[PPT] - Q2|2018 PERFORMANCE RESULTS PRESENTATION FOR INVESTOR & ANALYST PowerPoint Presentation

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Q2|2018 PERFORMANCE RESULTS

PRESENTATION FOR INVESTOR & ANALYST

SLIDE 2

The information contained in this presentation is for information purposes only and does not constitute an offer or invitation to sell or the solicitation of an offer or invitation to purchase or subscribe for share in Siamgas and Petrochemicals Public Company Limited (“SGP” and shares in SGP, “shares”) in any jurisdiction or should it or any part of it form the basis of, or be relied upon in any connection with, any contract or commitment whatsoever. This presentation may include information which is forward-looking in nature. Forward- looking information involve known and unknown risks, uncertainties and other factors which may impact on the actual outcomes, including economic conditions in the markets in which SGP operates and general achievement of SGP business forecasts, which will cause the actual results, performance or achievements of SGP to differ, perhaps materially, from the results, performance or achievements expressed or implied in this presentation. This presentation has been prepared by the SGP. The information in this presentation has not been independently verified. No presentation, warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information and opinions in this presentation. None of the SGP or any

f its agents or advisers, or any of their respective affiliates, advisers or

representatives, shall have any liability (in negligence or otherwise) for any loss howsoever arising from any use of the presentation or its contents or otherwise arising in connection with this presentation. This presentation is made, furnished and distributed for information purposes only. No part of this presentation shall be relied upon directly or indirectly for any investment decision-making or for any other purposes. This presentation and all other information, materials or documents provided in connection therewith, shall not, either in whole or in part, be reproduced, redistributed

r made available to any other person, save in strict compliance with all applicable

laws.

DISCLAIMER

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SLIDE 3

AGENDA

Business Overview
Thailand Business
Oversea Business
Financial Results
Business Outlook
Q & A

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SLIDE 4

6.5% 17.9% 14.3%

SHAREHOLDING STRUCTURE

Latest book closing : On 31 AUG 2018

MANAGEMENT PUBLIC Fund

61.3% 38.7%

4

Thai NVDR Retail

SLIDE 5

MILESTONES

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SUSTAINABLE GROWTH

2 4 2 1 1 2 1 6 2 8 1 9 7 6 2 1 2 1 3 2 5

Invest in 10 MW. Power Plant and transmission line in Myanmar

2 1 8

SLIDE 6

Business operation

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THAILAND OVERSEA

1. LIQUEFIED PETROLEUM GAS (LPG)
1. LIQUEFIED PETROLEUM GAS (LPG)
2. ROAD TRANSPORTATION
SINGAPORE
3. MARINE TRANSPORTATION
CHINA
4. CYLINDER MANUFACTURING
MALAYSIA
5. ETHANOL MANUFACTURING AND TRADING
VIETNAM
6. OIL RETAIL BUSINESS
2. COMBINE CYCLE POWER PLANT – MYANMAR
7. CONTAINER TERMINAL SERVICE BUSINESS
3. DIESEL POWER PLANT – MYANMAR

SLIDE 7

BUSINESS UPDATE

Thailand

The Company is expanding petrol with LPG station. Set up Siamgas LNG and plan to build LNG terminal.

Overseas

The Company is constructing terminal and filling plants in Myanmar. The Company is constructing filling plant in Penang Malaysia. The Company is reconditioning terminal in North port Malaysia. The Company is planning to invest in other high growth potential countries in Asia.

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SLIDE 8

SGP’s PRESENCE

8

OTHER business LPG business

MYANMAR, ANIN | SMD POWERPLANT & TRANSMISSION LINE 10 MW.

SLIDE 9

AGENDA

Business Overview
Thailand Business
Oversea Business
Financial Results
Business Outlook
Q & A

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SLIDE 10

THAILAND BUSINESS MODEL

REFINERIES & GAS SEPARATION PLANTS SGP TERMINALS & DEPOTS SGP FILLING PLANTS AGENT FILLING PLANTS LPG RETAILERS SGP AUTO-LPG STATIONS AGENT AUTO-LPG STATIONS

MOTORISTS HOUSEHOLD USERS COMMERCIAL USERS INDUSTRIAL USERS COOKING AUTOMOTIVE INDUST.

SGP LPG IMPORT

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SLIDE 11

SGP’s NETWORK IN THAILAND

11

FILLING PLANT & AUTOGAS STATION Company Filling Plants x 40 Agent Filling Plants x 151 Company Autogas Stations x 45 Agent Autogas Stations x 497

6.Khonkaen 1.Bangkok 3.Chachoengsao 4.Nakornsawan 5.Lampang 8.Songkhla 7.Suratthani 2.Samutprakan

25 8 500

vessels terminals roadtankers Floating Storage

SLIDE 12

THAILAND LPG MARKET

12

1,039 1,005 1,001 493 247 253 241 3,370 3,171 3,107 1,511 759 767 744 4,409 4,177 4,108 2,004 1,006 1,020 984 2015 2016 2017 6M|2018 2Q'17 1Q'18 2Q'18 SGP Group Others Total

SGP GROUP 24.6%

OTHERS 75.4%

6M|2018 LPG market size 2.01 million TON

Cooking 1.07 million TON (53.6%) Automotive 0.60 million TON (29.8%) Industrial 0.33 million TON (16.6%)

Average growth (’13-’17) -2.7%

MKT SHARE 6M|2018 MARKET SHARE

1. PTT 40.8 %
2. SGP 24.6 %
3. WP 18.3 %
4. OTHER 16.3 %

2

LPG Sales Volume (‘000 tons) | ALL SECTORS

YoY: Total -2.2% | SGP -2.5% QoQ: Total -3.5% | SGP -4.8%

3.3%
5.3%
0.4%
1.6%

SLIDE 13

COOKING MARKET

13

SGP GROUP 27.7%

OTHERS 72.3%

610 619 616 298 151 153 144 1,484 1,491 1,534 776 368 394 382 2,094 2,110 2,151 1,074 519 547 527 2015 2016 2017 6M|2018 2Q'17 1Q'18 2Q'18 SGP Group Others Total Cooking

LPG Sales Volume (‘000 tons) | COOKING SECTORS

61%

COOKING PORTION

MKT SHARE 6M|2018 MARKET SHARE

1. PTT 49.4 %
2. SGP 27.7 %
3. WP 20.0 %
4. OTHER 2.9 %

2

+1.4% +0.8%

0.4%

+1.9%

YoY: Total +1.5% | SGP -4.0% QoQ: Total -3.7% | SGP -5.6%

SLIDE 14

AUTOMOTIVE MARKET

14

292 245 230 116 60 59 57 1,439 1,221 1,089 481 275 244 237 1,731 1,466 1,319 597 335 303 294 2015 2016 2017 6M|2018 2Q'17 1Q'18 2Q'18 SGP Group Others Total Automotive

LPG Sales Volume (‘000 tons) | AUTOMOTIVE SECTORS

24%

AUTOMOTIVE PORTION

SGP GROUP 19.4% OTHER S 80.6%

MKT SHARE 6M|2018 MARKET SHARE

1. SGP 19.4 %
2. WP 19.3 %
3. PTT 17.7 %
4. OTHER* 43.6 %

1

* 10 company

16.3%
15.3%
5.9%
10.0%

YoY: Total -12.2% | SGP -4.9% QoQ: Total -3.0% | SGP -3.5%

SLIDE 15

INDUSTRY MARKET

15

137 142 155 80 36 41 39 448 459 483 253 116 129 124 584 600 638 333 152 170 164 2015 2016 2017 6M|2018 2Q'17 1Q'18 2Q'18 SGP Group Others Total Industrial

LPG Sales Volume (‘000 tons) | INDUSTRY SECTORS

16%

INDUSTRY PORTION

SGP GROUP 24.0%

OTHERS 76.0%

MKT SHARE 6M|2018 MARKET SHARE

1. PTT 54.4 %
2. SGP 24.0 %
3. WP 11.2 %
4. OTHER 10.4 %

2

+2.8% +3.7% +6.3% +9.3%

YoY: Total +7.4% | SGP +8.0% QoQ: Total -3.6% | SGP -3.5%

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155 145 153 157 157 145 156 161 159 151 152 155 153 144

75

75 72 70 64 62 60 58 57 60 57 57 59 57

35

34 35 34 35 33 37 37 39 36 41 39 41 39

265

254 260 260 256 241 253 256 254 247 249 251 253 241

1Q'15

2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18 2Q'18 3Q'18 4Q'18

Cooking Automobile Industrial

LPG market (Volume sale by SGP)

LPG Sales Volume (‘000 tons) | By SECTORS

|----------- 1,039 ------------| |----------- 1,005 ------------| |----------- 1,001 ------------| |------------- 493 ------------|

Industrial Cooking Automobile

59% 28% 13% 2 0 1 5 2 0 1 6

Industrial Cooking Automobile

62% 24% 14%

16

2 0 1 7

Industrial Cooking Automobile

62% 23% 15% 2 0 1 8

Industrial Cooking Automobile

60% 24% 16%

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AGENDA

Business Overview
Thailand Business
Oversea Business
Financial Results
Business Outlook
Q & A

17

SLIDE 18

REGIONAL LPG WHOLESALE MODEL

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SLIDE 19

HUGE STORAGE IN CHINA

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SLIDE 20

Storage Caverns

Total : 300,000 Tons Zhuhai : 200,000 Tons Shantou : 100,000 Tons

COMBINED LARGEST STORAGE IN CHINA

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SLIDE 21

HISTORICAL CP PRICE MOVEMENT

21

2015 2014 2006 2007 2008 2009 2010 2011 2012 2013

8 4 9 3 5 7 8 4 6 6 7 5 7 5 6 6 2 10

46.5

+385.0

535.0

+387.5 +200.0

130.0

+185.0 +182.5

602.5

6 6

92.5

2016

6 6

67.5

2017

6 4 2

+180.0

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54.9 55.5 52.0 53.1 50.9 46.9 48.7 51.4 55.2 57.6 62.6 64.2 69.1 65.7 66.7 71.8 77.0 75.9 75.0 73.8 77.4 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0

Brent Oil

435 510 480 430 385 385 345 420 480 575 575 590 590 525 480 475 500 560 555 580 600 495 600 600 490 390 390 365 460 500 580 580 570 570 505 465 470 505 560 570 595 635 100 200 300 400 500 600 700

Propane [C3] Butane [C4]

Saudi Aramco CP vs Crude oil

22

USD/TON USD/BARREL

6 4

+180.0

2 5 2

+37.5

2

2017 2018 Q1 +140.0

107.5

Q2

152.5

+87.5 Q3 +102.5 +57.5 Q4 +90.0 2017 2018 Q1

2.1

+2.5 Q2

5.1

+9.2 Q3 +8.3 +1.5 Q4 +9.1

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Singapore Market (1/2)

23

421,639 398,361 Actual 2018 Remaining target

177,271 166,138 255,501 2Q17 1Q18 2Q18 56,906 463,104 664,255 946,394 663,564 589,188 543,452 709,317 2010 2011 2012 2013 2014 2015 2016 2017

By SIAM GAS TRADING PTE. LTD.(100% owned)

+713.8 % +43.4 % +42.5 %

29.9

%

11.2

%

7.8

% +30.5 % YoY +44.1 % QoQ +53.8 %

Trading business >>>

Target volume 820,000 tons Growth 11.3 % yoy Success 51.4 %

ANNUALLY | SALE VOLUME (TONS) QUARTERLY | SALE VOLUME (TONS)

6 MONTHS

SLIDE 24

Singapore Market (2/2)

24

10,707 11,293 Actual 2018 Remaining target 5,255 5,426 5,282 2Q17 1Q18 2Q18 YoY +0.5 % QoQ

2.7

% 8,793 17,872 25,683 24,375 21,041 21,401 21,772 21,575 2010 2011 2012 2013 2014 2015 2016 2017 +103.3 % +43.7 %

5.1

%

13.7

% +1.7 % +1.7 %

0.9

%

By Singgas (lpg) pte. Ltd. (95% owned)

Retail business >>>

Target volume 22,000 tons Growth 0.6 % yoy Success 48.7 %

ANNUALLY | SALE VOLUME (TONS) QUARTERLY | SALE VOLUME (TONS)

6 MONTHS

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China Market

25

624,105 725,895 Actual 2018 Remaining target

294,561 333,572 290,533

2Q17 1Q18 2Q18 YoY

1.4

% QoQ

12.9

%

121,705

87,969 338,229 345,645 909,874 1,200,167 1,219,477 2010 2011 2012 2013 2014 2015 2016 2017

27.7

% +284.5 % +2.2 % +163.2 % +31.9 % +1.6 %

By 1. sinosiamgas and petrochemicals co., ltd. (100% owned)

2. siam ocean gas & energy ltd. (100% owned)

Retail business >>>

Target volume 1,350,000 tons Growth 10.7 % yoy Success 46.2 %

ANNUALLY | SALE VOLUME (TONS) QUARTERLY | SALE VOLUME (TONS)

6 MONTHS

SLIDE 26

Vietnam Market

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14,973 35,027 Actual 2018 Remaining target 12,325 8,229 6,743 2Q17 1Q18 2Q18 12,380 26,496 19,972 67,388 185,274 166,814 143,628 44,785 2010 2011 2012 2013 2014 2015 2016 2017 +114.0 %

24.6

% +237.4 % +173.9 %

10.0

%

13.9

%

68.8

% YoY

45.3

% QoQ

18.1

%

By 1. supergas company limited (100% owned)

2. citygas north company limited (70% owned)

Retail business >>>

Target volume 50,000 tons Growth 11.6 % yoy Success 29.9 %

ANNUALLY | SALE VOLUME (TONS) QUARTERLY | SALE VOLUME (TONS)

6 MONTHS

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Malaysia Market

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72,681 95,319 Actual 2018 Remaining target 31,952 36,352 36,330 2Q17 1Q18 2Q18

Target volume 168,000 tons Growth 25.7 % yoy Success 43.3 %

52,592

91,696 95,600 116,790 122,149 2010 2011 2012 2013 2014 2015 2016 2017 +74.4 % +4.3 % +22.2 % +4.6 % YoY +13.7 % QoQ

0.1

%

By mygaz sdn. bhd. (70% owned)

Retail business >>>

ANNUALLY | SALE VOLUME (TONS) QUARTERLY | SALE VOLUME (TONS)

6 MONTHS

SLIDE 28

Total oversea volume

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78,079 629,177 797,880 1,428,978 1,307,220 1,782,877 2,025,809 2,117,303 2010 2011 2012 2013 2014 2015 2016 2017 1,144,105 1,265,895 Actual 2018 Remaining target 521,364 549,717 594,388 2Q17 1Q18 2Q18 +705.8 % +26.8 % +79.1 %

8.5

% +36.4 % +13.6 % +4.5 % YoY +14.0 % QoQ +8.1 %

Target volume 2,410,000 tons Growth 11.8 % yoy Success 47.5 %

ANNUALLY | SALE VOLUME (TONS) QUARTERLY | SALE VOLUME (TONS)

6 MONTHS

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AGENDA

Business Overview
Thailand Business
Oversea Business
Financial Results
Business Outlook
Q & A

29

SLIDE 30

31.6% 27.5% 39.2% 0.4% 1.3%

Thailand Offshore Oversea business Logistic Other (Servuce & Other)

37.0% 19.1% 42.0% 0.7% 1.2%

REVENUE PORTION

Q2|2017

Thailand 38.8% Oversea 61.2%

Q2|2018

Thailand 33.3% Oversea 66.7%

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SLIDE 31

5,002 5,056 5,174 5,005 5,118 8,274 8,921 12,115 10,521 10,803 251 175 227 217 264 13,527 14,151 17,516 15,743 16,185 Q2|2017 Q3|2017 Q4|2017 Q1|2018 Q2|2018 10,111 10,123 17,367 21,324 481 481 27,959 31,928 6M|2017 6M|2018 23,486 24,274 22,921 19,792 20,340 40,822 36,903 34,661 27,902 38,403 1,438 980 752 678 883 65,746 62,157 58,334 48,371 59,627 2013 2014 2015 2016 2017

Full year and quarterly Revenue [Bt.m]

31

Local TH Oversea Other

Revenue by year yoy

+2.8%

qoq

+19.7%

yoy Revenue by quarter

6M|2018 Consolidated revenue of Bt.31,928 m shows a 14.2% yoy growth

Revenue 6 month

+14.2%

yoy

+23.3%

SLIDE 32

Full year and quarterly EBITDA [Bt.m]

32

2,183 1,870 7.81% 5.86% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 1,500 1,600 1,700 1,800 1,900 2,000 2,100 2,200 6M|2017 6M|2018 EBITDA EBITDA MARGIN 450 1,321 1,690 588 1,282 3.32% 9.33% 9.65% 3.73% 7.92% 0% 2% 4% 6% 8% 10% 12% 14%

200

400 600 800 1,000 1,200 1,400 1,600 1,800 Q2|2017 Q3|2017 Q4|2017 Q1|2018 Q2|2018 EBITDA EBITDA MARGIN 2,786 1,164 2,836 2,860 5,193 4.24% 1.87% 4.86% 5.91% 8.71% 0% 2% 4% 6% 8% 10% 12% 14%

1,000

2,000 3,000 4,000 5,000 6,000 2013 2014 2015 2016 2017 EBITDA EBITDA MARGIN

EBITDA by year

EBITDA margin : 7.92% in Q2|2018 increased from 3.32% in Q2|2017

6M|2018 Consolidated EBITDA of Bt.1,870 m a decline of 14.4% yoy

EBITDA by Quarter EBITDA 6 month

SLIDE 33

Gross profit margin & Net profit margin

33

291 1,307 1,706 469 1,055

76

845 889 101 766 2.18% 9.29% 9.82% 3.01% 6.60%

0.56%

5.97% 5.07% 0.64% 4.73%

2%

0% 2% 4% 6% 8% 10% 12% (200)

200

400 600 800 1,000 1,200 1,400 1,600 1,800

Q2|2017 Q3|2017 Q4|2017 Q1|2018 Q2|2018

3,037 2,891 4,947 1,116 1,119 2,811 5.23% 6.00% 8.36% 1.91% 2.31% 4.71%

0% 1% 2% 3% 4% 5% 6% 7% 8% 9% (1,000)

1,000

2,000 3,000 4,000 5,000 6,000

2015 2016 2017

Gross profit margin : 6.60% in Q2|2018 increased from 2.18% in Q2|2017 Net profit margin : 4.73% in Q2|2018 increased from -0.56% in Q2|2017

1 2 3 4

Gross profit = 1,055 Bt.m Gross profit margin = 6.60% Net profit margin = 4.73% Net profit = 766 Bt.m

1 2 3 4

YEARLY 6 MONTHS QUARTERLY

1,934 1,523 1077 866 6.98% 4.82% 3.82% 2.71%

0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00%

500

1,000 1,500 2,000 2,500

6M|2017 6M|2018

SLIDE 34

FINANCIAL POSITION

34

4,489 6,986 Loan from financial institution Debenture

0.99 1.06 1.20 0.97 1.03 1.08 1.14 0.95 0.85

1.05

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18

11,308 11,131 5,297 5,492 6,448 5,180 4,321 5,681 4,084 6,296 31 DEC 2017 30 JUN 2018 Short term loan Current liabilities Long term Debt Non current liabilities Total Equity 15,646 16,465 9,152 10,352 4,070 4,936 2,590 2,026 31 DEC 2017 30 JUN 2018 Cash & Equivalents Inventory Other asset PP&E

ASSET (THB Million) LIABILITIES & EQUITY (THB Million)

31,458 33,779

DEBT PORTION

LOAN FROM FINANCIAL INSTITUTION 4,489 DEBENTURE 6,986 TOTAL 11,475 (THB Million)

Interest Bearing Debt (Times)

COMPANY RATING

BBB+ Stable

BOND RATING

BBB+ Stable

BOND with CGIF RATING

A+ Stable

31,458 33,779

SLIDE 35

AGENDA

Business Overview
Thailand Business
Oversea Business
Financial Results
Business Outlook
Q & A

35

SLIDE 36

OUTLOOK 2018

36

2011 2012 2013 2014 2015 2016 2017

Malaysia & Singapore Vietnam China SGP Offshore Trading SGP - Thailand

LPG Sales Volume (Tons)

30% 11% 9% 16% 7% 7%

Sales volume (TONs) 2016 2017 Outlook 2018 6M|2018 % Success SGP - Thailand 1,016,965.56 1,030,660.58 1,100,000.00 506,409.98 46.0% SGP Offshore Trading* 543,451.66 736,544.45 820,000.00 421,638.72 51.4% China 1,200,167.37 1,219,476.64 1,350,000.00 624,104.85 46.2% Vietnam 143,628.32 44,784.87 50,000.00 14,972.92 29.9% Malaysia & Singapore 138,561.38 155,507.90 190,000.00 83,388.59 43.9% GRAND TOTAL 3,042,774.29 3,186,974.44 3,510,000.00 1,650,535.06 47.0% Oversea business 2,025,808.73 2,156,313.86 2,410,000.00 1,144,105.08 47.5% Domestic portion 33.4% 32.3% 31.3% 30.7% Oversea portion 66.6% 67.7% 68.7% 69.3% Growth (%)

8.7%

4.7% 10.1%

SLIDE 37

0.15 0.20 0.20 0.15 0.15 0.10 0.15 0.20 0.15 0.50 0.25 0.25 0.30 0.30 0.30 0.25 0.50 0.20 0.30 0.35 1.00 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Interim Final

DIVIDEND PAYMENT

37

Dividend Policy

The Company has established the policy to pay dividends to the shareholders at the rate of not less than 40% of the net profit after corporate income tax, accumulated loss brought forward (if any) and appropriation of statutory reserve in accordance with the Company’s separate financial statements. However, the Board of Directors may set the rate of dividend less than the one mentioned above depending

n the operating results, financial

situation, liquidity and the necessity to expand the operation as well as the reserve on circulating capital of the operating of the organization.

Historical dividend payment

Unit : Baht/annum SGP split par from Bt1.00 to Bt 0.50 in May 2018

SLIDE 38

Q & A

Questions are welcomed !

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