Summary of Financial Statements
for First Quarter of Fiscal Year Ending March 31, 2018 [Japanese GAAP](Consolidated)
August 8, 2017
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, 2017 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, 2018 (April 1 –June 30, 2017)(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 2018
89,724
0.3
2,532
45.5
2,769
Q1 FY ended March 201789,440
37.2
1,740
-13.8
1,878
Note: Comprehensive income: Q1 FY ending March 2018: 2,069 million yen (162.7%)
Q1 FY ended March 2017: 787 million yen (−37.1%)
Basic earnings per
Diluted earnings per
share
share

47.5
-19.7

1,519
858

77.0
-25.5

Q1 FY ending March 2018
Q1 FY ended March 2017%

(Millions yen)

%

(Yen)

(Yen)

30.04
17.07

–
–

(2) Consolidated financial condition
Total assets

Net assets(Millions yen)

Equity capital ratio(Millions yen)%

Q1 FY ending March 2018244,683
92,61936.9
FY ended March 2017
263,540
93,632
34.7
Reference: Equity: Q1 FY ending March 2018: 90,392 million yen; FY ended March 2017: 91,384 million yen

2. Dividends
End Q1(Yen)

End Q2

Annual dividends
End Q3Year-end

(Yen)

(Yen)

(Yen)

Total
(Yen)

FY ended March 2017
–
0.00
–
60.00
60.00
FY ending March 2018–
FY ending March 2018
0.00
–
61.00
61.00
(forecast)
Notes: Revisions made in most recently announced dividend forecasts: None
Breakdown of year-end dividends paid in FY ended March 2017: ordinary dividends: 56.00 yen; commemorative
dividends: 4.00 yen

3. Forecast of consolidated financial results for fiscal year ending March 31, 2018 (April 1, 2017 – March
31, 2018)(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)
(Yen)
% (Millions yen)
% (Millions yen)
% (Millions yen)%
Cumulative through
179,000
-4.6
4,100
-27.6
4,200
-28.4
2,200
-30.3
43.48
second quarter
Full-year
425,000
4.0
16,9005.3
17,1003.8
10,0006.3
197.63
Note: 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 20182017
(including treasury shares)
FY ended March(ii) Number of treasury shares at the end of Q1 FY ending
235,568 shares
March 20182017
the period(iii) Average number of shares during theQ1 FY ending
Q1 FY ended
50,599,132 shares
March 2018
March 2017
period (quarterly cumulative total)

None
None
None
None
None
None
None

50,834,700 shares

235,568 shares

50,300,632 shares* This quarterly summary of financial results is not subject to quarterly review.
* 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 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 “Information on
consolidated financial forecasts and other forward-looking statements” on page 3 of the attached materials.

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for First Quarter of Fiscal Year Ending March 31, 2018

 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

1

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for First Quarter of Fiscal Year Ending March 31, 2018

1. Qualitative information on quarterly results(1) Description of business results
During this consolidated cumulative first quarter, the Japanese economy continued to trend toward gentle recovery.
Corporate earnings and employment conditions improved, backed by the monetary policies of the Japanese government
and the Bank of Japan. Nevertheless, due to political developments and rising geopolitical tensions in the Middle East andAsia, overseas prospects remained unclear.
In the healthcare industry in which the Group operates, there is growing need for investment and reforms based on a
medium- to long-term perspective in light of plans for the future of medical institutions under community healthcare plans,
the impending simultaneous revision of medical service and long-term care fees planned for next year, and other factors.
Amid such economic conditions, performance in the Total Pack Produce business proved slow, largely because major
projects in this business were weighted toward the second half of the fiscal year. However, thanks to steady businessperformance in the Life Care business and Dispensing Pharmacy business, the Group was able to strengthen both revenue
and income.
During this consolidated cumulative first quarter, the various factors noted above resulted in net sales of 89,724 million
yen (up 0.3% YoY), operating profit of 2,532 million yen (up 45.5% YoY), ordinary profit of 2,769 million yen (up 47.5%
YoY), and profit attributable to owners of the parent of 1,519 million yen (up 77.0% YoY).
Business results by segment are summarized below.
(i) Total Pack Produce businessIn the Total Pack Produce business, because hospital completion projects were weighted toward the second half of the
fiscal year overall, performance related to major projects was slow during the first quarter. In contrast, sales from the
manufacture of rehabilitation equipment were strong.
As a result, this segment recorded segment net sales of 13,394 million yen (down 11.7% YoY) and segment profit(operating profit) of 1,016 million yen (up 6.0% YoY).
(ii) Medical Supply business
Earnings grew in the Medical Supply business, driven by various factors, including the elimination of the effects ofadvisory costs associated with the business integration with Konishi Kyowa Holding Corporation, recorded in the last
fiscal year, and steady progress on SPD facilities for which awarded contracts concentrated in the previous year.
As a result, this segment recorded segment net sales of 63,335 million yen (up 0.8% YoY) and segment profit(operating profit) of 684 million yen (up 134.0% YoY).
(iii) Life Care business
Various factors boosted earnings in the Life Care business, including success in achieving occupancy growth targets
and improvements at loss-generating facilities.
As a result, this segment recorded segment net sales of 5,515 million yen (up 6.3% YoY) and segment profit(operating profit) of 181 million yen (up 40.7% YoY).
(iv) Dispensing Pharmacy business
Efforts such as mergers and acquisitions (M&A) and new-store openings bore fruit in the Dispensing Pharmacy
business, resulting in positive business performance.
As a result, this segment recorded segment net sales of 6,283 million yen (up 7.6% YoY) and segment profit(operating profit) of 615 million yen (up 45.1% YoY).
(v) Other businesses
Results for other sectors such as veterinary clinics and sales of physical and chemical apparatus were largely asplanned. Results from the security company added to the Group last year also contributed to business performancefrom the start of this period.
As a result, this segment recorded segment net sales of 1,195 million yen (up 194.1% YoY) and segment profit(operating profit) of 76 million yen (up 201.5% YoY).

2

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for First Quarter of Fiscal Year Ending March 31, 2018

(2) Analysis of Financial Position
Assets at the end of the consolidated first quarter under review stood at 244,683 million yen, down 18,856 million yen
from the end of the previous consolidated fiscal year. The primary reasons for this decline included an increase of 3,264
million yen in the construction in progress account, 1,617 million yen in electronically recorded monetary claims –operating, and 1,333 million yen in merchandise and finished goods; notes and accounts receivable – trade decreased by
27,793 million yen.
Liabilities stood at 152,064 million yen, down 17,843 million yen from the end of the previous consolidated fiscal year.
The primary reasons for this decline included an increase of 2,384 million yen in electronically recorded obligations –operating and 1,919 million yen in long-term loans payable; notes and accounts payable - trade and income taxes payable
decreased by 21,858 million yen and 2,984 million yen, respectively.
Net assets were 92,619 million yen, down 1,012 million yen from the end of the previous consolidated fiscal year. Primaryreasons for this decrease included an increase of 1,519 million yen in retained earnings from profit attributable to ownersof parent and 538 million yen in valuation difference on available-for-sale securities; payment of dividends led to adecrease of 3,035 million yen in retained earnings.
As a result of the above factors, the equity capital ratio at the end of the consolidated first quarter under review stood at
36.9% (up 2.2 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 12, 2017.

3

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for First Quarter of Fiscal Year Ending March 31, 2018

2. Quarterly consolidated financial statements and notes thereto(1) Quarterly consolidated balance sheet(Unit: Millions yen)
Consolidated first quarter
under review(June 30, 2017)

Previous consolidated
fiscal year
(March 31, 2017)
AssetsCurrent assets
Cash and deposits

49,444

48,803

Notes and accounts receivable - trade95,65767,863

Electronically recorded monetary claims - operating

1,920

3,538

Lease investment assets

4,057

4,013

Merchandise and finished goods

11,66913,003Work in process

1,328

1,971

840

959

9,590

10,959-78-79

174,430

151,033

Buildings and structures, net

14,972

14,901Land

15,222

15,416

Construction in progress

5,716

8,980

Real estate for rent, net

14,186

14,104

Other, net

3,385

3,347

Total property, plant, and equipment

53,48356,752

Goodwill

10,912

11,516

Other

1,296

1,237

Total intangible assets

12,20812,753Long-term loans receivable

10,172

10,127

Other

15,793

16,575

Allowance for doubtful accounts-2,563-2,568

Total investments and other assets

23,402

24,13589,09393,641

Share issuance cost

16

8

Total deferred assets

16

8

263,540

244,683

Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant, and equipment

Intangible assets

Investments and other assets

Total non-current assets
Deferred assets

Total assets

4SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for First Quarter of Fiscal Year Ending March 31, 2018

(Unit: Millions yen)
Consolidated first quarter
under review(June 30, 2017)

Previous consolidated
fiscal year
(March 31, 2017)
Liabilities
Current liabilities
Notes and accounts payable - trade86,30764,448

