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Quad/Graphics, Inc. November 7, 2017 2017 Wells Fargo Media & Telecom Conference Kelly Vanderboom President of Logistics, Vice President & Treasurer Dave Honan Executive Vice President & CFO

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Page 1: PPT Template 2015 · IBISWorld Industry Report and December 2016 Printing Impressions PI400. (2) Source: 2017 Federal Reserve Industrial Production and Capacity Utilization [G17]

Quad/Graphics, Inc.

November 7, 2017

2017 Wells Fargo Media & Telecom Conference

Kelly VanderboomPresident of Logistics, Vice President & Treasurer

Dave HonanExecutive Vice President & CFO

Page 2: PPT Template 2015 · IBISWorld Industry Report and December 2016 Printing Impressions PI400. (2) Source: 2017 Federal Reserve Industrial Production and Capacity Utilization [G17]

Forward-Looking Statements• To the extent any statements in this investor presentation contain information that is not historical, these statements are forward-looking statements within the meaning of

Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements relate to, 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, projections and outlook of Quad/Graphics, Inc. (the “Company” or “Quad/Graphics”), and can generally be identified by the use of words 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. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements.

• These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond the control of Quad/Graphics. These risks, uncertainties, and other factors could cause actual results to differ materially from those expressed or implied by those forward-looking statements. Among risks, uncertainties and other factors that may impact Quad/Graphics are: the impact of decreasing demand for printed materials and significant overcapacity in the highly competitive commercial printing industry creates downward pricing pressures; the impact of electronic media and similar technological changes, including digital substitution by consumers; the inability of the Company to reduce costs and improve operating efficiency rapidly enough to meet market conditions; the impact of changing future economic conditions; the failure of clients to perform under contracts or to renew contracts with clients on favorable terms or at all; the failure to attract and retain qualified production personnel; the impact of increased business complexity as a result of the Company's entry into additional markets; 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; 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 of changes in postal rates, service levels or regulations; the impact of regulatory matters and legislative developments or changes in laws, including changes in cyber-security, privacy and environmental laws; 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; significant capital expenditures may be needed to maintain the Company's platform and processes and to remain technologically and economically competitive; the impact on the holders of Quad/Graphics 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 temporary decline in operating results and enterprise value that could lead to non-cash impairment charges due to the impairment of property, plant and equipment and other intangible assets; and the other risk factors identified in the Company's most recent Annual Report on Form 10-K, as such may be amended or supplemented by subsequent Quarterly Reports on Form 10-Q or other reports filed with the Securities and Exchange Commission.

• Quad/Graphics cautions that the foregoing list of risks, uncertainties and other factors is not exhaustive and you should carefully consider the other factors detailed from time to time in Quad/Graphics’ filings with the United States Securities and Exchange Commission and other uncertainties and potential events when reviewing Quad/Graphics’ forward-looking statements.

• Because forward-looking statements are subject to assumptions and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. You are cautioned not to place undue reliance on such statements, which speak only as of the date of this investor presentation. Except to the extent required by the federal securities laws, Quad/Graphics undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

2

Page 3: PPT Template 2015 · IBISWorld Industry Report and December 2016 Printing Impressions PI400. (2) Source: 2017 Federal Reserve Industrial Production and Capacity Utilization [G17]

Quad/Graphics, Inc. Overview

Page 4: PPT Template 2015 · IBISWorld Industry Report and December 2016 Printing Impressions PI400. (2) Source: 2017 Federal Reserve Industrial Production and Capacity Utilization [G17]

22,600Employees Worldwide

$460 million2017 Adjusted EBITDA(1)

$250 million2017 Free Cash Flow(1)

2.25xDebt Leverage Ratio at

6/30/2017

Quad/Graphics, Inc. Overview4

$4.1 billion2017 Net Sales(1)

66Manufacturing Facilities

Located In:

United States

Argentina

Colombia

A global marketing services provider that helps brand owners market their products, services and content

more efficiently and effectively by using its strong print foundation in combination with other media channels.

France

Mexico

Poland

Peru

(1) Represents the mid-point of our 2017 annual guidance as presented on slide 17.

Page 5: PPT Template 2015 · IBISWorld Industry Report and December 2016 Printing Impressions PI400. (2) Source: 2017 Federal Reserve Industrial Production and Capacity Utilization [G17]

Fernley, NV

Portland, OR

Salt Lake City, UT

Sacramento, CA

Merced, CA

Riverside, CA

Oklahoma City, OK

Dallas, TX

Lufkin, TX

Shakopee, MN

Waukee, IA

Effingham, IL

Tampa, FL

The Rock, GA

Spartanburg, SCCharlotte, NC

Franklin, KY

Nashville, TN

Versailles, KY

Columbus, OH

Fairfield, PA

Winchester, VA

Martinsburg, WV

Westampton, NJ

Hazelton, PA

Chalfont, PALong Island City, NY

Leominster, MA

Woburn, MA

Springfield, MA

Taunton, MA

Saratoga Springs, NY

Greenville, MI

Midland, MI

New Berlin, WIBurlington, WI

Franklin, WI

Hartford, WILomira, WI

Pewaukee, WI

Sussex, WIWest Allis, WI

U.S. Print Production Footprint

Size (square footage)

> 1.5m 1m ― 1.5m 500k ― 1m < 500k

Omaha, NE

35534

5

Page 6: PPT Template 2015 · IBISWorld Industry Report and December 2016 Printing Impressions PI400. (2) Source: 2017 Federal Reserve Industrial Production and Capacity Utilization [G17]

Agency Automotive E-Tail Financial Healthcare Insurance Publishing Retail Travel & Hospitality CPG

8,600 Clients in Diverse Vertical Industries6

Page 7: PPT Template 2015 · IBISWorld Industry Report and December 2016 Printing Impressions PI400. (2) Source: 2017 Federal Reserve Industrial Production and Capacity Utilization [G17]

Walk in the Shoes of our Clients

Creating a Better Way

Drive EBITDA Enhancement

Strengthen the Balance Sheet

Accelerate Quad 3.0 Transformation

Sustainable Free Cash Flow

Provide Long Term Shareholder Returns

Strategic Goals

Grow the Business Profitably

Strengthen the Core

Engage Employees

Enhance Financial Strength & Create Shareholder Value

7

Page 8: PPT Template 2015 · IBISWorld Industry Report and December 2016 Printing Impressions PI400. (2) Source: 2017 Federal Reserve Industrial Production and Capacity Utilization [G17]

8Experienced Leadership Team

8

Joel QuadracciChairman, President & Chief Executive Officer

Dave HonanExecutive Vice President & Chief Financial Officer

Kelly VanderboomPresident of Logistics, Vice President & Treasurer

Eric AshworthExecutive Vice President of Product Solutions & Market Strategy, and President of BlueSoHo

Jennie KentExecutive Vice President of Administration & General Counsel

Tom FrankowskiExecutive Vice President & Chief Operating Officer

Renee BaduraExecutive Vice President of Sales

26

Dave BlaisExecutive Vice President of Global Procurement and Platform Strategy

38

231

33

8 7 24

48 Age

Tenure with QUAD

53 Age

Tenure with QUAD

Age

Tenure with QUAD

56

Age

Tenure with QUAD

51

Age

Tenure with QUAD

45Age

Tenure with QUAD

48 43

Age

Tenure with QUAD

Age

Tenure with QUAD

54

John FowlerVice Chairman, EVP Global Strategy & Corporate Development & BOD Member

37

Age

Tenure with QUAD

66

Page 9: PPT Template 2015 · IBISWorld Industry Report and December 2016 Printing Impressions PI400. (2) Source: 2017 Federal Reserve Industrial Production and Capacity Utilization [G17]

Quad 3.0

Page 10: PPT Template 2015 · IBISWorld Industry Report and December 2016 Printing Impressions PI400. (2) Source: 2017 Federal Reserve Industrial Production and Capacity Utilization [G17]

Commercial Print Industry Marketing Services Industry

Largest 400 printers represent less than half of total industry revenue(1)

Creating advertising campaigns, implementing public relations campaigns, and engaging in media buying, among other advertising services

Top 50 companies generate only 40% of industry revenue(3)

Pressures

Online Content

Mobile Devices

Ad Spend Split

USPS EconomyRetail

EnvironmentConsumer Confidence

Disposable Income

$85 BillionU.S. Annual Revenue(1)

49,000 Companies(1)

5 largest printers, only account for approximately 20% of annual revenue(1)

Stru

ctur

al

Cycl

ical

38,000Companies(3)

$95 BillionU.S. Annual Revenue(3)

53%Display Advertising, media buying, and

media representation

25%Print, Broadcast

and Online Media

Public Relations

10%Direct

Marketing

Industry capacity utilization is approximately 67%(2)

______________________________(1) Source: November 2016 Printing in the U.S. IBISWorld Industry Report and December 2016 Printing Impressions PI400.(2) Source: 2017 Federal Reserve Industrial Production and Capacity Utilization [G17] Reports. Includes printing of newspapers, magazines, books,

labels, stationary, etc., as well as data imaging, platemaking and bookbinding.(3) Source: Dun & Bradstreet November 2016 Industry Profile on Advertising & Marketing Services Industry

12%

10

Page 11: PPT Template 2015 · IBISWorld Industry Report and December 2016 Printing Impressions PI400. (2) Source: 2017 Federal Reserve Industrial Production and Capacity Utilization [G17]

Explosion of Media

Challenge is coordinating the strengths of different channels into an efficient and effective marketing campaign

11

Page 12: PPT Template 2015 · IBISWorld Industry Report and December 2016 Printing Impressions PI400. (2) Source: 2017 Federal Reserve Industrial Production and Capacity Utilization [G17]

12

Our Expanded Integrated Marketing Platform

Page 13: PPT Template 2015 · IBISWorld Industry Report and December 2016 Printing Impressions PI400. (2) Source: 2017 Federal Reserve Industrial Production and Capacity Utilization [G17]

13Create Enhanced Client Value

Integrated Marketing Platform

IMPROVE EFFICIENCY

INCREASE EFFECTIVENESS

UN

IQU

E O

FFER

ING SELL

MORE

With Multi-channel

Services

SAVE MORE

With Process

Optimization

High-Quality, Low-Cost Producer

Page 14: PPT Template 2015 · IBISWorld Industry Report and December 2016 Printing Impressions PI400. (2) Source: 2017 Federal Reserve Industrial Production and Capacity Utilization [G17]

14Creating A Better Way

14

ContinuedMulti-channel

TransformationQuad 3.0

$0 to

$1.

8B in

201

0 Re

venu

e

$1.8

to

$4.3

B in

201

6 Re

venu

e

Incr

ease

Rev

enue

Industry Consolidator

Quad 2.0

FoundationalGrowth

Quad 1.0

DIRECT MARKETING

PACKAGINGINSTORE

COMMERCIAL MEDIA PLANNING & PLACEMENT

MOBILE

BOOK

CATALOGMAGAZINE RETAIL INSERTS

SOCIAL MEDIA

CAMPAIGN CREATION &

ORCHESTRATION

Built strong foundation that continues today:• Technological innovator• Process excellence• Premier manufacturing & distribution platform• Lasting culture, values & leadership team

Pursued numerous acquisitions to:• Enhance and expand print product offering• Remove inefficient & underutilized capacity• Leverage efficient plants

Further diversify product offering to support our integrated marketing platform:• “Urgently Innovate” with an engaged workforce• Leverage status as industry’s high-quality,

low-cost producer to fuel transformation• Increase revenue by helping brand owners market

more efficiently & effectively

SEO/SEMPRODUCTION SERVICES

IMAGING

DIRECTORY

CREATIVE, PHOTO &

VIDEO

PREMEDIA & PROCESS

OPTIMIZATION

LOGISTICS

Page 15: PPT Template 2015 · IBISWorld Industry Report and December 2016 Printing Impressions PI400. (2) Source: 2017 Federal Reserve Industrial Production and Capacity Utilization [G17]

