{
  "docId": "019dd923-622c-750b-8b96-7905fc2a0f1b",
  "docSlug": "18c2957f2a91",
  "documentTitle": "Stroer SE & Co. KGaA (SAX)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Muddy Waters Capital",
  "documentKindSlug": "other",
  "documentKindLabel": "Other",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2016-08-10 00:00:00",
  "orientation": "portrait",
  "aspectRatio": 0.77272725,
  "pageNumber": 28,
  "pageCount": 91,
  "prevPage": 27,
  "nextPage": 29,
  "slideType": "appendix_disclosure",
  "function": "frame_problem",
  "density": "overcrowded",
  "nDataPoints": 0,
  "notes": "The slide is a continuation of a Q&A or inquiry document, specifically focusing on Evolution Media Net, Digital Partners, and Infoscreen.",
  "elementsJson": [
    "numbered_list",
    "paragraph"
  ],
  "metadataConfidence": 0.9,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b96-7905fc2a0f1b/28",
  "deckHref": "/decks/019dd923-622c-750b-8b96-7905fc2a0f1b",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b96-7905fc2a0f1b.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b96-7905fc2a0f1b#slide-28",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "Muddy Waters determined that Ströer - against the backdrop of the bankruptcy of Evolution and the sale of three major companies of Ballroom in Poland and Turkey... should write off the acquisition.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd952-ee37-76cb-8476-ec71f4bf7e5c",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.38,
        "x": 0.51,
        "y": 0.72
      },
      "kind": "list",
      "text": "5.4 Ströer's gross profit per employer has decreased from 100,000 euros in 2012, i.e. prior to the digital strategy, to 93,000 euros in 2015. But digital advertising should be essentially more efficient.",
      "attrs": null,
      "subkind": "numbered",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "17194b5a-2c5c-4825-b75e-6985cb8eaa4b",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.38,
        "x": 0.11,
        "y": 0.14
      },
      "kind": "list",
      "text": "3.5 Did Ströer bankrupt Evolution or was it the creditors? 3.6 Why did Evolution go bankrupt? 3.7 How high were sales, EBITDA and Evolution results in the years 2013, 2014 and 2015?",
      "attrs": null,
      "subkind": "numbered",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "38878cb3-4ac5-4432-8248-e0430215f425",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.38,
        "x": 0.11,
        "y": 0.55
      },
      "kind": "list",
      "text": "3.10 Please explain how high annual sales, EBITDA and profit after taxes were for Reklamz... 3.11 Exactly how high were sales in 2014? 3.12 How high were EBITDA and the net result in 2014? 3.13 Why did you sell Digital Partners?",
      "attrs": null,
      "subkind": "numbered",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "4a913c06-02ab-46d9-86e6-df8eeb4b35af",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.38,
        "x": 0.51,
        "y": 0.08
      },
      "kind": "list",
      "text": "3.14 How much did you receive in cash? Did you receive any payment in kind? 3.15 Is Digital Partners now a customer of Ströer?",
      "attrs": null,
      "subkind": "numbered",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "62dc76ce-e259-4981-a569-6eb361d8cb0b",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.38,
        "x": 0.51,
        "y": 0.35
      },
      "kind": "list",
      "text": "4.4 It seems that Infoscreen's many customers are paying for the ads with money from their out-of-home media budget. These include traditional billboards? Is this correct?",
      "attrs": null,
      "subkind": "numbered",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "6a8e4689-db7f-4a1c-80b0-49819ef3e2e4",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.38,
        "x": 0.11,
        "y": 0.23
      },
      "kind": "list",
      "text": "3.8 Muddy Waters determined that Ströer – against the backdrop of the bankruptcy of Evolution and the sale of three major companies of Ballroom in Poland and Turkey... should write off the acquisition.",
      "attrs": null,
      "subkind": "numbered",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "7e630196-e104-418a-aceb-c0fa0599b7c5",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.38,
        "x": 0.11,
        "y": 0.42
      },
      "kind": "list",
      "text": "3.9 Instead of a write-off, the book value of Ströer Digital International GmbH... actually increased from 201,000 euros to 24,637 million due to a valuation adjustment.",
      "attrs": null,
      "subkind": "numbered",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "8baec817-4340-4f17-a3bf-3d0be04377da",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.38,
        "x": 0.11,
        "y": 0.36
      },
      "kind": "list",
      "text": "3.8 Is the reason for the failure to write off that Ströer feared that concerned investors could question Ströer's ability to boost business through acquisitions?",
