{ "docId": "019dd923-622b-71dc-a6db-74a0f9f25c29", "docSlug": "f5c008b9a0d4", "documentTitle": "The Walt Disney Company (DIS)", "authorId": "06_Trian_Partners", "authorName": "Nelson Peltz", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "activist_investor", "sourceTypeLabel": "Activist investor", "presentationDate": "2023-01-12 00:00:00", "orientation": "portrait", "aspectRatio": 0.77272725, "pageNumber": 34, "pageCount": 35, "prevPage": 33, "nextPage": 35, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "overcrowded", "nDataPoints": 8, "notes": "Uses a quote-slide style box at the bottom to highlight the contradiction between management's stated goals and actual financial performance.", "elementsJson": [ "headline_text", "bullet_list", "bar_chart_vertical", "bar_chart_stacked", "quote_block", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622b-71dc-a6db-74a0f9f25c29/34", "deckHref": "/decks/019dd923-622b-71dc-a6db-74a0f9f25c29", "deckJsonHref": "/decks/019dd923-622b-71dc-a6db-74a0f9f25c29.json", "deckAnchorHref": "/decks/019dd923-622b-71dc-a6db-74a0f9f25c29#slide-34", "components": [ { "bbox": null, "kind": "callout", "text": "Despite management’s rhetoric, we believe Disney has never thoroughly reviewed its cost structure, as evidenced by the fact that over the last three years costs have outpaced sales growth by ~400bps", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-78b5-7512-b5b4-9c162f4f3466", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.4, "w": 0.38, "x": 0.52, "y": 0.24 }, "kind": "chart", "text": "Disney Costs - ($bn)", "attrs": null, "subkind": "bar-stacked", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "67b0cfc7-82e3-4aff-9772-152efcbf18c7", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.4, "w": 0.38, "x": 0.1, "y": 0.24 }, "kind": "chart", "text": "Disney Sales - ($bn)", "attrs": null, "subkind": "bar-vertical", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "8b59567f-3d48-4724-9e52-ce7340ce4037", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "metric", "text": "CAGR: 10%", "attrs": null, "subkind": "primary", "toolName": "Quantification", "toolSlug": "quantification", "confidence": null, "componentId": "019dd953-78b5-7512-b5b4-a6d941298a29", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.8, "x": 0.1, "y": 0.14 }, "kind": "paragraph", "text": "Despite management's rhetoric, we believe Disney has never thoroughly reviewed its cost structure, as evidenced by the fact that over the last three years costs have outpaced sales growth by ~400bps", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "dfa45d06-c32e-4d8c-aa41-6a162e7c01e4", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.8, "x": 0.1, "y": 0.7 }, "kind": "quote", "text": "We're really going to try to get the algorithm right to cut where we can and not necessarily do things the same way. As I mentioned, we're also using technology to reduce some of our operating costs, and that gives us a little bit of headroom also to absorb some inflation. But we're really trying to use our heads here to come up with a way to kind of mitigate some of these challenges that we have.", "attrs": null, "subkind": "pull-quote", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "16bfb8ab-9269-412b-a14d-450b50c2e1a4", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "We're really going to try to get the algorithm right to cut where we can and not necessarily do things the same way. As I mentioned, we're also using technology to reduce some of our operating costs, and that gives us a little bit of headroom also to absorb some inflation. But we're really trying to use our heads here to come up with a way to kind of mitigate some of these challenges that we have. — Christine McCarthy, The Walt Disney Company – Senior EVP & CFO, November 10, 2021 – FY 2021 Earnings Call", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-78b5-7512-b5b4-a38e7513758f", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.3, "x": 0.08, "y": 0.9 }, "kind": "source-note", "text": "Source: SEC filings, transcripts. Note: \"CAGR\" represents compounded annual growth rate.", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "50ac299e-7fd4-4eb9-8e8a-8a1478cea741", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.8, "x": 0.1, "y": 0.09 }, "kind": "title", "text": "We Believe Disney Lacks Cost Discipline as an Organization", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "1ca2a0b7-2a9e-4cbd-9ae4-4b50bf63fba9", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "ceo-quote-contradiction", "slug": null, "matchId": "00cd9e87-83f6-4ecd-9af2-5c7c025f754f", "evidence": "Juxtaposition of financial data showing cost growth vs. CFO quote claiming cost reduction.", "confidence": 1 } ], "arcBeats": [ { "to": 35, "from": 25, "beatId": "1338fbba-7115-49cb-95c0-085533f8572a", "arcName": "Problem-Agitate-Solution", "arcSlug": "problem-agitate-solution", "beatName": "Solution", "beatSlug": "problem-agitate-solution-solution-provide-relief", "evidence": "Trian's proposed changes, including improving governance, increasing cost discipline, and enhancing streaming strategy", "position": 2, "confidence": 0.8, "parentBeatName": "Resolution", "parentBeatSlug": "resolution" } ], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }