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  "documentTitle": "Pershing Square Holdings Portfolio (multi-position) (PSH)",
  "authorId": "01_Pershing_Square",
  "authorName": "William Ackman",
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  "presentationDate": "2018-01-29 00:00:00",
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  "notes": "This slide outlines the core activist thesis for ADP, focusing on operational improvements and valuation gap.",
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      "kind": "callout",
      "text": "We remain actively engaged at ADP; achieving ADP's structural potential will drive substantial shareholder value",
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      "text": "Employer Services’ growth can increase from ~2-4% to ~7%+, while operating margins should increase from ~19% today to 35% or greater",
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      "text": "Employer Services' growth can increase from ~2-4% to ~7%+, while operating margins should increase from ~19% today to 35% or greater\nImplies ~$10 of EPS by FY 2022, >50% increase relative to the status quo",
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      "text": "ADP's stock has increased 18%(1) from our average cost, but remains undervalued and does not reflect the significant opportunity for improvement\nPro-forma for tax reform, ADP trades at ~24x ADP's FY June 2019 EPS guidance, slightly below the valuation when we initiated the position",
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      "text": "ADP participates in an attractive industry with robust secular growth\nRecent developments have confirmed elements of our investment thesis\nU.S. tax reform will drive a ~13-15% increase in earnings\nRising interest rates will increase ADP's profits on its $24bn float balance over time",
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      "text": "As a result of our proxy campaign, ADP's management committed to improved growth and accelerated margin performance",
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      "text": "operating margins: 35%",
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      "text": "(1) Includes dividends.",
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      "text": "Automatic Data Processing (\"ADP\")",
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