Contents of the Financial Statements

for the Period Ended 31 December 2024

Directors' report period ended 31 December 2024

The directors present their report with the financial statements of the company for the period ended 31 December 2024

Directors

The directors shown below have held office during the whole of the period from
4 August 2023 to 31 December 2024

The above report has been prepared in accordance with the special provisions in part 15 of the Companies Act 2006

This report was approved by the board of directors on
26 September 2025

And signed on behalf of the board by:
Name: Sarah Hoxie
Status: Director

Profit And Loss Account

for the Period Ended 31 December 2024

Balance sheet

As at 31 December 2024

The notes form part of these financial statements

Balance sheet statements

For the year ending 31 December 2024 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These accounts have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The notes form part of these financial statements

Notes to the Financial Statements

for the Period Ended 31 December 2024

• 1. Accounting policies

  Basis of measurement and preparation

  These financial statements have been prepared in accordance with the provisions of Section 1A (Small Entities) of Financial Reporting Standard 102

  Turnover policy

  2.4 Revenue recognition The Group recognizes revenue at a point in time for substantially all customized products. The point in time when revenue is recognized is when the performance obligation has been completed and the customer obtains control of the products, which is generally upon shipment to the customer (dependent upon specific shipping terms). Revenue from the Group’s print related services (including list processing, mail sortation services, and supply chain management) is recognized as servicesare completed over time. Under agreements with certain customers, custom products may be stored by the Group for future delivery. Based upon contractual terms, the Group is typically able to recognize revenue once the performance obligation is satisfied and the customer obtains control of the completed product, usually when it completes production (depending on the specific facts and circumstances). In these situations, the Group may also receive a logistics or warehouse management fee for the services it provides, which the Group recognizes over time as the services are provided. With certain customer contracts, the Group is permitted to complete a pre-defined amount of custom products and hold such inventory until the customer requests shipment (which generally is required to be delivered in the same year as production). For these items, which include consigned inventory, the Group has the contractual right to receive payment once the production is completed, regardless of the ultimate delivery date. Based upon contractual terms, the Group recognizes revenue once the performance obligation has been satisfied and the customer obtains control of the completed products, usually when production is completed. In very limited situations, the Group is permitted to produce and hold in inventory a pre-defined amount of custom products as safety stock. Similar to completed production held in inventory, for these items, the Group has the contractual right to receive payment for the pre-defined amount once the production is completed, regardless of the ultimate delivery date. Based upon our evaluation of the contractual terms, the Group is able to recognize revenue once the performance obligation has been satisfied and the customer obtains control of the completed product, usually when production is completed. Revenue is measured as the amount of consideration the Group expects to receive in exchange for transferring goods or providing services, which is based on transaction prices set forth in contracts with customers and an estimate of variable consideration, as applicable. Variable consideration resulting from volume rebates, fixed rebates, penalties, or credits for paper consumption, and sales discounts that are offered within contracts between the Group and its customers is recognized in the period the related revenue is recognized. Estimates of variable consideration are based on stated contract terms and an analysis of historical experience. The amount of variable consideration is included in the net sales price only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in a futureperiod. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The majority of our contracts have a single performance obligation as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts and, therefore, not distinct. Many of the Group’s operations process materials, primarily paper, that may be supplied directly by customers or may be purchased by the Group and sold to customers as part of the end product. No revenue is recognized for customer-supplied paper, but revenues for Group-supplied paper are recognized on a gross basis. As a result, the Group’s reported sales and margins may be impacted by the mix of customer-supplied paper and Company-supplied paper. The Group records taxes collected from customers and remitted to governmental authorities on a net basis. Contracts do not contain a significant financing component as payment terms on invoiced amounts are typically between 30 to 120 days, based on the Group’s credit assessment of individual customers, as well as industry expectations. The timing of revenue recognition, billings and cash collections results in accounts receivable and unbilled receivables (contract assets), and customer advances and deposits (contract liabilities) on the consolidated balance sheets. Revenue recognition generally coincides with the Group’s contractual right to consideration and the issuance of invoices to customers. Since the majority of the Group’s products are customized, product returns are not significant.

