{
  "docId": "019dd923-622c-750b-8b9b-c1ba6b225076",
  "docSlug": "03a523e87675",
  "documentTitle": "Multiple (portfolio-level LP update: MDLZ, APD, ZTS, QSR, CP, HHC, VRX, PAH, NOMD, HLF short)",
  "authorId": "01_Pershing_Square",
  "authorName": "Pershing Square",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "activist_investor",
  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2016-04-26 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 18,
  "pageCount": 82,
  "prevPage": 17,
  "nextPage": 19,
  "slideType": "kpi_overview",
  "function": "quantify_opportunity",
  "density": "dense",
  "nDataPoints": 6,
  "notes": "The slide uses a table to bridge the gap between asset utilization and margin impact.",
  "elementsJson": [
    "headline_text",
    "callout_box",
    "bullet_list",
    "kpi_table",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b9b-c1ba6b225076/18",
  "deckHref": "/decks/019dd923-622c-750b-8b9b-c1ba6b225076",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b9b-c1ba6b225076.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b9b-c1ba6b225076#slide-18",
  "components": [
    {
      "bbox": {
        "h": 0.09,
        "w": 0.86,
        "x": 0.07,
        "y": 0.18
      },
      "kind": "callout",
      "text": "Mondelez has invested ~$1.5 billion to upgrade its manufacturing base, which should expand gross margins by ~250 bps by 2018",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "1063a7d1-0bcd-480c-b7d4-c1b5b18e7e91",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.82,
        "x": 0.09,
        "y": 0.31
      },
      "kind": "list",
      "text": "We are looking forward to substantial increases in gross margins increase as the new Salinas, Mexico facility ramps up\nWe believe the potential for long-term gross margin expansion is strong",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "e25d2341-e070-4870-b91e-31e238143fdc",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "gross margin: 250 bps",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd952-e6e9-749a-ba8e-76186c856d7c",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.88,
        "x": 0.06,
        "y": 0.91
      },
      "kind": "source-note",
      "text": "Source: Management commentary, Pershing Square estimates.\n(1) Based on management commentary during 2015 Back to School breakout session that advantaged assets provide a gross margin uplift of between 400-1,000 bps.",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "117da53d-b4f3-453d-a898-9ef34a2b0ddf",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.29,
        "w": 0.66,
        "x": 0.17,
        "y": 0.5
      },
      "kind": "table",
      "text": "Gross Margin Impact of Advantaged Assets\n% of Power Brands on Advantaged Assets - 2018 ~70%\n% of Power Brands on Advantaged Assets - 2015 ~25%\nPower Brands as % of Total Sales in 2018 ~70%\n% of Sales Moved to Advantaged Assets 32%\nAdvantaged Assets Margin Uplift(1) 8%\nMargin Increase from Move to Advantaged Assets 2.5%",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "cd4446d1-b879-4897-958f-b3f1a62a6376",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.92,
        "x": 0.04,
        "y": 0.08
      },
      "kind": "title",
      "text": "Gross Margin Opportunity: Advantaged Assets",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "d0a3db7d-633d-4931-ae8e-737fcc4457c9",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [
    {
      "name": "Before-After-Bridge",
      "slug": "before-after-bridge",
      "agent": "Storyteller",
      "layer": "slide",
      "matchId": "f13e54d3-fbe1-464e-af12-74ae289754c8",
      "evidence": "Gross Margin Opportunity: Advantaged Assets",
      "confidence": 0.5
    }
  ],
  "frameworks": [],
  "arcBeats": [
    {
      "to": 20,
      "from": 16,
      "beatId": "1b56c984-02d1-4ace-9c7e-88c5f413a822",
      "arcName": "The Consultant's Gambit",
      "arcSlug": "consultants-gambit",
      "beatName": "Problem & Complication",
      "beatSlug": "consultants-gambit-problem-complication",
      "evidence": "The presentation discusses challenges faced by portfolio companies, such as Mondelez's high G&A and Valeant's decline",
      "position": 1,
      "confidence": 0.8,
      "parentBeatName": "Complication",
      "parentBeatSlug": "complication"
    },
    {
      "to": 25,
      "from": 18,
      "beatId": "693c829c-9893-4b47-8718-b69e36a0f5a6",
      "arcName": "The Consultant's Gambit",
      "arcSlug": "consultants-gambit",
      "beatName": "Evidence & Proof",
      "beatSlug": "consultants-gambit-evidence-proof",
      "evidence": "The presentation provides data and examples of successful investments, such as Heinz's expanded global gross margins",
      "position": 2,
      "confidence": 0.8,
      "parentBeatName": "Evidence",
      "parentBeatSlug": "evidence"
    }
  ],
  "loops": [
    {
      "to": 21,
      "from": 16,
      "name": "Cost Of Inaction",
      "slug": "27-cost-of-inaction",
      "bestFor": "Urgent budget requests, compliance, risk mitigation",
      "matchId": "fc0ae90d-32bd-44e4-b803-74cfbeed0ee4",
      "evidence": "The presentation highlights the potential benefits of implementing 3G's ZBB approach at Mondelez",
      "position": 0,
      "objective": "What are the consequences of not taking action to improve profitability?",
      "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": 25,
      "from": 18,
      "name": "Before After",
      "slug": "21-before-after",
      "bestFor": "Product demos, process improvements, ROI justification",
      "matchId": "97c2c704-495e-4d46-9b3d-260b0012b18e",
      "evidence": "The presentation provides examples of successful investments, such as Heinz's expanded global gross margins",
      "position": 1,
      "objective": "How can we improve the profitability of portfolio companies?",
      "structure": "The Old Way (Pain) -> The Moment of Change -> The New Way (Glory) -> The Measurable Delta",
      "confidence": 0.7,
      "description": "Show the dramatic contrast between the old way and the new way through side-by-side comparison"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}