WEBVTT 1 00:00:11.200 --> 00:00:14.500 Hello and welcome to this second video, which is devoted to 2 00:00:14.500 --> 00:00:16.400 telecommunication Towers. 3 00:00:17.500 --> 00:00:20.500 In February 2021. I had devoted a 4 00:00:20.500 --> 00:00:23.300 film to the worldwide and American 5 00:00:23.300 --> 00:00:27.100 leader of this industry American Tower. I 6 00:00:26.100 --> 00:00:29.800 had compared American Tower was its 7 00:00:29.800 --> 00:00:32.900 main European competitor cell next fast 8 00:00:32.900 --> 00:00:35.800 growing competitor while questioning the 9 00:00:35.800 --> 00:00:38.600 strategy of Vodafone which considered 10 00:00:38.600 --> 00:00:43.200 at that time listing. It's subsidiary Vantage. 11 00:00:42.200 --> 00:00:45.800 It's portfolio of towers, but 12 00:00:45.800 --> 00:00:48.700 keeping the control of this subsidiary. 13 00:00:49.400 --> 00:00:52.300 All these questions led to explore the 14 00:00:52.300 --> 00:00:55.700 link between the value of towers and the stock 15 00:00:55.700 --> 00:00:58.600 market status of American Tower. 16 00:00:59.300 --> 00:01:02.900 But something happened quite recently which slightly 17 00:01:02.900 --> 00:01:06.000 changed the context the financial context with 18 00:01:05.500 --> 00:01:08.300 very significant consequences on the 19 00:01:08.300 --> 00:01:12.200 value of this category of assets. It's 20 00:01:11.200 --> 00:01:14.200 the objective of this vid cast to 21 00:01:14.200 --> 00:01:18.100 explore the financial process behind that in November 22 00:01:17.100 --> 00:01:20.300 2020 when for 23 00:01:20.300 --> 00:01:24.000 the phone announces a listing of its Towers dedicated 24 00:01:23.900 --> 00:01:26.800 subsidiary Vantage Towers. The capital 25 00:01:26.800 --> 00:01:30.000 is providing some metrics so far. We home 26 00:01:29.300 --> 00:01:32.300 68,000 towers with a commitment 27 00:01:32.300 --> 00:01:36.300 for 7,100 additional Towers a bit 28 00:01:36.300 --> 00:01:39.300 Dapper Tower 10,000 Euros multiplied by 29 00:01:39.300 --> 00:01:43.300 gives you an adjustable 680 million 30 00:01:42.300 --> 00:01:45.600 euros and we anticipate that 31 00:01:45.600 --> 00:01:48.800 we are going to be able to sell the company for 32 00:01:48.800 --> 00:01:51.600 an Enterprise Value to a bit that multiple of 33 00:01:51.600 --> 00:01:54.800 25 maybe more evaluation of 34 00:01:54.800 --> 00:01:58.000 15 to 20 billion euros today the 35 00:01:57.400 --> 00:01:59.100 value of Vantage. 36 00:01:59.200 --> 00:02:02.700 On the stock market is 15 billion euros. 37 00:02:03.600 --> 00:02:06.900 In its annual report American Tower provides plenty 38 00:02:06.900 --> 00:02:09.600 of information about the business and its 39 00:02:09.600 --> 00:02:12.100 metrics American Tower is the owner 40 00:02:12.100 --> 00:02:15.400 of the Tower of the Mast and is plugging some 41 00:02:15.400 --> 00:02:18.300 broadcasting equipment, but the broadcasting equipment 42 00:02:18.300 --> 00:02:21.400 does not belong to American Tower it belongs to 43 00:02:21.400 --> 00:02:24.600 Verizon or AT&T or Deutsch Telecom or 44 00:02:24.600 --> 00:02:25.100 whatsoever. 45 00:02:25.900 --> 00:02:28.500 On an economic point of view you buy a 46 00:02:28.500 --> 00:02:31.500 piece of land or your negotiator long-term lease all 47 00:02:31.500 --> 00:02:34.800 agreement you provide some electrical and 48 00:02:34.800 --> 00:02:37.200 energy Supply equipment you build the 49 00:02:37.200 --> 00:02:40.200 Mast and then you attract one tenant. That's fine. If 50 00:02:40.200 --> 00:02:43.600 you have two tenants, basically the costs 51 00:02:43.600 --> 00:02:47.000 are a little bit the same a little bit higher but just incrementally higher 52 00:02:46.200 --> 00:02:49.300 and if you have three tendons, of course you 53 00:02:49.300 --> 00:02:52.100 incrementally did the cost but not at the same 54 00:02:52.100 --> 00:02:56.100 speed not at the same rate are the volume other revenues. 55 00:02:56.900 --> 00:02:59.600 And the company's providing the metrics imagine that 56 00:02:59.600 --> 00:03:04.700 you're in a United States you build a tower 275,000. 57 00:03:02.700 --> 00:03:05.700 The first 58 00:03:05.700 --> 00:03:08.300 tenant is going to pay 20,000. The second 59 00:03:08.300 --> 00:03:11.200 one is going to pass 30,000. The third one is 60 00:03:11.200 --> 00:03:14.300 going to pay 30,000 again. And what about the operating 61 00:03:14.300 --> 00:03:17.300 expenses 12,000 up to 62 00:03:17.300 --> 00:03:20.800 13 up to 14. So you understand that the 63 00:03:20.800 --> 00:03:24.200 return investment is going to be dramatically affected 64 00:03:23.200 --> 00:03:26.600 by the number of tenants. It's a 3% 65 00:03:26.600 --> 00:03:29.200 return investment for one tenant, which goes up to 66 00:03:29.200 --> 00:03:32.300 13 for two tenants and 24 for three 67 00:03:32.300 --> 00:03:35.100 tenants. So definitely the sensitivity is about 68 00:03:35.100 --> 00:03:36.800 the number of tenants. 69 00:03:37.800 --> 00:03:41.100 American Tower is a company which experienced huge 70 00:03:40.100 --> 00:03:43.800 growth throughout the years last year 71 00:03:43.800 --> 00:03:46.300 in 2021. Two Acquisitions were 72 00:03:46.300 --> 00:03:49.200 announced and more or less implemented. At least for one 73 00:03:49.200 --> 00:03:52.200 of it. Coresight tells us how much 74 00:03:52.200 --> 00:03:56.000 about 20 billion US dollars for growth 75 00:03:55.600 --> 00:03:58.300 International growth will discuss later 76 00:03:58.300 --> 00:04:02.200 and diversification also for data centers 77 00:04:01.200 --> 00:04:04.500 as a consequence when you observe in 78 00:04:04.500 --> 00:04:07.800 the long term the original of revenues for American Tower. It 79 00:04:07.800 --> 00:04:11.000 was close to zero in the mid 90s. It 80 00:04:10.400 --> 00:04:13.700 went closer to 1 billion 81 00:04:13.700 --> 00:04:16.700 at the end of this decade early 2000 82 00:04:16.700 --> 00:04:19.500 and then it started growing at her 83 00:04:19.500 --> 00:04:23.800 High rate from 2006 to 2007 in 84 00:04:22.800 --> 00:04:25.500 2005 revenues are 85 00:04:25.500 --> 00:04:29.000 approximately one billion and in 2021 86 00:04:28.300 --> 00:04:31.400 is the revenues exceed 9 87 00:04:31.400 --> 00:04:33.800 billion. So it's an outstanding growth. 88 00:04:34.600 --> 00:04:37.700 Now the revenue is simply the multiplication of 89 00:04:37.700 --> 00:04:40.600 the number of revenues multiplied by 90 00:04:40.600 --> 00:04:41.800 the revenues per side. 91 00:04:42.600 --> 00:04:45.700 Interestingly the number of sides is growing 92 00:04:45.700 --> 00:04:49.100 which is absolutely fundamental organic 93 00:04:48.100 --> 00:04:51.600 growth external growth. But interestingly, the 94 00:04:51.600 --> 00:04:54.600 revenues per site are declining as a consequence 95 00:04:54.600 --> 00:04:57.700 of the internationalization of the business 96 00:04:57.700 --> 00:05:00.400 as far as American Tower is concerned. 97 00:05:01.100 --> 00:05:05.000 Though when the company was predominantly North American the revenues 98 00:05:04.200 --> 00:05:07.900 per site were about 50 to 60,000 99 00:05:07.900 --> 00:05:11.100 and today it's slightly more than 40,000. 100 00:05:10.100 --> 00:05:13.300 Why because the revenue per side is 101 00:05:13.300 --> 00:05:16.900 lower outside US rather than any United 102 00:05:16.900 --> 00:05:17.200 States. 103 00:05:18.700 --> 00:05:21.600 If you look at the p&l of American Tower, 104 00:05:21.600 --> 00:05:24.300 of course, the commercial profitability is very 105 00:05:24.300 --> 00:05:27.400 high. But unfortunately the assets 106 00:05:27.400 --> 00:05:28.500 turnover is very low. 107 00:05:29.200 --> 00:05:34.400 And it is obvious When You observe the Matrix of the company 275,000 108 00:05:32.400 --> 00:05:35.100 is what you 109 00:05:35.100 --> 00:05:38.300 need to build a tower. Now. The first tenant is paying 110 00:05:38.300 --> 00:05:41.500 20,000. So the second tenant is paying $30,000. 111 00:05:41.500 --> 00:05:44.800 So if you divide the revenues by the investment, 112 00:05:44.800 --> 00:05:47.600 you understand that the assets productivity is quite low. 113 00:05:47.600 --> 00:05:50.500 In fact up to last year 114 00:05:50.500 --> 00:05:53.200 the assets don't over walls in a range between 115 00:05:53.200 --> 00:05:56.300 0.2 and 0.25. It went down in 116 00:05:56.300 --> 00:05:59.800 2021 as a consequence of Acquisitions for which 117 00:05:59.800 --> 00:06:02.500 you already have the cost of the acquisition and 118 00:06:02.500 --> 00:06:05.600 not yet the full Revenue but the return Capital 119 00:06:05.600 --> 00:06:09.500 employed is 5.3 in 2021, 120 00:06:08.500 --> 00:06:12.400 which is 33.5% of 121 00:06:12.400 --> 00:06:16.000 operating income as a percentage of Revenue multiplied 122 00:06:15.100 --> 00:06:18.700 by 0.16 of assets 123 00:06:18.700 --> 00:06:21.700 turnover now 5.3 is lower for 124 00:06:21.700 --> 00:06:24.200 accounting reasons. But if you look at 125 00:06:24.200 --> 00:06:27.500 the evolution of the return Capital at the 126 00:06:27.500 --> 00:06:29.000 beginning of the 2010 127 00:06:29.200 --> 00:06:32.700 You have 10% and 10% and 10% Then 128 00:06:32.700 --> 00:06:36.700 it goes down to eight percent but it is absolutely fixed 129 00:06:35.700 --> 00:06:39.000 and seemingly quite predictable. 130 00:06:38.700 --> 00:06:41.500 It's also interesting to observe the 131 00:06:41.500 --> 00:06:44.500 stability of the dividend yield. The company 132 00:06:44.500 --> 00:06:48.200 is a real estate investment trust consequence. No 133 00:06:47.200 --> 00:06:50.000 cooperate tax no income tax. 134 00:06:50.600 --> 00:06:53.100 But as a counterpart the obligation to 135 00:06:53.100 --> 00:06:56.200 distribute more than 95% of the 136 00:06:56.200 --> 00:06:58.200 bottom line of the net earnings. 137 00:06:58.900 --> 00:07:01.400 If you look at the evolution of the dividend per 138 00:07:01.400 --> 00:07:05.700 share, it started growing in 2012 2013 and 139 00:07:05.700 --> 00:07:08.400 then you have a continuous growth in a 140 00:07:08.400 --> 00:07:08.700 dividend. 141 00:07:09.300 --> 00:07:12.300 The dividend yield is a dividend of the year divided by 142 00:07:12.300 --> 00:07:16.200 the average stock price of the year and very interestingly. 143 00:07:15.200 --> 00:07:18.900 It's very stable at 2% Okay 144 00:07:18.900 --> 00:07:21.600 plus minus peanuts. So if 145 00:07:21.600 --> 00:07:24.900 you are an investor, you know between quotes 146 00:07:24.900 --> 00:07:28.000 that the dividend you're going to receive represents issue 147 00:07:27.100 --> 00:07:30.600 about 2% of the stock price, but this 148 00:07:30.600 --> 00:07:33.100 dividend is going to go up year after 149 00:07:33.100 --> 00:07:35.900 year as a consequence of the growth of the company. 150 00:07:36.700 --> 00:07:39.600 So a stability in the Rosie and the 151 00:07:39.600 --> 00:07:42.300 stability in the dividend year the consequence of this 152 00:07:42.300 --> 00:07:45.600 observed unperceived stability in 153 00:07:45.600 --> 00:07:49.300 the Rosé in the dividend yield is a 154 00:07:48.300 --> 00:07:51.900 change in stock market status 155 00:07:51.900 --> 00:07:53.300 of American Tower. 156 00:07:54.200 --> 00:07:57.500 The company deserves as a read as a related 157 00:07:57.500 --> 00:08:00.800 company a beta a systematic risk 158 00:08:00.800 --> 00:08:03.200 coefficient, which is 0.5 point six point 159 00:08:03.200 --> 00:08:06.900 seven point eight a bit more than 0.5 and significantly less 160 00:08:06.900 --> 00:08:09.200 than one which was what was 161 00:08:09.200 --> 00:08:14.700 happening at the end of the 2000 2010 2014 162 00:08:13.700 --> 00:08:16.400 a little bit of change because the company 163 00:08:16.400 --> 00:08:19.400 is completely correlated from the market and then 164 00:08:19.400 --> 00:08:22.900 back to the status of read share in 165 00:08:22.900 --> 00:08:25.700 2016 2017, then 166 00:08:25.700 --> 00:08:28.700 it drops and during the last three 167 00:08:28.700 --> 00:08:31.200 years. The company has a beta which 168 00:08:31.200 --> 00:08:34.100 is point one point fifteen Point eighteen, which is a 169 00:08:34.100 --> 00:08:35.500 beta for Bond. 170 00:08:36.200 --> 00:08:40.600 When you multiply a beta of 0.10.2 by 171 00:08:40.600 --> 00:08:43.500 6% the equity Market is premium on a 172 00:08:43.500 --> 00:08:46.200 New York Stock Exchange, you get to risk premium of 173 00:08:46.200 --> 00:08:49.400 0.6 to 1.2% This is 174 00:08:49.400 --> 00:08:52.300 a risk premium, not of a share but of a 175 00:08:52.300 --> 00:08:56.300 corporate bonus rating is about Triple B minus Triple 176 00:08:55.300 --> 00:08:59.100 B Triple B plus interestingly when 177 00:08:58.100 --> 00:09:01.400 the beta is down You observe 178 00:09:01.400 --> 00:09:04.700 that in the meantime the multiple Enterprise Value 179 00:09:04.700 --> 00:09:07.800 on eBay is significantly up. 180 00:09:08.600 --> 00:09:12.300 There was a huge stability starting in 2008 181 00:09:11.300 --> 00:09:14.500 to 2018. The Enterprise 182 00:09:14.500 --> 00:09:18.000 Value to a Bida is 18 18 years 183 00:09:17.100 --> 00:09:19.900 of epider for the Enterprise Value. 184 00:09:20.600 --> 00:09:25.000 Then it goes up dramatically to 25 27 28. 185 00:09:24.800 --> 00:09:27.700 And so when the company's perceived as 186 00:09:27.700 --> 00:09:30.300 a share, it's a price value to a bit 187 00:09:30.300 --> 00:09:33.200 is 18 when it is perceived at the bone. 188 00:09:33.200 --> 00:09:36.800 It is 25 to 28 19 to 189 00:09:36.800 --> 00:09:39.200 go back to the valuation of the company and to 190 00:09:39.200 --> 00:09:42.500 the variation of a tower to evaluate an 191 00:09:42.500 --> 00:09:45.200 asset. You need a kind of growth rate. It's provided by 192 00:09:45.200 --> 00:09:47.800 the company in its annual report 2021. 193 00:09:48.400 --> 00:09:52.000 An average of 3.8% organic growth 194 00:09:51.600 --> 00:09:54.100 for the company of the whole 195 00:09:54.100 --> 00:09:58.100 with different situations according to the geography 2.9 196 00:09:57.100 --> 00:10:00.700 in US and Canada 5% in 197 00:10:00.700 --> 00:10:03.100 Europe Etc. So we are going 198 00:10:03.100 --> 00:10:06.600 to use this metrics to evaluate the tower but the 199 00:10:06.600 --> 00:10:09.700 valuation depends very much on the financial status of 200 00:10:09.700 --> 00:10:10.400 the company. 201 00:10:11.300 --> 00:10:14.800 For a beta of 0.60.7. It's a 202 00:10:14.800 --> 00:10:17.200 share you are a rate for a beta of a round 203 00:10:17.200 --> 00:10:20.500 Point 15. It's a bomb Triple B minus, 204 00:10:20.500 --> 00:10:23.600 but interestingly when it is a bone, 205 00:10:23.600 --> 00:10:26.400 it means that the cost of that will exactly match with 206 00:10:26.400 --> 00:10:27.700 the cost of equity. 207 00:10:28.400 --> 00:10:31.300 Let's make a simple Financial calculation. Imagine 208 00:10:31.300 --> 00:10:34.200 a tower which generates 50,000 US 209 00:10:34.200 --> 00:10:37.800 dollars of revenues. You did a cash operating expenses 210 00:10:37.800 --> 00:10:40.200 and a little bit of Maintenance capex. How much is 211 00:10:40.200 --> 00:10:43.500 left about 35.5 thousand dollars? 212 00:10:44.100 --> 00:10:47.400 Now you make this figure grow by 3% per year 213 00:10:47.400 --> 00:10:50.700 over 25 years contracts for Towers. It's 214 00:10:50.700 --> 00:10:53.300 24 or 32 years. Now, what makes 215 00:10:53.300 --> 00:10:56.100 the difference is obviously The Wack as a 216 00:10:56.100 --> 00:10:57.000 consequence of the beta. 217 00:10:57.700 --> 00:11:00.800 When the beta is 0.15 the walk 218 00:11:00.800 --> 00:11:03.500 is 3% and the Enterprise Value 219 00:11:03.500 --> 00:11:06.300 the value of a tower represents 23 years 220 00:11:06.300 --> 00:11:07.500 of ibadan. 221 00:11:08.200 --> 00:11:11.500 Same growth rate same period but a walk 222 00:11:11.500 --> 00:11:14.900 of 5% as a consequence of a beta of 0.65 the 223 00:11:14.900 --> 00:11:17.300 value is down to 19 years of 224 00:11:17.300 --> 00:11:20.900 ebida. So you understand that this change 225 00:11:20.900 --> 00:11:23.500 in stock market status at least 226 00:11:23.500 --> 00:11:26.500 theoretically creates a value which 227 00:11:26.500 --> 00:11:28.300 is four years of Evita. 228 00:11:28.800 --> 00:11:31.800 Now, what did we observe the change 229 00:11:31.800 --> 00:11:34.300 in the status move the Enterprise Value to a 230 00:11:34.300 --> 00:11:38.100 bit from 18 to 27 and even 28 231 00:11:37.100 --> 00:11:40.200 in 2021 as an average. 232 00:11:40.800 --> 00:11:44.400 So you understand that there was a kind of overshooting the 233 00:11:43.400 --> 00:11:47.000 change in the status is justifying four 234 00:11:46.300 --> 00:11:49.300 years of a bit that not nine to 235 00:11:49.300 --> 00:11:50.600 ten years of a bit done. 236 00:11:51.600 --> 00:11:55.100 You remember at the beginning? I told you that something changed 237 00:11:54.100 --> 00:11:57.500 in the context if you 238 00:11:57.500 --> 00:12:00.700 calculate the beta not the average beta of 239 00:12:00.700 --> 00:12:04.200 the year, but the kind of moving average 36 months 240 00:12:04.200 --> 00:12:07.000 moving average beta what do you 241 00:12:07.100 --> 00:12:10.900 get roughly the same profile as before but interestingly 242 00:12:10.900 --> 00:12:13.100 during the last month there is a 243 00:12:13.100 --> 00:12:17.400 change because the beta is gradually moving up if 244 00:12:16.400 --> 00:12:19.900 you look at the last 36 months 245 00:12:19.900 --> 00:12:23.400 of correlation beta you 246 00:12:22.400 --> 00:12:26.400 get something which is 0.5. The 247 00:12:25.400 --> 00:12:28.500 previous financial status of 248 00:12:28.500 --> 00:12:32.100 American Tower walls. It's a share let's 249 00:12:31.100 --> 00:12:34.900 move down to it's a bond and it's 250 00:12:34.900 --> 00:12:37.500 gradually getting up maybe back 251 00:12:37.500 --> 00:12:39.100 to the status of share. 252 00:12:39.800 --> 00:12:42.200 Now in the theoretical point of view when you 253 00:12:42.200 --> 00:12:44.200 calculate the value of a tower. 