Quad/Graphics (QUAD) 15th Annual Midwest IDEAS Investor Conference summary

Company evolution and strategy

• Transitioned from a commercial printing company to a diversified marketing solutions provider over 54 years, expanding through acquisitions in print, packaging, and agency services.

• Built a one-stop marketing platform, integrating creative, production, and media placement, serving 2,700 clients including major brands like Amazon and Walmart.

• Agency and digital solutions now represent a growing share of revenue, while traditional print segments like retail inserts are in organic decline.

• International operations in Poland, Mexico, Peru, and Colombia are contributing to growth, especially as U.S. clients shift away from China.

• Data-driven targeted print and marketing intelligence are key differentiators, leveraging unique household data from printing 10% of U.S. mail.

Recent business developments

• Launched In-Store Connect, a retail media network with digital screens in grocery stores, following the acquisition of DART.

• Consolidated creative agencies under the new brand "Betty," expanding global creative capabilities with teams in Europe, Hong Kong, and Delhi.

• Received industry recognition, including Ad Age global agency ranking, SAMMY Award for media platform Connex, and MM+M healthcare agency ranking.

• Secured multimillion-dollar packaging redesign contract with a national grocery chain and delivered measurable results for clients like Summit Brewing and Stanley Steemer.

• Hosting Investor Day on November 20th at the New York City office.

Financial performance and capital allocation

• Net sales declined 12% year-to-date, impacted by rising postal rates and reduced direct mail volumes.

• Adjusted EBITDA margin improved by 100 basis points due to restructuring and cost efficiencies.

• Generated $745 million in cash since COVID, with 11% of shares repurchased and significant debt reduction from $1 billion to $400 million.

• Ongoing asset sales of facilities expected to provide additional cash, with past sales (e.g., Oklahoma City) netting $40 million.

• Dividend reinstated at $0.05 per quarter, with a 4%-5% yield, and continued focus on maintaining low leverage and opportunistic buybacks.