Summary of Financial Statements
for Third Quarter of Fiscal Year Ending March 31, 2020 [Japanese GAAP](Consolidated)
February 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:(Title) Chairman and CEO(Name) Kunihisa Furukawa
Contact:(Title) Executive Director(Name) Hiroshi YokoyamaTel.: +81-6-6369-0130
Scheduled date for filing quarterly report: February 13, 2020 Scheduled start date of dividend payments: –Supplementary briefing materials on results: NoneBriefing 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, 2020
(April 1 – December 31, 2019)(1) Consolidated operating results (cumulative)
Net sales(Millions yen)

Operating profit(Millions yen)%

(Millions yen)%

Q3 FY ending March 2020
358,001
12.9
13,54929.1
14,630Q3 FY ended March 2019
317,109
5.3
10,496(9.2)
10,991
Note: Comprehensive income: Q3 FY ending March 2020: ¥ 9,807 million (72.6%)
Q3 FY ended March 2019: ¥5,683 million ((30.4)%)
Diluted net income
Net income per shareper share

33.1(8.6)

8,884
6,607

34.5
(5.7)

Q3 FY ending March 2020
Q3 FY ended March 2019%

(Millions yen)

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

(Yen)

(Yen)

186.56132.55169.43131.28(2) Consolidated financial condition
Total assets

Net assets(Millions yen)

Equity capital ratio(Millions yen)%

Q3 FY ending March 2020
308,871
104,569
32.9
FY ended March 2019299,21297,734
31.9
Reference: Equity: Q3 FY ending March 2020: ¥101,617 million; FY ended March 2019: ¥95,420 million

2. Dividends
End Q1(Yen)End Q2

Annual dividends
End Q3Year-end

(Yen)

(Yen)

FY ended March 2019
–0.00–
FY ending March 2020
–0.00–
FY ending March2020(forecast)
Notes: Revisions made in most recently announced dividend forecasts: NoneTotal

(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.)
Profit attributable
Net income
Net sales
Operating profit
Ordinary profit
to owners ofper shareparent(Millions yen)
(Yen)
% (Millions yen)
% (Millions yen)
% (Millions yen)%
Full-year
466,000
4.9
18,5003.1
19,3004.1
11,8005.0
247.84
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 andQ3 FY ending
FY ended March
50,834,700 shares
outstanding at the end of the period
March 20202019(including treasury stock)
Q3 FY ending
FY ended March(ii) Number of treasury stock at the end of
3,264,927 shares
March 20202019
the period(iii) Average number of shares during theQ3 FY ending
Q3 FY ended
47,624,076 shares
March 2020
March 2019
period (quarterly cumulative total)

None
None
None
None
None
None
None

50,834,700 shares

3,204,535 shares

49,847,419 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 average number of shares during the period, on which calculations of net income per share in theforecast of consolidated financial results for fiscal year ending March 31, 2020, are based, reflects theeffects of purchase of treasury stock under a resolution passed by the board of directors in its meeting
held on May 10, 2019.
• 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 Third 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 ofcomprehensive income ............................................................................................................................ 6(3)Notes on quarterly consolidated financial statements .............................................................................. 8(Notes on the going concern assumption) ................................................................................................ 8(Segment information, etc.) ..................................................................................................................... 81

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for Third 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 third quarter. However, the global political andeconomic outlook remains uncertain, due primarily to US-China trade frictions and tense situation in the Middle Eastcountries.
Within the healthcare industry in which the Group operates, reform of healthcare system is continuing against thebackground of increasing medical fee due to advancement of medical care and declining birthrate and aging society,which require a wide-ranging collaboration and efficient business structure over medium to long term in medical
institutions and industry to develop Community Medical Service Plan.
Under these economic conditions, projects were steadily recorded although there was a last-minute demand andreactionary decrease due to the consumption tax increase implemented in October last year, as well as the Medical Supply
business performed steadily mainly by the efforts to acquire new contracts.
During this cumulative consolidated third quarter, the various factors noted above resulted in net sales of 358,001 million
yen (up 12.9% YoY), operating profit of 13,549 million yen (up 29.1% YoY), ordinary profit of 14,630 million yen (up33.1% YoY), and profit attributable to owners of parent of 8,884 million yen (up 34.5% YoY).
Business results by segment are summarized below.
(i) Total Pack Produce business
The Total Pack Produce business made steady records on the projects although especially in the manufacturer
companies, there was a last-minute demand and reactionary decrease due to the consumption tax increase.
As a result, this segment recorded net sales of 73,988 million yen (up 21.8% YoY) and segment profit (operatingprofit) of 6,793 million yen (up 56.9% YoY).
(ii) Medical Supply business
The Medical Supply business recorded steady growth driven by the efforts toward the increase of new contracts andimprovement in operational efficiency in SPD facilities.
As a result, this segment recorded net sales of 241,359 million yen (up 11.9% YoY) and segment profit (operatingprofit) of 3,546 million yen (up 13.9% YoY).
(iii) Life Care business
The Life Care business demonstrated strong performance by maintaining high occupancy rate.
As a result, this segment recorded net sales of 17,876 million yen (up 0.7% YoY) and segment profit (operatingprofit) of 1,326 million yen (up 1.2% YoY).
(iv) Dispensing Pharmacy business
The Dispensing Pharmacy business performed steadily due to small-scale M&A activities and continuing managerialimprovements.
As a result, this segment recorded net sales of 20,285 million yen (up 6.3% YoY) and segment profit (operatingprofit) of 1,946 million yen (up 25.5% YoY).
(v) OtherResults for other sectors such as veterinary hospital and the security support company were largely as planned.
However, expense related to stock acquisition of a building management service company was recorded.
As a result, this segment recorded net sales of 4,491 million yen (up 17.3% YoY) and segment profit (operatingprofit) of 222 million yen (down 36.7% YoY).

