Apex Printing
Balance Sheets
As of December 31, 2013 and 2012

000$ 000$

Assets 2013 2012
Cash 6,000 5,700
Accounts Receivable 2,350 2,300
Inventory 12,100 6,500
Total Current Assets 20,450 14,500

Land 25,000 20,000
Building & Equipment 300,000 300,000
Less: Accumulated Depreciation – Building & Equipment (187,850) (160,000)
Total Long Term Assets 137,150 160,000
Total Assets 157,600 174,500

Liabilities and Stockholders’ Equity

Accounts Payable 4,600 3,500
Salaries Payable 0 2,100
Interest Payable 1,500 0
Short Term Notes Payable 12,000 0
Taxes Payable 0 5,600
Total Current Liabilities 18,100 11,200

Mortgate Payable 54,950 100,000
Total Long Term Liabilities 54,950 100,000

Common Stock 60,000 60,000
Retained Earnings 24,550 3,300
Total Stockholders’ Equity 84,550 63,300
Total Liabilities and Stockholders’ Equity 157,600 174,500

Apex Printing
Income Statements

For the Periods Ended December 31, 2013 and 2012 000$ 000$

2013 2012

Revenue: 450,000 475,000

Less: Cost of Goods Sold (324,300) (374,500)

Less: Depreciation Expense (27,850) (26,000)

Gross Margin 97,850 74,500

Selling, General & Administrative Expenses (29,100) (32,000)

Income Before Interest & Taxes 68,750 42,500

Interest Expense (7,500) (6,000)

Income Before Taxes 61,250 36,500

Income Taxes (35,000) (30,000)

Net Income 26,250 6,500

Apex Printing

Statement of Cash Flows

For the Period Ended December 31, 2013

000$

Cash Flows from Operating Activities:
Net Income 26,250

Adjustments to reconcile net income to net cash provided by
operating activities

Depreciation Expense 27,850
Increase in accounts receivable (50)
Increase in inventory (5,600)
Decrease in salaries payable (2,100)
Increase in interest payable 1,500
Decrease in taxes payable (5,600)
Increase in Short Term notes Payable 12,000
Increase in accounts payable 1,100
Net Cash Flow from Operating Activities

55,350

Cash Flows from Investing Activities:
Cash paid to purchase land (5,000)

Net Cash Flow from Investing Activities

(5,000)

Cash Flows From Financing Activities:

Cash paid for mortgage (45,050)
Cash paid for dividends (5,000)
Net Cash Flow from Financing Activities

(50,050)

Net Increase in Cash

300

Plus: Cash Balance at December 31, 2012

5,700

Cash Balance at December 31, 2013

6,000

Impreso, Inc. Profile

652 Southwestern Blvd
Coppell, TX 75019-4419 United States
Phone: 1-972-462-0100
http://www.tstimpreso.com

WELCOME

Hoover’s is the business information resource that delivers a unique combination of up-to-date data, broad
coverage, and comprehensive information about companies, decision makers, and industries – along with
powerful tools to put this information to work for your business. Hoover’s offers everything you need to
successfully:

* Identify and evaluate potential sales leads, markets, and business partners
* Deepen relationships with current customers
* Assess competitive risks and eliminate threats
* Build presentation-ready reports and customized lists of companies, industries, and decision makers

Unlike other business information providers, only Hoover’s has a full-time, in-house editorial and research team
dedicated wholly to investigating, pinpointing, authenticating, and analyzing data to provide the most
comprehensive, up-to-date information available on companies, industries, and executives.

HOOVERS.COM866-541-3770 ? September 14, 2021 ? PAGE i

HOOVERS.COM866-541-3770 ? September 14, 2021 ? PAGE ii

Table of Contents

Company Overview 1

Key Information 1

Key Financials 1

Key People 2

Industry Information 3

People 4

Employees 4

Board Members 4

Biographies 5

MARSHALL D SOROKWASZ 5

DONALD E JETT 5

JEFF BOREN 5

JOHN L GRAVES 5

SUSAN M ATKINS 5

Company Financials 7

Financial Summary 7

Annual Income Statement 8

Quarterly Income Statement 9

Annual Balance Sheet 10

Quarterly Balance Sheet 11

Annual Cash Flow 12

Quarterly Cash Flow 13

Financial Market Data 14

Historical Financials 15

Competition 16

Competitors List 16

Competitive Landscape 16

HOOVERS.COM866-541-3770 ? September 14, 2021 ? PAGE 1

Company Overview

652 Southwestern Blvd
Coppell, TX 75019-4419 United States
Phone: 1-972-462-0100
http://www.tstimpreso.com

Money is just paper to holding company Impreso. Impreso, a Spanish word meaning “printed matter,” was
founded in 1976. Through its primary subsidiary TST/Impreso, the company makes and distributes specialty
paper and film imaging products. Its paper products include thermal fax, copier, wide-format, continuous-feed,
and special surface papers, such as film transparencies. Impreso operates a number of manufacturing plants
and distributes in North America through its warehouses to dealers and other resellers. Impreso owns two other
subsidiaries: Hotsheet.com (provides links to popular websites), and Alexa Springs (a custom-label water
bottling business). Impreso suspended its SEC reporting obligations in 2006.

Key Information

DUNS Number 021366930
Location Type Parent/Headquarters
Subsidiary Status No
Manufacturer Yes
Company Type Publicly Traded Company – Corporation
Plant/Facility Size (Square Feet) 75,000.00
Owns/Rents
Accountant
Total Employees 201
Employee Growth (1-5 years) 18%
Employees At This Location 75
Year of Founding or Change in Control 2000
Primary Industry 1068: Commercial Printing
Primary SIC Code 27610000: Manifold business forms
Primary NAICS Code 323111: Commercial Printing (except Screen and

Books)
Tradestyle TSTImpreso
Latitude/Longitude 32.948529 / -97.009799

Key Financials

Fiscal Year-End August
2005 Sales (Actual) $77.73M
1-Year Sales Growth (25.25)%
Net Income $(2,909,328.00)
1-Year Net Income Growth 0.00%
Total Assets $41.79M
Market Value $14.15M
Prescreen Score Low Risk

HOOVERS.COM866-541-3770 ? September 14, 2021 ? PAGE 2

Key People

Name Title

MARSHALL D SOROKWASZ Chairman of the Board, President
DONALD E JETT Secretary
JEFF BOREN Vice President
JOHN L GRAVES Vice President
SUSAN M ATKINS Vice President

HOOVERS.COM866-541-3770 ? September 14, 2021 ? PAGE 3

Industry Information

Primary SIC Code
27610000: Manifold business forms

Primary NAICS Code
323111: Commercial Printing (except Screen and Books)

HOOVERS.COM866-541-3770 ? September 14, 2021 ? PAGE 4

People

Employees

Title Name Age Salary Bonus

Chairman of the Board,
President

MARSHALL D SOROKWASZ — $367,454.00 —

Secretary DONALD E JETT — — —
Vice President JEFF BOREN — — —
Vice President JOHN L GRAVES — $147,093.00 —
Vice President SUSAN M ATKINS — $131,274.00 —

Board Members

Title Name Age

Chairman of the Board, President MARSHALL SOROKWASZ —
Board Member JEFF BOREN —

HOOVERS.COM866-541-3770 ? September 14, 2021 ? PAGE 5

Biographies

MARSHALL D SOROKWASZ

Chairman of the Board, President, Chief Executive Officer, Treasurer

Salary: $367,454.00

Biography
Marshall D. Sorokwasz, 62, is one of the founders of the Company and has been our President, Chief Executive
Officer, and a Director since our organization in 1976, Treasurer since 1992, and Chairman of the Board since
1996. Prior thereto, Mr. Sorokwasz held several positions with O.E.I. Business Products of Chicago, Illinois, a
manufacturer and distributor of continuous business forms.

DONALD E JETT

Secretary and Director

Biography
Donald E. Jett, is also a founder of the Company and has been a Director and the Secretary of the Company
since 1976. Currently, Mr. Jett is retired. From 1994 to 1999, Mr. Jett worked as a consultant to Budget Cardio, a
company that sold and refurbished new and used cardiovascular exercise equipment. During 1993, Mr. Jett
owned and operated Uniglobe Clocktower Travel, a travel agency in Coppell, Texas. From 1978 until May 1991,
Mr. Jett served as a Vice President and a Director of Origami, Inc., a business consumable wholesaler. Prior to
working at Origami, Inc., he was a regional sales manager for 11 years in a division of Scott Paper Company,
with sales responsibilities for 21 states.

