Third Point Management Activist Presentation Deck
SHAREHOLDER ENGAGEMENT
Third Point's view garnered support from leading sell-side analysts
66 We are on board with [Third Point's] assessment of CPB's current situation.
As evidenced by our earnings estimates, which are well below consensus, we are not constructive
on Campbell's fundamentals. Between (a) continued softness in soup sales, (b) failed innovation
across many categories, (c) the high level of debt, (d) the complexity and cost of running three
separate DSD systems, (e) the relative difficulty of consolidating these systems, (f) slumping sales
of recently-bought LNCE, (g) the ongoing integration of LNCE, and (h) the absence of a CEO,
Campbell probably has more challenges/weaknesses in its immediate future than any other
company we cover.
THIRD POINT
We also agree with [Third Point] that the board of directors "exacerbated" Campbell's problems
by apparently not having a succession plan in place. Given these problems, plus the fact that the
Campbell shares are +28% since bottoming in early June (group median +5%), we concur with
[Third Point] that a sale - if achievable - is the best way to create value for shareholders. 99
J.P. Morgan
Note: Emphasis from Third Point; quotation from J.P. Morgan report "Downgrading to Underweight" (8.10.18)
Source: Third Point LLC; J.P. Morgan
#Refresh TheRecipe | 29View entire presentation