Summary of Financial Statements
for First Quarter of Fiscal Year Ending March 31, 2019 [Japanese GAAP](Consolidated)
August 7, 2018
Name of listed company:

SHIP HEALTHCARE HOLDINGS, INC.
Shares listed on: Tokyo Stock Exchange
Code:
3360
URL
http://www.shiphd.co.jp/
Representative:
Kunihisa Furukawa, Chairman and CEO
Contact:
Hiroshi Yokoyama, Managing Director
Tel.: +81-6-6369-0130
Scheduled date for filing quarterly report: August 10, 2018 Scheduled start date of dividend payments: –Supplementary briefing materials on results: None
Briefing on quarterly results:
None(All figures are rounded down to the nearest million yen.)

1. Consolidated financial results for the first quarter of the fiscal year ending March 31, 2019 (April 1 –June 30, 2018)(1) Consolidated operating results (cumulative)
Net sales(Percentages represent year-on-year changes.)
Profit attributable toOrdinary profit
owners of parent

Operating profit(Millions yen)

(Millions yen)%

(Millions yen)%

Q1 FY ending March 2019
98,580
9.9
2,749
8.6
2,984
Q1 FY ended March 2018
89,724
0.3
2,532
45.5
2,769
Note: Comprehensive income: Q1 FY ending March 2019: 2,078 million yen (0.4%)
Q1 FY ended March 2018: 2,069 million yen (162.7%)
Basic earnings per
Diluted earnings per
share
share

7.8
47.5

1,772
1,519

16.6
77.0

Q1 FY ending March 2019
Q1 FY ended March 2018%

(Millions yen)

%

(Yen)

(Yen)

35.19
30.04

–
–

(2) Consolidated financial condition
Total assets

Net assets(Millions yen)

Equity capital ratio(Millions yen)%

Q1 FY ending March 2019
264,245
98,59336.4
FY ended March 2018
285,181
102,354
35.0
Reference: Equity: Q1 FY ending March 2019: 96,154 million yen; FY ended March 2018: 99,880 million yen

2. Dividends
End Q1(Yen)

End Q2

Annual dividends
End Q3Year-end

(Yen)

(Yen)

FY ended March 2018–
0.00–
FY ending March 2019–
FY ending March 2019
0.00–
(forecast)
Notes: Revisions made in most recently announced dividend forecasts: None

Total

(Yen)

(Yen)

64.00

64.00

64.00

64.00

3. Forecast of consolidated financial results for fiscal year ending March 31, 2019 (April 1, 2018 – March
31, 2019)(Percentages represent changes from previous year for full-year figures and year-on-year changes for quarterly figures.)
Profit attributable
Basic earnings
Net sales
Operating profit
Ordinary profit
to owners ofper share
parent(Millions yen)
(Millionsyen)(Millionsyen)(Millions
yen)
(Yen)
%
%
%
%
Cumulative through
190,000
1.4
4,400 -27.1
4,600 -27.1
2,600 -28.3
51.83
second quarter
Full-year
440,000
3.4
17,500-4.2
17,800-6.0
10,5001.4
209.90Note: Revisions made in most recently announced forecasts of business performance: None

Notes(1) Changes made in significant subsidiaries during consolidated cumulative quarter under review:(2) Special account processing applied in preparation of quarterly consolidated financial statements:(3) Changes made in accounting policies, accounting estimates, and/or restatements:(i) Changes in accounting policies associated with changes in accounting standards, etc.:(ii) Any changes in accounting policies other than those under (i) above:(iii) Changes in accounting estimates:(iv) Restatements:(4) Number of shares issued and outstanding (common shares)(i) Number of shares issued andQ1 FY ending
FY ended March
50,834,700 shares
outstanding at the end of the period
March 20192018
(including treasury shares)
FY ended March(ii) Number of treasury shares at the end of Q1 FY ending
862,968 shares
March 20192018
the period(iii) Average number of shares during theQ1 FY ending
Q1 FY ended
50,379,982 shares
March 2019
March 2018
period (quarterly cumulative total)

None
None
None
None
None
None
None

50,834,700 shares

235,568 shares

50,599,132 shares* This quarterly summary of financial results is not subject to quarterly review by a Certified Public Accountant
or an audit firm.
* Information on appropriate use of financial forecasts and other special notes:• The average number of shares during the period, on which calculations of net income per share in theforecast of consolidated financial results for the fiscal year ending March 31, 2019, are based, reflects theeffects of purchase of treasury stock under a resolution passed by the board of directors in its meeting
held May 11, 2018.
• The forecasts of financial results and other forward-looking statements provided herein are based on
information available to the Company and assumptions considered reasonable at the time this document
was prepared. They are not guarantees that the Company will achieve such forecasts. Actual results may
differ significantly from the forecasts for various reasons. For the assumptions on which financial
forecasts are based, notes on using financial forecasts, and other information, please refer to “Informationon consolidated financial forecasts and other forward-looking statements” on page 3 of the attachedmaterials.

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for First Quarter of Fiscal Year Ending March 31, 2019 Index of attached materials

1.

2.

Qualitative information on quarterly results ..................................................................................................... 2(1)

Description of business results ................................................................................................................ 2(2)

Analysis of financial position .................................................................................................................. 3(3)

Information on consolidated financial forecasts and other forward-looking statements .......................... 3

Quarterly consolidated financial statements and notes thereto ......................................................................... 4(1)

Quarterly consolidated balance sheet ....................................................................................................... 4(2)

Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive
income ..................................................................................................................................................... 6(3)

Notes on quarterly consolidated financial statements .............................................................................. 8(Notes on the going concern assumption) ................................................................................................ 8(Notes on marked changes to shareholders' equity) ................................................................................. 8(Segment information, etc.) ..................................................................................................................... 8(Additional information) .......................................................................................................................... 9

1

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for First Quarter of Fiscal Year Ending March 31, 2019

1. Qualitative information on quarterly results(1) Description of business results
During this consolidated cumulative first quarter, despite growing concerns about trade friction spurred by the impositionof additional tariffs by the United States, the Japanese economy maintained a course of gentle recovery. Employment andincome conditions continued to improve, buoyed by positive corporate earnings.
In the healthcare industry in which the Group operates, both remuneration for healthcare and nursing care compensation
were revised starting in April, leading to significant drops in amounts refunded for medical materials and in drug prices.
The industry also faced a pressing need to respond to structural reforms due to factors including skyrocketing medical
costs as Japan’s population continues to age and birth rates remain low, changes in the makeup of medical conditions
requiring treatment, introduction of advanced medical technologies, and development of comprehensive community
healthcare systems.
In general, amid these economic conditions, despite harsh conditions for the Dispensing Pharmacy business due to revisedcompensation for prescription drugs, the Group proceeded according to plan, thanks to progress according to plans on
several large-scale projects in the Total Pack Produce business and steady improvements in number of occupants in theLife Care business.
During this consolidated cumulative first quarter, the various factors noted above resulted in net sales of 98,580 million
yen (up 9.9% YoY), operating profit of 2,749 million yen (up 8.6% YoY), ordinary profit of 2,984 million yen (up 7.8%
YoY), and profit attributable to owners of the parent of 1,772 million yen (up 16.6% YoY).
Business results by segment are summarized below.
(i) Total Pack Produce business
The Total Pack Produce business made progress according to plan on several large projects.
As a result, this segment recorded net sales of 17,070 million yen (up 27.4% YoY) and segment profit (operating
profit) of 1,177 million yen (up 15.8% YoY).
(ii) Medical Supply business
Driven by various factors, including steady progress on startup of new SPD facilities in the first half of the fiscal year,
the Medical Supply business recorded performance largely in accordance with plans.
As a result, this segment recorded net sales of 68,078 million yen (up 7.5% YoY) and segment profit (operating
profit) of 704 million yen (up 2.9% YoY).
(iii) Life Care business
The Life Care business demonstrated strong performance, including business efficiency improvements and anincrease in numbers of occupants from the start of the period, due to various factors, including a measure to promote
occupancy based on a campaign featuring a popular cartoon character. This performance was despite the impact ofrevisions to long-term care fees.
As a result, this segment recorded net sales of 5,921 million yen (up 7.4% YoY) and segment profit (operating profit)of 390 million yen (up 114.9% YoY).
(iv) Dispensing Pharmacy businessIn the Dispensing Pharmacy business, despite continuing efforts to improve business efficiency, performance fell due
to revisions in prescription drug compensation.
As a result, this segment recorded net sales of 6,242 million yen (down 0.6% YoY) and segment profit (operating
profit) of 498 million yen (down 19.0% YoY).
(v) Other businesses
In other sectors, the performance of veterinary clinics and sales of physical and chemical apparatus went largely asplanned. Results from the security support company remained strong from last year.
As a result, this segment recorded net sales of 1,268 million yen (up 6.0% YoY) and segment profit (operating profit)of 105 million yen (up 38.3% YoY).

2

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for First Quarter of Fiscal Year Ending March 31, 2019(2) Analysis of financial position
Assets at the end of the consolidated first quarter under review stood at 264,245 million yen, down 20,935 million yen
from the end of the previous consolidated fiscal year. The primary reasons for this decline included decreases of 22,909
million yen in notes and accounts receivable – trade and 1,546 million yen in land, despite increases of 1,396 million yen
in merchandise and finished goods, 599 million yen in work in process, and 477 million yen in cash and deposits.
Liabilities stood at 165,652 million yen, down 17,174 million yen from the end of the previous consolidated fiscal year.
The primary reasons for this decline included decreases of 16,584 million in notes and accounts payable - trade and 3,697
million in income taxes payable, while electronically recorded obligations – operating increased by 2,033 million yen.
Net assets were 98,593 million yen, down 3,761 million yen from the end of the previous consolidated fiscal year. Primaryreasons for this decline included a decrease of 3,238 million yen in retained earnings due to payment of dividends.
Retained earnings from profit attributable to owners of parent increased by 1,772 million yen and the valuation difference
on available-for-sale securities resulted in an increase of 244 million yen.
As a result of all these factors, the equity capital ratio at the end of the consolidated first quarter under review stood at
36.4%, up 1.4 percentage points from the end of the previous consolidated fiscal year.

(3) Information on consolidated financial forecasts and other forward-looking statements
In general, business performance matched financial forecasts made at the start of the period. The consolidated financial
forecasts for the cumulative second quarter and the full fiscal year remain unchanged from the forecasts announced on
May 11, 2018.

3

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for First Quarter of Fiscal Year Ending March 31, 2019

2. Quarterly consolidated financial statements and notes thereto(1) Quarterly consolidated balance sheet(Unit: Millions yen)
Consolidated first quarter
under review(June 30, 2018)

Previous consolidated
fiscal year
(March 31, 2018)
AssetsCurrent assets
Cash and deposits

59,644

60,121

Notes and accounts receivable - trade

99,09076,181

Electronically recorded monetary claims - operating

3,427

3,761

Lease investment assets

3,873

3,830

Merchandise and finished goods

13,076

14,473Work in process

1,269

1,869

Raw materials and supplies

605

729

Short-term loans receivable

1,788

1,886

Other

8,759

9,754

Allowance for doubtful accounts

-86

-92

191,448

172,515

Buildings and structures, net

19,647

19,422

Land

15,556

14,010Total current assets
Non-current assets
Property, plant, and equipment

Construction in progress

4,428

4,546

Real estate for rent, net

13,395

13,381Other, net

2,743

2,695

Total property, plant, and equipment

55,77054,056

10,650

10,293

Intangible assets
Goodwill
Other

1,129

1,121

Total intangible assets

11,78011,414

Investment securities

7,862

8,265

Long-term loans receivable
Claims provable in bankruptcy, claims provable inrehabilitation and other
Net defined benefit assets

