INVESTOR PRESENTATION Third Quarter 2020
SAFE HARBOR & NON-GAAP USE OF FORWARD LOOKING STATEMENTS NON-GAAP FINANCIAL INFORMATION This presentation contains “forward - looking statements” within the meaning of, and subject to the safe harbor created This document contains non-GAAP financial measures, including non- by, Section 21E of the Securities Exchange Act of 1934, as amended, with respect to the business, strategy and plans GAAP adjusted income from operations, non-GAAP adjusted operating of the Company and its expectations relating to future financial condition and performance. Readers are cautioned not margin, non-GAAP effective tax rate, non-GAAP adjusted diluted EPS to place undue reliance on these forward-looking statements and any such forward-looking statements are qualified in and net organic sales growth rate. The Company believes that these their entirety by reference to the following cautionary statements. All forward-looking statements speak only as of the non-GAAP measures, when presented in conjunction with comparable date of this presentation and are based on current expectations and involve a number of assumptions, risks and GAAP measures, provide useful information about its operating results uncertainties that could cause the actual results to differ materially from such forward-looking statements. Words such and enhance the overall ability to assess the Company’s financial as “believes”, “anticipates”, ”estimates”, “expects”, “intends”, “aims”, “potential”, “will”, “would”, “could”, “may”, performance. Internally, the company uses this non-GAAP information “considered”, “likely”, and variations of these words and similar future or conditional expressions are intended to as an indicator of business performance, and evaluates management’s identify forward-looking statements but are not the exclusive means of identifying such statements. Such forward- effectiveness with specific reference to these indicators. These looking statements are only predictions and involve known and unknown risks and uncertainties. The Company does measures should be considered in addition to, not a substitute for, or not undertake to and specifically disclaims any obligation to publicly release the results of any revisions to these superior to, measures of financial performance prepared in accordance forward-looking statements that may be made to reflect future events or circumstances after the date of such statement or to reflect the occurrence of anticipated or unanticipated events. These factors include such risks and with GAAP. A reconciliation of GAAP to non-GAAP financial measures uncertainties detailed in the Company’s periodic public filings with the SEC, including but not limited to, those can be found in our periodic filings with the Securities and Exchange discussed under the “Risk Factors” section in the Company’s Form 10 -K for the fiscal year ended December 31, 2019 Commission and in the investors section of our website, www.rrd.com. and Form 10-Q for the quarter ended June 30, 2020, and other filings with the SEC and in other investor communications from the Company from time to time. 2
COMPANY REPRESENTATIVES Dan Knotts Terry Peterson Johan Nystedt President & CEO EVP, CFO SVP, Finance RRD RRD RRD 3
LEADING PROVIDER OF MARKETING & BUSINESS COMMUNICATIONS 4
RRD AT A GLANCE Providing integrated end-to-end customer communications services › 50,000+ Clients across virtually all market segments Marketing Solutions 20% › 36,400 Employees worldwide $6.3 billion › 261 2019 Net Sales Locations Business Services › 29 80% Countries As of December 31, 2019 5
RRD – A MARKETING AND BUSINESS COMMUNICATIONS COMPANY CLIENT COMPANY Business Insight connections RRD MARKETING RRD BUSINESS SOLUTIONS SERVICES Empowering brands Enabling companies Product to optimize customer Inspiration to service and strengthen connections engagement with customer relationships maximum return with maximum efficiency Interaction Business processes CLIENT CUSTOMERS 6
RRD MARKETING SOLUTIONS Innovative offerings to help our clients optimize engagement with their customers Data Science Direct Marketing Advanced Analytics Insight Empowering brands Creative Services Audience Modeling to optimize customer Loyalty Programs Content Management engagement with Inspiration maximum return In-Store Digital Print and Fulfillment Marketing Interaction 7
