{ "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": 70, "pageCount": 147, "prevPage": 69, "nextPage": 71, "slideType": "testimonial", "function": "expose_contradiction", "density": "overcrowded", "nDataPoints": 0, "notes": "The slide uses a structured format to present expert testimony as evidence for an activist short thesis.", "elementsJson": [ "headline_text", "callout_box", "quote_block", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b99-53ebe45211d2/70", "deckHref": "/decks/019dd923-622c-750b-8b99-53ebe45211d2", "deckJsonHref": "/decks/019dd923-622c-750b-8b99-53ebe45211d2.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-53ebe45211d2#slide-70", "components": [ { "bbox": null, "kind": "callout", "text": "As part of our research process, Spruce Point consulted a former Saputo executive familiar with its U.S. finance and operations, with an emphasis on the dairy business.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-0f1f-75c8-856b-b25ea4b5fbfe", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.07, "w": 0.96, "x": 0.02, "y": 0.17 }, "kind": "paragraph", "text": "As part of our research process, Spruce Point consulted a former Saputo executive familiar with its U.S. finance and operations, with an emphasis on the dairy business.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "fef86324-a680-499f-9058-02c4278b881d", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.21, "w": 0.86, "x": 0.12, "y": 0.39 }, "kind": "quote", "text": "I can think of few reasons why. I don't think they're doing it to be deceptive, but it certainly sounds deceptive. They're losing major customers. Not all assets have to be used at 100%. It's not practical capacity. World class is 80-85%. You asked the right question: I'd want to understand their capacity utilization, if down from 70% to 60% and they haven't done anything to the workforce, the writing is on the wall. Ultimately, the way this business evaluates itself is, what's the cost per pound? Is it going up or down, are you flexing your cost with the volume you're producing.", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "5cee26b1-d986-4d67-8a02-1ea299be0c34", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.86, "x": 0.12, "y": 0.62 }, "kind": "quote", "text": "They implemented SAP and there was a specific module - the Dairy Management System - when I was there it was supposed to roll out on the third go live. They implemented it in waves. If 80% of your business is milk, this DMS When I was there it wasn't working. The purpose is to help you understand the costing of your milk and derive a dairy financial stamen. When I was there, they still didn't have it figured out when I left 2 years ago.", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "a80619dd-9cbb-49b3-b5d7-c22a7307138f", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.09, "w": 0.86, "x": 0.12, "y": 0.79 }, "kind": "quote", "text": "I'd bet against them, that's my view. Picture the McDonald's, Burger King's of the world. If they are having bad years, then Saputo will have a bad year. If McDonald's isn't selling milkshakes, Saputo's not making them. There's a high degree of correlation.", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "aad664ba-3fb5-4a30-9dab-90603a1503b8", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.09, "w": 0.86, "x": 0.12, "y": 0.27 }, "kind": "quote", "text": "Full transparency, the ice cream mix for chocolate is the nasty stuff. The half and half that fails will be re-processed to sanitize it and add chocolate mix.", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "fbf0f800-9fe9-453d-a08f-a3431a5eeb0a", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "\"Full transparency, the ice cream mix for chocolate is the nasty stuff. The half and half that fails will be re-processed to sanitize it and add chocolate mix.\" — Former Saputo Executive. \"I can think of few reasons why. I don't think they're doing it to be deceptive, but it certainly sounds deceptive. They're losing major customers. Not all assets have to be used at 100%. It's not practical capacity. World class is 80-85%.\" — Former Saputo Executive. \"They implemented SAP and there was a specific module - the Dairy Management System - when I was there it was supposed to roll out on the third go live. They implemented it in waves. If 80% of your business is milk, this DMS When I was there it wasn't working. The purpose is to help you understand the costing of your milk and derive a dairy financial stamen. When I was there, they still didn't have it figured out when I left 2 years ago.\" — Former Saputo Executive. \"I'd bet against them, that's my view. Picture the McDonald's, Burger King's of the world. If they are having bad years, then Saputo will have a bad year. If McDonald's isn't selling milkshakes, Saputo's not making them. There's a high degree of correlation.\" — Former Saputo Executive.", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-0f1f-75c8-856b-b6fe657ee71c", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.18, "x": 0.02, "y": 0.96 }, "kind": "source-note", "text": "Source: Spruce Point interview", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "606e47bd-644d-49f0-ba24-dd1609656e5b", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.65, "x": 0.31, "y": 0.04 }, "kind": "title", "text": "Spruce Point Interview of U.S. Executive #2 (Cont'd)", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "bb8232a9-eddb-40fd-b4fc-87a6b53b28b9", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }