Summary of Financial Statements
for First Quarter of Fiscal Year Ending March 31, 2022 [Japanese GAAP](Consolidated)
Aug 6, 2021
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: August 12, 2021
Scheduled start date of dividend payments: –Supplementary briefing materials on results: None
Briefing on quarterly results:
None
Name of listed company:(All figures are rounded down to the nearest million yen.)

1. Consolidated financial results for the first quarter of fiscal year ending March 31, 2022
(April 1, 2021 – June 30, 2021)(1) Consolidated operating results
Net sales(Million yen)

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

Operating profit%(Million yen)%

(Million yen)

Q1 FY ending March 2022
114,215–3,106
7.6
Q1 FY ended March 2021
105,455
(3.3)
2,887
(4.7)
Note: Comprehensive income: Q1 FY ending March 2022: ¥1,517 million ((54.6) %)Q1 FY ended March 2021: ¥3,343 million (94.4 %)Diluted net
Net income per shareincome per share
Q1 FY ending March 2022
Q1 FY ended March 2021

(Yen)

(Yen)

16.99
17.35

15.39
15.73

3,057
3,064

%

(Million yen)

%

(0.2)
(5.5)

1,602
1,643

(2.5)
(11.4)

Note: 1

Accounting Standard for Revenue Recognition (ASBJ Statement No.29, March 31,2020) have been applied from the beginning of the firstquarter of the current consolidated accounting period, and each numerical value for the first quarter of the fiscal year ending March 2022 is
the value after applying the relevant accounting standards. Due to the above reason, quarterly YoY rate of change in net sales is not stated.
2 The company executed a two-for-one common stock split, effective on April 1, 2021. “Net income per share” and “Diluted net income pershare” are calculated as if the relevant stock split was executed at the beginning of the previous consolidated fiscal year ended March 31,
2020.

(2) Consolidated financial condition
Total assets

Net assets(Million yen)

Equity capital ratio(Million yen)%

Q1 FY ending March 2022
314,395
112,834
34.8
FY ended March 2021
334,498
115,103
33.3
Reference: Equity: Q1 FY ending March 2022: ¥109,275 million; FY ended March 2021: ¥111,440 million

2. Dividends
End Q1(Yen)

End Q2

Annual dividends
End Q3(Yen)

FY ended March 2021–
0.00
FY ending March 2022–
FY ending March 2022
0.00
(forecast)
Note: Revisions made in most recently announced dividend forecasts: None

Year-end

Total

(Yen)

(Yen)

(Yen)

–

80.00

80.00

–

41.00

41.00

Note: The company executed a two-for-one common stock split, effective on April 1, 2021. Annual dividends for the year ended March 31, 2021 areactual amounts paid prior to the relevant stock split. Forecasted annual dividends for the year ending March 31, 2022 are the amount after the
relevant stock split.

3. Forecast of consolidated financial results for the fiscal year ending March 31, 2022
(April 1, 2021 – March 31, 2022)(Percentages represent changes from previous year for full-year figures and year-on-year changes for quarterly figures.)
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)%
Q2 (Cumulative)
225,000–
6,500 (17.0)
6,500 (21.4)
3,800 (19.3)
40.28
Full-year
530,000–
22,5003.2
22,5003.4
12,5001.8
132.48

Note: Revisions made in most recently announced forecasts of business performance: None
Note: 1

Accounting Standard for Revenue Recognition (ASBJ Statement No.29, March 31,2020) have been applied from the beginning of the firstquarter of the current consolidated accounting period, and each numerical value for the first quarter of the fiscal year ending March 2022 is
the value after applying the relevant accounting standards. Due to the above reason, YoY and quarterly YoY rate of change in net sales are
not stated.
2 The company executed a two-for-one common stock split, effective on April 1, 2021. “Net income per share” in the forecast of
consolidated financial results for the fiscal year ending March 31, 2022 is calculated based on the number of shares outstanding after the
relevant stock split.

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
Q1 FY ending
the end of the period (including treasury
March 2022
stock)Q1 FY ending(ii) Number of treasury stock at the end of the
March 2022
period(iii) Average number of shares during the period Q1 FY ending
March 2022
(quarterly cumulative)

None
None
Yes
None
None
None

101,669,400 shares

FY ended March
2021

101,669,400 shares

7,319,084 shares

FY ended March
2021

7,319,054 shares

94,350,323 shares

Q1 FY ended
March 2021

94,722,596 shares

Note: The company executed a two-for-one common stock split, effective on April 1, 2021. “Number of shares issued and outstanding at the end of theperiod”, “Number of treasury stock at the end of the period”, and “Average number of shares during the period” are calculated as if the relevant
stock split was executed at the beginning of the previous consolidated fiscal year ended March 31, 2020.

* 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 guarantee 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 “Information on consolidated financial forecasts and other forward-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, 2022

 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. Quaeterly 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(Changes in accounting policy) ........................................................................................................ 8(Segment information, etc.) .............................................................................................................. 9

1

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for First Quarter of Fiscal Year Ending March 31, 2022

1. Qualitative information on quarterly results(1) Description of business results
In the Japanese economy during the first quarter of the current consolidated cumulative period, economic and social
activities have been continuously restricted due to the worldwide impact of the COVID-19 infection, and businessrecovery and future outlook remain uncertain.
Healthcare industry in which the Group operates, although the number of medical consultations and operations continued
to decrease compared to the average year, it has improved compared to the same period last year. Medical institutions are
increasing their efforts to secure beds to combat COVID-19, and related capital investment is also on the rise.
In the Group’s performance under such conditions, sales of infection control equipment such as simplified negative
pressure devices in manufacturers increased and performed firmly, however, the business overall in Total Pack Produce
business performed slow due to the plan that more projects will be recorded in second half compared to usual. In Medical
Supply business, although the impact of avoidance on medical consultations remains, sales of consumables recorded
firmly due to the upward trend in the operation rate of medical institutions compared to last year. In addition, theindustry's first automated logistic center "Osaka Solution Center", which manages all consumables inventories collectively
with RFID, has started full-scale operation. Also, the occupancy rate of pay nursing homes remained high in Lifecare
business, and Dispensing Pharmacy business performed steadily due to the progress of improvement in businessefficiency.
For the first quarter of the current consolidated cumulative period, the various factors noted above resulted in net sales of
114,215 million yen (The cumulative consolidated period for the same quarter of the previous year: 105,455 million yen),operating profit of 3,106 million yen (up 7.6% YoY), ordinary profit of 3,057 million yen (down 0.2% YoY), and profit
attributable to owners of parent of 1,602 million yen (down 2.5% YoY).
Accounting Standard for Revenue Recognition (ASBJ Statement No.29, March 31,2020) have been applied from the
beginning of the first quarter of the current fiscal year. Due to the application, the explanation regarding business results
does not include the YoY comparison (%) concerning net sales since the accounting method is different from theconsolidated cumulative period for the first quarter of the previous fiscal year. For details, please refer to “2. Quarterly
consolidated financial statements and notes thereto (3) Notes on consolidated financial statements (Changes in accounting
policy) and (Segment information, etc.)”.
Business results by segment are summarized below.
From the first quarter of the current fiscal year, the Company has changed the categorization of reportable segments, andthe comparisons and analysis of the consolidated cumulative first quarter under review are based on the categorization
after the change.
(i) Total Pack Produce businessIn Total Pack Produce business, the sales of simplified negative pressure devices firmly recorded in manufacturers,
and the number of patients in heavy ion therapy center was also increased. However, the business overall performed
slow because the more projects scheduled to be completed in second half regarding the projects for hospital.
As a result, this segment recorded net sales of 16,827 million yen (The cumulative consolidated period for the samequarter of the previous year: 17,921 million yen) and segment profit (operating profit) of 870 million yen (down
11.7% YoY).
(ii) Medical Supply business
In Medical Supply business, although the impact of avoidance on medical consultations remains, sales ofconsumables recorded firmly compared to the previous year. Also, with the start of full-scale operation of theautomated logistic center for consumables, "Osaka Solution Center", an efficient management and operation system
has been prepared.
As a result, this segment recorded net sales of 84,322 million yen (The cumulative consolidated period for the samequarter of the previous year: 74,912 million yen) and segment profit (operating profit) of 1,062 million yen (up 20.3%
YoY).
(iii) Lifecare business
In Lifecare business, occupancy rate maintained high due to the success in strict infection control measures, and theimprovement of business efficiency progressed. Also, the food service performed as planned.
As a result, this segment recorded net sales of 6,161 million yen (The cumulative consolidated period for the samequarter of the previous year: 6,069 million yen) and segment profit (operating profit) of 587 million yen (up 1.2%
YoY).
(iv) Dispensing Pharmacy business
In Dispensing Pharmacy business, the business performed firmly due to the improvement in avoidance on medical
consultations compared to the same period of the previous year, and business efficiency has also improved.
2

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for First Quarter of Fiscal Year Ending March 31, 2022

As a result, this segment recorded net sales of 6,904 million yen (The cumulative consolidated period for the samequarter of the previous year: 6,551 million yen) and segment profit (operating profit) of 602 million yen (up 34.8%
YoY)(2) Analysis of Financial Position
Assets at the end of the consolidated first quarter under review stood at 314,395 million yen, down 20,102 million yen
from the end of the previous consolidated fiscal year. The primary reasons for this decline included decreases of 23,721
million yen in notes, accounts receivable, and contract asset, despite increases of 1,523 million yen in merchandise andfinished goods, and 1,133 million yen in buildings and structures.
Liabilities stood at 201,560 million yen, down 17,833 million yen from the end of the previous consolidated fiscal year.
The primary reasons for this decline included decreases of 15,675 million yen in notes and accounts payable – trade, and4,702 million yen in income taxes payable, despite increases of 3,046 million yen in electronically recorded obligations –operating.
Net assets were 112,834 million yen, down 2,268 million yen from the end of the previous consolidated fiscal year. The
primary reasons for this decline included decreases of 3,774 million yen in retained earnings due to payment of dividends,
despite increases of 1,602 million yen in retained earnings from profit attributable to owners of parent.
As a result of all these factors, at the end of the consolidated first quarter under review stood at 34.8%. (up 1.5% from theend 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 fiscal year remain unchanged from the forecasts announced on May 11, 2021.

3

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for First Quarter of Fiscal Year Ending March 31, 2022

2. Quarterly consolidated financial statements and notes thereto(1) Quarterly consolidated balance sheet
Fiscal year ended
March 31, 2021
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
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)
Q1 Fiscal year ending March
31, 2022 (June 30, 2021)

73,907
113,720
－
4,080
3,349
16,139
1,893
691
9,762
(1,654)
221,890

74,160－89,9984,618
3,319
17,662
2,247
997
10,898(1,653)202,249

19,461
15,947
10,907
11,62457,941

20,59516,011
10,856
10,82458,286

9,604
976
10,5819,277
1,012
10,29026,125
7,655
12,043(1,739)44,085
112,607334,498

26,2607,564
11,481(1,737)43,569112,145314,395

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for First Quarter of Fiscal Year Ending March 31, 2022

(Unit: Million yen)
Q1 Fiscal year ending March
31, 2022 (June 30, 2021)

Fiscal year ended
March 31, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade102,20986,533

Electronically recorded obligations - operating

21,481

24,528

Short-term loans payable

1,248

1,710

Income taxes payable

6,168

1,465

Provision for bonuses

2,508

2,542

Other

18,326

17,815

Total current liabilities

151,942

134,594

Bonds with share acquisition rights

25,06625,060Long-term loans payable

32,721

32,087

Net defined benefit liability

2,902

2,942

Non-current liabilities

849

867

Other

5,912

6,008

Total non-current liabilities

67,451

66,966219,394

201,560

Capital stock

15,553

15,553

Capital surplus

23,891

23,897

Asset retirement obligations

Total liabilities
Net assets
Shareholders' equity

Retained earnings

83,565

81,394

Treasury stock(15,526)(15,526)

Total shareholders' equity

107,483

105,318

3,923

3,934

Accumulated other comprehensive income
Valuation differences on available-for-sale securities
Deferred gains or losses on hedges

00Foreign currency translation adjustments

68

59

Remeasurements of defined benefit plans

(35)

(37)

3,957

3,957

Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

5

3,663

3,558

115,103112,834

334,498

314,395

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for First Quarter of Fiscal Year Ending March 31, 2022

(2) Quarterly consolidated statement of income and consolidated statement of comprehensive income
Quarterly consolidated statement of income
Consolidated cumulative first quarter
Three months ended
June 30, 2020
105,455(Unit: Million yen)Three months ended
June 30, 2021
114,215

Cost of sales

94,823103,106

Gross profit

10,631

11,109

Sales, general, and administrative expenses

7,744

8,003

Operating profit

2,887

3,106

Interest income

84

72

Dividend income

185

99

Equity gains of affiliated companies

34

Foreign exchange profit

70

Reversal of allowance for doubtful accounts

37

7
－
7

Other

101

75

Total non-operating profit

514

261

Interest expenses

90

61

Foreign exchange loss

205

Provision for doubtful accounts－
6

Commission paid

194

－
19

Other

45

23

Net sales

Non-operating profit

Non-operating expenses

337

309

3,064

3,057

Gains on sales of non-current assets

00Gains on sales of investment securities－
01

Losses on step acquisitions

92

Losses on sales of non-current assets－
0

Losses on retirement of non-current assets－
18

Total extraordinary losses

1110Profit before income taxes

2,952

3,058

Income taxes - current

1,033

990

Total non-operating expenses
Ordinary profit
Extraordinary profit

Total extraordinary profit

1

Extraordinary losses

0

270

552

Total income taxes

1,303

1,543

Profit

1,649

1,515

5

(87)

1,643

1,602

Income taxes - deferred

Profit (losses) 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, 2022

Quarterly consolidated statement of comprehensive income
Consolidated cumulative first quarter

Three months ended
June 30, 2020
1,649

(Unit: Million yen)Three months ended
June 30, 2021
1,515

1,707

10

Foreign currency translation adjustments

(11)

(5)

Remeasurements of defined benefit plans(1)

5

Net income
Other comprehensive income
Valuation differences on available-for-sale securities

Share of other comprehensive income of entities accounted for using equity method
Total other comprehensive income
Comprehensive income

－

(8)

1,694

1

3,343

1,517

3,346

1,603

(3)

(85)

(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, 2022

(3) Notes on consolidated financial statements(Notes on the going concern assumption)
Not applicable(Notes on marked changes to shareholders' equity)
Not applicable(Change in accounting policy)(Application of Accounting Standard for Revenue Recognition, etc.)
The Accounting Standard for Revenue Recognition (ASBJ Statement No.29, March 31,2020; hereinafter,"Accounting Standard for Revenue Recognition") has been applied from the beginning of the first quarterof the current consolidated fiscal year. In accordance with the Accounting Standard for Revenue
Recognition, when control of a promised goods and/or service is transferred to the customer, revenue will
be recognized for the amount expected to be received in exchange for the good and/or service. As aresult, for transactions for which our role in providing products to customers is an agent, mainly forrevenues related to product sales in Medical Supply business, the Company has changed to a method ofrecognizing revenue with the net amount obtained by deducting the amount paid to the supplier of the
product from the amount received from the customer although the Company previously recognized thetotal amount received from customers as revenue.
When applying the Accounting Standard for Revenue Recognition, the Company comply with thetransitional treatment stipulated in the proviso of article 84 of the Standard. The cumulative impact ofretroactively applying the new accounting policy prior to the beginning of the first quarter of the current
fiscal year is added or subtracted to the retained earnings at the beginning of the first quarter of thecurrent fiscal year and the new accounting policy is applied from the beginning balance.
As a result, net sales and cost of sales for the first quarter of the current consolidated cumulative period
decreased by 1,617 million yen, respectively. However, there is no cumulative impact on net assets at the
beginning of the first quarter of the current consolidated fiscal year, so there is no impact on the
beginning balance of retained earnings for the first quarter of the current consolidated fiscal year. For the
impact on segment information, please refer to “2. Quarterly consolidated financial statements and notes
thereto (3) Notes on consolidated financial statements (Segment information, etc.)”.
Due to the application of Accounting Standard for Revenue Recognition, "Notes and accounts receivable"
recorded in "Current assets" in the consolidated balance sheet for the previous consolidated fiscal year
will be included in " Notes, accounts receivable, and contract asset" from the first quarter of the current
consolidated fiscal year. In accordance with the transitional treatment stipulated in article 89-2 of the
Accounting Standard for Revenue Recognition, the previous consolidated fiscal year has not been
reclassified using the new recording method.
(Application of accounting standards related to fair value measurement, etc.)
The Accounting Standard for Fair Value Measurement (ASBJ Statement No.30, July 4, 2019; hereinafter,"Accounting Standard for Fair Value Measurement") has been applied from the beginning of the firstquarter for the current consolidated fiscal year. In accordance with transitional treatment stipulated in theprovision of paragraph 19 in Accounting Standards for Fair Value Measurement and article 44-2 inAccounting Standard for Financial Instruments (ASBJ Statement No. 10, July 4, 2019), new accounting
policy under Accounting Standards for Fair Value Measurement will be applied in the future. There is no
impact on the quarterly consolidated financial statements.

8

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for First Quarter of Fiscal Year Ending March 31, 2022

(Segment information, etc.)[Segment information]
I.

Previous consolidated cumulative first quarter (April 1 – June 30, 2020)

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

MedicalSupplybusiness

Dispensing
Pharmacybusiness

Lifecarebusiness

Total

Adjustments*1

Amount recordedon consolidated
financialstatements*2

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

17,921

74,912

6,069

6,551

105,455－

105,455

503

318

45

6,400

7,268

(7,268)－18,42575,231

6,114

12,952

112,723(7,268)105,455

Segment profit
985
882
580
446
2,896
(8)
2,887
Notes:
1 The figure of (8) million yen in adjustments to segment profit includes (21) million yen in cancellation of intersegment
transactions and 13 million yen in companywide costs not allocated among reportable segments. These companywide costs
consist mainly of parent company’s operating expenses and sales, general, and administrative expenses not attributable toindividual reportable segments.
2 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 “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 or goodwill, per reportable segments(Significant impairment loss 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 applicable9SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for First Quarter of Fiscal Year Ending March 31, 2022

II.

Consolidated cumulative first quarter under review (April 1 – June 30, 2021)

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

MedicalSupplybusiness

Dispensing
Pharmacybusiness

Lifecarebusiness

Total

Adjustments*1

Amount recordedon consolidated
financialstatements*2

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

16,827

84,332

6,161

6,904

114,215－

114,215

397

420

43

23

885

(885)

－

17,22584,742

6,205

6,927

115,100(885)

114,215

Segment profit
870
1,062
587
602
3,122
(16)
3,106
Notes:
1 The figure of (16) million yen in adjustments to segment profit includes (18) million yen in cancellation of intersegment
transactions and 7 million yen in companywide costs not allocated among reportable segments. These companywide costs
consist mainly of parent company’s operating expenses and sales, general, and administrative expenses not attributable toindividual reportable segments.
2 Segment profit is adjusted against the operating profit reported on the quarterly consolidated statement of income.

2 Notes on changes in reportable segments, etc.
From the first quarter of the current consolidated fiscal year, the Company has changed the categorization of the reportablesegments including categorizing the businesses previously included in “Other” into “Total Pack Produce business” etc.
according to the categorization change of the reportable segments. The all figures on the segment information for the previous
consolidated cumulative first quarter are created according to the categorization after the change.
As described in the changes in accounting policy, the Accounting Standard for Revenue Recognition was applied from the
beginning of the first quarter consolidated fiscal year, and the accounting method for revenue recognition was changed. The
calculation method for profit and loss of the business segments is also changed due to the above change. As a result of thischange, sales to outside customers in the “Medical Supply business” for the first quarter of the current consolidated
cumulative period decreased by 1,617 million yen compared to the conventional method. Intersegment sales or transfers of“Dispensing Pharmacy business” for the first quarter of the current consolidated cumulative period also decreased by 7,731
million yen, while it has no effect on the amount recorded in the quarterly consolidated statement of income.

3 Information on impairment loss on non-current assets or goodwill, per reportable segments
During the first quarter of the current consolidated cumulative period, there was no recognition of significant impairment loss
on non-current assets, significant fluctuations in the amount of goodwill, or significant gain on negative goodwill.

10