

Net income

(loss)

Operating

income (loss)

Operating

income (loss)

Net income

(loss)

A reconciliation of our operating income, net income and net income per share reported before special items is presented in the

tables below. See Note 1 to the Reconciliations of Non-GAAP Measures regarding our use of non-GAAP measures contained in our

November 3, 2016, press release available on our website.


Nine months ended September 30, 2016


GAAP, as reported (8)$ (36)$ (0.40)$


Foreign currency translation gain - (3) (0.04)


Inventory write-downs related to closures 5 5 0.06


Net gain on disposition of assets (2) (2) (0.02)




Adjusted for special items 55$ 7$ 0.08$



GAAP, as reported 7$ (43)$ (0.46)$


Foreign currency translation loss - 2 0.02


Inventory write-downs related to closures 1 1 0.01





Operating

income (loss)

Net income

(loss)

Operating

income (loss)

Net income

(loss)



(unaudited, in millions) Market pulp Tissue ( 3 ) Wood products Newsprint

Specialty

papers

Corporate and

other Total

Net income (loss) including noncontrolling interests 5$ (5)$ 36$ (8)$ (2)$ (11)$ 15$

Interest expense 10 10

Income tax benefit (14) (14)

Depreciation and amortization 10 2 7 17 11 4 51

EBITDA 15$ (3)$ 43$ 9$ 9$ (11)$ 62$

Start-up costs 1 1

Non-operating pension and OPEB costs 6 6

Other income, net (1) (1)

Adjusted EBITDA 15$ (3)$ 43$ 9$ 9$ (5)$ 68$



Specialty

papers

Corporate and

other Total

Net income (loss) including noncontrolling interests 22$ -$ 9$ (10)$ 9$ (36)$ (6)$


Income tax provision 2 2

Depreciation and amortization 14 - 9 16 18 2 59

EBITDA 36$ -$ 18$ 6$ 27$ (23)$ 64$

Foreign currency translation loss 5 5

Closure costs, impairment and other related charges 2 2

Start-up costs 2 2



RESOLUTE FOREST PRODUCTS INC.

RECONCILIATION OF EBITDA AND ADJUSTED EBITDA

A reconciliation of our net income including noncontrolling interests to EBITDA and Adjusted EBITDA is presented in the tables below. See Note 1 to the Reconciliations of Non-GAAP

Measures regarding our use of the non-GAAP measures EBITDA and Adjusted EBITDA.




Specialty

papers

Corporate and

other Total

Net income (loss) including noncontrolling interests 37$ (11)$ 52$ (16)$ 21$ (115)$ (32)$



Depreciation and amortization 28 6 23 56 34 10 157

EBITDA 65$ (5)$ 75$ 40$ 55$ (67)$ 163$

Foreign currency translation gain (3) (3)


Inventory write-downs related to closures 5 5

Start-up costs 5 5

Net gain on disposition of assets (2) (2)



Adjusted EBITDA 65$ (5)$ 75$ 40$ 55$ (18)$ 212$



Specialty

papers

Corporate and

other Total

Net income (loss) including noncontrolling interests 59$ -$ 10$ (10)$ 31$ (132)$ (42)$



Depreciation and amortization 40 - 26 48 54 8 176

EBITDA 99$ -$ 36$ 38$ 85$ (70)$ 188$

Foreign currency translation loss 2 2


Inventory write-downs related to closures 1 1

Start-up costs 4 4



APPENDIX B


Resolute Forest Products Inc.

Financial and Operating Statistics (Page 1 of 5)

Variance

(in millions, except per share amounts and otherw ise indicated) First Second Third Fourth Total First Second Third Fourth Total checks

Income Statement Data

Sales 920$ 926$ 905$ 894$ 3,645$ 877$ 891$ 888$ 2,656$

Operating income (loss) (15) 16 6 (226) (219) - (18) 10 (8)

Interest expense (12) (11) (9) (9) (41) (10) (9) (10) (29)

Other income (expense), net 5 1 (1) (1) 4 13 - 1 14

Net income (loss) including noncontrolling interests (32) (4) (6) (213) (255) (7) (40) 15 (32)