JEFF BOREN

Vice President

JOHN L GRAVES

Vice President, Manufacturing

Salary: $147,093.00

Biography
John L. Graves was promoted to Vice President of Manufacturing in June 1986. Prior to being elected Vice
President, Mr. Graves was Operations Manager with the Company since August 1981.

SUSAN M ATKINS

Chief Financial Officer, Vice President-Finance, Assistant Secretary

HOOVERS.COM866-541-3770 ? September 14, 2021 ? PAGE 6

Salary: $131,274.00

Biography
Susan M. Atkins has been Vice President of Finance and Chief Financial Officer of the Company since
December 1995, and Assistant Secretary since November 1999. Ms. Atkins was Controller of the Company prior
to her election as Vice President of Finance and Chief Financial Officer.

HOOVERS.COM866-541-3770 ? September 14, 2021 ? PAGE 7

Company Financials

Financial Summary

Company Type Publicly Traded Company – Corporation
Norwegian OTC:ZCOM
Parent/Headquarters

Fiscal Year-End August
2005 Sales (Actual) $77.73M
1-Year Sales Growth (25.25)%
2005 Net Income $(2,909,328.00)
1-Year Net Income Growth 0.00%
Prescreen Score Low Risk

HOOVERS.COM866-541-3770 ? September 14, 2021 ? PAGE 8

Annual Income Statement

All amounts in millions of US Dollars except per share amounts.

Aug 2005 Aug 2004 Aug 2003 Aug 2002
Revenue 77.73 103.99 117.22 123.07
Cost of Goods Sold 73.55 90.28 103.43 110.45
Gross Profit 4.18 13.71 13.79 12.62
Gross Profit Margin 5.38% 13.18% 11.76% 10.25%
SG&A Expense 9.06 10.88 11.30 9.33
Depreciation and Amortization — — — —
Operating Income (4.03) 2.83 2.49 3.29
Operating Margin (5.18%) 2.72% 2.12% 2.67%
Nonoperating Income — — — —
Nonoperating Expenses — — — —
Income Before Taxes (4.51) (1.69) 1.02 2.73
Income Taxes (1.60) 0.67 0.40 1.05
Net Income After Taxes (2.91) 1.01 0.62 1.68

Continuing Operations (2.91) 1.01 0.62 1.68
Discontinued Operations — — — —
Total Operations — — — —
Total Net Income (2.91) 1.01 0.62 1.68
Net Profit Margin (3.74%) 0.97% 0.53% 1.37%

Diluted EPS from Continuing Operations — — — —
Diluted EPS from Total Operations — — — —
Diluted EPS from Total Net Income (0.55) 0.19 0.12 0.32
Dividends Per Share — — — —

HOOVERS.COM866-541-3770 ? September 14, 2021 ? PAGE 9

Quarterly Income Statement

All amounts in millions of US Dollars except per share amounts.

Quarter Ending May 2006 Feb 2006 Nov 2005 Aug 2005 May 2005
Revenue 17.84 16.12 17.84 19.29 19.83
Cost of Goods Sold 15.74 14.88 16.24 17.77 18.73
Gross Profit 2.10 1.24 1.60 1.52 1.10
Gross Profit Margin 11.77% 7.69% 8.97% 7.88% 5.55%
SG&A Expense 1.88 1.91 1.84 2.33 2.22
Depreciation and Amortization — — — — —
Operating Income 0.26 (0.63) (0.18) (0.39) (1.08)
Operating Margin 1.46% (3.91%) (1.01%) (2.02%) (5.45%)
Nonoperating Income — — — — —
Nonoperating Expenses — — — — —
Income Before Taxes (0.07) (0.90) (0.51) (0.74) (0.85)
Income Taxes (0.01) (0.28) (0.17) (0.37) (0.27)
Net Income After Taxes (0.05) (0.62) (0.33) (0.37) (0.57)

Continuing Operations (0.05) (0.62) (0.33) (0.37) (0.57)
Discontinued Operations — — — — —
Total Operations — — — — —
Total Net Income (0.05) (0.62) (0.33) (0.37) (0.57)
Net Profit Margin (0.28%) (3.85%) (1.85%) (1.92%) (2.87%)

Diluted EPS from Continuing Operations — — — — —
Diluted EPS from Total Operations — — — — —
Diluted EPS from Total Net Income (0.01) (0.12) (0.06) (0.07) (0.11)
Dividends Per Share — — — — —

HOOVERS.COM866-541-3770 ? September 14, 2021 ? PAGE 10

Annual Balance Sheet

All amounts in millions of US Dollars except per share amounts.

