Domtar (UFS) 10-Q 2014 Q2 Quarterly report

Exhibit 12.1

Domtar Corporation

Computation of ratio of earnings to fixed charges

(In millions of dollars, unless otherwise noted)

	Three months ended					Six months ended
	June 30, 2014		June 30, 2013			June 30, 2014		June 30, 2013
	$		$			$		$
Available earnings:
Earnings (loss) before income taxes and equity earnings		53		(51	)		107		(27	)
Add fixed charges:
Interest expense incurred		25		20			49		42
Amortization of debt expense and discount		1		1			2		2
Interest portion of rental expense (1)		3		2			5		5
Total earnings (loss) as defined		82		(28	)		163		22
Fixed charges:
Interest expense incurred		25		20			49		42
Amortization of debt expense and discount		1		1			2		2
Interest portion of rental expense (1)		3		2			5		5
Total fixed charges		29		23			56		49
Ratio of earnings to fixed charges		2.8					2.9		0.4
Deficiency in the coverage of earnings to fixed charges				51.0

⁽¹⁾  Interest portion of rental expense is calculated based on the proportion deemed representation of the interest component (i.e 1/3 of rental expense).