Note: This document has been translated from the Japanese original for reference purposes only. In the event of any
discrepancy between this translated document and the Japanese original, the original shall prevail.

October 31, 2017

Consolidated Financial Results
for the First Six Months of the Fiscal Year Ending March 31, 2018
<under Japanese GAAP>
Company name: Paramount Bed Holdings Co., Ltd.
Listing:
Tokyo Stock Exchange
Securities code: 7817
URL:
http://www.paramountbed-hd.co.jp
Representative: Kyosuke Kimura, President and Chief Executive Officer
Contact:Kenji Ouchi, Executive Officer, General Manager of Finance Division
TEL: 03-3648-1100
Scheduled date to file Quarterly Securities Report:
Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results presentation meeting:

November 13, 2017
December 4, 2017
Yes
Yes (for institutional investors andanalysts)(Millions of yen with fractional amounts discarded, unless otherwise noted)

1.

Consolidated financial results for the first six months of the fiscal year ending
March 31, 2018 (from April 1, 2017 to September 30, 2017)(1) Consolidated operating results (cumulative)
Net sales
Six months ended(Percentages indicate year-on-year changes.)

Operating income

Millions of yen% Millions of yen

Net income attributableto owners of the parent

Ordinary income% Millions of yen% Millions of yen%

September 30, 201734,795

7.4

4,379

(1.4)

5,769

48.4

3,975

48.1

September 30, 2016

32,383

(3.1)

4,443

16.3

3,887

(7.2)

2,684

(0.7)

Note: Comprehensive income Six months ended September 30, 2017: ¥4,299 million:
Six months ended September 30, 2016: ¥1,678 million:Basic net income
per share[156.2%][(23.9)%]Diluted net income
per share

Six months ended

Yen

Yen

September 30, 2017143.96132.23September 30, 2016

94.25

86.82

(2) Consolidated financial position
Total assets
As ofNet assets

Equity-to-asset ratio

Millions of yen

Millions of yen%

September 30, 2017

130,465

91,30970.0

March 31, 2017

128,962

88,391

68.5

Reference: Equity
As of September 30, 2017: ¥91,308 million
As of March 31, 2017:¥88,390 million

2.

Dividends
Dividends per shareFirst quarter-end

Second quarter-end Third quarter-end

Fiscal year-end

Total

Yen

Yen

Yen

Yen

Yen–40.00

–

50.00

90.00

–

45.00
–

45.00

90.00

Fiscal year endedMarch 31, 2017
Fiscal year ending
March 31, 2018
Fiscal year ending
March 31, 2018
(Forecast)

Note: Revisions to the dividends forecasts most recently announced: None
Year-end dividends for the fiscal year ended March 31, 2017 consist of regular dividends of ¥40.00 and commemorative
dividends of ¥10.00.

3.

Consolidated earnings forecasts for the fiscal year ending March 31, 2018(from April 1, 2017 to March 31, 2018)(Percentages indicate year-on-year changes.)
Net sales

Fiscal year ending
March 31, 2018

Operating income

Ordinary income

Net income
attributable toowners of the parent

Basic net
incomeper share

Millions ofyen%Millions ofyen%Millions ofyen%Millions ofyen%

Yen

76,0003.8

11,500

4.4

12,500

6.0

8,500

(5.9)

307.81

Note: Revisions to the earnings forecasts most recently announced: None
*Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in
the change in scope of consolidation): None
(2) Application of special accounting for preparing quarterly consolidated financial statements: None
(3) Changes in accounting policies, changes in accounting estimates, and restatementa. Changes in accounting policies in accordance with changes in accounting standards, etc.: Noneb. Changes in accounting policies due to other reasons: Nonec. Changes in accounting estimates: Noned. Restatement: None(4) Number of shares issued (common shares)
a. Number of shares issued at the end of the period (including treasury shares)
As of September 30, 2017
As of March 31, 2017b.

Number of treasury shares at the end of the period
As of September 30, 2017
As of March 31, 2017c.

30,877,487 shares
30,877,487 shares

3,263,422 shares
3,263,161 shares

Average number of shares outstanding during the period (cumulative from the beginning of thefiscal year)
Six months ended September 30, 2017
Six months ended September 30, 2016

27,614,203 shares
28,483,096 shares* Quarterly financial results reports are not required to be subjected to quarterly reviews.
* Proper use of earnings forecasts, and other special matters
The forward-looking statements, including earnings forecasts, contained in these materials are based on information
currently available to the Company and on certain assumptions deemed to be reasonable. Consequently, the statements
herein do not constitute assurances regarding the Company’s actual results. Actual financial and other results may
differ substantially from the statements herein due to various factors. Please refer to “1. Qualitative information
regarding financial results for the first six months, (3) Information regarding consolidated earnings forecasts and otherforward-looking statements” on page 3 of the attached materials for the suppositions that form the assumptions for theearnings forecasts and cautions regarding the use of the earnings forecasts.

Attached Materials

Index
1. Qualitative information regarding financial results for the first six months........................................... 2(1) Information regarding operating results ........................................................................................... 2(2) Information regarding financial position ......................................................................................... 3(3) Information regarding consolidated earnings forecasts and other forward-looking statements....... 3
2. Quarterly consolidated financial statements and significant notes thereto ............................................. 4(1) Consolidated balance sheet .............................................................................................................. 4(2) Consolidated statement of income and consolidated statement of comprehensive income ............. 6Consolidated statement of income (cumulative) .............................................................................. 6Consolidated statement of comprehensive income (cumulative) ..................................................... 7(3) Notes to quarterly consolidated financial statements ....................................................................... 7Notes on premise of going concern.................................................................................................. 7
Notes on substantial changes in the amount of shareholders’ equity ............................................... 7-1-

1.

Qualitative information regarding financial results for the first six months(1) Information regarding operating results
In the six months ended September 30, 2017, the Japanese economy continued to mount a gradual
recovery fueled by factors such as better corporate earnings and a more upbeat employment
situation, yet future prospects remain unclear largely due to economic uncertainties overseas.
In the medical and elderly welfare fields, which are related to the operations of the Paramount Bed
Group (“the Group”), a general framework has been settled on for the revision in 2018 of the longterm care insurance system which is being undertaken with the aim of establishing a communitybased integrated care system in 2025. Discussions are now in full swing with respect to the key
policies of “deepening and promoting the community-based integrated care system” and“maintaining sustainability of long-term care insurance,” and with respect to the simultaneous
revision of medical service and long-term care fees in 2018.
Amid this environment, the Group has been actively developing business in a manner geared toensuring that it achieves objectives of its medium-term business plan, “2020 Plan,” which covers
the period encompassing April 2016 to March 2021. The business plan cites “maintaining andexpanding existing business areas,” “stepping up pace of overseas business expansion,” and“strengthening R&D and creating business models serving as buds of new growth” as its key
policies geared to achieving its goals for consolidated net sales and consolidated operating incomefor the fiscal year ending March 31, 2021, of ¥100,000 million and ¥14,000 million, respectively.
With respect to product development, in July 2017 we made a model change involving our “L’za”
chairs for use in dialysis and chemotherapy units, designed to save space and ensure patient comfort.
As for our overseas business, having established an assembly plant in Mexico we started full-scale
operations in July 2017. Given that delivery of domestic products is often a requirement withrespect to Mexican public national hospitals, we anticipate that such factory operations will result inhigher sales to that nation, and we also have our sights set on exporting products to neighboring
countries.
As part of our new business operations, in April 2017 we began sales and marketing of the“Welwalk WW-1000” rehabilitation-assist robot developed by Toyota Motor Corporation, andlaunched services that include setup and maintenance.
With respect to the Paramount Care Service Co., Ltd. rental wholesale business for assistive
products, we established our first business location in Okinawa Prefecture in July 2017, making thatour 75th such site nationwide, in order to develop new markets.
Moreover, in July 2017 we established the Paramount Healthcare Research Institute which
specializes in medical and caregiving research. Amid various trends unfolding in the medical andcaregiving fields in markets such as Japan, elsewhere in Asia, Europe and the U.S., we aim tocontribute to sustainable development of medicine and caregiving by disseminating information
upon conducting investigations and research leveraging the specialized experience, knowledge andnetworks, etc. developed by the Group thus far.
On the sales front, results were largely in line with forecasts, particularly with respect to ourdomestic subsidiaries which include product sales operator Paramount Bed Co., Ltd., maintenanceservices provider Paratechno Co., Ltd., and assistive product rental wholesale provider ParamountCare Service Co., Ltd.
As a result of the above, in the six months ended September 30, 2017, net sales were ¥34,795
million (up 7.4% year on year), operating income was ¥4,379 million (down 1.4% largely as a resultof having incurred costs associated with rebuilding branches) and ordinary income was ¥5,769
million (up 48.4% largely as a result of having recognized gain on investments in partnership). Net
income attributable to owners of the parent was ¥3,975 million (up 48.1%).
Because the business of the Group consists of a single business segment, information by businesssegment is not provided.

-2-(2) Information regarding financial position
Total assets as of September 30, 2017, amounted to ¥130,465 million, which was an increase of¥1,502 million compared to March 31, 2017. The primary factor in this increase was an increase insecurities.
Liabilities amounted to ¥39,156 million, which was a decrease of ¥1,414 million compared toMarch 31, 2017. The primary factor in this fall was a decrease in accounts payable - trade.
Net assets amounted to ¥91,309 million, which was an increase of ¥2,917 million compared toMarch 31, 2017. The primary factor in this increase was an increase in retained earnings.
As a result, the equity-to-asset ratio as of September 30, 2017, increased by 1.5 percentage points
compared to March 31, 2017, to 70.0%.
(3) Information regarding consolidated earnings forecasts and other forward-looking statements
No revisions have been made to the consolidated earnings forecasts announced on October 30, 2017.

-3-2.

Quarterly consolidated financial statements and significant notes thereto(1) Consolidated balance sheet(Millions of yen)
As of March 31, 2017
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Lease receivables and investment assets
Securities
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
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Assets for rent
Accumulated depreciation
Assets for rent, net
Construction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-4-

As of September 30, 201730,22822,914
1,962
9,804
4,453
225
1,381
2,160
(44)
73,08532,71916,344
2,099
13,038
5,528
233
1,501
1,643(41)73,06627,256(19,175)
8,081
7,375
(6,585)
789
8,650
109
(109)
0
22,858(11,192)
11,665
126
8,876(7,692)
1,183
30,496

26,856(19,148)
7,708
7,401
(6,610)
790
8,650
109
(109)
0
24,335(12,216)
12,119595
8,937(7,657)
1,279
31,144

22
1,972
1,994

15
1,908
1,924

15,734
7,704(54)
23,38555,877
128,962

16,0908,259(19)24,32957,398130,465

(Millions of yen)
As of March 31, 2017

As of September 30, 2017

10,603
1,888
713
1,245
27
4,028
18,507

7,612
2,037
1,257
1,274
–
4,173
16,356

10,012
4,034
41
5,564
2,409
22,06340,57010,007
4,394
41
5,692
2,663
22,79939,156

4,207
49,87744,451(10,730)
87,8054,207
49,87747,045(10,731)
90,398

542

867

568
(525)
585
0
88,391
128,962

548
(505)
909
0
91,309130,465

Liabilities
Current liabilities
Accounts payable - trade
Lease obligations
Income taxes payable
Provision for bonuses
Provision for directors’ bonuses
Other
Total current liabilities
Non-current liabilities
Bonds with subscription rights to shares
Lease obligations
Provision for environmental measures
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Noncontrolling interests
Total net assets
Total liabilities and net assets-5-(2) Consolidated statement of income and consolidated statement of comprehensive income
Consolidated statement of income (cumulative)(Millions of yen)Six months ended
September 30, 2016
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Gain on investments in partnership
Gain on investments in silent partnership
OtherTotal non-operating incomeNon-operating expenses
Interest expenses
Foreign exchange losses
Loss on investments in partnership
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Gain on redemption of investment securities
Total extraordinary income
Extraordinary losses
Loss on sales of investment securities
Loss on redemption of investment securities
Loss on valuation of investment securities
Total extraordinary losses
Income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Net income
Net income attributable to noncontrolling interests
Net income attributable to owners of the parent-6-

Six months ended
September 30, 201732,383
17,116
15,266
10,823
4,443

34,795
18,557
16,237
11,858
4,379

69
67–
–
2
82
222

63
76
210
751
180
131
1,413

17
718
28
14
779
3,887

14–
–
8
23
5,769

7
39
46

6–
6–
10
0
10
3,922
1,199
38
1,238
2,684
0
2,684

50
–
5
5,770
1,670
125
1,795
3,975
0
3,975

Consolidated statement of comprehensive income (cumulative)(Millions of yen)Six months ended
September 30, 2016Net income
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:
Owners of the parent
Noncontrolling interests

2,684

3,975(334)(687)
16(1,006)
1,678

325(20)
19324
4,299

1,678(0)4,2990(3) Notes to quarterly consolidated financial statements
Notes on premise of going concern
No items to report.
Notes on substantial changes in the amount of shareholders’ equity
No items to report.

-7-Six months ended
September 30, 2017