Summary of Financial Statements
for Third Quarter of Fiscal Year Ending March 31, 2022 [Japanese GAAP](Consolidated)
February 8, 2022
Name of listed company:

SHIP HEALTHCARE HOLDINGS, INC.
Shares listed on: Tokyo Stock Exchange
Code:
3360
URL
https://www.shiphd.co.jp/en/
Representative:(Title) President(Name) Futoshi Ohashi
Contact:(Title) Executive Director(Name) Hiroshi YokoyamaTel.: +81-6-6369-0130
Scheduled date for filing quarterly report: February 10, 2022 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 third quarter of the fiscal year ending March 31, 2022
(April 1 – December 31, 2021)(1) Consolidated operating results (cumulative)
Net sales(Million yen)

(Percentages represent year-on-year changes.)
Profit attributable toOrdinary profit
owners of parent

Operating profit%(Million yen)%

363,154
12,359(14.6)－Q3 FY ending March 2022
Q3 FY ended March 2021
349,357(2.4)
14,476
6.8
Note: Comprehensive income: Q3 FY ending March 2022: ¥ 5,653 million ((46.9) %)Q3 FY ended March 2021: ¥10,638 million ( 8.5 %)Diluted net income per
Net income per share
share
Q3 FY ending March 2022
Q3 FY ended March 2021

(Yen)

(Yen)

74.01
93.45

67.10
84.79

(Million yen)%

(Million yen)%

12,374
14,874(16.8)
1.7

6,983
8,831

(20.9)(0.6)

Note: 1

Accounting Standard for Revenue Recognition (ASBJ Statement No.29, March 31,2020) have been applied from the beginning of the firstquarter of the current consolidated accounting period, and each numerical value for the third quarter of the fiscal year ending March 2022
is the value after applying the relevant accounting standards. Due to the above reason, quarterly YoY rate of change in net sales is notstated.
2 The company executed a two-for-one common stock split, effective on April 1, 2021. “Net income per share” and “Diluted net income pershare” are calculated as if the relevant stock split was executed at the beginning of the previous consolidated fiscal year ended March 31,
2021.

(2) Consolidated financial condition
Total assets

Net assets(Million yen)

Equity capital ratio(Million yen)%

Q3 FY ending March 2022
320,655
116,91135.4
FY ended March 2021
334,498
115,103
33.3
Reference: Equity: Q3 FY ending March 2022: ¥113,355 Million yen; FY ended March 2021: ¥111,440 Million yen

2. Dividends
End Q1(Yen)

End Q2(Yen)

Annual dividends
End Q3Year-end

Total

(Yen)

(Yen)

(Yen)

FY ended March 2021–
0.00–
FY ending March 2022–
0.00–
FY ending March 2022
(forecast)
Notes: Revisions made in most recently announced dividend forecasts: None

80.00

80.00

41.00

41.00

Note: The company executed a two-for-one common stock split, effective on April 1, 2021. Annual dividends for the year ended March 31, 2021 areactual amounts paid prior to the relevant stock split. Forecasted annual dividends for the year ending March 31, 2022 are the amount after the
relevant stock split.

3. Forecast of consolidated financial results for fiscal year ending March 31, 2022
(April 1, 2021 – March 31, 2022)(Percentages represent changes from previous year.)
Profit attributable to Net income per
Net sales
Operating profit
Ordinary profit
owners of parent
share(Million yen)
(Million yen)
(Yen)
% (Million yen)
% (Million yen)%%
530,000
22,5003.2
22,5003.4
12,5001.8
132.48－Full-year
Note: Revisions made in most recently announced forecasts of business performance: None

Note: 1

Accounting Standard for Revenue Recognition (ASBJ Statement No.29, March 31,2020) have been applied from the beginning of the firstquarter of the current consolidated accounting period, and each numerical value for the third quarter of the fiscal year ending March 2022
is the value after applying the relevant accounting standards. Due to the above reason, quarterly YoY rate of change in net sales is notstated.
2 The company executed a two-for-one common stock split, effective on April 1, 2021. “Net income per share” and “Diluted net income pershare” are calculated as if the relevant stock split was executed at the beginning of the previous consolidated fiscal year ended March 31,2021.

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 and outstanding
Q3 FY endingat the end of the period (including treasury March 2022
stock)(ii) Number of treasury stock at the end of the Q3 FY ending
March 2022
period(iii) Average number of shares during theQ3 FY ending
March 2022
period (quarterly cumulative total)

None
None
Yes
None
None
None

101,669,400 shares

FY ended March
2021

101,669,400 shares

7,319,116 shares

FY ended March
2021

7,319,054 shares

94,350,312 shares

Q3 FY ended
March 2021

94,506,546 shares

Note: The company executed a two-for-one common stock split, effective on April 1, 2021. “Number of shares issued andoutstanding at the end of the period”, “Number of treasury stock at the end of the period”, and “Average number of shares
during the period” are calculated as if the relevant stock split was executed at the beginning of the previous consolidated fiscal
year ended March 31, 2021.

* 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 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 guarantee that the Company will achieve such forecasts. Actual results may differ significantly from theforecasts for various reasons. For the assumptions on which financial forecasts are based, notes on using financial
forecasts, and other information, please refer to “Information on consolidated financial forecasts and other forwardlooking statements” on page 3 of the attached materials.

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for Third Quarter of Fiscal Year Ending March 31, 2022

 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 ofcomprehensive 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(Changes in accounting policy) ............................................................................................................... 8(Segment information, etc.) ..................................................................................................................... 9

1

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for Third Quarter of Fiscal Year Ending March 31, 2022

1. Qualitative information on quarterly results(1) Description of business results
The Japanese economy during Q3 FY ending March 2022, momentum for recovery of economic activities had increased
as the declaration of emergency and pre-emergency measures, which had been applied intermittently mainly in major
cities, were lifted at the end of September thanks to the increase of COVID-19 vaccination coverage. On the other hand,the future of the economy remains uncertain due to the emergence of new highly infectious variant of coronavirus, ashortage of raw materials such as semiconductor and crude oil, as well as disruption and break of the global supply chain.
Healthcare industry in which the Group operates, while the medical care system temporarily became overwhelmed thanever due to the fifth wave of the spread of COVID-19, the industry trend has recovered compared to the same period lastyear due to the rapid decrease in the number of newly infected people due to the increase of vaccination coverage.
However, due to the emergence of new highly infectious variant of coronavirus, there is still a need to strengthen thehealthcare provide system in preparation for the sixth wave of the rapid spread of COVID-19 in Japan.
Under such conditions, the Group's business performance declined due to more small-sized projects in Total Pack Produce
business than in previous years, difficulties in procuring electronic components and plastic vinyl products for
manufacturers that we had to temporarily postpone new contracts, and the impact of a reactionary decline in demand for
infection control products in common with the Medical Supply business.
For Q3 FY ending March 2022, the various factors noted above resulted in net sales of 363,154 million yen (Cumulative
consolidated period for the same quarter of the previous year was 349,357 million yen), operating profit of 12,359 million
yen (down 14.6% YoY), ordinary profit of 12,374 million yen (down 16.8% YoY), and profit attributable to owners of theparent of 6,983 million yen (down 20.9% YoY).
Accounting Standard for Revenue Recognition (ASBJ Statement No.29, March 31,2020) have been applied from the
beginning of the first quarter of the current fiscal year. Due to the application, the explanation regarding business results
does not include the YoY comparison (%) concerning net sales since the accounting method is different from theconsolidated cumulative period for the second quarter of the previous fiscal year. For details, please refer to “2. Quarterly
consolidated financial statements and notes thereto (4) Notes on consolidated financial statements (Changes in accounting
policy) and (Segment information, etc.)”.
Business results by segment are summarized below.
The classification of the reportable segments has been changed from the first quarter consolidated accounting period, andthe comparison and analysis of the current third quarter consolidated cumulative period are based on the newclassification.
(i) Total Pack Produce businessIn Total Pack Produce business, business performance declined due to more small-sized projects than in previous
years, order adjustments due to difficulties in procuring electronic components, reactionary decline in demand for
infection control products subject to COVID-19 control subsidies, and military coup, COVID-19 pandemic, andfinancial regulations on Myanmar subsidiary. Alternatively, we were newly commissioned to provide a variety ofservice businesses for countermeasures against COVID-19, including the development and operation of the Osaka
Corona Large-Scale Medical and Medical Care Center.
As a result, this segment recorded net sales of 55,864 million yen (Cumulative consolidated period for the samequarter of the previous year was 64,056 million yen) and segment profit (operating profit) of 4,049 million yen (down
33.4% YoY).
(ii) Medical Supply business
In Medical Supply business, the business performance was declined due to the reactionary decline in demand for
infection control products, despite the demand for medical materials recovered due to increase of the occupancy rate
in medical institutions and the number of surgical cases compare to the same period last year. Also, an efficientmanagement and operation system has been prepared with the start of full-scale operation of "Osaka Solution Center"
which is the automated logistic center for medical consumables.
As a result, this segment recorded net sales of 266,757 million yen (Cumulative consolidated period for the samequarter of the previous year was 246,656 million yen) and segment profit (operating profit) of 4,187 million yen(down 10.5% YoY).
(iii) Lifecare business
In Lifecare business, business performance was firm due to the continued high occupancy rate, thanks to the use ofour detailed information sharing system, which connects residents and their families via the Internet.
As a result, this segment recorded net sales of 18,887 million yen (Cumulative consolidated period for the samequarter of the previous year was 18,476 million yen) and segment profit (operating profit) of 1,825 million yen (up7.1% YoY).
2

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for Third Quarter of Fiscal Year Ending March 31, 2022(iv) Dispensing Pharmacy business
In Dispensing Pharmacy business, the number of consultations has been on a recovery trend compared to last year,
and new store openings and small M&A contributed to the solid business performance although there was someinfluence due to the public drug price revision.
As a result, this segment recorded net sales of 21,644 million yen (Cumulative consolidated period for the samequarter of the previous year was 20,167 million yen) and segment profit (operating profit) of 2,443 million yen (up19.3% YoY)

(2) Analysis of Financial Position
Assets on December 31, 2021 stood at 320,655 million yen, down 13,842 million yen from the end of the previous
consolidated fiscal year. The primary reasons for this decrease included increases of 3,637 million yen in merchandise andfinished goods, despite decrease of 15,428 million yen in notes, accounts receivable, and contract asset and 1,856 million
yen in cash and deposits.
Liabilities stood at 203,744 million yen, down 15,649 million yen from the end of the previous consolidated fiscal year.
The primary reasons for this decrease included increase of 2,134 million yen in electronically recorded obligations operating, despite decrease of 8,570 million yen in notes and accounts payable – trade, 4,678 million yen in income taxes
payable, and 2,388 million yen in long-term loans payable.
Net assets stood at 116,911 million yen, up 1,807 million yen from the end of the previous consolidated fiscal year. The
primary reasons for this increase included decreases of 3,774 million yen in retained earnings due to payment of dividends
and 1,575 million yen in valuation differences on available-for-sale securities, despite increase of 6,983 million yen inretained earnings from profit attributable to owners of parent.
Due to these factors, the equity capital ratio on December 31, 2021 stood at 35.4% (up 2.1 points from the end of theprevious 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 full fiscal year remain unchanged from the forecasts announced on May 11, 2021.

3

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for Third Quarter of Fiscal Year Ending March 31, 2022

2. Quarterly consolidated financial statements and notes thereto(1) Quarterly consolidated balance sheet
Fiscal year ended
March 31, 2021
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Notes, accounts receivable, and contract asset
Electronically recorded monetary claims – operating
Lease investment assets
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
Land
Real estate for rent, net
Other, net
Total property, plant, and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets(Unit: Million yen)
Q3 Fiscal year ending March
31, 2022 (Dec. 31, 2021)

73,907
113,720
－
4,080
3,349
16,139
1,893
691
9,762
(1,654)
221,890

72,051－
98,292
4,553
3,589
19,7773,014
1,021
10,974(1,097)
212,175

19,461
15,947
10,907
11,62457,941

20,246
16,12910,878
10,54057,794

9,604
976
10,581

8,521
976
9,498

26,125
7,655
12,043(1,739)44,085
112,607334,498

24,5397,446
10,975(1,773)
41,187
108,480
320,655(Unit: Million yen)
4

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for Third Quarter of Fiscal Year Ending March 31, 2022

Fiscal year ended
March 31, 2021

Q3 Fiscal year ending March
31, 2022 (Dec. 31, 2021)

Liabilities
Current liabilities
Notes and accounts payable - trade102,209

93,639

Electronically recorded obligations - operating

21,481

23,616

Short-term loans payable

1,248

2,146

Income taxes payable

6,168

1,490

Provision for bonuses

2,508

1,160

Other

18,326

16,198

Total current liabilities

151,942

138,250

Bonds with share acquisition rights

25,06625,047Long-term loans payable

32,72130,333Net defined benefit liability

2,902

2,990

Asset retirement obligations

849

870

Non-current liabilities

Other

5,912

6,250

Total non-current liabilities

67,45165,493219,394

203,744

Capital stock

15,553

15,553

Capital surplus

23,891

23,908Retained earnings

83,56586,775

Total liabilities
Net assets
Shareholders' equity

Treasury stock(15,526)(15,526)

Total shareholders' equity

107,483

110,710

3,923

2,348

Accumulated other comprehensive income
Valuation differences on available-for-sale securities
Deferred gains or losses on hedges

00Foreign currency translation adjustments

68

320

Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

5

(35)

(24)

3,957

2,645

3,663

3,555

115,103

116,911

334,498

320,655SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for Third Quarter of Fiscal Year Ending March 31, 2022

(2) Quarterly consolidated statement of income and consolidated statement of comprehensive income
Quarterly consolidated statement of income
Consolidated cumulative third quarter
Nine months ended
December 31, 2020
349,357(Unit: Million yen)
Nine months ended
December 31, 2021
363,154

Cost of sales

311,640

326,745

Gross profit

37,71736,408

Sales, general, and administrative expenses

23,241

24,049Operating profit

14,476

12,359Interest income

242

212

Dividend income

232

153

Share of profit of entities accounted for using equity method

74

Foreign exchange gains－
110

Subsidy income

235

Net sales

Non-operating profit

Reversal of allowance for doubtful accounts
Other
Total non-operating profit

－

1

－
2

299

266

1,122

708

Non-operating expenses
Interest expenses

251

214

Share of loss of entities accounted for using equity method

17

Foreign exchange losses
Commission paid

－
212

－
367

Other

242

74

Total non-operating expenses

724

693

14,874

12,374

Gains on sales of non-current assets

41

Gains on sales of investment securities

27

1

Other

2

－

Total extraordinary profit

35

3

92

－
1

Ordinary profit

36

Extraordinary profit

Extraordinary losses
Losses on step acquisitions
Losses on sales of non-current assets

6

Impairment loss

61

Losses on retirement of non-current assets

20

－
3

Losses on sales of investment securities

19

－

Other

22

－

Total extraordinary losses

223

5

Profit before income taxes

14,686

12,372

Income taxes - current

5,114

4,072

720

1,410

Total income taxes

5,834

5,483

Net income

8,851

6,889

Income taxes - deferred

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

6

19

(94)

8,831

6,983

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for Third Quarter of Fiscal Year Ending March 31, 2022

Quarterly consolidated statement of comprehensive income
Consolidated cumulative third quarter
Nine months ended
December 31, 2020
8,851

