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 3, 2017

Consolidated Financial Results
for the First Nine Months of the Fiscal Year Ending March 31, 2017
<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 13, 2017
–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, 2017 (from April 1, 2016 to December 31, 2016)(1) Consolidated operating results (cumulative)
Net sales(Percentages indicate year-on-year changes.)

Operating income% Millions of yen

Nine months ended

Millions of yen

December 31, 2016

48,730

(2.6)

6,738

December 31, 2015

50,020(1.3)

5,757 (12.7)% Millions of yen
17.1

7,236

% Millions of yen
12.7

6,419 (15.5)

Note: Comprehensive income Nine months ended December 31, 2016: ¥4,608 million:
Nine months ended December 31, 2015: ¥3,774 million:
Basic net income
per share

Net income attributableto owners of the parent

Ordinary income[22.1%][(33.7)%]

Diluted net income
per share

Nine months ended

Yen

Yen

December 31, 2016

185.31

170.66

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

Equity-to-asset ratio

Millions of yen

Millions of yen%

December 31, 2016

120,866

84,467

69.9

March 31, 2016

126,279

85,223

67.5

Reference: Equity
As of December 31, 2016: ¥84,466 million
As of March 31, 2016:¥85,223 million

5,263%
24.0

4,246 (11.1)

2.

Dividends
Dividends per shareFirst quarter-end

Second quarter-end Third quarter-end

Fiscal year-end

Total

Yen

Yen

Yen

Yen

Yen–35.00–35.0070.00–40.00

–
40.00

80.00

Fiscal year ended
March 31, 2016
Fiscal year ending
March 31, 2017
Fiscal year ending
March 31, 2017
(Forecast)

Note: Revisions to the dividends forecasts most recently announced: None3.

Consolidated earnings forecasts for the fiscal year ending March 31, 2017(from April 1, 2016 to March 31, 2017)(Percentages indicate year-on-year changes.)
Net sales

Fiscal year ending
March 31, 2017

Operating income

Ordinary income

Net income
attributable toowners of the parent

Basic netincome
per share

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

Yen

77,0003.9

10,70010.8

11,000

11.9

7,500

17.4

263.40Note: 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): Yes
Newly included: –Excluded:
1 company
Corona Medical SAS
Note: For details, please refer to “2. Matters regarding summary information (Notes), (1) Changes in significant
subsidiaries during the period” on page 4 of the attached materials.

(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, 2016
As of March 31, 2016b.

Number of treasury shares at the end of the period
As of December 31, 2016
As of March 31, 2016c.

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

3,263,052 shares
2,403,177 shares

Average number of shares outstanding during the period (cumulative from the beginning of thefiscal year)
Nine months ended December 31, 2016
Nine months ended December 31, 2015

28,402,526 shares
28,905,009 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 financialresults report, the review procedures for quarterly consolidated financial statements in accordance with the Financial
Instruments 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 3 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....... 32. Matters regarding summary information (Notes) ................................................................................... 4(1) Changes in significant subsidiaries during the period...................................................................... 4(2) Application of special accounting for preparing quarterly consolidated financial statements......... 4(3) Changes in accounting policies, changes in accounting estimates, and restatement ....................... 4(4) Additional Information .................................................................................................................... 4
3. Significant events regarding premise of going concern ......................................................................... 44. Quarterly consolidated financial statements ........................................................................................... 5(1) Consolidated balance sheet .............................................................................................................. 5(2) Consolidated statement of income and consolidated statement of comprehensive income ............. 7
Consolidated statement of income (cumulative) .............................................................................. 7Consolidated statement of comprehensive income (cumulative) ..................................................... 8(3) Notes to quarterly consolidated financial statements ....................................................................... 9Notes on premise of going concern.................................................................................................. 9Notes on substantial changes in the amount of shareholders’ equity ............................................... 9-1-

1.

Qualitative information regarding financial results for the first nine months(1) Information regarding operating results
In the nine months ended December 31, 2016, the Japanese economy maintained a trend of gradual
recovery, reflecting the effects of various government measures. Nevertheless, the future prospectsof the economy remain uncertain due to the impact of the concern of a downturn in overseas
economies and other factors.
In the medical and elderly welfare fields, which are related to the operations of the Paramount Bed
Group (“the Group”), as a policy to contain growth in social security spending, the following items
were incorporated into the proposed fiscal 2017 budget: the increased burden of elderly people andthe reduction of high pharmaceutical prices in the medical field, the introduction of the incomebased contribution (a change in the distribution system of payment for nursing care insurance) in the
caregiving field, and other items.
Amid this environment, the Group announced its medium-term business plan, “2020 Plan,” which
covers the five year period from April 2016 to March 2021. The Group has set “maintaining andexpanding existing business areas,” “stepping up pace of overseas business expansion,” and“strengthening R&D and creating business models serving as buds of new growth” as its key
policies, and is aiming for sustainable growth and enhancement of corporate value. As part of saidbusiness plan, the goals for consolidated net sales and consolidated operating income for the fiscal
year ending March 31, 2021, were set at ¥100,000 million and ¥14,000 million respectively.
With respect to product development, the “Cococia Fūka” air mattress designed to prevent bedsores,and “INTIME 1000,” which is an electric-powered bed that transforms into a bed for caregiving
when needed, were both launched in October 2016.
On the sales front, business was, in general, as estimated for maintenance, rental of welfare
equipment, etc. as well as product sales for home caregiving, despite a decline in product sales for
medical and elderly facilities year on year.
Furthermore, Paramount Bed Co., Ltd., a consolidated subsidiary of the Company, on October 31,
2016, transferred all of the shares that it held in Corona Medical SAS (hereinafter “CoronaMedical”) to Hcare International SAS. Corona Medical has carried out the manufacture and sales ofbeds, etc., for medical welfare, predominately in France; however, operation of Corona Medical wasunder difficult circumstances due mainly to the economic slowdown in Europe. As a result of theaforementioned share transfer, extraordinary losses of ¥1,142 million were recorded in the ninemonths ended December 31, 2016. However, as a result of the application of deferred tax
accounting, etc., the impact on net income attributable to owners of the parent was minor.
As a result of the above, in the nine months ended December 31, 2016, net sales were ¥48,730
million (down 2.6% year on year), operating income was ¥6,738 million (up 17.1%) and ordinary
income was ¥7,236 million (up 12.7%). Net income attributable to owners of the parent was ¥5,263
million (up 24.0%).
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, 2016, amounted to ¥120,866 million, which was a decrease of¥5,413 million compared to March 31, 2016. The primary factor in this fall was a decrease in notes
and accounts receivable - trade.
Liabilities amounted to ¥36,399 million, which was a decrease of ¥4,656 million compared toMarch 31, 2016. The primary factors in this fall were decreases in accounts payable - trade andincome taxes payable.
Net assets amounted to ¥84,467 million, which was a decrease of ¥756 million compared to March31, 2016. The primary factor in this fall was acquisition of treasury shares.
As a result, the equity-to-asset ratio as of December 31, 2016, increased by 2.4 percentage points
compared to March 31, 2016, to 69.9%.

-2-(3) Information regarding consolidated earnings forecasts and other forward-looking statements
No revisions have been made to the consolidated earnings forecasts announced on May 11, 2016.

-3-2.

Matters regarding summary information (Notes)(1) Changes in significant subsidiaries during the period
In the third quarter ended December 31, 2016, as a result of Paramount Bed Co., Ltd., aconsolidated subsidiary of the Company, transferring all of the shares of its specified subsidiary,Corona Medical, to Hcare International SAS, Corona Medical no longer qualifies as a specified
subsidiary of Paramount Bed Co., Ltd. Accordingly, it has been excluded from the scope ofconsolidation for the third quarter ended December 31, 2016.
(2) Application of special accounting for preparing quarterly consolidated financial statements
No items to report.
(3) Changes in accounting policies, changes in accounting estimates, and restatement
Changes in accounting policies(Application of Practical Solution on a Change in Depreciation Method Due to Tax Reform 2016)
Following the revision to the Corporation Tax Act, the Company has applied the “Practical Solution
on a Change in Depreciation Method Due to Tax Reform 2016” (ASBJ PITF No. 32, June 17, 2016)
from the first quarter ended June 30, 2016, and changed the depreciation method for facilities
attached to buildings and structures acquired on or after April 1, 2016 from the declining balancemethod to the straight line method.
The effect of this application on profit or loss is immaterial.
(4) Additional Information(Application of ASBJ Guidance on Recoverability of Deferred Tax Assets)
Effective from the first quarter ended June 30, 2016, the Company has applied the Guidance on
Recoverability of Deferred Tax Assets (ASBJ Guidance No. 26, March 28, 2016).

3.

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

-4-4.

Quarterly consolidated financial statements(1) Consolidated balance sheet(Millions of yen)
As of March 31, 2016
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 vehiclesAccumulated depreciation
Machinery, equipment and vehicles, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Assets for rent
Accumulated 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-5-

As of December 31, 2016

26,22923,307
2,277
9,384
5,396
237
1,635
2,578
(58)
70,98929,695
15,439
2,048
7,703
5,820
217
1,259
3,306
(44)
65,44627,457(18,739)
8,717
7,577
(6,660)
916
8,716
120
(102)
17
19,243(8,849)10,39474
8,766(7,544)
1,221
30,05827,136(19,026)
8,110
7,262
(6,518)
743
8,649
99
(94)
4
21,986(10,623)
11,362
194
8,736(7,573)
1,162
30,227

34
1,951
1,986

25
1,909
1,935

15,511
7,824(91)
23,24455,290126,279

15,921
7,422(86)
23,25755,420120,866

(Millions of yen)
As of March 31, 2016

As of December 31, 2016

10,938
647
1,577
1,782
1,212
28
4,053
20,240

7,509
–
1,824
433
645
–
4,506
14,91910,022
75
3,378
41
5,320
1,976
20,81541,055

10,015
–
3,876
41
5,499
2,047
21,47936,3994,207
49,87737,552(7,501)
84,136

4,207
49,87740,679(10,729)
84,034

317

505

1,344
(574)
1,086
0
85,223
126,279454(527)432
084,467
120,866

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
Other
Total 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-6-(2) Consolidated statement of income and consolidated statement of comprehensive income
Consolidated statement of income (cumulative)(Millions of yen)
Nine months ended
December 31, 2015
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Gain on investments in partnership
Gain on investments in silent partnership
OtherTotal non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Gain on redemption of investment securities
Total extraordinary income
Extraordinary losses
Loss on sales of investment securities
Loss on redemption of investment securities
Loss on valuation of investment securities
Loss on sales of shares of subsidiaries and associates
Total extraordinary losses
Income before income taxes
Income taxes - current
Income taxes - deferredTotal income taxes
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of the parent-7-

Nine months ended
December 31, 2016

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

48,73025,57623,154
16,415
6,738

120
204
20
251
144
741

110
103
262
28
106
611

35
38
5
79
6,419

26
54
33
114
7,236

56
44
100

42
59
102

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

–
18
–
1,142
1,160
6,177
892
21
914
5,263
05,263

Consolidated statement of comprehensive income (cumulative)(Millions of yen)Nine months ended
December 31, 2015
Net income
Other 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 the parent
Non-controlling interests-8-

Nine months ended
December 31, 2016

4,246

5,263(417)(87)
33(471)
3,774

187(889)
46(654)
4,608

3,774
0

4,608
0

(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.

-9-