{
  "docId": "019dd923-622b-71dc-a6dd-1625d4e42b27",
  "docSlug": "fb3cc97ae823",
  "documentTitle": "Keisei Electric Railway Co., Ltd. (9009.T)",
  "authorId": "24_Palliser_Capital",
  "authorName": "James Smith",
  "documentKindSlug": "shareholder-letter",
  "documentKindLabel": "Shareholder letter",
  "sourceTypeSlug": "activist_investor",
  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2024-04-24 00:00:00",
  "orientation": "portrait",
  "aspectRatio": 0.70709807,
  "pageNumber": 7,
  "pageCount": 9,
  "prevPage": 6,
  "nextPage": 8,
  "slideType": "demand_list",
  "function": "state_demand",
  "density": "overcrowded",
  "nDataPoints": 0,
  "notes": "This is a text-heavy document outlining a formal shareholder proposal for Keisei Electric Railway.",
  "elementsJson": [
    "paragraph"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622b-71dc-a6dd-1625d4e42b27/7",
  "deckHref": "/decks/019dd923-622b-71dc-a6dd-1625d4e42b27",
  "deckJsonHref": "/decks/019dd923-622b-71dc-a6dd-1625d4e42b27.json",
  "deckAnchorHref": "/decks/019dd923-622b-71dc-a6dd-1625d4e42b27#slide-7",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "The Board of Directors shall establish and publish a capital allocation plan (hereinafter, the “Plan”) by 31st December 2024 to facilitate a growth-oriented investment strategy and a balanced return to shareholders to enhance the Company’s corporate value.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-78b7-702e-9632-f2d54ed1b583",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.09,
        "w": 0.86,
        "x": 0.07,
        "y": 0.54
      },
      "kind": "paragraph",
      "text": "This reduction of the OLC stake will mitigate the Company's risk exposure to a large decline in the OLC share price. Furthermore, it will require the Company to record the stake at market value, thereby revealing the Company's low PBR and true financial condition which has previously been distorted by the undervaluation of the OLC stake on Keisei's balance sheet, and therefore not properly reflected in the Company's financial statements.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "322c09b8-2842-4191-bdf4-cf31762f7891",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.86,
        "x": 0.07,
        "y": 0.4
      },
      "kind": "paragraph",
      "text": "The Proposal recommends, on an advisory basis, that the Company establish an appropriate capital allocation framework to ensure that capital is allocated in the future to more appropriate investments in light of the Company's cost of capital.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "4ed1a56a-7bb8-4ce1-95ff-4efd202e0ec4",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.07,
        "w": 0.86,
        "x": 0.07,
        "y": 0.64
      },
      "kind": "paragraph",
      "text": "Specifying a period of time just under two years to reduce the OLC stake to less than 15% and for the Board to address the formation and implementation of the Plan by the end of 2024 will ensure these initiatives are addressed within a reasonable timeframe which is focused on Keisei's long-term future and which affords full discretion on implementation of the Plan, including the OLC disposals, to management.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "51719401-1b86-4294-a90a-6232840afaed",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.86,
        "x": 0.07,
        "y": 0.75
      },
      "kind": "paragraph",
      "text": "Overall, the Proposal will convey to Company management in a non-binding manner the ardent desire of shareholders to see an improved Keisei moving forward.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "699d9271-d83c-418a-8052-c4b0bf18ecdf",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.02,
        "w": 0.86,
        "x": 0.07,
        "y": 0.72
      },
      "kind": "paragraph",
      "text": "This Proposal also marks the first important step to improving the corporate governance of the Company.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "7a91d815-0579-4228-819b-b1f8fe682bff",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.86,
        "x": 0.07,
        "y": 0.18
      },
      "kind": "paragraph",
      "text": "The Board of Directors shall establish and publish a capital allocation plan (hereinafter, the “Plan”) by 31st December 2024 to facilitate a growth-oriented investment strategy and a balanced return to shareholders to enhance the Company's corporate value. The Plan shall provide for steps to be taken within an appropriate timeframe and in a manner to be determined by the Board, but in any event by no later than 31st March 2026, to reduce the Company's shareholding in Oriental Land Co., Ltd. (hereinafter, “OLC”) to less than 15% of the voting rights of all shareholders of OLC.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "7f4a1aad-35c0-4103-ad88-527b6f9ca924",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.07,