Financial Overview

Page 16: PPT Template 2015 · IBISWorld Industry Report and December 2016 Printing Impressions PI400. (2) Source: 2017 Federal Reserve Industrial Production and Capacity Utilization [G17]

Financial OverviewThird Quarter Year-to-Date

($ in millions) September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016

Statement of Operations

Net Sales $ 1,005.4 $ 1,056.4 $ 2,967.2 $ 3,131.2

Cost of Sales 784.8 824.9 2,330.9 2,449.4

SG&A 104.9 109.9 302.6 341.9

Adjusted EBITDA(1) $ 115.7 $ 121.6 $ 333.7 $ 339.9

Adjusted EBITDA Margin(1) 11.5% 11.5% 11.2% 10.9%

Statement of Cash Flows

Cash from Operating Activities $ 179.7 $ 260.0

Capital Expenditures (61.6) (57.7)

Free Cash Flow(1) $ 118.1 $ 202.3

______________________________(1) See slide 24 for definitions of our non-GAAP measures and slides 25 and 26 for reconciliations of Adjusted EBITDA and

Adjusted EBITDA Margin and slide 27 for a reconciliation of Free Cash Flow as non-GAAP measures.

Q3 2017 results were in line with our expectations.

16

Page 17: PPT Template 2015 · IBISWorld Industry Report and December 2016 Printing Impressions PI400. (2) Source: 2017 Federal Reserve Industrial Production and Capacity Utilization [G17]

2017 Annual Guidance

US $ Millions2017

(Previous)2017

(Narrowed)Net Sales $4.1 to $4.3 billion Approximately $4.1 billion

Adjusted EBITDA(1) $440 to $480 million $450 to $470 million

Free Cash Flow(1) $225 to $275 million $240 to $260 million

Depreciation and Amortization $225 to $235 million No change

Interest Expense $70 to $80 million $70 to $75 million

Restructuring and Transaction-Related Cash Expenses $30 to $40 million No change

Capital Expenditures $75 to $90 million No change

Cash Taxes $10 to $20 million $5 to $10 million

Pension Cash Contributions(2) Approximately $10 million Approximately $25 million

______________________________(1) See slide 24 for definitions of our non-GAAP measures.(2) Includes single employer pension plans and multi-employer pension plans.

17

Page 18: PPT Template 2015 · IBISWorld Industry Report and December 2016 Printing Impressions PI400. (2) Source: 2017 Federal Reserve Industrial Production and Capacity Utilization [G17]

2.88x

2.62x

2.43x2.37x 2.36x

2.29x2.25x

2.00x

2.20x

2.40x

2.60x

2.80x

3.00x

Q42015

Q12016

Q22016

Q32016

Q42016

Q12017

Q22017

Q32017

Capital Structure as of September 30, 2017

______________________________

(1) See slide 24 for definitions of our non-GAAP measures and slide 28 for a reconciliation of Debt Leverage Ratio as a non-GAAP measure.

Debt Leverage Ratio(1)

Long-Term Targeted Range

37%Floating

Rate Debt 63%Fixed Rate

Debt

$686 millionAvailable Liquidity

Under Revolver

5.1%Blended Interest Rate

January 2021Next Significant Maturity

$295 million, or 22%, reduction of debt since December 2015

2.22x

18

Page 19: PPT Template 2015 · IBISWorld Industry Report and December 2016 Printing Impressions PI400. (2) Source: 2017 Federal Reserve Industrial Production and Capacity Utilization [G17]

Shareholder Value

Declared dividend of $0.30 per share to be payable on December 1, 2017, to shareholders of record as of November 20, 2017

$0.00

$1.00

$2.00

2013 2014 2015 2016 2017

Regular Cash Dividend

$0.30$0.30

$0.30

$0.30

$0.30

$0.30

$0.30

$0.30

______________________________

(1) Dividend Yield is calculated as an annualized dividend of $1.20 per share divided by Quad/Graphics closing stock price on November 1, 2017 of $22.41.