Electronically recorded obligations - operating

16,192

18,577

Short-term loans payable

2,020

1,320

Income taxes payable

4,120

1,136

Provision for bonuses

1,905

2,602

Other

15,831

18,081

Total current liabilities

126,377

106,165

Long-term loans payable

36,14638,066

Net defined benefit liability

2,548

2,618

Non-current liabilities

Asset retirement obligations
Other
Total non-current liabilities

362

367

4,472

4,846

43,53045,898

169,908

152,064

Capital stock

15,553

15,553

Capital surplus

23,71623,716

Retained earnings

51,05949,543

Treasury shares

-448

-448

89,881

88,365

1,459

1,998

Foreign currency translation adjustment

47

30

Remeasurements of defined benefit plans-3-1

Total liabilities
Net assets
Shareholders' equity

Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities

1,503

2,027

Non-controlling interests

Total accumulated other comprehensive income

2,247

2,227

Total net assets

93,632

92,619263,540

244,683

Total liabilities and net assets

5

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for First Quarter of Fiscal Year Ending March 31, 2018

(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, 2016)
89,440(Unit: Millions yen)
Consolidated cumulative firstquarter under review(April 1 – June 30, 2017)89,724

Cost of sales

80,246

79,959Gross profit

9,194

9,764

Sales, general, and administrative expenses

7,453

7,232

Operating profit

1,740

2,532

Interest income

81

82

Dividend income

69

82

Amortization of negative goodwill

60

58

Share of profit of entities accounted for using equity method

12

14

Reversal of allowance for doubtful accounts

25

7

Other

132

94

Total non-operating income

381

338

Interest expenses

81

61

Foreign exchange losses

90

12

Other

72

27

Total non-operating expenses

244

101

1,878

2,769

Gain on sales of non-current assets

01Gain on sales of investment securities

88

–

Other

0

0

Total extraordinary income

88

1

–

3

Net sales

Non-operating income

Non-operating expenses

Ordinary profit
Extraordinary income

Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets

73

Loss on valuation of investment securities

28

11

Other

8

4

Total extraordinary losses

44

22

Profit before income taxes

1,921

2,748

Income taxes - current

1,296

1,174

Income taxes - deferred

-269

24

Total income taxes

1,026

1,198

Profit895

1,550

Profit attributable to noncontrolling interests

36

30

Profit attributable to owners of parent

858

1,519

6

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for First Quarter of Fiscal Year Ending March 31, 2018

Quarterly consolidated statement of comprehensive income
Consolidated cumulative first quarter
Previous consolidated
cumulative first quarter(April 1 – June 30, 2016)
895(Unit: Millions yen)
Consolidated cumulative firstquarter under review(April 1 – June 30, 2017)
1,550

Valuation difference on available-for-sale securities

-49

538

Foreign currency translation adjustments

-59

-20

Remeasurements of defined benefit plans

11ProfitOther comprehensive income

-107

519

787

2,069

Comprehensive income attributable to owners of parent

750

2,043

Comprehensive income attributable to noncontrolling interests

36

25

Total other comprehensive income
Comprehensive income(Breakdown)

7

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for First Quarter of Fiscal Year Ending March 31, 2018

(3) Notes on quarterly consolidated financial statements(Notes on the going concern assumption)
Not applicable(Notes on marked changes to shareholders' equity)
Not applicable(Segment information, etc.)[Segment information]
I
1

Previous consolidated cumulative first quarter (April 1 – June 30, 2016)
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

15,172

62,834

5,187

5,838

89,034406

89,440–89,440

705

611

3

458

1,778

5

1,784

-1,784–

15,87863,446

5,190

6,297

90,812412

91,224-1,78489,440

958
292
129
423
1,804
25
1,829
1,740
-88
Segment profit
Notes:
1. The “Other” category includes businesses not included in reportable business segments, such as the veterinary clinic
business and sales of physical and chemical apparatus.
2. The figure of −88 million yen in adjustments to segment profit includes −7 million yen in cancellation of intersegment
transactions and −82 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 assets of individual reportable segments
During the consolidated cumulative first quarter under review, Konishi Kyowa Holding Corporation was acquired and added
to the scope of consolidation.
As a result, assets in the Medical Supply business segment increased by 42,607 million yen from the end of the previous
consolidated fiscal year.

3

Information on impairment losses on fixed assets or goodwill(Important impairment losses on fixed assets)
Not applicable(Important changes in amounts of goodwill)
During the consolidated cumulative first quarter under review, Konishi Kyowa Holding Corporation was acquired and added
to the scope of consolidation.
As a result, goodwill in the Medical Supply business segment increased by 1,066 million yen during the consolidated
cumulative first quarter under review.
(Important gains on bargain purchases)
Not applicable8

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for First Quarter of Fiscal Year Ending March 31, 2018

II
1

Consolidated cumulative first quarter under review (April 1 – June 30, 2017)

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

13,394

63,335

5,515

6,283

88,528

1,195

89,724–89,724

371

285

45

604

1,307

20

1,328

-1,328–13,76563,621

5,560

6,888

89,835

1,216

91,052-1,32889,724

1,016
684
181
615
2,497
76
2,573
2,532
-41
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 −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 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.

9