nemetschek group company presentation...285.3 meur sales revenues (2015) 2.1 million users in 142...
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NEMETSCHEK GROUPCompany Presentation
November 2016
Montforthaus, Feldkirch, AustriaHASCHER JEHLE Architektur, Germany | Images: David Matthiessen | realized with NEVARIS
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NEMETSCHEK GROUP: In Brief………………………...….……………………………….......3
Trends & Strategy…...………………………………………………………………………………8
Financials: Q3 / 9M 2016…………………….....………………………………………………...14
NEMETSCHEK Share………..………...……………..……………………………………….....25
Outlook: FY 2016.……………………………………. ………………………………………...28
Appendix…………………………………………………………………….………………...…... 30
Contact...………………………..………………………………………………………………….35
NOVEMBER 2016 COMPANY PRESENTATION
Agenda
NOVEMBER 2016 COMPANY PRESENTATION
Our Founder
Mission: „We drive digitalization and innovation for the entire life cycle of the AEC industry!“
Vision: Innovation driver and digital backbone of the AEC industry with strong global brands and customer proximity.
Responsibility: Prof. Nemetschek establishes the Nemetschek charitable foundation, supporting projects in the areas of education, science and research, arts and culture, the environment, international understanding and social projects.
Prof. Georg NemetschekFounder and Member of the Supervisory Board of Nemetschek SE
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NOVEMBER 2016 COMPANY PRESENTATION
The Philosophy of Nemetschek
We are a Group of industry leaders with a unique DNA and expertise in the AEC* industry.
All of our strong brands share the same mission:
“We are open and declare our support of Open BIM, a standard that allows maximum flexibility and a seamless collaboration of all the parties involved in the construction process so that quality is enhanced in construction in compliance with time and cost schedules.”
* Architecture, Engineering, Construction
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NOVEMBER 2016 COMPANY PRESENTATION
History: 50 Years of Innovation and Success
* Building Information Modeling
INTERNATIONALIZATION INNOVATION DRIVERSPIRIT OF INVENTION
1980Nemetschek presents the first computer-aided engineering software (CAE)
1984The first CAD solution ALLPLAN 1.0 appears on the market
1998Numerous acquisitions: Frilo, Glaser, Bausoftware, Crem
2000Acquisition: Vectorworks.Group headquarters move to new premises at the Munich Fair
2015Sale: Glaser
1963Georg Nemetschek, a certified engineer, founds the “engineering firm for the construction industry”
TODAYGlobally leading software company in Open BIM* and 5D
2013Acquisition: Data Design System
2006Graphisoft and Sciabecome subsidiaries of the Nemetschek Group
1983Internationalization begins in Austria and Switzerland
1999IPO of Nemetschek. Acquisitions: Maxon, Auer
1968The first use of computers in the construction industry
1997Nemetschek presents the database-driven platformO.P.E.N. – known today as BIM*
2008Founding of Allplan GmbH(formerly Nemetschek Allplan Systems GmbH)
2005Founding of Precast Software Engineering(formerly Nemetschek Engineering)
2016Acquisitions: Solibri andDesign Data.Conversion of Nemetschek AG into an SE.
