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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 a 'CEO quote contradiction' framework to undermine management's narrative.",
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      "text": "Management says that EPS can increase margins by 400 bps in 3-to-5 years. Given the volume leverage in this business, this is an extraordinarily undemanding target",
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      "text": "Arconic claims EPS has the potential to increase margins by 400 bps over the next 3-to-5 years. Management points to process optimization, productivity, material cost reduction, overhead and other cost reductions as key drivers. All of that is nonsense.",
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      "text": "EBITDA margin: 400 bps",
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      "kind": "quote",
      "text": "Analyst: \"We always talk about incremental margins with you.... You got all this operating leverage. How do we think about operating margin then?\" Mark Donegan (PCC CEO): \"And again they move, but I think that the range in which you should expect to see it move is somewhere between that 35% and 45%, 48%.\"",
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      "text": "Analyst: “We always talk about incremental margins with you.... You got all this operating leverage. How do we think about operating margin then?” Mark Donegan (PCC CEO): “And again they move, but I think that the range in which you should expect to see it move is somewhere between that 35% and 45%, 48%.” — December 3, 2014",
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      "text": "Incremental Margin Overall Margin Lift (bps) 30.0% 172 32.5% 220 35.0% 267 37.5% 314 40.0% 361 42.5% 408 45.0% 455",
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      "text": "EPS 2016A 2019P Chg. (bps) Revenue Existing $ 5,728 $ 5,728 Incremental 1,332 Total $ 5,728 $ 7,060 EBITDA Margin Existing 20.9% 20.9% Incremental 35.0% Total 20.9% 23.5% 267 EBITDA Existing $ 1,195 $ 1,195 Incremental 466 Total $ 1,661",
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      "kind": "title",
      "text": "Why won't management just admit it's volume leverage?",
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      "kind": "title",
      "text": "Volume Leverage: EPS Margin \"Goal\" Is Not Better Ops",
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