Net income (loss) attributable to noncontrolling interests 1 - - 1 2 1 2 1 4

Net income (loss) attributable to Resolute Forest Products Inc. (33) (4) (6) (214) (257) (8) (42) 14 (36)

Diluted net income (loss) per share attributable to Resolute Forest Products Inc. common shareholders (0.35)$ (0.04)$ (0.07)$ (2.39)$ (2.78)$ (0.09)$ (0.47)$ 0.15$ (0.40)$

Dividends declared per common share -$ -$ -$ -$ -$ -$ -$ -$ -$

Average diluted shares outstanding (in thousands) 94,883 94,095 91,087 89,415 92,353 89,610 89,818 90,392 89,818

Ending shares outstanding (in thousands) 94,801 91,606 89,306 89,493 89,493 89,493 89,505 89,507 89,507

Financial Position

Cash and cash equivalents 324$ 303$ 235$ 58$ 58$ 37$ 40$ 55$ 55$

Working capital (1) 629 616 644 617 617 620 573 578 578

Fixed assets, net 1,956 1,944 1,932 1,810 1,810 1,811 1,801 1,839 1,839

Total assets 4,739 4,682 4,541 4,220 4,220 4,289 4,245 4,312 4,312

Current portion of long-term debt 1 1 1 1 1 1 1 1 1

Long-term debt, net of current portion 589 589 589 590 590 610 610 726 726

Net debt (2) 266 287 355 533 533 574 571 672 672

Liquidity (3) 788 771 683 502 502 443 452 520 520

Total Resolute Forest Products Inc. shareholders' equity 2,088 2,061 2,046 1,932 1,932 1,932 1,899 1,919 1,919

Noncontrolling interests 12 12 12 13 13 14 16 17 17

Total equity 2,100 2,073 2,058 1,945 1,945 1,946 1,915 1,936 1,936

Cash Flow Information

Cash flows provided by (used in) operations 29$ 61$ -$ 48$ 138$ 6$ 63$ (18)$ 51$

Cash invested in fixed assets (40) (39) (44) (62) (185) (47) (52) (78) (177)

Acquisition of Atlas Paper Holdings, Inc., including cash overdraft acquired - - - (159) (159) - - - -

Dispositions of assets - - - - - 5 - - 5

Decrease (increase) in countervailing duty cash deposits - - - (4) (4) (6) (6) (5) (17)

Cash flows provided by (used in) investing activities (40) (43) (45) (224) (352) (48) (59) (82) (189)

Issuance of long-term debt - - - - - - - 46 46

Net borrowings under revolving credit facilities - - - - - 20 - 70 90

Purchases of treasury stock - (37) (22) - (59) - - - -

Cash flows provided by (used in) financing activities - (40) (22) - (62) 20 (1) 115 134

2015 2016




(in millions, except per unit items and otherw ise indicated) First Second Third Fourth Total First Second Third Fourth Total

Sales

Market pulp 218$ 231$ 230$ 210$ 889$ 211$ 210$ 198$ 619$

Tissue (4) - - - 11 11 23 24 23 70

Wood products 139 134 131 132 536 119 145 168 432

Newsprint 291 289 258 267 1,105 257 257 242 756

Specialty papers 272 272 286 274 1,104 267 255 257 779

Total sales 920$ 926$ 905$ 894$ 3,645$ 877$ 891$ 888$ 2,656$

Shipments to 3rd Parties (thousands of units)

Market pulp (mt) 328 351 360 336 1,375 352 345 323 1,020

Tissue (st) (4) - - - 7 7 15 16 15 46

Wood products (mbf) 393 418 421 446 1,678 390 445 506 1,341

Newsprint (mt) 534 548 517 551 2,150 519 510 470 1,499

Specialty papers (st) 382 388 411 399 1,580 393 382 384 1,159

Average Transaction Price per Unit

Market pulp ($/mt) 666$ 658$ 639$ 623$ 646$ 601$ 607$ 610$ 606$

Tissue ($/st) (4) - - - 1,506 1,506 1,489 1,560 1,549 1,532

Wood products ($/mbf) 353 320 314 296 320 306 325 331 322

Newsprint ($/mt) 545 528 498 484 514 495 504 515 504

Specialty papers ($/st) 711 701 693 690 699 679 668 672 673

20162015




(in millions, except per unit items and otherw ise indicated) First Second Third Fourth Total First Second Third Fourth Total