Assets
Aug 2005 Aug 2004 Aug 2003 Aug 2002

Cash — 0.17 0.10 0.20
Net Receivables 9.00 12.67 12.14 15.86
Inventories 16.75 22.64 28.46 34.11
Other Current Assets — — — —
Total Current Assets 29.33 36.55 41.42 50.92
Net Fixed Assets 12.39 15.12 14.83 15.94
Other Noncurrent — — — —
Total Assets 41.79 51.75 56.34 66.97

Shareholder’s Equity
Aug 2005 Aug 2004 Aug 2003 Aug 2002

Preferred Stock Equity — — — —
Common Stock Equity 0.05 0.05 0.05 0.05
Total Equity 15.15 18.05 17.04 16.42
Shares Outstanding (M) 5.28 5.28 5.28 5.28

Liabilities
Aug 2005 Aug 2004 Aug 2003 Aug 2002

Accounts Payable 8.18 12.71 11.10 16.30
Short-Term Debt 8.03 8.27 15.71 18.99
Other Current Liabilities — — — —
Total Current Liabilities 17.97 23.83 28.70 39.00
Long-Term Debt 7.77 8.39 9.57 10.61
Other Noncurrent 0.91 1.48 — —
Total Liabilities 26.65 33.70 39.30 50.56

HOOVERS.COM866-541-3770 ? September 14, 2021 ? PAGE 11

Quarterly Balance Sheet

All amounts in millions of US Dollars except per share amounts.

Assets
Quarter Ending May 2006 Feb 2006 Nov 2005 Aug 2005 May 2005
Cash — — — — 0.63
Net Receivables 8.56 6.92 8.60 9.00 7.73
Inventories 15.16 15.42 15.66 16.75 20.96
Other Current Assets — — — — —
Total Current Assets 27.26 25.93 27.96 29.33 34.69
Net Fixed Assets 11.42 11.70 12.04 12.39 12.75
Other Noncurrent — — — — —
Total Assets 39.10 37.92 40.06 41.79 47.83

Shareholder’s Equity
Quarter Ending May 2006 Feb 2006 Nov 2005 Aug 2005 May 2005
Preferred Stock Equity — — — — —
Common Stock Equity 0.05 0.05 0.05 0.05 0.05
Total Equity 14.14 14.19 14.81 15.15 15.51
Shares Outstanding (M) 5.28 5.28 5.28 5.28 5.28

Liabilities
Quarter Ending May 2006 Feb 2006 Nov 2005 Aug 2005 May 2005
Accounts Payable 8.48 7.51 7.60 8.18 9.34
Short-Term Debt 7.14 7.29 6.85 8.03 9.49
Other Current Liabilities — — 0.39 — —
Total Current Liabilities 17.50 16.23 16.96 17.97 21.14
Long-Term Debt 6.98 6.97 7.57 7.77 9.18
Other Noncurrent 0.48 0.53 0.57 0.91 0.65
Total Liabilities 24.95 23.73 25.25 26.65 32.32

HOOVERS.COM866-541-3770 ? September 14, 2021 ? PAGE 12

Annual Cash Flow

All amounts in millions of US Dollars except per share amounts.

Aug 2005 Aug 2004 Aug 2003 Aug 2002
Cash & Cash Equivalents at Beginning
of Year

0.17 0.10 0.20 0.21

Net Cash Provided by Operating
Activities

0.33 10.41 4.55 5.44

Net Cash Provided by Investing Activities (0.35) (1.71) (0.33) (4.92)
Net Cash Privided by Financing Activities (0.16) (8.62) (4.32) (0.53)
Net Increase/Decrease in Cash &
Equivalents

(0.17) 0.08 (0.11) (0.01)

Cash & Cash Equivalents at End of Year 0.00 0.17 0.10 0.20

HOOVERS.COM866-541-3770 ? September 14, 2021 ? PAGE 13

Quarterly Cash Flow

All amounts in millions of US Dollars except per share amounts.

