{
  "docId": "019dd923-622c-750b-8b98-eaae8b08698d",
  "docSlug": "c665ec3b53b5",
  "documentTitle": "Amcor plc (pro forma Amcor-Berry Global combination) (AMCR)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2020-03-10 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 21,
  "pageCount": 95,
  "prevPage": 20,
  "nextPage": 22,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "overcrowded",
  "nDataPoints": 6,
  "notes": "Uses a 'villain critique' style to highlight the risks of customer concentration in the packaging industry.",
  "elementsJson": [
    "headline_text",
    "paragraph",
    "data_table",
    "line_chart",
    "callout_box"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b98-eaae8b08698d/21",
  "deckHref": "/decks/019dd923-622c-750b-8b98-eaae8b08698d",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b98-eaae8b08698d.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b98-eaae8b08698d#slide-21",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "Spruce Point believes the stock-for-stock merger of Amcor + Bemis was a deal done out of necessity for survival.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-2b65-734e-a980-561862a06bed",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.32,
        "w": 0.45,
        "x": 0.03,
        "y": 0.63
      },
      "kind": "chart",
      "text": "Kraft Heinz Share Price",
      "attrs": null,
      "subkind": "line",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "e1d08b85-2c76-49eb-bc93-3c0d2c762895",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.18,
        "w": 0.24,
        "x": 0.49,
        "y": 0.63
      },
      "kind": "list",
      "text": "Kraft goodwill write-down of $15.4bn; The huge write-down appeared to come from a shift in how consumers eat; SEC subpoena investigation into accounting and controls",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "46db0dce-8b78-4998-a8b9-8bdc2617f91a",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.18,
        "w": 0.22,
        "x": 0.75,
        "y": 0.63
      },
      "kind": "list",
      "text": "Kraft downgraded to Junk by two ratings agencies; Finances have become strained; Demand for healthier foods has weighed on appetite for processed products",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "e0e29dde-9fd7-455b-b958-500720a9e77a",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.13,
        "w": 0.24,
        "x": 0.49,
        "y": 0.82
      },
      "kind": "list",
      "text": "Kraft to restate three years of financials; Investigation tied to accounting and procurement practices affecting $208m of Cost of Goods Sold",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "ebe21ae5-4fea-453b-8457-24dc102c1156",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.11,
        "w": 0.94,
        "x": 0.03,
        "y": 0.18
      },
      "kind": "paragraph",
      "text": "Spruce Point believes the stock-for-stock merger of Amcor + Bemis was a deal done out of necessity for survival. It illustrates that neither company would stake its own capital to acquire the other.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "97246ce4-1d0e-43cb-9a19-76736865c20e",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "\"Amcor’s financial profile will be enhanced, and our existing capital allocation framework, or shareholder value creation model, will be maintained and strengthened with this transaction.\" — CEO ACMR; \"Sales to PepsiCo, and its subsidiaries, accounted for approximately 11.1%, 11.0% and 11.7% of our sales in fiscal years 2019, 2018 and 2017, respectively.\" — Amcor 10-K; \"So the (specialty) cartons business is a little less than 10% of sales now. It’s a global business. It’s predominantly selling tobacco cartons.\" — Amcor CEO Citi Conf Dec 2019; \"Sales to the Kraft Heinz Company, and its subsidiaries, accounted for approximately 11 percent in 2018 and 10 percent in 2017 and 2016. The Company primarily sells to Kraft Heinz Company in the U.S. Packaging segment.\" — Bemis 10-K",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd953-2b65-734e-a980-58d5c359f4fc",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.45,
        "x": 0.03,
        "y": 0.97
      },
      "kind": "source-note",
      "text": "1) On a pro forma basis, we estimate Pepsi is ~8.0% of sales, and Kraft Heinz 3.5% of sales",
      "attrs": {
        "numbered": true
      },
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "ccd09ada-09c1-4189-a825-52dad8e0d135",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.28,
        "w": 0.94,
        "x": 0.03,
        "y": 0.33
      },
      "kind": "table",
      "text": "CEO ACMR quote, Amcor 10-K PepsiCo data, Amcor CEO Citi Conf quote, Bemis 10-K Kraft Heinz data",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "2d1fee82-a9b3-4ebb-9ec2-27371bd51e0c",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.65,
        "x": 0.31,
        "y": 0.03
      },
      "kind": "title",
      "text": "Our View of Amcor / Bemis: A Merger of Desperation",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "c9b7bf94-9ca2-47b3-8daf-f600ae2f3742",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "ceo-quote-contradiction",
      "slug": null,
      "matchId": "eaa71378-55b3-4207-9d82-179ff8828587",
      "evidence": "Contrasts CEO quote with 10-K data and share price performance",
      "confidence": 0.95
    }
  ],
  "arcBeats": [
    {
      "to": 40,
      "from": 6,
      "beatId": "abde5119-eb1f-41d5-93e1-e799fbfaa3b5",
      "arcName": "Problem-Agitate-Solution",
      "arcSlug": "problem-agitate-solution",
      "beatName": "Agitation",
      "beatSlug": "problem-agitate-solution-agitate-make-it-worse",
      "evidence": "The deck presents extensive evidence of financial and operational issues, worsening the situation.",
      "position": 1,
      "confidence": 0.8,
      "parentBeatName": "Development",
      "parentBeatSlug": "development"
    }
  ],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}