Integrated Report 2022

Contents

Corporate principles, Paramount Vision 2030
Paramount Bed Group at a Glance........ 02....................... 04

Message from the President ................................. 06
Value Creation Story
Growth Path ..................................................... 10
Strengths of the Paramount Bed Group ........... 12
Business Model ................................................. 14
Value Creation Process ..................................... 16
For Sustainable Growth .................................... 18

Editorial Policy

Medium-term Management Plan .......................... 20

Reporting Coverage

Editorial Policy

Paramount Bed Holdings Co., Ltd.
and consolidated subsidiaries

April 2021–March 2022
In order to provide up-to-date and important information,
the report includes information before and after the above
time period.

This report has been compiled with the primary objective ofemphasizing the improvement of corporate value throughthe value creation process and to promote understandingof the Paramount Bed Group's business and initiatives, with
our shareholders and investors as the primary audience.
The information on products and services (including thoseunder development) described in this report is not intended
as advertising or promotional purposes.

Guidelines Referenced

Cautionary Statement Regarding Forecasts“International Integrated Reporting Framework”
recommended by the International Integrated
Reporting Council

Descriptions regarding the future performance in this report,such as business forecasts, are based on our judgment inaccordance with information available at the time of preparation of the report and involve potential risks, uncertainties,
and other factors. Therefore, please be advised that actual
results may materially differ from those forecasted due tochanges in various factors.

Reporting Period“Guidance for Collaborative Value Creation”
issued by the Ministry of Economy, Trade and Industry

Message from the CFO ......................................... 22
Strategy by Business ............................................. 24
Medical Care Business ...................................... 26
Nursing Care Business ...................................... 28
Health Promotion Business ............................... 30
Overseas Expansion .......................................... 32
Source of Value Creation ....................................... 34
Human Capital .................................................. 36
Manufacturing Capital...................................... 38

Social Capital .................................................... 40
Sustainability Initiatives ......................................... 42
Environmental Initiatives ................................... 44
Product Safety Initiatives ................................... 46
Social Initiatives (Employees) ............................ 48
Corporate Governance ..................................... 50
Risk Management ............................................. 52
Ensuring Compliance ....................................... 53
Financial Results and Corporate Information
Management’s Discussion and Analysis ofFinancial Condition and Results of Operation(MD&A) ............................................................. 54
Financial and Non-financial Data ....................... 56
Board of Directors, Audit and Supervisory
Committee Members, Corporate Officers ......... 58
Corporate Information ...................................... 60
Stock Information .............................................. 61

Paramount Bed Holdings Co., Ltd. Integrated Report 2022

01For a society where all people can enjoy lifelong health
The Paramount Bed Group started as a specialized manufacturer of hospital beds and has provided
a variety of solutions while expanding its business domain into the fields of facilities for elderly care,home care, and health promotion. We are proud of the fact that our customers' living environments
are improved through the use of our Group's products and services, and that our customers are truly
happy to use them. This also helps us realize our corporate principles. We will respond to changes in theenvironment accurately by placing importance on dialogue with all stakeholders, realize our corporate
principles, and contribute to society through our business activities.

HealthPromotion

Paramount Vision 2030

Smiles for Everyone from Medical
and Nursing Care to Health Field

Providing a sleep-centered environment
for people who want to live a vibrant life

Live longer and healthier
Always in good healthNursing Care
For people who want a high quality of life
and the caregivers who support themLive your life as you wish

To be a partner tosupport medical care,nursing care,and health promotion at
every stage of life

Medical Care
For patients who wish to return to society
as quickly as possible, and medical
professionals who support them

Quick and appropriate action
Quick return to society

Corporate principles

We Create Comfortable
Healthcare Environments throughCutting-edge Technology
with a Human Touch
Statement

Reliable partnership forever

02

Paramount Bed Holdings Co., Ltd.

Integrated Report 2022

as human, for human

Paramount Bed Holdings Co., Ltd. Integrated Report 2022

03

Paramount Bed Group at a glance
We are doing our business in and outside of Japan to support comfortable
healthcare environments by providing products and services in the medical,
nursing care, and health promotion fields.
Paramount Bed Group Outline

Our Group, centered on Paramount Bed, which manufactures and sells medical and nursing care beds and other products,
develops medical, nursing care, and health-related businesses in and outside of Japan, aiming to sustainably increase
corporate value and contribute to society through company business.

Business Results for the Fiscal Year Ended March 31, 2022
Net sales

Major Group Companies

Operating income

90,352million yen
No.1

Three Businesses

Holding company

12,340million yen

Medical Care
Business

Operating income margin

13.7%

No.1

domestic
market share*
in bed sales

Nursing Care
Businessdomestic
market share*
in bed sales
and rentals

HealthPromotion BusinessRapid
growth*Estimated by the Company based on annual sales results

Net sales

Paramount Bed Co., Ltd.

Paramount Bed
Asia Pacific Pte. Ltd.

Manufacture and sale ofmedical and nursing carebeds, mattresses, hospital furniture, and medical
equipment

Domestic

Regional HQ company

Paramount Care Service
Co., Ltd.

34,230million yen

52,317million yen

2,141million yen

Provision of services such as
inspection, repair, disinfection, and maintenance leasing of beds and mattresses

Rental wholesale businessthat rents out a variety ofassistive products to rental
service providers

Supporting patient careand hospital operations throughproducts and services for
medical institutions

Contributing to the improvement of thenursing care environment for users andoperational efficiency of nursing careproviders through sales and rentals ofa wide range of nursing care products

personalized lifestyles with products
and services that help people getbetter sleep

Overseas

Leap forward in key areas of Asia

595

Indonesia

2,772

Central andSouth America

227

10 overseas locations, 4 factories

Middle East

Deliveryrecord in

Other Asian countries

110 or more countries

2022/368(fiscal year ended
March 31, 2022)
Domestic

2,346

2,803
China

04

Paramount Bed Holdings Co., Ltd.

Integrated Report 2022

Expansion of business areas

Overseas sales by region (Millions of yen)
Other

Established the optimal production, sales,and supply structure through the development ofbases centered on Asia

Supporting healthier and more

Direction of Business Expansion

Paramount Bed:

Overseas

Net sales

Paratechno Co., Ltd.

Established nationwide offices (sales offices, maintenance centers, factories, etc.)
to quickly respond to customer requests

15 locations
Paramount Care Service: 78 locations
Paratechno:
13 locations

Net sales

Medical Care
Business

Nursing Care
Business

Health Promotion
Business

Advancement of Health
Promotion Business

Expansion of recurring revenue businesses

Expansion of healthcare business

Paramount Bed Holdings Co., Ltd. Integrated Report 2022

05

Message from the President

fields, sharing the opinions and thoughts of customers

Vision 2030” was a difficult start in the face of the COVID-

with the Company and realizing a one-stop value chain

19 disaster. From the very beginning of my appointment,from product development to manufacturing and sales.

I worked on infection control measures and established a

Furthermore, we have been able to accurately grasp theremote work environment, a sales structure that operates

trends of the times. For example, several years before

across as few prefectures as possible, and a production

We bring smiles for everyone

the “One Medical School in Each Prefecture” concept

system with a smaller group of employees. The numerical

was announced in 1973, a policy to establish a medical

targets for Phase I were set at 89 billion yen in net sales

from medical and nursing

university (medical school) in each prefecture that had

and 12 billion yen in operating income. Despite various

no medical schools, we made a large-scale investment to

restrictions, we were able to achieve these targets incare to health field.

expand our production facilities. This enabled us to meetthe fiscal year ended March 31, 2022 ahead of schedule.

the huge demand at the time of construction rush of new

Therefore, in May 2022, we announced the targets foruniversity hospitals. Subsequently, in anticipation of thePhase II through the fiscal year ending March 31, 2027

arrival of an aging society, we were ahead in beginningand the direction of focused activities, looking ahead todevelopment of products for the nursing care field.

the future, while maintaining the direction of “Expansion

Today, we are working to develop products and servicesof current business,” “Fully engaging in Healththat will help extend healthy life in anticipation of grow-Promotion Business,” and “Establishing the foundations

ing health awareness around the world.

for change” set forth in the Phase I plan.

Tomohiko Kimura

The direction and focus points are “Expansion of

President and Chief Executive Officer“Paramount Vision 2030” and Medium-term Management Plan

Steadily promote Phase I of theMedium-term Management Plan torealize the Vision 2030

recurring revenue businesses,” “Advancement of Health
Promotion Business,” and “Leap forward in key areas of
Asia.” With regard to “Expansion of recurring revenue
businesses," we will further accelerate our activities in
the rental wholesale business, packaged rentals centeredon equipment and ceiling supply units for hospitals, andAbout a year before I took office as president in 2020,

on-site services for medical facilities. We will also realize

I set up a project team to formulate and discuss thecontinuous business development that is not a sellout

Cutting-edge Technology with a Human Touch.” The fol-next-generation vision. During this process, I always

and to a stock-type business by further developing IoT-

lowing word “Human Touch" expresses our wish to placewanted to grow the entire group in every aspect, andbased services, such as monitoring support systems.

importance not only on technology but also on humanwanted to link the growth of the company to the hap-

In the “Advancement of Health Promotion Business,”

kindness, in the spirit of placing importance on humanity.

piness and growth of our employees, as well as to ourour main goal is to establish the health promotion busi-

In all aspects of medical care, nursing care, and healthcontribution to society. The vision for the 10 years ahead,ness as the third pillar of our business. In the expanding

promotion, we raise the concept that people are always“Smiles for everyone from medical and nursing care to

the sleep market, we will develop businesses that con-

Since its foundation, Paramount Bed Group has beenat the center as the paired concept of “Technology.”

health field” expresses our desire to contribute to thetribute to society by extending healthy life expectancy

working on “social contribution through company busi-“Creating Comfortable Healthcare Environments" is the

lives of all people, regardless of gender, age, nationality,

through improved sleep.

ness” as the base of its businesses. The motive for thevery meaning of our existence, and its realization leads torace, or other factors.

founding came when the founder saw piles of hospital“social contribution through company business.” We will

There was once a British slogan for social welfare

we will expand our business in Asia, which is our main

beds that had been offered as materials for military steel

do our business according to our principles while making

policy, “from the cradle to the grave.” My ultimate goal

focus. In many Asian countries, the percentage of manual

after the war, and thought that hospitals might be in

our products and services respond to the changing times

is to be involved as part of the social infrastructure frombeds is still high. On the other hand, demand for highly

need of beds.

and environment.

Meaning of Existence

We create comfortable, healthcare
environments through cutting-edge
technology with a human touch

06

With regard to “Leap forward in key areas of Asia,”

the beginning to the end of a person's life, just as thisfunctional beds, including ICUs, is expected to increase

The medical care field is an important environment

We are proud that we have always been one stepslogan suggests. In the “Health Promotion Business,”

in China, Indonesia, India, and other countries with largethat determines whether people live or die. Beds andahead in our industry. The source of our strength lies

which is currently the third pillar of our focus, we are

populations due to the growing need to improve theother medical equipment support the medical care field.

in the fact that all of our employees always sincerely

promoting the plan to develop products and services to

medical environment. Our Group already has bases andIn order to meet the needs of the medical care field, we

listen to our users. For example, our mainstay "Rakusho

extend healthy life expectancy as much as possible, withproduction factories in these regions, and we aim to fur-must have the technological capability to always be at

Plus series" beds for home care have been a longtime“Sleep” which greatly affects health as a starting point,

ther increase our market share and establish our brand.

the forefront of the times. This thought is expressed ashit, receiving favorable reviews even two years or morewhile utilizing sensing technology.

“Cutting-edge Technology” in our group principles, “We

after the release. This is the result of our employees,

The first phase (April 2020 to March 2024) of theCreate Comfortable Healthcare Environments throughwho are in contact with the medical and nursing care

Medium-term Management Plan under the “ParamountParamount Bed Holdings Co., Ltd.

Integrated Report 2022

Paramount Bed Holdings Co., Ltd. Integrated Report 2022

07

Message from the President

expectations. In order to further evolve our recurring

to encourage all employees, including the management

and by answering questionnaires in a smartphone appli-

revenue businesses, it is very important to be close to ourteam, to communicate with each other.

cation for the electrical bed “Active Sleep BED,” whichcustomers and to have a viewpoint of “How we can keep

The other is a “Encourage challenges.” We have kept

allows users to monitor their sleep status. Accumulation

them satisfied.” To ensure that customers who use oura high market share in the field of medical and nursingof points promotes health and contributes to society.

products and services continue to use them, our sales

care beds for many years by remaining committed to

In March 2022, we decided to establish “PB Mangrove

and other departments will play a central role in picking

being the top in the industry. This culture is something

Forest,” a mangrove forest of approximately 20 hectares

up their needs and linking them to the evolution of ourto be proud of, and we must take it over. Meanwhile, it

and 50,000 trees in Indonesia.

products and services. To achieve this, we will create ais also important to create an environment and culture

system that enables us to update our products andthat is challenging and that makes it easy for employees

services to meet the needs of our customers during theto take on new challenges in new fields. We would likedevelopment stage.

to foster a culture in which those who take action toward

With regard to “Business expansion and creation
through collaboration with other companies," we will
work on business reforms to shift from “selling goods”
to “selling experiences” that enhances product value

new challenges, even if they fail as a result, will be highly

Contribute to society throughour business so that all people canenjoy lifelong health

Address materiality

Last year, we received a letter from one of our bed users.
The person, who was paralyzed after an accident, told
us that the electric bed has enabled them to eat without

ness reform requires collaboration with a wide range

In conjunction with the formulation of the “Paramountthe help of others. We also received a comment from aof companies, and we intend to actively pursue such

Vision 2030,” from the perspective of sustainability, we

person receiving nursing care that they were grateful forcollaboration regardless of the size of the company or its

have organized and are working on the following six

the voice-operated bed, which allowed them to do more

ownership stake. As an example of such collaboration, inmaterialities (priority issues): “Support for the establish-

things on their own. We were very happy to be able to2018, we established a joint venture with a professor atment of a sustained medical and nursing care system,”

help our customers and realize that we are contributing

the University of Tokyo to provide products and services“Creation of an environment where everyone can live

to society through company business. I believe this is autilizing cutting-edge sensor technology, called Signtle

healthily and happily,” “Pursuit of product safety,”sign that our activities are getting closer to the realization

To put it bluntly, we believe that the ideal world wouldInc., and in 2021, we established a joint venture with

“Promotion of employee health, diversity and work styleof our corporate principles and vision.

be one in which medical and nursing care beds, our

Nippon Telegraph and Telephone West Corporation toreform,” “Environmentally conscious business activities,”

main business, are not used as much as possible. This isprovide online healthcare services that utilize sleep data,and "Ensuring compliance.”

because we believe that people becoming healthy andcalled NTT PARAVITA Co., Ltd. Furthermore, we believe

One example of “Support for the establishment of aWe, the Paramount Bed Group, have received such a

not having to use medical beds will bring more “smiles.”that there are a wide range of industries that could poten-

sustained medical and nursing care system” includes

great deal of recognition, and at the same time, we

Through our Group's technology, we aim to contribute to

tially collaborate with our sensor technology, including

activities for early detection of dementia. We have sen-believe that we bear a great responsibility. We will con-people's health and well-being from birth to the end of

housing, home appliances, automobiles, and hotels. We

sor technology that can estimate sleep status including

tinue to do our utmost to deliver the “smiles” described

their lives by providing a personalized lifestyle tailored towill not wait to hear about future collaboration, but will

respiratory rate and heart rate from body movement. We

in our vision by providing products and services that areeach individual's condition. This is why I included the word

actively go and make chances.

believe that this sensor technology can be applied in theneeded while asking for teaching from many people.

“Health” in the vision, and I believe that the final form of
my great dream is to spread it throughout the world.
For Sustainable Growth

Collaborate with internal andexternal stakeholders
We consider “Customer success,” “Business expansion

08

Bring “smiles” to everyone by contributing to society through company businessvalued for their challenge to the end.

to improve customer satisfaction. We believe that busiLong-term Outlook

To Our Stakeholders

Create an organizational culture that
supports challenges each other throughthorough communication

future to identify “Mild cognitive impairment,” which isan early stage of dementia.
One example of “ Creation of an environment where
everyone can live healthily and happily” includes theautomatic operation function of “Active Sleep BED”

The “Change in corporate culture" fosters and encour-developed in the health promotion business. We contrib-

ages human resources who can take on new challenges

ute to people’s health through “Sleep” with the functions

on their own, value communication, and create thethat the bed's back is raised slightly to make it easier for

Paramount Bed Group of the future.

the user to breathe and fall asleep, and that the angle

and creation through collaboration with other compa-

One of my ideals is a “Culture with thorough commu-

of the bed automatically changes to the user's preferrednies,” and “Change in corporate culture” are important

nication.” A good organization is built on a foundation of

position when falling asleep and to a flat position during

for sustainable growth in the future.

“Mutual understanding” and “Relationship of trust,” andsleep to make it easier for the user to turn over.

The “Customer success” means understanding

with the existence of diverse ways of thinking, including

As part of our efforts “Environmentally conscious busi-

what kind of results our customers expect from oura sense of values, it is necessary to have the ability toness activities,” we are supporting tree-planting activities

products and services, and helping them achieve thosecommunicate more effectively with others. I would likebased on the points that are earned with the sleep score

Paramount Bed Holdings Co., Ltd.

Integrated Report 2022

Currently, our cumulative sales of medical and nursing
care beds total approximately 8 million units worldwide.

Paramount Bed Holdings Co., Ltd. Integrated Report 202209

Value Creation Story

1. Growth Path

Our Group was founded in 1947 as a specialized manufacturer of hospital beds. Since then, we have developed a variety
of products and services while expanding our business domain into the fields of facilities for elderly care and home care in
response to the needs of the times, following the aging of the population. In recent years, in response to growing healthFounded as a specialized manufacturer of hospital beds,
we have grown through the development of businesses
that support comfortable healthcare environments.

1947: Kimura Shindai Seisakujo, Ltd. is founded

History of Growthconsciousness, we have also entered the health promotion business, proposing a comfortable sleeping environment for all
people. We have expanded our business domain by contributing to the realization of a prosperous medical and welfare
society and the creation of a comfortable healthcare environment.
2022/390,352 million yen

1966: The Chiba Factory is built

1987:The Corporate name is officiallychanged to Paramount Bed Co., Ltd.
Over-the-counter stock offerings

1950: Kimura Shindai Industry Co., Ltd. is established

1996: The Company is listed on the 1st Sectionof the Tokyo Stock Exchange

1993: The Company is listed on the 2nd Sectionof the Tokyo Stock Exchange

Health Promotion
Business

Nursing Care
Business

1980:
The automatic urine collection
device Scat-Clean is developed

Changes in
Business Domain

Globalization

Medical Care
Business

1947-

10

1950

1955-1960:
In-house gatch beds tailoredto the Japanese physiqueare developed

1960

Accumulation ofStrengths

Corporate culture of contributing tosociety through the business and abottom-up approach to the management

Social Background1940sPostwar recovery

Paramount Bed Holdings Co., Ltd.

Integrated Report 2022

1993:
The first “Rakusho”
bed for home care isdeveloped

1987:
An all-electric ICU bed
is developed

Establishment of a mass production system with integrated production
Establishment of a position as the top manufacturer in Japan

1960sHospital construction rush
Growing needs for medical beds

2010s:The sleep sensor-based
monitoring support systemstarts to be provided

2004:
An overseas subsidiary isestablished in China

1998:
A high-functional
hospital bed, “KA-6000,”is developed

2020:
The ICT-equipped home care bed“Rakusho Plus” is developed

2010A network of sales locations and a global
production system in optimal locations,with a focus on ASEAN, India,
and Central and South America are organized

2008:
A bed with a sensor to detectuser’s getting out of the bed,
“Metis” is developed

2002:
A maintenancecompany (Paratechno)
is established1962:
The Japan’s firstelectric bed is developed

1970

2019:
The “Active Sleep” brand in the sleep
and health domain is established2007: S unnetwork Co., Ltd. (current ParamountCare Service Co., Ltd.) becomes a subsidiary.
The Company enters in the assistive products
rental wholesale business

1995:
The first overseas
subsidiary is establishedin Indonesia

1980

1990

2000

Expansion of the nursing care business to respond to the aging population
Establishment of product safety and quality improvement systems

1980sFacilities for elderly care are developed
Growing needs for home care2022: T he Company is listed on
TSE Prime Market

2021:
NTT PARAVITA is established toprovide online healthcare services

2001:
The “Callisto series,” low-floor electric beds
for facilities for elderly care are developed

1968:
The Trade Department
is establishedThe export is enhanced

1960s-

1969:
A quiet electric bed
motor is developed

1940s:The Company starts
manufacturing hospital beds
as a postwar revitalization businessTransition of
Net Sales

1980s-

1983:
The industry’s firstelectric bed for homecare is developed

2002: S afety Promotion Council for Medicaland Home Care Bed is established2003:
The “INTIME” brandoffering quality
sleep and health isestablished

2000s-

2011: T he Company is transitioned toholding company

2016:
An integrated bedside careinformation system “Smart Bed System”
is developed

2010s:
On-site services in
hospitals are expanded

2010

2020

2022

Diversification of the business(strengthening of service and recurring revenue business)
Acceleration of globalization

2000sShortage of nurses and caregivers
Growing health consciousness

Paramount Bed Holdings Co., Ltd. Integrated Report 2022

11

Value Creation Story

2. Strengths of the Paramount Bed Group
With our three strengths as pillars, we will lead the industry in the medical andnursing care fields and expand our business into the health promotion domain.

Strength1

One-stop
solution systemsional solutions to customer needs and issues, from planning, development, manufacturing, sales and rentals, toquality control, maintenance, and after-sales follow-up.

Planning andmarketing skills

Cutting-edge
technology

Ability to makeproposals andsales ability tomeet customers'
needs

Production
and logistics
systems that
ensure timely
andappropriate
supplyMaintenanceand quality
control

After-sales
service2and medical equipment dealers in the medical care busi-

Our Group’s Customers

ness, nursing care facilities, assistive products rental service
providers and rental wholesalers in the nursing care business,

Strong relationship of trust withcustomers built over the years

dealers in the medical, nursing care, and health promotion
As a result of our sincere response to the various opinions
build strong relationships of trust with many customers over
the years. We will continue to create new value by listening

3

Social contribution through our businessA corporate culture that values integrity

Integrated Report 2022

Nursing carefacilities

Generalusers

Home care

Medicalequipment
dealers

Assistive
products
rental service
providers
Rentalwholesaler

Department
store
Furniturestore

to feedback from our customers throughout the Group.

Based on the idea of “Social contribution through com-

The ability to turn ahuman touch into value

Medicalinstitutions

businesses, and all users of our products and services.
and requests since our establishment, we have been able toParamount Bed Holdings Co., Ltd.

the industry in the medical and nursing care fields and expand our business into the health promotion domain.

with beds as the mainstay, by proposing high-dimen-

Customer Base12emphasizes integrity with the idea of contributing to society through our business. With our strengths as pillars, we will lead

We have established a one-stop system to provide prod-

The customer base of our Group includes medical institutions

Strength

beds as the mainstay, (2) strong relationships of trust with customers built over the years, and (3) a corporate culture thatucts and services necessary for healthcare environments,

A system to provide one-stop
solutions for healthcare environments,
with beds as the mainstay

Strength

The main strengths of our Group are (1) a one-stop system to provide solutions necessary for healthcare environments, withpany business,” each and every one of our employees

The Paramount Bed Group Code of Corporate Conduct

are working with a sense of mission and pride in support-

All of us in the Group are aware of our social mission as a company involved in medical and welfare services and our responsibility as a member of society, and act
with integrity in accordance with the following principles.

ing the medical, nursing, and healthcare fields. We are

1:Paramount Bed Group contributes to the enhancement of medical care, clinical nursing, and nursing care environments by providing products and services thatsatisfy customers through their safety and high quality.

thoroughly committed to a bottom-up approach to the
management, learning from the voices of our customers,
and conduct business activities with a value on contact

2: Paramount Bed Group understands and observes the laws and regulations relevant to its business activities and the rules of a fair society.
3: Paramount Bed Group appropriately manages corporate information and provides timely and appropriate information disclosures in order to build public
appreciation and confidence in the Paramount Bed Group.
4: Paramount Bed Group is committed to the preservation of the global environment and conducts environmentally conscious business activities.

with our customers, such as direct sales to medical and

5: Paramount Bed Group respects human rights and rejects discrimination of any kind, whether on grounds of race, nationality, gender, age, body, or any other grounds.

nursing care facilities.

6: Paramount Bed Group respects countries’ and regions’ cultures and customs and contributes to the development and furtherance of society.
7: The top management of the Paramount Bed Group conducts itself in an exemplary manner in conformity with this code of conduct. In the event of a breach of thiscode, the top management of the Paramount Bed Group at its responsibility takes measures to resolve the breach, identify the cause, and prevent recurrence.

Paramount Bed Holdings Co., Ltd. Integrated Report 2022

13

Value Creation Story

3. Business Model

The strength of our business and management base, backed by cutting-edge technology and a human touch, leads to acycle of value creation: “listening to the voice of customers

customerbase strengthened through the process of meeting expectations with the best products and services = listening to the voice

We will build a strong customer base by providing nursing careenvironment and the best products and services to meet needs ofcustomers in the medical, nursing care, and health promotion domains.

of customers” and create the best products and services for our customers.

Meet Expectations with theBest Products and Services

Propose Optimal Healthcare Environments
With planning and marketing skills,
cutting-edge technology,
and proposal/sales skills that
respond closely to customers,
we propose solutions necessary for
healthcare environments.

proposing the optimal healthcare environment

Strength 1

One-stop solution system

Proposal skills
Sales skills
Cutting-edge
technology

SupplysystemMaintenanceand quality control

We provide the best products
and services at a one-stop withproduction and logistics systems,
and after-sales service thatcan supply products in timely
and appropriate manners.

After-sales
service

Planning andmarketing skills

We Create Comfortable
Healthcare Environments
through Cutting-edge
Technology with a
Human Touch

We discuss and act with themindset of “Providing products
and services that are truly usefulfor front-line workers and users.”

Listen to the Voice of Customers

14

Paramount Bed Holdings Co., Ltd.

Integrated Report 2022

Willingness to contribute to society
Human resources who turn“a human touch” into value
Strength 3

The ability to turna human touch into value

Strength 2

Customer baseWe earn further trust by
responding sincerely to customer
requests and issues.

Strengthen Customer BaseParamount Bed Holdings Co., Ltd. Integrated Report 2022

15

Value Creation Story

4. Value Creation Process

Our Group creates comfortable healthcare environments through a business model that takes full advantage of internal andexternal capabilities, and that is based on its strengths in one-stop solutions and the ability to turn a human touch into value.
We build a virtuous cycle of value creation by building strong relationships of trust with our customers through the pursuit

We provide comfortable healthcare environments through our medical,
nursing care, and health-related business activities to build a virtuous
cycle of value creation.

of the best products and services, and by investing the capital we gain as a result. The economic value of our Group is
closely related to social value. In other words, we believe that our business expansion itself will contribute to society. Throughbusiness activities related to medical care, nursing care, and health promotion, we continue to provide comfortable lifestyles
for everyone as well as create social value.

Realization of comfortable healthcare environments as a partner of customers
Input

Business Model

OutputOutcomes

Internal and external capabilities
supporting our strengths

We create comfortable healthcare environments throughcutting-edge technology with a human touch

Pursuit of the best products
and services together
with our customers

Building strong relationshipsof trust with customers

Net sales

Social contribution through our businessby placing importance on a bottom-up
approach to management
Strength 1

One-stop solution system

Intellectual capital

Extensive knowledge linking the medical,
nursing, and sleep fields,
and knowledge of quality and safety

Manufacturing capital

Rapid realization of on-site feedback withthe world's top-level production capacity
Nationwide service network that
responds quickly to the needs

Proposal skills
Sales skills
Cutting-edge
technology

Strength 3

Financial capital
Strong financial base

16

Paramount Bed Holdings Co., Ltd.

Integrated Report 2022

Businessvalue

Operating income
Operating income margin
EPS (Earnings Per Share) he ratio of recurringTrevenue business to
net sales in japan

 umber of units ofNmonitoring sensors sold
Bed sales umber of beds rentedNfor home care

Safe and comfortable sleep/healthcare environments

After-sales
serviceNursing
careWillingness to contribute to society
Human resources who turn“a human touch” into value

The ability to turna human touch into value

As a partner of medical
institutions, we work withmedical care professionals
to help patients return tosociety as quickly
as possible.

 umber of on-siteNservice contracts

Maintenanceand quality control

We Create Comfortable
Healthcare Environments
through Cutting-edge
Technology with a
Human Touch

Promotion of resource-recycling businesses
Contribution to a low-carbon society

Strong ties with stakeholders, including
information sharing and collaboration

Medicalcare

SupplysystemPlanning andmarketing skills

Natural capitalSocial capital

Non-financial Indicators

Financial indicators

Business domains

Human capital

As a partner of healthcare
providers, we work withthose involved in nursing
care to achieve a highquality of life for everyone.

Socialvalue

Improvement of management (of hospitals and nursing carefacilities), improvement of the nursing care environment
Reduction of the burden on nurses and caregivers
Quick recovery of patients into societyHigh quality of life for care receivers
Lively life, healthy life extension, improved sleep

Strength 2

Customer base

Healthpromotion

As your partner, we
provide a sleep-centeredenvironment to realize
a vibrant lifestyle.

Environmental
value

Reduction of environmental
burden in business activities
Contribution to the realizationof a recycling society

Paramount Bed Holdings Co., Ltd. Integrated Report 2022

17

Value Creation Story

5. For Sustainable Growth

Our Group is promoting “Paramount Vision 2030,” which is to be realized by 2030, and the Medium-term Management
Plan based on the vision. We are also working on six materialities (priority issues) aimed at the sustainability of our GroupWe will transform our business model in response to changes in society and the times,
and as a partner of our customers, we will co-create truly valuable products andservices to contribute to a society where all people can enjoy lifelong health.

Demographic changes
 ging and long-life population in
A
Japan and around the world
 eclining population andDworker shortage
Growth in Asia

Changing values
Diversity
Work-life balance
Work style reforms

Smiles for everyone
from medical andnursing careto health field

Phase II
Medium-termManagement Plan
(April 2024 - March 2027)

Phase I
Medium-termManagement Plan

Opportunities
Increased demand for high-quality
medical and nursing care

(April 2020 – March 2024)Pursuitof health orientation andquality of life

Direction and focus points
for Phase I

Healthcare consumerism

1. Expansion of current
businesses
2. Fully engaging in Health
Promotion Business
3. Establishing thefoundations for change

 dvancement of digital technology
Aand promotion of data utilization

Risks
Risk of institutional changes
 arts and materials
Pprocurement risk

Risks in the supply chain

Paramount Vision 2030

(April 2027 – March 2030)

Opportunities and Risks


Risks
from the spread of new
infectious diseases

value as a partner of them and contributing to society in which all people can enjoy lifelong health.

Phase III
Medium-termManagement Plan

ESG and SDGs initiatives

 estriction of production functions
R
due to natural disasters

society, we will transform our business model in response to changes in society and the times, while co-creating customer

To be “indispensable” as a partner of our customers

Increase in business value

Business Environmentand society. In the business domains of medical care, nursing care, and health promotion, which are highly contributable toOurbusiness
model

Direction and focus points for Phase II

1. Expansion of recurring revenue businesses
2. Advancement of Health Promotion Business3. Leap forward in key areas of Asia
Enhance partnerships with other companies to expand andcreate businesses, and achieve the above

MaterialitiesFYE March, 2027 Targets
Net sales

120 billion yen

Operating income

17 billion yen

Operating income margin14.2 %The ratio of recurring revenue
business to net sales in Japan

45.0 %

1. Support for the establishment of a sustained medical
and nursing care system
2. Creation of an environment where everyone can live
healthily and happily
3. Pursuit of product safety
4. Promotion of employee health, diversity
and work style reform
5. Environmentally conscious business activities
6. Ensuring compliance

Enhancement of social and environmental value
18

Paramount Bed Holdings Co., Ltd.

Integrated Report 2022

Paramount Bed Holdings Co., Ltd. Integrated Report 2022

19Medium-term Management Plan

Progress in “Paramount Vision 2030” Phase I

Direction and focus points of the Medium-term Management Plan

We exceeded Phase I performance targets in the fiscal year ended March 2022.
We continue to steadily implement priority measures and promote initiatives
with an eye toward Phase II.

Phase I
Medium-term Management Plan
(April 2020 – March 2024)

In April 2020, our Group announced “Paramount Vision

initiatives for ESG, other environmental issues, social con-2030,” the vision for the next 10 years, toward the year

tribution, and the human resource base more than ever.

2030. Based on this vision, we have formulated a Medium-

Since the targets for Phase I were exceeded twoterm Management Plan with Phase I covering the period

years earlier, in the fiscal year ended March 31, 2022, wefrom the fiscal year ended March 31, 2021 to the fiscal year

announced, in May of the same year, the direction andending March 31, 2024. The priority measures of Phase I

performance targets for focused activities in Phase II (final

include “Expansion of current businesses,” Fully engaging

year: fiscal year ending March 31, 2027), looking ahead toin Health Promotion Business,” and “Establishing the foun-

the future, while keeping the original direction and priority

dations for change.” We have also positioned this period

measures themselves.

as a period of strategic investment for future medium- andWe will steadily implement the priority measures oflong-term growth and will increase investment in systems,

Phase I and promote initiatives with an eye toward the

new businesses, and facilities, as well as strengthening

direction of Phase II.

1. Expansion of current businesses
2. Fully engaging in Health Promotion Business
3. Establishing the foundations for change

Medium- to long-term investment phase
anticipating 10 years of growth

Phase II
Medium-term Management Plan
(April 2024 – March 2027)

1. Expansion of recurring revenue businesses
Accelerate expansion of current recurring revenue businesses
Assistive products rental wholesale business (Nursing Care)
On-site hospital services (Medical Care)
Hospital packaged rentals (Medical Care) evelop new recurring revenue business menu utilizingDsensing technology, AI, IoT, etc.

Increase the ratio ofrecurring revenue businessto net sales in Japanto 45 %

2. Advancement of Health Promotion BusinessExpansion of sleep improvement products

Performance and Targets

120 billion yen in net sales and 17 billion yen in operating income in the final year of Phase II
Phase IINet sales(Billions of yen)

Operating income(Billions of yen)Phase I

120

20

90

15

CAGR
6.6%

60

5

over 5 billion yen

3. Leap forward in key areas of Asia
No.1 share of medical beds in the countries of operations
Increase production capacity to support increase in numberof beds soldIncrease overseas net sales

to 15 billion yen

Accelerate speed of expansion of each focal point utilizing partnerships and CVC

02020/3
Net sales

2021/3

82.3
9.9
12.0%

Operating income
Operating income margin
The ratio of recurring revenue
business to net sales in Japan

87.1
11.5
13.3%

33.8%

34.6%

Net Sales by Business Segment: Results and Targets

2022/32023/3
Forecasts

90.3
12.3
13.7%
36.0%

2027/3
Targets

94.0
12.5
13.3%

120
17
14.2%

37.6%

45.0%

2022/3Results

2027/3
Targets

34.2

49.6

52.3

62.9

vs. 2022/3
Results+45%+20%

Health promotion
business

2.1

5.5

+157%

Others

1.6

2.0

+20%

Paramount Bed Holdings Co., Ltd.

Integrated Report 2022

Direction and Focus Points for Phase II
The direction and focus points of Phase II, which ends inending March 31, 2027. In the “Advancement of Healththe fiscal year ending March 31, 2027, include “Accelerate

Promotion Business,” we will develop products and ser-expansion of recurring revenue businesses,” “Advancement

vices with functions that make sleep more comfortable inof Health Promotion Business,” and “Leap forward in key

the expanding sleep market, and expand businesses thatareas of Asia.” The current recurring revenue business incontribute to society by extending healthy life expectancy(Billions of yen)

our Group includes packaged rentals centered on medical

through improved sleep to achieve the net sales of 5 bil-vs. 2022/3
Results

equipment and on-site services for medical facilities, aslion yen in the health promotion business in the fiscal year

Consolidated Overseas Net Sales: Results and Targets(Billions of yen)

20

Increase Health Promotion
Business net sales to

100

Nursing carebusiness

Expand users by partnering with other companies

Aim for CAGR 10% in sales

30

Medical carebusiness roducts and services contributing to extendingP
healthy life expectancy

2022/3Results
Asia
Indonesia
China
Other Asian countries
Outside of Asia
Total
Overseas sales ratio

7.9
2.7
2.8
2.3
0.8
8.8
9.8%

2027/3
Targets

13.5
4.9
4.6
4.0
1.5
15.0

+70%
+77%
+64%
+71%
+69%
+70%

well as rental wholesale business for home care. In theending March 2027. In the “Leap forward in key areas ofcoming years, we will aim to further develop IoT, such

Asia” we will focus on China, Indonesia, and India, whereas monitoring sensors, to develop an ongoing businessthe number of hospital beds is expected to increase andthat is not a sellout, but staying close to our customers.

where we have our locations and where the population

With this initiative, we will expand stock-type businesses,

is large, and expand our business in these countries to

12.5%

–

such as increasing the ratio of recurring revenue model

be the top hospital bed manufacturer in Asia. We aim toin Japan from current 36% to 45% in the fiscal year

achieve overseas net sales of 15 billion yen.

Paramount Bed Holdings Co., Ltd. Integrated Report 2022

21

Message from the CFO

We promote the establishment ofa foundation to constantly
take on challenges to realize
our long-term vision.
Yosuke Kimura
Director and CFO

Cash Distribution Plan
Cumulative total for
FY 2022–2026
Cash in2014/3

2015/3

2016/32017/3

2018/3

2019/32020/32021/32022/32023/3
forecast

(yen)

25

30

35

45

45

50

50

51.5

55

57

Shareholder
returnDividends onequity ratio(DOE)

1.9

2.1

2.4

2.9

2.7

2.8

2.7

2.7

2.7

—

Corporation
tax

Payout ratio (%)

20.8

24.6

31.6

28.1

30.3

44.7

42.3

34.8

35.2

37.7

0

4.06

3.28

3.33

0

0

4.38

0

0

—

Cash out
From 20 billion yen

From 20 billion yen

EBITDA

Growth investment
Capitalinvestment

From 115 billion yen

Shareholder return

From 15 billion yen

Annual dividend*(%)

Share repurchase(Billions of yen)

Annual dividend*(yen)

Payout ratio
(%)

60
50
40

Record high for fiscal year
ended March 31, 2022

parts, with the cooperation of our suppliers.
In the medical care business, we will accelerate overseas

Appropriation of
cash on hand

From 10 billion yen

From 70 billion yen

30
20
10

30

25
20.8

24.6

2014/3

2015/3

45

28.1

30.3

50

51.5

55

57

100
80

35
31.6

120

44.7

42.3

34.8

35.2

37.7

60
40
20

0

0
2016/3

Annual dividend

2017/3

2018/3

2019/3

Payout ratio

2020/32021/32022/32023/3

forecast

The fiscal year ended March 31, 2022 was a year of strong

sales, especially in Asia, and at the same time, in Japan, we

performance, with net sales, operating income, ordinary

will strengthen the ongoing provision of recurring services

income, and net income attributable to owners of theso that we can sustain our existing relationships with custom-

parent all reaching record highs, despite the impact of theers over the long term. In the nursing care business, we will

COVID-19 infectious disease and the semiconductor short-continue to work on market penetration of “Nemuri-SCAN.”

age. On the sales front, sales of the mainstay “Rakusho

In order to further penetrate the market, we consider it isWith regard to our human resource base, the skills

investment and the establishment of a Corporate Venture

Plus series” of nursing care beds for home care remains

important to increase the satisfaction of facilities that haverequired will change as we anticipate an increase in the

Capital (CVC). Through investment in the assets related tosolid. The product is highly appreciated for its improved

introduced the system. We will continue to develop bestdevelopment of software services in the future. We willrecurring revenue business, we intend to expand our stock-convenience for both users and rental companies by pro-practices horizontally by ensuring that our products arebuild an education system to enable employees to acquire

type business and shift to a more stable business portfolio.

viding a function that links the bed with the smartphone

being used, and at the same time, we will work toward morehigher IT skills than ever before.

In the capital investment, in addition to the aforementioned

app, and for its effectiveness in preventing the spread ofeffective nursing care and monitoring using the sensors.

The renewed core system is scheduled to start opera-

investment in core system, we plan to expand our factory

infection during COVID-19 disaster with a function to callIn the health promotion business, we will work to increasetion in May 2023. As we are considering strengthening

in India and replace aging factory facilities. As for CVC, weup the smartphones of family members and nursing careawareness of our main brands, “INTIME” and “Active

our overseas expansion, a system that was not unified

would like to accelerate our business development withstaff. In addition, the sensor system that enables remote

Sleep,” through various advertising media and social media.

across domestic and overseas locations was a challenge

the help of venture companies to provide services with amonitoring from nursing care facilities continued to be

in terms of decision-making and operational efficiency.

sense of speed. We will work together with various venture

well-received. We believe that demand for monitoring

Concrete roadmap for the realization of“Paramount Vision 2030”

By unifying platforms, we aim to accelerate managementcompanies to expand business collaborations in the fields

decision-making and reform employee work styles. Inof medical and nursing care, and health promotion.

addition, we will promote the digitization of all businessWe have introduced an indicator called the dividend

being able to remotely watch over people with sensors

As explained in the “Medium-term Management Plan”

operations, shorten the time required for conventionalon equity ratio (DOE) which started in 2020, when we for-and of improving the working environment.

(pages 20-21), we have already achieved the performance

operations through systemization utilizing DX, and create

mulated our new vision. We believe that it would be ideal

devices using sensor technology will continue to grow,both from the perspective of the safety that comes from

*The Company carried out a 1:2 stock split of common shares effective April 1, 2021.
The above figures show the annual dividend per share calculated based on the assumption that the split took
place on April 1, 2013.

of the Company.

ongoing relationships with customers, as well as in capitalWith regard to the health promotion business, wetargets for Phase I of the Vision, and have now announced

an environment so that employees can use their additional

if we could increase dividends in a stable manner so that

released the “INTIME3000” bed, which maintains a com-the targets and focus points for Phase II. Going forward,

free time to perform higher value-added operations.

shareholders would hold onto shares for the long term,

fortable posture with a reclining function with less pres-we will continue to implement the priority measures ofsure, a feature we have developed in our production of

Phase I, while keeping an eye on the direction of Phase

medical beds. Sales have remained solid while capturing

II. At the same time, we will also strengthen our efforts tothe stay-at-home demand.

address the SDGs and social contributions, as well as our

For the fiscal year ending March 31, 2023, we see
supply chain disruptions due to the lockdown in China

22

care fields, and we are taking various methods to secure

The assets related
to recurring
revenue business,
CVC
establishment,
etc.

45

50

targeting DOE 2.7% and a dividend payout ratio of 30%.

Aim to strengthen ties with customers
and shift to a stock-type businessWe would also like to consider flexible additional returns
from time to time, taking into account market conditions
and other factors.

investments in developing the human resource base andIn Phase II of the Mid-term Management Plan, we dis-

Corporate growth always requires taking on challenges.

renewing our core system.

closed our cash distribution plan (see above figures). We

As the person in charge of finance, I will always work closely

and Russia's invasion of Ukraine, and we are considering

We plan to continue our mangrove planting activities

plan to allocate cash to growth investments and share-with the Company to support taking on those challenges.

that the impact on our own factories and the supply ofin Indonesia, which began in October 2021. In addition toholder returns for the five years through to the fiscal year

Sometimes I need to apply the brakes, and take great

semiconductors and components will continue to becontribution to the SDGs through our business activities,

ending March 31, 2027.

responsibility to prevent fraud as CFO. I will monitor andsevere and will closely monitor them. We are proud that

we will continue to consider the environment and promote

In the growth investments, we will invest in the assets

our products are indispensable to the medical and nursing

approaches in a manner that will firmly lead to the growth

related to recurring revenue business to strengthen

Paramount Bed Holdings Co., Ltd.

Integrated Report 2022

control risks so that I can appropriately support prompt
decision making.

Paramount Bed Holdings Co., Ltd. Integrated Report 2022

23

Strategy by Business
The Group started out as a specialized manufacturer of hospital beds and has developed a variety of products andservices while expanding its business domain into the fields of facilities for elderly care and home care in the aging
population. In recent years, we have entered the health promotion business, focusing on proposing comfortable sleep
environments for healthy people. We are also active in promoting overseas business.

Summary and Forecast

Business Domains
Through products and services for medical institutions,
we support patient care and hospital operations.

Medicalcare

We contribute to the improvement of the medical environment by
providing products and services to a wide range of medical facilities
in and outside of Japan, including general hospital wards, highly
acute care facilities such as emergency and critical care centers andICUs, perinatal and neonatal care units, and recovery-phase rehabilitation facilities. In addition, we help create an environment where
health care professionals can concentrate on their professional
work by providing various services such as maintenance of beds
and other medical equipment on their behalf.

Fiscal year ended
March 31, 2022

Recurring revenue business expanded

Net Sales Results and Forecast(Millions of yen) ore medical institutions in Japan saw improved revenues.
•M

Rental and resident services for hospitals expanded.
Overseas sales increased in total despite the rebound from
special demand.

Forecast for the fiscal year
ending March 31, 2023

Sales in large overseas market are
expanding• In Japan, the sales of recurring revenue business are to
expand even though the bed sales are decreasing.

Japan

34,445
6,892

30,000Nursingcare

In addition to manufacturing and selling beds, mattresses, andtransfer equipment for use in special nursing homes, extended carefacilities, private nursing homes, and other facilities for eldely care,
as well as for use at home, we are also engaged in the businessof renting assistive products to assistive products rental service
providers (rental wholesale business). We will further expand our
products and services to contribute to user’s relief and safety, toreduce the burden on caregivers, and to improve the operational
efficiency of assistive products rental service providers.

With products and services that help people get a bettersleep, we support healthier and more personalized lifestyles.

Healthpromotion

24

We provide products such as electric beds, mattresses, pillows, andvarious other services for healthy people to improve their sleep athome so that they can live even healthier lives. Our products and services will further cover a wide range of healthcare fields by leveraging
the knowledge we have accumulated over the years in the medical
and nursing care fields and the research results of the “ParamountBed Sleep Research Institute,” a specialized research institute.

Paramount Bed Holdings Co., Ltd.

Integrated Report 2022

35,946
6,607

33,444

34,23034,469

7,675

7,795

8,324

25,76926,435

26,1452021/32022/320,00027,55329,33910,000 verseas, the sales are growing mainly in large markets•Osuch as Indonesia, China, and India.

0
2019/3Through sales and rentals of a wide range of nursing careproducts, we contribute to the improvement of thenursing care environment for users and the businessefficiency of nursing care providers.

Overseas

40,000Fiscal year ended
March 31, 2022

Sales and rentals continue to be favorable• T he effects of new products of mainstay models for home care

were kept.
• R ental wholesale business also remained strong.
 verseas, a large project for nursing care facilities in Singapore•O
contributed to the sales increase.
Forecast for the fiscal year
ending March 31, 2023

Sales for both care facilities and homecare are expanding• R ental wholesale business remains strong.
 ew products launched in March 2022 is making a full-year•N
contribution to the home care business.
 e focus on market penetration of “Nemuri SCAN”•W
for the care facilities.

Fiscal year ended
March 31, 2022

Up 35% in real terms• T he new product “INTIME3000” launched in September

2021 contributed to the sales.
 e strengthened promotion through TV, radio, social media, and•Wvarious events.
Forecast for the fiscal year
ending March 31, 2023

Up 26% YoY• “ INTIME3000” is contributing to the sales throughout the year.
We will continue to strengthen its promotion.
• V arious events are to increase to enhance brand value.
 easures to improve user satisfaction, strengthen dealer•M
relationships, etc. are to be made.

(Millions of yen)Japan

2020/3

Overseas60,00050,00040,00044,596313

44,734542

44,282

44,191

2019/32020/350,482416

52,317
1,018

55,104976

50,06551,29854,1272021/32022/330,00020,0002023/3(Forecast)

10,0000(Millions of yen)Japan

2023/3(Forecast)

Overseas

3,000
2,500
2,000
1,500
1,000
500

1,047
0
1,047

1,231
0
1,231

1,584
0
1,584

2,141
0

2,141

2,700
0

2,700

0
2019/32020/32021/32022/32023/3(Forecast)Paramount Bed Holdings Co., Ltd. Integrated Report 2022

25

Medical Care BusinessAs a partner of medical institutions,
we aim to achieve sustainable growth
by working with medical care
professionals to help patients return
to society as quickly as possible.

Priority measures for the fiscal year ending March 31, 2023
(Millions of yen)

Expand sales in large
overseas markets
In Japan, sales of recurring revenue
business are to expand eventhough the sales and rental volume
decreases.
Overseas, growth is to becentered on large markets such as
Indonesia, China, and India.

2020/32021/32022/335,94633,444

Japan

29,339Overseas

6,607

Net sales

2023/3
Forecast

vs. previous
year

34,23034,469+1%

25,76926,435

26,145

– 0%

7,675

7,795

8,324

+7%

(Thousands of beds rounded to nearest thousand;comparison with previous year calculated based on actual numbers)

88

90

89

93

+4%

Japan

48

44

47

45

– 5%

Overseas

40

47

41

48

+15%

Number of beds sold

Main Products and Services
Products and Services
 anufacture, sale, and rental of various medical equipment, ceiling supply units, systems, and furniture used inM
medical facilities, with a focus on medical beds.
 epair work and after-sales maintenance including medical equipment manufactured by Paramount Bed andRother companies.
 upport services within medical facilities, including nursing assistant services, maintenance and management
Sof medical equipment, maintenance of beds with stationed services, and concierge services for V.I.P. as well as
patient satisfaction improvement support services.

Product image for intensive care unit

Business Model and Basic Strategy
Centered on the manufacture and sale of hospital beds,
which is our core business, we provide a broad lineup of
products and services with the functions necessary for each
medical field in and outside of Japan, including general
hospital wards, highly acute care facilities such as emergency and critical care centers and ICUs, perinatal, neonatal
and pediatric care units, and rehabilitation facilities.
We offer total solutions ranging from medical beds
that utilize sensing technology, mattresses with bedsore
prevention functions, and bed peripherals such as handrails,
to medical equipment, ceiling supply units, systems, andfurniture used in medical facilities.
The service side is mainly handled by Paratechno Co.,
Ltd. While most of the services were conventionally repair
and after-sales services for our products, the company now
also offers package rental services that contribute to hospital management, as well as services to undertake ancillary
operations so that medical staff can concentrate on theirprimary duties. For example, the company undertakes awide range of services such as serving meals to hospitalized
patients, managing and transporting medical equipment

26

Paramount Bed Holdings Co., Ltd.

Integrated Report 2022

and supplies, cleaning and making beds, and concierge
services for V.I.P. (contracted with 95 hospitals in Japan as ofMarch 31, 2022).
Many of these services are continuous service offerings(recurring revenue businesses). This business model isalso conductive to improving relationships with customers
and stabilizing earnings. We will continue to develop newrecurring revenue businesses that utilize sensing and AI/
IoT technologies to increase the ratio of recurring revenue
model in our sales.

“Metis PRO series” for medical facilities

Examples of products for neonatal and perinatal care services

Total proposal image of the entire private room

Maintenance operation image

Concierge service image

Paramount Bed Holdings Co., Ltd. Integrated Report 2022

27

Nursing Care BusinessAs a partner of healthcare
providers, we aim to achievesustainable growth by working
with those involved in nursing
care to realize a high qualityof life for everyone.

Priority measures for the fiscal year ending March 31, 2023
(Millions of yen)

Expand sales for both carefacilities and home careRentals remain strong.
New products launched in March2022 is making a full-year contribution to the home care business.
To focus on market penetrationof “Nemuri SCAN” forthe care facilities.

Net salesJapan

2020/32021/32022/344,73450,482

44,191
542

Overseas2023/3
Forecast

vs. previous
year

52,317

55,104+5%

50,06551,29854,127

+6%

416

1,018

976

– 4%

(Thousands of beds rounded to nearest thousand;comparison with previous year calculated based on actual numbers)

95

108

123

129

+5%

Japan

91

105

117

123

+5%

Overseas

4

3

6

6

+10%

Number of beds sold

*Number of beds sold includes sales to operating companies within the Group,

Main Products and Services
Products and Services
 anufacture, sale, and rental of various equipment, furniture, and systems used in facilities for elderly care, suchM
as beds for elderly care and the monitoring support system “Nemuri SCAN.”
Manufacture and sales of a wide range of assistive products used for care at home, including home care beds
and walking aids.
Rental wholesale business that supports the business operations of assistive products rental service providers.

Business Model and Basic Strategy
The nursing care business consists of two areas: nursing carefacilities and home care.
For nursing care facilities, we offer a total range of tools
and equipment necessary for the operation of facilities for
elderly care, from nursing care beds, care lifts, and bathingfacilities to furniture used in living rooms and dining rooms.
In recent years, our system that allows elderly people in carefacilities to be monitored remotely and in real time has been
well received. By placing the sheet-type body motion sensor“Nemuri SCAN” under the mattress, the system can measure
and check the user's sleep, awakening, rising, leaving thebed, and respiratory rate in real time. The system enables
safer monitoring with less burden, reducing the workload.
For the home care, we provide assistive products, such as
nursing care beds, mainly for use in home care, to companies that sell or rent them to users through sales and rental
wholesale. The product development and sales are handled
by Paramount Bed Co., Ltd. We strive to develop productsthat are not only safe and convenient for users, but also
reduce the burden and improve operational efficiency forrental service providers that handle them.

28

Paramount Bed Holdings Co., Ltd.

Integrated Report 2022

The rental wholesale business is handled by ParamountCare Service Co., Ltd. With 78 locations all over Japan (asof March 31, 2022), the company supports the business
operations of assistive products rental service providers
nationwide by providing delivery, collection, disinfection,
maintenance, and storage of assistive products under highquality control.

Non-wearable body motion sensor“Nemuri SCAN”
 y simply placing the sensor under the mattress, it detects
Bbody motion (tossing and turning, breathing, pulse, etc.) of theperson on the mattress, and measures sleep conditions, as well
as displays estimated heart rate and respiratory rate calculated
from body motion in real time.
It is effective in improving safety of elderly people in nursing
care facilities and reducing staff workload during nighttime
patrols and other operations.

“Nemuri SCAN”

It also contributes to the increase in applicants for staff of the
facilities and reduction of staff turnover.

“Rakusho Plus series”
New back raising mechanism that raises the back from the pelvis.
Two applications are available to improve usability.
Smartphones can be used as a remote control.
Notification from the bed can be received on your smartphone.
It is equipped with a self-inspection function for rental service
providers.

“Rakusho Plus series” bedRental Wholesale Business e support for business operations ofWrental service providers that provide
assistive products to home care users
under the Long-Term Care Insurance
System.

Storage
Shipping
Maintenance

Manufacturers ofassistive products

Disinfection

ReturnAssistive products
rental service providers

Users

Paramount Bed Holdings Co., Ltd. Integrated Report 2022

29

Health Promotion BusinessAs your partner, we aim toachieve sustainable growth byproviding a sleep-centeredenvironment to realize
a vibrant lifestyle.

Priority measures for the fiscal year ending March 31, 2023
(Millions of yen)

Up 26% YoY
“INTIME3000” contributes to thesales throughout the year.

Net salesJapan o continue to strengthen its
Tpromotion.
 o increase various events.
T
Implement measures to improveuser satisfaction, strengthen
relationships with retailers, etc.

Overseas

2020/32021/32022/3

1,231

1,584

1,231
0

2023/3
Forecast

vs. previous
year

2,141

2,700

+26%

1,584

2,141

2,700

+26%

0

0

0

0%

(Thousands of beds rounded to nearest thousand;comparison with previous year calculated based on actual numbers)

6

7

9

11

+23%

Japan

6

7

9

11

+23%

Overseas

0

0

0

0

0%

Number of beds sold

Main Products and Services

Deploy two brands that use know-how and technology cultivated in the medical and nursing carefields for the general healthy people roducts and services that help people get a better sleep, centered around an electric bed “Active Sleep BED”
P
that utilizes sleep sensors.
 INTIME,” a brand for a comfortable life“
Electric beds with a reclining function that supports getting up smoothly can also be used for nursing care
purposes when needed. We also offer a membership service that enriches their lives.

Products and Services

Active Sleep BED
 leep sensors and the dedicated smartphone app are linked toSprovide a more comfortable sleep.
Examples of on-board features: relaxing posture, 1 million firmness adjustments,
auto-sleep activation, daily sleep scoring, and snore measurement.

 romoting the development of services that extend healthy life expectancy through the use of proprietary bodyPmotion sensor technology.

Business Model and Basic Strategy
The health promotion business sells beds and bedclothes
for health-conscious people who do not need medical or
nursing care.
However, since our strength lies in the technology andknowledge we have cultivated in the medical and nursing
care fields, we are currently developing our business withtwo main brands, “INTIME” and “Active Sleep,” focusing on
beds with functions that apply such technologies.
The “INTIME” bed is designed to be used as a comfortable electric bed that can later be transformed into a nursing
care bed, when nursing care is needed, with a concept of“Electric bed, but later nursing bed.” We also offer a membership service “Club Paramount” that provides support to
INTIME bed owners for a variety of daily life problems.
The concept of “Active Sleep” is to provide health-conscious people with efficient sleep so that they can stay active
and energetic in both their daily and professional lives. The“Active Sleep BED” is the first electric bed in Japan to detect
the state of sleep and automatically move accordingly, using
our sensor technology. Based on the theory that lowered30

Paramount Bed Holdings Co., Ltd.

Integrated Report 2022

diaphragm makes breathing easier and leads to falling
asleep easily, we recommend a sleep posture in which theback is slightly raised. When the sensor detects that the user
is in a sound sleep, the bed slowly flattens to facilitate turning over. In order to prevent waking the user from a soundsleep by bed movement, the back section is lowered by one
degree per minute. Furthermore, the sensor determines
wake-up time and raises the back at just the right timing,allowing the user to wake up pleasantly. These movements
can be operated and set via a smartphone, which also scores
the quality of sleep.
We will continue to develop “Sleep tech” products that
use technology to solve sleep problems.

Usage image of “Active Sleep BED”

INTIME3000
Electric bed that can be “transformed” into a nursing care bed pursues comfort on the bed with high design quality andItfunctionality, and is equipped with a back-up mechanism
for a relaxing posture like sitting on a sofa.

Image of “INTIME3000” installation

Club Paramount lub Paramount is a membership service for individual customers who have purchased an INTIME series bed.
C
It provides a variety of support and services that only Paramount can offer, from comfortable sleep to daily lives.

Club Paramount website

https://club-paramount.jp(Japanese only)

Paramount Bed Holdings Co., Ltd. Integrated Report 2022

31

Overseas Expansion
We aim to expand our market shareoverseas by accurately grasping
the needs of each country and region.

Priority measures for the fiscal year ending March 31, 2023
Overseas Net Sales ocus on increasing market
F
share in large markets such as
India, China, and Indonesia(Millions of yen)(％)

10,000

10.5

8,000

 espond to growing demandRfor high-function beds

8,091
7,149

6,000
4,000

8,813

9,300
9.9

9.8

10.0
9.5

9.3

9.0

8.7

8.5

2,000

Features and Strengths
The full-fledged entry of our group into overseas markets
dates back to the establishment of our trading department
in 1968. Since then, we have focused on providing productsthat meet the needs of each country, while making efforts
to understand the market environment. We have delivered
our products to more than 110 countries. Currently, aiming
toward localization, we have locations in Southeast Asia,
including Indonesia, China, India, the Middle East, Central

and South America, and other countries. We have alsoestablished a regional HQ company Paramount Bed Asia
Pacific Pte. Ltd. in Singapore, and are focusing on the Asian
region as a promising market which may grow rapidly in the
future. We will promote business development tailored tothe market needs of each country and strive to penetrateand expand our brand.

Overseas Network
Paramount Bed(China) Co., Ltd.

8.0

0

Shanghai Representative Office

2020/32021/3

Overseas net sales

2022/32023/3

Forecast

Overseas sales ratio

Consolidated Overseas Net Sales by Region(Millions of yen)

2020/32021/32022/3

6,429

6,914

Indonesia

2,343

China
Other Asian countries

2023/3

Forecast

vs. previous year

7,923

8,564

+8%

3,057

2,772

3,220

+16%

2,157

2,199

2,803

2,952

+5%

1,928

1,656

2,346

2,391

+2%

Middle East

150

222

68

172

+153%

Central and South America

418

808

227

360

+59%

204

– 66%

Asia

152

Other
Total

7,149

147

8,091

595

8,813

9,300

+6%

PARAMOUNT BED
USA Corporation.
PARAMOUNT BED
Middle East OfficeParamount Bed Mexico
S.A. de C.V.

PARAMOUNT BED VIETNAM CO.,LTD.
PARAMOUNT BED VIETNAM TRADING CO.,LTD.
Paramount Bed do
Brasil Ltda.

PARAMOUNT BED
INDIA Pvt. Ltd.

PARAMOUNT BED
ASIA PACIFIC PTE.LTD.

PT. Paramount Bed Indonesia

Products for Overseas

Strategic modelfor overseas markets“PARAMOUNT BED A6”

Medical electric bed for India“Qualitas Nx series”

PARAMOUNT BED(THAILAND)CO.,LTD.

Overseas Group Companies

32

PT. Paramount Bed Indonesia (Indonesia)

PARAMOUNT BED VIETNAM CO., LTD. (Vietnam)

Paramount Bed (China) Co., Ltd. (China)

PARAMOUNT BED VIETNAM TRADING CO., LTD. (Vietnam)

PARAMOUNT BED (THAILAND) CO., LTD. (Thailand)

PARAMOUNT BED USA Corporation. (U.S.)

PARAMOUNT BED ASIA PACIFIC PTE. LTD. (Singapore)

Paramount Bed Mexico S.A. de C.V. (Mexico)

Paramount Bed India Pvt. Ltd. (India)

Paramount Bed do Brasil Ltda. (Brasil)Paramount Bed Holdings Co., Ltd.

Integrated Report 2022

Paramount Bed Holdings Co., Ltd. Integrated Report 2022

33

Source of Value Creation
The knowledge and human resources we have cultivated over the years
in the medical and nursing care fields give us a unique advantage.

The Group's strengths, such as one-stop solutions, unique corporate culture and value, and a solid customer base, lie
in our stable financial base (financial capital) and non-financial capital which includes human resources who focus on thesituation in which our products and services are used and contribute to society through the company business (human capital), broad knowledge of medical care, nursing care and sleep (intellectual capital) and the world's top-level production
capacity that allows on-site feedback to be realized promptly (manufacturing capital).

Source of Value Creation
In-house strengths
Human capital· Promote human resource development and internal andexternal collaboration

Social contribution through ourbusiness by placing importanceon a bottom-up approachto management

· Strengthen the organization by securing diverse
human resourcesIntellectual capital
Extensive knowledge linking the
medical, nursing, and sleep fields,
and knowledge of quality and safety

Manufacturing capital
Rapid realization of on-site
feedback with the world’s top-levelproduction capacity
Nationwide service network that
responds quickly to the needs

Natural capital
Promotion of
resource-recycling businesses
Contribution toa low-carbon society

· Foster organizational and corporate culture throughthorough awareness of legal complianceThree Strengths
External forces

Strong financial base1

One-stop solution
systemSocial capital

A system to provide one-stop
solutions for healthcare environments, with beds as the mainstay

Strong ties with stakeholders,
including information sharing
and collaboration
· Create innovation through a strong customer base, andresearch and development of sleep-related technologies
· Continue to work closely with customers after delivery, andaccumulate information on customer needs and problems
· B uild relationships of trust withcustomers by persistently addressing
any challenges
· Produce high-quality products in efficient and stable manners
· Enhance value-added by strengthening
the manufacturing system
· Further enhance and streamline service locations
· Maintenance system that provides clean, safe andreliable products

· Promote appropriate waste disposal and recycling using
the National Permit System that is certified by government
· Accumulate know-how for long and safe use of products
· Promote resource recycling initiatives andenergy-saving activities

· C ontribute to society by creating
value in collaboration with ourbusiness partners
· W ork on the industry and establish
a system to strive for product safety(Safety Promotion Council for Medicaland Home Care Bed)

· S trengthen information dissemination
through webinars, media management,
etc. as a leading company in the industry
· G ather information through a strong
network of medical and nursing care
professionals
· S upport education and training fornurses (Kimura Foundation for Nursing
Education)

Financial capitalStrength

· Equity-to-asset ratio 74.1%
· Stable financial base

· S hare issues from the customer’s
perspective by conducting customer
satisfaction surveys

Strength2Competitive advantages

Pursuing the bestproducts andservices together
with our customers

Customer baseStrong relationship of trustwith customers built over
the years

Strength3

The ability toturn human touch
into value
Social contribution throughour businessA corporate culture thatvalues integrity

34

Paramount Bed Holdings Co., Ltd.

Integrated Report 2022

Paramount Bed Holdings Co., Ltd. Integrated Report 2022

35

Source of Value Creation

Human CapitalPreferred personnel profile

Social contribution through our business by placing
importance on a bottom-up approach to management.

Personnel who can voluntarily take on new challenges, recognize theimportance of communication, and create the future of Paramount Bed Group.

Initiatives to strengthen the human resource base
Clear and shared vision

Toward strengthening the human resource base
Fosterempathy forthe vision

Introduction of succession plan
· Identify and train successors tosenior management

OfficerRenewal of personnel
evaluation system

Create arewardingexperienceand support
growthCreate acomfortable
work
environment

We have formulated Paramount Vision 2030 and shared itwith the entire group. As a measure to spread the vision,
employees are required to fill out a goal-setting sheet
at the beginning of each fiscal year to set annual activity
targets, and set their own visions based on goals of theirdivision or department made according to the mid-term
management plan.

Executive personnel development
Clear and shared vision

Enhancement of overall
employee development

Manager

Promotion of talent management· Visualize human resources by job type/individual capabilities

Talent management
practices

Instructor

Introduction of
succession plan

Staff

Promotion ofdiverse work styles· Place the right person in the right positionand link them to educational measures
Renewal of personnel evaluation system· Clarify expected roles/behaviors· Expand opportunities for employees toplay an active role according totheir characteristics

Creation of supportive environment for employees

Talent management practices

In order to foster awareness and culture throughout theworkplace for realization of a comfortable work environment, we have shared the results of the employee engagement survey with all employees, and initiated a change inawareness at each management level.

Promotion of diversity

We have created a list of human resource requirements(knowledge, skills, and competencies) for each business field
and job type, and are linking this list to the placement of theright person in the right position based on the abilities ofindividual employees and to educational measures to fill in
the gaps. We are also working to enhance our educational
system to support individual growth.

We aim to place the right person in the right position sothat diverse human resources can play an active role
regardless of their gender, age, nationality, or disability. We
as the entire company are working to realize environmental
improvements, such as restructuring the environment for
female workers to easily play an active role and supporting
the activities of senior employees.

· Promote organizational culture reform, Expected culture: “Thorough communication”
and “Encourage challenges”· Promote diverse work styles

Promotion of diversity

TOPICS· Create an environment where a diverse human resources, including womenand senior employees, can play an active role, and feel healthy and happy

Progress of measures to strengthen the human resource baseMake an action plan

Implement/Start-up

Apr. 2020

Apr. 2021

Formulation of vision,
mission, and values

Renewal of personnel
evaluation system

Detailed institutional design
Internal Consensus

Start of the new
system operation

Talentmanagement practices

Within-human Resources
Department Project
Human Resources by job typeStart of requirements
organization

Survey of individual
employees’ capabilities
Organization of human resource
requirements by job type
Education policy review

Promotion of diverse
work styles
Promotion of diversity

Paramount Bed Holdings Co., Ltd.

Apr. 2022

Apr. 2023

Project to create products utilizing women’s perspectives

In Paramount Bed Co., Ltd., a group of female technical staff started the “Tsubaki Project (Camellia japonica),” to create
products from a woman’s perspectives. The members of the project unanimously decided the name of Tsubaki because it
symbolizes “Femininity” and “Fashionable”, which fit the activity concept of the project. They are engaged in female-specific marketing, and product planning and proposal for mainly obstetrics, gynecology, and pediatrics. They involve female
sales representatives and other non-project members in their on-site hearings to uncover detailed needs and opinions.
The nursing chair “Hug Hug,” a product produced by Tsubaki Project, won the “Kids Design Council Chairman’s Award,
Incentive Award of the 11th Kids Design Awards” and the “Planning Award of the 5th Cute Sensibility Design Award.”

Internal andExternal
Communications

Clear and shared vision

Introduction of
succession plan

36

Creation of a comfortable work environment

To PDCA cycle

Placement of right personin the right position
Start of educational
measures operation

Selection of key positions
Definition of human resource requirements
for each position

Within-Human Resources Department Project
Junior staff project, etc.

Integrated Report 2022

To PDCA cycle

Candidate search
Study of training
measures

Start ofoperation

To
PDCA
cycle

Institutional
review study

Start ofoperation

To
PDCA
cycle

Nursing chair produced by the project and “Tsubaki Project” members

Paramount Bed Holdings Co., Ltd. Integrated Report 2022

37

Source of Value Creation

Manufacturing
CapitalRapid realization of on-site feedback with the world’s
top-level production capacity
Nationwide service network that responds quickly to the needs

Manufacturing Capital (manufacturer)
Features

Manufacturing capital (rental wholesale)Initiatives to strengthen manufacturing capital(1) Initiatives to “strengthen” manufacturing capital· Enhance value-added by strengthening the
manufacturing system

· Established integrated
production system

· Strengthen the optimal global production site systemthrough domestic and international collaboration

· Provide responsible
products

· Optimal global
production site system(2) Initiatives to “protect and support” manufacturing capital· Strengthen resilience of production and delivery
through Business Continuity Plan (BCP)

A production system that combines the know-how accumulated since the company’s founding
with state-of-the-art production system
Paramount Bed’s factories efficiently and stably produce high-quality products
under thorough quality control. The Paramount’s Chiba Factory has introduced
the “synchronized production system” mainly for bed lines, building an integrated
production system from raw materials to finished beds. This method patterns
several beds on a cycle, sets the components regularly on conveyor hangers,
and continuously conveys them between processes from welding to painting andassembly without interruption. This shortens manufacturing lead time, minimizes
in-process inventory, and reduces electricity consumption and waste generated.

· N ationwide store network

· M aintenance system that provides clean,safe and reliable products

· Improve and streamline service locations

Storage

MaintenanceDisinfection

Assistive products
rental service providers· Pursue safety and relief through higher quality
maintenance, disinfection, and cleaning systems

Returned assistive products are first sprayed with an ethanol-based formulation in
the transport vehicle. After that, many pieces of assistive products such as beds,
wheelchairs, and walkers are washed with water using a high-pressure cleaner.
Every little bit of dust and dirt is removed. After cleaning, a slightly acidic environmentally friendly electrolytic solution that is also used to sterilize foodstuffs ispoured over the products. Some products are sterilized with ozone disinfection.
Disinfected products are periodically sampled and inspected for bacteria to verify
the effectiveness of the disinfection process.

Provision of luxury wood products with good quality of natural wood

Integrated Report 2022

ReturnQuality management of Paramount Care Service to deliver clean and reliable products

TOPICSParamount Bed Holdings Co., Ltd.

(2) Initiatives to “protect and support” manufacturing
capital (rental wholesalers)

Shipping

Disinfection and cleaning with the utmost care for sanitation

We conduct thorough in-process inspections in each department and rigorous
inspections of finished products with tens of check items, such as detailed tactile and visual inspections for handrails that patients touch by hand, and foreign
object inspections using metal detectors in mattress manufacturing. In addition,
Paramount Bed’s headquarters and factories are certified with ISO 9001 (Quality
Management System) and ISO 13485 (Medical Devices - Quality Management
System), which are international standards for managing quality assurance systems,
and provide products that comply with each certification.

38(1) Initiatives to “strengthen” manufacturing capital(rental wholesale)

Paramount Care Service Co., Ltd. which operates an assistive products rental wholesale business, is striving to build a system that can deliver clean and well-maintained
assistive products immediately when needed, under thorough quality management
to ensure that users can use the products safely and with relief.

Commitment to Quality

The manufacture of wooden products such as wooden boards for beds is mainly
handled by Paramount Bed Group’s Sadashige Special Plywood Co., Ltd. Since its
founding in 1954, the company has been involved in the processing and wholesalingof furniture and construction materials, as well as the manufacture and sales of housing
equipment, starting with wood veneer used for high-end wedding furniture in Fuchu(Fuchu City, Hiroshima). They pursue high design performance, processing technology,
and careful craftsmanship that take full advantage of the quality of natural wood toprovide high-quality and high-end wooden products.

Initiatives to strengthen manufacturing capital

Features[ Corporate Outline ]· Corporate name: Sadashige Special
Plywood Co., Ltd.
· Established: 1960 (Founded: 1954)· Head office: Fuchu City, Hiroshima· Capital: 30 million yen

Obtained the certification of“Safety Maintenance Authorization” for the first time in JapanIn May 2022, Paramount Care Service was certified by the Japan Quality Assurance Organization (JQA), a JIS Mark certifying body, as being in compliance with the requirements of the “JIS Y2001” standards for the management of maintenanceprocesses for rental assistive products at all 23 maintenance locations in Japan. JIS Y2001 is a set of standards thatwere promulgated in March of the same year as guidelines to ensure that assistive products distributed through various
rental systems are properly maintained before being rented out, in order to prevent accidents due to poor maintenance.
The certification and registration system is called the “Safety Maintenance Authorization” as a proof to support the safe
distribution of rental assistive products.

Paramount Bed Holdings Co., Ltd. Integrated Report 2022

39

Source of Value Creation

Social Capital

Strong ties with stakeholders,
including information sharing and collaboration

Disclose information in timely
and appropriate manners
Strive to enhance corporate value

Industrialorganizations

Pursue the world’s
highest quality andcreate value together

Provide a comfortable
healthcare environment torealize a vibrant life

Shareholders/investors

Fulfill our responsibilities as aleading company in the industry

Users

Suppliers,
partners

Conduct environmentallyfriendly business activities withthe aim of preserving
the global environment

Customers

Globalenvironment

Local
community
Employees andtheir families

Work closely withcustomers to address
issues and create
value together

Create a society where
everyone in the world
can live healthy

Maintain safety and health
Encourage challenges

TOPICS

Launched of a joint course using a monitoring support system
in caregiver training program provided by a vocational school.

Signtle Inc. is a joint venture established in November
2018 by Paramount Bed Co., Ltd. and Professor Takao
Someya, Dean of the Graduate School of Engineering at
the University of Tokyo. The company aims to develop
devices and services that utilize the technology ofProfessor Someya, a leading expert in skin sensor
technology, to contribute to operational support in the
medical and nursing care fields.
In December 2021, Signtle conducted a demonstration
experiment using its health management system in Ioujima,
Nagasaki. This health management system uses skinsensors developed by the company to measure vital signs
24 hours a day, and centralized monitoring by medical personnel and city staff to maintain the health of community
people gathering in evacuation centers during disasters
and to prevent disaster-related deaths. Based on the findings obtained through this demonstration experiment, thecompany will work toward social implementation.

[ Corporate Outline ][ Corporate Outline ]· Corporate name: NTT PARAVITA Co., Ltd. (NTT PARAVITA)· Established: July 2021
· Head office: Osaka, Japan· Capital: 495 million yen· Shareholders: NTT West, Paramount Bed· Corporate name: Signtle Inc.
· Established: November 2018
· Head office: Bunkyo-ku, Tokyo· Capital: 10 million yen· Shareholders: Takao Someya, Paramount Bed and others

Promotion of assistive products recycling in collaboration with Frontier Corp.
Paramount Bed Co., Ltd., in partnership with Frontier
Corporation, launched an initiative in November 2021
to collect, sort, and disassemble used assistive products,
such as nursing care beds made by Paramount Bed andowned by Frontier, to promote recycling them into metaland fuel.
In April 2012, Paramount Bed became a certified company under the National Permit System* (Certification
No. 217) and has been promoting the recycling of its
products. Under this initiative, the company collects used
Paramount Bed products at Frontier’s Chiba MaintenanceCenter and recycles 99% of them to reduce waste andensure proper disposal. While gradually expanding theareas covered by the program, the company will improverecycling and promote environmentally friendly activities.

*National Permit System: This is a special exception system of Ministry of the Environment that does not require a license from each local government, which is the basisof the legal system for waste management, and is intended to ensure the reduction ofwaste and other appropriate treatment of waste by allowing those who are engaged in
the manufacture, process, and sale of products (manufacturers), and whose products
have become waste, to handle such waste over a wide area.

(1)
Request(2)
Collection(5)Completion
report(3)
Separation anddisassembly(5)Completion report

Disposal contractors

Integrated Report 2022

On July 27, 2021, Nippon Telegraph and Telephone West
Corporation (NTT West) and Paramount Bed Co., Ltd.
have jointly established a new company, “NTT PARAVITA
Co., Ltd.” to provide online healthcare services using
sleep data.
The company utilizes NTT West’s knowledge in collecting and analyzing the vital data of the elderly using
IoT devices to visualize sleep, and Paramount Bed’s
sheet-type sensor technology that enables real-timemonitoring of sleep/wake states, respiratory and heart
rate to provide data that contributes to the detection of
unwellness, which supports the maintenance of healthy
and fulfilling lifestyles of the users.
In November of the same year, the company started
a demonstration project in Sakai City, Osaka, to monitor
elderly people living alone by using visualization of their
sleep rhythms, in collaboration with Graduate School of
Medicine, Osaka University.

Collection point

Paramount Bed Holdings Co., Ltd.

Signtle Inc. conducted a demonstration
experiment using a health management
system with the University of Tokyo.

Paramount Bed

40

Established a new company withNTT West to provide online
healthcare services

Frontier

In February 2022, Paramount Bed Co., Ltd. and Sanko Gakuen jointly launcheda course to think care based on sleep analysis using Paramount Bed’s “Nemuri
SCAN” monitoring support system in the required course “Care Support
Technology (Sleep)” at seven welfare vocational schools nationwide operated
by Sanko Gakuen. This course is designed to enable students to learn throughpractical training how they can intervene in the sleep care of the elderly by
actually using the monitoring support system. By learning all from how to use
nursing care robots to how to intervene in sleep care in an integrated manner,
the course aims to develop human resources who can work and contribute
immediately to the nursing care field.

TOPICS

Metal raw materials
Car andappliance parts(4)
Recycling

Boiler fuelRPF (solid fuel madefrom plastics, etc.)
Roadbed materials
Aggregates forasphalt, etc.
Landfill (partial)
Unrecycled materials
are landfilled after
heat recovery.

Recycling flow

Paramount Bed Holdings Co., Ltd. Integrated Report 2022

41

Sustainability Initiatives
To realize sustainability, we will work on materiality organizedfrom the perspective of ESG and SDGs.

The Paramount Bed Group has been engaged in various activities to realize a sustainable society and earn the trust of
the public. In line with the formulation of the “Paramount Vision 2030” in 2020, we have reorganized our activities into six
materialities (priority issues) from the perspective of ESG and SDGs. We have incorporated measures for the materiality
into our long-term vision and mid-term management plan to promote them.

Materialities

12

Creation of an environment where everyone
can live healthily and happily

nursing care and work style reform• Support for education of nurses and nursing care personnel• Relief supply system for emergencies• Proposal of sleep environments with scientific basis• Support for the creation of a comfortable work environment
for nurses and nursing care personnel• Support for the improvement of performance through theproposal of better sleep for athletes• Support the development of the next generation of leaders

3

Pursuit of product safety

4

Promotion of employee health, diversity
and work style reform• Employee health and labor safety initiatives• Promotion of diversity• Promotion of work style reforms

6

Paramount Bed Holdings Co., Ltd.

Environmentally conscious business activities

Ensuring complianceIntegrated Report 2022

SDGs Targets• Support for improvement of efficiency of medical and• Establishment of system for product safety• Enlightenment of safe usage• Active involvement in industry group initiatives

542

Support for the establishment of a sustained
medical and nursing care system

Priority items• Reduction of environmental impact in production processes• Reduction of environmental impact through the entire
product life cycle• Contribution to the realization of a recycling society• Corporate ethics initiatives• Ensuring fair trade• Promotion of highly transparent governanceParamount Bed Holdings Co., Ltd. Integrated Report 2022

43

Materiality

Environmental Initiatives

Environmentally conscious
business activities

The Paramount Bed Group aims to reduce the environmental burden from the corporate activities andContribution to the realization of a recycling society

throughout the product lifecycle in order to build a sustainable society in harmony with the earth. In addition,

we raise “Environmentally conscious business activities” as one of the priority issues (materialities) for promoting ESG management.

Examples of initiatives

Reduction of environmental
impact throughout the entire
product life cycle

Contribution to therealization of arecycling society

Examples of initiatives• Review raw materials, reuse

and recycling• Procure materials with low
environmental burden(in cooperation with suppliers)• Promote energy-saving activities
at production sites

Examples of initiatives• Promote reuse and recycling• Promote appropriate waste

disposal and recycling using the
National Permit System that iscertified by government(Certification No. 217)

TOPICS“Sleep Points,” a social contribution point program
linked to tree-planting activities

Priority items
Reduction of environmental
impact inproduction processes5• Promote “Sleep Points,” a social

contribution point program linked
to tree-planting activities• Employ biomass plastic for
packing bags for rental equipment• Promote the use ofrenewable energy• Promote energy-saving
activities at each business site

The “Sleep Points” is a social contribution program linked totree-planting activities and titled “Your sleep becomes a forest.” Thepoints are earned according to survey responses and sleep scoreson a smartphone app for the electrical bed that allows the user tomonitor their sleep status, “Active Sleep BED.” In September 2021,
we donated 1 million yen (equivalent to planting approximately 5,800

Image of mangrove forest(image sourced by YL Forest Co., Ltd.)

mangrove trees) to the Green Fund of the National Land Afforestation“Sleep Points”
Program application screen

Promotion Organization, which is used to plant mangrove seedlings
and other trees in Indonesia. In addition, we have decided to make amangrove forest, “PB Mangrove Forest,” of 50,000 trees in approximately 20 hectares in Nusa Tenggara Province, Indonesia in March
2022. Continuous cultivation of this mangrove forest is expected toThroughout the production process
Paramount Bed Co., Ltd. aims to reduce the envi-

60% reduction in industrial waste and a 30% reductionronmental burden throughout the product lifecycle.

in electricity consumption of the painting facilities

We are striving to make effective use of resources(compared to the conventional line at Paramountby reusing transportation jigs used for deliveringBed) by completely stopping the use of solvent-based

products, reusing returnable containers for assembly

paints to eliminate volatile organic compounds (VOCs)

parts, simplifying packaging materials, and recycling

and changing painting chemicals. In addition, we haveused products under the scheme of the National

established the “Factory Energy Saving Secretariat”

Permit System for industrial waste (certified in April

in our Production Division, and is actively promoting

2012: Certification No. 217).

energy-saving activities. We will continue to strive for

We are also focusing on manufacturing that isfriendly to the global environment. The integrated

both further improvement of production technology
and consideration for the global environment.

production line at our Chiba Factory has achieved aabsorb and store up to 25,000 tons of carbon dioxide.

Biomass plastic as material for
rental equipment packing bags
The rental wholesaler Paramount Care Service co., Ltd. has beenusing biomass plastic, a plastic material produced from renewablebiomass resources (corn, sugarcane starch, etc.), as raw material for
packing bags for rental products since September 2021. This has

Biomass mark on packing bag

not only saved petroleum resources but also reduced substantial
CO 2 emissions. The CO 2 emissions are expected to reduce byapproximately 100 tons per year compared to the year before using
biomass plastic.

Rental products wrapped in biomass plastic packing bags

Returnable containers for assembly parts

44

Paramount Bed Holdings Co., Ltd.

Integrated Report 2022

Paramount Bed Holdings Co., Ltd. Integrated Report 2022

45

Materiality

Product Safety Initiatives

3

Pursuit of product safety

Fundamental Approach

TOPICS

The Paramount Bed Group is making various efforts to build a safe environment where everyone can truly feel at ease

First company in the industry to obtain
the JIS Mark-Assistive Products

est product safety information and the supply of well-disinfected and well-maintained products at rental wholesalers.

Paramount Bed Co., Ltd. has become the first company in the industry to obtain thefrom every perspective, including not only the development of high-quality products, but also the provision of the lat-

JIS Mark-Assistive Products

JIS Mark-Assistive Products for “Electric nursing care beds for home use” in its homecare electric beds “Rakusho S series”, which were launched in 2009. The JIS Mark

Priority items
Establishment of systemfor product safety

Active involvement inindustry group initiatives

Enlightenment ofsafe usage

Examples of initiatives

Examples of initiatives• Establish and enforce theaction guidelines• Acquire third-party certifications
such as ISO9001 and ISO13485• Develop a maintenance system• Promote acquisition of JIS Markcertification for assistive products• 2015 Award for Excellence in
Product Safety Measuressystem for assistive products for “Electric care beds for home use” was promulgated

Examples of initiatives• Disseminate safety information• Hold seminars on the safeuse of products• Establish and operate “RoomT2,”
a research group for the study offalls and tumbles• Establish Safety Promotion Councilfor Medical and Home Care Bed• Participate in Japan Assistive
Products Association (JASPA), an
industry organization

on March 20, 2009 by adding new provisions for bed handrails (grips) to JIS T 9254,
the existing JIS standards for electric nursing care beds for home use, and improving
safety by reviewing gap dimensions with the purpose to prevent accidents such as
body parts being caught in the gaps between the side rails and handrails of care beds
and between the bed boards.
Our current mainstay models, such as the “Rakusho Plus series” and the “Q-AURA
ONE” home care bed, which was launched nationwide in March 2022, are also certified with the same standards.

Reception of the fiscal 2015 Commerce andDistribution Security Councilor Award

Product safety declaration• Initiatives for safer andintrinsic safety design

In November 2015, Paramount Bed Co., Ltd. received the “Commerce andParamount Bed has formulated a product safety declaration and Action Guidelines as policies for the proactive

Distribution Safety Councilor Award” in the category of Large Manufacturer/Importer

provision of high-quality products and services that can be safely used with confidence by everyone.

in the “9th Award for Excellence in Product Safety Measures in Fiscal Year 2015”
sponsored by the Ministry of Economy, Trade and Industry.

We at Paramount Bed will provide
products and services made andrendered with the highest priority
on the safety of people and property and with full consideration ofenvironmental concerns.

In the development, manufacture,and sales of our products we aim
to ensure product safety for theentire period of usage until final
disposal.

If we judge that we are unable toensure the safety of a product,
we will promptly discontinue its
manufacture or sale.

•Comply with laws and regulations

We comply with the Consumer Product Safety Act and other laws,
regulations, standards and criteria related to product safety.

•Foster a product safety culture

We foster a product safety culture by developing
and implementing product safety goals.

•Product safety management throughout the
product lifecycle

We establish an appropriate product safety management system
by analyzing risks at each stage of the product life cycle, fromplanning, development, and design to shipment, assembly, use,and disposal, and by working on the development of safety
technologies and the reduction of risks.

Paramount Bed Holdings Co., Ltd.

Integrated Report 2022

The Paramount Bed Group has been striving not only to develop high-quality• Initiatives to develop safe
products through thepractical application of
new technologies• Analysis of user behavior
to understand market
needs and reflect themin products

products and services, but also to provide information and conduct educational
activities to ensure the safe use of its products, in line with the corporate principles of“We Create Comfortable Healthcare Environments through Cutting-edge Technology
with a Human Touch.” This award appreciated the three points listed on the right.

Action Guidelines

46“Rakusho Plus series”•Provide information for safe use of the productWe provide information for the safe use of our products by meansof warnings and cautions in the instruction manuals and on the
products themselves to avoid accidents caused by inattentive or
improper handling.

•Response to product accidents

In the event of a serious accident involving our products, we
promptly confirm the facts and investigate the cause, and if
considered necessary, we take measures to prevent the spread ofharm by recalling the product or taking other mitigation measuresand providing appropriate information.

•Review the product safety management system

We regularly review our product safety management system andstrive to improve it.

Medical safety seminar held in Indonesia
Paramount Bed Indonesia has been holding medical safety seminars for local nurses
continuously. These seminars cover topics such as environmental maintenancearound beds and “Hazard prediction training” to prevent accidents involving falls.
By communicating Japanese-style nursing methods, the seminars also help theOnline seminars

company build relationships with clients and promote our brand. In 2021, when the
COVID-19 pandemic struck, the seminar was held online, connecting ParamountBed’s head office in Japan and the studio of the Jakarta branch of the Indonesian
National Nurses Association via a web system. Thanks to prior notification of theseminar by the Indonesian National Nurses Association, approximately 2300 nurses
attended the seminar.

Case study

Paramount Bed Holdings Co., Ltd. Integrated Report 2022

47

Materiality

Social Initiatives (Employees)

4

Promotion of employee health,diversity and work style reform
Concept of diversity promotion

Fundamental Approach

The Paramount Bed Group is developing various businesses in and outside of Japan with the aim of “Making

The Paramount Bed Group has established a basic stance on respect for human rights and respects the per-sonality of each and every employee. We also strive to raise awareness of items such as protection of humanrights and prevention of power harassment by including our basic stance and Q&A in the “Corporate Ethics
Guidebook” distributed to our employees.

people around the world healthy and smiling with our services and products.”
The key to corporate growth is the growth of our employees. The employees of our Group come from avariety of backgrounds, including nationality, generation, and gender, and this diversity is one of the ParamountBed Group’s strengths.
We will continue our efforts to create a workplace where each and every one of our diverse “Human resources”
can play an active role, and we further strengthen and promote our efforts so that their abilities and sensitivities

Priority items
Employee health and labor
safety initiatives
Examples of initiatives

Promotion of diversity
Examples of initiatives• Practice of “healthy company
statement”• Support sleep improvement• Health and safety initiatives• Promote women’s equality inthe workplace• Promote employment of persons
with disabilities• Develop global human resources

can be utilized in product development, service provision, and other areas.

Promotion ofwork style reforms

Promotion Concept

Examples of initiatives• Respond to diverse work styles• Support balancing work

Aim to be a vibrant company with diverse human resources playing an active roleand childcare/nursing care

Basic stance on respect for human rights (including recruitment and employment)

Two directions

Promotion of diversity

The Paramount Bed Group respects the personality of each and every employee and strives to create a corporate
culture that recognizes diverse values. We also strive to promote fair and impartial recruitment activities, and do not
engage in any discriminatory or unreasonable employment screening that restrains applicants from freely engaging
in job-hunting activities or that affects applicants’ human rights, nor do we discriminate in employments based on
gender, age, background, place of origin, creed, or physical condition.

“Paramount Bed Group healthy company statement”
The Paramount Bed Group believes that the “Health” of each and every employee is an important management
issue for sustainable growth under the corporate principles “We Create Comfortable Healthcare Environments

Work style reforms

Three Pillars
Support work-life balance(childcare/nursing care)and review work styles

Foster a
workplace culture

By bringing together diverse ideas,
we can create more innovations andoffer products and services that havenever been seen before. As a firststep toward this goal, we aim to be acompany that makes the most use of
women’s perspectives.

We promote work style reforms toenable work-life management in linewith each individual’s lifestyle.
Paramount Bed has established an area
sales position that allows employees towork in specific regions only as a newwork style option.

We provide opportunities to learn how
diversity promotion is important for
future business creation and encourage
people to take action on their own. We
aim to foster a workplace culture where
each individual can bring out the best
performance from each other.

— Pursuit of diversity promotion
using our website— Increase in the ratio of women hiredfrom new graduates— Establishment of the area
sales position— Initiatives for work style reforms— Promotion of training and distancelearning to encourage understanding— Understanding and improvement of
current conditions using employee
awareness surveys

Promote diverse
human resources

through Cutting-edge Technology with a Human Touch” and the corporate slogan “as human, for human.” We
hereby declare that we will actively promote the health of our employees.

Main Initiatives for Health Promotion• Promotion of regular health checkups
and reexaminations• Promotion of family health checkups• Establishment of a support systemfor employees undergoing treatment for illness

Certification of Excellent Health Companies
Paramount Bed Holdings Co., Ltd., Paramount Bed Co., Ltd., and ParatechnoCo., Ltd. have received “Gold Certification” and Paramount Care Service Co.,
Ltd. has received “Silver Certification” in the Certification of Excellent HealthCompanies conducted by the health insurance association. We will continue ourefforts to further maintain and promote the health of our group employees.

• Mental health care

• Measures to prevent overwork• Infectious disease control

48

Paramount Bed Holdings Co., Ltd.

Integrated Report 2022

Paramount Bed Holdings Co., Ltd. Integrated Report 2022

49

Corporate GovernanceCorporate GovernanceFundamental Approach

Functions and roles of major organizational units

Maintaining a sound framework for corporate governance is required to increase corporate value and fulfill corpo-

Organizational units

in compliance with laws and regulations. Paramount Bed Group will continue to position measures to strengthen

rate citizenship obligations by managing operations properly and ensuring that all activities are transparent andFundamental Approach to Corporate Governance
1. Respect for the rights of shareholders and equality for all shareholders
2. Sustainable collaboration with shareholders and all other stakeholders to reflect their interests
3. Proper disclosure of corporate information to maintain transparency
4. Ensure the effectiveness of the Board of Directors’ oversight of business operations by using independent
external directors to receive objective advice and reflect the opinions of all stakeholders
5. Engage in constructive dialogue with shareholders who have investment policies that are consistent with theinterests of shareholders over the medium and long term

Corporate Governance Structure

In principle, the Board of Directors is held once a month to discuss and makedecisions promptly on matters required by law and of managerial importance.

