{
  "docId": "019dd923-622b-71dc-a6dc-2b65d6c48f5e",
  "docSlug": "221a7c1fe12f",
  "documentTitle": "Xerox Corporation (XRX)",
  "authorId": "14_Icahn",
  "authorName": "Carl C. Icahn",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "activist_investor",
  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2018-04-17 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 22,
  "pageCount": 44,
  "prevPage": 21,
  "nextPage": 23,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "overcrowded",
  "nDataPoints": 14,
  "notes": "Uses a red box callout to highlight the core argument against Xerox's valuation assumptions.",
  "elementsJson": [
    "headline_text",
    "callout_box",
    "comparison_table",
    "paragraph",
    "icon_grid",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622b-71dc-a6dc-2b65d6c48f5e/22",
  "deckHref": "/decks/019dd923-622b-71dc-a6dc-2b65d6c48f5e",
  "deckJsonHref": "/decks/019dd923-622b-71dc-a6dc-2b65d6c48f5e.json",
  "deckAnchorHref": "/decks/019dd923-622b-71dc-a6dc-2b65d6c48f5e#slide-22",
  "components": [
    {
      "bbox": {
        "h": 0.25,
        "w": 0.25,
        "x": 0.05,
        "y": 0.185
      },
      "kind": "callout",
      "text": "The Xerox synergy valuation assumes both flawless execution AND massive post-closing multiple expansion for the combined company, neither of which is realistic.",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "ebb99909-e104-423c-acc6-1ce0ca7229db",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.2,
        "w": 0.9,
        "x": 0.05,
        "y": 0.68
      },
      "kind": "list",
      "text": "Five callout boxes containing quotes from Xerox 10-K regarding synergy risks.",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "b3f8e666-f8e4-40da-bdbf-abf043a80d7f",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "Synergy Value to Xerox Shareholders: $4.8 / share",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd952-ee3c-76df-9647-cf63aa0e7265",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.1,
        "w": 0.9,
        "x": 0.05,
        "y": 0.55
      },
      "kind": "paragraph",
      "text": "Why should shareholders capitalize 100% of the purported synergies when (A) management has never demonstrated the ability to bring cost savings to the bottom line and (B) Xerox's 10-K is replete with (well justified) warnings that the synergies may never be achieved?",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "e5771178-c013-4517-b4fb-cd8a68edb209",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "“we may not realize the anticipated synergies” — Xerox 2017 10-K. “we may be unable to eliminate duplicative costs” — Xerox 2017 10-K. “[c]ombining the business of Xerox and Fuji Xerox may be more difficult, costly or time-consuming than expected” — Xerox 2017 10-K. “we may incur substantial expenses in connection with the integration of our business and Fuji Xerox's business” — Xerox 2017 10-K. “the integration of Xerox and Fuji Xerox following the Closing will present significant challenges” — Xerox 2017 10-K.",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd952-ee3c-76df-9647-c91de5305b27",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.9,
        "x": 0.05,
        "y": 0.9
      },
      "kind": "source-note",
      "text": "1) Per page 6 of 'Xerox Responds to Carl Icahn and Darwin Deason Open Letter' presentation filed with the SEC on February 13, 2018\n2) Assumes 60% of $1.25B of transaction cost synergies per Xerox presentation dated February 9, 2018 are achievable\n3) See Xerox 2017 10-K",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "4061541c-542a-4618-8880-4729e9431774",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.35,
        "w": 0.65,
        "x": 0.3,
        "y": 0.15
      },
      "kind": "table",
      "text": "A More Realistic View of Synergy Value table comparing Xerox's view vs realistic view",
      "attrs": null,
      "subkind": "valuation",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "8e8c14c3-058b-49a1-89d5-b1050969a61a",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.1,
        "w": 0.9,
        "x": 0.05,
        "y": 0.05
      },
      "kind": "title",
      "text": "Xerox also inflates the proposed transaction's value by capitalizing 100% of the purported synergies using that same lofty and unjustified premium",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "81e55b83-741e-4b39-b467-33db97134035",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [
    {
      "name": "Call-and-Response",
      "slug": "call-and-response",
      "agent": "Storyteller",
      "layer": "slide",
      "matchId": "7d0e6048-b114-4d01-9554-c3fc34f998ef",
      "evidence": "quote: “we may not realize the anticipated synergies” — Xerox 2017 10-K.",
      "confidence": 0.7
    }
  ],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "c8dfca43-a397-4b8a-8d7b-7056269defd5",
      "evidence": "Exposing inflated valuation assumptions and contradictory management statements.",
      "confidence": 0.85
    }
  ],
  "arcBeats": [
    {
      "to": 30,
      "from": 21,
      "beatId": "bba20897-aee5-4dfd-8ec8-aa019cda9624",
      "arcName": "Problem-Agitate-Solution",
      "arcSlug": "problem-agitate-solution",
      "beatName": "Propose Solution",
      "beatSlug": null,
      "evidence": "A solution is proposed, suggesting that investors vote against the transaction and for a new board of directors.",
      "position": 3,
      "confidence": 0.8,
      "parentBeatName": null,
      "parentBeatSlug": null
    }
  ],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}