Summary of Financial Statements
for First Quarter of Fiscal Year Ending March 31, 2023 [Japanese GAAP](Consolidated)
August 9, 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: August 12, 2022
Scheduled start date for 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 first quarter of fiscal year ending March 31, 2023
(April 1, 2022 – June 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)%

(Million yen)

Q1 FY ending March 2023
121,214
6.1
2,830
(8.9)
114,2153,106
7.6－
Q1 FY ended March 2022
Note: Comprehensive income: Q1 FY ending March 2023: ¥ 2,859 million (88.5 %)Q1 FY ended March 2022: ¥ 1,517 million ((54.6) %)Diluted net
Net income per shareincome per share
(Yen)

2,913
3,057

%

(Million yen)

%

(4.7)
(0.2)

1,585
1,602

(1.1)
(2.5)

(Yen)

Q1 FY ending March 2023
16.80
15.22
Q1 FY ended March 2022
16.99
15.39
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 the previous first quarter of fiscal
year, the figures for the first 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 quarter is notshown.

(2) Consolidated financial condition
Total assets

Net assets(Million yen)

Equity capital ratio(Million yen)%

Q1 FY ending March 2023
326,767
121,286
35.9
FY ended March 2022
335,074
122,318
35.3
Reference: Equity: Q1 FY ending March 2023: ¥117,162 million; FY ended March 2022: ¥118,289 million

2. Dividends
End Q1End Q2(Yen)

Annual dividends
End Q3(Yen)

FY ended March 2022–
0.00
FY ending March 2023–
FY ending March 2023
0.00
(forecast)
Note: Revisions made in most recently announced dividend forecasts: None

Year-end

Total

(Yen)

(Yen)

(Yen)

–

41.00

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)
Net sales
Cumulative throughsecond quarter
Full-year

Operating profit(Percentages represent changes from previous year.)
Profit attributable to Net income per
Ordinary profit
owners of parent
share(Million yen)
(Million yen)
(Yen)
%
%

(Million yen)%

(Million yen)%

250,000

6.5

7,500

(1.2)

7,500

1.7

4,500

9.3

47.69

560,000

8.9

21,0002.4

21,000(1.4)

12,5002.7

132.49Note: 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) Application of special accounting methods for 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
Q1 FY endingat the end of the period (including treasury March 2023
stock)(ii) Number of treasury stock at the end of the Q1 FY ending
March 2023
period(iii) Average number of shares during theQ1 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

94,350,273 shares

Q1 FY ended
March 2022

94,350,323 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 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 “Future outlook” on page 3 of the Annexed Materials.

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for First 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 in the event of significant changes in the amount of shareholders' equity) ..............................

8(Segment information, etc.) .................................................................................................................

8(Important subsequent information) ....................................................................................................

101

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

1. Qualitative information on business results(1) Description of business results
The Japanese economy during the first quarter of the current consolidated cumulative period, although the impact of
COVID-19 is easing and economic activities are gradually returning to normal, the rapid depreciation of the yen andsoaring market price of food, energy, and raw materials due to the unstable international situation, including the situationin Russia and Ukraine, which makes the future outlook remain uncertain as well as concerns about further price increases.
Healthcare industry in which the Group operates, though the number of surgeries has been on a recovery trend due to anincrease in the number of medical consultations, there is a continued demand to build an efficient, effective, and highquality medical care system that can respond to COVID-19.
In the Group business under such conditions, projects in the Total Pack Produce business progressed smoothly, and ahospital in Bangladesh was able to reach its grand opening. However, all businesses were affected by soaring food, energy,
and raw material prices.
For the first quarter of the current consolidated cumulative period, the various factors noted above resulted in net sales of
121,214 million yen (up 6.1% YoY), operating profit of 2,830 million yen (down 8.9% YoY), ordinary profit of 2,913
million yen (down 4.7% YoY), and profit attributable to owners of the parent of 1,585 million yen (down 1.1% YoY).
Business results by segment are summarized below.
(i) Total Pack Produce businessIn Total Pack Produce business, in addition to the completion of projects and the steady increase in new orders, thenumber of new outpatients and the number of treatment cases in Osaka Heavy Ion Therapy Center increased due tothe expansion of areas covered by insurance from April this year. On the other hand, the manufacturer-affiliatedcompanies are facing difficulties in procuring some electrical components, and the soaring raw material prices havealso contributed to lower performance compared to the previous fiscal year.
As a result, this segment recorded net sales of 16,707 million yen (down 0.7% YoY) and segment profit (operating
profit) of 624 million yen (down 28.3% YoY).
(ii) Medical Supply business
In Medical Supply business, demand for medical supplies recovered due to an increase in the number of surgicalcases, however, the number of projects related to subsidy budget for infection control decreased, in addition torecording upfront expenses associated with the operation of new SPD facilities.
As a result, this segment recorded net sales of 90,461 million yen (up 7.3% YoY) and segment profit (operating
profit) of 984 million yen (down 7.3% YoY).
(iii) Lifecare business
In Lifecare business, the food supply business was affected by soaring food prices, and new M&A-related expenses
were recorded, however, the occupancy rate remained high and the business efficiency improvement was progressed.
As a result, this segment recorded net sales of 6,831 million yen (up 10.9% YoY) and segment profit (operating
profit) of 531 million yen (down 9.5% YoY).
(iv) Dispensing Pharmacy business
In Dispensing Pharmacy business, the performance remained firm due to the opening of new stores and streamliningof management.
As a result, this segment recorded net sales of 7,214 million yen (up 4.5% YoY) and segment profit (operating profit)
of 641 million yen (up 6.5% YoY).

