39thBusiness Report
From April 1, 2020 to March 31, 2021

Securities code: 7817

PARAMOUNT BED HOLDINGS CO., LTD.

Top Message

Top Message

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 39th term (from April 1, 2020 to March 31, 2021).

Business Results for the Fiscal Year under Review

With regard to consolidated business results for the fiscal year
under review, net sales came to ¥87,171 million (up 5.8%year on year). This was the result of factors such as favorable
sales of products such as the“Rakusho Plus Series,”which is acore bed product for home care that was launched in August
2020, and“cococia Riraku flow,”which is an air mattressreleased in October 2020 that carries out bedsore prevention,such as weight settings and posture changes, in a completely
automatic manner, in addition to Paramount Care Service’s
solid performance in the rental wholesale business for assistive
products and projects for the emergency preparation ofhospital bed in some overseas areas, despite various impacts inJapan and overseas, such as restrictions on sales activities dueto the spread of the novel coronavirus disease (COVID-19).
In terms of profits, operating income came to ¥11,582 million (up16.9% year on year) due to the sales of new products contributing
to the improvement of the gross profit margin. Ordinary income
came to ¥13,461 million (up 32.7% year on year), while net
income came to ¥8,611 million (up 22.3% year on year).
The Company paid a year-end dividend of ¥53 per share, which
is an increase of ¥3 over initial forecasts, for the fiscal year underreview. As a result, in combination with the interim dividend of¥50 per share, the annual dividend came to ¥103 per share.
Furthermore, the Company conducted a share split at a ratio of
2 shares per common share with April 1, 2021 as the effective
date, aiming to expand its range of investors by increasing
the liquidity of its shares. From the perspective of stable andPresident and Chief Executive Officer

Tomohiko Kimura

sustained returns to shareholders, the Company intends topay interim and year-end dividends of ¥26 and ¥27 per share,respectively, resulting in an annual dividend of ¥53 per sharefor the next fiscal year.

Future Business Development

Regarding the medium-term business plan, which would
last until FY2022, the Company extended the term by one
year until FY2023 in light of the impact of COVID-19, andannounced numerical targets in April 2021. In addition, weuphold a basic policy of the“expansion of current business,”“building of a foundation for reform”and“formalization of
the health promotion business,”and will further enhance
our approaches, such as ESGs, for environmental issues andsocial contributions. We will aim for net sales of ¥89,000
million and operating income of ¥12,000 million in FY2023 bypositioning the strategic investment period for medium- to longterm growth, and increasing system-related investment, newbusiness investment and capital investment.
Furthermore, the Company will apply the“Accounting Standardfor Revenue Recognition”(ASBJ Statement No. 29) fromFY2021. As a result, sales related to items that were purchased
and sold will decrease in comparison to the previous figures.
We will aim for net sales of ¥81,000 million and operating
income of ¥10,600 million in the current fiscal year after
applying this accounting standard, etc.
Going forward, we humbly ask our shareholders for theircontinued understanding and support.

Topics

Topics■Establishment of Sendai Maintenance Centerof Paramount Care Service

Launch of new product“cococia Riraku ﬂow”
The“cococia Riraku ﬂow”is an air mattress thatprevents bedsores by using AI functions to assume
weight and physique and automatically adjustpressure. It is loaded with functions that carry out
posture changes in a completely automatic mannerand functions for retaining posture, and possesses
the Company’s highest-class capability to disperse
body pressure.

2020Apr.
MayNew mattress factory atChiba Factory began operation
It is a dedicated mattress factory which has a total
ﬂoor area of approximately 3,900m². The Company
improved production
eﬃciency byapproximately 30%
through its integrated
production systemthat connects thethree processing
areas with one line.
External view of new mattress factory■Establishment of Nagaoka Branch ofParamount Care Service■Relocation of Shonan Branch of ParamountCare Service■Development of“Prep-palette”forpediatric care

Jun.

■Launch of the infrared sensor version of
the new product“Mimamori SENSE α”

Jul.

■Launch of the“Rakusho Plus”series forhome care

Aug.
Sep.

“cococia Riraku ﬂow (cleaning type)”■Launch of new product“Nemuri SCAN eye”

Oct.
Nov.
Dec.
2021

Jan.
Feb.
Mar.

■Paramount Care Service began rental of“Let’s Walk,”Paramount Bed’s new product■Relocation of Paramount Bed
Saitama branch■“ALiUS Series ICU Bed”wins Good
Design Award

Launched system that connects“Nemuri SCAN”and intercoms
This system can give vocal notiﬁcations via headsets
about information detected with“Nemuri SCAN.”This will lead to increased operational eﬃciency for
all nursing staﬀ as they will be able to understanddetected
information
without
checking
terminals.
“Nemuri SCAN”
system“Clear Talk Com”
system■Added functions to detect snoring and give a“sleep point system”to the Active Sleep app

Special FeatureSpecial Feature

Started to Air New Commercial~Advertisement of Superiorly Designed Electric Bed That Can Also Be a Nursing Bed~
In March, the Company updated the TV commercial for the“INTIME Series”electric bed for general household use, which
is superiorly designed and it can also become a nursing bed when necessary. With the key phrase,“Closer to life, beds
become like this,”the Company introduces a function that can monitor the bed user via the dedicated app and a feature
where the bed can be turned into a nursing bed by showing couples and families trying beds in showrooms and sales
floors. The Company will aim to further expand the health promotion business by increasing recognition together with the“Active Sleep BED”commercial.

Programs currently broadcasting the Company’s commercials are as follows:TV TOKYO“Monday Premiere 8”(every Monday from 8:00 p.m.)

TBS“N Sta”(every Wednesday from 5:50 p.m.)

TV TOKYO“Naze Soko?”(every Thursday from 9:00 p.m.)

TV TOKYO“Tokoro-san no Gakko dewa Osietekurenai Sokontokoro!” (every Friday from 9:00 p.m.)TBS“Hodo Tokushu”

Nippon Television “Shinso Hodo Bankisha!”(every Saturday from 5:30 p.m.)(every Sunday from 6:00 p.m.)

Started to Air Radio Commercial
In March, the Company began advertising on TBS Radio’s“Imoto Ayako’s Suppinshan”(everyWednesday from 9:30 p.m.). There are two versions, the“Sleep/Wake/Live version”(40 seconds)
and the“Lullaby version”(20 seconds), which express the Company’s corporate stance ofcontributing to society through the development of various beds, from those for the medical andnursing care businesses to those for the health promotion business.

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

(From April 1, 2019 (From April 1, 2020 

Item

AmountAmountNet sales

82,37987,171

Operating income

9,906

11,582

Ordinary income

10,145

13,461

7,043

8,611

(As of March 31, 2020) (As of March 31, 2021)

Item

AmountAmountTotal current assets

76,84886,144

Total non-current assets

67,40968,213

Total assets

144,257

154,358

Total liabilities

37,191

40,535

Total net assets

107,066

113,822

Total liabilities and net assets

144,257

154,358

Current 
Fiscal Year

to March 31, 2020)

Net income

to March 31, 2021)

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

Previous
Fiscal Year

Current 
Fiscal Year

(From April 1, 2019 
to March 31, 2020)(From April 1, 2020 
to March 31, 2021)

Item

AmountAmountCash and cash equivalents
at beginning of year

37,06935,009Cash flows from operating
activities

9,087

10,279Cash flows from investing
activities(3,579)(1,541)

Cash flows from financing
activities(7,475)(3,044)

Effect of exchange rate change
on cash and cash equivalents

(90)

52

Increase (decrease) in cash
and cash equivalents(2,059)5,746

Cash and cash equivalents
at end of year

35,00940,756

Website Information
PARAMOUNT BED HOLDINGS IRSearch

For moredetailed financial
information, pleaserefer to the various
materials madeavailable on theCompany website.

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

Financial Review

Consolidated net sales by productBeds¥26,154 million

Other

30.0%

¥14,269 million

Parts, etc.

16.4%

¥3,771 million¥87,171
million

4.3%

Rental¥23,013 million

Mattresses¥5,139 million

5.9%

26.4%

Medical Equipment

Ward and Residential Equipment

8.6%

8.4%

¥7,297 million¥7,525 million

Main Companies of the Paramount Bed Holdings Group

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

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

❶●
●
❷❸●●
❹●❺❻
●

●
●

❼●
❽
●
●

Financial Highlight (Consolidated)

Financial Highlight

Key Points for the Fiscal Year under Review◦Net sales increased 5.8% year on year as a result of putting a new bed for home care on the market, and solid
performance in the rental wholesale business for assistive products despite a decrease in sales of beds fordomestic medical facilities◦Operating income increased 16.9% year on year as a result of an increase in sales of new products, etc.
despite increases in personnel and transportation expenses, etc. due to the expansion of operations, and thestrengthening of strategic investments for the medium to long term

Net sales

Operating income

87,171 million

11,582 million¥

82,37980,000(Millions of yen)

12,000

11,582

87,171

9,906

9,000

¥

(Millions of yen)

10,000

8,611

8,000

7,043

60,000

6,000
6,000

40,00038,952

4,940

38,048

4,646

3,000

20,0000¥

38th

154,358 million

150

148.15(Millions of yen)

200,000150,000

144,257

154,358

45.18

039th

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

100,000

107,066

113,82240,00050,00020,000038th(Millions of yen)

120,000

60,000100,000

57.39

113,822 million¥

80,000118.21
100

39th

Net assets¥(Yen)

200

2,625

38th

39th

Total assets

148.15

3,450

039th

Earnings per share

4,000
2,000

038th

50

8,611 million¥(Millions of yen)

100,000

Net income

038th

39th

38th

39th
Full year

Half year

Share Information

Stock Info

(As of March 31, 2021)

Number of Shares Authorized
Number of Shares Issued

126,000,000
30,877,487*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 thenumber of shares issued increased to 61,754,974.

Number of Shareholders
Principal Shareholders
Name of shareholders

CTOK Co., LTD.
The Master Trust Bank of Japan, Ltd. (Trust Account)
LLAGE WOOD Co.
NIU VALLEY CAPITAL LLC
NORTHERN TRUST CO. (AVFC) RE FIDELITY FUNDS
Custody Bank of Japan, Ltd. (Trust Account 9)
Michihide Kimura
Kyosuke Kimura
Kenji Kimura
Tomohiko Kimura

8,071
Shareholders’investment in the Company
Number ofshares held

Shareholding
ratio(Thousands of shares)

(%)

2,821
2,816
2,073
1,379
1,237
1,047
911
907
903
873

9.7
9.7
7.1
4.7
4.3
3.6
3.1
3.1
3.1
3.0

*Although the Company holds 1,814,890 shares of treasure stock, the shareholding ratio is
calculated after deducting the shares of treasury stock.

Distribution of Shares
Individuals and others
Securities companies
Treasury stock

23.6%
0.8%
5.9%

Financial institutions

24.1%

Foreign companies, etc.

23.2%

Other domestic companies

22.4%

500,000 or more
Less than 1,000

61.2%
4.0%

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

1.6%
5.3%

50,000 to 99,999

3.9%

100,000 to 499,999

21.0%

1,000 to 4,999

Company Information(As of March 31, 2021)

Company Info

Company NamePARAMOUNT BED HOLDINGS CO., LTD.
Head Office
2-14-5 Higashisuna, Koto-ku, Tokyo 136-8671, Japan
Established
October 1982
Capital¥4,207 million
Number of Employees 3,614 (Consolidated)
Business Lines
Control or management of operating companies involved in themanufacture and sale of beds and mattresses, hospital furniture, medicalequipment, etc. for medical and nursing care environments; services suchas the inspection, maintenance, disinfection, and maintenance leases forbeds and mattresses; the rental wholesale business for assistive products;
etc. through the ownership 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 shareholders
June 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 of Sumitomo 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]

3.0%
Distribution
by Number ofShares Held●‌A pplications 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 sharesregistered to a special account, please apply to Tokyo Securities TransferAgent 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 isthe shareholder register administrator for shares of the Company.

◦Contact
TEL: +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.