Summary of Financial Statements
for First Quarter of Fiscal Year Ending March 31, 2021 [Japanese GAAP](Consolidated)
August 7, 2020
Name of listed company:

SHIP HEALTHCARE HOLDINGS, INC.
Shares listed on: Tokyo Stock Exchange
Code:
3360
URL
https://www.shiphd.co.jp/
Representative:
Kunihisa Furukawa, Chairman and CEO
Contact:
Hiroshi Yokoyama, Executive Director
Tel.: +81-6-6369-0130
Scheduled date for filing quarterly report:
August 12, 2020
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 fiscal year ending March 31, 2021 (April 1 – June 30,
2020)(1) Consolidated operating results (cumulative)
Net sales(Millions yen)

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

Operating profit%(Millions yen)%

Q1 FY ending March 2021
105,455
(3.3)
2,887
(4.7)
Q1 FY ended March 2020
109,005
10.6
3,030
10.2
Note: Comprehensive income: Q1 FY ending March 2021: ¥3,343 million (94.4%)
Q1 FY ended March 2020: ¥1,719 million ((17.3)%)
Basic earnings per
Diluted earnings per
share
share
Q1 FY ending March 2021
Q1 FY ended March 2020

(Yen)

(Yen)

34.70
38.96

31.45
35.36

(Millions yen)%

(Millions yen)

%

3,064
3,242

(5.5)
8.7

1,643
1,855

(11.4)
4.7(2) Consolidated financial condition
Total assets

Net assets(Millions yen)

Equity capital ratio(Millions yen)%

Q1 FY ending March 2021
298,628
104,280
33.7
FY ended March 2020
308,873
104,68133.0
Reference: Equity: Q1 FY ending March 2021: ¥100,753 million; FY ended March 2020: ¥101,784 million

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–
FY ending March 2021
0.00–
(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 for full-year figures and year-on-year changes for quarterly figures.)
Profit attributable to Basic earnings
Net sales
Operating profit
Ordinary profit
owners of parent
per share(Millions yen)
(Yen)
% (Millions yen)
% (Millions yen)
% (Millions yen)%
Cumulative through
240,000(0.9)
6,900(31.6)
6,900(37.3)
4,000(40.2)
84.55
second quarter
Full-year
500,000
3.2
21,00011.7
21,0005.4
12,1002.5
255.96
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 at
Q1 FY ending
the end of the period (including treasury
March 2021
shares)(ii) Number of treasury shares at the end of the Q1 FY ending
March 2021
period(iii) Average number of shares during theQ1 FY ending
March 2021
period (quarterly cumulative total)

None
None
None
None
None
None

50,834,700 shares

FY ended March
2020

50,834,700 shares

3,600,927 shares

FY ended March
2020

3,420,627 shares

47,361,298 shares

Q1 FY ended
March 2020

47,630,157 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 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 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 otherforward-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, 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 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) ............................................................................................................................. 8

1

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

1. Qualitative information on quarterly results(1) Description of business results
During the first quarter of the current consolidated cumulative period, business confidence in Japanese economy
deteriorated rapidly due to the expansion of COVID-19, which significantly limited economic and social activities, andreduced personal consumption and corporate profits. As for the global economy, the outlook remains uncertain due to therapid expansion of COVID-19 and the intensifying conflict between the United States and China.
Within the healthcare industry in which the Group operates, it is at the forefront of the field against COVID-19, and while
medical staff are doing their utmost work day and night regardless of the risk of the infectious disease, the Group has alsoendeavored to secure necessary items such as medical equipment and medical materials, and provided maximum support.
On the other hand, with regard to conventional medical care, there are some situations in which hospital earnings must be
difficult, as treatment that is not urgent has been delayed.
Under these economic conditions, the Group’s Medical Supply business performed steadily, and high occupancy rate has
been maintained in Life Care business as in the previous term. On the other hand, the projects in Total Pack Produce
business tended to be weighted in the second half compared to the previous fiscal year, and Dispensing Pharmacy businessremained difficult due to the effects of revisions of dispensing fees and drug prices.
During this consolidated cumulative first quarter, the various factors noted above resulted in net sales of 105,455 million
yen (down 3.3% YoY), operating profit of 2,887 million yen (down 4.7% YoY), ordinary profit of 3,064 million yen(down 5.5% YoY), and profit attributable to owners of the parent of 1,643 million yen (down 11.4% YoY).
Business results by segment are summarized below.
(i) Total Pack Produce businessTotal Pack Produce business was in difficult situation due to the tendency that the projects weighted in the second
half compared to the previous fiscal year although the performance of the newly consolidated medical device
distribution company in Myanmar contributed.
As a result, this segment recorded net sales of 16,806 million yen (down 13.1% YoY) and segment profit (operating
profit) of 976 million yen (down 14.4% YoY).
(ii) Medical Supply business
Driven by group cooperation and improvements in operational efficiency, Medical Supply business was generally inline with the plan although the profitability has continued to be difficult due to the impact of the redemption pricerevision.
As a result, this segment recorded net sales of 74,275 million yen (down 2.1% YoY) and segment profit (operating
profit) of 850 million yen (up 8.0% YoY).
(iii) Life Care businessAs management efficiency has advanced due to the well-established nationwide integrated management and increasein occupancy rate, Life Care business performed steadily.
As a result, this segment recorded net sales of 6,069 million yen (up 1.6% YoY) and segment profit (operating profit)of 580 million yen (up 31.4% YoY).
(iv) Dispensing Pharmacy businessIn the Dispensing Pharmacy business, the condition remained difficult due to the restraint in visiting medical
institutions as the expansion of COVID-19 in addition to the effects of revisions to dispensing fees and drug prices.
As a result, this segment recorded net sales of 6,551 million yen (down 1.0% YoY) and segment profit (operating
profit) of 446 million yen (down 28.5% YoY).
(v) Other businesses
Other businesses resulted in inactive as the security support company performed poorly due to the decline inoperation ratio of the facilities of clients while the performance of building management company newly contributed.
As a result, this segment recorded net sales of 1,753 million yen (up 47.0% YoY) and segment profit (operating
profit) of 86 million yen (down 13.2% YoY).

2

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

(2) Analysis of financial position
Assets at the end of the consolidated first quarter under review stood at 298,628 million yen, down 10,244 million yen
from the end of the previous consolidated fiscal year. The primary reasons for this decline included decreases of 14,705
million yen in cash and deposits, and 11,327 million yen in notes and accounts receivable – trade, despite increases of
11,348 million yen in investment securities, and 2,872 million yen in merchandise and finished goods.
Liabilities stood at 194,347 million yen, down 9,844 million yen from the end of the previous consolidated fiscal year. The
primary reasons for this decline included decreases of 11,731 million yen in notes and accounts payable – trade, and 3,284
million yen in income taxes payable, despite increases of 3,775 million yen in short-term loans.
Net assets were 104,280 million yen, down 400 million yen from the end of the previous consolidated fiscal year. The
primary reasons for this decline included a decrease of 3,556 million yen in retained earnings due to payment of dividends,
despite increase of 1,707 million yen in valuation difference on available-for-sale securities, and 1,643 million yen inretained earnings from profit attributable to owners of parent.
As a result of all these factors, the equity capital ratio at the end of the consolidated first quarter under review stood at
33.7%. (up 0.7% 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, 2020.

3

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

2. Quarterly consolidated financial statements and notes thereto(1) Quarterly consolidated balance sheet(Unit: Millions yen)
June 30, 2020

March 31, 2020
AssetsCurrent assets
Cash and deposits

78,71764,012

Notes and accounts receivable - trade95,62384,295

Electronically recorded monetary claims - operating

3,611

3,885

Lease investment assets

3,500

3,454

Merchandise and finished goods

14,02916,902Work in process

1,511

2,009

Raw materials and supplies
Other

845

1,035

12,731

10,421

(71)

(141)

210,499

185,876

Buildings and structures, net

18,534

18,423Land

16,10016,095

Real estate for rent, net

11,213

11,155

Other, net

11,166

11,130Total property, plant, and equipment

57,01456,804

8,548

11,055

972

941

9,520

11,997

Investment securities

14,53525,883Long-term loans receivable

7,810

7,742

Other

11,20912,043

Allowance for doubtful accounts(1,716)(1,719)Total investments and other assets

31,83843,95098,373112,752

308,873

298,628

Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant, and equipment

Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets

Total non-current assets
Total assets

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

(Unit: Millions yen)
June 30, 2020

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

78,389

Electronically recorded obligations - operating

19,59819,379

935

4,710

4,400

1,115

Short-term loans
Income taxes payable
Provision for bonuses

2,194

2,394

Other

15,864

17,913

Total current liabilities

133,115

123,903

Bonds with share acquisition rights

25,091

25,085Long-term loans

36,98735,878Net defined benefit liability

2,873

2,871

Asset retirement obligations

838

842

Non-current liabilities

Other

5,284

5,767

Total non-current liabilities

71,07670,444204,191

194,347

Capital stock

15,553

15,553

Capital surplus

23,89523,887

Total liabilities
Net assets
Shareholders' equity

Retained earnings

74,841

72,928Treasury stock(14,447)(15,262)

Total shareholders' equity

99,841

97,107

Valuation difference on available-for-sale securities

2,019

3,726

Foreign currency translation adjustment

(152)

(154)

Accumulated other comprehensive income

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

3,645

2,897

3,527

104,681104,280

308,873

298,628

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for First 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
Consolidated cumulative first quarter
Three months ended
June 30, 2019
109,005(Unit: Millions yen)Three months ended
June 30, 2020
105,455

Cost of sales

98,73994,823Gross profit

10,265

10,631

Sales, general, and administrative expenses

7,234

7,744

Operating profit

3,030

2,887

Interest income

84

84

Dividend income

188

185

Amortization of negative goodwill

58－

Share of profit of entities accounted for using equity-method

31

34

Foreign exchange gains

3

70

Reversal of allowance for doubtful accounts
Other

－
95

37
101

Total non-operating profit

461

514

Interest expenses

63

90

Provision of allowance for doubtful accounts

170

6Commission fee

2

194

Other

13

45

Total non-operating expenses

248

337

3,242

3,064

Gains on sales of non-current assets

00

Total extraordinary profit

0

0

－
2

92

Losses on sales of non-current assets
Losses on retirement of non-current assets

0

－
18

Total extraordinary losses

2

111

Total profit before income taxes

3,241

2,952

Income taxes - current

1,288

1,033

Net sales

Non-operating income

Non-operating expenses

Ordinary profit
Extraordinary profit

Extraordinary losses
Losses on step acquisitions

70

270

Total income taxes

1,358

1,303

Profit

1,883

1,649

Income taxes - deferred

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

6

27

5

1,855

1,643

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

Quarterly consolidated statement of comprehensive income
Consolidated cumulative first quarter
Three months ended
June 30, 2019
1,883

(Unit: Millions yen)Three months ended
June 30, 2020
1,649

Valuation difference on available-for-sale securities

(12)

1,707

Foreign currency translation adjustments

(153)

(11)

Remeasurements of defined benefit plans

2
(163)

(1)
1,694

1,719

3,343

1,742

3,346

(22)

(3)

ProfitOther comprehensive income

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): Summary of Financial Statements
for First 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 Previous consolidated cumulative first quarter (April 1 – June 30, 2019)1

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

19,33275,882

5,976

6,621

107,8121,192

109,005－

109,005

474

239

45

451

1,210

76

1,286

(1,286)－

Subtotal

19,807

76,121

6,021

7,072

109,022

1,268

110,291(1,286)109,005

1,141
788
441
624
2,996
99
3,095
(64)
3,030
Segment profit
Notes:
1. The “Other” category includes businesses not included in reportable business segments, such as the veterinary hospitalbusiness, sales of physical and chemical apparatus, and the security business.
2. The figure of (64) million yen in adjustments to segment profit includes (23) million yen in cancellation of intersegment
transactions and (41) 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 loss on fixed assets or goodwill, per reporting segment
During this consolidated cumulative first quarter, no significant impairment loss on fixed assets and no significant change inamounts of goodwill or significant gains on negative goodwill were identified.

8

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

II
1

Consolidated cumulative first quarter under review (April 1 – June 30, 2020)

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

16,80674,275

6,069

6,551

103,702

1,753

105,455－

105,455

467

336

45

6,400

7,249

100

7,349

(7,349)－Subtotal

17,27374,611

6,114

12,952110,952

1,853

112,805(7,349)105,455

976
850
580
446
2,855
86
2,941
(53)
2,887
Segment profit
Notes:
1. The “Other” category includes businesses not included in reportable business segments, such as the veterinary hospitalbusiness, sales of physical and chemical apparatus, and the security business.
2. The figure of (53) million yen in adjustments to segment profit includes (21) million yen in cancellation of intersegment
transactions and (32) 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 each reportable segments
During the first quarter of the current consolidated cumulative period, 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 isincluded in the scope the equity-method applied.
Due to the above acquisition, assets in “Life Care business” segment increased by 9,859 million yen from the end of theprevious consolidated fiscal year.

3

Information on impairment losses on non-current assets or goodwill of each reportable segments(Significant impairment losses on non-current assets)
Not applicable.
(Significant changes in the amount of goodwill)
During the first quarter of the current consolidated cumulative period, 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