Financial Results Briefing for the Fiscal
Year Ending March 2024 (FYE 3/2024)

May 21, 2024
Securities code: 7817
Paramount Bed Holdings Co., Ltd.

© PARAMOUNT BED HOLDINGS CO., LTD. All Rights Reserved,

Executive Summary
FYE 3/2024 The recurring revenue business saw growth.
Sales and operating profit have increased for four consecutive
periods, leading to all-time high sales and profits.
The Paramount Vision Phase II Medium-Term Management
Plan has been updated with new indicators disclosed.

The dividend policy was revised.
A significant dividend increase is expected in FYE 3/2025.

© PARAMOUNT BED HOLDINGS CO., LTD. All Rights Reserved,

2

Table of contents
１．Overview of Results for the Fiscal Year Ending March 31, 2024
２．Overview by Business
３．Future Strategy and Outlook
４．Topic© PARAMOUNT BED HOLDINGS CO., LTD. All Rights Reserved,3１. Overview of Results for the
Fiscal Year Ending March 31, 2024

© PARAMOUNT BED HOLDINGS CO., LTD. All Rights Reserved,

4

Overview of Financial Results
Sales and profit increased, setting all-time highs in sales and profits
FYE 3/2023

FYE 3/2024

Results

Forecast

Results% to forecast

YoY change

Net sales

99,009105,000

106,016

＋1.0%

＋7.1%

Operating profit（Operating profit
margin）

13,452

14,00013,818(Unit: millions of yen)

Ordinary profit（Ordinary profit
margin）
Profit attributable toowners of Parent(Net profit margin)© PARAMOUNT BED HOLDINGS CO., LTD. All Rights Reserved,（13.6%）（13.3%）（13.0%）

-1.3%

＋2.7%

14,13914,50015,920＋9.8%＋12.6%＋8.4%＋15.3%（14.3%）（13.8%）（15.0%）

9,215

9,800

10,622（9.3%）（9.3%）（10.0%）

5

Factors Causing Changes in Operating Profit
Recurring revenue business has grown steadily
Achieved profit growth despite increased costs
Profit amount180(Unit: hundred
millions of yen)

Profit increase
due to sales
growth

160

+5

+33

Increase inpersonnel
costs

-10

Increase costs
due tointroduction of
new systeminfrastructure

-8

Forex

140

120

Profit increase
due to rise ingross margin

134

Other increases in
SG&A

-12

-4

138
Gross profit＋34

SG&A -30

1002023.3© PARAMOUNT BED HOLDINGS CO., LTD. All Rights Reserved,2024.36

Financial Status
Net assets increased by 7,727 million yen
FYE 3/2023

FYE 3/2024

ChangeYoY
Change97,13575,158172,293

95,496
84,523
180,020-1,639-1.7%+9,365+12.5%+7,727+4.5%

26,30017,296
43,59624,897
19,10644,004-1,403-5.3%+1,810+10.5%

+408

+0.9%

Net assets

128,697

136,016+7,319+5.7%

Total liabilities and net
assets172,293

180,020+7,727+4.5%

Unit: millions of yen

Current assets
Non-current assets
Total assets

Current liabilities
Non-current liabilities
Total liabilities© PARAMOUNT BED HOLDINGS CO., LTD. All Rights Reserved,7

２. Overview by Business© PARAMOUNT BED HOLDINGS CO., LTD. All Rights Reserved,

8

Medical Care Business (Japan)
Efficiency and digitalization related to medical staff work-style reforms drive increased results.
Recurring revenue business advanced.
No. of hospitals with on-site staffing service contracts

Medical care business sales in Japan(hundred millions of yen)
300

257

264

287

2023.3

310

200

113

hospitals＋6％2024.3

No. of hospitals with Smart Bed System installations

32 hospitals

46

2023.32024.3

hospitals＋44％

Recurring transaction volume (medical care)100

0107 hospitals

6.0 billion yen
2023.32021.3© PARAMOUNT BED HOLDINGS CO., LTD. All Rights Reserved,2022.32023.3

