40thBusiness Report
From April 1, 2021 to March 31, 2022

Securities code: 7817
PARAMOUNT BED HOLDINGS CO., LTD.

Top Message

To p M e s s a g e

We create comfortable,
healthy environments throughcutting-edge technology witha human touch.
We extend our heartfelt thanks to our shareholders for their ongoing support.
The Company hereby provides reports in relation to the overview of business andthe financial results for the 40th term (from April 1, 2021 to March 31, 2022).

President and Chief Executive OfficerTomohiko Kimura

Business Results for the Fiscal Year under Review

Future Business Development

With regard to consolidated business results for the fiscal year

In April 2020, we announced “Paramount Vision 2030,” which

under review, the business environment remained challenging

describes the type of company we aim to be in 2030, ten years

due to the continuing impact of the novel coronavirus disease

from the announcement of the vision. Based on this vision, the(COVID-19), rising raw material prices and distribution costs,

Company formulated a medium-term business plan with its Phase I

shortage of parts supplies including semiconductors, and thestarting with the fiscal year ended March 31, 2021 and ending withincreasingly tense international situation. However, as a result of our

the fiscal year ending March 31, 2024, and set targets of ¥89,000

efforts to develop new products and implement various measures

million in net sales and ¥12,000 million in operating income forto improve user satisfaction, the medical, the nursing care, and thethe fiscal year ending March 31, 2024. Both of these targets were

health promotion businesses each achieved solid performance, andexceeded in the previous fiscal year.

net sales came to ¥90,352 million, reaching a new record high again

Accordingly, in May 2022, the Company announced the direction

after the previous fiscal year.

and targets of activities to focus on in Phase II (from the fiscal year

In terms of profits, operating income came to ¥12,340 million (upending March 31, 2025 to the fiscal year ending March 31, 2027),

6.5% year on year) and ordinary income came to ¥13,543 million

while maintaining the direction and key measures of Phase I itself(up 0.6% year on year), while net income came to ¥9,092 million (upand looking ahead to the future beyond that phase. Points to focus

5.6% year on year), reaching new record highs, respectively.

on in the second phase are “expansion of recurring business,”

The Company paid a year-end dividend of ¥29 per share, which“evolution of health promotion business,” and “rapid growth inis an increase of ¥2 over initial forecasts, for the fiscal year underfocused areas in Asia,” and the Company has set new targets ofreview. As a result, in combination with the interim dividend of ¥26¥120,000 million in net sales and ¥17,000 million in operating

per share, the annual dividend came to ¥55 per share. From theincome for the fiscal year ending March 31, 2027. The Company

perspective of stable and sustained returns to shareholders, theaims to achieve sustainable and steady enhancement of corporate

Company intends to pay interim and year-end dividends of ¥28 andvalue over the medium- to long-term.

¥29 per share, respectively, resulting in an annual dividend of ¥57

Going forward, we humbly ask our shareholders for theirper share for the next fiscal year.

understanding and support.

Topics

To p i c s

Launch of “Everleaf SG,” a reversible
mattress for medical and nursing care

Launch of “Eleveo,” a bed-mounted
electric lift
Eleveo is a bed-mounted electric nursing care lift.
Its main feature is that the height of the bed canbe adjusted with the lift’ s hand switch. The bed
can be operated withoutswitching the hand switch,enabling smoother transfer
assistance without thecaregiver needing to taketheir hands off the bed user.
Eleveo installed ona “Rakusho Plus” series bed“Active Sleep APP” linked with “HomeLink,”
an integrated smart home application

Launch of an antiviral mattress for
medical and nursing care
We adopted the first mattress cover in the medicaland nursing care industry, which has antiviralproperties and chemical resistance. Its antiviraleffect is not impaired even when disinfected bywiping with chemicals. The mattress coversupports infection
control measuresin medical andnursing carefacilities.
Antiviral“Ever Fit C3 Mattress”

Apr.

Remodeled “Metis PRO Series” beds
for medical facilities

May“Rakusho Plus Series” for home care
now supports voice commands

2021Jun.
Jul.
Aug.
Sep.
Oct.
Nov.
Dec.
2022

Jan.
Feb.
Mar.

Jointly established new company “NTTPARAVITA” with NTT WEST
“Rakusho Plus Series” wins two stars in the“Planet Assistive Products Award 2021.”
Launch of the “INTIME 3000 Series,”
electric beds for general household use
Added a paid service to “Club Paramount,” aservice for members of INTIME product users
The fully automatic bedsore prevention
air mattress “cococia Riraku flow” wins
Good Design Award 2021

Launch of “Q-Aura ONE,” a bed forhome care all over JapanThe new bed is a bed for home care use with astandardized unit that makes up the bed frame
and a new mechanism that alleviates bodypressure and reduces body slipping when raising
the back of the bed. The width and length of thebed can be changed without the use of tools toimprove inventory
management
efficiency.
“Q-Aura ONE”
(wooden board type with grips)

Established the “PB Mangrove Forest”
in Indonesia

Special FeatureSpecial Feature

Report on activities to contribute to the achievement of SDGs
In the process of achieving its corporate philosophy and vision, we place importance on the concept of ESG, and aims to contributeto the achievement of the SDGs through proactive efforts to resolve priority issues. The following is a partial list of environmental
activities carried out during the fiscal year under review.

(1) Started tree planting activities using “Sleep Points,”
a social contribution point program“Sleep Points” is a point program in which points can be earned through a smartphone
application for “Active Sleep BED,” an electric bed that allows users to monitor their sleep. Theprogram was launched in February 2021 as a social contribution program that allows users tosupport tree planting activities according to the points they have accumulated, with the aim ofpromoting health as well as contributing to society. In March 2022, the Company entered into abusiness contract agreement with YL Forest Co., Ltd., which is engaged in mangrove

Illustration of the mangrove forest(Image provided by YL Forest Co., Ltd.)

reforestation and conservation in the Republic of Indonesia, and decided to establish the “PBMangrove Forest,” a mangrove forest of approximately 20 hectares and 50,000 trees in the West
Nusa Tenggara Province of the Republic of Indonesia. The establishment of this mangrove forest
is expected to absorb up to approx. 25,000 tons of carbon dioxide (CO2). This project will be
carried out using a method called “Silvofishery,” which aims to restore fishery resources byplanting trees in abandoned shrimp ponds. With the cooperation of local residents, we aim tocontribute to the restoration and preservation of the natural environment and biologicalsystems, as well as to the improvement of the livelihood of the local residents.

Screen capture of the “Sleep Points”
program application(2) Adopted “biomass plastic” as a raw material
for packaging bags of rental products
Paramount Care Service Co., Ltd., which operates an assistive prodcuct
rental wholesale business, adopted “biomass plastic” containing 25%
plant-derived raw materials for packaging bags of rental products in
September 2021. By using this material, it is expected that not only tosave petroleum resources but also to reduce CO2 emissions
substantially through photosynthesis of biomass resources (such as

Rental products wrapped inpackaging bags which is expectedto achieve a CO2 reduction effectBiomass mark displayed on
packaging bags

corn starch and sugarcane starch) used as raw materials during the plant growth process. The reduction is estimated to be 100
tons per year (according to the Company’s research).

Financial Review
Consolidated Financial Statements
Consolidated Balance Sheet (Summary)(Millions of Yen)

Previous
Fiscal Year

Consolidated Statement of Income (Summary)(Millions of Yen)

Previous
Fiscal Year

Current
Fiscal Year(As of March 31, 2021)(As of March 31, 2022)

Item

AmountAmountTotal current assets

86,144

94,035

Total non-current assets

68,21370,246Total assets

154,358

164,281

Total liabilities

40,53542,606

Total net assets

113,822

121,675

Total liabilities and net assets

154,358

164,281

Current
Fiscal Year

(From April 1, 2020
to March 31, 2021)(From April 1, 2021
to March 31, 2022)

Item

AmountAmountNet sales

87,17190,352

Operating income

11,582

12,340Ordinary income

13,461

13,543

Net income

8,611

9,092

Consolidated Statement of Cash Flows (Summary)(Millions of Yen)

Previous
Fiscal Year

Current
Fiscal Year

(From April 1, 2020

(From April 1, 2021

to March 31, 2021)

to March 31, 2022)

