Integrated Report 2023

01

Integrated Report 2023

Reporting Coverage
Paramount Bed Holdings Co., Ltd. and consolidated subsidiaries

Reporting Period
April 2022–March 2023
In order to provide up-to-date and important information, the report includes information before
and after the above time period.

Guidelines Referenced“International Integrated Reporting Framework” recommended by the International Integrated Reporting Council“Guidance for Collaborative Value Creation” issued by the Ministry of Economy, Trade and Industry

Editorial Policy
This report has been compiled with the primary objective of emphasizing the improvement of corporate value through thevalue creation process and to promote understanding of the Paramount Bed Group’s business and initiatives, with ourshareholders and investors as the primary audience.
The information on products and services (including those under development) described in this report is not intended asadvertising or promotional purposes.

Cautionary Statement Regarding Forecasts
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.

02

Integrated Report 2023

Integrated Report 2023

CONTENTS
03

Prologue

26

Growth Strategy

58

Corporate Governance

27 2030 Goals and Roadmap

59 Corporate Governance

28 Progress in Phase I

61 Board of Directors,

29 Direction and Focus Points for Phase II

Audit and Supervisory Committee Members,

30 Financial Strategy of

Corporate Ofﬁcers

04 Corporate Principles, Statement,

the Medium-term Management Plan

66 Interview with the New External Director

Paramount Vision 2030

32 Medical Care Business

68 Risk Management

05 Message from the CEO

34 Nursing Care Business

70 Compliance

09 About the Paramount Bed Group36 Health Promotion Business

11 History of Paramount Bed

38 Paramountʼs Overseas Expansion

71

Corporate Data

72 Managementʼs Discussion and13

Value Creation

40

Capital Strategy

18 The Cultivated Strengths of the Paramount Bed Group41 6 Types of Capital

19 Business Model

42 Human Capital

20 FEATURE

45 Intellectual Capital

20 Smart Bed System™

46 Manufacturing Capital

22 Corporate Venture Capital (CVC)

48 Natural Capital

24 Value Creation Process

51 Social Capital

25 Materiality

52 Materiality Initiatives

Analysis of Financial Condition and
Results of Operation (MD&A)
74 Financial and Non-ﬁnancial Data
75 Corporate Information
76 Stock Information

Prologue
Integrated Report 2023

03

CONTENTS

Prologue

Value
Creation

GrowthStrategy

Prologue

CapitalStrategy

Corporate
GovernanceCorporate
Data

04

Integrated Report 2023

Prologue
CONTENTS

Corporate
Data

Smiles for Everyone from Medical and Nursing Careto Health Field

Corporate
GovernanceParamount Vision 2030

CapitalStrategy

as human, for human

GrowthStrategyStatement

Value
Creation

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

Prologue

Corporate Principles

05

Integrated Report 2023

Prologue
CONTENTS

Message from the CEO

conditions, such as serious personnel shortages due toa shrinking labor force as COVID-19 continues to spreadand populations grow older.
Since its foundation in 1947, the Paramount Bed Group has
contribution through company business.” However, ourpower alone is insufficient to solve social problems.
We must reduce the burden on all of the people involved

Corporate
Data

conducted business activities based on the idea of “social

Corporate
Governancethe increased demand for medical and nursing care andCapitalStrategy

nursing care workers giving their all every day under harshTomohiko Kimura

GrowthStrategy

I want to express the greatest respect for the medical andPresident andChief Executive Ofﬁcer

Value
Creation

Expressing gratitude for those involved in
medical and nursing care work

PrologueWe want to serve and support ourcustomers for the entirety of their lives
and make everyone smile with a wide
range of diverse services that only theParamount Bed Group can provide.

CEO MESSAGE

06

Integrated Report 2023

Prologue
CONTENTSof all “as humans” and “for humans,” and it is because ofthat the Group takes to heart as we work each day.

this that we are the company we are today.

Products and services developed to support
as many people as possible

became president in 2020, I upheld the future 10-year vision

services, we also provide support services within medicalcare, nursing care, and health promotion.

of “smiles for everyone from medical and nursing care tofacilities and patient satisfaction improvement support

We expanded from our original core business of manufac-

health field.”

services. Our Group undertakes work that does notturing and selling medical beds into the nursing care andThis is the Paramount Vision 2030.

require nursing qualifications, such as preparing beds

health promotion fields, addressing customer needs andAbout a year before I took office as president, I set up a

and managing equipment, and helps to support nurses

social problems.

project team to formulate and discuss the vision.

so that they can focus on their important, essential work.

As per the wording of our statement, “as human, forThis vision has incorporated the many ideas expressed

We also provide environmental improvements to ensure

human,” before taking a stance as a business, Paramountin “smiles for everyone.” For example, many people are

greater satisfaction of patients using private rooms. A

Bed Group has always considered what we can do firststruggling due to increasing burdens placed on staff andpatient who ends up in a sparsely decorated, plain whitepatient families in medical and nursing care settings as

room despite choosing to pay extra for a private room ina result of the shortages of workers. We not only want

addition to regular medical fees simply cannot feel goodto ensure satisfaction for the users of our products, but

about their environment. Considering this, we aim to con-also support the other people around them. Also, we

tribute to improving satisfaction by making improvements

fundamentally want people, regardless of gender or age, toto the floor, wall, ceiling, furniture, and so on, to make thecontinue living healthy lives without any need for medical

hospital room feel more like a hotel room. We can evenor nursing care. Furthermore, we want to contribute to theprovide a dedicated concierge to handle detailed needs

lives of all people regardless of nationality, race, etc. We

and requests. Also, we provide schemes to minimize any

are constantly developing and improving our products andadditional burden on hospital management from the fees

services in order to become a company that can provide

for these renovations and changes. The initial fees are not“smiles for everyone.”overly burdensome, the reputation of the hospital rooms

Corporate
Data

Our Group is currently operating three businesses: medical

Corporate
Governancedevelopment, manufacture, sales, rental, and after-sales

CapitalStrategy

down over the years in our Group since its founding, when I

GrowthStrategy

In our medical care business, in addition to product

Value
Creation

In order to further embody the ideas that had been passed

Aspirations of the Paramount Bed Group

Prologuewith medical and nursing care work. This is another mission

07

Integrated Report 2023

Prologue
CONTENTS

and mind. The improved performance after a night of higher

this, we also offer an integrated bedside care information

quality sleep is something that anyone can appreciate. A

system called the Smart Bed System™. It reduces thestudent can study better and actively participate in schoolburden of record-keeping work such as checking bodyclubs. An employee can improve productivity and come up

temperature or blood pressure, and uses a system thatwith good ideas. We aim to support improved performanceenables remote awareness of information—such as whenfor people all around the world.

patients are sleeping, awake, or out of the bed—to achieve
reduced burden.

Paramount’s distinctive values andan assertive approach to reforms
there were numerous uncertain factors in economic

care facilities and assistive product providers. By having

trends such as currency fluctuations, high costs for raw

the Group take on the burden of shipping, collecting,materials, energy and shipping, shortages in the supply of

disinfecting, maintaining, and storing, we reduce the burden

semiconductors and other components, and the situation

on service providers, and we provide safe and reliable

in Ukraine, we set new record highs for both sales andproducts in a timely fashion. In 2022, we opened two new

operating income. These were our third new highs for alarge-scale maintenance centers. We are working to further

third consecutive year. This is proof that we can do even

improve our services. We are also making great efforts

more to help and support our customers when they are

toward developing original products to suit on-site needs in

faced with difficulties. I think that this is a result of beingorder to ensure user satisfaction.

able to implement our Group strengths of our “one-stop

In the health promotion business, we are developing,solution system,” “customer base,” and “ability to turn amanufacturing, and selling products for people who do not

human touch into value.” We are closely communicating

require medical or nursing care services. Sleep is importantwith a large number of stakeholders and making use of

CorporateDatament, manufacture, sales, rental wholesale, etc., for nursing

Corporate
GovernanceIn the fiscal year ended on March 31, 2023, although

CapitalStrategy

In the nursing care business, we carry out product develop-

GrowthStrategy

improved staff’s work efficiency, mistake prevention, andValue
Creationfor recovering from daily fatigue and refreshing the bodyThat kind of positive growth cycle is created. Along with

Prologue

improves, and more patients come to the hospital.

08

Integrated Report 2023

Prologue
CONTENTS

sales to recurring revenue, putting full efforts into our healthsupports taking on new challenges. By partnering withpromotion business that is on the way, enhancing overall

start-up companies holding innovative technology andemployee development, and more.

outstanding services that will create the future of theI have two key cultural ideals. The first is a “culture withhealthcare field, the Group gains fresh new perspectives

thorough communication.” An outstanding organizationand energy. I hope that we will generate business synergy

must have and be built from mutual understanding andand create new value while mutually sharing information.

relationships of trust. When we have employees withenough. I always work to convey that “the important thingGrowing while increasing our social
contributions

understood it.”a company that can more fundamentally achieve the idea

think that continuing it in a completely honest way is true

The other ideal is a “culture that encourages challenges.”of “social contribution through company business” thatto the Paramount Bed Group, and it is a merit that I want

While we are currently the No. 1 in domestic market share

we have valued since our founding. Furthermore, we haveto continue to value going forward.

for medical and nursing care beds, in recent years an

declared our 10-year vision of “smiles for everyone fromOn the other hand, there are also things that we must

atmosphere of wanting simply to protect that position has

medical and nursing care to health field” as our Paramountchange. By advocating the Paramount Vision 2030, we

sometimes been noticeable. In order for the Paramount Bed

Vision 2030. These convey the strong commitment that thehave substantially increased our Group stakeholders.

Group to grow in the future, I would like to have a corporate

Group will serve and support our customers for their entire

It is no exaggeration to say that every person alive is aenvironment that says, “Please take on many challenges,”

lifespan as part of the social infrastructure. All employees

stakeholder. In order to more fundamentally personify “as“Taking on new challenges often comes with failures. But

are strongly aware of this significant responsibility, andhuman, for human,” our organization must evolve.

nothing is truly a failure if you learned something,” “Evenwill do everything possible to value our connection to all

To do this, we will be putting special effort into “change injust taking on a new challenge is something great,” andstakeholders.

corporate culture.” We recognize the pivotal role of “change

applauds people for taking on challenges.

I would like to sincerely ask all of our valued shareholders

in corporate culture” in every aspect, including future issues

Also, corporate venture capital (CVC), cofounded withand investors for their unwavering, continuous support.

CorporateData

on-site voices in product development and services. I

Corporate
Governance

The Paramount Bed Group has gradually transformed into

CapitalStrategy

is not how something was said but how the other party

GrowthStrategy

diverse values, simply increasing conversation is not

Value
Creation

SBI Investment Co., Ltd., is an activity that leads to andPrologueand priority points such as transitioning from sellout-style09

Integrated Report 2023

Prologue
CONTENTS

About the Paramount Bed Group

Prologue

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 contribute to society throughcompany business and sustainably increase corporate value.

[Holding company]

Paramount Bed Holdings Co., Ltd.

Three Businesses

Medical Care Business

Paramount Bed Co., Ltd.
Manufacture and sale of medical and nursing
care beds, mattresses, hospital furniture, andmedical equipment

Paramount Bed Asia Paciﬁc Pte. Ltd.
Paratechno Co., Ltd.
Provision of after-sales services for andmaintenance leasing of the Group products,
on-site services, and other services

Rental wholesale business that rents out a varietyof assistive products to rental service providers

No.1

domestic market share*
environment for users and operational efficiency of nursing
in bed sales and rentals andcare providers through sales and rentals of a wide range ofmonitoring support systems
assistive products for nursing care facilities and home care

Health Promotion Business

Rapid growth

Supporting healthier and more personalized lifestyles withapprox.

products and services that help people get better sleep

18%

increase YoY*Estimated by the Company based on annual sales results

Corporate
Data

Paramount Care Service Co., Ltd.

Contributing to the improvement of the nursing care

Corporate
GovernanceRegional HQ company

Nursing Care Business

CapitalStrategy

products and services for medical institutions

No.1

domestic market share*
in bed sales

GrowthStrategy

Supporting patient care and hospital operations through

Value
Creation

Major Group Companies

10

Integrated Report 2023

Prologue
CONTENTS

About the Paramount Bed Group

Prologue

Financial and Non-ﬁnancial Highlights

Operating income

million yen

9.6% increase YoY

13,452

million yen

9.0% increase YoY

Dividends

59

yen per share

3,436

million yen in total

7.4% increase YoY

GrowthStrategy

99,009Value
Creation

Net sales

CapitalStrategy

locations2factories

Paramount Bed (15 locations)Paramount Care Service (79 locations)
Paratechno (13 locations)10locations4factories

Southeast Asia, China, India,
Central and South America, etc.

Number of employees(consolidated)

3,946

名

Corporate
Data

107

Overseas locations

Corporate
GovernanceDomestic locations

11

Integrated Report 2023

Prologue

We will continue providing reliable services to ensure that we remain acompany needed by society in the future.

With electric beds already being used for medical
purposes in parts of the United States, foresaw the
future need for them in Japan. Development was
successful as a result of ongoing research from 1960.

1968
Corporate
Governance

Hospital construction rush

Growing needs for medical beds

top manufacturer in Japan1970

A new large-scale factory is built in Chiba

Foreseeing future increases in hospital and hospital
bed numbers, took the initiative to build a factoryfor mass production. Purchased a 25,000 m2 site fora large-scale modern factory that was mechanized
and streamlined, and responded to demand such as
the rush to construct new university hospitals.

Established the Trade Department
and began our global businessDistributed catalogues in English around the world.
Gradually saw results, expanding exports to morethan 20 countries by around 1974.

Corporate
Data

Establishment of a position as the

Globalization

Establishment of a mass production
system with integrated production

CapitalStrategy

1966

Japanʼ s ﬁrst electric bed is developed

GrowthStrategy

Manufactured beds which were in short supply at
medical institutions after the war. Scrap metal frombeds collected from hospitals as metal for the war
effort was reused.

Value
Creation

1960

Kimura Shindai Seisakujo, Ltd. is founded

1962

Prologuesociety through the business and abottom-up approach to the management

Medical Care Business

1950

Corporate culture of contributing to

1960s-and health promotion, and have continuously led the industry for many years.

1947

1940sPostwar recovery

We have now expanded into three businesses of medical care, nursing care,

CONTENTSHISTORY
PARAMOUNT BED

We have always considered social issues and thought about people.

Integrated Report 2023

Prologue

1980

Facilities for elderly care are developed

Expansion of the nursing care1990

business to respond to the aging

The industryʼ s ﬁrst electric bed forhome care is developed
Driving the expansion of the home care bed market,
and securing a position as the top manufacturer. “AuraBed” becomes short-hand for beds for home care use.

Establishment of product safety

2003

and quality improvement systems

Growing health consciousness

2010(strengthening of services andrecurring revenue business)

Acceleration of globalization

2023

The Company is transitioned to a holding company
with the aim of further accelerating growth.

2016

2020

The Smart Bed System™ is developed
The ICT-equipped home care bed“Rakusho Plus” is developed
Successfully achieving a smoothly rising back, a
new version of the Rakusho series—the popular,
best-selling item since 1993—is introduced. It offersa feature for smartphone notification and can be
operated by a smartphone application.

An integrated bedside care information systemthat links various information devices and achieves
continuous, real-time monitoring. Contributed toincreasing work efficiency and reducing burdens
for medical workers.

Corporate
Data

2020

The Company is transitioned to aholding company

Corporate
GovernanceDiversiﬁcation of the business

The new “INTIME” brand offering quality sleep and healthis launched. Enters the health promotion field, a separate
field from the medical and nursing care fields. Gainsconsiderable attention with a full-page advertisement in
the Nihon Keizai Shimbun newspaper.

2011

CapitalStrategy

Shortage of nurses and caregivers

The “INTIME” brand for household use is developed

Changed its corporate name to Paramount Bed
Co., Ltd. When shares are listed publicly, along withestablishing a basic policy of secure and continuing
dividends, the Company decides to proactively workon shareholder returns.

GrowthStrategy

2000s-

Health Promotion Business

2000

Corporate name change and stock offering

Value
Creation

population

1987

Prologue

Growing needs for home care

1983

CONTENTS

1980s-

Nursing Care Business12

Value Creation
Integrated Report 2023

13

CONTENTS

Prologue

Value
Creation

GrowthStrategy

Value Creation

CapitalStrategy

Corporate
GovernanceCorporate
Data

14

Integrated Report 2023

Value Creation
CONTENTS

The kind of nursing care that helps people to live exactly how they like.

Value
Creation

The kind of medical care that enriches tomorrowʼs lifestyles.

Prologueas human, for human
Maintaining health so that medical and nursing care wonʼt be needed to begin with.

to keep people smiling throughout their entire lives.

We think about what must be done “for humans,” and we will continue helping our custom-

Corporate
Data

ers around the world.

Corporate
GovernancePutting “as humans” before as a business.

CapitalStrategy

Through our medical care, nursing care, and health promotion businesses, we are working

GrowthStrategyThis is the kind of society that we, the Paramount Bed Group, are aiming to achieve.

15

Integrated Report 2023

Value Creation
CONTENTS

Medical Care Business
Prologue

Aiming for faster recoveries and better
lifestyles for tomorrowʼ s patients andValue
Creation

medical workers

The global healthcare situation is experiencing increasing challenges year by year.
GrowthStrategyLifestyle diseases are increasing as populations grow older, and new illnesses andinfectious diseases are appearing.
Inequalities in access to healthcare in developing countries and increasing burdens
on medical workers as medicine become more advanced, etc.

CapitalStrategyFirst, we must ensure that patients can spend their time comfortably.
Furthermore, we facilitate faster patient recovery by improving the environment of

We are aiming for this kind of medical care, and supporting patients, medical
workers, and hospital operations.

Corporate
Data

Medical Care

Corporate
Governancemedical settings and ensuring that medical workers can work to their full potential.

16

Integrated Report 2023

Value Creationindividual to bring about more and

The worries and stress involved in nursing care are an issue affecting both

Value
Creationmore moments of joy

PrologueSupporting ways of life unique to each

CONTENTS

Nursing Care Businesscare workers and patients.
are not simple.

GrowthStrategy

The solutions to physical and mental fatigue, as well as ﬁnancial concerns,

Adding to this, the older population is rapidly increasing, but the younger
It is crucial to do more to decrease the burden on nursing care workers.

We are working to bring more small moments of joy to care workers andpatients alike.
nursing care.

Corporate
Data

Nursing Care

We are supporting patients, their families, and everyone involved with

Corporate
Governance

Words of gratitude come naturally, with smiles all around.

CapitalStrategy

generation and workers are shrinking.

17

Integrated Report 2023

Value Creation
CONTENTS

Health Promotion Businesshealthy lives, where there is little need for

Value
Creation

medical or nursing care.

Prologue

Aiming for a world where people leadWe think it would be ideal if there were no need to use our medical and nursing care

People must be aware of their own health and take preventative measures without

GrowthStrategy

products and services.

panicking when treatment or care becomes necessary.

Sleep is important for recovering from daily fatigue and refreshing the body and mind.
We are providing services that are only possible because we have been taking “sleep”
seriously since our founding in 1947.

Corporate
Data

Health Promotion

Corporate
Governance

Getting appropriate and fulﬁlling sleep is an important step toward health.

CapitalStrategy

We also play a role in achieving ongoing and lasting health.

18

Integrated Report 2023

Value Creation
CONTENTSThe Cultivated Strengths of the Paramount Bed GroupNot stopping at bed development and sales, we are also involved in everything from the development and sales of various products necessary in the healthcare
environment to hospital operations support.

We do this so that everyone̶patients, medical workers, nursing care workers, and more̶can live and work comfortably.
These are strengths that only the Paramount Bed Group̶having led the industry for many years̶can offer.

Customer base

Seamless connections
acrossthe GroupA completely uniqueindustry network

The ability to turn a humantouch into value

Our sense of mission to contribute to society
remains unchanged since our founding

We propose high-dimensional solutions address-

We have developed strong relationships of trust

The environment around our businesses is growing

ing customer needs and issues, from planning,over long years with medical institutions, medical

more diverse and complex with time. But by con-development, manufacturing, and sales andequipment dealers, nursing care facilities, assistive

tinuing to hold our unchanging principle of “social

rentals of products and services necessary for

products rental service providers and rental

contribution through company business” for overhealthcare environments, with beds as the main-

wholesalers, dealers in the medical care, nursing

75 years, we have been able to adapt flexibly. And

stay, to after-sales quality control, maintenance,

care, and health promotion businesses, and more.

based on this idea, in the future we will continue toand general follow-up. We have established a

We share needs that we might not notice alone

attend to each difficulty faced by medical settingssystem that can achieve one-stop provision.

and ideas that we might not think of alone, and weand users in order to be a company that society

work together to tackle social issues.

needs.

Corporate
Data

One-stop solution
systemCorporate
Governance03

CapitalStrategy02

GrowthStrategy01

Value
Creation

Furthermore, we are a one-stop service provider utilizing connections between Group companies, and we utilize voices in the ﬁeld to achieve quality improvement.

PrologueWe are pursuing true solutions to issues and continuing to expand our services.

19

Integrated Report 2023

Value Creation
CONTENTS

Business Model

Paramount Bed Co., Ltd.

dealers

Providing solutions forhealthcare environmentswith products and services

Paramount Bed Asia Paciﬁc Pte. Ltd.

with beds as the mainstay

・ Rental service providers
・ Rental wholesalers(Nursing care staff and users)of department
stores andfurniture stores

On-site opinions and ideas

Production and logistics systems that
ensure timely and appropriate supply

Maintenance andquality control

After-sales
service

Corporate
Data

Ability to make proposals and sales
ability to meet customersʼ needs

Corporate
GovernanceCutting-edge
technology● General users

E-commerce site

One-stop solution system
Planning andmarketing skills(Nursing care staff and residents)● E-commerce sites

HealthPromotion
Business

Paramount Care Service Co., Ltd.

● Home care

(Medical staff and patients)

CapitalStrategy

Paratechno Co., Ltd.

Nursing
Care
Business● Nursing care facilities

GrowthStrategy● Assistive products● Medical institutions

Value
Creation

MedicalCare
Business

Paramount Bed Holdings Co., Ltd.

dealers

Prologue● Medical equipment

20

Integrated Report 2023

Value Creation

work hours. Also, data entry mistakes

increasing as the percentage of people

and omissions can occur when making

aged 65 and over increases. Further-

entries on electronic charts whilelooking at notes about measured results

and observations. There is an increasing

not an occurrence unique to the medical

demand for hospital operations that not

and nursing fields. A negative spiral

only allow patients to relax and recoveris occurring in which the continuously

but also ensure that medical workers

increasing burden on staff is leading

can work under reasonable conditions

more employees to leave the work force

without extreme burdens.

due to harsh work environments. Japanas these.
And especially in medical settings
where large amounts of time are spent

Corporate
Governanceis facing significant social issues such

CapitalStrategy

due to a shrinking working population is

GrowthStrategy

more, the serious personnel shortage

Value
Creation

Demand for medical and nursing care is

Prologue

Solving Social Issues with the Smart Bed System™

Smart
Bed
SystemCONTENTSF E AT U R E

recording patients’ vital signs, such as
this kind of work can sometimes
comprise more than half of the overtime

CorporateDatabody temperature and blood pressure,21

Integrated Report 2023

Value Creation
CONTENTS

Nemuri SCAN

Bedside monitor(body motion sensor)

Measurement
date/time and value

System™ in 2016 in order to solve

during implementing of our devices. We

problems occurring in medical settings.

will help medical workers work more effi-

This is an integrated bedside care

ciently and more easily, and we support

information system aimed at watchingcreating safe and reliable environments.

over patients with care, supporting care

Value
Creation

Makes it possible to check patient
condition on a large screen

more. We also offer complete support

workers, and creating new value throughdata utilization. The four main functions

Registration button
Data receiving monitor section
Touch here

Vital sign measuring device
with signal communication
functionare explained on the left. This is aninnovative integrated system unlike any

GrowthStrategy

Staff station monitor

Vital sign measuring
device with signal
communication
functionother, that has been achieved thanks
to our Group’ unique systems actively
making use of voices in the field as well

1. Automatically collects information on whether a patient is sleeping or awake as well
as respiratory rate and heart rate, and notifies understood status and changes

able to offer plans optimally customized
for each hospital thanks to solutions
that combine multiple devices, including

3. Displays each patient’s cautionary points, restrictions, and other information on thesensors, vital sign measuring devices

4. Automatically inputs body temperature, blood pressure, etc., measured by the vital

bedside monitors, station monitors, andmonitorbedside monitor

sign measuring device with signal communication function when simply held overthe bedside monitor

out-of-bed movement, body motion
with signal communication function,

32
hospitals(As of March 2023)

CorporateData

our beds with sensors to detect

Corporate
Governance

2. Displays each patient’s status (asleep/awake/out of bed, etc.) on the staff station

Implemented at
a total of

CapitalStrategy

as our broad industry network. We areMain functions of the Smart Bed System™

Prologue

Body motion sensor

The Group announced the Smart Bed

22

Integrated Report 2023

F E AT U R E

Value
Creation

the Future of the Healthcare Field

Prologue

Establishing Corporate Venture Capital (CVC) for

CONTENTS

CVC

Value Creationin collaboration with SBI Investment

new synergy and accelerate growth byCo., Ltd., a company renowned for its

combining our technology, expertisestrong investment record and expertiseand connections with those of otherin the healthcare field. Over the 7.5

companies through this fund. Due

years following its establishment, theto this, we encourage the growth of

CVC fund is expected to invest 5 billion

start-up companies offering innovative

yen in promising start-up companies intechnologies and outstanding services

Japan and overseas with strengths inthat will shape the future of the health-the fields of medical care, nursing care,

care field.

and health promotion.
The Paramount Vision 2030 of “smiles
care to health field” announced as agoal for 2030 will likely be difficult to

Ofﬁcial site

Corporate
Datafor everyone from medical and nursing

Corporate
GovernanceGroup alone. It is necessary to generate

CapitalStrategyachieve with only the knowledge of ourwas established on October 1, 2022

GrowthStrategy

A corporate venture capital (CVC) fund23

Integrated Report 2023

Value Creation

closely share information on topics suchships—particularly with companies inas the latest technological trends, while

our health promotion business that we

actively seeking startup companies

especially want to develop into a newcapable of meaningful business relation-pillar, as well as in the medical careships with Paramount Bed. Throughand nursing care fields.

these numerous encounters, we hope

The Paramount Bed Group is deeply

to collaboratively shape the future of thepassionate about driving the medical

healthcare field.

care, nursing care, and health promotion

Our Group can acquire uniquefields forward, and we will strengthen

knowledge, that we do not currently

our partnerships in the future. Further-have, from start-up companies wemore, we are aiming to achieve a better

have invested in, and is inspired andfuture by continuing to contribute toenergized. Going forward, we willsociety through company business.

Life support
services

Customer
relations

Process
management
Fem tech

Health tech
Robotics IoT

Global healthcare

Sustainability

Active healthAge techSleep tech

GrowthStrategybusinesses as we form deeper relation-

CapitalStrategy*As of August 31, 2023

Investment record

TENTIAL Inc.

Operates wellness-related businesses

Digireha, Inc.

Operates rehabilitation tool Digireha utilizing digital art and sensors

AMI Inc.

Works toward auscultation DX through stethoscope research and development

Frontier Field. Inc.

Develops and provides smartphone service Nichibyo Mobile for medical institutions

Better Place Co., Ltd.

Supports for implementation and design of retirement pension systems
using the Fukushi Hagukumi Corporate Pension Fund

Nursing care

Health promotion

Medical care

Start-up companies

Corporate
Data

Develops and provides IoT platforms for private homes

Corporate
Governance

LinkJapan Inc.

Value
Creationis "business synergy." We regularly and

Prologue

improve the speed at which we link our

CONTENTS

One major objective of our investments

24Integrated Report 2023

Value Creation
CONTENTS

Value Creation Process
P.25

Management
resources
P.41--P.51

HumancapitalIntellectual
capitalManufacturing
capitalNaturalcapitalSocialcapitalFinancial
capitalStrengthening Capital

OUTPUT

Demonstrated results

Corporate Principles

Business Modelcare Environments through(achievements as of March 31, 2023)

P.19

Cutting-edge Technology with

Medical carebusinessa Human Touch

Nursing carebusiness

Health promotion
business

Net sales

99,009million yen

Operating income

13,452million yen

as human, for human

Operating income margin

Smiles for Everyone from

P.32

Medical and Nursing Care to
Health Field

Strengths

P.36

13.60%

Payout ratio

37.30%

P.18

The ability to turn
Customer basea human touch into value

Capital investment expenses

3,653million yen
P.72--P.74

Social value• Improved management of
hospitals and nursing carefacilities, improved nursing
care environment• Reduced burden on nurses
and caregivers• Quick recovery of patients
into society• High quality of life for carereceivers• Active lifestyles, extended
healthy life expectancy,
improved sleep

Environmental value• Reduced environmental
impact in business activities• Contributed to the realizationof a recycling society

Social issues
Changing values• Aging and long-life populationin Japan and around the world• Declining population andworker shortage• Growth in Asia

• Diversity• Work-life balance• Work style reforms• ESG and SDGs initiatives

Opportunities
and Risks

Opportunities

Risks• Increased demand for high-quality medical
and nursing care
• Pursuit of health orientation and quality of life
• Healthcare consumerism• Advancement of digital technology andpromotion of data utilization• Risk of institutional changes• Parts and materials procurement risk
• Restriction of production functions
due to natural disasters• Risks from the spread of new
infectious diseases• Risks in the supply chain

Corporate
Data

Business
Environment

Demographic changes

Corporate
GovernanceOne-stop solution
systemP.34• Strong relationships of trustwith customers• Sound financial andnon-financial indicators

CapitalStrategy

Paramount Vision 2030

Business value

GrowthStrategyStatement

P.27--P.31

Provided value

Value
Creation

We Create Comfortable Health-Medium-termManagement PlanOUTCOME

Prologue

MATERIALITY

Priority issues to be addressed

INPUT

25

Integrated Report 2023

Value Creation
CONTENTS

Materiality
basis. These include various social issues, such as those we have addressed since our founding and SDGs advocated by the United Nations. Based on these materialities,
we will continue contributing to resolving social issues through our business activities.
Materialities

Environmentally conscious

5 business activities● 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 the proposal of better sleep for athletes

S● Support for the development of the next generation of leaders● Establishment of system for product safety● Enlightenment of safe usage● Active involvement in industry group initiatives● Employee health and labor safety initiatives● Promotion of diversity● Promotion of work style reforms● 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 governance

S
S
E
G

Corporate
Data

6

Ensuring complianceS

Corporate
Governance4

Promotion of employee health,diversity and work style reform● Relief supply system for emergencies

CapitalStrategy

3 Pursuit of product safety● Support for education of nurses and nursing care personnel

ESG

category

GrowthStrategy2Creation of an environment
where everyone can live
healthily and happily● Support for improvement of efficiency of medicine and nursing care and work style reform

SDGs

Value
Creation1

Support for the establishmentof a sustained medical andnursing care system

Priority items

PrologueAt the Paramount Bed Group, in order to grow sustainably together with society, we have formulated materialities (priority issues) that we should address on a priority

Growth Strategy
Integrated Report 2023

26

CONTENTS

Prologue

Value
Creation

GrowthStrategy

CapitalStrategy

GrowthStrategy

Corporate
GovernanceCorporate
Data

27

Integrated Report 2023

Growth Strategy
CONTENTS

2030 Goals and Roadmap
based on the vision. In the business domains of medical care, nursing care, and health promotion, which are highly contributable
to society, we will transform our business model in response to changes in society and the times, while co-creating customer
value as a partner of them and contributing to society in which all people can enjoy lifelong health.

Value
Creation

Medium-term Management Plan
Accelerate speed of expansion
utilizing partnerships and CVC

April 2020 – March 2024

Phase II

April 2024 – March 2027

Focus points

1 Expansion of current businesses
2 Fully engaging in health promotion business
3 Establishing the foundations for change

1 Expansion of recurring revenue businesses
2 Advancement of health promotion business3 Leap forward in key areas of Asia

April 2027 – March 2030

Smiles for Everyone from
Medical and Nursing
Care to Health Field

Target for the ﬁnal year of Phase II

Net sales

120billion yen

Operating income

Medium-termManagement Plan

Corporate
Data

Address the SDGs and social contributions, as well as develop the humanresource base and renew our core system

17billion yen

Corporate
Governance

Focus points

Phase III

Paramount Vision 2030

CapitalStrategy

Phase ITo be an indispensable company tosociety by creating new value

GrowthStrategy

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

Corporate
Principles

Prologue

Our Group is promoting “Paramount Vision 2030,” which is to be realized by 2030, and the Medium-term Management Plan

28

Integrated Report 2023

Growth Strategy
CONTENTS

Progress in Phase I
2Fully engaging in healthpromotion business3

Establishing the foundations
for change

In order to reform our business model and to change our

COVID-19, high costs for materials and energy, shortages inpillar to join our medical care and nursing care businesses incorporate culture, we are working to improve our foundation,

the supply of semiconductors and other components, and thethe future, based primarily on our two brands of “INTIME”—

including improving our in-house system offerings andcontinuing situation in Ukraine, we set new record highs foran electric bed that can transform for nursing-care use—andworkplace environment. We are gradually expanding andboth sales and operating income for the third fiscal year in a

“Active Sleep BED”—an automatic electric bed utilizing sleep

improving our employee training system and career building

row. Recurring revenue business and “Nemuri SCAN” sales

sensors. Although sales increased by approximately 18%

support system, as well as promoting diversity and work styleremaining steady contributed to this. We will also be aiming tocompared to the previous year, we feel that awareness is stillreforms. This fiscal year, we will reorganize and revise ourfurther expand during the final year of Phase I.

low, and we will further strengthen its promotion.

core work system in order to further expand operations.

Operating income(Billions of yen)

Net sales(Billions of yen)
110

Phase I

Operating income
margin2021/32022/32023/3

82.3

87.1

90.3

99

2024/3
Forecast

105

billion yen

billion yen

billion yen

billion yen

billion yen

billion yen

billion yen

billion yen

billion yen

billion yen

9.9

12.0％

11.5

13.3％

12.3

13.7％

13.4

13.6％

14

13.3％

2024/3Resultsvs. previous year*

Resultsvs. previous year*

Forecast

vs. previous year*

14

Medicalcare business

34,230−37,291+8.9%

39,119+4.9%

11

Nursingcare business

52,317−57,521+9.9%

60,669+5.5%

8Health promotion
business

2,141

−

2,517

+17.5%

3,500+39.0%

Others

1,662

−

1,678

+1.5%

1,710

+1.9%

Total

90,352−99,009+9.6%

105,000+6.1%*Due to the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29) being applied from the beginningof the ﬁscal year ended March 31, 2022, year-on-year changes in net sales are not listed here.

Corporate
Data

Operating income

2020/3

Unit: Millions of yen

2023/3

Corporate
Governance70

Net sales

2022/3

17

90

50

Net Sales by Business Segment

CapitalStrategy

Phase I Performance

GrowthStrategy

We intend to strengthen our service in order to create a third

Value
Creation

Although there were numerous unclear factors such as

Prologue

1 Expansion of current businesses

29Integrated Report 2023

Growth Strategy
CONTENTS

Direction and Focus Points for Phase II
Advancement of health2 promotion business

Leap forward in key areas
3 of Asia
We are focusing on areas such as China, Indonesia, andcare business, and packaged rentals of equipment and facilities,

health promotion business, as the third pillar of our Group

India where the population is large, the number of hospitaletc., and on-site services (equipment management, repair work,

along with medical and nursing care. A gradually expanding

beds is expected to increase, and an increased demand for

nursing assistant services, and concierge services) and othersleep market. We will also utilize the knowledge obtained withhigher-functioning equipment is anticipated. In India, we areservices in our medical care business, are our current recurring

corporate venture capital, and expand business that makes aplanning to begin operations of a new, large-scale factory inrevenue businesses. In the future, we will develop more newhigh contribution to society with the aim of extending healthy2024. We will increase our presence in these areas, and we aim

oﬀerings, and we plan to break away from the conventional

life expectancy.

to be the top medical bed manufacturer in Asia.

●Expand sleep improvement products●No. 1 share of medical beds in the countries of operations

expectancy●Expand services provided by partnering with othercompanies●Aim for CAGR 10% in sales

sellout-style sales.
●Accelerate expansion of current recurring revenue

The ratio of recurring revenue business to net sales in Japan
Medical care business6 billion yen

Nursing care business25.6 billion yen

5,000(Millions of yen)

Increased to

45

2,517

3,500

2024/3
Forecast(Millions of yen)

Increased to over5%
2023/3Results

Overseas net sales

2027/3
Target9,271

15,00010,800

Increased to15billion yen
2023/3Results

2024/3
Forecast

2027/3
TargetAiming for 120 billion yen in net sales and 17 billion yen in operating income in the ﬁnal year of Phase II

billion yen

Corporate
Data

35.3％

2027/3of beds sold

Corporate
Governance2023/3

Health promotion business net sales●Increase production capacity to support increase in number

CapitalStrategybusinesses● Develop new recurring revenue business offerings utilizing
sensing technology, AI, IoT, etc.

●Products and services contributing to extending healthy life

GrowthStrategy

We will work to strengthen products and services in our

Value
Creation

An assistive product rental wholesale business in our nursing

Prologue

Expansion of recurring
1 revenue businesses

30Integrated Report 2023

Growth Strategy
CONTENTS

Financial Strategy of the Medium-term Management Plan

Yosuke Kimura

respond to increased demand for promoting work stylereforms for medical and nursing staff, as well as the pricerevisions we enacted in October.

Our business results for the fiscal year ended March 31,

The final year of Phase I of the Medium-termManagement Plancare, nursing care, and health promotion businesses
despite a persistently difficult environment with highof Phase I of the Medium-term Management Plan. We

sales reached a high of 99,009 million yen (9.6% increase

have advocated three focus points for Phase I: “expansion

year on year), and after formulating the Medium-termof current businesses,” “fully engaging in health promotion

Management Plan, achieved new record highs for threebusiness,” and “establishing the foundations for change.”

consecutive years. With regard to profits, operating income

We have already achieved our performance targets for thewas 13,452 million yen (9.0% increase year on year),fiscal year ended March 31, 2022, two years earlier thanordinary income was 14,139 million yen (4.4% increase

scheduled, and we will explain our progress in terms of theyear on year), and net income attributable to owners of the

focus points here. In “expansion of current businesses,”parent was 9,215 million yen (1.3% increase year on year),sales of “Nemuri SCAN” and our “Smart Bed System™,”

setting new records for each. We have seen rewarding

as well as our recurring revenue business in the nursing

2021/32022/32023/32024/3vs. previous year

Resultsvs. previous year*

Resultsvs. previous year

Forecast

vs. previous year

Net sales

87,171+5.8％

90,352−99,009+9.6％

105,000+6.1％

Operating income

11,582+16.9％

12,340+6.5％

13,452+9.0％

14,000+4.1％

Ordinary income

13,461+32.7％

13,543+0.6％

14,139+4.4％

14,500+2.6％

Net income attributable to owners of the parent

8,611+22.3％

9,092

+5.6％

9,215

+1.3％

9,800

+6.3％

*Due to the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29) being applied from the beginning of the ﬁscal year ended March 31, 2022, year-on-year changes in net sales are not listed here.

Corporate
Data

Results

Corporate
Governancethe supply of semiconductors and other components. Net

CapitalStrategyThis fiscal year ending on March 31, 2024 is the final year

GrowthStrategymaterial prices and logistics costs, along with shortages in

Value
Creation

2023 set new fiscal-year records in each of our medical

Unit: Millions of yen

Prologue

Senior Managing Director and CFO

results from our various measures, such as being able to

Setting new record highs in net sales andoperating income for three consecutive years

31

Integrated Report 2023

Growth Strategy

this plan will be 85 billion yen or more. Constantly taking

engaging in health promotion business,” our “INTIME

Next fiscal year we will begin Phase II. Based on theand in some instances plays a major role in putting on the3000” launched in September 2021 contributes to sales

strengthened foundation we built during Phase I, we

brakes and preventing fraud or other misconduct. We willthroughout the year. However, low awareness is still an

will utilize our partnerships with other companies and cor-

conduct thorough monitoring and risk control in order toissue. In “establishing the foundations for change,” weporate venture capital (CVC) in order to accelerate our ex-

appropriately support timely decision making.

are making efforts such as renewing our core system

pansion speed. We have three focus points of “expansion

With shareholder returns at 20 billion yen or more, we

and strengthening both our personnel development andof recurring revenue businesses,” “advancement of healthbelieve that it would be ideal if we could increase dividends

in-house systems. In particular, investment in our core

promotion business,” and “leap forward in key areas ofin a stable manner, targeting the dividend on equity ratio

system involves short-term pain due to the large scale,

Asia.” We aim to increase our ratio of recurring revenue(DOE) of 2.7% and a dividend payout ratio of 30%. In orderbut looking at the medium- and long-term perspective, itbusiness to net sales in Japan to reach 45%. Because weto ensure that all shareholders truly feel the growth of theis certain to improve overall efficiency. We will continue

are investing in the assets related to recurring revenue

Group, we intend to consider flexible additional returns

boldly and carefully building a foundation for the Group’sbusiness, our balance sheet will expand temporarily, butfrom time to time while taking business trends and market

future growth.

this decision is expected to have significant benefits overenvironments into account.

for growth in recurring revenue business in our medical

on new challenges is necessary for corporate growth, but
the financial department is always on the lookout for risks

Prologuecare business, we will proactively plant the seeds. In “fully

CONTENTS

Accelerate the speed of expansion into a
new Paramount Bed Group

care business remain steady. Because there is still room

Value
Creation
GrowthStrategy

the sellout-style sales when considering medium- andalong with creating new value by utilizing CVC, we will
strengthen our promotion activities in order to increase● Cash Distribution Plan (Cumulative total for FY 2022–2026)

Cash inawareness. Overseas, we are aiming to have the No. 1

factory in order to respond to increasing demand.

EBITDA
From 115 billion yen

Also, last year we disclosed our new cash distribution
right). We plan to allocate cash to growth investments andshareholder returns for the five years through to the fiscal
year ending March 31, 2027. The growth investment inAppropriation of cash on hand
From 10 billion yen

Capital investment
From 15 billion yen

The assets related torecurring revenue
business, CVC
establishment, etc.
From 70 billion yen

Corporate
Data

plan through the final year of Phase II (shown on the

Growth investment

Corporate
Governancemarket share of medical beds in our focus areas of India,
China, and Indonesia. In India we are planning a new

Cash out
Shareholder return
From 20 billion yen
Corporation tax
From 20 billion yen

CapitalStrategy

long-term profitability. In our health promotion business,

32

Integrated Report 2023

Growth Strategy
CONTENTS

Main Services

・ A broad lineup of mattresses to suit diverse needs and bed peripherals such as handrails
・ Medical equipment, ceiling supply units, furniture, and systems used in medical facilities, etc.

(medical equipment manufactured by the Paramount Bed Group and other companies)

Support services within medical facilities as well as patient satisfaction improvement support services

We provide various services to suit on-site needs.

Service examples:）
Bed cleaning, bed making, meal delivery and clearing, tea serving, and hospital equipment inspection, etc.

Maintenance of beds withstationed services

Bed and equipment maintenance, centralized inventory management, etc.

hospital operations. This includes everything

Concierge services

Guiding patients using special hospital rooms to their ward and room, helping with inpatient life, etc.

from general hospital wards, highly acute care

Medical equipment maintenanceand management services

We support patients, medical workers, andfacilities such as emergency and critical care
pediatric care units, and rehabilitation facilities.
Centered on the manufacture and sale ofhospital beds, which is our core business, weCorporate
Governancecenters and ICUs, perinatal, neonatal andMedical equipment collection, cleaning, and inspection; entrusted call center services, repairs, regular inspection
work, or other services for equipment made by medical equipment manufacturers in Japan and abroad

CapitalStrategy

Nursing assistant services

GrowthStrategy

Medical Care
Business

Value
Creation

Repair work and after-sales service

Prologue

Product development, manufacture, sales, and rental
・ Medical beds utilizing sensing technology

are providing a wide range of products andof medical settings in Japan and abroad.

Corporate
Data

services to meet the various on-site demands

33

Integrated Report 2023

Growth Strategy

Key Business Successes and Future Strategy

Japan(Millions of yen)
40,0006,607

33,444

34,230

7,675

7,795

37,291
8,561

39,1199,770

20,00029,33910,00026,43528,7292021/32022/32023/3

75

88

90

40

47

89
41

95
41

Overseas

100
49

50
48

44

47

2020/32021/32022/355

51

2023/32024/3
Forecast

0*Thousands of beds rounded to nearest thousand

workers were promoted in Japan. The recurring revenue

to increase approximately 5% year on year to reach 39,119

business remained strong, including equipment manage-

million yen. The number of beds sold in Japan is planned toment, repair work, nursing assistant services, concierge

decrease by 6% year on year, falling to 51,000. In Japaneseservices, and other on-site services as well as package

medical settings, increasing electricity and labor costs

rentals of equipment and facilities. Also, we offeredcontinue to put pressure on management. We would like toproposals for increased work efficiency using the Smartcontribute toward improved operational conditions and pro-

Bed System™, thereby supporting the promotion of work

motion of work style reforms for medical workers with thestyle reforms. In the fiscal year ended March 31, 2023,

Group’s recurring revenue business, Smart Bed System™,

the system was newly introduced at eight hospitals and isand more. We will further improve and expand our proposal

now in use at a total of 32 hospitals (as of March 2023).

offerings, and strive to expand our businesses, along with

Overseas, results remained mostly steady when based on

solving issues facing medical settings.

local currencies, but increased 10% year on year due toOverseas, the number of beds sold is planned to increase

the effect of exchange rates. In Indonesia, the government

21% year on year to reach 49,000, primarily in large markets

procurement project did meet our expectations, but inincluding China, Indonesia, and India. Along with improving

China our high-functional beds did well. Overall, we set aand expanding our product and service offerings to suit the

new sales record.

needs of various countries, we will also fundamentally revise
our operating strategies for each area.

Corporate
Data

25

In the fiscal year ending March 31, 2024, sales are expected

Corporate
Governance1002024/3
Forecast

Japan(Thousands of beds)

Demand increased as work style reforms for medical

The Smart Bed System™ was introducedin greater numbers.

CapitalStrategy

Number of beds sold

New record high for overseas sales.

Further expansion of recurring
revenue businesses
Promoting wider adoption of
the Smart Bed System™
Increasing number of beds sold in
our focus markets overseas

The recurring revenue businessremained strong.

29,3490

2020/3Future business strategy

GrowthStrategy

25,769Key points fromthe ﬁscal year ended March 31, 2023

Value
Creation

30,00035,946

Overseas

Prologue

Net sales

CONTENTS

Medical Care Business34

Integrated Report 2023

Growth Strategy
CONTENTS

Main Services
Product development, manufacture, sales, andrental wholesale for home care

・ Beds for nursing care facilities
・ Mattresses
・ Care lifts

・ Beds used for home care・ Mattresses
・ Walking aids

・ Monitoring support systems
・ Other tools, furniture, and systems used

at nursing care facilities, etc.

used for home care, etc.