2

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

(2) Analysis of Financial Position
Assets at the end of the consolidated first quarter under review stood at 326,767 million yen, down 8,306 million yen fromthe end of the previous consolidated fiscal year. The primary reasons for this decline included decreases of 16,926 million
yen in notes, accounts receivable, and contract asset, despite increases of 2,774 million yen in electronically recordedmonetary claims – operating, 2,299 million yen in merchandise and finished goods, and 2,077 million yen in investment
securities.
Liabilities stood at 205,480 million yen, down 7,275 million yen from the end of the previous consolidated fiscal year. The
primary reasons for this decline included decreases of 10,446 million yen in notes and accounts payable – trade, despite
increases of 3,055 million yen in electronically recorded obligations – operating.
Net assets stood at 121,286 million yen, down 1,031 million yen from the end of the previous consolidated fiscal year. The
primary reasons for this decline included decreases of 3,868 million yen in retained earnings due to payment of dividends,
despite increases of 1,585 million yen in retained earnings from profit attributable to owners of parent.
As a result of all these factors, equity capital ratio at the end of the consolidated first quarter under review stood at 35.9%.
(up 0.6% 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 First Quarter of Fiscal Year Ending March 31, 2023

2. Quarterly consolidated financial statements and notes thereto(1) Quarterly consolidated balance sheet(Unit: Million yen)
Q1 Fiscal year ending March
31, 2023 (June 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

72,26496,502
7,495
3,586
21,077
2,482
1,166
10,896(1,001)
214,470

20,245
16,293
10,993
10,46457,995

20,377
16,479
11,13910,78458,781

8,336
1,017
9,354

8,756
1,200
9,956

23,608
7,518
11,810(1,741)
41,195
108,545
335,074

25,685
7,475
12,146(1,748)43,559112,297
326,767SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for First 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)
Q1 Fiscal year ending March
31, 2023 (June 30, 2022)

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

89,62525,229
2,579
2,057
2,652
18,007140,150

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

25,03530,704
2,986
889
5,714
65,329205,480

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

15,55323,90889,681(15,526)
113,615

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

1,806
1
1,697
40
3,546
4,124
121,286
326,767SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for First 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 first 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
Other
Total extraordinary profit
Extraordinary losses
Losses on sales of non-current assets
Losses on retirement of non-current assets
Losses on change in equity
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

Three months ended
June 30, 2021
114,215
103,106
11,1098,003
3,106(Unit: Million yen)Three months ended
June 30, 2022
121,214
109,659
11,554
8,724
2,830

72
99
7
7
75
261

79
107
－
3
98
288

61
－
205
19
23
309
3,057

76
3
113
8
3
205
2,913

0
1
－
1

1
－
0
1

0
0
－
－
0
3,058
990
552
1,543
1,515
(87)
1,602

2
6
2
0
11
2,903
1,166
208
1,375
1,527
(57)
1,585

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

Quarterly consolidated statement of comprehensive income
Consolidated cumulative first quarter

Three months ended
June 30, 2021
1,515

Net income
Other comprehensive income
10
Valuation differences on available-for-sale securities(5)
Foreign currency translation adjustments
5Remeasurements of defined benefit plans
Share of other comprehensive income of entities accounted for using equity method(8)1Total other comprehensive income
1,517
Comprehensive income(Breakdown)
1,603
Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests(85)

7(Unit: Million yen)Three months ended
June 30, 2022
1,527
303
1,013
(4)
19
1,332
2,859
2,741
118

SHIP HEALTHCARE HOLDINGS, INC. (3360): Summary of Financial Statements
for First 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.
1

Previous consolidated cumulative first quarter (April 1 – June 30, 2021)

Net sales and profit (loss) by reportable segments(Unit: Million yen)
Adjustments*1

Amountrecorded on
consolidated
financialstatements*2

Reportable segment
Total Pack
Producebusiness

MedicalSupplybusiness

Dispensing
Pharmacybusiness

Lifecarebusiness

Subtotal

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

16,82784,322

6,161

6,904

114,215－

114,215

397

420

43

23

885

(885)

－

17,22584,742

6,205

6,927

115,100(885)

114,215

Segment profit
870
1,062
587
602
3,122
(16)
3,106
Notes:
1. The figure of (16) million yen in adjustments to segment profit includes (18) million yen for the cancellation ofintersegment transactions and 7 million yen for companywide costs not allocated to an individual reportable segment.
These companywide costs consist mainly of parent company 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 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 first quarter of the consolidated fiscal year.

8

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

II.
1

Consolidated cumulative first quarter under review (April 1 – June 30, 2022)

Net sales and profit (loss) by reportable segments(Unit: Million yen)
Adjustments*1

Amountrecorded on
consolidated
financialstatements*2

Reportable segment
Total Pack
Producebusiness

MedicalSupplybusiness

Dispensing
Pharmacybusiness

Lifecarebusiness

Subtotal

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

16,70790,461

6,831

7,214

121,214－

121,214

564

371

18

23

978

(978)

－

17,271

90,832

6,849

7,238

122,192(978)121,214Segment profit
624
984
531
641
2,781
48
2,830
Notes:
1. The figure of 48 million yen in adjustments to segment profit includes (17) million yen for the cancellation of intersegment
transactions and 66 million yen for companywide costs not allocated to an individual reportable segment. These
companywide costs consist mainly of parent company 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 consolidated statement of income.
2

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 first quarter of the current consolidated fiscal year.

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

(Important subsequent information)(Business combination through acquisition)
At a meeting of the Board of Directors held on April 27, 2022, the Company resolved to acquire shares of Kingrun Co.,
Ltd. and made into an affiliate, also entered into a share transfer agreement on the same date. Pursuant to the share transfer
agreement, we received common shares of Kingrun Co., Ltd. on July 1, 2022, making it a subsidiary.
1.

Overview of the business combination(1) Name and business of the acquired company
Name of the acquired company: Kingrun Co., Ltd.
Business: Curtain leasing and sales business for medical institutions and nursing care facilities, comprehensive
support business for furniture, fittings, and facilities, cleaning business, renovation business, welfare vehicle
sales business, nursing care facility management business, food supply business, agricultural business, energy
conservation business(2) Principal purpose of the business combination
The company's product capabilities and extensive customer base are expected to create synergies for the entire
group, including the Total Pack Produce business, and further enhance the corporate value.
(3) Date of the business combination
July 1, 2022
(4) Legal form of the business combination
Acquisition of shares for consideration of cash(5) Name following the business combination
Kingrun Co., Ltd.
(6) Ratio of voting rights acquired
Ratio of voting rights held immediately prior to acquisition: 14.9%
Ratio of voting rights to be acquired on the date of the business combination: 83.1%
Ratio of voting rights after the acquisition: 98.0%(7) Grounds for deciding on the company to be acquired
The Group's mission is "Creating environment for medical professionals" under the management philosophy of"SHIP" (Sincere (heart of sincerity), Humanity (heart of humanity), Innovation (spirit of innovator), andPartnerSHIP (spirit of partnership)). Based on the above philosophy, the Group has set "Medical", "Health","Nursing", "Welfare", and "Services" as its business domains, and mainly develops Total Pack Produce Business(comprehensive provision of consulting services to medical institutions, manufacturing, sales, and leasing of
medical equipment and facilities, and real estate leasing to medical institutions), Medical Supply Business (salesof medical consumables and equipment), Lifecare Business (operation of nursing care homes and group homes,
food supply, and rehabilitation support service), and Dispensing Pharmacy Business (operation of dispensing
pharmacies).
Kingrun Co., Ltd. and its subsidiaries are the pioneers in the curtain leasing and sales business for medical
institutions and nursing care facilities, and are also engaged in other businesses such as comprehensive support
for furniture, fittings, and facilities, cleaning business, renovation business, welfare vehicle sales business,
nursing care facility management business, food supply business, etc., and their strength lies in building mediumto long-term relationships with medical institutions and nursing care facilities nationwide through these wideranging business.
Kingrun Co., Ltd. and its subsidiaries’ product capabilities and extensive customer base are expected to createsynergies for the entire group, including the Total Pack Produce business, and further enhance the corporate
value.

2.

Acquisition Cost and Consideration of Acquired Company by Item3.

Consideration for acquisition: Cash
Acquisition cost:
Description and amount of major acquisition-related expenses

8,708 million yen
8,708 million yen

Advisory cost, etc. (approximation): 328 million yen
4.

Amount of goodwill generated, grounds for generation, amortization method and amortization period
Not confirmed at the present moment.

5.

Breakdown of principal amounts of assets to be acquired and liabilities assumed on the date of the businesscombination
Not confirmed at the present moment.

10