  Tangible fixed assets depreciation policy

  2.8 Property, plant and equipment Property, plant and equipment is stated at cost, net of accumulated depreciation. Depreciation is on a straight-line basis over the estimated useful lives. Useful lives range from 15 to 40 years for buildings, the lesser of 7 years or the remaining lease term for leasehold improvements and 3 to 15 years for machinery and equipment. Maintenance and repair costs are charged to expense as incurred. Major overhauls that extend the useful lives of existing assets are capitalized. When properties are retired or disposed, the costs and accumulated depreciation are eliminated and the resulting profit or loss is recognized in the results of operations. The Group assesses potential impairments to its long-lived assets if events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impaired asset is written down to its estimated fair value based upon the most recent information available. Estimated fair market value is generally measured by discounting estimated future cash flows. Long-lived assets, other than goodwill and other intangible assets, that are held for sale, are recorded at the lower of the carrying value or the fair market value less the estimated cost to sell.

  Valuation information and policy

  2.7 Inventories The Group applies the First-In, First-Out (“FIFO”) and specific identification inventory methods. Inventories include material, labour, and factory overhead and are stated at the lower of cost or net realizable value and net of excess and obsolescence reserves for raw materials and finished goods. Provisions for excess and obsolete inventories are made at differing rates, utilizing historical data, and current economic trends, based upon the age and type of the inventory. Specific excess and obsolescence provisions are also made when a review of specific balances indicates that the inventories will not be utilized in production or sold. 2.9 Investment in subsidiaries Investment in subsidiaries is stated at cost less provision for any impairment. 2.10 Leases The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. See footnote 13 for further information on leases. Group as a lessee The Group applies a single recognition and measurement approach for all leases. The Group recognizes lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the Group's incremental borrowing rate. The incremental borrowing rate is defined as the rate of interest that the Group would have to pay to borrow, over a similar term and with a similar security, the funds necessary to obtain an asset of a similar value to the right of use asset in a similar economic environment. Right-of-use assets The Group recognizes right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets as follows: -Plant and machinery 3 to 15 years -Motor vehicles and other equipment 3 to 5 years Lease Liabilities At the commencement date of the lease, the Group recognizes lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Group and payments of penalties for terminating the lease, if the lease term reflects the Group exercising the option to terminate. In calculating the present value of lease payments, the Group uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments or a change in the assessment of an option to purchase the underlying asset. 2.11 Foreign currency translation Functional and presentation currency The Group's functional and presentational currency is USD. Transactions and balances Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined. 2.12 Taxation Tax is recognized in the Statement of Comprehensive Income, except that a charge attributable to an item of income and expense recognized as other comprehensive income or to an item recognized directly in equity is also recognized in other comprehensive income or directly in equity respectively. The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Group operates and generates income. Deferred Tax Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred income tax is also not accounted for if it arises from the initial recognition of an asset or liability in a transaction, other than a business combination, that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled. Deferred tax assets are recognized only if it is probable that future taxable amounts will be available to utilize those temporary differences and losses. Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously. Current and deferred tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive income or directly in equity. 2.13 Financial Instruments Financial assets and financial liabilities are recognized when the Group becomes a party to contractual provisions of the instrument. Financial assets and financial liabilities are initially measured at fair value, which is generally historical cost. Transaction costs that are directly attributable to the acquisition or issue of financial assets or financial liabilities are added to or deducted from fair value on initial recognition. Financial assets Financial assets are classified depending on their nature and purpose and the classification determined at the time of initial recognition. Trade and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as loans and receivables Interest income is recognized by applying the effective interest rate, except for short term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortized cost of a debt instrument and of allocating income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the debt instrument, or, where appropriate, a shorter period, to the net carrying amount on initial recognition. Impairment of financial assets Financial assets are assessed for indicators of impairment at each Statement of Financial Position date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition of the financial asset, the estimated future cash flows of the investment have been affected. For certain categories of financial asset, such as trade receivables, assets that are assessed not to be impaired individually are, in addition, assessed on a collective basis. Objective evidence of impairment for a portfolio of receivables includes past experience of collecting payments and the aging of the receivables. For financial assets carried at amortized cost, the amount of the impairment is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the financial assets original effective interest rate. The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets except for trade receivables. A provision is created for trade receivables and any amounts that are subsequently written off are written off against the provision. Any changes in the provision. are recognized in the Income Statement. If in a subsequent period the amount of the impairment loss decreases and this decrease can be related objectively to events occurring after the impairment was recognized, the previously recognized impairment loss is reversed through the Income Statement to the extent the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortized cost would have been had the impairment not been recognized. Financial assets are unrecognized when, and only when, the contractual rights to the cash flows expire or when it transfers substantially all the risks and rewards of ownership of the asset to another entity. On derecognition of a financial asset, the difference between the asset's carrying amount and the sum of the consideration received and receivable is recognized in the Income Statement. Financial Liabilities Financial liabilities, including borrowing costs, are initially measured at fair value, net of transaction costs, and subsequently measured at amortized cost using the effective interest method. Financial liabilities are derecognized when, and only when the Group's obligations are discharged, cancelled or they expire. 2.14 Pension The Group records annual income and expense amounts relating to its pension plans based on calculations that include various actuarial assumptions, including discount rates, mortality, assumed rates of return, compensation increases, and turnover rates. The Group reviews its actuarial assumptions on an annual basis and makes modifications to the assumptions based on current rates and trends when it is deemed appropriate to do so. The effect of modifications on the value of plan obligations and assets is recognized immediately within other comprehensive income (loss) and amortized into operatingearnings over future periods. The Group believes that the assumptions utilized in recording its obligations under its plans are reasonable based on its experience, market conditions and input from its actuaries and investment advisors. The Group measures plan assets and benefit obligations on an annual basis as of the end of December each year.