9,870

9,761

79

125

983

989

Deferred tax assets

3,474

3,233

Guarantee deposits

5,544

5,539

902

877

Investments and other assets

Other
Allowance for doubtful accounts-2,536-2,533

Total investments and other assets

26,181

26,259Total non-current assets
Total assets

4

93,732

91,730285,181264,245SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for First Quarter of Fiscal Year Ending March 31, 2019

(Unit: Millions yen)
Consolidated first quarter
under review(June 30, 2018)

Previous consolidated
fiscal year
(March 31, 2018)
Liabilities
Current liabilities
Notes and accounts payable - trade

88,716

72,132

Electronically recorded obligations - operating

21,786

23,819

Short-term loans payable

2,970

2,970

Income taxes payable

4,745

1,048

Provision for bonuses

1,966

2,335

Current portion of long-term loans payable

4,676

4,599

Other

13,064

14,900Total current liabilities

137,925

121,806

Long-term loans payable

36,76535,645Net defined benefit liability

2,706

2,749

Asset retirement obligations

619

622

Deferred tax liability

728

797

Non-current liabilities

Other

4,081

4,029

Total non-current liabilities

44,90043,845

182,826

165,652

Capital stock

15,553

15,553

Capital surplus

23,94823,948Retained earnings

58,37456,908

Total liabilities
Net assets
Shareholders' equity

Treasury shares
Total shareholders' equity-448-3,00097,42893,410

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

2,596

2,841

Foreign currency translation adjustment

-92

-50

Remeasurements of defined benefit plans

-52

-45

2,451

2,744

Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

5

2,474

2,438

102,354

98,593285,181264,245SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for First Quarter of Fiscal Year Ending March 31, 2019(2) Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive
incomeQuarterly consolidated statement of income
Consolidated cumulative first quarter
Previous consolidated
cumulative first quarter(April 1 – June 30, 2017)89,724(Unit: Millions yen)
Consolidated cumulative firstquarter under review(April 1 – June 30, 2018)
98,580

Cost of sales

79,95988,650Gross profit

9,764

9,930

Sales, general, and administrative expenses

7,232

7,180

Operating profit

2,532

2,749

Interest income

8275

Dividend income

82

90

Amortization of negative goodwill

58

58

Share of profit of entities accounted for using equity method

14

34

Reversal of allowance for doubtful accounts

72

Net sales

Non-operating income

Other

94

69

Total non-operating income

338

330

Interest expenses

61

64

Foreign exchange losses

12

–

Other

27

32

Total non-operating expenses

101

96

2,769

2,984

Gain on sales of non-current assets

1

57

Other

0

–

Total extraordinary income

1

57

Loss on sales of non-current assets

3–

Loss on retirement of non-current assets

30Loss on valuation of investment securities

11

2

Other

4

–

Total extraordinary losses

22

3Profit before income taxes

2,748

3,038

Income taxes - current

1,174

1,118

Non-operating expenses

Ordinary profit
Extraordinary income

Extraordinary losses

Income taxes - deferred

24

181

Total income taxes

1,198

1,300

Profit

1,550

1,738

Profit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

6

30

-34

1,519

1,722

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for First Quarter of Fiscal Year Ending March 31, 2019

Quarterly consolidated statement of comprehensive income
Consolidated cumulative first quarter
Previous consolidated
cumulative first quarter(April 1 – June 30, 2017)
1,550(Unit: Millions yen)
Consolidated cumulative firstquarter under review(April 1 – June 30, 2018)
1,738

Valuation difference on available-for-sale securities

538

244

Foreign currency translation adjustments

-20

88

Remeasurements of defined benefit plans

16ProfitOther comprehensive income

Total other comprehensive income
Comprehensive income

519

339

2,069

2,078

2,043

2,065

25

12

(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to noncontrolling interests

7

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for First Quarter of Fiscal Year Ending March 31, 2019(3) Notes on quarterly consolidated financial statements(Notes on the going concern assumption)
Not applicable(Notes on marked changes to shareholders' equity)
Under a resolution passed by the board of directors in its meeting held May 11, 2018, the Company purchased
627,400 shares of treasury stock. As a result, treasury stock increased by 2,552 million yen during this consolidated
cumulative first quarter to 3,000 million yen as of the end of the quarter.

