2019 Global High Yield & Leveraged Finance Conference
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2019 Global High Yield & Leveraged Finance Conference February 25, 2019 Presenters & Forward-Looking Statements Forward-Looking Statements Joel Quadracci This communication contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Chairman, President & Forward-looking statements include statements regarding, among other things, our current expectations about the Company's future results, financial condition, revenue, earnings, free cash flow, margins, objectives, goals, strategies, beliefs, intentions, plans, estimates, prospects, Chief Executive Officer projections and outlook of the Company and can generally be identified by the use of words or phrases such as "may," "will," "expect," "intend," "estimate," "anticipate," "plan," "foresee," "project," "believe," "continue" or the negatives of these terms, variations on them and other similar expressions. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results to be materially different from those expressed in or implied by such forward-looking statements. Forward-looking statements are based largely on the Company's expectations and judgments and are subject to a number of risks and uncertainties, many of which are unforeseeable and Dave Honan beyond our control. Executive Vice President & The factors that could cause actual results to materially differ include, among others: the impact of decreasing demand for printed materials and Chief Financial Officer significant overcapacity in the highly competitive environment creates downward pricing pressures and potential underutilization of assets; the impact of digital media and similar technological changes, including digital substitution by consumers; the impact of fluctuations in costs (including labor and labor-related costs, energy costs, freight rates and raw materials) and the impact of fluctuations in the availability of raw materials; the failure to successfully identify, manage, complete and integrate acquisitions and investments, including the proposed acquisition of LSC Communications, Inc. (“LSC”); the inability of the Company to reduce costs and improve operating efficiency rapidly enough to meet market conditions; the impact of increased business complexity as a result of the Company's transformation into a marketing solutions provider; the Kelly Vanderboom impact of regulatory matters and legislative developments or changes in laws, including changes in cyber-security, privacy and environmental laws; the impact of changing future economic conditions; the failure of clients to perform under contracts or to renew contracts with clients on Executive Vice President & favorable terms or at all; the failure to attract and retain qualified talent across the enterprise; significant capital expenditures may be needed to Treasurer maintain the Company's platforms and processes and to remain technologically and economically competitive; the impact of changes in postal rates, service levels or regulations; the fragility and decline in overall distribution channels, including newspaper distribution channels; the impact of the various restrictive covenants in the Company's debt facilities on the Company's ability to operate its business; the impact of risks associated with the operations outside of the United States, including costs incurred or reputational damage suffered due to improper conduct of its employees, contractors or agents; the impact on the holders of Quad’s class A common stock of a limited active market for such shares and the inability to independently elect directors or control decisions due to the voting power of the class B common stock; the impact of an other than Kyle Egan temporary decline in operating results and enterprise value that could lead to non-cash impairment charges due to the impairment of property, Assistant Treasurer & plant and equipment and intangible assets; the impacts that the proposed acquisition of LSC may have on the Company, both prior to and Director of Investor Relations following consummation of that acquisition; and the other risk factors identified in the Company's most recent Annual Report on Form 10-K, which may be amended or supplemented by subsequent Quarterly Reports on Form 10-Q or other reports filed with the Securities and Exchange Commission. Except to the extent required by the federal securities laws, the Company undertakes no obligation to publicly update or revise any forward- looking statements, whether as a result of new information, future events or otherwise. 