From Story to Numbers: The Steps. — [Sep Loenip srr breton nape ana | nee a an ane a I ‘Sep2 fete rae loo Hagan pea nd pene sep) Conn ang na avr faa “Ze penta masts own easn ow an Oy bane ore sre Step 1: Survey the landscape EE o Every valuation starts with a narrative, a story that you see unfolding for your company in the future. In developing this narrative, you will be making assessments of a Your company (its products, its management and its history. 1p The market or markets that you see it growing in. 1p The competition it faces and will face. 1D The macro environment in whiLow Growth The Auto Business Low Margins (ERIS BUSISIRSIEBIE High & Increasing Reinvestment bissisisWhat makes Ferrari different? ET Ferrari: Geogrophicl Soles (2014) Ferrari sold only 7.255, cars inal of 2014 _grown very litle in the last decade & have been stable Ferrari ad profit ‘margin of 182% inthe Ferrati has not invested ‘95h percentile, partly in ew plants. because ofits high prices ‘and partly because it spends litle on advertising. Step 2: Create a narrative for the future | © Every valuation starts with a narrative, a story that you see unfolding for your company in the future. © In developing this narrative, you will be making assessments of your company (its products, its management), the market or markets that you see it growing in, the competition it faces and will face and the macro environment in which it operates. 1a Rule 1: Keep it simple. 13 Rule 2: Keep it focused.