Trian Partners Activist Presentation Deck slide image

Trian Partners Activist Presentation Deck

Highly Cash-Generative Negative sentiment has driven Danone's free cash flow yield to 7%, in-line with the free cash flow yield that companies comprising the U.S. Packaged Food Index traded at in March 2009 when U.S. sentiment hit bottom ■ ▪ That would have been a good time to buy, as the U.S. Packaged Food Index has increased 111% since March 2009, and free cash flow yields have normalized to approximately 5.5% Free Cash Flow (FCF) €984 €1,183 CAGR: 15% €1,427 €1,713 €1,874 €2,000 2007 2008 2009 2010 2011 2012E 2012E Free Cash Yield Approximately 50-60% potential upside assuming Danone trades at same FCF yield as Unilever and Nestle 4.3% Nestlē - 13 - Source: Company filings, Bloomberg. Note: Free Cash Flow is defined as operating cash flow less capital expenditures net of tangible asset disposals, plus M&A fees. 4.5% Unilever 6.9% DANONE
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