Results for FY2019
Supplementary Materials

May 25, 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.

1Results by Segment (YoY)(Millions of Yen)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

FY2018FY2019

192,064
56,443116,999
49,27524,647439,431
10,055
3,258
11,396(4,748)(3,715)
16,245
12,1504,902

200,393
56,555
122,868
45,02023,739448,577
14,042
2,654
11,374(3,152)(3,652)
21,266
16,7596,289

2

Change

8,329
111
5,868
(4,255)(907)
9,145
3,986(604)
(21)
1,595
63
5,020
4,609
1,386%

4.3
0.2
5.0
(8.6)
(3.7)
2.1
39.6
(18.5)
(0.2)
－－
30.9
37.9
28.3

Analysis of Net Sales/Operating Income (YoY)(Billions of Yen)
Shinkenzemi：Impact of the price revision, etc

Domestic Education

School & Teacher Support ： Consolidates Classi Corp. and EDUCOM Corp.*, etc
Cram schools / Support college students and adults / English education, etc

Net Sales

Japan : Impact of the price revision, etc

Global Kodomo Challenge

Overseas：Impact of the price revision in China / Decrease in cumulative enrollment in Taiwan, etc

Foreign exchange rate impact

Nursing Care and Childcare
Berlitz

Increase in nursing home residents, etc
BTS：Impact of franchising conversion in Scandinavia and liquidation of business in France, etc
ELS：Due to sales of business in Australia, etc

Foreign exchange rate impact

OthersOperating Income

Domestic Education

Decrease in marketing costs for mail-order business, etc
Shinkenzemi
Due to higher sales of School & Teacher Support and cram schools / Increase investment, etc

Global Kodomo Challenge

Japan : Due to higher sales / Increase in marketing costs, etc
Overseas : Due to higher sales / Increase in marketing costs / Foreign exchange rate impact (-0.2), etc

Nursing Care and Childcare

Due to higher sales / Improve wages for staff / Higher costs for recruitment, etc

Berlitz

Due to lower sales / Lower costs by restructuring effect / Foreign exchange rate impact (+0.2), etc*The company converted Classi Corp. and EDUCOM Corp. into consolidated subsidiaries as of January 8, 2019.

3

3.9
1.9
2.5
0.6
1.3
(1.8)
5.8
(2.5)
(1.7)
(0.9)
4.0(0.1)
(0.3)
(0.3)
(0.0)
1.5

Domestic
Education

Breakdown of Net Sales(Millions of Yen)FY2018FY2019Change%Ratio(%)

Senior High School

12,516

11,801(715)

(5.7)

5.9

Junior High School

24,76026,085

1,324

5.4

13.0

Elementary School

50,36555,867

5,501

10.9

27.9

55,01456,923

1,908

3.5

28.4

Other

49,40649,715

309

0.6

24.8

Total

192,064

200,393

8,329

4.3

100.0

School & Teacher
SupportThe company changed its accounting policy in following segments : School and Teacher Support and Other from the consolidated financial results for FY2019.
As a result of this change, Information for FY2018 has been revised.

4

GlobalKodomo
Challenge

Breakdown of Net Sales(Millions of Yen)FY2018Domestic Kodomo

FY2019Change%Ratio(%)

17,923

18,573

649

3.6

32.8

27,252

27,139(112)

(0.4)

48.0

Other

11,267

10,841(425)

(3.8)

19.2

Total

56,44356,555

111

0.2

100.0

Challenge (Preschool)
Overseas Kodomo
Challenge (Preschool)5

Domestic
Education
Global
Kodomo Challenge

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

FY2018FY2019Change%Senior High School

1,483

1,369(113)(7.7)

Junior High School

4,293

4,124(169)(3.9)

Elementary School

13,361

13,645283

2.1

19,138

19,139

00.0

Total

【Cumulative Enrollment for Kodomo Challenge (Preschool)】

FY2018FY2019(Thousands）

Change%Domestic Kodomo Challenge (Preschool)

9,523

9,469(53)(0.6)

Overseas Kodomo Challenge (Preschool)

14,867

14,789(78)

(0.5)

Total

24,39024,259(131)(0.5)

Note: Cumulative enrollment represents the cumulative total No. of people who receive materials monthly from April to March. Cumulative enrollment for Kodomo
Challenge in China and Indonesia represents the cumulative total No. of people who receive materials monthly from January to December , because their closing dateis December 31st and its different from others.

6

Domestic
Education
Global
Kodomo Challenge

Domestic Enrollment for Shinkenzemi and Kodomo Challenge as of April(Thousands)

As of April

2019

2020

Change%Senior High School150

150(0)(1.6)

Junior High School

420

420

00.5

Elementary School

1,240

1,330

90

6.781081000.5

2,620

2,710

90

3.3

Kodomo Challenge (Preschool)
Total

7

GlobalKodomoChallenge

Overseas Enrollment for Kodomo Challenge as of April

As of April(Thousands)

20182019

2020

China

1,150

1,180

1,100(80)(6.7)

Taiwan

120

90

80

(10)

(6.9)

Total

1,270

1,2701,180(90)

(6.7)

8

Change%Nursing Careand Childcare

No. of Nursing Homes and Elderly Houses

Mar. 2019

Sep. 2019

Mar. 2020

Aria

24

2424

Clara

40

40

40

140

143

146

Madoka575757

Bon Sejour

45

4647

Cocochi

141414

Li-Re222

Total

322

326330Occupancy Rate of96%

95%

95%

Granny & Granda

Existing Facilities

9Berlitz

Berlitz No. of Lessons by Region (Berlitz operated)

Years ended December 31(Thousands of Lessons)

2018

2019

%

Americas

1,309

1,123(14.2)

Europe2,913

2,594(10.9)

Asia

1,614

1,599(0.9)

Total

5,837

5,317(8.9)

Three months ended March 31 （Preliminary figuares） (Thousands of Lessons)

2019

2020

%

Americas262

242(7.5)

Europe699

440(37.0)

Asia

388

339(12.6)

Total

1,350

1,023(24.2)

10CAPEX／Depreciation and Amortization(Millions of Yen)FY2018FY2019Change31,582

22,660(8,921)

10,541

10,57433

Goodwill

3,992

274(3,718)

Others

17,048

11,811(5,237)

19,884

19,885

1

CAPEX
Details: Lease Assets

Depreciation and Amortization

11Shareholder Return【Dividend per Share/Dividend Payout Ratio】
FY2017

Dividend per share(yen)Dividend payout ration(%)

FY2018FY2019FY2020(Forecast)

9550

50

50

73.8

98.2

76.6

ー

Forecast for the fiscal year ending March 2021 is not yet determined at this stage given the difficulty of making a reasonable estimate due to the impactof the expansion of COVID-19.

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