{
  "docId": "019dd923-622c-750b-8b9a-0f4bec37392f",
  "docSlug": "f982379e2e48",
  "documentTitle": "Lasertec Corporation (6920)",
  "authorId": "58_Scorpion_Capital",
  "authorName": "Scorpion Capital",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2024-06-05 00:00:00",
  "orientation": "landscape",
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  "pageNumber": 73,
  "pageCount": 334,
  "prevPage": 72,
  "nextPage": 74,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "dense",
  "nDataPoints": 30,
  "notes": "The slide uses the 'fraud-exposure' framework by linking financial metrics to potential malfeasance.",
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  "slideHref": "/slides/019dd923-622c-750b-8b9a-0f4bec37392f/73",
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  "components": [
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      "kind": "callout",
      "text": "A ratio consistently below 1 indicates that earnings are suspect.",
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    {
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      "kind": "metric",
      "text": "Operating Cash Flow to Net Income: 28%",
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      "componentId": "019dd953-78b6-764f-bc7c-2195b465ffe8",
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      "kind": "paragraph",
      "text": "This is a typical progression in frauds with a high-flying stock and pressure to show rising earnings, which requires the accounting fraud to get larger every period until it becomes unsustainable and collapses. Over time, the ratio of operating cash flow to net income should exceed 1, due to the fact that noncash charges such as depreciation are deducted from net income but are not an operating cash outflow. A ratio consistently below 1 indicates that earnings are suspect. In the 5 year period preceding its ACTIS EUV line (2014-2018), its cash conversion was 90% - versus only 16% and 52% in 2022 and 2023 using a rolling average. In 3 of the last 4 quarters, the conversion was 26-30% - indicating that 70% of reported net income is just accrual estimates and assumptions in a spreadsheet versus cash.",
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      "kind": "source-note",
      "text": "Source: Scorpion Capital analysis and estimates; Capital IQ data",
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      "kind": "table",
      "text": "Lasertec cash flow conversion over time",
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      "kind": "title",
      "text": "Lasertec’s cash conversion has dropped sharply over time, particularly over the last two years – collapsing even further in the last two quarters (30% Dec’23 and 28% Mar’24), in addition to exhibiting troubling volatility.",
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  "metrics": [],
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  "frameworks": [
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      "evidence": "The slide explicitly links financial volatility to a 'typical progression in frauds'.",
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      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "Expose Contradiction",
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      "evidence": "The deck presents numerous slides exposing alleged contradictions and flaws in Lasertec's products and financials.",
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  "loops": [
    {
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      "name": "Cost Of Inaction",
      "slug": "27-cost-of-inaction",
      "bestFor": "Urgent budget requests, compliance, risk mitigation",
      "matchId": "6e61ad7c-bb6d-4d17-b94f-80ca98ebf1a8",
      "evidence": "The deck presents a series of slides highlighting the potential risks and consequences of not acting on Lasertec's alleged fraud.",
      "position": 1,
      "objective": "To highlight the risks of not acting on Lasertec's alleged fraud",
      "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"
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