{
  "docId": "019de071-041e-72bc-a4a4-b0331dc0dafb",
  "docSlug": "8f2bf126f524c30adef79c8d33966ec8",
  "documentTitle": "Engine No. 1 | Activist Presentation Deck | 83 slides",
  "authorId": "engine-no-1",
  "authorName": "Engine No. 1",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "activist_investor",
  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2021-05-01 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 27,
  "pageCount": 83,
  "prevPage": 26,
  "nextPage": 28,
  "slideType": "thesis_headline",
  "function": "diagnose_problem",
  "density": "dense",
  "nDataPoints": 3,
  "notes": "Uses a quote from the WSJ to frame the valuation divergence between traditional energy and clean energy.",
  "elementsJson": null,
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019de071-041e-72bc-a4a4-b0331dc0dafb/27",
  "deckHref": "/decks/019de071-041e-72bc-a4a4-b0331dc0dafb",
  "deckJsonHref": "/decks/019de071-041e-72bc-a4a4-b0331dc0dafb.json",
  "deckAnchorHref": "/decks/019de071-041e-72bc-a4a4-b0331dc0dafb#slide-27",
  "components": [
    {
      "bbox": {
        "h": 0.72,
        "w": 0.53,
        "x": 0.43,
        "y": 0.16
      },
      "kind": "chart",
      "text": "P/B Multiples",
      "attrs": null,
      "subkind": "line",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "3dc26d51-2f49-4b2a-9332-03a40272733e",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.25,
        "w": 0.38,
        "x": 0.04,
        "y": 0.17
      },
      "kind": "list",
      "text": "The market ascribes a higher growth multiple to companies positioned to capture value in a decarbonizing world, and a declining terminal value and increased cost of capital to ExxonMobil and peers who are poorly positioned for the future",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "266d63fd-0062-42cd-984a-92fbf1e4fa1a",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.38,
        "x": 0.04,
        "y": 0.67
      },
      "kind": "list",
      "text": "While the cyclical nature of demand continues to create short-term investment opportunities, the longer-term risk is clear",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "6af554e9-53fd-4037-aff5-0cc1b0d6ca05",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.18,
        "w": 0.38,
        "x": 0.04,
        "y": 0.45
      },
      "kind": "list",
      "text": "Major decisions at the Company – from capital allocation to diversification to compensation – are still driven by a long-term view the market is increasingly rejecting",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "80f144b4-62a6-4c50-aac0-88db7982ec8c",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.43,
        "x": 0.48,
        "y": 0.22
      },
      "kind": "quote",
      "text": "“Tesla is a bet on the long term and Exxon is a bet on the short term.” – Wall Street Journal (March 9, 2021)",
      "attrs": null,
      "subkind": "pull-quote",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "bff3bf89-697c-467c-b975-1c19b83a7581",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.55,
        "x": 0.04,
        "y": 0.94
      },
      "kind": "source-note",
      "text": "Quote Source: James Mackintosh (March 9, 2021). Tesla v. Exxon is the Perfect Recovery Bet. The Wall Street Journal. Source: Bloomberg. P/B ratio is based on 12 month forward book value estimates compiled by Bloomberg.",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "a924b976-9a00-4ba7-97a8-26b13afa4293",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.92,
        "x": 0.04,
        "y": 0.05
      },
      "kind": "title",
      "text": "Not just a climate issue – a valuation issue for all long-term investors",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "be46d38c-2241-418a-b4b6-2d180d746044",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "comparison_frame",
      "slug": null,
      "matchId": "3afe1091-b1c8-4c10-8e50-d993e1784b42",
      "evidence": "Contrasts ExxonMobil valuation against Clean Energy index to highlight investment risk.",
      "confidence": 0.8
    }
  ],
  "arcBeats": [
    {
      "to": 40,
      "from": 19,
      "beatId": "3446e6dd-ae72-4495-91c6-c00f60f5c4be",
      "arcName": "Problem-Agitate-Solution",
      "arcSlug": "problem-agitate-solution",
      "beatName": "Agitate (Make it worse)",
      "beatSlug": "problem-agitate-solution-agitate-make-it-worse",
      "evidence": "The document highlights the consequences of ExxonMobil's current strategy, including value destruction and lack of progress on emissions reduction.",
      "position": 1,
      "confidence": 0.9,
      "parentBeatName": "Development",
      "parentBeatSlug": "development"
    }
  ],
  "loops": [
    {
      "to": 40,
      "from": 25,
      "name": "Iceberg",
      "slug": "10-iceberg",
      "bestFor": "Consulting, complex problem solving, organizational change",
      "matchId": "03e2ddc8-7171-4302-a7e4-062dbc767b1e",
      "evidence": "The document highlights the underlying issues with ExxonMobil's strategy and capital allocation, including lack of discipline and poor returns.",
      "position": 1,
      "objective": "Reveal the underlying issues with ExxonMobil's strategy and capital allocation",
      "structure": "The Symptom (Visible) -> The System (Hidden) -> The Root Cause",
      "confidence": 0.8,
      "description": "Reveal that the visible problem is merely a symptom of a deeper root cause"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}