COTY
#So we do not have a complete view on that at this stage.
We should not forget that the two businesses are competing businesses.
And we have not been allowed access, from a legal point of view, in terms of the innovation pipeline.
So that's still to come.
Its [count-out] accounting actually.
So it's really now, we translate the chart of account of P&G to our chart of account, and that's the result of this.
So that's really fixed [extra] that we are [rotated by marketing furniture].
So no, the rationalization is not included in the run rate EPS or EBITDA numbers at this stage in the game.
Right now basically, the first thing we have to determine, what exactly we are going to rationalize, and what the ramification of that is.
So it is not specifically not included.
On the CapEx.
On the CapEx, I would say, <UNK>, your understanding is correct.
So the one-off costs exclude the CapEx impact.
No, the closing is scheduled for October of this year, right.
So yes.
So closing will be in FY17, yes.
You're looking the right way.
No, actually, that's not what we're saying in this slide.
In this slide, what we're saying is that we've ---+ on a pro forma basis, if you have the Coty business, the P&G carve-out business, plus the synergies, minus D&G and the Christina Aguilera, you increase EPS by 50% after year-four.
We are not speaking about growth rates, underlying improvement of the business.
We are not adding [ida machas].
We're not doing any of this.
We are only doing a mathematical exercise where we're saying we are Coty standalone.
Day-one the carve-out business from P&G will come, plus we will generate some synergies with the impact of the three factors into our current EPS.
That's all what we're saying.
Which is already, by the way, a pretty substantial increase in EPS.
But just to be clear, so organically, on the underlying business, I would not make any aggressive assumptions.
Because you have to realize that the same people which are doing the integration also have to manage the business, just to be crystal clear.
So this is a very complex transaction which has to be integrated over the next couple of years.
So it's the same people which are doing both.
So first on the $800 million, $900 million.
This is at closing.
So this is without the synergies, this is without the working capital synergies.
This is not ---+ when we receive the business, the pro forma free cash flow generation will more than double, day-one.
That's the way you should look at it.
And then you add the working capital synergies, and all the rest.
So now on Christina Aguilera and Dolce & Gabanna ---+ first, we have put in the S-4 a conservative assumption.
But at the end of the day, for the time being, we are not in the driving seat of that, so we need to wait until we see what happens on D&G and Christina Aguilera before we can draw any conclusion.
First point.
Second point, the $130 million ---+ this is not the ABGA.
The $130 million is the gross margin minus the brand investment, which is the NCP.
The cost structure attached to that is part of the synergies level that we have indicated.
So we have not provided this level of detail.
What we have said is that we will generate $780 million, and that this $780 million has a phase-in of 40%, 70%, 85% and 100%.
What you can assume is that the totality of the $380 million are going to materialize day-one.
Okay.
And the first year, as <UNK> has indicated and as I've indicated, we'll have to staff up the organization and stand up the organization.
You need to understand that, as <UNK> said, it is a carve-out.
So what does that mean.
This means that P&G is organized with a big shared service center called GBS.
We do not get any of this.
So from a back-up expansion, for instance, we don't get any person to close the books.
So we need to staff up and to set up our organization, in order to be able to close the books after month-one.
So that's one example amongst many others.
So I think the way you should look at it is that the $380 million are going to materialize year-one.
And then you're going to have a couple of investments that we need to do in order to be able to staff up the organization.
But the true way to look at it is that we are going to generate $780 million of synergies with 16% of the acquired revenues.
And 70% of that is going to materialize after year-two.
Right.
I think that concludes basically today's session (technical difficulty).
