{
  "docId": "019de06f-e6aa-7292-b2ff-5ed256dde284",
  "docSlug": "720045051a6adb83f61392726ac21f71",
  "documentTitle": "Trian Partners | Activist Presentation Deck | 23 slides",
  "authorId": "trian-partners",
  "authorName": "Trian Partners",
  "documentKindSlug": "conference-presentation",
  "documentKindLabel": "Conference presentation",
  "sourceTypeSlug": "activist_investor",
  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2019-11-01 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 5,
  "pageCount": 23,
  "prevPage": 4,
  "nextPage": 6,
  "slideType": "thesis_headline",
  "function": "present_solution",
  "density": "dense",
  "nDataPoints": 8,
  "notes": "The slide uses a numbered list structure to present the core pillars of an activist investor's thesis.",
  "elementsJson": null,
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019de06f-e6aa-7292-b2ff-5ed256dde284/5",
  "deckHref": "/decks/019de06f-e6aa-7292-b2ff-5ed256dde284",
  "deckJsonHref": "/decks/019de06f-e6aa-7292-b2ff-5ed256dde284.json",
  "deckAnchorHref": "/decks/019de06f-e6aa-7292-b2ff-5ed256dde284#slide-5",
  "components": [
    {
      "bbox": {
        "h": 0.35,
        "w": 0.9,
        "x": 0.05,
        "y": 0.4
      },
      "kind": "list",
      "text": "2. Scale = Virtuous Cycle\n- Ferguson is #1 player in highly fragmented North American market\n- We expect Ferguson to be the prudent consolidator (completed 15 acquisitions last year)\n- Scale advantages driven by vendor rebates; private label; DC network; product availability; local market route density\n- Provides ability to reinvest in growth initiatives such as e-commerce (25% of business)\n- Ferguson has grown US organic revenue at a ~7.5% CAGR since 2014 – outgrowing the market 300-400 bps organically(1) while increasing margins and return on capital\n- We believe Ferguson can significantly enhance market share over time",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "1cc186a6-8480-44c9-902b-5a6b0dcf193f",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.25,
        "w": 0.9,
        "x": 0.05,
        "y": 0.14
      },
      "kind": "list",
      "text": "1. Attractive North American Business\n- Commercial and residential trade customers value convenience and availability over price...labor costs more than product to end user\n- Branch-driven business: ~80% of sales originated or distributed from a Ferguson branch or showroom (Amazon-resilient business)\n- ~75% of blended branch business is repair, maintenance, and improvement oriented (less cyclical)",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "39a8e837-fc8d-45b8-8e7f-f9c699a23e7f",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.9,
        "x": 0.05,
        "y": 0.78
      },
      "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(2)\n- Leading specialty distributors in the US trade at 17.2x EBITDA versus Ferguson at 10.4x EBITDA",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "66be923a-67d6-46da-81e8-6e860e14967c",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.8,
        "x": 0.05,
        "y": 0.95
      },
      "kind": "source-note",
      "text": "Source: Company filings, investor presentations, FactSet. (1) According to Ferguson management. Data sourced from investor presentation dated October 2, 2018. (2) Subject to shareholder approval.",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "d8635bed-1968-458d-8c40-3d00b5da7b86",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.4,
        "x": 0.05,
        "y": 0.07
      },
      "kind": "title",
      "text": "Trian's Investment Thesis",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "82f3c96e-5c0f-4afc-9284-ca2fa6849f28",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "list-presentation",
      "slug": null,
      "matchId": "43e06f82-2505-451a-9c74-1b4edb48956c",
      "evidence": "The slide is structured as a numbered list of three core investment pillars.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [
    {
      "to": 7,
      "from": 4,
      "beatId": "5612c0c3-048e-4ec6-84da-1097e015582e",
      "arcName": "Problem-Agitate-Solution",
      "arcSlug": "problem-agitate-solution",
      "beatName": "Problem Identification",
      "beatSlug": "problem-agitate-solution-problem-identify-pain",
      "evidence": "Slides 4-7 identify Ferguson's situation and the problem of undervaluation.",
      "position": 1,
      "confidence": 0.9,
      "parentBeatName": "Complication",
      "parentBeatSlug": "complication"
    }
  ],
  "loops": [
    {
      "to": 7,
      "from": 4,
      "name": "Cost Of Inaction",
      "slug": "27-cost-of-inaction",
      "bestFor": "Urgent budget requests, compliance, risk mitigation",
      "matchId": "401c203f-7a14-4abf-87c9-c66df4a6d814",
      "evidence": "The loop emphasizes the consequences of inaction on Ferguson's valuation.",
      "position": 0,
      "objective": "Highlight the cost of not addressing Ferguson's undervaluation",
      "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point",
      "confidence": 0.8,
      "description": "Quantify what happens if the audience does nothing"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}