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  "documentTitle": "E.I. du Pont de Nemours and Company (DuPont) (DD)",
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  "authorName": "Nelson Peltz",
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  "presentationDate": "2015-04-21 00:00:00",
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  "notes": "Includes a callout box regarding potential upside from excess costs.",
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      "text": "Trian believes the implied value calculation could have additional upside based on our view of $2-4bn of excess costs",
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      "text": "Note: For more detail regarding this analysis, see “Trian Implied Target Value Analysis For DuPont Stock”, filed with the Securities and Exchange Commission (SEC) on April 17, 2015. (1) The Open Letter to the DuPont Board (Trian Summary White Paper) dated September 16, 2014 is available at www.DuPontCanBeGreat.com. This is not meant to be, nor is it, a prediction of the future trading price or market value of DuPont stock. There can be no assurance or guarantee with respect to the prices at which DuPont stock will trade, and such stock may not trade at prices that may be implied herein. (2) EBITDA is defined as earnings before interest, taxes, depreciation and amortization. Assumes 6% increase in the NTM EV/EBITDA multiple based on DuPont’s consensus valuation as of September 2014. (3) Trian estimates that consolidated DuPont is burdened by $2-4bn of excess corporate costs. See pages 71 and 72 of Trian’s White Paper which was filed with the SEC on February 17, 2015 and is available at www.DuPontCanBeGreat.com. (4) See the Company’s Investor Presentation dated January 27, 2015.",
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      "text": "When Trian issued its Summary White Paper (September 2014), Trian arrived at an implied target value per share in excess of $120(1) by the end of 2017, a 21% internal rate of return (IRR) for shareholders holding DuPont stock during this period",
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      "text": "The Key Assumptions for Trian’s Analysis in its Summary White Paper were as follows: Valuation: 9.9x blended next twelve months (NTM) Enterprise Value (EV)/EBITDA multiple(2); Best-in-class operating performance: Revenue growth and margins in-line with peers and management long-term targets; Models 410bps of margin improvement from 2014-2018; If one assumes a ~30% flow-through on incremental revenue, the resulting cost savings implied by the model would be less than $1bn of cost savings(3); Prudent Leverage: 2x net debt/EBITDA across the businesses as a whole; maintain investment grade rating; Focus on Returns to Shareholders: Grow dividend at 10% compounded annual growth rate (CAGR); assuming all excess free cash flow returned to shareholders; Tax Rate: 33% tax rate (higher than the 22% expected by the Company in 2015(4)) across the business to provide flexibility with free cash flow",
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