LSC Communications — Corporate Update (October 2018)
17 slides from LSC Communications's corporate update, Oct 31, 2018
Slide 1: New Segment Introduction
Exhibit 99.2 LSC COMMUNICATIONS New Segment Introduction November, 2018Exhibit 99.2 LSC COMMUNICATIONS New Segment Introduction November, 2018
Slide 2: Safe Harbor and Non-GAAP Information
SAFE HARBOR AND NON-GAAP INFORMATION LSC Communications Cautionary Statement Regarding Forward-Looking Statements This presentation includes certain forward-looking statements within the meaning of, and subject to the safe harbor created by, Section 21E of the Securities Exchange Act of 1934, as ame
Slide 3: LSC Communications' New Segments: Segments Redefined as Business Evolves
LSC COMMUNICATIONS’ NEW SEGMENTS SEGMENTS REDEFINED SEGMENTS REDEFINED AS BUSINESS EVOL AS BUSINESS EVOLVES VES Strategy execution requires re-evaluating segment structure • Acquisition of RR Donnelley’s print logistics business, combined with the acquisitions of Fairrington and The Clark Group crea
Slide 4: LSC Communications' Segment Changes
LSC COMMUNICATIONS’ SEGMENT CHANGES PRIOR SEGMENTS NEW SEGMENTS MAGAZINES, CA MAGAZINES, CAT TA ALOGS LOGS & & LOGISTICS LOGISTICS • • Magazines & Catalogs (excludes Magazines & Catalogs (excludes Mexico Mexico & Print & Print Management) Management) • • Logistics Logistics PRINT PRINT • • Magazines
Slide 5: Non-GAAP Financial Measures - Consolidated
NON-GAAP FINANCIAL MEASURES - CONSOLIDATED ($ millions) Total LSC Communications Q2 2018 Q1 2018 Q4 2017 Q3 2017 Q2 2017 Q1 2017 FY 2017 FY 2016 Net sales $943 $929 $999 $935 $848 $821 $3,603 $3,654 GAAP Net income (loss) 8 (11) (58) (3) 5 (1) ( 57) 106 Restructuring, impairment and other 11 6 42 60
Slide 6: Non-GAAP Financial Measures – Segments
NON-GAAP FINANCIAL MEASURES – SEGMENTS ($ millions) Magazines, Catalogs and Logistics Q2 2018 Q1 2018 Q4 2017 Q3 2017 Q2 2017 Q1 2017 FY 2017 FY 2016 Net sales $401 $427 $484 $409 $341 $349 $1,583 $1,526 (Loss) income from operations (6) (14) (22) (41) (6) (4) (73) 28 Depreciation and amortization 1
Slide 7: Non-GAAP Financial Measures – Segments (continued)
NON-GAAP FINANCIAL MEASURES – SEGMENTS (continued) ($ millions) Office Products Q2 2018 Q1 2018 Q4 2017 Q3 2017 Q2 2017 Q1 2017 FY 2017 FY 2016 Net sales $154 $123 $143 $116 $125 $111 $495 $527 Income from operations 13 2 10 11 12 9 42 54 Depreciation and amortization 3 4 4 4 3 4 15 15 Restructuring
Slide 8: Non-GAAP Financial Measures – Segments (continued)
NON-GAAP FINANCIAL MEASURES – SEGMENTS (continued) ($ millions) Corporate Q2 2018 Q1 2018 Q4 2017 Q3 2017 Q2 2017 Q1 2017 FY 2017 FY 2016 (Loss) from operations (15) (10) (18) (19) (27) (14) (78) (65) Investment and other expense-net (13) (11) (13) (11) (12) (11) (47) (45) Depreciation and amortizat
Slide 9: Q2 YTD 2018 Net Sales Pro Forma Reconciliation
