{
  "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": 76,
  "pageCount": 95,
  "prevPage": 75,
  "nextPage": 77,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "overcrowded",
  "nDataPoints": 24,
  "notes": "The slide uses a 'Spruce Point Adjustments' framework to reconcile reported vs. adjusted financial metrics.",
  "elementsJson": [
    "headline_text",
    "paragraph",
    "callout_box",
    "data_table",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b98-eaae8b08698d/76",
  "deckHref": "/decks/019dd923-622c-750b-8b98-eaae8b08698d",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b98-eaae8b08698d.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b98-eaae8b08698d#slide-76",
  "components": [
    {
      "bbox": {
        "h": 0.08,
        "w": 0.81,
        "x": 0.15,
        "y": 0.34
      },
      "kind": "callout",
      "text": "The downgrade reflects slower-than-expected deleveraging following Amcor's acquisition of Bemis. Key Assumptions: “Revenue at around USD13.5 billion for FY20, increasing by low single-digits over FY21-FY23”",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "dd6af8af-6574-45bd-bb39-13db66ddc022",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "callout",
      "text": "The downgrade reflects slower-than-expected deleveraging following Amcor's acquisition of Bemis.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-2b65-734e-a985-0b71155da568",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "Net Debt/EBITDA: 3.3x",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-2b65-734e-a985-128130ed9f33",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.91,
        "x": 0.05,
        "y": 0.17
      },
      "kind": "paragraph",
      "text": "Amcor presents a potentially misleading view of its leverage by not including capital leases, and not clearly displaying how much cash is restricted for legal disputes, overdrafts and/or working capital needs. The Company says its leverage is 2.9x Net Debt / EBITDA, but we estimate leverage is closer to 3.3x. Amcor was recently downgraded by Fitch in February 2020 from BBB+ to BBB, yet it expects revenues to increase low single digits in the coming years. We believe this forecast is already proving to be overly-optimistic.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "077e7817-0964-477a-901b-69aa76f91156",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "Revenue at around USD13.5 billion for FY20, increasing by low single-digits over FY21-FY23 — Fitch Credit Review",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd953-2b65-734e-a985-0feb7d0fe4a3",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.91,
        "x": 0.05,
        "y": 0.93
      },
      "kind": "source-note",
      "text": "Source: EBITDA and Leverage per Amcor earnings press releases. 1) Cash reduced for $13.5m held with Brazilian courts. In addition, its estimated that $150m is restricted for working capital and liquidity needs. See: Fitch Credit Review",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "876b067f-3cec-491a-9716-a7f2847094f0",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.45,
        "w": 0.91,
        "x": 0.05,
        "y": 0.45
      },
      "kind": "table",
      "text": "Company Promoted EBITDA And Leverage vs Spruce Point Adjustments table",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "0eb4ce56-a0c6-4c8e-955c-b14cbb6717ae",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.65,
        "x": 0.31,
        "y": 0.03
      },
      "kind": "title",
      "text": "Amcor More Levered Than It Appears And At Risk of Further Downgrade Towards Junk",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "e4ca1341-e724-4077-b593-1eafd7894b51",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "3853d3fa-c346-4de9-a436-43e4f73159c3",
      "evidence": "The slide explicitly claims the company is presenting a 'misleading view' of its leverage and provides adjustments to expose the 'true' financial position.",
      "confidence": 0.95
    }
  ],
  "arcBeats": [],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}