Financial Results Briefing for the Fiscal
Year Ending March 2023 (FYE 3/2023)
April 1, 2022 to March 31, 2023
May 18, 2023
Securities code: 7817
¾z³üùÿ7817
Paramount Bed Holdings Co., Ltd.

ñùþ¶óøùóùûüû÷³ó°¹j__

Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

Executive Summary
FYE 3/2023 All-time high profits even with yen depreciation
and raw material price increase impacts
Sales in each business rose by capturing increased demand
Impacts from the COVID-19 pandemic and semiconductor and other materials
procurement concerns ended up being modest.

Increased demand, and price revision effect which offset higher costs delivered all-timehigh sales and profits.

FYE 3/2024
Final year of Paramount Vision 2030 3 Phase I
Steadily proceeds measures aimed at achieving longer-term growth, such as<establishing the foundations for change,= and the new Enterprise Resource Planningsystem begins operation in 3Q. While related costs are likely to concentrate in 1H, sales
and profits would rise for the full year.

Income improvement on expansion of recurring revenue
business
Domestic bed demand is expected to lower because higher costs and reclassification of
COVID-19 to a Class V disease affect hospital management and impact by the productcycle in home care. Expanding recurring revenue businesses that effectively address
the needs generated from work style reforms in medical and nursing care fields, andreinforcement of health promotion business and overseas business.
Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

2

Table of contentsÿÿOverview of Results for FYE 3/2023ÿÿOverview by BusinessÿÿOutlook for FYE 3/2024
ÿÿ Medium-Term Management Plan ProgressÿÿTopics

Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

3ÿÿOverview of Results for FYE 3/2023

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4

1-1. Overview of Financial Results
Set all-time highs in sales and profits just as in theprevious fiscal year
Increased the annual dividend by 4 yen

FYE 3/2023

FYE 3/2022
Forecast

Results% to
Forecast

YoY
Change90,352

94,00099,009

+5.3%

+9.6%

12,34012,50013,452

+7.6%

+9.0%

13,543

12,90014,139

+9.6%

+4.4%

9,092

8,800
(9.4%)

9,215(9.3%)

+4.7%

+1.3%

55 yen-59 yen-+7.2%

Results

Net sales

Operating profitÿOperating profit
marginÿ
Ordinary profitÿOrdinary profit
marginÿ
Profit attributableto owners of
Parent(Net profit
marginÿ

Annual dividend(Unit: millions of yen)

(13.7%)(15.0%)(10.1%)(13.3%)(13.7%)

Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

(13.6%)(14.3%)

5

1-2. Factors Causing Changes in Operating Profit
In spite of higher costs, profit increased for the full year thanks tostronger demands and price revision effect.

SG&A expenses increased because of payments related to renewal of system infrastructure andhigher variable costs due to increased revenue.
ÿ Unit: millions of yenÿOperating Profit+1,112+4,12316,00014,00012,00012,340+48-615

Profitincreasedue to rise ingross margin

Increase infee payments+4,171

8,000
6,000

13,452Other
increases in
SG&A

Profit increasedue
to higher revenue

10,000-2,444

Increase-3,059Decrease
Total

Other main increases in SG&AûTransportation expenses ÿ528
ûOutsourcing expenses
ÿ360ûPersonnel expenses
ÿ299ûRent expenses
ÿ278ûAdvertising and promotion expensesÿ178

4,000
2,000
0

FYE 3/2022
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FYE 3/2023
6

1-3. Financial status
Net assets increased by 7,022 million yenÿUnit: millions of yenÿMarch 31,2022

March 31, 2023

ChangeYoY
ChangeCurrent assets

94,035

97,135+3,100+3.3%

Non-current assets

70,24675,158+4,911+7.0%

164,281

172,293+8,011+4.9%

Current liabilities

25,38726,300

+912

+3.6%

Non-current liabilities

17,21817,296+77+0.5%

Total liabilities

42,606

43,596

+989

+2.3%

Net assets

121,675

128,697+7,022+5.8%

Total liabilities and net
assets164,281

172,293+8,011+4.9%

Total assets

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7

ÿÿOverview by Business

Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

8

2-1. Medical Care Business
9% increase in salesÿUnit: millions of yenÿDemand rose due to promotion of work
Net salesstyle reforms for medical staff.
Rental and on-site services for hospitalJapan
steadily expanded.
Overseas business benefited from forex
Overseas
effect.

FYE 3/2023

FYE
3/2020FYE
3/2021FYE
3/2022

Results

YoY

35,94633,444

34,23037,291+9%29,33925,76926,43528,729

+9%

6,607

7,675

7,795

8,561

+10%

(Units: thousands, fractions rounded. YoY comparisons are calculated based on actual numbers.)

Number ofbeds soldNet sales(millionyen)
40,00030,000Net salesúNÚ(ÿÕ)(Japan)35,946
6,607

88

90

89

95

+7%

Japan

48

44

47

55

+12%

Overseas

40

47

41

41

-2%

Net salesúNÚÿ_ÿ(Overseas)

33,444

34,230

7,675

7,795

37,291
8,561

Number ofbeds(thousands)

100

Number ofùóùóu(ÿÕ)

beds (Japan)

Number of bedsùóùóuÿ_ÿ(Overseas)

89

40

47

41

48

44

47

55

FYE2020~
3/20203o

FYE2021~
3/20213o

FYE2022~
3/2022
3o

2023~
FYE
3/2023
3o

80
60

95

90

88

41

20,00029,33910,000025,76926,43528,729

40
20

2020~
FYE
3/2020
3o

2021~
FYE
3/2021
3o

2022~
FYE
3/2022
3o

2023~
FYE
3/20233o0*Applied <Accounting Standard for Revenue Recognition” from FY3/2022 (Corporate Accounting Standard No. 29) from FYE 3/2022
Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

92-2. Nursing Care Business
Double-digit sales
Net sales
growth in both
domestic nursinghome care and homecare segments

FYE
3/2020ÿUnit: millions of yenÿFYE
3/2021FYE 3/2023

FYE
3/2022

Results

YoY

44,73450,48252,31757,521+10%

Japan nursing
facility

12,59314,016

13,442

14,912+11%

Japan home care

31,59836,04937,85541,899+11%

Overseas

542

416

1,018

709

-30%

(Units: thousands, fractions rounded. YoY comparisons are calculated based on actual numbers.)

New products for the home care
contributed.
Number of rental bed in operation byrental wholesale business increased by
7,000 units YoY to reach about
190,000.
Net sales(millionsof yen)Net salesúNÚ(ÿÕý¯)(Japan facility)

60,00050,00040,00030,00044,734542

31,598Net salesúNÚ(ÿÕß)(Japan home)

50,428416

36,049Number of beds
sold

95

108

123

132

+8%

Japan nursing
facility

39

38

40

45

+14%

Japan home
care

51

66

77

84

+9%

Overseas

4

3

6

4

-39%

Net salesúNÚÿ_ÿ(Overseas)

52,317
1,018

37,85557,521
709

0

120
100

41,89980
60

20,00010,000

Number ofbeds sold(thousands)*Number of bed sales include sales to companies within the group.
Number of bedsùóùóu(ÿÕý¯)(Japan facility)

95

108

Number of bedsùóùóu(ÿÕß)(Japan home)

123

132

6

3

4
51

Number of bedsùóùóuÿ_ÿ(Overseas)

66

77

84

40

12,59314,016

13,442

14,9122020~
FYE
3/2020
3o

2021~
FYE
3/2021
3o

2022~
FYE
3/2022
3o

2023~
FYE
3/2023
3o

20
0

39

38

40

45

FYE2020~
3/20203o

FYE2021~
3/20213o

FYE2022~
3/2022
3o

2023~
FYE
3/20233o*Applied <Accounting Standard for Revenue Recognition” from FY3/2022 (Corporate Accounting Standard No. 29) from FYE 3/2022
Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

102-3. Health Promotion BusinessContinues to expand
New product <INTIME 3000=
contributed to full-year.
Strengthened promotion measures
for sales outlets and public relations
activities.

FYE
3/2021FYE
3/2022

1,231

1,584

2,141

2,517

+18%

Japan

1,231

1,584

2,141

2,517

+18%

Overseas

0

0

0

0

0%

Net sales

Net salesúNÚ(ÿÕ)(Japan)

7

9

10

+11%

Japan

6

7

9

10

+11%

Overseas

0

0

0

0

0%

Number ofbeds sold(thousands)

Net salesúNÚÿ_ÿ(Overseas)

2,141

2,000
1,500
1,000
500
0

1,584
1,231
0

1,231

2020~
FYE 3/2020
3o

1,584

2021~
FYE 3/2021
3o

0

0

0

2,141

2023~
FYE 3/2023
3o

Number of beds
(Overseas)ùóùóuÿ_ÿ

9

10
8

2,517

Number ofbeds (Japan)ùóùóu(ÿÕ)

12

6
4
2

2022~
FYE 3/2022
3o

YoY

6

2,517
2,500

Results(Units: thousands, fractions rounded. YoY comparisons are calculated based on actual numbers.)

Number ofbeds soldNet sales(millionyen)

FYE 3/2023

FYE
3/2020ÿUnit: millions of
yenÿ

0

6
0
6

2020~
FYE
3/2020
3o

7

0

10
0

0

7

2021~
FYE
3/2021
3o

9

2022~
FYE
3/2022
3o

10

2023~
FYE
3/20233o*Applied <Accounting Standard for Revenue Recognition” from FY3/2022 (Corporate Accounting Standard No. 29) from FYE 3/2022
Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

112-4. List by business
8% increase in total bed sales to 237,000 units
Net salesÿUnit: millions of yenÿFYE 3/2022
Results

FYE 3/2023
Results

Number of bed sales
FYE 3/2022

YoY

Results(Units: thousands, fractions roundedÿ

FYE 3/2023
YoY

Results

Medical carebusiness

34,23037,291

+8.9%

89

95

+7%

Nursing carebusiness

52,31757,521

+9.9%

123

132

+8%

Health promotion
business

2,141

2,517

+17.5%

9

10

+11%

Other

1,662

1,678

+1.0%

-

-

-

Total

90,35299,009

+9.6%

220

237

+8%

Reference data (recurring business sales)
Medical carebusiness

5.4 billion yen

Nursing carebusiness

23.9 billion yen

Total

29.3 billion yen

6 billion yen
25.6 billionyen
31.6 billion
yen

Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

*Number of beds sales include sales to companies within the group

+12%
+6%
+7%
12

2-5. Overseas sales by region
Sales increase driven by forex effect
Consolidated overseas sales by region
FYEÿUnit: millions of yenÿ 3/2022

FYE
3/2023

YoY

Consolidated
overseas net
sales

8,813

9,271

+5.2%

Overseas sales
ratio

9.8%

9.4%

-

Consolidated
overseas net
10,000sales(millions of yen)

Consolidated
_³}úNÚ
overseas
net sales

8,813

Percentage of_úNÚ÷overseas net sales

9,271

Percentageofoverseas net
15.0
sales

YoY

7,923

8,174

+3.2%

Indonesia

2,772

2,874

+3.7%

China

2,803

3,029

+8.1%

Other Asia

2,346

2,269

-3.3%

Middle East

68

222

+226.7%

Central andSouthAmerica

227505+122.8%

Other

595

369

-38.0%

yenÿ

14.0
13.0

9.8

9.4

4,000

12.0
11.0
10.0
9.0
8.0

2,000

7.0
6.0

0

FYE
3/2023

Asia

8,000
6,000

FYE
ÿUnit: millions of 3/2022

2022~
FYE
3/2022
3o

2023~
FYE
3/20233o

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5.0

13

ÿÿOutlook for FYE 3/2024

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143-1. Outlook for the Full Year
Although expecting profit decline in the first half due to increase insystem-related and other expenses, the full-fiscal year sales and profit
set all-time highsÿUnit: millions of yenÿFYE 3/2023
Results

FYE 3/2024
First half
prospects

Second half
prospects

Full year
forecast

YoY

Net sales

99,00948,70056,300105,000+6.1%

Operating profit

13,452

5,600

8,400

14,000+4.1%ÿOperating profit
marginÿ

Ordinary profitÿOrdinary profit
marginÿ

Profit attributableto owners of parentÿNet profit marginÿ

Annual dividend(13.3%)(13.6%)(11.5%)(14.9%)

14,139

5,850

8,650

14,500

+2.6%

9,800

+6.3%
+5.1%

(13.8%)(14.3%)(12.0%)(15.4%)

9,215

4,000
(8.2%)

5,800(10.3%)(9.3%)

59 yen31 yen31 yen62 yen

(9.3%)

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15

3-2. Factors Causing Changes in Operating Profit
Increase profit due to sales growthÿUnit: millions of yenÿOperating Profit+548+2,99016,00014,00013,452+208-800

Profit increase
due toimprovedgross margin

Increase insystem-related
costs

Profit increase due to
net sales growth

12,00010,000+3,198

8,000
6,000

-1,851

14,000

Other increase in
SG&A
due to increased
sales, etc

Increase-2,651

Decrease
Total

Other main increases in SG&AûPersonnel expensesûTransportation expenses
ûR&D expenses, etc.

4,000
2,000
0

FYE 3/2023
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FYE 3/2024ÿoutlookÿ
16

3-3. Outlook for Medical Care Business
Expecting expansionof recurring business
In Japan, expand recurring revenue
business despite volume of bed solddecline.
In overseas, sales increase mainly
in large markets, such as Indonesia, China,
and India.

Net salesúNÚ(ÿÕ)(Japan)Net sales(millionsof yen)40,00030,000FYE
3/2021FYE
3/2022FYE
3/2023

OutlookNet sales

33,444

34,23037,291

39,119+5%

Japan

25,76926,43528,72929,349+2%Overseas

7,675

7,795

8,561

9,770

+14%

Number ofbeds sold

90

89

95

100

+5%

Japan

44

47

55

51

-6%

Overseas

47

41

41

49

+21%

Number ofbeds sold(thousands)

37,291

39,119

100

8,561

9,770

80

33,444
7,675

7,795

25,76926,43528,729FYE2021~
3/20213o

FYE2022~
3/20223o

FYE2023~
3/20233o

60

20,00010,0000

YoY(Units: thousands, fractions rounded. YoY comparisons are calculated based on actual numbers.)

Net salesúNÚÿ_ÿ(Overseas)

34,230FYE 3/2024ÿUnit: millions ofyenÿ29,349

90

89

47

41

44

47

Number of bedsùóùóuÿ_ÿ(Overseas)

95

100

41

49

55

51

FYE2023~
3/2023
3o

2024~
FYE
3/2024
3o

40
20

2024~
FYE
3/20243o

Number ofùóùóu(ÿÕ)
beds (Japan)0

FYE 2021~
3/20213o

FYE 2022~
3/20223o*Applied <Accounting Standard for Revenue Recognition” from FY3/2022 (Corporate Accounting Standard No. 29) from FYE 3/2022
Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

17

3-4. Outlook for Nursing Care Business
Steadily increase
sales bystrengthening
products lineups
other than beds

Net sales(millions of yen)
60,00050,000Net salesúNÚ(ÿÕý¯)(Japan facility)

50,482416

Net sales

1,018

40,00030,00036,04937,855FYE
3/202350,48252,31757,521

60,669+6%

Japan nursing
facility

14,016

13,442

14,912

15,438+4%

Japan homecare

36,04937,85541,89944,202+6%

Overseas

416

1,018

709

1,040

+45%

Net salesúNÚ(ÿÕß)(Japan home)

52,317FYE
3/2022ÿUnit: millions of yen)

Increase products other than bed likemattresses
Roll out of original products also inrental wholesale business.
For nursing homes, continue to focus
on spreading <Nemuri SCAN.=

709

108

123

132

129

-3%

Japan nursing
facility

38

40

45

42

-7%

Japan home
care

66

77

84

81

-3%

Overseas

3

6

4

6

+69%

60,6801,040

44,20220,00010,0000

YoY

Number of beds
sold*Number of bed sales include sales to companies within the group.

Number of beds
sold (thousands)
120
100

41,889Outlook(Units: thousands, fractions rounded. YoY comparisons are calculated based on actual numbers.)

Net salesúNÚÿ_ÿ(Overseas)

57,495FYE 3/2024

FYE
3/202180
60ùóùóu(ÿÕý¯)
Number of beds
(Japan facility)

123
108

ùóùóu(ÿÕß)
Number of beds
(Japan home)
132

6

4

Number of beds (Overseas)ùóùóuÿ_ÿ

129
6

3

66

77

84

81

42

40

14,016

13,442

14,886

15,4382021~
FYE 3/2021
3o

2022~
FYE 3/2022
3o

2023~
FYE 3/2023
3o

2024~
FYE 3/2024
3o

20
0

38

40

45

2021~
FYE
3/2021
3o

2022~
FYE
3/2022
3o

2023~
FYE
3/2023
3o

2024~
FYE
3/20243o*Applied <Accounting Standard for Revenue Recognition” from FY3/2022 (Corporate Accounting Standard No. 29) from FYE 3/2022
Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

18

3-5. Outlook for Health Promotion Business
Projecting a 39% YoY
increase
Implemented a full model change formainstay <INTIME 1000= in April.
Continue to focus on bolstering public
relations efforts, measures to improveuser satisfaction, and to strengthen ties
with retailers.

Net sales(Japan)Net sales(millions of yen)úNÚ(ÿÕ)Net sales(Overseas)úNÚÿ_ÿ

3,000

2,141

2,500
2,000
1,500
1,000
500
0

FYE
3/2022FYE
3/2023

1,584

2,141

2,517

3,500

+39%

Japan

1,584

2,141

2,517

3,500

+39%

Overseas

0

0

0

0

0%

Net sales

1,584

Number ofbeds sold

0

1,584

2021~
FYE 3/2021
3o

2,141

2022~
FYE 3/2022
3o

9

10

12

+26%

Japan

7

9

10

12

+26%

Overseas

0

0

0

0

0%

3,500

0

Number ofbeds (Japan)

Number of beds
sold (thousands)ùóùóu(ÿÕ)

10

2,517

12
9
7

0

0

10
0

0
5

7

2024~
FYE 3/2024
3o

Number of beds
(Overseas)ùóùóuÿ_ÿ

15

3,500

2023~
FYE 3/2023
3o

YoY

7

2,517

0

Outlook(Units: thousands, fractions rounded. YoY comparisons are calculated based on actual numbers.)

0

3,500

FYE 3/2024

FYE
3/2021ÿUnit: millions ofyenÿ0

FYE 2021~
3/20213o

9

10

FYE2022~
3/20223o

FYE2023~
3/2021
3/2022
3/2023
3o

12

2024~
FYE 3/2024
3/2021
3/2022
3/20233o*Applied <Accounting Standard for Revenue Recognition” from FY3/2022 (Corporate Accounting Standard No. 29) from FYE 3/2022
Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

193-6. List by Business

Projecting 241k beds in total, increases in health promotion
and overseas volumes despite declines in domestic medicalcare and nursing care
Net sales

Number of beds sold (Units: thousands, fractions roundedÿ

ÿUnit: millions of yen)

FYE 3/2023
Results

FYE 3/2023

FYE 3/2024
Outlook

YoY

Results

FYE 3/2024
YoY

Outlook

Medical carebusiness

37,291

39,119

+4.9%

95

100

+5%

Nursing carebusiness

57,49560,669

+5.5%

132

129

-3%

Health promotion
business

2,517

3,500

+39.0%

10

12

+26%

Other

1,678

1,710

+1.9%

-

-

-

Total

99,009105,000

+6.1%

237

241

+2%

*Number of beds sales include sales to companies within the group

Reference data (recurring sales)
Medical carebusiness

6 billion yen

6.6 billion yen+9%

Nursing carebusiness

25.6 billionyen

27.4 billion yen

+7%

Total

31.6 billion
yen

34 billion yen+7%

Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

20

3-7. Overseas Sales by Region
Focus on business expansion in large markets

Consolidated overseas sales by region(Unit: millions of yen)

FYE
3/2023FYE
3/2024
Outlook

9,271 10,800+16.5%

Overseas sales
ratio

9.4%

10.3%

-

(millions of yen)

Consolidated
_³}úNÚ
overseas net sales

12,00010,000

9,271

8,000
6,000

9.4

Overseas sales
_úNÚ÷
ratio

YoY

8,174

9,897

+21.1%

Indonesia

2,874

3,657

+27.2%

China

3,029

3,524

+16.3%

Other Asia

2,269

2,715

+19.7%

Middle East

222

235

+5.9%

Central andSouth America

505

526

+4.0%

Other

369

140

-62.0%

Asia

Percentage ofoverseas net sales(%)

10,800

15.0
14.0
13.0

10.3

12.0
11.0
10.0
9.0

4,000

8.0
7.0

2,000
0

FYE
3/2024
Outlook(Unit: millions of yen)

Consolidated
overseas net
sales

Consolidated
overseas net sales

FYE
3/2023

YoY

6.0

2023~
FYE
3/20233o

FYE2024
3/20243o

Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

5.0

21

3-8. Capital expenditures, depreciation costs, and R&D expenses
Capital expenditures includes investments to construct the
new system infrastructure
Also includes the renewal of painting equipment at the Indonesian plant.
FYE 3/2021

FYE 3/2022

FYE 3/2023(Unit: millions of yen)

FYE 3/2024
BudgetCapital expenditures

2,976

1,822

3,653

3,613

Depreciation costs

7,540

7,898

8,482

9,671

R&D expenses

1,782

1,697

1,753

1,975

Number of
employees

3,614

3,682

3,946

-

8.9 billion yen

10.1 billionyen

10.1 billion
yen

11.6 billion
yen*Reference data
Recurring asset
investment value

Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

22

3-9. Shareholder Returns (Dividends and Purchase of Treasury Shares)
Basic Policy: Stable dividends with 2.7% DOE and payout ratio of 30%
as a guide
Dividends are planned to be 62 yen per share in FYE 3/2024 for the fourth consecutive dividend increase.
FYE 3/2020

FYE 3/2021

FYE 3/2022

FYE 3/2024
OutlookFYE 3/2023

Dividends per share*

50 yen51.5 yen

55 yen59 yen62 yenDividend on equity
(DOE)

2.7%

2.7%

2.7%

2.7%

-

42.3ÿ

34.8ÿ

35.2ÿ

37.3ÿ

36.9%

4,382 million yen

0 yen

0 yen

0 yen

-

Payout ratio
Value of sharebuybacks

Dividends per
~Ý_¯
share

Dividends per share*
(yen)
60

50

51.5

Ý_gU
Payout ratio

55

59

62

Payout ratio (%)
60

50
40
30

40

42.3

20

34.8

35.2

37.3

2021~3o
FYE 3/2021

2022~3o
FYE 3/2022

2023~3o
FYE 3/2023

36.9

20

10
0

2020~3o
FYE 3/2020

FYE 3/2024
2024~3o(Outlook)ÿ¿wÿ0* 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, 2019.
Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

23ÿÿ Medium-Term Management Plan
Phase I and Phase II

Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

24

4-1ÿ Positioning of Corporate Principles, Long-Term Vision, and Medium-Term Management Plan
Corporate Principles

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

Statement
as human, for humanCorporate
Principles

VisionParamount Vision 2030
Smiles for everyone from medical and nursing
care to health field

VisionIdeal Future Image

Medium-Term Management Plan

Phase I: (April 2020–March 2024ÿ
Phase II: (April 2024–March 2027ÿ

Medium-Term Management Plan

Phase III: (April 2027–March 2030ÿ
Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

25

4-2ÿStatus of Phase I

12 billion yen in operating income in the final year of Phase I
Net sales

Operatingincome(hundredmillions of yen)Phase I

(hundred millions of yen)

Current situation- Phase I performance targets
Aim for 12 billion yen in operating profit and 89
billion yen in sales in FYE 3/2024

FYE 3/2024

FYE 3/2018

FYE 3/2019

FYE 3/2020

Net
sales

77.2 bnbn

80.0 bn

FYE 3/2021
Forecast*1

82.3 bn
bn

bn
84 bn

89.0 bn

Operatingprofit10.6 bnbn

bn
10.5 bn

9.9 bnbn

10.8 bn12.0 bn

Operatingmargin*1 Announced on
October 30, 2020

*2 The "AccountingStandard for Revenue
Recognition" applied from
FY3/2022

April 2021 briefing materials
Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

Exceeded in FYE 3/2022

Continue steady implementation of priority
measures from Phase I and conduct activities
taking the Phase II direction into account.
264-3ÿ Phase II (FYE 3/2025 – FYE 3/2027) Performance Targets
Final year of Phase II: 120 billion yen in sales and 17 billion yen in operating profit
Net sales

Phase II

1,300

(hundredmillions of yen)

Operating profit(hundredmillions of yen)Phase I

1,100

160
CAGR
6.0ÿ

900

140
120

700

100

500

Net
sales

80
FYE 3/2027
2027~3o
TargetFYE 3/2020
2020~3o

FYE 3/2021
2021~3o

FYE 3/2022
2022~3o
;1

FYE 3/2023
2023~3o

82.3

87.1

90.3

99.0

105.0

120.0

billion yen

billion yen

billion yen

billion yen

billion yen

billion yen

FYE 3/2024
2024~3o
Forecast

Operatingprofit

9.9

11.5

12.3

13.4

14.0

17.0

billion yen

billion yen

billion yen

billion yen

billion yen

billion yen

Operatingmargin

12.0%

13.3%

13.7%

13.6%

13.3%

14.2%

Recurring
revenueratio in
Japan

33.8%

34.6%

36.0%

35.3%

36.2%

45.0%

*1 The "Accounting Standard for Revenue Recognition" applied from FY3/2022
Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

27

4-4ÿ Phase II Direction and Focal Points
Paramount Vision 2030
Smiles for everyone from medical and nursing care to health field
March 2027

March 2024

March 2030

Phase I Priority Measures
Expansion of current businesses
Fully engaging in Health Promotion Business
Establishing the foundations for change

Phase II Direction and Focus Points
Expansion of recurring revenue businesses
Advancement of the Health Promotion Business
Leap forward in key areas of Asia

In order to realize the above, "expand and createbusiness through collaboration with other companies"
Becoming an indispensable presence
as a partner to our customers
Initiatives to address SDGs and make social contributions, strengthening of
human resource foundations, renewal of system infrastructure
Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

28

4-5ÿ Phase II Direction and Focal Points
Expansion of recurring revenue businesses- Accelerate expansion of current recurring revenue businesses
Assistive products rental wholesale business (Nursing Care)
On-site hospital services (Medical Care)
Hospital packaged rentals (Medical Care)- Develop new recurring revenue business menu utilizing sensing
technology, AI, IoT, etc.

Increase recurring sales
ratio in Japan to 45%

Advancement of Health Promotion Business- Expansion of sleep improvement products- Products and services contributing to extending healthy
life expectancy- Expand users by partnering with other companies

Increase Health Promotion
Business net sales toover 5 billion yen

Leap forward in key areas of Asia
- No. 1 share of medical beds in countries of operations- Increase production capacity to support increase in numberof beds sold
- Aim for CAGR 10% in sales

Increase overseas net sales
to 15 billion yen

Accelerate speed of expansion of each focal point utilizing
partnerships and CVC
Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

29

4-6. Recurring Revenue Businesses (Rental Wholesale)
Workflow for assistive products rental wholesale (Paramount Care Service)

Storage

Maintenance

Disinfection

Assistive product manufacturers

Assistive product rental dealers

Disinfection/Cleaning

RepairInspection/Examination

Packing/Storage

Users

PARAMOUNT CARE SERVICE

Establishing large-scale maintenance centers to promote efficiency and torespond to expanding demand
Kita-Osaka Maintenance Center (opened in May 2022)

Atsugi Maintenance Center (opened in November 2022)

Location: Takatsuki City, Osaka Prefecture
Total floor area: 10,433m2

Location: Atsugi City, Kanagawa Prefecture
Total floor area: 9,712m2*The Company's largest maintenance andstorage facility*With the Chiba-Ohira Maintenance Center, there are twolarge-scale locations in the Kanto region

Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

30

4-7. Recurring Revenue Businesses (Hospitals and New Businesses)

Examples of on-site services for hospitals

Equipment management and repair work

Nursing assistant work

Concierge work

Developing a new recurring revenue business model
Utilization of Nemuri
SCAN

Skin electronics technology

Collaboration with othercompanies through CVC
Established a CVC on October 1
Will combine our resource with external technologies, know-how,and personal connections, etc. to create new synergiesùName
õ±óùkFund sizeÛ}
Operation period
Utilization of new sensor
technologies

PARAMOUNT
FundPARAMOUNTBEDBEDHealthcare
Healthcare Fund
50U×
5 billion yen
7.5~
7.5 years÷Ïß areas {vûÏÿûuÿ
Investment
Medical/nursing/healthÛ÷_ company SBI´óù¹øñóøj__
Operating
SBI Investment Co., Ltd.

Explore new schemes other thansimple selling

Accelerate expansion of current
recurring revenue businesses
Develop new recurring revenue
businesses
Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

Expand recurring revenue ratio in Japan
from 36% to 45%31

4-8ÿ Advancement of the Health Promotion Business
Two brands based on the know-how and technologies cultivated from medical and nursing care

INTIME

Active Sleep App

Electric bed that can "transform" into a nursing care bed"Self-adjusting for sleep" / sleep scoring

New INTIME1000 Series

Image of the INTIME 2000i Series(Bordeaux red / equipped with sleep measurement

Links a sleep sensor to a smartphone app

sensors)- Relaxed posture- 1 million type of firmness adjustment- "Self-adjusting for sleep"- Scores daily sleep condition

Image of the INTIME 3000 series- Snoring measurement(Cube type / classy dark)etc.

Develop products and services that makesleep more comfortable, designed aroundthe bed, which is the centerpiece of the
bedroom
Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

Expand Health Promotion
Business sales to 5 billion yen
324-9ÿ Leap Forward in Key Areas of Asia
Focus on China, India, and Indonesia
Situation in each country (FYE 3/2022, Paramount Bed Holdings estimates)
China

Population: approx. 1.4 billion Number of hospital beds: approx. 7 million
Annual number of beds sold in the market: approx. 370,000 units (electric ratio: 9%)
Our electric bed market share: approx. 16%

India

Population: approx. 1.4 billion Number of hospital beds: approx. 1.24 million
Annual number of beds sold in the market: approx. 130,000 units (electric ratio: 20%)
Our electric bed market share: approx. 20%

Indonesia

Population: approx. 270 million Number of hospital beds: approx. 330,000
Annual number of beds sold in the market: approx. 23,000 units (electric ratio: 30%)
Our electric bed market share: approx. 70%
ïNo. 1 market share of medical beds incountries of operations, focusing on
China, India, and IndonesiaïIncrease production capacity to support
increase in number of beds soldïAim for CAGR 10% in sales
Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

