{
  "docId": "019de06f-e6aa-7292-b2ff-5ed256dde284",
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  "documentTitle": "Trian Partners | Activist Presentation Deck | 23 slides",
  "authorId": "trian-partners",
  "authorName": "Trian Partners",
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  "sourceTypeSlug": "activist_investor",
  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2019-11-01 00:00:00",
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  "notes": "The slide provides a snapshot of the company's valuation, market share, and corporate structure.",
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      "kind": "image",
      "text": "FERGUSON",
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      "text": "Trian owns approximately 13.9mm shares of Ferguson plc (valued at £920mm / $1.2bn; ~6.1% of shares outstanding)(1)\nLeading North American specialty distributor of plumbing & HVAC (“blended branches”) and Waterworks / Fire & Fabrication\n#1 market share in North American blended branches (plumbing & HVAC) with a mid-to-high teens market share...no clear national rival\n#1 market share in North American Waterworks / Fire & Fabrication with low 20% market share... Core & Main is only large national competitor\nFerguson is predominantly a North American business (currently ~95% of EBITDA from North America)\n1,708 branches, 11 DC’s, and ~$20bn revenue in North America\nOn September 3, Ferguson announced that it intends to demerge its UK business(3); Kevin Murphy (US CEO) will become Group CEO on November 19; Board will consider most appropriate listing structure for Ferguson going forward",
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      "text": "Share Price(1): £66 ($85)\nMarket Cap: $19.4bn\nEV: $20.5bn\nValuation Metrics(2)\nCY 2020 EBITDA: $1.98bn\nEV/2020 EBITDA: 10.4x\nCY 2020 EPS: $5.29\nPrice / 2020 EPS: 16.1x\nNet Debt / LTM EBITDA: 0.7x",
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      "kind": "source-note",
      "text": "Source: Company filings, FactSet. Note: Throughout this presentation: “EV” is defined as enterprise value; “EBITDA” is defined as earnings before interest, taxes, depreciation and amortization; “P/E” is defined as price to earnings ratio; “North America” is defined as US and Canada; “HVAC” is defined as heating, ventilation and air conditioning; “ROIC” is defined as return on invested capital; “DC” is defined as distribution center; “CY” is defined as calendar year; “bps” is defined as basis points; “RMI” is defined as “repair, maintenance, and improvement”; and “MRO” is defined as maintenance, repair, and operations. (1) As of November 5, 2019. (2) Based on Wall Street research consensus estimates for calendar year 2019 as of November 5, 2019. (3) Subject to shareholder approval.",
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      "kind": "title",
      "text": "Ferguson Overview",
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      "evidence": "Slides 4-7 identify Ferguson's situation and the problem of undervaluation.",
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  "loops": [
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      "evidence": "The loop emphasizes the consequences of inaction on Ferguson's valuation.",
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