Commitment to Dividend

5%Dividend Yield(1)

25%Dividend as % of Free Cash Flow

$0.30

$0.30

$0.30

$0.30 $0.30 $0.30 $0.30

$0.30

$0.30 $0.30

$0.30

19

Page 20: PPT Template 2015 · IBISWorld Industry Report and December 2016 Printing Impressions PI400. (2) Source: 2017 Federal Reserve Industrial Production and Capacity Utilization [G17]

20Disciplined Acquisition Approach

Good Strategic Fit

Conduct a thorough review process to ensure a potential acquisition will be a good strategic fit.

Economics Make Sense

Ensure that target will create value through an enhanced range of products and services, revenue-generating solutions and increased efficiencies. Quality of earnings and cash flow conversion are paramount.

Executable Integration

Holistic approach to integration and measures success through financial metrics, client retention and satisfaction, employee integration and IT and platform integration.

Balance Sheet Integrity

Quad ensures that post-acquisition, it retains the financial strength and flexibility it had prior to the acquisition.

Page 21: PPT Template 2015 · IBISWorld Industry Report and December 2016 Printing Impressions PI400. (2) Source: 2017 Federal Reserve Industrial Production and Capacity Utilization [G17]

Financial Strength

Disciplined Capital

Deployment

Maximize Free Cash

Flow

Strong Balance Sheet

Strong Earnings Margin

Financial Policies• Maintain normalized leverage of 2.0x to 2.5x granted we may

operate above or below this range given timing of investments and growth opportunities

• Reduce leverage with generated free cash flow

• De-risk underfunded pensions and MEPPs

• Maintain strong relationships with a diversified group of Lenders

• Continue to maintain a staggered maturity profile to minimize refinancing risk

• Have a healthy balance of fixed vs. floating rate debt

• Always have adequate dry powder to pursue opportunities that are accretive to earnings, as well as to maintain a healthy access to liquidity during difficult economic times

• Return capital to shareholders as part of a balanced capital allocation strategy and maintenance of financial policies

21

Page 22: PPT Template 2015 · IBISWorld Industry Report and December 2016 Printing Impressions PI400. (2) Source: 2017 Federal Reserve Industrial Production and Capacity Utilization [G17]

For questions contact:Kyle Egan – [email protected]

Page 23: PPT Template 2015 · IBISWorld Industry Report and December 2016 Printing Impressions PI400. (2) Source: 2017 Federal Reserve Industrial Production and Capacity Utilization [G17]

Supplemental Information

Page 24: PPT Template 2015 · IBISWorld Industry Report and December 2016 Printing Impressions PI400. (2) Source: 2017 Federal Reserve Industrial Production and Capacity Utilization [G17]

Use of Non-GAAP Financial Measures• In addition to financial measures prepared in accordance with accounting principles generally accepted in the United

States of America (GAAP), this presentation also contains Non-GAAP financial measures, specifically EBITDA, EBITDA Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, Debt Leverage Ratio and Adjusted Diluted Earnings Per Share. The Company believes that these Non-GAAP measures, when presented in conjunction with comparable GAAP measures, provide additional information for evaluating Quad/Graphics’ performance and are important measures by which Quad/Graphics’ management assesses the profitability and liquidity of its business. These Non-GAAP measures should be considered in addition to, not as a substitute for or superior to, net earnings (loss) as a measure of operating performance or to cash flows provided by operating activities as a measure of liquidity. These Non-GAAP measures may be different than Non-GAAP financial measures used by other companies. Reconciliations to the GAAP equivalent of these Non-GAAP measures are contained on slides 25 – 31.

• Adjusted EBITDA is defined as net earnings (loss) excluding interest expense, income tax expense (benefit), depreciation and amortization, restructuring, impairment and transaction-related charges, loss (gain) on debt extinguishment, and equity in loss of unconsolidated entity.

• Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by net sales.

• Free Cash Flow is defined as net cash provided by operating activities less purchases of property, plant and equipment.

