Investor Presentation

May 7, 2008
Safe Harbor Statement

Use of Forward-Looking Statements
This presentation contains quot;forward-looking statementsquot; a...
Non-GAAP Financial Information

The company believes that certain non-GAAP measures, when presented in conjunction with co...
Presenters


    Tom Quinlan        President and CEO

    Miles McHugh       EVP, CFO

    Dan Leib           SVP, Treasu...
Agenda


I.        Executive Summary

II.       Industry Dynamics
             Consolidation

             RR Donnelley’s ...
Executive Summary

                       Largest player in a highly fragmented market
      Scale            Differentiat...
Financial Strength

                                                                           EBITDA (1)                 ...
Business Generates Substantial Cash Flow


                            Cash Flow from Continuing Ops (CFFCO)              ...
Credit Metrics / Importance of Investment Grade


                                                                        ...
Agenda


I.        Purpose of the Meeting

II.       Industry Dynamics
             Consolidation

             RR Donnell...
Trends Shaping Industry


                           Pricing pressure & excess capacity
 Consolidation
                   ...
Consolidating Industry*

                                    RR Donnelley                                     Quebecor Wor...
Consolidating Supplier and Customer Base

Supplier Consolidation
 • Paper companies
 • Ink companies

Consolidation Runs A...
The Evolution of Print Relationships
  Customer Relationships




                                                        ...
Print Relationships Driven by Cost Drivers in the Print
   Supply Chain

                                                 ...
A Large, Highly Fragmented Market Opportunity


                         2006                                       The gl...
Scale and Breadth

 $ in Billions
 SELECTED PRINTERS – 2007E REVENUE
     $15.0



     $10.0


                   $11.6
 ...
RRD is Positioned to Meet Changing Needs

Buying Patterns/Needs             RRD Strategic Selling Proposition
• Cost Compr...
Master Plan

 Multi-year plan drives:
     •   Customer targeting
     •   Capital allocation
     •   M&A priorities


 E...
The Evolution of RR Donnelley’s Strategy


                     Put “World Class” team together
 Management
              ...
The RR Donnelley Strategy – A Living Process



                                   Keys to Success
           Sales Growth...
Blue Chip Customer Relationships



                                Total of 40,000 customers
                            ...
Platform Optimization - Asset Utilization

                  Off peak (1H) growth has exceeded peak (2H) growth from 2004 ...
One RR Donnelley (Illustrative)



                                    Sales and Marketing

                              ...
Acquisition Criteria



Does the acquisition candidate:
1. Help our existing customers?
2. Have capacity where we are cons...
Acquisitions (Core Print)


 Previous core print acquisitions’ overlap allows for straightforward integration:
   • Conser...
The Impact of Distressed Printers

Aggressive pricing began several years ago
Quebecor filed for creditor protection under...
Agenda


I.        Purpose of the Meeting

II.       Industry Dynamics
             Consolidation

             RR Donnell...
Q1 Performance

                                                                               Non-GAAP EPS (1)
          ...
2008 Guidance (Non-GAAP)

     Revenue; $12.35 to $12.45 billion; low single-digit growth pro forma for
     acquisitions
...
2008 Priorities


                         • Leverage “One RR Donnelley” platform and relationships
  Continue to         ...
Operational and Financial Flexibility


Committed available liquidity and cash of $1.5 billion
Structural and financial fl...
Revenue Distribution by End-Markets Is Much More
Diversified Now

             2000 Revenue: $5.8 Billion                 ...
Liquidity as of 3/31/2008


                                                          Total Amount          Outstanding   ...
Strong Liquidity Profile


     $2 billion in commercial paper program backstopped by revolver
     committed through Janu...
Pro Forma Long-Term Debt Maturity Profile

  Weighted average interest rate of ~5.50% on existing long-term debt


  $ in ...
Agenda


I.        Purpose of the Meeting

II.       Industry Dynamics
             Consolidation

             RR Donnell...
Prudent Capital Deployment

 Dividend
   • Quarterly dividend has remained at $0.26 per share since July 2003
 Capital exp...
Our Commitment to Investment Grade Metrics


                        Standard and Poor’s:       BBB+
                     ...
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R.R.donnelley FixedIncomeInvestors05/07/08

