Disclaimer: This document is an English translation of the original document in Japanese and has been prepared solely for reference
purposes. In the event of any discrepancy between this English translation and the original in Japanese, the original shallprevail in all respects.

Consolidated Financial Statements
for Third Quarter of Fiscal Year Ending March 31, 2024 [Japanese GAAP]
February 9, 2024
Name of listed company:

SHIP HEALTHCARE HOLDINGS, INC.
Shares listed on: Tokyo Stock Exchange
Code:
3360
URL
https://www.shiphd.co.jp/en/
Representative:(Title) President(Name) Futoshi Ohashi
Contact:(Title) Executive Director(Name) Hiroshi YokoyamaTel.: +81-6-6369-0130
Scheduled date for filing quarterly report: February 13, 2024
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, 2024
(April 1, 2023 – December 31, 2023)(1) Consolidated operating results (Cumulative)
Net sales(Million yen)

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

Operating profit%(Million yen)%

Q3 FY ending March 2024
453,057
11.3
15,13013.2
Q3 FY ended March 2023
407,120
12.1
13,3708.2
Note: Comprehensive income: Q3 FY ending March 2024: ¥8,820 million ((4.8%))
Q3 FY ended March 2023: ¥9,262 million (63.8%)
Diluted net
Net income per shareincome per share
Q3 FY ending March 2024
Q3 FY ended March 2023

(Yen)

(Yen)

76.57
78.96

－
71.57

(Million yen)%

(Million yen)%

15,788
12,849

22.9
3.8

7,224
7,450

(3.0)
6.7

Note: At the end of the 31st consolidated fiscal year, provisional accounting treatment related to corporate combinations
has been finalized, and the consolidated operating results for the third quarter of the fiscal year ended March 2023
reflect the contents of the finalized accounting treatment.
Note: For the third quarter of fiscal year ending March 2024, diluted net income per share are not provided as there areno outstanding potential shares.
(2) Consolidated financial condition
Total assets

Net assets(Million yen)

Equity capital ratio(Million yen)%

Q3 FY ending March 2024
370,280
135,947
35.9
FY ended March 2023
381,977
131,115
33.5
Reference: Equity: Q3 FY ending March 2024: ¥132,865 million; FY ended March 2023: ¥128,037 million

2. Dividends
End Q1(Yen)––

End Q2
(Yen)
0.00
0.00

Annual dividends
End Q3(Yen)––

FY ended March 2023
FY ending March 2024
FY ending March 2024
(forecast)
Note: Revisions made in most recently announced dividend forecasts: None
Note: Dividend breakdown for the fiscal year ending March 31, 2024 (forecast)Ordinary dividend ¥43.00
Commemorative dividend ¥5.00

Year-end
(Yen)
42.00

Total
(Yen)
42.00

48.00

48.00

3. Forecast of consolidated financial results for the fiscal year ending March 31, 2024
(April 1, 2023 – March 31, 2024)(Percentages represent changes from previous year.)
Profit attributable to Net income per
Net sales
Operating profit
Ordinary profit
owners of parent
share(Million yen)
(Million yen)
(Yen)
% (Million yen)%
% (Million yen)%
Full-year
600,000
4.8
23,50011.1
23,50014.0)
12,5003.6
132.49Notes: 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 stocks)(i) Number of shares issued and outstanding at
Q3 FY ending
the end of the period (including treasury
March 2024
stock)Q3 FY ending(ii) Number of treasury stock at the end of the
March 2024
period(iii) Average number of shares during the period
Q3 FY ending(quarterly cumulative)
March 2024

None
None
None
None
None
None

101,669,400 shares

FY ended March
2023

101,669,400 shares

7,319,175 shares

FY ended March
2023

7,319,175 shares

94,350,225 shares

Q3 FY ended
March 2023

94,350,266 shares* 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 “Information on consolidated financial forecasts and other forward-looking
statements” on page 3 of the [attached materials].

