Financial Results for 2Q FY2021
November 5, 2021
Benesse Holdings, Inc.

This presentation contains forward-looking statements concerning the future plans, strategies, beliefs and performance of Benesse Holdings, Inc.
and its subsidiaries. These forward-looking statements are not historical facts. They are expectations, estimates, forecasts and projections basedon information currently available to the Company and are subject to a number of risks, uncertainties and assumptions. As such, actual results
may differ materially from those projected.

2Q FY2021 Results Summary andFull-Year Forecasts
Shinsuke Tsuboi
Executive Officer, CFO,Managing Director of Finance and Accounting
Benesse Holdings, Inc.

Highlights for 1H FY2021 (YoY)
Sales and income both up strongly YoY

230.0
220.0

224.7

Net 210.0
sales 200.0

217.4

208.9

190.0

20.0
Operatingincome 15.0

＋4.0％

180.0

(Billions of Yen)

25.0

14.6

12.9
8.2

10.0

170.0
150.0

FY19

FY20

FY21

20.0

Ordinary
15.0
income＋58.2％

5.0

160.0

0.0

FY19

FY20

FY21

12.0

10.0

Net8.0income*
10.0

12.9

10.5

5.5

6.0

5.0

5.0

8.3

2.2

4.0
＋108.5％2.00.0＋145.3％

0.0

FY19

FY20FY21

FY19FY20

FY21*Net income attributable to owners of the parent2

Change in 1H operating income by segment (YoY)
Large increases in income in the School and Teacher Support business
and Cram Schools and English Education business on recovery fromCOVID-19 impact
16.0
14.0
12.0

FY21 income includes
impact of applying
accounting standards forrevenue recognition(ASRR)

10.0(Billions of Yen)

-0.3

-0.5

＋4.7

8.0

-0.8

12.9

6.0
4.0

-0.1

+1.8

8.2

12.9

7.4

2.0
0.03

Education Business in Japan: progress at Shinkenzemi
Despite fall in cumulative enrollment on reaction to last year, newrevenue streams such as programming have emerged(Billions of Yen)

By businessvs. FY20
YoYvs. FY19

ASRR impact

ex. ASRR impact

pre-COVID

Net sales-0.7（-0.9）+0.2＋3.7

Operatingincome-0.8（-0.6）-0.2＋1.5*Approximate figures for FY19 owing tochange in segment classification●YoY fall in total enrollment（YoY: April enrollment +0.9％ → １Q total enrollment -0.2％ → ２Q totalenrollment -1.6％）【Cumulative enrollment in 1H】

・Retention rate was expected to be midway between FY19 andFY20 levels, but was slightly below the expectation(recovery from October)

10.0●Strong start for extra-curricular diverse learning courses(programming course)

7.0(Million students)

11.0

10.8

10.6

FY20

FY21

10.0

9.0
8.0
FY19

●Rise in expenses to bolster investment（inc. textbook revisions and investment in tablets）●Increase in average revenue per customer on impact of price risefor some product lines4Education Business in Japan: progress in School and Teacher Support
Business and Cram Schools & English Education Business

Income in Cram Schools & English Education Business above pre-COVID level,
steady recovery also in School and Teacher Support Business(Billions of Yen)

By businessNet sales（School and Teacher Support）

Net sales（Cram Schools/English Education）

Operating income（Total）

vs. FY20

vs. FY19

ASRR impact

ex. ASRR impact

pre-COVID＋1.8（+0.1）

+1.7

-1.7

＋5.4（+0.0）

+5.4

+2.6

＋4.7（+0.1）

+4.6

-0.2

YoY

●Steady recovery at Shinken Simulated Exams
School/TeacherSupport

CramSchools/EnglishEducation(future measures needed to respond to decline in birthrate)*Approximate figures for FY19 owing tochange in segment classification【Enrollment in Cram Schools &English Education Business】

AprSep●Steady sales of products such as Miraiseed toelementary and junior high schools

