Summary of Financial Statements
for Fiscal Year Ended March 31, 2021 [Japanese GAAP](Consolidated)
May 11, 2021
Name of listed company:

SHIP HEALTHCARE HOLDINGS, INC.
Shares listed on: Tokyo Stock Exchange
Code:
3360
URL
https://www.shiphd.co.jp/
Representative:(Title) Chairman and CEO(Name) Kunihisa Furukawa
Contact:(Title) Executive Director(Name) Hiroshi YokoyamaTel.: +81-6-6369-0130
Scheduled date for regular general meeting of shareholders: June 29, 2021
Scheduled start date for dividend payments: June 30, 2021
Scheduled date for filing securities report: June 29, 2021
Supplementary briefing materials on results: Y
Briefing on results: Y (for institutional investors and analysts)(All figures are rounded down to the nearest millions yen.)

1. Consolidated financial results for the fiscal year ended March 31, 2021
(April 1, 2020 – March 31, 2021)(1) Consolidated operating results
Net sales(Percentages represent year-on-year changes.)
Profit attributable toOrdinary profit
owners of parent

Operating profit(Millions yen)

% (Millions yen)

% (Millions yen)

FY ended March 2021
497,156
2.6
21,800
16.0
FY ended March 2020
484,395
9.1
18,794
4.7
Note: Comprehensive income: FY ended March 2021: ¥ 14,442 million (35.8 %)FY ended March 2020: ¥10,638 million ((8.8) %)Net income per
Diluted net
Return on
share
income per shareequity
(Yen)

(Yen)

21,761
19,931% (Millions yen)

%

9.2
7.6

4.0
5.0

12,28011,803Return on
assets%Operating margin%%

FY ended March 2021
129.99117.9511.5
6.8
4.4
FY ended March 2020
124.02112.6212.0
6.6
3.9
Reference: Share of profit (loss) of entities accounted for using equity method: FY ended March 31, 2021: ¥(40) million;
FY ended March 31, 2020: ¥38 million
Note: The company executed a two-for-one common stock split, effective on April 1, 2021. “Net income per share” and “Diluted net
income per share” are calculated as if the relevant stock split was executed at the beginning of the previous consolidated fiscal
year ended March 31, 2020.

(2) Consolidated financial condition
Total assets

Net assets(Millions yen)

Equity capital ratio(Millions yen)

Net assets per share
%

(Yen)

FY ended March 2021
334,498
115,10333.3
1,181.14
FY ended March 2020
308,873
104,68133.0
1,073.35
Reference: Equity: FY ended March 2021: ¥111,440 millions yen; FY ended March 2020: ¥101,784 millions yen
Note: The company executed a two-for-one common stock split, effective on April 1, 2021. “Net assets per share” are calculated as if
the relevant stock split was executed at the beginning of the previous consolidated fiscal year ended March 31, 2020.

(3)

Consolidated cash flows
Cash and cash
equivalents at end of
periodNet cash from operating Net cash from investing Net cash from financing
activities
activities
activities
FY ended March 2021
FY ended March 2020

(Millions yen)

(Millions yen)

(Millions yen)

(Millions yen)

19,77224,010(19,289)(4,264)(10,465)(8,416)

72,95082,8102. Dividends
Annual dividends
End Q2End Q3Year-end

End Q1
FY ended March 2020
FY ended March 2021
FY ending March 2022
(projected)

Total

Total annual
dividends

(Yen)

(Yen)

(Yen)

(Yen)

(Yen) (Millions yen)

–
–

0.00
0.00

–
–

75.00
80.00

75.00
80.00

–

0.00

–

41.00

41.00

3,556
3,774

Payout ratio(consolidated)

Dividends to net
assets(consolidated)

%

%

30.2
30.8

3.6
3.5

30.9

Note: The company executed a two-for-one common stock split, effective on April 1, 2021. Annual dividends for the year ended
March 31, 2020 and 2021 are actual amounts paid prior to the relevant stock split. Projected annual dividends for the year
ending March 31, 2022 are the amount after the relevant stock split.

3. Forecast of consolidated financial results for the fiscal year ending March 31, 2022
(April 1, 2021 – March 31, 2022)
Net sales

Operating profit(Percentages represent changes from previous year.)
Profit attributable to Net income per
Ordinary profit
owners of parent
share(Millions yen)
(Yen)
% (Millions yen)%

(Millions yen)
% (Millions yen)%
Cumulative through
225,000
1.9
6,500 (17.0)
6,500 (21.4)
3,800 (19.3)
40.28
second quarter
Full-year
53,0006.6
22,5003.2
22,5003.4
12,5001.8
132.48
Note: The company executed a two-for-one common stock split, effective on April 1, 2021. “Net income per share” in the forecast of
consolidated financial results for the fiscal year ending March 31, 2022 is calculated based on the number of shares outstanding
after the relevant stock split.

Notes(1) Changes made in significant subsidiaries during consolidated cumulative quarter under review:(2) 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:(3) Number of shares issued and outstanding (common stocks)(i) Number of shares issued and outstanding
FY ended Marchat the end of the period (including treasury 2021
stock)(ii) Number of treasury stock at the end of the FY ended March
2021
period(iii) Average number of shares during the
FY ended March
2021
period

None
None
Yes
None
None

101,669,400 shares

FY ended March
2020

101,669,400 shares

7,319,054 shares

FY ended March
2020

6,841,254 shares

94,470,499 shares

FY ended March
2020

95,175,182 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, 2020.

Reference: Overview of non-consolidated financial results
1. Non-consolidated financial results for fiscal year ended March 31, 2021 (April 1, 2020–March 31, 2021)(1) Non-consolidated operating results(Percentages represent year-on-year changes.)
Net sales
FY ended March 2021
FY ended March 2020

Operating profit

Ordinary profit

Net income(Millions yen)%

(Millions yen)%

(Millions yen)%

(Millions yen)

%

7,657
7,191

6.5
2.1

6,377
5,764

10.6
(2.0)

6,214
5,785

7.4
(1.2)

6,137
5,642

8.8
(1.8)

Net income per share

Diluted net income per
share

(Yen)

(Yen)

FY ended March 2021
64.97
58.87
FY ended March 2020
59.28
53.75
Note: The company executed a two-for-one common stock split, effective on April 1, 2021. “Net income per share” and “Diluted net
income per share” are calculated as if the relevant stock split was executed at the beginning of the previous consolidated fiscal
year ended March 31, 2020.
(2) Non-consolidated financial condition
Total assets(Millions yen)

Net assets(Millions yen)

Equity capital ratio

Net assets per share
%

(Yen)

FY ended March 2021
85,527
48,39556.6
512.93
FY ended March 2020
80,38845,63856.8
481.28Reference: Equity: FY ended March 31, 2021: ¥ 48,395 million; FY ended March 31, 2020: ¥45,638 million
Note: The company executed a two-for-one common stock split, effective on April 1, 2021. “Net assets per share” are calculated as if
the relevant stock split was executed at the beginning of the previous consolidated fiscal year ended March 31, 2020.

* This 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 at thetime this document was prepared and certain assumptions considered reasonable. Actual results may differ significantly fromforecasts due to various factors. For assumptions underlying forecasts of financial results, notes on use of forecasts of financial
results, and other related information, please refer to “Future outlook” on page 4 of the Annexed Materials.
• The Company is a holding company and the bulk of its revenue consists of dividends received from subsidiaries and revenues fromtheir operating costs. Detailed information on non-consolidated financial forecasts is omitted since information is not important forinvestment information and business indicators.

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for Fiscal Year Ended March 31, 2021

 Index of attached materials

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

2.

(1)

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

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

Analysis of cash flows ........................................................................................................................... 3(4)

Future outlook ......................................................................................................................................... 4

Basic approach in selecting accounting standards ............................................................................................ 4

3. Consolidated financial statements and notes thereto ........................................................................................ 5(1)

Consolidated balance sheet ...................................................................................................................... 5(2)

Consolidated statement of income and consolidated statement of comprehensive income ..................... 7(3)

Consolidated statements of changes in shareholders' equity .................................................................. 10(4)Consolidated statement of cash flows .................................................................................................... 12(5)

Notes on consolidated financial statements ............................................................................................ 14(Notes on the going concern assumption) ............................................................................................... 14(Changes in accounting policy) .............................................................................................................. 14(Segment information, etc.) .................................................................................................................... 14(Per-share information) ........................................................................................................................... 19(Important subsequent information)........................................................................................................ 20

1

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for Fiscal Year Ended March 31, 2021

1. Qualitative information on quarterly results(1) Description of business results
In the Japanese economy during FY ended March 2021, economic and social activities have been severely restricted as thenumber of infected people remains high due to the expansion of the COVID-19 and its variants. Signs of businessrecovery remain uncertain due to the decrease in personal consumption and corporate profits.
Healthcare industry in which the Group operates, especially at the beginning of the fiscal year, the number of medical
institutions whose profits declined due to the avoidance of medical consultations and a decrease in the number ofoperations increased. In order to meet the social demands for the treatment against COVID-19, they are required to makenew capital investment such as securing personnel and preparation for the thorough measures against the infection evenunder the harsh business condition from above reasons, as a result, the environment in the industry continues to be in adifficult situation.
Under such economic conditions, the Group’s performance generally recorded as planned thanks to the firm sales ofinfectious disease control products such as low-concentration ozone generators “Airness” and original brand mask madein Japan, “SHIP mask”, in addition to the increase of orders for the projects related to infectious disease control in Total
Pack Produce business. Also, the occupancy rate remained high by taking thorough measures against the infectious
disease in Lifecare business which operates pay nursing homes.
For FY ended March 2021, the various factors noted above resulted in net sales of 497,156 million yen (up 2.6% YoY),
operating profit of 21,800 million yen (up 16.0% YoY), ordinary profit of 21,761 million yen (up 9.2% YoY), and profit
attributable to owners of the parent of 12,280 million yen (up 4.0% YoY).
Business results by segment are summarized below.
(i) Total Pack Produce businessIn Total Pack Produce business, new initiatives such as the development and sale of infectious disease control
products , temporary fever outpatients buildings, and simple negative-pressure ventilators have been successful
although the conventional business performed poorly because there were more small-size projects than usual. Therewas some impact due to the deterioration of public security in Federal Republic of Myanmar, however, the businessperformed generally as planned.
As a result, this segment recorded net sales of 99,959 million yen (down 0.7% YoY) and segment profit (operating
profit) of 9,634 million yen (up 0.1% YoY).
(ii) Medical Supply business
In Medical Supply business, although the business was affected by the impact from redemption price revision and the
spread of COVID-19 at the beginning of the fiscal year which caused the avoidance of medical consultations anddecrease in demand for medical materials, business performance remained steady by the efforts to strengthen sales ofinfectious disease control products, collaborate within the group, and improve in management efficiency. Also, thefirst automated logistic warehouse in the industry “Osaka Solution Center” has been completed.
As a result, this segment recorded net sales of 337,244 million yen (up 3.6% YoY) and segment profit (operating
profit) of 6,715 million yen (up 33.4% YoY).
(iii) Lifecare business
In Lifecare business, occupancy rate maintained high along with the progress of management efficiency throughnationwide integrated management and strict infectious disease control.
As a result, this segment recorded net sales of 24,571 million yen (up 2.7% YoY) and segment profit (operating
profit) of 2,237 million yen (up 26.4% YoY).
(iv) Dispensing Pharmacy business
In Dispensing Pharmacy business, despite the impact of the drug price revision, business performance was firm due
to improvements in management efficiency and the accumulation of small-size M&A.
As a result, this segment recorded net sales of 27,070 million yen (up 0.1% YoY) and segment profit (operating
profit) of 2,884 million yen (up 8.4% YoY)(v) Other
In Other business, business performance of the veterinary hospital, security support company, and comprehensive
building management company progressed generally as planned.
As a result, this segment recorded net sales of 8,309 million yen (up 17.7% YoY) and segment profit (operating
profit) of 591 million yen (up 31.5% YoY).

2

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for Fiscal Year Ended March 31, 2021

(2) Analysis of Financial Position(i) Current assets
The balance of current assets at the end of this consolidated fiscal year stood at 221,890 million yen (vs. a balance of
210,499 million yen at the end of the previous consolidated fiscal year), an increase of 11,390 million yen since theend of the previous consolidated fiscal year.
Major reasons included increases of 18,097 million yen in notes and accounts receivable – trade and 2,109 million
yen in merchandise and finished goods, despite decrease of 4,998 million yen in securities and 4,810 million yen in
cash and deposits.
(ii) Non-current assets
The balance of non-current assets at the end of this consolidated fiscal year stood at 112,607 million yen (vs. abalance of 98,373 million yen at the end of the previous consolidated fiscal year), an increase of 14,234 million yen
since the end of the previous consolidated fiscal year.
Major reasons included increases of 11,590 million yen in investment securities, 1,056 million yen in goodwill, and938 million yen in guarantee deposits, despite decreases of 1,043 million yen in construction in progress.
(iii) Current liabilities
The balance of current liabilities at the end of this consolidated fiscal year stood at 151,942 million yen (vs. a balanceof 133,115 million yen at the end of the previous consolidated fiscal year), an increase of 18,827 million yen since theend of the previous consolidated fiscal year.
Major reasons included increases of 12,087 million yen in notes and accounts payable – trade, 1,883 million yen inelectronically recorded obligations – operating, and 1,767 million yen in income taxes payable.
(iv) Non-current liabilities
The balance of non-current liabilities at the end of this consolidated fiscal year stood at 67,451 million yen (vs. abalance of 71,076 million yen at the end of the previous consolidated fiscal year), a decrease of 3,624 million yen
since the end of the previous consolidated fiscal year.
Major reasons included increase of 732 million yen in deferred tax liabilities, despite decrease of 4,266 million yen in
long-term loans payable.
(v) Net assets
The balance of net assets at the end of this consolidated fiscal year stood at 115,103 million yen (vs. a balance of
104,681 million yen at the end of the previous consolidated fiscal year), an increase of 10,422 million yen since theend of the previous consolidated fiscal year.
Major reasons included an increase 12,280 million yen in retained earnings from profit attributable to owners ofparent and 1,904 million yen in valuation differences on available-for-sale securities, despite the acquisition oftreasury stock of 1,078 million yen, and decreases of 3,556 million yen in retained earnings due to payment ofdividends.

(3) Analysis of cash flows
The balance of cash and cash equivalents at the end of this consolidated fiscal year stood at 72,950 million yen, decrease
9,859 million yen from the balance of 82,810 million yen at the end of the previous consolidated fiscal year.
(i) Cash flow from operating activities
Cash flow provided from operating activities was 19,772 million yen (down 4,238 million yen compared to theprevious consolidated fiscal year). Major contributing factors included the recording of 21,235 million yen in profit
before income taxes, and increase of 11,598 million yen in notes and accounts payable - trade, and recording of 3,170
in depreciation and amortization, despite increase of 12,344 million yen in notes and accounts receivables – trade,and payment of 7,304 million yen in income taxes.
(ii) Cash flow from investing activities
Cash flow used in investing activities was 19,289 million yen (up 15,025 million yen compared to the previous
consolidated fiscal year). Major contributing factors included expenditures of 9,797 million yen on purchase of sharesof subsidiaries and associates, 4,632 million yen on purchase of property, plant, and equipment, and 4,122 million yen
on purchase of shares of subsidiaries resulting in change in scope of consolidation.

3

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for Fiscal Year Ended March 31, 2021(iii) Cash flow from financing activities
Cash flow used in financing activities was 10,465 million yen (up 2,048 million yen compared to the previous
consolidated fiscal year). Major contributing factors included expenditures of 4,555 million yen on repayment oflong-term loans payable and 3,556 million yen on dividends paid, decrease of 2,542 million yen in short-term loans
payable, despite proceeds of 1,586 million yen from long-term loans payable.
Reference: Trends in cash flow indices
FY ended
March 2017
Equity capital ratio (%)

FY ended
March 2018

34.7

FY ended
March 201935.0

Mark-to-market equity
56.9
66.5
capital ratio (%)
Years of debt redemption
3.1
2.3(years)Interest coverage ratio
53.3
80.6
(times)* Equity capital ratio = equity capital/total assets
Mark-to-market equity capital ratio = total market capitalization/total assets
Years of debt redemption = interest-bearing debt/operating cash flows
Interest coverage ratio = operating cash flows/interest paid

FY ended
March 2020

FY ended
March 2021

31.9

33.0

33.3

72.3

67.9

87.7

6.9

2.9

3.4

40.9

89.4

61.1

Notes:
1. All indices are calculated from consolidated-basis financial data.
2. Total market capitalization is calculated by multiplying the closing stock price at the end of the fiscal year by total numberof shares issued and outstanding (after subtracting treasury stock) as of the end of the fiscal year.
3. Calculations of operating cash flows are based on cash flows from operating activities on the Consolidated Cash Flow
Statement. Interest-bearing debt consists of all debt on the Consolidated Balance Sheet for which interest is paid. The
amount of interest paid is based on interest paid as shown on the Consolidated Cash Flow Statement.

(4) Future outlook
As the baby boom generation ages and low birth rates continue, projections indicate Japan will continue to see restraints
on remuneration for medical and nursing care costs, and reductions in their price. In addition, since the enactment of the
Act for Securing Comprehensive Medical and Long-term Care in the Community, progress is being made to develop
comprehensive community care systems through continuing reforms in the structure of providing medical care, withcompletion envisioned for 2025.
Given these conditions and drawing on advanced capabilities in providing comprehensive and optimal solutions inmedical, healthcare, welfare, nursing care, and services, the Group will seek to contribute to society by meeting a wide
range of needs based on the SHIP philosophy and Group mission to “Creating environments for medical professionals”.
The business performance projected for the next fiscal year (FY ending March 2022) is summarized below.
<Projected consolidated results>
FY ending March 2022 (projected)
Profit margin

YoY change(Unit: Millions yen, %)FY ended March 2021 (actual)
Profit margin

Net sales

530,000–

6.6

497,156–

Operating profit

22,5004.2

3.2

21,800

4.4

Ordinary profit

22,5004.2

3.4

21,761

4.4

12,280

2.5

Profit attributable to owners
12,5002.4
1.8
of patent
The projected amount of (year-end) dividends per share in FY ending March 2022 is 41 yen.

2. Basic approach in selecting accounting standards
To facilitate comparisons from period to period and between entities, the Group for the time being will continue to prepare
its consolidated financial statements based on J-GAAP.
The Group will duly address the application of International Financial Reporting Standards (IFRS) after taking into accountvarious circumstances both in Japan and abroad.
4

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for Fiscal Year Ended March 31, 2021

3. Consolidated financial statements and notes thereto(1) Consolidated balance sheet(Unit: Millions yen)
Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2020
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Electronically recorded monetary claims - operating
Lease investment assets
Merchandise and finished goods
Work in process
Raw materials and supplies
Short-term loans receivable
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant, and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Land
Real estate for rent
Accumulated depreciation
Real estate for rent, net
Construction in progress
Other
Accumulated depreciation
Other, net
Total property, plant, and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Net defined benefit asset
Deferred tax assets
Claims provable in bankruptcy, claims provablein rehabilitation and other
Guarantee deposits
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

578,717
95,6233,611
3,500
14,029
1,511
845
1,790
10,941(71)
210,499

73,907
113,720
4,080
3,349
16,139
1,893
691
2,406
7,356
(1,654)
221,890

32,569(14,035)
18,534
6,515(2,108)
4,406
16,10014,703(3,489)
11,213
3,673
11,511(8,424)
3,086
57,01434,378(14,917)
19,4618,039(2,704)
5,335
15,947
14,599(3,691)
10,9072,629
12,863(9,203)
3,659
57,941

8,548
972
9,520

9,604
976
10,581

14,535
7,810
1,131
3,435

26,125
7,655
936
3,443

68

65

5,571
1,002
(1,716)
31,83898,373308,873

6,509
1,088
(1,739)44,085
112,607334,498SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for Fiscal Year Ended March 31, 2021

(Unit: Millions yen)
Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2020
Liabilities
Current liabilities
Notes and accounts payable - trade90,121

102,209

Electronically recorded obligations - operating

19,59821,481935

1,248

Current portion of long-term loans payable

4,555

5,926

Income taxes payable

4,400

6,168

Provision for bonuses

2,194

2,508

Short-term loans payable

Other

11,30812,400Total current liabilities

133,115

151,942

Bonds with share acquisition rights

25,091

25,066Long-term loans payable

36,98732,721

Net defined benefit liability

2,873

2,902

919

1,652

Non-current liabilities

Deferred tax liabilities
Asset retirement obligations
Other

838

849

4,365

4,260

71,07667,451

204,191

219,394

Capital stock

15,553

15,553

Capital surplus

23,89523,891

Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

Retained earnings

74,841

83,565

Treasury stock(14,447)(15,526)

Total shareholders' equity

99,841

107,483

Valuation differences on available-for-sale securities

2,019

3,923

Deferred gains or losses on hedges
Foreign currency translation adjustments

－
(152)

68

Remeasurements of defined benefit plans

75

(35)

1,942

3,957

Accumulated other comprehensive income

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

6

0

2,897

3,663

104,681

115,103308,873

334,498SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for Fiscal Year Ended March 31, 2021

(2) Consolidated statement of income and consolidated statement of comprehensive income
Consolidated statement of income

Fiscal year ended
March 31, 2020
484,395(Unit: Millions yen)
Fiscal year ended
March 31, 2021
497,156

