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  "documentTitle": "Avery Dennison Corporation (AVY)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2020-11-10 00:00:00",
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  "notes": "The slide uses a red box to highlight the FY 2020E projections and adjustments.",
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      "text": "Absent these extreme, and often repeated restructuring measures, Spruce Point estimates AVY's Adjusted Free Cash Flow would be approximately $265m, or a 13% decline from 2019 – continuing its multi-year cash flow contraction.",
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      "text": "Free Cash Flow: $265m",
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      "text": "Avery has used an analytically flawed presentation of Adjusted Free Cash flow to claim that cash flow grew from 2017-2019 by not tax adjusting pension contributions. COVID-19 has provided a distraction for AVY to explain away poor performance. AVY claims it can generate $500m of Free Cash Flow this year, but this is only achieved by reducing capex and implementing both: 1) Temporary cost savings program of $150m, and 2) Long-term restructuring savings (net of costs) of $60-$70m. Absent these extreme, and often repeated restructuring measures, Spruce Point estimates AVY's Adjusted Free Cash Flow would be approximately $265m, or a 13% decline from 2019 – continuing its multi-year cash flow contraction.",
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      "text": "Source: Avery SEC Filings and 2020 guidance, Spruce Point Analysis",
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      "text": "Spruce Point vs. Avery Adjusted Free Cash Flow Bridge",
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      "text": "Avery's \"Adjusted\" Free Cash Flow vs. Spruce Point Reality >>> Multi-Year Decline",
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