Pershing Square Activist Presentation Deck
Valeant's Culture and Execution Reminds Us of 3G
3G has achieved extraordinary success in various businesses by
implementing a culture of efficiency, cost discipline, zero-based
budgeting, and shareholder-oriented capital allocation
3G Case Studies
■ ABI: $175bn market cap, 511% TSR last decade (20% p.a.)
BKW: bought in Oct. 2010, TEV from $4bn to $11bn in 3.5 years
■ HNZ: bought Feb. 2013, EBITDA margins are already up ~300-400bps
to -29%1
► Efficient operators and capital allocators enjoy unique, enduring
advantages within an industry
► Superior capital allocation and operational efficiency allow Outsider CEOS
to take advantage of opportunities others cannot profitably pursue
■ Revenue and market development opportunities
■ Investments for growth
■ Acquisitions
(1) Deutsche Bank estimate, April 8, 2014.
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