2 Quad Overview Quad Overview Quad is a worldwide marketing solutions partner dedicated to creating a better way for its clients through a data-driven, integrated marketing platform that helps clients reduce complexity, increase efficiency and enhance marketing spend effectiveness 6,100 $4.2 billion 20,600 60 60+ Clients Representing 2018 Net Sales Employees Manufacturing & Distribution Client-Based Marketing Diverse Vertical Industries Worldwide Facilities Worldwide On-Site Locations in the United States 4 Quad’s Evolution 3.0 Continued Multi-Channel Transformation Diversifying offering to support customers with CONSUMER AUDIENCE PROCESS CAMPAIGN PRE-MEDIA PERSONALIZATION INSIGHTS TARGETING OPTIMIZATION PLANNING PRODUCTION PHOTO/VIDEO integrated marketing solutions 2.0 Industry Efficiencies Acquired to extend print DIRECT MEDIA PLANNING & COMMERCIAL DIRECTORY INSTORE PACKAGING IMAGING BOOK offering & improve efficiencies MARKETING PLACEMENT 1.0 Foundational Growth Built a strong print platform that continues today MAGAZINE CATALOG RETAIL INSERTS LOGISTICS QUADMED 5 Traditional Agency Holding Company Model GLOBAL NETWORK YOUNG & OGILVY GROUP MEDIACOM MAXUS PUBLIC RELATIONS GLOBAL NATIONAL PUBLICIS PUBLICIS PUBLICIS.SAPIENT MEDIABRANDS MCCANN MARKETING BRANDS RUBICAM GROUP • A. EICOFF • MEDIACOM BEYOND • METALWORKS BY • BLUECURRENT ADVERTISING ADVERTISING COMMUNICATIONS COMMUNICATIONS • SAPIENTRAZORFISH • ANSIBLE WORLDGROUP SPECIALISTS (CMG) • BOTTLE ROCKET ADVERTISING MAXUS PUBLIC RELATIONS • CAMPFIRE • MUBALOO • CARAT • ACCELERATION BRANDS AGENCIES • SAATCHI & SAATCHI (CONT) • McCANN • CASSIDY & • COLEY PORTER BELL • MEDIACOM BUSINESS • MOTIVATOR (INDIA) • CLS STRATEGIES • SECONDSTORY • BPN • DENTSU BRAND • AXICOM • BBDO WORLDWIDE • GOODBY, • SAATCHI & SAATCHI • PRODIGIOUS • COMMONWEALTH// ASSOCIATES • DAVID SCIENCE • MAXUS FOR • CONE • THE COMMUNITY • CADREON AGENCY • BENENSON • PROXIMITY SILVERSTEIN AND • CONILL • PRODIGIOUS MCCANN • CURRENT • DIAMOND OGILVY • MEDIACOM BUSINESS COMMUNICATIONS • ROSETTA • IDENTITY • DENTSU MEDIA STRATEGIES GROUP • ORGANIC PARTNERS • SAATCHI & SAATCHI • MARKET FORWARD • MCCANN/XBC MARKETING GROUP CONNECTED • MAXUS CONTENT / • FLEISHMANHILLARD • LEVEL STUDIOS • ID MEDIA • IPROSPECT • BLAST RADIUS • INTERONE • GSD&M X • TANGERINE FILMS • GRAPHENE • DEVRIES GLOBAL • DT EXECUTION CHORUS UK • GPLUS • EXPICIENT • HEALIX • ISOBAR • BRAVO • WEDNESDAY • MARTIN WILLIAMS • TEAM ONE • IOW • M:UNITED//MCCANN • DNA • ETECTURE GMBH • MEDIACOM GLOBAL • MAXUS TECHNOLOGY • KETCHUM • NURUN QUEBEC • INITIATIVE • MCGARRYBOWEN • BURSON- • DDB WORLDWIDE • MERKLEY & • FALLON • PUBLICIS • AVRETT FREE COMMUNICATIONS • FEINSTEIN KEAN DATA SOLUTIONS CONSULTING • KREAB GAVIN • SAPIENT • IPG MEDIA LAB • MERKLE MARSTELLER • ALMA PARTNERS • SAATCHI SYNERGIZE WORLDWIDE GINSBERG • FUTUREBRAND HEALTHCARE (FKH) • MEDIACOM MOBILE • TED ANDERSON CONSULTING • MAGNA • MKTG • BURROWS • SPIKE DDB • ZIMMERMAN • INTERACTIVE • AG2 NURUN • CASANOVA//MCCANN • HUGO & CAT • FOSTER • MEDIACOM • MAXUS • MARINA MAHER • DIGITASLBI • REPRISE MEDIA • POSTERSCOPE • BWR • TRIBAL WORLDWIDE ADVERTISING SOLUTIONS • AR NEW YORK • COMPASS • SPECK DESIGN • H&O RESPONSE PERFORMANCE COMMUNICATIONS • DIGITASLBI • STICKYEYES • VIZEUM • COGNIFIDE • • • BBH • AUGUST POINT//MCCANN • UXUS • JÜSSI • MEDIACOM SPORT • MERCURY TRACK DDB 180 AMSTERDAM • DIGITAS STUDIO • TRAFFIC4U • COHN & WOLFE • • • BBH LONDON • CARRÉ NOIR • CRAFT • GOLIN • MAXX MARKETING • PORTLAND DDB HEALTH 180 LA • KITCATT NOHR • SOCIETY • DIRECT IMPACT • • BBH SINGAPRE • CHEMISTRY • FITZGERALD & CO • ARCHITECT • MEMAC OGILVY MINDSHARE • PORTER NOVELLI ALMA RAPP • LOST BOYS • INTERACTIVE • FUSE PUMP • • BBH NEW YORK • DPZ&T • THE MARTIN AGENCY • BROOKLYN SPECIALIST • NEO@OGILVY GROUPM • GROWTH TRACYLOCKE CRM: BRANDING & • 3ISHARE AVENUES • CGI HEALTH • • BBH SHANGHAI • DRUGSTORE • McCANN HEALTH BROTHERS BRANDS • OGILVY • GROUPM • PLANNING FOR THE ANT FARM • LIQUORICE • PROMOQUBE • ICONMOBILE HEALTHCARE • DOWNTOWN DESIGN • BBH MUMBAI • DUVAL GUILLAUME • CONSULTING AT • INSIDEDGE • 360i COMMONHEALTH ENTERTAINMENT AGILITY • MEDIABRANDS • INTRAMED • ADELPHI GROUP PARTNERS • BEANSTALK • BBH LOS ANGELES MODEM MCCANN HEALTH • MAGIC • AMPLIFI WORLDWIDE • [M]PLATFORM • LOOP INSIGHTS • LABSTORE • BIOLUMA • RED URBAN • THE DESIGNORY • BBH STOCKHOLM • ETO • MCCANN COMPLETE • VIRGO HEALTH • AMNET • OGILVY & MATHER • ESP PROPERTIES • FAST • ORION • LANDOR • BIOPHARM • DDB REMEDY • HORNALL ANDERSON • ZAG • MARCEL PUBLICIS HEALTH MEDICAL • JACK MORTON • DATA2DECISIONS WORLDWIDE • ESSENCE • CONTENT+ • NSA MEDIA • MANVSMACHINE COMMUNICATIONS • ROGERS TOWNSEND • INTERBRAND • DOMANI • MONKEES • DIGITAS HEALTH • MCCANN ECHO WORLDWIDE • MITCHELL • OGILVY NOOR • KR MEDIA • SHOP+ • RAPPORT • NORTH OF NINE • CDM • ROBERTS AND • SIEGEL + GALE • BBH DIRECT • NURUN • DISCOVERY USA • MCCANN GLOBAL • GENUINE COMMUNICATIONS • OGILVYONE • GAIN THEORY • LIFE+ WORLDWIDE