37thBusiness Report
From April 1, 2018 to March 31, 2019

Securities code: 7817

PARAMOUNT BED HOLDINGS CO., LTD.

Top Message
Top Message

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

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 37th term (from April 1, 2018 to March 31,2019).

Business Results for the Fiscal Year underReview
With regard to consolidated business results for the fiscal year
under review, net sales came to ￥80,088 million (up 3.7%year on year). This was the result of solid performance in therental wholesale business, where there had been concern
about the impact of the setting of upper limits on prices forassistive products rental, as well as in the domestic sales andmaintenance business for medical facilities, etc.
In terms of profits, in addition to upfront investments innew businesses, there was also increase in personnel andadvertising expenses, etc., resulting in an operating income
falling to ￥10,580 million (down 0.8% year on year). At theordinary income level, the gain on investments in investment
partnership was not as large as it had been in the previous
fiscal year, leading to ordinary income of ￥10,923 million(down 10.2% year on year). Net income came to ￥6,704
million (down 19.9% year on year), due to the recording of an
extraordinary loss associated with a loss on valuation of sharesof subsidiaries.
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 an annual
dividend of ￥100 per share for the next fiscal year.

President and Chief Executive Officer

Kyosuke Kimura

Future Business Development
The Paramount Bed Group previously announced a mediumterm business plan “( 2020 Plan”) for the five years leading up
to FY2020 (the fiscal year ending March 31, 2021), for which
the final-year targets are ￥100.0 billion in consolidated net
sales and ￥14.0 billion in consolidated operating income. The
key policies of the“2020 Plan”are“Maintaining and expanding
existing businesses,”“Accelerating the expansion of overseas
businesses,”and“Strengthening R&D and create businessmodels serving as“buds”of new growth,”which were set withthe goals of achieving sustainable development and increasing
corporate value.
In terms of new businesses, we launched a new“Active Sleep”
brand for the areas of sleep and health. The“Active SleepBed,”which is Japan’s first such product to implement an“automated sleep system,”went on sale on June 1, 2019. Byequipping the bed with sensors, the angle can be changed
automatically to adapt to sleep conditions, making it easier to
get to sleep and facilitating a pleasant awakening. In addition,
we will focus on expanding a range of products and services,
including the“Smart Bed System”and“Nemuri SCAN,”which
are attracting attention as a means of dealing with labor
shortages in medical and care facilities.
Going forward, we humbly ask our shareholders for theircontinued understanding and support.

Topics
Topics▶
▶ANA adopted Handiwalk
walking aid for use in airports▶
▶Relocation of ParamountBed Sendai branch▶
▶Launch of Everﬁt C3
medical and nursing-caremattress▶
▶Launch of rento Series ofbeds for in-home nursingcare▶
▶Launch of semi-double size
INTIME 1000 Series
electric bed for generalhousehold use

Apr.

MayJun.
Jul.

Sep.
Oct.

▶
▶Henn-na Hotel Huis Ten
Bosch introduced mattresses
made by Paramount BedDec.

▶
▶Announcement of new
Active Sleep brand

Nov.

2019

The Espacia Series of super-low-height electric beds,
incorporating improved connections to monitoring support
systems, won a Good DesignAward in 2018. One of the areas
considered particularly
advanced was the ability tointegrate monitoring for falls
from the bed with themonitoring of sleep conditions
using body motion sensors.
Espacia Series

Launch of cococia Riraku medical
and nursing-care air mattressAug.

▶
▶Established Signtle Inc., ajoint venture with Professor
Someya of the University ofTokyo▶
▶Relocation of East-Tokyo
Branch of Paramount CareService2018

Espacia Series bed for hospitals
and care facilities wins Good Design Award

The cococia Riraku mattress incorporates a completely
automatic bedsore-prevention system, whereby theweight and condition of the user is detected by switching
it on, and the ﬁrmness is adjusted automatically. By using
the optional cable, an electric
power supply can be takenfrom the electric bed itself. By
making the power cord
unnecessary, the area aroundthe bed can be kept clear.
cococia Riraku (ventilated type)

Launch of Waltwin sole ofthe foot pressure sensor for rehabilitation useJan.

Feb.
Mar.