ORGANIC GROWTH RATES – Q2 YTD 2018 Magazines, Office Catalogs & Book Other Total LSC Products ($ millions) Logistics Q2 2017 YTD Net Sales as Reported $690 $501 $236 $242 $1,669 (1) Adjustments 181 - 59 - 240 Q2 2017 YTD Net Sales Pro Forma $871 $501 $295 $242 $1,909 Q2 2018 YTD Net Sales as Reporte
Slide 10: Q2 2018 Net Sales Pro Forma Reconciliation
ORGANIC GROWTH RATES – Q2 2018 Magazines, Office Catalogs & Book Other Total LSC Products ($ millions) Logistics Q2 2017 Net Sales as Reported $341 $262 $125 $120 $848 (1) Adjustments 89 - 30 - 119 Q2 2017 Net Sales Pro Forma $430 $262 $155 $120 $967 $401 $266 $154 $122 $943 Q2 2018 Net Sales as Rep
Slide 11: Q1 2018 Net Sales Pro Forma Reconciliation
ORGANIC GROWTH RATES – Q1 2018 Magazines, Office Catalogs & Book Other Total LSC Products Logistics ($ millions) Q1 2017 Net Sales as Reported $349 $239 $111 $122 $821 (1) Adjustments 92 - 30 - 122 Q1 2017 Net Sales Pro Forma $441 $239 $141 $122 $943 Q1 2018 Net Sales as Reported $427 $249 $123 $130
Slide 12: Full Year 2017 Net Sales Pro Forma Reconciliation
ORGANIC GROWTH RATES – FULL YEAR 2017 Magazines, Office Catalogs & Book Other Total LSC Products ($ millions) Logistics Full Year 2016 Net Sales as Reported $1,526 $1,097 $527 $504 $3,654 (1) Adjustments 400 - 137 44 581 Full Year 2016 Net Sales Pro Forma $1,926 $1,097 $664 $548 $4,235 Full Year 201
Slide 13: Q4 2017 Net Sales Pro Forma Reconciliation
ORGANIC GROWTH RATES – Q4 2017 Magazines, Office Catalogs & Book Other Total LSC Products ($ millions) Logistics Q4 2016 Net Sales as Reported $415 $256 $130 $118 $919 (1) Adjustments 105 - 32 4 141 Q4 2016 Net Sales Pro Forma $520 $256 $162 $122 $1,060 Q4 2017 Net Sales as Reported $484 $245 $143 $
Slide 14: Q3 2017 Net Sales Pro Forma Reconciliation
ORGANIC GROWTH RATES – Q3 2017 Magazines, Office Catalogs & Book Other Total LSC Products ($ millions) Logistics $379 $310 $127 $133 $949 Q3 2016 Net Sales as Reported (1) Adjustments 89 - 2 12 103 $468 $310 $129 $145 $1,052 Q3 2016 Net Sales Pro Forma Q3 2017 Net Sales as Reported $409 $276 $116 $1
Slide 15: Q2 2017 Net Sales Pro Forma Reconciliation
ORGANIC GROWTH RATES – Q2 2017 Magazines, Office Catalogs & Book Other Total LSC Products ($ millions) Logistics Q2 2016 Net Sales as Reported $352 $288 $142 $124 $906 (1) Adjustments 2 - - 12 14 Q2 2016 Net Sales Pro Forma $354 $288 $142 $136 $920 Q2 2017 Net Sales as Reported $341 $262 $125 $120 $
Slide 16: Q1 2017 Net Sales Pro Forma Reconciliation
ORGANIC GROWTH RATES – Q1 2017 Magazines, Office Catalogs & Book Other Total LSC Products ($ millions) Logistics Q1 2016 Net Sales as Reported $380 $243 $128 $129 $880 (1) Adjustments 2 - - 12 14 $382 $243 $128 $141 $894 Q1 2016 Net Sales Pro Forma $349 $239 $111 $122 $821 Q1 2017 Net Sales as Repor
Slide 17: Investor Relations Contact
investor.relations@lsccom.com | 773-272-9275 | 191 N Wacker (Suite 1400), Chicago, Illinois 60606investor.relations@lsccom.com | 773-272-9275 | 191 N Wacker (Suite 1400), Chicago, Illinois 60606