Summary of Financial Statements
for Second Quarter of Fiscal Year Ending March 31, 2023 [Japanese GAAP](Consolidated)
November 8, 2022
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: November 11, 2022
Scheduled start date of dividend payments: –Supplementary briefing materials on results: No
Briefing on quarterly results: Yes (for institutional investors and analysts)(All figures are rounded down to the nearest million yen.)

1. Consolidated financial results for the second quarter of fiscal year ending March 31, 2023
(April 1, 2022 – September 30, 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)%

Q2 FY ending March 2023
263,520
12.3
7,971
5.0
Q2 FY ended March 2022
234,663
–
7,593
(3.1)
Note: Comprehensive income: Q2 FY ending March 2023: ¥6,774 million (84.6%)
Q2 FY ended March 2022: ¥3,670 million ((42.2)%)
Diluted net
Net income per shareincome per share(Yen)(Million yen)%

(Million yen)

%

7,498
7,378

1.6
(10.8)

4,143
4,118

0.6
(12.6)(Yen)

Q2 FY ending March 2023
43.92
39.80
Q2 FY ended March 2022
43.65
39.57
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 second 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)%

Q2 FY ending March 2023
360,355
125,267
33.6
FY ended March 2022
335,074
122,318
35.3
Reference: Equity: Q2 FY ending March 2023: ¥121,212 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)–

Year-end
(Yen)
41.00

Total
(Yen)
41.00

–

42.00

42.00

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

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
Q2 FY endingat the end of the period (including treasury March 2023
stock)(ii) Number of treasury stock at the end of the Q2 FY ending
March 2023
period(iii) Average number of shares during theQ2 FY ending
March 2023
period (quarterly cumulative)

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

94,350,268 shares

Q2 FY ended
March 2022

94,350,320 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 atthe time this document was prepared, and certain assumptions considered reasonable. Actual results may differ significantly
from forecasts due to various factors. For assumptions underlying forecasts of financial results, notes on use of forecasts offinancial results, and other related information, please refer to “Information on consolidated financial forecasts and otherforward-looking statements” on page 3 of the [attached materials].

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for Second 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)

Quarterly consolidated statement of cash flows ....................................................................................

8(4)

Notes on quarterly consolidated financial statements ............................................................................

10(Notes on the going concern assumption) ............................................................................................

10(Notes on marked changes to shareholders' equity) .............................................................................

10(Segment information, etc.) .................................................................................................................

101

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

1. Qualitative information on business results(1) Description of business results
The Japanese economy during the second quarter of the current consolidated cumulative period, the future outlook
remains uncertain due to the soaring resource prices caused by the protracted situation in Russia and Ukraine, inflation,and sharp depreciation of the yen, though the economy is expected to be recovered as the number of infected cases
decrease while the impact of COVID-19 has been protracted.
There is a need to build an efficient, effective, and high-quality medical care system that can respond to emergency basedon the experience during the COVID-19 "7th wave" that the difficulty of providing medical services temporarily causedby tightness of fever outpatients and the shortage of human resources by the spread of the infection among medical
workers.
Under these circumstances, projects in the Total Pack Produce business has been progressing smoothly, and Kingrun Co.,
Ltd. has newly joined the Group. However, the entire business in the Group was affected by soaring prices of energy andraw materials.
For the second quarter of the current consolidated cumulative period, the various factors noted above resulted in net salesof 263,520 million yen (up 12.3% YoY), operating profit of 7,971 million yen (up 5.0% YoY), ordinary profit of 7,498
million yen (up 1.6% YoY), and profit attributable to owners of the parent of 4,143 million yen (up 0.6% YoY).
Business results by segment are summarized below.
(i) Total Pack Produce businessIn Total Pack Produce business, manufacturers were affected by difficulties in procuring electrical components andsoaring raw material prices, on the other hand, 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 ofareas covered by insurance from April 2022.
As a result, this segment recorded net sales of 48,651 million yen (up 40.2% YoY) and segment profit (operating
profit) of 2,684 million yen (up 20.7% YoY).
(ii) Medical Supply business
In Medical Supply business, although the number of projects with the subsidy budget for infection control measuresdecreased, newly contracted SPD facilities steadily operated. Furthermore, the demand for medical materials
recovered thanks to the increase in the number of surgical cases.
As a result, this segment recorded net sales of 184,681 million yen (up 6.5% YoY) and segment profit (operating
profit) of 2,687 million yen (up 1.6% YoY).
(iii) Lifecare business
In Lifecare business, the food service business was affected by the soaring ingredient prices, and new M&A-related
expenses were recorded. The nursing care business continued to maintain high occupancy rate and made progress in
improvement management efficiency.
As a result, this segment recorded net sales of 15,472 million yen (up 23.7% YoY) and segment profit (operating
profit) of 1,111 million yen (down 10.4% 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 performance remained weak due to the impact of drug price revisions andrecording upfront costs for new store openings.
As a result, this segment recorded net sales of 14,715 million yen (up 4.5% YoY) and segment profit (operating
profit) of 1,419 million yen (down 8.2% YoY)

(2) Analysis of Financial Position(i) Assets, liabilities, and net assets
Assets at the end of the consolidated second quarter under review stood at 360,355 million yen, up 25,280 million
yen from the end of the previous consolidated fiscal year. The primary reasons for this increase included increases of
7,115 million yen in goodwill, 5,549 million yen in cash and deposits, 3,152 million yen in buildings and structures,
2,715 million yen in merchandise and finished goods, despite decrease of 3,928 million yen in notes, accounts
receivable, and contract asset.
Liabilities stood at 235,087 million yen, up 22,331 million yen from the end of the previous consolidated fiscal year.
The primary reasons for this increase included increases of 9,302 million yen in short-term loans payable, 5,142
million yen in long-term loans payable, 1,466 million yen in electronically recorded obligations - operating, despite
decrease of 1,449 million yen in notes and accounts payable - trade.
Net assets stood at 125,267 million yen, up 2,949 million yen from the end of the previous consolidated fiscal year.
The primary reasons for this increase included increases of 4,143 million yen in retained earnings from profit
attributable to owners of parent, 1,357 million yen in valuation differences on available-for-sale securities, despite
decrease of 3,868 million yen in retained earnings due to cash dividends paid.
2

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

As a result of all these factors, equity capital ratio at the end of the consolidated second quarter under review stood at
33.6%. (down 1.7% from the end of the previous consolidated fiscal year)(ii) Cash flow
Net cash provided by operating activities during the consolidated cumulative second quarter under review totaled
7,046 million yen (proceeds up 4,515 million yen from the same period in the previous consolidated fiscal year).
Major contributing factors include decrease of 7,582 million yen in notes and accounts receivable - trade, 7,543
million yen in profit before income taxes, despite the payment of 4,648 million yen for income taxes, and decrease of
4,078 million yen in notes and accounts payable - trade.
Net cash used in investing activities totaled 5,021 million yen (expenses up 2,833 million yen from the same period
in the previous consolidated fiscal year). Major contributing factors include expense of 2,998 million yen forpurchase of shares subsidiaries resulting in change in scope of consolidation, expense of 1,395 million yen forpurchase of property, plant, and equipment, despite proceeds of 382 million yen from shares of subsidiaries resulting
in change in scope of consolidation.
Net cash used in financing activities totaled 2,514 million yen (proceeds up 7,825 million yen from the same period
in the previous consolidated fiscal year). Major contributing factors include increase of 8,830 million yen in shortterm loans – net, despite payment of 3,868 million yen for cash dividends paid, and expense of 2,763 million yen for
repayments of long-term loans payable.
As the result of the above factors, the balance of cash and cash equivalents at the end of the consolidated cumulative
second quarter under review stood at 77,484 million yen, up 4,680 million yen 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 Second Quarter of Fiscal Year Ending March 31, 2023

2. Quarterly consolidated financial statements and notes thereto(1) Quarterly consolidated balance sheet(Unit: Million yen)
Q2 Fiscal year ending March
31, 2023 (Sep. 30, 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

79,357
109,501
4,605
3,536
21,493
3,207
1,344
10,972(1,112)
232,907

20,245
16,293
10,993
10,46457,99523,397
18,123
11,061
13,556
66,139

8,336
1,017
9,354

15,452
1,261
16,71323,608
7,518
11,810(1,741)
41,195
108,545
335,074

25,198
7,386
13,793(1,784)
44,595
127,447
360,355SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for Second 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
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)
Q2 Fiscal year ending March
31, 2023 (Sep 30, 2022)

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

98,622
23,64011,704
4,131
2,453
22,702
163,254

25,041
29,970
2,938
873
5,560
64,384
212,756

25,02935,113
3,362
1,099
7,227
71,832
235,087

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

15,55323,90892,239(15,526)
116,174

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

2,860
1
2,135
41
5,038
4,054
125,267
360,355SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for Second 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 second 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
Gains on sales of investment securities
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

Six months ended
September 30, 2021
234,663
211,039
23,623
16,030
7,593(Unit: Million yen)Six months ended
September 30, 2022
263,520
236,793
26,72618,755
7,971

142
103
90
7
155
498

158
115
6
219
498

142
511
29
30
714
7,378

190
10
743
13
14
971
7,498

1
1
2

17
45
0
64

1
2
3
7,376
2,777
606
3,383
3,993
(124)
4,118

2
13
3
18
7,543
3,378
304
3,683
3,860
(283)
4,143

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

Quarterly consolidated statement of comprehensive income
Consolidated cumulative second quarter

Six months ended
September 30, 2021
3,993

Net income
Other comprehensive income
Valuation differences on available-for-sale securities(369)
Foreign currency translation adjustments
41
Remeasurements of defined benefit plans
10
Share of other comprehensive income of entities accounted for using equity method(5)
Total other comprehensive income(323)
Comprehensive income
3,670(Breakdown)Comprehensive income attributable to owners of parent
3,788
Comprehensive income attributable to non-controlling interests
(118)

7

(Unit: Million yen)Six months ended
September 30, 2022
3,860
1,357
1,541
(4)
20
2,914
6,774
6,791
(16)

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

(3) Consolidated statement of cash flows(Unit: Million yen)Six months ended
September 30, 2022

Six months ended
September 30, 2021
Cash flows from operating activities
Profit before income taxes

7,376

7,543

Depreciation and amortization

1,738

2,189

Amortization of goodwill

934

1,176

Share of loss (profit) of entities accounted for using equity method

(90)

10

Increase (decrease) in provision for bonuses

(232)

(465)

50

201

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in net defined benefit liability
Interest and dividend income
Interest expenses

58

40

(245)

(273)

142

190

21,917

7,582

Decrease (increase) in inventories(2,446)(3,202)

Increase (decrease) in notes and accounts payable – trade(19,547)(4,078)Decrease (increase) in notes and accounts receivable – trade

Decrease (increase) in lease investment assets

82

98

Other

(1,321)

440

Subtotal

8,417

11,453356

432

Interest and dividend income received
Interest expenses paid

(144)

(190)

Income taxes paid

(6,098)(4,648)Net cash provided by operating activities

2,531

7,046

Payments into time deposits

(92)

(185)

Proceeds from withdrawal of time deposits

86

240

Purchase of property, plant, and equipment(1,660)(1,395)

Cash flows from investing activities

Proceeds from sales of property, plant, and equipment

22

114

Purchase of intangible assets

(158)

(307)

Payments of short-term loans receivable

(200)

(107)

Collection of long-term loans receivable

136

198

Purchase of investment securities

(7)

(116)

(121)

-

Purchase of shares of subsidiaries and associates
Proceeds from shares of subsidiaries resulting in change inscope of consolidation
Purchase of shares of subsidiaries resulting in change inscope of consolidation
Other
Net cash used in investing activities

8

24

382

(117)

(2,998)

(99)

(846)

(2,187)(5,021)SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for Second Quarter of Fiscal Year Ending March 31, 2023

(Unit: Million yen)Six months ended
September 30, 2022

Six months ended
September 30, 2021
Cash flows from financing activities
627

Increase (decrease) in short-term loans-net

8,830

Proceeds from long-term loans payable

262

471

Repayments of long-term loans payable(2,235)(2,763)Purchase of treasury stock
Cash dividends paid

(0)

(0)

(3,774)(3,868)Cash dividends paid to non-controlling interests

(16)

(22)

Repayments of lease obligations

(125)

(132)

Other
Net cash used in financing activities

(48)

-

(5,310)

2,514

(41)

139

Net increase (decrease) in cash and cash equivalents(5,009)4,680

Cash and cash equivalents at the beginning of the period
Increase in cash and cash equivalents from newly
consolidated subsidiary
Cash and cash equivalents at the end of the period

72,95072,804

8-

67,94977,484

Effect of exchange rate change on cash and cash equivalents

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

(4) 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 second quarter (April 1, 2021 – September 30, 2021)

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

34,705

173,368

12,504

14,084

234,663－234,663

864

696

90

45

1,696

(1,696)－35,570174,064

12,594

14,129236,359(1,696)234,663

Segment profit
2,224
2,646
1,240
1,547
7,658
(64)
7,593
Notes: 1 The figure of (64) million yen in adjustments to segment profit includes (36) million yen in cancellation ofintersegment transactions and (21) 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 second quarter of the consolidated fiscal year.

10

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

II.

Consolidated cumulative second quarter under review (April 1, 2022 – September 30, 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

48,651

184,681

15,472

14,715263,520－

263,520

1,341

722

28

49

2,141

(2,141)－

49,992

185,404

15,501

14,764

265,661(2,141)

263,520

Segment profit
2,684
2,687
1,111
1,419
7,903
67
7,971
Notes: 1 The figure of 67 million yen in adjustments to segment profit includes (29) million yen in cancellation ofintersegment transactions and 98 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 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.
During the second quarter consolidated cumulative period, we acquired shares of Kingrun Co., Ltd. and added it to the scopeof 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 second quarter consolidated cumulative period, we acquired shares of Kingrun Co., Ltd. and added it to the scopeof consolidation.
The increase in goodwill in the “Total Pack Produce Business” segment due to the event is 7,101 million yen in the second
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 second quarter consolidated fiscal year.
(significant gain on negative goodwill)
Not applicable11