Operating Income (Loss)

Market pulp 11$ 26$ 22$ 17$ 76$ 20$ 12$ 5$ 37$

Tissue (4) - - - (1) (1) (2) (4) (5) (11)

Wood products 5 (4) 9 (8) 2 (4) 20 36 52

Newsprint (3) 3 (10) (13) (23) (5) (3) (8) (16)

Specialty papers 5 17 9 (2) 29 7 16 (2) 21

Corporate and other (33) (26) (24) (219) (302) (16) (59) (16) (91)

Total operating income (loss) (15)$ 16$ 6$ (226)$ (219)$ -$ (18)$ 10$ (8)$

Selling, General and Administrative Expenses

Market pulp 8$ 8$ 7$ 8$ 31$ 7$ 7$ 8$ 22$

Tissue (4) - - - 2 2 2 3 2 7

Wood products 6 6 5 6 23 5 7 6 18

Newsprint 11 12 9 11 43 10 9 10 29

Specialty papers 8 7 8 6 29 6 7 7 20

Corporate and other 8 7 5 12 32 8 7 4 19

Total selling, general and administrative expenses 41$ 40$ 34$ 45$ 160$ 38$ 40$ 37$ 115$

Operating Cost per Unit

Market pulp ($/mt) 631$ 585$ 576$ 574$ 591$ 543$ 575$ 592$ 570$

Tissue ($/st) (4) - - - 1,539 1,539 1,643 1,792 1,878 1,769

Wood products ($/mbf) 342 327 294 310 318 317 278 263 284

Newsprint ($/mt) 552 521 517 509 525 504 511 531 515

Specialty papers ($/st) 698 658 671 697 681 662 625 677 655

Product Inventory (thousands of units)

Market pulp (mt) 102 88 77 90 90 94 83 100 100

Tissue (st) (4) - - - 6 6 5 3 4 4

Wood products (mbf) 133 117 135 130 130 126 129 121 121

Newsprint (mt) 105 97 101 91 91 104 96 105 105

Specialty papers (st) 92 114 102 88 88 78 88 75 75

2015 2016




(in millions) First Second Third Fourth Total First Second Third Fourth Total

Net Income (Loss) Including Noncontrolling Interests

Market pulp 11$ 26$ 22$ 17$ 76$ 20$ 12$ 5$ 37$

Tissue (4)- - - (1) (1) (2) (4) (5) (11)

Wood products 5 (4) 9 (8) 2 (4) 20 36 52

Newsprint (3) 3 (10) (13) (23) (5) (3) (8) (16)

Specialty papers 5 17 9 (2) 29 7 16 (2) 21


Total net income (loss) including noncontrolling interests (32)$ (4)$ (6)$ (213)$ (255)$ (7)$ (40)$ 15$ (32)$

Interest Expense 12$ 11$ 9$ 9$ 41$ 10$ 9$ 10$ 29$

Income Tax Provision (Benefit) 10$ 10$ 2$ (23)$ (1)$ 10$ 13$ (14)$ 9$

Depreciation and Amortization

Market pulp 14$ 12$ 14$ 13$ 53$ 7$ 11$ 10$ 28$

Tissue (4) - - - 1 1 2 2 2 6

Wood products 8 9 9 11 37 7 9 7 23

Newsprint 16 16 16 16 64 20 19 17 56


Corporate and other 2 4 2 3 11 3 3 4 10

Total depreciation and amortization 57$ 60$ 59$ 61$ 237$ 52$ 54$ 51$ 157$

EBITDA (5)

Market pulp 25$ 38$ 36$ 30$ 129$ 27$ 23$ 15$ 65$

Tissue (4) - - - - - - (2) (3) (5)

