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  "documentTitle": "Nestlé S.A. (NESN)",
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  "authorName": "Third Point",
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  "presentationDate": "2017-06-25 00:00:00",
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  "notes": "The chart includes explicit margin targets for several peers, contrasting them with Nestlé's current position.",
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      "text": "As a result, we believe it would be appropriate for the company to set a formal margin target range of 18-20% by 2020.",
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      "kind": "chart",
      "text": "Operating margin comparison of Nestlé (red) vs peers (blue) with target annotations",
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      "text": "operating margin: 15.6%",
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      "text": "We believe capital return in conjunction with a formal leverage target makes sense as well. Nestlé's remarkably low leverage of less than 1.0x net debt to EBITDA serves no real business purpose for a non-cyclical business with such strong cash flow and contrasts unfavorably with most peers, which fall within a leverage range of 2.0x to 4.0x.",
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      "text": "Our work suggests Nestlé should be able to improve margins by as much as 400 basis points over the next several years. We are not alone in our view, as well-respected analysts at investment banks including Goldman Sachs and Bank of America have identified a similar opportunity. As a result, we believe it would be appropriate for the company to set a formal margin target range of 18-20% by 2020.",
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      "text": "Exhibit B: 2017 Consensus Operating Margin Estimates",
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