Financial Results Briefing for the First Six Monthsof the Fiscal Year Ending March 2023 (FYE 3/2023)
April 2, 2022 〜 September 30, 2022
Nov. 8, 2022
Securities code: 7817
Paramount
Bed Holdings Co., Ltd.
証券コード︓7817

パラマウントベッドホールディングス株式会社

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

1

Executive Summary

Sales increased while operating income decreased
Each of the Medical care, the Nursing care, and the Health promotion businessexceeded their targets.
Sales of main beds for home care continued to be strong.
Operating income exceeded the forecast due to the effect of increased revenue,
but decreased from the previous year due to soaring raw material prices.

Annual plan remains unchanged
Operating income expected to increase for the full year
Inquiries from the market are strong for each business, and steady progress is expected,
but there are still operational risks and procurement risks due to the impacts of COVID-19,
as well as the risks that raw material prices will remain high due to exchange rates andhigh oil prices, etc.

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2

Table of Contents

1. Overview of Results for the First Six Months of
the Fiscal Year Ending March 31, 2023
2. Overview by Business3. Outlook for the Fiscal Year Ending March 31, 2023
4. Medium-Term Management Plan: Phase II Targets
5. Topics

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

31. Overview of Results for the First Six
Months of the Fiscal Year Ending
March 31, 2023

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4

1-1. Overview of Financial Results
Sales increased while operating income decreased
Compared to the budget, operating income increased by 30%, andordinary income and net income increased by 50%.
(Unit: millions of yen)

FYE 3/2022
1Q/2Q
Results

Net sales

FYE 3/2023 1Q/2Q
Forecast

Results% to Forecast

YoY Change

41,23742,70046,850＋9.7%+13.6%＋32.3%-1.3%＋55.1%+11.3%＋52.8%

+2.4%

－

+3.6%

（Operating income
margin）

6,297

4,700

6,218

(15.3%)(11.0%)(13.3%)

Ordinary income

6,827

4,900

7,601

(16.6%)(11.5%)(16.2%)

Operating income（Ordinary income
margin）

Profit attributable toowners of Parent(Net profit margin）

4,925

3,300

5,044

(11.9%)(7.7%)(10.8%)

Annual Dividend

55 yen57 yen－（Interim dividend）（26 yen）（28 yen）

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5

1-2. Factors Causing Changes in Operating Income
Profit decreased due to decline in gross margin andincrease in SG&A, despite the effect of higher revenue
Gross margin decreased by 2.4% due to soaring prices of raw materials.
SG&A expenses, in addition to personnel expenses, included transportation expenses andan increase in costs associated with the establishment of a large-scale maintenance center.

Operating income -78

10,000(Unit: millions of yen)

+2,7689,000-1,127
-362

8,000
7,000
6,000

Profit decrease
due to decline ingross margin

6,297
Profit increase due
to higher revenue

5,000-1,358

Increase inpersonnel
expenses

6,218
Increase

Other increases
in SG&A

Decrease

4,000+1,641-1,720

Total

Other main increases in SG&A:- Transportation expenses- Outsourcing expenses- Rent expenses- Advertising and promotion expenses

3,000
2,000
1,000
0

FYE 3/2022
1Q/2Q
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FYE 3/2023
1Q/2Q
6

1-3. Financial Status
Net assets increased by 3,445 million yen(vs. previous fiscal year-end)(Unit: millions of yen)March 31, 2022

September 30, 2022

ChangeYoY Change

Current assets

94,03593,941-94-0.1%

Non-current assets

70,24673,785+3,539+5.0%

164,281

167,726+3,445+2.1%

Current liabilities

25,38722,879-2,508-9.9%

Non-current liabilities

17,21817,262+44+0.3%

Total liabilities

42,60640,141-2,465-5.8%

Net assets

121,675

127,584+5,909+4.9%

Total liabilities and net
assets164,281

167,726+3,445+2.1%

Total assets

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7

2. Overview by Business

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8

2-1. Medical Care BusinessNet sales increased 15%
vs. budget

FYE 3/2021
1Q/2Q

FYE 3/2022
1Q/2Q

16,893

14,385

15,42817,933

+16%

Japan

13,957

10,728

11,78013,475+14%

Overseas

2,935

3,657

3,648

4,458

+22%

(Unit: millions of yen)

For domestic medical institutions,in addition to the effect ofincreased medical fees and various
subsidies in response to COVID19, there was a rush of demand
before price rises went into effect.
Overseas sales were in line withthe previous year and the budget
and increased due to the effect of
the weaker yen.

FYE 3/2023 1Q/2Q

FYE 3/2020
1Q/2Q

Net sales

Results

YoY(Units: thousands, fractions rounded. YoY comparisons are calculated based on actual numbers.)

Number of beds sold

43

40

41

45

+10%

Japan

26

18

19

26

+35%

Overseas

17

22

22

20

-12%

*Number of bed sales include sales to companies within the group.

Net Sales(millions of yen)

Net sales (Japan)

20,0002,935(thousands)

17,933

16,89315,000

Number of beds

Net sales (Overseas)

14,385
3,657

15,428
3,648

4,458

Number of beds (Japan)

50

43
40
30

5,000

0

FYE 3/2020
1Q/2Q

10,728

11,780FYE 3/2021
1Q/2Q

FYE 3/2022
1Q/2Q

13,475

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40
22

22

18

19

FYE 3/2021
1Q/2Q

FYE 3/2022
1Q/2Q

20

20
10

FYE 3/2023
1Q/2Q

45
41

17

10,00013,957

Number of beds (Overseas)

026

FYE 3/2020
1Q/2Q

26
FYE 3/2023
1Q/2Q

9

2-2. Nursing Care Business
Strong performancefor both nursing homes
and home care

FYE 3/2021
1Q/2Q

FYE 3/2022
1Q/2Q

21,462

22,12923,943

26,797

+12%

Japan

21,237

21,97623,50026,428+12%

Overseas

224

152

442

369

-17%

(Unit: millions of yen)

Net sales

The number of monitoring sensors
was about 11,000 units, in line withthe previous year. Mainstay models
for home care continue to perform
well. The "Q-Aura ONE" that was
released in March also contributed.
Rental wholesale sales increased
by about 7%.

FYE 3/2023 1Q/2Q

FYE 3/2020
1Q/2Q

Results

YoY(Units: thousands, fractions rounded. YoY comparisons are calculated based on actual numbers.)

Number of beds sold

47

45

56

64

+15%

Japan

46

44

53

62

+17%

Overseas

2

1

3

2

-29%

*Number of bed sales include sales to companies within the group.

Net Sales(millions of yen)

Net sales (Japan)

30,00025,00020,00021,462

22,129224

152

23,943442(thousands)

26,797

70

369

60
50
40

15,00010,000

Number of beds

Net sales (Overseas)

21,237

21,97623,50026,4280

Number of beds (Overseas)

64
56
47
2

45

3

2

1

30
20

5,000

Number of beds (Japan)

46

44

FYE 3/2020
1Q/2Q

FYE 3/2021
1Q/2Q

53

62

10

FYE 3/2020
1Q/2Q

FYE 3/2021
1Q/2Q

FYE 3/2022
1Q/2Q

FYE 3/2023
1Q/2Q

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0

FYE 3/2022
1Q/2Q

FYE 3/2023
1Q/2Q

10

2-3. Health Promotion BusinessNet sales increased
by approx. 25%

FYE 3/2021
1Q/2Q

FYE 3/2022
1Q/2Q

596

716

1,020

1,276

+25%

Japan

596

716

1,020

1,276

+25%

Overseas

0

0

0

0

0%

(Unit: millions of yen)

The "INTIME 3000" released in
September last year contributed
to the increase in net sales.
Will continue to strengthen
measures to improve brandrecognition.

FYE 3/2023 1Q/2Q

FYE 3/2020
1Q/2Q

Net sales

Results

YoY(Units: thousands, fractions rounded. YoY comparisons are calculated based on actual numbers.)

Number of beds sold

3

3

4

5

+27%

Japan

3

3

4

5

+27%

Overseas

0

0

0

0

0%

*Number of bed sales include sales to companies within the group.

Net Sales

Net sales (Japan)(millions of yen)

1,200

1,020

1,000

0

600
400
200
0

(thousands)

1,276

1,400

800

Number of beds

Net sales (Overseas)

0

596
0
596

FYE 3/2020
1Q/2Q

0
1,020

1,276

716

FYE 3/2021
1Q/2Q

FYE 3/2023
1Q/2Q

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5

5

3
2
1

FYE 3/2022
1Q/2Q

Number of beds (Overseas)

6

4

716

Number of beds (Japan)

0

4
3

3

0

0

3

3

FYE 3/2020
1Q/2Q

FYE 3/2021
1Q/2Q

0

0

4

FYE 3/2022
1Q/2Q

5

FYE 3/2023
1Q/2Q

11

2-4. List by Business
Bed sales increased by approx. 13% to 115,000 units
The figures for "Other" are for Sadashige Special Plywood, which became a subsidiary in October 2019.

Net sales

Number of bed sales(Unit: millions of yen)

FYE 3/2022
1Q/2Q
Results

Medical Care
Business

FYE 3/2023
1Q/2Q
Results(Units: thousands, fractions rounded)

FYE 3/2022
1Q/2Q
ResultsYoY

FYE 3/2023
1Q/2Q
Results

YoY

15,42817,933

+16%

41

45

+10%

11,7803,648

13,475
4,458

+14%
+22%

19
22

26
20

+35%
-12%

23,943

26,797

+12%

56

64

+15%

Overseas

23,500442

26,428
369

+12%
-17%

53
3

62
2

+17%
-29%

Health Promotion
Business

1,020

1,276

＋25%

4

5

＋27%

Japan

1,020
0

1,276
0

＋25%
0%

4
0

5
0

＋27%
0%

Other

844

842

-0%

－

－

－

Total

41,23746,850

+14%

102

115

+13%

Japan
Overseas

Nursing Care
Business
Japan

Overseas*Number of beds sales include sales to companies within the group

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122-5. Overseas by Region
Increased 15% vs. the previous year
In China, there was a reactionary increase from the lockdowns in the previous year.
There were strong increases in India, although some of the sales were non-consolidated.

Consolidated overseas sales by region
FYE 3/2022
1Q/2Q(Unit: millions of yen)

Consolidated
overseas net sales

4,091

FYE 3/2023
1Q/2Q

4,828

YoY
FYE 3/2022
1Q/2Q

FYE 3/2023
1Q/2Q

3,889

4,241

+9%

Indonesia

1,528

1,552

+2%

China

1,173

1,499

+28%

Other Asia

1,187

1,188

+0%

Middle East

19

144

+658%

Central andSouth America

77

214

+178%

106

228

+115%

(Unit: millions of yen)

+18%
Asia

Overseas sales
ratio
Consolidated
overseas net sales(millions of yen)

9.9%

Consolidated
海外連結売上高
overseas net sales

10.3%

－

Percentageof
海外売上高⽐率overseas net sales

Percentage ofoverseas net sales
(%)

6,000
5,000
4,000
3,000

16.0

4,828
14.0

4,091
9.9

10.3

12.0
10.0

2,000

8.0

1,000
0

FYE 3/2022
1Q/2Q

YoY

FYE 3/2023
1Q/2Q

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6.0

Other

13

3. Outlook for the Fiscal Year Ending
March 31, 2023

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143-1. Outlook for the Full Year
Operating income to increase for the full year
The initial forecast remains unchanged.
(Unit: millions of yen)

FYE 3/2022
Results

FYE 3/2023
First half
results

Second half
prospects

Full year
forecast

Net sales

90,352

46,85047,15094,000Operating income

12,340

6,218

6,282

12,500(13.7%)(13.3%)(13.3%)(13.3%)

13,543

7,601

5,299

12,900(15.0%)(16.2%)(11.2%)(13.7%)

9,092

5,044

3,756

8,800

（Net profit margin）(10.1%)(10.8%)(8.0%)(9.4%)

Annual dividend

55 yen28 yen29 yen57 yen（Operating income
margin）

Ordinary income（Ordinary income
margin）

Profit attributableto owners of parent

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YoY

+4.0%

+1.3%

-4.8%

-3.2%

+3.6%

15

3-2. Factors Causing Changes in Operating Income
Actively roll out activities for future growth
Gross margin is expected to improve.

(Unit: millions of yen)

Operating income +160

14,00012,000+632+1,737
12,340
Profit increase
due to net
sales growth

10,000

Profit increase
due to improved
gross margin-400-1,401

Increase insystem-related
expenses

12,500
Increase in SG&A
due to increased
sales, etc.

Increase
8,000+2,369-2,209Decrease

Other main increases in SG&A:- Personnel expenses- Transportation expenses- R&D expenses, etc.

6,000

Total

4,000
2,000
0

Performancefor FYE 3/2022

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Outlook
for FYE 3/2023
16

3-3. Outlook for Medical Care BusinessContinuing strong inquiries in JapanFYE 3/2023

Maintenance and recurring
revenue business are alsostrong.
For overseas, expand sales ofhigh value-added products

FYE 3/2020

FYE 3/2021

FYE 3/2022

35,94633,444

34,23034,469+1%

Japan

29,33925,76926,435

26,145-0%Overseas

6,607

7,675

7,795

8,324

+7%

(Unit: millions of yen)

Net sales

Forecast

YoY(Units: thousands, fractions rounded. YoY comparisons are calculated based on actual numbers.)

Number of beds sold

88

90

89

93

+4%

Japan

48

44

47

45

-5%

Overseas

40

47

41

48

+15%

*Number of bed sales include sales to companies within the group.

Net Sales(millions of yen)

Net sales (Japan)

Number of beds

Net sales (Overseas)(thousands)

100
40,00030,00035,946
6,607

33,444

34,23034,469

7,675

7,795

8,324

25,76926,435

26,145FYE 3/2021
1Q/2Q

FYE 3/2022
1Q/2Q

FYE 3/2023
1Q/2Q

20,00029,33910,0000

FYE 3/2020
1Q/2Q

Number of beds (Japan)

Number of beds (Overseas)

93

90

89

40

47

41

48

48

44

47

45

FYE 3/2020
1Q/2Q

FYE 3/2021
1Q/2Q

FYE 3/2022
1Q/2Q

FYE 3/2023
1Q/2Q

88

80
60
40

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20
0

17

3-4. Outlook for Nursing Care BusinessContinuing the strong performanceof the first half
FYE 3/2020

FYE 3/2023
FYE 3/2021

FYE 3/2022

44,73450,48252,317

55,104+5%

Japan

44,19150,06551,29854,127+6%

Overseas

542

416

1,018

976

-4%

Forecast(Unit: millions of yen)

For nursing homes, stimulate
demand with monitoring sensors
as a pillar.
For home care, sales of “Rakusho
Plus” and “Q-Aura ONE” willremain strong to perform well.
Rental wholesale will continue toexpand.

Net sales

YoY(Units: thousands, fractions rounded. YoY comparisons are calculated based on actual numbers.)

Number of beds sold

95

108

123

129

+5%

Japan

91

105

117

123

+5%

Overseas

4

3

6

6

+10%

*Number of bed sales include sales to companies within the group.

Net Sales(millions of yen)

Net sales (Japan)

60,00050,00040,00050,482
44,734542

30,00020,00044,191

416

Number of beds

Net sales (Overseas)

52,317
1,018(thousands)

55,104976

51,29854,127

Number of beds (Overseas)

150

123
108
100

50,065

Number of beds (Japan)

50

95
4

91

3

105

129

6

6

117

123

FYE 3/2022
1Q/2Q

FYE 3/2023
1Q/2Q

10,0000

FYE 3/2020
1Q/2Q

FYE 3/2021
1Q/2Q

FYE 3/2022
1Q/2Q

FYE 3/2023
1Q/2Q

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0

FYE 3/2020
1Q/2Q

FYE 3/2021
1Q/2Q

18

3-5. Outlook for Health Promotion Business
Expecting continued expansion
FYE 3/2023

Strengthen the sales power ofretail shops and improve
relationships with them through the
Meister system.
Promote usability by adding morefunctions to product apps, etc.
Continue to aim to expand productfan base and increase awareness.

FYE 3/2020

FYE 3/2021

FYE 3/2022

1,231

1,584

2,141

2,700

+26%

Japan

1,231

1,584

2,141

2,700

+26%

Overseas

0

0

0

0

－

Forecast(Unit: millions of yen)

Net sales

YoY(Units: thousands, fractions rounded. YoY comparisons are calculated based on actual numbers.)

Number of beds sold

6

7

9

11

+23%

Japan

6

7

9

11

+23%

Overseas

0

0

0

0

0%

*Number of bed sales include sales to companies within the group.

Net Sales

Net sales (Japan)(millions of yen)

2,500

2,141

2,000

1,000
500
0

(thousands)

2,700

3,000

1,500

Number of beds

Net sales (Overseas)

1,584
1,231

1,231
FYE 3/2020
1Q/2Q

0

0

0

1,584

FYE 3/2021
1Q/2Q

0

2,141

FYE 3/2022
1Q/2Q

2,700

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Number of beds (Overseas)

20

15

11
9

10

6
5

FYE 3/2023
1Q/2Q

Number of beds (Japan)

0

0

7
0

6

7

FYE 3/2020
1Q/2Q

FYE 3/2021
1Q/2Q

0

0

9

11

FYE 3/2022
1Q/2Q

FYE 3/2023
1Q/2Q

19

3-6. List by BusinessTotal number of bed sales increases by 6% to 233,000 units
Net sales

Number of bed sales(Unit: millions of yen)

FYE 3/2022
Results

Medical Care
Business

FYE 3/2023
Forecast(Units: thousands, fractions rounded)

FYE 3/2022

FYE 3/2023

Results

YoY

Forecast

YoY

34,23034,469

+1%

89

93

+4%

26,435
7,795

26,145
8,324

-0%

45
48

-5%

+7%

47
41

+15%

52,317

55,104

+5%

123

129

+5%

54,127
976

+6%
-4%

117
6

123
6

+5%

Overseas

51,2981,018+10%Health Promotion
Business

2,141

2,700

＋26%

9

11

＋23%

Japan

2,141
0

2,700
0

＋26%

11
0

＋23%

0%

9
0

Other

1,662

1,726

+4%

-

-

-

Total

90,352

94,000

+4%

220

233

+6%

Japan
Overseas

Nursing Care
Business
Japan

Overseas0%*Number of beds sales include sales to companies within the group
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20

3-7. Overseas by Region
Expanding business in large markets such as Indonesia, China,
and India
Consolidated overseas sales by region
FYE 3/2022(Unit: millions of yen)

Consolidated
overseas net sales

8,813

FYE 3/2023
Forecast

YoY

9,300

FYE 3/2022

FYE 3/2023
Forecast

7,923

8,564

+8%

Indonesia

2,772

3,220

+16%

China

2,803

2,952

+5%

Other Asia

2,346

2,391

+2%

Middle East

68

172

+153%

Central andSouth America

227

360

+59%

Other

595

204

-66%

(Unit: millions of yen)

+6%

Asia
Overseas sales
ratio

Consolidated
overseas net sales(millions of yen)
10,0009.8%

Consolidated
海外連結売上高

overseas net sales

8,813

9.9%

Percentage of
海外売上高⽐率overseas net sales

9,300

-

Percentage ofoverseas net sales
(%)

8,000
6,000

YoY

15.0
14.0
13.0

9.8

9.9

12.0
11.0
10.0

4,000

9.0
8.0

2,000

7.0
6.0

0

FYE 3/2022

FYE 3/2023

5.0*The initial forecast remains unchanged.

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21

3-8. Capital expenditures, depreciation costs, and R&D expenses
Depreciation of rental assets for home care and medical carebusiness will increase
Capital investment includes opening a large-scale PCS base and renovating coating equipment at theIndonesia factory.
FYE 3/2020

FYE 3/2021

FYE 3/2022(Unit: millions of yen)

FYE 3/2023
Forecast

Capital expenditures

3,984

2,976

1,822

3,600

Depreciation costs

6,895

7,540

7,898

8,463

R&D expenses

1,677

1,782

1,697

1,774

Number of
employees

3,494

3,614

3,682

-

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22

3-9. Shareholder Returns (Dividends and Purchase of Treasury Shares)
Basic Policy: Increase in stable dividends with 2.7% DOE andpayout ratio of 30% as a guide
Dividends are planned to be 57 yen per share for the fiscal year ending March 31, 2023.
Expect to increase the dividend for three consecutive years.
FYE 3/2019

FYE 3/2020

FYE 3/2021

FYE 3/2023(Planned)

FYE 3/2022

50 yen50 yen51.5 yen

55 yen57 yen

2.8%

2.7%

2.7%

2.7%

-

Payout ratio

44.7％

42.3％

34.8％

35.2％

37.7%

Value of share buybacks

0 yen

4,382million yen

0 yen

0 yen

-

Dividends per share*
Dividend on equity (DOE)

Dividends per
share*

Dividends per share

(yen)
60

50

50

51.5

Payout ratio

55

Payout ratio

57

(%)
120

50

100

40

80

30

60

20
10
0

40

44.7

42.3

FYE 3/2019

FYE 3/2020

34.8

35.2

37.7

FYE 3/2021

FYE 3/2022

FYE 3/2023(Planned)

200* The Company carried out a 1:2 stock split of common shares effective April 1, 2021.
The above figures show the annual dividend per share calculated based on the assumption that the split took place on April 1, 2018.
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23

４. Medium-Term Management Plan:
Phase II Targets

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24

4-1. Positioning of Corporate Principles, Long-Term Vision,and Medium-Term Management Plan
Corporate Principles

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

Statement
as human, for humanCorporate
Principles

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）
Phase III: (April 2027 〜 March 2030）
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Medium-Term
Management Plan25

4-2. Status of Phase I[Current situation]- Phase I performance targets
Aiming for 12 billion yen in operating income and89 billion yen in sales in FYE 3/2024
Exceeded in FYE 3/2022

With keeping steady implementation of priority
measures of Phase I, we will also carry out activities
taking the Phase II direction into account.
April 2021 Briefing Materials
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26

4-3. Phase II Direction and Focal Points

Paramount Vision 2030
Smiles for everyone from medical and nursing care to health field
March 2027

March 2024

March 2030

Phase I Priority Measures
Expansion of current businesses
Fully engaging in Health Promotion Business
Establishing the foundations for change

Phase II Direction and Focus Points
Expansion of recurring revenue businesses
Advancement of the Health Promotion Business
Leap forward in key areas of Asia
In order to realize the above, we will "expand and createbusiness through collaboration with other companies"

Becoming an indispensable presence
as a partner to our customers
Initiatives to address SDGs and make social contributions, strengthening of
human resource foundations, renewal of system infrastructure
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27

4-4. Phase II (FYE 3/2025 ~ FYE 3/2027) Performance Targets
Final year of Phase II: 120 billion yen in sales and 17 billion yen in operating income
Net sales(hundredmillions of yen)Phase II

1,300

Operating income(hundredmillions of yen)Phase I

1,100

160
CAGR
6.6％

900

140
120

700

100

500

80

FYE 3/2020

Net sales

FYE 3/2021

FYE 3/2022*1

FYE 3/2023
Forecast

FYE 3/2023
Target

82.3

87.1

90.3

94.0

120.0

billion yen

billion yen

billion yen

billion yen

billion yen

Operatingincome

9.9

11.5

12.3

12.5

17.0

billion yen

billion yen

billion yen

billion yen

billion yen

Operatingmargin

12.0%

13.3%

13.7%

13.3%

14.2%

Recurring
revenue ratioin Japan

33.8%

34.6%

36.0%

37.6%

45.0%

*1 The "Accounting Standard for Revenue Recognition" will apply from FY3/2022
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28

4-5. 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

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

Increase Health Promotion
Business net sales toover 5 billion yen

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

Increase overseas net sales
to 15 billion yen

Accelerate speed of expansion of each focal point utilizing
partnerships and CVC
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29

4-6. Recurring Revenue Businesses (Rental Wholesale)
Workflow for assistive products rental wholesale(Paramount Care Service)
Storage

Maintenance

Disinfection

Assistive product manufacturers

Assistive product rental lenders

Disinfection/Cleaning

RepairInspection/Examination

Packing/Storage

Users

PARAMOUNT CARE SERVICE

Establishing large-scale maintenance centers to promote
efficiency and to respond to expanding demand
Kita-Osaka Maintenance Center (opened in May)

Atsugi Maintenance Center (opened in November)

Location: Taktsuki City, Osaka Prefecture
Total floor area: 10,433m2

Location: Atsugi City, Kanagawa Prefecture
Total floor area: 9,712m2*The Company's largest maintenance andstorage facility*With the Chiba-Ohira Maintenance Center, there are twolarge-scale locations in the Kanto region

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30

4-7. Recurring Revenue Businesses (for Hospitals / New Businesses)
Examples of on-site services for hospitals

Equipment management
and repair work

Nursing assistant work

Concierge work

Developing a new recurring revenue business model
Utilization of
Nemuri SCAN

Skin electronics
technology

Collaboration with othercompanies through CVC
Established a CVC on October 1
Will combine external technologies, know-how, andpersonal connections, etc. to create new synergies

Utilization of new sensor
technologies

Name

PARAMOUNT BED Healthcare Fund

Fund size
Operation period

5 billion yen
7.5 years

Investment areas
Operating company

Medical/nursing/health
SBI Investment Co., Ltd.

Towards a new system that
won't sell out

Accelerate expansion of current
recurring revenue businesses
Develop new recurring revenue
businesses
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Expand recurring
revenue ratio in Japan
from 36% to 45%
31

4-8. Advancement of the Health Promotion Business
Two brands based on the know-how and technologies cultivated from medical and nursing care

INTIME

Active Sleep App

Electric bed that can "transform" into
a nursing care bed"Self-adjusting for sleep" / sleep scoring

INTIME1000 Series(Hollywood style round board type)

Image of the INTIME2000i Series(Bordeaux red / equipped with sleep measurement sensor)

Links a sleep sensor to a smartphone app- Relaxed posture- 1 million type of firmness adjustment- "Self-adjusting for sleep"- Scores daily sleep condition

Image of the INTIME3000 series(Cube type / classy dark)

Develop products and services thatmake sleep more comfortable, centeredaround the bed, which is the centerpieceof the bedroom
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- Snoring measurement
etc.

Expand Health Promotion
Business sales to
5 billion yen
32

4-9. Leap Forward in Key Areas of Asia
Focus on China, India, and Indonesia
Situation in each country (FYE 3/2022, Paramount Bed Holdings estimates)[China]Population: approx. 1.4 billion
Number of hospital beds: approx. 7 million
Annual number of beds sold in the market : approx. 370,000 units (electric ratio: 9%)
Our electric bed market share: approx. 16%[India]Population: approx. 1.4 billion
Number of hospital beds: approx. 1.24 million
Annual number of beds sold in the market : approx. 130,000 units (electric ratio: 20%)
Our electric bed market share: approx. 20%[Indonesia]
Population: approx. 270 million
Number of hospital beds: approx. 330,000
Annual number of beds sold in the market : approx. 23,000 units (electric ratio: 30%)
Our electric bed market share: approx. 70%- No. 1 market share of medical beds incountries of operations, focusing on
China, India, and Indonesia- Increase production capacity to support
increase in number of beds sold
- Aim for CAGR 10% in sales
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Increase overseas net sales
to 15 billion yen
33

4-10. Phase II Performance Targets (Overseas)
Consolidated overseas net sales
FYE 3/2022
Result(Unit: millions of yen)

FYE 3/2027
Targetvs. FYE 3/2022
Result7,923

13,500+70%

Indonesia

2,772

4,900

+77%

China

2,803

4,600

+64%

Other Asia

2,346

4,000

+71%

890

1,500

+69%

Total

8,813

15,000+70%

Overseas sales
ratio

9.8%

12.5%

-

Asia

Outside of
Asia

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34

4-11. Phase II Performance Targets (by Business)
Net sales by business(Unit: millions of yen)

FYE 3/2022
ResultFYE 3/2027
Targetvs. FYE 3/2022
ResultMedicalBusiness

34,23049,600+45%

Nursing Care
Business

52,31762,900+20%

HealthPromotion
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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35

4-12. 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
FYE 3/2023 ~ FYE 3/2026

Cash inCash out
Shareholder return
20 billion yen~
Income tax
20 billion yen~
Growth investment

EBITDA
115 billion yen~

Capital investment
15 billion yen~

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

Growth investment
Recurring assets to strengthen ongoing relationships with customers
Enhancement of production facilities and equipment of maintenance ofrental assistive products / Renewal of system infrastructure
Active development of partnerships with other companies, including
establishment of CVC for business development

Recurring assets,
CVC establishment,
etc.
70 billion yen~
Allocation of
cash on hand
10 billion yen~
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<Stance on level of cash on hand>
Approx. 3 months of working capital＋

Maintain business operation system capable of continuously
providing products and services that contribute to medical
and nursing care even in the event of a disaster36

5-1. Topics
Accelerate activities to contribute to SDGs
Identify 6 material issues (materiality) and promote efforts to address them
1. Support for the establishment of asustained medical and nursing caresystem

4. Promotion of employee health,diversity, and work style reform

2. Creation of an environment where
everyone can live healthily and happily

5. Environmentally conscious
business activities

3. Pursuit of product safety

6. Ensuring complianceFree "sleep" education program forjunior high school students (June)
Purpose:
Deepen understanding of sleep and learn about its importance
Destination:
The "SENSEI Yononakagaku" platform (provided by
ARROWS Inc.), where more than 40,000 teachers nationwide are registered
Results:
In about five months, classes were held nationwide for approx. 25,000 juniorhigh school students. The program is scheduled to be held for an additional
10,000 junior high school students this fiscal year.
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Image of the sleep education programfor junior high school students37

5-2. Topics
Accelerate activities to contribute to SDGs

Published the Paramount Bed Holdings Integrated Report 2022
Public URL: https://www.paramountbed-hd.co.jp/ir/reference/integration(Japanese only, English version will be published by the end of December 2022)

Main content:- Introduction- Message from the President andChief Executive Officer- Value creation story- Medium-term management plan
- Message from the CFO- Strategy by business- Sources of value creation- Sustainability initiatives- Performance and Corporate information
Cover of the Integrated Report

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38

Notice

The performance forecasts provided in this document have been prepared basedon the information available as of the presentation date.
As such, actual performance may differ from the forecasts due to various factors.
The information on products and services (including those under development)
listed in this document is not intended for advertising purposes.
Monetary amounts in this document have been rounded down.
The percentages shown in the % to Budget and YoY Change figures indicate
change using + and - symbols, and are rounded to the nearest place.

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39