Medium-term Management Plan Phase IITargets
May 19, 2022
Securities code: 7817
PARAMOUNTBEDHOLDINGS CO., LTD.
Securities code:7817
PARAMOUNT BED HOLDINGS CO., LTD.

Copyright (C) 2022 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

11. Positioning of Management Corporate Principles, Long-term Vision, andMedium-term Management Plan

Corporate Principles

Corporate Principles
We will create a comfortable healthcare environment
through cutting-edge technology with a human touch

Statement

Corporate Principles

as human, for human
VisionPARAMOUNT VISION 2030
Smiles for everyone from medical andnursing care to health field

VisionIdeal Future Image

Medium-term Management Plan

Phase I（April 2020 - March 2024）
Phase II（April 2024 - March 2027）

Medium-term Management Plan

Phase III（April 2027 - March 2030）
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22. Status of Phase I
Phase I
Medium-term Management Plan
(April 2020 - March 2024)

Phase II(April 2024 - March2027)

Phase III(April 2027 - March2030)

Expansion of current businesses
Medium- to long-term
Fully engaging in Health Promotion
investment phaseBusiness
anticipating 10 years ofEstablishing the foundations for
growthchangeInitiatives to address SDGs and make social contributions, strengthening of human resource foundations,renewal of system infrastructure[Current situation]- Phase I performance targets
Aiming for 12 billion yen in operating income and89 billion yen in sales in FYE3/2024
Exceeded in FYE3/2022

With keeping steady implementaion of priority
measures of Phase I, we will also carry out activities
taking Phase II direction into account.
April 2021 Briefing Materials
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3

3. Phase II (FYE3/2025 - FYE3/2027) Performance Targets
Final year of Phase II: 120 billion yen in sales and 17 billion yen in operating income
Net sales(Hundred1,300millions of yen)Phase II
Phase I

Operating income(Hundred millionsof yen)

1,100

160
CAGR
6.6％

900

140
120

700

100

500

80

FY3/2020

FY3/2021

FY3/2022*1

FY3/2023
Forecast

FY3/2027
TargetNet sales

82.3 billionyen

87.1 billion
yen

90.3 billion
yen

94.0 billion
yen

120.0 billion
yen

Operatingincome

9.9 billion
yen

11.5 billion
yen

12.3 billion
yen

12.5 billion
yen

17.0 billion
yen

Operatingmargin

12.0%

13.3%

13.7%

13.3%

14.2%

Recurring
net salesratio inJapan

33.8%

34.6%

36.0%

37.6%

45.0%

*1
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The “Accounting Standard for Revenue Recognition” will apply from FY3/2022
44. Phase II Direction and Focal Points
PARAMOUNT VISION 2030

Smiles for everyone from medical and nursing care to health field
2024.32027.32030.3Phase I priority measures
Expansion of current businesses
Fully engaging in Health PromotionBusiness
Establishing the foundations for change

Phase II direction and focal points
Expansion of recurring businesses
Advancement of Health Promotion Business
Leap forward in key areas of Asia

Enhance partnerships with other companys to expand
and create businesses,and achieve the above
We will Become an indispensable
partner to our customers
Initiatives to address SDGs and make social contributions, strengthening ofhuman resource foundations, renewal of system infrastructure
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55. Phase II Direction and Focal Points
Expansion of recurring businesses- Accelerate expansion of current recurring businesses
Assistive products rental wholesale business (Nursing Care)
On-site hospital services (Medical Care)
Hospital packaged rentals (Medical Care)- Develop new recurring business menu utilizing sensing technology,
AI, IoT, etc.

Advancement of Health Promotion
Business- Expansion of sleep improvement products- Products and services contributing to extending healthy life
expectancy- Expand users by partnering with other companies

Leap forward in key areas of Asia
- No. 1 share of medical beds in countries of operations- Increase production capacity to support increase in number of beds
sold- Aim for CAGR 10% in sales

Increase recurring sales
ratio in Japan from current
36% to 45%

Increase Health Promotion
Business net sales toover 5 billion yen

Increase overseas net sales
to 15 billion yen

Accelerate speed of expansion of each focal point utilizing
partnerships and CVC
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66. Phase II Performance Targets (Overseas)
Consolidated overseas net sales
FYE3/2022
Result(Millions of yen)

FYE3/2027
Targetvs. FYE3/2022
result7,923

13,500+70%

Indonesia

2,772

4,900+77%

China

2,803

4,600+64%

Other Asian
countries

2,346

4,000+71%890

1,500+69%

Total

8,813

15,000+70%

Overseas sales
ratio

9.8%

12.5%

-Asia

Outside ofAsia

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77. Phase II Performance Targets (By Business)
Net sales by business(Millions of yen)

FYE3/2022
ResultFYE3/2027
Targetvs. FYE3/2022
resultMedicalBusiness

34,23049,600+45%

Nursing CareBusiness

52,31762,900+20%

Health Business

2,141

5,500+157%Other

1,662

2,000+20%

Total

90,352120,000+33%

Operatingincome12,34017,000+38%

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88. Cash Allocation Plan
Priority allocation to recurring asset investments,
venture investments, etc.
Aiming to strengthen ties with customers and shift to a recurring business model
Cumulative total for FYE3/2023-FYE3/2027
Cash inCash out
Shareholder return
20 billion yen~

Income tax
20 billion yen~
EBITDA
115 billion yen~

Allocation ofcash on hand
10 billion yen~

Growthinvestment

Shareholder return
Dividend on equity (DOE) ratio of 2.7%, dividend
payout ratio of 30% as a guide
Flexible additional return considering marketenvironment, etc.
Growth investment

Capital investment
15 billion yen~

Recurring assets to strengthen ongoing relationships with customers

Recurring asset,CVC
establishment,etc.

Active development of partnerships with other companies, including
establishment of CVC for business development

70 billion
yen~

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Enhancement of production facilities and equipment of maintenance ofrental assistive products / Renewal of system infrastracture<Stance on level of cash on hand>
Approx. 3 months of working capital＋ providing products and services that contribute to medical

Maintain business operation system capable of continuously

and nursing care even in the event of a disaster9

Disclaimer
The figures from performance forecasts in this document were preparedbased on information currently available as of the date of publication.
Actual results may differ from these forecasts due to various factors.
The monetary amounts in this document are rounded down.
The percentages shown for comparisons with forecasts and the previous
year have plus and minus signs for the change and are rounded to thenearest value.

Copyright (C) 2022 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

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