WEBVTT 1 00:00:00.100 --> 00:00:04.400 you 2 00:00:07.800 --> 00:00:11.000 hello and welcome to this fitcast, which three 3 00:00:10.200 --> 00:00:13.700 years after the operation is devoted 4 00:00:13.700 --> 00:00:17.500 to the acquisition of Tiffany by lvmh. 5 00:00:18.100 --> 00:00:21.400 We are going to get through the financial characteristics of the 6 00:00:21.400 --> 00:00:25.300 acquisition and often funny today Within lvmh. 7 00:00:26.400 --> 00:00:29.800 Quick wrap-up about the history. We are in 2020 8 00:00:29.800 --> 00:00:32.500 and lvmh acquires Tiffany 9 00:00:32.500 --> 00:00:35.700 for 16.2 billion dollars. You remember 10 00:00:35.700 --> 00:00:38.700 that in 2020. We are in the middle of the pandemic 11 00:00:38.700 --> 00:00:42.000 covid-19. And so there 12 00:00:41.200 --> 00:00:45.600 will be some rumors According to which lvmh might 13 00:00:44.600 --> 00:00:47.100 mobilize the 14 00:00:47.100 --> 00:00:50.900 material adverse change process in 15 00:00:50.900 --> 00:00:53.600 order to withdraw or negotiate the 16 00:00:53.600 --> 00:00:56.700 price. In fact, they are going to negotiate a little bit the price the 17 00:00:56.700 --> 00:01:00.300 first price which was offered by LV image was 120. 18 00:00:59.300 --> 00:01:03.200 It's going to go up to 135 dollars. 19 00:01:02.200 --> 00:01:05.300 It's great to slightly go down 20 00:01:05.300 --> 00:01:09.100 to 100 and 31.5 dollars per 21 00:01:08.100 --> 00:01:11.600 share. It's about 16 billion dollars 22 00:01:11.600 --> 00:01:14.500 cash out. Now the very famous 23 00:01:14.500 --> 00:01:18.600 Tiffany cross is joining the Maison 24 00:01:17.600 --> 00:01:20.800 of lvmh including 25 00:01:20.800 --> 00:01:23.200 Bulgari and Fred in a 26 00:01:23.200 --> 00:01:25.200 division watches and jury. 27 00:01:25.900 --> 00:01:28.400 Miss or is a broader concept that 28 00:01:28.400 --> 00:01:31.400 the brand it's a history. Of course. 29 00:01:31.400 --> 00:01:34.400 Tiffany is a historic brand which is adding 30 00:01:34.400 --> 00:01:37.400 4.4 billion dollars of sales to the 31 00:01:37.400 --> 00:01:40.400 4.4 billion euros of sales of the 32 00:01:40.400 --> 00:01:44.400 Watchers and jurors division of lvmh almost 33 00:01:43.400 --> 00:01:45.200 doubling. 34 00:01:46.100 --> 00:01:50.300 There are also 326 points of sales, but 35 00:01:49.300 --> 00:01:52.800 stagnant sales at Tiffany 36 00:01:52.800 --> 00:01:56.200 Tiffany is a Sleeping Beauty and 37 00:01:55.200 --> 00:01:59.500 not very active in terms of sales grows. 38 00:02:00.200 --> 00:02:03.800 Now getting into the Pyramid of consolidation of 39 00:02:03.800 --> 00:02:06.700 lvmh will add to 40 00:02:06.700 --> 00:02:09.300 Goodwill and Brands a contribution of 41 00:02:09.300 --> 00:02:12.900 14.5 billion euros. 42 00:02:13.400 --> 00:02:16.400 This year the company made plenty of Acquisitions, but 43 00:02:16.400 --> 00:02:19.600 the total contribution of these Acquisitions to Goodwill and 44 00:02:19.600 --> 00:02:23.900 Brands walls 17 billion 14.5 come 45 00:02:22.900 --> 00:02:26.000 from Tiffany acquisition. 46 00:02:25.800 --> 00:02:28.500 Of course, one of the key questions of 47 00:02:28.500 --> 00:02:31.600 the film, which I produce three years ago was what about 48 00:02:31.600 --> 00:02:34.200 the value of Tiffany? What about the fundamental value of 49 00:02:34.200 --> 00:02:34.700 the company? 50 00:02:35.400 --> 00:02:39.400 When you want to evaluate a company you need parameters Financial parameters 51 00:02:38.400 --> 00:02:41.500 to calculate the weighted average cost of 52 00:02:41.500 --> 00:02:44.600 capital. You need a gearing a financial structure. 53 00:02:44.600 --> 00:02:47.600 There was no debt in the balance eight 54 00:02:47.600 --> 00:02:50.600 of Tiffany. But in order to make the acquisition I 55 00:02:50.600 --> 00:02:53.300 anticipated that there would be some debt in the 56 00:02:53.300 --> 00:02:56.300 financial structure maybe a gearing dead over Equity of 57 00:02:56.300 --> 00:02:59.300 0.3. You need a risk-free rate 58 00:02:59.300 --> 00:03:02.300 and a debt interest rate treasury bonds at 59 00:03:02.300 --> 00:03:06.900 that time 2.2% risk premium for that 0.8% to 60 00:03:06.900 --> 00:03:09.300 the interest rate is going to be the sum of this two figures 61 00:03:09.300 --> 00:03:10.400 three percent. 62 00:03:11.100 --> 00:03:15.800 The better of Tiffany was 1.5 plus 63 00:03:15.800 --> 00:03:18.300 and I will show you the graph a little bit later on 64 00:03:18.300 --> 00:03:21.600 this as a consequence that drives the beta 65 00:03:21.600 --> 00:03:24.800 of the asset without leverage down to 1.2. 66 00:03:25.700 --> 00:03:28.200 And then you get to a walk which might be 67 00:03:28.200 --> 00:03:31.800 something like 9% with some leverage the 68 00:03:31.800 --> 00:03:34.100 last calculated walk with no 69 00:03:34.100 --> 00:03:38.400 debt was 11% and a little bit more then forget 70 00:03:37.400 --> 00:03:40.600 about the technical calculation the fundamental 71 00:03:40.600 --> 00:03:43.400 value with the worst assumptions walls about 72 00:03:43.400 --> 00:03:46.400 70 dollars per share, which was quite 73 00:03:46.400 --> 00:03:49.300 far from the average stock price, which we can 74 00:03:49.300 --> 00:03:53.900 observe in 2019 of 1009 and 75 00:03:52.900 --> 00:03:55.200 it's very far from the 76 00:03:55.200 --> 00:03:59.000 offer made by lvmh of 100 35 years 77 00:03:58.300 --> 00:04:02.400 ago. The author went down to 131.5. 78 00:04:03.800 --> 00:04:06.600 Now if you look at the evolution of 79 00:04:06.600 --> 00:04:09.700 the better of Tiffany, what was very interesting to observe 80 00:04:09.700 --> 00:04:12.800 is a huge volatility the better 81 00:04:12.800 --> 00:04:16.000 of the company the last years where about 1.5 82 00:04:15.500 --> 00:04:18.200 to 2, but it had been 83 00:04:18.200 --> 00:04:22.200 up to 2.5 at the beginning of the 2000s. It 84 00:04:21.200 --> 00:04:24.300 had been down to zero in the middle of the 85 00:04:24.300 --> 00:04:27.600 90s. So an extremely volatile beta 86 00:04:27.600 --> 00:04:30.400 as far as lvmh is concerned the 87 00:04:30.400 --> 00:04:33.600 beta is much more predictable and stable 88 00:04:33.600 --> 00:04:37.100 from 0.8 to 1.2 89 00:04:36.100 --> 00:04:39.500 is a kind of average of one in the 90 00:04:39.500 --> 00:04:42.400 long term. It's normal that the beta Alpha 91 00:04:42.400 --> 00:04:45.300 image is lower than the beta of Tiffany because of the 92 00:04:45.300 --> 00:04:48.000 image is much bigger. And you remember there is a 93 00:04:48.400 --> 00:04:50.300 size effect in the calculation of the beta. 94 00:04:51.100 --> 00:04:54.700 Now interestingly in general report of lvmh you 95 00:04:54.700 --> 00:04:57.200 can read the parameters which are used by 96 00:04:57.200 --> 00:05:00.500 the company to make its impairment tests. When 97 00:05:00.500 --> 00:05:03.600 you discount cash flows to try to observe the fundamental 98 00:05:03.600 --> 00:05:06.900 value of your brands of your Goodwill the 99 00:05:06.900 --> 00:05:10.100 work which is disclosed by the company is 100 00:05:09.100 --> 00:05:13.200 for watches and jewelry about 101 00:05:12.200 --> 00:05:16.000 7.5 to 8.9% Why 102 00:05:15.500 --> 00:05:18.300 because they are different brands and 103 00:05:18.300 --> 00:05:21.900 they are different levels of risk. The plan duration 104 00:05:21.900 --> 00:05:24.500 is within a range of five to 105 00:05:24.500 --> 00:05:27.300 ten years plan duration as the number 106 00:05:27.300 --> 00:05:31.100 of years up to the moment you get to kind of maturity. Thanks 107 00:05:30.100 --> 00:05:33.300 to which you can calculate the 108 00:05:33.300 --> 00:05:36.500 terminal value. What is the average growth rate during this period 109 00:05:36.500 --> 00:05:39.500 about 9.2% long term growth 110 00:05:39.500 --> 00:05:42.200 rate again to calculate the terminal value 111 00:05:42.200 --> 00:05:46.000 about 2% if I use these parameters and 112 00:05:45.400 --> 00:05:48.300 apply that to Tiffany when the company is 113 00:05:48.300 --> 00:05:51.000 acquired. Where's the impairment test param? 114 00:05:51.100 --> 00:05:54.500 Of lvmh at that time you get with the work 115 00:05:54.500 --> 00:05:57.200 of nine percent ninety dollars 116 00:05:57.200 --> 00:06:00.600 per share and with the work of 7.5% It 117 00:06:00.600 --> 00:06:03.700 goes up to 120, but we 118 00:06:03.700 --> 00:06:05.100 are still quite far from 119 00:06:05.900 --> 00:06:08.500 Now what happened Tiffany was integrated in 120 00:06:08.500 --> 00:06:11.800 lvmh operations and we can observe that 121 00:06:11.800 --> 00:06:15.000 the division watches and jewelry grew 122 00:06:14.800 --> 00:06:17.800 the revenue figure was multiplied by 123 00:06:17.800 --> 00:06:20.500 2. And now what is interesting to observe is 124 00:06:20.500 --> 00:06:23.700 watches injury does not represent a 125 00:06:23.700 --> 00:06:26.600 very small percentage of lvmh now. It's 126 00:06:26.600 --> 00:06:29.800 about 13 to 14% of the revenues 127 00:06:29.800 --> 00:06:33.000 of the group, which is now quite significant. It 128 00:06:32.100 --> 00:06:35.300 was probably one of the objectives of the 129 00:06:35.300 --> 00:06:38.600 acquisition. What about the commercial profitability when 130 00:06:38.600 --> 00:06:41.300 you calculate ebga or a bit as 131 00:06:41.300 --> 00:06:44.300 a percentage to revenues you get something which 132 00:06:44.300 --> 00:06:47.900 is quite interesting to observe immediate is gradually 133 00:06:47.900 --> 00:06:51.300 going up starting 10 15 134 00:06:50.300 --> 00:06:53.200 years ago before the 135 00:06:53.200 --> 00:06:57.200 acquisition is about 22 23% in 136 00:06:56.200 --> 00:07:00.300 2020 and able 137 00:06:59.300 --> 00:07:02.200 to sales ratio is very much down as 138 00:07:02.200 --> 00:07:05.500 a natural consequence of the pandemic and then 139 00:07:05.900 --> 00:07:08.400 goes back to the initial situation and 140 00:07:08.400 --> 00:07:11.900 a little bit better 24 to 23% 141 00:07:11.900 --> 00:07:15.200 If you remember that 23% is 142 00:07:14.200 --> 00:07:17.400 the ebda to sales figure 143 00:07:17.400 --> 00:07:20.900 of Tiffany before the acquisition. So there 144 00:07:20.900 --> 00:07:22.800 is no major change in this figure. 145 00:07:23.400 --> 00:07:24.500 Keep that in mind. 146 00:07:25.300 --> 00:07:28.300 Now in 2022 annual report, 147 00:07:28.300 --> 00:07:31.300 the company of the image is providing 148 00:07:31.300 --> 00:07:34.100 again. The impairment experimeter is 149 00:07:34.100 --> 00:07:37.700 not only in 2022. But comparing also is 2021 and 150 00:07:37.700 --> 00:07:40.300 2020. What do we observe we 151 00:07:40.300 --> 00:07:43.700 observe that the work from 2021 to 2022 152 00:07:43.700 --> 00:07:46.200 is a little bit higher. It was 153 00:07:46.200 --> 00:07:49.200 8.2% for watches on jury in 154 00:07:49.200 --> 00:07:52.100 2021. And now it's 8.8 to 155 00:07:52.100 --> 00:07:55.500 9% Why because there's a tension 156 00:07:55.500 --> 00:07:59.000 in the interest rates when inflation is up 157 00:07:58.300 --> 00:08:01.300 and interest rates are up what 158 00:08:01.300 --> 00:08:04.800 happens the walkies up that's a natural consequence for 159 00:08:04.800 --> 00:08:07.900 the companies interestingly. Also the 160 00:08:07.900 --> 00:08:10.700 animal growth rate for the revenues during 161 00:08:10.700 --> 00:08:13.200 the plan period is a little 162 00:08:13.200 --> 00:08:17.100 bit down. It was supposedly a bit more than 10% in 163 00:08:16.100 --> 00:08:19.300 2021 impairment as parameters. 164 00:08:19.300 --> 00:08:22.600 It's now eight point eight percent. So as 165 00:08:22.600 --> 00:08:23.300 a conclusion 166 00:08:24.800 --> 00:08:27.600 slight increase in the work interest rate and a 167 00:08:27.600 --> 00:08:30.500 little bit reduced growth in a calculation. 168 00:08:31.300 --> 00:08:35.000 But very interesting the Indiana report of lvmh 169 00:08:34.300 --> 00:08:38.000 we have the parameters 40 Fanny 170 00:08:37.600 --> 00:08:40.500 not only for the division and all 171 00:08:40.500 --> 00:08:43.400 the divisions, but as Tiffany is a very 172 00:08:43.400 --> 00:08:46.900 very big figure in the balance it they provide 173 00:08:46.900 --> 00:08:49.200 not only the total Goodwill and 174 00:08:49.200 --> 00:08:52.500 brand which is again 14.5 billion euros, 175 00:08:52.500 --> 00:08:55.800 but the post tax discount rate the 176 00:08:55.800 --> 00:08:58.500 walking the growth rate for the period after 177 00:08:58.500 --> 00:09:01.400 the plan for the calculation of the terminal value and the 178 00:09:01.400 --> 00:09:04.100 period which is covered by the forecast cash flow 179 00:09:04.100 --> 00:09:07.200 duration of the plan 10 years. Now, we have the 180 00:09:07.200 --> 00:09:11.000 exact figures which are used inside. Lvmh for 181 00:09:10.600 --> 00:09:11.900 the impairment test. 182 00:09:12.800 --> 00:09:16.000 Now when you make an acquisition you anticipate some 183 00:09:15.800 --> 00:09:19.000 synergies generated by the acquisition. So 184 00:09:18.600 --> 00:09:21.600 an improvement in the financial performance of 185 00:09:21.600 --> 00:09:24.400 the company and you introduce that in the 186 00:09:24.400 --> 00:09:26.800 calculations the price you are ready to pay for the acquisition. 187 00:09:27.700 --> 00:09:30.700 Very interestingly 40 Fanny the 188 00:09:30.700 --> 00:09:34.000 inventory level is absolutely huge. It 189 00:09:33.600 --> 00:09:36.900 represents more than 50% to 190 00:09:36.900 --> 00:09:40.600 sales and more than 140% of 191 00:09:40.600 --> 00:09:43.300 cost of sales before the acquisition 192 00:09:43.300 --> 00:09:46.700 of Tiffany by lvmh as 193 00:09:46.700 --> 00:09:49.600 far as the Watchers and juries division of 194 00:09:49.600 --> 00:09:52.200 lvmh is concern. It is a 195 00:09:52.200 --> 00:09:55.600 little bit more productive because about 10 196 00:09:55.600 --> 00:09:58.800 years ago inventories were representing 20% Less 197 00:09:58.800 --> 00:10:01.600 in terms of percentage to revenues and 198 00:10:01.600 --> 00:10:04.300 just before the acquisition is about 10% but you 199 00:10:04.300 --> 00:10:07.600 want to dissipate that there might be a reduction in inventory, which 200 00:10:07.600 --> 00:10:10.700 is very good news. Because if you anticipate 201 00:10:10.700 --> 00:10:13.300 that the company is going to grow the inventory level 202 00:10:13.300 --> 00:10:16.700 is going to grow and in the calculation, which I made at 203 00:10:16.700 --> 00:10:19.300 that time the growth in 204 00:10:19.300 --> 00:10:22.400 the working capital requirement was consuming as much 205 00:10:22.400 --> 00:10:25.400 cash as a capital expenditures, which 206 00:10:25.400 --> 00:10:27.400 is quite huge. So you understand that. 207 00:10:27.700 --> 00:10:30.400 A reduction in the inventory level by 208 00:10:30.400 --> 00:10:34.500 set 10% is a very interesting synergies in 209 00:10:34.500 --> 00:10:37.400 terms of valuation. I also consider that 210 00:10:37.400 --> 00:10:40.800 we are going to save one percent in capital expenditures 211 00:10:40.800 --> 00:10:43.700 because there will be synergies purchasing prices 212 00:10:43.700 --> 00:10:46.400 bargaining power against suppliers and 213 00:10:46.400 --> 00:10:49.500 so on so forth. It's not very optimistic figure. 214 00:10:50.300 --> 00:10:53.800 Now the last figure which is quite important to calculate if 215 00:10:53.800 --> 00:10:56.400 we want to now evaluate Tiffany is 216 00:10:56.400 --> 00:10:59.200 the weighted average cost of capital you remember 217 00:10:59.200 --> 00:11:02.300 that Tiffany standing alone had a walk 218 00:11:02.300 --> 00:11:05.400 of 11% as a consequence of a beta 219 00:11:05.400 --> 00:11:08.400 greater than 1.5. Now what 220 00:11:08.400 --> 00:11:11.400 is supposed to be the way the average cost of capital of 221 00:11:11.400 --> 00:11:15.400 Tiffany inside within the watches injuries 222 00:11:14.400 --> 00:11:17.200 division of lvmh by 223 00:11:17.200 --> 00:11:20.500 the way, what is a contribution of lvmh to 224 00:11:20.500 --> 00:11:22.200 the reduction in a walk? 225 00:11:23.200 --> 00:11:26.700 We have to answers theory and practice and 226 00:11:26.700 --> 00:11:29.500 Theory says there is no impact. Of course, there 227 00:11:29.500 --> 00:11:33.000 is an impact on the risk of the debt because as it 228 00:11:32.400 --> 00:11:35.500 is now part of a very big company is 229 00:11:35.500 --> 00:11:38.700 a that is less risky and you pay lower interest rate. 230 00:11:38.700 --> 00:11:41.300 No big deal, but the beta should be 231 00:11:41.300 --> 00:11:41.700 the same. 232 00:11:42.500 --> 00:11:45.300 In practice, what do companies do and 233 00:11:45.300 --> 00:11:48.500 what does lvmh do there is 234 00:11:48.500 --> 00:11:51.500 an individualized walk for the different 235 00:11:51.500 --> 00:11:54.600 divisions. This is exactly what is demonstrated when 236 00:11:54.600 --> 00:11:57.500 the company is communicating on a 237 00:11:57.500 --> 00:12:00.700 different walks deep ending on the different divisions and within the 238 00:12:00.700 --> 00:12:03.300 division. There is a walk which differs from 239 00:12:03.300 --> 00:12:06.300 one business to the other why because a systematic 240 00:12:06.300 --> 00:12:09.600 risk is different from one business from one brand 241 00:12:09.600 --> 00:12:10.100 to the other. 242 00:12:11.100 --> 00:12:14.700 So it's a beta of a company inside a portfolio 243 00:12:14.700 --> 00:12:17.200 of asset is the same at the beta of 244 00:12:17.200 --> 00:12:20.100 the company standing alone. There's no reason 245 00:12:20.100 --> 00:12:23.900 it should be changed. Now. Let's go back to our vmh 246 00:12:23.900 --> 00:12:26.900 parameters now focusing on Tiffany and 247 00:12:26.900 --> 00:12:29.500 let's make the calculation of the value of Tiffany. 248 00:12:30.100 --> 00:12:34.500 We put inventories of 40% to sales instead of 15% will 249 00:12:33.500 --> 00:12:36.300 reduce the capex by one percent. This is 250 00:12:36.300 --> 00:12:39.500 a bit marginal and we take the walk which is 8.8 which 251 00:12:39.500 --> 00:12:42.600 is the wax suggested by lvmh plan 252 00:12:42.600 --> 00:12:45.800 duration 10 years. This is what they are saying during the 253 00:12:45.800 --> 00:12:48.200 splend duration. We need to estimate the 254 00:12:48.200 --> 00:12:51.900 growth rate, which is not provided by the company. I decided 255 00:12:51.900 --> 00:12:54.400 to take 10% which is twice as much as 256 00:12:54.400 --> 00:12:57.800 the last growth rate before the acquisition. So 257 00:12:57.800 --> 00:13:00.400 I am boosting sales and more 258 00:13:00.400 --> 00:13:03.100 than what you suggested for the division as a whole. 