Pershing Square Activist Presentation Deck
Substantial Opportunity Ahead
While Agilent has delivered solid business performance over the last five
years, we believe there is substantial opportunity for further improvement
Significant Margin Expansion
Management is targeting 50 to 70bps of annual margin expansion over next few years
▪ We estimate >800bps margin opportunity based on best-in-class peer
▪ Agilent's increasing attach rates on higher margin service contracts and consumables
should be a strong embedded driver of margin expansion over time
Balance Sheet Optionality
▪ Underlevered balance sheet provides capital deployment flexibility
Net debt / EBITDA <1x vs peer average of ~3x
We believe Agilent's current valuation represents a discount to intrinsic value and does
not fully reflect the company's high-quality business model, increasing mix of recurring
revenue, strong long-term growth potential and significant margin expansion opportunity
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