Value
Creation

Sales・ Other assistive products

Rental wholesale
Storage

We develop products and services for nursing
both caregivers and care receivers. For
nursing care facilities, we offer a total range

Sellers
Users

We provide facilities and users with products via
assistive product providers

Maintenance

Assistive products
manufacturers

Disinfection

ReturnAssistive products
rental service
providers

Users

We provide products to assistive products rental service providers, with theGroup also handling shipping, collection, disinfection, maintenance, and storage.

PICK
UP

PICK
UP

operation of facilities, from beds, care lifts,
and bathing facilities to furniture used in livingrooms and dining rooms. For the home care,
we provide assistive products, such as beds
rent them to users through sales and rental
wholesale.

Home care bed “Rakusho Plus Series”

A system that enables remote, real-time observation of residents at nursing

Its rising motion for sitting up combines multiple angles to match thecare facilities. Just place it under the mattress, and you can check whether

body’s movements and helps the user to move more easily. The handheld

the user is asleep, awake, rising, or out of bed, as well as their respiratory

switch can send a call that will be received via smartphone, and the bed

rate, etc. It helps to improve the safety of older people in nursing carecan even be operated using a smartphone. It is also equipped with afacilities and to reduce staff workload during nighttime patrols.

self-inspection function for service providers.

Corporate
Dataand mattresses, to companies that sell or

Monitoring support system “Nemuri SCAN”

Corporate
Governanceof tools and equipment necessary for the

CapitalStrategycare facilities and home care, and support

Shipping

Nursing carefacilities

GrowthStrategy

Nursing Care
Business

Prologue

Product development, manufacture, sales, andrental for nursing care facilities

35

Integrated Report 2023

Growth Strategy
CONTENTS

Nursing Care Business Key Business Successes and Future Strategy(Millions of yen)
60,00036,04937,855

12,59314,0162020/32021/331,598709

1,029

41,89944,202

13,442

14,912

15,4382022/32023/32024/3
Forecast

20,0000

For nursing care facilities, various subsidies were also

eﬀective and there was expanded demand for updating

beds and the “Nemuri SCAN” monitoring system. The total
sales ﬁgures for “Nemuri SCAN” exceeded 150,000 units.

For home care, along with sales for our mainstay “Rakusho

Number of beds sold(Thousands of beds)

100

95
4
51

108
3

66

123
6
77

132
4
84

129
6
81

to sales throughout the year. Our recurring revenue

business of assistive products rental wholesale also demonstrated steady results, and the sales ratio increased. We

also opened two new large-scale maintenance centers forassistive products rental wholesale. Along with promoting
eﬃciency improvement and labor-saving, we also revised
our shipping system, building a system that could quickly

50
38

40

45

42

2020/32021/32022/32023/32024/3
Forecast*Thousands of beds rounded to nearest thousand

yen. Regarding bed sales, while there will be a pause in theincreasing trend observed up until now due mainly to ourmainstay model for home care penetrating the market, we
intend to increase sales by expanding sales of mattresses
and other related peripherals. In wholesale rental ofassistive products, we will improve and expand our original
product offerings. A revenue increase of approximately 7%
is predicted. For nursing care facilities, we will continue focusing on market penetration of “Nemuri SCAN.” “Nemuri
SCAN” has received positive reviews for reducing the workburden on nursing care workers and effectively improving
the safety of facility residents. We aim to promote wider
adoption of “Nemuri SCAN” by improving the support
offered following its implementation and deploying efforts
that lead to increased customer satisfaction.

Corporate
Data

39

meet increasing demand.

ed to increase 6% year on year to reach 60,669 million

Corporate
Governance150“Q-AURA ONE,” launched in March 2022, also contributed

In the fiscal year ending March 31, 2024, sales are expect-

CapitalStrategy

Plus Series” bed continuing to do well, our new product
Facilities in Japan
Homes in Japan
Overseas

Expanding sales for mattresses and otherrelated peripherals
Improving and expanding original
Paramount Care Service products
Focusing on market penetration of“Nemuri SCAN”

GrowthStrategy416

542

57,521

Our mainstay beds were well received
and demand increased for “Nemuri SCAN.”
The recurring revenue business(assistive products rental wholesale)remained strong.
Opened two new large-scale maintenancecenters.

Future business strategy

Value
Creation

52,317
1,018

44,73440,00050,48260,669Key points fromthe ﬁscal year ended March 31, 2023

Prologue

Facilities in Japan
Homes in Japan
Overseas

Net sales

36

Integrated Report 2023

Growth Strategy
CONTENTS

Main Services

・ Automatic electric beds that utilize sleep sensors
・ Electric beds that can transform in the future for nursing-care use

Prologue

Product development, manufacture, and sales for people who do not require medical or nursing care services

・ Membership service supporting comfortable daily life

Health Promotion
Business

The first bed in Japan that detects the status of sleep with sensors andslightly when going to sleep. Next, when the sensors detect that the user is ina sound sleep, the bed slowly flattens to facilitate turning over. This automatic
operation improves sleep quality. And when it is time to wake up, the sensors
detect shallow sleep and raise the back at just the right time to help the user
using a smartphone, which also scores the quality of sleep.

live more healthy lives. We develop and sell

And going forward, we will expand our “sleeptech” services that use technology to solve
sleep problems.

Electric bed “INTIME” that can transform in the future
for nursing-care use
It is conceptualized as “an electric bed that helps throughout a person’s life.”
While it can first be used as a comfortable electric bed, it can transform into a
nursing-care bed in the future if nursing care becomes necessary. It is carefully
This year’s new, fully remodeled “INTIME 1000 Series” comes equipped withconvenient functions such as LED lights that can be used for indirect lighting or
supplemental lighting, and a USB port for charging a smartphone or tablet.

Corporate
Data

designed to blend in with interior furnishings without looking like an electric bed.

Corporate
Governanceof the Paramount Bed Research Institute.

PICK
UP

CapitalStrategy

to awaken more comfortably. These movements can be operated and set

improve daily sleep quality and let people

and pillows that utilize the research results

GrowthStrategy

operates automatically. Breathing becomes easier if you raise the back

We provide products and services that

products such as electric beds, mattresses,

Automatic electric bed “Active Sleep BED” that utilizes
sleep sensors

Value
Creation

PICK
UP

37

Integrated Report 2023

Growth Strategy
CONTENTS

Health Promotion Business Key Business Successes and Future Strategy

Japan

Overseas(Millions of yen)
4,000

0

3,000
2,000
1,000

1,231
0

0

0

1,584

2,141

2,517

Strengthened various promotion activities.

0

3,500

2021/32022/32023/3(Thousands of beds)

0
6

0

0

0
7

9

10

12

the number of customers visiting stores, our “INTIME

ed to increase 39% year on year to reach 3.5 billion yen,

3000,” launched in September 2021, contributed to sales

and beds sold are expected to increase 26% to reachthroughout the year. Despite being in the middle price

12,000 units. Our mainstay model “INTIME 1000” was fully

range within the INTIME Series, it has numerous functions

remodeled in April 2023. It is carefully designed to blend

and an extensive selection of six types of mattresses (otherin even better with interior furnishings without looking liketypes have two to four options), and it has become very

an electric bed. It comes newly equipped with convenient

popular. We also conducted sales promotion support forfunctions such as LED lights that can be used for indirect

dealers with our “Meister System.” Under this system, welighting or supplemental lighting, and a USB port forprovide training in order to help dealers gain knowledge

charging a smartphone or tablet.

and product functions that can be useful when engaging“Sleep tech” has been attracting more attention in recent

with customers. Furthermore, we also strengthened ouryears. Amidst this increasing awareness of sleep, we arepromotion activities in order to increase awareness. As aworking to provide sales promotion support for dealers

result, sales increased 18% year on year.

and to strengthen various promotion activities, as wellas to expand and improve services that enhance user

02020/3In the fiscal year ending March 31, 2024, sales are expect-

2021/32022/32023/3*Thousands of beds rounded to nearest thousand

2024/3
Forecast

satisfaction, thereby expanding our businesses.

Corporate
Data

3

6

7

10

0

Although this was a period when COVID-19 reduced

Corporate
Governance6

Overseas

12992024/3
Forecast

Japan

12

Strengthening various promotion activities
and improving user satisfaction

CapitalStrategy

Number of beds sold

Sales promotion support for dealers

2,517

0

2020/3

Sales promotion support for dealers.

Expanding sales with our fully remodeled
mainstay model

GrowthStrategy

1,231

1,584

2,141

New products contributed to sales
throughout the year.

Future business strategy

Value
Creation

3,500

Key points fromthe ﬁscal year ended March 31, 2023

Prologue

Net sales38

Integrated Report 2023

Growth Strategy

ntʼs

as
Oversesion
Expan

everywhere. Since the establishment of our trading department in 1968, we have been providing services customized to suit the needsof various countries. Our products have been delivered to 110 or more countries worldwide. Currently, aiming toward localization,

we have locations in Southeast Asia, including Indonesia, China, India, and other countries. We have also established a regional HQ

company Paramount Bed Asia Paciﬁc Pte. Ltd. in Singapore, and are focusing on the Asian region as a promising market predicted tohave particularly increasing needs in the future.

110

Paramount Bed (China)
Co., Ltd.

or more countries

Production sites

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

PARAMOUNT BED
ASIA PACIFIC PTE.LTD.

PARAMOUNT BED(THAILAND)CO.,LTD.

Corporate
Data

PT. Paramount Bed
Indonesia

Corporate
Governance

PARAMOUNT BED VIETNAM CO.,LTD.
PARAMOUNT BED VIETNAM TRADING CO.,LTD.

CapitalStrategy

10
4 factories

overseas
locations

PARAMOUNT BED
INDIA Private Limited.

Delivery record in

GrowthStrategyOverseas Group companies

PARAMOUNT BED
USA Corporation.

Value
Creation

Shanghai Representative Ofﬁce

Prologueou
Param

CONTENTS

We want to support the medical and nursing care industries, not only in Japan but around the world, as well as the health of people

39Integrated Report 2023

Growth Strategy
CONTENTS

Consolidated Overseas Net Sales
Consolidated overseas net sales
Overseas sales ratio

Aiming to be the top

10,000

8,813

9,000

China, Indonesia, and India are countries where the population is large, the number of hospital beds is expected toincrease, and an increased demand for high-functional beds such as electric beds is anticipated. We consider thesecountries as priority areas for overseas expansion, and we have been taking actions there for many years. As a result,

9.4

11

10.3

7

7,000

3

0

0

2022/3are still currently used in China. We hope to steadily respond to a demand for updating the beds to electric beds there

2023/32024/3
Forecast

GrowthStrategy

we hold a top-class market share in electric beds there in particular. On the other hand, large numbers of manual beds

9.8

8,000

15

9,271

in the future. Also, over ten years have passed since we moved into India. In order to meet the expanding demand there,
we will begin operating a new large-scale factory in India in FY 2024 and work to improve our production capability. We
plan to further strengthen our initiatives for priority areas such as these, and aim to be the top medical bed manufacturer

Consolidated Overseas Net Sales by Region(Millions of yen)2024/3
Forecast

7,923

8,174

9,897

− Indonesia

2,772

2,874

3,657

− China

2,803

3,029

3,524

2,346
− Other Asian countries

2,269

2,715

68

222

235

227
Central and South America

505

526

595

369

140

Asia

Middle East

Other

Corporate
Data

2023/3

Corporate
Governance2022/3

CapitalStrategyin Asia. Furthermore, we will gradually start working in other bed-related areas just as we have in Japan.

Medical electric bed for India, “Qualitas Nx Series”

Value
Creation

medical bed manufacturer in Asia.

（％）
19

10,80011,000

Prologue(Millions of yen)Capital Strategy
Integrated Report 2023

40

CONTENTS

Prologue

Value
Creation

GrowthStrategy

CapitalStrategy

CapitalStrategy

Corporate
GovernanceCorporate
Data

41

Integrated Report 2023

Capital Strategy
CONTENTS

People and organizations continuing

Consideration to the environment

to achieve social contribution

from the production process to thethrough company business

entire product life cycle

6 Types of Capital
Research and development thatcreates more useful results by

we have cultivated over the years in
the medical and nursing care fields
give us a unique advantage. We
will strengthen the various types ofcapital that serve as our foundation

Financial capital
A strong ﬁnancial base fosteredthrough both offense anddefense since our foundingfor creating new value, and increase
our competitive advantage.

Production systems that earn top

A broad network built frommarket share and achieve maintenancerelationships with diverse

and improvement of quality

stakeholders

Corporate
Data

Social capital

Corporate
Governance

Manufacturing capital

CapitalStrategyutilizing on-site feedback

The knowledge and human resources

GrowthStrategyIntellectual capital

Value
Creation

Natural capital

Prologue

Human capital

42

Integrated Report 2023

Capital Strategy
CONTENTS

Overview of initiatives for strengthening capital
In order to continue achieving social contribution through company business, we will promote the development and strengtheningof personnel who have a challenge-taking mindset and create the future of the Paramount Bed Group while valuing communication, as well as collaboration internally and externally. Furthermore, we intend to strengthen our organization by securing diverse
human resources, and to foster our organizational and corporate culture through thorough awareness of legal compliance.
*When not indicated otherwise, “human capital” is calculated for Paramount Bed Co., Ltd.

We believe that it is crucial to strengthen our human resource base

The products and services of the Group are used by a wide range

in order to make progress with our Medium-term Management Plan,of people. We think that it is important to make use of the feelings

with the pillar of our preferred personnel profile, that is, “personnel

created by employees with diverse backgrounds of nationality,

who can voluntarily take on new challenges, recognize thegeneration, and gender when creating our products and providing

importance of communication, and create the future of Paramount

our services. In order to better utilize that diversity, we are cultivat-

Bed Group,” especially from the perspective of engagement,

ing a “culture with thorough communication,” aimed at mutual

development, skill/experience, leadership, succession plan, andunderstanding and building relationships of trust, and a “culture

hiring. To do this, with a focus on “creating a rewarding experience”

that encourages challenges” so that our employees will continue

and “supporting growth,” we will implement various measurestrying new fields by remaining committed to being the top in thefor two topics of “enhancing overall employee development” andindustry. Furthermore, in our Group, we will work to improve our“hiring and developing global human resources,” and make efforts

corporate environment from the perspective of diversity, mental

to develop human resources.

health, physical health, and compliance/ethics.

GrowthStrategy

Policy on improving corporate
environment

Value
Creation

Human resources
development policy

Prologue

Human
CapitalCapitalStrategy
Corporate
GovernanceCorporate
Data

43

Integrated Report 2023

Capital Strategy
CONTENTS

Human Resources Development
Hiring and developing global human resources

In order to promote human resources development based on “creating a rewarding experience” and “supportingfor increasing skills through work. We will constantly promote employee growth and development through a cycleof accumulation of experience utilizing learning and learning new things through experience.

human resources with advanced linguistic abilities and those with a strong
interest in working overseas. And aside from offering a range of educational
opportunities for language education to support improving TOEIC® scoreseven after joining the Company, in 2020 we established our “Overseas Trainee
System” as part of our Career Challenge System. This is an initiative allowing

Value
Creation

growth,” we are implementing measures emphasizing “learning” for voluntary employee learning, and “experience”

In order to improve our ability to respond to globalization, we proactively hire

Prologue

Enhancing overall employee development

employees to experience working overseas for a limited time that we recruit

In order to clarify expected roles and behaviors, and to expand“Paramount Campus” as a voluntary learning system supporting

opportunities for employees to play an active role according toemployees’ motivation to learn and ability to act. We provide

their characteristics, we have introduced a new human resources

over 160 remote learning courses. Plus, by changing learning

system that ties achievement of action items to evaluations

into points and incorporating it as a factor for getting promoted,

more clearly. We also link applicable education measures for

we encourage employee growth and development. We alsoeach employee. And in order to encourage employees who want

implement various learning support measures, such as sending

to try new things, we have established our “Career Challenge

employees to a business school or graduate school with the

System” recruiting for transfers between other companies within

aim of developing highly specialized human resources, and

the Group. Furthermore, we are also making efforts toward

establishing DX classes.

identifying and developing executive personnel from a mediumand long-term perspective.

Number of students studying in remotelearning class with Paramount Campus

876people

2022

845people

Corporate
Data

2021

Corporate
Governance

We have created comprehensive learning opportunity

for openly.

CapitalStrategy[Experience]

GrowthStrategy[Learning]

44

Integrated Report 2023

Capital Strategy
CONTENTS

Improving our Corporate Environment
Employee health initiatives

Promoting work style reforms
We are promoting work style reforms in order to establish work-life

verification experiments aimed at offering services for sleep-based

management customized to each individual’s lifestyle. Specifically,

we have established and implemented an action plan that includes

lifestyle improvements. We encourage employees to use sleep-status

in order to support balancing work and childcare or nursing care, we

the development and improvement of various systems such asmeasuring applications, and these are useful for improving sleep.

combine our various systems such as telework, area sales, limited

maternity leave before and after childbirth, childcare leave, childAlso, we have incorporated understandings of depression and ways

work locations, and leave for accompanying a spouse due to job

caregiver leave, and shortened work hours, and securing a 30% ratio

to handle it as part of our employee training program to prevent

transfer.

of women among our new graduate hires. we are also making efforts

depression. We have introduced services to enable individual stress

to ensure that older human resources can display their skills to thechecks. We have established external consultation services, and we

fullest by establishing a post-retirement rehiring system under which

are expanding out consultation system to more closely cooperate

retirees can work until 65 according to work tasks and difficultywith our industrial physicians. These initiatives have been evaluatedlevel. Also, we encourage employees to acquire knowledge and new

and certified by the health insurance association’s “Certification ofperspectives from other companies via our “Side Job/Concurrent

Excellent Health Companies” and by the Ministry of Economy, TradeJob System” for our current employees and our “Comeback System”

and Industry and the Nippon Kenko Kaigi as the “2023 Certified

for former employees who have left the Company, thereby increasing

Health & Productivity Management Outstanding Organization.”

GrowthStrategy

We are partnering with our related companies and carrying out

our employees’ lives. To promote women’s equality in the workplace,

CapitalStrategy

the diversity of our organization.

Ratio of childcare leave taken by female employees

66.7%

2022

Ensuring compliance166.7%

We provide compliance training whenever employees join us in

Ratio of female employees among new graduate hires(compared to number of new hires)

2021

30.0%

2022

29.6%

2021

90.0%

2022

100.0%

the “Corporate Ethics Guidebook” and use it during training. We

Percentage of employees taking the stress check
2021

86.3%

2022

85.9%

also regularly convey messages from the Corporate Ethics Office.
Furthermore, in order to monitor compliance, we are monitoring
the situation on various fronts by conducting employee awarenesssurveys and establishing reporting contacts.

Corporate
Data

Ratio of people using the post-retirement rehiring systemorder to further improve our corporate value. We have createdCorporate
Governance

2021

Value
Creation

We have established our system for supporting various key events in

Prologue

Promoting diversity

45

Integrated Report 2023

Capital Strategy
CONTENTS

Overview of initiatives for strengthening capital
We position all the technology that we have developed and knowledge that we have accumulated thus far, as well as theintellectual property that accompanies the technology and knowledge, as factors that are important for continuously improving
our corporate value through our management strategy. To appropriately protect and utilize the intellectual property held by
the Company, aside from establishing appropriate management systems, we are also acquiring employees with specialized
knowledge as well as continuously developing human resources.

Value
Creation“Back-raising” and “rising posture” research
When raising the back of the bed, only raising the back section causes the body to slide down
toward the legs, and generates unwanted friction and pressure. It is thought that this is one source

A rising posture using Relax Motion inwhich the knees bend slightly and thelegs lower

and repeatedly verified shifting volumes and feeling of pressure. Furthermore, we held hearings
with hospitals and nursing care facilities, and continued searching for new methods. And finally in

GrowthStrategyof bedsores. We changed our way of raising the back and the foot, we tested over 6,500 motions,

Prologue

Intellectual
Capital2003, we developed our innovative back-raising mechanism “KIND motion.” We created a programfor complexly combining raising and lowering the back and knee areas, and achieved this method

CapitalStrategy

for significant reduction in body misalignment. Our next focus was the “rising posture.” The posturefor sitting after raising the back, called “long-sitting position,”* with both legs stretched out createsa significant burden, and sitting in this position for many hours can be painful. So what can be done
to approach a more natural sitting position? The answer to this question is our “Relax Motion,”mechanism that inclines the bed toward the legs while simultaneously raising the back, it shifts toa posture where the knees bend slightly and the legs lower when the back is raised. This stabilizes
the posture when getting up and makes moving easier. At the same time, the pressure on thesacral bone area—which is at high risk for bedsores—is redistributed to the buttocks and thighs,

The conventional “long-sitting position”
posture with both legs outstretched
after raising the backCorporate
Governancedeveloped in 2013, that moves the entire bed into a sloping position. With a groundbreaking

significantly contributing to a reduction in bedsores. Regarding improvements to this back-raisingwith design registration, trademark registration, etc., and continue to consider how to further
improve it in the future.
*The body position when sitting with both legs outstretched. It is said that moving and keeping this posture stable
for a long time is difficult due to stiff hamstring muscles on the back of the thighs.

Corporate
Datamotion, along with acquiring a patent, we have protected our intellectual property on several fronts

46

Integrated Report 2023

Capital Strategy
CONTENTS

Overview of initiatives for strengthening capital
We have two functions: manufacturer (Paramount Bed) and rental wholesaler (Paramount Care Service). As a manufacturer,
we have created structures combining all the accumulated expertise since our founding together with cutting-edge systems,
and implement thorough quality control by tactile and visual inspections, foreign object inspections using metal detectors, andother various inspections. As a rental wholesaler, we have built a system that can deliver well-maintained assistive products
immediately when needed. We also carry out disinfection and cleaning with the utmost care for sanitation.

Rental wholesaler●Maintenance system that provides clean, safe

At our primary Chiba Factory, we have built an integrated production

Along with building a system that ensures immediate delivery ofsystem with everything from raw materials to finished products,

well-maintained assistive products is possible when necessary, we

centered on bed production. We have established a pattern of making

conduct thorough quality control to ensure that these products are safe

a number of bed units in one cycle. With this method of continuously

and reliable for users. We conduct ethanol-based spray cleaning andconveying them between processes form welding to painting andwater cleansing using high-pressure cleaners. After cleaning, along withassembly without interruption, we work to shorten manufacturing leadrinsing using environmentally-friendly, slightly acidic electrolyzed watertime and minimize in-process inventory, while simultaneously reducingthat is also used for disinfecting foodstuffs, we carry out disinfection

electricity usage and waste generated. In addition, the Paramountusing ozone. The disinfected products are inspected for bacteria

Bed’s headquarters andthrough regular sampling,

factories are certified withand the effectiveness of theinternational standard ISO9001

disinfection is verified.

domestic and international collaboration

and ISO13485 (medical
devices-quality management
systems).

Corporate
Data(quality management systems)

and reliable products

Corporate
Governance●Optimal global production site system throughquickly

CapitalStrategy●Nationwide store network that can respond●Thorough quality control

GrowthStrategy●Effective, integrated production system

Value
Creation

Manufacturer

Prologue

Manufacturing
Capital47

Integrated Report 2023

Capital Strategy
CONTENTS

00

Manufacturing Capital TOPICS(Paramount Bed)

Creating new, large-scale maintenance centers for expanding business(Paramount Care Service)

we also opened our new Atsugi Maintenance Center in November of the same year in Atsugi, Kanagawa.

manufacturing due to increasingly complex mattress materials or construction, as well as material loss andBoth are large-scale centers implementing the latest automated equipment such as cleaning machinery forincreasing repair costs due to the aging of the facilities. The concept of the new factory is an efficient factory

beds and mattresses along with automated packaging machine, and we will make progress in improvingthat can handle diverse mattress specifications, with an integrated production line connecting raw material

maintenance productivity and labor-saving. The Kita-Osaka Maintenance Center was expanded tomolding and processing to packaging, and automated conveying of the products to the warehouse. Aside

approximately eight times the size of the old center, and our storage and maintenance capability in thefrom greatly reducing material loss and repair costs, we have improved the supply system to enable us to

Kinki region has roughly doubled. The Atsugi Maintenance Center, along with the existing Chiba Ohirahandle more demand by increasing our ratio of in-house manufacturing and greatly enhancing productivity.

Maintenance Center (Sammu-shi, Chiba), has contributed to building a system that enables us to reachincreasing demand in the Kanto area. We are working to further strengthen our recurring revenue businessin the nursing care business.

Atsugi Maintenance Center

Location:
3-25-1, Zushi, Takatsuki-shi, Osaka 569-0036

Location:
1569-1, Sanda, Atsugi-shi, Kanagawa 243-0211,
Japan

CapitalStrategy

Kita-Osaka Maintenance Center

GrowthStrategy

Along with expanding and moving our Kita-Osaka Maintenance Center to Takatsuki, Osaka in May 2022,

began full operations there. With previous facilities, there were issues such as a reduced ratio of in-house

Value
Creation

In October 2020 we built a new mattress factory on the Chiba Factory’s premises, and in October 2021 we

Prologue

Enhancing productivity at our new mattress factory

Corporate
GovernanceCorporate
Data

Location:
2078, Shirahata, Sammu-shi, Chiba 289-1306, Japan (on the Chiba Factoryʼs premises)

48

Integrated Report 2023

Capital Strategy
CONTENTS

Overview of initiatives for strengthening capital
We aim to reduce the environmental impact throughout our product production process and the entire product life cycle.
We review our raw materials and procure materials with low environmental impact. We promote reusing and recycling, as
well as energy-saving activities at our production sites and business sites. We have established the “Factory Energy Saving
Secretariat” in our Production Division, and we are always actively promoting these efforts.

Environmental initiatives through our
production processtransportation jigs used for delivering products, reusing returnable

ESG management. And in order to create a sustainable society

containers for assembly parts, simplifying packaging materials, andthat exists in harmony with the Earth, we aim to reduce the environ-recycling used products under the scheme of the National Permit

mental burden involved in our corporate activities and throughout

System for industrial waste (certified in April 2012: Certification No.

the product life cycle. We have organized the impact of the risks

217). We are also focusing on manufacturing that is friendly to theand opportunities related to climate change on our Group businessglobal environment. The integrated production line at our Chiba

activities, revenue, and other factors, in line with the recommenda-

Factory has achieved a 60% reduction in industrial waste and ations of the Task Force on Climate Related Financial Disclosures

30% reduction in electricity consumption of the painting facilities(TCFD) (see the next page). Regarding GHG (CO₂) emissions, we(compared to the conventional line at Paramount Bed) by completely

aim to become carbon neutral by 2050, and we will work to achieve

stopping the use of solvent-based paints to eliminate volatile organica target of 30% reduction (compared to 2013) by 2030.

compounds (VOCs) and changing painting chemicals.

2013
CO2

6,550tCO22030 (target)

30%reduction(vs. 2013)*The indicators are the GHG emissions applicable to Scope 1 and Scope 2, andthe calculations apply for Paramount Bed Holdings Co., Ltd. and Paramount Bed
Co., Ltd.

Corporate
Data

6,813t2022

Corporate
Governance

Scope 1 / Scope 2 emissions volume

CapitalStrategy

We are striving to make effective use of resources by reusing

activities” as one of our priority issues (materialities) for promoting

GrowthStrategy

Our Group advocates “5. Environmentally conscious business

Value
Creation

Environmental targets based on
our vision

Prologue

NaturalCapital49

Integrated Report 2023

Capital Strategy
CONTENTS

Task Force on Climate Related Financial Disclosures (TCFD)
Key:

A scenario in which measures are taken, such as strengthening regulations in order to minimize the increase in temperature and changing markets
Risk and opportunity

Business impact

Introduction of a carbon tax
and operations due to carbon tax andemission permit transactions★★★

Increased procurement costs for steel and other materials,

・ Switch to low-carbon materials

increased company operation costs at factories, and increased

・ Reduce shipping volume by making shipping between locations

logistics costs due to the introduction of the carbon tax are
predicted, and are expected to have significant impact on the

The strengthening of decarbonization measures requires switching
all electricity to renewable energy sources, which will incur★★

additional costs, but the impact on the Company is expected to beness and develop and provide environmentally-friendly products

On the other hand, an increase in demand for the Company’s

required by those customers at those times★★★

・ Maintain and improve our reputation as a company that operates

appropriately or does not set targets for reducing GHG emissions,with consideration to the environment through appropriate

the risk of reputational damage from stakeholders may occur.

disclosure of information related to climate change such as the

However, due to continuing to have a policy of working toward
appropriate disclosure in the future, we expect a certain level of

TCFD.
・ Maintain and improve our reputation as a company that takes

impact.

environmental responsibility by supplying environmentally-friendly

On the other hand, we expect significant impact on the Company’s

products as well as setting and achieving targets for reducing

businesses, as customers will be more inclined to reduce disposal
services such as component replacement.

GHG emissions.
・ Accelerate the expansion of our recurring revenue businesses aswell as develop new recurring revenue business offerings utilizing
sensing technology, AI, IoT, etc.

Corporate
Data

costs, leading to rising demand for rental services and after-sales

Corporate
Governanceenvironmental awareness(Scope 1 / Scope 2)・ Quickly grasp changes in customers’ environmental conscious-

CapitalStrategylowered reputation

・ Formulate a policy for reducing the Company’s CO₂ emissions

environmentally-friendly technologies and services is predicted.

Changing stakeholder awareness●Increased demand for rental and after-sales
services due to customersʼ increasing(Scope 1 / Scope 2)

small.

If we do not disclose information related to environmental measures▲Insufﬁcient response to climate change andmore efficient, etc.
・ Formulate a policy for reducing the Company’s CO₂ emissions

GrowthStrategy

costs●Increased demand for environmentally-friendly technologies and services

Company measure

Company’s businesses.

Strengthened decarbonization
measures▲Increased renewable energy procurement

Inﬂuence on the Company

Value
Creation▲Increased costs for procurement, logistics,▲：Risk
●：Opportunity

Prologue

Below 2°
C scenario

50Integrated Report 2023

Capital Strategy
CONTENTS

Task Force on Climate Related Financial Disclosures (TCFD)Key:▲：Risk
●：Opportunity

A scenario in which physical effects such as weather anomalies occur as a result of rising temperatures
Risk and opportunity

Business impact

Company measure(intensiﬁcation of wind and ﬂood damage)Suspension of operations and the resulting loss of profit may occur

・ Promote multiple suppliers, multiple inventory locations, and▲Risk of a disaster severely damaging a raw

when suppliers with large transaction amounts, production sites,

Acute risk

and logistics networks are damaged due to storms or floods.

★★★

damage. Also, it is thought that handling supply in a speedy andthe Company to secure trust, and we expect significant impact on
the Company’s businesses.

even during a disaster, as well as speedily respond to production
by cooperating with other production sites

・ Establish a system for emergency shipping from other regions as
an alternative to disaster-stricken logistics routes

・ Develop products and services that are effective during times ofnatural disaster, improve and expand the supply system, disseminate information externally, and conduct promotion activities

increased temperatures, such as air-conditioning costs to maintain

tures

★★★

On the other hand, we expect significant impact on the Company’sbusinesses as the demand is predicted for measures to mitigate
decreased sleep quality from increased temperatures as well as
for the Company’s products (sleep tech products, the Smart Bed
care, clinical nursing, and nursing care work.

disseminate information externally, and conduct promotion
activities

Corporate
Data

System, etc.) due to expanded demand for supporting medical

conditioning units, etc.