7.4

billion yen＋23％2024.32024.39

Medical Care Business (Overseas)
Increased sales of High-function type contributed to higher revenue

Medical care business sales in overseas

No. of beds sold for overseas markets(hundred millions of yen)
100
80

76

77

85

96

41 thousand

40

2023.32024.3thousand−0％

Sales for India including non-consolidated

60

1.4 billion yen
2023.340

1.7

billion yen＋22％2024.320
02021.3© PARAMOUNT BED HOLDINGS CO., LTD. All Rights Reserved,2022.32023.32024.310

Nursing Care Business (for nursing homes)
The use of Nemuri SCAN permeates rapidly
Launch of the cloud-based monitoring support system "Nemuri CONNECT"
Nemuri SCAN annual sales volume (nursing care)

Nursing Care Business facilities(hundred millions of yen)

183
150

143

142

153

34 thousand

432023.32024.3＋28％

Nemuri SCAN cumulative sales volume (nursing care)

144 thousand

1002023.3187

thousand＋29％2024.3

No. of facilities with Nemuri CONNECT contracts

502023.100

thousandService launch

177

Facilities━

2024.32021.3© PARAMOUNT BED HOLDINGS CO., LTD. All Rights Reserved,2022.32023.32024.311

Nursing Care Business (for home care)
Sales of assistive products other than beds are expanding
Rental wholesale has grown, overcoming returns from COVID-19 facilities

Recurring transaction volume (nursing care)

Nursing Care Business (home care)(hundred millions of yen)

400

361

380

421

429

25.6 billion yen

26.5

2023.32024.3billion yen+4％

No. of rental wholesale users

300

512 thousand

200

2023.3553

thousand＋8％2024.3100
02021.3© PARAMOUNT BED HOLDINGS CO., LTD. All Rights Reserved,2022.32023.32024.312

Health Promotion BusinessChange in consumer behavior after reclassification of COVID-19 to Class 5 affects sales

Health Promotion Business(hundred millions of yen)
30

20

25
21

No. of bed sales (health promotion)

9.8 thousand

222023.3

8.4

thousand−15％

2024.3151002021.3© PARAMOUNT BED HOLDINGS CO., LTD. All Rights Reserved,2022.32023.32024.313

３．Future Strategy and Outlook© PARAMOUNT BED HOLDINGS CO., LTD. All Rights Reserved,

14

Positioning of Corporate Principles, Vision, and Medium-Term Management Plan

Corporate Principles

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

Paramount Vision 2030
Smiles for everyone from medical and nursing care to healthfield

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

© PARAMOUNT BED HOLDINGS CO., LTD. All Rights Reserved,

Medium-Term
Management Plan

15

Review of Phase I
Performance targets exceeded 2 years ahead of schedule. All-time high sales and profits for four
consecutive years.
Phase I

Unit: hundred
millions of yen

Sales(bar graph)

1,060
990

1000

871
800

823
99

600

© PARAMOUNT BED HOLDINGS CO., LTD. All Rights Reserved,

2020.3

115

138

903
123

Operating profit(line graph)

180
160
140
120

134

100
80

2021.32022.32023.32024.360

16

Phase II Priority Measures
March 2024

March 2027

March 2030

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

Phase II Priority Measures
Expansion of recurring revenue businesses
Advancement of Health Promotion Business
Leap forward in key areas of Asia

Becoming an indispensable presence asa partner to our customers
Initiatives to address SDGs and make social contributions, strengthening of
human resource foundations, and renewal of system infrastructure© PARAMOUNT BED HOLDINGS CO., LTD. All Rights Reserved,

17

Status of Priority Measures Businesses
Recurring revenue
transaction volume

25.3 billion yen

34.0

2020.3billion yen

2024.3

34% growth

Health Promotion
Business sales

1.2

billion yen

2020.3

2.2

billion yen

2024.379% growth

Overseas sales

7.1

billion yen

2020.3

10.6

billion yen

2024.3

48% growth

Steady expansion of businesses in the key areas ofPhase II
© PARAMOUNT BED HOLDINGS CO., LTD. All Rights Reserved,

18

Expansion of Recurring Revenue Business (Medical Care Business)
Aiming to be a partner in hospital management through stronger continuous relationships with medical institutions.

Shortage of labor due to work-style reforms, Rising costs,
Decrease in income due to drop in patients after COVID-19,
and Promotion of medical DX.

Environment
surrounding medical
institutions

Main KPIs●Developing various recurring revenue menus to contribute to solve challenge
Rental/repair of ward equipment, Services such as
TV/refrigerator/Wifi, Inpatient sets, etc.
Amenities

Contribute to improved patient satisfaction,
reduced capital expenditures burden, andmanagement improvement
Bed center operations, Medical equipment management,
Nursing assistance, Concierge, etc.

Staffing(on-site services)

Digitalsensing

Nemuri SCAN, Smart Bed System, etc.
Contribute to operational efficiency, task
shifting support, and improved medical
safetyProvide a combination of tailoredservices to each hospital© PARAMOUNT BED HOLDINGS CO., LTD. All Rights Reserved,

No. of hospitals withon-site staffing service contracts

113

hospitals

2024.3150〜

hospitals

2027.3

No. of hospitals
with Smart Bed System installations

46

hospitals

2024.3150〜

hospitals

2027.3

Expansion of the number of contracted
hospitals × Increase in revenue per hospital

19

Expansion of Recurring Revenue Business (Nursing Care Business)
Accelerate use of Nemuri SCAN and transition from one-time sales to a recurring revenue model
Environment
surrounding thenursing care sector

Main KPIs

Increasing elderly population, Labor shortage, Rising utility costs,
Increasing social welfare costs, Promotion of nursing care DX

Nemuri SCAN cumulative sales volume●Nursing homes: Contribute to the promotion of nursing care DX centered around
Nemuri SCAN/CONNECT
Temperatureand humidity,etc.

Weightmanagement

202 thousand
2024.3350

thousand 〜

2027.3

Nemuri CONNECT

User Ichiro

Improvement of the overall quality andproductivity of nursing care in the facility

User Jiro

Excretion
management

177 facilities

Operational
supportData

2024.3

Solution●Home care: Strengthening comprehensive capabilities to expand the number ofrental wholesale users• Efficiency of rental wholesale sites and delivery
networks• Accelerate expansion through M&A• Expand original products
Assistive products• Advancements in beds
manufacturers

No. of facilities
with Nemuri CONNECT contracts
facilities 〜

2027.3

No. of rental wholesale users

553 thousand
2024.3
Assistive products
rental service providers

2,500
700

thousand 〜

2027.3Users

Paramount care service© PARAMOUNT BED HOLDINGS CO., LTD. All Rights Reserved,

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Advancement of Health Promotion Business
Strengthening lineup and marketing for reaccelerated growth
Environment
surrounding
health promotion
business sector

Japan, a nation with a significant sleep deficit, Expanding
sleep tech, Increasing health awareness, and Growing healthmanagement efforts

Main KPIs●Aiming to improve public awareness by broadcasting new commercials centering
around the two main brands

Health Promotion Business sales

2.2
A new model released in April 2024

billion yen

5.0

2024.3New commercials
available here ↓billion yen

2027.3

No. of beds sold for
Health Promotion Business8

thousand2024.3●Creating new businesses in the health promotion sector centered around affiliatedcompanies and CVC-funded firms

20

thousand 〜

2027.3

CVC information here→… & more© PARAMOUNT BED HOLDINGS CO., LTD. All Rights Reserved,

21

Leap Forward in Key Area of Asia
Strengthening area management in key countries (Indonesia, China, India)
Environment
surrounding
overseas businesssectorPopulation growth/economic expansion in Asia, Expansion of medical
infrastructure, Protection of domestic industries, Changing competitiveenvironment

Main KPIs●Expanding tailored lineup to the needs of each country

Overseas sales

10.6
From localized models to flagship models
In Phase II, double the number of bed models introduced comparedto Phase I●Efforts to enhance production capacity/improve quality•

New factory in India (scheduled to start operations within 2024)⇒ Increase in in-house production rate, doubling of production capacity•
Introduction of new painting line in Indonesia⇒ Quality improvement through double coating•
Expansion of welding robots in Chinese factories in Phase I⇒ Operating with over 90% automation rate in welding process

billion yen

2024.3

15.0

billion yen

2027.3

No. of beds sold for overseas markets

45

thousand2024.370

thousand2027.3

Projected completion image of new Indian factory© PARAMOUNT BED HOLDINGS CO., LTD. All Rights Reserved,

22

Management Indicators
2024.3 Results

2025.3 Forecast

2027.3 Target% change
versus 2024.3

1,060

1,120

1,200

＋13 %

Recurring
revenue volume
value *1

340

382

450

＋32 %

Operating profit

138

140

170

＋23 %

EBITDA *2

235

250

290

＋23 %

(Unit: hundred millions of yen)Sales

*1. The total amount of cash obtained from the recurring revenue business. Adopted as a more accurate indicator of actual
performance.
*2. Calculated as the sum of operating profit and depreciation expenses. Adopted as an indicator to promote further growthinvestment based on changes in our group’s business style.
© PARAMOUNT BED HOLDINGS CO., LTD. All Rights Reserved,

23

Sales Targets for the Main 3 Businesses:% change
versus 2024.3

2024.3 Results

2025.3 Forecast

Medical Care
Business

406

427

500

＋23 %

Nursing Care
Business

613

634

650

＋6 %

HealthPromotion
Business

22

40

50

＋127 %(Unit: hundred millions of yen)

© PARAMOUNT BED HOLDINGS CO., LTD. All Rights Reserved,2027.3 Target

24

Sales Targets for Overseas Key Areas% change
versus 2024.3

2024.3 Results

2025.3 Forecast

Indonesia

28

35

45

＋61 %

China

35

36

45

＋29 %

India *

17

19

25

＋56 %

(Unit: hundred millions of yen)2027.3 Target*The sales figures for India include sales to the domestic market, including non-consolidated local subsidiaries. Its
number differs from consolidated overseas sales.
Consolidated
overseas sales© PARAMOUNT BED HOLDINGS CO., LTD. All Rights Reserved,

106

115

150

＋41 %
25

Shareholder Return
DOE ratio of 4.0%, dividend payout ratio of 50% as a guide

New dividend policy

Promoting a shareholder return policy that allows our shareholders to experience growth
together with us
Phase I

Annual dividend

Phase II(Bar graph, Unit: Yen)

97

100
80
60
40
20
0
Purchase oftreasury shares(Unit: hundred
millions of yen)

30 35

45

51.5 55
50
50
45

DOE

(Bar graph, Unit: %)
8.0

6.0

65

59

4.0

4.0
2.0

2.9%

2.7%

2.8%

2.7%

2.7%

2.7%

2.7%

2.8%

%

2018.32019.32020.32021.32022.32023.32024.32025.324

Considering flexible additional returns

2.1%

2.4%

2015.32016.32017.3

40 32

33

43

2026.32027.3

0.0* The Company conducted a stock split at a ratio of 2-for-1 for each common share, with April 1, 2021 as the effective date.
The annual dividends shown above are calculated assuming that the stock split was implemented on April 1, 2014.

© PARAMOUNT BED HOLDINGS CO., LTD. All Rights Reserved,

26

Cash Allocation
Phase II period: Cumulative total
Cash In

Shareholder return

Cash Out

Dividend on equity (DOE) ratio of 4.0%, dividend payout ratio of
50% as a guide

Shareholder return
17 billion yen〜

Flexible additional return considering market environment, etc.

Growth investment
Corporate tax
15 billion yen〜

Recurring assets to strengthen ongoing relationships withcustomers
Enhancement of production facilities and maintenance equipment forrental assistive products/Push introduction of system infrastructure

EBITDA80 billion yen〜

Active development of partnerships with other companies, including
establishment of CVC for business development
Growth investment
53 billion yen〜

Stance on level of cash on hand
Approx. 3 months of working capital

Allocation of cashon hand5 billion yen〜

© PARAMOUNT BED HOLDINGS CO., LTD. All Rights Reserved,＋ providing products and services that contribute to medical

Maintain business operation system capable of continuously
and nursing care even in the event of a disaster

27

FYE 3/2025 Financial Forecast
Increased sales and operating profit: Despite a budgeted decline in profit for the first half, the fullyear is expected to set an all-time high.
FYE 3/2024

FYE 3/2025

Full year

First half

Second half

Full year

Net sales

106,016

51,00061,000112,000＋5.6%

Operating profit（Operating profit
margin）

13,818

5,200

8,800

14,000＋1.3%(Unit: millions of yen)

Ordinary profit（Ordinary profit
margin）
Profit attributable toowners of Parent(Net profit margin)© PARAMOUNT BED HOLDINGS CO., LTD. All Rights Reserved,

YoY（13.6%）（10.2%）（14.4%）（12.5%）

15,920

5,450

9,050

14,500

-8.9%

-4.9%

（15.0%）（10.7%）（14.8%）（12.9%）

10,622

3,850

6,250

10,100（10.0%）（7.5%）（10.2%）（9.0%）

28

FYE 3/2025: Factors Causing Changes in Operating Income
Increase profits through continued expansion of recurring revenue businessProfit amount180(Unit: hundred
millions of yen)

Increase
profit due tosales growth160

Increase profit
due to rise ingross margin

+5

+28

Increase inpersonnel costs Increase in R&D
expenses-7-2

Lower costs
due tointroduction of
new systeminfrastructure+3

Other increases in
SG&A

-25

140

140

138
120

Gross profit +33

SG&A -31100

2024.3© PARAMOUNT BED HOLDINGS CO., LTD. All Rights Reserved,2025.329

Capital expenditures, depreciation costs, and R&D expenses
The capital expenditures for FYE 3/2025 are expected to remain at a high level, particularly for ERP-related
investments(Unit: millions of yen)2022.3 Results

2023.3Results

2024.3Results

2025.3Forecast

Capital expenditures

1,822

3,653

3,643

4,425

Depreciation costs

7,898

8,482

9,765

11,031R&D expenses

1,697

1,753

1,975

2,158

Number of employees

3,682

3,946

4,126

-

© PARAMOUNT BED HOLDINGS CO., LTD. All Rights Reserved,30

５．Topic© PARAMOUNT BED HOLDINGS CO., LTD. All Rights Reserved,

31

Creation of the New Brand Message

Our group has set forth Paramount Vision 2030, "Smiles for everyone from medical and nursing care to healthfield," to expand our business beyond the framework of traditional medical and nursing bed manufacturers. As
we continue the future-oriented expansion and evolution of our business, we have created the brand message"WELL-BEING for all beings" to express the value that our group will provide to stakeholders worldwide.
We have prepared a video expressing the worldview embedded in our brand message.
Please take a look at the video using the link or QR code below.

https://www.paramount.co.jp/english/brandmessage© PARAMOUNT BED HOLDINGS CO., LTD. All Rights Reserved,

32

Notice
The future performance and other forward-looking statements
contained in this document are based on information available as of thepresentation date. As such, actual performance may differ from theforecasts due to various factors.
Information regarding products and services (including those underdevelopment) described in this material is not intended for advertising
purposes.

© PARAMOUNT BED HOLDINGS CO., LTD. All Rights Reserved,

34