2

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

(2) Analysis of Financial Position
Assets at the end of the consolidated cumulative third quarter under review stood at 308,871 million yen, up 9,659 million
yen from the end of the previous consolidated fiscal year. The primary reasons for this increase included increases of11,066 million yen in cash and deposits, 2,906 million yen in investment securities and 2,090 million yen in merchandiseand finished goods, despite decrease of 8,376 million yen in notes and accounts receivable – trade.
Liabilities stood at 204,301 million yen, up 2,824 million yen from the end of the previous consolidated fiscal year. The
primary reasons for this increase included increase of 2,982 million yen in notes and accounts payable – trade and 2,775
million yen in electronically recorded obligations, despite decreases of 2,492 million yen in income taxes payable and1,548 million yen in long-term loans payable.
Net assets stood at 104,569 million yen, up 6,835 million yen from the end of the previous consolidated fiscal year. The
primary reasons for this increase included increases of 8,884 million yen in retained earnings from profit attributable toowners of parent and 973 million yen in valuation differences on available-for-sale securities, despite decrease of 3,334
million yen in retained earnings due to payment of dividends.
Due to these factors, the equity capital ratio at the end of the consolidated third quarter under review stood at 32.9% (up1.0 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 full fiscal year remain unchanged from the forecasts announced on May 10, 2019.

3

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

2. Quarterly consolidated financial statements and notes thereto(1) Quarterly consolidated balance sheet(Unit: Millions yen)
December 31, 2019

March 31, 2019
AssetsCurrent assets
Cash and deposits

72,39383,459Notes and accounts receivable - trade

97,97589,598

Electronically recorded monetary claims - operating

3,232

4,310

Lease investment assets

3,801

3,546

Merchandise and finished goods

14,034

16,124Work in process

1,471

2,037

648

932

8,109

8,600

(95)

(77)

201,571

208,534

Buildings and structures, net

18,907

18,785

Land14,451

16,120Real estate for rent, net

13,20911,272Other, net

8,084

10,259Total property, plant, and equipment

54,65256,437

9,304

9,028

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

984

Total intangible assets

10,333

10,012

14,683

17,590Investments and other assets
Investment securities
Long-term loans receivable

9,531

7,880

Other

11,062

10,143

Allowance for doubtful accounts(2,624)(1,727)

Total investments and other assets

32,65433,887

97,640100,337

299,212308,871

Total non-current assets
Total assets

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

(Unit: Millions yen)
December 31, 2019

March 31, 2019
Liabilities
Current liabilities
Notes and accounts payable - trade85,371

88,353

Electronically recorded obligations - operating

20,772

23,547

Short-term loans

1,030

1,003

Income taxes payable

4,139

1,647

Provision for bonuses

2,032

960

Other14,83015,778

Total current liabilities

128,176

131,291

Bonds with share acquisition rights

25,11625,097Long-term loans

39,70038,152

Net defined benefit liability

2,811

2,863

Non-current liabilities

Asset retirement obligations
Other
Total non-current liabilities

628

835

5,043

6,060

73,30073,010201,477

204,301

Common stock

15,553

15,553

Capital surplus

23,921

23,895

Total liabilities
Net assets
Shareholders' equity

Retained earnings

66,372

71,922

Treasury stock(13,447)(13,728)

Total shareholders' equity

92,39997,642

3,079

4,053

(84)

(111)

Accumulated other comprehensive income
Valuation differences on available-for-sale securities
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income

26

33

3,021

3,974

Non-controlling interests

2,314

2,952

Total net assets

97,734

104,569

299,212308,871

Total liabilities and net assets

5

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for Third 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 third quarter
Nine months ended
December 31, 2018317,109(Unit: Millions yen)
Nine months ended
December 31, 2019
358,001

Cost of sales

285,144

322,009

Gross profit

31,96535,992

Sales, general, and administrative expenses

21,46822,443Operating profit

10,496

13,549Interest income

216300

Dividend income

135236

Amortization of negative goodwill
Share of profit of entities accounted for using equity
methodForeign exchange profit

