{
  "docId": "019dd923-622c-750b-8b9c-5b8ee881ff95",
  "docSlug": "6f0a3b154a08",
  "documentTitle": "BHP Billiton (BHP)",
  "authorId": "02_Elliott_Management",
  "authorName": "Elliott",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "activist_investor",
  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2017-04-10 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.4444444,
  "pageNumber": 30,
  "pageCount": 39,
  "prevPage": 29,
  "nextPage": 31,
  "slideType": "propose_solution",
  "function": "propose_solution",
  "density": "dense",
  "nDataPoints": 4,
  "notes": "This is a continuation slide detailing the mechanics and rationale for a specific capital allocation strategy.",
  "elementsJson": [
    "headline_text",
    "bullet_list",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b9c-5b8ee881ff95/30",
  "deckHref": "/decks/019dd923-622c-750b-8b9c-5b8ee881ff95",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b9c-5b8ee881ff95.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b9c-5b8ee881ff95#slide-30",
  "components": [
    {
      "bbox": {
        "h": 0.05,
        "w": 0.9,
        "x": 0.05,
        "y": 0.18
      },
      "kind": "callout",
      "text": "A policy of consistent 14% discounted off-market share buybacks would be the most efficient mechanism to release excess cash flow to shareholders",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "d6ff7cf3-b4f3-49ee-b43c-37295d0b748c",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.25,
        "w": 0.85,
        "x": 0.1,
        "y": 0.25
      },
      "kind": "list",
      "text": "Combined with Step 1 and Step 2, such share buybacks would allow BHP to purchase shares at a discount (5.6% lower cost), have no incremental operational risk, and release 66% more franking credits.",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "71c198c5-327c-418b-b36a-64ec2424804c",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.85,
        "x": 0.1,
        "y": 0.5
      },
      "kind": "list",
      "text": "Plc's share price would need to be trading at least 25% below Ltd's share price for current buybacks to be as cheap as post-unification buybacks.",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "a75efd65-7f2b-43a9-885d-178e508cb3b5",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.85,
        "x": 0.1,
        "y": 0.72
      },
      "kind": "list",
      "text": "Management should incorporate these returns into BHP's Capital Allocation Framework as the key investment return threshold.",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "bb3613d7-4059-4634-acac-c752b046f4ba",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.1,
        "w": 0.85,
        "x": 0.1,
        "y": 0.6
      },
      "kind": "list",
      "text": "Without unification, buybacks result in trading value mismatch, profit/shareholder base misalignment, and inability to utilize franking credits.",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "be93e1f7-c08f-48fe-98dc-c7e4ae0623f7",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "discounted off-market share buybacks: 14%",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-0f1a-773e-97e1-bfac7f174950",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.1,
        "w": 0.9,
        "x": 0.05,
        "y": 0.85
      },
      "kind": "source-note",
      "text": "Sources: Broker research and Elliott estimates. 1. Assumes 14% discount... 2. Assumes 14% discount... 3. Assumes 60.3%/39.7% ratio...",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "dc793197-d250-43cb-8f57-1c603b22d758",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.1,
        "w": 0.9,
        "x": 0.05,
        "y": 0.05
      },
      "kind": "title",
      "text": "BHP's excess cash – returning it to shareholders via post-unification discounted off-market share buybacks (cont'd)",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "a05124c5-ebd7-4082-a5f6-7b30cdeaa66b",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "capital-allocation-framework",
      "slug": null,
      "matchId": "dfe99262-39fe-4797-af60-57147948992e",
      "evidence": "Management should incorporate the returns which are available from such discounted off-market share buybacks into BHP's Capital Allocation Framework",
      "confidence": 0.9
    }
  ],
  "arcBeats": [
    {
      "to": 32,
      "from": 26,
      "beatId": "693a23fd-00bd-4487-a373-8c2fbddccf93",
      "arcName": "The Consultant's Gambit",
      "arcSlug": "consultants-gambit",
      "beatName": "Evidence & Proof",
      "beatSlug": "consultants-gambit-evidence-proof",
      "evidence": "The document provides additional evidence and analyst comments to support the proposal.",
      "position": 3,
      "confidence": 0.8,
      "parentBeatName": "Evidence",
      "parentBeatSlug": "evidence"
    }
  ],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}