  Other accounting policies

  2.1 Basis of accounting The consolidated financial statements of the Group have been prepared in accordance with United Kingdom adopted international accounting standards and with International Financial Reporting Standards “IFRSs” as issued by the International Accounting Standards Board “IASB” and therefore the Company financial statements comply with the Company Act 2006. This is the first year of IFRS application for the Group. The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies. The consolidated financial statements are presented in US Dollars and all values are rounded to the nearest thousand except when otherwise indicated. The Group has prepared the financial statements on the basis that it will continue to operate as a going concern. In determining whether the Group and the Company's financial statements can be prepared on the going concern basis, the directors have considered the business activities together with factors likely to affect its future development, performance and its financial position including cash flows, liquidity position and borrowing facilities as well as the principal risks and uncertainties relating to its business activities. The following principal accounting policies have been applied consistently throughout the current and the previous financial year: Going concern The directors consider it appropriate to adopt the going concern basis of accounting in preparing the financial statements. The current economic and geopolitical environment were considered as part of the going concern assessment. The directors perform an annual going concern test on the wider group of LSC Communications LLC through observing if there have been: recurring operating losses, working capital deficiencies, negative cash flows from operating activities, loan defaults, denial of usual trade credit from suppliers, disposals of substantial assets, work stoppages and other labour difficulties, legal proceedings, and loss of a key franchise or principal customer. Following the receipt of confirmation of ongoing support from its parent entity, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements. 2.2 Basis of Consolidation The Group financial statements consolidate the financial statements of LSC Communications UK Holdings Limited and its subsidiaries as at 31 December 2024. The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated financial statements from the date the Group gains control until the date the Group ceases to control the subsidiary. All intra-group transactions, balances, income and expenses are eliminated on consolidation. The prior year accounts for the Group have a full-year period, while the prior year accounts for the Company operate from its creation in August 2023 through year-end. This is to allow for the annual reporting cycle to align with the ultimate parent company financial year end as well as all other companies within the group. The group utilizes merger accounting as mentioned in the Strategic Report. 2.3 Critical accounting judgements and key sources of estimation uncertainty The preparation of the consolidated financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and reported amounts of revenue and expenses during the reporting periods. Estimates are used when accounting for items including, but not limited to, inventory obsolescence, asset valuations and useful lives, and pension valuation. Management's estimates and assumptions are evaluated on an ongoing basis and are based on historical experience, current conditions, and available information. Actual results could differ from these estimates. Estimates are revised as additional information becomes available. Key sources of estimation uncertainty The key assumptions concerning the future, and other key sources of estimation uncertainty at the reporting period, that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are discussed below. Inventory obsolescence Provisions for excess and obsolete inventories are made at differing rates, utilizing historical data, and current economic trends, based upon the age and type of the inventory. Specific excess and obsolescence provisions are also made when a review of specific balances indicates that the inventories will not be utilized in production or sold. Asset valuation and useful lives Property, plant and equipment is stated at cost, net of accumulated depreciation. Depreciation is on a straight-line basis over the estimated useful lives. Useful lives range from 15 to 40 years for buildings, the lesser of 7 years or the remaining lease term for leasehold improvements and 3 to 15 years for machinery and equipment. Maintenance and repair costs are charged to expense as incurred. Major overhauls that extend the useful lives of existing assets are capitalized. When properties are retired or disposed, the costs and accumulated depreciation are eliminated and the resulting profit or loss is recognized in the results of operations. The Group assesses potential impairments to its long-lived assets if events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impaired asset is written down to its estimated fair value based upon the most recent information available. Estimated fair market value is generally measured by discounting estimated future cash flows. Long-lived assets, other than goodwill and other intangible assets, that are held for sale, are recorded at the lower of the carrying value or the fair market value less the estimated cost to sell. Pension valuation The Group records annual income and expense amounts relating to its pension plans based on calculations that include various actuarial assumptions, including discount rates, mortality, assumed rates of return, compensation increases, and turnover rates. The Group reviews its actuarial assumptions on an annual basis and makes modifications to the assumptions based on current rates and trends when it is deemed appropriate to do so. The effect of modifications on the value of plan obligations and assets is recognized immediately within other comprehensive income (loss) and amortized into operating earnings over future periods. The Group believes that the assumptions utilized in recording its obligations under its plans are reasonable based on its experience, market conditions and input from its actuaries and investment advisors. The Group measures plan assets and benefit obligations on an annual basis as of the end of December each year. 2.5 Cash and cash equivalents The Group considers all highly liquid investments with original maturities of three months or less to be cash equivalents. Short-term securities consist of investment grade instruments of governments, financial institutions, and corporations. The Group maintains its cash balances in the form of deposits with financial institutions. The Group maintains cash deposits with banks that, at times, exceed applicable insurance limits. The Group reduces its exposure to credit risk by maintaining such deposits with high-quality financial institutions that management believes are creditworthy. 2.6 Accounts Receivable Accounts Receivable are stated net of allowances for doubtful accounts and primarily include trade receivables, notes receivable, and miscellaneous receivables from suppliers. Specific customer provisions are made when a review of significant outstanding amounts, utilizing information about customer creditworthiness and current economic trends, indicates that collection is doubtful. In addition, provisions are made at differing rates, based upon the age of the receivable and the Group’s historical collection experience.

Notes to the Financial Statements

for the Period Ended 31 December 2024

• 2. Employees

  	17 months to 31 December 2024
  Average number of employees during the period	1,956

  Administration: 214 Average Number of Employees Distribution and Customer service: 1,742 Average Number of Employees