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

Company evolution and strategic direction

• Transitioned from a commercial printing focus to a diversified marketing solutions provider, expanding through acquisitions in print, packaging, and agency services over the past decade.

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

• Targeted print and agency solutions are growing segments, while traditional large-scale print and retail inserts continue to decline.

• International operations, especially in Mexico, are expanding, with educational workbooks as a key product for the U.S. market.

• Recent acquisitions and new offerings, such as in-store digital screens, are aimed at capturing growth in retail media and CPG advertising.

Recent business developments and client wins

• Launched In-Store Connect after acquiring DART, deploying digital screens in Save Mart and Homeland Stores, with further expansion planned.

• Consolidated creative agencies under the Betty brand, now supported by global teams in Europe, Hong Kong, and Delhi.

• Recognized by Ad Age, MM+M, and Communication Arts for agency and creative excellence, with notable client results such as a 3.5x sales increase for Summit Brewing.

• Secured multimillion-dollar packaging redesign contract with a national grocery chain and expanded relationships with brands like Raw Sugar Living.

Financial performance and capital allocation

• Sales declined 12% year-to-date, driven by postal rate increases and reduced direct mail volumes, but Adjusted EBITDA margin improved by 100 basis points.

• Generated $745 million in cash since COVID, using proceeds from asset sales and operations to reduce debt from over $1 billion to $400 million.

• Maintains a leverage target of 1.75–2.25x, with current leverage at the low end and no bank restrictions on payments.

• Resumed a $0.20 annual dividend and repurchased 11% of shares over two years, balancing returns with ongoing investment in growth and automation.

• Asset sales, such as the Saratoga Springs plant, could yield significant cash, with proceeds not yet included in 2024 guidance.