130,000
129,000
128,000
127,000
126,000
121,000
121,000
125,000
124,000
123,000
122,000
121,000
120,000
115,000
119,000
118,000
117,000
116,000
115,000
110,000
109,000
114,000
113,000
112,000
111,000●Enrollment (Apr/Oct) regains pre-COVID level
110,000
109,000
108,000
107,000
106,000
105,000（mainstay TKG, Testsuryokukai above FY19 levels）
104,00099,000
103,000
102,000
101,000
100,000
99,00098,00097,00095,00094,000●Inquiries now recovering after dip in summer months96,000
93,00092,00091,00090,000FY19FY20

FY215

Progress in K&F (Kodomo Challenge & Tamahiyo)
Enrollment down YoY in both Japan and China, income down on
higher sales expenses and other costs despite higher average spend
per customer(Billions of Yen)

By businessvs. FY20
YoY

vs. FY19

ASRR impact

ex. ASRR impact

pre-COVIDNet sales-0.1（-1.1）+0.9-0.6

Operatingincome-0.3（-0.0）-0.2-0.0*Approximate figures for FY19 owing tochange in segment classification【YoY enrollment change in Japan and China】
KodomoChallenge

JapanKodomo
Challenge

China●Sales up on higher average spend
despite fall in cumulative enrollment●Concert business up YoY

Sales 4.0%
up
+2.0%
Income 2.0% China
0.0%up●Sales up on forex impact despite fallin cumulative enrollment-2.0%
Sales -4.0%
up
-6.0%

●Planning strategy shift in 2H

IncomedownJapan

-1.3%

-0.9%

-1.1%
-3.4%
Apr1Q-4.7%
2Q

enrollment cumulative cumulative6Progress in Nursing Care & Childcare
Sales up on YoY expansion in nursing home network but income down
on fall in occupancy rate

(Billions of Yen)

By businessvs. FY20
YoY

vs. FY19

ASRR impact

ex. ASRR impact

pre-COVID

Net sales+2.5（+0.8）+1.7＋2.6

Operatingincome-0.1（+0.8）-0.9-1.6【Change in occupancy rate】●Sales up on expansion in home network（end-1H FY21: 342 homes +8 YoY）

95.3%

●Fall in occupancy rate due to COVID-19（end-Sep 89.8％）

93.5%

92.6%
89.8%

●ASSR impact a plus in 1H（may change in 2H depending on occupancy rate）（inc. lump-sum write off on exit during depreciation period）

State of emergency
Apr 20Mar-20State of emergency
Jan-Mar, Apr-Jun, Jul-Sep 21

Sep-20Mar-21

Sep-21

7

Progress at Berlitz
Slowing in topline owing to structural reforms, but operating loss
narrows YoY(Billions of Yen)

By businessvs. FY20
YoYvs. FY19

ASRR impact

ex. ASRR impact

pre-COVID

Net sales-0.5‐-0.5-9.9

Operatingincome+1.8‐+1.8+0.1●Topline slows owing to structural reforms【Change in 1H net sales and operating income】

BTS：Sales up YoY despite major fall vs. FY19
ELS：Ongoing decline owing to COVID-19 impact●Operating loss narrows due to fall infixed costs from structural reform●Launch of Berlitz 2.0 globally

FY19

FY20

FY21Net
Sales

23.0

13.6

13.1

OperatingIncome-2.0

-3.7

-1.9

(Billions of Yen)

8

Highlights of FY21 Full-year Forecasts (YoY)

No change in forecasts
Aim to achieve initial operating income forecast of ¥17.5bn while
investing for growth in future years
500.0

Net 450.0
sales

448.5

30.0

441.0

427.5

400.0

Operatingincome 20.0
25.0(Billions of Yen)

21.2
13.0

15.0＋3.2％

17.5＋33.7％

10.0

350.0

5.0
300.0

FY19

FY20

FY2125.0
20.0
Ordinary
income15.00.0

FY19

FY20

FY2112.0
10.0

16.7
12.0

9.2

10.0

6.2

5.0

6.0

3.1

4.0＋29.6％

5.0

Net
8.0
income*＋60.1％

2.0

0.00.0

FY19

FY20

FY21

FY19

FY20

FY21

*Net income attributable to owners of the parent

9Capital strategy

Aim to keep dividend per shareat ¥50 in FY21
from the perspective ofmaintaining stable dividends

10Progress on strategy
Hitoshi Kobayashi
Representative Director and President, COO
Benesse Holdings, Inc.

Targets of the medium-term management plan
Target V-shaped recovery in phase 1, growth via new challenges inphase 2

Positioningof eachphase

Phase 1: FY21-FY22

Phase 2: FY23-FY25

V-shaped recovery
V-shaped recovery from the impact ofCOVID-19 organically in existing
businesses

Challenge & growth
Aim for sustainable growth throughinorganic means (new challenges inexisting businesses)

Expand into new fields（Move into new fields and overseas territories by leveraging Benesse’s strengths）

Financial
targets &KPI

FY22
Rebuild sales/OP to above FY19
levels in “2 years”**ex. ASRR impact

FY23-FY25
Organic growth rate of 3%+（sales）
Based on FY22 earnings after V-shaped recovery fromCOVID-19 impact

FY25
OPM 8％+
ROE 10％+12

Progress on phase 1 of medium-term management plan
Direction of phase １unchanged, steadily implementing plans● Grow income by strengthening digital courses and raising retention rate

Shinkenzemi● Efficiently expand contact points via reform of marketing● Expand platform for diverse learning

Cram Schools &English Education

School &Teacher
SupportK&F● Recover from the impact of COVID-19 and create further growth● Strengthen the hybrid strategy using online courses● Respond to changes in school learning resulting from COVID-19 and educational
reform→Measures for the GIGA School Project→Overhaul assessment operations● Japan: boost links between Tamahiyo and Kodomo Challenge, make a start on
digital courses● China: adjust business model to respond to increasing competition

Nursing Care &ChildcareBerlitz● Countermeasures for COVID-19, expand network of strategic facilities● Discussing business’s positioning within the group with the aim of making a swift
decision13

Shinkenzemi/Kodomo Challenge in Japan: October enrollment
Total October enrollment -4.4% vs. FY20

2019

2020

2021

YoY

Change(%)

High school
courses

110,000

110,000

90,000-20,000-15.1

Junior high school
courses

330,000

360,000

330,000-30,000-8.1

Elementary school
courses

1,120,000

1,240,000

1,230,000-10,000-1.2

Kodomo Challenge

790,000

830,000

780,000-50,000-6.3

Total for Japan2,350,000

2,540,000

2,430,000-110,000-4.4

14

Education business in Japan: 1H progress and 2H outlook atShinkenzemi
New enrollment and retention both slightly below target in 1H, but upturn in retention rate from
October thanks to retention improvement strategy
Aim to achieve targets for new enrollment and retention during high-time period**high-time period: the peak Nov-Apr marketing period■ Slight fall in new enrollment vs. FY20/FY19 was expected
・May-Sep new enrollment: -10,000 vs. FY20, -5,000 vs. FY19

■ Retention up on FY19, down on brisk FY20 figure

1Hprogress

・May-Sep average retention rate: -0.8% vs. FY20, +0.1% vs. FY19

・Improved retention rate since October on upgrades to UI/UX(e.g. revised home screen) and accelerated measures to promote usage⇒ October retention rate: +0.2% vs. FY20, +0.6% vs. FY19

■ 1H average user spending +1.8% vs. FY20 *ex. ASRR impact
・Due to revised course prices, popularity of optional courses

2Houtlook■ Expect new enrollment midway between FY19 and FY20 levels■ Aim to achieve target for retention on brisk level since October

15

Education business in Japan: challenges for Shinkenzemi

Initiatives to improve suitability for each student and cater tohighfliers amid diversification in learnings needs

Challenges

Elementaryschool
courses

Initiatives■ Launch■ Grow share ofmarket for highfliers「non-graded learning」
for Japanese andmathematics■ Raise motivation

Junior highschool
courses■ Decline instudying motivation

through use of“online live lessons”
and “proficiency score”■ Introduce

High school
courses■ Increasing
importance of
guidance suited toeach student“dedicated coaches foreach high school”■ Actively propose the“elite EVERES Course”
for highfliers

16Education business in Japan: new initiatives for Shinkenzemi

Expand sales and raise profitability by leveraging our customer base(including the distribution of 500,000 dedicated tablets a year)

Expansion in “optional courses”

Development of“online extra-curricular business”

Programming course for elementary
school students (launched April 2021)

Currently being trialed
ahead of official start in April 2022

Popular, attracting 30,000 enrollees, and highly profitable

Developed in collaboration with experts in each field■ Dance course
・Developed with
Avex Dance Master■ Art course
・Developed with
Education ThroughArt, Ltd.
Other courses include abacus, calligraphy, careers,and programming for junior high and high school students

17

Education business in Japan: growth strategy for School andTeacher Support businessFor high school, pursue changes in service aligned with situation at high schools
For elementary/junior high schools, expand number of schools using Miraiseed aspart of GIGA School ProjectHigh schools

Elementary/Junior high＜Market environment＞＜Market environment＞

Diversification in students/university entrance exams
making guidance difficult, especially for mid-tier schools
Increased need for support for individual guidance attuned
to academic abilities and pathways

PCs installed at almost all the nationwide 29,000 elementary
schools/junior high schools under the GIGA School Project
Licensed educational software installed at around 70% ofschools⇒ Strengthen support for regular studying and learning⇒ Number of schools installing licensed educational

about one’s career path
Integrated support from assessment through to guidance

software Miraiseed continues to run ahead of target
pace since April

Strengthen
Regularstudying

Assessment

Discovering
one’s careerpath

Around6,000schools

7,880
schools

Number ofschools using
Miraiseed

FY21 target
8,000 schools

Initial target
7,000schools

2021年4月
Apr
2021

2021年10月
Oct 2021

今年度末(目標)
End-FY21target18K&F: future strategy for Kodomo Challenge (Japan)
Strengthen links and retention between Tamahiyo, Kodomo Challenge,
and elementary school course Challenge Touch

Links between Tamahiyo and Kodomo Challenge

Strengthen retention from Kodomo Challengeto elementary school course●Create membership pathway from Tamahiyo
to Kodomo challenge Baby

●Launched digital course Jump Touch (Apr 22)

・Set target for carryover customers from Tamahiyo to・Differentiate course from competition through mix of digital

Kodomo Challenge Baby

・Raise interest in Kodomo Challenge via Tamahiyo media
Implement brand trials and pathway to Kodomo Challenge
Baby membership

・Ease parent/caregiver burden via individual course design+ paper materials/equipment, fostering thinking
abilities/STEAM⇒Enable smooth transition to Challenge Touch elementaryschool course⇒Strengthen route via rapid implementation while upgrading

19

K&F: reform China business
Membership fall due to sudden change in the environment, reform ofbusiness model an urgent issue

Recent membership

Challenges(vs. four years ago）

（change in environment）

Large decline in membership

1.10m

1.12m

nn

Need to respond to sudden changein the environment●Macroeconomic impact
1.11mn1.08mn1.03mnAprOctDeclining birthrate# of births in 2020 12.48mn（-27.6% vs. 2017）

Impact of COVID-19,

higher operating cost

1.02mn
Oct

10月

４月10月
Oct 16→Apr 17→Oct 17
Oct 20→Apr 21→Oct 21●Competition
Excessive capital inflow, rise inadvertising costs

Future direction
Reform of business model anurgent issue１）Grow by focusing onretention２）Reform cost structure３）Peripheral businesses
・ Strengthencross-selling●Regulation in China
Double reduction policy20

Nursing Care & Childcare: growth strategy
Initial priority to rebuild facilities business from impact of COVID-19.
No major change in strategy.

Organic

FacilitiesbusinessChange in occupancy rate

●Recent rebound in pre-occupancy tours→ Back to 107％ of FY19 level (as of Oct: tours of existing homes)●Improve occupancy rate by strengthening
marketing→ Find new residents via hospitals/care managers●No change in medium/long-term strategy→ Development of strategic facilities→ Nursing care DX “Benesse Sensing Home”

95.3%

93.5%

92.6%

89.8%
State of Emergency
Jan-Mar, Apr-Jun, JulSep 21

State ofEmergency
Apr-May 20

Mar-20

Sep-20Mar-21

Sep-21

Target is thesame level asend-Mar 21

Mar-22【Development of strategic facilities】
Aria Takarazuka opened Sept 1
First Aria series home in Hyogo PrefectureInorganic●Proto Medical Care brought into GroupPeripheralbusinesses(recruitment company)→ New medium-term management plan to begin in October●Continue to expand scale and strengthen noncontiguous growth in peripheral businesses21Berlitz: Future direction

Implementing measures to rebuild topline for return
Initialto profit in FY22 while holding discussions on thepositioning of Berlitz in the Group’s business portfolio

Current

Under discussion toward a swift conclusion22

V-shaped recovery in FY22
No change in forecasts for FY22

Operating income(Billions of Yen)

Previous medium-term
management plan
Transform and Grow
Benesse 2022

New medium-term
management plan
Evolve Core Businesses andExpand into New Fields :phase 1

30.0
25.0
20.0
15.0
10.0
5.0

12.6

16.2

26.0

21.2
13.0

17.5

0.0
FY17

FY18

FY19

FY20

FY21

FY2223

Further progress on Digital Transformation (DX)Start of “DIP”, a new structure to promote Group DX,
selected as DX stock for first time in 2021

Double win at Japan e-Learning Awards 2021
Minister for Internal Affairs
and Communications Award

Education BCP
Special Division Award

Speaking Quest

Manabi No TechoAwarded grant by
Japan Science and Technology Agency
Selected as “Business pursuing the development ofrobotic care devices” by theJapan Agency for Medical Research and Development

Benesse Style Care

English performance testsfor elementary schools(supplied as partof Miraiseed)

Education information sharing
app for parents andother caregivers(supplied free)

Development of system for identifying factors
and detecting symptoms of PBSD
(behavioral and psychological symptoms of dementia)
using AI24

Establishment of Digital Innovation Fund (DIF)
Creation of new investment functions to further accelerate DX andstrengthen joint development, collaboration, and alliances withexternal partners

Established DIF in Nov 2021

Plan to invest in two companies as first projects

Will invest up to ¥5bn over five years
to boost inorganic growth and challenge new fields■ Provides training bootcamps forhigh-level IT staff■ Target synergies between CC’s strong
products and Udemy’s marketing forworking adults■ Industrial research venture strong indata analysis and AI■ Target increased pace of data and AI
utilization in businesses in the education,
lifestyle, and nursing care spheres25

New proposal system “B-STAGE”
New proposal system targeting an open management andorganizational culture begun in FY21

Strong commitment fromwhole management team
Active investment ofmanagement resources

Management

Open management
and organizational
cultureNew businessproposals
Operations

System design and operations
support and foster businessplanning×

Operational reform
proposals

On-siteNumber of proposal entries 1,782

Evaluation of on-site
problem awareness andideas/proposals

Will eventually be incorporated into
management plan

Aims to reform Benesse by “unifying management and on-site
operations” and to contribute to the resolution of social issues

26

Going forward● Direction of medium- and long-term growth

Deepen consideration of each business’s growth strategy through end-FY21 and reaffirm”direction of medium- and long-term growth” for FY22 onward→Inorganic for existing businesses→Concrete start on overseas business→ Expand and solidify business domains with potential for continuity〈 Three core values 〉
Customervalue
products/services● Value creation model centered on three core values

Will set out an overall image for value creation centered around the three
Corporate value
core values of “customer value,” “social value,” and “economic value.”
improvement
SocialWill focus particularly on ESG and sustainability.
Economicvalue● Management focused on capital efficiency

resolutionof socialissuesvalue
earnings
power

Essential to raise efficiency expressed by ROE.
This will be achieved by setting of quantitative targets and active dialog on therequired format of the business portfolio.

27