1Q Results for FY2020
Supplementary Materials

August 7, 2020
Benesse Holdings, Inc.

Forward-Looking Statements

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 based on information currently available to theCompany and are subject to a number of risks, uncertainties and assumptions. As
such, actual results may differ materially from those projected.

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Results by Segment (YoY)(Millions of Yen)

Three months ended June 30

Domestic Education
Global Kodomo Challenge
Nursing Care and Childcare
Berlitz
OthersTotal Net Sales
Domestic Education
Global Kodomo Challenge
Nursing Care and Childcare
Berlitz
Others/Reconciliations
Total Operating Income
Ordinary Income
Net Income

FY2019FY2020Change%48,742
13,16830,141
11,1905,609
108,851(1,259)684
2,705(1,334)
(644)
150
(469)
(1,597)

43,577
12,28429,9598,818
3,457
98,097(5,092)336
2,008(1,471)(1,035)(5,254)(7,416)(5,671)(5,165)(883)(182)(2,371)(2,152)(10,754)(3,833)
(348)
(696)
(136)
(390)
(5,404)(6,947)(4,073)(10.6)(6.7)(0.6)(21.2)(38.4)(9.9)－(50.9)(25.7)－－－－－

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Analysis of Net Sales/Operating Income (YoY)(Billions of Yen)

Domestic Education

Net Sales

Global Kodomo Challenge

Shinkenzemi : increase in cumulative enrollment

1.9

School & Teacher Support business : impact of temporary school closures due to COVID-19, etc(4.1)

Cram schools / English education : impact of the voluntary halt of business over COVID-19, etc(2.9)

Japan : increase in cumulative enrollment / impact of concerts cancellation, etc

0.1

Overseas : decrease in cumulative enrollment due to halt marketing over COVID-19 / impact of concerts cancellation, etc

(0.8)
(0.1)

Forex rate impact
Decrease in the No. of new residents for the rooms with down payment due to halt marketing over COVID-19(0.1)

BTS : impact of franchising conversion in Spain and Belgium, etc / liquidation of business in France /temporary language center closures due to COVID-19, etc(2.1)

Forex rate impact(0.2)

No sales contribution from Simul International, Inc, due to its sell-off, etc. *(1.5)

Impact of hotel closures in Naoshima business due to COVID-19, etc(0.6)

Shinkenzemi : due to higher sales, etc

1.0

Due to lower sales in the School & Teacher Support business; Cram schools and English education business, etc(4.8)

Japan : due to higher sales / increase in marketing costs, etc(0.3)

Overseas : due to lower sales(0.0)

Nursing Care and Childcare

Due to lower sales / improve wages for staff / higher labor costs as increase in the No. of nursing homes, etc(0.6)

Berlitz

Due to lower sales / lower cost, etc(0.1)

Others/Reconciliations

Due to lower sales(0.3)

Nursing Care and Childcare

Berlitz

OthersDomestic Education

Operating Income

Global Kodomo Challenge*The Company transferred all shares of Simul International, Inc, to TAKARA & COMPANY LTD. as of March 31, 20203

Full-year forecast for FY2020●Due to the impact of the spread of COVID-19, it is difficult to reasonably
predict full-year earnings. As a result , we are not providing guidance at thistime.
Recent Situation

Seasonal factors for operating income●Structurally, 1Q profits tend to be low due to●In the Domestic Education business, school

increased production costs for educational
materials and other factors, while profits
accumulate from 2Q onward.

closures and the voluntary halt to Cram schools /English education business had a major impact.
However, since the state of emergency was lifted,
there are signs of recovery.

FY2018FY2019●In the Global Kodomo Challenge and the Nursing
Care and Childcare businesses as well, the impactof COVID-19 is expected to weaken in 2Q.
●The Berlitz business has a December 31 fiscal
year-end and the period from April falls into 2Q.
The YoY decline in 2Q net sales and operating
income widened due to the suspension ofmarketing activities following the temporary
closure of language centers and the closure ofuniversity campuses in the US in the ELS business(Overseas Study Support).

