Capital Deployment Decision Making

Secular Shifts
per Credit Suisse

  • Increased R&D spending, opposed to Capex

Capital Deployment

  • Organic (Capex, R&D) – Increased output, increase market size, new products
  • Inorganic (M&A)
  • Shareholder Returns (Dividends, Buybacks)

Corporate Life Cycle

  • Increasing returns & reinvestment (growth)
  • Diminishing returns (fading)
  • Average returns (mature)
  • Below average returns (restructure)

Deployment Considerations
per Credit Suisse