final ddd annual report 0202 - digital divide data€¦ · system (lms) – another way we ......
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2017ANNUAL REPORT
To DDD Friends and Family 1
DDD Friends and Family,
2017 marked a year of new beginnings for DDD.While 2016 was our 15th anniversary and a time toreflect on our past achievements, 2017 was aboutsetting our sights on the future. Thanks to yoursupport and encouragement, we launched projectsthat take us into the next generation of tech andsocial impact solutions. We are excited to sharethose with you in this report.
Given the rapidly changing pace of technology andthe evolving training needs of our youth, we aremaximizing the opportunities of emerging technologies(such as cloud services and big data) to revamp ourbusiness offerings and work-study model. In 2017,we collaborated with Amazon Web Services (AWS)and Intel to launch DDD’s cloud computingservices in Kenya.
Our new AWS Cloud Center of Excellence trainingprogram in Kenya graduated a pilot cohort of 30associates who obtained a remarkable 100% passingrate for the AWS Systems Operations certification.In 2018, we plan to expand our AWS service andcloud-oriented training to equip more youth withthese specialized skills and accommodate a growingnumber of clients who seek cloud services. We willalso continue refining our Learning ManagementSystem (LMS) – another way we invest in ouremployees and help ensure that their skills arecurrent.
In the US, DDD is proud to support veterans andmilitary families with training and employmentservices offered through our Liberty Source subsidiary.DDD recognizes the value of military skills andexperiences and has developed training to transitionskills to civilian work. Liberty Source serves as the
critical-entry point for veterans launching post-service careers or military spouses with previouslylimited job prospects.
DDD’s business highlights for 2017 include highprofile and culturally important projects, such asour work digitizing cultural and historical artifactsfor the National Museums of Kenya and the TuolSleng Genocide Museum in Cambodia (inpartnership with UNESCO). We are also pleased toreport that DDD’s earned revenue in FY17 totaled$12.6m, a 13% increase from $11.1m in FY16. Theshare of business expenses covered by clientrevenue rose to 92% in FY17 from80% in FY15. Thisimprovement happened despite significantinvestments into our cloud business in this fiscalyear - a testament to our improved sustainability asa company.
As we begin another year, we are thankful for thesupport of clients, donors, and investors whichallowed us to launch new and ambitious work-studyinitiatives, support critical cultural preservationprojects, and reach a new level of growth for DDD.We believe these efforts and your support havepositioned DDD for a strong 2018. Thank you.
Sincerely,
Irving Levin, Chairman of the BoardJeremy Hockenstein, Co-Founder and CEO
"As we begin another year, we arethankful for your support whichallowed ddd to reach new levelsof growth and innovation."
DDD Through The Years 2
History
2000An Idea is Born
While backpacking with friendsin Cambodia, Jeremy comes up
with the idea for DDD
2001Off We GoHarvard Crimsonnewspaper signs on asDDD’s first-ever client
2002Making Strides
Mobitel, our first majorCambodian client
2003It’s an HonorWorld Bank recognizes DDDwith the DevelopmentMarketplace Award
2004ExpandingOur Impact
DDD opens its secondhome in Laos 2008
Motivation toContinueDDD receives the SkollAward for SocialEnterpreneurship
201110 Years
DDD celebrates its 10thAnniversary and opens an
office in Kenya
20121k and CountingDDD grows to more than 1,000staff worldwide
Best in theBusinessDDD receives the Vision 2030Award for Best Business ProcessOutsourcing Firm in Kenya2014
We’re StatesideDDD launches Liberty
Source, a US-basedoperation that creates career
opportunities for militaryveterans and their spouses 2015
Rising StarThe International Association ofOutsourcing Professionals(IAOP) names DDD a Rising Starin its Global Outsourcing 100 listfor a second consecutive year
2016StrongerTogether
The Global Impact SourcingCoalition launches with DDD as a
core member
Back to the RootsDDD celebrates its 15th
anniversary in Phnom Penh,where the adventure first began
2017It's All in theCloudsDDD collaborates with AWS and Intelto launch AWS Cloud Center ofExcellence in Kenya
DDD Vision 2.0 3
DDD 2.0:Vision in Action
DDD is evolving, adapting to new trendsand technologies as we lead the ImpactSourcing industry to new digital frontiers.We are creating DDD 2.0 by focusing onimproving market competitiveness andproviding more opportunities for thedisadvantaged youth we serve.
Improving Market Competitiveness
To respond to increasing market demand forcloud-oriented skills and experience, DDDestablished an AWS Cloud Center for Excellence inKenya.Our goal is to expand IT services to provideclients with advanced cloud-based solutions.An integral part of this strategy, and of greatbenefit to our associates, was the introductionof the AWS Systems Operation Administratortraining to our Work-Study Program.
Providing more opportunities fordisadvantaged youth
DDD aims to be a significant workforcedevelopment engine for the digital jobs of thefuture. This reinforces our social mission ofproviding skills, support, and life-long earningpotential to individuals from underservedcommunities globally. With the success of theAWS Cloud Center for Excellence in Kenya, weare poised to replicate it to benefit youth inother parts of Africa and Southeast Asia, andfor unemployed or underemployed veteransand military spouses in military communitiesin the U.S.
Key elements to our strategy include:
By focusing on the next generation of tech skills and building strong, collaborative relationships withinthe tech community, we believe DDD will sustain its relevance to clients and donors and expand itsimpact to more youth in disadvantaged communities globally.
Partnering with leading technology leaders in the emerging areas of Cloud, DataScience, Big Data, Business Intelligence, and Cybersecurity, where there is a largepredicted skill gap globally
Understanding the skills requirements and anticipated employment gaps facing thesetech leaders
Co-developing training programs on in-demand technology platforms
Leveraging partners and their ecosystems to build a placement capability to generatedemand for certified professionals and a pipeline of job opportunities with managedservice providers
Continually assessing the skills market for next technology and platforms on which tooffer training
How We Work 4
OutplacementWe help associates find careeropportunities outside DDD.
Internal PromotionHigh-performing associates are
internally promoted tomanagement positions.
RecruitBy partnering with local secondary schools and community organizations, DDD recruits:
Low-income youthworking in theinformal sector
Rural migrantsand urban slum
dwellers
Women (at least50% of DDD
employees arewomen)
Persons withdisabilities
Open CareerPathways
DDD Social Impact Model
TrainOnce recruited, youth undergo anintensive job-readiness training for2 to 3 months to develop skills in:
ESL
BusinessEnglishSoft skillsTechnology
Associates work 6 to 8 hours aday performing digital work forlocal and global clients.
DDD supports associates inchoosing their school andfield of study. Associates pay aportion of their tuition fromtheir own earnings whichDDD supplements with apartial scholarship and loans.
Employ and EducateThose who successfullycompleted training are hired asDDD associates.
Where DDD Graduates Are Today 5
Projected Earnings
$499 $350m
The total estimated increasein earnings of DDD
associates over 25 years
The average monthlysalary of DDD
graduates
Retail 8%
Business Services 13%
Banking & Finance 11%
IT & Communications Tech 15%
Education 5%
Nonprofits 4%
Media & Marketing 4%
Trade & Manufacturing 2%
Other 37%
Where DDD graduates are today
Employment Sectors
DDD Alums 6
cambodia
Chipon Chhuon
“When I was a child, I wanted to become a manager. Iwanted to travel the world, meet different people, andexperience foreign cultures,” shared Chipon, whowas recently promoted to Production Manager atDDD in Cambodia. Thanks to DDD, he is the firstin his family of five to finish school, and he is nowDDD’s Production Manager in the country, managingsix supervisors and 200 associates.
Chipon started at DDD nine years ago. Growing upin Battambang province where part-time work wasscarce, he jumped at the chance to study and workin Phnom Penh. Within six months, he went fromtrainee to DDD associate; he received a scholarshiptwo years later. Balancing work and study was noteasy for Chipon. He would work six hours in themorning at the DDD office and then head to theuniversity for six hours of classes.
His ambition to become a manager drove him. Heimproved his English, learned to use computersoftware, and honed his leadership skills. This led toseveral promotions: Project Coordinator in 2009, ProjectManager in 2012, and Project Account Manager in2015.
With the introduction of new technology such asthe AWS, Chipon sees that DDD will continue togrow as a company, “I really love my job and Iam going to stay longer and contribute to itsgrowth. I think there is still a lot to learn.”
"If I didn’t have ascholarship, it wouldbe very difficult formy family to supportmy studies.”
DDD Alums 7
kenya
Agnes Wathungu
Agnes Wathungu was only 16 when her father died.Tasked with supporting her family, she left herhometown and moved to Nairobi. But with only ahigh school diploma, her job opportunities werelimited to menial work like laundry. “Women are notvalued as much as males, women don’t get lucrativejob positions,” Agnes shared.
Three years later her uncle got a DDD applicationform and gave it to Agnes. In February 2012, herDDD journey began.
Agnes started under the Data Management teamhandling the African Law Project, and was laterpromoted to Quality Analyst. She then transferredfrom Operations to Finance, as she wanted to workon something related to her studies in finance andaccounting.
In 2016, Agnes graduated from Kenyatta University.At present, she is balancing her work with herpreparations for the 2018 CPA board exams.
Agnes says, “when you empower a woman, youempower a whole society. I feel empowered because Ican now afford the good life. Before, my familydepended on friends and relatives for food and rent;now, we don’t have to struggle.”
“Without DDD, I don’tknow how I would’vefinanced my studies! Iwas qualified to joinuniversity, but it’stoo expensive.”
DDD Alums 8
laos
Khamla Phongdala
Khamla Phongdala was a high schooler working ata barbecue restaurant in Luang Prabang when acustomer told him about DDD in Laos. “I wantedto learn to stand on my own feet so I applied,”Khamla said.
Khamla started as a volunteer for six months, thenafter a three-month training, became an AssistantTeam Leader. He kept moving his way up,becoming a Team Leader then Senior Team Leader.In two years, he was promoted to AssistantManager, and eventually Project Manager. ThroughDDD’s Work-Study and scholarship program, hefinished Bachelor’s Degrees in Hotel-TourismManagement and Business Administration.
After nine years at DDD Laos he felt that he wasready to take his career in another direction. Hejoined MMG Limited, a mining company in July2014, where he is now a Global Master DataManager.
“DDD gave me a lot of opportunity to gain skills,knowledge and experience that are helping me inmy current job...Working at DDD was reallychallenging. It was not easy, but I am a verydriven person so I stayed a long time.”
“It is through DDDthat I have been ableto achieve what I havealways wanted to do.”
DDD Alums 9
liberty source
Leah Palileo
Leah Palileo has been a Navy spouse for 14 years, andrelocated four times (to California, Japan, Virginia,then back to Japan). She graduated with a degree inMarketing from a top university in the Philippines,won a scholarship and got an engineering degree inJapan, and earned an MBA from the Universityof Maryland. Even with these credentials, shehad difficulty finding a job that matched herskills because she was always moving.
Leah was a liaison officer between Navycommand officers and their families when shefirst heard of Liberty Source (LS). At LS, shestarted as a Financial Analyst in the main officeat Virginia. She was able to continue such workwhen her husband was assigned to Japan - LSmanagement supported Leah’s move byproviding her with additional days off, a temphire to assist in the transition of work, andadjustments for the time zone difference.
Says Leah, “Working for Liberty Source was ablessing from the very beginning. Managementnot only afforded its employees the opportunityto grow and bring their work with them whenthey need to move, but the work culture andsupport – from management and fellow employees –has also been phenomenal.”
“Working for LibertySource was a blessingfrom the verybeginning."
DDD Service Lines 10
DDD helps clients monetize their content, reap the full value of their business data, and collectproprietary data to more effectively manage their businesses and serve their customers. DDDoffers digital content and data solutions to businesses and institutions worldwide. Clients gain acompetitive advantage through our project management excellence, our deep commitment to stafftraining and development, and our top-notch onshore customer service. Our services include:
Institutional
DKMS
DuraSpace
UNICEF
World Bank
Publishing
Amazon
Trusted Media Brands
Corporate
Fossil Group
MobiTel
Nor1
Pixelz
Academic
Harvard University
Stanford University
University of Chicago
Yale University
Government
Kenya National Bureau of
Statistics
National Library of Australia
National Museums of Kenya
New Zealand House of
Representatives
Our Clients
DDD Service Lines
Finance and
Accounting
Human Resources
Industry-Specific
Processes
Business ProcessServices
Data Entry & Data
Verification
Database Content Support /
Data Hygiene
Records Management
Data Services
Content and Data Science
Technology Solutions
Social Research and Data
Analytics
Digital Skill Development
Cloud ComputingSolutions
Internet Research
Field Research
Market Research
Data Collection & Analytics
ResearchServices
Content & eBook
Conversion
Newspaper & Archive
Digitization
Editorial
Digitization &Conversion Services
Image Enhancement
Photo Retouching
Cropping and De-Skewing
Image Processing
Client Profiles 11
Client Profiles
DDD is pioneering the nextgeneration of ImpactSourcing by working withindustry leaders to offeradvanced technologyservices. We are utilizingAmazon Web Services (AWS)cloud services to deliver onthe following client projects.
Client Profiles 12
The National Museums of Kenya (NMK) is thecustodian of Kenya’s natural and culturalheritage. Its collections represent the longestrecord of human evolution in the world,including 6 million years of humankind’spaleontology and 3.3 million years of culturalevolution and some of the best-preservedhominid specimens. For years, NMK sought topreserve this rare and important collectionthrough digital preservation to mitigate the riskof losing valuable information and recordsrelated to many of these premier artifacts andspecimens due to decay and passage of time. Italso wants to provide access to the collection toanyone who is interested via a virtual experiencethat engages people and gets them interested in
understanding and learning about Kenya’scultural and natural heritage.
Using cloud and 3D technology provided byAmazon Web Services and Intel, DDD iscategorizing, scanning and uploading 3Dimages of museum artifacts. In the first phase ofthis project, DDD will digitally archive 10,000artifacts out of 3 million, and will be using theAmazon cloud to create a virtual museumexperience for the public, while providing accessto rarest of materials and artifacts to theresearch and academic community. Our goal isto complete the digitalization of these artifactsin three years.
Client Profiles 13
DDD is currently working with researchers fromthe University of Chicago’s Booth School ofBusiness in their study of the Census ofManufacturers (1850 – 1880). Our role is tocapture handwritten economic data at thehighest accuracy levels possible, and encodethem into a database. With the data in electronicformat, the researchers can combine andanalyze the data.
To date, the University of Chicago is one of ourmost satisfied customers. DDD scored high gradesfor on-time delivery, team responsiveness, andquality of work in its annual customer satisfactionsurvey. We look forward to continued work on theproject, assisting the researchers in subsequentwork and strengthening our relationship with theUniversity.
Client Profiles 14
DuraSpace is a not-for-profit organization thatstewards community supported open sourcesoftware developed by librarians, archivists,technologists, and researchers who share thegoal of creating and preserving long-term accessto the world’s digital heritage.
DuraSpace’s applications are deployed on theAWS cloud platform. DDD’s cloud specialists
help the DuraSpace team in optimizing thedeployment of their product suite, build testautomations, and perform R&D support wherethe team looks at new and innovative ways toreduce costs, improve resource utilization andscaling on product deployments on the AWSplatform.
Office Highlights 15
Office Highlights 10
DDD Cambodia
Celebrating Team Success
In Cambodia, DDD strengthened our Work-StudyProgram, focusing on securing more scholarships andemployment partners.
Highlights:
117 associates graduated from the Work-StudyProgram.
DDD Cambodia employed 63 trainees whosuccessfully completed B.E.S.T. training.
We initiated a new “Life Skills” training course,which enhanced our associates’ skills insetting goals, improving self-esteem, resolvingconflicts, and handling responsibilities.
We signed a Memorandum of Understandingwith the Paññāsāstra University of Cambodiato strengthen our scholarship program.
Employment partnerships were establishedwith the following organizations:
- Asia Foundation
- National Employment Agency
- Khmer Youth Associations
- Cambodia Job Foundation
- Capacity Building Center
- Bangpheak.com
- Don Bosco Technical School
- AHHA Education Program
Office Highlights 16
DDD Kenya
Setting New RecordsDDD Kenya’s 2017 was filled with growth on manyfronts, notably higher graduation rates, new clientservices, and increased support for our associates.
Highlights:
The office registered its highest number ofgraduates so far, with 40 associates officiallycompleting their university studies.
DDD Kenya became the first Cloud Center ofExcellence in East Africa, offering Amazon WebServices.
The Center’s first cohort of 30 associatesachieved a 100% passing rate in the AWSSystems Operation Administrator Certificationexam.
Following our Asian counterparts, we rolledout the B.E.S.T. pre-employment training andthe LMS in the country.
We also partnered with Quest Alliance toconduct life skills training for 90 studentsand are working to have this contentincluded in the LMS.
We are providing our associates withacademic and career coaching support,helping halve the drop-out rate.
Office Highlights 17
DDD Laos
Building Internal Capacityand PartnershipsFor DDD Laos, 2017 marked another year of increasingcustomer satisfaction, and growing our work withexisting clients.
Highlights:
We worked with The Lao Disabled WomenDevelopmentCenter (LDWDC)andtheLaoDisabledPeople’s Association (LDPA) to enroll morecandidateswith disabilities from rural households.
We increasedour recruitment efforts by participatingin career fairs organized by the Lao AmericanCollege to promote DDD’s Work-Study model andjob opportunities.
76 youth in the Work-Study Program graduatedfromtheir respectiveschools,with22of themnowin full-time jobs.
The LMS continues to develop, with 85 associateshaving completed their orientation through theplatform.
We initiated our Employee Engagement program(team building events, sports tournaments,social gatherings) to promote camaraderieand teamwork in the office.
DDD Laos inked partnerships for capacitybuilding, notably with the Lao Ministry of Industryand Commerce Business Assistance Facility andTACDO, a development consulting firm.
Office Highlights 18
We welcomed a new Board member, RearAdmiral Ken Carodine, USN (Ret.), an ITexecutive with proven business expertiseand military experience.
In 2018, Liberty Source’s main investmentswill be to ramp up business developmentand new client work, including investigatingcloud computing opportunities.
Liberty Source
Progress andGrowth
2017 brought in a lot of new things to Liberty Source:new client and staff, a new office building, a new look,and a new Board member.
Highlights:
We signed a 3-year contract with Bloomberg to beone of their Impact Sourcing providers, andrenewed our contract with AOL (now calledOATH).
Our number of shipmates, Liberty Source’s ownterm for associates, grew to 234 (with 130shipmates working on the Bloomberg account).
To accommodate our ever-growing team, weexpanded our facilities to include a third officebuilding: a 6,727-square-foot former military base.
In line with the year’s theme of expansion andgrowth, we also revamped our marketing andbrand awareness efforts.
Financials 19
$1,000 FY2017 FY2016 YoY %
Asia
Africa
Liberty Source
Total
3,496
2,006
7,060
12,562
3,294
2,782
5,048
11,124
6%
-28%
40%
13%
Breakdown of earned revenue produced byeach DDD office:
The DDD group continued on its growth path inFY2017. Earned revenue increased from $11.1m inFY2016 to $12.6m in FY2017, or +13%. Growth wasdistributed unevenly. Our Asia offices produced 6%in additional revenue as our image editing service inCambodia grew by 30%, while our Laotian officeadded business with existing clients. Our Africanoffice experienced a 28% decline in revenue, drivenmainly by our social and market research servicearea which accounts for three-quarters of the totalrevenue loss. Liberty Source, our U.S. operationbased in Virginia, was a bright spot again andcontinued to grow because of an increase of work indatabase support for a large US corporation infinancial services.
Overall, revenue in our Asian and African offices didnot develop as well as we anticipated. Nevertheless,the overall revenue loss of 9% in those officesmasks promising developments in our serviceportfolio, in particular in Africa. There, we haveentered into a partnership with AWS to providemanaged services in cloud computing to AWSclients around the globe.
DDD made further progress on its path to financialsustainability. The key figure we observe mostclosely in this regard is the share of businessexpenses covered by client revenue. We managed toimprove from 80% in FY2015 to 92% in FY2017.This improvement was mostly driven by morevolume at Liberty Source, the office that has alreadymoved into positive operating earnings territory,measured by operating profit before interest, taxes,depreciation and amortization (“EBITDA”). Asiahas made further progress toward break even whileAfrica has slightly fallen behind for lack of revenuebut also due to the investments in our new cloudcomputing practice.
Our net income has benefitted from philanthropicsupport to cover the costs of our impact programsacross our offices and to invest in commercial activities
like cloud computing. We continue to believe thatthese are important investments to achieve ourdual goals: achieve financial sustainability whileproviding our employees with marketable skillsthat allow them to increase their lifetime earnings.
We are optimistic that we can continue our growthpath in Asia and at Liberty Source and regain ourfooting in our African office. We expect to makefurther progress toward financial sustainability, allwhile creating positive social impact and changingthe lives of our employees wherever we operate.
$12.6m 92%
in earned revenue businessexpenses coveredby earned revenue
Financials (for fiscal year ending June 30, 2017)
Financials 20
Business Revenue
Business Expenses
Net income (loss) from
business activities
Fundraising and other
contributions
Non-profit expenses
Net income (loss) from
non-profit activities
Net income (loss) for the
year
Additional information to
the statement of activities
Earnings before interest,
taxes, depreciation and
amortization (EBITDA)
Fundraising and other
contributions consist of:
Unrestricted
contributions
Release from temporarily
restricted contributions
Total fundraising revenue
Non-profit expenses
consists of:
Program expenses
Organizational expenses
Fundraising expenses
Total non-profit expenses
12,562
13,681
(1,119)
2,240
863
1,377
258
(303)
1,715
525
2,240
428
204
231
863
13%
13%
12%
-21%
-13%
-26%
-70%
-26%
1%
-54%
-21%
9%
-43%
-4%
-13%
Statement of Activities FY2017* YoY%
11,124
12,119
(995)
2,844
990
1,854
859
(411)
1,706
1,138
2,844
393
357
240
990
FY2016*
Property, plant, and
equipment
Software
Other non-current assets
Total non-current assets
Cash and cash equivalents
Trade accounts receivable
Other current assets
Total current assests
Total assets
Unrestricted net assets
Temporarily restricted net
assets
Total net assets
Long-term debts
Other long-term liabilities
Total non-current
liabilities
Short-term debts
Unearned revenue
Trade accounts payable
Other current liabilities
Total current liabilities
Total net assets and
liabilities
1,247
230
318
1,795
249
2,679
1,074
4,002
5,797
1,998
182
2,180
1,588
93
1,681
519
293
497
627
1,936
5,797
1,051
588
394
2,033
319
1,900
766
2,985
5,018
2,009
430
2,439
1,001
90
1,091
374
189
284
641
1,488
5,018
Statement of Financial
PositionFY2017* FY2016*
* in $1,000
Financials (for fiscal year ending June 30, 2017)
DDD Leadership 21
SariMiller
AnishNanavaty
KojiOsawa
DhirenRawal
SarahMartin
WalterFust
RobertShultz
MichaelChertok
StefanKappeler
FrankHeitmann
JaesonRosenfeld
Board of Directors
Management Team
JeremyHockensteinco-founderand ceo
RobertSiegelpresident,liberty source
SopheapImevp forimpactand hr
SameerRainachiefstrategyofficer
GaborTothevp foroperations
WolfgangMuellerchieffinancialofficer
IrvingLevinboardchairman
JeremyHockensteinceo
DDD Alums 9
We thank our donors for their generoussupport toDDD in 2017. DDDhas receiveddonations from both committed andnewinstitutional and corporate donors, family
foundations, and individuals.
Thank you!
Partners and Collaborators 23
Partners & Collaborators
Connect 24
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DDD Alums 9
115 WestNEW YORK, NY
Fort MonroeHAMPTON, VA
NairobiKENYA
VientianeLAOS
Phnom PenhCAMBODIA
New York, United States
Digital Divide Data
115 West 30th Street,
Suite 400,
New York, NY 10001
P +1.212.461.3700
F +1.212.813.3209
Virginia, United States
Liberty Source PBC
355 Fenwick Road,
Fort Monroe,
Hampton, VA 23651
P +1.757.251.7482
Nairobi, Kenya
Digital Divide Data
Kenya Ltd Paramount Plaza
7th Floor,
Nairobi, Kenya
PO Box 4282-00506
P +254.772.191.795
Phnom Penh, Cambodia
Digital Divide Data
No. 559, Street 271,
Tuol Tom Pong II
Khan Chamkar Mon,
Phnom Penh, Cambodia
P +856.23.220.843
Vientiane, Laos
Digital Divide Data Co., Ltd.
Unit 56, Ban Tanmixay,
Xaythany District,
Vientiane, Lao PDR
P +856.21.720.474
F +856.21.720.406
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