{ "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": 24, "pageCount": 44, "prevPage": 23, "nextPage": 25, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "overcrowded", "nDataPoints": 2, "notes": "Uses a 'villain' framing to highlight the risk of minority shareholder oppression.", "elementsJson": [ "headline_text", "callout_box", "paragraph", "bullet_list", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622b-71dc-a6dc-2b65d6c48f5e/24", "deckHref": "/decks/019dd923-622b-71dc-a6dc-2b65d6c48f5e", "deckJsonHref": "/decks/019dd923-622b-71dc-a6dc-2b65d6c48f5e.json", "deckAnchorHref": "/decks/019dd923-622b-71dc-a6dc-2b65d6c48f5e#slide-24", "components": [ { "bbox": { "h": 0.15, "w": 0.9, "x": 0.05, "y": 0.68 }, "kind": "callout", "text": "The truth is that Fuji is well positioned to take advantage of Xerox shareholders post-closing. They already have Xerox management convinced that post-closing Fuji and the combined Fuji Xerox will be 'one company and one entity' even though they will have (A) competing businesses and (B) two separate and distinct shareholder bases.", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "19bf33ba-e4b6-440d-8f2b-19b72e1430f2", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.9, "x": 0.05, "y": 0.18 }, "kind": "callout", "text": "Fuji will have a myriad of opportunities to oppress us as minority shareholders", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "4cb259a9-242c-4e9f-a8d8-d78715b0c7c4", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.2, "w": 0.9, "x": 0.05, "y": 0.45 }, "kind": "list", "text": "What's to stop Fuji from shutting down Xerox's inkjet business just to benefit its competing Fuji Ink business? When asked on a recent UBS conference call if this was a risk, Xerox's Chief Commercial Officer said: 'I don't think so.' But Xerox's lawyers know it's a risk – that's why elsewhere Xerox warns shareholders that 'Fujifilm may have different interests [than yours]...and may make decisions adverse to your interests.'", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "7db7d347-4ad8-46f6-a023-56aa436ea773", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.8, "x": 0.05, "y": 0.24 }, "kind": "paragraph", "text": "For example, Fuji competes directly against Xerox in the market for high-end inkjet products", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "e8f452f1-ec4c-46ec-aac7-70a439ca367f", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "“I don't think so.” — Xerox’s Chief Commercial Officer; “Fujifilm may have different interests [than yours]...and may make decisions adverse to your interests.” — Xerox 2017 10-K; “one company and one entity” — Xerox management", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd952-ee3c-76df-9647-08805bb52b11", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.1, "w": 0.5, "x": 0.05, "y": 0.88 }, "kind": "source-note", "text": "1) Per page 34 of Xerox 2017 10-K 2) Per page 7 of Fujifilm 2017 Integrated Report 3) Per call with investors held by UBS on March 12, 2018 (emphasis added) 4) Per page 18 of Xerox 2017 10-K", "attrs": { "numbered": true }, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "d72c220a-a4ec-48a9-8a09-1fe21bfe2804", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.9, "x": 0.05, "y": 0.28 }, "kind": "table", "text": "20% of Xerox's total equipment revenue is attributable to sales of its high-end equipment, which includes production quality inkjets. 11% of Fuji's consolidated revenue is attributable to its Graphic Systems segment, which markets inkjet products worldwide.", "attrs": null, "subkind": "data", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "1f0b821c-cdb3-412f-82b1-5a324ac4daeb", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.9, "x": 0.05, "y": 0.05 }, "kind": "title", "text": "In addition, if the proposed deal closes, Xerox shareholders will be passive minority owners of a Fuji subsidiary – virtually powerless to prevent Fuji from abusing its control", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "57b7fc28-226b-4872-a62f-afe348ae56d6", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "ceo-quote-contradiction", "slug": null, "matchId": "53cdd050-b004-414d-a3fc-801fa1f77b83", "evidence": "Contrasts CCO's public statement with internal legal risk disclosure.", "confidence": 0.9 } ], "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 }