{
  "docId": "019dd923-622b-71dc-a6dc-5ce2b4a778c9",
  "docSlug": "e32b71332b7f",
  "documentTitle": "The Timken Company (TKR)",
  "authorId": "17_Relational_Investors",
  "authorName": "CalSTRS",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "activist_investor",
  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2013-03-01 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 32,
  "pageCount": 42,
  "prevPage": 31,
  "nextPage": 33,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "balanced",
  "nDataPoints": 30,
  "notes": "The slide uses a 'Relational Method' to contrast with the company's reported 'Timken Method'.",
  "elementsJson": [
    "headline_text",
    "data_table",
    "bullet_list"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622b-71dc-a6dc-5ce2b4a778c9/32",
  "deckHref": "/decks/019dd923-622b-71dc-a6dc-5ce2b4a778c9",
  "deckJsonHref": "/decks/019dd923-622b-71dc-a6dc-5ce2b4a778c9.json",
  "deckAnchorHref": "/decks/019dd923-622b-71dc-a6dc-5ce2b4a778c9#slide-32",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "Timken’s calculation distorts its trading discount by relying on a cash flow multiple that fails to adjust for short-term, temporary impacts",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-5372-7340-8f92-6ba64537841b",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.9,
        "x": 0.05,
        "y": 0.95
      },
      "kind": "disclaimer",
      "text": "Note: Timken Method: FCF based on 2013 company guidance. All numbers are in $Millions. Source: Bloomberg, Company filings, and RI estimates",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "3527aeb2-68df-4eac-bfb5-051bc1c2db1a",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.25,
        "w": 0.9,
        "x": 0.05,
        "y": 0.65
      },
      "kind": "list",
      "text": "Explanation of adjustments: voluntary pension contribution, elevated CapEx, and working capital build-up.",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "54cdcd48-d779-43e8-84c4-7da112a9ae30",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "EV/FCF: 12.1x",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-5372-7340-8f92-6d20dd47b1df",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.45,
        "w": 0.6,
        "x": 0.2,
        "y": 0.15
      },
      "kind": "table",
      "text": "Comparison of Timken Method vs Relational Method for 2013 financials",
      "attrs": null,
      "subkind": "valuation",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "71fe23cb-a928-4856-948d-9454dc1df750",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.6,
        "x": 0.2,
        "y": 0.05
      },
      "kind": "title",
      "text": "Timken’s Cash Flow Multiple Calculation is Misleading",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "57b71d62-a013-4d9c-a3ff-881e38122dcf",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "38fd0430-c7cb-4a23-9a5c-899e87f185b7",
      "evidence": "The slide explicitly frames the company's calculation as 'misleading' and 'distorting' to expose a valuation gap.",
      "confidence": 0.85
    }
  ],
  "arcBeats": [
    {
      "to": 38,
      "from": 21,
      "beatId": "f11e324a-6293-4a4c-a2c8-081fb41d758b",
      "arcName": "Problem-Agitate-Solution",
      "arcSlug": "problem-agitate-solution",
      "beatName": "Solution",
      "beatSlug": "problem-agitate-solution-solution-provide-relief",
      "evidence": "The presentation provides a solution by separating the businesses and highlighting the benefits of doing so.",
      "position": 2,
      "confidence": 0.8,
      "parentBeatName": "Resolution",
      "parentBeatSlug": "resolution"
    }
  ],
  "loops": [
    {
      "to": 33,
      "from": 28,
      "name": "Mece Breakdown",
      "slug": "40-mece-breakdown",
      "bestFor": "Problem structuring, ensuring completeness, strategic analysis",
      "matchId": "97711556-89f8-4bdc-83e7-9450c547ec37",
      "evidence": "The presentation uses data to show that Timken's cash flow multiple calculation is misleading.",
      "position": 2,
      "objective": "To show that Timken's cash flow multiple calculation is misleading",
      "structure": "The Whole -> Category A (distinct) -> Category B (distinct) -> Category C (distinct) -> Complete Coverage",
      "confidence": 0.7,
      "description": "Divide a complex topic into mutually exclusive, collectively exhaustive categories"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}