259 00:13:03.100 --> 00:13:07.300 Of course, I take the long term growth rate of 2.5% which 260 00:13:07.300 --> 00:13:10.300 is suggested and communicated by lvmh 261 00:13:10.800 --> 00:13:13.200 that is very important ratio, which 262 00:13:13.200 --> 00:13:17.200 is a return on sales. We need to figure out the ebda 263 00:13:16.200 --> 00:13:19.700 as a percentage to revenues you remember 264 00:13:19.700 --> 00:13:22.800 it was 23 before the acquisition and today. 265 00:13:22.800 --> 00:13:25.500 It's about 23 to 24 for the 266 00:13:25.500 --> 00:13:28.900 division. So I take 23 the fundamental value 267 00:13:28.900 --> 00:13:31.200 of Tiffany using discounted cash 268 00:13:31.200 --> 00:13:34.500 flow method is 97 dollars. 269 00:13:35.300 --> 00:13:39.200 Nights far from 131.5 now 270 00:13:38.200 --> 00:13:42.500 the question is how do you justify 131.5 271 00:13:41.500 --> 00:13:44.500 dollars per share as 272 00:13:44.500 --> 00:13:48.000 an acquisition price and the associated Goodwill and 273 00:13:47.500 --> 00:13:50.700 brand figure in the balance sheet of lvmh. 274 00:13:51.600 --> 00:13:54.400 If we keep the same figures as before and 275 00:13:54.400 --> 00:13:57.300 we just change one which is ebitda to 276 00:13:57.300 --> 00:14:02.800 sales. It has to go up to 27.5% compared 277 00:14:01.800 --> 00:14:04.900 with 23. It shows 278 00:14:04.900 --> 00:14:08.300 an increase of about 4% which 279 00:14:07.300 --> 00:14:11.400 is I would say realistic but 280 00:14:10.400 --> 00:14:13.900 you remember that yes assumption 281 00:14:13.900 --> 00:14:17.300 is a significantly lower weighted 282 00:14:16.300 --> 00:14:19.900 average cost of capital. Basically. It 283 00:14:19.900 --> 00:14:22.800 means roughly the same beta as a Watchers 284 00:14:22.800 --> 00:14:25.500 and jurors division at lvmh 285 00:14:26.300 --> 00:14:29.500 Now if we keep the same beta 286 00:14:29.500 --> 00:14:33.400 and the same work of Tiffany within lvmh 287 00:14:32.400 --> 00:14:35.800 as when it was standing alone, which 288 00:14:35.800 --> 00:14:38.100 is 11% as a whack 289 00:14:38.100 --> 00:14:41.800 as a consequence of a beta of more than 1.5 then to 290 00:14:41.800 --> 00:14:44.600 justify the 131.5 dollars. 291 00:14:44.600 --> 00:14:47.400 We have to increase a bit from 292 00:14:47.400 --> 00:14:51.000 where it was 23 to when it 293 00:14:50.100 --> 00:14:53.200 should be 34% It's an increase 294 00:14:53.200 --> 00:14:56.300 by 11 percent and when you consider that 295 00:14:56.300 --> 00:14:59.500 the EBT to sales ratio for lvmh as 296 00:14:59.500 --> 00:15:02.900 a group is 29% you understand 297 00:15:02.900 --> 00:15:06.300 that this assumption is much less realistic. 298 00:15:05.300 --> 00:15:08.400 So at the end of the day as 299 00:15:08.400 --> 00:15:12.000 a company is eventually saved by the 300 00:15:11.800 --> 00:15:15.300 beta of Tiffany within 301 00:15:14.300 --> 00:15:17.200 lvmh as opposed to 302 00:15:17.200 --> 00:15:20.700 this is what in order to be good in business 303 00:15:20.700 --> 00:15:23.400 and accounting and financial accounting. You 304 00:15:23.400 --> 00:15:26.100 have to really understand the beta. 305 00:15:26.300 --> 00:15:28.000 and the financial Theory 306 00:15:28.800 --> 00:15:29.600 Thank you very much.