38thBusiness Report
From April 1, 2019 to March 31, 2020

Securities code: 7817

PARAMOUNT BED HOLDINGS CO., LTD.

Top Message
Top Message

We extend our heartfelt thanks to our shareholders for their ongoing support.
The Company hereby provides reports in relation to the overview of businessand the financial results for the 38th term (from April 1, 2019 to March 31,2020).

Announcement Regarding Change of President and Chief Executive Officer
Effective April 1, 2020, former President and Chief Executive Officer Kyosuke Kimura became

Chairperson of the Company, and Senior Executive Director Tomohiko Kimura assumed officeas President and Chief Executive Officer. With this new management structure, the Company

is aiming for further business growth and enhancement of corporate value. Going forward, we
humbly ask for your continued support.

President and Chief Executive Officer

Tomohiko Kimura

Business Results for the Fiscal Year under Review

Future Business Development

With regard to consolidated business results for the fiscal year
under review, net sales came to ¥82,379 million (up 2.9% year
on year). This was the result of performances being generally inline with estimates for the product sales, maintenance, rental
wholesale, and overseas businesses, despite an increase inrequests to delay product deliveries at the end of the year
from medical facilities, nursing facilities, etc. taking measures
to prevent the spread of the novel coronavirus disease(COVID-19).
In terms of profits, operating income came to ¥9,906 million(down 6.4% year on year) due to increases in personnel andtransportation expenses, etc., as well as delayed deliveries,etc. caused by the impact of COVID-19. Ordinary income
came to ¥10,145 million (down 7.1% year on year), while net
income came to ¥7,043 million (up 5.1% year on year) due to adecrease in extraordinary losses, etc.
The Company paid a year-end dividend of ¥50 per share forthe fiscal year under review. As a result, in combination with
the interim dividend of ¥50 per share, the annual dividend
came to ¥100 per share.
From the perspective of stable and sustained returns toshareholders, the Company intends to pay interim and yearend dividends of ¥50 per share each, resulting in a distributionof profits of ¥100 per share for the next fiscal year.

Regarding the future outlook, there are concerns that these
extremely challenging conditions due to the effects of COVID-19
will continue. Workers in the medical and nursing-care fields
are working tirelessly around the clock due to the impact ofthe pandemic. We will support the front-line workers andcontribute to maintaining the medical and nursing-care systems
by continuing to provide products and services. Furthermore,
the Company places the highest priority on preventing
infections inside and outside the Company and ensuring thesafety of employees, and is swiftly taking appropriate measures
based on government and municipal policies.
Based on the new management structure, we formulated“Paramount Vision 2030,”which describes the type ofcompany we aim to be in ten years in 2030, and a newmedium-term business plan as the first phase for the three years
up to FY2022 based on that vision. The Vision is expressed as“Smiles for everyone from medical and nursing care to healthfield,”which indicates the Company’s new target of making
a contribution in everyone’s lives, including in the health fieldgoing forward, based on our skills and knowledge cultivatedover many years in the medical and nursing-care fields. In
addition, we will further enhance our approaches, such as ESGs,
for environmental issues and social contributions.
Going forward, we humbly ask our shareholders for theircontinued understanding and support.

Topics
Topics■Paratechno implemented
an absorption-type merger ofsubsidiary CS Amenity Support■Launch of new product“Active Sleep BED”
■Launch of“Trotto”video
system for rehabilitation use■Launch of new product“INTIME2000i”■Exhibited at H.C.R. 2019
(International Home Care &Rehabilitation Exhibition 2019)■Exhibited at CEATECinternational IT andelectronics exhibition

Launch of new product“Moovis”
2019Apr.

Jul.

A single unit of this wheeled
examination and treatment table
can be used as an examinationtable, stretcher and chair. By
eliminating the necessity ofmoving patients on and oﬀ of
diﬀerent tables for treatments
and examinations such as
endoscopic examinations, thisunit contributes to lowering therisk of the patient falling andreducing the burden on staﬀ.

Aug.

Making Sadashige Special Plywood a subsidiary

MayJun.

Sep.
Oct.
Nov.

■Launch of“Nemuri SCAN”
rental service

The Company made Sadashige Special Plywood Co., Ltd. (HeadOﬃce: Fuchu City, Hiroshima), which manufactures and sells
household equipment, furniture materials, etc., a subsidiary. Thiscompany’s strengths lie in its high design skills and processing
technologies that bring out the beneﬁts of natural wood. By creating
a synergistic eﬀect in the wooden furniture ﬁeld, the Company aims
to expand the sales of wood products to medical facilities, facilities
for the elderly, etc.

Launch of“Arius Series”acute care bedDec.
2020■Relocation of Head Oﬃce ofParamount Care Service“Moovis”(KC-240)

Jan.

Feb.
Mar.

This electric bed is equipped with features such as side rails that rise
together when raising the back section of the bed and high-accuracy
digital scales which are much in demand at ICUs and general acutecare wards. In addition to a minimum height of 30 cm, which makes
it easier to practice getting outof bed and perform othertypes of bedside rehabilitationthat are being emphasizedrecently, the bed is equippedwith a grip to use as a support
when standing up. TheCompany sought to achieve
usability and safety in acute“Arius Series”(KA-H7410B)
care wards.

Special FeatureSpecial Feature

Promoting Business Utilizing Data Through“Nemuri SCAN”
The Company is promoting business utilizing data through the use of“Nemuri SCAN,”a sleep monitoring sensor for
medical facilities, facilities for the elderly, etc. In March 2020, the Company concluded a business cooperation agreementwith Sompo Holdings, Inc., a major insurance company that also operates in nursing care and healthcare businesses. The
Company will introduce“Nemuri SCAN”for 18,000 beds at Sompo’s care facilities. In addition to collecting informationsuch as biological information, sleep information and movements on the beds, the Company will collect information that isclosely related to people’s life, such as the meals, medicine and daily activities of each person, to build a large database,and will jointly examine and analyze the physiological effects of meals, medicine, exercise, etc. In the future, the Company
aims to utilize this information base and analysis results to develop products and services that solve various social issues.
“Nemuri SCAN”has been receiving attention from the standpoint of reducing workload in nursing care, preventing
infections, etc., and sales in the fiscal year ended March 31, 2020 has seen a year-on-year increase of approximately 40%.
The Company launched a rental program in December 2019, and in May 2020 also started to offer a camera system thatallows visual monitoring. We are also promoting environmental improvements to support further growth in the future.

The condition of residents can be checked remotely using a computer or smartphone.

“Nemuri SCAN”(NN-1520)

Financial Review
Consolidated Financial Statements
Consolidated Balance Sheet (Summary)(Millions of Yen)

Previous
Fiscal Year

Current 
Fiscal Year

Item

AmountAmountTotal current assets

81,212

76,848

Total non-current assets

62,794

67,409Total assets

144,006

144,257

Total liabilities

35,76437,191

Total net assets

108,242

107,066

Total liabilities and net assets

144,006

144,257

Consolidated Statement of Income (Summary)(Millions of Yen)

Previous
Fiscal Year

Current
Fiscal Year

(From April 1, 2018 
to March 31, 2019)(From April 1, 2019 
to March 31, 2020)

Item

AmountAmountNet sales

80,08882,379Operating income

10,5809,906Ordinary income

10,923

10,145

6,704

7,043

(As of March 31, 2019) (As of March 31, 2020)

Net income

Consolidated Statement of Cash Flows (Summary)(Millions of Yen)

Previous
Fiscal Year

Current 
Fiscal Year

(From April 1, 2018 
to March 31, 2019)(From April 1, 2019 
to March 31, 2020)