SHIP HEALTHCARE HOLDINGS, INC. (3360): Consolidated Financial Statements
for Third Quarter of Fiscal Year Ending March 31, 2024

 Index of attached materials
1.

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

2.

Quarterly consolidated financial statements and notes thereto ..............................................................

4(1)

Quarterly consolidated balance sheet ....................................................................................................

4(2)

Quarterly consolidated statement of income and 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.) .................................................................................................................

81

SHIP HEALTHCARE HOLDINGS, INC. (3360): Consolidated Financial Statements
for Third Quarter of Fiscal Year Ending March 31, 2024

1. Qualitative information on business results(1) Description of business results
During the current cumulative period of the third quarter, the Japanese economy experienced a gradual normalization of
economic activities as restrictions due to the COVID-19 pandemic were eased. However, uncertainties persisted due tounstable overseas conditions, the depreciation of the yen leading to soaring energy and raw material prices, global
financial tightening, and concerns about the future of the Chinese economy.
In the healthcare industry to which the Group operates, special provisions for hospitals bed keeping fees and medical feesat medical institutions have been revised due to changes in the states of COVID-19 under the Infectious Diseases Control
Law. In prefectures, as the guideline towards the 8th medical program, correspondence for various tasks, which werehighlighted by pandemic of COVID-19, in regional healthcare and the change of population structure has been required.
In this situation, the group has increased its net sales and profit in all reporting segments compared to the same
cumulative period of the previous fiscal year, indicating a solid performance trend. On the other hand, the group’s two
consolidated subsidiary companies in Republic of the Union of Myanmar has been affected by financial sanctions fromthe Europe and the U.S. and the forced convertibility of foreign currency starting from the military coup. Given the further
tightening of financial sanctions, the situation where it has become increasingly difficult about collection or purchasing byforeign currency is progressing, and it is anticipated that such circumstances will continue in the future. Consequently, it
was determined that the anticipated excess profitability would not be achievable as initially expected. Therefore, an
impairment loss of the entire amount equivalent to goodwill, which is 2,635 million yen, was recognized as an
extraordinary loss in the cumulative period of the second quarter of the consolidated fiscal year. In addition, this fiscal
period marks the second phase of our medium-term management plan, "SHIP VISION 2024," and we have continued toadvance the four key initiatives originally outlined: “Further high growth of core business”, “Further expand value”,“Functional organization enhancement strategy”, and “Activities for sustainability”.
For the third quarter of the current consolidated cumulative period, the various factors noted above resulted in net salesof 453,057 million yen (up 11.3% YoY), operating profit of 15,130 million yen (up 13.2% YoY), ordinary profit of 15,788
million yen (up 22.9% YoY), and profit attributable to owners of the parent of 7,224 million yen (down 3.0% YoY).
Additionally, it should be noted that as of the end of the previous consolidated fiscal year, the provisional accounting
treatment related to corporate combinations has been finalized. Therefore, in comparing and analyzing with the
cumulative consolidated period of the previous quarter, the amounts were reflected with the finalized provisional
accounting treatment were used.
Business results by segment are summarized below.
(i) Total Pack Produce businessIn Total Pack Produce business, while project assignments have tended to be concentrated in the fourth quarter of thecurrent period, performance has progressed as planned up to the end of the current third quarter consolidated
cumulative period for this fiscal year. Although there continues to be an impact from prolonged lead times forelectrical components in the manufacturer segment, this situation has eased compared to the last fiscal year.
Additionally, in Osaka heavy ion therapy center, the number of new outpatients and treatment cases increased due tothe expansion of treatment areas covered by national insurance from April 2022. Furthermore, the performance ofKingrun Group, which joined in the Group in July 2022, contributed from the first quarter of the current consolidated
cumulative period.
As a result, this segment recorded net sales of 84,574 million yen (up 8.6% YoY) and segment profit (operating profit)of 5,738 million yen (up 18.2% YoY).
(ii) Medical Supply business
In Medical Supply business, operation of new SPD consignment facilities which entrusted in second half of the last
fiscal year has shifted steadily. Furthermore, while the rising prices of materials and labor costs affected the business,the demand for medical materials recovered due to the increase in the number of surgical cases in our customer’s
hospitals.
As a result, this segment recorded net sales of 316,849 million yen (up 12.3% YoY) and segment profit (operating
profit) of 4,609 million yen (up 5.4% YoY).
(iii) Lifecare business
In Lifecare business, the Group made efforts to thoroughly manage utility expenses to mitigate the impact of soaring
utility costs. Despite conducting rent increase at the beginning of the current fiscal year, the Group maintained
consistently high occupancy rates. Furthermore, in food service businesses, the Group was able to overcome theincrease in food prices by leveraging the contribution from a company that joined the group in the previous period,
resulting in increased revenue and profit.
As a result, this segment recorded net sales of 27,333 million yen (up 11.9% YoY) and segment profit (operating
profit) of 2,060 million yen (up 20.5% YoY).

2

SHIP HEALTHCARE HOLDINGS, INC. (3360): Consolidated Financial Statements
for Third Quarter of Fiscal Year Ending March 31, 2024(iv) Dispensing Pharmacy business
In Dispensing Pharmacy business, the performance shifted steadily through newly opening stores and M&A in small
scale.
As a result, this segment recorded net sales of 24,401 million yen (up 7.6% YoY) and segment profit (operating
profit) of 2,670 million yen (up 15.0% YoY)

(2) Analysis of Financial Position
Assets at the end of the consolidated third quarter stood at 370,280 million yen, down 11,697 million yen from theend of the previous consolidated fiscal year. The primary reasons for this decrease included decreases of 17,988
million yen in notes, accounts receivable, and contract asset, 3,655 million yen in goodwill, despite increases of 4,572
million yen in merchandise and finished goods, 2,363 million yen in investment securities, 2,276 million yen inelectronically recorded monetary claims – operating.
Liabilities stood at 234,332 million yen, down 16,530 million yen from the end of the previous consolidated fiscal
year. The primary reasons for this decrease included decreases of 25,016 million yen in current portion of bonds
payable, 7,819 million yen in notes and accounts payable-trade, despite increase of 14,847 million yen in short-termloans payable.
Net assets stood at 135,947 million yen, up 4,832 million yen from the end of the previous consolidated fiscal year.
The primary reasons for this increase included increases of 7,224 million yen in retained earnings from profit
attributable to owners of parent, 1,293 million yen in valuation differences on available-for-sale securities, despite
decrease of 3,962 million yen in retained earnings due to cash dividends paid.
As a result of all these factors, equity capital ratio at the end of the consolidated third quarter stood at 35.9%. (up2.4% from the end of the previous consolidated fiscal year)(3) Information on consolidated financial forecasts and other forward-looking statements
The consolidated financial forecasts for the fiscal year remain unchanged from the forecasts announced on November
10, 2023.

3

SHIP HEALTHCARE HOLDINGS, INC. (3360): Consolidated Financial Statements
for Third Quarter of Fiscal Year Ending March 31, 2024

2. Quarterly consolidated financial statements and notes thereto(1) Quarterly consolidated balance sheet
Fiscal year ended
March 31, 2023
AssetsCurrent assets
Cash and deposits
Notes, accounts receivable, and contract asset
Electronically recorded monetary claims – operating
Lease investment assets
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant, and equipment
Buildings and structures, net
Land
Real estate for rent, net
Other, net
Total property, plant, and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

4(Unit: Million yen)
Q3 Fiscal year ending March
31, 2024 (Dec. 31, 2023)

80,839131,5395,374
3,102
21,3893,776
1,504
10,817(1,101)
257,241

81,278113,551
7,651
3,002
25,962
5,197
2,097
12,239(1,245)
249,736

23,44618,20910,951
12,521
65,12723,09018,045
10,951
11,61063,69812,3203,828
16,1498,665
3,512
12,17725,424
7,117
12,605(1,689)43,458
124,735
381,977

27,788
6,888
11,698(1,707)44,668120,543
370,280

SHIP HEALTHCARE HOLDINGS, INC. (3360): Consolidated Financial Statements
for Third Quarter of Fiscal Year Ending March 31, 2024

Fiscal year ended
March 31, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term loans payable
Income taxes payable
Provision for bonuses
Current portion of bonds with share acquisition rights
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Net defined benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Accumulated other comprehensive income
Valuation differences on available-for-sale securities
Deferred gains or losses on hedges
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(Unit: Million yen)
Q3 Fiscal year ending March
31, 2024 (Dec 31, 2023)

109,883
28,622
1,815
5,332
2,908
25,01623,441
197,020

102,063
35,37016,662
1,998
1,324
25,441
182,861

41,571
3,383
1,156
7,730
53,842
250,862

38,543
3,465
1,167
8,294
51,471
234,332

15,55323,533
100,158(15,526)
123,718

15,55323,447
103,420(15,526)
126,894

2,978
1
1,305
32
4,319
3,077
131,115
381,977

4,271
2
1,657
39
5,971
3,082
135,947
370,280

SHIP HEALTHCARE HOLDINGS, INC. (3360): Consolidated Financial Statements
for Third Quarter of Fiscal Year Ending March 31, 2024

(2) Quarterly consolidated statement of income and consolidated statement of comprehensive income
Quarterly consolidated statement of income
Consolidated cumulative third quarter

Net sales
Cost of sales
Gross profit
Sales, general, and administrative expenses
Operating profit
Non-operating profit
Interest income
Dividend income
Equity gains of affiliated companies
Other
Total non-operating profit
Non-operating expenses
Interest expenses
Equity losses of affiliated companies
Foreign exchange loss
Other
Total non-operating expenses
Ordinary profit
Extraordinary profit
Gains on sales of non-current assets
Gains on negative goodwill
Subsidy income
Other
Total extraordinary profit
Extraordinary losses
Impairment loss
Losses on retirement of non-current assets
Loses on sales of subsidiaries and affiliates’ stocks
Other
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitLosses attributable to non-controlling interests
Profit attributable to owners of parent

6

Nine months ended
December 31, 2022
407,120
365,10742,01228,642
13,370(Unit: Million yen)
Nine months ended
December 31, 2023
453,057
407,486
45,57130,441
15,130

237
169
361
768

247
206
631
395
1,481

306
7
929
46
1,289
12,849

331
349
142
823
15,788

17
45
5
69

43
3
6
53

25
5
31
12,887
4,758
1,060
5,819
7,068
(381)
7,450

2,635
16
129
2
2,784
13,057
4,886
1,055
5,941
7,115
(108)
7,224

SHIP HEALTHCARE HOLDINGS, INC. (3360): Consolidated Financial Statements
for Third Quarter of Fiscal Year Ending March 31, 2024

Quarterly consolidated statement of comprehensive income
Consolidated cumulative third quarter

7,068(Unit: Million yen)
Nine months ended
December 31, 2023
7,115

1,751
433
(5)
14
2,194
9,262

1,293
418
3
(9)
1,705
8,820

9,687
(424)

8,876
(55)

Nine months ended
December 31, 2022
Net income
Other comprehensive income
Valuation differences on available-for-sale securities
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Share of other comprehensive income of entities accounted for using equity method
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

7

SHIP HEALTHCARE HOLDINGS, INC. (3360): Consolidated Financial Statements
for Third Quarter of Fiscal Year Ending March 31, 2024

(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.

