Value Creation
Integrated Report 2023

13CONTENTS

PrologueValue
Creation

GrowthStrategy

Value Creation

CapitalStrategy

Corporate
GovernanceCorporateData14

Integrated Report 2023

Value Creation
CONTENTS

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

ValueCreation

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
Dataers 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.

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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 ofWe are aiming for this kind of medical care, and supporting patients, medicalworkers, and hospital operations.

CorporateData

Medical Care

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

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Integrated Report 2023

Value Creationindividual to bring about more andThe worries and stress involved in nursing care are an issue affecting bothValue
Creationmore moments of joy

PrologueSupporting ways of life unique to eachCONTENTS

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.

CapitalStrategygeneration and workers are shrinking.

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Integrated Report 2023

Value Creation
CONTENTS

Health Promotion Businesshealthy lives, where there is little need forValueCreation

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.

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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 “socialrentals of products and services necessary for

products rental service providers and rentalcontribution 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. Andstay, 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 aWe 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.

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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
serviceCorporate
Data

Ability to make proposals and sales
ability to meet customersʼ needs

CorporateGovernanceCutting-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.

NursingCareBusiness● 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 Creationwork 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 notand 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 isGrowth
Strategy

more, the serious personnel shortage

Value
Creation

Demand for medical and nursing care is

Prologue

Solving Social Issues with the Smart Bed System™

SmartBedSystem

CONTENTSF 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

ValueCreation

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 well1. 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, andmonitor

bedside monitor

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

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

32hospitals(As of March 2023)

CorporateData

our beds with sensors to detect

CorporateGovernance

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

Implemented at
a total ofCapital
Strategy

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

Prologue

Body motion sensor

The Group announced the Smart Bed

22Integrated Report 2023

F E AT U R EValue
Creation

the Future of the Healthcare FieldPrologue

Establishing Corporate Venture Capital (CVC) forCONTENTS

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 ofCVC fund is expected to invest 5 billion

start-up companies offering innovative

yen in promising start-up companies intechnologies and outstanding servicesJapan 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 toOfﬁcial 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 weactively 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

GrowthStrategy

businesses as we form deeper relation-Capital
Strategy*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

CorporateData

Develops and provides IoT platforms for private homes

CorporateGovernance

LinkJapan Inc.

ValueCreationis "business synergy." We regularly andPrologue

improve the speed at which we link ourCONTENTS

One major objective of our investments

24Integrated Report 2023

Value Creation
CONTENTS

Value Creation Process
P.25

Managementresources
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 withMedical carebusinessa Human Touch

Nursing carebusiness

Health promotion
businessNet sales

99,009million yen

Operating income

13,452million yen

as human, for human

Operating income margin

Smiles for Everyone fromP.32

Medical and Nursing Care toHealth FieldStrengths

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 ofhospitals 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 medicaland 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 solutionsystem

P.34• Strong relationships of trustwith customers• Sound financial andnon-financial indicators

CapitalStrategy

Paramount Vision 2030

Business value

GrowthStrategy

Statement

P.27--P.31

Provided valueValueCreation

We Create Comfortable Health-Medium-termManagement PlanOUTCOME

Prologue

MATERIALITY

Priority issues to be addressed

INPUT

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Integrated Report 2023

Value Creation
CONTENTS

Materialitybasis. 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

SSE
GCorporateData

6

Ensuring compliance

SCorporateGovernance4

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

GrowthStrategy

2Creation 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