To: SSP who wrote (76424 ) 1/10/2001 1:23:21 PM From: john Read Replies (1) | Respond to of 150070 SSP you might want to read this carefully another KTEL run in the next while?????????????? Heck, its a NYSE company. Note the bold. MCL on NY. Date: January 3, 2001 To: All Employees From: Robert G. Burton As most of you know I have been at Moore since December 12, 2000 serving in the role as President and Chief Executive Officer. I had wanted to communicate to all of you earlier than now. However because of the need to have the Toronto Stock Exchange approve the investment in the company by Chancery Lane/GSC Investors, L.P., it would have been inappropriate to issue any formal communication prior to receiving the stock exchange’s approval. That approval came just days before the holidays. With the holidays over and everyone back to work, I am now in a position to introduce myself and talk about the future. Prior to joining Moore Corporation, I was actively involved in the printing and publishing industry. I was Chairman, President and Chief Executive Officer of World Color, a NYSE-listed company that was a leader in the management and distribution of print and digital information. The company had 16,500 employees and revenues in excess of $2.6 billion. During my nine-year tenure at World Color, I led a team in the dramatic turnaround of the company culminating in its November 1999 merger with Quebecor Printing. That merger resulted in the formation of the world’s largest and most profitable printing company. While at World Color we: Delivered nine successive years of record financial results Increased the value of WRC stock 100% in three years following the company’s 1996 IPO Outperformed our peer group in shareholder returns Increased revenue 405% to over $2.6 billion Led the industry as a consolidator with 25 accretive acquisitions Results similar to this are possible at Moore. With appropriate direction we are positioned to grow and to deliver results. In my opinion, it is glaringly apparent that the results of the company are unacceptable. The costs of this company are completely out of line with our revenue. We need to immediately set a course of action to fix this - otherwise the consequences of not doing so will be devastating. As a result of this misalignment, I am initiating actions that will reduce our expenses by $100,000,000 during the course of the next 12 to 18 months. Included in this aggressive cost saving initiative will be a review of all of our business lines; productivity goals; capital spending and return on investment; training initiatives; financial controls; business processes; procurement; logistics; energy utilization; organizational structure; MIS/IT structure, spending and future direction; disposition of non-essential assets (including real estate) and a complete review of all facility locations including the location of the headquarters, various business units and our geographically dispersed back office operations. Additionally, while very much regrettable, the truth of the matter is that we have significantly more people in the organization than are required to meet the needs of customers. The organization is top heavy. There is a significant amount of redundancy within the organization. We have made processes more complicated than they need to be resulting in both a waste of time and money. We have consultants and temporary employees all over the place further creating costs and inefficiencies. To address this matter all consulting agreements are under immediate review. Additionally we have initiated a hiring freeze for all positions not related to creating sales or manufacturing products. (A memo on this subject will be issued separately). We will set about with initiatives to immediately centralize duplicative functions and eliminate non-essential jobs, activities and programs. In the next 30 to 60 days we will begin a headcount reduction of approximately 10% with an emphasis at the headquarters facility. Managers will be expected to wear multiple hats and add value in various roles within the company. This move will result in lower operating costs, improved cost of goods sold, improved operational efficiency, swifter decision making, better communications as well as create a consistent and more effective approach to managing our business. We will be looking to all of you to look within your functional areas for more efficient ways to operate and to help identify costs that can be taken out of the organization. At times you will see the company spend money and make investments in order to create cost savings or efficiencies down the road. As an organization we cannot stop investing in the business. We cannot stop investing in our customers. We can however be smarter in the way in which we spend money and in the way we conduct business. I have traveled to several facilities and have met many employees. It is apparent that we have a tremendous talent base of dedicated employees in this organization. I know that many of you see the same waste of money and resources that I see. Many of you have pointed out opportunities to me already. By reducing layers of management and tapping the potential and ideas of employees that have not been visible in the organization I expect that we will be able to generate better, more efficient ways to manage the business. You will see several announcements in the coming days and weeks regarding changes and positions reporting directly to me. Many of these changes will have new individuals replacing current senior managers. Some of these individuals will come from within Moore while others will be individuals I have worked with in the past. The changes you will see will first start at the top of the organization. One such change has occurred already. Many of you know that Gary Ampulski who headed up our Business Forms unit has left the company. I have decided not to immediately replace Gary. In line with our goal and to ensure appropriate emphasis on customers, revenue growth and cost containment I am today taking on the additional responsibility of being the senior manager of our forms and labels business. This business segment accounts for 50% of our consolidated revenue and is a key component of our future. I am not pleased with the results of this unit. I am unwilling to turn the leadership of the unit over to anyone until I personally understand what needs to be done to ensure its sustained success. By being personally involved I can build the relationship needed with our sales professionals, their customers and the entire Forms team to address the needs of this business. While reviews will take place and changes will occur, we cannot lose sight of our need to expand our already impressive focus on customers and ensure that our sales team and our operations have the tools and support to meet this challenge. We need to take to a new level our partnership with our customers. We need to ensure that we are continually positioned to meet and exceed their ever-changing needs. There is a lot that needs to be accomplished at Moore and I look forward to immediately setting a course to grow this company and ensuring its success. If I didn’t believe that it was possible for us to be successful I would not have invested $2,000,000 of my personal money into the company. This company with its strong sales team, dedicated employee population and creative manufacturing talent has all the components to be successful. We have tremendous opportunities. The company has a rich history and I look forward to ensuring that there is a strong foundation from which to grow as we move through this new millennium. As we finalize decisions and make other changes we will continue to keep everyone updated on our progress. I appreciate your support, your commitment to the change that needs to occur and to your continued focus on servicing our customers. We will make the changes necessary to be successful. It is that success that will ensure the future for all of us.