・ Develop and sell sleep tech products and the Smart Bed System,

Corporate
Governanceemployee health.

・ Reduce air-conditioning costs by introducing high-efficiency air

CapitalStrategy

If temperatures rise, costs may occur due to responses to the▲Increased costs to handle higher tempera-

to address reduced sleep quality fromhigher temperatures●Increased demand for products and services
to make medical care, clinical nursing,and nursing care work more efﬁcient as
temperatures increase

services will grow due to intensified and frequent wind and flood
stable manner when a disaster occurs could be an opportunity for

Chronic risk(increased temperatures, warming)●Increased demand for products and services

On the other hand, demand for disaster prevention products andadoption of general-purpose items

・ Secure safe inventory in order to ensure stable supply of products

GrowthStrategymaterial supplier, causing suspension ofoperations▲Risk of a disaster at a production site, causing
suspension of operations▲Logistics interruption due to localized
torrential rain
●Increased demand for disaster prevention
products and services●Securing trust with quick and stable supply
when wind and ﬂood damage occurs

Value
CreationInﬂuence on the Company

Prologue

4°C scenario

51

Integrated Report 2023

Capital Strategy
CONTENTS

Overview of initiatives for strengthening capital
It is difficult for us alone to solve social issues, and we must cooperate and collaborate with various stakeholders. We will
utilize information gained from a strong network with medical and nursing care workers to improve our products and services.
Furthermore, we are making efforts to solve social problems as a unified industry by working on the industry to establish
a system to strive for product safety, and supporting education and training for nurses, etc. We believe that we have that
responsibility as a leading company.

Value
Creation

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

Pursue the worldʼs highest
quality and create value

Customers

Employees
andtheir families

Local
community

Maintain safety and health
Encourage challenges

Create a society where everyone in
the world can live healthy

CorporateDatabusiness activities with the aim of

to address issues and create
value together

Globalenvironment

preserving the global environment

Work closely with customers

Users

Suppliers,
partners

Conduct environmentally friendly

environment to realize a vibrant life

Corporate
GovernancetogetherIndustrialorganizations

CapitalStrategyleading company in the industry

Provide a comfortable healthcare

Shareholders/investors

GrowthStrategy

Fulﬁll our responsibilities as a

PrologueSocialCapital52

Integrated Report 2023

ステークホルダーとのCapital Strategy

1

CONTENTS

Materiality Initiatives

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

Prologue● Veriﬁcation period

Intellectual
capitalSocialcapitalNovember 1, 2022 – January 31, 2023
● Location

TOYOTA-KAI Medical Corporation

By gathering home-care patients’ life log data such as respiratory rate, heart rate, and state of consciousness(asleep or awake) with the Company’s sleep measurement sensors, we conducted verification experiments to determine whether we can use this for remote examinations or observation. In Kariya, Aichi, we did this together with
the Tokai Branch of Nippon Telegraph and Telephone West Corporation. Transforming conventional, qualitative
proven to be a reassuring factor for patients and their families living in their homes. We expect that life log data

● Structure and role

Kariya City: Kariya Smart Wellness Project representative
TOYOTA-KAI: Data acquisition cooperation and provision of expertise in home medical care
NTT West Group: Data acquisition, analysis, and visualizing analysis results
Paramount Bed: Provision of initiative expertise utilizing sleep measurement sensors

will be utilized as a hub connecting patients, their families, and medical workers.

At the patientʼs home
Daily life log data image

Sleep measurement
sensorCommunication router

Corporate
Data*Real-time monitoring is updated every 20 to 30 minutes

By placing the sensor under the mattress,
it measures body movements (turning overduring sleep, breathing, heart rate, etc.) andmonitors sleep status.

Corporate
Governance

Real-time
monitoring image*

CapitalStrategy

At the hospital

GrowthStrategy

sleep information into quantitative information has led to a better understanding of patient sleep cycles, which has(KARIYA TOYOTA General Hospital, Kariya Home-visit Nursing Care Station,
Takahama Home-visit Nursing Care Station)

Value
Creation

Implementing ﬁeld veriﬁcation for sleep
measurement sensors aimed at enhancing the
comfort and safety of home-care patients

53

Integrated Report 2023

Capital Strategy

2

CONTENTS

Materiality Initiatives

Creation of an environment where everyone can live healthily and happily

SocialcapitalIntellectual
capitalSocialcapitalWe support TOBIUO Japan swimmers, Japan swimming national team members,Co., Ltd. The “Para Support Project” is an initiative where Chiba Lotte Marines team

as well as para-canoe athlete Seryu Monika. Along with evaluation, analysis, andmembers visit special needs schools in Chiba Prefecture, and share the fun and joy of

feedback from sleep measurement sensors, we also provide them with pillows andexercise with children through baseball and dance. Also, aside from accommodation

mattresses designed to support turning over easily and sleeping comfortably, whichfacilities in Chiba Prefecture, we provided electric beds at no charge to Suita, Osakais important for sleep. Additionally, we have formed a sponsorship with the Saitama

where Ukrainian refugees are living. We think that we should have a society where

Seibu Lions in relation to sleep support. We support efforts to improve sleep bypeople in any circumstances can live easily.

analyzing each athlete’s sleep and providing feedback once per month.

GrowthStrategy

We have sponsored the “Para Support Project” initiated by Chiba Lotte Marines

Value
Creation

Using knowledge and technology to support enhancing
athlete performance

PrologueSupporting the achievement of an
inclusive society where anyone canlive easily

CapitalStrategy

A letter of gratitude from Suita, Osaka

Corporate
Data

Sponsorship with the “Para Support Project”

Corporate
GovernanceFree lending of electric beds to accommodation facilities in Chiba Prefecture

54

Integrated Report 2023

Capital Strategy

2

CONTENTS

Materiality Initiatives

Creation of an environment where everyone can live healthily and happily

Intellectual
capitalSocialcapitalSupport for the development of
the next generation of leaders

Socialcapitalto time for local elementary and junior high schools. These are held with the aim ofveloped an educational program for junior high school students across Japan to learn

helping the students understand the importance of sleep and increase intellectual

about the importance of sleep together with ARROWS Inc. And in collaboration withcuriosity through hands-on experience of products such as “Nemuri SCAN” andKaiyo Secondary School, we carry out an initiative to support improving sleep for the“Active Sleep BED.” With the number of children in Japan declining, we hope tostudents at this school with the aim of improving academic results and performance incontribute to developing leaders for the next generation.

school club activities.

GrowthStrategy

We conduct extracurricular classes, hands-on classes, and other classes from time

sleep conditions for junior high school students. With the aim of improving this, we de-Value
Creation

Using smartphones and increasing time spent on club activities or studying worsens

Prologue

Health promotion activities
through sleep for junior andsenior high school students◀

CapitalStrategy

A hands-on electric bed experiencefor elementary school students

Corporate
GovernanceCorporate
Data▶

A class explaining the monitoring support
system for junior high school students

55

Integrated Report 2023

Capital Strategy

4

Promotion of employee health, diversity and work style reform

who have left the Company● User voices
HumancapitalCompany is a plus for both the rehired employee and the Company. This is because
the employee can be appropriately placed based on past experience to hit the groundrunning and there is a high likelihood that the employee can play a more active role
we will continue making use of this program, enabling employees to work in a lively
fashion and aiming to enhance the growth of our organization.

registration

Conducting
matching

Decision about
rejoining the Company

ten years had passed since I left the Company, but I was delighted to be greeted in-person and overe-mail with a warm “welcome home.” In my previous job, I was engaged in pharmaceutical application
work for medical equipment. And I was able to rediscover the great points of working in an environment
close to the design and development department, the manufacturing department, and more, while
communicating with them. I would like to make use of my roughly ten years of experience, and theacquired skills and perspective, and forge ahead with work so that I can contribute to not only medical
equipment but businesses related to medical care, nursing care, and health promotion both in Japanand overseas.

Tomoko Inoue, Sleep Research Institute, Paramount Bed Co., Ltd.

living in the UK, this year I returned to my work at the Sleep Research Institute to which I had belonged
before retiring. While being involved with community volunteer work and joining school activities, etc.,
in the UK, I gained a renewed awareness of the high quality of Japanese products, and I noticed newthings such as the high awareness of people with disabilities in British society. Because I received the

Corporate
GovernanceI left the Company five years ago to accompany my husband on an overseas job assignment. After

CapitalStrategy“Comeback System”

I rejoined the Company in January 2023 through the Comeback System. I was nervous because about

GrowthStrategy

by utilizing skills and new perspectives acquired at other companies. Going forward,

Hiromi Yamamoto, Quality Assurance Department, Paramount Bed Co., Ltd.

Value
Creation

We think that having a former employee accumulate new experiences and rejoin the

Prologue“Comeback System” for employees

CONTENTS

Materiality Initiatives

opportunity to take on this challenge again after returning to Japan, I would like to forge ahead withto sleep, people think of Paramount Bed, by making use of my experiences and perspectives gained
outside Paramount.

CorporateData

work so that I can contribute to improved health through sleep for all people and that when it comes

56

Integrated Report 2023

Capital Strategy

4

CONTENTS

Materiality Initiatives

Promotion of employee health, diversity and work style reform

supporting employee sleep● Programs for eligible users
HumancapitalSocialcapitalin collaboration with Nippon Telegraph and Telephone West Corporation. Since June
2023, all Group employees have been able to use it. Through this service, employees
can receive sleep-related classes, visualized sleep status, consultations via LINE*,
support on LINE, so it is possible to have as many consultations as wanted at any
time without worry. As a “Certified Health & Productivity Management Outstanding

We provide a sleep consulta-

In four online classes each year, we

Sleep-related consultations

tion service for employees.

foster sleep-related knowledge anddo a sleep check during the seminars.
This visualizes current sleep status
and offers a general overview of it.

are available via LINE.
We offer consultations toaddress concerns while
protecting employee privacy.

CapitalStrategy*LINE is a registered trademark of LINE Corporation.

The “NEMURI Supporters” website

Sleep improvement program
Our sleep improvement instructors who
are registered dietitians, public healthnurses, nurses, or other certified personnel
about sleep and offer close-following
sleep-improvement advice.

CorporateDatalook after employees who have concerns

Corporate
Governance（Japanese only）

GrowthStrategy

advice on improvement, etc. In particular, the dedicated staff members handle the

Sleep class

Value
Creation

Sleep counseling room

“NEMURI Supporters” is a service provided by NTT PARAVITA Co., Ltd., established

Organization,” we are working to further promote health.

Prologue“NEMURI Supporters”

57

Integrated Report 2023

Capital Strategy

5

CONTENTS

Materiality Initiatives

Environmentally conscious business activities

NaturalcapitalSocialcapitalPromoting recycling ofassistive products

NaturalcapitalManufacturing
Capitalrecycling used assistive products at Kakuix Wing. Currently, assistive products foran application that analyzes heart rate, respiratory rate, and body movement during

rental use are reused after cleaning, repair, and disinfection, before their final disposal.

sleep, scores your sleep, and gives advice. It gives “Sleep Points” depending on your

And in Kakuix Wing’s assistive product rental business, the used assistive products

sleep survey responses and sleep score. We promote an initiative that contributes tomade by Paramount Bed are collected, sorted, and disassembled at the Company.

activities growing forest through those points.

We are working to recycle 99% of them into metal, fuel, etc.

GrowthStrategy

In November 2022, we cooperated with Kakuix Wing Co., Ltd. to launch an initiative

the motto of “healthy environment and healthy people.” The “Active Sleep App” is

Value
Creation

We are carrying out planting activities in Indonesia by utilizing “Sleep Points” under

PrologueA planting activity using anapplication that transforms
your sleep into a forest

Number planted
Area under the National Permit System

trees❹Recycling

Roadbedmaterials

Partial amounts
to landﬁll

CorporateDatareportanddisassembly

Corporate
Governance❺Completion❸Dismantling

Metal
raw materials

Boiler fuelDisposalcontractors

Kakuix Wing

❷Collection

Paramount Bed❶Request

See details（Japanese only）

Collection
point

60,000CapitalStrategy

Equivalent toCorporate GovernanceIntegrated Report 2023

58

CONTENTS

Prologue

Value
Creation

GrowthStrategy

CapitalStrategy

Corporate
GovernanceCorporate
GovernanceCorporate
Data

59

Integrated Report 2023

Corporate Governance
CONTENTS

Corporate Governance

Relationship chart of corporate organizations and internal control

Fundamental approach

Election/Dismissal

Election/Dismissal

Election/Dismissal

PrologueShareholders meeting

Maintaining a sound framework for corporate governancecitizenship obligations by managing operations properly
and ensuring that all activities are transparent and incompliance with laws and regulations.
Paramount Bed Group will continue to position measures

Advisory/
Report on remuneration

Directors(Board of Directors)

Election/Dismissalof directors
Decision on theagendaElection/Dismissal

highest priorities and take actions as needed to improve

Cooperation

Directors andCorporate Ofﬁcers

Accounting audit

Instruction/
ReportElection/Dismissal

Corporate Ofﬁcers
Instruction/Report

ReportBusiness
operations

Sustainability Committee
Cooperation

Accounting Auditor

Internal Auditing
Department
ReportCooperation

Audit

Enlightenmentand guidance

Corporate
Data

Business units and group companies

Departments
involved withinternal controls

Corporate
GovernanceCorporate Governance Report（Japanese only）

Executive Committee(Centralized decisions for business operations)

Cooperation

CapitalStrategy

1. Respect for the rights of shareholders and equality for all
shareholders
2. Sustainable collaboration with shareholders and all otherstakeholders to reﬂect their interests
3. Proper disclosure of corporate information to maintaintransparency
4. Ensure the effectiveness of the Board of Directorsʼ oversightof business operations by using independent external
directors to receive objective advice and reﬂect the opinionsof all stakeholders
5. Engage in constructive dialogue with shareholders who haveinvestment policies that are consistent with the interests ofshareholders over the medium and long term

Nomination andRemuneration
Advisory
Committee

Audit andSupervisory Committee
Instruction/
Report Report

Chief Executive Ofﬁcer

governance according to the fundamental polices statedbelow.

ReportGrowthStrategy

to strengthen corporate governance as one of its

Audit/
Supervision

Election/Dismissal

Value
Creationis required to increase corporate value and fulfill corporate

60

Integrated Report 2023

Corporate Governance
CONTENTS

Functions and roles of major organizational units

Chairman: President and Chief Executive Ofﬁcer
Consists of six internal directors and three external
directors"

Audit andSupervisory Committee

Consists of one internal director
and three external directors

Executive Committee

Consists of directors, etc. ofParamount Bed HoldingsInternal Auditing
Department

Department Manager andthree members

In principle, the Audit and Supervisory Committee meeting is held once a month to conduct on-site audits ofbusiness 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 suchas the Executive Committee, hearing business reports from directors, and examining important documents.
In principle, the Executive Committee meeting is held once a month to have active discussions of a wide rangeof managerial issues to optimize management activities.
It is established as a voluntary advisory body to the Board of Directors to further enhance corporate governanceby strengthening the independence, objectivity and accountability of the Board of Directors’ functions related
to the appointment of director candidates and the remuneration of directors, excluding audit and supervisorycommittee members.
In accordance with the Internal Audit Rules, the Department systematically conducts 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 to report the progress of improvement regularly.
The Corporate Ethics Office implements various policies to promote compliance in cooperation with various
departments within the corporation.

Mainly Corporate Ethics Ofﬁce andFinance Department

In addition, it distributes the “Corporate Ethics Guidebook,” including the “Compliance Manual,” which contains
the corporation’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.

