{
  "docId": "019dd923-622c-750b-8b99-53ebe45211d2",
  "docSlug": "78ffe7ab28d4",
  "documentTitle": "Saputo Inc. (TSX:SAP)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2022-11-29 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 31,
  "pageCount": 147,
  "prevPage": 30,
  "nextPage": 32,
  "slideType": "appendix_data",
  "function": "analyze_data",
  "density": "dense",
  "nDataPoints": 10,
  "notes": "Uses a 'red flag' callout to highlight deficient disclosures and a yellow callout to summarize the erosion findings.",
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  "metadataConfidence": 1,
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  "slideHref": "/slides/019dd923-622c-750b-8b99-53ebe45211d2/31",
  "deckHref": "/decks/019dd923-622c-750b-8b99-53ebe45211d2",
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  "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-53ebe45211d2#slide-31",
  "components": [
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      "bbox": {
        "h": 0.35,
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        "x": 0.72,
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      "kind": "callout",
      "text": "Adjusted EBITDA declined slightly From FY17 – FY22 after adjusting for FX challenges. However, we estimate acquisitions should have contributed $259 – $326m of EBITDA",
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      "bbox": {
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      "kind": "callout",
      "text": "Saputo gives deficient disclosures about the EBITDA contributions from acquisition targets. In only three recent cases has it provided such information. Based on our estimate, there has been between $274 - $341 million of EBITDA erosion in the business, while adjusting for foreign currency (FX) effects. Our conclusion: either many acquisitions never had any EBITDA to contribute, or it has subsequently been eroded post contribution to Saputo.",
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      "componentId": "6df46c18-a776-4de5-8782-83a17c6daf0c",
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    {
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      "kind": "callout",
      "text": "Our conclusion: either many acquisitions never had any EBITDA to contribute, or it has subsequently been eroded post contribution to Saputo.",
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      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
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      "componentId": "019dd953-0f1e-7015-9034-2935bb2e7419",
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    {
      "bbox": {
        "h": 0.08,
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      "kind": "disclaimer",
      "text": "1) As disclosed by Saputo in company press releases, but doesn't adjust for Koroit facility divestiture due to lack of information on its EBITDA contribution\n2) Assumes remaining acquisitions from 2017-2021 contribution between 5% (low) and 15% (high) EBITDA margins. Assumes no contribution from 2022 acquisitions since Saputo disclosed no EBITDA benefit from these transactions\n3) FX gains (losses) reported at $13, ($18), ($5), ($36), ($2), ($72) million from 2017-2022",
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    },
    {
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      "kind": "metric",
      "text": "EBITDA: $1,275",
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      "toolName": "Quantification",
      "toolSlug": "quantification",
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      "componentId": "019dd953-0f1e-7015-9034-2fcd9372f168",
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      "kind": "table",
      "text": "Saputo's Estimated Organic EBITDA Growth, Last 5 Years",
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        "x": 0.31,
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      "kind": "title",
      "text": "Estimating Saputo's Organic EBITDA Erosion",
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  "frameworks": [
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      "name": "fraud-exposure",
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      "matchId": "570e8883-5a46-456e-9902-7377eefe2f34",
      "evidence": "The slide explicitly frames the lack of disclosure as a basis for identifying hidden EBITDA erosion.",
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  "loops": [
    {
      "to": 40,
      "from": 30,
      "name": "Cost Of Inaction",
      "slug": "27-cost-of-inaction",
      "bestFor": "Urgent budget requests, compliance, risk mitigation",
      "matchId": "15516e36-f23c-4341-a037-fdcef981450b",
      "evidence": "The document presents specific examples of the risks associated with not taking action to address Saputo's challenges.",
      "position": 1,
      "objective": "To highlight the risks of not taking action to address Saputo's challenges, including declining performance and financial stress.",
      "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"
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