2014Acquisition: BluebeamSoftware. Investment in the start-up Sablono GmbH
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Nemetschek at a Glance
NOVEMBER 2016 COMPANY PRESENTATION
Facts and figures> 50 years of innovation, founded in 1963 and headquartered in Munich, GermanyOpen BIM pioneer and 5D provider with software solutions for the AEC* and media industry 13 strong brands285.3 mEUR sales revenues (2015)2.1 million users in 142 countries1,900 employees worldwide> 50 locations in more than 40 countriesIPO 1999, listed in the TecDax2.1 billion EUR market capitalization
* Architecture, Engineering, Construction
Four segments
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Media &Entertainment
Decentralized Strong Brands under One Umbrella
NOVEMBER 2016 COMPANY PRESENTATION
MANAGEBUILDDESIGN
Architecture Engineering Construction
Nemetschek covers the complete value chain in the AEC & Media industry Entrepreneurial brands: Industry leaders with a unique DNA, expertise and customer orientation Attractive set-up for potential targets
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Trends & Strategy
NOVEMBER 2016 COMPANY PRESENTATION
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WorkflowsDrawings
Since 1985
Models
Today Tomorrow
AEC Industry in Transition
COMPANY PRESENTATIONNOVEMBER 2016
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Mega Trend Digitalization – Entering The Industries
NOVEMBER 2016 COMPANY PRESENTATION
3,82
3,33
3,30
3,21
3,12
3,10
3,03
3,01
2,90
2,70
2,51
2,47
2,35
2,05
1,97
1,97
1,82
most some few very few1.0 2.0 3.0 4.0
Source: TOP 500 survey 2014 / Accenture
Average: 2,8
Telecommunications
Media & entertainment
Information technology
Automobile manufacturers
Electronics & high tech
Service providers
Logistics & transportations
Mechanical & plant engineering
Trade
Pharmaceutical & medical-device industry
Consumer goods
Utility sector
Automotive supplier
Chemical industry
Metals
Construction
Oil & Gas
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IT Spending as a % of Revenue by Industry (2015)
NOVEMBER 2016 COMPANY PRESENTATION
1,1
1,2
1,3
1,4
1,5
1,8
2,1
2,2
2,9
2,9
3,0
3,1
3,9
4,1
4,5
4,6
5,5
6,5
6,9
0% 1% 2% 3% 4% 5% 6% 7% 8%
Source: IT Key Metrics ‚Data 2015
Software Publishing and Internet Services
Banking and Financial Services
Education
Media and Entertainment
Professional Services
Healthcare Providers
Telecommunication
Pharmaceuticals, Life Sciences and Medical
Transportation
Insurance
Utilities
Industrial Electronics and Electrical Equipment
Consumer Products
Industrial Manufacturing
Retail and Wholesale
Chemicals
Food and Beverage Processing
ConstructionEnergy
90
525
2015 2025
Global IT Investment in construction increasing
Source: McKinsey
19%CAGR
Average: 3,4
in billion USD
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North America
1478
North America
2685
Europe1222
Europe2772
APAC872
APAC1653
ROW 488
ROW 838
2015 2020
BIM Market Size 2015/2020
BIM Market Size and Growth
NOVEMBER 2016 COMPANY PRESENTATION
Europe$ 1,222 mUSD +13.4%
North America$ 1,478 mUSD +12.7%
$ Market Size 2015 CAGR 2015 - 2020
Total7,948 mUSD
Total4,313 mUSD
+11.4%
+13.6%
+13.4%
+12.7%
CAGR
BIM Market by Region 2015
CAGR: +13%5 years
APAC$ 872 mUSD +13.6%
ROW$ 488 mUSD +11.4%
