{ "docId": "019dd923-622c-750b-8b98-c6f1577ed5e1", "docSlug": "97e66c73c118", "documentTitle": "Hill-Rom Holdings, Inc. (HRC)", "authorId": "54_Spruce_Point_Capital", "authorName": "Ben Axler", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2019-10-29 00:00:00", "orientation": "landscape", "aspectRatio": 1.3333334, "pageNumber": 47, "pageCount": 80, "prevPage": 46, "nextPage": 48, "slideType": "preempt_rebuttal", "function": "preempt_rebuttal", "density": "overcrowded", "nDataPoints": 0, "notes": "The slide uses a two-column layout to categorize criticisms into 'Foreign Markets Are Protective' and 'Foreign Markets Are Less Profitable Than U.S.'", "elementsJson": [ "headline_text", "paragraph", "callout_box", "quote_block" ], "metadataConfidence": 0.95, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b98-c6f1577ed5e1/47", "deckHref": "/decks/019dd923-622c-750b-8b98-c6f1577ed5e1", "deckJsonHref": "/decks/019dd923-622c-750b-8b98-c6f1577ed5e1.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b98-c6f1577ed5e1#slide-47", "components": [ { "bbox": { "h": 0.05, "w": 0.45, "x": 0.05, "y": 0.0035 }, "kind": "callout", "text": "Foreign Markets Are Protective", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "0d62a9b8-4a42-43ef-a1f1-82afb808d251", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.45, "x": 0.55, "y": 0.0035 }, "kind": "callout", "text": "Foreign Markets Are Less Profitable Than U.S.", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "3934e64a-b4ad-434a-b399-1c294c568727", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "callout", "text": "Management also claims that near-term efforts to expand into foreign markets will support sales growth going forward. However, with Hill-Rom already having made a number of failed attempts to grow its international business, we have little confidence that foreign markets can serve as a meaningful growth engine for the Company.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-203c-716b-be78-73677ce248ae", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.9, "x": 0.05, "y": 0.00165 }, "kind": "paragraph", "text": "Management also claims that near-term efforts to expand into foreign markets will support sales growth going forward. However, with Hill-Rom already having made a number of failed attempts to grow its international business, we have little confidence that foreign markets can serve as a meaningful growth engine for the Company.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "308eadd1-1c9c-4194-8eed-5203272f764d", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.1, "w": 0.45, "x": 0.55, "y": 0.0040999999999999995 }, "kind": "quote", "text": "The German and European markets were less interested in advanced tech in its furniture than it was in being able to furnish the entire hospital room through a single supplier. The European business was inherently less profitable.", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "8d064f43-5223-447a-ba4b-9a7a5b5556fb", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.1, "w": 0.45, "x": 0.05, "y": 0.0040999999999999995 }, "kind": "quote", "text": "Trumpf was not profitable and was losing market share.... The German business is still protective of its own. There was a level of resentment [towards Hill-Rom].", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "cc33e15a-e376-4cfe-938c-b48effcb8288", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "\"Trumpf was not profitable and was losing market share.... The German business is still protective of its own. There was a level of resentment [towards Hill-Rom].\" — Former Employee, Hill-Rom; \"The German and European markets were less interested in advanced tech in its furniture than it was in being able to furnish the entire hospital room through a single supplier. The European business was inherently less profitable.\" — Former Employee, Hill-Rom; \"It is complicated to shift international supply chains to grow foreign sales. Volker lost market share due to the difficulty of shipping from that part of the world. Hill-Rom tried to expand it into new markets, but failed, and neglected the home market. And countries in Europe favor local brands and manufacturing.\" — Former Employee, Hill-Rom; \"Hill-Rom wanted to deemphasize pure furniture and push higher-tech products. But it's hard to do that in Europe. Beds in Europe have less IP. They were not high-dollar products.\" — Former Employee, Hill-Rom; \"The European businesses [acquired by Hill-Rom] were generally better off on their own. They gained access to more geographies through Hill-Rom, but they also lost local knowledge with Hill-Rom in control.\" — Former Employee, Hill-Rom; \"OUS is a different sales pitch... Unlike the US, the number of beds in emerging markets is increasing. But they are lower-ticket items in these areas.\" — Former Employee, Hill-Rom; \"Do they even have a long-term vision? I joined because it felt like a great team atmosphere, but now it feels like it's every man for himself.\" — Former Employee [Europe-based], Hill-Rom", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-203c-716b-be78-774682e0051e", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.65, "x": 0.31, "y": 0.05 }, "kind": "title", "text": "International Not A Promising Route To Long-Term Growth", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "b6612292-cba8-4dd7-8b38-8b578f7eb9b6", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "preempt_rebuttal", "slug": null, "matchId": "8d291ecc-d1a9-4a48-8c48-724e31b89a97", "evidence": "The slide directly addresses and refutes management's growth claims using external/internal expert testimony.", "confidence": 0.9 } ], "arcBeats": [], "loops": [ { "to": 50, "from": 45, "name": "Cost Of Inaction", "slug": "27-cost-of-inaction", "bestFor": "Urgent budget requests, compliance, risk mitigation", "matchId": "eb96b44f-8d99-49c2-9383-148bd7aa8fc0", "evidence": "The document highlights the potential costs of inaction for Hill-Rom's investors, including the risk of significant downside.", "position": 1, "objective": "What is the cost of inaction for Hill-Rom's investors?", "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point", "confidence": 0.7, "description": "Quantify what happens if the audience does nothing" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }