Note: This document has been translated from the Japanese original for reference purposes only. In the event of any
discrepancy between this translated document and the Japanese original, the original shall prevail.

Feb 4, 2014

Consolidated Financial Results
for the First Nine Months of the Fiscal Year Ending March 31, 2014
<under Japanese GAAP>
Company name: Paramount Bed Holdings Co., Ltd.
Listing:
Tokyo Stock Exchange
Securities code: 7817
URL:
http://www.paramountbed-hd.co.jp
Representative: Kyosuke Kimura, President and Representative Director
Contact:
Kenji Ouchi, Executive Officer, General Manager of Finance Division
TEL: 03-3648-1100
Scheduled date to file Quarterly Securities Report:
Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results presentation meeting:February 13, 2014
–None
None

(Millions of yen with fractional amounts discarded, unless otherwise noted)

1.

Consolidated financial results for the first nine months of the fiscal year ending
March 31, 2014 (from April 1, 2013 to December 31, 2013)(1) Consolidated operating results (cumulative)
Net sales(Percentages indicate year-on-year changes.)

Operating income% Millions of yen

Net income

Millions of yen

December 31, 2013

45,931

1.0

6,062 (19.4)

6,558 (15.3)

3,983 (13.0)

December 31, 2012

45,468 240.1

7,519 308.3

7,744 344.4

4,579 450.0

Note:% Millions of yen

Ordinary income

Nine months ended

Comprehensive income Nine months ended December 31, 2013: ¥4,955 million:
Nine months ended December 31, 2012: ¥5,010 million:
Basic earnings
per share% Millions of yen[(1.1)%][477.2%]

Diluted earnings
per share

Nine months endedYen

Yen

December 31, 2013

130.03123.30December 31, 2012

149.42149.02(2) Consolidated financial position
Total assets
As ofNet assets

Equity-to-asset ratio

Millions of yen

Millions of yen%

December 31, 2013

113,404

80,091

70.4

March 31, 2013

103,901

76,62573.5

Reference: Equity
As of December 31, 2013: ¥79,782 million
As of March 31, 2013:¥76,320 million%

2.

Dividends
Dividends per shareFirst quarter-end

Second quarter-end Third quarter-end

Fiscal year-end

TotalYen

Yen

Yen

Yen

Yen–20.00

–

25.00

45.00

–25.00–25.0050.00

Fiscal year ended
March 31, 2013
Fiscal year ending
March 31, 2014
Fiscal year ending
March 31, 2014
(Forecast)

Note: Revisions to the dividends forecasts most recently announced: None3.

Consolidated earnings forecasts for the fiscal year ending March 31, 2014
(from April 1, 2013 to March 31, 2014)(Percentages indicate year-on-year changes.)
Net sales

Fiscal year ending
March 31, 2014

Operating income

Ordinary income

Basic earnings
per share

Net income

Millions ofyen%Millions ofyen%Millions ofyen%Millions ofyen%

Yen

70,4005.5

12,2008.512,600

5.2

7,600

7.1

248.08

Note: Revisions to the earnings forecasts most recently announced: None*Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in
the change in scope of consolidation): None
Note: For changes in subsidiaries that are not deemed as changes in specified subsidiaries, please refer to “2. Mattersregarding summary information (Notes), (1) Changes in significant subsidiaries during the period” on page 3 of theattached materials.

(2) Application of special accounting for preparing quarterly consolidated financial statements: None
(3) Changes in accounting policies, changes in accounting estimates, and restatementa. Changes in accounting policies in accordance with changes in accounting standards, etc.: Noneb. Changes in accounting policies due to other reasons: Nonec. Changes in accounting estimates: None
d. Restatement: None(4) Number of shares issued (common stock)a. Number of shares issued at the end of the period (including treasury stock)
As of December 31, 2013
As of March 31, 2013b.

Number of shares of treasury stock at the end of the period
As of December 31, 2013
As of March 31, 2013c.

30,821,687 shares
30,792,587 shares

158,024 shares
188,384 shares

Average number of shares outstanding during the period (cumulative from the beginning of thefiscal year)
Nine months ended December 31, 2013
Nine months ended December 31, 2012

30,632,332 shares
30,651,221 shares* Indication regarding execution of quarterly review procedures
The completion of quarterly review procedures in accordance with the Financial Instruments and Exchange Act is
not required for preparing this quarterly financial results report. At the time of disclosure of this quarterly financialresults report, the review procedures for quarterly consolidated financial statements in accordance with the FinancialInstruments and Exchange Act are incomplete.
* Proper use of earnings forecasts, and other special matters
Caution regarding forward-looking statements and others
The forward-looking statements, including earnings forecasts, contained in these materials are based on information
currently available to the Company and on certain assumptions deemed to be reasonable. Consequently, thestatements herein do not constitute assurances regarding the Company’s actual results. Actual financial and otherresults may differ substantially from the statements herein due to various factors. Please refer to “1. Qualitative
information regarding financial results for the first nine months, (3) Information regarding consolidated earnings
forecasts and other forward-looking statements” on page 3 of the attached materials for the suppositions that form theassumptions for the earnings forecasts and cautions regarding the use of the earnings forecasts.

Attached Materials

Index
1. Qualitative information regarding financial results for the first nine months ........................................ 2(1) Information regarding operating results ........................................................................................... 2(2) Information regarding financial position ......................................................................................... 2(3) Information regarding consolidated earnings forecasts and other forward-looking statements ...... 32. Matters regarding summary information (Notes) ................................................................................... 3(1) Changes in significant subsidiaries during the period...................................................................... 3(2) Application of special accounting for preparing quarterly consolidated financial statements......... 3(3) Changes in accounting policies, changes in accounting estimates, and restatement ....................... 3
3. Significant events regarding premise of going concern ......................................................................... 3
4. Quarterly consolidated financial statements ........................................................................................... 4(1) Consolidated balance sheets............................................................................................................. 4(2) Consolidated statements of income and consolidated statements of comprehensive income .......... 6Consolidated statements of income (cumulative) ............................................................................ 6Consolidated statements of comprehensive income (cumulative) ................................................... 7(3) Notes to quarterly consolidated financial statements ....................................................................... 8Notes on premise of going concern.................................................................................................. 8Notes on substantial changes in the amount of shareholders’ equity ............................................... 8-1-

1.

Qualitative information regarding financial results for the first nine months(1) Information regarding operating results
The Japanese economy continued to mount a gradual recovery in the nine months ended December
31, 2013. This mainly reflected improvements in corporate earnings on the back of continuing yen
depreciation and stock price rises, partly due to the effects of various measures taken by thegovernment to end deflation and revitalize the economy. Nevertheless, Japan’s economic prospects
remained unclear mainly because of downside risks from downswings in overseas economies,
particularly in emerging countries.
Amid this environment, the Paramount Bed Group (the “Group”) pushed ahead with activities tocapture renewal demand in its core business of product sales targeted at medical and elderly
facilities. The Group also made concerted efforts to strengthen its overseas business and expand its
domestic business fields.
In the overseas business, Paramount Bed Mexico S.A. de C.V. and Paramount Bed Vietnam Co.,
Ltd. were established with the aim of enhancing coordination across the Group and optimizing theGroup’s production locations. Paramount Bed Mexico S.A. de C.V., which is a sales company
serving the countries of Central and South America, started operations in January 2014. Paramount
Bed Vietnam Co., Ltd., which will manufacture medical care bed-related equipment and otherproducts, is scheduled to start operations in June 2014.
In Japan, four new offices were established to expand the rental business for welfare equipment,bringing the number of directly-managed offices to 54 nationwide.
With respect to product development, the launch of the “Rakusho Z Series” of beds, a core series ofproducts for home caregiving, was announced. The series is equipped with a variety of functions
that help users be more independent, lighten the load on caregivers, and contribute to efficiency inthe operations of welfare equipment rental providers. As an example, the series has a new functionthat enables the whole bed to be tilted. The “Rakusho Z Series” was put on sale in January 2014.
On the sales front, results in the business of product sales targeted at facilities in Japan were downin comparison with the strong results of the same period of the previous fiscal year. This mainlyreflected a decline in new construction-related orders. Even so, aside from this business, sales weregenerally solid both in Japan and overseas.
As a result of the above, in the nine months ended December 31, 2013, net sales were ¥45,931
million (up 1.0% year on year), operating income was ¥6,062 million (down 19.4%) and ordinary
income was ¥6,558 million (down 15.3%). Net income was ¥3,983 million (down 13.0%).
Because the business of the Group consists of a single business segment, information by businesssegment is not provided.
(2) Information regarding financial position
Total assets as of December 31, 2013, amounted to ¥113,404 million, which was an increase of¥9,502 million compared to March 31, 2013. The primary factors in this increase were increases incash and deposits, securities, and merchandise and finished goods, while on the other hand there
was a decrease in notes and accounts receivable-trade.
Liabilities amounted to ¥33,312 million, which was an increase of ¥6,036 million compared toMarch 31, 2013. The primary factor in this increase was the issuance of bonds with subscription
rights to shares in the second quarter ended September 30, 2013, while on the other hand there wasa decrease in income taxes payable.
Net assets amounted to ¥80,091 million, which was an increase of ¥3,466 million compared toMarch 31, 2013. The primary factors in this increase were increases in retained earnings, valuationdifference on available-for-sale securities and foreign currency translation adjustment. As a result,the equity-to-asset ratio as of December 31, 2013, decreased by 3.1 percentage points compared toMarch 31, 2013, to 70.4%.

-2-(3) Information regarding consolidated earnings forecasts and other forward-looking statements
No revisions have been made to the consolidated earnings forecasts announced on May 13, 2013.

2.

Matters regarding summary information (Notes)(1) Changes in significant subsidiaries during the period
No items to report.
Effective from the first quarter ended June 30, 2013, Paramount Bed Asia Pacific Pte. Ltd., which
was previously an unconsolidated subsidiary of the Company, has been included in the scope ofconsolidation in line with an increase in its significance within the Group. However, this change is
not deemed a change in specified subsidiaries.
(2) Application of special accounting for preparing quarterly consolidated financial statements
No items to report.
(3) Changes in accounting policies, changes in accounting estimates, and restatement
No items to report.

3.

Significant events regarding premise of going concern
No items to report.

-3-4.

Quarterly consolidated financial statements(1) Consolidated balance sheets(Millions of yen)
As of March 31, 2013
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Lease receivables and investment assets
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts

As of December 31, 2013

16,073
21,616
2,287
4,640
4,094
243
1,313
2,531
(60)

20,43815,321
2,288
8,561
5,704
291
1,633
3,383
(49)

52,73957,571

26,335(16,836)

26,707(17,386)

Buildings and structures, net

9,499

9,320

Machinery, equipment and vehicles
Accumulated depreciation

7,056(5,835)

7,354(6,146)

1,220

1,207

Land
Lease assets
Accumulated depreciation
Lease assets, net

8,676
361
(240)
120

8,685
252
(165)
86

Assets for rent
Accumulated depreciation

13,978(5,085)

15,540(5,948)

8,892

9,592

191
8,126(6,806)

89
8,800
(7,137)

Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation

Machinery, equipment and vehicles, net

Assets for rent, net
Construction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

-4-

1,320

1,662

29,92030,644

121
2,299

64
2,157

2,420

2,221

15,184
3,701(65)

19,3153,714(63)

18,821

22,966

51,162

55,832103,901

113,404

(Millions of yen)
As of March 31, 2013
Liabilities
Current liabilities
Accounts payable-trade
Short-term loans payable
Lease obligations
Income taxes payable
Provision for bonuses
Provision for directors’ bonuses
Other
Total current liabilities
Noncurrent liabilities
Bonds with subscription rights to shares
Long-term loans payable
Lease obligations
Provision for retirement benefits
Provision for environmental measures
OtherTotal noncurrent liabilities

As of December 31, 2013

7,978215
1,981
3,460
1,125
104
4,346

6,890
472
2,158
482
586
–
4,170

19,212

14,760

–
457
3,665
3,278
46
616

10,045
512
3,492
3,661
46
793

8,064

18,551

Total liabilities

27,27633,312

Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock

4,135
49,80521,656(477)

4,160
49,83024,082(405)

75,12077,668

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment

Total shareholders’ equity

766
434

1,196
917

Total accumulated other comprehensive income

1,200

2,114

29
275

20
288

76,62580,091103,901

113,404

Subscription rights to shares
Minority interests
Total net assets
Total liabilities and net assets-5-(2) Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income (cumulative)(Millions of yen)
Nine months ended
December 31, 2013

Nine months ended
December 31, 2012
Net sales
Cost of sales

45,46824,04245,931
24,694Gross profit

21,425

21,237

Selling, general and administrative expenses

13,90615,175

Operating income

7,519

6,062

806769–
37141

134
156
150
148
218
117

396

926

83
64–
2367–
320
42

Non-operating income
Interest income
Dividends income
Foreign exchange gains
Gain on investments in partnership
Gain on investments in silent partnership
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on investments in partnership
Directors’ retirement benefits
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Gain on redemption of investment securities
Total extraordinary income
Extraordinary loss
Loss on sales of investment securities
Loss on redemption of investment securities
Total extraordinary losses

171

430

7,744

6,558

51
–51

225
54
280

44
57

10102

1

Income before income taxes and minority interests

7,693

6,837

Income taxes-current
Income taxes-deferred

2,907
145

2,640
200

Total income taxes

3,053

2,841

Income before minority interests

4,640

3,996

Minority interests in income
Net income-6-60

13

4,579

3,983

Consolidated statements of comprehensive income (cumulative)(Millions of yen)
Nine months ended
December 31, 2013Nine months ended
December 31, 2012
Income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of theparent
Comprehensive income attributable to minority
interests

-7-

4,640

3,996

307
62

430
529

370

959

5,010

4,955

4,950

4,896

60

58

(3) Notes to quarterly consolidated financial statements
Notes on premise of going concern
No items to report.
Notes on substantial changes in the amount of shareholders’ equity
No items to report.

-8-