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.

February 4, 2016

Consolidated Financial Results
for the First Nine Months of the Fiscal Year Ending March 31, 2016
<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 Chief Executive Officer
Contact:Kenji Ouchi, Executive Officer, General Manager of Finance Division
TEL: 03-3648-1100
Scheduled date to file Quarterly Securities Report:
Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results presentation meeting:February 12, 2016
–None
None

(Millions of yen with fractional amounts discarded, unless otherwise noted)

1.

Consolidated financial results for the first nine months of the fiscal year ending
March 31, 2016 (from April 1, 2015 to December 31, 2015)(1) Consolidated operating results (cumulative)
Net sales(Percentages indicate year-on-year changes.)

Operating income% Millions of yen

Profit attributable toowners of parent

Ordinary income

Nine months ended

Millions of yen% Millions of yen

December 31, 2015

50,020(1.3)

5,757 (12.7)

6,419 (15.5)

4,246 (11.1)

December 31, 2014

50,681

10.3

6,597

7,600

4,773

8.8

Note: Comprehensive income Nine months ended December 31, 2015: ¥3,774 million:
Nine months ended December 31, 2014: ¥5,692 million:
Basic earnings
per share% Millions of yen

15.9[(33.7)%][14.9%]

Diluted earnings
per share

Nine months ended

Yen

Yen

December 31, 2015146.90135.49December 31, 2014159.73147.63(2) Consolidated financial position
Total assets
As ofNet assets

Equity-to-asset ratio

Millions of yen

Millions of yen%

December 31, 2015

119,81483,93970.1

March 31, 2015

125,508

85,391

68.0

Reference: Equity
As of December 31, 2015: ¥83,939 million
As of March 31, 2015:¥85,390 million

%

19.9

2.

Dividends
Dividends per shareFirst quarter-end

Second quarter-end Third quarter-end

Fiscal year-end

Total

Yen

Yen

Yen

Yen

Yen–25.00–35.00

60.00

–

35.00

–
35.00

70.00

Fiscal year ended
March 31, 2015
Fiscal year ending
March 31, 2016
Fiscal year ending
March 31, 2016
(Forecast)

Note: Revisions to the dividends forecasts most recently announced: None
Dividends for the fiscal year ended March 31, 2015, were as follows: interim regular dividends of ¥25 in addition to year-end
regular dividends of ¥25 and year-end commemorative dividends of ¥10.

3.

Consolidated earnings forecasts for the fiscal year ending March 31, 2016
(from April 1, 2015 to March 31, 2016)(Percentages indicate year-on-year changes.)
Net sales

Fiscal year ending
March 31, 2016

Operating income

Ordinary income

Profit attributable to Basic earnings
owners of parentper share

Millions ofyen%Millions ofyen%Millions ofyen%Millions ofyen%

Yen

75,8000.7

10,000(0.4)

10,500(9.1)

6,600(9.1)

226.84

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
(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.: Yes
b. Changes in accounting policies due to other reasons: Nonec. Changes in accounting estimates: None
d. Restatement: None(4) Number of shares issued (common shares)
a. Number of shares issued at the end of the period (including treasury shares)
As of December 31, 2015
As of March 31, 2015b.

Number of treasury shares at the end of the period
As of December 31, 2015
As of March 31, 2015c.

30,877,487 shares
30,877,487 shares

2,411,014 shares
1,501,744 shares

Average number of shares outstanding during the period (cumulative from the beginning of thefiscal year)
Nine months ended December 31, 2015
Nine months ended December 31, 2014

28,905,009 shares
29,888,223 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 FinancialInstruments and Exchange Act are incomplete.
* Proper use of earnings forecasts, and other special matters
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 nine 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 nine 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....... 22. 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 sheet .............................................................................................................. 4(2) Consolidated statement of income and consolidated statement of comprehensive income ............. 6
Consolidated statement of income (cumulative) .............................................................................. 6Consolidated statement of comprehensive income (cumulative) ..................................................... 7(3) Notes to quarterly consolidated financial statements ....................................................................... 8Notes on premise of going concern.................................................................................................. 8Notes on substantial changes in the amount of shareholders’ equity ............................................... 8-1-1.

Qualitative information regarding financial results for the first nine months(1) Information regarding operating results
In the nine months ended December 31, 2015, the Japanese economy continued to mount a gradual
recovery, reflecting the effects of various government measures. Nevertheless, the future prospectsof the economy remain uncertain due to concerns of the impact of underperformance in economies,
particularly those of emerging countries, and other factors.
In the medical and elderly welfare fields, which are related to the operations of the Paramount Bed
Group (“the Group”), the effects of the reform of the system of medical service fees implemented in2014 continued, while in April 2015 a reform of the system of nursing care service fees was carriedout (overall rates revised downward by 2.27%).
Amid this environment, the Group worked to further strengthen its core business of product sales
for medical and elderly facilities and product sales for home caregiving, while making concerted
efforts to expand its business fields in Japan and overseas.
With respect to product development, in addition to the “METIS Series” of beds, a core electricpowered bed product for medical facilities undergoing a full model change in October 2015, theExtreme-low height “FeeZ Series” of electric-powered beds for nursing homes were developed andlaunched in November 2015.
On the sales front, solid performances were achieved in the maintenance business and the rental
business for welfare equipment in Japan, and sales to overseas, despite a decline in product sales inJapan due to the effects including the above mentioned reforms of the system of medical service
fees and the system of nursing care service fees.
As a result of the above, in the nine months ended December 31, 2015, net sales were ¥50,020
million (down 1.3% year on year), operating income was ¥5,757 million (down 12.7%) andordinary income was ¥6,419 million (down 15.5%). Profit attributable to owners of parent was¥4,246 million (down 11.1%).
In addition, effective from the three months ended June 30, 2015, the Group has applied the“Accounting Standard for Business Combinations” (ASBJ Statement No. 21, September 13, 2013),
etc., and “net income” is now denoted as “profit attributable to owners of parent.”
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 December 31, 2015, amounted to ¥119,814 million, which was a decrease of¥5,693 million compared to March 31, 2015. The primary factor in this fall was a decrease in notes
and accounts receivable - trade.
Liabilities amounted to ¥35,874 million, which was a decrease of ¥4,242 million compared toMarch 31, 2015. The primary factors in this fall were decreases in accounts payable - trade andincome taxes payable.
Net assets amounted to ¥83,939 million, which was a decrease of ¥1,451 million compared toMarch 31, 2015. The primary factor in this fall was acquisition of treasury shares.
As a result, the equity-to-asset ratio as of December 31, 2015, increased by 2.0 percentage points
compared to March 31, 2015, to 70.1%.
(3) Information regarding consolidated earnings forecasts and other forward-looking statements
No revisions have been made to the consolidated earnings forecasts announced on October 30, 2015.

-2-2.

Matters regarding summary information (Notes)(1) Changes in significant subsidiaries during the period
No items to report.
(2) Application of special accounting for preparing quarterly consolidated financial statementsNo items to report.
(3) Changes in accounting policies, changes in accounting estimates, and restatement
Changes in accounting policies(Application of Accounting Standard for Business Combinations, etc.)
The “Accounting Standard for Business Combinations” (ASBJ Statement No. 21, September 13,2013), the “Accounting Standard for Consolidated Financial Statements” (ASBJ Statement No. 22,September 13, 2013), the “Accounting Standard for Business Divestitures” (ASBJ Statement No. 7,September 13, 2013), etc. have been applied effective from the first quarter ended June 30, 2015. Asa result, the method of recording the amount of difference caused by changes in the Company’sownership interests in subsidiaries in the case of subsidiaries under ongoing control of the Company
was changed to one in which it is recorded as capital surplus, and the method of recording
acquisition-related costs was changed to one in which they are recognized as expenses for the fiscal
year in which they are incurred. Furthermore, for business combinations carried out on or after
April 1, 2015, the accounting method was changed to one in which the reviewed acquisition costallocation resulting from the finalization of the provisional accounting treatment is reflected in thequarterly consolidated financial statements for the quarterly period to which the date of businesscombination belongs. In addition, the presentation method for “net income” and other related items
was changed, and the presentation of “minority interests” was changed to “non-controllinginterests.” To reflect these changes, the quarterly and full-year consolidated financial statements forthe first nine months of the previous fiscal year and the previous fiscal year have been reclassified.
Application of the Accounting Standard for Business Combinations, etc. is in line with thetransitional measures provided for in paragraph 58-2 (4) of the Accounting Standard for Business
Combinations, paragraph 44-5 (4) of the Accounting Standard for Consolidated Financial
Statements and paragraph 57-4 (4) of the Accounting Standard for Business Divestitures. The
Company is applying the said standard, etc. prospectively from the beginning of the first quarter
ended June 30, 2015.
This has no effect on profit or loss.

3.

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

-3-4.

Quarterly consolidated financial statements(1) Consolidated balance sheet(Millions of yen)As of March 31, 2015
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
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Assets for rentAccumulated depreciation
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 non-current assets
Total assets-4-

As of December 31, 2015

24,50323,304
2,545
9,337
5,457
282
1,754
2,781
(55)
69,912

25,742
16,436
2,338
9,076
6,323
281
1,726
2,369
(56)
64,23827,456(18,166)
9,290
7,741
(6,644)
1,096
8,693
130(92)
37
17,913(7,676)
10,237149
8,576(7,311)
1,265
30,771

27,491(18,614)
8,876
7,591
(6,653)938
8,687
129(107)22
18,652(8,358)
10,29481
8,776(7,465)
1,311
30,212

58
2,128
2,186

37
2,014
2,052

16,314
6,382(58)
22,63855,596
125,508

15,981
7,421(92)
23,311
55,575
119,814

(Millions of yen)
As of March 31, 2015

As of December 31, 2015

10,629
655
1,855
1,503
1,228
48
4,449
20,3697,286
6931,547
302
644
–
4,986
15,46010,032
258
3,210
45
4,535
1,664
19,747
40,117

10,025
143
3,406
41
4,715
2,081
20,41335,8744,207
49,87733,195(4,324)82,9554,207
49,87735,411(7,520)81,975

1,078

661

1,587
(230)
2,435
0
85,391
125,508

1,499
(196)
1,964
0
83,939
119,814

Liabilities
Current liabilities
Accounts payable - trade
Short-term loans payable
Lease obligations
Income taxes payable
Provision for bonuses
Provision for directors’ bonuses
Other
Total current liabilities
Non-current liabilities
Bonds with subscription rights to shares
Long-term loans payable
Lease obligations
Provision for environmental measures
Net defined benefit liability
OtherTotal non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets-5-(2) Consolidated statement of income and consolidated statement of comprehensive income
Consolidated statement of income (cumulative)(Millions of yen)
Nine months ended
December 31, 2014
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend 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
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Gain on redemption of investment securities
Gain on reversal of subscription rights to shares
Total extraordinary income
Extraordinary losses
Loss on sales of investment securities
Loss on redemption of investment securities
Loss on valuation of investment securities
Total extraordinary losses
Income before income taxes and minority interests
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent-6-

Nine months ended
December 31, 2015

50,681
27,85622,825
16,227
6,597

50,02027,96622,054
16,297
5,757

105
242
577
–
22
127
1,074

120
204
–
20
251
144
741

49–
8
14
72
7,600

35
38
–
5
79
6,419

39
15
3
59

56
44–
100

3––
3
7,655
2,374
507
2,881
4,774
0
4,773

62
0
87
150
6,369
1,414
708
2,123
4,246
0
4,246

Consolidated statement of comprehensive income (cumulative)(Millions of yen)
Nine months ended
December 31, 2014
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:
Owners of parent
Non-controlling interests-7-

Nine months ended
December 31, 2015

4,774

4,246

490
357
70
918
5,692(417)(87)
33(471)
3,774

5,691
0

3,7740(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.

-8-