Audit andSupervisory
Committee

Chairman: Internal Director
Consists of
one internal director
and three external directors

In principle, the Audit and Supervisory Committee is held once a month to conduct
on-site audits of business locations in accordance with the audit policy, work assignments,
and annual plan determined by the Audit and Supervisory Committee, as well as to conduct rigorous audits by attending important meetings such as the Executive Committee,
hearing business reports from directors, and examining important documents.

Executive
Committee

Consists of Directors andCorporate Officers of
Paramount Bed Holdings andconsolidated subsidiaries

In principle, the Committee is held once a month to have active discussions of awide range of managerial issues to optimize management activities.

Nomination andRemuneration
Advisory
Committee

Chairman: Internal Director
Consists of
one internal director andthree external directors

Newly established on March 31, 2022. It is established as a voluntary advisory bodyto the Board of Directors to further enhance corporate governance by strengthening the independence, objectivity and accountability of the Board of Directors’
functions related to the appointment of director candidates and the remunerationof directors, excluding Board of Corporate Auditors.

Internal Auditing
Department

Department Manager
and three members

In accordance with the Internal Audit Rules, the Department systematicallyconducts operational and accounting audits of all divisions, including the Company
and its consolidated subsidiaries. In order to ensure the effectiveness of audits,
audited divisions that have been identified for improvement are obligated toreport the progress of improvement regularly.

Mainly Corporate Ethics
Office and Finance
Department

The Corporate Ethics Office implements various policies to promote compliance incooperation with various departments within the corporate. In addition, it distributes
the “Corporate Ethics Guidebook,” including the “Compliance Manual,” whichcontains the corporate’s basic stance on corporate ethics, to enlighten and guide
employees. It also continuously raises awareness, provides guidance and monitors
the legality of its operations. Meanwhile, the Finance Department continuously raises
awareness, provides guidance, and monitors internal control over financial reporting.

Departments
involved withinternal controls

Relationship Chart of Corporate Organizations and Internal Control
Shareholders meeting
Election/Dismissal

Election/Dismissal

Election/
Dismissal of
directors
Decision on
the agenda

ReportDirectors (Board of Directors)

Audit andSupervisory Committee

Election/Dismissal
Election/Dismissal

Instruction/
ReportChief Executive Officer

ReportCooperation

Accounting Auditor
Nomination andRemuneration
Advisory
Committee

Cooperation

Executive Committee(Centralized decisions
for business operations)
Directors and Corporate Officers

Corporate Officers

Accounting audit

Instruction/
ReportReportInternal Auditing
Department
Business
operations

ReportAudit

Business units and group companies

50

Paramount Bed Holdings Co., Ltd.

Efforts to Improve the Effectiveness of the Board of Directors

Audit/
Supervision

Election/Dismissal
Advisory/reporton remuneration

Election/Dismissal

Activities and Roles

Board of Directors

corporate governance as one of its highest priorities and take actions as needed to improve governance according
to the fundamental polices stated below.

Members
Chairman: President andChief Executive Officer
Consists of Director
and nine directors

Integrated Report 2022

Cooperation

Departments
involved withinternal controls

Enlightenmentand guidance

Effectiveness Assessment of the Board of Directors
We analyze and evaluate the effectiveness of ourby the President, continues to actively share infor-

Board of Directors with the aim of enhancing its

mation and frankly exchange opinions, which iseffectiveness and improving corporate value.

beneficial for ensuring its effectiveness as a whole.

Specifically, we recently conducted a ques-

On the other hand, opinions and suggestions

tionnaire survey of all directors, including outsidewere received regarding initiatives for business risk

directors, regarding the composition of the Board

management, including overseas, further strength-of Directors, its functions and deliberations, theening the supervisory function of the Board ofoperation of the Board of Directors, and the struc-

Directors, and enhancing opportunities for knowl-

ture that supports the Board of Directors.

edge and study that can withstand changes in the

As a result, we confirmed that the Board ofsocial and business environment.

Directors is functioning properly as a whole andBy utilizing the results of this evaluation tothat its effectiveness is ensured. We also found a

improve our Board of Directors, we will further

positive evaluation that the Board of Directors, ledenhance its effectiveness.

Paramount Bed Holdings Co., Ltd. Integrated Report 2022

51

Corporate GovernanceRisk management

Ensuring ComplianceFundamental Approach/Risk Management System

Fundamental Approach

Aiming to strengthen the company-wide risk management system, the Company has established the basic

The Paramount Bed Group has established corporate principles and code of corporate conduct, and strives toserious risk occur or potentially occur, an emergency task force headed by the President and Chief Executive

its business activities.

rules for risk management and has designated a responsible department for each risk to manage it. Should a

Officer is immediately convened in accordance with the above rules. We have a system to strive to minimize

damage by taking immediate action in addition to receiving guidance and advice from outside experts (corporate lawyer, tax accountants, etc.) as necessary, and to take measures to prevent recurrence.

Examples of Business Risks and Mitigation Measures
Major Risks

Revisions to systems andother items affecting
the business climate

Growth ofoverseas operations

Procurement of certain
materials and other items

Defective products
and components

Natural andother disasters

COVID-19

52

Paramount Bed Holdings Co., Ltd.

Risks having negative impacts on the Group’s business, performance,
and financial status and mitigation measures[Risk details]
Although official rates (medical and nursing care fees) are not set for our main products, hospital andnursing care beds, revisions in systems related to the public-sector medical insurance system or long-terncare insurance system, and the impact of periodic public-sector rate revisions could reduce capital investment by medical facilities, the end customers of the Group.
[Mitigation measures]
Reinforce efforts in the field of health promotion based on the technology and knowledge cultivated over
the years in the medical and nursing care fields.
[Risk details]
Risks that generally are not potential problems for operation in Japan, such as revisions to import and export regulations, inadequate technology and manufacturing infrastructures, and the difficulty of recruiting
employees.
[Mitigation measures]
Gather daily information on political, economic, and social conditions and related regulations in the countries where our production and sales sites are located, and in the regions where we sell our products (inparticular, stricter enforcement and changes in environmental regulations, product safety and quality regulations, and medical device registration regulations in each country), and implement necessary responses.
[Risk details]
Risk of delayed procurement due to a delay or interruption in the supply of a vital material or product,
resulting in shortage of such materials.
[Mitigation measures]
Expansion of potential suppliers, supplies, and alternative measures. Adoption of general-purpose parts.
[Risk details]
Risk that the Company’s reputation may be damaged due to a defective product or other item that requires a large-scale recall with substantial expenses.

fulfill its social responsibility and further enhance its corporate value by practicing social contribution through

The Paramount Bed Group Code of Corporate Conduct
All of us in the Group are aware of our social mission as a company involved in medical and welfare services andour responsibility as a member of society, and act with integrity in accordance with the following principles.
• Paramount Bed Group contributes to the enhancement of medical care, clinical nursing, and nursing careenvironments by providing products and services that satisfy customers through their safety and high quality.

• Paramount Bed Group understands and observes the laws and regulations relevant to its business activities
and the rules of a fair society.

• Paramount Bed Group appropriately manages corporate information and provides timely and appropriate
information disclosures in order to build public appreciation and confidence in the Paramount Bed Group.

• Paramount Bed Group is committed to the preservation of the global environment and conducts environmentally conscious business activities.

• Paramount Bed Group respects human rights and rejects discrimination of any kind, whether on grounds ofrace, nationality, gender, age, body, or any other grounds.

• Paramount Bed Group respects countries’ and regions’ cultures and customs and contributes to the development and furtherance of society.

• The top management of the Paramount Bed Group conducts itself in an exemplary manner in conformity

with this code of conduct. In the event of a breach of this code, the top management of the Paramount Bed
Group at its responsibility takes measures to resolve the breach, identify the cause, and prevent recurrence.

Promotion Structure/Main Initiatives
Paramount Bed Holdings has established a

In addition, we regularly distribute “Messages

Corporate Ethics Office and is implementing

from the Corporate Ethics Office,” which arevarious measures to promote complianceintended to remind and enlighten employees

throughout the Group in cooperation with theabout corporate ethics.

[Mitigation measures]
Development of a perfect system for product quality control, including manufacturing in accordance withinternational standards for quality systems and various in-house standards. Signing up for liability insurance.

Legal Department and other divisions.

[Risk details]
Risk of an earthquake or other natural disaster or a major fire or other accidents that may severely damage a factory of a group company or a supplier, causing suspension of operation, delays or reduction of
production and shipment.
[Mitigation measures]
Formulation of a business continuity plan (BCP) in the event of a major earthquake, preparation of a safety confirmation system and emergency communication networks, and periodic training.

To monitor compliance, we conduct “Employee

For example, we have made a “Corporate

Awareness Surveys” on a timely basis, and have

Ethics Guidebook,” which includes “Complianceestablished internal and external consultation

Manual” that describes our basic stance on corpo-

and reporting contacts to enable multifaceted

rate ethics as a company, our stance of respecting

monitoring.

the position of various stakeholders (customers,
business partners, employees, shareholders/Priority items

investors, government/ government agencies,

Corporate ethics initiatives[Risk details]
Risk of requests from our clients, medical institutions and elderly care facilities, to postpone product deliveries or restrict sales visits as measures to prevent the spread of infection.

local communities, etc.) surrounding the company,

Ensuring fair trade[Mitigation measures]
Non-visit sales activities and enhancement of products utilizing the Internet and non-contact monitoring as a
response to infectious diseases.

lated theme, and use it in employee training.

Integrated Report 2022

and rules and QA for each specific compliance-re-

Promotion of highly transparent governanceParamount Bed Holdings Co., Ltd. Integrated Report 2022

53

Management’s Discussion and Analysis of Financial Condition
and Results of Operation (MD&A)
Net Sales

Operating results
Financial overview

Equity-to-asset ratio

Cash and cash equivalents (hereinafter referred to as

100

(%)

100,000

During the fiscal year ended March 31, 2022, the Japanese
economy showed signs of recovery after the eased impactof the COVID-19 infection and other factors, but eco-90,00080,000nomic activities were again restricted due to the confirmation of the spread of a new mutation in the second halfof the year. In addition, the severe environment continued
due to soaring raw material and logistical costs, shortages

87,171
77,22080,088“cash”) as of March 31, 2022 totaled 45,462 million yen. The

90,352status of each cash flow and their factors are as follows.

82,379Cash flows from operating activities

70,0002018/3

2019/32020/32021/3amounted to 7,822 million yen. This was mainly due to20

yen and depreciation and amortization of 7,898 million yen,2022/3and decreases both in income taxes paid of 4,187 million

and increasingly tense international conditions.

yen and in the increase in rental assets of 8,442 million yen.

Group is involved, the prolonged burden on those who
are working on the forefront to prevent and contain the
spread of this virus infection is becoming an issue. Our(%)

15,00025

13,000medical and nursing care systems not only by providing

11,000

10,661

10,580products, but also by continuing to provide various ser-

9,000

13.8

13.2

Under such an environment, the net sales for the fiscal
year ended March 31, 2022 totaled 90,352 million yen.
Operating income increased by 757 million yen (6.5%

The cash decreased as the result of investing activities(Millions of yen)Group hopes to contribute to the maintenance of thevices in medical facilities.

Cash flows from investing activities

Operating income, Operating income margin

11,582
9,906
12.0

13.3

12,34013.7

investment securities and 1,047 million yen in purchases of15

property, plant and equipment, and an increase of 7,940

10

million yen in sales of securities and investment securities.

5002019/3Operating income

2020/32021/3decrease of 7,752 million yen in purchases of securities and

20

7,000

2018/3amounted to 220 million yen. This was mainly due to a2022/3Operating income marginincrease) to 12,340 million yen compared to the previous

Cash flows from financing activities

75.16

74.22

73.74

74.06

2018/3

2019/32020/32021/32022/30Operating CF, Investing CF, Financing CF, Free CF(Millions of yen)

12,000
8,000

9,967
9,474

7,914
5,450

9,087
5,508

-2,464-2,842-3,5790-4,000-8,000amounted to 3,365 million yen. This was mainly due to-12,000-493-2,621

2018/3Operating CF

2019/3
Investing CF

2020/3Financing CF

Net income attributable to owners of the parent

Major capital investments made by our Group in the

Capital investment expenses

fiscal year ended March 31, 2022 include 416 million yen(Millions of yen)million yen (5.6% increase) to 9,092 million yen.

10,000for the installation of facilities for factory expansion at

4,000

Financial condition

9,000

Total assets as of March 31, 2022 increased by 9,923
million yen from March 31, 2021 to 164,281 million yen.
Total liabilities as of March 31, 2022 increased by 2,071
million yen from March 31, 2021 to 42,606 million yen.

8,000

8,611

8,366

7,000

6,704

9,092

As a result, capital investment expenses for the fiscal

7,043

year ended March 31, 2022 totaled 1,822 million yen.
There were no material disposals or sales of facilities
during the fiscal year ended March 31, 2022.

0
2018/3

2019/32020/32021/32022/3yen from March 31, 2021 to 121,675 million yen.
As a result, equity-to-asset ratio was 74.06% and net

Comfortable Healthcare Environments through Cutting-(Millions of yen)edge Technology with a Human Touch,” the Group’s research

180,000

and development activities are handled by the Sleep

154,358
139,176

164,281-220-3,3652021/32022/3

Free CF108,242 107,066

102,803

113,822

121,675

Paramount Bed Co., Ltd.: R&D Department, Elemental
Technology Department, Development Department, Design
Department, IBS Solution Development Department.
Research and development expenses for the fiscal year0
2018/3
Total assets

Research Institute and a total of five departments under the

2019/3

Net assets

2020/32021/3

2,976

2,000

2,220

2,082

1,822

1,000
0
2018/3

2019/32020/32021/32022/3

Research and development expenses(Millions of yen)

2,000
1,500

1,589

1,642

1,677

2018/3

2019/32020/3

1,782

1,697

2021/32022/3

Technology Development Division of the core subsidiary,

144,006 144,257

120,000

Integrated Report 2022

-1,541-3,044

3,984

3,000

Research and Development Status
Based on the corporate principles of “We Create

Total assets, Net assets

150,000

Paramount Bed Holdings Co., Ltd.

Paramount Bed Co., Ltd. and 236 million yen for renovation work at the head office.

6,000

Net assets as of March 31, 2022 increased 7,852 million

assets per share was 2,092.47 yen.

7,602

-7,475(Millions of yen)

attributable to owners of the parent increased by 481

7,822

Capital investment statusperiod, ordinary income increased by 81 million yen(0.6% increase) to 13,543 million yen, and net income

10,279
8,738

4,000

The cash decreased as the result of financing activities
dividend payments of 3,054 million yen.

73.87

60
40

increases in the profit before income taxes of 13,437 million

080

The cash increased as the result of operating activities

in the supply of semiconductors and other components,
In the medical and nursing care fields, in which our54

Cash flow status(Millions of yen)2022/3

ended March 31, 2022 are 1,697 million yen.