Item

AmountAmountCash and cash equivalents
at beginning of year

34,43537,069Cash flows from operating
activities

7,914

9,087

Cash flows from investing
activities(2,464)(3,579)Cash flows from financing
activities(2,842)(7,475)

Effect of exchange rate change
on cash and cash equivalents

26(90)

Increase (decrease) in cash
and cash equivalents

2,633(2,059)Cash and cash equivalents
at end of year

37,06935,009Website Information
PARAMOUNT BED HOLDINGS IRSearch

For moredetailed financial
information, pleaserefer to the various
materials madeavailable on theCompany website.

https://www.paramountbed-hd.co.jp/ir

Financial Review

ConsolidatednetsalesbyproductBeds¥24,091 million

Other

29.3%

¥15,013 million

Parts, etc.

18.2%

¥3,614 million¥82,379
million

4.4%

Rental¥21,201 millionMattresses¥4,834 million

5.9%

25.7%

Medical Equipment

Ward and Residential Equipment

7.4%

9.1%

¥7,534 million¥6,088 million

Main Companies of the Paramount Bed Holdings Group
Network❶PARAMOUNT BED HOLDINGS CO., LTD.
●
Consolidated subsidiaries
Non-consolidated subsidiaries
in Japanin Japan❷Paramount Bed Co., Ltd.
●❻KP Service Co., Ltd.
●
❸Paratechno Co., Ltd.
●
❹Paramount Care Service Co., Ltd.
●
❺Sadashige Special Plywood Co., Ltd.
●

❾●

●
●

Consolidated subsidiaries overseas❼Paramount Bed Asia Pacific Pte. Ltd.
●❽PT. Paramount Bed Indonesia●❾Paramount Bed (China) Co., Ltd.
●Non-consolidated subsidiaries overseas●Paramount Bed (Thailand) Co., Ltd.
●Paramount Bed India Pvt. Ltd.
●Paramount Bed Mexico S.A. de C.V.
●Paramount Bed Vietnam Co., Ltd.
Paramount Bed do Brasil Ltda.

❶●●
❷❸●●
❹●❺❻
●

●
●

❼●
❽●
●

Financial Highlight (Consolidated)
Financial Highlight

Key Points for the Fiscal Year under Review
・Net sales increased 2.9% year on year due to solid performance in the rental wholesale
business for assistive products, and the sales and maintenance business for domestic
medical facilities
・Operating income fell 6.4% year on year due to increases in personnel and transportation
expenses, etc., as well as delayed deliveries, etc. caused by the impact of the novel
coronavirus disease (COVID-19)
Net sales

Operating income

82,379 million

9,906 million¥

80,00080,08882,37936,75938,952

7,043 million¥(Millions of yen)

100,000

Net income¥(Millions of yen)

12,000

10,580
9,000

9,906

(Millions of yen)

8,000

7,043

6,704
6,000

60,0006,000
40,000

4,868

0

38th

37th

Basic earnings per share

236.41

144,257 million

100

223.67123.52150,000(Millions of yen)
144,006

144,257

107,066 million¥(Millions of yen)

120,000
100,000

236.4138th

Net assets¥(Yen)

300

3,450

37th

38th

Total assets

¥

3,693

00

37th

4,000

2,000

3,000

20,000200

4,940

108,242

107,066

37th

38th

80,000100,000

60,000114.7840,00050,00020,000
00

37th

38th

0

37th

38th

Full year

Half year

Share Information (AsofMarch31,2020)

Company Information (AsofMarch31,2020)

Stock Info

NumberofSharesAuthorized
NumberofSharesIssued
NumberofShareholdersPrincipalShareholders
Nameofshareholders

126,000,000
30,877,487
8,172
Shareholders’investment
intheCompany
Numberof
sharesheldShareholding
ratio(Thousands of shares)

CTOK Co., LTD.

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

NORTHERN TRUST CO. (AVFC) RE FIDELITY FUNDSNIU VALLEY CAPITAL LLC

Japan Trustee Services Bank, Ltd. (Trust Account 9)
Michihide Kimura
Kenji Kimura

Kyosuke Kimura

Tomohiko Kimura

2,821
2,343
2,073
1,879
1,379
1,077
911
907
907
873

9.7
8.1
7.1
6.5
4.7
3.7
3.1
3.1
3.1
3.0(%)* Although the Company holds 1,814,533 shares of treasure stock, the shareholding ratio
is calculated after deducting the shares of treasury stock.

DistributionofShares
Individuals and others
Securities companies
Treasury stock
Financial institutions

23.6%
0.3％
5.9％
22.3％
Distribution
by Type ofShareholder

Foreign companies, etc.
Other domestic companies

25.5％
22.4％

500,000 or more
Less than 1,000

61.1％
4.0％

5,000 to 9,999
10,000 to 49,999

1.2％
5.6％

1,000 to 4,999

50,000 to 99,999

2.8％
22.1％

CompanyNamePARAMOUNT BED HOLDINGS CO., LTD.
HeadOffice
2-14-5 Higashisuna, Koto-ku, Tokyo 136-8671, Japan
Established
October 1982
Capital¥4,274 million
NumberofEmployees
3,494 (Consolidated)
BusinessLines
Control or management of operating companies involved in the manufactureand sale of beds and mattresses, hospital furniture, medical equipment, etc.
for medical and nursing care environments; services such as the inspection,maintenance, disinfection, and maintenance leases for beds and mattresses;
the rental wholesale business for assistive products; etc. through theownership of shares or through an equity interest.

Shareholder MemoBusinessyear
From April 1 of each year to March 31 of the following year
Ordinarygeneralmeetingofshareholders
June of each year
Recorddateoftheabove
March 31 of each year
When necessary, other record dates will be determined on an
extraordinary basis of the prior notification.
Finaldateforshareholderstoreceivedividend
Year-enddividend March 31 of each year
Interimdividend
September 30 of each year
MethodofpublicnoticeElectronic public notice will be made. However, if it is impossible to publish
public notices electronically because of unavoidable circumstances, thepublic notices shall be made by publication in“The Nikkei”newspaper.
The Company’s URL for public notice https://www.paramountbed-hd.co.jp
Shareholderregisteradministrator
3-11 Kandanishiki-cho, Chiyoda-ku, Tokyo (NMF Takebashi Building 6F)
Tokyo Securities Transfer Agent Co., Ltd.
Handlingoffice
3-11 Kandanishiki-cho, Chiyoda-ku, Tokyo 101-0054(NMF Takebashi Building 6F)
Head Office, Tokyo Securities Transfer Agent Co., Ltd.
(Contact)
0120-49-7009
Handling operation is conducted in main branch and all domestic branchesof Sumitomo Mitsui Trust Bank, Limited.
Mailingaddress(Contactaddress)
2-8-4 Izumi, Suginami-ku, Tokyo 168-8522
Operations Center, Tokyo Securities Transfer Agent Co., Ltd.
(Contact)
0120-49-7009[Procedures Related to Shares]

3.2％

100,000 to 499,999

Company Info

Distribution
by Number ofShares Held

●Applications for change of address or for purchase demands of sharesless than one unit.
Please send such notifications or applications to the securities company
where your account is held. However, for procedures related to sharesregistered to a special account, please apply to Tokyo Securities TransferAgent Co., Ltd., which is the administrative organization for special accounts.
●Applications for payment of dividends payable
These are handled by Tokyo Securities Transfer Agent Co., Ltd., which isthe shareholder register administrator for shares of the Company.
◦Contact
TEL:+81-3-36480(Main) FAX:+81-3-3648-5781
BusinessHours:MondaytoFriday,9:00a.m.to5:20p.m.
*Excludesnationalholidays,summerholidays,andnewyearholidays.