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Source: BIM Market, Global Trends and Forecasts (2015-2020)
Markets and Markets
Status of Current BIM Regulations and Use
NOVEMBER 2016 COMPANY PRESENTATION
Source: HSBC, Kepler Cheuvreux
50%
95%
We currently use BIM
In five year's time we will use BIM
National UK BIM Report survey on future use of BIM
Countries currently recommending or mandating BIMCountries recommending BIM as of 2017Countries with BIM guidelines/ positive BIM development
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Financials: Q3 / 9M 2016
NOVEMBER 2016 COMPANY PRESENTATION 14
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Nemetschek Group Highlights for Q3 |9M 2016 (1)
Continued revenue growth in Q3
After a extremely strong Q2, revenue growth continued in Q3 New record level in first nine months Revenues Q3: increase by 18.5% to 83.9 mEUR (organic growth of 14.9%)Revenues 9M: up by 19.2% to 245.4 mEUR (organic growth of 17.1%)
Strong revenue increase abroad
Revenues abroad increased by 20.7% to 166.0 mEUR (Americas, Asia, Nordics)Revenues share outside of Germany at 68%, Americas at 26%Germany showed also strong growth with 16.1% to 79.4 mEUR
Double-digit growth in license and recurring revenues
Software licenses up by 20.9% to 129.0 mEURRecurring revenues also in growth mode with 16.1% to 104.3 mEURShare of recurring revenues at 42.5%
Positive one-timeeffect One-time gain of +1.9 mEUR in Q2 in other operating income from a legal dispute with a
former member of the Executive Board
Profitabilityincreased significantly
Q3 EBITDA: up by 24.9% to 21.0 mEUR, EBITDA margin of 25.1%9M EBITDA: up by 34.8% to 66.6 mEUR, EBITDA margin of 27.1%9M EBITDA w/o one-time effect: up by 30.9% to 64.7 mEUR, EBITDA margin of 26.4%No activation of development costs - no effects on expenses and earnings
NOVEMBER 2016 COMPANY PRESENTATION
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Significant growth of net income and EPS
Q3 Net income: strong growth of 38.9% to 12.1 mEUR, EPS at 0.31 EUR9M Net income: up by 49.9% to 36.3 mEUR, EPS at 0.94 EUR9M Net income w/o one-time effect: up by 44.4% to 34.9 mEUR, EPS at 0.91 EUR
Net income w/o PPA 9M Net income w/o PPA: up by 43.0% to 42.3 mEUR, EPS at 1.10 EUR 9M Net income w/o PPA and w/o one-time effect: up by 38.5% to 40.9 mEUR, EPS at 1.06 EUR
High cash generation and solid balance sheet
Cash flow from operating activities: up by 32.1% to 64.5 mEURConversion rate at high 96.9%Cash at 103.0 mEUR and net liquidity at 0.2 mEUREquity ratio of 41.4% - leeway for further investments / acquisitions
Increased guidance for FY 2016 confirmed
New record levels of revenues and EBITDA are expected Guidance increased at the beginning of October:Revenue target range: 338 - 341 mEUR, increase of +18% - 20% YoY(former revenue target: 319 - 325 mEUR, +12% - 14%)EBITDA target range (w/o positive one-time effect): 89 - 91 mEUR (+28% - 31%)(former EBITDA target: 77 - 80 mEUR)
Nemetschek Group Highlights for Q3 |9M 2016 (2)
NOVEMBER 2016 COMPANY PRESENTATION
66,6 68,6 70,777,7 83,8 83,9
Q1 2015 Q1 2016 Q2 2015 Q2 2016 Q3 2015 Q3 2016
Dynamic Growth Continued
+16.7% +22.2% +19.2%
204,0
245,4
9M 2015 9M 2016
Change
Revenues in mEUR
Q3: Organic growth of 14.9% yoy 9M: Organic growth of 17.1% Solibri and Design Data
contributed around 4.6 mEUR
205,9
+18.5%
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International Growth In Focus, More than 50 Locations
AMERICASBrazilCanadaMexicoUSA
WESTERN ANDSOUTHERN EUROPEAustriaBelgiumFranceGreat BritainGermanyItalyNetherlandsSpainSwitzerland
ASIAChinaJapan
Singapore
NORTHERN AND EASTERN EUROPE
Czech RepublicFinland
HungaryNorway
SlovakiaSwedenRussiaEurope w/o
Germany32%
Asia/Pacific9%
RoW1%
Americas26%
Germany32%
NOVEMBER 2016 COMPANY PRESENTATION 18
Both Licenses and Recurring Revenues Shows Double-Digit Growth
Software licenserevenues
52,6%
Recurringrevenues*
42,5%
Consulting &Hardware
4,9%
Software license revenuesUp by 20.9% to 129.0 mEURNew customers winsIncreasing customer baseConsequently recurring revenues will follow
Recurring revenues*Up by 16.1% to 104.3 mEURShare of 42.5% leads to higher visibility
Revenues split 9M 2016 in %
* Software services, rental models (subscription, SaaS)
NOVEMBER 2016 COMPANY PRESENTATION 19
16,821,0
17,415,2
21,022,7
Q1 2015 Q1 2016 Q2 2015 Q2 2016 Q3 2015 Q3 2016
49,4
64,7
EBITDA Increased Stronger than Revenues
+21.0% +49.0% +30.9% Change
EBITDA in mEUR* EBITDA w/o 1.9 mEUR positive one-time effect
EBITDA is shown with and w/o the positive one-time effect of 1.9 mEUR occurred in Q2 EBITDA margin improved significantly
EBITDAMargin 26.1% 27.0% 22.2% 27.1% 24.0% 26.4%
24,6
29.3%
+61.5%
66,6
9M 2015 9M 2016
+34.8%
27.1%
*
*
+24.9%
23.8% 25.1%
NOVEMBER 2016 COMPANY PRESENTATION 20
Net Income and EPS Showed Significant Growth
24,2
34,9 36,3
+44.4%
Net incomein mEUR
Change
9M 2015 9M 2016
+49.9%
0,63
0,91 0,94
+44.4%
9M 2015 9M 2016
+49.9%
EPSin EUR
* Net income and EPS w/o 1.9 mEUR positive one-time effect
*
*
NOVEMBER 2016 COMPANY PRESENTATION 21
Net Income and EPS w/o PPA
29,6
40,9 42,3
+38.5% Change
9M 2015 9M 2016
+43.0%
EPS w/o PPAin EUR
0,77
1,06 1,10
+38.5%
9M 2015 9M 2016
+43.0%
Net income w/o PPAin mEUR
* Net income and EPS w/o 1.9 mEUR positive one-time effect
*
*
NOVEMBER 2016 COMPANY PRESENTATION 22
AEC Segments with Double-Digit Growth Rates
43,5
4,2
14,9
62,0
5,0
16,1
9M 2015 9M 2016 9M 2015 9M 2016 9M 2015 9M 2016
EBITDAMargin
Change
24.2% 28.2%
+13.2%
18.5% 18.6% 15.4% 19.3% 40.6% 39.7%
+42.6% +19.4% +8.3%
DesignGrowth path continuedEBITDA margin improved significantly by 4pp
BuildRevenue growth of 42.6%Inorganic effect of Solibri and Design Data (~4.6 mEUR)Organic growth of 33%Stable profitability
ManageHigh revenue growth rate with 19.4%EBITDA margin improved year on year
Media & EntertainmentSolid revenue growth of 8.3% Planned investments have impact on margins
Revenuesin mEUR
143,4
162,3
9M 2015 9M 2016
143,4
NOVEMBER 2016 COMPANY PRESENTATION 23
Cash Flow Situation
in mEUR
EBITDA+34.8% yoy
Operating cash flowIncrease of 32.1% yoy
Investing cash flowCapex of 5.7 mEURAcquisition of Design Data of 40.4 mEUR
Cash flow from financing activitiesRepayment of bank loan (-15.7 mEUR)Dividend payment (-19.3 mEUR)Bank loan for Design Data (+38.0 mEUR)
Conversion rate**96.9% (previous year: 98.9%)
3,3
-28,5
-8,0
48,8
49,4
0,2
1,2
-45,8
64,5
66,6EBITDA
Operating cash flow
Investing cash flow
Cash flow from financing activities
Net liquidity
9M 20169M 2015
* End of FY 2015** Operating cash flow / EBITDA
*
NOVEMBER 2016 COMPANY PRESENTATION 24
NEMETSCHEK Shares
NOVEMBER 2016 COMPANY PRESENTATION