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R.R.donnelley FixedIncomeInvestors05/07/08

  1. 1. Investor Presentation May 7, 2008
  2. 2. Safe Harbor Statement Use of Forward-Looking Statements This presentation contains quot;forward-looking statementsquot; as defined in the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on these forward-looking statements and any such forward- looking statements are qualified in their entirety by reference to the following cautionary statements. All forward-looking statements speak only as of the date of this presentation and are based on current expectations and involve a number of assumptions, risks and uncertainties that could cause the actual results to differ materially from such forward-looking statements. The company does not undertake to and specifically declines any obligation to publicly release the results of any revisions to these 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. The factors that could cause material differences in the expected results of RR Donnelley include, without limitation, the following: the successful execution and integration of acquisitions and the performance of the company's businesses following acquisitions; the ability to implement comprehensive plans for the integration of the sales force, cost containment, asset rationalization and other key strategies; competitive pressures in all markets in which the company operates; factors that affect customer demand, including changes in postal rates and postal regulations, changes in the capital markets, changes in advertising markets, the rate of migration from paper-based forms to digital format, customers' budgetary constraints and customers' changes in short-range and long-range plans; shortages or changes in availability, or increases in costs of, key materials (such as ink, paper and fuel); and other risks and uncertainties described in RR Donnelley's periodic filings with the Securities and Exchange Commission (SEC). Readers are strongly encouraged to read the full cautionary statements contained in RR Donnelley's filings with the SEC. May 7, 2008 2
  3. 3. Non-GAAP Financial Information The company believes that certain non-GAAP measures, when presented in conjunction with comparable GAAP measures, are useful because that information is an appropriate measure for evaluating the company’s operating performance. Internally, the company uses this non-GAAP information as an indicator of business performance, and evaluates management’s effectiveness with specific reference to these indicators. These measures should be considered in addition to, not a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. A reconciliation of GAAP net earnings to non-GAAP net earnings and further descriptions are presented in the tables attached to our Earnings Releases, which are available in the investors section of our website, rrdonnelley.com. Also available in the investors section of our website, rrdonnelley.com, is a description of additional non-GAAP financial measures referred to in this presentation. May 7, 2008 3
  4. 4. Presenters Tom Quinlan President and CEO Miles McHugh EVP, CFO Dan Leib SVP, Treasurer Jenny Wong VP, Assistant Treasurer May 7, 2008 4
  5. 5. Agenda I. Executive Summary II. Industry Dynamics Consolidation RR Donnelley’s Strategy Impact of Distressed Printers III. Financial Review Q1 2008 Performance 2008 Guidance IV. Deployment of Capital Credit Metrics and Ratings Commitment May 7, 2008 5
  6. 6. Executive Summary Largest player in a highly fragmented market Scale Differentiating front-end and logistics capabilities Cost advantage driven by platform flexibility and economies in procurement, production and distribution Blue chip customer relationships; single-source provider opportunities Breadth & Broadest offering of industry leading products and services Depth Industry experienced executive and senior management teams Strong cash flow generation in a challenging price environment Financial Growth rate has been greater than the broader print market; largest opportunity is with existing clients Success in managing, acquiring and integrating core print acquisitions Financial discipline and productivity gains drive margin improvement Operational / productivity focus The Way Continue targeted M&A activities Forward Maintain strong investment grade credit metrics May 7, 2008 6
