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In this video tutorial, John demonstrates how to split date and time stored in the same Excel cell into two separate cells using the ROUNDOWN formula. He begins with a dataset that includes car make, model, and the date and time of sale. Simply formatting the column to exclude time is insufficient, as it doesn't change the underlying data, which can lead to issues when categorizing or performing lookups. John emphasizes the importance of separating date and time for better data management and shows viewers the process of extracting the date and time into distinct columns for improved functionality.