Trian Partners Activist Presentation Deck
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Separation Is a Means to the End, To Improve Performance
▪ Trian's primary focus is helping companies achieve operational turnarounds. In many
successful investments, Trian has seen that a separation of companies' businesses
improves operating performance. Trian believes separation is a "means to an end," the
"end" being:
Increased focus
Improved organic growth
Faster decision making; less bureaucracy
Reduced complexity
Better capital allocation
Enhanced strategic optionality
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Ability to align compensation design
Greater accountability (directly to shareholders)
Greater transparency
Elimination of "lowest common denominator" trading dynamic
A common perception exists that separations increase overall costs through duplication of
certain functions. Our experience is that improved operational performance dwarfs any such
increase in costs. On average, Trian's portfolio companies have averaged 550 bps of EBIT
margin expansion from separation to today(¹)
We believe the factors outlined above are the reasons that companies that engage in a
separation tend to outperform the broader market, with the Bloomberg U.S. Spin-Off Index
outperforming the S&P 500 over both short and long-term time horizons(²)
See page 40 for additional information.
See page 41 for additional information.
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