Cost of sales

434,768

442,670

Gross profit

49,62754,486

Directors’ compensation

1,418

1,507

Salaries and allowances

10,231

10,968Bonuses

1,355

1,445

Net sales

Sales, general, and administrative expenses

Retirement benefit expenses

448

431

Provision for bonus

963

1,147

Other

16,415

17,185

Total sales, general, and administrative expenses

30,832

32,685

18,79421,800Interest income

391

313

Dividend income

288

281

Amortization of negative goodwill

116－

Equity gains of affiliated companies

38－

Reversal of allowance for doubtful accounts

380－

Foreign exchange profit－

119

Subsidy income

－
287

298

1,502

1,430

Operating profit
Non-operating profit

Other
Total non-operating profit

416

Non-operating expenses
Interest expenses

268

325

Equity losses of affiliated companies－

40

Foreign exchange loss

27－

Provision for doubtful accounts－

631

Commission paid

6

219

Other

63

251

365
19,931

21,761

Total non-operating expenses
Ordinary profit

7

1,468

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for Fiscal Year Ended March 31, 2021

Extraordinary profit
Gains on sales of non-current assets

193

5

Gains on sales of investment securities

－

27

Other
Total extraordinary profit

0

2

194

35

－

92

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

4

6Losses on retirement of non-current assets

14

148

Losses on valuation of investment securities

78－

Impairment loss

152

271

Other

6

42

255

561

Profit before income taxes

19,87021,235

Income taxes - current

7,962

8,975

Total extraordinary losses

Income taxes - deferred

79

(102)

Total income taxes

8,041

8,873

Profit11,82812,362

Profit attributable to non-controlling interests
Profit attributable to owners of parent

8

25

82

11,803

12,280SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for Fiscal Year Ended March 31, 2021

Consolidated statement of comprehensive income

Net income

Fiscal year ended
March 31, 202011,828(Unit: Millions yen)
Fiscal year ended
March 31, 2021
12,362Other comprehensive income
Valuation differences on available-for-sale securities(1,059)1,904

Foreign currency translation adjustments

(179)

285

Remeasurements of defined benefit plans

49

(107)

Share of other comprehensive income of entities accounted for using equity method－(2)

Total other comprehensive income
Comprehensive income(1,190)2,079

10,63814,442

10,676

14,295(38)

146(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

9SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for Fiscal Year Ended March 31, 2021

(3) Consolidated statement of changes in shareholders' equity
Previous consolidated fiscal year (April 1, 2019–March 31, 2020)(Unit: Millions yen)
Shareholders’ equity
Capital stock
Balance at beginning of current
periodCapital surplus

15,553Retained earnings

23,921

Treasury stock

66,372(13,447)

Total shareholders’equity92,399Changes of items during period
Dividends of surplus(3,334)(3,334)

Profit attributable toowners of parent

11,803

11,803Purchase of treasury stock(1,000)(1,000)Change of scope of
consolidation－

Capital increases by
consolidated subsidiaries

(26)

(26)

Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current
period

－

(26)

8,469

(1,000)7,442

15,55323,89574,841(14,447)

99,841

Accumulated other comprehensive income

Balance at beginning of current
periodValuation difference
Differed gains or
on available-for-salelosses on hedges
securities

Foreign currencytranslation
adjustments

Remeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
income

－

(84)

26

3,021

3,079

Noncontrollinginterests

2,314

Total net assets

97,734

Changes of items during period
Dividends of surplus(3,334)

Profit attributable toowners of parent

11,803Purchase of treasury stock(1,000)Change of scope of
consolidation－

Capital increases by
consolidated subsidiaries(26)

Net changes of items otherthan shareholders’ equity(1,059)

－

(68)

49

(1,078)

582

(495)

Total changes of items during
period

(1,059)

－

(68)

49

(1,078)

582

6,946

Balance at end of current
period

2,019

－

(152)

75

1,942

2,897

104,68110

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for Fiscal Year Ended March 31, 2021

This consolidated fiscal year (April 1, 2020–March 31, 2021)(Unit: Millions yen)
Shareholders’ equity
Capital stock
Balance at beginning of current
periodCapital surplus

15,553Retained earnings

23,895

Treasury stock

74,841(14,447)

Total shareholders’equity99,841

Changes of items during period
Dividends of surplus(3,556)(3,556)

Profit attributable toowners of parent

12,28012,280Purchase of treasury stock(1,078)Change of scope of
consolidation(1,078)(4)(4)

Capital increases by
consolidated subsidiaries－

Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current
period

－

(4)

8,724

(1,078)

7,641

15,55323,891

83,565(15,526)

107,483

Accumulated other comprehensive income

Balance at beginning of current
periodValuation difference
Differed gains or
on available-for-salelosses on hedges
securities

Foreign currencytranslation
adjustments

Remeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
income

－

(152)

75

1,942

2,019

Noncontrollinginterests

2,897

Total net assets

104,681

Changes of items during period
Dividends of surplus(3,556)

Profit attributable toowners of parent

12,280Purchase of treasury stock(1,078)Change of scope of
consolidation(4)

Capital increases by
consolidated subsidiaries－

Net changes of items otherthan shareholders’ equity

1,904

0

220

(110)

2,014

765

2,780

Total changes of items during
period

1,904

0

220

(110)

2,014

765

10,422

Balance at end of current
period

3,923

0

68

(35)

3,957

3,663

115,10311

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for Fiscal Year Ended March 31, 2021