• Debt Leverage Ratio is defined as total debt and capital lease obligations divided by the last twelve months of Adjusted EBITDA.

• Adjusted Diluted Earnings Per Share is defined as net earnings (loss) excluding restructuring, impairment and transaction-related charges, loss (gain) on debt extinguishment, equity in loss of unconsolidated entity and discrete income tax items, divided by diluted weighted average number of common shares outstanding.

Select icons throughout the presentation were designed by Plainicon from Flaticon. 24

Page 25: PPT Template 2015 · IBISWorld Industry Report and December 2016 Printing Impressions PI400. (2) Source: 2017 Federal Reserve Industrial Production and Capacity Utilization [G17]

Adjusted EBITDAThird Quarter (US $ Millions)

Three Months Ended September 30,

2017 2016

Net earnings $ 19.8 $ 11.3

Interest expense 17.8 19.6Income tax expense 11.8 2.9Depreciation and amortization 58.3 61.7

EBITDA [Non-GAAP] $ 107.7 $ 95.5EBITDA Margin [Non-GAAP] 10.7% 9.0%

Restructuring, impairment and transaction-related charges 8.0 26.1Equity in loss of unconsolidated entity ― ―

Adjusted EBITDA [Non-GAAP] $ 115.7 $ 121.6

Adjusted EBITDA Margin [Non-GAAP] 11.5% 11.5%

25

Page 26: PPT Template 2015 · IBISWorld Industry Report and December 2016 Printing Impressions PI400. (2) Source: 2017 Federal Reserve Industrial Production and Capacity Utilization [G17]

Adjusted EBITDAYear-to-Date (US $ Millions)

Nine Months Ended September 30,

2017 2016

Net earnings $ 51.9 $ 7.4

Interest expense 53.6 58.9Income tax expense 26.8 5.6Depreciation and amortization 175.5 217.4

EBITDA [Non-GAAP] $ 307.8 $ 289.3EBITDA Margin [Non-GAAP] 10.4% 9.2%

Restructuring, impairment and transaction-related charges 22.5 62.4Loss (gain) on debt extinguishment 2.6 (14.1)Equity in loss of unconsolidated entity 0.8 2.3

Adjusted EBITDA [Non-GAAP] $ 333.7 $ 339.9

Adjusted EBITDA Margin [Non-GAAP] 11.2% 10.9%

26

Page 27: PPT Template 2015 · IBISWorld Industry Report and December 2016 Printing Impressions PI400. (2) Source: 2017 Federal Reserve Industrial Production and Capacity Utilization [G17]

Free Cash Flow(US $ Millions)

Nine Months Ended September 30,

2017 2016

Net cash provided by operating activities $ 179.7 $ 260.0

Less: purchases of property, plant and equipment (61.6) (57.7)

Free Cash Flow [Non-GAAP] $ 118.1 $ 202.3

27

Page 28: PPT Template 2015 · IBISWorld Industry Report and December 2016 Printing Impressions PI400. (2) Source: 2017 Federal Reserve Industrial Production and Capacity Utilization [G17]

September 30, 2017 December 31, 2016

Total debt and capital lease obligations on the balance sheets $ 1,054.2 $ 1,130.8

Divided by: Trailing twelve months Adjusted EBITDA [Non-GAAP] 473.9 480.1

Debt Leverage Ratio [Non-GAAP] 2.22x 2.36x

Debt Leverage Ratio(US $ Millions, Except Ratio Data)

______________________________

(1) The calculation of Adjusted EBITDA for the trailing twelve months ended September 30, 2017 and December 31, 2016, was as follows:

Add SubtractTrailing Twelve Months EndedYear Ended Nine Months Ended

December 31, 2016 September 30, 2017 September 30, 2016 September 30, 2017

Net earnings $ 44.9 $ 51.9 $ 7.4 $ 89.4

Interest expense 77.2 53.6 58.9 71.9

Income tax expense 13.0 26.8 5.6 34.2

Depreciation and amortization 277.1 175.5 217.4 235.2

EBITDA [Non-GAAP] $ 412.2 $ 307.8 $ 289.3 $ 430.7

Restructuring, impairment and transaction-related charges 80.6 22.5 62.4 40.7

Loss (gain) on debt extinguishment (14.1) 2.6 (14.1) 2.6

Equity in loss (gain) of unconsolidated entity 1.4 0.8 2.3 (0.1)

