Ladies and gentlemen, good morning and good afternoon. Welcome to the Dätwyler 2017 half-year results conference call. I am Lou, the conference call operator. I would like to remind you that all participants will be in listen-only mode, and the conference is being recorded. After the presentation, there will be a Q&A session. You can register for questions at any time by pressing star and one on your telephone. If you need assistance, please press star and zero to call an operator. The conference must not be recorded for publication or broadcast. The slides for this conference call can be found on Dätwyler Group's website under the Publication section of the Invest menu. At this time, it is my pleasure to hand over to Mr. Dirk Lambrecht, CEO, and Mr. Reto Welte, CFO. Please go ahead, gentlemen.
Good morning, everybody, thank you for your interest in Dätwyler. My name is Dirk Lambrecht, and I am the CEO of the Dätwyler Group, and I am speaking here together with our CFO, Reto Welte. I would like to start with an overview of the key financial figures of the first half of 2017. Here I refer to slide three of our today's presentation, which is available on our website. Let's go. As you see, we have increased our unaudited net revenue year-on-year by 3.8% to CHF 644.5 million. Adjusted for positive acquisition effects and negative currency effects, this equates to organic growth of 2.2%. The reported operating results stood at CHF 80.1 million. Included in this figure are CHF 6.6 million of one-off costs. These are mainly related to the establishing of Distrelec's new enterprise hub in Manchester.
Before those one-off costs, adjusted EBIT climbed to CHF 86.7 million. The adjusted EBIT margin consequently ended on 13.5%, slightly above the previous year's level. We managed to keep the EBIT margin stable despite higher prices for raw material in the Sealing Solutions division and a drop in revenue at Nedis, our home and consumer electronic tool hairline unit. The net result declined slightly to CHF 53.3 million due to higher tax expenses. Reto will provide additional details later. We go to slide four. You see our balance sheet at the end of June 2017 compared to the status at the end of 2016. We currently have CHF 284 million in cash and cash equivalents and have access to some CHF 650 million, including unused credit limits. This means that there is a sufficient liquidity to finance our profitable growth strategy.
The equity ratio is up to 66.9%. I continue now with slide five. As all of you probably know, the Dätwyler Group consists of two divisions. With the production plans of the globally active Sealing Solutions division, we employ some 6,000 persons and generate some 60% of the group revenues, with an increasing trend in 2017. The Technical Components division comprises the Dätwyler distribution business for electronic components. In this division, we focus on Europe, employ 1,200 persons, and generate some 40% of the group revenue. We are continuing to slide six. I will start with the Sealing Solutions division, where we develop and manufacture customer-specific sealing components for four attractive global industries. Most of these are system-critical components. Without them, the systems of our customers would not work.
At the same time, our components only account for a very small percentage of the total system cost. Next, slide seven. You can see here the revenue potential of relevance to us in the four market segments in which we operate. The consumer goods market segment contains the Nespresso business. The partnership continues to be very successful. We have improved the revenue potential with the automotive market segment, thanks to the acquisition of Auricon in 2015 and Ott in 2016. Within the healthcare market segment, we are comfortably the second strongest solution provider in a very attractive global market. Within the civil engineering market segment, we mainly develop and produce seal profiles for project businesses like tunneling work and damping elements for railway structures. All four market segments offer attractive potential for growth and high barriers to entry. I continue to slide eight.
Our Sealing Solutions division was able to accelerate profitable growth in the first half of 2017. This is mainly thanks to our leading positions and the start of serious production of new components and measures, which we have implemented in the last years. The revenue grew by 9.7% to CHF 420 million. Taking positive acquisitions effects and slightly negative currency effects into account, this equates to an organic growth of 6.2%. For the fifth consecutive time since the merger of the two former divisions, the Sealing Solutions division managed to increase EBIT, this time to CHF 78.6 million. The EBIT margin reached 18.7% and came in only slightly below the prior year value. This is despite higher raw material prices and significantly intensified activities in marketing, sales, and technical support.
Our healthcare market segment has successfully launched a new operating strategy, which will support us to constantly increase the number of active customers or share with our main customers. The demand for high-quality components for prefilled syringes was well above market growth. The automotive market segment recorded a very strong growth, especially in China. In Europe, the strict enforcement of emissions regulations has boosted the demand for selective catalytic reduction systems to treat exhaust gases in diesel vehicles. As the market leader for the corresponding high-quality sealing components, Dätwyler profits from this development. The civil engineering market segment has recovered and reported revenue considerably higher than prior year. In the consumer market segment, the Nespresso order developed nicely again. The negotiations on the new contract at a very advanced stage with the key parameters already defined in the formal letter of intent.
The integration of the 2016 acquired German company, Ott, is very well on track. We actively use the synergies of the customer portfolio and jointly develop first new components. Now slide nine. You see a good example for our efforts to accelerate organic growth. Our new U.S. plant for high-quality elastomer components is being built in Middletown, Delaware. The construction work is on track. Starting towards the end of 2018, we will serve the growing needs of leading U.S. healthcare companies for high-quality components for injectable drugs in general, and for prefilled syringes in particular. With an investment of more than $100 million in this greenfield manufacturing plant, we are setting new industry standards, and it creates 120 new jobs. Our leading First Line standard comprises, among other things, ultra-modern clean room technology and fully automated production cells. I continue to slide 10, onto the Technical Components division.
This division comprises Dätwyler's electronic distribution business. The business model is based on a high level of service and high availability, and a broad range of components, which we can generally supply to our customers on a next day basis. Based on this business model, we talk about time-critical electronic components that we supply to our customers. Slide 11 summarizes the four main market segments of our distribution businesses. MRO, which means maintenance, repair, and operations. Automation. Electronic design engineers, EDE. Production. The wholesale and consumer electronics business. It is still quite challenging for this division to segment the market and to define the potential of the relevant segments. However, we are doing some good progress here.
As outlined at the annual results press conference in winter, we will be making the MRO and automation segments our priority, as these are perfectly suited to both our history as a company and our core competencies. In the market segments of EDE, electronic design engineers and wholesale with consumer electronics, our objective is to defend our market position. I continue to slide 12. The Technical Components Division showed mixed results in the first half of 2017. Overall, the revenue declined to CHF 224 million. This was mainly due to weak demand affecting the business-to-consumer business in general and the home and consumer electronics wholesaler Nedis in particular. Taking the negative currency effects into account, this equates to an organic revenue decline of 4.1%. In the core business-to-business of Distrelec and [Lyfol], we recorded an encouraging demand in all geographical markets.
The new house brand for RND and for standard products also performed well. The lower sales volume led to a decline in EBIT despite strong cost control and improved commercial margins. Adjusted for one-off costs of CHF 6.6 million, EBIT reached CHF 8.1 million. This equates to an adjusted EBIT margin of 3.6%, which is below last year and also below our expectation. The one-off costs are mainly related to the restructuring at Distrelec. The implementation of the new enterprise hub in Manchester is on track and will generate annual cost savings of CHF 3 million. I will give you some more information on the slides to follow. Reichelt again showed good profitable growth, but it still offers significant optimization potential for the future.
The acceleration of the successful international expansion with full growth already partly in the second half of 2017 and, of course, in the future. Nedis suffered a really serious drop in revenue in the first half of the year. This has several reasons. One is that we have deliberately reduced unprofitable business. Another reason is that the very challenging and competitive market environment. Finally, we recognize some homemade problems which should be able to correct in the coming two semesters. The exogenous factors like the growing trend of online shopping has accelerated the closure of small and medium-sized retail businesses. As a consequence, we have lost many of our traditional customers. Establishing the business as a profitable supplier to the major online retailers proves to be challenging. However, the problem is identified and the strategy is being reviewed. Firstly, Nedis will be consolidating its own product brand.
This will result in efficiency and enhancement and cost savings along the entire supply chain. Additionally, we will implement further savings with regard to operating costs, and we will concentrate more and faster on market trends such as smart home technology. On slide 13, you see our performance improvement plan in the Technical Components division, which I have presented at the results press conference in winter, and which guides our activities in the course of this year and in the future. As you know, we have spent the last three years integrating the companies we have acquired and developing a shared infrastructure platform. We now want to use this platform to strengthen our market position. We are still looking to segment our markets and customer service and align our value proposition and offering strategy even more effectively with current and future customer needs.
We aim to significantly increase our share of online business. Therefore, we want to offer our target customer added value in future with the most appealing packages and the shortest response times. While we are strengthening our market position, we also need to keep improving our operating processes and then strive in everything we do to be best in class. I continue to slide 14. Distrelec's new enterprise hub in Manchester is very much in line with the objectives of the performance improvement plan. We want to become the most agile distributor by centrally steering our product, supplier, procurement, e-commerce, and marketing management. By doing so, we want to significantly increase the quality and productivity of our proposition delivery. At the same time, we want to boost our range of products and services on offer to customers.
As a consequence, some light jobs across all locations in Sweden, Germany, Switzerland, and Italy are being relocated until the end of 2017. Local sales function and existing distribution centers continue to serve and supply the customers without interruption. The total expected one-off costs amount to CHF 8 million, generating annual cost savings of CHF 3 million as mentioned before. I now come to slide 15 and to the outlook for the year 2017, which has not changed a lot. At group level, we are now aiming for revenue of between CHF 1.27 billion-CHF 1.31 billion. As in the first half of 2017, the adjusted EBIT margin should end up with an upper half of the 11%-14% target range. In the Sealing Solutions division, I am confident that our strong position will enable us to grow faster than the market average in all four market segments.
We further intend to accelerate growth by intensifying sales, technical services, and marketing activities, as well as by expanding capacities and by upgrading the production processes. Additionally, we constantly screen the market for potential further acquisitions to tap into new regions and technologies. In the Technical Components division, the emphasis is still on enhancing our segmentation of markets and customers. We need to align our value proposition and offering strategy more effectively with current and future customer needs. With the establishing of the new Distrelec enterprise hub, the accelerated international expansion of Reichelt, and the strategy review at Nedis, I am confident that we do the right things to bring the distribution business forward in the future. Thank you for your attention. Now I hand over to our CFO, Reto Welte. He will give you some details about our financial results. Reto, please.
Welcome also from my side. I'm now referring to page 17 of the presentation, where you'll find the consolidated income statement for the first six months, 2017. As you can see, net revenue has increased by 3.8% to CHF 644.5 million. The gross profit margin has slightly decreased to 25.8% compared to 26.7% in the previous year. This has already been explained by Dirk in his presentation, where it comes from. Research and development expenses, marketing and selling expenses, and all the other expenses that you see down for the EBIT line, they show no significant deviation to the previous year. Dimensionally, they're almost the same. Operating results before interest and taxes is at CHF 80.1 million, which corresponds to an EBIT margin of 12.4%, compared to 13.2% in the previous year, which is 2% less in absolute value.
As you realize from the P&L, the net finance result has slightly decreased compared to the previous year. We end up with an earnings before tax of CHF 76.1 million, which corresponds to a margin of 11.8% compared to 12.3% in the previous year. An important aspect is the increase in income tax expenses. This has a very clear explanation. Dirk has already mentioned that the Nedis business at the moment is not developing very well, due to this situation, we have decided not to capitalize tax loss carryforwards anymore. If we would have done, the tax expenses would have decreased to CHF 20.3 million, which then would correspond to an adjusted tax rate of 26.7%, which is similar to last year's tax rate.
The explanation is really on the basis, of course, of the business that, especially the Nedis business, that do not develop on a profitable way. Further down, you realize a net result of CHF 53.3 million, which corresponds to a margin of 8.3% compared to a margin of 9.1% in the previous year. Net results per bearer share in size of the dividend, of course, is on the basis of the slightly decreased net result, also a little bit lower. I now continue on page 18 of the presentation. On this page, you find the balance sheet comparisons between June 2017, December 2016, and June 2016. I'm mainly referring to the December 2016 column and compare it to the June figures. You realize that both assets and also, of course, both liabilities and equity, there is no big difference compared to the situation by the end of December 2016.
Net working capital has potential for improvement. We clearly can state that, we have taken measures to improve the situation, have agreed targets with those divisions to optimize the net working capital. Current liabilities compared to the end of December have increased, as always, the explanation is the move of the bonds that we have until now has been shown on the long-term liabilities has now become a short-term liability. Total liabilities, as I said already, is almost a similar level as by the end of December 2016. The equity ratio, as you realize further down, has increased a little bit to 66.9% compared to 66.2% by the end of December. Our net cash surplus has decreased a little bit. You will see further information right now when we switch to the consolidated cash flow statement, which you can see on page 19 of the presentation.
Starting with the net result of CHF 53.3 million, adding up non-cash items and changes in working capital, we see a net cash from operating activities of CHF 52.1 million in 2017. The ones that followed that for quite a while might realize or might remember that in the previous year, at this time of the year, 2016, we were actually actively following to try to acquire Premier Farnell. At the time, it was already communicated, and we had to reserve cash for this acquisition. The cash position in 2016 had to be partly moved to other receivables. That's why you have a big position in the non-cash items and changes in working capital in 2016. The position that had been moved from cash to other receivables at that time were CHF 164 million. The next line, you realize net purchases, property, plant, and equipment, that's investment, CapEx.
You see quite an increase of 50% to previous year. That's mainly due to our big projects we have started. Dirk has explained the big one in the U.S., and there is another one, as you might remember from past statements we made in India. It will continue for the second half of the year that the CapEx investments will be quite higher than in the previous year. Net cash provided by investment activities is then ending up at CHF 42.2 million compared to CHF 28.5 million in the previous year. The actual situation that you see here in Q2 2017 reflects a bit more what actually takes place in the Dätwyler Group than in the previous year, where we had a lot of transactions due to the potential acquisition of Premier Farnell. Net cash used from financing activities mainly includes the dividends paid to shareholders.
We end up by June 2016 with a cash and cash equivalent position of still CHF 284 million. If you add in the previous year, CHF 170 million that have been reserved for the Premier Farnell acquisition, you see that the cash situation has actually not changed that drastically. I finish off my presentation with the segmental reporting by division on page 20. Probably you have seen the figures already or remember them as Dirk partly already presented them. You see net revenue for the Sealing Solutions division of CHF 420 million compared to CHF 383 in the previous period, which is a plus of 9.7%. In Technical Components, net revenue has decreased by 5.8%, as already explained by Dirk. We end up on group level with the CHF 644.5 million compared to CHF 621.1 million in the previous period.
EBIT also presented already CHF 78.6 million for the first six months 2017, which is 8.5% better than previous year for Sealing Solutions. In Technical Components, the EBIT that we present for 2017 is only CHF 1.5 million, but you have to refer to the adjusted EBIT that have already been presented by Dirk, then the reduction is not that. EBIT margin, I already explained. EBIT margin in Sealing Solutions is almost a similar level as in the previous year. EBIT margin in Technical Components before one-time effect is, of course, very low, 0.7% compared to 3.9% on an adjusted level. You have seen the figures already. It looks a bit different. I would now finish my presentation, and we would be ready to answer your questions.
Thank you very much, Reto. As Reto said, now we are happy to answer your questions. Reto Amstutz, you have a question?
Yeah.
As operator, if you would.
We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on your touch-tone telephone. You will hear a tone to confirm that you have entered the queue. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use only handsets for asking a question. Anyone who wishes to ask a question may press star and one at this time. The first question comes from Reto Amstutz from Baader Helvea. Please go ahead, sir.
Good morning. A question regarding your guidance. When we look at the sales level, your new guidance, when we look at the midpoint, it implies that the second half should be about equal to the first half. You mentioned that Technical Components should do a bit better in the second half. When we look at Sealing Solutions , normally you have a seasonal decline there in the second half. It looks like this time, it could be also almost on par on the first half. Could this be related to the new expanded capacity you have in mixing in Schattdorf and the clean room capacity you have added in India? Are that the reasons for this flat-ish, let's say, sales performance in the second half over first half?
First of all, let's start with Sealing Solutions. When we are having a look to the figures in the last couple of months and to the orders, what we have in the books today, I think it's a slightly better situation as we have in the previous year, for the second half year. It's correct that especially with our measures what we have defined for the healthcare segment, we see some further potential for the second half. That is correct. Especially if it comes to the technical division, we have this drop-down with Nedis now from January onwards. That means this drop-down of the sales with Nedis is not constantly decreasing, but it's just from January onwards on the same level.
Okay, thank you. Besides the defined measures, what we have for Reichelt and for Distrelec, we are facing the last two, three months an increasing trend of the sales. That makes me confident that we can progress and deliver a good second half year.
Okay, thank you. The second part regarding your margin outlook and guidance. You say you should be at the upper half of your 11%-14% range on an adjusted basis. When you look last year, you had for the full year 13% adjusted EBIT margin. Now when we look at the second half and what you say here, important elements, I think on the Sealing Solutions side, I think you should have a rather better situation in the second half because the easing headwind from raw material price effect. And as you mentioned in [Petko], there you actually see a pickup in the operating performance and margin situation. Is it safe to assume that you can even exceed in 2017, the adjusted EBIT margin of 13% you achieved in 2016?
Of course, we are almost like having a positive view to the second half year, but there could be exogenous factors. We do not know exactly what happens in the market. I assume that we will be, as I said before, in the range between this 11% and 14% on the upper half. It's too early to say if we really can, on the profitable side, bring all from the net sales into the profitable value, because we are investing huge amount in talents and another production equipment. We have to see how that will run in the second half. I'm still confident that we're good on track here.
Okay. Thank you.
You're welcome.
The next question comes from Michael Liechti, Bank of Tokyo. Please go ahead.
Good morning, gentlemen. Thank you very much for taking my questions. I would have a couple of questions, actually, three questions on Technical Components. Firstly, could you maybe provide a bit more details on troubles you are facing in Technical Components, respectively in Nedis. From other players in consumer electronics markets, we don't see such a bad situation as you are describing in your press release. If you could maybe put more color here where this decline is actually coming from, whether it's on one side, it's from falling market or whether it's more from involuntary market share losses. On the other side, if you could maybe say how much sales you basically lost from this deliberate sales cuts.
On the second question, if you could maybe comment on the size of decline in Nedis, because if we look at basically Reichelt being positive for Distrelec being rather flat, that would mean that Nedis is maybe the sales went down by at least 25%. If you could maybe confirm whether this is more or less right. Maybe the third question would be in your press release and also in your comments in the presentation, it seems that you have a bit more clear strategy for Nedis. For example, with this focus more on smart home technology, et cetera, if you could maybe provide more details on this strategy and your thinking there now and maybe update us on your expectations with Nedis now. Thank you.
Michael Liechti, thank you very much. There's a lot of questions from Nedis. I think a part of the problem, what we have is a homemade problem with Nedis, as I already mentioned before. We assume that around 50% of that decline, what we are facing is around linked to that. We have installed already some measures, and we are starting to implement them in the next couple of months, as I said before, to try to get this loss of sales to the market back. On the other hand, we are having an increase of our cross margin, so that the losses at Nedis is not so high as we would expect with such a decrease in sales. What we have done, we have increased partly our prices for some product lines, which lead us to the situation that we lost some small customers.
I think with your expectation when it comes to the decrease of net sale from Nedis, you are not so far away what we are facing. I do not would like to give exact numbers. We are not doing that. But having said, it's not so far away. What we are doing currently is, as I said, we are working for example with Nedis around 12, 13 brands, and our target is to reduce this number of brands significantly to a small number, like two or three brands. That will give us more attention at the market, and that will reduce further down our cost for the marketing of the different brands what we have at Nedis. That is one of the main actions there.
Another one, of course, is further reduce our cost and having a better customer focus and bringing the right proposition value to the market. That is what we are currently doing, and I expect that we will see in the next two quarters, as I mentioned before, some progress with respect to the situation.
Okay. Thank you very much.
Yeah. You're welcome.
The next question comes from Charlie Ferenbach, AWP. Please go ahead.
Morning, gentlemen.
Morning.
You said Nedis is under strategic review. You explained this a bit, but just a question, if I may. Could the Nedis business also be sold as everything at all?
No, that is not foreseen. We first of all will try to adjust that and to bring Nedis back on the growth track, Charlie. The point is, of course, it's not so easy. As you know, the business-to-consumer market is at a declining trend that already started in the last year, we assume that it will be ongoing in the near future. How we solve the problem with Nedis on the strategic side, that is, we are still working on. What I mentioned before is to do some operational things, which will help us in the near future. That isn't the final solution from the long-term perspective. There we have to dive deeper into the different topics.
Okay. Thank you. May you allow a follow-up on the Technical Components? You said, as I heard, you expected a better second half year. Could you maybe give us some more feelings about the EBIT margin? You had an adjusted EBIT margin of 3.6%. Do you think this will be flattish or even better in the full year, or how do you see that? Thank you.
I think it's too early to say exactly what we will see at the end of the year. First of all, as I said, in the wintertime and in the first couple of months of the year, our main topic today is to define the right measures and to bring that into action. That is, for me, much more important. We will measure at the end, we will see the results in 2018, and hopefully then we will see a significant step forward. For example, with new measures perhaps we already will see a CHF 3 million benefit of cost reduction for the Technical Components division, which will help us in the future. Of course, we are working on further topics here.
Thank you very much.
You're welcome.
The next question comes from Amisha Dhar, from Pharma AEC. Please go ahead.
Hello, good morning. My question was with respect to the Sealing Solutions division that you have. What do you think was a major contributor to your growth in that division? Second question is, what do you think is the role of healthcare in your growth currently and going ahead in the future?
Yeah. First of all, thanks for your question. I think the point here with the healthcare is that we have invested a huge amount of money in a couple of years. Besides this investment in production equipment, we invested as well in talents. I assume that we will see out of that a stronger growth, and that is one of the reasons that we are facing a much growth factor with the healthcare segment. It's clear, and if you have a look to our investments and what I mentioned before, of course, the healthcare segment is in a strong focus in the future. We will work very hard to accelerate our growth within this business.
Okay. Thank you.
You're welcome.
As a reminder, if you wish to register for a question, please press star and one on your telephone. The next question comes from Richard Frey from Deutsche Bank. Please go ahead.
Good morning, gentlemen.
Good morning.
I've got several questions. First of all, a short one. The strategic review of Nedis was several times mentioned. When can we expect first results out of this?
Yeah, I think that we will communicate in time, and I expect that with the year-end results of 2017, we can give you some further indication how we would like to proceed there.
Okay, thanks. If I'm remembering right, you have mentioned that this year's end results conference, that M&A is still a topic. You have lots of cash at hand and that the focus is mainly on Sealing. So far we didn't hear any news on this. Am I right to expect that this focus didn't change?
You are right. We haven't changed the focus. We are screening the market permanently. As I said before, Richard, it of course is difficult to say exactly when acquisition will happen. We are working in contact with a lot of companies, I can't tell you when it will happen. That is clear. The focus acquisition is with Sealing Solutions. Yes.
Okay. You also have mentioned the success of your diesel exhaust solution.
I guess diesel scandal short-term helps, how are the midterm prospects? How do you see those markets evolve midterm?
First of all, we assume that this is the scandal and the risk side of that means that the big OEMs have to over-engineer their product portfolio will help us for the next couple of years to take part on the high increase of growth on this new SCR systems. I'm confident that it will, at least for the next three, four years, help us to accelerate the growth. We have to see what happens in the next year. You know that is in the press currently is on a very high level, what they are talking about, all this diesel scandal. I think that has to have a look at that by end of the year, next year, and then we can see how that will proceed into the future.
I got the final one concerning consumer goods. What are the prospects to diversify besides the Nespresso business? Is this still status quo, or are there any other attractive prospects in the near future?
We are focusing to stabilize and to hold our business with Nespresso. Of course, we are trying to get another business in this sector, our partnership and the relation with Nespresso is the first topic, keep that. That is what we will do for sure. If there is an option in the future, yes, of course, we will handle that. I do not expect that we will see something different for sure, not in 2017.
Thank you.
You're welcome.
As a reminder, to ask a question, please press star and one on your telephone. We have a follow-up question from Mr. Reto Amstutz. Please go ahead, sir.
Yes. A question regarding raw material price effect and the adverse impact you had in the first half. Can you give here some more details or some indications and how you would expect this adverse impact to remain in place for the second half? Here, I would rather expect it to ease, this adverse effect may become even a slight tailwind.
I think from the raw material side, if we would separate this effect, that is around 1%-1.3% of EBIT, if I remember correctly. The division was able, via additional productivity and higher sales, to compensate that. We always said an influence of the raw material impact could be between 1%-1.5%, but so far, we were able to handle that with, as I said, with productivity. I assume that for the second half, we will not see a huge difference. Perhaps we can convert some of the productivity into risk side. This is what we have to see in the second half. It's a good chance.
Thank you.
You're welcome.
Gentlemen, there are no more questions at this time.
Yeah. Okay. Thank you very much to all of you. I wish you a good weekend. I'm looking forward to see you for the next press conference. Thank you very much.
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