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RRD Realigns Organizational Structure to Drive Growth Strategy

4/18/2018

CHICAGO--(BUSINESS WIRE)--R.R. Donnelley & Sons Company (NYSE: RRD) (“RRD” or the “Company”) today announced new financial reporting segments to align with recent changes to its global operating structure. Effective with the first quarter of 2018, RRD will report its results under two new segments: Marketing Solutions, a preeminent provider of multichannel marketing activation programs, and Business Services, a premier global provider of business communications services.

“We have united our capabilities under two key segments to directly align our businesses with our clients’ evolving needs and strategic objectives”

Previously, the Company reported its segments as Variable Print, Strategic Services and International, which grouped together product and service offerings that shared related internal operational features. Certain unallocated costs reported in the Company’s Corporate segment will not be impacted by the new structure.

“We have united our capabilities under two key segments to directly align our businesses with our clients’ evolving needs and strategic objectives,” said Dan Knotts, RRD’s President and Chief Executive Officer. “This structure further leverages our extensive business portfolio to help our clients more effectively manage the complexities of personalized marketing and sustain meaningful connections with their customers across the full customer relationship. Further, we believe this realignment will accelerate growth and drive improved profitability by focusing each business on the most attractive opportunities within our large addressable markets.”

RRD Marketing Solutions

RRD Marketing Solutions leverages an integrated portfolio of data analytics, creative services and multichannel execution to deliver comprehensive, end-to-end solutions that drive marketing ROI. RRD’s key capabilities include:

  • Data Management – integrating data to set the foundation for personal marketing
  • Analytics and BI – uncovering meaningful insights to deliver relevant marketing
  • Creative Services – simplifying the art of capturing customer attention
  • Digital – leveraging martech to execute successful digital marketing initiatives
  • Offline Response – maximizing the power of print to capture customer attention
  • Retail – enhancing the customer environment to educate, engage and convert

Marketing Solutions reported net sales of $1.2 billion in 2017. This segment includes the Company’s direct mail, in-store marketing, digital print and digital solutions businesses and will be led by Doug Ryan. Doug brings over 25 years of experience in integrated marketing, including most recently having served as President of DigitasLBi North America.

RRD Business Services

RRD Business Services provides customized solutions at scale to help clients inform, service and transact with their customers with reduced complexity and increased efficiency. RRD’s key capabilities include:

  • Commercial Print Services – full spectrum of print, assembly and fulfillment capabilities
  • Customized Customer Communications – personalized, regulatory – compliant messaging
  • Product and Brand Communications – comprehensive packaging and labeling solutions
  • Business Process Services – supply chain, global outsourcing and logistics

Business Services reported net sales of $5.8 billion in 2017. This segment includes commercial print, packaging, labels, statement printing, forms, logistics, supply chain management and business process outsourcing.

The Business Services segment will be led by John Pecaric, a 30 – year veteran of RRD who most recently served as Executive Vice President and Chief Commercial Officer. John’s previous leadership roles at RRD included President - International, and Senior Vice President of Operations.

“We are excited about these organizational changes as they mark a pivotal next step in our ongoing strategic transformation,” Knotts continued. “The pace of innovation is accelerating and our clients are increasingly challenged to navigate the rapidly changing customer communications landscape. Through our powerful marketing solutions and business services platforms, we are providing purpose-built solutions, at scale, to help our clients improve customer engagement and drive business performance.”

Historical reclassified results for the new segments are included in this press release and will be available in the Company’s Form 8-K which will be filed with the Securities and Exchange Commission. In addition, supplemental slides regarding the new segments are available under the Presentation tab in the Investors section of RRD’s website at www.rrd.com.

About RRD

RRD is a leading global provider of marketing and communications services. With more than 50,000 clients and nearly 43,000 employees across 34 countries, RRD offers the industry’s most comprehensive portfolio of solutions designed to help companies – from Main Street to Wall Street – optimize customer engagement and streamline business connections across the full customer journey.

For more information, visit RRD’s website at www.rrd.com.

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