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  "documentTitle": "Arconic Inc. (ARNC)",
  "authorId": "02_Elliott_Management",
  "authorName": "Elliott",
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  "presentationDate": "2017-04-11 00:00:00",
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  "notes": "The slide uses red dashed boxes to highlight specific points of contention and logical fallacies in management's narrative.",
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      "kind": "callout",
      "text": "This does not add up. Management has said they will increase margins by 200 bps. But 159 bps alone come from exiting the negative margin Tennessee packaging business not new EBITDA",
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      "kind": "callout",
      "text": "Arconic is only able to arrive at a higher Top 10 weighted average by including a single outlier. Excluding that one outlier, Arconic's costs are ~$50/MT higher than the Top 10 weighted average",
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      "text": "Brazing Sheet may be Arconic's strongest product category – but even here, management includes a single large outlier that skews the Top 10 weighted average by ~$90/MT",
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      "text": "Highly Relevant. Arconic's management has repeatedly made the argument that can sheet profitability had so eroded that it was forced to exit the business. In contrast, our argument has been that Arconic's cost position relative to peers has worsened over and above any industry dynamics. Management's own data supports this contention. Further, Arconic retains significant international can body stock business in its Qinhuangdao and Samara facilities. Comparing those plants to their relevant geographic competitors suggests that Arconic has a ~$15 to ~$30 million cost opportunity",
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      "text": "There are two scale players in North American automotive sheet. Comparing to the Top 10 weighted average includes a significant number of sub-scale European producers. Comparing to the North American peer, Arconic's costs are significantly higher. Benchmarking more appropriately shows that there is between $100-$120/MT which suggests a potential ~$20-$30 million opportunity on current production",
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      "text": "Only Arconic's management would suggest there is 'Little to No Cost Opportunity' when their own math demonstrates that Arconic (a scale player) is at best in-line against 'Top 10 w/Avg' which in most of these categories includes a significant number of small sub-scale producers",
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      "text": "Only Arconic's management would suggest there is “Little to No Cost Opportunity” when their own math demonstrates that Arconic (a scale player) is at best in-line against “Top 10 w/Avg” which in most of these categories includes a significant number of small sub-scale producers.",
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      "text": "Total Cost ($/ton): $100-$120/MT",
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      "text": "CRU benchmarking data table comparing Arconic costs vs Top 10 weighted average across 5 product categories.",
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      "kind": "title",
      "text": "GRP Results: Management's Numbers Are Misleading",
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