Summary of Financial Statements
for First Quarter of Fiscal Year Ending March 31, 2020 [Japanese GAAP](Consolidated)
August 9, 2019
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, Executive Director
Tel.: +81-6-6369-0130
Scheduled date for filing quarterly report: August 13, 2019 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, 2020 (April 1 –June 30, 2019)(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 2020
109,005
10.6
3,030
10.2
3,242
Q1 FY ended March 2019
98,580
9.9
2,749
8.6
2,984
Note: Comprehensive income: Q1 FY ending March 2020: 1,719 million yen ((17.3)%)
Q1 FY ended March 2019: 2,078 million yen (0.4%)
Basic earnings per
Diluted earnings per
share
share

8.7
7.8

1,855
1,772

4.7
16.6

Q1 FY ending March 2020
Q1 FY ended March 2019%

(Millions yen)

%

(Yen)

(Yen)

38.96
35.19

35.36
–

(2) Consolidated financial condition
Total assets

Net assets(Millions yen)

Equity capital ratio(Millions yen)%

Q1 FY ending March 2020
294,399
96,82431.9
FY ended March 2019299,21297,734
31.9
Reference: Equity: Q1 FY ending March 2020: 93,828 million yen; FY ended March 2019: 95,420 million yen

2. Dividends
End Q1(Yen)

End Q2

Annual dividends
End Q3Year-end

(Yen)

(Yen)

FY ended March 2019–
0.00–
FY ending March 2020–
FY ending March 2020
0.00–
(forecast)
Notes: Revisions made in most recently announced dividend forecasts: None

Total

(Yen)

(Yen)

70.00

70.00

75.00

75.00

3. Forecast of consolidated financial results for fiscal year ending March 31, 2020 (April 1, 2019 – March
31, 2020)(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)
(Millionsyen)(Millionsyen)(Millions
yen)
(Yen)
%
%
%
%
Cumulative through
210,000
3.9
6,500
3.7
7,000
6.0
4,000
0.1
83.98
second quarter
Full-year
466,000
4.9
18,5003.1
19,3004.1
11,8005.0
247.74
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 20202019(including treasury shares)
FY ended March(ii) Number of treasury shares at the end of Q1 FY ending
3,204,566 shares
March 20202019
the period(iii) Average number of shares during theQ1 FY ending
Q1 FY ended
47,630,157 shares
March 2020
March 2019
period (quarterly cumulative total)

None
None
None
None
None
None
None

50,834,700 shares

3,204,535 shares

50,379,982 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 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 “Informationon consolidated financial forecasts and other forward-looking statements” on page 3 of the attachedmaterials.

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for First Quarter of Fiscal Year Ending March 31, 2020

 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, 2020

1. Qualitative information on quarterly results(1) Description of business results
Backed by strong corporate earnings and steady growth in employment and personal income, the Japanese economy
maintained a course of gentle recovery during the consolidated cumulative first quarter. Nevertheless, due to uncertainties
in the world economy including trade friction between US and China, and psychological impact to consumers in Japan on
the planned consumption tax hike, the global economic outlook remains uncertain.
Within the healthcare industry in which the Group operates, system reform in medical care is underway on the back ofrising medical expenses reflecting medical complexity and low birthrate and aging. These conditions are pushing medical
institutions and others in the industry to engage in extensive partnerships and to pursue the development of efficientbusiness structures over the medium to long term.
Under these economic conditions, the Group’s Total Pack Produce business made steady progress on several projects, aswell as the Life Care business that achieved steady improvements in occupancy rates continuing from previous fiscal year.
With increase in the number of patients after the start of treatment at the Osaka Heavy Ion Therapy Center, which beganproviding treatment in October of last year, preparation of the third treatment room is in progress as scheduled towards thestart of operation in October this year although the initial cost is still remained.
During this consolidated cumulative first quarter, the various factors noted above resulted in net sales of 109,005 million
yen (up 10.6% YoY), operating profit of 3,030 million yen (up 10.2% YoY), ordinary profit of 3,242 million yen (up 8.7%
YoY), and profit attributable to owners of the parent of 1,855 million yen (up 4.7% YoY).
Business results by segment are summarized below.
(i) Total Pack Produce business
The Total Pack Produce business made steady progress on several projects. However, the initial costs for Osaka
Heavy Ion Therapy Center and the hospital operation project in Bangladesh are appropriated continuing fromprevious fiscal year.
As a result, this segment recorded net sales of 19,332 million yen (up 13.3% YoY) and segment profit (operating
profit) of 1,141million yen (down 3.0% YoY).
(ii) Medical Supply business
Driven by various factors, including cooperation within the Group and improvements in operational efficiency, theMedical Supply business recorded performance largely in accordance with plans despite the ongoing difficult
condition to secure profits due to the revised reimbursement prices in last year.
As a result, this segment recorded net sales of 75,882 million yen (up 11.5% YoY) and segment profit (operating
profit) of 788million yen (up 11.9% YoY).
(iii) Life Care business
The Life Care business demonstrated strong performance driven by the progress in management efficiency thanks tothe establishment of national integrated management and further growth in occupancy rates.
As a result, this segment recorded net sales of 5,976 million yen (up 0.9% YoY) and segment profit (operating profit)of 441 million yen (up 13.2% YoY).
(iv) Dispensing Pharmacy businessIn the Dispensing Pharmacy business, despite the impact of the revisions of dispensing fees was mitigated comparedto the previous year, conditions remained difficult due to the fact that the consumption tax is expected to increase.
As a result, this segment recorded net sales of 6,621 million yen (up 6.1% YoY) and segment profit (operating profit)of 624 million yen (up 25.4% YoY).
(v) Other businesses
In other businesses, the operation of veterinary hospitals and security support company made steady progress largely
as planned.
As a result, this segment recorded net sales of 1,192 million yen (down 6.0% YoY) and segment profit (operating
profit) of 99 million yen (down 5.8% YoY).

2

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for First Quarter of Fiscal Year Ending March 31, 2020

(2) Analysis of financial position
Assets at the end of the consolidated first quarter under review stood at 294,399 million yen, down 4,812 million yen fromthe end of the previous consolidated fiscal year. The primary reasons for this decline included decreases of 15,078 million
yen in notes and accounts receivable – trade, despite increases of 6,921 million yen in cash and deposits, 1,233 million
yen in merchandise and finished goods, and 1,129 million yen in electronically recorded monetary claims – operating.
Liabilities stood at 197,574 million yen, down 3,903 million yen from the end of the previous consolidated fiscal year. The
primary reasons for this decline included decreases of 4,494 million in notes and accounts payable - trade and 2,987
million in income taxes payable, despite increases of 2,736 million yen in electronically recorded obligations – operating.
Net assets were 96,824 million yen, down 909 million yen from the end of the previous consolidated fiscal year. Primaryreasons for this decline included a decrease of 3,334 million yen in retained earnings due to payment of dividends, despite
increase of 1,855 million yen in retained 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
31.9%, same 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 10, 2019.

3

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for First Quarter of Fiscal Year Ending March 31, 2020

2. Quarterly consolidated financial statements and notes thereto(1) Quarterly consolidated balance sheet(Unit: Millions yen)
June 30, 2019

March 31, 2019
AssetsCurrent assets
Cash and deposits

72,39379,314

Notes and accounts receivable - trade

97,97582,896

Electronically recorded monetary claims - operating

3,232

4,362

Lease investment assets

3,801

3,638

Merchandise and finished goods

14,034

15,268Work in process

1,471

1,833

648

710

8,109

9,209

(95)

(96)

201,571

197,136

Buildings and structures, net

18,907

18,731Land

14,451

14,449Real estate for rent, net

13,20912,946

Other, net

8,084

8,705

Total property, plant, and equipment

54,652

54,833

9,304

8,946

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

Intangible assets
Goodwill
Other

1,029

972

Total intangible assets

10,333

9,918

14,683

14,685Investments and other assets
Investment securities
Long-term loans receivable

9,531

9,442

Other

11,062

10,628

Allowance for doubtful accounts(2,624)(2,246)

Total investments and other assets

32,65432,510Total non-current assets
Total assets

4

97,64097,262299,212294,399

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for First Quarter of Fiscal Year Ending March 31, 2020

(Unit: Millions yen)
June 30, 2019

March 31, 2019
Liabilities
Current liabilities
Notes and accounts payable - trade85,37180,876

Electronically recorded obligations - operating

20,772

23,508

Short-term loans

1,030

1,030

Income taxes payable

4,139

1,152

Provision for bonuses

2,032

2,405

Other

14,83016,573

Total current liabilities

128,176

125,547

Bonds with share acquisition rights

25,11625,110Long-term loans

39,70038,533Net defined benefit liability

2,811

2,781

Non-current liabilities

Asset retirement obligations
Other
Total non-current liabilities

628

601

5,043

4,999

73,30072,027201,477

197,574

Capital stock

15,553

15,553

Capital surplus

23,921

23,921

Total liabilities
Net assets
Shareholders' equity

Retained earnings

66,37264,894

Treasury stock(13,447)(13,448)

Total shareholders' equity

92,39990,920

3,079

3,067

(84)

(187)

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

5

26

28

3,021

2,907

2,314

2,996

97,73496,824299,212294,399

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for First Quarter of Fiscal Year Ending March 31, 2020

(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, 2018
98,580(Unit: Millions yen)Three months ended
June 30, 2019
109,005

Cost of sales

88,65098,739Gross profit

9,930

10,265

Sales, general, and administrative expenses

7,180

7,234

Operating profit

2,749

3,030

Net sales

Non-operating income
Interest income

75

84

Dividend income

90

188

Amortization of negative goodwill

58

58

Share of profit of entities accounted for using equity method

34

31

Reversal of allowance for doubtful accounts

2

―

Other

69

98

Total non-operating profit

330

461

Non-operating expenses
Interest expenses

64

63

Provision of allowance for doubtful accounts

―

170

Other

32

15

Total non-operating expenses

96

248

2,984

3,242

Gains on sales of non-current assets

57

0Total extraordinary profit

57

0

Losses on sales of non-current assets―

2

Losses on retirement of non-current assets

00

Losses on valuation of investment securities

2―

Total extraordinary losses

3

2

Total profit before income taxes

3,038

3,241

Income taxes - current

1,118

1,288

Income taxes - deferred

181

70

Total income taxes

1,300

1,358

Profit

1,738

1,883

(34)

27

1,772

1,855

Total ordinary profit
Extraordinary profit

Extraordinary losses

Profit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

6

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for First Quarter of Fiscal Year Ending March 31, 2020

Quarterly consolidated statement of comprehensive income
Consolidated cumulative first quarter
Three months ended
June 30, 2018
1,738

Profit(Unit: Millions yen)Three months ended
June 30, 2019
1,883

Other comprehensive income
Valuation difference on available-for-sale securities

244

(12)

Foreign currency translation adjustments

88

(153)

Remeasurements of defined benefit plans
Total other comprehensive income
Comprehensive income

6

2

339

(163)

2,078

1,719

2,065

1,742

12

(22)

(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to noncontrolling interests

7

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for First Quarter of Fiscal Year Ending March 31, 2020

(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, 2018)
Net sales and profit (loss) by reportable segment(Unit: Millions yen)
Adjustments*2

Amountrecorded onquarterly
consolidated
incomestatement*3

98,580–98,58061

1,173(1,173)–

1,329

99,754(1,173)

98,580

Reportable segment
Total Pack
Producebusiness

MedicalSupplybusiness

Life Carebusiness

Dispensing
Pharmacybusiness

Subtotal

17,07068,078

5,921

6,242

97,312

1,268

348

266

45

451

1,112

17,41868,345

5,966

6,694

98,425

Other*1

Total

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

1,177
704
390
498
2,769
105
2,875
(125)
2,749
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 ¥(125) million yen in adjustments to segment profit includes ¥(19) million yen in cancellation of intersegment
transactions and ¥(105) 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, 2020

II
1

Consolidated cumulative first quarter under review (April 1 – June 30, 2019)

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

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)–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 clinic
business, 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 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