Slide 1: Forward-Looking Statements
Forward-Looking Statements =. This presentation contains forward-looking statements under the Private Securities Litigation Reform Act of 1995, including statements relating to the Company's plans regarding managing revenue generation and costs in changing environments and anticipated future market
Slide 2: The Anacomp Story...
The Anacomp Story... Phil Smoot — Chairman of the Board
Slide 3: What does Anacomp do?
What does Anacomp to? —a 1001)
Slide 4: Disciplines
2 Disciplines —_ ¢ Provide Information and Data Outsourcing (Document Management) ¢ Perform Maintenance, Service & Support (MVS and Professional Services) e ANACOMP:
Slide 5: Document Management
Document Management —_ ¢ Information Outsourcing — Collect » Archive » Retrieve * Microfiche (Film or COM) * CD-R * On-line (Web): docHarbor — Why? « Cost Effective, Reliable & Secure * Compliant Solution — Local/State/Federal — HIPAA, SEC, Sarbanes-Oxley, Gramm-Leach — Post 9/11 - Business Continui
Slide 6: How about some examples?
How about some examples? Typical business Applications Investmen Eanes Insurance Services ompanies Investor Content + Customer Customer = * Claims Delivery Service Service Logistics Forms: * Patient Forms: «E-Mail Archive * Billing * Agency * Accounting * Accounting * Confirmations Consolidation Rel
Slide 7: Professional Services
Professional Services ——$ CO ¢ Multi-Vendor Service and Support — Commercial Businesses - COM + Outsource « In-house — Global Manufacturing Businesses + Want to Develop, Manufacture and Sell * Don’t Want Warranty — Maintenance Support — Repair (Onsite Break/Fix) * Don’t Want Post Warranty Service &
Slide 8: How about some examples?
How about some examples? « Multi-Vendor Services and Support RAID, SANs, LANs, Routers, Converters _ a] E = eee iL u Network Services ianer Printers 3 q =] q =) 4 Tape/Optical Libraries Sou a SGA NiSew SGD UE |
Slide 9: How we got here...
How we got here... —a- 1001)
Slide 10: History of Anacomp
History of Anacomp « Full of Ups and Downs 1985 1988 1998 - 1999 * hangs to fracemp ees te + FIRSTINAGE Aoquired oo MFPZ000~ the indus’: (COM Market Shar) (Founders ex) ost advanced imaging « Bracomp launches MVS plato —Verical business Iegratin + MORE DEET 1968 1985 1988 1996 1999 2000 Bs, Forgeean
Slide 11: Financial Crisis...
Financial Crisis... —a} 1001) i ™
Slide 12: August 2000 - Critical Condition
August 2000 - Critical Condition * Company Snapshot 4 -—$310M in Bond Debt ¢ $32M interest payment defaulted -—$74M Bank Revolver -—$7M/Mo. Cash Burn
Slide 13: Financial Crisis
Financial Crisis * Cash Flow ashe Reveler Avahtty
Slide 14: Financial Crisis
Financial Crisis —$—S—S—a ¢ Restructured Subordinated Debt (100%) — $310M > Equity — Equity > 7 year Warrants « Restructured Revolver — New Covenants — Same Bank Group « Consensual Exchange — SEC (200 comments > 2 yrs & Several Million $) — Pre-pack (San Diego Federal Court) * Oct. 19" — Dec. 315 20
Slide 15: Financial Crisis
Financial Crisis —$—S—S—a ¢ Strict Cash Flow Mgmt Program *« Changed Management Team — 34 SVPs > 7 SVPs (during restructuring) * Sold or Terminated — Underperforming Units — Non-core Businesses — Businesses with large Cash Liability + European Severance + Lease Obligations * Restructured Business «
Slide 16: Financial Crisis
Financial Crisis CC + Debt levels — (Notes, Term Loans, Revolver, Preferred Stock and Accrued Interest - $M) te ox \ es i tee 0 i tv \ 1996 1997 1998 1999 2000 2001 202 2008 9/30/03 Cash $18,390K Revolver $5,917k Cash Positive
Slide 17: The FUTURE Anacomp...
The FUTURE Anacomp... aa -_ 1001 | a ~=oB
Slide 18: The Why
The Why — ...While we still must overcome a declining COM (Supplies & Services) base: « 35 Years of Outsourcing Experience — Culture of Customer Service — Marvelous/Loyal Employee Base (1,324) — Serve 7,000+ businesses in 70 countries — Customers represent more than half (50%) of the Fortune 500 com
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Slide 20: Multi-Vendor Services
Multi-Vendor Services —_ ¢ MVS Market Growing to $5 Billion by 2005 « Global Approach (one of few) — Expanded Services + Maintenance Support — Call Center — Help Desk + Warranty Registration and Support Di « Remote Diagnostics 12 Bi + Repair Services par] — Onsite Break/Fix iQ Bil — Depot Repair — L
Slide 21: A Sample of our Customers
A Sample of our Customers —_ Brocade Chaparral Compaq nStor Emulex IBM Data Distributing Exabyte Hitachi Crossroads Fujitsu Qlogic Sony Quantum Overland San Valley Adic Amdahl Tameran Gadzoox ATL Eurologic StorageTek Seagate
Slide 22: In closing...
Slide 23: Anacomp's Financial Performance
_Anacomp’s Financial Performance Lin Fox — Executive VP & Chief Financial Officer
Slide 24: Business Offerings Definitions
Business Offerings Definitions Growth . Legacy
Slide 25: Growth vs. Legacy Quarterly Revenue
Growth vs. Legacy Quarterly Revenue. $M Growth | 16.6 | 17.7 | 17.3] 18.1 | 18.0 | 19.3 | 18.9 | 19.9 | 20.2 | 20.3 | 204 MLegacy | 59.5 | 56.3 | 50.1 [46.6 | 42.5 | 41.3 | 37.6 | 36.8 | 32.8 | 32.5 | 294
Slide 26: Business Offerings - Growth
Business Offerings —_ Growth
Slide 27: Growth Business Offerings
Growth Business Offerings 4 MVS - Our Multi-Vendor Services offering provides a variety of services for OEM products, including installation, maintenance, call center and depot repair 25%+ growth 4 Web - Our Web presentment “docHarbor’” offering stores, delivers and accesses documents via the intern
Slide 28: MVS Quarterly Revenues
MVS Quarterly Revenues | | | ow 10.0 8.0 6.0 4.0 2.0 0.0 101 | 2001 }3a01 |4aat |1a02|2c02 |3an2 |4an2 | 1003 [2003 |3Q03 mmvs| 6.0 | 55 | 58 | 61/65 | 64 | 69173] 81 | 82 | 90
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Slide 30: Web Quarterly Revenues
Web Quarterly Revenues Ss OO $M 60 5.0 40 3.0 { 20 10 0.0 aot |2a01 sent Jaant | an2 f2a02 faan2 Jaan2 |i cas j2a08 }sa03 aweb| 27 | 23 [27 [30 [31 | 39 [40 [46 | ae [a7 [as
Slide 31: Web Competition docHarbor
Web Competition docHarbor™ The place uments work In-House Software Providers + BMC Software + FileNet 4+IBM & Documentum — EMC purchased 10/15/03 for $1.7B + Mobius Application Service Providers + Imagemax + Iron Mountain. + Lason
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Slide 35: Business Offerings - Legacy
Business Offerings —_ Legacy
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Slide 40: Cash Performance
Cash Performance + EBITDA 4 FREE CASH FLOW + DEBT
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Slide 43: Gross Margin Integrity
Gross Margin 4 Integrity $M 600 00 400 300 200 100 00 1on2 | 2002 | 3002 | 4002 | 103 | 2003 | 3003 mRevenue | 605 e068 585 567 30 628 498 fm Drect Gost | 41.3 405 330 388 Ea 366 344 mM 192 202 175 180) iz 112 154 mescea | 190 174 155 iz] 163 187 137 08 72 44 43 43 40 aT Eg a EBITOA, iz] 72 63 49 64
Slide 44: Headcount Control
Headcount Control — 1on2 | 2002 | scm | aco2 | 1om8 | 2008 | sae | acca mHeadcount | 1773 | 1744 | tee [ te14 | 1563 | 1511 | 1445 | 1324 mus 1270 | 1.228 | 1,175 | 1113 | 1983 | 1p15 | 969 | ee mint! wt | a5 | 399 | 36 | 398 [ am [| a1 | a mCentra Servs] 109 | 110 | to7 [ 105 | 102 | 96 EF 85
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Link to searchable text of slide shown above Searchable text section of graphics shown above Forward -Looking Statements This presentation contains forward-looking statements under the Private Securities Litigation Reform Act of 1995, including statements relating to the Company’s plans regarding ma