        "w": 0.86,
        "x": 0.07,
        "y": 0.46
      },
      "kind": "paragraph",
      "text": "As part of this, the Proposal recommends, on an advisory basis, that the Company reduce the size of its OLC stake, which yields an extremely low dividend income, to less than 15%, so that proceeds can be used for growth-oriented investments and enhancements of Keisei's railway business for the benefit of customers, as well as balanced shareholder returns.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "8c9401b2-2500-4ed6-98a7-190f7ab14c23",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.04,
        "w": 0.86,
        "x": 0.07,
        "y": 0.31
      },
      "kind": "paragraph",
      "text": "The Board of Directors shall make future capital allocation decisions in accordance with the Plan and provide an update on the implementation of the Plan each year in the Company's annual report.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "a7005b42-2873-4d9e-92c3-7fde5cb5942c",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.86,
        "x": 0.07,
        "y": 0.1
      },
      "kind": "paragraph",
      "text": "The Notifying Party hereby requests that the board of directors of the Company (the “Board”) includes the following advisory proposal in the agenda of the Annual Shareholders Meeting to receive feedback from the Company's shareholders on establishing and publishing a capital allocation plan, including disposals of shares in Oriental Land Ltd. (hereinafter, \"OLC\") held by the Company:",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "f3357c4c-8433-42eb-b07b-63f80cab9766",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.02,
        "w": 0.25,
        "x": 0.07,
        "y": 0.37
      },
      "kind": "title",
      "text": "B. Reason for the Proposal",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "29e4b365-56ad-43dc-a641-25d4bc8f1fae",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.02,
        "w": 0.15,
        "x": 0.07,
        "y": 0.07
      },
      "kind": "title",
      "text": "A. Outline",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "4bee5b6e-4ecc-4c39-9d7e-67629ce5116e",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [
    {
      "name": "Monroe's Motivated Sequence",
      "slug": "monroes-motivated-sequence",
      "agent": "Storyteller",
      "layer": "slide",
      "matchId": "883b2506-cac1-4a39-a042-e4f84679263d",
      "evidence": "The Proposal recommends, on an advisory basis, that the Company reduce the size of its OLC stake, which yields an extremely low dividend income, to less than 15%",
      "confidence": 0.6
    },
    {
      "name": "Problem Statement Canvas",
      "slug": "problem-statement-canvas",
      "agent": "Architect",
      "layer": "slide",
      "matchId": "41c05c64-a411-4b26-bc71-497ec65eed8f",
      "evidence": "The Board of Directors shall establish and publish a capital allocation plan (hereinafter, the “Plan”) by 31st December 2024",
      "confidence": 0.6
    }
  ],
  "frameworks": [
    {
      "name": "capital-allocation-framework",
      "slug": null,
      "matchId": "adaa4228-8549-494e-b370-8377220b91bd",
      "evidence": "The proposal explicitly requests the establishment of a capital allocation plan.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [
    {
      "to": 7,
      "from": 7,
      "beatId": "7ce2f35e-c3c6-445e-ac55-7c8f5d70aaa7",
      "arcName": "Problem-Agitate-Solution",
      "arcSlug": "problem-agitate-solution",
      "beatName": "Solution (Provide relief)",
      "beatSlug": "problem-agitate-solution-solution-provide-relief",
      "evidence": "Page 7 provides an outline and reason for the proposal, hinting at a solution.",
      "position": 4,
      "confidence": 0.8,
      "parentBeatName": "Resolution",
      "parentBeatSlug": "resolution"
    }
  ],
  "loops": [
    {
      "to": 9,
      "from": 1,
      "name": "Golden Circle",
      "slug": "11-golden-circle",
      "bestFor": "Visionary leadership, brand positioning, mission statements",
      "matchId": "5fff71fd-71ff-4dd9-a260-98c8dde012ba",
      "evidence": "The overall structure and content follow the golden circle loop.",
      "position": 1,
      "objective": "Why should we support the proposal?",
      "structure": "The Why (Belief) -> The How (Process) -> The What (Result)",
      "confidence": 0.6,
      "description": "Invert the typical pitch by starting with why you exist, rather than what you do"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}