  7. 7. Financial Strength EBITDA (1) ) Net Revenue – ’07 6%+ ’07) (’03 32 % (’03 – $12,350 growth 29% R: US$ in millions US$ in millions $1,752 CAG GR: to CA $1,420 $11,587 $12,450 $1,304 $9,317 $8,430 $1,033 $7,156 $576 $4,183 2003 2004 2005 2006 2007 2008G 2003 2004 2005 2006 2007 2008G PF Sales 4.1% 4.7% 2.5% Growth EBITDA - Capex 15%+ EPS (1) 7) ) – ’07 – ’0 growth (’03 35% $3.08 to (’03 US$ in millions : 22% R: $1,270 AGR $2.94 $3.15 AG C C $2.55 $1,046 $2.29 $833 $768 $1.65 $1.31 $383 2003 2004 2005 2006 2007 2008G 2003 2004 2005 2006 2007 2008G (1) Excludes restructuring, impairment, integration charges and other one-time items. May 7, 2008 7
  8. 8. Business Generates Substantial Cash Flow Cash Flow from Continuing Ops (CFFCO) CAGR $ in millions CFFCO - Capex 33% $1,177 1,200 $972 1,000 $904 $759 800 $695 39% 600 $530 $501 $494 $376 400 $183 200 0 2003 2004 2005 2006 2007 May 7, 2008 8
  9. 9. Credit Metrics / Importance of Investment Grade 2007 $ in millions Actual EBITDA 1,752 Cash 379 Total Debt 4,327 Net Debt 3,948 Total Debt / EBITDA 1 2.5x EBITDA / Interest 7.7x Standard and Poor’s: BBB+ Moody’s: Baa2 Fitch: BBB (1) The Cardinal Brands acquisition closed on 12/27/2007, as such no material impact to EBITDA in 2007. (2) EBITDA represents “Operating income (loss) excluding restructuring and impairment charges” plus “Depreciation and amortization” as reported in the company’s press release. May 7, 2008 9
  10. 10. Agenda I. Purpose of the Meeting II. Industry Dynamics Consolidation RR Donnelley’s Strategy Impact of Distressed Printers III. Financial Review Q1 2008 Performance 2008 Guidance IV. Deployment of Capital Credit Metrics and Ratings Commitment May 7, 2008 10
  11. 11. Trends Shaping Industry Pricing pressure & excess capacity Consolidation Industry fragmentation (Printers, Suppliers & Customers) Large / diversified printers are better positioned to be successful Total System Printers who are able to offer lowest total print / document Cost Focus management cost and higher ROI are advantaged Customer Shift toward variable (customized), higher value-add print Relationship IT / data management capabilities increasingly important Management to customers Trends generally continuing at same pace Electronic Substitution Impact differs by print sector: results in new products / services Positive and negative implications Regulatory Changes Printers’ ability to offer compliance assurance / secure environment increasingly important May 7, 2008 11
  12. 12. Consolidating Industry* RR Donnelley Quebecor World Cenveo Vertis Consolidated Graphics 1980 Banta Moore RR Donnelley World Color Quebecor Cadmus Mail Well Big Flower Consolidated Graphics Bushman Quality Color American InLine Graphics Alden Press Pendell Waverly Press American Envelope Treasure Chest AGS Custom Graphics Danbury Printing Nielsen Ringier (SR) Ringier Eusey Press Lancaster Press Supermex Retail Graphics Eastwood Printing Greenfield Wallace Meredith/Burda Brown (Franklin) Arcata Mack Printing Graphic Art Center Laser Tech Kelmscott Astron 9 Commercial Co's ASG RX Label Tech Webcraft Litho Graphix Asia Printers Group Petty Commercial Envelope County Pub Global Group Poligrafia Maxwell Rex Corporation KTB Electricity Printing Spencer Press Diversified Print Co Nies/Artcraft AdPlex (Charlestown) Alco Gravure Riverside Graphcom OfficeTiger Kable Pacific Color Annan & Bird Perry Judd's Providence Colorstream Hennegan Von Hoffmann Web Cyril Scott Cardinal Brands Pikes Peak Lithographing Pro Line Printing Banta Moore Wallace RR Donnelley World Color Quebecor Cadmus Cenveo Moore Wallace World Color Cadmus Banta 2008 RR Donnelley Quebecor World Cenveo Vertis Consolidated Graphics •Sample representation – estimated total of 39,088 printing facilities in the United States at the end of 2006 (PIA/GATF, April 3, 2007) Source: RR Donnelley management estimates May 7, 2008 12
  13. 13. Consolidating Supplier and Customer Base Supplier Consolidation • Paper companies • Ink companies Consolidation Runs Across Business Spectrum • Media Companies • Retailers • Catalogers • Directory Publishers • Magazine and Book Publishers • Pharmaceuticals • Automotive • Bank/Financial Institutions • Food Industry May 7, 2008 13
