Biglari Holdings- FY 2015 Annual Meeting

Note: Nothing should be taken as a direct quote. Some of the numbers may be wrong as it was difficult
to hear a few times. Unless otherwise indicated, Biglari is speaking.

1:07pm start- went through formalities regarding proposals and introducing directors
Pre Q&A Remarks
o Good idea to review history to see where we came from
o First slide, top part is an email from 2008 stress testing 10% decline in sales [its not
pretty]
o Current CEO was very concerned about the business
One of the main reasons for his resignation was the belief that company was
going to fail
o Steak n Shake (SnS) losing $100k/day, in violation of debt covenants
o Im self-made entrepreneur
Started first business with $15k
Parlayed into bigger and bigger sums
Phil & I decided to partner up and have always behaved entrepreneurially
o Other companies were not interested in taking over SnS
We offered them and other individuals generous pay packages
Made it clear that money was no concern
o SnS resurrected from ashes, now thriving
o Prior to our management, traffic declining faster than peers
After our management, growing faster than peers
o Minor changes not going to save SnS
10/10 restaurant veterans would have failed in turnaround
No time for analysis, needed entrepreneurs
o This was not an activist campaign that was successful
Activists not interested in, or many that are even capable of, running a company
and turning it around
We are entrepreneurs first, investors second
o We developed a value proposition that we first formed in our own minds
We presented the value prop during the proxy battle and were questioned
because our prices were higher than competitors
We had better quality but the value proposition was still lower because of
higher prices
o SnS started with $1.6mm of corporate cash in 2008, ended 2015 with $815 million of
cash [presents slide showing sources of cash: rights offering, debt, operating cash flow,
etc.]
o CBRL is our most significant investment
Without our pressure on the BOD, investment would have turned out much
differently
Most important change was a moratorium on new stores
We didnt have all the data but could see a productivity decline
We prompted management to reveal their return on new restaurant investment
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Showed their calculation in a filing

o Running their numbers using Damodarans method, return
would have been sub 4%
Big contention was whether you have to add back G&A
o If you add a couple stores maybe you dont need additional
G&A, but beyond that, you absolutely do
o Even without G&A, return would be only 9%
Beyond 2011 and 2015, CBRL opened 34 new stores costing $5 million a piece
Bet theyre not going too well on that
Dividend payout ratio has slowly creeped up, now over 100%
Investment a testament to holding company structure
Had we opened SnSs instead, wouldnt have made nearly as much
o All decisions we make with idea of increasing per share intrinsic value
If our interest was increasing managerial domain we would buy more whole
businesses, not partial stakes
o We dont use committees, consultants, etc. to assist with capital allocation
o We have 23k employees and only 5 at the holding company
Dont burden pursuit of value with bloated cost structure
o Ideally we buy great companies like First Guard [compliments First Guard and Ed
Campbell at every opportunity] but will get involved with turnaround situations
o We have a great capital structure
All debt is at subsidiaries
Pay a higher cost of debt but safer
o Have long term orientation
A lot of people talk about this but few have it
We think in terms of decades
Doesnt sit well with some, like those managing money for others
We look at minimum of 10-year period
Benchmark is S&P500
o Our stock performance has been very volatile
For a while the stock outperformed the business
Final analysis: We have outperformed S&P500 [starting from day current
management took over]
Q&A Begins
Q: Humane Society representative- Sounds like you have a remarkable story but we are
concerned with the way company sources eggs and chickens, using small cages. Small cages
cause high risk of salmonella and headline risk. Other companies moving away from caged hens.
o We respect your opinion but have strong differences
o We are guided solely but what customers want and what the law mandates
If we misjudge what customer wants, we will lose their business
Even if I agreed with you I wouldnt do it if customers dont demand it
o Phil: I think eventually everyone will be cage free

Q: Unknown- Chipotle has had a hard time recently. Have you learned anything about how
theyve handled their situation and are we protecting ourselves from the same risk? Also, why
are they still valued at 30X earnings?
o We have been concerned about foodborne illness for years
o There are very few risks that could cause a 20-30% decline in traffic- foodborne illness is
one
o Risk cant be completely eliminated but we try to avoid systemic problems
We dont source locally
Our sources audit the farmers and we are comforted by a robust auditing
process
They also go to the plant where it is washed
You can protect on the supply side and the store side
At the restaurant level we make sure incentives are aligned
o We have 3rd party audits and if we find critical violations you will
lose your bonus
o Customers trust us and we take this very seriously
o Everything at every company can be done better, we seek to improve
o We have over 20,000 employees and 500 units so issues will come up, but we guard
against them
o Phil: CMG has a 30 PE and SHAK has a huge multiple, but thats Mr. Market
The board of directors discusses risks like this
Q: Unknown shareholder since 2009- In the short term the market is a voting machine, in the
long term a weighing machine. My 14-year-old is interested in investing and he asks me why the
stock is where it is. My conclusion is that its the way BH has morphed with the Lion Fund. My IQ
is not 140; could you please go over how we got to where we are?
o We are focused on value not price
The price-to-value over the long term has less effect on returns than
compounding
$1 billion compounds to $66 billion at 15%/year
o If this price is only 50% of fair value then total compounding,
should that gap close, only increases to 17-18%
Focus should be on the value creation side, not price side
o If price doesnt reach value then we will continue to take action, say if the stock is less
than $500/share [later walks this back, saying you should not read anything into
$500/share]
o Read pages 615 and 616 of Security Analysis, 3 rd edition
o Last year we conducted a tender at a 14% premium
I think well make very good money at that level
o Phil: Since we took over, the stock has beaten the S&P
Q: same questioner continues- We want a short history lesson
o In 2008 the company had years of underperformance
We ran a proxy contest; 74% voted in our favor
Our plan was to make improvements but we underestimated shortfalls
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I debated with the board to take less money because the company could not
afford it
We paid vendors in stock
o If stock went to $0, what were we giving up?
This was not a situation where we could sit at the board level and pontificate
about capital allocation
o Once we turned SnS around, we realized we could use the company to augment value
o I had to make a decision about whether to raise money at the Lion Fund or move to the
holding company
In an ideal scenario we could have all the assets under one umbrella
So I decided to sell the Lion Fund for $1
o Later became clear for regulatory and financial reasons this
wasnt going to work
Selling it for $1 and buying it back for $1.6mm was a personal error
o When you run things entrepreneurially you test things out
A dual class structure would make things easier to explain
Doing things as we have invites criticism because its complicated
You can watch the chefs movements or you can just enjoy the meal
o Phil: We really should have an abridged version
Q: Long time shareholder- You did a tender offer at $420/share. In 13 you did a rights offering;
we issued shares for $250, and then bought back at $420. Why hold these shares in the Lion
Fund instead of at the hold co. because you will end up getting of our 15% return?
o You answered the last part yourself
o We need to figure out who were running the company for
Long-term likeminded shareholders
When we deal with the Ed Campbells, stability of ownership is extremely
important. Last year was a great example
A guy w/ no business skills, terrible ideas, and a small amount of stock
runs a proxy contest
o Not in the interest of long term shareholders
o We priced the tender at a pretty good spot because we came within a few thousand
shares of a full tender
This was luck
o Long term shareholders should welcome the price decline
o If we had put CBRL money in BH at the time, we would have done much worse
Tax liability on CBRL gain is a government loan
Our swap is even allowing us to borrow against the tax liability
o We will use all tools available
Q: Unknown- Is it your preference to buy on the open market or to tender for shares?
o Wouldnt you like to know
o Phil: without control we cant adhere to our mission
We become just another company managing quarter to quarter
Q: Humane Society representative again- Dont hurt the chickens plz
o [Gave my hand a break]

Q: Andrew from London- Is there any probability of the company going private, and is it possible
that you could move from the incentive agreement to an ownership payment system [i.e. paid
by increasing the value of the shares you own a la Warren Buffett]?
o We have long believed there are advantages to running a transparent company the SEC,
auditors, etc.
This also reduces our cost of debt
We get the advantages of being a public company with the private advantage of
control
o I have no qualms about copying great business people but any comparison between us
and Warren Buffett is doing a disservice to Mr. Buffett
Ive gotten more ideas from Sam Walton
If we were looking to copy, we wouldnt have bought an insurance company
with no float and own restaurants
The pricing philosophy of a Sam Walton or Henry Ford is much more applicable
to the restaurant business
We have taken ideas from a number of people
o Phil: Its odd to compare BH to Berkshire
Henry Singleton and Warren Buffett are great people to learn from, as is Buffett
o Sam Walton is very remarkable
Opens first store in Arkansas at age 44
1st year does $250k in sales and $30k in profit
10 years later Walmart is doing $44 million in sales
o Sears is doing ~$9 billion
In one story, there is a meeting of regional retail CEOs
One guy is doing $40 million in sales, another doing $100mm in sales
Each is asked what they think their sales will be in 10 years
o $40 million guy says $80 million, $100 million guy says $160
million
o Sam says $2 billion and everyone laughs
First he took out the local guys
Played it harder than anyone else
These days, sales/sq. ft. is $1100 for Costco and $700 for Sams club
Sams club is lagging
Goes to show how brutal the business is and how wonderful Waltons
achievement was
Q: same questioner continues- Please give me a more categorical answer to the going private
question.
o I articulated the benefits
Dual advantages exist, and theres no reason to modify that for the long run
Q: Unknown- Please explain the difference between depreciation and capital expenditures.
o Capital expenditures are low partly because we dont open new stores
o We do not defer maintenance capex
o When we took over there was no soul to the restaurant
We put on new paint and added music
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Youd visit a store and thered be an older couple in a booth whispering so they
werent heard throughout the restaurant
Some units booths were taped up because the co. had deferred capex
We dont have this problem now
o Next year we are going to be redoing 150 parking lots, 75 awnings, etc.
o We have a culture of trying to save money
o Cutting capex when we took over would have bankrupted the company
o At the Western Sizzlin in Parkersburg West Virginia, summer of 14, the trust that owned
the restaurant was bankrupt
Restaurant was up for auction and we sent a guy down to bid
Bid $800k, ultimately bought it for $1 million
Our CFO found a bank to lend to them at 3.5%
o Hence the Western Sizzlin revolver in the 10k
o We told CFO to use cash flows to pay down debt
We ended up putting in another $100k in capex
This year we did $250k in profit and will do about $300k next year
o Phil: We only open a new store to seed an area
France, Santa Monica, NYC, Italy, Spain
Q: Unknown- I recently reread Setting the Table [book by Danny Meyer, founder of Shake Shack]
and the author cites SnS as an inspiration. Where do you see the industry heading?
o There are two ways of achieving a high ROIC
One is a brand with high equity and no substitute
If there is a close substitute it becomes a commodity and you must be the low
cost producer
Many brands think they have more equity than they do
For SnS to have a competitive advantage we need a far superior cost
structure
First Guard markets directly
o No agents means a cost advantage
o SnS is a brand for everyone
There are a number of brands going after a higher demographic
Shake Shack has a stated ambition to reach a unit count on par with ours
We have ambitions for much higher unit counts
I wrote that we wanted 1,000 franchised units
o We have 934 to go
o At our current pace, Phil will be 140 years old by then
o We need to pick up the pace
Q: Unknown- Weve invested heavily in franchising. Where are we in the process of reaching
1,000 units?
o We have a long way to go but the question now is are we profitable on franchising
Answer is yes
o We plowed $33mm into franchising over 5 years
In 2006 franchising revenue was $4 million, five years later was $4 million
This year we will go north of $16 million

We should have 50% margins on the business

Thats a reasonable return that should increase over time
Q: Unknown- Minimum wage could be raised to $15/hour. Does counter service model at
competitors put us at a disadvantage?
o We do have the counter service model at all of our overseas units
o If minimum wage goes up, we will not be affected alone and well manage better than
others in the industry
Q: Robin- What are your thoughts on AIRT and ISIG, since it seemed like a revenge investment?
o People look good from afar but you see the imperfections up close
We saw the negative imperfections of that individual [Nick Swenson]
His attacks on BH were fallacious so we had reason to believe that he was
holding back the value of those two other entities
o Phil: We bought stock during the proxy battle but not because of the proxy battle
Q: Sid from Richmond- Now that you have control, it seems like you will want to buy more stock
back at these prices. I tell my friends about this stock and Im afraid you might miss the boat.
o Dont worry about what your friends say
o I am properly incentivized
Performance is linked to fees
o By the way, First Guard is doing outstanding
Fabulous management, serving a niche within a niche, and hitting it out of the
park
We assumed more of the business by ceding less to reinsurers
Reinsurers really love Ed
They were even saying that we should cancel the treaties
They were happy to take our business but they knew it was best for the
company
We will do better than $20 million of written premiums
o SnS will have record earnings
o We expect Maxim to have positive earnings going into 2017
Q: Matthew, 13 years old, shareholder since Tuesday- Why do you need to take a 25% fee?
o The 25% fee is a performance fee
It is meritocratic
o Over the next 10-20 years, the stock market is not going to do 6% annualized
In a 0% interest rate environment, 6% is very high
If we can exceed 6%, that should be allocated fairly
o Charlie Munger had a 0% hurdle and took 1/3 rd of the profits
o Other managers take 1-2% of AUM and 20% of profits with no hurdle
A 1-2% management fee would be $8-$16mm just for showing up
o I set the Lion Fund up when I was 22
I didnt want to be paid if I didnt make any money
How would we want to be treated if the roles were reversed
Q: Mike David from Boston- Owned the stock for a long time. You say that the holding company
causes diversification, but isnt the money allocated to the tender putting all of the eggs in one
basket?

