{ "docId": "019dd923-622c-750b-8b9c-571191cc7adb", "docSlug": "48a8cbf2f1d7", "documentTitle": "Arconic Inc. (ARNC)", "authorId": "02_Elliott_Management", "authorName": "Elliott", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "activist_investor", "sourceTypeLabel": "Activist investor", "presentationDate": "2017-04-11 00:00:00", "orientation": "landscape", "aspectRatio": 1.3333334, "pageNumber": 102, "pageCount": 336, "prevPage": 101, "nextPage": 103, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "overcrowded", "nDataPoints": 0, "notes": "Uses a 'villain' framing technique to highlight management's deflection of responsibility.", "elementsJson": [ "headline_text", "callout_box", "quote_block", "headshot", "photo" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9c-571191cc7adb/102", "deckHref": "/decks/019dd923-622c-750b-8b9c-571191cc7adb", "deckJsonHref": "/decks/019dd923-622c-750b-8b9c-571191cc7adb.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9c-571191cc7adb#slide-102", "components": [ { "bbox": { "h": 0.08, "w": 0.44, "x": 0.53, "y": 0.04 }, "kind": "callout", "text": "To the extent blaming the old private equity owner falls short, management would like to blame industry issues rather than accept responsibility", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "bc7200a2-2bf5-44cc-bf7e-65b2239cf0e8", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "callout", "text": "To the extent blaming the old private PE owner falls short, management would like to blame industry issues rather than accept responsibility", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-0392-76bd-8efb-582ee33147f5", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.27, "w": 0.14, "x": 0.83, "y": 0.21 }, "kind": "image", "text": null, "attrs": null, "subkind": "headshot", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "650052b5-da5f-4b98-a232-b66be1a8b64e", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.04, "w": 0.92, "x": 0.04, "y": 0.72 }, "kind": "paragraph", "text": "Even when belatedly (and under pressure) seeming to take responsibility, Dr. Kleinfeld tries to shift the blame:", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "1bf7b528-6a9f-4907-bf6d-12e34e061a17", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.11, "w": 0.83, "x": 0.14, "y": 0.56 }, "kind": "quote", "text": "Our isothermal and hot-die forge presses operated at or near record levels... where others might be stumbling a little bit as they maybe start to ramp up, we're there to support the customer....", "attrs": null, "subkind": "pull-quote", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "046b9b0a-d425-4342-ab61-d6751a13c530", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.11, "w": 0.78, "x": 0.04, "y": 0.37 }, "kind": "quote", "text": "So, the aero engine side, typically, in the past have always shown that there are these ramp up issues with the supply chain.", "attrs": null, "subkind": "pull-quote", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "0fcbb60c-bbe9-4dd8-88a5-84aeaaba312e", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.11, "w": 0.78, "x": 0.04, "y": 0.21 }, "kind": "quote", "text": "But with the engine -- the new engines ramping up... we're going through the near-term teething issues here of the aero engine industry.", "attrs": null, "subkind": "pull-quote", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "5ac1ce0b-1153-46f6-a188-aa29911bb31b", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.09, "w": 0.92, "x": 0.04, "y": 0.76 }, "kind": "quote", "text": "The 2016 results were in line with what we last told you... We could have executed better and we recognize it and we own it...", "attrs": null, "subkind": "pull-quote", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "e4b3f623-3f76-482d-be5c-5131ad7320a6", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "\"But with the engine -- the new engines ramping up and the high level of technical sophistication, there's a lot of increased product introduction costs for qualification of the component. And at the same time, the legacy engine spares and replacements remain strong. So here, we have a different situation. We have very, very strong demand. At the same time, the ramp-up is accelerating, and we're going through the near-term teething issues here of the aero engine industry.\" — Dr. Klaus Kleinfeld, Alcoa Q3 Earnings Call, October 11, 2016; \"So, the aero engine side, typically, in the past have always shown that there are these ramp up issues with the supply chain. In this case, we are seeing them again and we are seeing them probably a little bit more than in normal environment, very much driven by the level of technical sophistication and combined with the relatively long supply chain.\" — Dr. Klaus Kleinfeld, Arconic Roadshow, October 28, 2016; \"Our isothermal and hot-die forge presses operated at or near record levels during the third quarter in support of growing next-generation engine builds. But on the forgings side both the hot-die and the isothermal, I mean, we're really very good at making those parts, quite frankly... we're good at it and our customers know that and where others might be stumbling a little bit as they maybe start to ramp up, we're there to support the customer....\" — Richard J. Harshman, CEO of Allegheny Technologies, ATI Q3 Earnings Call, October 25, 2016; \"The 2016 results were in line with what we last told you, however disappointing. Overall, we got it wrong on the non-aero side and our outlook substantially reduced for this market. On the aero side we are delayed but we will get there. We could have executed better and we recognize it and we own it and we are working diligently to improve the performance of this important asset.\" — Dr. Klaus Kleinfeld, January 31, 2017", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-0392-76bd-8efb-5ef4862e91ce", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.04, "w": 0.92, "x": 0.04, "y": 0.9 }, "kind": "title", "text": "Where does the buck stop at Arconic? 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