Quarter Ending May 2006 Feb 2006 Nov 2005 Aug 2005 May 2005
Cash & Cash Equivalents at Beginning
of Year

0.00 0.00 0.00 0.63 0.79

Net Cash Provided by Operating
Activities

1.58 0.17 1.41 0.51 3.82

Net Cash Provided by Investing Activities (0.07) (0.01) (0.02) 0.54 (0.20)
Net Cash Privided by Financing Activities (0.15) (0.16) (1.39) (1.67) (3.79)
Net Increase/Decrease in Cash &
Equivalents

— — — (0.63) (0.17)

Cash & Cash Equivalents at End of Year 1.36 0.00 0.00 0.00 0.63

HOOVERS.COM866-541-3770 ? September 14, 2021 ? PAGE 14

Financial Market Data

Current Information

Last Close (Invalid date) — Price/Sales Ratio 0.20
52-Week High — Price/Book Ratio 1.01
52-Week Low — Price/Earnings Ratio —
60-Month Beta — Price/Cash Flow Ratio 3.90
Market Cap $14.15M Return on Assets (6.22%)
Shares Outstanding — Return on Equity (17.53%)
Dividend Rate — Current Ratio 1.63
Dividend Yield — Long-Term Debt/Equity 0.51
# of Institutional Holders — % Owned by Institutions —
Latest Short Interest Ratio — Latest Net Insider Transactions —

Growth 12 Month 36 Month 60 Month

Revenue Growth (25.25%) (14.20%) 0.96%
EPS Growth — — —
Dividend Growth — — —

HOOVERS.COM866-541-3770 ? September 14, 2021 ? PAGE 15

Historical Financials

Income Statement

Year Revenue ($M) Net Income ($M) Net Profit Margin

Aug 2005 77.73 (2.91) (3.74)%
Aug 2004 103.99 1.01 0.97%
Aug 2003 117.22 0.62 0.53%
Aug 2002 123.07 1.68 1.36%

2005 Year-End Financials

Debt Ratio 51.33%
Return on Equity (17.53%)
Cash ($M) —
Current Ratio 1.63
Long-Term Debt ($M) 7.77
Shares Outstanding (M) —
Dividend Yield —
Dividend Payout —
Market Cap ($M) 14.15

HOOVERS.COM866-541-3770 ? September 14, 2021 ? PAGE 16

Competitors List

Company Gross Revenue Employees

Altaba Inc. $332.80M 8,500
Georgia-Pacific LLC $17,229.97M 46,270
International Paper Company $20,580.00M 49,300
Paris Corporation of New Jersey $80.00M 90
SPICERS LIMITED $217.32M

Competitive Landscape

Companies listed are Top Competitors.

Key Numbers Impreso, Inc.
Annual Sales ($M) $77.73M
Employees 201
Market Cap ($M) $14.15M

Profitability Impreso, Inc.
Gross Profit Margin 5.37%
Pre-Tax Profit (5.80%)
Net Profit Margin (3.74%)
Return on Equity (17.53%)
Return on Assets (6.22%)
Return on Invested Capital (8.86%)

Valuation Impreso, Inc.
Price/Sales Ratio 0.20
Price/Earnings Ratio —
Price/Book Ratio 1.01
Price/Cash Flow 3.90

Operations Impreso, Inc.
Days of Sales Outstanding 50.9
Inventory Turnover 3.7
Days of Cost of Goods Sold in Inventory 97.8
Asset Turnover 1.7
Net Receivables Turnover Flow 7.2
Effective Tax Rate —

Financial Impreso, Inc.
Current Ratio 1.63
Quick Ratio 0.57
Leverage Ratio 2.76
Total Debt/Equity 1.04
Interest Coverage —

HOOVERS.COM866-541-3770 ? September 14, 2021 ? PAGE 17

Per Share Data Impreso, Inc.
Earnings Per Share -$0.55
Dividend Per Share —
Cash Flow Per Share $0.69
Working Capital Per Share $1.85
Long-Term Debt Per Share —
Book Value Per Share $2.68
Total Assets Per Share $7.41

Growth Impreso, Inc.
12-Month Revenue (25.25%)
12-Month Net Income —
12-Month EPS Growth —
12-Month Dividend Growth —
36-Month Revenue (14.20%)
36-Month Net Income —
36-Month EPS Growth —
36-Month Dividend Growth —

Reproduced with permission of copyright owner. Further reproduction
prohibited without permission.