Visu
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Founded: in 1963IPO: March 10, 1999Number of shares: 38,500,000Frankfurt Stock Exchange, Prime StandardBloomberg: NEM GY, Reuters: NEKG.DEShares Nemetschek family: 53.57%Freefloat: 46.43 percentCurrent MarketCap: ~ 2.1 billion EURCurrent TecDAX Ranking: 13/20
Shares of Nemetschek family pooled: secures stable shareholder structure for well-being of NEMETSCHEK GROUP in the future
Prof. Georg Nemetschek
5,2%
Nemetschek Vermögensverwaltungs
GmbH & Co. KG48,4%
Free float46,4%
Stable Shareholder Structure
COMPANY PRESENTATIONNOVEMBER 2016
27
Share Price Increased Stronger than TecDAX and DAX
COMPANY PRESENTATIONNOVEMBER 2016
Time Nemetschek TecDAX Dax
Year 2013 +52% +38% +23%
Year 2014 +66% +18% +3%
Year 2015 +120% +34% +10%
YTD 2016 +17% -4% +4%
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35
38
41
44
47
50
53
56
59
01.2016 02.2016 03.2016 04.2016 05.2016 06.2016 07.2016 08.2016 09.2016 10.2016 11.2016Nemetschek TecDAX DAX
Outlook: FY 2016
NOVEMBER 2016 COMPANY PRESENTATION
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Outlook 2016: Increased Revenue and EBITDA Guidance Confirmed
Current situation
Market conditions
Strong basis due to the strong 9-month figures
Digitalization and IT spending will drive the use of software solutions in the AEC marketBIM market is expected to grow at a remarkable rate owing to supportive government regulations mandating the adoption of BIM software for construction projects
Strategic market positioning
Clear focus on AEC marketLeading player of Open BIM solutionsStrong and independent global brands
Growth potential/ Investments
Focus on internationalization (North America, Asia, Europe)Investments in new markets, customer segments, sales & marketing Strategically co-operations & acquisitionsHealthy balance sheet - capable of investing in organic and in inorganic growth
Guidance 2016 increased
Increase of guidance at the beginning of October 2016Expect record levels in revenues and EBITDA
in mEUR FY 2015 Increased ForecastFY 2016 (Oct 2016)
Former ForecastFY 2016 (Mar 2016)
Revenues 285.3 338 - 341(+18% - 20%)
319 - 325 (+12% - 14%)
EBITDA 69.5 89 - 91 77 - 80
NOVEMBER 2016 COMPANY PRESENTATION 29
Appendix
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NOVEMBER 2016 COMPANY PRESENTATION 30
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P+L Statement Q3 Comparison
mEUR Q3 2016 Q3 2015 % YoY 9M 2016 9M 2015 % YoY
Revenues 83.9 70.7 +18.5% 245.4 205.9 +19.2%
Own work capitalized/other operating income 1,0 0,7 +34.0% 5.6 3.6 +55.6%
Operating income 84.8 71.5 +18.7% 251.0 209.5 +19.8%
Cost of materials/ purchased services -2.9 -2.5 +17.6% -8.0 -6.9 +14.6%
Personnel expenses -38.5 -32.3 +19.2% -109.7 -93.2 +17.7%
Other operating expenses -22.4 -19.9 +12.7% -66.7 -60.0 +11.3%
Operating costs -63.8 -54.6 +16.8% -184.4 -160.1 +15.2%
EBITDA 21.0 16.8 +24.9% 66.6 49.4 +34.8%
Margin 25.1% 23.8% 27.1% 24.0%
EBITDA (w/o one-time effect) 21.0 16.8 +24,9% 64.7 49.4 +30.9%
Margin (w/o one-time effect) 25.1% 23.8% 26.4% 24.0%
Depreciation of PPA and amortization -4.7 -4.2 +11.8% -13.6 -12.5 +8.6%
t/o PPA -2.9 -2.5 +13.2% -8.3 -7.6 +8.6%
EBITA (normalized EBIT) 19.2 15.1 +26.6% 61.3 44.5 +37.7%
EBIT 16.3 12.6 +29.3% 53.0 36.9 +43.6%
