Summary of Financial Statements
for Second Quarter of Fiscal Year Ending March 31, 2022 [Japanese GAAP](Consolidated)
November 9, 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: November 12, 2021 Scheduled start date of dividend payments: –Supplementary briefing materials on results: Yes
Briefing on quarterly results:
Yes (for institutional investors and analysts)
Name of listed company:(All figures are rounded down to the nearest million yen.)

1. Consolidated financial results for the second quarter of fiscal year ending March 31, 2022
(April 1, 2021 – September 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)

Q2 FY ending March 2022
234,663
–
7,593
(3.1)
Q2 FY ended March 2021
220,731(8.9)
7,832(22.3)
Note: Comprehensive income: Q2 FY ending March 2022: ¥3,670 million ((42.2) %)Q2 FY ended March 2021: ¥6,352 million ((10.6) %)Diluted net
Net income per shareincome per share
Q2 FY ending March 2022
Q2 FY ended March 2021

(Yen)

(Yen)

43.65
49.82

39.57
45.19

7,378
8,268

%

(Million yen)%

(10.8)(24.8)

4,118
4,711

(12.6)(29.6)

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 second 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,
2021.

(2) Consolidated financial condition
Total assets

Net assets(Million yen)

Equity capital ratio(Million yen)%

Q2 FY ending March 2022
308,496
114,938
36.1
FY ended March 2021
334,498
115,103
33.3
Reference: Equity: Q2 FY ending March 2022: ¥111,464 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–
0.00
FY ending March 2022
(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.)
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
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 fiscal year ending March 2022 is the value after
applying the relevant accounting standards. Due to the above reason, 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
Q2 FY ending
the end of the period (including treasury
March 2022
stock)Q2 FY ending(ii) Number of treasury stock at the end of the
March 2022
period(iii) Average number of shares during the period Q2 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

94,350,320 shares

Q2 FY ended
March 2021

94,573,488 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, 2021.

* 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 Second 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)

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(Changes in accounting policy) ...................................................................................................... 10(Segment information, etc.) .............................................................................................................11

1

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for Second 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 second quarter of the current consolidated cumulative period, state of emergency had
been declared intermittently, and consumption movements weakened due to restrictions on economic activities andcontinued self-quarantine. Economy remains in a difficult situation and future outlook still remain uncertain.
Healthcare industry in which the Group operates, while the medical care system temporarily became overwhelmed thanever due to the fifth wave of the spread of COVID-19, the industry trend has recovered compared to the same period lastyear due to the rapid decrease in the number of newly infected people due to the progress of vaccination.
In the Group’s performance under such conditions, the business performed poorly in Total Pack Produce business since
the sizes of completed projects were smaller and the business plan is also particularly focused on the second half thanusual. In Medical Supply business, demand for medical materials recovered due to improvements in the occupancy rate of
medical institutions and the number of surgical cases compared to the same period last year. This recovery of demand
allowed the business to perform firmly. In addition, the industry's first automated logistic center "Osaka Solution Center",which manages all consumables inventories collectively with RFID, has started full-scale operation. In Lifecare business,
occupancy rate has maintained high in the pay nursing homes, and the dispensing pharmacy business also performed
steadily due to M&A of small-sized stores.
For the second quarter of the current consolidated cumulative period, the various factors noted above resulted in net salesof 234,663 million yen (The cumulative consolidated period for the same quarter of the previous year: 220,731 millionyen), operating profit of 7,593 million yen (down 3.1% YoY), ordinary profit of 7,378 million yen (down 10.8% YoY),
and profit attributable to owners of parent of 4,118 million yen (down 12.6% 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 second quarter of the previous fiscal year. For details, please refer to “2. Quarterly
consolidated financial statements and notes thereto (4) 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 second 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 and the renovation works of air
conditioning system were favorable in manufacturing companies, however, the business performance was weakoverall because the plan of completion of many projects are placed in the second half, and the political changes andspread of COVID-19 in Myanmar subsidiary influenced the performance. On the other hand, we have been newly
undertaken various services for infectious control, including the maintenance and operation of the Osaka Corona
Large-Scale Medical and Medical Care Center.
As a result, this segment recorded net sales of 34,705 million yen (The cumulative consolidated period for the samequarter of the previous year: 39,234 million yen) and segment profit (operating profit) of 2,224 million yen (down
26.6% YoY).
(ii) Medical Supply business
In Medical Supply business, the business performance was firm compared to the same period last year since thedemand for medical materials recovered due to improvements in the occupancy rate of medical institutions and thenumber of surgical cases. Also, an efficient management and operation system has been prepared with the start offull-scale operation of "Osaka Solution Center" which is the automated logistic center for medical consumables.
As a result, this segment recorded net sales of 173,368 million yen (The cumulative consolidated period for the samequarter of the previous year: 156,029 million yen) and segment profit (operating profit) of 2,646 million yen (up11.4% YoY).
(iii) Lifecare business
In Lifecare business, the business performed favorable with high occupancy rate due to the success in strict infection
control measures, etc.
As a result, this segment recorded net sales of 12,504 million yen (The cumulative consolidated period for the samequarter of the previous year: 12,262 million yen) and segment profit (operating profit) of 1,240 million yen (up 8.9%
YoY).

2

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for Second Quarter of Fiscal Year Ending March 31, 2022(iv) Dispensing Pharmacy business
In Dispensing Pharmacy business, the business performance was firm due to the improvement in avoidance on
medical consultations compared to the same period last year. Furthermore, newly developed stores and M&A ofsmall-sized stores contributed to the performance.
As a result, this segment recorded net sales of 14,084 million yen (The cumulative consolidated period for the samequarter of the previous year: 13,205 million yen) and segment profit (operating profit) of 1,547 million yen (up 19.0%
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 308,496 million yen, down 26,002 million yen
from the end of the previous consolidated fiscal year. The primary reasons for this decline included decreases of 21,628
million yen in notes, accounts receivable, and contract asset, and 4,965 million yen in cash and deposits despite increases
of 1,416 million yen in merchandise and finished goods, and 965 million yen in buildings and structures.
Liabilities stood at 193,557 million yen, down 25,837 million yen from the end of the previous consolidated fiscal year.
The primary reasons for this decline included decreases of 17,258 million yen in notes and accounts payable – trade, and3,161 million yen in income taxes payable, and 2,274 million yen in electronically recorded obligations - operating
despite increases of 809 million yen in short-term loans payable.
Net assets were 114,938 million yen, down 164 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,
369 million yen in valuation differences on available-for-sale securities despite increases of 4,118 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 second quarter under review stood at 36.1%. (up 2.8% fromthe 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 2,531
million yen (up 695 million yen from the same period in the previous consolidated fiscal year). Major contributing factors
include decrease of 21,917 million yen in notes and accounts receivable – trade, and record of 7,376 million yen in profit
before income taxes despite decrease 19,547 million yen in notes and accounts payable – trade, and payment of 6,098
million yen for income taxes.
Net cash used in investing activities totaled 2,187 million yen (down 13,966 million yen from the same period in theprevious consolidated fiscal year). Major contributing factors include expense of 1,660 million yen for purchase ofproperty, plant, and equipment.
Net cash used in financing activities totaled 5,310 million yen (up 802 million yen from the same period in the previous
consolidated fiscal year). Major contributing factors include payment of 3,774 million yen for dividend paid, and expenseof 2,235 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 67,949 million yen, down 5,001 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 11, 2021.

3

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for Second 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)
Q2 Fiscal year ending March
31, 2022 (Sep. 30, 2021)

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

68,942－
92,091
3,873
3,266
17,556
2,677
952
10,234(1,712)
197,881

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

20,426
16,031
10,93010,67858,066

9,604
976
10,581

8,922
1,019
9,941

26,125
7,655
12,043(1,739)44,085
112,607334,498

25,733
7,478
11,127(1,732)42,606110,614
308,496SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for Second Quarter of Fiscal Year Ending March 31, 2022

(Unit: Million yen)
Q2 Fiscal year ending March
31, 2022 (Sep. 30, 2021)

Fiscal year ended
March 31, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade102,209

84,950Electronically recorded obligations - operating

21,481

19,207

Short-term loans payable

1,248

2,057

Income taxes payable

6,168

3,006

Provision for bonuses

2,508

2,289

Other

18,326

15,966

Total current liabilities

151,942

127,477

Bonds with share acquisition rights

25,06625,054Long-term loans payable

32,721

31,280Net defined benefit liability

2,902

2,949

Non-current liabilities

849

869

Other

5,912

5,926

Total non-current liabilities

67,451

66,079219,394

193,557

Capital stock

15,553

15,553

Capital surplus

23,891

23,900Retained earnings

83,56583,910Treasury stock(15,526)(15,526)

Total shareholders' equity

107,483

107,837

3,923

3,554

Asset retirement obligations

Total liabilities
Net assets
Shareholders' equity

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

00Foreign currency translation adjustments

68

102

Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

5

(35)

(30)

3,957

3,626

3,663

3,474

115,103

114,938

334,498

308,496SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for Second 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 second quarter
Six months ended
September 30, 2020
220,731(Unit: Million yen)Six months ended
September 30, 2021
234,663

Cost of sales

197,475

211,039

Gross profit

23,256

23,623

Sales, general, and administrative expenses

15,423

16,030Operating profit

7,832

7,593

Interest income

163

142

Dividend income

189

103

Equity gains of affiliated companies
Foreign exchange profit－
208

Reversal of allowance for doubtful accounts

64

90
－
7

Other

277

155

Total non-operating profit

902

498

175

142

7

－
511

Net sales

Non-operating profit

Non-operating expenses
Interest expenses
Equity losses of affiliated companies
Commission paid