Increase overseas net sales
to 15 billion yen
33

4-10ÿ Phase II Performance Targets (Overseas)ÿUnit: millions of yenÿConsolidated overseas net sales

FYE 3/2023
ResultFYE 3/2027
Targetvs. FYE 3/2023
Result8,174

13,500+65%

Indonesia

2,874

4,900

+70%

China

3,029

4,600

+52%

Other Asia

2,269

4,000

+76%

Outside of
Asia

1,096

1,500

+37%

Total

9,271

15,000+62%

Overseas sales
ratio

9.4%

12.5%

-

Asia

Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

34

4-11ÿ Phase II Performance Targets (by Business)
Net sales by business(Unit: millions of yen)

FYE 3/2023
ResultFYE 3/2027
Targetvs. FYE 3/2023
ResultMedicalBusiness

37,29149,600+33%

Nursing Care
Business

57,521

62,900+9%

HealthPromotion
Business

2,517

5,500

+119%

Other

1,678

2,000

+19%

Total

99,009120,000+21%

Operatingprofit13,451

17,000+26%

Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

35

4-12ÿ Cash Allocation Plan
Priority allocation to recurring asset investments, venture investments, etc.
Aiming to strengthen ties with customers and shift to a recurring revenue business mode
Cumulative total for
FYE 3/2022 ~ FYE 3/2026
Cash In

Cash Out
Shareholder return
20 billion yen~
Income tax
20 billion yen~

EBITDA
115 billion yen<

Shareholder return
Dividend on equity (DOE) ratio of 2.7%, dividend payout ratio of 30%
as a guide
Flexible additional return considering market environment, etc.

Growthinvestment
Capital investment
15 billion yen~

Growth investment
Recurring assets to strengthen ongoing relationships with customers
Enhancement of production facilities and maintenance equipment for rental
assistive products/Renewal of system infrastructure
Active development of partnerships with other companies, including
establishment of CVC for business development

Recurring assets,
CVC establishment,
etc.
70 billion yen~

Allocation of
cash on hand
10 billion yen~
Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

ÿStance on level of cash on handÿ
Approx. 3 months of working capitalÿ

Maintain business operation system capable of continuously
providing products and services that contribute to medical
and nursing care even in the event of a disaster36

5-1. Topics
New product for the health promotion business
Released a full model change of the mainstay INTIME 1000 bed
for general home-use for the first time in seven yearsïElectric bed for general home-use that transforms into a
care bed when needed with an attractive designïEnhanced convenience by adding functions and structuresthat are most requestedïOffers a total of 144 patterns depending on width, function
and design differencesïRelease in April 2023ïBed price starts at 158,000 yen (tax exempt)

Usage image of the new INTIME 1000

Adds an LED light and USB
port to the controller

Spacious base structure
facilitates passage by a robot
vacuum cleaner

Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

Optional small-item storagebox that can be usable evenwhen back raising37

5-2. Topics
Established a CVC fundCorporate Venture Capital Fund <PARAMOUNT BED Healthcare
Fund=Management company: SBI Investment Co., Ltd.
Founding date: October 1, 2022
Fund scale: 5 billion yen
Management period: 7.5 years
Investment areas: Medical care, nursing care, health promotionÿinnovative technologies and services in the healthcare field)
Web site: https://paramountbed-healthcarefund.jp/

Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

38

5-3. Topics
Accelerate sales of the Smart Bed System
Contribute to promotion of work style reforms for medical staffïThis system, built around a bedside terminal, by linking vital signs measurement devices with a communications
function, electronic medical records, terminal devices for staff, various sensors, and other ICT equipment, contributes
to easily input work, information sharing, night-time monitoring, and data utilization.
ïCumulative number of hospitals with deployments: 32 hospitals (as of end-March 2023)

Bedside terminal

Nemuri SCAN (body movement sensors)

Staff station terminal

Vital signs measurement device witha communications function

Ability to confirm the state ofpatients on a large screen
Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

39

Notice

The performance forecasts provided in this document have been preparedbased on the information available as of the presentation date.
As such, actual performance may differ from the forecasts due to various
factors.
Information regarding products and services (including those underdevelopment) described in this material is not intended for advertising
purposes.
Monetary amounts in this document have been rounded down.
The percentages shown in the % to Budget and YoY Change figuresindicate change using + and - symbols, and are rounded to the nearest
place.

Copyright (C) 2023 Paramount Bed Holdings CO.,LTD. All Rights Reserved.

40