Question-and-Answer Session
Operator
The floor is now open for questions. If you have a question, you simply press the star (*) key, followed by the digit 1 on your touchtone telephone. Your questions will be taken in the order in which they were received. To ensure that everyone has the opportunity to ask their questions, we will limit each person to one question and a related follow-up. Time permitting, we will return to you for additional questions. Just cue up again, by pressing the *1.
Our first question, today, comes from the line of Bill Schmitz, with Deutsche Bank
Bill Schmitz – Deutsche Bank
Can you just talk about what some of the underlying volume assumptions are to get to that 12% to 13% operating margin? As we all know, there is still a pretty big fixed-cost element. I think the margins are pretty contingent on some sort of volume growth. Just a question, not related to that, but can you talk about what's going on with the ownership structure and some of the registered B shares that are becoming A shares, now?
Unidentified Company Representative
I'll answer the second question, first. When there are B shareholders who wish to sell shares, they automatically convert to A.
Bill Schmitz – Deutsche Bank
Okay, but they're definitely 12.5% of the float, is that right? That's been registered?
Unidentified Company Representative
We can give you the exact number. I am really not certain what the total float is of the B shares, versus the total outstanding shares. The only B shareholders are original issuers in the Lauder family. Those are only B if they remain with the shareholders, of the shareholders agreement. If they are sold out, they are in A shares.
Bill Schmitz – Deutsche Bank
Okay, that's great. Thank you.
Unidentified Company Representative
They're not converted. The B shares, when sold, all automatically become A, except if they're sold in trust to the signers of the shareholders' agreement.
Bill Schmitz – Deutsche Bank
Okay, great thank you. That's a good clarification.
Fabrizio Freda – President, COO
This is Fabrizio. To answer your second question, now. Predicting the markets in this field is very difficult. Clearly, we didn't feel we could predict the market in the current volatility, especially in 2010; it's a too high-risk prediction. That is why I can share what our assumptions are in the numbers, which is not necessarily a prediction. We assume that 2010, the global market will be about flat. Then, we assume that the global market, as of 2011, will start growing again, between 2% and 5% per year. Those are our assumptions, today.
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