{
  "docId": "019dd923-622c-750b-8b96-6d03b12e1d18",
  "docSlug": "cfe5ee328183",
  "documentTitle": "Stroer SE & Co. KGaA (SAX)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
  "documentKindSlug": "research-note",
  "documentKindLabel": "Research note",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2016-04-21 00:00:00",
  "orientation": "portrait",
  "aspectRatio": 0.77272725,
  "pageNumber": 13,
  "pageCount": 62,
  "prevPage": 12,
  "nextPage": 14,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "dense",
  "nDataPoints": 20,
  "notes": "The slide highlights specific accounting concerns regarding balance sheet additions vs cash flow statement reporting.",
  "elementsJson": [
    "paragraph",
    "data_table",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b96-6d03b12e1d18/13",
  "deckHref": "/decks/019dd923-622c-750b-8b96-6d03b12e1d18",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b96-6d03b12e1d18.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b96-6d03b12e1d18#slide-13",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "We are unable to reconcile certain balance sheet and cash flow statement accounts. The balance sheet accounts show additions that are €24.8 million greater than what the cash flow statement seems to show.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-3f3e-76f7-b9df-86800faf1a1a",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "free cash flow: €24.8 million",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-3f3e-76f7-b9df-8a50f50bce12",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.78,
        "x": 0.11,
        "y": 0.09
      },
      "kind": "paragraph",
      "text": "We adjust Ströer’s 2015 free cash flow down by a) €24.8 million due to our inability to reconcile certain balance sheet and cash flow statement accounts, and b) €26.9 million of purchases of non-controlling interests.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "09afdd01-3c8a-4772-b6a3-b07fae095594",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.78,
        "x": 0.11,
        "y": 0.59
      },
      "kind": "paragraph",
      "text": "Ströer also reports additions in balance sheet accounts of €35.4 million in Other Plant & Equipment and €13.6 million in Prepayments Made and Assets Under Construction.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "0cc04f23-0971-43d9-8160-8b88f0284930",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.07,
        "w": 0.78,
        "x": 0.11,
        "y": 0.16
      },
      "kind": "paragraph",
      "text": "As we make clear throughout this report, we have significant concerns about aspects of Ströer’s accounting. We are unable to reconcile certain balance sheet and cash flow statement accounts. The balance sheet accounts show additions that are €24.8 million greater than what the cash flow statement seems to show. We therefore adjust free cash lower by €24.8 million.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "5dcca458-c7bc-4947-a868-207cad8ef5f8",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.78,
        "x": 0.11,
        "y": 0.25
      },
      "kind": "paragraph",
      "text": "In 2015 Ströer reported additions on its balance sheet of a) €46.3 million in Rights and Royalties, b) €4.8 million in Prepayments, and c) €7.9 million in Development costs.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "e1e84e31-01f9-4043-aec1-b7f57dfde3d3",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.04,
        "w": 0.25,
        "x": 0.11,
        "y": 0.88
      },
      "kind": "source-note",
      "text": "12 Ströer 2015 Annual Report p. 134\n13 Ströer 2015 Annual Report p. 137",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "63586bdf-9b86-4b6c-ae56-bef6f642a3a3",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.27,
        "w": 0.72,
        "x": 0.14,
        "y": 0.3
      },
      "kind": "table",
      "text": "Table showing cost movements for Rights and royalties, Goodwill, Prepayments, and Development costs for 2014 and 2015.",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "9ac7a07b-7b8c-4d9a-ba07-8328cbad5f42",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [],
  "arcBeats": [
    {
      "to": 40,
      "from": 3,
      "beatId": "b3f52913-eba1-4212-8b6a-c784e421d7c9",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "Expose Contradiction",
      "beatSlug": null,
      "evidence": "Multiple sections expose contradictions in Ströer's financial reporting and governance.",
      "position": 0,
      "confidence": 0.8,
      "parentBeatName": null,
      "parentBeatSlug": null
    }
  ],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}