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, 2015

Consolidated Financial Results
for the First Nine Months of the Fiscal Year Ending March 31, 2015
<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, 2015
–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, 2015 (from April 1, 2014 to December 31, 2014)(1) Consolidated operating results (cumulative)
Net sales(Percentages indicate year-on-year changes.)

Operating income

Millions of yen

December 31, 2014

50,681

10.3

6,597

December 31, 2013

45,931

1.0

6,062 (19.4)

Note:% Millions of yen

Ordinary income

Nine months ended% Millions of yen
8.8

7,600

15.9

6,558 (15.3)

Comprehensive income Nine months ended December 31, 2014: ¥5,692 million:
Nine months ended December 31, 2013: ¥4,955 million:
Basic earnings
per share

Net income% Millions of yen[14.9%][(1.1)%]

Diluted earnings
per share

Nine months endedYen

Yen

December 31, 2014159.73147.63

December 31, 2013

130.03123.30(2) Consolidated financial position
Total assets
As ofNet assets

Equity-to-asset ratio

Millions of yen

Millions of yen%

December 31, 2014

118,781

82,803

69.7

March 31, 2014

122,30282,571

67.5

Reference: Equity
As of December 31, 2014: ¥82,802 million
As of March 31, 2014:¥82,552 million

4,773

%
19.9

3,983 (13.0)

2.

Dividends
Dividends per shareFirst quarter-end

Second quarter-end Third quarter-end

Fiscal year-end

TotalYen

YenYen

Yen

Yen–

25.00

–

25.00

50.00

–

25.00

–35.0060.00

Fiscal year ended
March 31, 2014
Fiscal year ending
March 31, 2015
Fiscal year ending
March 31, 2015
(Forecast)

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

3.

Consolidated earnings forecasts for the fiscal year ending March 31, 2015
(from April 1, 2014 to March 31, 2015)(Percentages indicate year-on-year changes.)
Net sales

Fiscal year ending
March 31, 2015

Millions ofyen%

75,0003.0

Operating income

Ordinary income

Millions ofyen

Millions ofyen%

10,000 (13.4)

Basic earnings
per share

Net income%Millions ofyen%

Yen

10,700 (13.4)

6,800(7.9)

221.92

Note: Revisions to the earnings forecasts most recently announced: Yes
For details, 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.
*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: Noned. 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, 2014
As of March 31, 2014b.

Number of treasury shares at the end of the period
As of December 31, 2014
As of March 31, 2014c.

30,877,487 shares
30,828,587 shares

1,511,195 shares
149,396 shares

Average number of shares outstanding during the period (cumulative from the beginning of thefiscal year)
Nine months ended December 31, 2014
Nine months ended December 31, 2013

29,888,223 shares
30,632,332 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 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 ...... 2
2. 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 ............. 6Consolidated 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, 2014, the Japanese economy continued to mount a gradual
recovery mainly reflecting the effects of various governmental measures. Nevertheless, owing to theprotracted nature of a pullback in demand following a rush ahead of a consumption tax hike,downswings in overseas economies and other factors, the economy’s prospects were unclear.
The medical and elderly welfare fields, which are related to the operations of the Paramount Bed
Group (the “Group”), underwent developments implemented with a view to realizing the 2025
medical service supply system envisioned in the government’s Comprehensive Reform of Social
Security and Tax. These consisted of the further promotion of measures such as differentiating
hospital bed space by function, enhancing in-home medical care and establishing an integrated
community care system in a reform of the system of medical service fees implemented in April
2014.
Amid this environment, the Group worked to further strengthen its core business of product sales
targeted at medical and elderly facilities and made concerted efforts to expand its business fields inJapan and overseas.
Paramount Care Service Co., Ltd., which operates a rental service for welfare equipment,
established offices in two locations in Japan to expand the business, bringing the number of
directly-managed offices to 56 nationwide.
Products developed during the nine months included the “Cococia Yuki Series” of mattresses
designed to prevent bedsores by appropriately controlling pressure on the body in line with themovement of the bed, the “Aldecora Series” of electric-powered beds designed to match a variety ofdifferent convalescence spaces for use in medical and nursing facilities, and “Celenus Series” ofdelivery beds for overseas markets.
On the sales front, sales and rentals of the “Rakusho Z Series” of beds for home caregiving
launched in January 2014 remained strong, contributing to generally solid sales at all of the Group’scompanies.
As a result of the above, in the nine months ended December 31, 2014, net sales were ¥50,681
million (up 10.3% year on year), operating income was ¥6,597 million (up 8.8%) and ordinary
income was ¥7,600 million (up 15.9%). Net income was ¥4,773 million (up 19.9%).
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, 2014, amounted to ¥118,781 million, which was a decrease of¥3,520 million compared to March 31, 2014. The primary factor in this fall was a decrease in notes
and accounts receivable - trade.
Liabilities amounted to ¥35,978 million, which was a decrease of ¥3,753 million compared toMarch 31, 2014. The primary factors in this fall were decreases in accounts payable - trade andincome taxes payable.
Net assets amounted to ¥82,803 million, which was an increase of ¥232 million compared to March31, 2014. The primary factors in this increase were increases in valuation difference on availablefor-sale securities and foreign currency translation adjustment.
As a result, the equity-to-asset ratio as of December 31, 2014, increased by 2.2 percentage points
compared to March 31, 2014, to 69.7%.
(3) Information regarding consolidated earnings forecasts and other forward-looking statements
The consolidated earnings forecasts announced on May 13, 2014, have been revised downward. Therevision was made in view of changes in revenues at medical facilities due to a reform of the systemof medical service fees implemented in April 2014, the consumption tax hike and other factors, andimpacts from developments including the prolonged nature of the pullback in demand following therush ahead of the consumption tax hike.

-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 statements
No items to report.
(3) Changes in accounting policies, changes in accounting estimates, and restatement
Changes in accounting policies(Application of the Accounting Standard for Retirement Benefits, etc.)
Regarding the “Accounting Standard for Retirement Benefits” (ASBJ Statement No. 26, May 17,2012) and “Guidance on Accounting Standard for Retirement Benefits” (ASBJ Guidance No. 25,
May 17, 2012), effective from the first quarter of the fiscal year ending March 31, 2015, theprovisions of the main clauses of paragraph 35 of the Accounting Standard for Retirement Benefits
and paragraph 67 of Guidance on Accounting Standard for Retirement Benefits have been applied.
Consequently, the method for calculating retirement benefit obligations and current service costs
was reviewed and the method of attributing expected benefit to periods was changed from thestraight-line method to the benefit formula method, while the method for determining discount rates
was changed from one in which the period for bonds, which forms the basis for determining thediscount rate, is determined based on the approximate number of years of the average remaining
service period of employees, to a method using a single weighted average discount rate reflecting
the period up to the expected timing of retirement benefit payments, as well as the amount ofretirement benefit payment for each such period.
Application of the Accounting Standard for Retirement Benefits and Guidance on AccountingStandard for Retirement Benefits is in line with the transitional measures provided in paragraph 37of the Accounting Standard for Retirement Benefits, and the effect of the revision to the method forcalculating retirement benefit obligations and current service costs was added to or deducted fromretained earnings as of April 1, 2014.
As a result, as of April 1, 2014, net defined benefit liability increased by ¥73 million, and retained
earnings decreased by ¥53 million. In addition, the effect of this application on profit or loss for thefirst nine months of the fiscal year ending March 31, 2015 is immaterial.
(Application of the Practical Solution on Transactions of Delivering the Company’s Own Stock toEmployees, etc. through Trusts)“Practical Solution on Transactions of Delivering the Company’s Own Stock to Employees, etc.
through Trusts” (ASBJ PITF No. 30, December 25, 2013) has been applied effective from the firstquarter of the fiscal year ending March 31, 2015. As the relevant trust agreement was concluded
before the beginning of the first nine months of the fiscal year ending March 31, 2015, thepreviously used method is still being employed. Consequently, this has no effect on profit or loss forthe first nine months of the fiscal year ending March 31, 2015.

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, 2014
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 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
Allowance for investment loss
Total investments and other assets
Total non-current assets
Total assets-4-

As of December 31, 2014

27,783
24,698
2,436
3,667
4,225
306
1,734
3,672(56)68,46925,68817,186
2,597
5,719
6,825
298
1,869
3,191
(56)
63,32027,014(17,564)
9,449
7,511
(6,278)
1,233
8,692
251
(174)
76
16,354(6,323)
10,031
100
8,812(7,276)
1,536
31,12027,327(17,980)
9,347
7,632
(6,535)
1,097
8,689
130
(87)
43
17,430(7,212)
10,21853
8,627(7,269)1,357
30,805

111
2,223
2,334

71
2,089
2,161

16,698
4,223
(60)
(485)
20,37753,832
122,302

17,7905,248(59)(485)
22,49455,461
118,781(Millions of yen)
As of March 31, 2014

As of December 31, 2014

10,148
463
2,147
2,376
1,207
123
4,371
20,838

7,962
619
1,897
172
651
–
4,926
16,23010,042
444
3,597
46
4,083
677
18,892
39,731

10,035
351
3,295
46
4,352
1,666
19,74735,978

4,166
49,83527,484(383)
81,1034,207
49,87730,699(4,348)80,435

621

1,111

1,023
(195)
1,449
18
0
82,571
122,302

1,381
(125)
2,367
–
082,803
118,781

Liabilities
Current liabilities
Accounts payable - tradeShort-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
Subscription rights to shares
Minority 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, 2013
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
Loss on investments in partnership
Directors’ retirement benefits
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
Total extraordinary losses
Income before income taxes and minority interests
Income taxes - current
Income taxes - deferred
Total income taxes
Income before minority interests
Minority interests in income
Net income-6-

Nine months ended
December 31, 2014

45,931
24,694
21,237
15,175
6,062

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

134
156
150
148
218
117
926

105
242
577
–
22
127
1,074

67–
320
42
430
6,558

49
8
–
14
72
7,600

225
54–
280

39
15
3
59

1
0
1
6,837
2,640
200
2,841
3,996
13
3,983

3–
3
7,655
2,374
507
2,881
4,774
04,773

Consolidated statement of comprehensive income (cumulative)(Millions of yen)
Nine months ended
December 31, 2013
Income before minority interests
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 parent
Minority interests-7-

Nine months ended
December 31, 2014

3,996

4,774

430
529
–
959
4,955

490
357
70
918
5,692

4,896
58

5,691
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.

-8-