一正蒲鉾（2904） – [Delayed]Consolidated Financial Results for the Nine Months Ended March 31, 2022[Japanese GAAP]

Consolidated Financial Results for the Nine Months Ended March 31, 2022 [Japanese GAAP] Company name: ICHIMASA KAMABOKO Co., Ltd. Stock exchange listing: Tokyo Stock Exchange Code number: 2904 URL: https://www.ichimasa.co.jp/global/en/ Representative: Masahiro Nozaki, President & CEO Contact: Masaki Takashima, Director and Managing Executive Officer, General Manager of Corporate Planning May 13, 2022 Department Phone: +81-25-270-7111 Scheduled date of filing quarterly securities report: May 13, 2022 Scheduled date of commencing dividend payments: — Availability of supplementary explanatory materials on quarterly financial results: Available Schedule of quarterly financial results briefing session: Not scheduled 1. Consolidated Financial Results for the Nine Months Ended March 31, 2022 (July 1, 2021 – March 31, (Amounts of less than one million yen are rounded down.) 2022) (1) Consolidated Operating Results Net sales (% indicates changes from the previous corresponding period.) Profit attributable to owners of parent Ordinary profit Operating profit Nine months ended March 31, 2022 March 31, 2021 (Note) Comprehensive income: Nine months ended March 31, 2022: ¥477 million [(73.4) %] Nine months ended March 31, 2021: ¥1,796 million [58.8 %] % Million yen 883 1,977 % Million yen 842 1,955 Million yen 25,054 27,679 (55.3) 17.2 (56.9) 13.4 — (3.2) % Million yen 669 1,519 % (55.9) 30.1 Basic earnings per share Diluted earnings per share Nine months ended March 31, 2022 March 31, 2021 Yen 36.39 82.47 Yen － － (Note) “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020) and related guidelines have been adopted effective the beginning of the first quarter of the current fiscal year. Key financial data for the nine months ended March 31, 2022, indicated above, are figures after the adoption of these accounting standards, etc., and the change in net sales from the previous corresponding period is not presented. (2) Consolidated Financial Position Total assets As of March 31, 2022 As of June 30, 2021 (Reference) Equity: As of March 31, 2022: ¥13,828 million Million yen 22,841 22,216 Million yen 13,828 13,585 Net assets Equity ratio % 60.5 61.2 As of June 30, 2021: ¥13,585 million (Note) “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020) and related guidelines have been adopted effective the beginning of the first quarter of the current fiscal year. Key financial data for the nine months ended March 31, 2022, indicated above, are figures after the adoption of these accounting standards, etc., and the change in net sales from the previous corresponding period is not presented. 2. Dividends Annual dividends 1st quarter-end 2nd quarter-end 3rd quarter-end Year-end Total – Yen Yen Yen 0.00 Fiscal year ended June 30, 2021 Fiscal year ending June 30, 2022 Fiscal year ending June 30, 2022 (Forecast) (Note) Revision to the forecast for dividends announced most recently: None 3. Consolidated Financial Results Forecast for the Fiscal Year Ending June 30, 2022 (July 1, 2021 – June 30, 12.00 10.00 0.00 Yen – – – Yen 10.00 12.00 2022) Net sales Operating profit Ordinary profit (% indicates changes from the previous corresponding period.) Profit attributable to owners of parent Basic earnings per share Full year (Notes) 1. Revision to the financial results forecast announced most recently: Yes (68.3) (64.0) Million yen 31,600 % Million yen 550 – % Million yen 650 % Million yen 550 % (79.5) Yen 29.89 2. As “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020) and related guidelines have been adopted, the above consolidated financial results forecasts are figures after the adoption of these accounting standards, etc. and the changes in net sales from the previous full year are not presented. 3. For the consolidated financial results forecast for the fiscal year ending June 30, 2022, please refer to the press release dated today titled “Notice regarding Revision of Consolidated Financial Results Forecast for the Fiscal Year Ending June 30, 2022.” * Notes: (1) Changes in significant subsidiaries during the period under review: None (2) Accounting methods adopted particularly for the preparation of quarterly consolidated financial statements: None (3) Changes in accounting policies, changes in accounting estimates and retrospective restatement 1) Changes in accounting policies due to the revision of accounting standards: Yes 2) Changes in accounting policies other than 1) above: None 3) Changes in accounting estimates: None 4) Retrospective restatement: None (4) Total number of issued and outstanding shares (common shares) 1) Total number of issued and outstanding shares at the end of the period (including treasury shares): As of March 31, 2022: As of June 30, 2021: As of March 31, 2022: As of June 30, 2021: 18,590,000 shares 18,590,000 shares 215,288 shares 158,688 shares 2) Total number of treasury shares at the end of the period: 3) Average number of shares during the period (cumulative quarterly accounting period): Nine months ended March 31, 2022: Nine months ended March 31, 2021: 18,403,012 shares 18,429,510 shares Note: The Company has introduced the Board Benefit Trust (BBT) and the number of treasury shares at the end of each period includes shares of the Company held by the BBT (150,200 shares as of March 31, 2022 and 93,600 shares as of June 30, 2021). The number of treasury shares deducted in the calculation of the average number of shares during each period includes shares of the Company held by the BBT (121,900 shares for the nine months ended March 31, 2022 and 95,420 shares for the nine months ended March 31, 2021). * These quarterly consolidated financial results are outside the scope of quarterly review by certified public accountants or an audit firm. * Explanation of the proper use of financial results forecast and other notes The financial results forecasts and other forward-looking statements contained herein are based on the information available to the Company and certain assumptions deemed reasonable as of the date of this report and do not constitute a promise by the Company to achieve these forecasts. Actual results may be significantly different from these forecasts due to various factors. For the assumptions on which the financial results forecasts are based and the cautions and other related matters to consider when using thereof, please refer to “1. Qualitative Information on Quarterly Financial Results (3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information” on page 4 of the attachment. Table of Contents – Attachments 1. Qualitative Information on Quarterly Financial Results ………………………………………………………………. 2 (1) Explanation of Operating Results …………………………………………………………………………………………. 2 (2) Explanation of Financial Position …………………………………………………………………………………………. 3 (3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information ….. 4 2. Quarterly Consolidated Financial Statements and Principal Notes ………………………………………………… 5 (1) Quarterly Consolidated Balance Sheets …………………………………………………………………………………. 5 (2) Quarterly Consolidated Statements of Income and Comprehensive Income ……………………………….. 7 Quarterly Consolidated Statements of Income Nine Months Ended March 31……………………………………………………………………………………….. 7 Quarterly Consolidated Statements of Comprehensive Income Nine Months Ended March 31……………………………………………………………………………………….. 8 (3) Notes to Quarterly Consolidated Financial Statements …………………………………………………………….. 9 (Notes on going concern assumption) ……………………………………………………………………………….. 9 (Notes in case of significant changes in shareholders’ equity) ………………………………………………. 9 (Accounting methods adopted particularly for the preparation of quarterly consolidated financial statements) …………………………………………………………………………………………………………………….. 9 (Changes in accounting policies) ……………………………………………………………………………………….. 9 (Additional information) …………………………………………………………………………………………………… 9 (Segment information, etc.) ……………………………………………………………………………………………. 10 1 1. Qualitative Information on Quarterly Financial Results (1) Explanation of Operating Results In the nine months ended March 31, 2022, economic activity remained sluggish with the Tokyo Olympic and Paralympic Games held without spectators, which had been expected to jump-start an economic recovery, and a sharp rise in positive COVID-19 cases with the emergence of new variants, and a prolonged state of emergency and localized priority measures to prevent the spread of COVID-19. The international unrest and the turmoil in the global economy triggered by Russia’s invasion of Ukraine also compounded the situation and the outlook for economic recovery remained uncertain. Costs are increasing significantly beyond expectations, such as soaring prices of surimi and other raw materials, rises in energy prices, especially those of crude oil, and rising labor costs resulting from labor shortages, which are becoming chronic, and these prices can increase even further under the unstable social conditions. Thus, the business environment surrounding the Group has become increasingly severe. Under these circumstances, the Group entered the first year of its 2nd Medium-term Management Plan, which extends from July 2021 to June 2026, with the ICHIMASA30 Vision (the Company’s vision for FY2045) as its aim. It is addressing business issues with the basic policy of “establishing the foundations for business growth and earnings capability through daring challenges toward markets in Japan and overseas and the certain achievement of a first-stage ‘growth trajectory.’” Further, the maintenance of the global environment is essential for the sustainable growth and development of corporate activity. With the aim of achieving the Sustainable Development Goals (SDGs), the Group established the ICHIMASA KAMABOKO ESG Management Declaration on July 1, 2021 to promote ESG-oriented management that will both contribute to the realization of a sustainable society and enhance corporate value and is striving to resolve sustainability issues with the cooperation of stakeholders. As a result, for the nine months ended March 31, 2022, the Company posted net sales of ¥25,054 million, operating profit of ¥842 million (down ¥1,113 million or 56.9 % from the same period of the previous fiscal year), ordinary profit of ¥883 million (down ¥1,094 million or 55.3% from the same period of the previous fiscal year), and profit attributable to owners of parent of ¥669 million (down ¥850 million or 55.9% from the same period of the previous fiscal year). The performance of each segment is as follows. (Fish-paste Products and Side Dishes Business) The Company’s mainstay product, kanikama (crab-flavored kamaboko), has enjoyed strong popularity as an easily accessible source of fish meat protein, as health consciousness continues to rise. Within this category, the time-limited product, “Salad Stick Edamame-Flavor” proved very popular as summer snacks to accompany drinks, and “Large Kanikama” and its renewal product “Gaburich miwaku no kanikama,” a satisfying way to eat quality fish meat protein, also proved very popular as a key ingredient for special-day dishes at home. In terms of products for the “osechi,” Japanese traditional New Year’s day food, sales grew for the “Jun” series kamaboko and datemaki rolled omelet, whose main and auxiliary ingredients are all made in Japan. With the effect of the adoption of the Accounting Standard for Revenue Recognition and related guidelines and the liquidation of a consolidated subsidiary, Marusu-kamaboko Industries Co., Ltd., in May 2021, sales in this segment decreased from the same period of the previous fiscal year. In terms of profit, due to growing health consciousness around the world and increased demand for processed seafood products driven by economic growth in emerging nations, international market prices of surimi have remained at high levels. Energy prices also have remained high, due to the global economic recovery from the impact of the COVID-19 pandemic and the situation in Ukraine. West Texas Intermediate (WTI), one of the primary benchmarks of crude oil prices, hovered around $100. Furthermore, various costs continue to rise, which include the repeated increases of edible oil prices due to a decreased crop of grains, etc. Under these circumstances, the Company revised the prices of its fish-paste products and side-dish products by approximately 5% to 15%, effective from shipments on March 1, 2022, but the effect during the period under review was limited, 2 resulting in profit falling below that of the same period of the previous fiscal year. As a result, for the nine months ended March 31, 2022, this segment posted net sales of ¥21,447 million and segment profit or operating profit of ¥254 million (segment profit or operating profit of ¥1,055 million for the same period of the previous fiscal year). (Mushroom Business) Market prices of vegetables in general and mushrooms in mid-August surpassed those in the same period of the previous fiscal year as the growth of some vegetables was slowed by the lack of sunlight and lower atmospheric temperatures. From March, with a decrease in the supply of mushrooms, the market prices stopped falling and exceeded the previous year’s levels, but were generally low for most of the period under review as the weather was relatively stable , resulting in a favorable vegetable growth. Under these circumstances, the environment surrounding mushroom sales was severe. In terms of production, efforts were made toward stable cultivation, production efficiency improvements, and the strengthening of quality control systems, while in the sales area, the Company worked to strengthen its menu proposals to increase demand for home cooking and the marketing of large-volume products. As a result, for the nine months ended March 31, 2022, this segment posted net sales of ¥3,238 million, and segment profit or operating profit of ¥553 million (segment profit or operating profit of ¥830 million for the same period of the previous fiscal year). (Transport Business and Warehouse Business) For the transport business, both net sales and profit decreased from the same period of the previous fiscal year, mainly because of a lower handling volume of imported vegetables and fruits due to the effect of the weather, soaring fuel prices and increases in depreciation resulting from capital investments. For the warehouse business, net sales increased from the same period of the previous fiscal year thanks to efforts to pursue further opportunities in business with existing customers, but profit dropped from the same period of the previous fiscal year, due mainly to higher electricity costs. As a result, for the nine months ended March 31, 2022, net sales in others, non-reportable segments were ¥369 million, and segment profit or operating profit was ¥24 million (segment profit or operating profit of ¥55 million for the same period of the previous fiscal year). (2) Explanation of Financial Position (Current assets) Current assets as of March 31, 2022 were ¥8,082 million (an increase of ¥206 million from the end of the previous fiscal year). This is mainly attributable to an increase in cash and deposits despite a decrease in merchandise, finished goods, raw materials and supplies. (Non-current assets) Non-current assets as of March 31, 2022 were ¥14,759 million (an increase of ¥418 million from the end of the previous fiscal year). This is mainly attributable to the progression of depreciation of property, plant and equipment and an increase in construction in progress of the second headquarters factory. (Current liabilities) Current liabilities as of March 31, 2022 were ¥5,694 million (a decrease of ¥524 million from the end of the previous fiscal year). This is mainly attributable to decreases in notes and accounts payable – trade. (Non-current liabilities) Non-current liabilities as of March 31, 2022 were ¥3,319 million (an increase of ¥907 million from the end of the previous fiscal year). This is mainly attributable to an increase in long-term borrowings. (Net assets) Net assets as of March 31, 2022 were ¥13,828 million (an increase of ¥242 million from the end of the previous 3 fiscal year) due mainly to the recording of profit attributable to owners of parent, while equity ratio decreased to 60.5% from 61.2% at the end of the previous fiscal year. (3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information The consolidated financial results forecasts for the full fiscal year ending June 30, 2022 have been revised in light of the financial results for the nine months ended March 31 and other factors. For details, please refer to the press release dated today titled “Notice regarding Revision of Consolidated Financial Results Forecast for the Fiscal Year Ending June 30, 2022.” 4 2. Quarterly Consolidated Financial Statements and Principal Notes (1) Quarterly Consolidated Balance Sheets As of June 30, 2021 As of March 31, 2022 (Thousand yen) Assets Current assets Cash and deposits Accounts receivable – trade Merchandise and finished goods Work in process Raw materials and supplies Other Allowance for doubtful accounts Total current assets Non-current assets Property, plant and equipment Buildings and structures, net Machinery, equipment and vehicles, net Tools, furniture and fixtures, net Land Leased assets, net Construction in progress Total property, plant and equipment Intangible assets Investments and other assets Investment securities Other Allowance for doubtful accounts Total investments and other assets Total non-current assets Total assets Liabilities Current liabilities Notes and accounts payable – trade Short-term borrowings Income taxes payable Provision for bonuses Accounts payable – other, and accrued expenses Other Total current liabilities Non-current liabilities Bonds payable Long-term borrowings Provision for retirement benefits for directors (and Provision for share awards for directors (and other other officers) officers) Other Total non-current liabilities Total liabilities 5 1,320,890 2,876,174 687,705 522,311 1,954,420 514,930 (540) 7,875,893 4,374,542 2,868,063 172,113 3,179,344 206,444 42,438 10,842,947 501,445 2,633,867 386,452 (24,500) 2,995,819 14,340,212 22,216,105 1,924,397 1,677,037 30,079 81,653 1,978,329 527,482 6,218,979 300,000 1,593,548 34,160 92,210 392,030 2,411,949 8,630,928 1,991,690 3,114,461 533,162 397,222 1,805,767 240,923 (554) 8,082,674 4,206,968 2,619,026 149,328 3,179,344 190,229 1,329,381 11,674,277 453,106 2,283,267 372,905 (24,500) 2,631,673 14,759,056 22,841,731 1,406,614 1,810,642 263,318 331,179 1,493,931 388,828 5,694,513 200,000 2,624,056 35,858 93,938 365,305 3,319,158 9,013,671 As of June 30, 2021 As of March 31, 2022 Net assets Shareholders’ equity Share capital Capital surplus Retained earnings Treasury shares Total shareholders’ equity Accumulated other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Total accumulated other comprehensive income Total net assets Total liabilities and net assets 940,000 650,000 10,940,341 (119,646) 12,410,694 1,186,541 (12,059) 1,174,481 13,585,176 22,216,105 (Thousand yen) 940,000 650,000 11,424,747 (169,402) 12,845,344 978,701 4,014 982,715 13,828,060 22,841,731 6 (2) Quarterly Consolidated Statements of Income and Comprehensive Income Quarterly Consolidated Statements of Income Nine Months Ended March 31 For the nine months ended March 31, 2021 For the nine months ended March 31, 2022 (Thousand yen) 27,679,745 19,555,210 8,124,534 6,169,323 1,955,211 698 17,934 20,891 17,632 11,995 4,739 16,031 89,923 21,637 70 6,474 8,091 18,657 9,000 3,630 67,562 1,977,572 235,062 32,843 39,256 43,652 350,815 2,302 156,605 158,907 2,169,481 776,907 (127,316) 649,591 1,519,889 － 1,519,889 25,054,881 20,080,669 4,974,212 4,132,005 842,207 792 17,903 13,211 20,474 12,289 9,004 16,062 89,738 18,147 － 712 8,091 － 21,200 253 48,403 883,541 2,485 132,170 － － 134,656 443 － 443 1,017,754 260,501 87,597 348,099 669,654 － 669,654 Net sales Cost of sales Gross profit Selling, general and administrative expenses Operating profit Non-operating income Interest income Dividend income Rental income Commission income Electricity sale income Share of profit of entities accounted for using equity method Miscellaneous income Total non-operating income Non-operating expenses Interest expenses Foreign exchange losses Loss on valuation of investment securities Depreciation Depreciation of inactive non-current assets Commission expenses Miscellaneous losses Total non-operating expenses Ordinary profit Extraordinary income Gain on sale of non-current assets Gain on sale of investment securities Insurance claim income Subsidy income Total extraordinary income Extraordinary losses Loss on retirement of non-current assets Impairment losses Total extraordinary losses Profit before income taxes Income taxes – current Income taxes – deferred Total income taxes Profit Profit attributable to non-controlling interests Profit attributable to owners of parent 7 Quarterly Consolidated Statements of Comprehensive Income Nine Months Ended March 31 Profit Other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Share of other comprehensive income of entities accounted for using equity method Total other comprehensive income Comprehensive income Comprehensive income attributable to Comprehensive income attributable to owners of parent Comprehensive income attributable to non-controlling interests For the nine months ended March 31, 2021 For the nine months ended March 31, 2022 (Thousand yen) 1,519,889 210,094 66,009 245 276,349 1,796,238 1,796,238 － 669,654 (207,840) － 16,074 (191,766) 477,888 477,888 － 8 (3) Notes to Quarterly Consolidated Financial Statements (Notes on going concern assumption) Not applicable. (Notes in case of significant changes in shareholders’ equity) Not applicable. Not applicable. (Changes in accounting policies) (Accounting methods adopted particularly for the preparation of quarterly consolidated financial statements) (Adoption of Accounting Standard for Revenue Recognition, etc.) The Company has adopted the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020; hereinafter “Revenue Recognition Standard”) and related guidelines effective the beginning of the first quarter of the current fiscal year. In line with this adoption, revenue is recognized upon the transfer of control for promised goods or services to customers in an amount that reflects the consideration to which they expect to be entitled in exchange for those goods or services. With this adoption, whereas sales commissions, logistics costs, and other considerations paid to customers were previously treated as “selling, general and administrative expenses,” their treatment has changed to a method of deducting them from “net sales.” The Revenue Recognition Standard has been adopted in accordance with the transitional treatment set forth in the proviso of Paragraph 84 of the Revenue Recognition Standard, but there has been no effect on retained earnings at the beginning of the first quarter of the current fiscal year. As a result, “net sales,” “gross profit,” and “selling, general and administrative expenses” each declined by ¥2,003,988 thousand. There was no effect on “operating profit,” “ordinary profit” or “profit before income taxes.” Further, in accordance with the transitional treatment set forth in Paragraph 28-15 of the Accounting Standard for Quarterly Financial Reporting (ASBJ Statement No. 12, March 31, 2020), information about breakdown of revenue from contracts with customers for the third quarter of the previous fiscal year has not been presented. (Adoption of Accounting Standard for Fair Value Measurement) The Company has adopted the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July 4, 2019; hereinafter “Fair Value Measurement Standard”) and related guidelines effective the beginning of the first quarter of the current fiscal year. In accordance with the transitional treatment set forth in Paragraph 19 of the Fair Value Measurement Standard and Paragraph 44-2 of the Accounting Standard for Financial Instruments (ASBJ Statement No. 10, July 4, 2019), the Company will continue to apply new accounting policies prescribed by the Fair Value Measurement Standard and other standards proactively. This adoption has no effect on the quarterly consolidated financial statements. (Additional information) (Accounting estimates related to the effects of the spread of COVID-19) In the nine months ended March 31, 2022, there were no material changes to the contents of the Securities Report for the previous fiscal year. 9 (Segment information, etc.) I. For the nine months ended March 31, 2021 (from July 1, 2020 to March 31, 2021) 1. Information on net sales and profit (loss) by reportable segment Reportable segment Fish-paste Products and Side Dishes Business Mushroom Business Total Others (Note 1) Total Adjustment (Note 2) (Thousand yen) Amount recorded in Quarterly Consolidated Statements of Income (Note 3) 23,593,989 3,731,027 27,325,017 354,727 27,679,745 － 27,679,745 － － － 1,900,178 1,900,178 (1,900,178) － 23,593,989 1,055,128 3,731,027 830,429 27,325,017 1,885,558 2,254,906 55,270 29,579,924 1,940,829 (1,900,178) 14,382 27,679,745 1,955,211 (Notes) 1. The “Others” category refers to the transport business and warehouse business not included in reportable 2. The adjustment of ¥14,382 thousand in segment profit is primarily elimination of intersegment 3. Segment profit has been adjusted with operating profit in the Quarterly Consolidated Statements of Net sales Net sales to outside customers Inter-segment net sales or transfers Total Segment profit segments. transactions. Income. 2. Information on impairment loss on non-current assets and goodwill by reportable segment Reportable segment Products and Mushroom Side Dishes Business Total Fish-paste Business Impairment loss 156,605 － 156,605 － － 156,605 (Thousand yen) Others Corporate / elimination Total 10 II. For the nine months ended March 31, 2022 (from July 1, 2021 to March 31, 2022) 1. Information on net sales and profit (loss) by reportable segment (Thousand yen) Amount recorded in Quarterly Consolidated Statements of Income (Note 3) － － － － － Reportable segment Fish-paste Products and Side Dishes Business Mushroom Business Total Others (Note 1) Total Adjustment (Note 2) 21,447,412 3,238,412 24,685,825 369,055 25,054,881 25,054,881 － － － 21,447,412 3,238,412 24,685,825 369,055 25,054,881 25,054,881 － － － － － 350,878 350,878 (350,878) 24,685,825 808,472 (Notes) 1. The “Others” category refers to the transport business and warehouse business not included in reportable 21,447,412 254,987 25,405,760 832,885 3,238,412 553,485 (350,878) 9,321 719,934 24,413 25,054,881 842,207 2. The adjustment of ¥9,321 thousand in segment profit is primarily elimination of intersegment 3. Segment profit has been adjusted with operating profit in the Quarterly Consolidated Statements of Net sales Revenue from contracts with customers Other revenue Net sales to outside customers Inter-segment net sales or transfers Total Segment profit segments. transactions. Income. Not applicable. 2. Information on impairment loss on non-current assets and goodwill by reportable segment 3. Matters concerning changes to reportable segments, etc. As stated in “Changes in accounting policies,” the Company has adopted the Revenue Recognition Standard and related guidelines effective the beginning of the first quarter of the current fiscal year and changed its methods for the accounting treatment concerning revenue recognition. For this reason, the Company has made similar changes to the methods for measuring profit or loss of its business segments. Due to these changes, compared with the previous methods, net sales in the Fish-paste Products and Side Dishes Business and Mushroom Business have declined by ¥1,838,516 thousand and ¥165,471 thousand, respectively. There is no effect on segment profit. 11