1,000
500
0

Paramount Bed Holdings Co., Ltd. Integrated Report 2022

55

Financial and Non-financial Data

Financial and Non-financial Data
2013/3

2014/3

2015/3

2016/32017/3

2018/3

2019/32020 /3

2021/ 32022/ 3

Net sales (Millions of yen)

66,716

72,79475,27074,08973,19877,22080,08882,37987,17190,352

Operating income (Millions of yen)

11,23911,541

10,038

9,660

11,015

10,661

10,5809,906

11,582

12,340Operating income margin (%)

16.8

15.9

13.3

13.0

15.0

13.8

13.2

12.0

13.3

13.7

Ordinary income (Millions of yen)

11,981

12,357

11,553

9,830

11,788

12,161

10,923

10,145

13,461

13,543

Net income attributable to owners of
the parent /Net income (Millions of yen)

7,093

7,384

7,264

6,387

9,034

8,366

6,704

7,043

8,611

9,092

Comprehensive income (Millions of yen)

8,344

7,884

8,251

5,039

8,533

8,257

7,064

6,212

9,664

10,809Net assets (Millions of yen)

76,62582,571

85,391

85,22388,391

102,803108,242

107,066

113,822

121,675

Total assets (Millions of yen)

103,901

122,302125,508

126,279

128,962

139,176

144,006

144,257

154,358

164,281

Net assets per share (yen)1,246.90

1,345.41

1,453.42

1,461.50

1,600.45

1,726.95

1,800.25

1,841.97

1,958.23

2,092.47

Net income per share (yen)115.77120.51122.02110.88160.07148.62111.84118.21148.15156.39Dividends on equity ratio (DOE) (%)

1.9

1.9

2.1

2.4

2.9

2.7

2.8

2.7

2.7

2.7

Dividend payout ratio (%)

19.4

20.8

24.6

31.6

28.1

30.3

44.7

42.3

34.8

35.2

Equity-to-asset ratio (%)

73.45

67.50

68.04

67.49

68.54

73.87

75.16

74.22

73.74

74.06

Return on equity (%)

9.70

9.30

8.65

7.49

10.41

8.75

6.35

6.54

7.80

7.72

9,465

6,373

8,151

9,657

12,019

9,967

7,914

9,087

10,279

7,822-10,327-7,055-3,615-2,037-936-493-2,464-3,579-1,541-220-1,4158,809-5,375-5,493-5,641-2,621-2,842-7,475-3,044-3,365

13,06021,313

20,453

22,61527,64434,43537,06935,00940,75645,462

Price earnings ratio (PER) (times)

15.5

13.4

12.8

18.3

13.6

19.3

22.0

18.5

16.4

12.8

Price to book-value ratio (PBR) (times)

1.44

1.20

1.09

1.37

1.39

1.57

1.36

1.21

1.24

0.95

1,119

1,256

1,246

1,385

1,600

1,589

1,642

1,677

1,782

1,697

2,288

2,404

2,496

2,638

2,685

2,925

3,224

3,494

3,614

3,682

Cash flows from operating activities(Millions of yen)

Cash flows from investing activities(Millions of yen)

Cash flows from financing activities(Millions of yen)

Cash and cash equivalents (Millions of yen)

Research and development expenses(Millions of yen)

Number of employees (persons)(Note) 1. The Company carried out a 1:2 stock split of common shares effective April 1, 2021. Net assets per share and net income per share were calculated on the assumption thatthe share split had been conducted at the beginning of the fiscal year ended March 31, 2013.
2. The “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020) has been applied from the beginning of the fiscal year ended March 31, 2022,
and the key management indicators for the fiscal year ended March 31, 2022 are the those after applying the such accounting standard.

56

Paramount Bed Holdings Co., Ltd.

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Paramount Bed Holdings Co., Ltd. Integrated Report 2022

57

Board of Directors, Audit and Supervisory Committee Members,
Corporate Officers(As of June 29, 2022)

Directors

Kyosuke Kimura

Tomohiko Kimura

Izumi Sato

Directors

Position

Chairperson

President and Chief Executive Officer

Senior Managing Director

Position

Date of birth

September 20, 1950

July 17, 1977

March 24, 1958

Background

April 1979: Joined Paramount Bed Co., Ltd.
Aug. 1979:	Member of the Board of Paramount
Bed Co., Ltd.
Oct. 1982:	Member of the Board of theCompany
Sep. 1987:	Senior Managing Director of
Paramount Bed Co., Ltd.
Apr. 1991:	Senior Executive Director of
Paramount Bed Co., Ltd.
Apr. 1997:	Executive Vice President of
Paramount Bed Co., Ltd.
Apr. 2009:	President and Chief Executive
Officer of Paramount Bed Co., Ltd.
Feb. 2011:	President and Chief Executive
Officer of the Company
Apr. 2020:	Chairperson of the Company(present)
Apr. 2020:	Chairperson of Paramount Bed
Co., Ltd. (present)
Jun. 2021:	Outside Member of the Board of
Yuasa Trading Co., Ltd. (present)

Apr. 2008: Joined Paramount Bed Co., Ltd.
Jun. 2010:	Corporate Officer, Deputy Directorof Business Strategy Planning
Division of Paramount Bed Co., Ltd.
Apr. 2011:	Corporate Officer, Director of
Global Business Division of
Paramount Bed Co., Ltd.
Oct. 2011: Corporate Officer of the Company
Jun. 2014:	Senior Corporate Officer of
the Company
Jun. 2015:	Member of the Board of Paramount
Bed Co., Ltd.
Apr. 2016:	Senior Managing Director of
Paramount Bed Co., Ltd.
Jun. 2018:	Senior Managing Director of
the Company
Jun. 2019:	Senior Executive Director of
the Company
Jun. 2019:	Senior Executive Director of
Paramount Bed Co., Ltd.
Apr. 2020:	President and Chief Executive
Officer of the Company (present)
Apr. 2020:	President and Chief Executive
Officer of Paramount bed Co., Ltd.
(present)

Apr. 1980: Joined Paramount Bed Co., Ltd.
Apr. 2009:	Corporate Officer, Director of Sales
Division of Paramount Bed Co., Ltd.
Jun. 2010:	Member of the Board, Director of
Sales Division of Paramount Bed
Co., Ltd.
Oct. 2011:	Member of the Board of
the Company
Jun. 2013:	Senior Managing Director of
the Company
Jun. 2013:	Senior Managing Director, Directorof Corporate Planning Department,
Paramount Bed Co., Ltd.
Apr. 2015:	Senior Managing Director, General
Manager of Corporate Planning
Department of the Company
Apr. 2015:	Senior Managing Director of
Paramount Bed Co., Ltd.
Oct. 2015:	Senior Managing Director of
the Company (present)
Apr. 2020:	Senior Managing Director andChief Strategy officer of Paramount
Bed Co., Ltd.
Apr. 2022:	Senior Managing Director of
Paramount Bed Co., Ltd. (present)(Significant concurrent position)
President and Chief Executive Officer ofParamount Bed Co., Ltd.

(Significant concurrent position)
Senior Managing Director of Paramount Bed
Co., Ltd.

(Significant concurrent positions)
Chairperson of Paramount Bed Co., Ltd.
Outside Member of the Board of Yuasa Trading
Co., Ltd.

Yukari Oka

Masaki Sato

External Director

Yoshikazu Goto

External Director

External Director(Audit and Supervisory Committee Member)(Audit and Supervisory Committee Member)(Audit and Supervisory Committee Member)

Date of birth

April 26, 1963

September 17, 1947

October 30, 1955

BackgroundMar. 1995:	Completed The Legal Training andResearch Institute of Japan
Apr. 1995: Registered as an attorney-at-law
Jun. 2007:	External Corporate Auditor of
Paramount Bed Co., Ltd.
Apr. 2011:	External Corporate Auditor of
the Company
Jun. 2015: External Director of the Company
Jun. 2016:	External Director of the Company(Audit and Supervisory Committee
Member) (present)

Jun. 1973:	Joined Nishikata Audit Corporation(currently Deloitte Touche Tohmatsu
LLC)
Mar. 1976:	Registered as a Certified
Public Accountant
Nov. 1986:	Partner, Nishikata Audit Corporation
Jul. 1993:	Senior Partner, Tohmatsu & Co.
(currently Deloitte Touche Tohmatsu
LLC)
Dec. 2012: Left Deloitte Touche Tohmatsu LLC
Jun. 2015:	External Corporate Auditor of
the Company
Jun. 2016:	External Director of the Company(Audit and Supervisory Committee
Member) (present)

Apr. 1980:	Joined Ministry of International Tradeand Industry (currently Ministry of
Economy, Trade and Industry)
Aug. 2003:	Director, Standards Development
and Planning Division, Industrial
Science and Technology Policy andEnvironment Bureau, Ministry of
Economy, Trade and Industry
Jun. 2004:	Director, Small and Medium
Enterprise Agency/ Engineering
Division, Ministry of Economy,
Trade and Industry
Jul. 2008:	Deputy Director-General, Manufacturing Industries Bureau, Ministry of
Economy, Trade and Industry
Apr. 2010:	Deputy Director-General, Manufacturing Industries Bureau, Ministry of
Economy, Trade and Industry
Oct. 2012:	Professor, Department of Materials
Engineering, School of Engineering,
The University of Tokyo
Jun. 2015: External Director of the Company
Oct. 2017:	Vice-President, General Director ofTechnical Research Institute of Japan
Society for the Promotion of
Machine Industry
Jun. 2018:	External Director of the Company(Audit and Supervisory Committee
Member) (present)
Mar. 2022:	External Director of Sodick Co., Ltd.
(present).
(Significant concurrent position)
External Director of Sodick Co., Ltd.

Directors

Toshiyuki Hatta

Yosuke Kimura

Position

Director

Director

Date of birth

December 21, 1961

October 10, 1980

January 12, 1959

Background

Apr. 1984: Joined Paramount Bed Co., Ltd.
Jun. 2011:	Corporate Officer, General Manager
of Human Resource Department
and Public and Investor Relations
Department of Paramount Bed
Co., Ltd.
Oct. 2011:	Corporate Officer, General Manager
of Human Resource Department
and Public and Investor Relations
Department of the Company
Jun. 2018:	Corporate Officer, General Manager
of General Affairs Department andHuman Resource Department of
the Company
Jun. 2018:	Corporate Officer, Executive
Director of Administration Division of
Paramount Bed Co., Ltd.
Jun. 2019:	Member of the Board, General
Manager of General Affairs
Department and Human Resource
Department of the Company
Jun. 2019:	Member of the Board, Executive
Director of Administration Division of
Paramount Bed Co., Ltd. (present)
Jul. 2020:	Member of the Board, General
Manager of General Affairs
Department of the Company
Jun. 2022: Director of the Company (present)

Apr. 2013: Joined Paramount Bed Co., Ltd.
Jun. 2015:	Corporate Officer, Deputy Directorof Technical Engineering Division of
Paramount Bed Co., Ltd.
Apr. 2017:	Corporate Officer, Director ofTechnical Engineering Division of
Paramount Bed Co., Ltd.
Jun. 2017:	Member of the Board, Director ofTechnical Engineering Division of
Paramount Bed Co., Ltd.
Apr. 2018:	Member of the Board, Executive
Director of Finance and System
Administration Division of
Paramount Bed Co., Ltd. (present)
Jun. 2019:	Corporate Officer, General Manager
of Finance Department and ofInformation System Department of
the Company
Jun. 2020:	Chief Financial Officer, Memberof the Board, General Manager
of Finance Department andInformation System Department of
the Company
Jun. 2022: Director of the Company (present)

Apr. 1982: Joined Paramount Bed Co., Ltd.
Apr. 2009:	Corporate Officer, Executive
Director of Finance and System
Administration Division of
Paramount Bed Co., Ltd.
Oct. 2011:	Corporate Officer, General Manager
of Finance Department of theCompany
Jun. 2019: Corporate Advisor of the Company
Jun. 2022:	Director of the Company(Full-time Audit and Supervisory
Committee Member) (present)
Jun. 2022:	Corporate Auditor of Paramount
Bed Co., Ltd. (present)(Significant concurrent position)
Member of the Board, Executive Director of
Administration Division of Paramount Bed
Co., Ltd.

58

Paramount Bed Holdings Co., Ltd.

Integrated Report 2022

(Significant concurrent position)
Member of the Board, Executive Director of
Finance and System Administration Division of
Paramount Bed Co., Ltd.

Kenji Ouchi
Director(Full-time Audit and Supervisory Committee Member)(Significant concurrent position)
Corporate Auditor of Paramount Bed Co., Ltd.

Directors

Kyosuke
KimuraTomohiko
KimuraIzumi
Sato

Toshiyuki
Hatta

YosukeKimura

Kenji
Ouchi

YukariOka

MasakiSato

Yoshikazu
Goto

Date of appointment as director

October
1982

June
2018

October
2011

June
2019

June
2020

June
2022

June
2015

June
2016

June
2018

Number of shares held (shares)

1,819,236

1,755,827

16,443

6,558

743,150

—

—

—

—

Attendance at Board of
Directors meetings*

9/9 times

9/9 times

9/9 times

9/9 times

9/9 times—

9/9 times

9/9 times

9/9 times

Experience/Skills possessed
Corporate Management
and Management Strategy
Finance and Accounting
Production, Technology
and Quality
Legal and Compliance
Human Resources, Labor Relationsand Human Resource Development
Global*April 2021 - March 2022

Corporate Officer

Tatsunori Aiko

Corporate Officer

Masaki Kobayashi

General Manager, Public & Investor Relations Dept.

Paramount Bed Holdings Co., Ltd. Integrated Report 2022

59

Corporate Information/Stock Information

Corporate Outline
Corporate name

Stock Information (as of March 31, 2022)

Paramount Bed Holdings Co., Ltd.

English name

PARAMOUNT BED HOLDINGS CO., LTD.

Head office14-5, Higashisuna 2-chome, Koto-ku, Tokyo 136-8671, Japan• Total number of authorized shares• Total number of shares issued• Number of shareholders		
• Major shareholders

Investment in the Company
Name of shareholders

Number ofshares held
(thousand shares)+81-3-3648-1100 (operator)

Listing

4,207,430,300 yen

Tokyo Stock Exchange, First Section (currently Prime Market) (Securities Code: 7817)

24.5%

Securities companies

0.8%

Treasury stock

5.8%

Financial institutions

22.2%

24.2%

9,063

15.6

Foreign companies, etc.

CTOK Co., LTD.

9.7
7.1
3.1
3.1
3.1
3.0

Other domestic companies 22.5%

Tomohiko Kimura

5,642
4,146
1,822
1,819
1,797
1,755

THE BANK OF NEW YORK MELLON(INTERNATIONAL) LIMITED 131800

1,648

2.8

WISE LIGHT Co., LTD.

1,375
1,375

2.4
2.4

Michihide Kimura
Kyosuke Kimura
Kenji Kimura

CapitalShareholding
ratio (%)

Individuals and Others

The Master Trust Bank of Japan, Ltd.
(Trust Account)
LLAGE WOOD Co.

Phone• D istribution of shares

252,000,000
61,754,974
11,419SION Co., LTD.

* Although the Company holds 3,606,342 shares of treasure stock,
the shareholding ratio is calculated after deducting the shares of treasury stock.

500,000 or more

74.0%

Less than 1,000

3.4%

1,000 to 4,999

3.4%

5,000 to 9,999

1.1%

10,000 to 49,999

3.8%

50,000 to 99,999

3.4%

100,000 to 499,999

10.9%

Distribution bytype ofshareholder

Distribution by
number ofshares held

• 5-year share price/volume trends
Share price (yen)Business lines

Control or management through ownership of shares or interests in business companies engaged in
the manufacture and sale of medical and nursing care beds, mattresses, hospital room furniture,
medical equipment, and services such as inspection, repair, disinfection, and maintenance leasing ofbeds and mattresses, as well as the rental wholesale of assistive products

3,500

3,000

2,500

2,000

Number of
employees

1,500

Consolidated: 3,682 (as of March 31, 2022)

Volume (shares)

4,000,000

3,000,000

2,000,000

1,000,000

0

March
2017

September
2017

March
2018

September
2018

March
2019

September
2019

March
2020

September
2020

March
2021

September
2021

March
2022

*The Company carried out a 1:2 stock split of common shares effective April 1, 2021.
Share prices prior to March 2021 are presented on the assumption that an equivalent stock split had taken place.

Introduction of Publishing MediaHome Page
https://www.paramountbed-hd.co.jp/english
Annual Securities Reporthttps://www.paramountbed-hd.co.jp/ir/reference/securities (Japanese only)
Corporate Governance Reporthttps://www.paramountbed-hd.co.jp/ir/reference/other (Japanese only)

60

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61

14-5, Higashisuna 2-chome, Koto-ku, Tokyo 136-8671, Japan