(4) Consolidated statement of cash flows(Unit: Millions yen)
Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2020
Cash flows from operating activities
Income before income taxes

19,87021,235

Depreciation and amortization

3,135

3,170

152

271

Amortization of goodwill

1,718

1,957

Amortization of negative goodwill
Share of loss (profit) of entities accounted for using equity method[( ) represents profit]
Increase (decrease) in provision for bonuses[( ) represents decrease]
Increase (decrease) in allowance for doubtful accounts[( ) represents decrease]
Increase (decrease) in lease investment assets[( ) represents increase]
Increase (decrease) in net defined benefit liability[( ) represents decrease]
Loss (gain) on sales of property, plant and equipment[( ) represents profit]
Loss on retirement of property, plant and equipment

(116)

－

(38)

40

153

312

(558)

1,498

300

151

73

(36)

(189)

1

Impairment loss

Loss on retirement of intangible assets
Loss (gain) on sale of investment securities[( ) represents profit]
Loss (gain) on valuation of investment securities[( ) represents profit]
Interest and dividend income
Interest expenses
Decrease (increase) in notes and accounts receivable – trade[( ) represents increase]
Decrease (increase) in inventories[( ) represents increase]
Increase (decrease) in notes and accounts payable – trade[( ) represents decrease]
Other
SubtotalInterest and dividend income received

10

21

3

127

－

(7)

78

－

(680)

(595)

268

325

2,768

(12,344)18(1,679)3,092

11,5981,246

710

31,30926,757

674

642

(268)

(323)

Income taxes paid

(7,705)(7,304)

Cash flows from operating activities

24,01019,772

Interest expenses paid

12

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for Fiscal Year Ended March 31, 2021

(Unit: Millions yen)
Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2020
Cash flows from investing activities
Payments into time deposits

(219)

(218)

Proceeds from withdrawal of time deposits

172

167

Purchase of property, plant, and equipment(3,544)(4,632)

Proceeds from sales of property, plant, and equipment

479

499

Purchase of intangible assets

(268)

(378)

Payments of short-term loans receivable

(620)

(849)

Collection of short-term loans receivable

240

241

Payments of long-term loans receivable

(11)

(143)

Collection of long-term loans receivable

1,763

266

(1,375)(408)

Purchase of investment securities
Proceeds from sales and redemption of investment securities－

140

Purchase of shares of subsidiaries and associates
Purchase of shares of subsidiaries resulting in change inscope of consolidation
Proceeds from purchase of shares of subsidiaries resulting
in change in scope of consolidation
Other

－

(9,797)(1,003)(4,122)

117－

Cash flows from investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable[( ) represents decrease]
Proceeds from long-term loans payable

6

(54)

(4,264)(19,289)(495)(2,542)

1,871

1,586

Repayments of long-term loans payable(5,871)(4,555)Purchase of treasury stock(1,000)(1,078)Cash dividends paid

(3,334)(3,556)

Dividends paid to non-controlling shareholders

(90)

(69)

Proceeds from share issuance to non-controlling shareholders

731

Repayments of lease obligations

(227)

－
(248)

－

0

(8,416)(10,465)

Other
Cash flows from financing activities
Effect of exchange rate change on cash and cash equivalents
Increase (decrease) in cash and cash equivalents[( ) represents decrease]
Cash and cash equivalents at the beginning of the period

(13)

123

11,316(9,859)71,49482,810Cash and cash equivalents at the end of the period

82,81072,95013

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for Fiscal Year Ended March 31, 2021

(5) Notes on consolidated financial statements(Notes on the going concern assumption)
Not applicable(Changes in accounting policies)(Change in conversion method of income and expenses of overseas subsidiaries, etc.)
Revenues and expenses of overseas subsidiaries, etc. were previously converted into yen at the spot exchange rate on the
consolidated closing date. From the current consolidated fiscal year, we have changed to the method of converting to yen
according to the average market price during the period.
As the importance of income and expenses of overseas subsidiaries has increased, this change was made in order tomitigate the impact of temporary fluctuations in exchange rates on period profits and losses and to more appropriatelyreflect the profits and losses of overseas subsidiaries, etc. that occur throughout the accounting period in the consolidated
financial statements.
Since the impact of this change is minor, it is not applied retroactively.
(Segment information, etc.)[Segment information]
1

Overview of reporting segments
The Company’s reporting segments are Company components for which separate financial information is available andsubject to periodic review by the Board of Directors in determining the allocation of management resources and evaluating
business performance.
The Company classifies its business divisions by service. The Company formulates comprehensive strategies reflecting thenature of the activities of each business division and subsidiary and undertakes business activities based on these strategies.
Accordingly, the Company organizes its segments based on its business divisions. Its four reporting segments are the Total
Pack Produce business, the Medical Supply business, the Life Care business, and the Dispensing Pharmacy business.
The Total Pack Produce segment engages in sales of medical devices and medical equipment based on bulk orders; consulting
on topics including medicine, healthcare, welfare, and nursing care facilities; and leasing of real estate to medical facilities
and other tenants. The Medical Supply segment engages in sales of medical examination and treatment materials and special
treatment materials. The Life Care segment operates homes for senior citizens, group homes, and other facilities andnutritional services. The Dispensing Pharmacy segment operates dispensing pharmacies, among other business activities.

2

Methods for calculating net sales, profit (loss), assets, and other amounts by reporting segment
The accounting methods for reporting segments are same as those outlined under “Significant Matters that Serve as the Basisfor Preparation of Consolidated Financial Statements.”
Reporting segment profit figures are based on operating profit. Intersegment revenues and transfers are based on market
prices.

