One more comment on Fire tail point about capital management of...

One more comment on Fire tail point about capital management of DMP. As I said before debt liability increased to fund store investments directly and M&A. In Japan from my info they have around 300 corporate stores. It cost about 0.5M to set up a store. If DMP decide to do so, I am not saying they are going to do it, it gives 150M to reduce debt by transferring to franchisees. I am not sure how many other corporate stores in DMP books.
Also if DMP capital management is weak as per Fat tail, for argument sake DMP can stop expansion of corporate stores and M&A for 4 yrs. That will increase their cash balance by $500m+, almost wiping out the liabilities in the BS. For sure growth rate will be down to small % increases on same stores. It will not face increase interest cost expected and most likely save $30m on interest they are paying now. If business remains the same NPT as now with low growth, 2025 restructuring savings, material inflation savings, interest savings alone will take eps to 2.25 to 2.5 range. At that stage DMP BS without debt, operating in a consumer service industry , investors will be prepared to go back to 25 pe easily. We are talking about $60 SP range. On top of it, Japanese decline is arrested over next 12 months and Australia &Germany keeps growing at moderate 3% , for next 5 years, we will be looking around $70 in no time, like MS set the target price of $68 even after the release of trading update last week.
The key is turn around in Japan, not the capital management Fat tail had mentioned. That is not an issue, which can be managed in many ways when you have a good free cash flow available in excess of your capital requirement.