  14. 14. The Evolution of Print Relationships Customer Relationships Clients focus on print supply chain, not just print Total Cost of Process/Procurement Function RRD reaches across total value chain Ability to bring scale 100% of Core Product(s) • Procurement • Distribution • Production Multiple Product Relationships Leverage the relationship • 100% Positions Single Product • Trust in place Relationships • Vested Interest 1864 2008+ 2000 2006 Time Source: Derived from InfoTrends/Cap Ventures May 7, 2008 14
  15. 15. Print Relationships Driven by Cost Drivers in the Print Supply Chain • Return • Printed • Printed Analysis Product Product • Administration 14% 14% • External / Internal Creative • Postage • Internal Document Prep / Review 86% 86% • Fulfillment / Distribution • Warehousing / • Inventory Archiving Obsolescence Source: Derived from InfoTrends/CAP Ventures, December 10, 2004. May 7, 2008 15
  16. 16. A Large, Highly Fragmented Market Opportunity 2006 The global print Industry grew 2% in 2006 to $374 Total U.S. Printing Industry billion $171.5 Bn • Forecast of $422.7 billion in 2011; 2.5% CAGR Commercial Printing The US print market grew 3.3% in 2006 to $171.5 Newspaper 22% billion • Forecast of continued growth of 2-3% through 2010 45% Despite some recent consolidation, the industry remains highly fragmented 16% • In the EU25 states, estimate of 120,000 printing Packaging companies; mean of 8 employees • Top 400 printers in the US account for less than 30% 7% of the market 4% 6% Forms, Labels RR Donnelley is the largest printer in the world and Specialty, Trade the US Greeting Services (PreMedia) Growth: 3.3% (2005 – 2006) Source: Datamonitor, Global Commercial Printing, March 2007 Source: PIA/GATF, Economic & Print Market Flash Report, April 3, 2007 May 7, 2008 16
  17. 17. Scale and Breadth $ in Billions SELECTED PRINTERS – 2007E REVENUE $15.0 $10.0 $11.6 $5.0 $8.0 $6.3 $5.7 $1.4 $1.1 $0.9 $0.8 $0.7 $2.3 $2.1 $2.0 $1.6 $0.0 (b) (a) (c) PRODUCT AND SERVICE OFFERING MCR & Forms and Statement Company Commercial Direct Marketing Directories Books Labels Financial Print Outsourcing Document BPO Quebecor World Quad Graphics Brown Printing (Bertelsmann) Cenveo Toppan Printing Transcontinental Vertis Deluxe Corp Bowne & Co. Dai Nippon Printing Merrill Standard Register Consolidated Graphics Workflow DST Williams Lea Xerox Pitney Bowes ADP Innerworkings Note: Vertis is LTM revenue. Quad Graphics is reported annual sales per Quad’s website as of 4/30/08. (a) Estimated revenue for Information Network segment only. Total revenue is estimated to be $15.1 billion. (b) Estimated revenue for Information Communication segment only. Total revenue is estimated to be $14.7 billion. (c) Estimated revenue of ~$700 million reflect Brown Printing and Arvato. May 7, 2008 17
  18. 18. RRD is Positioned to Meet Changing Needs Buying Patterns/Needs RRD Strategic Selling Proposition • Cost Compression/Synergy • Diversified Global Platform • Total System Cost Approach • Scale Across All Operations • Economies of Scale Required • Differentiated Logistics/Fulfillment Offering • ROI Management Focus • Complete Print Management Services • Product Reengineering • Linkage With ALL Media Types • Personalization/Variability • Ability To Expand With Customers • Outsourcing Print Procurement Ma ste r Pla n May 7, 2008 18
  19. 19. Master Plan Multi-year plan drives: • Customer targeting • Capital allocation • M&A priorities End market analysis • Growth • Costs • Investments May 7, 2008 19
  20. 20. The Evolution of RR Donnelley’s Strategy Put “World Class” team together Management Built support infrastructure • Admin/Finance/Ops Developed and implemented new strategy Investment Built, through organic investments and acquisitions, flexible full-service platform Focused on continual productivity improvements Operational Absorbed equipment installs Absorbed and integrated acquisitions Asserted disciplines/metrics (cost compression culture) Move quickly to restructure as pricing and demand changes May 7, 2008 20
