{
  "docId": "019dd923-622b-71dc-a6db-684f41522056",
  "docSlug": "fa1808c5359c",
  "documentTitle": "Ferguson plc (FERG)",
  "authorId": "06_Trian_Partners",
  "authorName": "Brian Baldwin",
  "documentKindSlug": "conference-presentation",
  "documentKindLabel": "Conference presentation",
  "sourceTypeSlug": "activist_investor",
  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2019-11-14 00:00:00",
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  "pageNumber": 5,
  "pageCount": 23,
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  "density": "overcrowded",
  "nDataPoints": 8,
  "notes": "The slide uses a numbered list structure to present three core pillars of the investment thesis.",
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      "kind": "callout",
      "text": "We Believe Ferguson is Mispriced as a UK-Listed Equity as 100% of its EBITDA Will Be from North America Following the UK Business De-Merger",
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      "kind": "list",
      "text": "3. We Believe Ferguson is Mispriced as a UK-Listed Equity as 100% of its EBITDA Will Be from North America Following the UK Business De-Merger\n- Leading specialty distributors in the US trade at 17.2x EBITDA versus Ferguson at 10.4x EBITDA",
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      "kind": "list",
      "text": "1. Attractive North American Business\n- Commercial and residential trade customers value convenience and availability over price\n- Branch-driven business: ~80% of sales originated or distributed from a Ferguson branch\n- ~75% of blended branch business is repair, maintenance, and improvement oriented",
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      "kind": "list",
      "text": "2. Scale = Virtuous Cycle\n- Ferguson is #1 player in highly fragmented North American market\n- Scale advantages driven by vendor rebates; private label; DC network\n- Ferguson has grown US organic revenue at a ~7.5% CAGR since 2014",
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      "kind": "metric",
      "text": "EBITDA multiple: 17.2x",
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      "toolSlug": "quantification",
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      },
      "kind": "source-note",
      "text": "Source: Company filings, investor presentations, FactSet. (1) According to Ferguson management. (2) Subject to shareholder approval.",
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      "kind": "title",
      "text": "Trian's Investment Thesis",
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      "evidence": "Scale = Virtuous Cycle",
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      "arcName": "Problem-Agitate-Solution",
      "arcSlug": "problem-agitate-solution",
      "beatName": "Problem (Identify pain)",
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      "evidence": "The presentation identifies Ferguson's undervaluation as the problem.",
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      "confidence": 0.8,
      "parentBeatName": "Complication",
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      "name": "Cost Of Inaction",
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      "evidence": "The presentation implies that there are significant benefits for investors if they act on the opportunity to re-evaluate Ferguson's stock value.",
      "position": 0,
      "objective": "Highlight the cost of inaction for investors if Ferguson's stock continues to be undervalued.",
      "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point",
      "confidence": 0.7,
      "description": "Quantify what happens if the audience does nothing"
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      "slug": "11-golden-circle",
      "bestFor": "Visionary leadership, brand positioning, mission statements",
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      "evidence": "The presentation uses a golden circle approach to explain the why, how, and what of Ferguson's business and investment potential.",
      "position": 1,
      "objective": "Explain why Ferguson's business model and performance make it an attractive investment opportunity.",
      "structure": "The Why (Belief) -> The How (Process) -> The What (Result)",
      "confidence": 0.6,
      "description": "Invert the typical pitch by starting with why you exist, rather than what you do"
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