{ "docId": "019dd923-622b-71dc-a6db-ad37d5373ee7", "docSlug": "ae865eb75860", "documentTitle": "Dillard's, Inc. (DDS)", "authorId": "07_Marcato", "authorName": "Marcato", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "activist_investor", "sourceTypeLabel": "Activist investor", "presentationDate": "2014-11-01 00:00:00", "orientation": "landscape", "aspectRatio": 1.3333334, "pageNumber": 5, "pageCount": 11, "prevPage": 4, "nextPage": 6, "slideType": "precedent_table", "function": "cite_precedent", "density": "balanced", "nDataPoints": 2, "notes": "The slide uses company logos and executive quotes to build credibility for the PropCo strategy.", "elementsJson": [ "headline_text", "logo_grid", "comparison_table" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622b-71dc-a6db-ad37d5373ee7/5", "deckHref": "/decks/019dd923-622b-71dc-a6db-ad37d5373ee7", "deckJsonHref": "/decks/019dd923-622b-71dc-a6db-ad37d5373ee7.json", "deckAnchorHref": "/decks/019dd923-622b-71dc-a6db-ad37d5373ee7#slide-5", "components": [ { "bbox": { "h": 0.05, "w": 0.15, "x": 0.02, "y": 0.93 }, "kind": "image", "text": "Marcato logo", "attrs": null, "subkind": "logo", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "4c14db55-5528-4b6c-a5ce-3eecce26eb30", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "\"This process will unlock the tremendous value of our real estate portfolio as we create two distinct public companies, which allows us, to attain a much lower blended cost of capital and allows us to move into markets and places and - where we cannot go today.\" — Peter Carlino, Chairman and CEO, Nov 16, 2012; \"The Company's board of directors believes that a REIT conversion could provide substantial benefits to the Company and its shareholders given its significant real estate holdings.\" — Press Release, August 25, 2014; \"Investors favor companies with greater strategic focus on our core businesses. We are exploring the opportunity to improve upon the excellent shareholder return created since MSG's spin-off over four years ago by separating our business into two companies, each with its own distinct value proposition for investors.\" — Tad Smith, CEO, October 27, 2014; \"We believe the separation would provide a lower weighted average cost of capital and an attractive financial platform to take advantage of future opportunities to create long term shareholder value\" — Anthony Sanfilippo, CEO, November 6, 2014; \"We, together with our board, have been working with our financial and legal advisers, to make sure we are best positioned to increase shareholder value over the long term, including potentially, through the formation of a REIT.\" — Keith Smith, CEO, October 30, 2014; \"The structure of the agreement enables us to capture the value of Red Lobster and establish a market validated valuation of its real estate\" — Chuck Ledsinger, Lead Director of Darden's Board, May 16, 2014", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-25b4-767c-9bf1-e78170ffa23a", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.75, "w": 0.96, "x": 0.02, "y": 0.15 }, "kind": "table", "text": "Table containing Company, Status, and Commentary columns for 7 companies.", "attrs": null, "subkind": "data", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "06023146-89b0-4548-b57a-884d286e96ea", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.7, "x": 0.02, "y": 0.04 }, "kind": "title", "text": "OTHER RECENT LARGE, SINGLE-TENANT PROPCO TRANSACTIONS", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "96a7823a-3ad6-4aeb-88b4-a3154c8b4357", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "authority-citation", "slug": null, "matchId": "704f51b9-4885-4ab7-8079-e4c92aadbf47", "evidence": "Uses executive quotes from CEOs and board members to validate the PropCo strategy.", "confidence": 0.9 } ], "arcBeats": [ { "to": 5, "from": 4, "beatId": "f424700d-252c-4b7e-9aee-2a2eeb042b3c", "arcName": "Problem-Agitate-Solution", "arcSlug": "problem-agitate-solution", "beatName": "Agitate (Make it worse)", "beatSlug": "problem-agitate-solution-agitate-make-it-worse", "evidence": "The deck presents data and precedent transactions to agitate the challenges facing Dillard's and make the case for change.", "position": 1, "confidence": 0.8, "parentBeatName": "Development", "parentBeatSlug": "development" } ], "loops": [ { "to": 11, "from": 1, "name": "Tale Two Worlds", "slug": "04-tale-two-worlds", "bestFor": "Competitive analysis, benchmarking, case for change", "matchId": "657ac6ce-77cf-450f-8e09-818e222f0ed4", "evidence": "The deck presents a clear contrast between Dillard's current structure and the potential benefits of an OpCo/PropCo transaction.", "position": 0, "objective": "To contrast Dillard's current structure with the potential benefits of an OpCo/PropCo transaction.", "structure": "Current State -> Desired State / Benchmark -> The Gap & Implication", "confidence": 0.7, "description": "Show the gap between two states to drive urgency or highlight opportunity" }, { "to": 5, "from": 4, "name": "Cost Of Inaction", "slug": "27-cost-of-inaction", "bestFor": "Urgent budget requests, compliance, risk mitigation", "matchId": "1a7ac480-c675-4f4a-a940-05e7962a72d6", "evidence": "The deck presents data and precedent transactions to highlight the costs of inaction.", "position": 1, "objective": "To highlight the costs of inaction and make the case for change.", "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point", "confidence": 0.6, "description": "Quantify what happens if the audience does nothing" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }