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  "documentTitle": "Xylem Inc. (XYL)",
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  "authorName": "Spruce Point Capital Management",
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  "presentationDate": "2023-08-09 00:00:00",
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  "notes": "Uses a 'before-after' or 'promise-vs-reality' structure to highlight failure.",
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      "kind": "callout",
      "text": "Down three quarters in a row into the Evoqua close. Q1'23 conversion at -69%(1)",
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      "text": "Evoqua acquisition does not accelerate revenue growth and appears to be dilutive, not accretive",
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      "text": "Did not disclose digital sales in 2022 and changed digital leadership. Emerging markets sales grew just +0.80% in 2022. Adj. EBITDA margin declined from 17.1% (2021) to 16.3% (Q1'23)",
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      "text": "Spruce Point believes that Xylem's acquisition of Evoqua is an implicit acknowledgement of failure towards its long-term goals for 2025 which it previously outlined at its Investor Day on September 30, 2021.",
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      "text": "FCF Conversion: -69%",
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      "text": "Spruce Point believes that Xylem's acquisition of Evoqua is an implicit acknowledgement of failure towards its long-term goals for 2025 which it previously outlined at its Investor Day on September 30, 2021. We believe that at least five of its financial goals were on track for disappointment.",
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      "text": "Source: Xylem 2021 Investor and Analyst Day (1) Based on GAAP Net Income, -35% based on Xylem's adjusted results. See Q1'23 investor presentation.",
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