  21. 21. The RR Donnelley Strategy – A Living Process Keys to Success Sales Growth Targets Industry and market knowledge Sales planning Platform Optimization Leveraging scale as one platform Investment prioritization Advance planning for major cost Organic Investment takeout actions Acquisitions May 7, 2008 21
  22. 22. Blue Chip Customer Relationships Total of 40,000 customers • 155 customers with revenue > $10 million (1) • 980 customers with revenue > $1 million (1) Serve over 90% of Fortune 500 and have approximately 15% of their print spend • Opportunity to continue to grow our Fortune 500 Relationships (1) Revenue in 2007 May 7, 2008 22
  23. 23. Platform Optimization - Asset Utilization Off peak (1H) growth has exceeded peak (2H) growth from 2004 to 2007 EBITDA (3) 2nd Half 2nd Half 61% 52% 1st Half 1st Half 48% 39% 2007(2) 2004 (1) (1) 2004 includes pro forma results of Moore Wallace for Q1 as reported in Form 8-K (6/17/04) and 3 quarters of as reported results for Q2 – Q4 2004. (2) 2007 represents full-year results as reported. (3) EBITDA represents “Operating income (loss) excluding restructuring and impairment charges” plus “Depreciation and amortization” as reported in the company’s press release. May 7, 2008 23
  24. 24. One RR Donnelley (Illustrative) Sales and Marketing Directory Book Magazine Healthcare Financial Retail Publisher Publisher Publisher Internal Process (Pricing, Production Planning) One Global Platform PREPARE PRODUCE DELIVER Gravure Offset Bindery Sheetfed Digital May 7, 2008 24
  25. 25. Acquisition Criteria Does the acquisition candidate: 1. Help our existing customers? 2. Have capacity where we are constrained? 3. Have synergy opportunities? May 7, 2008 25
  26. 26. Acquisitions (Core Print) Previous core print acquisitions’ overlap allows for straightforward integration: • Conservatively estimate savings • Considerable cost-savings available through reduction in corporate expense and improved operational efficiencies (utilization; procurement) • Open capacity of acquired companies allows for reduced RRD capital investment in future Significant depth of experience integrating acquisitions and restructuring companies: • Successfully restructured Moore in late 2000 • Successfully integrated Wallace Computer Services in 2003 • Successfully integrated RRD/MWI in 2004 • Successfully integrated Banta, Perry Judd’s and Von Hoffmann in 2007 • Successfully integrating Cardinal and Pro Line in 2008 May 7, 2008 26
  27. 27. The Impact of Distressed Printers Aggressive pricing began several years ago Quebecor filed for creditor protection under the Companies’ Creditors Arrangement Act (CCAA) in Canada and Chapter 11 of the U.S. Bankruptcy Code in the U.S. on 1/21/08 Market rumors of liquidity issues at other printers Differences • Management & culture • Breadth of product offering • Workforce relations • Ownership structure Opportunities for RRD • Brand strength • Financial strength • Multiple products & services May 7, 2008 27
  28. 28. Agenda I. Purpose of the Meeting II. Industry Dynamics Consolidation RR Donnelley’s Strategy Impact of Distressed Printers III. Financial Review 2008 Q1 Performance 2008 Guidance IV. Deployment of Capital Credit Metrics and Ratings Commitment May 7, 2008 28
  29. 29. Q1 Performance Non-GAAP EPS (1) Net Sales ($ in millions) $0.69 $0.66 $2,997 $0.57 $2,793 $0.54 $2,267 +7.3%* $1,927 2005 2006 2007 2008 2007 2008 2006 2005 (1) Excludes restructuring, integration and impairment expenses and ‘one-time’ items * Revenue, proforma for acquisitions, grew 1% from Q1:2007 to Q1:2008 May 7, 2008 29 (a) Includes synergies in forecasted periods.
  30. 30. 2008 Guidance (Non-GAAP) Revenue; $12.35 to $12.45 billion; low single-digit growth pro forma for acquisitions Operating margin (non-GAAP) slight expansion over 2007’s 10%(1) Depreciation and amortization; ~ $640 million, includes ~ $130 million of purchase accounting amortization Interest expense – net; ~ $235 million Effective tax rate (non-GAAP); ~ 33% to 34% Non-GAAP EPS (fully diluted) = $3.08 to $3.15(1) Capex = ~$400 million EBITDA – Capex = Growth 15%+ (1) Assumes no additional shares repurchased. Excludes, if any, restructuring and impairment charges and the resolution of certain tax items and other items that are not currently determinable, but may be significant. For that reason, the Company is unable to provide full-year GAAP net earnings and operating margin estimates at this time. May 7, 2008 30