Quad/Graphics Inc. Profile

N61W23044 Harrys Way
Sussex, WI 53089-3995 United States
Phone: 1-414-566-6000
http://www.quad.com

WELCOME

Hoover’s is the business information resource that delivers a unique combination of up-to-date data, broad
coverage, and comprehensive information about companies, decision makers, and industries – along with
powerful tools to put this information to work for your business. Hoover’s offers everything you need to
successfully:

* Identify and evaluate potential sales leads, markets, and business partners
* Deepen relationships with current customers
* Assess competitive risks and eliminate threats
* Build presentation-ready reports and customized lists of companies, industries, and decision makers

Unlike other business information providers, only Hoover’s has a full-time, in-house editorial and research team
dedicated wholly to investigating, pinpointing, authenticating, and analyzing data to provide the most
comprehensive, up-to-date information available on companies, industries, and executives.

HOOVERS.COM866-541-3770 ? September 14, 2021 ? PAGE i

HOOVERS.COM866-541-3770 ? September 14, 2021 ? PAGE ii

Table of Contents

Company Overview 1

Key Information 1

Key Financials 1

Company Rankings 2

Key People 2

Company Description 3

Industry Information 5

People 6

Employees 6

Board Members 6

Biographies 7

J JOEL QUADRACCI 7

THOMAS J FRANKOWSKI 7

DAVID J HONAN 7

JENNIFER J KENT 7

JULIE CURRIE 8

ANNE M BAUER 8

Company Financials 9

Financial Summary 9

Annual Income Statement 10

Quarterly Income Statement 11

Annual Balance Sheet 12

Quarterly Balance Sheet 13

Annual Cash Flow 14

Quarterly Cash Flow 15

Financial Market Data 16

Historical Financials 17

Competition 18

Competitors List 18

Competitive Landscape 18

HOOVERS.COM866-541-3770 ? September 14, 2021 ? PAGE 1

Company Overview

N61W23044 Harrys Way
Sussex, WI 53089-3995 United States
Phone: 1-414-566-6000

Trading as Quad, Quad/Graphics Inc is a worldwide marketing solutions partner in the US, producing catalogs,
magazines, books, direct mail, and other commercial materials. The company’s services include consumer
insights, audience targeting, personalization, media planning and placement, process optimization, campaign
planning and creation, pre-media production, videography, photography, digital execution, print execution and
logistics. The company has printing facilities located around the world. With print media in structural decline,
Quad/Graphics has been acquiring integrated new media marketing companies, including Periscope, Rise
Interactive, and Ivie. The company generates the majority of its revenue domestically. Having nothing to do with
the number four, Quad takes its name from Harry Quadracci, who founded the company in 1971. His youngest
son Joel runs the company today as Chairman and CEO.

Key Information

DUNS Number 055302756
Location Type Parent/Headquarters
Subsidiary Status No
Manufacturer Yes
Company Type Publicly Traded Company – Corporation
Plant/Facility Size (Square Feet) 1,970,000.00
Owns/Rents Owns
Accountant Deloitte & Touche LLP
Total Employees 15,800
Employee Growth (1-3 years) -13%
Employees At This Location 700
Year of Founding or Change in Control 1971
Primary Industry 1068: Commercial Printing
Primary SIC Code 27520101: Offset printing
Primary NAICS Code 323111: Commercial Printing (except Screen and

Books)
Tradestyle Quad
Latitude/Longitude 43.1276 / -88.2007

Key Financials

Fiscal Year-End December
2020 Sales (Actual) $2,929.60M
1-Year Sales Growth (25.33)%
Net Income $(128,300,000.00)
1-Year Net Income Growth 0.00%
Total Assets $1,927.70M
Market Value $191.38M
Prescreen Score Low Risk

HOOVERS.COM866-541-3770 ? September 14, 2021 ? PAGE 2

Company Rankings

746 in Fortune 1000 Revenue Rank (2021)