RRD BUSINESS SERVICES Comprehensive capabilities to help our clients service, inform and transact with their customers Customer Business Commercial Print Business Communications Forms Connections Enabling companies to service customers Packaging Labels and strengthen Product relationships with Connections maximum efficiency Supply Chain Business Process Logistics Business Management Outsourcing Processes 8
EXTENSIVE AND DIVERSE CLIENT BASE 94% Fortune 100 50,000+ 86% Global Fortune 500 Clients “I have been in the “We want to work with the “Our thanks to RRD for not “Our communications are Contract leader in the industry to only making the programs the confirmation of our Management/Strategic stay on the forefront of this run as intended, but for promises to our customers Sourcing arena for many rapidly changing and helping {us} come up with and we have to get them years. You are definitely in complex environment. solutions to potential right. We have been very 74% the top 1% of vendors with production challenges good at managing our Communications are whom I’ve engaged. You based on our unique communications with our critical to our success and Fortune 1000 requirements.” are responsive, customers, but we are RRD can help us with a professional, thorough, and expanding our partnership more holistic approach to - Top Ten Banking Institution a delight to work with.” with RR Donnelley to make how we manage the full us even better.” spectrum of our - Top Retail Firm communications efforts.” - Top Financial ServicesFirm - Top Healthcare Firm With our differentiated multichannel offerings and comprehensive portfolio of capabilities, RRD serves clients from Main Street to the Fortune100 9
LIMITED CLIENT CONCENTRATION ACROSS BROAD RANGE OF INDUSTRIES Revenue Concentration – Top 10 Clients (2019) Estimated Revenue by Industry (2019) Financial Consu sumer Technology 15% Other Comp mpany 24% Top 10 Retail 14% 15% 4% Publishing 8% Manufacturing – 85% 13% Other Services 11% 11% Healthcare Other Manufacturing – Consumer Goods Note: Based on data covering $5.7bn out of $6.3bn in total 2019 sales. 10
RRD STRATEGIC PRIORITIES REMAIN THE SAME • Realigned capacity to reflect changes in client volumes • Realigned capacity to reflect changes in client volumes • Strengthen Core Executed aggressive actions to reduce cost structure, including $47.7 Strengthen Core • Executed aggressive actions to reduce cost structure, including $47.7 million reduction in adjusted SG&A expense in the quarter million reduction in adjusted SG&A expense in the quarter • Captured new sales opportunities as a result of the pandemic • Captured new sales opportunities as a result of the pandemic Drive Revenue Drive Revenue • Introduced new products and services to meet the evolving needs of clients • Introduced new products and services to meet the evolving needs of clients • Completed three debt exchanges, repaid the 2020 Senior Notes and repurchased additional debt due in 2021 during the quarter Improve • Aggregated maturities for Senior Notes and Debentures due in 2020 to 2024 Financial Flexibility now total $394 million, down $628 million from the beginning of the year • Sold Logistics Courier business and three U.S. facilities year to date Firmly on our strategic path to advance RRD as a leading provider of marketing and business communications 11
WINNING THROUGH INTEGRATED SOLUTIONS 12
BUILDING FOR THE FUTURE BY INTEGRATING PRINT AND DIGITAL OBSERVATIONS DATA ANALYTICS Comprehensive portfolio of print and marketing products and services ADDRESSABLE Leading provider of integrated solutions PRINT MARKET to broad and diverse set of clients RRD Potential to further drive client spend Integrated print & digital solutions across entire RRD portfolio by enhancing digital and data capabilities $112B (1) Opportunities to extend scale in existing capabilities and “in source” additional DIGITAL work EXECUTION (1) Per 2017 Bain analysis. 13
RRD VALUE PROPOSITION Comprehensive solutions to reduce complexity, drive efficiency, and enhance effectiveness Brand Brand Management Management Data List Data List Analytics Management Management Analytics Postage & Postage & Photography Photography Mailing Mailing Ops Creative Logistics/ Creative Logistics/ Freight Design Freight Design Stores Sales Warehousing Warehousing Translation Translation & Fulfillment & Fulfillment Campaign Campaign Premedia Premedia Management Management Services Services HR Mktg Vendor Vendor Multichannel Multichannel Management Management Output Output Design Print Design Print Consultation Production Consultation Production Specification Specification Management Management 14
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