      "attrs": null,
      "subkind": "numbered",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "a1c2c610-0bd7-429a-812d-f22ad237f1a8",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.38,
        "x": 0.51,
        "y": 0.54
      },
      "kind": "list",
      "text": "5.1 Where do these payments come from exactly? 5.2 When and for how much did Ströer purchase these concessions? 5.3 When and how were the associated costs entered into the accounts?",
      "attrs": null,
      "subkind": "numbered",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "d0f0466d-118c-4191-bb1e-4388c96ccf6e",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.09,
        "w": 0.38,
        "x": 0.51,
        "y": 0.25
      },
      "kind": "list",
      "text": "4.3 Is infoscreen being cross-subsidized by business deriving from the regular billboards... Are the rental costs being passed wholly to Infoscreen...?",
      "attrs": null,
      "subkind": "numbered",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "e4fbe9d3-f5bb-44b2-8801-360dacef28a8",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.38,
        "x": 0.51,
        "y": 0.18
      },
      "kind": "list",
      "text": "4.1 In its report, Muddy Waters describes the EBITDA margin as unusually high. How high was the EBITDA margin in 2014 and 2015? 4.2 Why is the margin so high?",
      "attrs": null,
      "subkind": "numbered",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "ed38e418-6843-4ad8-bd0d-c20271b780bc",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.38,
        "x": 0.11,
        "y": 0.08
      },
      "kind": "paragraph",
      "text": "The main business in Poland took place with Evolution Media Net Sp. z.o.o., which Ströer acquired via Ballroom. Evolution recently went bankrupt. Ergo the following questions:",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "4444441f-c8f7-4a9d-90a4-abc7f3fa0503",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.38,
        "x": 0.51,
        "y": 0.63
      },
      "kind": "paragraph",
      "text": "We are assuming that they were never entered into the accounts. They were booked as immaterial assets and realized as income and therefore constitute a booking-in and booking-out of money in order to increase revenues.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "531eefa3-8db0-4e34-a56b-5fa6c2e2ca27",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.38,
        "x": 0.51,
        "y": 0.45
      },
      "kind": "paragraph",
      "text": "On page 125 of the annual report for 2014, Ströer designates 6.75 million euros to other operating revenue. This amount results from compensation payments relating to advertising rights acquired in the Ströer Germany sector.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "800ca7d6-420f-41b4-bd87-069627d511f2",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.38,
        "x": 0.51,
        "y": 0.14
      },
      "kind": "paragraph",
      "text": "In the fourth group we're dealing with Infoscreen. Infoscreen is a video billboard.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "b916e166-7e5c-42cf-a48c-f32f2bf217a3",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.02,
        "w": 0.38,
        "x": 0.51,
        "y": 0.42
      },
      "kind": "title",
      "text": "5. Financial matters",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "1400749f-595c-4aeb-bab3-afd26e45c6ef",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [
    {
      "name": "List presentation",
      "slug": "list-presentation",
      "agent": null,
      "layer": "slide",
      "matchId": "f5db7adc-ce9c-48cf-9a9b-392be6bef785",
      "evidence": "list/numbered: 3.10 Please explain how high annual sales, EBITDA and profit after taxes were for Reklamz... 3.11 Exactly how high were sales in 2014? 3.12 How high were EBITDA and the net result in 2014? 3.13 Why did you",
      "confidence": 0.8
    }
  ],
  "frameworks": [],
  "arcBeats": [
    {
      "to": 30,
      "from": 11,
      "beatId": "43d1b36f-2baa-4a2b-a629-011823670691",
      "arcName": "The Consultant's Gambit",
      "arcSlug": "consultants-gambit",
      "beatName": "Problem & Complication",
      "beatSlug": "consultants-gambit-problem-complication",
      "evidence": "The following slides likely present Muddy Waters' concerns and findings",
      "position": 1,
      "confidence": 0.7,
      "parentBeatName": "Complication",
      "parentBeatSlug": "complication"
    }
  ],
  "loops": [
    {
      "to": 40,
      "from": 20,
      "name": "Cost Of Inaction",
      "slug": "27-cost-of-inaction",
      "bestFor": "Urgent budget requests, compliance, risk mitigation",
      "matchId": "7c3089cc-d014-4b30-b6d5-dbf14243f4e0",
      "evidence": "The document implies that there are consequences for not taking action",
      "position": 0,
      "objective": "What are the costs of not addressing Muddy Waters' concerns?",
      "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
}