Key People

Name Title

J JOEL QUADRACCI Chairman of the Board, President, Chief Executive
Officer

THOMAS J FRANKOWSKI President, Chief Operating Officer
DAVID J HONAN Executive Vice President, Chief Financial Officer
JENNIFER J KENT Executive Administration Vice-President, General

Counsel
JULIE CURRIE Executive Vice President, Officer
ANNE M BAUER Executive Director, Officer

HOOVERS.COM866-541-3770 ? September 14, 2021 ? PAGE 3

Company Description

Operations
Quad’s two principal segments are United States Print & Related Services (USP) and International. A small
Corporate segment holds unallocated general and administrative expenses.
The USP segment provides around 90% of the company’s revenue. It consists of Quad’s printing operations for
retail inserts, publications, catalogs, special interest publications, journals, direct mail, books, directories, in-
store marketing and promotion, packaging, newspapers, custom print products, and other commercial and
specialty printed products. Also allocated to the USP segment are Quad’s marketing services, which include
marketing strategy, media planning and placement, data insights, segmentation, analytics, creative services,
and digital publishing. USP also manufactures ink.
Quad’s International segment consists of its printing operations in Europe and Latin America as well as
investments in printing operations in Brazil and India. The International segment accounts for the remaining 10%
of the company’s net sales.

Financial Performance
Quad’s revenue has been fluctuating for the past five years. It has an overall decline of 15% ($673.7 million). Its
net loss has a five-year improvement of 76%. In 2019 the company’s revenue dipped by $62.4 million, a 2%
change from the previous year.
Its net income of $7.9 million in 2018, declined by $164.2 million to a net loss of $156.3 in 2019.
Quad’s cash on hand grew $9.2 million during 2019, ending the year at $78.7 million. The company’s
operations generated $155.5 million, offset by $208.1 million used in its investing activities. Financing activities
generated $61.8 million.

Geographic Reach
Wisconsin-based Quad operates more than 140 facilities in about 15 countries across North America, South
America, Europe, and Asia. The company has investments in printing operations in Brazil and India. Quad
generates about 90% of its sales from its home market of the US.

Mergers and Acquisitions
In early 2020, Quad/Graphics, Inc. acquired Apple Tree Group, a strategic and creative agency specializing in
point-of-sale advertising innovation for some of the world’s best-known brands. The acquisition strengthens
Quad’s one-of-a-kind integrated marketing solutions offering that helps brand owners and retailers reduce
complexity, enhance process efficiencies and improve marketing spend effectiveness across all media channels.

Sales and Marketing
Quad’s clients include industry-leading blue chip companies that operate in a wide range of industries and serve
both businesses and consumers. It also serves retailers, publishers, direct marketers, and companies from the
retail, financial/insurance, healthcare, consumer packaged goods, publishing and direct-to-consumer. Quad’s
ten largest clients account for about 15% of sales.

Strategy
Quad’s strategic priorities are as follows:
The Company encourages all employees, regardless of job title, to walk in the shoes of clients by putting a
priority on listening to clients’ needs and challenges, doing what they can to make it easy to work with Quad,
and making the client experience enjoyable at every touchpoint.
The Company creates more value than the traditional agency approach that operates in silos and is focused on
profit by individual media channel. The Company calls this transformation Quad 3.0. With this, Quad’s unique
integrated marketing platform removes the complexity Quad’s clients face when working with multiple agency
partners and vendors, eliminating multiple handoffs that compromise both the strategy of programs as well as
the speed at which they are executed.

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Quad uses a disciplined return on capital framework and historically has made significant investments in its
print manufacturing platform and data management capabilities. The Company’s continued focus to strengthen
its core manufacturing platform through investments that streamline, automate and improve efficiencies and
throughput, while reducing labor costs, promotes sustainable cash flow and continued value creation.
Quad’s strategy to empower employees throughout their career journey builds on key aspects of the Company’s
distinct corporate culture.
Enhance Financial Strength and Create Shareholder Value. This strategy is centered on the Company’s ability
to maximize net earnings, Free Cash Flow and operating margins; maintain consistent financial policies to
ensure a strong balance sheet, liquidity level and access to capital; and retain the financial flexibility needed to
strategically allocate and deploy capital as circumstances change.