Adjusted EBITDA [Non-GAAP] $ 480.1 $ 333.7 $ 339.9 $ 473.9

28

Page 29: PPT Template 2015 · IBISWorld Industry Report and December 2016 Printing Impressions PI400. (2) Source: 2017 Federal Reserve Industrial Production and Capacity Utilization [G17]

September 30, 2017 December 31, 2016

ASSETSCash and cash equivalents $ 15.4 $ 9.0Receivables 542.0 563.6Inventories 308.0 265.4Other current assets 42.7 64.6Property, plant and equipment—net 1,427.4 1,519.9Other intangible assets 47.8 59.7Other long-term assets 94.1 87.9

Total assets $ 2,477.4 $ 2,570.1

LIABILITIES AND SHAREHOLDERS’ EQUITYAccounts payable $ 344.5 $ 323.5Other current liabilities 303.8 346.6Current debt and capital leases 73.0 92.1Long-term debt and capital leases 981.2 1,038.7Deferred income taxes 50.7 35.3Single and multi-employer pension obligations 136.6 162.3Other long-term liabilities 121.6 130.1

Total liabilities $ 2,011.4 $ 2,128.6Shareholders’ equity $ 466.0 $ 441.5

Total liabilities and shareholders’ equity $ 2,477.4 $ 2,570.1

Balance Sheet(US $ Millions)

29

Page 30: PPT Template 2015 · IBISWorld Industry Report and December 2016 Printing Impressions PI400. (2) Source: 2017 Federal Reserve Industrial Production and Capacity Utilization [G17]

Three Months Ended September 30,

2017 2016

Earnings before income taxes and equity in loss of unconsolidated entity $ 31.6 $ 14.2

Restructuring, impairment and transaction-related charges 8.0 26.139.6 40.3

Income tax expense at 40% normalized tax rate 15.8 16.1

Adjusted net earnings [Non-GAAP] $ 23.8 $ 24.2

Basic weighted average number of common shares outstanding 49.5 47.8Plus: effect of dilutive equity incentive instruments [Non-GAAP] 2.0 2.8Diluted weighted average number of common shares outstanding [Non-GAAP] 51.5 50.6

Adjusted Diluted Earnings Per Share [Non-GAAP] $ 0.46 $ 0.48

Diluted Earnings Per Share [GAAP] $ 0.38 $ 0.22

Adjusted Diluted Earnings Per ShareThird Quarter (US $ Millions, Except Per Share Data)

30

Page 31: PPT Template 2015 · IBISWorld Industry Report and December 2016 Printing Impressions PI400. (2) Source: 2017 Federal Reserve Industrial Production and Capacity Utilization [G17]

Nine Months Ended September 30,

2017 2016

Earnings before income taxes and equity in loss of unconsolidated entity $ 79.5 $ 15.3

Restructuring, impairment and transaction-related charges 22.5 62.4Loss (gain) on debt extinguishment 2.6 (14.1)

104.6 63.6

Income tax expense at 40% normalized tax rate 41.8 25.4

Adjusted net earnings [Non-GAAP] $ 62.8 $ 38.2

Basic weighted average number of common shares outstanding 49.4 47.6Plus: effect of dilutive equity incentive instruments [Non-GAAP] 2.2 1.7Diluted weighted average number of common shares outstanding [Non-GAAP] 51.6 49.3

Adjusted Diluted Earnings Per Share [Non-GAAP] $ 1.22 $ 0.77

Diluted Earnings Per Share [GAAP] $ 1.01 $ 0.15

Adjusted Diluted Earnings Per ShareYear-to-Date (US $ Millions, Except Per Share Data)

31