1741162033

726

Net sales

Non-operating profit

Reversal of allowance for doubtful accounts

6364

Other233

239

Total non-operating profit

794

1,317

Interest expenses

195

203

Bond issue cost

26–

Non-operating expenses

Other

77

32

Total non-operating expenses

299

235

10,991

14,630Gains on sales of non-current assets

58

194

Total extraordinary profit

58

194

Losses on sales of non-current assets

04

Losses on valuation of investment securities

33

0

Other

1

1

Total extraordinary losses

35

6

Total profit before income taxes

11,013

14,818

Income taxes - current

3,390

4,946

Income taxes - deferred

1,138940

Total income taxes

4,528

5,886

Profit

6,484

8,932

Total ordinary profit
Extraordinary profit

Extraordinary losses

Profit (loss) attributable to non-controlling interests

(122)

47

Profit attributable to owners of parent

6,607

8,884

6

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

Quarterly consolidated statement of comprehensive incomeConsolidated cumulative third quarter
Nine months ended
December 31, 2018
6,484

Profit(Unit: Millions yen)
Nine months ended
December 31, 2019
8,932

Other comprehensive income
Valuation differences on available-for-sale securities
Foreign currency translation adjustments
Remeasurements of defined benefit plans

(836)

973

1(105)

33

7(801)

875

5,683

9,807

Comprehensive income attributable to owners of parent

5,803

9,790

Comprehensive income attributable to non-controlling interests

(119)

17

Total other comprehensive income
Comprehensive income(Breakdown)

7

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

(3) Notes on quarterly consolidated financial statements(Notes on the going concern assumption)
Not applicable(Segment information, etc.)[Segment information]
I
1

Nine months ended December 31, 2018(April 1 – December 31, 2018)
Net sales and income (loss) by reportable segment(Unit: Millions yen)
Reconciliation*2

Amountrecorded inquarterly
consolidated
incomestatement*3

Reportable segment
Total Pack
Producebusiness

MedicalSupplybusinessLife Carebusiness

Dispensing
Pharmacybusiness

Subtotal

Other*1

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

60,762

215,681

17,751

19,086313,2813,828

317,109-317,109

1,466

894

139

1,404

3,903

190

4,094

(4,094)-62,228

216,575

17,89020,490317,185

4,018

321,203(4,094)

317,109

4,329
3,112
1,310
1,551
10,303352
10,656(159)
10,496
Segment profit
Notes:
1. The “Other” category includes businesses that are not included in reportable segments, including the veterinary hospitalbusiness, sales of physical and chemical apparatus business, and the security business.
2. Reconciliation items for segment profit of ¥(159) million yen include intersegment elimination of ¥(65) million yen andcorporate expenses not allocated to the reportable segments of ¥(96) million yen. Corporate expenses consist primarily ofoperating expenses of the Company’s head office and selling, general, and administrative expenses that are not attributable
to any reportable segments.
3. Segment profit is reconciled to the operating profit reported in the quarterly consolidated statement of income.

2

Information about loss on impairment of non-current assets and goodwill
No significant impairment losses on non-current assets, significant changes in amounts of goodwill, or significant gains onbargain purchases were recognized during the nine months ended December 31, 2018.

8

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

IINine months ended December 31, 2019 (April 1 – December 31, 2019)

1Net sales and income (loss) by reportable segment(Unit: Millions yen)
Reconciliation*2

Amountrecorded inquarterly
consolidated
incomestatement*3

Reportable segment
Total Pack
Producebusiness

MedicalSupplybusinessLife Carebusiness

Dispensing
Pharmacybusiness

Subtotal

Other*1

Total

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

73,988241,359

17,876

20,285353,510

4,491

358,001-

358,001

2,146

801

163

4,320

7,431

246

7,678

(7,678)-76,134242,160

18,03924,606360,941

4,738

365,679(7,678)358,001

6,793
3,546
1,326
1,946
13,612
222
13,834(285)
13,549Segment profit
Notes:
1. The “Other” category includes businesses that are not included in reportable segments, including the veterinary hospitalbusiness, sales of physical and chemical apparatus business, and the security business.
2. Reconciliation items for segment profit of ¥(285) million yen include intersegment elimination of ¥(61) million yen andcorporate expenses not allocated to the reportable segments of ¥(224) million yen. Corporate expenses consist primarily ofoperating expenses of the Company’s head office and seles, general, and administrative expenses that are not attributable toany reportable segments.
3. Segment profit is reconciled to the operating profit reported in the quarterly consolidated statement of income.

2Information about loss on impairment of non-current assets and goodwill
No significant impairment losses on non-current assets, significant changes in amounts of goodwill, or significant gains on
bargain purchases were recognized during the nine months ended December 31, 2019.

9