Financial result -0.2 -0.2 -0.7 -0.2
EBT 16.1 12.5 +29.3% 52.4 36.7 +42.9%
Income taxes -3.7 -3.4 +7.1% -14.7 -11.4 +29.0%
Non-controlling interests 0.3 0.3 +5.1% 1.4 1.2 +23.3%
Net income (group shares) 12.1 8.7 +38.9% 36.3 24.2 +49.9%
EPS in EUR 0.31 0.23 +38.9% 0.94 0.63 +49.9%
Net income (group shares w/o one-time effect) 12.1 8.7 +38.9% 34.9 24.2 +44.4%
EPS in EUR (w/o one-time effect) 0.31 0.23 +38.9% 0.91 0.63 +44.4%
NOVEMBER 2016 COMPANY PRESENTATION
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Balance Sheet - Assets
mEUR September 30, 2016 December 31, 2015
ASSETS
Cash and cash equivalents 103.0 84.0
Trade receivables, net 36.9 29.6
Inventories 0.6 0.5
Other current assets 14.2 11.8
Current assets, total 154.8 125.9
Property, plant and equipment 13.9 13.8
Intangible assets 104.0 100.8
Goodwill 163.2 134.9
Other non-current assets 4.5 4.1
Non-current assets, total 285.6 253.6
Total assets 440.4 379.5
NOVEMBER 2016 COMPANY PRESENTATION
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Balance Sheet – Equity and Liabilities
mEUR September 30, 2016 December 31, 2015
EQUITY AND LIABILITIES
Short-term borrowings and current portion of long-term loans 26.1 18.6
Trade payables & accrued liabilities 35.1 32.2
Deferred revenue 57.6 42.0
Other current assets 17.9 11.4
Current liabilities, total 136.7 104.1
Long-term borrowings without current portion 76.7 62.1
Deferred tax liabilities 23.7 24.3
Other non-current liabilities 20.7 22.1
Non-current liabilities, total 121.1 108.5
Subscribed capital and capital reserve 51.0 51.0
Retained earnings 133.1 116.3
Other comprehensive income -3.8 -2.5
Non-controlling interests 2.2 2.1
Equity, total 182.5 166.9
Total equity and liabilities 440.4 379.5
NOVEMBER 2016 COMPANY PRESENTATION
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Cash Flow Statement
mEUR September 30, 2016 September 30, 2015 % YoY
Cash and cash equivalents at the beginning of the period 84.0 57.0 +47.4%
Cash flow from operating activities 64.5 48.8 +32.1%
Cash flow from investing activities -45.8 -8.0 +472.2%
t/o CapEX -5.7 -5.7 -0.4%
t/o Cash paid for business combinations -40.4 -2.4
Cash flow from financing activities 1.2 -28.5 -104.3%
t/o Dividend payments -19.3 -15.4 +25.0%
t/o Repayments of borrowings -15.7 -9.0
t/o Cash received from bank loans 38.0 0.0
FX-effects -0.9 2.2
Cash and cash equivalents at the end of the period 103.0 71.5 +44.1%
Free cash flow(1) 18.7 40.8 -54.1%
(1) Operating cash flow – Investing cash flow
NOVEMBER 2016 COMPANY PRESENTATION
35
Contact
NEMETSCHEK SEInvestor RelationsKonrad-Zuse-Platz 1D-81829 [email protected]
DisclaimerThis presentation contains forward-looking statements based on the beliefs of Nemetschek SE management. Suchstatements reflect current views of Nemetschek SE with respect to future events and results and are subject to risksand uncertainties. Actual results may vary materially from those projected here, due to factors including changes ingeneral economic and business conditions, changes in currency exchange, the introduction of competing products,lack of market acceptance of new products, services or technologies and changes in business strategy. NemetschekSE does not intend or assume any obligation to update these forward-looking statements.
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