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  "documentTitle": "SMART Global Holdings, Inc. (SGH)",
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  "presentationDate": "2019-09-25 00:00:00",
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  "notes": "The slide details how SGH benefited from government-mandated local content requirements, which created artificial demand and pricing power until the rules changed in 2019.",
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      "text": "SGH's business was built around Brazil's Processo Produtivo Básico (\"PPB\") subsidy program for local technology manufacturing.",
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      "text": "First, the content requirement drove demand for SGH’s Brazilian-made memory products. Second, because the PPB benefit was so valuable, SMART Brazil could sell its memory products at a significant premium. Finally, the PPB had built-in growth.",
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      "text": "SGH’s business was built around Brazil’s Processo Produtivo Básico (“PPB”) subsidy program for local technology manufacturing. The PPB is a “content requirement” which gave original equipment manufacturers (“OEMs”) significant tax benefits for using Brazilian-made memory in smart phones, tablets and other products sold in Brazil. These benefits were significant – according to the company, the incentive was around 28% of the resale value of the OEM’s products.",
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      "text": "For years the Brazilian government had allowed SGH to have a loose definition of manufacturing by creating “nested PPBs.”: a content requirement within a content requirement.",
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      "text": "3 SGH 2018 SEC Form 10-K, p. 7\n4 SGH 2018 SEC Form 10-K, p. 7",
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      "text": "Local Content Requirements table showing percentage requirements for PC, Server, Mobile, and TV memory components from 2008 to 2019.",
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      "kind": "title",
      "text": "1. SMART Brazil",
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