Third Point Management Activist Presentation Deck
THIRD POINT RECOMMENDATIONS WILL MATERIALLY IMPROVE THE
LONG-TERM TRAJECTORY OF THE BUSINESS
Sales
EBIT
Margin
EPS
Leverage
THIRD POINT
2017
Nestle
90
14.8
16.5%
3.55
1.1x
2022
110
22.1
20.0%
7.00
1.5x
CAGR
4.2%
8.3%
14.5%
Sales reaccelerate and then sustainably grow at mid-single
digit % rate given improved portfolio mix and organizational
changes
20% margin achievable from improved category mix and in-
flight productivity initiatives
Includes tax benefits from US corporate tax reform and in-
flight tax savings initiatives (shared service centers, etc.)
* Proceeds from asset sales (L'Oréal, divestitures) used for
accretive acquisitions and share repurchases
Note: Historical financials updated for restatements where applicable. Source: Third Point LLC; Nestlé company materials
MIX OF OPERATIONAL IMPROVEMENT, PORTFOLIO MGMT,
AND BALANCE SHEET OPTIMIZATION PROVIDE MULTIPLE
PATHS TO DOUBLE EPS BY 2022 AND CREATE SUSTAINABLY
BETTER PERFORMANCE OVER TIME
33View entire presentation