Shiva Texyarn Limited has informed the Exchange about Investor Presentation
SHIVA TEXYARN LIMITED
Regd. Office: 52, East Bashyakaralu Road, R.S.Puram, Coimbatore - 641 002, Tamilnadu INDIA Telephone : 0422 - 2544955 E-mail: shares@shivatex.co.in Website: www.shivatex.co.in CIN: L65921TZ1980PLC000945 GSTRN: 33AABCA6617M1ZO
STYL/SEC/59/2022-23
11th August 2022
To
BSE Limited
Floor 25
The Manager
Listing Department
Phiroze Jeejeebhoy Towers
National Stock Exchange of India Limited
Dalal Street
Mumbai 400 001
"Exchange Plaza", Bandra-Kurla Complex
Bandra {East), Mumbai 400 051
Scrip Code:- 511108
Scrip Code: SHIVATEX
Dear Sir,
SUB:- INVESTOR PRESENTATION - REG.
We are attaching herewith the Investors' Presentation to be made to the Investors
for the quarter ended 30.06.2022 as per Regulation 30{6) of SEBI {Listing
Obligations and Disclosure Requirements), Regulation 2015 read with Part A of
Schedule Ill of the Listing Regulations.
Pursuant to Regulation 46{2){o) of the Listing Regulations, the aforesaid information
is also available on the website of the Company www.shivatex.in.
Thanking you
Yours faithfu)ly
For Shiva Texyarn Limited
·lv-R.SRINIVASAN
Company Secretary M.No.21254
Shiva Texyarn Limited Result Update Presentation Q1 FY23
Focus on Technologically Advanced, Innovative & Eco-friendly products
Disclaimer
This presentation has been prepared by Shiva Texyarn Limited (the “Company”) solely for information purposes and does not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment what so ever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.
This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded.
Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the Company’s ability to successfully implement its strategy, the Company’s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections.
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Table of Contents
Managing Director’s Message
Financial Highlights
Company Overview
Business Overview
Way Ahead
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Managing Director’s Message
Managing Director’s Message
Commenting on the results, Dr. S K Sundararaman, Managing Director, Shiva Texyarn Ltd. said:
“Performance for the first quarter of this new fiscal year was in line with our expectations. The domestic market has been facing headwinds from volatile cotton prices and relatively flat demand post the pandemic. However, Shiva’s diversified product portfolio continues to be its distinguishing factor and our strength.
Our revenue for Q1 FY23 grew 48.73% year-on-year to Rs. 127.52 cr, while EBITDA and PAT stood at Rs. 7.26 cr and Rs. 0.61 cr, respectively. Growth in top line was mainly since the first quarter of the previous year was more severely impacted by the COVID-related lockdown. The benefit of better realizations was offset by continued increase in cotton prices, impacting profit margins. During this quarter, technical textiles accounted for 21.3% of our top line.
In line with our strategy to diversify the product portfolio, we continue to focus on seamless garments, which is a high-growth potential segment. In July 2022, we launched seamless saree shapewear as part of innerwear range of products for the domestic market. Meanwhile, our lamination products continue to gain traction, backed by our robust spinning business.
We also recently won another order for bags from the Ministry of Defence, which was executed on schedule. Being the supplier of choice for the armed forces reinforces our adherence to high quality standards and timely delivery. We hope to continue this long-term association with the armed forces going forward.
We recently acquired a stake in LK Distributors Pvt Ltd, a wind energy company. Through this, we aim to increase our power generation for captive use. This would not only reduce our carbon footprint but also help curb our power expenses.
I would like to thank all the stakeholders as well as the entire Shiva Texyarn team, which has demonstrated great resilience over the recent past, and continues to push the Company forward.”
Recent Developments
➢ Recently launched Seamless Saree Shapewear product under innerwear category in India
➢ Won an order worth Rs. 11.9 cr for Haversack bags from the Ministry of Defence
➢ Acquired 26% stake in LK Distributors Pvt Ltd, a wind power generation company, for captive use. Shiva
Texyarn may increase stake in LK Distributors to 40%
➢ Brought several new and innovative products to help fight the pandemic. Last year, Company launched many new products aimed at medical and general public use, to prevent spread of virus and bacteria and help improve quality of lives. 1. Protective Coveralls – Started manufacturing protective coveralls for medical use in April 2020, to cater to
surge in demand for such gear by the Government
2. Face Masks – In May 2020, launched new range of face masks under brand name ‘Smiley’. These masks are re-usable and multi-layered, with fabric and filter layers. For this product, we partnered with ‘Feed My City’ initiative, wherein Rs. 10 from each mask sold is donated towards feeding under-privileged who have been worst affected during this time
3. Anti-viral Fabric – In June 2020, launched an innovative, first-of-its-kind anti-viral fabric, in collaboration with Swiss company HeiQ Materials AG. This fabric is treated with unique technology that inhibits bacteria and virus to large extent, including the novel Corona virus. The product can be used in PPE systems and is aimed at domestic as well as international markets
Recent Developments contd…
▪ High quality re-usable face masks under the
brand name ‘Smiley’
▪ Multi-layer mask with fabric and replaceable filter layers to protect from bacteria and virus
▪ Salient Features o Soft fabric o Adjustable elastic fasteners for maximum
comfort
o Filters dust and allergens also o Product comes with 2 filters o High air flow for ease of breathing
▪ Key Benefits
o Filters over 99.35% bacteria (BFE as per ASTM
F2101)
o Particle filtration efficiency of 0.3 micron – (anti-
viral barrier) 98.96% as per ASTM F2299 o Splash resistant – Delta(P) – 21.60 Pa . IS
16829:2014
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Financial Highlights
Quarterly Financial Highlights (YoY)
Rs. Cr.
Total Income from operations Raw Material Expenses Employee Expenses Other Expenses Total Expenditure EBITDA EBITDA Margin Other Income Depreciation Interest / Finance Cost Exceptional Item (Gain) / Loss PBT Tax PAT Other Comprehensive Income Net Profit Net Profit Margin Basic EPS in Rs.
Q1 FY23
Q1 FY22
127.52 92.26 11.48 16.52 120.26 7.26 5.69% 0.26 2.90 3.74 0.00 0.88 0.28 0.61 (0.07) 0.54 0.42% 0.47
85.74 46.44 9.63 16.24 72.31 13.42 15.66% 0.20 3.11 3.99 0.00 6.53 1.63 4.90 0.15 5.05 5.89% 3.78
Y-o-Y %
48.73%
(45.91%) (997 bps)
(86.46%)
(87.57%)
(89.27%) (547 bps) (87.57%)
Q4 FY22
126.94 92.82 11.04 15.90 119.76 7.18 5.65% 0.67 3.47 2.23 0.00 2.15 1.22 0.93 0.11 1.04 0.82% 0.72
▪ Rise in sales from higher demand on back of markets recovering post COVID lockdowns in Q1 FY22 ▪ Non-Spinning business accounted for 21.3% of revenue in Q1 FY23 ▪ Increase in cotton prices and other expenses offset better realizations, impacting profit margins
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Full Year Financial Highlights (YoY)
Rs. Cr.
Total Income from operations Raw Material Expenses Employee Expenses Other Expenses Total Expenditure EBITDA EBITDA Margin Other Income Depreciation Interest / Finance Cost Exceptional Item (Gain) / Loss PBT Tax PAT Other Comprehensive Income Net Profit Net Profit Margin Basic EPS in Rs.
FY22
477.07 297.03 43.86 81.09 421.98 55.09 11.55% 1.37 12.66 13.81 0.00 30.01 9.99 20.01 0.40 20.41 4.28% 15.44
FY21
340.80 194.74 36.36 66.69 297.79 43.01 12.62% 6.95 15.68 17.67 0.00 16.61 4.33 12.28 0.20 12.48 3.66% 9.47
Y-o-Y %
39.99%
28.09% (107 bps)
62.96%
63.47% 62 bps 63.04%
▪ Strong rise in sales from higher demand following recovery in market after COVID-related slowdown last year ▪ Non-Spinning businesses contributed 26.4% to revenues ▪ Improved operational efficiencies offset the rise in raw material and other expenses, leading to better PAT margin
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Balance Sheet Highlights
Rs. Cr Equity Equity Share Capital Other Equity Non-Current Liabilities Financial Liabilities
Borrowings
Deferred Tax Liabilities (Net) Lease Liabilities Provisions Current Liabilities Financial Liabilities
Borrowings
Trade Payables: Total o/s dues of micro & small enterprises Trade Payables: Total o/s dues of creditors other than above Lease Liabilities Other Financial Liabilities Other Current Liabilities Provisions Current tax liabilities Total Equities & Liabilities
31st Mar ’22 31st Mar ’21
142.48 12.96 129.51 71.69
46.79 24.15 0.00 0.74 129.40
94.22
0.21
23.52
0.41 4.67 4.25 0.00 2.12 343.56
123.62 12.96 110.66 78.37
55.84 20.97 0.45 1.10 108.11
64.64
0.09
35.50
0.20 2.17 4.10 0.59 0.83 310.10
Rs. Cr Non-current Assets Property, Plant & Equipment Intangible Assets Capital work-in-progress Right of Use Assets Intangible asset under development Investment Property Financial Assets Investments Loans Other Non-Current Assets
Current Assets Inventories Financial Assets
Trade Receivables Cash, Cash Equivalent & Bank Balance Loans Other financial assets
Current Tax Assets Other Current Assets Assets Classified as Held for Sale Total Assets
31st Mar ’22 194.27 171.75 0.15 10.33 0.24 0.00 0.12
31st Mar ’21 182.34 172.32 0.87 2.96 0.57 0.00 0.03
2.00 0.00 9.68 149.29 98.89
26.15
9.85
0.63 0.34 0.00 13.43 0.00 343.56
1.10 0.00 4.49 127.77 72.31
34.18
10.04
0.60 0.14 0.00 10.50 0.00 310.10
▪ Board has recommended dividend of Rs 1.40/- per equity share of Rs. 10/- each, subject to shareholders’ approval
Company Overview
Company Overview
Among leading multifaceted Textile companies - strong focus on Technical Textiles
▪ First Company to introduce Reactive
Polyurethane lamination technology in India (2005)
▪ Vertically & backward integrated operations ▪ Strong & Dedicated workforce
Diversified Product Portfolio
▪ Segments - Textiles, Quick Dry, Quick Fit, Q- Club, Paw-Paw Diaper, Defence, Tactical gear, Eco-friendly Flex replacement, Art, etc.
Certifications & Awards
▪ Oeko-Tex 100 Certification ▪ Five S(Workspace Management System) ▪ ISO 9001:2008 ▪ WRAP Certification ▪ Affiliation Certifications ▪ GOTS – Global Organic Textile Standards ▪ Gold Award by Quality Circle Forum of
India(QCFI)
Start of Art manufacturing facilities with advanced Technology in Tamil Nadu ▪ Spinning Division – 52,000 Spindles
Spinning Capacity
▪ Lamination Division – 2 lines, 6,00,000
meters per month capacity
▪ Coating Division – 3 coating lines and 1
million meters per month capacity
▪ 58 windmills – 18.15 MW scattered all over
Tamil Nadu
Integrated Business Operations
▪ Spinning Division ▪ Lamination Division ▪ Coating Division ▪ Processing Division – For Speciality Fabrics ▪ Military & tactical Gear ▪ Garment & Home Textile Division ▪ Bags Division – Backpacks & Rucksacks ▪ Windmill based power generation
Focus on Technologically Advanced, Innovative & Eco-friendly products
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Journey So Far
1985-89
2009-14
2020-22
1985 - Went Public 1989 – Spinning Mill unit I at Dindigul started
2009 – Knitting, Garment & Spinning mills II division started at Karanampettai 2012 – Started Processing division at Sipcot 2012 – Started Technical Textile division at Ganeshpuram 2013 – Coating division started at Ganeshpuram 2014 – Started bag division at Karanampettai
2020 – Launched anti-viral fabric in collaboration with Swiss co. HeiQ Materials 2021 – Won two orders worth Rs. 27.28 cr and Rs. 13.62 cr for bags from M.o.D. 2022 – Won Rs. 11.9 cr order from M.o.D. for bags; Acquired 26% stake in LK Distributors, a wind power co., for captive use 2022 – Launched Seamless Saree Shapewear in India
1994 – Started Windmill division at Munduvelampatti 2002- Finance and Spinning business merged 2006 – Started Lamination division at Karanampettai
1994-2006
2015-20
2015 – Garment Division II (NBC) & III started at Karanampettai 2017 - Scheme of arrangement (Demerger) between Shiva Texyarn Limited & Shiva Mills Limited (Formerly know as STYL Textile Ventures Limited) 2017 – Started supplying specialized Military products to Indian Defence 2019 – Launched Reusable Fabric Diaper – “Paw Paw” – based on patent pending unique Rapisoak Technology 2020 – Won order worth ~ Rs. 10 cr for protective coveralls for medical application for Government; also launched new product line for face masks
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Strong & Experienced Management Team
Mr. S V Alagappan – Chairman
▪ Law graduate and has rich experience in fields of textiles and automobiles for more than three decades
Mr. C Krishnakumar – Chief Financial Officer
▪ Master of Commerce Graduate ▪ More than 15 years experience in Accounts, Finance & Taxation
▪ Member of ICAI and ICSI
Mr. S K Sundararaman – Managing Director
▪ MBA from Cambridge Judge Business
School, UK
▪ Chairman of Indian Technical Textiles
Association (ITTA)
▪ Wide experience in field of textile industry
especially technical textiles
Mr. P. Baskar – Vice President
▪ Diploma in Technical Textile ▪ Over 25 years experience in field of
Modernized Spinning Mills
▪ Vast experience in Construction of Factories
and building premises
▪ Expertise skill in Administration
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Business Overview
Business Segments
Spinning
Technical Textiles - Value added Products
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Business Divisions…(1)
Spinning Division
▪ More than 25 years of experience in Spinning
Industry
▪ 52,000 Spindles capacity
▪ Raw material comes from selected ginners of India and International sources in West Africa, Australia and US
▪ Manufacture Combed, Carded and Compact
Yarns, Sub Yarns and Fancy Yarns
▪ Maintain & manage captive use windmill based augmentation infrastructure to tap 18.15 MW power from 58 owned and operated wind turbine installations
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Makes some of finest cotton yarns
Business Divisions…(2)
Lamination Division
First Company to introduce Reactive Polyurethane Lamination technology in India in 2005
▪ One of most innovative technologies used in Textile
products
▪ Only Indian Company with more than decade of
experience
▪ Two lines can produce approx. 6,00,000 meters per
month
▪ Applications
▪ Breathable, Waterproof membrane Lamination,
Fleece to Fleece, Paper to Fabric, Flat Fabric to Raised Fabric Knit to Woven
▪ Uses
▪ Outdoor Clothing fabric, Mattress Protectors, Medical Textiles, Industrial Application, Military Application
▪ Laminated Products –Applications ▪ Quick Dry – Original Dry Sheet ▪ Quick Fit – Mattress Protectors ▪ Q Club – Active player in Baby Products ▪ Smiley – Re-usable Face Masks
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Lamination Division… Strong Retail Brand in India
▪ Market leadership
o Market leader – combined with “Inventor & Innovator” of Dry Sheets in India
o Manufactures more than 100,000 mts/ month; millions in a year
▪ Wide Retail Distribution Network in
India
o Pan India presence – connecting to 10,000+ Retailers through 200+ Distributors and over 90 on-ground sales force
o Strong Retail Brand created across
India
▪ Exports to Middle East & South-East
Asia
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Lamination Division…First of its kind Reusable Fabric Diaper
Features
✓ Super Comfort - Feathery touch
fabric
✓ Highly Absorbent
▪ ▪
Side Tank System Fully Laminated Layer
✓ Ergonomically designed - Unique T- Shaped pattern which fits perfectly around baby’s body
✓ Super Stretch Fit – Fully Elasticated
✓ Completely safe and won’t harm
baby’s skin
✓ Awaiting patent
UNIQUE RAPISOAK TECHNOLOGY
Benefits
✓ Quickest drying time- Baby feels dry
fastest
✓ Maximum fluid holding ✓ Easy clean ✓ Hygienic ✓ Available in 3 Different Sizes ▪ Small- 3-8 kg ▪ Medium- 7-12 kg ▪ Large- 9-14 kg
✓ Eco-friendly and can be reused for
many times
✓ “Pocket-friendly” - Affordable across
all sections of society
Already successful in Tamil Nadu – creating Pan India Presence
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Business Divisions…(3)
Military & Tactical Gear
▪ Military and Tactical Gear : Makes most advanced
military gear like Nuclear Biological Chemical Suits (NBC)
▪ Extreme cold weather clothing – Protection from 5
degree to minus 20 degree centigrade
▪ Super high altitude Mountaineering clothing
▪ Among very few companies making specialised three
layered suits
▪ Protection in minus 50 degree centigrade
▪ Specialised Bag packs for mountaineering
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Business Divisions…(4)
Processing Division
Coating Division
Bag Division
▪
▪ Unit started in year of 2012 at SIPOT, Perundurai, Erode Famous for Specialised, performance fabric processing, including high fastness, moisture wicking properties and for delicate fabrics
▪
9 lakh meters material handling capacity per month
▪ Wide range of applications
▪
Acrylic coated products, PU Coating, Art Canvas & Digital Canvas Products
▪ Offers various range of finishes
▪
Fire retardant, water repellent, Soil & stain resistant, Anti-microbial, Anti- static, Rubber Finish, Oil resistant
▪
▪
▪
Bag ranging from School bags, exclusive girls range & professional range for camping & photography
100% Polyester and Nylon fabric, stitched with nylon bonded thread
Photography range : Camera bags, Utility bags, Long Lens bags, Tripod bags, Storage Accessories, Messenger bags
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Key Strengths
Continual focus on Innovation & New product development
▪
Strong capabilities backed by in – house manufacturing and R&D that enables developing innovative, new & better quality products
06
Integrated business operations & unique business model ▪ Multifaceted Company with strong focus on value added
▪ ▪
products Vertically & Backward Integrated operations First Company to introduce Reactive Polyurethane lamination technology to India in 2005
▪ Well diversified across segments and products
01
Multi product range with wide range of applications Yarn, Combed, Carded and compact yarns/ Sub / Fancy yarns Laminated Fabric - Quick dry/Quick fit Special garments – Military and Tactical gear & Extreme cold weather clothing Coated Fabric - Canvas Rolls/ Canvas Boards/Stretched Canvas Garments - Home textile / Knitwear/outer wear Bags- Travel bags / Camera bags/ utility bags
▪
▪ ▪
▪
▪ ▪
05
State of art infrastructure facilities ▪
Advanced Technology with State-of-the-art plant and machinery Substantial self-sufficiency in power needs through green power generation by windmill that reduces energy cost
▪
02
Strong Retail Brand with pan India presence – Quick Dry & Paw Paw ▪ “Inventor & Innovator” Market leader of Dry Sheets in India Launched one of its kind Reusable fabric diaper with unique Rapisoak Technology
▪
▪ Wide distribution - 10,000+ retailers
through 200+ distributors with 90 sales team on ground
04
03
Dynamic experience leadership Enterprising management team with rich experience in Textile & Technical Textiles Industries Dedicated and skilled employee base
▪
▪
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State of Art Manufacturing Facilities
Spinning Unit
Processing Unit
Lamination Unit
Bag Unit
Kodangipalayam Village Karadivavi Road, Paruvai Post Coimbatore District, Tamilnadu
Factory E-16, P-11 SIPCOT Industrial Growth Estate Perundurai, Erode 638 052 Tamilnadu
S.F. No. 371/5, Karadivavi Road Paruvai Post, Karanampet Palladam - 641 658
S.F No. 371/5, Karadivavi Road Paruvai Post, Karanampet, Palladam 641 658
Coating Unit
S.F. No. 371/5, Karadivavi Road Paruvai Post, Karanampet Palladam - 641 658
Garment Division
Windmills – Tamil Nadu
S.F No. 371/5, Karadivavi Road Paruvai Post, Karanampet, Palladam 641 658
▪ Munduvelampatti Village ▪ Gudimangalam
Athukinathupatti & Uthukuli Villages
▪ Vagatholubu Kongalnagaram
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Certifications
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Way Ahead
Way Ahead
01
Quick Dry – Expand Distribution & Consolidate market leadership in Dry sheets ▪
Target - ‘Quick Dry’ to be largest baby products provider in India
▪
▪
02
03
Increase distribution network pan India – plans to reach 30,000+ retailers through 400+ distributors
Increase wallet share of existing customers and add new customers - enhancing product offerings through innovation and technology
Increase in Paw-Paw diaper business ▪ Optimize on existing distribution channel and increase in online-
offline network to have pan-India reach
▪
Continued focus on Innovation to make it more user-friendly and comfortable for babies
Increase in Military & Tactical Gear business ▪ Add new & innovative products and increase product offerings in Defence segment, through innovation combined with integrated facilities & strong R&D capabilities
04
Strong Opportunity from Non-Flex Banners ▪
Recent ban on flex banners in Kerala expected to open new opportunities for biodegradable signage material
▪
Poised to capitalize on this opportunity by offering non-flex biodegradable options for banners across Kerala & Bengaluru
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Thank You
511108
SHIVATEX
SVTYIN
SHTE.BO
For further information, please contact:
Company :
Investor Relations Advisors :
Shiva Texyarn Ltd.
Bridge Investor Relations Pvt. Ltd.
Mr. C Krishna Kumar krishnakumar@shivatex.co.in
http://www.shivatex.in
Ms. Savli Mangle savli@bridge-ir.com
Mr. Rahul Trivedi rahul@bridge-ir.com
www.bridge-ir.com
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