ADM Reports Second Quarter 2012.5 Earnings of $510 Million or $0.77 per Share

  ADM Reports Second Quarter 2012.5 Earnings of $510 Million or $0.77 per
  Share

          Adjusted EPS of $0.60, up 18 percent from year-ago quarter

 Good operating results despite challenging conditions caused by U.S. drought

Business Wire

DECATUR, Ill. -- February 5, 2013

Archer Daniels Midland Company (NYSE: ADM) today reported financial results
for the quarter ended Dec. 31, 2012. The company reported net earnings for the
quarter of $510 million, or $0.77 per share, up from $0.12 per share in the
same period one year earlier. Adjusted earnings per share^1 were $0.60, up
from $0.51 in the same period last year. Segment operating profit^1 was $808
million.

“The ADM team managed well despite challenges from the U.S. drought and from
persistent, negative margins in the ethanol industry,” said ADM Chairman and
CEO Patricia Woertz. “Our results in Oilseeds and Agricultural Services
demonstrated the ability of our people to use our global asset network to
prepare for and manage in a range of market conditions.

“In North America, we fully utilized our oilseeds crushing capacity to meet
strong global demand, and we adjusted our transportation and origination
network to move goods efficiently despite constrained river traffic and a
smaller corn crop. In South America, we leveraged our origination,
transportation and export facilities to move the record corn crop to world
markets. And, in Europe, we made some operational changes, and the market
responded to reduced imports.

“During our abbreviated fiscal year, we drove meaningful improvements in
capital, costs and cash to enhance our future competitiveness. We continued
taking action to improve underperforming businesses. As part of our ongoing
portfolio management, we sold $570 million of non-core investments. And,
through a companywide focus, we unlocked more than $1 billion in working
cash.”

Second Quarter 2012.5 Highlights

  *Adjusted EPS of $0.60 excludes approximately $113 million in pretax LIFO
    gains ($0.11 per share) and other items that net to about $0.06 per share.
  *Oilseeds Processing profit increased $202 million, with year-over-year
    improvements in crushing and origination results in all regions.
  *Excluding last year’s $339 million asset impairment charge, Corn
    Processing profit decreased $207 million, due to ongoing weakness in
    industry ethanol margins.
  *Agricultural Services profit rose $77 million, as solid U.S. soybean
    exports, improved international merchandising and a gain on ADM’s
    investment in GrainCorp benefitted results.
  *Net debt balances declined to $7.2 billion, the lowest level since June
    2010, as the benefits of the company wide focus on unlocking cash began to
    be realized.

Adjusted EPS of 60 Cents, up 9 Cents

Adjusted EPS increased primarily due to higher segment operating profit.

This fiscal year’s effective tax rate of 30 percent was in line with the same
six-month period last year.

Oilseeds Earnings Improve Across All Three Regions

Oilseeds operating profit in the second quarter was $411 million, up $202
million from the same period one year earlier. Results included unfavorable
mark-to-market timing effects of about $50 million (about $0.05 per share),
compared to an unfavorable impact of about $110 million in the year-ago
quarter.

Crushing and origination operating profit was $261 million, up $140 million
from the year-ago quarter on strong improvements in all three geographies.
ADM’s U.S. soybean operations ran at record capacity during the quarter and
delivered very strong results amid good domestic and export meal demand. In
South America, ADM was well prepared to move the record corn harvest. And in
Europe, operational changes and reduced imports from South America drove
improved results.

Refining, packaging, biodiesel and other generated a profit of $50 million for
the quarter, down $27 million, due to weakness in biodiesel margins in the
U.S. and Europe.

Cocoa and other results increased $66 million. Weaker cocoa press margins were
offset by the absence of last year’s significant negative mark-to-market
impacts.

Oilseeds results in Asia for the quarter were up $23 million from the prior
year’s second quarter, principally reflecting ADM’s share of the results from
its equity investee Wilmar International Limited.

Corn Processing Results Weak on Continued Ethanol Industry Challenges

Corn processing operating profit of $3 million represented a decline of $207
million from the same period one year earlier, when excluding the year-ago
quarter’s $339 million asset impairment.

Sweeteners and starches operating profit increased $22 million to $97 million,
as tight sweetener industry capacity and higher corn costs supported higher
year-over-year selling prices.

Excluding last year’s $339 million asset impairment charge, bioproducts
results decreased $229 million to a loss of $94 million. Weak domestic
gasoline demand and unfavorable global ethanol trade flows resulted in
continued excess industry capacity, keeping ethanol margins negative.

Agricultural Services Solid Despite Impact of U.S. Drought

Agricultural Services operating profit was $317 million, up $77 million from
the same period one year earlier. Results included a $62 million gain on ADM’s
investment in GrainCorp.

Excluding the gain on GrainCorp, merchandising and handling earnings rose $23
million to $129 million, as solid U.S. soybean exports and improved
international merchandising results more than offset lower U.S. corn
origination and export volumes.

Transportation results were solid, despite challenges from low water on the
Mississippi River. Results decreased $5 million to $48 million as increased
barge operating expenses were partially offset by higher freight rates.

Milling and other results remained steady, as the milling business continued
to perform well.

Other Financial Results Improve

Operating profit from ADM’s Other Financial businesses was $77 million, up $55
million, with asset disposal gains and favorable captive insurance loss
reserve adjustments.

Conference Call Information

ADM will host a conference call and audio webcast Tuesday, Feb. 5, 2013, at 8
a.m. Central Time to discuss financial results and provide a company update. A
financial summary slide presentation will be available to download
approximately 60 minutes prior to the call.

To listen to the call via the Internet or to download the slide presentation,
go to www.adm.com/webcast. To listen by telephone, dial (888) 522-5398 in the
U.S. or (706) 902-2121 if calling from outside the U.S. The access code is
85998249.

Replay of the call will be available from Feb. 6, 2013 to Feb. 12, 2013. To
listen to the replay by telephone, dial (855) 859-2056 in the U.S. or (404)
537-3406 if calling from outside the U.S. The access code is 85998249. The
replay will also be available online for an extended period of time at
www.adm.com/webcast.

About ADM

For more than a century, the people of Archer Daniels Midland Company (NYSE:
ADM) have transformed crops into products that serve vital needs. Today,
30,000 ADM employees around the globe convert oilseeds, corn, wheat and cocoa
into products for food, animal feed, industrial and energy uses. With more
than 265 processing plants, 460 crop procurement facilities, and the world’s
premier crop transportation network, ADM helps connect the harvest to the home
in more than 140 countries. For more information about ADM and its products,
visit www.adm.com.

^1 Non-GAAP financial measures, see pages 5 and 12 for explanations and
reconciliations

                           Financial Tables Follow

                                                                             
                                                                                
Segment Operating Profit and Corporate
Results
A non-GAAP financial measure (unaudited)
                     Quarter ended                      Four quarters ended
                                                                         
                     December 31                        December 31
                     2012      2011      Change       2012       2011       Change
                     (in millions)
Oilseeds
Processing                    
Operating Profit
Crushing and         $ 261      $ 121      $ 140        $ 931       $ 855       $ 76
origination
Refining,
packaging,             50         77         (27  )       241         315         (74  )
biodiesel and
other
Cocoa and other        36         (30  )     66           276         88          188
Asia                  64       41       23         172       178       (6   )
Total Oilseeds       $ 411     $ 209     $ 202       $ 1,620    $ 1,436    $ 184  
Processing
                                                                                
Corn Processing
Operating Profit
Sweeteners and       $ 97       $ 75       $ 22         $ 421       $ 165       $ 256
starches
Bioproducts
(excluding             (94  )     135        (229 )       (133  )     559         (692 )
charges)
Restructuring         -        (339 )    339        (10   )    (339  )    329  
and Exit Costs
Total Corn           $ 3       $ (129 )   $ 132       $ 278      $ 385      $ (107 )
Processing
                                                                                
Agricultural
Services
Operating Profit
Merchandising
and handling         $ 129      $ 106      $ 23         $ 415       $ 654       $ (239 )
(excluding item)
Gain on interest       62         -          62           62          -           62
in GrainCorp
Transportation         48         53         (5   )       111         112         (1   )
Milling and
other (excluding       78         81         (3   )       337         314         23
items)
Gain on sale of        -          -          -            -           78          (78  )
Gruma assets
Asset impairment      -        -        -          (146  )    -         (146 )
charge
Total
Agricultural         $ 317     $ 240     $ 77        $ 779      $ 1,158    $ (379 )
Services
                                                                                
Other Operating
Profit
Financial            $ 77      $ 22      $ 55        $ 91       $ 46       $ 45   
Total Other          $ 77      $ 22      $ 55        $ 91       $ 46       $ 45   
                                                                                
Segment              $ 808      $ 342      $ 466        $ 2,768     $ 3,025     $ (257 )
Operating Profit
                                                                                
Corporate
Results
LIFO credit          $ 113      $ (59  )   $ 172        $ 3         $ 76        $ (73  )
(charge)
Interest expense       (112 )     (99  )     (13  )       (445  )     (428  )     (17  )
- net
Unallocated            (70  )     (71  )     1            (274  )     (342  )     68
corporate costs
Employee-related       -          -          -            (71   )     -           (71  )
exit costs
Gains on
interest rate          -          -          -            -           6           (6   )
swaps
Debt                   (5   )     -          (5   )       (5    )     (12   )     7
buyback/exchange
Pension                (68  )     -          (68  )       (68   )     -           (68  )
settlements
Other                 36       8        28         73        11        62   
Total Corporate      $ (106 )   $ (221 )   $ 115       $ (787  )   $ (689  )    (98  )
                                                                                
Earnings Before      $ 702     $ 121     $ 581       $ 1,981    $ 2,336    $ (355 )
Income Taxes
                                                                                       

Total segment operating profit is ADM’s consolidated income from operations
before income tax that excludes certain corporate items. Management believes
that segment operating profit is a useful measure of ADM’s performance because
it provides investors information about ADM’s business unit performance
excluding certain corporate overhead costs. Total segment operating profit is
a non-GAAP financial measure and is not intended to replace earnings before
income tax, the most directly comparable GAAP financial measure. Total segment
operating profit is not a measure of consolidated operating results under U.S.
GAAP and should not be considered as an alternative to income before income
taxes or any other measure of consolidated operating results under U.S. GAAP.

                 
Quarterly Segment Operating Profit and Corporate Results
A non-GAAP financial measure (unaudited)
                   Quarter ended                              Four        Quarter ended                             Fiscal
                                                                 Quarters                                                 Year
                     Mar’12    June'12   Sep'12    Dec'12    2012          Sep'11   Dec'11    Mar'12    June'12   2012
                     (in millions)
Oilseeds
Processing                                                                                                       
Operating Profit
Crushing and         $ 264      $ 150      $ 256      $ 261      $ 931         $ 106     $ 121      $ 264      $ 150      $ 641
origination
Refining,
packaging,             79         84         28         50         241           55        77         79         84         295
biodiesel, and
other
Cocoa and other        159        52         29         36         276           2         (30  )     159        52         183
Asia                  40      45      23      64      172         57     41      40      45      183   
                     $ 542    $ 331    $ 336    $ 411    $ 1,620      $ 220   $ 209    $ 542    $ 331    $ 1,302 
                                                                                                                          
Corn Processing
Operating Profit
Sweeteners and       $ 95       $ 135      $ 94       $ 97       $ 421         $ 30      $ 75       $ 95       $ 135      $ 335
starches
Bioproducts
(excluding             48         (61  )     (26  )     (94  )     (133  )       153       135        48         (61  )     275
charges)
Restructuring         (10  )   -       -       -       (10   )      -      (339 )   (10  )   -       (349  )
and exit costs
                     $ 133    $ 74     $ 68     $ 3      $ 278        $ 183   $ (129 )  $ 133    $ 74     $ 261   
                                                                                                                          
Agricultural
Services
Operating Profit
Merchandising
and handling         $ 148      $ 30       $ 108      $ 129      $ 415         $ 209     $ 106      $ 148      $ 30       $ 493

(excluding item)
Gain on interest       -          -          -          62         62            -         -          -          -          -
in GrainCorp
Transportation         27         17         19         48         111           28        53         27         17         125
Milling and
other (excluding       86         76         97         78         337           86        81         86         76         329
charge)
Asset impairment      -       -       (146 )   -       (146  )      -      -       -       -       -     
charge
                     $ 261    $ 123    $ 78     $ 317    $ 779        $ 323   $ 240    $ 261    $ 123    $ 947   
                                                                                                                          
Other Operating
Profit
Financial            $ (18  )  $ 16     $ 16     $ 77     $ 91         $ (5  )  $ 22     $ (18  )  $ 16     $ 15    
                     $ (18  )  $ 16     $ 16     $ 77     $ 91         $ (5  )  $ 22     $ (18  )  $ 16     $ 15    
                                                                                                                          
Segment              $ 918      $ 544      $ 498      $ 808      $ 2,768       $ 721     $ 342      $ 918      $ 544      $ 2,525
Operating Profit
                                                                                                                          
Corporate
Results
LIFO credit          $ (107 )   $ 50       $ (53  )   $ 113      $ 3           $ 126     $ (59  )   $ (107 )   $ 50       $ 10
(charge)
Interest expense       (114 )     (112 )     (107 )     (112 )     (445  )       (98 )     (99  )     (114 )     (112 )     (423  )
- net
Unallocated            (67  )     (67  )     (70  )     (70  )     (274  )       (84 )     (71  )     (67  )     (67  )     (289  )
corporate costs
Employee-related       (71  )     -          -          -          (71   )       -         -          (71  )     -          (71   )
exit costs
Debt                   -          -          -          (5   )     (5    )       (4  )     -          -          -          (4    )
buyback/exchange
Pension                -          -          -          (68  )     (68   )       -         -          -          -          -
settlements
Other                 9       1       27      36      73          (1  )   8       9       1       17    
                     $ (350 )  $ (128 )  $ (203 )  $ (106 )  $ (787  )     $ (61 )  $ (221 )  $ (350 )  $ (128 )  $ (760  )
                                                                                                                          
Earnings Before      $ 568    $ 416    $ 295    $ 702    $ 1,981      $ 660   $ 121    $ 568    $ 416    $ 1,765 
Income Taxes
                                                                                                                                  

Total segment operating profit is ADM’s consolidated income from operations
before income tax that excludes certain corporate items. Management believes
that segment operating profit is a useful measure of ADM’s performance because
it provides investors information about ADM’s business unit performance
excluding certain corporate overhead costs. Total segment operating profit is
a non-GAAP financial measure and is not intended to replace earnings before
income tax, the most directly comparable GAAP financial measure. Total segment
operating profit is not a measure of consolidated operating results under U.S.
GAAP and should not be considered as an alternative to income before income
taxes or any other measure of consolidated operating results under U.S. GAAP.


Consolidated Statements of Earnings
(unaudited)

                           Quarter ended             Six months ended
                            December 31                December 31
                           2012        2011           2012        2011
                           (in millions, except per share amounts)
                                                                 
Net sales and other        $ 24,921     $ 23,306       $ 46,729     $ 45,208
operating income
Cost of products sold       23,925     22,493       44,927     43,361 
Gross profit                 996          813            1,802        1,847
Selling, general and
administrative               (479   )     (423   )       (869   )     (830   )
expenses
Equity in earnings of
unconsolidated               142          127            255          251

affiliates
Investment income            29           22             59           62
Interest expense             (107   )     (96    )       (213   )     (209   )
Asset impairment, exit
and restructuring            -            (352   )       (146   )     (352   )
costs
Other income (expense)      121        30           109        12     
– net
Earnings before income       702          121            997          781
taxes
Income taxes                (192   )    (38    )      (303   )    (237   )
Net earnings including
noncontrolling               510          83             694          544
interests
Less: Net earnings
(losses) attributable       -          3            2          4      
to noncontrolling
interests
Net earnings               $ 510       $ 80          $ 692       $ 540    
attributable to ADM
                                                                      
Diluted earnings per       $ 0.77      $ 0.12        $ 1.05      $ 0.81   
common share
                                                                      
Average number of           661        667          661        670    
shares outstanding
                                                                      
                                                                      
Other income (expense)
- net consists of:
Net gain on marketable
securities                 $ 43         $ 11           $ 45         $ 16
transactions
Gain on interest in          62           -              62           -
GrainCorp
Debt buyback/exchange        (5     )     -              (5     )     (12    )
costs
Other – net                 21         19           7          8      
                           $ 121       $ 30          $ 109       $ 12     
                                                                             


Summary of Financial Condition
(unaudited)
                                                            
                                               December 31,       December 31,
                                               2012            2011
                                               (in millions)
NET INVESTMENT IN
Cash and cash equivalents                    $ 1,714            $ 864
Short-term marketable securities               576                594
Operating working capital (a)                  13,563             13,373
Property, plant, and equipment                 10,123             9,601
Investments in and advances to affiliates      3,170              3,211
Long-term marketable securities                717                352
Other non-current assets                      1,364             1,313
                                             $ 31,227           $ 29,308
                                                                  
FINANCED BY
Short-term debt                              $ 2,816            $ 834
Long-term debt, including current              6,724              8,364
maturities
Deferred liabilities                           2,556              1,945
Shareholders’ equity                          19,131            18,165
                                             $ 31,227           $ 29,308
                                                                  

(a) Current assets (excluding cash and cash equivalents and short-term
marketable securities) less current liabilities (excluding short-term debt and
current maturities of long-term debt)

                                                               
                                                                      
Summary of Cash Flows
(unaudited)
                                                       Six Months Ended
                                                       December 31
                                                       2012       2011
                                                       (in millions)
Operating Activities
Net earnings                                         $ 694          $ 544
Depreciation and amortization                          435            414
Asset impairment charge                                146            350
Other – net                                            (4     )       102
Changes in operating assets and liabilities           1,207        1,631  
Total Operating Activities                             2,478          3,041
                                                                      
Investing Activities
Purchases of property, plant and equipment             (615   )       (852   )
Net assets of businesses acquired                      (26    )       (206   )
Proceeds from sale of Gruma                            450            -
Marketable securities – net                            (898   )       195
Cash held in a deconsolidated entity                   -              (130   )
Other investing activities                            116          59     
Total Investing Activities                             (973   )       (934   )
                                                                      
Financing Activities
Long-term debt borrowings                              106            91
Long-term debt payments                                (1,423 )       (173   )
Net borrowings (repayments) under lines of             660            (1,076 )
credit
Debt repayment premium and costs                       (197   )       (32    )
Purchases of treasury stock                            -              (427   )
Cash dividends                                         (230   )       (224   )
Other                                                 2            (17    )
Total Financing Activities                            (1,082 )      (1,858 )
                                                                             
Increase (decrease) in cash and cash equivalents       423            249
Cash and cash equivalents - beginning of period       1,291        615    
Cash and cash equivalents - end of period            $ 1,714       $ 864    
                                                                             

                                                                  
Segment Operating Analysis
(unaudited)
                                                      
                                   Quarter Ended           Four Quarters Ended
                                  December 31            December 31
                                 2012       2011      2012      2011
                                 (‘000s of metric tons)
Processed volumes
Oilseeds                           8,406      8,191        31,820     29,930
Corn                               6,026      6,297        24,517     24,078
Milling and Cocoa                  1,813      1,855        7,023      7,211
Total processed volumes            16,245     16,343       63,360     61,219
                                                                      
                                                                      
                                                                      
                                   Quarter Ended           Four Quarters Ended
                                  December 31             December 31
                                 2012      2011        2012      2011
                                 (In millions)
Net sales and other
operating income
Oilseeds Processing              $ 8,364    $ 8,266        $ 35,430   $ 33,581
Corn Processing                    3,041      3,158          11,830     11,755
Agricultural Services              13,485     11,854         43,159     42,708
Other                             31        28            140       111
Total net sales and other
operating income                 $ 24,921   $ 23,306       $ 90,559   $ 88,155
                                                                        


Segment Operating Analysis
(unaudited)
                                                               
                       Quarter ended                              Four
                                                                   Quarters
                       Mar'12    June'12   Sept'12   Dec'12    2012
                       (In '000 metric tons)
Processed volumes                                   
Oilseeds                 8,159      7,793      7,462      8,406        31,820
Corn                     6,174      6,036      6,281      6,026        24,517
Milling and Cocoa       1,740    1,680    1,790    1,813      7,023
Total processed         16,073   15,509   15,533   16,245     63,360
volumes
                                                                   
                       Quarter ended                              Fiscal Year
                       Sept'11   Dec'11    Mar'12    June'12   2012
                       (In '000 metric tons)
Processed volumes
Oilseeds                 7,018      8,191      8,159      7,793        31,161
Corn                     6,111      6,297      6,174      6,036        24,618
Milling and Cocoa       1,881    1,855    1,740    1,680      7,156
Total processed         15,010   16,343   16,073   15,509     62,935
volumes
                                                                   
                       Quarter ended                              Four
                                                                   Quarters
                       Mar'12    June'12   Sept'12   Dec'12    2012
                       (In millions)
Net sales and
other operating
income
Oilseeds               $ 7,715    $ 9,663    $ 9,688    $ 8,364    $   35,430
Processing
Corn Processing          2,835      2,828      3,126      3,041        11,830
Agricultural             10,571     10,147     8,956      13,485       43,159
Services
Other                   34       37       38       31         140
Total net sales
and other              $ 21,155  $ 22,675  $ 21,808  $ 24,921  $   90,559
operating income
                                                                   
                       Quarter ended                              Fiscal Year
                       Sept'11   Dec'11    Mar'12    June'12   2012
                       (In millions)
Net sales and
other operating
income
Oilseeds               $ 9,071    $ 8,266    $ 7,715    $ 9,663    $   34,715
Processing
Corn Processing          3,293      3,158      2,835      2,828        12,114
Agricultural             9,510      11,854     10,571     10,147       42,082
Services
Other                   28       28       34       37         127
Total net sales
and other              $ 21,902  $ 23,306  $ 21,155  $ 22,675  $   89,038
operating income
                                                                       


Adjusted Earnings Per Share
A non-GAAP financial measure
(unaudited)
                                      Quarter Ended          Four Quarters
                                                                 Ended
                                        December 31              December 31
                                        2012        2011       2012
Earnings Per Share (fully-diluted)      $ 0.77      $ 0.12     $   2.08
Adjustments:
LIFO charge/(credit) (a)                  (0.11 )       0.06         -
Asset impairment charge – Gruma (b)       -             -            0.16
Asset impairment charge – PHA (c)         -             0.33         -
Restructuring and exit costs (d)          -             -            0.08
Gain on interest in GrainCorp (e)         (0.07 )       -            (0.07  )
Gain on sale of assets (f)                (0.04 )       -            (0.04  )
Pension settlements (g)                   0.07          -            0.07
Brazil income tax remeasurement (h)       0.01          -            0.02
Adjust quarterly effective tax rate      (0.03 )      -           -      
to fiscal year average (i)
Sub-total adjustments                    (0.17 )      0.39        0.22   
Adjusted Earnings Per Share             $ 0.60       $ 0.51     $   2.30   
(non-GAAP)

  (a)  The Company’s pretax changes in its LIFO reserves during the period,
          tax effected using the Company’s U.S. effective income tax rate.
          The asset impairment charge related to the Company’s investments
    (b)   associated with Gruma, tax effected using the applicable U.S. and
          Mexican tax rates.
    (c)   The asset impairment charge related to the PHA business, tax
          effected using the Company’s U.S. effective income tax rate.
          The restructuring and exit costs related primarily to the global
    (d)   workforce reduction program, tax effected using the applicable U.S.,
          European and South American tax  rates.
    (e)   The gain on the Company’s interest in the shares of GrainCorp, tax
          effected using the applicable U.S. and European tax rates.
          The gain on the sale of certain of the Company’s exchange membership
    (f)   interests, tax effected using the Company’s U.S. effective income
          tax rate.
    (g)   The one-time expense related to pension settlements, tax effected
          using the applicable U.S. and European tax rates.
    (h)   The tax impact of foreign-exchange remeasurement of certain
          Brazilian assets.
    (i)   The impact to EPS if the December 31, 2012 final effective income
          tax rate of 30% were used.
          

Adjusted EPS is ADM’s fully diluted EPS after removal of the effect on
Reported EPS of certain specified items as more fully described above.
Management believes that Adjusted EPS is a useful measure of ADM’s performance
because it provides investors additional information about ADM’s operations
allowing better evaluation of ongoing business performance. Adjusted EPS is a
non-GAAP financial measure and is not intended to replace or be an alternative
to EPS, the most directly comparable GAAP financial measure, or any other
measures of operating results under GAAP. Earnings amounts in the tables above
have been divided by the company’s diluted shares outstanding for each
respective quarter in order to arrive at an adjusted EPS amount for each
specified item.

Contact:

Archer Daniels Midland Company
Media Relations
David Weintraub, 217-424-5413
or
Investor Relations
Ruth Ann Wisener, 217-451-8286
 
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