Corporate
Data

Departments involved
with internal controls

Corporate
GovernanceConsists of one internal director
and three external directors

matters required by law and of managerial importance.

CapitalStrategy

Nomination andRemuneration
Advisory Committee

In principle, the Board of Directors meeting is held once a month to discuss and make decisions promptly on

GrowthStrategy

Board of Directors

Activities and roles

Value
Creation

Members

Prologue

Organizational units

61

Integrated Report 2023

Corporate Governance

2

5

8

6
2

5
1

9
3

9

Yosuke Kimura

Director

Toshiyuki Hatta
Director

Masaki Kobayashi
Director(Full-time Audit and Supervisory Committee Member)

Kenji Ouchi

External Director(Audit and Supervisory Committee Member)

Yukari Oka

External Director(Audit and Supervisory Committee Member)

Yoshikazu Goto

External Director(Audit and Supervisory Committee Member)

Kazuo Takahashi

Corporate
Data

7

4

8

Senior Managing Director

Corporate
Governance

7

Tomohiko Kimura

CapitalStrategy

6

President and Chief Executive Ofﬁcer

GrowthStrategy

4

Kyosuke Kimura

Value
Creation

3

Chairperson

Prologue

1(As of June 29, 2023)

CONTENTS

Board of Directors, Audit and Supervisory Committee Members, Corporate Ofﬁcers

62

Integrated Report 2023

Corporate GovernancePresident and Chief Executive Ofﬁcer

Kyosuke Kimura

Tomohiko Kimura
Date of birth: July 17, 1977

Yosuke Kimura

Date of birth: October 10, 1980

Apr. 1979: Joined Paramount Bed Co., Ltd.

Apr. 2008: Joined Paramount Bed Co., Ltd.

Apr. 2013: Joined Paramount Bed Co., Ltd.

Aug. 1979: Member of the Board of Paramount Bed Co., Ltd.

Jun. 2010: Corporate Officer, Deputy Director of Business Strategy Planning

Jun. 2015: Corporate Officer, Deputy Director of Technical Engineering

Oct. 1982: Member of the Board of the Company
Apr. 1991: Senior Executive Director 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

Apr. 2009: President and Chief Executive Officer of Paramount Bed Co., Ltd.

Jun. 2014: Senior Corporate Officer of the Company

Feb. 2011: President and Chief Executive Officer of the Company

Jun. 2015: Member of the Board of Paramount Bed Co., Ltd.

Apr. 2020: Chairperson of the Company (present)

Apr. 2016: Senior Managing Director of Paramount Bed Co., Ltd.

Apr. 2020: Chairperson of Paramount Bed Co., Ltd. (present)

Jun. 2018: Senior Managing Director of the Company

Jun. 2021: Outside Member of the Board of Yuasa Trading Co., Ltd. (present)

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.

Paramount Bed Co., Ltd.
Apr. 2018: Member of the Board, Executive Director of Finance and System
Administration Division of Paramount Bed Co., Ltd.
Jun. 2019: Corporate Officer, General Manager of Finance Department and ofInformation System Department of the Company
Jun. 2020: Chief Financial Officer, Member of the Board, General Manager ofFinance Department and Information System Department of the Company
Jun. 2023: Senior Managing Director of the Company (present)
Jun. 2023: Senior Managing Director, Executive Director of Finance and System
Administration Division of Paramount Bed Co., Ltd. (present)● Signiﬁcant concurrent positions● Signiﬁcant concurrent positions● Signiﬁcant concurrent positions

President and Chief Executive Ofﬁcer ofSenior Managing Director,

Outside Member of the Board of

Paramount Bed Co., Ltd.

Executive Director of Finance and System

Yuasa Trading Co., Ltd.

Administration Division of Paramount Bed Co., Ltd.

Corporate
Data

Chairperson of Paramount Bed Co., Ltd.

Corporate
Governance(present)

Paramount Bed Co., Ltd.
Jun. 2017: Member of the Board, Director of Technical Engineering Division of

CapitalStrategy

Apr. 1997: Executive Vice President of Paramount Bed Co., Ltd.

Division of Paramount Bed Co., Ltd.
Apr. 2017: Corporate Officer, Director of Technical Engineering Division of

GrowthStrategy

Sep. 1987: Senior Managing Director of Paramount Bed Co., Ltd.

Division of Paramount Bed Co., Ltd.

Value
Creation

Date of birth: September 20, 1950

Senior Managing Director

Prologue

Chairperson(As of June 29, 2023)

CONTENTS

Board of Directors, Audit and Supervisory Committee Members, Corporate Ofﬁcers

63

Integrated Report 2023

Corporate GovernanceDirector

Toshiyuki Hatta

Masaki Kobayashi
Date of birth: August 4, 1972

Kenji Ouchi

Date of birth: January 12, 1959

Apr. 1984: Joined Paramount Bed Co., Ltd.

Apr. 1995: Joined Paramount Bed Co., Ltd.

Apr. 1982: Joined Paramount Bed Co., Ltd.

Jun. 2011: Corporate Officer, General Manager of Human Resource Department

Dec. 2012: President of Paramount Bed (Thailand) Co., Ltd.

Apr. 2009: Corporate Officer, Executive Director of Finance and System

and Public and Investor Relations Department of Paramount Bed Co., Ltd.
and Public and Investor Relations Department of the Company
Jun. 2018: Corporate Officer, General Manager of General Affairs Department
and Human Resource Department of the Company
Jun. 2018: Corporate Officer, Executive Director of Administration Division of
Paramount Bed Co., Ltd.

Shanghai Representative Office of Paramount Bed (China) Co., Ltd.
Jun. 2021: Corporate Officer, Deputy Executive Director of
Corporate Planning Division of Paramount Bed Co., Ltd.
Jun. 2022: Member of the Board, Chief Strategy Officer ofParamount Bed Co., Ltd. (present)

Administration Division of Paramount Bed Co., Ltd.
Oct. 2011: Corporate Officer, General Manager of Finance
Department of the Company
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)

Jun. 2023: Member of the Board of the Company (present)

CapitalStrategyJun. 2019: Member of the Board, General Manager of General Affairs

Jan. 2018: Member of the Board, Executive Sales Director of

GrowthStrategy

Oct. 2011: Corporate Officer, General Manager of Human Resource Department

Apr. 2017: Member of the Board of Paramount Bed (China) Co., Ltd.

Value
Creation

Date of birth: December 21, 1961

Director(Full-time Audit and Supervisory Committee Member)

PrologueDirector(As of June 29, 2023)

CONTENTS

Board of Directors, Audit and Supervisory Committee Members, Corporate Ofﬁcers

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. 2022: Director of the Company (present)● Signiﬁcant concurrent positions

Member of the Board,

Executive Director of Administration

Chief Strategy Ofﬁcer of Paramount Bed Co., Ltd.

Division of Paramount Bed Co., Ltd.

Corporate Auditor of Paramount Bed Co., Ltd.

Corporate
Data

Member of the Board,● Signiﬁcant concurrent positions

Corporate
Governance● Signiﬁcant concurrent positions

64

Integrated Report 2023

Corporate Governance

External Director

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

Date of birth: April 26, 1963

Date of birth: October 30, 1955

Date of birth: January 8, 1960

Yukari Oka

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

Apr. 1980: Joined Ministry of International Trade and Industry(currently Ministry of Economy, Trade and Industry)
Aug. 2003: Director, Standards Development and Planning Division,
Industrial Science and Technology Policy and Environment Bureau,
Ministry of Economy, Trade and Industry
Jun. 2004: Director, Small and Medium Enterprise Agency/Engineering Division,● Signiﬁcant concurrent positions(currently Daiwa Securities Co. Ltd.)
Apr. 2010: Executive Managing Director of Daiwa Securities Capital Markets Co., Ltd.
(currently Daiwa Securities Co. Ltd.)
Apr. 2012: Member of the Board and Executive Managing Director of
Daiwa Securities Co. Ltd.
Apr. 2013: Member of the Board and Senior Executive Managing Director of
Daiwa Securities Co. Ltd.
Apr. 2017: Corporate Executive Officer and Deputy President of
Daiwa Securities Group Inc.
Representative Director and Deputy President of Daiwa Securities Co. Ltd.
Jun. 2017: Member of the Board, Corporate Executive Officer and Deputy
President of Daiwa Securities Group Inc.
Jun. 2020: Corporate Executive Officer and Deputy President of
Daiwa Securities Group Inc.
Apr. 2022: Advisor of Daiwa Securities Co. Ltd.
Jun. 2023: External Director of the Company(Audit and Supervisory Committee Member) (present)

Corporate
Data

Vice-President, General Director of Technical Research Institute ofJapan Society for the Promotion of Machine Industry
External Director of Sodick Co., Ltd.
Representative Director of the Japanese Society for Wellbeing
Science and Assistive Technology

Apr. 2007: Senior Managing Director of Daiwa Securities SMBC Co., Ltd.

Corporate
GovernanceJapan Society for the Promotion of Machine Industry (present)
Jun. 2018: External Director of the Company(Audit and Supervisory Committee Member) (present)
Mar. 2022: External Director of Sodick Co., Ltd. (present)
Jun. 2022: Representative Director of the Japanese Society for
Wellbeing Science and Assistive Technology (present)

Apr. 1982: Joined Daiwa Securities Co. Ltd.

CapitalStrategy

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 of Technical Research Institute ofKazuo Takahashi

GrowthStrategy

Apr. 2011: External Corporate Auditor of the Company

Yoshikazu Goto

Value
Creation(Audit and Supervisory Committee Member)

Prologue

External Director(As of June 29, 2023)

CONTENTS

Board of Directors, Audit and Supervisory Committee Members, Corporate Ofﬁcers

65

Integrated Report 2023

Corporate Governance
CONTENTS

Board of Directors, Audit and Supervisory Committee Members, Corporate Ofﬁcers(As of June 29, 2023)

YosukeKimuraToshiyuki
Hatta

Masaki
Kobayashi

Kenji
Ouchi

YukariOka

Yoshikazu
Goto

Kazuo
Takahashi

Date of appointment as
director

October
1982

June
2018

June
2020

June
2019

June
2023

June
2022

June
2015

June
2015

June
2023

Number of shares held
(shares)

1,812,987

1,762,865

747,123

9,351

1,096

12,821

22,104̶̶Attendance at Board of
Directors meetings*

9/9 times

9/9 times

9/9 times

9/9 times̶

7/7 times

9/9 times

9/9 times

̶

●

●

●

●

GrowthStrategy

Tomohiko
KimuraExperience/skills possessed
Corporate management andmanagement strategy

●

●
●
●

●

●

●

●
●
●
*Attendance at Board of Directors meetings covers the period from April 2022 to March 2023.

Tatsunori Aiko

Kenji Miyajima

General Manager,
Investor Relations Dept.

̶

Corporate
Data

Corporate Ofﬁcers

Corporate
Governance

Human resources, labor relations
and human resource development

CapitalStrategy●

Legal and compliance

Global●●Finance and accounting
Production, technology and quality

Value
Creation

Kyosuke
KimuraPrologueDirectors

66

Integrated Report 2023

Corporate Governance
CONTENTS

Continuing to be a highly transparent company
I am pleased to report that I have assumed the position ofgeneral meeting of shareholders held in June 2023.
Since its founding, the Paramount Bed Group has

Prologueexternal director of Paramount Bed Holdings at the ordinary

developed various services, starting with manufacture and(Audit and Supervisory Committee Member)

Kazuo Takahashi

sales of medical beds.
The Group has built relationships of trust with numerous
stakeholders in the medical care and nursing care industries, as well as in the health promotion industry in more
In particular, the Group currently holds the No. 1 spot in thedomestic market share of medical and nursing care beds
and has established an unrivaled position. So it is fair to say
In the current business climate where transparency inmanagement is required, the Paramount Bed Group has
earned high marks in this area.
Directors meetings and the sincere approach the President,
who chairs the meetings, demonstrates in asking what
everyone thinks about proposals, are aspects that can beviewed positively from outside the Company as well.

as well as my management experience as a deputy president

incorporating what should be incorporated feels noticeably

This approach of listening opinions, considering them, andproactive.

CorporateDataknowledge gained from my experience at ﬁnancial institutions

Corporate
GovernanceContributing by leveraging my ﬁnancial and accounting

I think that the lively exchanges of opinions at the Board of

CapitalStrategythat the Paramount Bed Group is leading the industry.

GrowthStrategy

recent years.

Interview with the New External Director

Value
Creation

External Director

67Integrated Report 2023

Corporate GovernanceAlso, there may be many cases when women’s feelings

Group creates a proactive impression by taking educationing.

about design, fashion sense, etc., are better than thoseseriously and actively engaging in communication with

What kinds of businesses should we develop, and on whatfrom men.

people in the field.

specific schedules?

Especially in our B-to-C health promotion business, this is

Especially because this field holds so much potential, it

sure to be an important point going forward.

What is needed for future growthis necessary to make a particularly detailed and properly

The Paramount Bed Group has always addressed social

considered plan to materialize this.

issues.

I worked for 41 years from 1982 at Daiwa Securities andAnd I think that the second issue, “developing overseas

I will support the Group as it takes on these challenges

even experienced serving in the role of deputy president.

businesses,” also still has room to expand and break new

in order to grow as a company that greatly contributes to

For the second 20 years of that time period, I was engaged

ground.

society amidst a decreasing and aging population, and I

in corporate work.

There are countries like Indonesia, where we are proud towill meet the expectations of shareholders and investors.

I was responsible for a wide variety of work, including

already have a high market share in bed sales. So, thinking

corporate management strategy, governance, IR, and more,of future economic development, even greater expansion

for approximately 300 to 400 companies.

similar to Japan is surely possible.

And I would like to bring new perspectives to Paramount

However, each country also has points to be cautious of as

Bed Holdings’ management decisions based on thewell as its own risks.

knowledge and insight gained through this experience.

It is necessary to boldly but carefully distinguish between

As outlined earlier, the governance system is outstanding.

when to accelerate and when to put on the brakes.

On the other hand, I think that there are three managerial

The third point, “encouraging women in the workplace,” isissues to be addressed: (1) advancing the health promotion

also important.

business, (2) developing overseas businesses, and (3)Paramount Bed Group products and services are used by aencouraging women in the workplace.

wide range of people regardless of gender.

I think there is a great deal of room to grow in the first point,

Due to this, adjusting the male-to-female balance for both

Corporate
Datacustomer base for health promotion is significantly expand-Corporate
Governance

And in terms of corporate governance, the Paramount Bed

CapitalStrategy

to enhanced quality.

GrowthStrategy

directors and other officers and employees is certain to lead

Compared to medical care and nursing care, the potential

Value
Creationadvancing the health promotion business.

quality and quality control of products and services.

PrologueHigh transparency is also an important factor affecting the

CONTENTSInterview with the New External Director

68Integrated Report 2023

Corporate Governance
CONTENTS

Risk Management

Aiming to strengthen the company-wide risk management system, the Company has established the basic rules for risk management and has designated a responsible department for each

Prologue

Fundamental approachrisk to manage it.Should a serious risk occur or potentially occur, an emergency task force headed by the President and Chief Executive Officer is immediately convened in accordance with theetc.) as necessary, and to take measures to prevent recurrence.

Value
Creationabove 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,

Examples of business risks and mitigation measures
Risk details

Mitigation measures

Although official rates (medical and nursing care fees) are not set
for our main products, hospital and nursing care beds, revisions
in systems related to the public-sector medical insurance system
or long-term care insurance system, and the impact of periodic
public-sector rate revisions could reduce capital investment byReinforce efforts in the field of health promotion based on thetechnology and knowledge cultivated over the years in the
medical and nursing care fields.

medical facilities, the end customers of the Group.

Growth of overseas
operations

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

production and sales sites are located, and in the regions
where we sell our products (in particular, stricter enforcement
and changes in environmental regulations, product safety andquality regulations, and medical device registration regulations
in each country), and implement necessary responses.

