{
  "docId": "019dd923-622c-750b-8b99-65deaf51fc65",
  "docSlug": "41aa7e476e91",
  "documentTitle": "Xylem Inc. (XYL)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2023-08-09 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 18,
  "pageCount": 82,
  "prevPage": 17,
  "nextPage": 19,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "overcrowded",
  "nDataPoints": 30,
  "notes": "Uses a 'Spruce Point Question' vs 'Former Xylem Executive Response' format to highlight operational dysfunction.",
  "elementsJson": [
    "headline_text",
    "paragraph",
    "callout_box",
    "data_table"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b99-65deaf51fc65/18",
  "deckHref": "/decks/019dd923-622c-750b-8b99-65deaf51fc65",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b99-65deaf51fc65.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-65deaf51fc65#slide-18",
  "components": [
    {
      "bbox": {
        "h": 0.06,
        "w": 0.94,
        "x": 0.03,
        "y": 0.37
      },
      "kind": "callout",
      "text": "Spruce Point Question: Integrating sounds easy on the surface, but hard to do in practice. What's your take on Xylem?",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "aea43e2d-ac28-4773-8b80-098df882b4ee",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "callout",
      "text": "Spruce Point frequently finds that when companies have trouble meeting their capex projections, it is at best an indication of poor financial management, and at worst a symptom of significant underlying problems in the business.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd952-fb96-7553-b1c7-bac0b260a43a",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "Capex underspend: $95 million",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd952-fb96-7553-b1c7-c089acb24e35",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.07,
        "w": 0.94,
        "x": 0.03,
        "y": 0.16
      },
      "kind": "paragraph",
      "text": "Spruce Point frequently finds that when companies have trouble meeting their capex projections, it is at best an indication of poor financial management, and at worst a symptom of significant underlying problems in the business.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "f5ba5286-b894-4ccb-a12a-b3c47859d175",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.14,
        "w": 0.94,
        "x": 0.03,
        "y": 0.44
      },
      "kind": "quote",
      "text": "When Xylem spun out of ITT it was not integrated... We made progress, but there is a lot still there. The question is how does Xylem find a way to live with the complexity vs. getting to one system.",
      "attrs": null,
      "subkind": "testimonial",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "15bb3fba-ccf3-4cd8-8652-f7c2e6c93b29",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "When Xylem spun out of ITT it was not integrated. ITT had internal businesses competing with each other. When it spun out the number of ERP CRM CPQ systems where like 50 to 70 different systems across the Company. Legal entities, much higher than that. Initially, we were a self-help story. Everyone loved it for a while. We made progress, but there is a lot still there. The question is how does Xylem find a way to live with the complexity vs. getting to one system. Very expensive and a lot of change management to fix things. — Former Xylem Executive",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd952-fb96-7553-b1c7-bca8fc28aa00",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.45,
        "x": 0.03,
        "y": 0.96
      },
      "kind": "source-note",
      "text": "Source: Xylem financial statements, Spruce Point analysis and interview",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "4a0a0359-d6a0-4a5b-a2bc-725092643140",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.35,
        "w": 0.94,
        "x": 0.03,
        "y": 0.59
      },
      "kind": "table",
      "text": "Xylem's Guidance vs. Actual Results table showing Capex and Restructuring Expense variances from 2019-2022.",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "be7f34bd-51e9-42c7-bca6-e8c217f18b26",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.65,
        "x": 0.31,
        "y": 0.03
      },
      "kind": "title",
      "text": "Chronic Underinvestment And Over-Booking of Restructuring Expenses",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "cbd9e3fe-2522-45ae-874d-61466505798f",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "ceo-quote-contradiction",
      "slug": null,
      "matchId": "22298013-8794-4b58-8f35-d0c0439efe38",
      "evidence": "Uses a former executive quote to contradict management's financial guidance narrative.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [
    {
      "to": 79,
      "from": 9,
      "beatId": "b68955ea-1bea-4271-af69-04b4b38ed3c6",
      "arcName": "Problem-Agitate-Solution",
      "arcSlug": "problem-agitate-solution",
      "beatName": "Expose Contradiction",
      "beatSlug": null,
      "evidence": "The deck presents a series of contradictions and concerns about Xylem's financial reporting, operations, and growth prospects",
      "position": 0,
      "confidence": 0.8,
      "parentBeatName": null,
      "parentBeatSlug": null
    },
    {
      "to": 56,
      "from": 11,
      "beatId": "8beb67eb-29a7-4acc-8013-1400d57c9a45",
      "arcName": "Problem-Agitate-Solution",
      "arcSlug": "problem-agitate-solution",
      "beatName": "Preempt Rebuttal",
      "beatSlug": null,
      "evidence": "The deck anticipates and addresses potential rebuttals to its thesis",
      "position": 2,
      "confidence": 0.8,
      "parentBeatName": null,
      "parentBeatSlug": null
    }
  ],
  "loops": [
    {
      "to": 82,
      "from": 1,
      "name": "Cost Of Inaction",
      "slug": "27-cost-of-inaction",
      "bestFor": "Urgent budget requests, compliance, risk mitigation",
      "matchId": "2fa1c508-68a2-4a6b-9e65-5ff630e9c720",
      "evidence": "The deck presents a detailed analysis of the risks and consequences of not taking action on Xylem's challenges",
      "position": 1,
      "objective": "Highlight the risks of not taking action",
      "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"
    },
    {
      "to": 77,
      "from": 6,
      "name": "So What Cascade",
      "slug": "41-so-what-cascade",
      "bestFor": "Data presentations, executive summaries, driving to recommendations",
      "matchId": "7d351594-e5d5-4f56-831e-33e1f8bcec2d",
      "evidence": "The deck presents a series of logical and connected arguments to support its thesis",
      "position": 2,
      "objective": "Build a logical case for the thesis",
      "structure": "The Data -> So What? (Insight 1) -> So What? (Insight 2) -> So What? (The Action)",
      "confidence": 0.7,
      "description": "Chain insights together, each answering 'so what?' until you reach the actionable conclusion"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}