This product, which can display and record in real time
the pressure exerted on the sole of the foot while
walking, enables more eﬃcient walking practice(rehabilitation) for those whose ability to walk has beenaﬀected by strokes or orthopedic issues, or conditions
such as Parkinsonʼs. The visualization of the walking
process facilitates simpler sharing of information between
diﬀerent medical roles, such as
doctors and nursing staﬀ, and isexpected to provide support insuch areas as the selection ofassistive products, and theConceptual illustrationof Waltwin in use
creation of nursing care plans.

Special FeatureSpecial Feature[New Product]‌ “Automated Sleep System”Bed- Full-scale entry into the sleep tech market On June 1, 2019, we launched the“Active Sleep Bed,”an electric bed for general household use. By equipping the bed
with body motion sensors, the angle can be changed automatically to adapt to sleep conditions, making this Japan’s first“automated sleep system.”This product automatically changes the angle of the bed to adapt to sleep conditions, such as
when going to sleep, when deeply asleep or when waking up. For example, as the preset wakeup time draws near, thebed determines a point at which sleep has become shallow and automatically raises the upper part of the bed at theoptimal time in order to facilitate a pleasant awakening. Moreover, using a special smartphone app, the position of thelower back and legs can be moved easily for greater comfort, and sleep quality can be graded.
The“Active Sleep Mattress,”which went on sale at the same time as the“Active Sleep Bed,”incorporates internal air
cells whose pressure can be adjusted by area, allowing the user to choose their preferred level of firmness from a million
different combinations.

Conceptual illustration of“Active Sleep Bed”in use.
By raising the angle of the upper part of the bed slightly, respiration also becomes easier,making it easier to fall asleep.

Using a special app, sleep quality can be graded, and bed
operations and settings can be performed.

Pricing for the“automated sleep system”bed begins at ￥240,000 (excluding tax / price is for“Active Sleep Bed”and“Active Sleep Analyzer”body motion sensors bundle / separate mattress required). Pricing for the“Active SleepMattress”begins at ￥190,000 (excluding tax). In addition to stores directly operated by Paramount Bed, these products
can be purchased at participating department stores and furniture stores.

Financial Review
Consolidated Financial Statements
Consolidated Balance Sheet (Summary)

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

Previous
Fiscal Year

Current
Fiscal Year

Item

AmountAmountTotal current assets

78,651

81,212

Total non-current assets

60,52462,794

Total assets

139,176

144,006

Total liabilities

36,37335,764

Total net assets

102,803108,242

Total liabilities and netassets

139,176144,006

(Millions of Yen)

Previous
Fiscal Year

Current
Fiscal Year

Item

AmountAmountNet sales

77,22080,088Operating income

10,661

10,580Ordinary income

12,161

10,923

Net income

8,366

6,704

(From April 1, 2017 to (From April 1, 2018 toMarch 31, 2018)
March 31, 2019)(As of March 31, 2018) (As of March 31, 2019)

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

Previous
Fiscal Year

Current
Fiscal Year

AmountAmount27,64434,435

9,967

7,914

(493)

(2,464)(2,621)(2,842)

(60)

26

6,791

2,633

34,43537,069(From April 1, 2017 to (From April 1, 2018 toMarch 31, 2018)
March 31, 2019)

Item

Cash and cash equivalents
at beginning of year
Cash flows from operating
activities
Cash flows from investing
activities
Cash flows from financing
activities
Effect of exchange rate change
on cash and cash equivalents
Increase in cash and cash
equivalents
Cash and cash equivalents
at end of year

Website Information
PARAMOUNT BED HOLDINGS IR

SearchFor moredetailedfinancialinformation,please referto the various
materials madeavailable on
the Company
website.

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

ConsolidatednetsalesbyproductBeds¥25,502million
31.9%

Other

¥13,167million
16.4%

Parts, etc.

¥3,778million
4.7%¥80,088
millionRentalMattresses¥4,847million
6.1%¥19,297million
24.1%

Ward Equipment

Medical Equipment¥7,464million
9.3%¥6,031million
7.5%

Main Companies of the Paramount Bed Holdings GroupNetwork❶PARAMOUNT BED HOLDINGS CO., LTD.
●
Consolidated subsidiaries Non-consolidatedin Japansubsidiaries in Japan❷Paramount Bed Co., Ltd. ●●❻KP Service Co., Ltd.
❸Paratechno Co., Ltd.
●
❹Paramount Care Service Co., Ltd.
●❺CS Amenity Support Co., Ltd.
●Consolidated subsidiaries overseas❼Paramount Bed Asia Pacific Pte. Ltd.
●❽PT. Paramount Bed Indonesia●❾Paramount Bed (China) Co., Ltd.
●

❾●

⓫●
❿
●

Non-consolidated subsidiaries overseas❿Paramount Bed (Thailand) Co., Ltd.
●
⓫Paramount Bed India Pvt. Ltd.
●
⓬Paramount Bed Mexico S.A. de C.V.
●
⓭Paramount Bed Vietnam Co., Ltd.
●
⓮Paramount Bed do Brasil Ltda.

❶●●
❷❸●●
❹●❺❻
●

⓬●
⓭●

❼●
❽●
⓮●*On April 1, 2019, Paratechno Co., Ltd. implemented an absorption-type merger of CS Amenity Support Co., Ltd.

Financial Highlight (Consolidated)
Financial Highlight

Key Points for the Fiscal Year under Review
・Solid performance in the rental wholesale business for assistive products, and thesales and maintenance business for domestic medical facilities
・Recording of expenses associated with new“Active Sleep”brand, increases inpersonnel expenses and declines in gain on investments resulted in lower ordinary
incomeNet sales

Ordinary income¥80,088 million
80,000¥10,923 million(Millions of yen)

100,000

77,220Net income(Millions of yen)

15,00012,16180,08810,00060,00010,923¥6,704 million(Millions of yen)

10,000

7,500

8,366
6,704

5,000
40,00034,79536,759

5,000

5,769

5,287

20,000
0

37th

36th

Basic earnings per share300

150,000(Millions of yen)
139,176

144,006

143.96100

123.52(Millions of yen)

120,000

102,803108,24280,000100,000

223.67200

37th¥108,242 million
100,000

297.2436th

Net assets¥144,006 million
(Yen)

400

37th

Total assets¥223.67

3,693

00

36th

3,975
2,500

60,00040,00050,00020,000

00

36th

37th

0

36th

37th

36th37th
Full year

Half year

Share Information (AsofMarch31,2019)

Company Information (AsofMarch31,2019)

Stock Info

NumberofSharesAuthorized

126,000,000

NumberofSharesIssued

30,877,487

NumberofShareholders

8,290

PrincipalShareholders

Nameofshareholders

Shareholders’investment
intheCompany
Numberof
sharesheld

Shareholding
ratio(Thousands of shares)(%)

CTOK Co., LTD.

2,821

9.4

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

2,231

7.4

LLAGE WOOD Co.

2,073

6.9

NIU VALLEY CAPITAL LLC

1,379

4.6

SSBTC CLIENT OMNIBUS ACCOUNT

1,262

4.2

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

957

3.2

Kenji Kimura

912

3.0

Kyosuke Kimura

911

3.0

Michihide Kimura

911

3.0

Japan Trustee Services Bank, Ltd. (Trust Account)

864

2.9

* The shareholding ratio is calculated after deducting the shares of treasury stock.

DistributionofShares
Individuals and others 23.4％
Securities companies
0.5％
Treasury stock
2.6％
Financial institutions 23.8％

Foreign companies, etc. 27.1％
Other domestic companies 22.6％

Distribution
by Type ofShareholder

500,000 or more 60.7％
Less than 1,0004.1％
1,000 to 4,999

3.1％

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

1.5％
5.2％

50,000 to 99,999

4.7％

100,000 to 499,999 20.7％

Company InfoCompany 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
3,224 (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 the ownershipof 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 anextraordinary 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 noticehttps://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 TakebashiBuilding 6F)
Head Office, Tokyo Securities Transfer Agent Co., Ltd.
(Contact)
0120-49-7009
Handling operation is conducted in main branch and all domestic branches ofSumitomo 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]

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 Transfer
Agent Co., Ltd., which is the administrative organization for specialaccounts.
●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:+81-3-3648-1100(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.