{ "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": 136, "pageCount": 336, "prevPage": 135, "nextPage": 137, "slideType": "ceo_quote", "function": "cite_precedent", "density": "dense", "nDataPoints": 0, "notes": "The slide uses a 'virtuous circle' narrative to connect cost-focus, vertical integration, and market share.", "elementsJson": [ "headline_text", "callout_box", "quote_block", "process_diagram", "footnote" ], "metadataConfidence": 0.95, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9c-571191cc7adb/136", "deckHref": "/decks/019dd923-622c-750b-8b9c-571191cc7adb", "deckJsonHref": "/decks/019dd923-622c-750b-8b9c-571191cc7adb.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9c-571191cc7adb#slide-136", "components": [ { "bbox": { "h": 0.12, "w": 0.38, "x": 0.58, "y": 0.03 }, "kind": "callout", "text": "Arconic doesn't get it. They describe PCC's cost-focus as coming at the expense of growth. This is a critical mistake. PCC grew because of, not in spite of, its cost-focus", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "2a67f205-6a60-45fc-8e1e-595cbbbd1633", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.38, "x": 0.58, "y": 0.34 }, "kind": "list", "text": "4: Lower own costs to drive market share; 5: Use M&A to pursue growth markets or vertical integration; 6: Drive utilization of acquired company back into the PCC virtuous circle", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "d50a4bae-b60b-4145-83ec-bd6fe79f8d87", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.52, "w": 0.52, "x": 0.04, "y": 0.34 }, "kind": "paragraph", "text": "From there, we want to take that baseline cost structure and we want to go back into the market where we want to drive for market share... We're not looking for just sales growth. We're looking for key assets that give us an expanding portfolio...", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "6b8a7a33-8269-42e5-a1ee-09c9634c4d6b", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.92, "x": 0.04, "y": 0.16 }, "kind": "quote", "text": "High marks for management. CEO Mark Donegan has a manufacturing background... notable aspect of Mark Donegan's career was his ability to manage a manufacturing concern profitably through the aerospace decline in the 1990's.", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "a5b6be42-83ee-4d58-ad5f-56419421ba20", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.23, "w": 0.38, "x": 0.58, "y": 0.63 }, "kind": "quote", "text": "[PCC] generally leverages superb execution for market share gains through pricing strategies and long-term contracts. We believe [PCC] is one of the best operators in our space...", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "a9008e3a-3796-4c54-9aea-34e7933f6f63", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "\"High marks for management. CEO Mark Donegan has a manufacturing background and graduated from the GE manufacturing management program in 1979, two years prior to Jack Welch becoming CEO. His chief success prior to taking the reins at [PCC] was at the helm of Wyman-Gordon, a [PCC] subsidiary where he led the business to historically high operating margins and growth. We think the most notable aspect of Mark Donegan’s career was his ability to manage a manufacturing concern profitably through the aerospace decline in the 1990’s.\" — Goldman Sachs, October 10, 2007; \"From there, we want to take that baseline cost structure and we want to go back into the market where we want to drive for market share. We'll also take and add to that the ability we have on vertical integration... So market share is key and then we take that and drive that back across the assets that we created more capacity... We're not looking for just sales growth. We're looking for key assets that give us an expanding portfolio, attack our costs, long-term market share gain and growth.\" — Mark Donegan, December 3, 2014; \"[PCC] generally leverages superb execution for market share gains through pricing strategies and long-term contracts. We believe [PCC] is one of the best operators in our space, as operating margins are generally above peer companies.\" — Bank of America, June 4, 2014", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-0392-76bd-8efe-c2d225776ecc", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.45, "x": 0.04, "y": 0.03 }, "kind": "title", "text": "Coherent Strategy: PCC Operations Drive Growth", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "5580b60c-2561-4904-ae38-4f1663dd4f3e", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "virtuous-cycle", "slug": null, "matchId": "bd77462b-315f-4776-bcad-a38022c01f7f", "evidence": "Mention of 'PCC virtuous circle' in list item 6", "confidence": 0.9 } ], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }