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.

August 6, 2014

Consolidated Financial Results
for the First Three 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:

August 12, 2014
–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, 2015 (from April 1, 2014 to June 30, 2014)(1) Consolidated operating results (cumulative)
Net sales
Three months ended(Percentages indicate year-on-year changes.)

Operating income

Millions of yen% Millions of yen

Ordinary income% Millions of yen

June 30, 2014

16,1748.8

2,318

June 30, 2013

14,867(5.5)

2,141 (23.4)

Note:

8.3

2,361

4.4

2,261 (18.5)

Comprehensive income Three months ended June 30, 2014: ¥1,478 million:
Three months ended June 30, 2013: ¥1,633 million:
Basic earnings
per share

Net income% Millions of yen[(9.5)%][13.1%]

Diluted earnings
per share

Three months endedYenYen

June 30, 2014

50.14

46.44

June 30, 201344.71

44.63(2) Consolidated financial position
Total assets
As ofNet assets

Equity-to-asset ratio

Millions of yen

Millions of yen%

June 30, 2014

118,331

83,26970.4

March 31, 2014

122,30282,571

67.5

Reference: Equity
As of June 30, 2014:
As of March 31, 2014:¥83,257 million¥82,552 million

1,538%
12.4

1,368 (15.3)

2.

Dividends
Dividends per shareFirst quarter-end

Second quarter-end Third quarter-end

Fiscal year-end

TotalYen

Yen

Yen

Yen

Yen–

25.00

–

25.00

50.00

25.00

–

35.00

60.00

Fiscal year endedMarch 31, 2014
Fiscal year ending
March 31, 2015
Fiscal year ending
March 31, 2015
(Forecast)–Note: Revisions to the dividends forecasts most recently announced: NoneDividends 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

Operating incomeOrdinary income

Basic earnings
per share

Net income

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

Yen

Six months ending
September 30, 2014

32,500

5.7

4,600

3.7

4,700

1.8

2,900

2.6

94.64

Fiscal year ending
March 31, 2015

75,0003.0

12,0004.0

12,300

(0.5)

7,400

0.2

241.50Note: 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
Note: For details, please refer to “2. Matters regarding summary information (Notes), (3) Changes in accounting policies,changes in accounting estimates, and restatement” on page 3 of the attached materials.(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, 2014
As of March 31, 2014b.

Number of treasury shares at the end of the period
As of June 30, 2014
As of March 31, 2014c.

30,852,887 shares
30,828,587 shares

144,640 shares
149,396 shares

Average number of shares outstanding during the period (cumulative from the beginning of thefiscal year)
Three months ended June 30, 2014
Three months ended June 30, 2013

30,690,339 shares
30,612,978 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 three 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 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....... 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............. 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
Significant subsequent events .......................................................................................................... 8-1-1.

Qualitative information regarding financial results for the first three months(1) Information regarding operating results
In the Japanese economy in the three months ended June 30, 2014, although there were some
temporary signs of weakness resulting from a pullback in demand following a rush ahead of aconsumption tax hike, there was a continued trend of moderate recovery reflecting the effects ofvarious government measures. Nevertheless, Japan’s economic prospects continued to be unclear
due to such factors as economic downswings overseas.
In the medical and elderly welfare fields, which are related to the operations of the Paramount Bed
Group (the “Group”), the Act for the Promotion of Regional Medical Care and Nursing Care waspassed in June 2014. The Act is intended to reform the medical care and nursing care systems in an
integrated manner in preparation for 2025, when the aging of Japan’s population is expected to peak.
In the nursing care insurance field, items intended to constrain growth in social security spending
were incorporated into the Act. These include limiting persons newly admitted to special elderly
care homes, for which waiting lists are estimated to total 520,000 persons, to those qualified as“long-term care level 3” or higher and raising the portion of the expense to be paid by those with acertain level of income from 10% to 20%.
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.
On the sales front, although some products and services were affected by pullbacks in demandfollowing the rush ahead of the consumption tax hike, sales and rentals of the “Rakusho Z Series” ofbeds for home caregiving launched in January 2014 were strong.
As a result of the above, in the three months ended June 30, 2014, net sales were ¥16,174 million(up 8.8% year on year), operating income was ¥2,318 million (up 8.3%) and ordinary income was¥2,361 million (up 4.4%). Net income was ¥1,538 million (up 12.4%).
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, 2014, amounted to ¥118,331 million, which was a decrease of ¥3,971
million compared to March 31, 2014. The primary factors in this decrease were decreases in cash
and deposits and notes and accounts receivable - trade.
Liabilities amounted to ¥35,061 million, which was a decrease of ¥4,669 million compared toMarch 31, 2014. The primary factors in this decrease were decreases in accounts payable - trade,
income taxes payable and provision for bonuses.
Net assets amounted to ¥83,269 million, which was an increase of ¥698 million compared to March
31, 2014. The primary factors in this increase were an increase resulting from the recording of¥1,538 million of net income and a decrease in retained earnings resulting from the payment ofyear-end dividends. As a result, the equity-to-asset ratio as of June 30, 2014, increased by 2.9
percentage points compared to March 31, 2014, to 70.4%.
(3) Information regarding consolidated earnings forecasts and other forward-looking statements
No revisions have been made to the consolidated earnings forecasts announced on May 13, 2014.

-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 three 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 quarter of the fiscal year ending March 31, 2015, the previously
used method is still being employed. Consequently, this has no effects on profit or loss for the first
three 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
OtherAllowance for doubtful accounts
Total current assets
Non-current assetsProperty, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, netLand
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
OtherAllowance for doubtful accounts
Allowance for investment loss
Total investments and other assets
Total non-current assets
Total assets-4-

As of June 30, 2014

27,783
24,698
2,436
3,667
4,225
306
1,734
3,672
(56)
68,46926,01819,020
2,423
5,573
5,312
257
1,723
3,051
(56)
63,32427,014(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
31,12027,229(17,721)
9,508
7,489
(6,318)
1,171
8,690
208
(140)
67
16,758(6,577)
10,18044
8,888(7,336)
1,552
31,215

111
2,223
2,334

97
2,153
2,250

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

17,331
4,752
(59)
(485)
21,53955,006
118,331(Millions of yen)
As of March 31, 2014
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
Subscription rights to shares
Minority interests
Total net assets
Total liabilities and net assets-5-

As of June 30, 2014

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

7,653
429
2,062
600
583
–
4,366
15,695

10,042
444
3,597
46
4,083
677
18,892
39,731

10,040
446
3,473
46
4,225
1,135
19,36635,061

4,166
49,83527,484(383)
81,103

4,186
49,85628,197(371)
81,868

621

647

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

913
(172)
1,388
110
83,269118,331(2) Consolidated statement of income and consolidated statement of comprehensive incomeConsolidated 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
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 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-

Three months ended
June 30, 2013

Three months ended
June 30, 2014

14,867
7,770
7,096
4,955
2,141

16,174
8,568
7,606
5,287
2,318

29
69
38
53
36
227

29
80
–
–
34
143

23
83
–
–
0
107
2,261

17
55
15
7
4
101
2,361

26
39
65

10
15
26

0
0
2,326
453
501
955
1,371
2
1,368

–
–
2,387
545
303
848
1,538
0
1,538Consolidated statement of comprehensive income (cumulative)(Millions of yen)

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-

Three months ended
June 30, 2013

Three months ended
June 30, 2014

1,371

1,538

0261–261
1,633

26(110)23(60)
1,478

1,614
18

1,4780(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.
Significant subsequent events
Acquisition of treasury shares by means of tender offer
Based on a resolution of a meeting of the board of directors held on May 22, 2014, the Company
acquired treasury shares by means of a tender offer, as follows, in accordance with paragraph 1 ofArticle 156 of the Companies Act, with replacement of terms pursuant to paragraph 3 of Article 165of the Companies Act, and the Company’s Articles of Incorporation.
1. Details of the resolution by the board of directors’ meeting(1) Type of shares to be acquired:
Common shares of the Company(2) Total number of shares to be acquired:1,500,100 shares (maximum)(3) Total acquisition price of shares:¥4,350,290,000 (maximum)(4) Acquisition period:
From May 23, 2014 to June 30, 2014
2. Overview of the tender offer(1) Tender offer period:

From May 23, 2014 to June 19, 2014(20 business days)¥2,900 per share
1,500,000 shares(2) Acquisition price:(3) Total number of shares to be acquired:(4) Date of public notice of commencement of theMay 23, 2014
tender offer bid:(5) Settlement commencement date:July 11, 2014
3. Results of the tender offer(1) Total number of tendered shares:(2) Total number of shares acquired:(3) Total acquisition price:

1,400,233 shares
1,400,233 shares¥4,060,675,700-8-