Financial Results for FY2022
May 12, 2023
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 based on 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.

Financial Results Summary for FY2022
Shinsuke Tsuboi
Managing Executive Officer, CFO,
Executive General Manager of Finance and Accounting
Benesse Holdings, Inc.

Financial Results Summary for FY2022

Highlights for FY22
Decreased sales and increased income; significant increase in net income thanks toelimination of one-time loss incurred in the previous fiscal year from the transfer of Berlitz.
(Billions of Yen)

4,500

Net
Sales

427.5

431.9

411.8

Operating200
Income 150

4,000

-4.6％

3,500

250

20.6

20.1

＋2.2％

13.0

3,000
100

2,500
2,000

50

1,5000FY20

FY21

FY2215.4

15.8

FY20FY21200
180160Ordinary140
Income12010011.3120

ROE 100＋966.8％

Net 6040Income*80604020203.11.8%

00

FY20

FY21FY22FY201.00.7%
FY2110.0%
9.0%
8.0%
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%

7.5%

80

＋3.2％

9.2

FY22FY22* Net income attributable to owners of the parent

3

FY22 results summary
Decreased sales and increased income YoY; results not reaching the forecast.
FY21 results
Net sales
Operating income

FY22 results

FY22 forecast

YoY(Announced inNovember)(Billions of Yen)

Results vs. forecast(Announced inNovember)

431.9

411.8

-20.0

417.0

-5.1

20.1

20.6

+0.4

21.5

-0.8

* Impact from transfer of Berlitz (YoY) : Net sales down ¥20.0bn, Operating income up ¥2.7bn◼ YoY• Net sales down ¥20.0bn due to transfer of Berlitz, etc.
• Operating income up ¥0.4bn due to:(+) Elimination of deficit thanks to share transfer of Berlitz. (+ ¥2.7bn)(+) Expansion of University and Working Adult Business with focus on Udemy. (+ ¥1.1bn)(+) Japan Kodomo Challenge (+ ¥0.6bn), Naoshima (+ ¥0.5bn), etc.
(-) Decreased enrollment in China Kodomo Challenge due to Zero-COVID Policy in China (- ¥2.4bn)(-) Shinkenzemi: Review of segment burden of selling expenses, etc. (- ¥1.4bn)(-) Prolonged impact of COVID-19 in the Nursing Care Business; increased utilities and sales promotion expenses, etc. (- ¥1.3bn)◼ Results vs. forecast (announced in November)• Net sales decreased by ¥5.1bn• Operating income decreased by ¥0.8bn due to results not reaching the forecast in K&F Business andTokyo Individualized Educational Institute, etc.

4Change in FY22 net sales by segment (YoY)
Overall decline in sales despite increased sales in University and Working Adult Business andNursing Care and Childcare Businesses, due to sales eliminated by the share transfer of Berlitz
and enrollment declined in Shinkenzemi.
(Billions of Yen)

-8.3

-0.4
+5.7

-3.3

+5.2
-20.0

431.9
+1.1

Education in Japan - 3.0

411.8

～～

FY21University
andWorking
Adult

School andTeacher Support,
Prep School/Classroom,and others

K&FBerlitz

FY225Change in FY22 operating income by segment (YoY)
Overall increase in income thanks to increased income in University and Working Adult Businessand eliminated operating loss due to share transfer of Berlitz offsetting the declined income inthe China and Nursing Care and Childcare Businesses caused by COVID-19 and other factors.
(Billions of Yen)

-1.4

+1.5
Incl.
University andWorking Adult+ 1.1

-1.6
Incl.
China Kodomo
Challenge
- 2.4

-1.3

+2.7

+0.5

Education in Japan + 0.0

20.1

20.6

Education Businessin Japan
ex. Shinkenzemi* YoY decline in Shinkenzemi is due mainly to review of segment burden of selling expense.

