{
  "docId": "019dd923-622c-750b-8b96-6023c2cb0d2d",
  "docSlug": "671b21c936c8",
  "documentTitle": "Groupe Casino (CO)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
  "documentKindSlug": "shareholder-letter",
  "documentKindLabel": "Shareholder letter",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2016-01-13 00:00:00",
  "orientation": "portrait",
  "aspectRatio": 0.77272725,
  "pageNumber": 8,
  "pageCount": 9,
  "prevPage": 7,
  "nextPage": 9,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "overcrowded",
  "nDataPoints": 3,
  "notes": "This is a page from a short-seller report (Muddy Waters Research).",
  "elementsJson": [
    "paragraph",
    "data_table",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b96-6023c2cb0d2d/8",
  "deckHref": "/decks/019dd923-622c-750b-8b96-6023c2cb0d2d",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b96-6023c2cb0d2d.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b96-6023c2cb0d2d#slide-8",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "Is Casino unaware of these errors; or, is Casino so intent on misleading investors that it failed to adequately caveat its defense of S&P?",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-0935-737e-8db4-ca3b9aa45b84",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "Commercial Paper: €757.4 million",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-0935-737e-8db4-cd441e24edb9",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.72,
        "x": 0.14,
        "y": 0.55
      },
      "kind": "paragraph",
      "text": "First, the overstatement of Via Varejo's EBITDA contribution occurred because S&P's methodology assumes CDB owns 100% of Via Varejo. S&P did not look through CBD's ownership of Via Varejo, which is only 43.3%.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "2e3cd990-80a0-4838-9453-6b88096bf291",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.72,
        "x": 0.14,
        "y": 0.44
      },
      "kind": "paragraph",
      "text": "We did not discuss these errors S&P made when we unveiled our short thesis because we hoped Casino in its response would point them out. Instead, Casino defended S&P without condition or caveat.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "a414cc69-e0f6-443e-a741-61ca4fe67834",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.72,
        "x": 0.14,
        "y": 0.36
      },
      "kind": "paragraph",
      "text": "8. Is Casino aware of two fundamental errors in S&P's leverage calculations: overstating the proportional EBITDA contribution from Via Varejo by €164 million, and overstating proportional cash by €2.6 billion (thereby understating net debt)?",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "cd940925-a5dd-4c6c-817e-63766da02305",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.72,
        "x": 0.14,
        "y": 0.61
      },
      "kind": "paragraph",
      "text": "Second, and even more substantial, S&P does not make any adjustment for the proportional cash (i.e., cash held at non wholly-owned listed subsidiaries).",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "da297f72-a449-4fc5-81e7-18ae140c4795",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.72,
        "x": 0.14,
        "y": 0.09
      },
      "kind": "paragraph",
      "text": "7. Is Casino's very temporary reduction of commercial paper outstanding at the end of 2015 an attempt to window dress the balance sheet? Are there other ways in which Casino window dressed its 2015 financials (e.g., taking longer than usual to pay suppliers)?",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "f3b116f6-aa29-4d9f-bc9d-1755e4314b29",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.6,
        "x": 0.14,
        "y": 0.88
      },
      "kind": "source-note",
      "text": "4 CP Data obtained from https://www.banque-france.fr/en/monetary-policy/negotiable-debt-securities/statistical-reports-and-data-downloads.html",
      "attrs": {
        "numbered": true
      },
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "98689446-ef41-4333-ab6c-54804dc9b02b",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.11,
        "w": 0.18,
        "x": 0.41,
        "y": 0.22
      },
      "kind": "table",
      "text": "Casino Outstanding CP (€ millions) 25-Dec-2015 757.4 1-Jan-2016 423.5 8-Jan-2016 719.2",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "c6ec1394-f1c0-4042-aee4-87849c1ca816",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "b3b7be52-2d2d-4c64-8877-f3ddf0770a3e",
      "evidence": "The slide explicitly identifies accounting irregularities and calculation errors to undermine the credibility of the target company and its rating agency.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [
    {
      "to": 8,
      "from": 8,
      "beatId": "b8d3754e-e319-4552-98b2-42a85b2f4b95",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "Expose Contradiction",
      "beatSlug": null,
      "evidence": "The document questions Casino's temporary reduction of commercial paper outstanding.",
      "position": 3,
      "confidence": 0.8,
      "parentBeatName": null,
      "parentBeatSlug": null
    }
  ],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}