(Segment information, etc.)[Segment information]
I
1

Previous consolidated cumulative first quarter (April 1 – June 30, 2017)
Net sales and profit (loss) by reportable segment(Unit: Millions yen)
Adjustments*2

Amountrecorded onquarterly
consolidated
incomestatement*3

89,724–89,72420

1,328-1,328–

1,216

91,052-1,32889,724

Reportable segment
Total Pack
Producebusiness

MedicalSupplybusiness

Life Carebusiness

Dispensing
Pharmacybusiness

Subtotal

13,394

63,335

5,515

6,283

88,528

1,195

371

285

45

604

1,307

13,76563,621

5,560

6,888

89,835

Other*1

Total

Net sales(1) Sales to outside
customers(2) Intersegment
sales or transfers
Subtotal

1,016
684
181
615
2,497
76
2,573
-41
2,532
Segment profit
Notes:
1. The “Other” category includes businesses not included in reporting business segments, such as the veterinary hospitalbusiness, sales of physical and chemical apparatus, and the security business.
2. The figure of −41 million yen in adjustments to segment profit includes −2 million yen in cancellation of intersegment
transactions and −42 million yen in companywide costs not allocated among reportable segments. These companywide
costs consist mainly of parent company operating expenses and sales, general, and administrative expenses not attributable
to individual reportable segments.
3. Segment profit is adjusted against the operating profit reported on the quarterly consolidated statement of income.

2

Information on impairment loss on fixed assets or goodwill, per reporting segment
During this consolidated cumulative first quarter, no significant impairment loss on fixed assets and no significant change inamounts of goodwill or significant gains on negative goodwill were identified.

8

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for First Quarter of Fiscal Year Ending March 31, 2019

II
1

Consolidated cumulative first quarter under review (April 1 – June 30, 2018)

Net sales and profit (loss) by reportable segment(Unit: Millions yen)
Adjustments*2

Amountrecorded onquarterly
consolidated
incomestatement*3

Reportable segment
Total Pack
Producebusiness

MedicalSupplybusiness

Life Carebusiness

Dispensing
Pharmacybusiness

Other*1

Total

Subtotal

Net sales(1) Sales to outside
customers(2) Intersegment
sales or transfers
Subtotal

17,07068,078

5,921

6,242

97,312

1,268

98,580–98,580

348

266

45

451

1,112

61

1,173

-1,173–

17,41868,345

5,966

6,694

98,425

1,329

99,754-1,173

98,580

1,177
704
390
498
2,769
105
2,875
-125
2,749
Segment profit
Notes:
1. The “Other” category includes businesses not included in reportable business segments, such as the veterinary clinic
business, sales of physical and chemical apparatus, and the security business.
2. The figure of −125 million yen in adjustments to segment profit includes −19 million yen in cancellation of intersegment
transactions and −105 million yen in companywide costs not allocated among reportable segments. These companywide
costs consist mainly of parent company operating expenses and sales, general, and administrative expenses not attributable
to individual reportable segments.
3. Segment profit is adjusted against the operating profit reported on the quarterly consolidated statement of income.

2

Information on impairment losses on fixed assets or goodwill
No important impairment losses on fixed assets, important changes in amounts of goodwill, or important gains on bargain
purchases were recognized during the consolidated cumulative first quarter under review.

(Additional information)
Starting this consolidated cumulative first quarter, the Company began applying ASBJ Statement No. 28 (Partial
Amendments to Accounting Standard for Tax Effect Accounting), issued on February 16, 2018. For this reason, deferred tax
assets are indicated under Investments and Other Assets, while deferred tax liabilities are indicated under Non-current
Liabilities.

9