Summary of Financial Statements
for Third Quarter of Fiscal Year Ending March 31, 2023 [Japanese GAAP](Consolidated)
February 7, 2023
Name of listed company:

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: February 10, 2023
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 third quarter of fiscal year ending March 31, 2023
(April 1, 2022 – December 31, 2022)(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)%

Q3 FY ending March 2023
407,120
12.1
13,4168.6
Q3 FY ended March 2022
363,154
12,359(14.6)－
Note: Comprehensive income: Q3 FY ending March 2023: ¥9,264 million (63.9%)
Q3 FY ended March 2022: ¥5,653 million ((46.9)%)
Diluted net
Net income per shareincome per share(Yen)(Million yen)%

(Million yen)%

12,895
12,3744.2(16.8)

7,450
6,983

6.7
(20.9)(Yen)

Q3 FY ending March 2023
78.96
71.57
Q3 FY ended March 2022
74.01
67.10
Note: As the Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan (ASBJ) Statement No. 29,
March 31, 2020) and relevant revised ASBJ regulations have been applied from the beginning of previous first quarter ofconsolidated fiscal year, the figures for the third quarter of fiscal year ended March 31, 2022 are those after retrospectively applying
the accounting standard and relevant revised ASBJ regulations. Due to the above reason, YoY rate of change in net sales for the
fiscal year ended March 31, 2022 are not shown.

(2) Consolidated financial condition
Total assets

Net assets(Million yen)

Equity capital ratio(Million yen)%

Q3 FY ending March 2023
370,136
126,906
33.4
FY ended March 2022
335,074
122,318
35.3
Reference: Equity: Q3 FY ending March 2023: ¥123,733 million; FY ended March 2022: ¥118,289 million

2. Dividends
End Q1(Yen)––

End Q2
(Yen)
0.00
0.00

Annual dividends
End Q3(Yen)––

FY ended March 2022
FY ending March 2023
FY ending March 2023
(forecast)
Note: Revisions made in most recently announced dividend forecasts: None

Year-end
(Yen)
41.00

Total
(Yen)
41.00

42.00

42.00

3. Forecast of consolidated financial results for the fiscal year ending March 31, 2023
(April 1, 2022 – March 31, 2023)(Percentages represent changes from previous year.)
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)%%
Full-year
560,000
8.9
21,0002.4
21,000(1.4)
12,5002.7
132.49Notes: 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 stocks)(i) Number of shares issued and outstanding
Q3 FY endingat the end of the period (including treasury March 2023
stock)(ii) Number of treasury stock at the end of the Q3 FY ending
March 2023
period(iii) Average number of shares during theQ3 FY ending
period (quarterly cumulative)
March 2023

None
None
None
None
None
None

101,669,400 shares

FY ended March
2022

101,669,400 shares

7,319,138 shares

FY ended March
2022

7,319,116 shares

94,350,266 shares

Q3 FY ended
March 2022

94,350,312 shares* This 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 at thetime this document was prepared, and certain assumptions considered reasonable. Actual results may differ significantly fromforecasts due to various factors. For assumptions underlying forecasts of financial results, notes on use of forecasts of financial
results, and other related 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 Third Quarter of Fiscal Year Ending March 31, 2023

 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.

Quarterly 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(Segment information, etc.) .................................................................................................................

81

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for Third Quarter of Fiscal Year Ending March 31, 2023

Qualitative information on business results(1) Description of business results
While there are signs of recovery in domestic socio-economic activities due to the relaxation of movement restrictions
associated with the spread of COVID-19 and the impact of the government's tourism support measures, the outlook
remains uncertain due to the soring resource prices, rising prices of commodities, and the rapid depreciation of the yencaused by the prolonged situation in Russia and Ukraine.
In the healthcare industry to which the Group belongs, there is a need to build an efficient, effective, and high-quality
medical system that can deal with the event such as COVID-19 spread, and to realize medical care which simultaneously
achieves safety, security and quality, the promotion of initiatives including work style reform for the doctors are also
required.
Under these circumstances, while the Group’s business was entirely affected by soaring prices of energy and raw
materials, the business performance generally progressed according to the plan due to the smooth progress of projects in
Total Pack Produce business. Furthermore, the Group keep on promoting 4 core strategic measures set forth in themedium-term management plan, “Further high growth of core business”, “Further expand value”, “Functionalorganization enhancement strategy”, and “Activities for sustainability”.
For the third quarter of the current consolidated cumulative period, the various factors noted above resulted in net sales of407,120 million yen (up 12.1% YoY), operating profit of 13,416 million yen (up 8.6% YoY), ordinary profit of 12,895
million yen (up 4.2% YoY), and profit attributable to owners of the parent of 7,450 million yen (up 6.7% YoY).
Business results by segment are summarized below.
(i) Total Pack Produce businessIn Total Pack Produce business, manufacturers still struggled to procure electrical components and were affected bysoaring raw material prices, and subsidiaries in Myanmar were also subjected to financial sanction by westerncountries. However, the projects’ completion and new orders were steadily recorded. Also, in heavy ion therapy
center, the number of new outpatients and treatment cases increased due to the expansion of treatment areas coveredby national insurance from April 2022.
As a result, this segment recorded net sales of 77,904 million yen (up 39.5% YoY) and segment profit (operating
profit) of 4,899 million yen (up 21.0% YoY).
(ii) Medical Supply business
In Medical Supply business, while the business was affected by soaring raw material prices and logistic costs, newly
contracted SPD facilities steadily operated. Furthermore, the demand for medical materials recovered due to theincrease in the number of surgical cases.
As a result, this segment recorded net sales of 282,204 million yen (up 5.8% YoY) and segment profit (operating
profit) of 4,372 million yen (up 4.4% YoY).
(iii) Lifecare business
In Lifecare business, the food service business was affected by soaring ingredient prices, and new M&A-related
expenses were recorded. The nursing care business continued to maintain high occupancy rate, however it was also
affected by soaring utility costs.
As a result, this segment recorded net sales of 24,331 million yen (up 28.8% YoY) and segment profit (operating
profit) of 1,709 million yen (down 6.3% YoY).
(iv) Dispensing Pharmacy business
In Dispensing Pharmacy business, despite the implementation of small-scale M&As and the efforts in improving
management efficiency, the business poorly performed due to the impact of drug price revisions and recording
upfront costs for new store openings.
As a result, this segment recorded net sales of 22,680 million yen (up 4.8% YoY) and segment profit (operating
profit) of 2,322 million yen (down 4.9% YoY)2

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for Third Quarter of Fiscal Year Ending March 31, 2023

(2) Analysis of Financial Position
Assets at the end of the consolidated third quarter under review stood at 370,136 million yen, up 35,061 million yen
from the end of the previous consolidated fiscal year. The primary reasons for this increase included increases of
10,783 million yen in cash and deposits, 6,394 million yen in goodwill, 5,350 million yen in merchandise and finishedgoods, 3,504 million yen in buildings and structures, despite decrease of 1,833 million yen in notes, accounts
receivable, and contract asset.
Liabilities stood at 243,229 million yen, up 30,473 million yen from the end of the previous consolidated fiscal year.
The primary reasons for this increase included increases of 9,153 million yen in short-term loans payable, 7,257
million yen in electronically recorded obligations - operating, 4,189 million yen in long-term loans payable, despite
decrease of 2,848 million yen in income taxes payable.
Net assets stood at 126,906 million yen, up 4,587 million yen from the end of the previous consolidated fiscal year.
The primary reasons for this increase included increases of 7,450 million yen in retained earnings from profit
attributable to owners of parent, despite decrease of 3,868 million yen in retained earnings due to cash dividends paid,
and 855 million yen in non-controlling interest.
As a result of all these factors, equity capital ratio at the end of the consolidated third quarter under review stood at
33.4%. (down 1.9% 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 fiscal year remain unchanged from the forecasts announced on May 10, 2022.

3

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for Third Quarter of Fiscal Year Ending March 31, 2023

2. Quarterly consolidated financial statements and notes thereto(1) Quarterly consolidated balance sheet(Unit: Million yen)
Q3 Fiscal year ending March
31, 2023 (Dec. 31, 2022)

Fiscal year ended
March 31, 2022
AssetsCurrent assets
Cash and deposits
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

473,808113,429
4,720
3,634
18,778
2,317
1,010
9,724
(895)
226,529

84,591
111,596
5,855
3,493
24,128
3,693
1,703
11,387(1,007)
245,442

20,245
16,293
10,993
10,46457,99523,74918,087
11,005
12,546
65,388

8,336
1,017
9,354

14,7301,179
15,91023,608
7,518
11,810(1,741)
41,195
108,545
335,074

25,6297,233
12,311(1,780)43,394
124,693
370,136SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for Third Quarter of Fiscal Year Ending March 31, 2023

Fiscal year ended
March 31, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term loans payable
Income taxes payable
Provision for bonuses
Current portion of bonds payable
Other
Total current liabilities
Non-current liabilities
Bonds with share acquisition rights
Long-term loans payable
Net defined benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Accumulated other comprehensive income
Valuation differences on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

5(Unit: Million yen)
Q3 Fiscal year ending March
31, 2023 (Dec 31, 2022)

100,071
22,173
2,401
4,980
2,461
－
16,281
148,371

104,073
29,431
11,5542,132
1,395
25,022
23,677
197,288

25,041
29,970
2,938
873
5,560
64,384
212,756－
34,160
3,400
1,098
7,282
45,941
243,229

15,55323,90891,964(15,526)
115,899

15,55323,533
95,546(15,526)
119,105

1,503
1
842
44
2,390
4,028
122,318
335,074

3,254
2
1,329
41
4,628
3,172
126,906
370,136SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for Third Quarter of Fiscal Year Ending March 31, 2023

(2) Quarterly consolidated statement of income and consolidated statement of comprehensive income
Quarterly consolidated statement of income
Consolidated cumulative third quarter

Net sales
Cost of sales
Gross profit
Sales, general, and administrative expenses
Operating profit
Non-operating profit
Interest income
Dividend income
Equity gains of affiliated companies
Reversal of allowance for doubtful accounts
Other
Total non-operating profit
Non-operating expenses
Interest expenses
Equity losses of affiliated companies
Foreign exchange loss
Commission paid
Other
Total non-operating expenses
Ordinary profit
Extraordinary profit
Gains on sales of non-current assets
Subsidy income
Other
Total extraordinary profit
Extraordinary losses
Losses on sales of non-current assets
Losses on retirement of non-current assets
Other
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitLosses attributable to non-controlling interests
Profit attributable to owners of parent

6

Nine months ended
December 31, 2021
363,154
326,745
36,40824,04912,359(Unit: Million yen)
Nine months ended
December 31, 2022
407,120
365,10742,012
28,596
13,416

212
153
74
2
266
708

237
169
－
9
351
768

214
－
367
36
74
693
12,374

306
7
929
19
26
1,289
12,895

1
－
1
3

17
45
5
69

1
3
－
5
12,372
4,072
1,410
5,483
6,889
(94)
6,983

2
25
3
31
12,933
4,758
1,104
5,863
7,070
(379)
7,450

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for Third Quarter of Fiscal Year Ending March 31, 2023

Quarterly consolidated statement of comprehensive income
Consolidated cumulative third quarter

Nine months ended
December 31, 2021
6,889

Net income
Other comprehensive income
Valuation differences on available-for-sale securities(1,575)
Foreign currency translation adjustments
323
Remeasurements of defined benefit plans
16
Share of other comprehensive income of entities accounted for using equity method0
Total other comprehensive income(1,235)Comprehensive income
5,653(Breakdown)Comprehensive income attributable to owners of parent
5,671
Comprehensive income attributable to non-controlling interests(17)

7(Unit: Million yen)
Nine months ended
December 31, 2022
7,070
1,751
433
(5)
14
2,194
9,264
9,687
(422)

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for Third Quarter of Fiscal Year Ending March 31, 2023

(3) Notes on 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 third quarter (April 1, 2021 – December 31, 2021)

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

MedicalSupplybusiness

Lifecarebusiness

Dispensing
Pharmacybusiness

Adjustments*1

Amount recordedon consolidated
financialstatements*2

Total

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

55,864

266,757

18,887

21,644363,154－363,154

1,318

967

135

80

2,502

(2,502)－

57,182

267,725

19,023

21,724

365,656(2,502)

363,154

4,049
4,187
1,825
2,443
12,504(145)
12,359Segment profit
Notes: 1 The figure of (145) million yen in adjustments to segment profit includes (54) million yen in cancellation ofintersegment transactions and (87) million yen in companywide costs not allocated among reportable segments.
These companywide costs consist mainly of parent company’s operating expenses and sales, general, andadministrative expenses not attributable to individual 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 this consolidated fiscal year, due to the change in management accounting categories, theCompany has changed the classification of reportable segments, such as including businesses that were previously includedin "Other" into "Total Pack Produce business".

3 Information on impairment loss and goodwill on fixed assets by reportable segments
No material impairment losses, changes in the amount of goodwill, and material gains on negative goodwill on fixed assets
was recognized in the third quarter of the consolidated fiscal year.

8

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for Third Quarter of Fiscal Year Ending March 31, 2023

II.

Consolidated cumulative third quarter under review (April 1, 2022 – December 31, 2022)

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

MedicalSupplybusiness

Dispensing
Pharmacybusiness

Lifecarebusiness

Adjustments*1

Amount recordedon consolidated
financialstatements*2

Total

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

77,904282,204

24,331

22,680407,120－

407,120

2,141

1,215

66

80

3,504

(3,504)－80,046

283,419

24,39822,760410,624(3,504)

407,120

4,899
4,372
1,709
2,322
13,303113
13,416
Segment profit
Notes: 1 The figure of 113 million yen in adjustments to segment profit includes (73) million yen in cancellation ofintersegment transactions and 191 million yen in companywide costs not allocated among reportable segments.
These companywide costs consist mainly of parent company’s operating expenses and sales, general, andadministrative expenses not attributable to individual reportable segments.
2 Segment profit is adjusted against the operating profit reported on the quarterly consolidated statement of income.

2 Notes on assets in reportable segments, etc.
During the third quarter consolidated cumulative period, we acquired shares of Kingrun Co., Ltd. along with its 11
subsidiaries and added it to the scope of consolidation.
As a result of this event, assets in“Total Pack Produce Business”segment increased by 26,202 million yen compared to theend of the previous 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 fluctuations in the amount of goodwill)
During the third quarter consolidated cumulative period, we acquired shares of Kingrun Co., Ltd. along with its 11
subsidiaries and added it to the scope of consolidation.
The increase in goodwill in the “Total Pack Produce Business” segment due to the event is 7,101 million yen in the third
quarter of the current consolidated cumulative period.
The amount of goodwill is a tentatively calculated amount as the allocation of the acquisition cost has not been completed asof the end of the third quarter consolidated fiscal year.
(significant gain on negative goodwill)
Not applicable9