  31. 31. 2008 Priorities • Leverage “One RR Donnelley” platform and relationships Continue to • Employ integrated sales approach across RRD platform Continue to Capture Share • Target significant Print Management opportunities; gain Capture Share additional 100% positions • Focus on filling off-peak capacity • Finalize integration of Banta, Perry Judd’s and Von Hoffmann Integration • Cardinal Brands and Pro Line integration underway Integration • Direct IT investments to facilitate integration • Continue to pursue niche core print targets that meet changing M&A Activity M&A Activity customer demands, serve our capacity needs and have cost savings opportunities May 7, 2008 31
  32. 32. Operational and Financial Flexibility Committed available liquidity and cash of $1.5 billion Structural and financial flexibility to react to market conditions • Manage capital deployment – Capital spending – Share repurchase – M&A activities • Variable cost reduction – Incentive compensation – Workforce reduction – Plant closures Much more diversification in our business portfolio than in the past Experienced management team with proven track record May 7, 2008 32
  33. 33. Revenue Distribution by End-Markets Is Much More Diversified Now 2000 Revenue: $5.8 Billion 2007 Revenue: $11.6 Billion 3% 15% 6% 24% 2% 4% 11% 37% 7% 1% 12% 5% 14% 5% 7% 10% 8% 29% MagCatRetail Book/Dir Var. Print F&L MagCatRetail Book/Dir Logistics Fin Print Com Print Logistics Fin Print Digital Sol Digital Sol Int'l Var Print BPO GTS Int'l May 7, 2008 33
  34. 34. Liquidity as of 3/31/2008 Total Amount Outstanding Available $ in millions $398 $- $398 Cash 2,000 Committed Revolver/CP Market 1 Year – Due August ’08 1 300 9 Months – Due May ’08 1 50 517 Commercial Paper $2,000 $867 $1,133 Total Committed Revolver/CP Market $2,398 $867 $1,531 Available Liquidity (1) Replaced $400mm commercial paper balance with drawings under the $2 billion revolver in August 2007, $50mm of which was repaid in February 2008. May 7, 2008 34
  35. 35. Strong Liquidity Profile $2 billion in commercial paper program backstopped by revolver committed through January 8, 2012 • Maintained flexibility during market liquidity crunch in August 2007 • Replaced a portion of CP balance with bank debt – $350 million bank debt maturing in May and August • CP balance at 3/31/2008 was $517 million Financial covenants of revolver: • Interest coverage ratio of not less than 3:1 • Leverage ratio of not higher than 4:1 • In compliance with the covenants at 3/31/2008 May 7, 2008 35
  36. 36. Pro Forma Long-Term Debt Maturity Profile Weighted average interest rate of ~5.50% on existing long-term debt $ in millions $1,200 970 $1,000 $800 624 599 $600 499 499 400 $400 $200 $0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017+ Interest Rate 3.75% 4.95% 5.63% 4.95% 5.50% 6.65% May 7, 2008 36
  37. 37. Agenda I. Purpose of the Meeting II. Industry Dynamics Consolidation RR Donnelley’s Strategy Impact of Distressed Printers III. Financial Review Q1 2008 Performance 2008 Guidance IV. Deployment of Capital Credit Metrics and Ratings Commitment May 7, 2008 37
  38. 38. Prudent Capital Deployment Dividend • Quarterly dividend has remained at $0.26 per share since July 2003 Capital expenditures • Capital investment is approximately $400mm for 2008. Reduction of approximately $82mm from 2007 M&A • Focus on core print opportunities Share repurchases • 7.7 million shares repurchased in 2007 • Replenished in February 2008 authorization back to 10 million shares • 2.7 million shares repurchased in 2008 May 7, 2008 38
  39. 39. Our Commitment to Investment Grade Metrics Standard and Poor’s: BBB+ Moody’s: Baa2 Fitch: BBB RRD has emerged as the leader in the commercial printing industry • Unparalleled scale in highly competitive industry • Broadest portfolio of products and services • Financial results have consistently exceeded expectations over the last four years We are committed to strong investment grade metrics May 7, 2008 39

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