{
  "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": 87,
  "pageCount": 336,
  "prevPage": 86,
  "nextPage": 88,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "overcrowded",
  "nDataPoints": 6,
  "notes": "Uses a side-by-side comparison of tables and charts to highlight the discrepancy in historical margin reporting.",
  "elementsJson": [
    "headline_text",
    "bullet_list",
    "data_table",
    "bar_chart_vertical",
    "callout_box",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b9c-571191cc7adb/87",
  "deckHref": "/decks/019dd923-622c-750b-8b9c-571191cc7adb",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b9c-571191cc7adb.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b9c-571191cc7adb#slide-87",
  "components": [
    {
      "bbox": {
        "h": 0.1,
        "w": 0.45,
        "x": 0.04,
        "y": 0.85
      },
      "kind": "callout",
      "text": "As of October 2016, management was still reporting numbers consistent with historical disclosure",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "b5c641ee-6949-435a-afe2-ad91367173e8",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.1,
        "w": 0.45,
        "x": 0.52,
        "y": 0.85
      },
      "kind": "callout",
      "text": "However, in March 2017, in an apparent attempt to fabricate a compelling margin expansion story, the Company suddenly began adding back discontinued operations to its historical segment disclosure",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "ce0812c3-6b7f-47e5-a3d1-dbf74c53dfc7",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "callout",
      "text": "How did this happen? Simple. By revising historical disclosure to include discontinued operations",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-0392-76bd-8ef8-adce54ad552d",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.25,
        "w": 0.45,
        "x": 0.52,
        "y": 0.5
      },
      "kind": "chart",
      "text": "Arconic March 27, 2017 Investor Presentation: Updated Management Spin chart showing 2008 margin at 12.8% and 2016 at 20.9%.",
      "attrs": null,
      "subkind": "bar-vertical",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "6928b8e6-16b6-4507-b058-083e862dba9d",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.2,
        "w": 0.9,
        "x": 0.04,
        "y": 0.25
      },
      "kind": "list",
      "text": "During its October 2016 Investor Roadshow, the Company reported 2008 EBITDA margins were 19.2% and expanded to 20.8% in 2015. Now, under the bright lights of a proxy contest, the Company represents that margins have increased from 12.8% in 2008 to 20.8% in 2015. How did this happen? Simple. By revising historical disclosure to include discontinued operations.",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "8ef6d4e1-2683-4fdd-9c7c-2e733e873892",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "EBITDA margin: 20.9%",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-0392-76bd-8ef8-b3a0376d4b5d",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.9,
        "x": 0.04,
        "y": 0.15
      },
      "kind": "paragraph",
      "text": "At EPS, the Company has massaged the figures in a disingenuous attempt to demonstrate improved operating performance:",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "67d16083-6bbf-449e-af6c-dc1d7dfab94b",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.45,
        "x": 0.52,
        "y": 0.75
      },
      "kind": "source-note",
      "text": "1) Based on 2016 revenue. 2) Represents adjusted EBITDA margins. 3) Including the wire harness and electrical distribution business which was sold in 2009; excluding this business the margin increase is 170bps. See Appendix for Reconciliations.",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "a9d901aa-6904-48b0-aa18-90b6de3aa70b",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.35,
        "w": 0.45,
        "x": 0.04,
        "y": 0.5
      },
      "kind": "table",
      "text": "Arconic October 27, 2016 Investor Presentation: Past Disclosure table showing 2008 margin at 19.2% and 2015 at 20.8%.",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "1e1dea40-333e-4183-b5f0-d2bb7a9df3d5",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.6,
        "x": 0.04,
        "y": 0.04
      },
      "kind": "title",
      "text": "EPS Results: Changing Disclosures to Revise History",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "f70c5773-7519-4afa-8231-4252a07eca8e",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "07a8b6a1-7279-49e7-80fa-b80c6c30e7a8",
      "evidence": "The slide explicitly accuses the company of 'massaging figures' and 'fabricating' a story to mislead investors.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}