Financial Results Briefing for the First Six Monthsof the Fiscal Year Ending March 2024 (FYE 3/2024)
April 1, 2023 to September 30, 2023
November 7, 2023
Securities
code: 7817
証券コード︓7817
Paramount
Bed Holdings Co., Ltd.
パラマウントベッドホールディングス株式会社

Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

Executive Summary
Increased sales and profits, andall-time highs for the first six months
Proposed products and services for responding to increased demand due to promoting
operational efficiency in medical facilities and nursing care facilities performed well.
In the Health Promotion business, we continued to achieve record sales despitechanges in consumer behavior and sluggish store visits due to the intense heat.
Operating income increased as the effects of increased revenue and improved grossmargins exceeded increases in expenses.

Annual plan remains unchanged
All-time high sales and profits for fourth consecutive quarter
The Medical Care and Nursing Care Businesses captured increased demand for
operational efficiency, including for work style reforms.
In the Health Promotion Business, we are aiming to increase sales by strengthening
marketing, including via the introduction of new commercials.
Although ERP costs have peaked, profits have also reached record highs due toincreased revenue.

Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

2

Table of Contents
１．Overview of Results for the First Six Monthsof the Fiscal Year Ending March 2024
２．Overview by Business３．Outlook for the Fiscal Year Ending
March 31, 2024
４．Topics
５．Appendix

Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

3

１．Overview of Results for the First Six Monthsof the Fiscal Year Ending March 2024

Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

4

1-1. Overview of Financial Results
Sales and profits increased

In the first six months of the fiscal year ending March 2024,
both sales and profits reached all-time highs(Unit: millions of yen)

FYE 3/2023
1Q/2Q
Results

Net sales

Operating profit（Operating profit
margin）
Ordinary profit（Ordinary profit
margin）
Profit attributableto owners of
Parent(Net profit
margin）

FYE 3/2024
1Q/2Q
Forecast

Results% to
Forecast

YoY
Change46,85048,70049,720

＋2.1%

+6.1%

6,218

5,600

6,480

＋15.7%+4.2%(13.3%)(11.5%)(13.0%)

7,601

5,850

7,819

＋33.7%+2.9%＋32.5%+5.0%(16.2%)(12.0%)(15.7%)

5,044

4,000

5,298

(10.8%)

Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

(8.2%)(10.7%)

5

1-2. Factors Causing Changes in Operating Profit
Profits increased due to the effects of increased revenue

Gross margin improved by approx. 1.3% due to the effects of price revisions.
Of the increases in SG&A expenses, approx. 500 million yen was spent as systemrelated costs associated with ERP renewal.
Operating Profit+262

10,0009,000+1,346

8,000
7,000
6,000

6,218
Increased
profits due tohigher sales

5,000

+643

-358

Profitincreasedue to rise ingross margin

Increase inpersonnel
expenses+1,989

4,000
3,000

-1,369
6,480
Other increases
in SG&A

Increase
Decrease-1,727

Total

Other main increases in SG&A
・Commissions paid
・Outsourcing expenses
・R&D expenses
・Advertising andpromotion expenses

2,000
1,000
0

(Unit: millions of yen)

FYE 3/2023
1Q/2Q

Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

FYE 3/2024
1Q/2Q
6

1-3. Financial Status
Net assets increased by 5,551 million yen(Unit: millions of yen)March 31,2023

September 30,
2023

ChangeYoY Change

Current assets

97,13594,292-2,842-2.9%

Non-current assets

75,15881,052+5,894+7.8%

172,293

175,345+3,051+1.8%

Current liabilities

26,30023,311-2,988-11.4%

Non-current liabilities

17,296

17,784

+488

+2.8%

Total liabilities

43,596

41,096-2,500-5.7%

Net assets

128,697

134,248+5,551+4.3%

Total liabilities andnet assets

172,293

175,345+3,051+1.8%

Total assets

Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

7

２．Overview by Business

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8

2-1. Medical Care Business+10% vs. previous period
Demand for operational
efficiency and digitalization isincreasing as domestic medical
institutions promote work stylereforms for doctors. Recurring
sales increased by approx. 20%(Unit: millions of yen)

FYE 3/2024 1Q/2Q

FYE 3/2021 FYE 3/2022 FYE 3/2023
1Q/2Q
1Q/2Q
1Q/2Q

Results

YoY

14,385

15,42817,933

19,770

+10%

Japan

10,728

11,78013,475

14,941+11%

Overseas

3,657

3,648

4,458

4,829

+8%

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

Number ofbeds soldNet Sales(millions of yen)

■Net
sales
Net sales(Japan)(Japan)20,00015,000■Net
Netsalessales(Overseas)(Overseas)

17,933
14,385
3,657

15,428

4,458

40

41

45

42

-7%

Japan

18

19

26

23

-12%

Overseas

22

22

20

20

-1%

19,770
4,829

3,648

40

10,0005,000

10,728

11,78014,9410

Number ofofbeds■Numberbeds(Japan)(Japan)50

30

13,475*Number of bed sales include sales to companies within the group.

Numberof beds(thousands)

40

41

45
20

22

22

18

19

42
20

20
10
0

FYE 3/2021
FYE 3/2022
FYE 3/2023
FYE 3/2024
FYE 3/2021
FYE 3/2022
1Q/2Q
1Q/2Q
1Q/2Q
1Q/2Q
1Q/2Q
1Q/2Q
*Applied "Accounting Standard for Revenue Recognition" (Corporate Accounting Standard No. 29) from FYE 3/2022
Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

Number ofofbeds■Numberbeds(Overseas)(Overseas)

26

23

FYE 3/2023
1Q/2Q

FYE 3/2024
1Q/2Q

9

2-2. Nursing Care Business
Beds for both nursing
facilities and home care
continue to be strong(Unit: millions of yen)

Results

YoY

22,12923,943

26,797

27,767+4%

Japan nursing
facility

4,595

4,822

5,332

5,897

+11%

Japan home care

17,381

18,67821,095

21,416+2%

Overseas

152

442

369

Net sales

Sales of Nemuri SCAN
increased by 26% from theprevious period to 13,600
beds. Sales for home careincreased due to expanded
sales of equipment, despite alull in bed sales and the returnof rental beds from COVID-19
facilities. Rental wholesale
increased by approx. 3%

FYE 3/2024 1Q/2Q

FYE 3/2021 FYE 3/2022 FYE 3/2023
1Q/2Q
1Q/2Q
1Q/2Q

453

+23%

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

Number ofbeds sold

45

56

64

60

-6%

Japan nursing
facility

14

16

18

18

+2%

Japan home care

30

37

44

40

-11%

Overseas

1

3

2

2

+20%

*Number of bed sales include sales to companies within the group.
Net Sales(millions of yen)

■売上高(国内施設)
Net sales(Japan facility)

30,00025,00020,00015,00022,129152

17,381■売上高(国内在宅)
Net sales(Japan home)

23,943442

18,678■売上高（海外）
Net sales(Overseas)

26,797369

27,767453

21,095

21,416■Net sales
ベッド台数(国内施設)(Japan facility)

70

40
30

■Net sales
■Net
sales
ベッド台数(国内在宅)ベッド台数（海外）(Japan home)

56

60
50

10,000

64
2

3

45
1

37

30

(Overseas)

60
2

44

40

20

5,000
0

Numberof beds(thousands)

4,595

4,822

5,332

5,897

FYE 3/2021
1Q/2Q

FYE 3/2022
1Q/2Q

FYE 3/2023
1Q/2Q

FYE 3/2024
1Q/2Q

10
0

14

16

18

18

FYE 3/2021
1Q/2Q

FYE 3/2022
1Q/2Q

FYE 3/2023
1Q/2Q

FYE 3/2024
1Q/2Q*Applied "Accounting Standard for Revenue Recognition" (Corporate Accounting Standard No. 29) from FYE 3/2022
Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

102-3. Health Promotion Business
Sales increased only slightly
FYE 3/2021 FYE 3/2022 FYE 3/2023
1Q/2Q
1Q/2Q
1Q/2Q

FYE 3/2024 1Q/2Q

Results
YoY
The number of customers(Unit: millions of yen)visiting stores was sluggish
716
1,020
1,276
1,282 +0%
Net sales
due to changes in consumer
sentiment following the
716
1,020
1,276
1,282 +0%Japan
reclassification of COVID-19
0%
0
0
0
0
as a Class 5 infectious disease and Overseas
the effects of the intense heat. (Units: thousands, fractions rounded. YoY comparisons are calculated based on actual numbers.)
New commercials were
Number of
-8%
3
4
5
5
introduced in October tobeds soldstrengthen sales of products
-8%
3
4
5
5
Japan
such as the INTIME 1000,
which was released in April.
0%
0
0
0
0
Overseas*Number of bed sales include sales to companies within the group.
■Net
sales
売上高(国内)(Japan)Net Sales(millions of yen)
1,400
1,200

1,020

1,000

0

800
600
400

716
0

1,020

■Net
sales
売上高（海外）(Overseas)

1,276
0

1,282
0

1,276

1,282

FYE 3/2021
1Q/2Q

3

1

FYE 3/2022
1Q/2Q

FYE 3/2023
1Q/2Q

FYE 3/2024
1Q/2Q

0

■Numberof beds
ベッド台数（海外）(Overseas)

5

5

2

716

■Numberof beds
ベッド台数(国内)(Japan)

6

4

200
0

Numberof beds(thousands)

4

0

0

5

5

FYE 3/2023
1Q/2Q

FYE 3/2024
1Q/2Q

0

3
0

4

3

FYE 3/2021
1Q/2Q

5

FYE 3/2022
1Q/2Q*Applied "Accounting Standard for Revenue Recognition" (Corporate Accounting Standard No. 29) from FYE 3/2022
Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

112-4. List by Business
Recurring domestic sales increased by 7% to 16.7 billion yen
Net Sales(Unit: millions of yen)

FYE 3/2023

FYE 3/2024

1Q/2Q
Results

1Q/2Q
Results

Number of beds sold

(Units: thousands, fractions rounded)

FYE 3/2023
YoY

1Q/2Q
Results

FYE 3/2024
1Q/2Q
Results

YoY

Medical Care
Business

17,933

19,770+10.2%

45

42

-7%

Nursing Care
Business

26,797

27,767

+3.6%

64

60

-6%

1,276

1,282

+0.4%

5

5

-8%

Other

842

900

+6.9%

-

-

-

Total

46,85049,720

+6.1%

115

107

-7%

Health Promotion
Business*Number of beds sales include sales to companies within the group*Reference data (recurring domestic sales)（rounded to the nearest hundred million yen)

Medical Care
Business

2.9 billion yen

3.6 billion yen+21%

Nursing Care
Business

12.7 billion yen

13.1 billion yen

+3%

Total

15.7 billion yen

16.7 billion yen+7%

Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

122-5. Overseas Sales by Region
Increased 9% vs. the previous year

China saw an increase in sales in reaction to the lock down in the previous year.
Sales in Indonesia are biased toward the second half of the fiscal year.
Consolidated overseas sales by region(Unit: millions of yen)

FYE 3/2023 FYE 3/2024
1Q/2Q
1Q/2Q

Consolidated
overseas net
sales

4,828

Overseas sales
ratio

10.3%

Consolidated
overseas net sales(millions of yen)

Consolidated
海外連結売上高
overseas net sales

4,828

4,000
3,000

5,283

+9%

10.3

10.6%

－

Percentage of
海外売上高⽐率

Percentage ofoverseas net sales
(%)
16.0

overseas net sales

5,283
10.6

12.0
10.0
8.0

1,000

FYE 3/2023
1Q/2Q

YoY

(Unit: millions of yen)

4,241

4,743

+12%

Indonesia

1,552

1,134

-27%

China

1,499

2,024

+35%

Other Asia

1,188

1,584

+33%

Middle East

144

21

-85%

Central andSouth America

214

446

+108%

Other

228

72

-68%

14.0

2,000

0

FYE 3/2023 FYE 3/2024
1Q/2Q
1Q/2Q

Asia

6,000
5,000

YoY

FYE 3/2024
1Q/2Q

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6.0

13

３．Outlook for the Fiscal Year Ending
March 31, 2024

Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

143-1. Outlook for the Full YearSales and profits to increase forthe 4th consecutive year to reach all-time highs(Unit: millions of yen)

FYE 3/2023
Results

FYE 3/2024
First half
results

Second half
prospects

Full year
forecast

YoY

Net sales

99,00949,72055,280105,000+6.1%

Operating profit

13,452

6,480

7,520

14,000+4.1%（Operating profit
margin）

Ordinary profit（Ordinary profit
margin）

Profit attributableto owners of parent（Net profit margin）(13.3%)(13.6%)(13.0%)(13.6%)

14,139

7,819

6,681

14,500

+2.6%

9,800

+6.3%

(14.3%)(12.0%)(12.1%)

9,215

5,298

4,502

(9.3%)(10.7%)

Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

(8.1%)(13.8%)(9.3%)

15

3-2. Factors Causing Changes in Operating Profit
Continuously increase operating profit by overcoming
increases in system-related costs due to the effects ofincreased revenue（Unit: millions of yen）

Operating profit+548+2,99016,00014,00013,452+208-800

Profit increase
due toimprovedgross margin

Increase insystem-related
costs

Profit increase due to
net sales growth

12,00010,000+3,198

8,000
6,000

-1,851

14,000

Other increase in
SG&A due toincreasedsales, etc

Increase-2,651

Decrease
Total

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

4,000
2,000
0

FYE 3/2023
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FYE 3/2024(outlook)16

3-3. Outlook for Medical Care Business
Expecting expansion ofrecurring revenue
Recurring revenue businessand smart bed systems, etc.
are expected to expand.
In overseas, sales should
increase mainly in large
markets.

FYE
3/2022FYE
3/2023

Outlook

YoY

33,444

34,23037,291

39,119+5%

Japan

25,76926,43528,72929,349+2%Overseas

7,675

7,795

8,561

9,770

+14%

(Unit: millions of yen)

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

Number ofbeds soldNet Sales(millions of yen)

40,00030,000

売上高(国内)■Net
sales(Japan)

90

89

95

100

+5%

Japan

44

47

55

51

-6%

Overseas

47

41

41

49

+21%

Numberof beds(thousands)

売上高（海外）■Net
sales(Overseas)

37,291

39,119

100

8,561

9,770

80

33,444

34,230

7,675

7,795

25,76926,43528,729FYE 3/2021

FYE 3/2022

FYE 3/2023

60

20,00010,0000

FYE 3/2024

FYE
3/2021

29,349

90

89

47

41

44

47

FYE 3/2021

FYE 3/2022

ベッド台数（海外）■Numberof beds(Overseas)

95

100

41

49

55

51

FYE 3/2023

FYE 3/2024

40
20

FYE 3/2024

ベッド台数(国内)■Numberof beds(Japan)0*Applied "Accounting Standard for Revenue Recognition" (Corporate Accounting Standard No. 29) from FYE 3/2022
Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

17

3-4. Outlook for Nursing Care Business
FYE 3/2024

FYE
FYE
FYE
Pursuing reliable increase
3/2021
3/2022
3/2023(Unit: millions of yen)in net sales by
50,482 52,317 57,521
strengthening our lineup Net sales

Outlook

YoY

60,669+6%

14,016 13,442 14,912
15,438 +4%
We expanded our product lineup
Japan home care
36,049 37,855 41,899
44,202 +6%
and also introduced original
Overseas
416
1,018
709
1,029 +45%
products for rental wholesalers.
In the facilities business,(Units: thousands, fractions rounded. YoY comparisons are calculated based on actual numbers.)
emphasis remains on market
Number of
inroads for the new Nemuri
-3%
108
123
132
129
beds sold
CONNECT and Nemuri SCAN
Japan nursing-7%
systems.
38
40
45
42
facility
Japan nursing
facility

Japan home care

66

77

84

81

-3%

Overseas

3

6

4

6

+69%

*Number of bed sales include sales to companies within the group.
Net Sales(millions of yen)
60,00050,000

売上高(国内施設)■Net sales(Japan facility)

50,482416

売上高(国内在宅)■Net sales(Japan home)

52,3171,018

40,00030,00036,04937,855

売上高（海外）■Net sales(Overseas) 60,680

57,495
709

1,040

0

120
100

41,88944,20220,00010,000

Numberof beds(thousands)

80
60■Net sales

ベッド台数(国内施設)(Japan facility)■Net sales■Net sales
ベッド台数(国内在宅)ベッド台数（海外）(Japanhome)(Overseas)

123
6

108

132
4

129
6

3

77

66

84

81

40

14,016

13,442

14,886

15,438FYE 3/2021

FYE 3/2022

FYE 3/2023

FYE 3/2024

20
0

38

40

45

42

FYE 3/2021

FYE 3/2022

FYE 3/2023

FYE 3/2024*Applied "Accounting Standard for Revenue Recognition" (Corporate Accounting Standard No. 29) from FYE 3/2022
Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

18

3-5. Outlook for Health Promotion BusinessNew commercial is
now airing
We have renewed our brandstrategy and strengthened ourvarious PR activities and dealer
support measures.
We will strive to expand salesof the new INTIME 1000.

FYE
3/2022FYE
3/2023

1,584

2,141

2,517

3,500

+39%

Japan

1,584

2,141

2,517

3,500

+39%

Overseas

0

0

0

0

0%

(Unit: millions of yen)

Net sales

売上高(国内)■Net
sales(Japan)

売上高（海外）■Net
sales(Overseas)

3,500
3,000

2,141

2,500
2,000
1,500
1,000
500
0

1,584
0

1,584

FYE 3/2021

2,141

FYE 3/2022

9

10

12

+26%

Japan

7

9

10

12

+26%

Overseas

0

0

0

0

0%

3,500
0

0

Numberof beds(thousands)

ベッド台数(国内)■Numberof beds(Japan)

10

2,517

12
9
0

7

10

9

10

FYE 3/2022

FYE 3/2023

70

FYE 3/2021

0

0

0
5

FYE 3/2024

ベッド台数（海外）■Numberof beds(Overseas)

15

3,500

FYE 3/2023

YoY

7

2,517

0

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

Number ofbeds soldNet Sales(millions of yen)

FYE 3/2024

FYE
3/202112FYE 3/2024*Applied "Accounting Standard for Revenue Recognition" (Corporate Accounting Standard No. 29) from FYE 3/2022
Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

193-6. List by Business
Recurring domestic sales projected to increase 7% YoY to 34
billion yen
Net Sales(Unit: millions of yen)

FYE 3/2023

FYE 3/2024

Results

Outlook

Number of beds sold

(Units: thousands, fractions rounded)

FYE 3/2023
YoY

Results

FYE 3/2024
YoY

Outlook

Medical Care
Business

37,291

39,119

+4.9%

95

100

+5%

Nursing Care
Business

57,49560,669

+5.5%

132

129

-3%

2,517

3,500

+39.0%

10

12

+26%

Other

1,678

1,710

+1.9%

-

-

-

Total

99,009105,000

+6.1%

237

241

+2%

Health Promotion
Business*Number of beds sales include sales to companies within the group*Reference data (recurring domestic sales)（rounded to the nearest hundred million yen)

Medical Care
Business

6 billion yen

6.6 billion yen+9%

Nursing Care
Business

25.6 billion yen

27.4 billion yen

+7%

Total

31.6 billion yen

34 billion yen+7%

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20

3-7. Overseas Sales by Region
Focus on business expansion in large markets

Consolidated overseas sales by region(Unit: millions of yen)

FYE
3/2023FYE
3/2024
Outlook

9,271 10,800+16.5%

Overseas sales
ratio

9.4%

10.3%

-

(millions of yen)

Consolidated
海外連結売上高
overseas net sales

12,00010,000

9,271

8,000
6,000

9.4

Percentage of
海外売上高⽐率overseas net sales

10,800Percentage ofoverseas net sales
(%)
15.0
14.0

10.3

12.0
11.0

8,174

9,897

+21.1%

Indonesia

2,874

3,657

+27.2%

China

3,029

3,524

+16.3%

Other Asia

2,269

2,715

+19.7%

Middle East

222

235

+5.9%

Central andSouth America

505

526

+4.0%

Other

369

140

-62.0%

Asia

10.0
9.0
8.0
7.0

2,000

6.0

FYE 3/2023

YoY

13.0

4,000

0

FYE
3/2024
Outlook(Unit: millions of yen)

Consolidated
overseas net
sales

Consolidated
overseas net sales

FYE
3/2023

YoY

FYE 3/2024

Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

5.0

21

3-8. Capital Expenditures, Depreciation Costs, andR&D Expenses
Capital expenditures includes investments to the
new system infrastructure
The budget also includes upgrade to coating equipment at the Indonesian factory.

(Unit: millions of yen)

FYE 3/2021

FYE 3/2022

FYE 3/2023

FYE 3/2024
BudgetCapital expenditures

2,976

1,822

3,653

3,613

Depreciation costs

7,540

7,898

8,482

9,671

R&D expenses

1,782

1,697

1,753

1,975

Number of
employees

3,614

3,682

3,946

-

*Reference data
Recurring asset
investment value(rounded to the nearest hundred million yen)

8.9
billion yen

10.1
billion yen

Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

10.1
billion yen

11.6
billion yen
22

3-9. Shareholder Returns(Dividends and Purchase of Treasury Shares)

Basic Policy: Increase in stable dividends with 2.7% DOE
and payout ratio of 30% as a guide (under review, including revisions)
The guidance targets an annual dividend of 62 yen in FYE 3/2024 for the fourth consecutive dividend hike.
FYE 3/2020

FYE 3/2021

FYE 3/2022

FYE 3/2024
OutlookFYE 3/2023

Dividends per share*

50 yen51.5 yen

55 yen59 yen62 yenDividend on equity
(DOE)

2.7%

2.7%

2.7%

2.7%

-

Payout ratio

42.3％

34.8％

35.2％

37.3％

36.9%

Value of sharebuybacks

million yen

4,382

0 yen

0 yen

0 yen

-

Dividends per share*
(yen)
60

Payout ratio
配当性向

Dividends
年間配当⾦
per share

50

51.5

55

59

62

Payout ratio (%)
60

50
40
30

40

42.3

20

34.8

35.2

37.3

FYE 3/2021

FYE 3/2022

FYE 3/2023

36.9

20

10
0

FYE 3/2020

FYE 3/2024(Outlook)0* 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, 2019.
Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

23

４．Topics

Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

24

4-1. Topics (Medical Care Business, Japan)

Accelerate sales of the smart bed system
Contribute to the promotion of medical staff work style reforms●This system, which is built around a bedside terminal and links vital signs measurement devices
with a communications function, electronic medical records, staff terminals, various sensors, andother ICT equipment, contributes to input work, information sharing, night-time monitoring, anddata utilization.
●Cumulative number of hospitals with deployments: 32 hospitals (as of end-March 2023)⇒ Expect approx. 20 hospitals to newly introduce the system this fiscal year
Bedside terminal

Staff station terminal

Nemuri SCAN (body movement sensors)

Vital signs measurement device
with communications functions

Ability to confirm the state ofpatients on a large screen
Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

25

4-2. Topics (Medical Care Business, Overseas)
Focus on China, India, and Indonesia
Situation in each country (Paramount Bed Holdings estimates)
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%

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%●Started construction of a new factory in India
Planned completion and operationin 2024, doubling production capacity
Conceptual image of the new factory in India
Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

26

4-3. Topics (for Nursing Care Business and Facilities)
Nemuri CONNECT cloud-based monitoring support system
Dashboard / management functions(for facility managers and corporate HQ)
Nemuri CONNECT server

Nemuri SCAN

Web
camerasystemNurse
call system

Incoming
calls

Cloud server

Dashboard function allows HQ tomanage and analyze multiple facilities

Real-time monitor/
daily diary display function(for facility staff)

User John Smith> 60 min.

Nemuri SCAN body movement sensor

Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

-50dBmCentrally manager user status

Understand sleep, wakefulness, andbreathing rate, etc. in real time

Support functions for task
management and recordingwork

Daily diary data display functionthat is effective for improving
care and verifying effectiveness

More than 160,000 units of Nemuri SCAN
and the new Nemuri CONNECT system
are contributing to the promotion of
DX for nursing care27

4-4. Topics (Health Promotion Business)
Promoting a rebuilding of brand strategy
Aiming to change perceptions of electric beds andexpand the market
Renewed the TV commercial for the INTIME
brand●New concept: "Electric beds that bring power to your life"● "Kimi wa Tennen Shoku" by Eiichi Ohtaki is used as thesong for the commercial● Started airing in October

INTIME 1000 had a model refresh in April

Use image of the new INTIME 1000
Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

●INTIME1000 is an electric bed for consumer
households that has outstanding design and canbe transformed into a nursing care bed whenneeded●Incorporates the most requested functions andstructures for conventional electric beds toimprove convenience●Lineup includes 144 different widths, functions,and designs●Release date: April 2023
●Base price starts from 158,000 yen (tax exempt)
28

5．Appendix
Medium-Term Management Plan (May 2022)

Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

29

5-1． 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 and nursing
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）
Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

30

5-2．Status of Phase I

12 billion yen in operating income in the final year of Phase I
Net sales

Operatingincome(hundredmillions of yen)Phase I

(hundred millions of yen)

Current situation- Phase I performance targets
Aim for 12 billion yen in operating profit and 89
billion yen in sales in FYE 3/2024

FYE 3/2024

FYE 3/2018

FYE 3/2019

FYE 3/2020

Net
sales

77.2 bnbn

80.0 bn

FYE 3/2021
Forecast*1

82.3 bn
bn

bn
84 bn

89.0 bn

Operatingprofit10.6 bnbn

bn
10.5 bn

9.9 bnbn

10.8 bn12.0 bn

Operatingmargin*1 Announced on
October 30, 2020

*2 The "AccountingStandard for Revenue
Recognition" applied from
FY3/2022

April 2021 briefing materials
Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

Exceeded in FYE 3/2022

Continue steady implementation of priority
measures from Phase I and conduct activities
taking the Phase II direction into account.
315-3． 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 profit
Net sales

Phase II

1,300

(hundredmillions of yen)

Operating profit(hundredmillions of yen)Phase I

1,100

160
CAGR
6.0％

900

140
120

700

100

500

Net
sales

80
FYE 3/2027
2027年3月期
TargetFYE 3/2020
2020年3月期

FYE 3/2021
2021年3月期

FYE 3/2022
2022年3月期※1

FYE 3/2023
2023年3月期

82.3

87.1

90.3

99.0

105.0

120.0

billion yen

billion yen

billion yen

billion yen

billion yen

billion yen

FYE 3/2024
2024年3月期
Forecast

Operatingprofit

9.9

11.5

12.3

13.4

14.0

17.0

billion yen

billion yen

billion yen

billion yen

billion yen

billion yen

Operatingmargin

12.0%

13.3%

13.7%

13.6%

13.3%

14.2%

Recurring
revenueratio in
Japan

33.8%

34.6%

36.0%

35.3%

36.2%

45.0%

*1 The "Accounting Standard for Revenue Recognition" applied from FY3/2022
Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

32

5-4． 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, "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
Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

33

5-5． Phase II Direction and Focal Points
Expansion of recurring revenue businesses- Accelerate expansion of current recurring revenue businesses
Assistive products rental wholesale business (Nursing Care)
On-site hospital services (Medical Care)
Hospital packaged rentals (Medical Care)- Develop new recurring revenue business menu utilizing sensing
technology, AI, IoT, etc.

Increase recurring sales
ratio in Japan to 45%

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 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
Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

34

5-6． Phase II Performance Targets (by Business)
Net sales by business(Unit: millions of yen)

FYE 3/2023
ResultFYE 3/2027
Targetvs. FYE 3/2023
ResultMedicalBusiness

37,29149,600+33%

Nursing Care
Business

57,521

62,900+9%

HealthPromotion
Business

2,517

5,500

+119%

Other

1,678

2,000

+19%

Total

99,009120,000+21%

Operatingprofit13,451

17,000+26%

Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

35

5-7． Phase II Performance Targets (Overseas)（Unit: millions of yen）

Consolidated overseas net sales

FYE 3/2023
ResultFYE 3/2027
Targetvs. FYE 3/2023
Result8,174

13,500+65%

Indonesia

2,874

4,900

+70%

China

3,029

4,600

+52%

Other Asia

2,269

4,000

+76%

Outside of
Asia

1,096

1,500

+37%

Total

9,271

15,000+62%

Overseas sales
ratio

9.4%

12.5%

-

Asia

Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

36

5-8． Cash Allocation Plan
Priority allocation to recurring asset investments, venture investments, etc.
Aiming to strengthen ties with customers and shift to a recurring revenue business mode
Cumulative total for
FYE 3/2022 ~ FYE 3/2027
Cash In

Cash Out
Shareholder return
20 billion yen~
Income tax
20 billion yen~

EBITDA
115 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.

Growthinvestment
Capital investment
15 billion yen~

Growth investment
Recurring assets to strengthen ongoing relationships with customers
Enhancement of production facilities and maintenance equipment for rental
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~
Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

＜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 disaster37

Notice

The performance forecasts provided in this document have been preparedbased on the information available as of the presentation date.
As such, actual performance may differ from the forecasts due to various
factors.
Information regarding products and services (including those underdevelopment) described in this material 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 figuresindicate change using + and - symbols, and are rounded to the nearest
place.

Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

38