Wood products 13 5 18 3 39 3 29 43 75

Newsprint 13 19 6 3 41 15 16 9 40


Corporate and other (26) (21) (23) (217) (287) - (56) (11) (67)

Total EBITDA 47$ 77$ 64$ (166)$ 22$ 65$ 36$ 62$ 163$

Special Items (5)

Foreign currency translation (gain) loss (2)$ (1)$ 5$ 2$ 4$ (6)$ 3$ -$ (3)$

Closure costs, impairment and other related charges 6 - 2 173 181 - 37 - 37

Inventory write-downs related to closures 1 - - 1 2 - 5 - 5

Net (gain) loss on disposition of assets - - - - - (2) - - (2)

Non-operating pension and OPEB costs (credits) 14 12 13 27 66 6 6 6 18

Acquisition-related costs - - - 4 4 - - - -

Start-up costs 1 1 2 1 5 3 1 1 5

Other (income) expense, net (3) - (4) (1) (8) (7) (3) (1) (11)

Total special items 17$ 12$ 18$ 207$ 254$ (6)$ 49$ 6$ 49$

Adjusted EBITDA (5)

Market pulp 25$ 38$ 36$ 30$ 129$ 27$ 23$ 15$ 65$

Tissue (4) - - - - - - (2) (3) (5)

Wood products 13 5 18 3 39 3 29 43 75

Newsprint 13 19 6 3 41 15 16 9 40



Total adjusted EBITDA 64$ 89$ 82$ 41$ 276$ 59$ 85$ 68$ 212$

20162015




Notes

5 EBITDA by reportable segment is calculated as net income (loss) including noncontrolling interests from the consolidated statements of operations, allocated to each of our reportable segments (market pulp, tissue, wood products, newsprint and

specialty papers) in accordance with FASB ASC 290, “Segment Reporting,” adjusted for depreciation and amortization. EBITDA for corporate and other is calculated as net income (loss) including noncontrolling interests from the consolidated

statements of operations, after the allocation to reportable segments, adjusted for interest expense, income taxes, and depreciation and amortization.

Adjusted EBITDA means EBITDA, excluding special items, such as foreign currency translation gains and losses, closure costs, impairment and other related charges, inventory write-downs related to closures, start-up costs, gains and losses on

disposition of assets, non-operating pension and OPEB costs and credits, acquisition-related costs and other charges or credits. Special items are allocated to corporate and other.

1 We define working capital as current assets less current liabilities excluding cash and cash equivalents and debt.

2 We define net debt as total debt less cash and cash equivalents.

4 On November 16, 2015, we acquired Atlas Paper Holdings, Inc. and its subsidiaries (or “Atlas Paper”), a manufacturer of a range of tissue products for the away-from-home and private-label at-home markets, including virgin and recycled products,

covering economy, value and premium grades and operating two tissue mills and a recycling facility in Florida. We began consolidating the results of operations of Atlas Paper in our Consolidated Financial Statements as of November 16, 2015. Atlas

Paper’s results of operations are included in the tissue segment.

3 We define liquidity as cash and cash equivalents and availability under our revolving credit facilities.

6 Certain prior period amounts have been changed to conform to the 2016 presentation.

We believe that using these non-GAAP measures is useful because they are consistent with the indicators management uses internally to measure the Company’s performance, and it allows the reader to more easily compare our ongoing operations

and financial performance from period to period. EBITDA and adjusted EBITDA are internal measures, and therefore may not be comparable to those of other companies. These non-GAAP measures should not be viewed as substitutes to financial

measures determined under GAAP in our consolidated statements of operations in our filings with the SEC.

RESOLUTE FOREST

PRODUCTS

Q3 2016 RESULTSRichard Garneau, President & CEO

Jo-Ann Longworth, SVP & CFO

November 3, 2016

Documents

RESOLUTE FOREST PRODUCTS Q3 2016 RESULTS · RFP Q3 2016 Results 5 Q3 2016 OVERVIEW Adjusted EBITDA : Q3’16 vs Q3’15 Adjusted EBITDA is a non-GAAP financial measure. Refer to Appendices