Previous consolidated cumulative third quarter (April 1, 2022 – December 31, 2022)

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

MedicalSupplybusiness

Dispensing
Pharmacybusiness

Lifecarebusiness

Adjustments*1

Amount recordedon consolidated
financialstatements*2

Total

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

77,904282,204

24,331

22,680407,120－

407,120

2,141

1,215

66

80

3,504

(3,504)－80,046

283,419

24,39822,760410,624(3,504)

407,120

4,853
4,372
1,709
2,322
13,257113
13,370
Segment profit
Notes: 1 The figure of 113 million yen in adjustments to segment profit includes (73) million yen in cancellation ofintersegment transactions and 191 million yen in companywide costs not allocated among reportable segments.
These companywide costs consist mainly of parent company’s operating expenses and sales, general, andadministrative expenses not attributable to individual reportable segments.
2 Segment profit is adjusted against the operating profit reported on the quarterly consolidated statement of income.
3 At the end of the previous consolidated fiscal year(April 1, 2022 – December 31, 2022), the provisional accounting
treatment related to corporate combinations has been finalized. Therefore, in comparing and analyzing with the
cumulative consolidated period of the previous quarter, amounts reflecting the finalized provisional accounting
treatment are being used.

2 Notes on changes in reportable segments, etc.
During the third quarter in consolidated cumulative period, the Group acquired shares of Kingrun Co., Ltd. along with its
11 subsidiaries and added it to the scope of consolidation.
As a result of this event, assets in “Total Pack Produce Business” segment increased by 27,123 million yen compared to theend of the previous consolidated fiscal year.

3 Information on impairment loss and goodwill on fixed assets by reportable segments(significant impairment loss on non-current assets)
Not applicable(significant fluctuations in the amount of goodwill)
During the third quarter consolidated cumulative period, we acquired shares of Kingrun Co., Ltd. along with its 11
subsidiaries and added it to the scope of consolidation.
The increase in goodwill in the “Total Pack Produce Business” segment due to the event is 5,147 million yen in the third
quarter of the current consolidated cumulative period. Additionally, the amount of goodwill reflects the finalized content of
the provisional accounting treatment related to corporate combinations.
(significant gain on negative goodwill)
Not applicable8

SHIP HEALTHCARE HOLDINGS, INC. (3360): Consolidated Financial Statements
for Third Quarter of Fiscal Year Ending March 31, 2024

II.

Consolidated cumulative third quarter (April 1, 2023 – December 31, 2023)

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

MedicalSupplybusiness

Dispensing
Pharmacybusiness

Lifecarebusiness

Adjustments*1

Amount recordedon consolidated
financialstatements*2

Total

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

84,574

316,849

27,233

24,401453,057－

453,057

2,131

903

42

77

3,154

(3,154)－86,706

317,752

27,27524,478456,212(3,154)453,057

5,738
4,609
2,060
2,670
15,07851
15,130
Segment profit
Notes: 1 The figure of 51 million yen in adjustments to segment profit includes (83) million yen in cancellation ofintersegment transactions and 136 million yen in companywide costs not allocated among reportable segments.
These companywide costs consist mainly of parent company’s operating expenses and sales, general, andadministrative expenses not attributable to individual reportable segments.
2 Segment profit is adjusted against the operating profit reported on the quarterly consolidated statement of income.

2 Notes on assets in reportable segments, etc.
(significant impairment loss on non-current assets)
In the Total Pack Produce business, considering the progress of the Myanmar operations compared to the initial business planand the outlook for future performance, it has been determined that the originally anticipated excess earning power cannot be
expected. As a result, an impairment loss has been recognized for goodwill.
The amount of the impairment loss recognized for goodwill due to this event is 2,635 million yen for the cumulative periodof the third quarter.
(significant fluctuations in the amount of goodwill)
As mentioned above (significant impairment loss related to on non-current assets), the Company has impaired the goodwill in
the Total Pack Produce business.
(significant gain on negative goodwill)
Not applicable9