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The video tutorial addresses how to extract a list or subset of data from a master sheet into separate sheets for various criteria like salespersons or products. It suggests using pivot tables rather than complicated array formulas, especially for automating updates when the master sheet changes. The tutorial reveals a lesser-known pivot table feature that automatically extracts source data into separate sheets. For users with Microsoft 365 or Excel 2021, it also covers the use of the filter function. It begins with formatting example order data by salesperson into a table, demonstrating the advantages of this formatting method.