Event Brief of Q1 2008 RR Donnelley Earnings Conference Call - Final.

Original Source: FD (FAIR DISCLOSURE) WIRE

PARTICIPANTS

. Dan Lieb, RR Donnelley, VP, IR . Tom Quinlan, RR Donnelley, President & CEO . Miles McHugh, RR Donnelley, CFO . Matt Troy, Citigroup, Analyst . Charles Strauzer, CJS Securities, Analyst . Piyush Sharma, Longbow Research, Analyst . Edward Atorino, The Benchmark Company, Analyst

OVERVIEW

RRD reported 1Q08 consolidated net sales of $3.0b and non-GAAP diluted EPS from continuing operations of $0.69. Expects 2008 total revenue (adjusted for acquisitions) of $12.35-12.45b and non-GAAP diluted EPS from continuing operations of $3.08-3.15.

FINANCIAL DATA

A. Key Data From Call 1. 1Q08 consolidated net sales = $3.0b. 2. 1Q08 non-GAAP diluted EPS from continuing operations = $0.69. 3. 1Q08 GM = 26%. 4. 1Q08 CapEx = $71.9m. 5. 1Q08-end net debt = $4.1b.

6. 1Q08 share repurchase = 2.7m at a total price of $78.7m. 7. Expected 2008 total revenue (adjusted for acquisitions) = $12.35-12.45b.

8. Expected 2008 non-GAAP diluted EPS from continuing operations = $3.08-3.15.

PRESENTATION SUMMARY

S1. 1Q08 Performance Review (T.Q.) 1. Highlights: 1. Non-GAAP EPS from continuing operations was $0.69, up from $0.66 in 1Q07.

1. Identified some one-time gains in 1Q07. 2. Revenues were up 7.3% vs. 1Q07. 3. Despite difficult overall business environment:

1. Posted pro forma organic revenue growth vs. 1Q07. 2. Achieved solid operating margins of 9.2%. 4. Completed the strategic acquisition of Pro Line Printing, whose capabilities for producing offset retail inserts and in-store circulars expanded Co.'s geographic footprint and better-positioned RRD to serve national advertising programs. 1. Began to integrate Pro Line Printing's outstanding facilities into Co.'s platform. 5. Announced approx. $1b in multi-year contracts that continue and expand important customer relationships around the world. 2. Awards: 1. Hormel Foods presented RRD with its Sprit of Excellence Award. 2. MedAssets recognized RRD with Platinum Award status. 3. DuPont presented RRD with its Challenge Award in appreciation for the work that Co. has done to provide them with a full suite of litigation support services. 1. Credited RRD's outsourcing services with providing $500,000 in savings. 3. Other Achievements: 1. RRD is the single largest provider of print-related logistics in the US. 2. On 05/05/08, announced its new variable trim binding or VTB technology. 1. VTB will enable Co. to allow cataloguers and other mailers to co-mail variable sized products. 2. This innovation opens the door for more customers and more pieces to enter co-mail pool. 3. This powerful new capability will help to mitigate postal costs for customers and will drive additional revenue into

production and logistics platforms. 3. Recently joined the Environmental Protection Agency's (EPA) SmartWay Transport Partnership.

1. This is a volunteer partnership between EPA and the freight

industry. 2. Goal is to increase energy efficiency, while reducing: 1. Air pollution. 2. Greenhouse gas emissions. 4. Co.'s 1.3m sq. ft. printing operation in Willard, Ohio was recognized with a Water Pollution Control Industrial Pretreatment Award. 5. Facility in Greeley, Colorado won recognition from the Environmental Actions Stewardship partnership for actions taken to reduce emissions and use natural resources wisely. 6. Every one of Co.'s US print and related services and international reporting units grew revenue in 2007. 7. Co.'s largest single products and services offering, magazines, catalogs, and retail inserts, represented less than 27% of revenues worldwide. 1. In this category, serves two distinct groups of customers: 1. Multi-channel merchants. 2. Magazine publishers. 4. Customer Base: 1. Co.'s 100 largest customers in North America alone last year comprised organizations in a wide range of different market segments, which included:

1. Healthcare. 2. Consumer packaged goods. 3. Government.

4. Non-profit. 5. Business and consumer services. 6. Telecom. 7. Logistics. 8. Entertainment. 9. Publishing.

10. Retail. 11. Financial services. 2. In 78% of these accounts, Co. has significant positions in three or more product categories. 1. In 42%, has strong positions in five or more product

categories. 2. There is definitely room to grow. 5. Financial Performance: 1. Since 2003: 1. Achieved compounded non-GAAP EPS growth of 22%. 2. Provided compounded growth in EBITDA of 32%. 3. Delivered compounded growth in EBITDA less CapEx of 35%.

6. Outlook: 1. Raised lower-end of 2008 guidance for fully diluted non-GAAP EPS from $3.05 to $3.08. 1. Reaffirmed the higher-end of guidance at $3.15. 2. While non-GAAP tax rates may change a bit from YtoY with tax rates equalized, projecting non-GAAP EPS growth of 11-12% in 2008. 3. Long-term goals are to increase EPS on an equal tax rate by 10% or more per year and consistently deliver strong cash flow. 1. Intends to achieve this through organic growth in investment, through: 1. Acquisitions and deployment of capital while maintaining investment grade ratings.

S2. 1Q08 Financial Review (M.M.) 1. Highlights: 1. Non-GAAP diluted EPS increased 4.5% to $0.69 vs. $0.66 in 1Q07. 1. In 1Q07, had a one-time expense reversal of $5.8m or $0.02 per diluted share associated with forfeiture of accrued post-retirement benefits due to the voluntary retirement of Co.'s former CEO. 2. Integration of …