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  "documentTitle": "Pershing Square Holdings Portfolio (multi-position) (PSH)",
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  "authorName": "William Ackman",
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  "notes": "This slide outlines the activist's thesis on ADP's transformation and valuation gap.",
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      "text": "We believe that achieving ADP's structural potential will drive substantial shareholder value",
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      "text": "We believe that achieving ADP's structural potential will drive substantial shareholder value. ADP trades at ~24x earnings – a discount to historical levels – despite improved organic growth and accelerated EPS growth.",
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      "text": "ADP is substantially transforming its business. ADP has accelerated numerous transformation initiatives: Accelerating Service Alignment Initiative, Announced Early Retirement Program, Accelerating roll-out of Next Gen, Strengthening talent.",
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      "text": "Achieving new mid-term targets will drive significant EPS growth. Guidance implies ~$7 of EPS in FY2021 vs. ~$4 at initial investment. Targeting 23% to 25% EBIT margins vs. structural potential of ~32%. New targets capture a fraction of potential.",
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      "text": "EPS: $7",
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      "text": "(1) As supported by our due diligence published throughout the proxy contest, including ADP: The Time is Now (August 2017) and ADP Ascending (October 2017).",
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