254 00:12:45.200 --> 00:12:48.700 If you move the beta from point 18, which was its 255 00:12:48.700 --> 00:12:51.700 average in 2021 2.5 which 256 00:12:51.700 --> 00:12:54.600 is a current situation of the beta in 257 00:12:54.600 --> 00:12:57.400 May 2022. What happens to the 258 00:12:57.400 --> 00:13:00.600 Enterprise Value to a bit multiple, it 259 00:13:00.600 --> 00:13:03.600 should be down by 3.5 and then 260 00:13:03.600 --> 00:13:06.100 you go back to the graph in the long term 261 00:13:06.100 --> 00:13:10.300 Enterprise Value divided by a beta the 262 00:13:09.300 --> 00:13:12.600 history was 18. It goes 263 00:13:12.600 --> 00:13:15.600 up in 2019 to 25 264 00:13:15.600 --> 00:13:19.000 then 27 then 28 and 265 00:13:18.600 --> 00:13:21.700 in May 2022. It's down 266 00:13:21.700 --> 00:13:25.200 from 28 to 24.5. So 267 00:13:24.200 --> 00:13:27.700 you understand that the observation the reality 268 00:13:27.700 --> 00:13:31.500 the practice is from 28 to 24.5. 269 00:13:30.500 --> 00:13:34.200 Now what is proposed 270 00:13:33.200 --> 00:13:36.700 by the Siri is observed in 271 00:13:36.700 --> 00:13:39.900 reality, which is quite interesting. Now 272 00:13:39.900 --> 00:13:42.000 what will happen to the beta in the 273 00:13:42.100 --> 00:13:44.700 future? No, but he knows but today it's point. 274 00:13:44.900 --> 00:13:48.000 I've it might go up 2.6.7 or 275 00:13:47.300 --> 00:13:48.900 even point eight. 276 00:13:50.200 --> 00:13:53.100 You remember that the dividend yield dividend divided by 277 00:13:53.100 --> 00:13:57.000 stock price is too precise quite stable and fantastic compared 278 00:13:56.200 --> 00:13:59.500 with interest rates at that time long term 279 00:13:59.500 --> 00:14:02.600 government bonds 1.2. Now the long-term 280 00:14:02.600 --> 00:14:05.100 Government Bond rate is up. What's going to 281 00:14:05.100 --> 00:14:08.600 happen to the stock market status of American 282 00:14:08.600 --> 00:14:12.300 Tower tomorrow? It's going to be obviously extremely 283 00:14:11.300 --> 00:14:13.700 interesting to observe. 284 00:14:15.100 --> 00:14:19.900 But let's go back to the rationality of the telecommunication operators. 285 00:14:18.900 --> 00:14:21.200 They looked at 286 00:14:21.200 --> 00:14:25.200 their assets in their balance it and they realized 287 00:14:24.200 --> 00:14:28.500 that these assets were completely over evaluated 288 00:14:27.500 --> 00:14:31.000 for some reasons, which were probably 289 00:14:30.300 --> 00:14:33.900 not going to last long. Why did 290 00:14:33.900 --> 00:14:36.600 they do they took that as an opportunity in order 291 00:14:36.600 --> 00:14:39.600 to generate plenty of cash what I 292 00:14:39.600 --> 00:14:42.700 observe in the 90s when the industrial firms 293 00:14:42.700 --> 00:14:46.500 saw the head offices to Professionals in 294 00:14:46.500 --> 00:14:50.400 a related business is that the professionals bought 295 00:14:49.400 --> 00:14:52.200 the head offices at the price which was 296 00:14:52.200 --> 00:14:54.000 higher than the value. 297 00:14:54.900 --> 00:14:57.800 To conclude what I just described is 298 00:14:57.800 --> 00:15:00.700 absolutely consistent with the philosophy of 299 00:15:00.700 --> 00:15:03.800 this platform. You are an industrial firm. 300 00:15:03.800 --> 00:15:07.900 You need to understand the financial rationality. Then 301 00:15:06.900 --> 00:15:09.400 it will allow you 302 00:15:09.400 --> 00:15:13.500 to realize value Creation with 303 00:15:12.500 --> 00:15:15.600 strategic moves. You have 304 00:15:15.600 --> 00:15:18.000 some strategic priorities if you 305 00:15:18.500 --> 00:15:22.000 understand the value creation process behind all 306 00:15:21.700 --> 00:15:24.400 these strategic Alternatives, you will 307 00:15:24.400 --> 00:15:27.400 be able to maximize the value of the 308 00:15:27.400 --> 00:15:30.500 company, but for an industrial firm for 309 00:15:30.500 --> 00:15:33.900 its managers for the sea level, it's fundamental 310 00:15:33.900 --> 00:15:36.500 to be extremely aware of 311 00:15:36.500 --> 00:15:38.100 the financial rationality. 312 00:15:39.100 --> 00:15:39.800 Thank you very much.