Corporate
Data

recruiting employees.

conditions and related regulations in the countries where our

Corporate
GovernanceGather daily information on political, economic, and social

CapitalStrategy

Revisions to systems andother items affecting
the business climate

GrowthStrategy

Major risks

69

Integrated Report 2023

Corporate Governance
CONTENTS

Examples of business risks and mitigation measures

Risk of delayed procurement due to a delay or interruption in the

Defective products andcomponents

Risk that the Group’s social trust may be reduced due to a defective

materials.

product or other item that requires a large-scale recall with substantial
expenses.

measures. Adoption of general-purpose parts.

Development of a perfect system for product quality control,
including manufacturing in accordance with international
standards for quality systems and various in-house standards.
Signing up for liability insurance.

Formulation of a business continuity plan (BCP) in the event

accidents that may severely damage a factory of a group company

of a major earthquake, preparation of a safety confirmation

or a supplier, causing suspension of operation, delays or reduction ofsystem and emergency communication networks, and periodic

production and shipment.

training.

ring due to large-scale disruptions to cloud services and networks,
resulting in reduced social trust for the Group.

of efforts such as enhancing employees’ information security
awareness.

CorporateDatacyber-attacks, or other events beyond our reasonable expectations,

Along with signing up for liability insurance, implementation

Corporate
GovernanceRisk of an earthquake or other natural disaster or a major fire or otherRisk of information system suspension and information leaks occur-

Information security

Expansion of potential suppliers, supplies, and alternative

CapitalStrategy

Natural and other disasters

supply of a vital material or product, resulting in shortage of such

GrowthStrategy

Procurement of certain
materials and other items

Mitigation measures

Value
Creation

Risk details

Prologue

Major risks

70

Integrated Report 2023

Corporate Governance
CONTENTS

Compliance

The Paramount Bed Group has established corporate principles and code of corporate conduct, and strives to fulfill its social responsibility and further enhance its corporate value by practicing

Prologue

Fundamental approachsocial contribution through its business activities.

Value
Creation

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 and ourMain initiatives
Corporate ethics initiatives●Paramount Bed Group contributes to the enhancement of medical care, clinical nursing, and nursing care environments by providing

・Providing compliance training

products and services that satisfy customers through their safety and high quality.
●Paramount Bed Group appropriately manages corporate information and provides timely and appropriate information disclosures in orderto build public appreciation and confidence in the Paramount Bed Group.

・Making a Corporate Ethics

Guidebook and utilizing it in training

・Regularly distributing messages fromthe Corporate Ethics Office●Paramount Bed Group is committed to the preservation of the global environment and conducts environmentally conscious business●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.
●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.

・Conducting employee awarenesssurveys on a timely basis

・Establishing consultation andreporting contacts

・Monitoring compliance status from amultifaceted perspective

Corporate
Data

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

Promotion of highly
transparent governanceCorporate
Governanceactivities.

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

GrowthStrategy

responsibility as a member of society, and act with integrity in accordance with the following principles.

Corporate Data
Integrated Report 2023

71

CONTENTS

Prologue

Value
Creation

GrowthStrategy

CapitalStrategy

Corporate
Data

Corporate
GovernanceCorporate
Data

72

Integrated Report 2023

Corporate Data

Financial overview
During the fiscal year ended March 31, 2023, the Japanese economy

Operating income, operating income margin(Millions of yen)

99,009100,000

80,00087,17180,08890,352

13,452

14,000

11,582

12,000

10,58082,37910,00013.2（%）

12,340

9,906
12.0

13.6

13.7

While society moves into a new phase of “living with COVID-19,” medical

20

customers, have continued to experience various impacts.

8,000

60,000

6,000

5

0

0

0

2020/32021/32022/32023/3

2019/32020/3Operating income

2021/32022/32023/3Operating income margin10

and nursing care-related organizations, which are the Group’s main
Our Group hopes to contribute to the maintenance of the medical andnursing care systems by continuing to provide various services and services.
Under such an environment, the net sales for the fiscal year ended March
31, 2023 increased by 8,656 million yen (9.6% increase) compared to theprevious period to total 990,09 million yen. Operating income increased
by 1,112 million yen (9.0% increase) to 13,452 million yen compared tothe previous period, ordinary income increased by 595 million yen (4.4%
increase) to 14,139 million yen compared to the previous period, and net

GrowthStrategy

70,0002019/3other factors.

25

15

13.3

to raw material prices, unstable exchange rates, the situation in Ukraine, andValue
Creation

90,000(Millions of yen)economic activities, but future conditions remained unclear due to increases

Prologueshowed signs of gradual recovery after movement toward normalization of

Net sales

CONTENTSManagementʼs Discussion and Analysis of Financial Condition and
Results of Operation (MD&A)

income attributable to owners of the parent increased by 122 million yen

Net income attributable to owners of the parent

Total assets, net assets(Millions of yen)

10,000180,000

9,092

9,000

9,215

8,611

8,000
7,000

7,043

120,000

0

154,358

128,697

113,822

121,675

100,000

2019/32020/32021/32022/32023/30

2019/3

Total assets

2020/32021/3

Net assets

Total assets as of March 31, 2023 increased by 8,011 million yen from March
31, 2022 to 172,293 million yen.Total liabilities increased by 989 million yen

144,006 144,257

108,242 107,066

Financial condition

2022/32023/3

to 43,596 million yen.Net assets increased by 7,022 million yen to 128,697
million yen.As a result, equity-to-asset ratio was 74.7% and net assets per
share was 2,207.86 yen.

Corporate
Data

6,000

164,281

160,000
140,000

6,704

172,293

Corporate
Governance(Millions of yen)

CapitalStrategy(1.3% increase) to 9,215 million yen.

73

Integrated Report 2023

Corporate Data

Operating CF, investing CF, ﬁnancing CF, free CF（%）(Millions of yen)
12,000

100

60

75.16

74.22

73.74

4,000

74.06

5,450

-4,000-2,842

9,087

5,508

7,822
8,738

-1,541-3,579-3,0442020/32021/32022/32023/3-12,000

2019/3Operating CF
Financing CF-7,4752020/3

9,151

-200

2,819

2021/32023/3

3,000
2,000

2,082

2019/32020/32021/32022/32023/3for opening two Paramount Care Service Co., Ltd. maintenance centers.

1,782

1,697

1,753

Research and development status
Based on the corporate principles of “We Create Comfortable Healthcare Environments through Cutting-edge Technology with a Human Touch,” the Group’s
research and development activities are handled by the Sleep Research Institute800

and a total of five departments under the Technology Development Division

400

Technology Department, Development Department, Design Department, IBS

0of the core subsidiary, Paramount Bed Co., Ltd.: R&D Department, Elemental
Solution Development Department. Research and development expenses for
2019/32020/32021/32022/32023/3the fiscal year ended March 31, 2023 are 1,753 million yen.

Corporate
Data

1000
0

1,677

1,200

1,822

related to the installation of our new core work system and 532 million yen

Corporate
Governance

2,976

1,600

Capital investment status

There were no material disposals or sales of facilities during this fiscal year.

2,000

3,653

This was mainly due to dividend payments of 3,321 million yen.

CapitalStrategy(Millions of yen)

4,000

The cash decreased as the result of financing activities amounted to 3,232 million yen.

totaled 3,653 million yen.Major capital investments include 1,677 million yen(Millions of yen)

1,642

and 1,988 million yen in purchase of intangible assets, and an increase of 1,994 million

Capital investment expenses for the fiscal year ended March 31, 2023

Research and development expenses

3,984

was mainly due to a decrease of 2,898 million yen in purchase of investment securities■ Cash flows from financing activities-6,3322022/3

rental assets of 8,005 million yen and in income taxes paid of 4,685 million yen.

yen in proceeds from sale of securities.

-3,365-3,232

Investing CF
Free CF

depreciation and amortization of 8,482 million yen, and decreases both in the increase in

The cash decreased as the result of investing activities amounted to 6,332 million yen.This

Capital investment expenses
5,000

The cash increased as the result of operating activities amounted to 9,151 million yen.This■ Cash flows from investing activities

7,602-8,0002019/3■ Cash flows from operating activities

GrowthStrategy

20-2,464factors are as follows.

was mainly due to increases in the profit before income taxes of 13,812 million yen and

10,279

0

40

0

8,000

31, 2023 totaled 45,663 million yen.The status of each cash flow and their

Value
Creation

74.70

80

7,914

Cash and cash equivalents (hereinafter referred to as “cash”) as of March

Prologue

Equity-to-asset ratio

Cash ﬂow status

CONTENTSManagementʼs Discussion and Analysis of Financial Condition and
Results of Operation (MD&A)

74

Integrated Report 2023

Corporate Data
CONTENTS

Financial and Non-ﬁnancial Data
Operating income
Operating income margin (%)
Net income attributable to owners of the parent
Comprehensive income
Net assets
Total assets
Net income per share (yen)Annual dividend per share (yen)Dividends on equity ratio (DOE) (%)
Equity-to-asset ratio (%)
Return on equity (%)
Cash ﬂows from operating activities
Cash ﬂows from ﬁnancing activities
Cash and cash equivalents
Price earnings ratio (PER) (times)
Price to book-value ratio (PBR) (times)
Number of employees (persons)

2019/32020/32021/32022/32023/372,79475,27074,08973,19877,22080,08882,37987,17190,35299,009

13.3

13.0

15.0

13.8

13.2

12.0

13.3

13.7

13.6

11,541
15.9

12,3577,384
7,884

10,038
11,553
7,264
8,251

82,571

85,391

1,345.41

1,453.42
30.0

122,302120.51
25.0
1.9

20.8

67.50
9.30

6,373

125,508
122.02
2.1

24.6

68.04

8.65

8,151

9,660
9,830
6,387
5,039

2,496

7,043
6,212

13,461
8,611
9,664

13,543
9,092

10,80914,1399,215
9,432

1,461.50

1,600.45

1,726.95

1,800.25

1,841.97

1,958.23

2,092.47

2,207.86

35.0

45.0

45.0

50.0

50.0

51.5

55.0

59.0

126,279
110.882.4

31.6

128,962160.072.9

28.1

139,176148.62
2.7

30.3

67.49

68.54

73.87

9,657

12,019

9,967

7.49

1.37

2,404

7,064

10,145

128,697

1.09

1,246

6,704

13,452

121,675

22,615

1,256

8,257

10,923

12,340113,822

20,45312.8

8,366

11,582

107,066

21,313
1.20

8,533

12,161

9,906

108,242-2,037

13.4

9,034

10,580102,803-3,615-5,375

11,788

10,661

88,391

85,223-7,055
8,809

11,015-5,493
18.3

1,385
2,638

10.41
-936

8.75

144,006
111.84
2.8

44.7

75.16

6.35

7,914

144,257
118.21
2.7

42.3

10,2797,822

34,43537,06935,009

1.39

1.57

1.36

1.21

1,600
2,685

19.3

1,589
2,925

22.0

1,642
3,224

35.2

9,087

6.54

27,644
13.6

34.8

2.7

74.06

-3,579-2,8422.7

156.3973.74-2,464-2,621148.15

164,281

74.22

-493

-5,641

154,358-7,475
18.5

1,677
3,494

7.80

7.72

172,293158.37
2.7

37.3

74.70
7.36

9,151

-220

-6,33240,75645,462

45,663

1.24

0.95

1.07

-1,541-3,044
16.4

1,782
3,614

-3,365
12.8

1,697
3,682

-3,232
14.9

1,753
3,946

(Note) 1. The Company carried out a 1:2 stock split of common shares effective April 1, 2021.Net assets per share, net income per share, and annual dividend per share were calculated on the assumption that the share split had been conducted at the beginning of the fiscal
year ended March 31, 2014.
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 and beyond
are the those after applying such accounting standard.

Corporate
Data

Research and development expenses

2018/3

Corporate
GovernanceCash ﬂows from investing activities

2017/3

CapitalStrategy

Dividend payout ratio (%)

2016/3GrowthStrategy

Net assets per share (yen)2015/3

Value
Creation

Ordinary income

2014/3

Prologue

Net sales

Unit: Millions of yen

75

Integrated Report 2023

Corporate Data
CONTENTS

Corporate Information

Head ofﬁce

14-5, Higashisuna 2-chome, Koto-ku, Tokyo 136-8671, JapanPhone+81-3-3648-1100 (operator)

Capital4,207,430,300 yen (as of March 31, 2023)

Listing

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

Number of employees

Consolidated: 3,946 (as of March 31, 2023)

Business lines

Control or management through ownership of shares or interestsof medical and nursing care beds, mattresses, hospital room furniture, medical equipment, and services such as inspection, repair,disinfection, and maintenance leasing of beds and mattresses, as

Paratechno Co., Ltd.

Paramount Care Service Co., Ltd.

Sadashige Special Plywood Co., Ltd.
●Domestic non-consolidated subsidiaries

KP Service Co., Ltd.

PARAMOUNT BED Healthcare Fund●Overseas consolidated subsidiaries

Paramount Bed Asia Paciﬁc Pte. Ltd.
PT. Paramount Bed Indonesia

Paramount Bed (China) Co., Ltd.

Paramount Bed Vietnam Co., Ltd.
●Overseas non-consolidated subsidiaries

Paramount Bed (Thailand) Co., Ltd.
Paramount Bed India Pvt. Ltd.

Paramount Bed Mexico S.A. de C.V.
Paramount Bed USA Corporation

CorporateData

well as the rental wholesale of assistive products

Paramount Bed Co., Ltd.

Corporate
Governancein business companies engaged in the manufacture and sale

●Domestic consolidated subsidiaries

CapitalStrategy

PARAMOUNT BED HOLDINGS CO., LTD.

GrowthStrategy

English nameMain Group companies

Value
Creation

Paramount Bed Holdings Co., Ltd.

Prologue

Corporate name

76

Integrated Report 2023

Corporate Data
CONTENTS

Stock Information (as of March 31, 2023)
Distribution of shares

Total number of shares issued

61,754,974

Number of shareholders

10,577

Individuals and others 24.1%
Securities companies 0.8%
Treasury stock 5.6%
Financial institutions 25.5%

Major shareholders
Shareholding
ratio

Foreign companies, etc. 21.5%

Number ofshares held

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

thousand
9,989 shares

CTOC Co., LTD.

5,642

9.7

LLAGE WOOD Co.

4,146

7.1

Custody Bank of Japan, Ltd. (Trust Account) 2,030

3.5

Michihide Kimura

1,822

3.1

Kyosuke Kimura

1,812

3.1

Kenji Kimura

1,781

3.1

Tomohiko Kimura

1,762

3.0

THE BANK OF NEW YORK MELLON(INTERNATIONAL) LIMITED 131800

1,644

2.8

SION Co., LTD.

1,375

2.4

2,000,000

WISE LIGHT Co., LTD.

1,375

2.4

0

Other domestic companies 22.5%

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

50,000 to 99,999
100,000 to 499,999

1.1%
3.6%
3.1%
9.9%

Breakdown by
number ofshares held

17.1 ％

10-year share price/volume trends
Share price (yen)3,000

CapitalStrategy

2,500
2,000
1,500
1,000
Volume (shares)
8,000,000

6,000,000

Corporate
Governance

4,000,000

March September March September March September March September March September March September March September March September March September March September March
2013
2013
2014
2014
2015
2015
2016
2016
2017
2017
2018
2018
2019
2019
2020
2020
2021
2021
2022
2022
2023

*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.

Corporate
Data*The Company holds 3,464,828 shares of treasury stock.
The shareholding ratio above is calculated after deducting the shares of treasury stock.

Breakdown by
type ofshareholder

GrowthStrategy

Name of shareholders

500,000 or more 76.1%
Less than 1,000 3.1%
1,000 to 4,999 3.1%

Value
Creation

252,000,000

Prologue

Total number of authorized shareshttps://www.paramountbed-hd.co.jp/english