g - Delta Corp Ltd.

GAMING
Hospitality
REAL ESTATE
I
Investor Presentation
t P
t ti
1
Disclaimer
Certain statements made in this presentation may not be based on historical information or facts and may be
“forward looking statements,”
statements ” including those relating to general business plans and strategy of Delta Corp
Limited its future outlook and growth prospects,
Limited,
prospects and future developments in its businesses and its competitive
and regulatory environment.
environment Actual results may differ materially from these forward‐
forward looking statements due to
a number of factors,
factors including future changes or developments in the Company
Company'ss business,
business its competitive
environment its ability to implement its strategies and initiatives and respond to technological changes and
environment,
political economic,
political,
economic regulatory and social conditions in India.
India This presentation does not constitute a
prospectus, offering circular or offering memorandum or an offer to acquire any shares and should not be
considered as a recommendation that any investor should subscribe for or purchase any of the Company
Company'ss
shares. Neither this p
presentation nor anyy other documentation or information ((or anyy p
part thereof)) delivered or
supplied
pp
under or in relation to the shares shall be deemed to constitute an offer of or an invitation byy or on
behalf of the Company.
p y
The Company, as such, makes no representation or warranty, express or implied, as to, and does not accept any
responsibility or liability with respect to, the fairness, accuracy, completeness or correctness of any information
or opinions
p
contained herein. The information contained in this p
presentation,, unless otherwise specified
p
is onlyy
current as of the date of this p
presentation. The Company
p y assumes no responsibility
p
y to p
publiclyy amend,, modifyy
or revise anyy forward lookingg statements, on the basis of anyy subsequent
q
development,
p
information or
events, or otherwise. Unless otherwise stated in this document, the information contained herein is based on
management information and estimates. The information contained herein is subject to change without notice
and past performance is not indicative of future results. The Company may alter, modify or otherwise change in
any manner the
h content off this
hi presentation,
i
without
ih
obligation
bli i
to notify
if any person off such
h revision
i i
or
changes.
h
Thi presentation
This
i may not be
b copied
i d and
d disseminated
di
i
d in
i any manner.
THE INFORMATION PRESENTED HERE IS NOT AN OFFER FOR SALE OF ANY EQUITY
Q
SHARES OR ANY OTHER
SECURITY OF DELTA CORP LIMITED.
This presentation is not for publication or distribution,
distribution directly or indirectly,
indirectly in or into the United States,
States Canada
or Japan.
Japan
Th
These
materials
i l are not an offer
ff off securities
i i for
f sale
l in
i or into
i
the
h United
U i d States,
S
C
Canada
d or Japan.
J
2
Contents
C p yS p h t
Company Snapshot
Industry Overview
Industry Overview
Business Analysis
Business Analysis
Fi
Financial Performance
i lP f
Annexure
3
Company Snapshot
4
Corporate History
2011 12
2011‐12
2010 11
2010‐11
2008 10
2008‐10
ƒ Acquired
Acquired 51% stake in Daman Hospitality (Thunderbird 51% stake in Daman Hospitality (Thunderbird
R
Resort
t
ƒ Acquired 51% stake in Daman Entertainment (Casino Jackpot)
p )
ƒ Acquired 76% stake in Marvel Resorts Pvt. Ltd. A i d 76% k i M
lR
P Ld
ƒ Acquired third off shore Casino i.e. Caravela
ƒ Raised INR 2,855 Mn. (US$70 Mn.) through Private placement
,
( $
)
g
p
ƒ Demerged Textile business
Demerged Textile business
ƒ Started operating two offshore Casinos
St t d
ti t
ff h
C i
ƒ Acquired 35% stake in Advani Hotels and Resorts Ltd. ƒ Raised INR 833 Mn. (US$ 18.5 Mn.) through QIP
(
)
g
2007 08
2007‐08
ƒ Entered into Real Estate business in East Africa, Nairobi
Entered into Real Estate business in East Africa Nairobi
ƒ Raised INR 1,230 Mn. (US$ 27Mn.) through Private Raised INR 1 230 Mn (US$ 27Mn ) through Private
placement l
t
2006 07
2006‐07
ƒ Ventured into Gaming & Hospitality business
Ventured into Gaming & Hospitality business
1990 91
1990‐91
ƒ Started as a Textile and Real estate consultancy company Started as a Textile and Real estate consultancy company
5
Delta Corp Limited
‰ Delta Corp Limited (Delta Corp) is primarily engaged in two main lines of
business
‰ Gaming
G i g and
d Hospitality
H pi li y
‰ Real
R l Estate
E t t in
i East
E t Africa,
Af i Nairobi
N i bi
‰ Advantage of being an early entrant in both the businesses
‰ Listed
i d on the
h National
i
l Stockk Exchange
h g and
d Bombay
b y Stockk Exchange
h g with
ha
market capitalisation of over US$400 Mn.
Mn
‰ Largest gaming company in India (offering 725 gaming positions) and the only
listed company in this space
‰ Strong foundation of a visionary Promoter supported by a competent
managementt team
t
‰ Equity investment from reputed private equity and institutional investors
i l di g ICICI Ventures
including
V
and
d RARE Enterprises.
E
pi
6
Unique Business Model
Ga
Gaming & g&
E t t i
Entertainment
t
• Th
Three live offshore casinos in Goa
li
ff h
i
i G
• One onshore (land based) casino in Daman
One onshore (land based) casino in Daman
• In principle, license to setup an additional casino in Daman
I
i i l li
ddi i
l
i i D
Hospitality
•
•
•
•
Real Estate
Real Estate
• East Africa : JV with Reliance Industries Limited E t Af i
JV ith R li
I d t i Li it d
35% stake in Advani Hotels & Resorts (India) Ltd
35%
stake in Advani Hotels & Resorts (India) Ltd
Acquired a 51% stake in Daman Hospitality (Thunderbird Resort
q
p
y
Acquired a 76% stake in Marvel Resorts Pvt Ltd
Acquired a 76% stake in Marvel Resorts Pvt. Ltd.
All suite flotel “Floating hotel” to cater to our high rolling guests g
g
gg
7
Delta’s
Delta
s Strength
I di ’ l
India’s largest Gaming company
tG i
State of the art gaming facilities and infrastructure
State of the art gaming facilities and infrastructure
Robust financial track record
Robust financial track record
St
Strong Balance Sheet
B l
Sh t
Well funded – Enabling Delta to capitalize on new opportunities
Well funded –
Enabling Delta to capitalize on new opportunities
Backed by visionary promoters and focused management team
y
yp
g
8
Corporate Structure
Delta Corp Limited
Delta Corp Limited 100%
100%
Delta Hospitality and p
y
Leisure Pvt. Ltd.
Delta Leisure and Delta
Leisure and
Entertainment Pvt. Ltd.
Entertainment Pvt. Ltd.
100%
Highstreet Cruises &Entertainment
51%
76%
51%
Marvel Resort
Marvel Resort
Daman Daman
Entertainme
nt Pvt Ltd
nt Pvt. Ltd
100%
Advani Advani
Pleasure
Pleasure Cruise
Cruise 3 %
35%
Advani Hotels
Advani
Hotels
(Ramada
(Ramada Caravela)
100%
Delta Pan Africa Delta
Pan Africa
Ltd.
40%
Real Estate Kenya
y
51%
Victor Hotels and Motels
DHPL
(Thunderbird
(Thunderbird Resorts)
76%
Casino Casino
Royale
Horseshoe
Casino
TBN
Gaming
Casino Casino
Jackpot
Casino Casino
Caravela
Marvel Resorts
((Holiday Inn)
y
)
Hospitality
Real Estate
Real Estate
9
Shareholding
NRIs
0 62%
0.62%
Individual
Shareholders
h h ld
35.83%
Promoters
44.18%
ICICI Ventures
ICICI
Ventures
7.16%
%
y
p
Other Body Corporate
11.26%
Institutions
0.95%
0
95%
As on 31
As
on 31st Mar 2011
Mar 2011
10
Industry Overview
11
Gaming in India
L tt
Lottery tickets –
ti k t for the ‘masses’
f th ‘
’
Cricket betting –
i k b i g in Indian blood !
i
di bl d !
$ b
$1.5bn Industry Industry
valued at
valued at wagered in wagered
in
one World W ld
Cup match
p
$12 5bn
$12.5bn
H
Horse Racing –
R i
f th ‘
for the ‘upper crust’
t’
BUT.. A Casino ?
U .. Cas o ?
Annual Annual
turnover Annual Annual
turnover
turnover >$250m
>$250m <$50
<$50m
12
Robust Gaming Growth
‰ Delta Corp is the leading Indian gaming operator looking to tap the enormous
potential of the Indian market
‰ Indians already have a high inclination towards gambling
‰ Rising income levels and favorable demographics
ƒ India has a veryy yyoung
gp
population
p
with a median age
g of jjust 25 yyears
ƒ The
Th younger Indian
I di population
l ti has
h more exposure to
t casino
i gaming
i through
th
h online
li
gaming sites as well as social networking sites
‰ Macau and Singapore testaments to the Asian tendency towards gambling
LV Strip
pg
gaming
g revenues(USD
(
Bn.))
8.0
8
0
7.0
6.0
50
5.0
4.0
3.0
2.0
10
1.0
0.0
15 0%
15.0%
10.0%
5.0%
0.0%
%
-5.0%
-10.0%
Source: Research Report
h
20
009
20
008
2010 YT
TD
Gaming revenues
20
007
20
006
20
005
20
004
20
003
20
002
-15.0%
YoY growth
Macau g
gaming
g revenues ((USD Bn.))
20.0
20
0
18.0
16.0
14 0
14.0
12.0
10.0
80
8.0
6.0
4.0
2.0
00
0.0
60%
50%
40%
30%
20%
10%
0%
2005
2006
2007
Gaming revenues
2008
2009
2010
YTD
YoY growth
13
Goa – The beach capital of India
‰ Goa is famous for its beaches and its coastline stretches across 131km of
land
‰ Goa attracts two million tourists in a year
1
‰ The annual expenditure made by tourists in Goa has been estimated at INR
15 81 Bn.
15.81
Bn
‰ Goa tourism generates
ƒ 13.7
3 % off the
h state’s
’ net domestic
d
i product
p d
ƒ 7% of employment
ƒ 7% off state tax revenues
‰ Goa is fast evolving as India
India’ss Gaming Capital
ƒ 6 Offshore
Off h
C i
Casinos
and
d 12 Land
L d based
b d Casinos
C i
1
*
http://www.goa‐tourism.com/abt_goa.asp?id=3 h
//
/ b
?d
Various publications
14
Opportunities in Gaming
S iL k
Sri Lanka –
P t ti l t dd t
Potential to add tremendous value d
l
FIPB approval in APCCPL
FIPB approval in APCCPL
New Horseshoe boat – a potential game changer
New Horseshoe boat a potential game changer
C
Competitive advantage ‐
titi
d t
Th
Three off shore casinos
ff h
i
First mover advantage
First mover advantage
15
Business Analysis
y
Gaming & Entertainment
Gaming & Entertainment
Hospitality
Real Estate
16
Footprint (Gaming & Hospitality)
Year Y
Opened/Acquired
Location
Gaming G
i
Positions
Horseshoe Casino
Horseshoe Casino
2011
Goa
1500
To commence in Jan 2012
To commence in Jan 2012
Casino Jackpot
Casino Jackpot
2011
Daman
1000
To commence in Oct 2011
To commence in Oct 2011
Casino Caravela
Casino Caravela
2010
Goa
190
Operational
C i R l
Casino Royale
2008
G
Goa
480
O
Operational
ti
l
Kings Casino
g
2008
Goa
‐
To be replaced by Horseshoe
p
y
Status
Casino
Stat s
Status
Year Y
Opened/Acquired
Location
Rooms
Thunderbird Resorts
2011
Daman
179
To commence in Oct 2011
M
Marvel Resorts*
lR
t*
2011
G
Goa
300
T
To commence in early
i
l 2014
Ramada Caravela**
Ramada Caravela
2008
Goa
202
Operational
Dolphin Floatel
2008
Goa
16
To commence in Oct 2011
commence in Oct 2011
Hotel
Note: * Expected to have 20,000 square feet of gaming space with 50 tables and 30 slots
*
** Delta holds 35% stake
17
G i &H
Gaming
Hospitality
it lit
Goa
18
Gaming Business
ƒ Goa and Sikkim are the only two Indian states which have issued live gaming casino
licenses. Goa issued 6
6* licenses in 2008, of which 3 are owned by Delta. A list of
licenses issued in Goa are as follows:
Name of Casino
Name of Casino
Owner
Operational
Casino Royale
Casino Royale
Highstreet Cruises & Entertainment (100% Subsidiary of DCL)
Cruises & Entertainment (100% Subsidiary of DCL)
Yes
Kings Casino**
g
Victor Hotels and Motels (100% Subsidiary of DCL)
(
y
)
No
Caravela (Casino
(
Goa)
Advani Pleasure Cruises Company Pvt. Ltd. (51% Subsidiary of p y
(
y
DCL)
Yes
Pride of Goa
Pride of Goa
Goa Coastal Resorts owned by
Goa Coastal Resorts
owned by Khetarpal
Yes
Boa Sorte
Boa Sorte
Salgaonkar Group
Salgaonkar
Group – business family based in Goa, owners of the business family based in Goa, owners of the
Marriott Hotel Goa
Marriott Hotel, Goa Yes
Casino Rio
Casino Rio
MDLR Group
MDLR
Group – has diversified interests in real estate, hospitality & has diversified interests in real estate hospitality &
resorts restaurants and airlines
resorts, restaurants and airlines
No
No new licenses are expected to be issued in Goa
No new licenses are expected to be issued in Goa
• One license was issued prior to 2008 (Casino Goa) and 5 were issued in 2008
l
d
(
) d
d
**
** to be replaced by Horseshoe
19
Casino Royale
‰ India’s
India s largest live offshore gaming casino with 4 operational
decks, covering an area of 31,900 sq ft
Casino Royale
y
‰ Offering 480 live gaming positions, live kitchen of 6,000 sq.
ft and
ft.
d other
th entertainment
t t i
t areas like
lik amphitheater
hith t with
ith live
li
music
‰ Other facilities include a crèche,
crèche a helipad and 3 suites
usually
ll occupied
i d by
b high
hi h rollers
ll and
d their
th i families
f ili
‰ It also
l offers
ff
separate
t VVIP and
d VIP gaming
i rooms for
f high
hi h
rollers
G i D k
Gaming Deck
‰ Within two years of operations,
operations Casino Royale has witnessed
over 250,000
,
visitations
Live Entertainment
Live Entertainment
20
Kings Casino
‰ Horseshoe our new boat will be home to the erstwhile Kings
Casino
‰ Horseshoe is expected to have 1,500 gaming positions with
155 tables
t bl and
d 250 slot
l t machines
hi
Horseshoe
‰ Positioned
P iti
d to
t attract
tt t higher
hi h visitation
i it ti
‰H
Horseshoe
h purchased
h d from
f
H
Harrah’s
h’ (Caesar's
(C
' Corporations)
C
ti )
Gaming for an all in cost of INR 600 Mn.
Mn
Gaming Deck
Gaming Deck
‰ Horseshoe is expected to commence operations at the start
off Jan
J 2012 in
i order
d to coincide
i id with
i h Goa’s
G ’ p
peakk season and
d
reap maximum benefits
21
Caravela
‰ Delta Corp owns 51% in Advani Pleasure Cruise Company
Pvt. Ltd. (APCCPL) which in turn owns the Caravela casino;
India’s first offshore live gaming casino
Caravela
‰ APCCPL is
i currently
tl the
th only
l gaming
i entity
tit in
i India
I di which
hi h has
h
FIPB approval
‰ Caravela offers 190 gaming positions with 20 live gaming
t bl and
tables
d 10 slots
l t machines
hi
G i D k
Gaming Deck
22
Hotel Operations in Goa
Delta holds a 35% stake in Advani Hotels & Resorts
Delta
holds a 35% stake in Advani Hotels & Resorts
5‐star
5
star deluxe luxury beach resort deluxe luxury beach resort
ƒ 202 operational rooms
202 operational rooms
ƒ 2,000 square feet of gaming space
2,000 square feet of gaming space
‰ FSI available of approximately 60,000 square feet
FSI
il bl f
i t l 60 000
f t
‰ Dining amenities and other facilities Dining amenities and other facilities
‰
‰
Ramada Caravela Beach Resort
Ramada Caravela Beach Resort
R f
Reference Picture
Pi t
Marvel Resorts
Marvel Resorts 300 room luxury hotel
300
l
h t l
Integrated resort hotel with gaming and entertainment
Integrated resort hotel with gaming and entertainment f iliti
facilities
‰ 20,000 square feet of gaming space
20 000 square feet of gaming space
‰ Multi cuisine restaurant and high end Spa
M li ii
d hi h d S
‰ Expected to commence operations from Jan 2014
Expected to commence operations from Jan 2014
‰
‰
Goa’s first Floating hotel
Goa’s
first Floating hotel
16 all‐suite
16 all
suite rooms
rooms
Will be most the most l rio s accommodation for
Will be most the most luxurious accommodation for our high rolling guests
our high rolling guests
‰ Expected to commence operations from Oct 2011
E
t dt
ti
f
O t 2011
‰
‰
‰
D l hi Fl
Dolphin Floatel
l
23
Gaming
g & Hospitality
p
y
Daman
Daman
24
Thunderbird Resorts
‰ Largest integrated resort convention complex in
Daman ((spread
p d over 10 acres)) and
d in India
d
‰ 179 five star plus category hotel rooms
‰ 60,000
60 000 square feet of gaming space
Room Rendering
g
‰ 29,000
29 000 sq
q ft
f off indoor
i d
event and
d meeting
i g area
and 70,000
70 000 sq ft of outdoor pools and events
area
‰ Three bars and four restaurants
‰ High
High‐end
end end shopping facility,
facility spread over large
area
Casino Rendering
25
R l Estate
Real
E t t in
i Kenya,
K
Nairobi
N i bi
26
Real Estate
Kenya y
‰ With a GDP of $39 Bn (nom),
(nom) Kenya is the 5th largest African economy
‰ Kenya
Kenya’ss current population is approximately 40 Mn.,
Mn growing at 2.6%
2 6% per year
‰ Expanding middle
middle‐class
class population of 2 Mn.,
Mn creating a strong demand for
ggoods and services
‰ 90% off Adults
Ad lt in
i Kenya
K y are literate
lit t and
d speak
p k the
th English
E gli h language
l g g
‰ A stable democratic republic
rep blic with
ith a history
histor of progressive
progressi e policies
N i bi
Nairobi ‰ Nairobi is the political and financial capital of Kenya
‰ With a population of 3 Mn.,
Mn Nairobi is the most populous city in East Africa
‰ Busiest airport in East Africa serving 5 Mn passengers per year
27
Real Estate in Nairobi
‰ Delta Corp entered into a 40:60 JV with a wholly‐owned
wholly owned subsidiary of Reliance
Industries Limited to develop real estate in East Africa
‰ The
Th JV has
h already
l dy invested
i
t d INR 2 Bn
B and
d has
h acquired
q i d9p
plots
l t off land
l d in
i p
prime
i
locations of Nairobi
ƒ Approximately 2Mn. Sq. ft. is to be developed for commercial and
residential purposes
ƒ Currently,
Currently four live projects are under various stages of development
‰ Delta Corp has recently consummated the sale of its development namely,
namely
Delta
D
lt Centre
C t to
t World
W ld Bank
B k for
f an amountt off approximately
pp i t ly KES 1.98Bn
1 98B ((US$
22 8 Mn).
22.8
Mn)
‰ Delta Corp has successfully developed and leased one project to the Kenyan
Ministry of Justice & Constitutional Affairs
‰ Delta Corp aims to continuously expand its respectiveland bank in East Africa
f future
for
f
d l p
developments
28
Projects in Nairobi
Project
Delta Corner
Delta Corner
Delta Center
Delta Center
Delta River Side
Delta River Side
Delta Plains
Delta Plains
Artistic
Artistic Impression
/A t l
/Actual Photos
Sold
Location
Westlands Upper Hill
Westlands Athi River Project j
plan
C
Commercial
i l
C
Commercial
i l
C
Commercial
i l
R id ti l
Residential
Land area
Land area
2 2 acres
2.2 acres
0 89 acres
0.89 acres
1 2 acres
1.2 acres
10 acres
10 acres
FSI
2.4
3.76
1.14
‐
29
Financial Performance
30
Strong Financial Performance
Quarterly
y Gaming
g Revenues ((US$ Mn.))
70
7.0
6.0
50
5.0
40
4.0
3.18
3.64
3 96
3.96
3.87
Q3 FY10
Q3 ‐
Q4 FY10
Q4 ‐
5.00
5 11
5.11
Q1 FY11
Q1 ‐
Q2 FY11
Q2 ‐
6.13
6.07
Q3 FY11
Q3 ‐
Q4 FY11
Q4 ‐
30
3.0
2.0
10
1.0
00
0.0
Q1 FY10
Q1 ‐
Particulars (US$ Mn.)
( $
)
Total Income
Total
Income
Operating Expenditure
EBDITA
% EBDITA
% EBDITA
Q2 FY10
Q2 ‐
Gaming and Hospitality Gaming
and Hospitality
31 M 10
31‐Mar‐10
31 M 11
31‐Mar‐11
14.60 14
60
12.12 2.49 17%
22.53
22
53
16.22 6.31 28%
Consolidated Consolidated
31 M 11
31‐Mar‐11
85.03
85
03
42.48 42.55 50%
31
Annexure
32
Management Team
Jaydev Mody
yd
dy
Chairman
Delta Corp Ltd
Delta Corp Ltd.
Ashish Kapadia
Ashish Kapadia
Managing Director
M
i Di t
Delta Corp Ltd.
ƒ Jaydev
y
has over 25 yyears of experience
p
in the field of real estate
development and textiles
ƒ He has been responsible for developing
de eloping several
se eral residential
complexes,
p
, office complexes
p
and retail destinations in and around Mumbai
including ‘Crossroads’
Crossroads – Mumbai
Mumbai’ss first large format retail mall equipped
with
ith international
i t
ti
l standards
t d d
ƒ Ashish
hi h is
i an entrepreneur and
d has
h successfully
f ll established
bli h d and
d managed
d
several businesses. He holds over 15 years of work experience
ƒ He has experience in various industries including paints,
paints textiles,
textiles polyester,
polyester
financial services and aviation
ƒ Nileesh has over 30 years of experience inconductingvarious successful
Nileesh A Shah
Nileesh A. Shah
businesses in East Africa
Executive Vice‐Chairman
Executive Vice
Chairman ƒ He has experience in various industries including business supplies in
Delta Corp East Africa
Delta Corp East Africa
emergency aid
id equipment
i
t to
t NGOs
NGO operating
ti outt off East
E t Africa
Af i and
d also
l
engaged
g g in the business of import
p & distribution of fertilizers
33
Management Team
Narinder Punjj
Managing Director
Managing
Director
Hi h t t C i
Highstreet Cruises
& Entertainment
Hardik Dhebar
Group CFO
Group
CFO
Delta Corp Ltd
Delta Corp Ltd.
Anil Malani
Anil Malani
President of Operations
f p
Highstreet Cruises &
Highstreet Cruises &
Entertainment
ƒ Narinder has over 30 of experience
p
in hospitality,
p
y entertainment and
gaming
ƒ Narinder’s previous employment includes hotels,
hotels land based and cruise
based casinos namelyy Hotel Holidayy Inn ‐ Juhu,, Hotel Al Mansour Melai ‐
Baghdad Royal Caribbean Cruise Lines,
Baghdad,
Lines Royal Viking Lines,
Lines Norwegian
C i Lines,
Cruise
Li
C i Poland,
Casino
P l d Casino
C i Goa
G and
d Casino
C i Bucharest
B h
t
ƒ Narinder has completed
p
his bachelor in Commerce degree
g
from St. Xavier‘s
College Kolkata
College,
ƒ Hardik has over 14 years of experience in finance,
finance treasury operations and
also
l has
h exposure in
i M&A and
d financial
fi
i l restructuring
i
ƒ Hardik
Hardik’ss previous employment includes large listed companies like the
Piramal group ofcompanies i.e.Nicholas
i e Nicholas Piramal Limited,
Limited Morarjee Textiles
Limited
d and
d Peninsula
l Land
d Limited
d
ƒ Anil has over
o er 25 years
ears of experience
e perience various
ario s in businesses
b sinesses namely
namel
hospitality,
p
y, entertainment,, IT,, electronics and office automation
ƒ Anil
Anil’ss previous employment includes Esquire Group of Companies,
Companies Aims
I t’l Ltd and
Int’l
d Amazon
A
F d & Beverages
Food
B
(P) Ltd (Garcia’s
(G i ’ Famous
F
Pi )
Pizza)
ƒ Prior to jjoiningg Delta Corp
p Anil was with Clover Solar Pvt. Ltd.
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