Even SnS has been diversifying

Franchising has helped diversify
Also licensing revenue
o Over time we will buy more companies which will diversify us
o Over the next decade, cash flows could exceed $1/2 billion
o We dont agree with the accounting but we have to follow it
Q: Unknown- Please expand on franchising.
o We spent $16.9 million in the prior year
o We expect costs to go down this year and revenues to go up
o We will generate a profit even though foreign franchisees will generate a loss until we
get to 50-60 units
o Infrastructure is in place for foreign and domestic units
o We improved on unit costs for a SnS
o We viewed previous expenses as investments
Q: same questioner continues- How fast can we grow and what ROIC are franchisees achieving?
o We have several [7? couldnt hear] international opening in the next 8 weeks
o Our domestic pace is better this year than last
We could have opened more units if we accepted all applicants
o Our French unit is doing over $3 million in sales
Netting $400k, cost $1.2 million
o Average unit volume growing at SnS
o Our trouble has been on the investment side denominator [of ROIC] enlarges quickly
We have reduced total expenditure to $1.7mm going forward
o The top quartile does 2.5 million of unit volume and profit north of $500k
Q: Unknown- If BHs price increases, do you get a fee on shares held in the Lion Fund?
o Yes, but the BH stock is not treated in isolation, apart from the other holdings
Q: Unknown- You stated that you expect Maxim to be profitable by the end of 16, where is
growth projected to come from?
o We bought the Maxim brand, it just came with an interesting magazine asset
We could have sold the magazine for more than we paid for the entire company
o Weve moved to a more sophisticated brand
We include articles not just on spending money but also on making money
o December newsstand sales of 102,000, higher than any mens magazine in any month in
2015
o We are trying to develop a licensing business
Will operate the magazine so long as its at an expense ratio that competitors
cant match
o Maxim expenses in the past dont reflect expenses going forward
Could be down 50% this year
Weve compressed five years of turnaround expenses into two years
o Total capital outlay is $39 million pretax, $25 million post tax
This is an important advantage of the holding company structure
We could sell the asset for $20 million in a second
Netting those out should give you an example of the downside
o

Nothing is guaranteed but these are my expectations

Every step they said we were crazy: $15,000 business to the Lion Fund to Friendlys Ice
Cream to Western Sizzlin to SnS
One analyst told us SnS would take $200 million to fix
You look like a genius after the fact but during you look like a goat
Q: Unknown- My retirement depends on this investment. You mentioned $500/share, what was
the significance of that?
o If the security trades at a material discount, we will continue to communicate the value
of the business directly
o If I find a huge value discrepancy, we will take advantage
Q: Unknown- Can you give us hard data on Maxim so we can feel comfortable with the
projections?
o Revenue minus expenses is what you need
o There is going to be a lag effect between the customer response and the advertiser
response
o We used to assemble events at the Super Bowl and have 1,000-3,000 people attend
Today this is licensed out and we are guaranteed a profit
o I could give you a number of facts that may misguide you
o Theres still a lot that we plan to do- we need to do it
Q: same questioner continues- Two years ago you said it would take three years. What margin
profile do you think it will stabilize at?
o Phil: Youre asking detailed questions about an ongoing process and its very hard to say
Its in process and there are reasons to be optimistic
We believe the probabilities have changed to make it more likely that its a
success
o We do not know what the margins will look like
Moving the needle at BH may not occur in the early phases
Q: John, an individual investor- You talk a lot about cutting costs, but were in a gilded room [St.
Regis Hotel, NYC], and your annual report stock is extremely heavy.
o We dont have an investor relations person who could easily cost $250,000+
We have five people at the holding company
We do this once a year, lets not meet in a dungeon
o Maybe we should put together a better annual report
We are a publishing company
One of the reasons we havent is because it would require more of my time
o There are things we could get into about saving pennies but you need to look at the
bigger picture
We have a brand
If we are off on the freezer temperature by one degree, we lose one milkshake
out of a tube of 37
That alone costs us $1 million
o We have no M&A department, no general counsel, etc.
Q: Unknown- Why is the front of the report the same as Berkshires?
o
o

On the idea of choosing a name [referring to Biglari Holdings initials and Berkshire
Hathaways initials], there are only so many names to pick
Enterprises, Holdings, etc.
I was given Biglari, I cant help that
o No one went out and said, can you copy Berkshires report
Similarities are because of simplicity
o On the substantive matters we are different than Berkshire
What we buy, how we run companies, etc.
o Singleton started in 1960, in 10 years he was doing $1.6 billion in sales
Assets grew 100%/year, equity compounded at 94%
He also was concerned with brand building
Started all company names with Teledyne
We will take ideas from everyone just like Singleton did
Singleton took the idea of a financing arm from GE
Q: Unknown- I get the branding. I get the lifestyle. Everything is great, but I bought a Maxim and
left it out on my counter. My wife walked by and asked, what are you reading?? I would like to
hear more about where we could be in five years and also about the effects of the minimum
wage increase in New York on the SnS here.
o The NYC restaurant is not really comparable to others
We engaged in a lot of price experimentation so the average price is much
higher
o Drive though at SnS has grown same store sales 8%
Now 41% of revenue
Used to be in the low 30%s in 2007
Margin is seven points better on drive through
No plates/dishwasher, etc.
o Used to have average sales of $1.6 million, $289,000 contribution margin on stores
Now do $1.9 million of average sales, $320,000 of contribution margin
Margins went from 18% to 17%
o We are not trying to raise prices
Double steak burger, fries, and drink at same price as 16 years ago
o Our branding/reputation increases when we acquire something like First Guard
You want to win your first two hands at poker to set your table image
How many acquired companies increase earnings 50% the next year?
Usually you acquire and find something unpleasant
o Great business people can read through the nonsense
People get jealous of success and they create rumor
The press doesnt care, it wants to make a story
We plan to remain disciplined and create value
Q: What do you say about critics who think your ego gets in the way?
o Humility has never been my strong suit
o We dont live in fantasy land, we live in Biglari land
We see success as success and failure as failure
We try to arrive at the truth
o

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We have made mistakes, I have made mistakes

Products weve tried
Marketing, Red Velvet shakes
o Times can be hard
Raising money from my pediatrician back in San Antonio
o The reason Im here sixteen years later is because I always thought about the downside
This is why we have no debt at the holding company
We have to avoid the catastrophes
Especially with a concentrated portfolio
o Phil: When you manage the money of your friends and family, father in law,
pediatrician, youre motivated
Sardar has always been motivated
Q: Unknown- What do you think of Trumps campaign?
o Next question
Q: Unknown- Where do we stand on CBRL board representation?
o We are not on the board
o Last year I said they should save $50 million in costs
Six days later they announced a $50 million cost cutting program
Maybe I should say $100 million next time
o Holler and Dash is a new CBRL concept
Its a new brand with a new delivery system trying to reach a new audience
Bureaucrats trying to do an entrepreneurs job
This will fail miserably
While distracted on this concept, CBRL traffic fell 2.8%
o Between 05 and 11, traffic is down 15%
Is flat now
o To think CBRL will succeed at an entrepreneurial venture is the height of arrogance
How much money has been poured into this hole?
A bureaucratic organization needs to analyze and re-analyze
o Phil: Its very concerning; even the name; I dont get it
I get biscuits, grits, but I dont see the brand/brand equity
Its a bad signal
We own 20% of the company, we want them to do well
Shows a lack of trust in the brand
We met the CBRL co-founder Denny Evins who died recently
Bureaucracy can be useful in some places like the military
Not in startups
o When we took over SnS, marketing came in with a 200-page PowerPoint about why
price wasnt an issue
I outlawed PowerPoint
You just go into the restaurant and talk to the manager
This dreadful CBRL behavior might cause someone to launch a proxy fight
Q: Unknown- Are you going to try to instate a dual class structure?
o We have said we like it and will remove the cap on compensation
o

