{
  "docId": "019dd923-622b-71dc-a6d9-b06e1e87f57d",
  "docSlug": "0d9a92f4ecfe",
  "documentTitle": "Office Depot, Inc. (ODP)",
  "authorId": "03_Starboard_Value",
  "authorName": "Starboard Value",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "activist_investor",
  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2013-08-02 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.2941177,
  "pageNumber": 21,
  "pageCount": 63,
  "prevPage": 20,
  "nextPage": 22,
  "slideType": "executive_summary",
  "function": "diagnose_problem",
  "density": "dense",
  "nDataPoints": 6,
  "notes": "This is a classic activist investor 'case for change' slide, highlighting poor performance metrics and board incompetence.",
  "elementsJson": [
    "headline_text",
    "bullet_list",
    "paragraph",
    "callout_box"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622b-71dc-a6d9-b06e1e87f57d/21",
  "deckHref": "/decks/019dd923-622b-71dc-a6d9-b06e1e87f57d",
  "deckJsonHref": "/decks/019dd923-622b-71dc-a6d9-b06e1e87f57d.json",
  "deckAnchorHref": "/decks/019dd923-622b-71dc-a6d9-b06e1e87f57d#slide-21",
  "components": [
    {
      "bbox": {
        "h": 0.12,
        "w": 0.85,
        "x": 0.08,
        "y": 0.69
      },
      "kind": "callout",
      "text": "New Board members with substantial retail, operating, and turnaround experience are desperately needed to transform Office Depot and set it on the right path for future success regardless of whether the OfficeMax Merger is consummated.",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "51befb77-b9e0-4f70-a9be-520936fa594b",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.35,
        "w": 0.85,
        "x": 0.08,
        "y": 0.21
      },
      "kind": "list",
      "text": "In summary, under the watch of the current Board, Office Depot’s financial performance has continued to deteriorate and substantial value has been destroyed: Prior to our involvement, the Company’s share price had declined by 87% over the last 5 years and $4.4 billion of enterprise value had been destroyed; From 2007 to 2012, revenue declined by almost $5 billion, or 30%, while G&A expenses actually rose, causing operating margins to plummet; Retail comp sales are declining by 4%-5% per year and sales per square foot have eroded, causing massive market share losses; With only 0.9% operating margins in 2012, Office Depot continues to be the worst performing OSS company and one of the worst performing retailers",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "c148f351-0265-482e-b0d0-72d485b82df0",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "operating margins: 0.9%",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd952-e6ee-7118-86fd-dd711f7a39f0",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.85,
        "x": 0.08,
        "y": 0.53
      },
      "kind": "paragraph",
      "text": "The current Board lacks the necessary retail and operating experience to turn around Office Depot and address the serious issues it faces. Instead, we believe the Board has demonstrated that it is not interested or capable of overseeing Office Depot for the benefit of its shareholders.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "18ca4177-96d8-47ae-9252-2363560d05af",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.2,
        "x": 0.08,
        "y": 0.89
      },
      "kind": "source-note",
      "text": "Source: Capital IQ, Bloomberg, ODP SEC filings.",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "a835a66c-5341-44b3-ab7c-a43c8c014edd",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.85,
        "x": 0.08,
        "y": 0.09
      },
      "kind": "title",
      "text": "Office Depot Is at a Critical Juncture and Change Is Necessary Now to Improve Performance at the Company",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "da1573d5-5a80-41c8-9e03-a230d8d5e16b",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "antagonist-introduction",
      "slug": null,
      "matchId": "eded9d18-5c64-40e8-a0f5-3521d3ad547b",
      "evidence": "The slide frames the current Board as the antagonist responsible for value destruction.",
      "confidence": 0.8
    }
  ],
  "arcBeats": [
    {
      "to": 41,
      "from": 3,
      "beatId": "7d75cf84-de72-412e-8648-8a7f02f1a83b",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "The Monster",
      "beatSlug": "overcoming-monster-the-monster",
      "evidence": "Criticisms of the current board and management, highlighting their lack of retail experience and poor governance practices.",
      "position": 0,
      "confidence": 0.8,
      "parentBeatName": "Hook",
      "parentBeatSlug": "hook"
    }
  ],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}