November 10, 2017
News Release
Address: 20-8 Kasuga 3-chome, Suita, Osaka, Japan
Company name: SHIP HEALTHCARE HOLDINGS, INC.
Representative: Kunihisa Furukawa, Chairman and CEO(Shares listed on First Section, Tokyo Stock Exchange, code: 3360)
Contact: Hiroshi Yokoyama, Managing Director
Tel.: +81-6-6369-0130
Formulation of SHIP VISION 2020, a new mid-range management plan

To mark the 25th anniversary of our founding and the 10th anniversary of our listing on the First
Section of the Tokyo Stock Exchange, the SHIP Healthcare Group has formulated its SHIP VISION
2020 mid-range management plan for the 2018–2020 fiscal years.
The plan sets goals of 500 billion yen in net sales and 21 billion yen in operating profits for its final
fiscal year, FY2020. Both figures would mark record highs. The plan also calls for strengthening
returns to shareholders during the period covered by securing a stable dividend payout ratio of at least
30% while implementing dynamic shareholder-return policies, including the purchase of treasury
stock, based on comprehensive consideration of future business developments, levels of internal
reserves, and trends in stock prices.
DetailsOverview of the SHIP VISION 2020 mid-range management plan
1. Goals
To achieve continuing growth as a corporate group and net sales of 1 trillion yen, all 50 consolidated
Group member companies will work in partnership under the SHIP Philosophy. In addition tosustaining high growth within each business, we will strive to strengthen management capabilities by
sharing our management foundations and steadily implementing kaizen (improvement) activities while
establishing new business domains to remain a step ahead of the changing times, thereby becoming ahealthcare group that remains strong in the face of change and with a keen eye on the future.
2. Performance targets
FY 2020: Net sales of 500 billion yen and operating income of 21 billion yen (both record highs)
3. Main points of the plan
(1) Achieving sustained growth through further growth in our core businesses and measures thatstrengthen the management structure
Current trends continue to make the operating environment for the healthcare industry increasingly
harsh: a regional healthcare vision that seeks to respond to low birthrates and the aging Japanesesociety; hospital mergers, closures, and consolidations; and constant demand to restrain medical
expenses. Given these conditions, our plan focuses on achieving sustainable high growth throughgrowth strategies for each of our core businesses and stronger management capabilities achieved
through the IT infrastructure, consolidation of facilities, and kaizen (improvement) activities.

1(2) Building the fifth business segment: Healthcare Services
Establishing the Healthcare Services Business in both domestic and overseas markets; expanding
business opportunities through our existing business facilities(3) Strategic M&A activities
Targeting further growth in sales and profits through proactive strategic mergers and acquisitions(M&A) activities intended to broaden the base and increase the earnings potential of our corebusinesses(4) Increasing returns to shareholders
Returning up to roughly 16 billion yen to shareholders over the FY2018–2020 three-year period(Plans call for paying dividends of roughly 10 billion yen over the three years and purchasing up to 2
billion yen in treasury stock each year.)
4. Specific strategies in each business(1) Total Pack Produce BusinessIn the trading company function, building up expertise in integration and reorganization; strengthening
abilities to handle large-scale and long-term projects; expanding and intensifying Group synergies; anddeveloping overseas projects
In the manufacturing function, advancing with the shift from simply producing products to creating
new value and activities through manufacturing; strategically developing overseas businesses; andimproving management capabilities by integrating the IT system infrastructure and updating company
facilities(2) Medical Supplies BusinessIn addition to proactively and strategically focusing on M&A activities to expand our business basenationwide, integrating product master files and IT systems in the Kansai area to strengthen
purchasing power, setting in motion plans to build a core logistics center, and moving forward to
propose and develop new products(3) Lifecare BusinessIn the area of long-term care facility operations, further enhancing the integrated management offacilities nationwide and maintaining occupancy rates of 98% or better by promoting community
engagement, offering an increasingly diverse range of occupancy plans, and securing human resources
through enhanced training programs and acceptance of foreign trainees
In the food service business, commercializing the new food service model for nursing care homes(4) Dispensing Pharmacy BusinessIn addition to expanding business facilities through strategic M&A activities to achieve regional
dominance, enhancing family pharmacies and strengthening the development of structures to support
comprehensive community pharmacy systems(5) Healthcare Service BusinessOf domestic businesses, bringing the Heavy Ion Therapy Center into the black on an annual basis by
FY2020 and achieving stable operation of the Akishima International Justice Center as a PFI project
Of overseas businesses, bringing the hospital business in Bangladesh into the black on an annual basis
by FY2020 and realizing stable management of the business in Myanmar
Beyond this, expanding business opportunities for the Total Pack Produce Business by drawing on ourexpertise and interpersonal networks based on our currently operating facilities2