Quad/Graphics (QUAD) Investor Day 2024 summary

Strategic evolution and business transformation

• Accelerating transformation from a print-focused manufacturer to an integrated marketing experience (MX) company, simplifying the marketing ecosystem for clients through integration and scale.

• Expanding proprietary, household-based data stack and AI-backed solutions for resilient, privacy-compliant, highly personalized omnichannel marketing.

• Attracting top industry talent, investing in innovation including AI-enabled tools, and launching new digital/physical retail media solutions.

• Focused on reducing marketing friction by integrating services, streamlining execution, and deepening client relationships.

• Expanded agency and advisory services, with a growing share of revenue from higher-margin, service-based offerings, targeting 32% of net sales from services by 2029.

Innovation and new business developments

• Launched In-Store Connect, a turnkey in-store retail media network for mid-market grocers, with national expansion plans and proof-of-concept launches in 2024.

• Developed 3D commerce and virtual try-on solutions, enhancing content creation and digital engagement for retail clients.

• Enhanced data and AI capabilities through a partnership with Google, enabling advanced audience segmentation and democratizing data access.

• Programmatic buying and dynamic content delivery are being rolled out, with plans to expand into convenience and apparel retail formats.

• Innovation centers established for clients to test marketing programs and in-store experiences before full-scale deployment.

Financial guidance and long-term goals

• 2024 guidance: approximately 9% revenue decline, adjusted EBITDA of $215–$235 million, and free cash flow of $50–$70 million, with improved margins due to automation and cost controls.

• Five-year outlook targets a shift from declining large-scale print to growth in agency, targeted print, packaging, and Latin America, aiming for net sales growth by 2028.

• Integrated solutions/services expected to grow from 22% to 32% of revenue, with long-term EBITDA margin goal of low double digits (9.4%+ in three years) and 40% free cash flow conversion.

• Strong cash generation ($830M+ since 2020) has enabled $700M+ debt reduction; new leverage target lowered to 1.5–2x, with net debt expected to decline by over $700M from 2020 to 2024.

• Extended $690 million bank debt agreement through 2029, prioritizing low leverage, growth investments, and shareholder returns.