14

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for Fiscal Year Ended March 31, 2021

3

Net sales, profit (loss), assets, and other amounts by reporting segment
Previous consolidated fiscal year (April 1, 2019–March 31, 2020)(Unit: Millions yen)
Adjustments*2

Amountrecorded on
consolidated
financialstatements*3

Reporting segment
Total Pack
Producebusiness

MedicalSupplybusiness

Life Carebusiness

Dispensing
Pharmacybusiness

Subtotal

Other*1

Total

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

100,688

325,664

23,92927,050477,332

7,062

484,395－

484,395

2,662

1,101

210

8,403

12,378328

12,707(12,707)－103,350

326,766

24,13935,454

489,7117,390

497,102(12,707)484,395

Segment profit

9,620

5,035

1,770

2,661

19,087449

19,537(742)

18,794

Segment assets

97,121

128,558

24,272

20,558

270,511

3,940

274,452

34,420308,873

1,584

473

641

268

2,968

57

3,025

110

3,135

106

626

401

517

1,653

65

1,718

－

1,718

116

－

－

－

116

－

116

－

116

－

152

－

－

152

－

152

－

152

Subtotal

Other items
Depreciation
Amortization of
goodwill
Amortization ofnegative goodwill
Impairment loss

Investment inentities accounted
339
339
339
339
－
－
－
－
－
for using equity
methodIncrease inproperty, plant
3,008
1,217
313
342
4,882
45
4,928
236
5,165
and equipment,
and intangible
fixed assets
Notes:
1. The “Other” category includes businesses not included in reporting business segments, such as the veterinary hospitalbusiness, sales of physical and chemical apparatus, security business, and comprehensive building management business.
2. The amounts of the various adjustments are described below.
(1) The figure of (742) million yen in adjustments to segment profit includes (85) million yen for the cancellation ofintersegment transactions and (659) million yen for companywide costs not allocated to an individual reporting
segment. These companywide costs consist mainly of parent company operating expenses and sales, general, andadministrative expenses not attributable to individual reporting segments.
(2) The figure of 34,420 million yen in adjustments to segment assets includes (13,152) million yen for cancellation ofintersegment transactions, and 47,690 million yen for companywide assets not allocated to an individual reporting
segment. These companywide assets consist mainly of assets related to administrative sections not attributable toindividual reporting segments.
(3) The figure of 236 million yen in adjustments to increase in property, plant and equipment, and intangible fixed assets
consists mainly of capital investment related to administrative sections not attributable to individual reporting
segments.
3. Segment profit is adjusted against the operating profit reported on the consolidated statement of income.

15

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for Fiscal Year Ended March 31, 2021

Consolidated fiscal year under review (April 1, 2020–March 31, 2021)(Unit: Millions yen)
Adjustments*2

Amountrecorded on
consolidated
financialstatements*3

Reporting segment
Total Pack
Producebusiness

MedicalSupplybusiness

Life Carebusiness

Dispensing
Pharmacybusiness

Subtotal

Other*1

Total

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

99,959337,244

24,571

27,070488,8478,309

497,156－

497,156

3,445

3,218

228

27,41034,303473

34,777(34,777)－

103,405

340,463

24,80054,481

523,150

8,782

531,933(34,777)

497,156

Segment profit

9,634

6,715

2,237

2,884

21,471591

22,063(263)

21,800

Segment assets

115,715

139,498

34,44925,753

315,416

4,223

319,640

14,857334,498

Subtotal

Other items
Depreciation

1,557

564

622

283

3,028

65

3,093

76

3,170

Amortization of
goodwill

413

532

401

538

1,886

70

1,957

－

1,957

Impairment loss

－

209

33

27

271

－

271

－

271

Investment inentities accounted
393
－
9,621
－
10,015－
10,015－
10,015for using equity
methodIncrease inproperty, plant
1,186
2,953
295
375
4,811
29
4,841
110
4,951
and equipment,
and intangible
fixed assets
Notes:
1. The “Other” category includes businesses not included in reporting business segments, such as the veterinary hospitalbusiness, sales of physical and chemical apparatus, security business, and comprehensive building management business.
2. The amounts of the various adjustments are described below.
(1) The figure of (263) million yen in adjustments to segment profit includes (77) million yen for the cancellation ofintersegment transactions and (175) million yen for companywide costs not allocated to an individual reporting
segment. These companywide costs consist mainly of parent company operating expenses and sales, general, andadministrative expenses not attributable to individual reporting segments.
(2) The figure of 14,857 million yen in adjustments to segment assets includes (19,340) million yen for cancellation ofintersegment transactions and 34,300 million yen for companywide assets not allocated to an individual reporting
segment. These companywide assets consist mainly of assets related to administrative sections not attributable toindividual reporting segments.
(3) The figure of 110 million yen in adjustments to increase in property, plant and equipment, and intangible fixed assets
consists mainly of capital investment related to administrative sections not attributable to individual reporting
segments.
3. Segment profit is adjusted against the operating profit reported on the consolidated statement of income.

16

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for Fiscal Year Ended March 31, 2021

[Related information]
Previous consolidated fiscal year (April 1, 2019–March 31, 2020)
1

Product and service-specific information
This information is reported under segment information and is therefore omitted here.

2

Region-specific information(1) Net sales
This information is omitted because sales to external customers in Japan account for more than 90% of net sales on theConsolidated Statement of Income.
(2) Property, plant and equipment
This information is omitted because property, plant and equipment located in Japan account for more than 90% of
property, plant and equipment on the Consolidated Balance Sheet.

