Quad/Graphics (QUAD) investor relations material

Company transformation and strategy

• Evolved from a core commercial printer to a marketing experience (MX) company, now offering integrated end-to-end marketing solutions across print, digital, and creative services.

• Strategic acquisitions and talent recruitment enabled expansion into digital media, campaign creation, and agency services.

• AI and proprietary data stack, leveraging decades of print and household data, drive targeted marketing and campaign effectiveness.

• MX: Intelligence platform uses data analytics and AI to optimize audience targeting, resulting in increased ROI for clients.

• Notable client wins, such as Spirit of Gallo, showcase the effectiveness of data-driven, multi-channel campaigns.

Product innovation and new initiatives

• Launched In-Store Connect, a retail media network with interactive digital screens, targeting mid-tier grocers to aggregate scale and attract CPG advertisers.

• Early studies show significant sales lifts for brands using in-store screens, with up to 25% increase for some products.

• Focus on integrating AI across creative, operational, and analytics functions to enhance efficiency and campaign results.

• Proprietary data is monetized through campaign optimization, not direct sale, maintaining competitive advantage.

Financial performance and outlook

• 2023 revenue was $2.7 billion, with over 11,000 employees and a diverse client base across verticals.

• Revenue mix shifting from declining large-scale print to higher-margin integrated solutions and targeted print; 2028 projected as the inflection year for revenue growth.

• Adjusted EBITDA margin expected to rise from 8% to 9.4% by 2028, with long-term goal of low double-digit margins.

• Free cash flow conversion targeted to increase from 28% to 35% by 2028, aided by lower interest and restructuring costs.

• Strong cash generation ($800M since 2020) used to reduce debt by 66%, with leverage now at 1.6x and maturities extended to 2029.