Summary of Financial Statements
for Third Quarter of Fiscal Year Ending March 31, 2021 [Japanese GAAP](Consolidated)
February 5, 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 filing quarterly report: February 10, 2021 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, 2021
(April 1 – December 31, 2020)(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)%

Q3 FY ending March 2021
349,357(2.4)
14,476
6.8
Q3 FY ended March 2020
358,001
12.9
13,54929.1
Note: Comprehensive income: Q3 FY ending March 2021: ¥ 10,638 million (8.5 %)Q3 FY ended March 2020: ¥9,807 million (72.6 %)Diluted net income per
Net income per share
share
Q3 FY ending March 2021
Q3 FY ended March 2020

(Yen)

(Yen)

186.91
186.56169.58169.43(Millions yen)%

(Millions yen)%

14,874
14,630

1.7
33.1

8,831
8,884

(0.6)
34.5

(2) Consolidated financial condition
Total assets

Net assets(Millions yen)

Equity capital ratio(Millions yen)%

Q3 FY ending March 2021
318,166
111,300
33.9
FY ended March 2020
308,873
104,68133.0
Reference: Equity: Q3 FY ending March 2021: ¥107,881 millions yen; FY ended March 2020: ¥101,784 millions yen

2. Dividends
End Q1(Yen)

End Q2(Yen)

Annual dividends
End Q3Year-end

Total

(Yen)

(Yen)

(Yen)

FY ended March 2020–
0.00–
FY ending March 2021–
0.00–
FY ending March 2021
(forecast)
Notes: Revisions made in most recently announced dividend forecasts: None

75.00

75.00

77.00

77.00

3. Forecast of consolidated financial results for fiscal year ending March 31, 2021
(April 1, 2020 – March 31, 2021)(Percentages represent changes from previous year.)
Profit attributable to Net income per
Net sales
Operating profit
Ordinary profit
owners of parent
share(Millions yen)
(Yen)
% (Millions yen)
% (Millions yen)
% (Millions yen)%
Full-year
500,000
3.2
21,00011.7
21,0005.4
12,1002.5
256.16
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 and outstanding
Q3 FY endingat the end of the period (including treasury March 2021
stock)(ii) Number of treasury stock at the end of the Q3 FY ending
March 2021
period(iii) Average number of shares during theQ3 FY ending
March 2021
period (quarterly cumulative total)

None
None
None
None
None
None
None

50,834,700 shares

FY ended March
2020

50,834,700 shares

3,659,527 shares

FY ended March
2020

3,420,627 shares

47,253,273 shares

Q3 FY ended
March 2020

47,624,076 shares* This quarterly summary of financial results is not subject to quarterly review by a Certified Public Accountant or an
audit firm.
* Information on appropriate use of financial forecasts and other special notes:• The average number of shares during the period, on which calculations of net income per share in the forecast of
consolidated financial results for fiscal year ending March 31, 2021, are based, reflects the effects of purchase oftreasury stock under a resolution passed by the board of directors in its meeting held on May 10, 2020.
• 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, 2021

 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(Segment information, etc.) ..................................................................................................................... 8

1

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

1. Qualitative information on quarterly results(1) Description of business results
The Japanese economy during Q3 FY ending March 2021, has deteriorated rapidly due to the spread of COVID-19, which
severely restricted economic and social activities, and reduced personal consumption and corporate profits. Although themomentum for recovery has increased once because the economic activities gradually resumed with economic promotion
by the government such as Go To Campaign, the future condition still remain uncertain.
Due to the spread of COVID-19, healthcare industry in which the Group operates has been forced to significantly reduce
outpatient and inpatient revenues due to the avoidance of medical consultations and a decrease in the number ofoperations, and social demands for dealing with the infectious disease are increasing. Though capital investment for new
construction and reconstruction of specialty wards for COVID-19 etc. was implemented in order to respond to thedemand, the situation is still extremely severe due to the shortage of healthcare experts and the continuous response toinfection control.
Under such conditions, manufacturers in Total Pack Produce business performed steadily with an increase in backlog oforders, and the projects progressed almost as planned, centering on small and medium-sized projects, however, demandfor equipment renewal was lower than usual due to the impact of reduced income of medical institutions. In Medical
Supply business, the first automatic warehouse in Japanese industry, “Osaka Solution Center”, which comprehensively
manage the all consumable inventories with RFID, has been completed, and preparations are proceeding smoothly for
full-scale operation in June 2021. Also, Lifecare business maintained a high occupancy rate and continued to perform
favorably, while the Dispensing Pharmacy business also performed steadily by the improvement in management
efficiency. Furthermore, due to the need for infectious disease control, demand for our private brand products such as
made-in-Japan surgical mask "SHIP mask" and low-concentration ozone generator "Airness" series increased, and newsales channels were expanded.
For Q3 FY ending March 2021, the various factors noted above resulted in net sales of 349,357 million yen (down 2.4%
YoY), operating profit of 14,476 million yen (up 6.8% YoY), ordinary profit of 14,874 million yen (up 1.7% YoY), andprofit attributable to owners of the parent of 8,831 million yen (down 0.6% YoY).
Business results by segment are summarized below.
(i) Total Pack Produce businessIn Total Pack Produce business, business performance of manufacturers remained strong, and the small and mediumsized projects also progressed as planned. Also, new initiatives such as the package offer for the temporary fever
outpatient unit and specialty wards for COVID-19 were also successful. Moreover, the performance of the newly
consolidated subsidiary, medical device distributors in Myanmar contributed. However, the business for the medical
device renewal performed weak due to the decline in demand for the renewal by the spread of infectious diseases.
As a result, this segment recorded net sales of 60,332 million yen (down 18.5% YoY) and segment profit (operating
profit) of 5,889 million yen (down 13.3% YoY).
(ii) Medical Supply business
In Medical Supply business, despite the decrease of demand due to the avoidance of medical consultations and theimpact of the public redemption price revision, business performance remained steady by collaboration within thegroup, improvement in management efficiency, and development of infection control products.
As a result, this segment recorded net sales of 244,447 million yen (up 1.3% YoY) and segment profit (operating
profit) of 4,553 million yen (up 28.4% YoY).
(iii) Lifecare business
In Lifecare business, the integrate national wide management was progressed, and high occupancy rate had been
maintained thanks to strict infectious disease control.
As a result, this segment recorded net sales of 18,476 million yen (up 3.4% YoY) and segment profit (operating
profit) of 1,703 million yen (up 28.5% YoY).
(iv) Dispensing Pharmacy business
In Dispensing Pharmacy business, business performance was progressed firmly since the avoidance of visit to
medical institutions was eased compared to the beginning of the fiscal year, and also due to the improvement inmanagement efficiency, although there was some influence due to the public drug price revision.
As a result, this segment recorded net sales of 20,167 million yen (down 0.6% YoY) and segment profit (operating
profit) of 2,047 million yen (up 5.2% YoY)(v) Other
In Other business, business performance progressed firmly as the performance of the integrated building managementcompany newly contributed.
2

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

As a result, this segment recorded net sales of 5,933 million yen (up 32.1% YoY) and segment profit (operating
profit) of 444 million yen (up 99.5% YoY).

(2) Analysis of Financial Position
Assets on December 31, 2020 stood at 318,166 million yen, up 9,293 million yen from the end of the previous
consolidated fiscal year. The primary reasons for this increase included increases of 12,055 million yen in investment
securities and 5,333 million yen in merchandise and finished goods, and 2,345 million yen in notes and accounts
receivable – trade, despite decrease of 10,687 million yen in cash and deposits and 4,983 million yen in securities.
Liabilities stood at 206,866 million yen, up 2,674 million yen from the end of the previous consolidated fiscal year. The
primary reasons for this increase included increase of 2,739 million yen in short-term loans payable and 2,626 million yen
in electronically recorded obligations - operating, despite decreases of 3,433 million yen in long-term loans payable.
Net assets stood at 111,300 million yen, up 6,618 million yen from the end of the previous consolidated fiscal year. The
primary reasons for this increase included increases of 8,831 million yen in retained earnings from profit attributable toowners of parent and 2,199 million yen in valuation differences on available-for-sale securities, despite decrease of 3,556
million yen in retained earnings due to payment of dividends.
Due to these factors, the equity capital ratio on December 31, 2020 stood at 33.9% (up 0.9 percentage points from the endof 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 full fiscal year remain unchanged from the forecasts announced on May 12, 2020.

3

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

2. Quarterly consolidated financial statements and notes thereto(1) Quarterly consolidated balance sheet(Unit: Millions yen)
December 31, 2020

March 31, 2020
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Electronically recorded monetary claims - operating
Lease investment assets
Securities
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
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

478,717
95,623
3,611
3,500
5,101
14,029
1,511
845
7,629
(71)
210,499

68,03097,968
4,536
3,393
118
19,362
2,252
873
10,002(171)
206,366

18,534
16,10011,213
11,16657,014

19,68915,751
10,965
10,631
57,038

8,548
972
9,520

10,052974
11,026

14,535
7,810
11,209(1,716)
31,83898,373308,873

26,590
7,592
11,303(1,752)
43,734
111,799
318,166

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

(Unit: Millions yen)
December 31, 2020

March 31, 2020
Liabilities
Current liabilities
Notes and accounts payable - trade90,12189,824

Electronically recorded obligations - operating

19,59822,224

Short-term loans payable

935

3,674

Income taxes payable

4,400

2,414

Provision for bonuses

2,194

1,024

Other

15,864

19,278

Total current liabilities

133,115

138,441

Bonds with share acquisition rights

25,091

25,072Long-term loans payable

36,98733,554

Net defined benefit liability

2,873

2,972

Asset retirement obligations

838

847

Non-current liabilities

Other

5,284

5,977

Total non-current liabilities

71,07668,424204,191

206,866

Capital stock

15,553

15,553

Capital surplus

23,89523,891Retained earnings

74,841

80,117

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

Total shareholders' equity

99,841

104,034

Valuation differences on available-for-sale securities

2,019

4,219

Deferred gains or losses on hedges

－
(152)

(0)
(446)

Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income

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

5

75

73

1,942

3,846

2,897

3,419

104,681111,300

308,873

318,166

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

(2) Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive
incomeQuarterly consolidated statement of income

Nine months ended
December 31, 2019
358,001(Unit: Millions yen)
Nine months ended
December 31, 2020
349,357

Cost of sales

322,009311,640

Gross profit

35,992

37,717

Sales, general, and administrative expenses

22,44323,241

Operating profit

13,54914,476

Interest income

300

242

Dividend income

236

232

Amortization of negative goodwill

116－

Share of profit of entities accounted for using equity method

33

Foreign exchange gains

26

－
110

Subsidy income－
364

Net sales

Non-operating profit

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

235
1

239

299

1,317

1,122

203

251

Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity method－

17

Commission paid

212

Other

－
32

Total non-operating expenses

235

724

14,63014,874

Gains on sales of non-current assets

194

4

Gains on sales of investment securities

－

27

Other

－

2

Total extraordinary profit

194

35
92

Losses on sales of non-current assets－
4

Impairment loss－

61

Losses on retirement of non-current assets－

20

Losses on sales of investment securities

19

Losses on valuation of investment securities

－
0

Other

1

Ordinary profit

242

Extraordinary profit

Extraordinary losses
Losses on step acquisitions

6

－
22

6

223

Profit before income taxes

14,818

14,686

Income taxes - current

4,946

5,114

Income taxes - deferred

940

720

Total income taxes

5,886

5,834

Profit

8,932

8,851

47

19

8,884

8,831

Total extraordinary losses

Profit attributable to non-controlling interests
Profit attributable to owners of parent
6

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

Quarterly consolidated statement of comprehensive income
Consolidated cumulative third quarter
Nine months ended
December 31, 2019
8,932

(Unit: Millions yen)
Nine months ended
December 31, 2020
8,851

Valuation differences on available-for-sale securities

973

2,199

Foreign currency translation adjustments

(105)

(410)

Net income
Other comprehensive income

Remeasurements of defined benefit plans

7

1

Share of other comprehensive income of entities accounted for using equity method－(3)

Total other comprehensive income
Comprehensive income

875

1,787

9,807

10,6389,790

10,73517(97)(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, 2021

(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

Nine months ended December 31, 2019 (April 1 – December 31, 2019)
Net sales and profit (loss) by reportable segment(Unit: Millions yen)
Reconciliation*2

Amountrecorded inquarterly
consolidated
incomestatement*3

Reportable segment
Total Pack
Producebusiness

MedicalSupplybusiness

Lifecarebusiness

Dispensing
Pharmacybusiness

Other
Subtotal

*1

Total

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

73,988241,359

17,876

20,285353,510

4,491

358,001－

358,001

2,146

801

163

4,320

7,431

246

7,678

(7,678)－76,134242,160

18,03924,606360,941

4,738

365,679(7,678)358,001

Segment profit
6,793
3,546
1,326
1,946
13,612
222
13,834(285)
13,549Notes:
1. The “Other” category includes businesses that are not included in reportable segments, including the veterinary clinic
business, sales of physical and chemical apparatus business, the security business, and integrated building managementbusiness.
2. Reconciliation items for segment profit of ¥(285) million include intersegment elimination of ¥(61) million and corporate
expenses not allocated to the reportable segments of ¥(224) million. Corporate expenses consist primarily of operating
expenses of the Company’s head office and selling, general, and administrative expenses that are not attributable to any
reportable segments.
3. Segment profit is reconciled to the operating profit reported in the quarterly consolidated statement of income.
2

Information on impairment loss on non-current assets and goodwill by each reporting segment
No significant impairment losses on non-current assets, significant changes in amounts of goodwill, or significant gains on
bargain purchases were recognized during the nine months ended third quarter-end.

8

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

II

Nine months ended December 31, 2020 (April 1 – December 31, 2020)

1

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

Amountrecorded inquarterly
consolidated
incomestatement*3

Reportable segment
Total Pack
Producebusiness

MedicalSupplybusiness

Lifecarebusiness

Dispensing
Pharmacybusiness

Other
Subtotal

*1

Total

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

60,332

244,447

18,476

20,167343,424

5,933

349,357－

349,357

1,789

2,136

180

20,542

24,649324

24,973(24,973)－

62,122

246,583

18,65740,710368,073

6,257

374,331(24,973)349,357

Segment profit
5,889
4,553
1,703
2,047
14,194444
14,638(162)
14,476
Notes:
1. The “Other” category includes businesses that are not included in reportable segments, including the veterinary clinic
business, sales of physical and chemical apparatus business, the security business, and integrated building managementbusiness.
2. Reconciliation items for segment profit of ¥(162) million include intersegment elimination of ¥(59) million and corporate
expenses not allocated to the reportable segments of ¥(92) million. Corporate expenses consist primarily of operating
expenses of the Company’s head office and selling, general, and administrative expenses that are not attributable to any
reportable segments.
3. Segment profit is reconciled to the operating profit reported in the quarterly consolidated statement of income.
2

Information on assets by each reporting segment
During Q3 FY ending March 2021, 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 theequity-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 and goodwill by each reporting segment(Significant impairment losses on non-current assets)
Not applicable.
(Significant changes in the amount of goodwill)
During Q3 FY ending March 2021, the Company acquired the shares of Okkar Thiri Co., Ltd. and Snow 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 applicable.

9