3

Information concerning key individual customers
Not applicable because sales to no single external customer account for 10% or more of net sales on the Consolidated
Statement of Income.
This consolidated fiscal year (April 1, 2020–March 31, 2021)

1

Product and service-specific information
This information is reported under segment information and is therefore omitted here.

2

Region-specific information(1) Net sales
This information is omitted because sales to external customers in Japan account for more than 90% of net sales on theConsolidated Statement of Income.
(2) Property, plant and equipment
This information is omitted because property, plant and equipment located in Japan account for more than 90% of
property, plant and equipment on the Consolidated Balance Sheet.

3

Information concerning key individual customers
Not applicable because sales to no single external customer account for 10% or more of net sales on the Consolidated
Statement of Income.

[Information concerning impairment losses on fixed assets per reporting segment]
Previous consolidated fiscal year (April 1, 2019–March 31, 2020)
This information is reported under segment information and is therefore omitted here.
This consolidated fiscal year (April 1, 2020–March 31, 2021)
This information is reported under segment information and is therefore omitted here.

17

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for Fiscal Year Ended March 31, 2021

[Information concerning amounts of amortization of goodwill and remaining unamortized balances, per reporting segment]
Previous consolidated fiscal year (April 1, 2019–March 31, 2020)(Unit: Millions yen)
Reportable segment
Total Pack
Producebusiness(Goodwill)Ending balance

933

MedicalSupplybusiness
2,686Life Carebusiness

Dispensing
Pharmacybusiness

2,628

1,821

Companywide/cancellation

Other
Subtotal

8,069

478

－

Total

8,548

(Negative goodwill)
–
–
–
–
–
–
–
–
Ending balance
Note: Amounts of amortization of goodwill and amortization of negative goodwill are omitted because similar information isreported under segment information.
This consolidated fiscal year (April 1, 2020–March 31, 2021)(Unit: Millions yen)
Reportable segment
Total Pack
Producebusiness

MedicalSupplybusiness

Life Carebusiness

Dispensing
Pharmacybusiness

Other
SubtotalCompanywide/cancellation

Total(Goodwill)
3,589
1,943
2,226
1,436
9,196
408
－
9,604
Ending balance
Note: Amounts of amortization of goodwill is omitted because similar information is reported under segment information.
[Information on gains on bargain purchases per reporting segment]
Previous consolidated fiscal year (April 1, 2019–March 31, 2020)
No important gains on bargain purchases occurred.
This consolidated fiscal year (April 1, 2020–March 31, 2021)
No important gains on bargain purchases occurred.

18

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for Fiscal Year Ended March 31, 2021

(Per-share information)
Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021
(Yen)

(Yen)

Net assets per share1073.35

1,181.14

Net income per share

124.02129.99Diluted net income per share

112.62117.95

Notes:
1. The company executed a two-for-one common stock split, effective on April 1, 2021. “Net assets per share”, “Net income
per share”, and “Diluted net income per share” are calculated as if the relevant stock split was executed at the beginning of
the previous consolidated fiscal year ended March 31, 2020.
2. “Net income per share” and “Diluted net income per share” are calculated based on the following information:
Account

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Net income per share
Profit attributable to owners of parent(millions yen)

11,803

12,280－－11,803

12,28095,175,182

94,470,499

Adjustment for profit attributable to owners ofparent (millions yen)

(16)

(16)

[Interest income (after tax equivalentdeduction) (millions yen)][(17)][(17)]

Increase in number of common stock(shares)

9,482,129

9,503,636[(9,482,129)][(9,503,636)]

Amount not attributable to owners ofcommon stock (millions yen)
Profit attributable to owners of parent related tocommon stock (millions yen)
Average shares of common stock during theperiod (shares)
Diluted net income per share[Bonds with share acquisition rights included inabove (shares)]
Description of potentially dilutive commonshares not included in the computation ofdiluted earnings per share because of their antidilutive effect––

3. Net assets per share were calculated based on the following information:
Account

Fiscal year ended
March 31, 2020

Total net assets (millions yen)

Fiscal year ended
March 31, 2021
104,681

115,103

2,897

3,663

[Non-controlling interests included in above(millions yen)][(2,897)][(3,663)]

Ending balance of net assets related to common
stock (millions yen)

101,784

111,440

Ending number of shares of common stock usedin calculation of net assets per share (shares)

94,828,146

94,350,346

Amount subtracted from total net assets(millions yen)

19

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for Fiscal Year Ended March 31, 2021

(Important subsequent information)(Stock split)
Based on the resolution of the Board of Directors held on March 5, 2021, the Company split one common share into twoshares on April 1, 2021.
(1) Purpose of stock split
The stock split aims to increase the liquidity of the shares by reducing the investment unit price for Ship Healthcare’s
share, to create an environment that makes it easier to invest, and further expand the investor base.

(2) Split method
Fixing on March 31, 2021 as the record date, Ship Healthcare split its ordinary shares owned by the shareholders
recorded in the shareholder registry at the rate of two per one.

(3) Number of shares to increase due to stock split①

Total number of shares issued before stock split

50,834,700 shares②

Number of shares to increase due to stock split

50,834,700 shares③

Total number of shares issued after stock split

101,669,400 shares④

Total number of issuable shares after stock split

128,000,000 shares(4) Effective date
April 1, 2021

(5) The impact on the information per share
The impact on the information per share is described in the relevant section.

20