Third Point Management Activist Presentation Deck
THIRD POINT OFFERED A PATH FORWARD
FOR NESTLÉ IN JUNE 2017
SALES & MARGINS
CAPITAL
EFFICIENCY
PORTFOLIO
MANAGEMENT
L'ORÉAL STAKE
THIRD POINT
Re-accelerate sales growth and boost margins
* Use (already announced) cost savings to invest in demand generation and improve margins
* Create formal margin target to reduce reinvestment risk
Nestle
Optimize balance sheet efficiency and return capital to shareholders
* Take leverage to 2.0x and hold it there
* Use balance sheet capacity to repurchase shares ahead of substantial inflection in earnings
Re-shape portfolio through acquisitions and divestitures
Make accretive bolt-on acquisitions in key growth categories
→ Strategically reduce exposure to challenged businesses
Note: Third Point letter available at https://www.thirdpointoffshore.com/portfolio-updates Source: Third Point LLC
Monetize non-core financial stake in L'Oréal
*Stake can be monetized with limited tax consequences
* Use proceeds to invest in Nestlé's own business and repurchase shares
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