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

●We expect 1H consolidated YoY decline in net sales and operating income willcontinue, but it is highly likely that the operating loss to narrow.
4Domestic
Education

Breakdown of Net Sales

Three months ended June 30(Millions of Yen)FY2019FY2020Change%Ratio(%)

Senior High School

3,635

3,797

162

4.5

8.7

Junior High School

7,404

7,624

220

3.0

17.5

Elementary School

14,591

16,132

1,540

10.6

37.0

12,626

8,518(4,107)(32.5)

19.6

Other

10,484

7,503(2,981)(28.4)

17.2

Total

48,742

43,577(5,165)(10.6)

100.0

School & Teacher
SupportThe Company changed its accounting policy of the School and Teacher Support, and Other in the Domestic Education segment, from the consolidated financial
results in FY2019. As a result of this change, information in 1Q results for FY2019 has been revised.

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GlobalKodomoChallenge

Breakdown of Net Sales

Three months ended June 30(Millions of Yen)FY2019
Kodomo Challenge in Japan

FY2020Change%Ratio(%)

4,530

4,793

262

5.8

39.0

6,395

5,789(606)

(9.5)

47.1

Other

2,241

1,701(539)(24.1)

13.9

Total

13,16812,284(883)

(6.7)

100.0

( Preschool)
Overseas Kodomo Challenge(Preschool)6

DomesticEducation
Global
Kodomo Challenge

Cumulative Enrollment for Shinkenzemi and Kodomo Challenge【Cumulative Enrollment for Shinkenzemi】(Thousands）

Three months ended June 30

FY2019FY2020Change%Senior High School

422417(4)(1.1)

Junior High School

1,175

1,199

24

2.1

Elementary School

3,588

3,879

290

8.1

5,186

5,496

310

6.0

Total

【Cumulative Enrollment for Kodomo Challenge (Preschool)】
FY2019FY2020(Thousands）

Change%Kodomo Challenge in Japan ( Preschool)

2,268

2,343

75

3.3

Overseas Kodomo Challenge (Preschool)

3,729

3,628(101)

(2.7)

Total

5,997

5,972(25)(0.4)•Note1: Cumulative enrollment represents the cumulative total No. of people who receive materials monthly (from April to June).
•Note2: Cumulative enrollment for Kodomo Challenge in China, Taiwan and Indonesia represents the cumulative total No. of people who receive materials monthly.
Cumulative enrollment for China and Indonesia represents the cumulative total No. of people who receive materials monthly (from January to March), due tothe differences of those closing dates ended December 31 st.

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Nursing Careand Childcare

No. of Nursing Homes and Elderly HousesJune 2019

March 2020

June 2020

Aria

242424

Clara404040

141146146

Madoka5757

57

Bon Sejour

4647

47

Cocochi

141414

Li-Re222Total

324

330

330

Granny & Granda

8Berlitz

Berlitz No. of Lessons by Region (Berlitz operated)
Three months ended March 31(Thousands of Lessons)

2019

2020

%

Americas262

244(7.0)

Europe699

484(30.7)

Asia

388

339(12.6)

Total

1,350

1,068

(20.9)

Six months ended June 30 (Preliminary figures)

2019(Thousands of Lessons)

2020

%

Americas557

479(13.9)

Europe1,370

742(45.8)

Asia800526(34.3)

Total

2,728

1,749(35.9)•Note:The No. of lessons in Europe in 1Q has decreased by 214 thousands YoY. This decrease includes a reduction of the No. of lessons （176 thousands）
due to franchising conversion and liquidation of business.
The No. of lessons in Europe in 1H （preliminary figures）has decreased by 627 thousands YoY. This decrease includes a reduction of the No. of lessons（363 thousands） due to franchising conversion and liquidation of business.

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