6Earnings Forecasts for FY2023

FY23 earnings forecasts highlights
Forecast of increased sales and income, ROE of 7.3%
(Billions of Yen)
4,500

Net
Sales

431.9

423.0

411.8

250
Operating
Income 200

4,000+2.7％

3,500

300

3,000150

2,500

100

2,00050

1,5000FY21FY22FY2320.1

21.5

20.6

＋4.3％

FY21

FY22

FY23250

Ordinary
Income150

11.0%

7.5%

200200

15.4

16.0

15.8
＋0.7％

100

7.3%

7.0%

ROE 150

0.7%

11.5

11.3

Net50
Income*

03.0%
1.0%

+1.3％

-1.0%
-3.0%

1.00

FY225.0%

10050

FY219.0%

FY23-5.0%

FY21

FY22FY23* Net income attributable to owners of the parent

8FY23 earnings forecasts summary
YoY increase in sales and income(Billions of Yen)FY22Results

FY23Forecast

YoY

Net sales

411.8

423.0

+11.1

Operating income

20.6

21.5+0.8◼ Recovery from the impact from COVID-19 in the Nursing Care and Childcare Business drives incomegrowth.
Operating income: +¥2.8bn YoY◼ Despite of declined enrollment, price revisions and cost reductions increase income in Shinkenzemi.
◼ University and Working Adult Business expects growth of Udemy and expansion into “New fields” throughM&A and alliances.
◼ Execution of investment for growth limits the amount of income increase.

Improving the products and foundation for elementary and junior high school business; enhancing the University and Working
Adult Business and Area Business Promotion system; developing India business, investing into DX human resources, etc.
9FY23 net sales forecasts by segment (YoY)
Forecast of increased sales despite of lower sales in Shinkenzemi, thanks to sales growth in theNursing Care and Childcare, School and Teacher Support, Prep Schools and Classrooms, andUniversity and Working Adult Businesses.
(Billions of Yen)

+0.5

+8.8-3.9+1.4+1.2+0.4-0.1
423.0+2.8411.8
Education in Japan +1.9～～
FY22Shinkenzemi

SchoolandTeacher
Support

Prep Schools/Classrooms

University andWorking AdultOthers

K&F

Nursing Careand Childcare

Others

FY23 (Forecast)10

FY23 operating income forecasts by segment (YoY)
Forecast of increased income thanks to income growth in Nursing Care and Childcare
Business and Shinkenzemi.
(Billions of Yen)

+2.8+0.2+0.7-0.6-2.3+0.0

Education in Japan +3.0

21.5

20.6～～FY22Shinkenzemi

UniversityandWorking
Adult

Schooland
学校向け教育Teacher
Support,＋塾・教室
PrepSchool＋その他/Classroom,and others

K&F

Nursing Careand ChildcareOthers

FY23 (Forecast)11

FY23 earnings forecasts by segment (YoY)(Billions of Yen)

Segment/Business
Education
Business inJapan

Change in net sales

Change in operating income

Shinkenzemi-3.9

Lower sales due to a decrease in cumulativeenrollment, partially offset by an increase insales due to price revision.

+0.7

Positive effects from lower system amortization
expenses and cost reduction expected to offset lower
income from lower sales.

School and Teacher
Support+2.8

Higher sales in high school business.

-0.6

Higher sales in high school business offset byexpected increase in upfront investment (¥1.1bn) inelementary and junior high school business aiming
for FY25 and beyond.

Prep Schools andClassrooms+1.4

Higher sales in prep schools.

-0.2

Lower income from Tokyo Individualized Educational
Institute and start-up costs of “UP” junior high school
entrance exam business in the Tokyo metropolitan
area expected.

University andWorking Adult, Other+1.2

Higher sales from expansion of Udemy, etc.

+0.2

Higher income mainly from Udemy, i-Career, etc. tooffset investment for growth (¥0.9bn).

Others+0.4

Challenge Schools, etc.

+0.2

Higher income due to higher sales.

Japan+0.3

Higher sales thanks to price revision andrecovery of Tamahiyo business, etc., offsetting
lower sales in Kodomo Challenge due todecrease in cumulative enrollment.

+0.7

Sales recovery and cost reductions in non-course
business, Tamahiyo business, etc. expected to offset
lower income due to lower sales in course business.

Overseas-0.3

Lower sales due to decreased enrollment at
beginning of period.

-0.6

Lower income due to lower sales and enhanced sales
promotion expected for early business recovery.

Nursing Care and Childcare+8.8Higher sales thanks to increased nursing
homes, improved occupancy rate, and pricerevision.

+2.8

Higher income due to higher sales.

Others/Reconciliations+0.5

Higher sales in Naoshima business, etc.

-2.3

Strategic investment, India business development, etc.

K&F

12

April Enrollment for Shinkenzemi and Kodomo Challenge
Emphasis on balance between enrollment and income:April enrollees down 11.5% YoY overall, but income growth expected with price revisions andcost reductions.
20222023(April)(April)YoY Change

Change (%)

High school courses

110,000

100,000-10,000‐8.9

Junior high school
courses

350,000

320,000‐30,000‐8.6

Elementary school
courses

1,280,000

1,180,000‐100,000‐8.0

Kodomo Challenge

750,000

610,000‐140,000‐19.0

Total for Japan

2,490,000

2,210,000‐290,000‐11.5¥‐4.2bn‐3.8％

Sales (Shinkenzemi +Kodomo Challenge)¥113.8bn¥109.5bn*2023 sales figures are forecasts

Decreased enrollment in paper courses has large impact while decline is subtle in digital courses.
Current retention rate exceeds that of the same month last year.
13

Future Business Policy
Hitoshi Kobayashi
Representative Director and President, CEO
Benesse Holdings, Inc.

1. Looking back on Phase 1 of the medium-term management plan
2. Positioning of FY23 and key measures in main businesses
3. Key points in the Transformation Business PlanLooking back on the medium-term management plan
November 2020
(Mid-term management plan)

May 2022(Update on Financial KPI updated)

May 2023(TransformationBusiness Plan)

Achieve portfoliotransformation forsustainable income
growthReview strategies
and KPIs for thispurpose

See next slide for the review on Phase 1.
Changes inenvironment

16

Medium-term management plan - Results and challenges in Phase 1

Financial
targets

Evolution ofcorebusinesses

Slightly missing target in Phase 1: V-shaped recovery from COVID-19 impact• Operating income:
FY19 (pre-COVID): ¥21.2bn → FY20: ¥13.0bn →FY22: ¥20.6bn
V-shaped recovery in Education Business in Japan;
Recovery to come in Nursing Care and China; Launched initiatives for Inorganic growth

Slightly
missed target

Partially• As of FY22, Education Business in Japan achieved V-shaped recovery from F19.
lingering impact(Operating income = FY19: ¥14.0 bn ⇒ FY20: ¥11.9 bn ⇒ FY22: ¥19.1 bn)
from COVID-19• Full-scale activities launched for inorganic growth.
(Diverse of learning support businesses launched; Heart Medical Care made a consolidated subsidiary.)• Businesses of Nursing Care and China Kodomo Challenge still recovering from lingering COVID-19 impact.

New organization established to take on full-scale challenge for the growthExpansion
into newfields

Steady• University and Working Adult Business Company established.
progress
Steady expansion of Udemy business. (Adopted by over 1,000 companies.)• Further acceleration of growth launched in fields of University and Working Adult.
(Investment and alliance with SkyHive; acquisition of Waris.)• In field of overseas education, Benesse India established and local school education support business launched.

Problematic businesses organized; DX promoted
Managementfoundation• Profitability improved with the sale of the underperforming Berlitz business.
• DIP (Digital Innovation Partners), a cross-Group organization, established to promote DX.