－
201

Other

81

Foreign exchange loss

29
30

466

714

8,268

7,378

Gains on sales of non-current assets

41

Gains on sales of investment securities－

1

Total extraordinary profit

42

Losses on step acquisitions

92

Losses on sales of non-current assets－
1

Impairment losses－
61

Losses on retirement of non-current assets

19

－
2

Other

0

－

175

3

Profit before income taxes

8,098

7,376

Income taxes - current

3,118

2,777

Total non-operating expenses
Ordinary profit
Extraordinary profit

Extraordinary losses

Total extraordinary losses

224

606

Total income taxes

3,342

3,383

Profit

4,755

3,993

43

(124)

4,711

4,118

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 Second Quarter of Fiscal Year Ending March 31, 2022

Quarterly consolidated statement of comprehensive income
Consolidated cumulative second quarter

Six months ended
September 30, 2020
4,755

(Unit: Million yen)Six months ended
September 30, 2021
3,993

Valuation differences on available-for-sale securities

1,775

(369)

Foreign currency translation adjustments

(174)

41

Remeasurements of defined benefit plans

010

Net income
Other comprehensive income

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

(4)

(5)

1,597

(323)

6,352

3,670

6,373

3,788

(20)

(118)

(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 Second Quarter of Fiscal Year Ending March 31, 2022

(3) Quarterly consolidated statement of cash flows(Unit: Million yen)Six months ended
September 30, 2021

Six months ended
September 30, 2020
Cash flows from operating activities
Profit before income taxes

8,098

7,376

Depreciation and amortization

1,494

1,738

61

－
934

Impairment loss
Amortization of goodwill

1,012
7

(90)

Increase (decrease) in provision for bonuses

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

(21)

(232)

Increase (decrease) in allowance for doubtful accounts

(63)

50

Increase (decrease) in net defined benefit liability

40

58

(352)

(245)

Interest and dividend income
Interest expenses
Decrease (increase) in notes and accounts receivable – trade

175

142

15,541

21,917

Decrease (increase) in inventories(3,250)(2,446)

Increase (decrease) in notes and accounts payable – trade(16,300)(19,547)

Decrease (increase) in lease investment assets

67

82

Other

(420)

(1,321)

Subtotal

6,089

8,417

Interest and dividend income received

410

356

Interest expenses paid

(175)

(144)

Income taxes paid

(4,489)(6,098)Net cash provided by operating activities

1,835

2,531

Payments into time deposits

(121)

(92)

Proceeds from withdrawal of time deposits

107

86

Purchase of property, plant, and equipment(1,858)(1,660)Cash flows from investing activities

Proceeds from sales of property, plant, and equipment

37

22

Purchase of intangible assets

(135)

(158)

Payments of short-term loans receivable

(249)

(200)

Collection of long-term loans receivable

140

136

Purchase of investment securities
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

(207)

(7)

(9,793)

(121)

－

24

(4,069)

(117)

(3)

(99)

(16,154)(2,187)SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for Second Quarter of Fiscal Year Ending March 31, 2022

(Unit: Million yen)Six months ended
September 30, 2021

Six months ended
September 30, 2020
Cash flows from financing activities
1,062

Increase (decrease) in short-term loans-net

627

Proceeds from long-term loans payable

1,586

262

Repayments of long-term loans payable(2,330)(2,235)Purchase of treasury stock(1,078)0Cash dividends paid

(3,556)(3,774)

Cash dividends paid to non-controlling interests

(69)

(16)

Repayments of lease obligations

(122)

(125)

Other
Net cash used in financing activities

0

(48)

(4,508)(5,310)94(41)

Net increase (decrease) in cash and cash equivalents(18,733)(5,009)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

82,81072,950－864,076

67,949Effect 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, 2022

(4) 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 second quarter of the current consolidated cumulative period
decreased by 2,517 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 (4) Notes on quarterly 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.

10

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

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

Previous consolidated cumulative second quarter (April 1 – September 30, 2020)

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

39,234

156,029

12,262

13,205

220,731－

220,731

1,135

912

113

12,837

14,998(14,998)－

40,370156,941

12,37526,042

235,730(14,998)

220,731

3,031
2,375
1,139
1,299
7,846
(13)
7,832
Segment profit
Notes:
1 The figure of (13) million yen in adjustments to segment profit includes (25) million yen in cancellation of intersegment
transactions and 15 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 second 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 is included 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 second 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 applicable11

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

II.

Consolidated cumulative second quarter under review (April 1 – 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

2,224
2,646
1,240
1,547
7,658
(64)
7,593
Segment profit
Notes:
1 The figure of (64) million yen in adjustments to segment profit includes (36) million yen in cancellation of intersegment
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, 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 second 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 second quarter of the current consolidated
cumulative period decreased by 2,517 million yen compared to the conventional method. Intersegment sales or transfers of“Dispensing Pharmacy business” for the second quarter of the current consolidated cumulative period also decreased by
15,139 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 second 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.

12