{ "docId": "019dd923-622b-71dc-a6dd-ae628fe3d169", "docSlug": "b8729cb82d0d", "documentTitle": "Hilton Grand Vacations (HGV)", "authorId": "26_Land_and_Buildings", "authorName": "Land and Buildings", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "activist_investor", "sourceTypeLabel": "Activist investor", "presentationDate": "2021-05-01 00:00:00", "orientation": "landscape", "aspectRatio": 1.7777778, "pageNumber": 12, "pageCount": 13, "prevPage": 11, "nextPage": 13, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "overcrowded", "nDataPoints": 2, "notes": "Uses red dashed boxes to highlight specific claims and corresponding rebuttals.", "elementsJson": [ "headline_text", "subtitle_text", "bullet_list", "callout_box", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622b-71dc-a6dd-ae628fe3d169/12", "deckHref": "/decks/019dd923-622b-71dc-a6dd-ae628fe3d169", "deckJsonHref": "/decks/019dd923-622b-71dc-a6dd-ae628fe3d169.json", "deckAnchorHref": "/decks/019dd923-622b-71dc-a6dd-ae628fe3d169#slide-12", "components": [ { "bbox": { "h": 0.15, "w": 0.3, "x": 0.68, "y": 0.47 }, "kind": "callout", "text": "HGV has greater exposure to markets that should experience significant growth such as Hawaii and Japan", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "2994c39e-cde6-4129-8fb4-c50dedd8742d", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.1, "w": 0.5, "x": 0.15, "y": 0.76 }, "kind": "callout", "text": "More resorts does not equate to more benefit from recovery, market mix does, and HGV's standalone portfolio and inventory investments provide greater upside", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "2a752452-1cc6-4a69-86b6-3d28a456685e", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.6, "x": 0.2, "y": 0.285 }, "kind": "callout", "text": "HGV's EBITDA growth is severely reduced by Diamond's slower growth business. HGV is forecasting 16% EBITDA growth on a standalone basis annually between 2022 and 2025 while Diamond standalone is only forecasted to grow 4% annually", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "9c0dc640-d97d-4873-beb2-4dedfbdb0508", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.4, "x": 0.2, "y": 0.52 }, "kind": "list", "text": "FCF / share accretive in year one as highlighted in the transaction announcement deck", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "269d221d-b91f-4443-84ad-9a5f72046de1", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.4, "x": 0.2, "y": 0.46 }, "kind": "list", "text": "The transaction is expected to increase cash flow available to shareholders and increase the ability to invest in the future growth, as outlined in the transaction announcement deck", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "6b8c2d81-b8d0-4b10-9d32-a61a7fa79e89", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.4, "x": 0.2, "y": 0.57 }, "kind": "list", "text": "Acquiring Diamond on the tail end of COVID, when performance is still depressed, allows HGV shareholders to fully benefit from the upside Diamond and HGV will realize with the recovery of travel. Diamond has in fact recovered more quickly than HGV", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "6be4dd03-ceed-43ef-be26-911eab48b3ac", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.1, "w": 0.4, "x": 0.2, "y": 0.66 }, "kind": "list", "text": "The combined company will have more resorts in key leisure markets as HGV will be receiving the benefit of recovery at Diamond properties in those markets. Additionally, Diamond's portfolio provides new market opportunities, more exposure to \"stickier\" drive-to markets and a large amount of inventory available for sale, all of which increases the durability of and growth opportunities for the overall business. Additional merits of the transaction are also highlighted in response to statement #10, including creation of a new upscale brand, access to", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "a339a10b-67e3-4a94-b398-30ceeb16701f", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.3, "x": 0.68, "y": 0.66 }, "kind": "quote", "text": "4/29/21: Mark Wang, CEO – “As Japan restrictions ease, we believe that Oahu will recover and set us up for a strong second half of the year…”", "attrs": null, "subkind": "pull-quote", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "a79d1edf-4bfa-497d-b4e0-6caec2a16c46", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "4/29/21: Mark Wang, CEO – “As Japan restrictions ease, we believe that Oahu will recover and set us up for a strong second half of the year…” — Mark Wang, CEO", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-25b7-709e-b8cf-3e8fd510541b", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.7, "x": 0.03, "y": 0.18 }, "kind": "title", "text": "WE BELIEVE THE DIAMOND ACQUISITION MATERIALLY DILUTES THE POTENTIAL FOR HGV AS A STANDALONE BUSINESS", "attrs": null, "subkind": "action-title", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "20d983ae-4cb9-4eb8-b4fa-2a6b5de2f9e7", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.3, "x": 0.03, "y": 0.05 }, "kind": "title", "text": "HGV'S MISLEADING CLAIMS", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "73c78809-811b-4302-9dc2-68231b4d638f", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "ceo-quote-contradiction", "slug": null, "matchId": "223350e9-e85b-4d19-933f-c8ec1d9cbac9", "evidence": "Contrasting CEO quote with market reality", "confidence": 0.9 } ], "arcBeats": [ { "to": 12, "from": 4, "beatId": "c0bef6e0-1fe9-480a-99a8-5d237665be47", "arcName": "Problem-Agitate-Solution", "arcSlug": "problem-agitate-solution", "beatName": "Agitate (Make it worse)", "beatSlug": "problem-agitate-solution-agitate-make-it-worse", "evidence": "The document agitates the problem by highlighting flaws and concerns about the acquisition", "position": 1, "confidence": 0.8, "parentBeatName": "Development", "parentBeatSlug": "development" } ], "loops": [ { "to": 12, "from": 2, "name": "Cost Of Inaction", "slug": "27-cost-of-inaction", "bestFor": "Urgent budget requests, compliance, risk mitigation", "matchId": "3175196c-1975-4293-a5d9-d66dc2e4bb83", "evidence": "The document implies that not voting against the acquisition will result in significant costs and risks", "position": 1, "objective": "To highlight the risks of not voting against the acquisition", "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point", "confidence": 0.6, "description": "Quantify what happens if the audience does nothing" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }