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.

Aug 6, 2013

Consolidated Financial Results
for the First Three Months of the Fiscal Year Ending March 31, 2014
<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 Representative Director
Contact:
Kenji Ouchi, Executive Officer, General Manager of Finance Division
TEL: 03-3648-1100
Scheduled date to file Quarterly Securities Report:
August 12, 2013
Scheduled date to commence dividend payments:–
Preparation of supplementary material on quarterly financial results: None
Holding of quarterly financial results presentation meeting:
None(Millions of yen with fractional amounts discarded, unless otherwise noted)

1.

Consolidated financial results for the first three months of the fiscal year ending
March 31, 2014 (from April 1, 2013 to June 30, 2013)(1) Consolidated operating results (cumulative)
Net sales
Three months ended(Percentages indicate year-on-year changes.)

Operating income

Millions of yen% Millions of yen

Ordinary income% Millions of yen

Net income% Millions of yen%

June 30, 2013

14,867(5.5)

2,141 (23.4)

2,261 (18.5)

1,368 (15.3)

June 30, 2012

15,737

–

2,793

2,773

1,616

Note:

–

Comprehensive income Three months ended June 30, 2013: ¥1,633 million:
Three months ended June 30, 2012: ¥1,444 million:
Basic earnings
per share––[13.1%][–%]

Diluted earnings
per share

Three months ended

Yen

Yen

June 30, 2013

44.71

44.63

June 30, 2012

52.66

52.51

The year-on-year change for the three months ended June 30, 2012, is not provided because the Company has prepared quarterly
consolidated financial statements since the third quarter ended December 31, 2011.

(2) Consolidated financial position
Total assets
As of

Net assets

Equity-to-asset ratio

Millions of yen

Millions of yen%

June 30, 2013

100,075

77,505

77.1

March 31, 2013

103,901

76,62573.5

Reference: Equity
As of June 30, 2013:
As of March 31, 2013:¥77,177 million¥76,320 million

2.

Dividends
Dividends per shareFirst quarter-end

Second quarter-end Third quarter-end

Fiscal year-end

Total

Yen

Yen

Yen

Yen

Yen

–

20.00

–

25.00

45.00

25.00

–

25.00

50.00

Fiscal year ended
March 31, 2013
Fiscal year ending
March 31, 2014
Fiscal year ending
March 31, 2014
(Forecast)–

Note: Revisions to the dividends forecasts most recently announced: None3.

Consolidated earnings forecasts for the fiscal year ending March 31, 2014
(from April 1, 2013 to March 31, 2014)(Percentages indicate year-on-year changes.)
Net sales

Operating income

Ordinary income

Millions ofyenMillions ofyenMillions ofyen%

Six months ending
September 30, 2013

31,3003.6

4,300 (17.6)

Fiscal year ending
March 31, 2014

70,4005.5

12,200%8.5%

Basic earnings
per share

Net income
Millions of
yen

%

Yen

4,500 (12.5)

2,700 (11.7)

88.13

12,6007,600

248.085.2

7.1

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
Note: For changes in subsidiaries that are not deemed as changes in specified subsidiaries, please refer to “2. Mattersregarding summary information (Notes), (1) Changes in significant subsidiaries during the period” on page 3 of theattached materials.

(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: None
d. Restatement: None(4) Number of shares issued (common stock)a. Number of shares issued at the end of the period (including treasury stock)
As of June 30, 2013
As of March 31, 2013b.

Number of shares of treasury stock at the end of the period
As of June 30, 2013
As of March 31, 2013c.

30,806,587 shares
30,792,587 shares

184,760 shares
188,384 shares

Average number of shares outstanding during the period (cumulative from the beginning of the
fiscal year)
Three months ended June 30, 2013
Three months ended June 30, 2012

30,612,978 shares
30,687,863 shares* Indication regarding execution of quarterly review procedures
The completion of quarterly review procedures in accordance with the Financial Instruments and Exchange Act is
not required for preparing this quarterly financial results report. At the time of disclosure of this quarterly financial
results report, the review procedures for quarterly consolidated financial statements in accordance with the Financial
Instruments and Exchange Act are incomplete.
* Proper use of earnings forecasts, and other special matters
Caution regarding forward-looking statements and others
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, thestatements herein do not constitute assurances regarding the Company’s actual results. Actual financial and otherresults may differ substantially from the statements herein due to various factors. Please refer to “1. Qualitative
information regarding financial results for the first three months, (3) Information regarding consolidated earnings
forecasts and other forward-looking statements” on page 2 of the attached materials for the suppositions that form theassumptions for the earnings forecasts and cautions regarding the use of the earnings forecasts.

Attached Materials

Index
1. Qualitative information regarding financial results for the first three months ....................................... 2(1) Information regarding operating results ........................................................................................... 2(2) Information regarding financial position ......................................................................................... 2(3) Information regarding consolidated earnings forecasts and other forward-looking statements ...... 2
2. Matters regarding summary information (Notes) ................................................................................... 3(1) Changes in significant subsidiaries during the period...................................................................... 3(2) Application of special accounting for preparing quarterly consolidated financial statements......... 3(3) Changes in accounting policies, changes in accounting estimates, and restatement ....................... 3
3. Significant events regarding premise of going concern ......................................................................... 3
4. Quarterly consolidated financial statements ........................................................................................... 4(1) Consolidated balance sheets............................................................................................................. 4(2) Consolidated statements of income and consolidated statements of comprehensive income .......... 6
Consolidated statements of income (cumulative) ............................................................................ 6
Consolidated statements of comprehensive income (cumulative) ................................................... 7(3) Notes to quarterly consolidated financial statements ....................................................................... 8
Notes on premise of going concern.................................................................................................. 8
Notes on substantial changes in the amount of shareholders’ equity ............................................... 8
Significant subsequent events .......................................................................................................... 8

-1-

1.

Qualitative information regarding financial results for the first three months(1) Information regarding operating results
In the Japanese economy in the three months ended June 30, 2013, there were some signs ofimprovement in corporate earnings and personal consumption. This reflected further correction in
the yen’s appreciation and recovery in stock prices on the back of optimism regarding various
government measures aimed at ending deflation and revitalizing the economy. Nevertheless,Japan’s economic prospects remained unclear mainly because of downswings in overseas
economies and raw material price rises.
Amid this environment, the Paramount Bed Group (the “Group”) pushed ahead with activities tocapture renewal demand towards the fiscal year-end in its core business of product sales targeted at
medical and elderly facilities. The Group also made concerted efforts to strengthen its overseas
business and expand its domestic business fields. In Japan, results in the maintenance service
business for beds and others and the rental business for welfare equipment were steady. Results inthe business of product sales targeted at facilities, however, were down in comparison with thestrong results of the same period of the previous fiscal year. This mainly reflected a decline in new
construction-related orders. Results in the overseas business were generally solid.
As a result of the above, in the three months ended June 30, 2013, net sales were ¥14,867 million(down 5.5% year on year), operating income was ¥2,141 million (down 23.4%) and ordinary
income was ¥2,261 million (down 18.5%). Net income was ¥1,368 million (down 15.3%).
Because the business of the Group consists of a single business segment, information by businesssegment is not provided.
(2) Information regarding financial position
Total assets as of June 30, 2013, amounted to ¥100,075 million, which was a decline of ¥3,826
million compared to March 31, 2013. The primary factors in this decline were decreases in cash anddeposits, notes and accounts receivable-trade and securities.
Liabilities amounted to ¥22,569 million, which was a decline of ¥4,706 million compared to March
31, 2013. The primary factors in this decline were decreases in accounts payable-trade, income
taxes payable and provision for bonuses.
Net assets amounted to ¥77,505 million, which was an increase of ¥880 million compared to March
31, 2013. The primary factors in this increase were an increase of ¥1,368 million in net income anda decline in retained earnings due to the payment of a year-end dividend. As a result, the equity-toasset ratio as of June 30, 2013, increased by 3.6 percentage points compared to March 31, 2013, to77.1%.
(3) Information regarding consolidated earnings forecasts and other forward-looking statements
No revisions have been made to the consolidated earnings forecasts announced on May 13, 2013.

-2-

2.

Matters regarding summary information (Notes)(1) Changes in significant subsidiaries during the period
No items to report.
Effective from the first quarter ended June 30, 2013, Paramount Bed Asia Pacific Pte. Ltd., which
was previously an unconsolidated subsidiary of the Company, has been included in the scope of
consolidation in line with an increase in its significance within the Group. However, this change is
not deemed a change in specified subsidiaries.
(2) Application of special accounting for preparing quarterly consolidated financial statements
No items to report.
(3) Changes in accounting policies, changes in accounting estimates, and restatement
No items to report.

3.

Significant events regarding premise of going concern
No items to report.

-3-

4.

Quarterly consolidated financial statements(1) Consolidated balance sheets(Millions of yen)
As of March 31, 2013
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

As of June 30, 2013

16,073
21,616
2,287
4,640
4,094
243
1,313
2,531
(60)

14,257
18,390
2,435
3,927
4,704
195
1,357
2,781
(49)

52,73948,00026,335(16,836)

26,385(16,973)

Buildings and structures, net

9,499

9,412

Machinery, equipment and vehicles
Accumulated depreciation

7,056(5,835)

7,181(5,955)

1,220

1,225

Land
Lease assets
Accumulated depreciation
Lease assets, net

8,676
361
(240)
120

8,679
257
(147)
109

Assets for rent
Accumulated depreciation

13,978(5,085)

14,477(5,299)

8,892

9,177

191
8,126
(6,806)394
8,173(6,871)

Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation

Machinery, equipment and vehicles, net

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 noncurrent assets
Total assets

-4-

1,320

1,301

29,92030,302

121
2,299

101
2,241

2,420

2,343

15,1843,701(65)

16,2973,196(65)

18,821

19,42951,162

52,075

103,901

100,075

(Millions of yen)
As of March 31, 2013
Liabilities
Current liabilities
Accounts payable-trade
Short-term loans payable
Lease obligations
Income taxes payable
Provision for bonuses
Provision for directors’ bonuses
Other

As of June 30, 2013

7,978
215
1,981
3,460
1,125
104
4,346

6,884
194
2,115
441
560
–
4,012

19,212

14,209

457
3,665
3,278
46
616

518
3,771
3,432
46
592

8,064

8,360

Total liabilities

27,276

22,569Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock

4,135
49,80521,656(477)

4,147
49,817
22,234(468)

75,12075,730

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment

766
434

766
680

Total accumulated other comprehensive income

1,200

1,446

29
275

25
303

76,62577,505

103,901

100,075

Total current liabilities
Noncurrent liabilities
Long-term loans payable
Lease obligations
Provision for retirement benefits
Provision for environmental measures
Other
Total noncurrent liabilities

Total shareholders’ equity

Subscription rights to shares
Minority interests
Total net assets
Total liabilities and net assets-5-(2) Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income (cumulative)(Millions of yen)Three months ended
June 30, 2013

Three months ended
June 30, 2012
Net sales
Cost of sales

15,7378,400

14,867
7,770

Gross profit

7,336

7,096

Selling, general and administrative expenses

4,542

4,955

Operating income

2,793

2,141

22
22
7
–
–
52

29
69
–
38
53
36

104

227

29
–
27
49
18

23
83
–
–
0

Non-operating income
Interest income
Dividends income
Foreign exchange gains
Gain on investments in partnership
Gain on investments in silent partnership
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Loss on investments in partnership
Loss on investments in silent 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 loss
Loss on sales of investment securities
Loss on redemption of investment securities
Total extraordinary losses
Income before income taxes and minority interests

125

107

2,773

2,261

0
–
0

26
39
65

29
–

–
0

29

0

2,743

2,326

Income taxes-current
Income taxes-deferred

852
251

453
501

Total income taxes

1,104

955

Income before minority interests

1,639

1,371

Minority interests in income
Net income

-6-

22

2

1,616

1,368

Consolidated statements of comprehensive income (cumulative)(Millions of yen)Three months ended
June 30, 2013

Three months ended
June 30, 2012
Income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of theparentComprehensive income attributable to minority
interests

-7-

1,639

1,371

(247)
52

0
261

(194)

261

1,444

1,633

1,411

1,614

33

18

(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.
Significant subsequent events
The Company issued Zero Coupon JPY Convertible Notes Due July 26, 2018 (convertible notestype notes with stock acquisition rights, tenkanshasaigata shinkabu yoyakuken-tsuki shasai;
hereinafter referred to as the “Notes with Stock Acquisition Rights,” of which the notes shall bereferred to as the “Notes” and the stock acquisition rights shall be referred to as the “Stock
Acquisition Rights”) by resolution of a meeting of the Board of Directors held on July 10, 2013.
Payment was completed on July 26, 2013.
The Notes with Stock Acquisition Rights are summarized as follows.
1. Name of Notes
Paramount Bed Holdings Co., Ltd. Zero Coupon JPY Convertible Notes Due July 26, 2018
(convertible notes-type notes with stock acquisition rights, tenkanshasaigata shinkabu
yoyakuken-tsuki shasai)
2. Issue price100.5% of principal amount of the Notes
3. Offer price
103% of principal amount of the Notes
4. Aggregate principal amount¥10,000,000,000
5. Principal amount of each Note
¥5,000,000
6. Coupon
The Notes bear no interest.
7. Form of the Notes with Stock Acquisition Rights
They are bearer notes with stock acquisition rights. The holders of any Note or Notes with Stock
Acquisition Rights may not require the Company to change the certificate of the Note or Notes
with Stock Acquisition Rights from bearer form to registered form.
8. Collateral or guarantee
The Notes are unsecured and unguaranteed.
9. Final maturity
July 26, 2018
10. Redemption method
a. Redemption at final maturity
The Notes shall be redeemed at 100% of their principal amount.
b. Early redemption through call option provision
On July 26, 2016, or thereafter, the Company may carry out early redemption through a call
option provision stipulated in the issuance terms and conditions of the Notes with Stock
Acquisition Rights.
c. Other forms of early redemption
Other than the above, in certain cases early redemption may be carried out as stipulated in
the issuance terms and conditions of the Notes with Stock Acquisition Rights.

-8-11. Matters regarding the Stock Acquisition Rights
a. Class of shares underlying the Stock Acquisition Rights
Common stock of the Company
b. Allotment dateJuly 26, 2013c. Conversion price¥4,106d. Total number of the Stock Acquisition Rights
2,000 units
e. Description and price of asset to be contributed upon exercise of the Stock Acquisition
RightsUpon exercise of each Stock Acquisition Right, the relevant Note shall be contributed at theprice equal to the principal amount of the said Note.
f. Increase in capital stock and legal capital surplus in event of issuance of shares upon
exercise of the Stock Acquisition Rights
The amount of increase in capital stock in the event of the issuance of shares upon theexercise of the Stock Acquisition Rights shall be half of the maximum increase in capitalstock, etc. calculated pursuant to Article 17 of the Ordinance on Accounting of Companies.
Any fractional amounts of less than one yen resulting from the said calculation shall be
rounded up to the nearest one yen. The amount of increase in legal capital surplus shall be
determined by subtracting the amount of increase in capital stock stipulated above from the
maximum increase in capital stock, etc.
g. Exercise period for the Stock Acquisition Rights
The Stock Acquisition Rights may be exercised at any time during a period on or after
August 9, 2013, and prior to the close of banking business in Luxembourg on July 12, 2018,
except in the case of certain stipulations that state otherwise.
h. Delivery of the Stock Acquisition Rights by successor company, etc. in case oforganizational restructuring, etc.
There are certain stipulations in the issuance terms and conditions of the Notes with Stock
Acquisition Rights.
12. Use of proceeds
The net proceeds from the issuance of the Notes with Stock Acquisition Rights will be used topurchase welfare equipment as inventories for rental purposes and as funds for capital
investment in production facilities and the like at subsidiaries of the Company.
The net proceeds are scheduled to be applied as described above by the end of March 2015.

-9-