Item

AmountAmountCash and cash equivalents
at beginning of year

35,00940,756

Cash flows from operating
activities

10,279

7,822

Cash flows from investing
activities(1,541)(220)

Cash flows from financing
activities(3,044)(3,365)

Effect of exchange rate change
on cash and cash equivalents

52469

Increase (decrease) in cash
and cash equivalents

5,746

4,705

Cash and cash equivalents
at end of year

40,75645,462

Website Information
PARAMOUNT BED HOLDINGS IR ENGLISH

SearchFor moredetailed financial
information, pleaserefer to the variousmaterials madeavailable on theCompany website.

https://www.paramountbed-hd.co.jp/english/ir

Financial Review

Consolidated net sales by product
OtherBeds

13.7%

31.9%

¥12,413 million

Parts, etc.

¥28,785 million¥4,340 million

4.8%¥90,352
millionRental¥25,124 million

Mattresses¥5,601 million

6.2%

27.8%

Medical Equipment

Ward and Residential Equipment

8.4%

7.2%

¥6,546 million¥7,540 million

Main Companies of the Paramount Bed Holdings GroupNetwork❶PARAMOUNT BED HOLDINGS CO., LTD.
●Consolidated subsidiaries Non-consolidated subsidiaries
in Japanin Japan❷Paramount Bed Co., Ltd. ●●❻KP Service Co., Ltd.
❸Paratechno Co., Ltd.
●
❹Paramount Care Service Co., Ltd.
●
❺Sadashige Special Plywood Co., Ltd.
●

❾●

⓫●
❿
●

Consolidated subsidiaries overseas❼Paramount Bed Asia Pacific Pte. Ltd.
●❽PT. Paramount Bed Indonesia●❾Paramount Bed (China) Co., Ltd.
●

Non-consolidated subsidiaries overseas❿Paramount Bed (Thailand) Co., Ltd.
●
⓫Paramount Bed India Pvt. Ltd.
●
⓬Paramount Bed Mexico S.A. de C.V.
●
⓭Paramount Bed Vietnam Co., Ltd.
●
⓮Paramount Bed do Brasil Ltda.

❶●●
❷❸●●
❹●❺❻
●

⓬●
⓭●

❼●
❽●
⓮●

Financial Highlight (Consolidated)

Financial Highlight

Key Points for the Fiscal Year under Review• Operating income increased 6.5% year on year due to solid performance in the medical, the nursing care, and thehealth promotion businesses as a result of the launch of new products and expansion of rentals and leases.
• In addition to strategic investments for medium- to long-term growth, we are accelerating its SDGs activities tocontribute to environmental issues.

Net sales

Operating income

90,352 million

12,340 million¥

87,17180,000(Millions of yen)

15,00090,352

12,340

11,582

38,048(Millions of yen)

10,000

5,000

4,925
4,000

4,646

20,000

2,625

2,000

0

0

0

39th

9,092

8,611

6,000

6,297

41,237¥8,000

10,00060,00040,0009,092 million¥(Millions of yen)

100,000

Net income

40th

39th

39th

40th

40th

*The “Accounting Standard for Revenue Recognition” has been applied
from the beginning of the 40th term. Accordingly, the figures havebeen adjusted to reflect the application of the standard.

Basic earnings per share¥

156.39¥(Yen)

200

150

Total assets

148.15100

156.39164,281 million(Millions of yen)

200,000

150,000

Net assets

154,358

121,675 million¥(Millions of yen)

150,000

164,281

113,822

121,675

100,000

84.72

100,000
50,00050

50,000

45.18

00

39th

40th

*The Company conducted a share split at a ratio of 2 shares percommon share with April 1, 2021 as the effective date. “Basicearnings per share” were calculated as though the share split
had been conducted at the beginning of the previous fiscal year.

039th

40th

39th

40th
Full year

Half year

Share InformationStock Info

(As of March 31, 2022)

Number of Shares Authorized
Total Number of Shares Issued

252,000,000
61,754,974*The Company conducted a share split at a ratio of 2 shares per common share with April 1, 2021
as the effective date.
As a result, the number of shares authorized increased to 252,000,000, and the number ofshares issued increased to 61,754,974.

Number of Shareholders
Principal Shareholders
Name of shareholders

The Master Trust Bank of Japan, Ltd. (Trust Account)
CTOK Co., LTD.
LLAGE WOOD Co.
Michihide Kimura
Kyosuke Kimura
Kenji Kimura
Tomohiko Kimura
THE BANK OF NEW YORK MELLON (INTERNATIONAL) LIMITED 131800
WISELIGHT Co., Ltd.
SION Co., LTD.

11,419
Shareholders’ investment inthe Company
Number ofshares held

Shareholding
ratio(Thousands of shares)

(%)

9,063
5,642
4,146
1,822
1,819
1,797
1,755
1,648
1,375
1,375

15.6
9.7
7.1
3.1
3.1
3.1
3.0
2.8
2.4
2.4

*Although the Company holds 3,606,342 shares of treasure stock, the shareholding ratio is
calculated after deducting the shares of treasury stock.

Distribution of Shares
Individuals and othersSecurities companies
Treasury stock

24.5%
0.8%
5.8%

Financial institutions

22.2%

Foreign companies, etc.

24.2%

Other domestic companies

22.5%

500,000 or more
Less than 1,000

74.0%
3.4%

1,000 to 4,999

3.4%

5,000 to 9,999
10,000 to 49,999

1.1%
3.8%

50,000 to 99,999

3.4%

100,000 to 499,999

10.9%

Company Information(As of March 31, 2022)

Company Info

Company NamePARAMOUNT BED HOLDINGS CO., LTD.
Head Office	14-5, Higashisuna 2-chome, Koto-ku, Tokyo,
Postal code 136-8671, Japan
EstablishedOctober 1982
Capital¥4,207 million
Number of Employees 3,682 (Consolidated)
Business Lines
Control or management of operating companies involved in the manufactureand sale of beds and mattresses, hospital furniture, medical equipment, etc.
for medical and nursing care environments; services such as the inspection,
maintenance, disinfection, and maintenance leases for beds and mattresses;
the rental wholesale business for assistive products; etc. through theownership of shares or through an equity interest.

Shareholder MemoBusiness year
From April 1 of each year to March 31 of the following year
Ordinary general meeting of shareholdersJune of each year
Record date of the above
March 31 of each year
When necessary, other record dates will be determined on an
extraordinary basis of the prior notification.
Final date for shareholders to receive dividend
Year-end dividend
March 31 of each year
Interim dividend
September 30 of each year
Method of public noticeElectronic public notice will be made. However, if it is impossible
to publish public notices electronically because of unavoidable
circumstances, the public notices shall be made by publication in“The Nikkei” newspaper.
The Company’s URL for public noticehttps://www.paramountbed-hd.co.jp
Shareholder register administrator
3-11 Kandanishiki-cho, Chiyoda-ku, Tokyo (NMF Takebashi Building 6F)
Tokyo Securities Transfer Agent Co., Ltd.

Distribution
by Type of
Shareholder

Handling office101-0054
3-11 Kandanishiki-cho, Chiyoda-ku, Tokyo (NMF Takebashi Building 6F)
Head Office, Tokyo Securities Transfer Agent Co., Ltd.
0120-49-7009(Contact)
Handling operation is conducted in main branch and all domestic branches ofSumitomo Mitsui Trust Bank, Limited.
Mailing address (Contact address)
2-8-4 Izumi, Suginami-ku, Tokyo 168-8522
Operations Center, Tokyo Securities Transfer Agent Co., Ltd.
0120-49-7009(Contact)[Procedures Related to Shares]

Distribution
by Number ofShares Held

●Applications for change of address or for purchase demands of shares less than one unit.
Please send such notifications or applications to the securities company where
your account is held. However, for procedures related to shares registered toa special account, please apply to Tokyo Securities Transfer Agent Co., Ltd.,
which is the administrative organization for special accounts.
●Applications for payment of dividends payable
These are handled by Tokyo Securities Transfer Agent Co., Ltd., which is theshareholder register administrator for shares of the Company.
●ContactTEL: +81-3-3648-1100 (Main) FAX: +81-3-3648-5781
Business Hours: Monday to Friday, 9:00 a.m. to 5:20 p.m.
* Excludes national holidays, summer holidays, and new year holidays.