[January 09, 2013] |
|
Sodexo Announces 7.4% Increase in Revenues for First Quarter Fiscal 2013
ISSY-LES-MOULINEAUX, France --(Business Wire)--
Regulatory News:
Sodexo (PARIS:SW) (OTCBB:SDXAY) (NYSE Euronext Paris FR 0000121220-OTC:
SDXAY), global leader in Quality of Life services, today announced
revenues for the first quarter of Fiscal 2013, ended November 30, 2012.
Breakdown of revenues by activity and geographic zone
Revenues
in millions of euro
|
|
|
|
Q1 Fiscal 2013
|
|
|
|
Q1 Fiscal 2012
|
|
|
|
Organic growth (1)
|
|
|
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Organic growth excluding Rugby
(2)
|
|
|
|
Currency impact (3)
|
|
|
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Acquisitions (4)
|
|
|
|
Total change
|
North America
|
|
|
|
1,935
|
|
|
|
1,771
|
|
|
|
+ 0.6%
|
|
|
|
|
|
|
|
+ 7.3%
|
|
|
|
+ 1.4%
|
|
|
|
+ 9.3%
|
Continental Europe
|
|
|
|
1,519
|
|
|
|
1,466
|
|
|
|
+ 2.0%
|
|
|
|
|
|
|
|
+ 0.8%
|
|
|
|
+ 0.8%
|
|
|
|
+ 3.6%
|
Rest of the World (Latin America, Africa, Middle East,
Asia, Australia and Remote Sites)
|
|
|
|
949
|
|
|
|
847
|
|
|
|
+ 8.6%
|
|
|
|
|
|
|
|
+ 3.5%
|
|
|
|
+ 0.1%
|
|
|
|
+ 12.2%
|
UK and Ireland
|
|
|
|
369
|
|
|
|
357
|
|
|
|
- 7.3%
|
|
|
|
+ 8.5%
|
|
|
|
+ 7.3%
|
|
|
|
+ 3.1%
|
|
|
|
+ 3.1%
|
Total On-site Services
|
|
|
|
4,772
|
|
|
|
4,441
|
|
|
|
+ 1.9%
|
|
|
|
+ 3.2%
|
|
|
|
+ 4.4%
|
|
|
|
+ 1.1%
|
|
|
|
+ 7.4%
|
Benefits and Rewards Services*
|
|
|
|
183
|
|
|
|
175
|
|
|
|
+ 6.7%
|
|
|
|
|
|
|
|
- 3.2%
|
|
|
|
+ 0.7%
|
|
|
|
+ 4.2%
|
Intra-group eliminations
|
|
|
|
(3)
|
|
|
|
(4)
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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TOTAL
|
|
|
|
4,952
|
|
|
|
4,612
|
|
|
|
+ 2.1%
|
|
|
|
+ 3.3%
|
|
|
|
+ 4.2%
|
|
|
|
+ 1.1%
|
|
|
|
+ 7.4%
|
(1) Organic growth: increase in revenues at constant scope
and exchange rates
(2) Organic growth excluding the positive impact of € 52
million related to the Rugby World Cup in first quarter of Fiscal 2012
(3) Principal changes in exchange rates are detailed in
Appendix 2 (page 12)
(4) Acquisitions: Roth Bros (USA), facilities management
activities of Atkins (UK), Lenôtre (France) and Servi-Bonos in Benefits
and Rewards Services (Mexico).
Commenting on the figures,Sodexo CEO Michel Landel said:
"The relevance of our integrated Quality of Life services offer, our
leadership in emerging markets and the breadth of our global network
have continued to drive Sodexo's growth during the first quarter. With
these strengths, we are confident in our ability to seize growth
opportunities in our markets, even if in the short term Sodexo's organic
growth is likely to be modest given the current economic environment,
particularly in Europe."
Organic growth analysis
in millions of euro
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|
|
|
1st Quarter Fiscal 2013
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|
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1st Quarter Fiscal 2012
|
|
|
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Organic growth
|
|
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Organic growth excluding Rugby
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Corporate
|
|
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2,449
|
|
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|
2,233
|
|
|
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+ 4.2%
|
|
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+ 6.7%
|
Health Care and Seniors
|
|
|
|
1,091
|
|
|
|
1,047
|
|
|
|
- 1.0%
|
|
|
|
|
Education
|
|
|
|
1,232
|
|
|
|
1,161
|
|
|
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+ 0.2%
|
|
|
|
|
Total On-site Services
|
|
|
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4,772
|
|
|
|
4,441
|
|
|
|
+ 1.9%
|
|
|
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+ 3.2%
|
Benefits and Rewards Services
|
|
|
|
183
|
|
|
|
175
|
|
|
|
+ 6.7%
|
|
|
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Eliminations
|
|
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(3)
|
|
|
|
(4)
|
|
|
|
|
|
|
|
|
TOTAL
|
|
|
|
4,952
|
|
|
|
4,612
|
|
|
|
+ 2.1%
|
|
|
|
+ 3.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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On-site Services
Organic growth in On-site Services was + 1.9%, or + 3.2% excluding the
impact of the Rugby World Cup contract, since this first quarter
compares with a first quarter of Fiscal 2012 that included 52 million
euro of revenues from this hospitality contract.
Organic growth in Corporate of + 4.2% during the first quarter of
Fiscal 2013, or + 6.7% excluding the impact of the Rugby World Cup,
resulted from two main positive elements:
- Increased demand for integrated services contracts from companies in
North America and Europe,
- Sodexo's solid rate of development in the Rest of the World
(especially in Latin America and in Remote Sites) despite some signs of
slower economic activity in several countries since last summer.
The 1% decline in revenues in Health Care and Seniors is
essentially due to a soft client retention rate in Fiscal 2012. However,
since the beginning of this fiscal year, Sodexo teams have been awarded
some significant new contracts, particularly in the U.S., which should
contribute to the acceleration of growth in this segment over the next
18 months.
Organic growth of + 0.2% in Education mainly reflects increased
selectivity when approaching public sector clients.
Benefits and Rewards Services
Organic revenue growth was + 6.7%, a level close to that of Fiscal 2012,
again a result of Sodexo's strong position in Latin America.
Analysis of On-site Services organic growth
North America
Revenues
millions of euro
|
|
|
|
1st Quarter Fiscal 2013
|
|
|
|
1st Quarter Fiscal 2012
|
|
|
|
Organic growth
|
Corporate
|
|
|
|
415
|
|
|
|
345
|
|
|
|
+ 5.6%
|
Health Care and Seniors
|
|
|
|
628
|
|
|
|
603
|
|
|
|
- 2.8%
|
Education
|
|
|
|
892
|
|
|
|
823
|
|
|
|
+ 0.9%
|
TOTAL
|
|
|
|
1,935
|
|
|
|
1,771
|
|
|
|
+ 0.6%
|
-
Organic growth of + 5.6% in Corporate remained solid. This
performance results mainly from success in extending facilities
management services for clients that include General Electric, the
contribution of new contracts, including the prestigious Circuit of
the Americas, home of Formula 1 U.S. Grand Prix, as well as continued
favorable Remote Sites development in Canada.
Recent successes include renewal and expansion of Sodexo's global
contract with Procter & Gamble (43 services).
-
In Health Care and Seniors, revenues registered an organic
decline of - 2.8%. Virtually all of this decline for the quarter
reflects the loss a year ago of the Ascension Health contract.
In contrast, new business awarded to Sodexo since the beginning of
Fiscal 2013 clearly confirms the relevance of Sodexo's offer and
prospects for growth over the medium term. New wins include the signing
of a major contract with one of the largest U.S. retirement home chains,
HCR ManorCare (290 retirement homes in 32 states and nearly 40,000
residents for annual revenues of USD 220 million once the contract is
fully operational). Other recently signed contracts include Health
Corporation of America (HCA) East Florida (9 hospitals), LA County (2
sites at UCLA Medical Center in California) and Ochsner Medical Center
(Louisiana).
-
In Education, organic growth was + 0.9%. This reflects reduced
spending by students in schools and universities and lower activity at
university stadiums, as well as the temporary closure of more than 250
East Coast schools in the wake of Hurricane Sandy last November.
Continental Europe
Revenues
millions of euro
|
|
|
|
1st Quarter Fiscal 2013
|
|
|
|
1st Quarter Fiscal 2012
|
|
|
|
Organic growth
|
Corporate
|
|
|
|
896
|
|
|
|
848
|
|
|
|
+ 3.3%
|
Health Care and Seniors
|
|
|
|
353
|
|
|
|
351
|
|
|
|
+ 0.1%
|
Education
|
|
|
|
270
|
|
|
|
267
|
|
|
|
+ 0.6%
|
TOTAL
|
|
|
|
1,519
|
|
|
|
1,466
|
|
|
|
+ 2.0%
|
-
Organic growth in Corporate was + 3.3%, a slightly higher rate
than that achieved in Fiscal 2012. This performance is largely
explained by the roll out of contracts with a significant facilities
management component, such as for Deutsche Telekom (News - Alert) in Germany, Rusal
and Gazprom in Russia and Eli Lilly in several countries. In France,
the level of activity reflected the opening of a site in Nantes as
well as additional services for the Ministry of Justice. In contrast,
foodservices activity was generally weak as a result of lower
patronage, a decrease in the average check size and a reduction in
catering services. Recent successes included DNB (Norway), the renewal
of the KLM contract in the Netherlands and a new contract extension
with Deutsche Telekom (T-Mobile (News - Alert)) in Germany.
-
In Health Care and Seniors, organic revenue growth was + 0.1%.
Satisfactory comparable unit growth, especially in France, was offset
by the effects of weak prior year business development as well as a
more selective client approach in Southern Europe. Sodexo recently won
new contracts such as Nouvelles Cliniques Nantaises (France) and
Fruängsgården, Stockholm (Sweden).
-
In Education, organic growth in revenues is + 0.6%. In Spain
and Italy particularly, comparable unit growth was modest as a result
of pressures on school budgets that reduced service levels as well as
selectivity in new business development. Sodexo teams recently won
contracts that include the City of Fonte Nuova (Italy), Darussafaka
Okul, Istanbul (Turkey), and Ensemble Scolaire des Recollets (Longwy)
in France.
Rest of the World
(Latin America, Africa, Middle East, Asia, Australia and Remote Sites)
Revenues
millions of euro
|
|
|
|
1st Quarter Fiscal 2013
|
|
|
|
1st Quarter Fiscal 2012
|
|
|
|
Organic growth
|
Corporate
|
|
|
|
875
|
|
|
|
773
|
|
|
|
+ 9.8%
|
Health Care and Seniors
|
|
|
|
42
|
|
|
|
38
|
|
|
|
+ 7.8%
|
Education
|
|
|
|
32
|
|
|
|
36
|
|
|
|
- 17%
|
TOTAL
|
|
|
|
949
|
|
|
|
847
|
|
|
|
+ 8.6%
|
-
Organic growth in Corporate remains high at + 9.8%, driven by
Sodexo's strong performance in the mining sector in Australia and
Latin America, despite reductions in scope of certain mining contracts
that progressed from the construction to the operations phase in
Asia-Pacific. Signs of deceleration of industrial activity were
particularly evident in Brazil, India and more recently in China.
However, new business development remained solid, with Sodexo winning
numerous contracts, including AstraZeneca (China), Australian
Submarine Corporation (Australia), Electrolux (Brazil), Pacific
Rubiales Energy (Colombia) and Total E&P (Congo).
-
In addition, Sodexo will provide postal support (collection,
transportation and delivery of letters and parcels) in partnership
with the French Postal services for 19,000 people deployed on French
military bases abroad. This innovative project leverages Sodexo's
on-site services expertise in extreme environments.
-
Health Care and Seniors continues to grow in Asia and
Latin America with several new contract awards, including Renmin
University Hospital Wuhan (China). The decline in Education
(representing only 3% of Rest of the World revenues) results from the
non-renewal of a large public contract in Chile.
UK and Ireland
Revenues
millions of euro
|
|
|
|
1st Quarter Fiscal 2013
|
|
|
|
1st Quarter Fiscal 2012
|
|
|
|
Organic growth
|
|
|
|
Organic growth excluding Rugby
|
Corporate
|
|
|
|
263
|
|
|
|
266
|
|
|
|
- 10.5%
|
|
|
|
+ 11.1%
|
Health Care and Seniors
|
|
|
|
68
|
|
|
|
56
|
|
|
|
+ 5.3%
|
|
|
|
|
Education
|
|
|
|
38
|
|
|
|
35
|
|
|
|
- 2.9%
|
|
|
|
|
TOTAL
|
|
|
|
369
|
|
|
|
357
|
|
|
|
- 7.3%
|
|
|
|
+ 8.5%
|
-
In Corporate, 1st Quarter Fiscal 2013 revenues
increased + 11.1% (excluding rugby)1, with approximately
half contributed from services during the Paralympic Games in London
in early September 2012 (around 13 million euro in revenues). The
balance of this solid progress results from the ramp up of several
integrated services contracts such as Unilever, Astra Zeneca and Eli
Lilly.
-
In Health Care and Seniors, organic growth of + 5.3% primarily
reflects the provision of new services at a large university hospital
(North Staffordshire University Hospital). There also has been a
recent recovery in business development, for example with the signing
of a contract with Brighton and Sussex University Hospital.
-
In Education, revenues registered an organic decline of - 2.9%,
reflecting continued selectivity in approaching public sector
contracts. Recent successes include St. Andrews College, Dublin
(Ireland).
Benefits and Rewards Services
Issue volume
millions of euro
|
|
|
|
1st Quarter Fiscal 2013
|
|
|
|
1st Quarter Fiscal 2012
|
|
|
|
Organic growth
|
Latin America
|
|
|
|
1,855
|
|
|
|
1,643
|
|
|
|
+ 18.4%
|
Europe and Asia
|
|
|
|
2,103
|
|
|
|
2,016
|
|
|
|
+ 2.8%
|
TOTAL
|
|
|
|
3,958
|
|
|
|
3,659
|
|
|
|
+ 9.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
millions of euro
|
|
|
|
1st Quarter Fiscal 2013
|
|
|
|
1st Quarter Fiscal 2012
|
|
|
|
Organic growth
|
Latin America
|
|
|
|
100
|
|
|
|
95
|
|
|
|
+ 11.7%
|
Europe and Asia
|
|
|
|
83
|
|
|
|
80
|
|
|
|
+ 0.9%
|
TOTAL
|
|
|
|
183
|
|
|
|
175
|
|
|
|
+ 6.7%
|
-
Organic revenue growth for the activity was driven by a dynamic
performance in Latin America. Face value*increases
(especially in Brazil and Venezuela) and the rise in the number of
beneficiaries continue to be important growth factors in Latin
America. However, pressure on commissions in Brazil resulted in a gap
between growth in issue volume and revenues in the first quarter.
-
In Europe, growth was more modest, given the impact of the regulatory
change in Hungary (effective as of January 1, 2012), a more
challenging economic environment and lower demand in Italy. In
contrast, activity in Belgium and France remained solid.
-
Recent successes include the Serviço Federal de Processamento de Dados
and Universidade Estadual de Campinas and Pepsico (Brazil), Unidad
Nacional de Protección (Colombia), Edere SA (Mexico), Transporte de
Valores Viseteca (Venezuela), Roche Farma (Spain) and Ekol Lojistik
(Turkey).
Also of note was the success of the new Spirit of Cadeau gift
card in France (home and sports-themed products and services) during the
end of year holiday season.
Acquisitions
On November 2, 2012, Sodexo expanded its presence in Latin America with
the acquisition of Servi-Bonos, a leading player in the food and
meal vouchers and cards market in Mexico. With a portfolio of 5,000
clients across the country, Servi-Bonos recorded issue volume of around
300 million euro in 2011.
On December 24, 2012, Sodexo reinforced its presence in India with the
acquisition of MacLellan India, an Indian leader in facilities
management services with specific expertise in HVAC services,
maintenance and energy management. The acquisition of MacLellan India
contributes to Sodexo's technical services expertise.
These acquisitions did not have a material impact on Sodexo's financial
strength compared to its position as of August 31, 2012.
Awards and Distinctions
-
Sodexo's non-medical in-home support services for the elderly was
included among the Franchise 500© 2013 winners by Entrepreneur
magazine, which ranked Sodexo first in the assistance to the elderly
category.
-
In October, Sodexo received the "Business for Peace" award in
Colombia. This initiative, in partnership with the Colombian
Suramericana Foundation, the Reintegration Agency and the Peace and
Reconciliation Program of the city of Medellin, promotes the
reintegration to the work force of people in vulnerable situations
because of the Colombian conflict, including victims and ex-combatants
from illegally armed groups.
Principal risks and uncertainties
There have been no significant changes in the principal risks and
uncertainties identified by the Group in the "Risk Factors" section of
the Fiscal 2012 Registration Document filed November 12, 2012 with the
Autorité des marchés financiers.
Outlook
As announced last November by Michel Landel, Sodexo foresees modest
growth in revenues and operating profit1 for
Fiscal 2013 compared to the previous year, which benefited from
specific events (the Rugby World Cup, the Olympics and a 53rd
week in North America).
Financial calendar
General Shareholders' Meeting
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|
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January 21, 2013
|
Fiscal 2012 dividend payment
|
|
|
|
February 4, 2013
|
First half Fiscal 2013 results
|
|
|
|
April 18, 2013
|
Nine months Fiscal 2013 revenues
|
|
|
|
July 3, 2013
|
Conference Call
Sodexo will hold a telephone conference (in English) today at 8:30 am
(Paris time) to comment on 1st Quarter Fiscal 2013
revenues. This presentation can be followed live via webcast on www.sodexo.com.
The press release and presentation will be available on the Group's
website www.sodexo.com,
beginning at 7:00 a.m., under the "latest news" section. A recording of
the conference will be available at +44 (0) 1452 550 000,
followed by the code 82 75 12 49.
About Sodexo
Founded in 1966 by Pierre Bellon, Sodexo is the global leader in
services that improve Quality of Life, an essential factor in individual
and organizational performance. Operating in 80 countries, Sodexo serves
75 million consumers each day through its unique combination of On-site
Services, Benefits and Rewards Services and Personal and Home Services.
Through its more than 100 services, Sodexo provides clients an
integrated offering developed over more than 45 years of experience:
from reception, safety, maintenance and cleaning, to foodservices and
facilities and equipment management; from Meal Pass, Gift Pass and
Mobility Pass benefits for employees to in-home assistance and concierge
services. Sodexo's success and performance are founded on its
independence, its sustainable business model and its ability to
continuously develop and engage its 420,000 employees throughout the
world.
Key figures (as of August 31, 2012) 18.2 billion euro
consolidated revenue 420,000 employees 20th largest
employer worldwide 80 countries 34,300 sites 75
million consumers served daily 10 billion euro market
capitalization (as of January 8, 2013)
This press release contains statements that may be considered as
forward-looking statements and as such may not relate strictly to
historical or current facts. These statements represent management's
views as of the date they are made and we assume no obligation to update
them. You are cautioned not to place undue reliance on our
forward-looking statements.
APPENDIX 1 Selection of new clients - first quarter Fiscal 2013
On-site Services
Corporate
AstraZeneca, Shanghai, China Australian Submarine
Corporation, Australia Banco Bradesco S.A., Osasco,
Brazil DNB, Oslo, Norway Electrolux, São Carlos,
Brazil
Defense
Ministry of Defense for the Sodexo-La Poste consortium, France Health
Care and Seniors HCR ManorCare, USA (290 retirement
homes in 32 states) HCA East Florida, USA (9 hospitals) LA
County, California, USA (2 sites at UCLA Medical Center) Ochsner
Medical Center, Louisiana, USA Brighton & Sussex University
Hospital, Brighton, United Kingdom Fruängsgården,
Stockholm, Sweden Nouvelles Cliniques Nantaises, Nantes,
France Renmin Hospital of Wuhan University, Wuhan, China
Education
Baker University, Kansas, United States Inglewood Unified
School District, California, United States St. Andrews
College, Dublin, Ireland Al Mareefa College, Riyadh,
Saudi Arabia Darussafaka Okul, Istanbul, Turkey Ensemble
Scolaire des Recollets, Longwy, France
Remote Sites
Campamento Pionero, Antofagasta, Chile Jascon 31 Floatel,
Congo Manitoba Hydro Keeyask, Gillam, Canada Pacific
Rubiales Energy, Puerto Gaitan, Colombia Sakhalin Energy
Investment Company Ltd., Yuzhno-Sakhalinsk, Russia Sports
and Leisure Château de Fillerval, Thury-sous-Clermont,
France
Benefits and Rewards Services
Europe
Aldi, Belgium B2s SAS (News - Alert), France Ekol Lojistik,
Turkey Euronics, Italy Roche Farma, Spain
Latin America
Edere SA de C.V., Mexico Pepsico, Brazil Serviço
Federal de Processamento of Dados (SERPRO), Brazil Transporte
de Valores Viseteca, Venezuela Unidad Nacional de Protección,
Colombia Universidade Estadual de Campinas, Brazil
Asia
Delhi Metro Rail Corporation Ltd., India Jia Ding Telecom
Bureau, China
APPENDIX 2
Exchange rates
The positive impact of currency effects was + 4.2% for the first
three months of the year, mainly from the strengthening of the U.S.
dollar and the British pound sterling against the euro. In the Rest
of the World, the depreciation of the Brazilian real against the
euro was partially offset by the appreciation against the euro of other
currencies in Latin America and Asia-Pacific.
It should be noted that, contrary to exporting companies, revenues and
operating expenses of Sodexo subsidiaries are denominated in the same
currency; as a result, currency fluctuations do not involve operational
risks.
The principal average exchange rates for the first three months of
Fiscal 2013 are:
1 EUR =
|
|
|
|
Average rate 1st Quarter Fiscal
2013
|
|
|
|
Average rate 1st Quarter Fiscal 2012
|
|
|
|
Change
|
US dollar
|
|
|
|
1.2906
|
|
|
|
1.3803
|
|
|
|
+ 7.0%
|
British pound sterling
|
|
|
|
0.8025
|
|
|
|
0.8701
|
|
|
|
+ 8.4%
|
Brazilian real
|
|
|
|
2.6398
|
|
|
|
2.4128
|
|
|
|
- 8.6%
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* formerly Motivation Solutions
1 Revenues in the first quarter of Fiscal 2012 included 52
million euro from the Rugby World Cup hospitality contract.
* Value of each voucher / card
1 Excluding currency effects and favorable accounting
adjustment in Fiscal 2012 for UK pension costs
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