{ "docId": "019dd923-622b-71dc-a6da-0960d3a52cec", "docSlug": "798b531685a0", "documentTitle": "GCP Applied Technologies (GCP)", "authorId": "03_Starboard_Value", "authorName": "Starboard Value", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "activist_investor", "sourceTypeLabel": "Activist investor", "presentationDate": "2020-04-30 00:00:00", "orientation": "landscape", "aspectRatio": 1.3333334, "pageNumber": 41, "pageCount": 131, "prevPage": 40, "nextPage": 42, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "overcrowded", "nDataPoints": 16, "notes": "Uses CEO quotes as a mechanism to expose management's failure to meet their own stated targets.", "elementsJson": [ "headline_text", "subtitle_text", "bar_chart_vertical", "quote_block", "callout_box", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622b-71dc-a6da-0960d3a52cec/41", "deckHref": "/decks/019dd923-622b-71dc-a6da-0960d3a52cec", "deckJsonHref": "/decks/019dd923-622b-71dc-a6da-0960d3a52cec.json", "deckAnchorHref": "/decks/019dd923-622b-71dc-a6da-0960d3a52cec#slide-41", "components": [ { "bbox": null, "kind": "callout", "text": "GCP failed to meet its cost reduction and operating margin targets.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-0f1f-75c8-857e-ce6b23400f36", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.43, "x": 0.53, "y": 0.6 }, "kind": "chart", "text": "Adjusted EBIT Margins Have Deteriorated", "attrs": null, "subkind": "bar-vertical", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "f0096723-4c6b-482c-8684-e2589b432fb4", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.43, "x": 0.53, "y": 0.25 }, "kind": "chart", "text": "Adjusted SG&A Expense Ratio Has Increased", "attrs": null, "subkind": "bar-vertical", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "fe6c7d02-0c6c-48a4-b3cb-a0e2a095e053", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "metric", "text": "Adjusted EBIT margin: 10.0%", "attrs": null, "subkind": "primary", "toolName": "Quantification", "toolSlug": "quantification", "confidence": null, "componentId": "019dd953-0f1f-75c8-857e-d6f0a5a218ba", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.04, "w": 0.92, "x": 0.04, "y": 0.15 }, "kind": "paragraph", "text": "The Company has failed to execute against its cost reduction and Adjusted EBIT margin targets.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "9e5b8027-2127-48cf-98a2-34a8e92a68f4", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.45, "x": 0.04, "y": 0.3 }, "kind": "quote", "text": "If you take the SG&A for this year, Mike, we're probably -- we're around 24% to 25% on remainco with all of the costs on the SG&A, okay? We're targeting in '18 to get that number on a run rate basis down to 22% to 23%.", "attrs": null, "subkind": "pull-quote", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "bf3fe896-6161-4047-96ce-5e833d8fe62e", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.45, "x": 0.04, "y": 0.65 }, "kind": "quote", "text": "We're going to target a couple of points of margin improvement over the timeframe you're talking about across the business. But it really is going to be driven on creating value, we're either going to increase the quality or take the labor cost or production cost out of these products...", "attrs": null, "subkind": "pull-quote", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "f49ece0a-cba4-48d8-b727-1a2d49e5b876", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "\"If you take the SG&A for this year, Mike, we're probably -- we're around 24% to 25% on remainco with all of the costs on the SG&A, okay? We're targeting in '18 to get that number on a run rate basis down to 22% to 23%.\" — Greg Poling, President & CEO, May 2017; \"We're going to target a couple of points of margin improvement over the timeframe you're talking about across the business. But it really is going to be driven on creating value, we're either going to increase the quality or take the labor cost or production cost out of these products...\" — Greg Poling, President & CEO, May 2016", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-0f1f-75c8-857e-d1c92011608e", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.96, "x": 0.02, "y": 0.94 }, "kind": "source-note", "text": "Source: GCP's public filings, Starboard estimates.", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "1620a9a5-3bb1-493d-9706-9a083e21ad0f", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.92, "x": 0.04, "y": 0.89 }, "kind": "title", "text": "GCP failed to meet its cost reduction and operating margin targets.", "attrs": null, "subkind": "action-title", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "54c449cd-9f93-4cec-92b8-24421801a17b", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.92, "x": 0.04, "y": 0.03 }, "kind": "title", "text": "GCP's Operating Expense and EBIT Margins Have Also Continually Missed Expectations", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "fa57c2f1-e5c8-4116-9c79-233be4fa522f", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "ceo-quote-contradiction", "slug": null, "matchId": "e5c645b9-6f0b-4f13-b3f0-7caca5255ca7", "evidence": "Uses CEO quotes to contrast stated targets with actual performance.", "confidence": 0.95 } ], "arcBeats": [ { "to": 120, "from": 41, "beatId": "cffa6cb1-8361-4f02-8c97-3df4d753bb2c", "arcName": "Problem-Agitate-Solution", "arcSlug": "problem-agitate-solution", "beatName": "Solution", "beatSlug": "problem-agitate-solution-solution-provide-relief", "evidence": "The deck presents Starboard's plan for value creation, including operational improvements and a new board.", "position": 2, "confidence": 0.9, "parentBeatName": "Resolution", "parentBeatSlug": "resolution" } ], "loops": [ { "to": 60, "from": 41, "name": "Mece Breakdown", "slug": "40-mece-breakdown", "bestFor": "Problem structuring, ensuring completeness, strategic analysis", "matchId": "a42df05a-55ad-487d-bbc0-95888c8f4f55", "evidence": "The deck presents a detailed analysis of GCP's business and identifies areas for improvement.", "position": 1, "objective": "Break down the problem into manageable parts", "structure": "The Whole -> Category A (distinct) -> Category B (distinct) -> Category C (distinct) -> Complete Coverage", "confidence": 0.7, "description": "Divide a complex topic into mutually exclusive, collectively exhaustive categories" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }