{
  "docId": "019dd923-622c-750b-8b97-9fb7a842e09f",
  "docSlug": "cddb6c0b289f",
  "documentTitle": "Eurofins Scientific SE (ERF)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
  "documentKindSlug": "research-note",
  "documentKindLabel": "Research note",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2024-06-24 00:00:00",
  "orientation": "portrait",
  "aspectRatio": 0.77272725,
  "pageNumber": 18,
  "pageCount": 36,
  "prevPage": 17,
  "nextPage": 19,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "dense",
  "nDataPoints": 0,
  "notes": "The slide uses anecdotal evidence from former employees to support the claim of weak internal controls.",
  "elementsJson": [
    "headline_text",
    "paragraph",
    "quote_block",
    "footnote"
  ],
  "metadataConfidence": 0.95,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b97-9fb7a842e09f/18",
  "deckHref": "/decks/019dd923-622c-750b-8b97-9fb7a842e09f",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b97-9fb7a842e09f.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b97-9fb7a842e09f#slide-18",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "Eurofins Has Had a Loose Internal Financial Reporting System Primarily Based on Spreadsheets",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-3f3d-76db-b335-d3c9ec33d980",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.78,
        "x": 0.11,
        "y": 0.22
      },
      "kind": "paragraph",
      "text": "We view Eurofins as optimized for malfeasance in part because its internal controls seem woefully inadequate. It seems that a substantial portion of its BUs rely on sending spreadsheets around the structure to report financials, rather than using a robust ERP system.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "ea19ef80-c880-48be-abff-f7535265c1e6",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.78,
        "x": 0.11,
        "y": 0.56
      },
      "kind": "quote",
      "text": "“Given the fact, to your question, you don’t have a policies-governed reporting system, it doesn’t make me fall off my chair that it is indeed possible to manipulate the numbers. Absolutely, absolutely. It is, it is the manual way things are put together. By design it is possible... ”",
      "attrs": null,
      "subkind": "testimonial",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "9c169982-8247-42f2-b5ba-92724c7af651",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "“Given the fact, to your question, you don’t have a policies-governed reporting system, it doesn’t make me fall off my chair that it is indeed possible to manipulate the numbers. Absolutely, absolutely. It is, it is the manual way things are put together. By design it is possible... I’m running a company of [far fewer employees]... Even in my company, I have no doubt that I could not [manipulate numbers].” — Source A; “I’m not saying it is happening, but there are definitely opportunities to change or manipulate data.” — Source B",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd953-3f3d-76db-b335-d58556172ed4",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.25,
        "x": 0.11,
        "y": 0.88
      },
      "kind": "source-note",
      "text": "32 Conversation with Source A. 33 Conversation with Source A. 34 Conversation with Source B. 35 Conversation with Source Q.",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "4cd6af8d-c09c-4994-b79e-2f458f09c6a9",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.78,
        "x": 0.11,
        "y": 0.09
      },
      "kind": "title",
      "text": "Eurofins’ Internal Controls Seem Shockingly Deficient and Designed to Enable Malfeasance (Rather than Typifying those of a CAC 40 Company)",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "87685b23-3b91-49dc-b51d-566ad9e62141",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.78,
        "x": 0.11,
        "y": 0.41
      },
      "kind": "title",
      "text": "Eurofins Has Had a Loose Internal Financial Reporting System Primarily Based on Spreadsheets",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "e30b3ce0-7570-4af9-b918-1d0a419020d1",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "26194479-1a98-4a00-bd96-1a1864822733",
      "evidence": "The slide explicitly links internal control deficiencies to the potential for financial manipulation and malfeasance.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [
    {
      "to": 30,
      "from": 3,
      "beatId": "3d510a0f-6fd9-45d2-879c-09a0eaf3d1a5",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "Expose Contradiction",
      "beatSlug": null,
      "evidence": "The research note presents various contradictions in Eurofins Scientific's financial reporting and disclosures.",
      "position": 0,
      "confidence": 0.8,
      "parentBeatName": null,
      "parentBeatSlug": null
    }
  ],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}