(Unit: Million yen)
Nine months ended
December 31, 2021
6,889

Valuation differences on available-for-sale securities

2,199(1,575)

Foreign currency translation adjustments

(410)

323

Remeasurements of defined benefit plans

1

16

(3)
1,787

0
(1,235)

10,638

5,653

10,735

5,671

(97)

(7)

Net income
Other comprehensive income

Share of other comprehensive income of entities accounted for using equity method
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

7

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for Third Quarter of Fiscal Year Ending March 31, 2022

(3) Notes on quarterly consolidated financial statements(Notes on the going concern assumption)
Not applicable(Notes on marked changes to shareholders' equity)
Not applicable(Change in accounting policy)(Application of Accounting Standard for Revenue Recognition, etc.)
The Accounting Standard for Revenue Recognition (ASBJ Statement No.29, March 31,2020; hereinafter, "AccountingStandard for Revenue Recognition") has been applied from the beginning of the first quarter of the current consolidated
fiscal year. In accordance with the Accounting Standard for Revenue Recognition, when control of a promised goods
and/or service is transferred to the customer, revenue will be recognized for the amount expected to be received in
exchange for the good and/or service. As a result, for transactions for which our role in providing products to customers is
an agent, mainly for revenues related to product sales in Medical Supply business, the Company has changed to a methodof recognizing revenue with the net amount obtained by deducting the amount paid to the supplier of the product from theamount received from the customer although the Company previously recognized the total amount received from
customers as revenue.
When applying the Accounting Standard for Revenue Recognition, the Company comply with the transitional treatment
stipulated in the proviso of article 84 of the Standard. The cumulative impact of retroactively applying the new accounting
policy prior to the beginning of the first quarter of the current fiscal year is added or subtracted to the retained earnings at
the beginning of the first quarter of the current fiscal year and the new accounting policy is applied from the beginningbalance.
As a result, net sales and cost of sales for the third quarter of the current consolidated cumulative period decreased by
3,782 million yen, respectively. However, there is no cumulative impact on net assets at the beginning of the first quarterof the current consolidated fiscal year, so there is no impact on the beginning balance of retained earnings for the firstquarter of the current consolidated fiscal year. For the impact on segment information, please refer to “2. Quarterly
consolidated financial statements and notes thereto (3) Notes on quarterly consolidated financial statements (Segment
information, etc.)”.
Due to the application of Accounting Standard for Revenue Recognition, "Notes and accounts receivable" recorded in"Current assets" in the consolidated balance sheet for the previous consolidated fiscal year will be included in " Notes,
accounts receivable, and contract asset" from the first quarter of the current consolidated fiscal year. In accordance withthe transitional treatment stipulated in article 89-2 of the Accounting Standard for Revenue Recognition, the previous
consolidated fiscal year has not been reclassified using the new recording method.

(Application of accounting standards related to fair value measurement, etc.)
The Accounting Standard for Fair Value Measurement (ASBJ Statement No.30, July 4, 2019; hereinafter, "AccountingStandard for Fair Value Measurement") has been applied from the beginning of the first quarter for the current
consolidated fiscal year. In accordance with transitional treatment stipulated in the provision of paragraph 19 inAccounting Standards for Fair Value Measurement and article 44-2 in Accounting Standard for Financial Instruments(ASBJ Statement No. 10, July 4, 2019), new accounting policy under Accounting Standards for Fair Value Measurement
will be applied in the future. There is no impact on the quarterly consolidated financial statements.

8

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for Third Quarter of Fiscal Year Ending March 31, 2022

(Segment information, etc.)[Segment information]
I Previous consolidated cumulative third quarter (April 1 – December 31, 2020)
1 Net sales and profit (loss) by reportable segments(Unit: Million yen)
Reportable segments
Total Pack
Producebusiness

MedicalSupplybusiness

Lifecarebusiness

Dispensing
Pharmacybusiness

Adjustments*1

Amount recordedon consolidated
financialstatements*2

Total

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

64,056

246,656

18,476

20,167349,357－

349,357

1,928

2,038

180

20,542

24,690(24,690)－

65,985

248,695

18,65740,710374,048(24,690)349,357

Segment profit
6,083
4,677
1,703
2,047
14,511(35)
14,476
Notes:
1 The figure of (35) million yen in adjustments to segment profit includes (60) million yen in cancellation of intersegment
transactions and 34 million yen in companywide costs not allocated among reportable segments. These companywide costs
consist mainly of parent company’s operating expenses and sales, general, and administrative expenses not attributable toindividual reportable segments.
2 Segment profit is adjusted against the operating profit reported on the quarterly consolidated statement of income.

2 Information on assets of each reportable segments
During the third quarter of the current consolidated cumulative period, the Company acquired the shares of STK Co., Ltd.
and it is included in the scope of consolidation. The Company also acquired equity interests of Charm Care Corporation., and
it is included in the scope the equity-method applied.
Due to the above acquisition, assets in “Lifecare business” segment increased by 9,859 million yen from the end of theprevious consolidated fiscal year.

3 Information on impairment loss on non-current assets or goodwill, per reportable segments(Significant impairment loss on non-current assets)
Not applicable(Significant changes in the amount of goodwill)
During the third quarter of the consolidated cumulative period, the Company acquired the shares of Okkar Thiri Co., Ltd. andSnow Everest Co., Ltd., and they are included in the scope of consolidation.
The increase in goodwill in “Total Pack Produce business” segment due to the above event is 3,013 million yen.

(Significant gain on negative goodwill)
Not applicable9SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for Third Quarter of Fiscal Year Ending March 31, 2022

II Previous consolidated cumulative third quarter (April 1 – December 31, 2021)
1

Net sales and profit (loss) by reportable segment(Unit: Million yen)
Reportable segments
Total Pack
Producebusiness

MedicalSupplybusiness

Lifecarebusiness

Dispensing
Pharmacybusiness

Adjustments*1

Amount recordedon consolidated
financialstatements*2

Total

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

55,864

266,757

18,887

21,644363,154－363,154

1,318

967

135

80

2,502

(2,502)－

Subtotal

57,182

267,725

19,023

21,724

365,656(2,502)

363,154

4,049
4,187
1,825
2,443
12,504(145)
12,359Segment profit
Notes:
1 The figure of (145) million yen in adjustments to segment profit includes (54) million yen in cancellation of intersegment
transactions and (87) million yen in companywide costs not allocated among reportable segments. These companywide costs
consist mainly of parent company’s operating expenses and sales, general, and administrative expenses not attributable toindividual reportable segments.
2 Segment profit is adjusted against the operating profit reported on the quarterly consolidated statement of income.

2

Notes on change in reportable segments
From the first quarter of the current consolidated fiscal year, the Company has changed the categorization of the reportablesegments including categorizing the businesses previously included in “Other” into “Total Pack Produce business” etc.
according to the categorization change of the reportable segments. The all figures on the segment information for theprevious consolidated cumulative third quarter are created according to the categorization after the change.
As described in the changes in accounting policy, the Accounting Standard for Revenue Recognition was applied from the
beginning of the first quarter consolidated fiscal year, and the accounting method for revenue recognition was changed. The
calculation method for profit and loss of the business segments is also changed due to the above change. As a result of thischange, sales to outside customers in the “Medical Supply business” for the third quarter of the current consolidated
cumulative period decreased by 3,782 million yen compared to the conventional method. Intersegment sales or transfers of“Dispensing Pharmacy business” for the third quarter of the current consolidated cumulative period also decreased by
23,067 million yen, while it has no effect on the amount recorded in the quarterly consolidated statement of income.

3 Information on impairment loss on non-current assets or goodwill, per reportable segments
During the third quarter of the current consolidated cumulative period, there was no recognition of significant impairment
loss on non-current assets, significant fluctuations in the amount of goodwill, or significant gain on negative goodwill

10