Steadyprogress17

1. Looking back on Phase 1 of the medium-term management plan
2. Positioning of FY23 and key measures in main businesses
3. Key points in the Transformation Business PlanPositioning of FY23
◼ Proactive investment in growth fields for future growth◼ Initiatives to resolve issues in core business◼ Execution of measures to strengthen managementfoundation (area, human resources, DX)

And aim for higher sales and income

19Education Business in Japan (Shinkenzemi/School and Teacher Support/K&F)
Promote product value and sales method redesigns and cost structure reform
Challenges and opportunities• Acceleration in declining birthrate; Diversification of needs.
• Major shift in school education.
(Intra-year entrance exams; GIGA School Program)• Measures against fall in children’s learning motivation.

Recent conditions• Enrollment in Shinkenzemi/Kodomo Challenge:-11.5% YoY (Apr. 2023)• High school assessment: -1.8% YoY (FY22)• Number of schools adopting Mirai Seed: 9,010 schools+1,068 schools YoY (April 2023)

Key measures for FY23
✓ Enrich educational materials and services• Take more decisive measures against fall in children’s
learning motivation.
(Expansion of target grades to tie-up with Nintendo Switch)
Learn alone

Learn together

Shinkenzemi score improvement series
for Nintendo
Switchfor NintendoSwitch• Make upfront investments for future replacement of
GIGA device and cloud migration of school
administration support (Mirai Seed , EDUCOM, etc.).

✓ Respond to diversification of needs• Provide diverse learning opportunities byleveraging customer base.
(Expand EVERES, Challenge School, etc.)• Enhance products for schools with diverse students’
education advancement.
(Careered support program, etc.）• Promote proposals for regionally diverse needs of
local authorities and schools.
(Establish Area Business Promotion Headquarters)✓ Promote cost structure reform• Conduct company-wide review on cost structure20

Education Business in Japan (University and Working Adult Business)
Proactive investment as this is the key area in growth fields
Challenges and opportunities• Expansion of needs for corporate andindividual reskilling and HR-related services.

Recent conditions• Net sales growth rate: +40.1% YoY (FY22)• Steady expansion of Udemy‐ Corporate users in Japan: 1,000+(Nikkei 225 Companies: 50%+) (March 2023)‐ Enrollees in Japan: 1.3mn+ (March 2023)• Capital alliance with SkyHive (April 2023)
Acquisition of Waris (planned for in June 2023)

Key measures for FY23
✓ Strategic resource allocation for businessexpansion• Increase the number of staff, particularly incorporate sales: +60% YoY(Accelerate recruitment to strengthen the functions
including corporate sales, government, public information,
data science, corporate, and other functions.)• Enhance sales promotion✓ Effective utilization of the company’s
foundation and acceleration of M&A strategy

Capital and business alliancewith SkyHive
SkyHive owns the world's largest database oflabor market information.
We will launch a service in FY23 for companies
using or considering Udemy Business, anddevelop and roll out new program withSkyHive.

1. Visualization of personnel
skills and careers

5. Talentmanagement

4. Reskilling

2. Analysis

3. Recommend

We will provide a full range of services
necessary for human capital managementfrom skill assessment to talent management.

21

Nursing Care and Childcare Business
Quick recovery of the occupancy rate in nursing-care facility business andacceleration in the development of peripheral businesses

Challenges and opportunities• Recovery from impact of COVID-19.
• Resolving growing social issues such as theshortages of caregivers.

Key measures for FY23
✓ Quick recovery of the occupancy rate innursing-care facility business• Build relationship with local hospitals and care managers;
Short stays (trials).
• Enhance sales system.
• Target occupancy rate at March 31, 2024: 93.9%.
✓ Promotion of strategic plan to open new nursing homes• Start expanding service areas (Kanazawa, Hiroshima, and Kumamoto)⇒ Link to recruitment strategy.
• Open new and distinctive nursing homes.
✓ Initiation of new business development in nursing careperipheral fields

Recent conditions (nursing-care facility business)• Occupancy rate: 90.4% on March 31, 2023
(90.1% March 2022)• Number of requests for materials:
March 2023 +6.6％ YoYChange in occupancy rate

91.0%

90.4%
90.1%
90.0%

89.0%

7th wave

8th wave88.0%

3/1/2022
Mar
2022

5月
May

7月
July

9月
Sep

11月
Nov

1月
Jan

3/1/2023
Mar2023

22

China Kodomo ChallengeInvestments aimed at recovery from impact of COVID-19
Challenges and opportunities

Recent conditions• Decreased enrollee due to impact of COVID-19.
• Rapid acceleration in declining birthrate.
• Easing competitive conditions owing to“double reduction policy.”• Transition from fixed-cost sales to variable-costsales.

• Enrollment:-16.5% YoY (April 2023)• Current retention rate and number of newenrollees exceeding those of the same period
last year.

Key measures for FY23
✓ Recovery of enrollment with emphasison balanced income• Post-pandemic recovery of enrollment.
• Sales structure reform.
(Expansion of variable cost sales such as ecommerce and member proposal sales, etc.)• Cost structure reform.
(Delivery, IT development costs, etc.)✓ Increasing LTV (life time value)• Expansion of peripheral businesses.
(Expansion of thinking skills courses,development of new courses, etc.)• Revitalization of KIDS business.
(Recovery from store closures and suspensionof operations due to COVID-19.)

23

1. Looking back on Phase 1 of the medium-term management plan
2. Positioning of FY23 and key measures in main businesses
3. Key points in the Transformation Business Plan

Key points in Transformation Business Plan (to be announced on May 19th)
1. In order to keep striving to achieve the Group purpose in a business environment
undergoing various structural changes, it is essential to transform into a portfolio
structure that allows sustainable income growth over the medium to long term.
2. By FY28, portfolio structure is to be achieved with the three pillars of income
consisting “Core Education”, “Core Nursing Care”, and “New fields”.
3. The Transformation Business Plan strives for the initiatives “transformation of corebusinesses” and “challenges for new growth.” The plan executes a reform in corporate
management structure, namely management system transformation and corporatetransformation, which are necessary for achieving those initiatives.

This Transformation Business Plan is an updated version of themedium-term management plan considering the various peripheral
conditions surrounding the company.
25

Outline of Transformation Business Plan (to be announced on May 19th)
To continue pursuing the Group purpose, we will execute “transformation of core businesses” and“challenges for new growth,” both aiming for establishment of a portfolio structure for sustainable
income growth, as well as “transformation of management system” to enable execution thereof.

Portfolio strategy
Three-pillared income structure supported by “Core Education”, “Core Nursing Care”, and “New fields” to be established in
FY28 by reinforcing and allocating corporate resources to stabilize profitability in the “Core Education”, stabilize growth in
the “Core Nursing Care”, and accelerate growth of “New fields”

Transformation of core businesses

Challenges for new growth◼ “Core Education”: Reform cost structure acrossorganizational boundaries; restructure product value andsales methods; reform business model.
◼ “Core Nursing Care”: Rebuild dominance; reinforce salesand management.
◼ China: Reform structures; expand into 3rd to 4th tier cities;
expand LTV.

◼ University and Working Adult: Corporate and individual
learning; and HR support business.
◼ Nursing Care peripheral: New business development.
◼ Overseas: Expand into specific countries based on corestrengths (e.g., India).

Transformation of management systems to achieve the above◼ Management system transformation: Management where top management allocates resources across the company.
◼ Corporate transformation: Reconstruction and enforcement of CXO structure to drive execution.
26

FY25 operating income target
Review target figures in light of recent conditions of existing businesses
and investment in new businesses for growth in FY25 and beyond

Last time

FY25 operating incometarget¥40.0bn+

This time⇒¥32.0bn+

FY25 ROE target remains at 10% or higher
27

Shareholder returns

In order to provide stable dividends,
an annual dividend of 60 yen per share isplanned for FY2328