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Just because we havent done these things doesnt mean theyre off the table
o Phil: Control issue is over
At this point it would be an acquisition currency
We know when to not use equity as an acquisition currency
Q: Unknown- If you removed the pay cap would it make the Lion Fund and holding company the
same?
o Yes, they would be at parity
Q: Unknown- Is there a way to avoid paying the deferred tax liability on CBRL?
o We look at the tax liability as an asset
The value will never equal the liability
o The BH stock we own in the Lion Fund has no liability
We do not pay tax on those gains
o We used a prepaid agreement
The dividends from shares covered by the swap are taxed at the full effective
rate
Q: Unknown- I understand the reasons for the licensing agreement in the past but if it didnt
exist today, would you need to create it?
o Licensing agreement is not about control
o Now that we do have control, however, the risk may not be there anymore
o It is on the table
Q: Unknown- I am impressed with Chick-Fil-A. They have a lot of events like meetup nights with
high school kids and middle school kids.
o We can learn from good competitors like that one
I hope the CFO is taking notes in the back
Q: Matthew Goodman- You talked about refranchising in the past. With 3G working its magic on
Burger King, do you have any new thoughts?
o We favor company operated stores because we set strategic direction
o Franchisees are unable to make the argument that we have conflicting interest [due to
franchisee fees as % of revenue]
o Our average volume went from 1.4 million to 1.9 million
If we move to 2.5 million, the amount of cash flow dropping through is
enormous
If we move up 400,000 550,000, were talking $70 million flowing through
If we refranchise we get $44 million, but theres a cost to that
o Add the after-tax dollars from selling the stores to the
franchisees and its still not worth it
Q: Unknown- Why did the number of employees drop by 1,000 from the transition 10K to the FY
15 10K?
o Could be seasonal, could be Maxim, could be many things
o Nothing really analyzable about whats going on there
o There was also a company initiative to reduce full time employees that may have had an
impact
o Stores with lower turnover in the top quartile are experiencing 8% same store sales
There is tremendous value to be gained by lowering turnover
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We are focused on fixing this

Q: Unknown- Please talk about First Guard.
o Owner operators of trucking rigs/trailers contract with a trucking company
Trucking company buys insurance for the contents
First Guard insures the tractor/trailer for owner operator
o We have pretty good market share
Progressive is another direct underwriter but we are a pure direct underwriter
o We also insure non-trucking liability
This would be physical damage to the tractor/trailer when the owner is not
working on a contract
Think of this as the following situation: Its the weekend and the trucker takes
his rig to church. On the way there is an accident, and he injures someone else
o We had 13,500 accounts two years ago, and are now at 14,500
o 2009 combined ratio was 69.4
This is analogous to SnSs very low food costs in 2006 of 22.6%
Margins can expand for the wrong reasons
SnS prices were high and quality was low
Truckers werent driving their rigs under contract but hadnt canceled the policy
Now we are hitting record earnings with normalized margins
Q: Unknown- Have you read any good books? I read Tales of National Indemnity No bad risk,
just bad rates.
o We have the lowest cost structure and maybe the best underwriting
We should continue to gain business but not by chasing it
o I have received five Singleton books in the last two years
o I am looking forward to Ed Thorps [author of Beat the Dealer] new book
o Phil: Recently finished Richard Thalers Misbehaving
On behavioral economics
My dissertation at Ohio State was behavioral related
I used to read a lot of psychology and it turns out thats mainstream
today
Q: Joe, individual investor- I assume you looked at multiple types of transactions: tender,
privately negotiated, etc. for the share repurchase. What were those internal conversations
like?
o I would point you to the tender documents and you will see what the board reviewed
Q: Unknown- I searched through all of EDGAR and couldnt find another company that used the
term net outstanding shares for financial reporting purposes. No other company uses that
terminology, so what share count should we use to analyze BH?
o We follow GAAP and tell you what we would use
o What we use is in the slides
Q: Unknown- What Maxim assets do you own? The magazine is printed in 100 countries; how
does that work?
o We have the rights to a lot of countries
o We use about 10 international publishers
In Costa Rica we dont publish but can protect the brand
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o Non-publishing revenue is growing quite quickly

[Left at 5:15, meeting likely went until 6pm]

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