{ "docId": "019dd923-622b-71dc-a6db-a8948f12a2f8", "docSlug": "83e53ed5ec0b", "documentTitle": "The Walt Disney Company (DIS)", "authorId": "06_Trian_Partners", "authorName": "Trian Partners", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "activist_investor", "sourceTypeLabel": "Activist investor", "presentationDate": "2024-03-01 00:00:00", "orientation": "portrait", "aspectRatio": 0.77272725, "pageNumber": 118, "pageCount": 133, "prevPage": 117, "nextPage": 119, "slideType": "preempt_rebuttal", "function": "preempt_rebuttal", "density": "overcrowded", "nDataPoints": 2, "notes": "Uses a waterfall-style comparison chart to show stock underperformance.", "elementsJson": [ "headline_text", "subtitle_text", "bar_chart_horizontal", "quote_block", "callout_box" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622b-71dc-a6db-a8948f12a2f8/118", "deckHref": "/decks/019dd923-622b-71dc-a6db-a8948f12a2f8", "deckJsonHref": "/decks/019dd923-622b-71dc-a6db-a8948f12a2f8.json", "deckAnchorHref": "/decks/019dd923-622b-71dc-a6db-a8948f12a2f8#slide-118", "components": [ { "bbox": null, "kind": "callout", "text": "Investors Reacted Negatively to Disney's $60 Billion CapEx Announcement As Key Questions Were Left Unanswered", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-14da-72ce-9f9a-faf7ba05a5bd", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.35, "w": 0.42, "x": 0.08, "y": 0.32 }, "kind": "chart", "text": "Share Price Performance on Parks Investor Day (09/19/23)", "attrs": null, "subkind": "bar-horizontal", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "456504be-25e1-421e-bdfa-d6de179bfb5e", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.85, "x": 0.08, "y": 0.75 }, "kind": "list", "text": "How will the capital expenditures be allocated by Park? What is the expected annual cadence of spend? If the investment is back-end weighted over a decade, why commit to it now? What is the target return investors can hold you accountable to?", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "4879c30b-17f1-4105-b51c-0b6541ed40d8", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "metric", "text": "share price performance: -3.6%", "attrs": null, "subkind": "primary", "toolName": "Quantification", "toolSlug": "quantification", "confidence": null, "componentId": "019dd953-14da-72ce-9f9b-010afbb79b5a", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.06, "w": 0.85, "x": 0.08, "y": 0.22 }, "kind": "paragraph", "text": "Disney's stock price underperformed the S&P 500 by over 3% on the day the Company announced a $60 billion, 10-year capital expenditure plan. In our view, Disney's shareholders support increased capital expenditures in the Parks but were concerned with the lack of details on how, where and when the capital will be spent.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "6986238d-5dd5-4d62-a31e-c1f893fca173", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.41, "x": 0.52, "y": 0.32 }, "kind": "quote", "text": "DIS's stepped-up Parks investment has the potential to drive significant returns, however investors likely need more insight into how DIS intends to allocate this capital across its resorts and cruise lines to factor this upside potential into estimates and valuation.", "attrs": null, "subkind": "pull-quote", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "2b6f4817-f36f-4abd-985f-177342260fea", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.41, "x": 0.52, "y": 0.52 }, "kind": "quote", "text": "Following the announcement, Disney's shares are down ~3.5% intraday. Since it will take time before DIS sees the EBIT benefit from higher DPEP capex, we suspect investors are concerned about the potential near-term pressure to FCF.", "attrs": null, "subkind": "pull-quote", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "712dbf2b-495b-4947-84f0-980c6cbb34ff", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "\"DIS’s stepped-up Parks investment has the potential to drive significant returns, however investors likely need more insight into how DIS intends to allocate this capital across its resorts and cruise lines to factor this upside potential into estimates and valuation.\" — Goldman Sachs, September 2023; \"Following the announcement, Disney’s shares are down ~3.5% intraday. Since it will take time before DIS sees the EBIT benefit from higher DPEP capex, we suspect investors are concerned about the potential near-term pressure to FCF.\" — Citi, September 2023", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-14da-72ce-9f9a-fccf459a7f56", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.85, "x": 0.08, "y": 0.13 }, "kind": "title", "text": "Investors Would Benefit From Detail Around Target Returns on the $60 Billion of Announced Parks CapEx & Overall Growth", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "b1ad6c6e-71a8-40d8-810b-d40be8c4b81c", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "preempt_rebuttal", "slug": null, "matchId": "803fb5a7-fc8f-4aa4-ac63-7ae0336d279b", "evidence": "The slide anticipates investor concerns about capital allocation and provides a list of questions to frame the argument for transparency.", "confidence": 0.9 } ], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }