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.

July 31, 2017

Consolidated Financial Results
for the First Three Months of the Fiscal Year Ending March 31, 2018
<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:

August 9, 2017
–NoneNone(Millions of yen with fractional amounts discarded, unless otherwise noted)

1.

Consolidated financial results for the first three months of the fiscal year ending
March 31, 2018 (from April 1, 2017 to June 30, 2017)(1) Consolidated operating results (cumulative)
Net sales
Three months ended(Percentages indicate year-on-year changes.)

Operating income

Millions of yen% Millions of yen

Net income attributableto owners of the parent

Ordinary income% Millions of yen% Millions of yen%

June 30, 2017

16,017

3.4

1,559 (14.3)

2,402 113.7

1,670 138.3

June 30, 2016

15,493

(0.7)

1,819

1,124 (39.7)

700 (46.2)

14.4

Note: Comprehensive income Three months ended June 30, 2017: ¥1,806 million:
Three months ended June 30, 2016: ¥(183) million:
Basic net income
per share

[–%]
[–%]

Diluted net income
per share

Three months endedYen

Yen

June 30, 2017

60.50

55.57

June 30, 2016

24.62

22.68

(2) Consolidated financial position
Total assets
As ofNet assets

Equity-to-asset ratio

Millions of yen

Millions of yen%

June 30, 2017

126,438

88,817

70.2

March 31, 2017

128,962

88,391

68.5

Reference: Equity
As of June 30, 2017:
As of March 31, 2017:¥88,816 million¥88,390 million

2.

Dividends
Dividends per shareFirst quarter-end

Second quarter-end Third quarter-end

Fiscal year-end

TotalYen

Yen

Yen

Yen

Yen–40.00

–

50.00

90.00

45.00

–

45.00

90.00

Fiscal year ended
March 31, 2017
Fiscal year ending
March 31, 2018
Fiscal year ending
March 31, 2018
(Forecast)–Note: Revisions to the dividends forecasts most recently announced: None
Year-end dividends for the fiscal year ended March 31, 2017 consist of regular dividends of ¥40.00 and commemorative
dividends of ¥10.00.

3.

Consolidated earnings forecasts for the fiscal year ending March 31, 2018(from April 1, 2017 to March 31, 2018)(Percentages indicate year-on-year changes.)
Net sales

Operating income

Ordinary income

Net income
attributable toowners of the parent

Basic net
incomeper share

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

Yen

Six months ending
September 30, 201734,2005.6

4,400(1.0)

4,500

15.8

3,000

11.8

108.64

Fiscal year ending
March 31, 2018

76,0003.8

11,5004.4

11,8000.1

8,000 (11.5)

289.71

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.: Noneb. 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 June 30, 2017
As of March 31, 2017b.

Number of treasury shares at the end of the period
As of June 30, 2017
As of March 31, 2017c.

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

3,263,219 shares
3,263,161 shares

Average number of shares outstanding during the period (cumulative from the beginning of thefiscal year)
Three months ended June 30, 2017
Three months ended June 30, 2016

27,614,288 shares
28,476,625 shares* Quarterly financial results reports are not required to be subjected to quarterly reviews.
* 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, the statements
herein do not constitute assurances regarding the Company’s actual results. Actual financial and other results may
differ substantially from the statements herein due to various factors. Please refer to “1. Qualitative information
regarding financial results for the first three months, (3) Information regarding consolidated earnings forecasts andother forward-looking statements” on page 3 of the attached materials for the suppositions that form the assumptions
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 three 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....... 3
2. Quarterly consolidated financial statements and significant notes thereto ............................................. 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 ....................................................................... 7Notes on premise of going concern.................................................................................................. 7Notes on substantial changes in the amount of shareholders’ equity ............................................... 7-1-1.

Qualitative information regarding financial results for the first three months(1) Information regarding operating results
In the three months ended June 30, 2017, the Japanese economy continued to mount a gradual
recovery fueled by factors such as better corporate earnings and a more upbeat employment
situation, yet future prospects remain unclear largely due to economic uncertainties overseas.
In the medical and elderly welfare fields, which are related to the operations of the Paramount Bed
Group (“the Group”), the Japanese government has settled on a general framework for the revisionin 2018 of the long-term care insurance system which is being undertaken with the aim ofestablishing a community-based integrated care system in 2025 when those in Japan’s baby boom
generation will be aged 75 and older. The pillars of the revision encompass government initiatives
geared to “deepening and promoting the community-based integrated care system,” and“maintaining sustainability of the long-term care insurance system.”
Amid this environment, the Group has been actively developing business in a manner geared toensuring that it achieves objectives of its medium-term business plan, “2020 Plan,” which covers
the period encompassing April 2016 to March 2021. The business plan cites “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 geared to achieving its goals for consolidated net sales and consolidated operating income
for the fiscal year ending March 31, 2021, of ¥100,000 million and ¥14,000 million, respectively.
With respect to product development, in June 2017 we announced a model change involving our“L’za” chairs for use in dialysis and chemotherapy units, designed to save space and ensure patient
comfort.
As for our overseas business, having established an assembly plant in Mexico we started production
geared to achieving full-scale operations in July 2017. We anticipate that such operations will
enable us to increase sales given that taking part in the bidding process in Mexico is often
contingent on a firm engaging in domestic production, and we also have our sights set on exporting
products to neighboring countries.
With respect to the Paramount Care Service Co., Ltd. rental wholesale business for assistive
products, we have been expanding our footprint nationwide in order to better provide sophisticatedservices and develop new markets. As of June 30, 2017, Paramount Care Service Co., Ltd. operates
in 74 business locations upon having newly established and integrated facilities.
In addition, as was announced in April 2017 Paramount Bed Co., Ltd. will handle business
operations involving the “Welwalk WW-1000” rehabilitation-assist robot developed by Toyota
Motor Corporation, and Paratechno Co., Ltd. will be consigned services such as those involving set
up, maintenance and call-center support.
On the sales front, business such as that involving product sales in Japan, maintenance, and assistive
product rental wholesale generated sound results across the board.
As a result of the above, in the three months ended June 30, 2017, net sales were ¥16,017 million(up 3.4% year on year), operating income was ¥1,559 million (down 14.3% largely as a result ofhaving incurred costs associated with rebuilding branches) and ordinary income was ¥2,402 million(up 113.7% largely as a result of having recognized gain on investments in partnership). Net income
attributable to owners of the parent was ¥1,670 million (up 138.3%).
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 June 30, 2017, amounted to ¥126,438 million, which was a decrease of ¥2,523
million compared to March 31, 2017. The primary factor in this fall was a decrease in notes andaccounts receivable - trade.
Liabilities amounted to ¥37,621 million, which was a decrease of ¥2,949 million compared toMarch 31, 2017. The primary factors in this fall were decreases in accounts payable - trade, income
taxes payable and provision for bonuses.

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Net assets amounted to ¥88,817 million, which was an increase of ¥425 million compared to March31, 2017. The primary factors in this increase were increases in retained earnings and valuationdifference on available-for-sale securities. As a result, the equity-to-asset ratio as of June 30, 2017,
increased by 1.7 percentage points compared to March 31, 2017, to 70.2%.
(3) Information regarding consolidated earnings forecasts and other forward-looking statements
No revisions have been made to the consolidated earnings forecasts announced on May 10, 2017.

-3-

2.

Quarterly consolidated financial statements and significant notes thereto(1) Consolidated balance sheet(Millions of yen)
As of March 31, 2017
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Lease receivables and investment assetsSecurities
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
Total investments and other assets
Total non-current assets
Total assets-4-

As of June 30, 201730,22822,914
1,962
9,804
4,453
225
1,381
2,160
(44)
73,08530,185
17,6392,067
10,672
5,413
202
1,418
2,618
(42)
70,17627,256(19,175)
8,081
7,375
(6,585)
789
8,650
109
(109)
0
22,858(11,192)
11,665
126
8,876(7,692)
1,183
30,496

26,810(18,998)
7,811
7,339
(6,592)746
8,650
109(109)0
23,504(11,594)
11,90935
8,978(7,720)1,258
30,412

22
1,972
1,994

18
1,960
1,979

15,734
7,704(54)
23,38555,877
128,962

15,761
8,162(53)
23,86956,262
126,438(Millions of yen)
As of March 31, 2017
Liabilities
Current liabilities
Accounts payable - trade
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
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
Noncontrolling interests
Total net assets
Total liabilities and net assets-5-

As of June 30, 2017

10,603
1,888713
1,245
27
4,028
18,507

7,777
1,962
249
615
–
4,523
15,12810,012
4,034
41
5,564
2,409
22,06340,57010,010
4,228
41
5,636
2,575
22,49337,621

4,207
49,87744,451(10,730)
87,8054,207
49,87744,740(10,730)
88,095

542

744

568
(525)
585
0
88,391
128,962

493
(516)
721
0
88,817
126,438(2) Consolidated statement of income and consolidated statement of comprehensive income
Consolidated statement of income (cumulative)(Millions of yen)

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
Loss on investments in silent partnership
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
Total extraordinary losses
Income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Net income
Net income attributable to noncontrolling interests
Net income attributable to owners of the parent-6-

Three months ended
June 30, 2016

Three months ended
June 30, 201715,493
8,226
7,267
5,448
1,819

16,017
8,442
7,574
6,015
1,559

33
48
–––
22104

33
47
100
605
962
858

8671
76
29
12799
1,124

7–––
714
2,402

73644–
–
–

–
10
3
14
1,154
229
224
453
701
0
700

50
–
52,397
437
288
726
1,670
0
1,670

Consolidated statement of comprehensive income (cumulative)(Millions of yen)Three months ended
June 30, 2016

Three months ended
June 30, 2017

701

1,670(468)(425)
9(884)(183)

202(75)8136
1,806(183)(0)

1,8060Net income
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of taxTotal other comprehensive income
Comprehensive income
Comprehensive income attributable to:
Owners of the parent
Noncontrolling interests(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.

-7-