{
  "docId": "019dd923-622b-71dc-a6dc-327f028f6a26",
  "docSlug": "27ad4a25cc09",
  "documentTitle": "Dell Technologies (Class V / DVMT tracking stock) (DVMT)",
  "authorId": "14_Icahn",
  "authorName": "Carl C. Icahn",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "activist_investor",
  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2018-11-15 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 16,
  "pageCount": 20,
  "prevPage": 15,
  "nextPage": 17,
  "slideType": "preempt_rebuttal",
  "function": "preempt_rebuttal",
  "density": "overcrowded",
  "nDataPoints": 14,
  "notes": "Uses quotes from management to contradict the 'turnaround' narrative.",
  "elementsJson": [
    "bullet_list",
    "data_table",
    "quote_block",
    "callout_box"
  ],
  "metadataConfidence": 0.95,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622b-71dc-a6dc-327f028f6a26/16",
  "deckHref": "/decks/019dd923-622b-71dc-a6dc-327f028f6a26",
  "deckJsonHref": "/decks/019dd923-622b-71dc-a6dc-327f028f6a26.json",
  "deckAnchorHref": "/decks/019dd923-622b-71dc-a6dc-327f028f6a26#slide-16",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "Dell is really just an over-leveraged secularly challenged business facing massive competitive threats.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd952-ee3d-779f-824e-d80aa0b8575f",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.6,
        "x": 0.05,
        "y": 0.22
      },
      "kind": "list",
      "text": "The extended global recovery of recent years has allowed Dell to portray a turnaround story, but the Company's core hardware business is admittedly cyclical. Although Michael Dell likes to paint a picture of financial opportunity, the PC/peripheral hardware business has in effect become commoditized. Dell faces stiff competition from low-cost providers without having any competitive advantage.",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "235ae11d-a717-4f17-aee8-84254c2a40c0",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.1,
        "w": 0.6,
        "x": 0.05,
        "y": 0.11
      },
      "kind": "list",
      "text": "Dell's second threat, to essentially do nothing and keep DVMT stockholders from realizing their true value, is equally without merit simply because Dell is not in a financial position to do so, and destroys value for its controlling shareholders with every day that goes by.",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "301104d1-718f-44fb-b6c0-2fb48218855a",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.6,
        "x": 0.05,
        "y": 0.5
      },
      "kind": "list",
      "text": "As such, it is no surprise that Dell's controlling shareholders are desperately trying to get access to VMware's pristine balance sheet and steady stream of free cash flow.",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "6cbddddf-71a1-4aed-b739-4e61e11b2170",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.1,
        "w": 0.6,
        "x": 0.05,
        "y": 0.38
      },
      "kind": "list",
      "text": "Dell is really just an over-levered secularly challenged business facing massive competitive threats. The next downturn could significantly impair the company's cash flow and with over $2 billion in annual interest payments, it is unclear whether its equity holders would even weather the storm.",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "d6c4ab9d-d86b-474e-bc81-83a2c5060a44",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "Debt / EBITDA: 6.7x",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd952-ee3d-779f-824e-e24f12688df6",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.25,
        "w": 0.6,
        "x": 0.05,
        "y": 0.65
      },
      "kind": "paragraph",
      "text": "Dell's Core Business in Management's Words: \"Given current market trends, we expect that the demand environment will continue to be cyclical and that competitive dynamics will continue to pressure our CSG business.\" – Dell Q2 2019FY 10Q. \"There is a risk that Dell Technologies' competitors may provide products that are less costly, perform better or include additional features that are not available with Dell Technologies' products.\" – Dell Q2 2019FY 10Q. \"It's a tough market. It's a challenging market. It's a cyclical market.\" – Dell CFO comments, Deutsche Bank Conference Sept, 2016.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "eef241d8-49a3-4ce3-9ab3-10f09921d472",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "“Given current market trends, we expect that the demand environment will continue to be cyclical and that competitive dynamics will continue to pressure our CSG business.” — Dell Q2 2019FY 10Q. “There is a risk that Dell Technologies’ competitors may provide products that are less costly, perform better or include additional features that are not available with Dell Technologies’ products.” — Dell Q2 2019FY 10Q. “It's a tough market. It's a challenging market. It's a cyclical market.” — Dell CFO comments, Deutsche Bank Conference Sept, 2016.",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd952-ee3d-779f-824e-dc79bbd8a8a1",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.9,
        "x": 0.05,
        "y": 0.92
      },
      "kind": "source-note",
      "text": "1. Dell trailing twelve months interest expense as of Q2 2019FY, excluding VMware and DFS. (1) Based on market price of DVMT shares, see analysis on page 13. (2) TTM Core Dell EBITDA and Free Cash Flow as of Q1 2018FY as stated in Dell Technologies July 2, 2018 investor presentation.",
      "attrs": {
        "numbered": true
      },
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "67eeb39a-3126-4b79-a2a0-ea796dab45b9",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.2,
        "w": 0.3,
        "x": 0.65,
        "y": 0.65
      },
      "kind": "table",
      "text": "Leverage Ratios. Debt / Implied Market Equity 144.0%. Debt / Implied Capitalization 59.0%. Debt / EBITDA 6.7x. Net Debt / EBITDA 6.1x. Net Debt / FCF 14.0x. EBITDA - Capex / Interest 2.8x.",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "4efee6f6-9093-4ec0-ae89-b208ebd76b57",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.25,
        "w": 0.3,
        "x": 0.65,
        "y": 0.33
      },
      "kind": "table",
      "text": "Dell Is Significantly Over-levered. Implied Price of Dell Shares $56.52. Dell Class A-D Shares 569.0. Implied Dell Market Cap $32,161. Dell Total Debt $46,303. Dell Net Debt $41,787. Core Dell EBITDA $6,906. Core Dell Free Cash Flow $2,981.",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "79c789de-7fb3-4bb2-9f87-f9502ca0cbf5",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.5,
        "x": 0.05,
        "y": 0.03
      },
      "kind": "title",
      "text": "The Empty \"Status Quo\" Threat",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "34e223b7-d15c-47e9-8393-3ed786318f41",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [],
  "arcBeats": [],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}