Benesse Holdings, Inc.
FY2022 Consolidated Financial Results Briefing
May 12, 2023

Event Summary[Company Name]

Benesse Holdings, Inc.

[Company ID]

9783-QCODE[Event Language]

JPN[Event Type]Earnings Announcement[Event Name]FY2022 Consolidated Financial Results Briefing[Fiscal Period]

FY2023 Annual[Date]

May 12, 2023

[Number of Pages]

29[[Number of Speakers]

2
Hitoshi Kobayashi
Shinsuke Tsuboi

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Representative Director and President, CEOManaging Executive Officer, CFO, Executive
General Manager of Finance and Accounting

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Presentation
Tsuboi: Thank you very much for taking time out of your busy schedule to join us today. Now, I would like to
begin with an overview of the FY2022 business results.

This slide shows the performance highlights for FY2022.
As for the consolidated results for FY2022, sales decreased, and income increased. Net sales decreased 4.6%
from the previous year to JPY411.8 billion, operating income increased by2.2% to JPY20.6 billion, ordinary
income increased by 3.2% to JPY15.8 billion, and net income increased by 966.8% to JPY11.3 billion.
ROE was 7.5%, a significant improvement from 0.7% in the previous fiscal year. This is the first time in fivefiscal years that ROE has exceeded 7%, and the highest level in the past nine years since the personal data
breach.
FY2022 will be the final year of Phase I of the current medium-term management plan. We had hoped toachieve a V-shaped recovery in operating income during the first two years of Phase I, exceeding the FY2019
level of JPY21.2 billion, but the results fell just short of that level.

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2This is the results summary. I would like to explain the FY2022 financial figures in terms of YoY and forecast
figures.
First, as for the previous year, sales declined by JPY20.0 billion. This is almost the same amount as the JPY20
billion in sales of Berlitz, which was in the group last year, and we believe that the JPY20 billion decrease insales can be attributed to this factor.
The operating income increased by JPY400 million. The first is a JPY2.7 billion reduction in losses from the saleof Berlitz, and the expansion of the university students and adult businesses, especially Udemy, whichamounted to JPY1.1 billion, as well as the positive effects of Kodomo Challenge in Japan and Naoshima.
On the other hand, the Kodomo Challenge business in China suffered a negative impact of JPY2.4 billion due
to a decrease in enrollment as a result of the China Zero-COVID policy, and Shinkenzemi, which will be
discussed later, experienced a decrease of JPY1.4 billion due to a review of the burden of selling expenses bysegment, etc. The prolonged impact of the pandemic on the Nursing Care Business resulted in a decline ofapproximately JPY1.3 billion.
And on the other hand, net sales fell short of the revised forecast announced last November, the forecast forthis fiscal year, and the forecast for the previous fiscal year by JPY5.1 billion. Operating income decreased by
JPY0.8 billion mainly due to K&F business and Tokyo Individualized Educational Institute, Inc. not achieving
the plan.

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3Here is a waterfall chart showing the change in sales by business from FY2021 to FY2022 of the previous fiscal
year.
In Education business in Japan segment, Shinkenzemi sales declined by JPY8.3 billion due to a decline inenrollment, while sales in the University and Working Adult Business increased by JPY5.7 billion due to sales
expansion. The combined sales of School and Teacher Support, prep schools, and others decreased by about
JPY0.4 billion, resulting in a total Education business in Japan sales decrease of JPY3 billion.
In the K&F business, sales declined by JPY3.3 billion due to a decrease in enrollment in China and Japan, andthen the impact of reduced sales in the media business. In the Nursing Care and Childcare business, sales
increased by JPY5.2 billion due to an increase in the number of facilities and the effect of price revisions during
the period. Others were a JPY20 billion drop in sales from Berlitz and an increase in sales from the Naoshimabusiness, which is included in the others category.

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4The following is a waterfall chart showing the change in operating income from FY2021 to FY2022 by businesssegment.
In Education business in Japan, while Shinkenzemi's profit declined by JPY1.4 billion, the total segment profit
increased slightly due to a JPY1.1 billion increase in profit from University and Working Adult Business and anincrease in profit from the Prep schools and Classrooms Business.
Of the JPY1.4 billion decrease in Shinkenzemi, about JPY1 billion was due to the impact of the review of theburden of selling expenses by segment, resulting in an actual decrease of about JPY400 million in the
Shinkenzemi business.
On the other hand, in the K&F business, in China suffered a negative impact of JPY2.4 billion due to a decreasein enrollment as a result of the China’s zero-Covid policy in the Chinese Kodomo Challenge business. On theother hand, although there was a positive effect from a review of the burden of selling expenses by segment,
overall segment income decreased by JPY1.6 billion.
In the Nursing Care and Childcare business, while there was an increase in income due to higher sales, there
was a delay in improvement in occupancy rates due to the prolonged impact of COVID-19 and an increase inutility expenses due to soaring fuel prices and taxes and public charges due to the increase in the number oflocations.
As a result, the segment as a whole saw a decrease of JPY1.3 billion. In addition, the JPY2.7 billion loss
eliminated by the grouping-out of Berlitz and the profit improvement effect of the Naoshima businessSupportJapan
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5included in others resulted in an overall increase of JPY400 million to JPY20.6 billion.

I would like to continue by explaining the highlights for FY2023 and the current fiscal year.
For FY2023, we expect both sales and income to increase, albeit moderately.
We expect net sales of JPY423.0 billion, up 2.7% from the previous year; operating income of JPY21.5 billion,
up 4.3% from the previous year; ordinary income of JPY16.0 billion, up 0.7% from the previous year; and net
income of JPY11.5 billion, up 1.3% from the previous year.
We are forecasting an ROE of 7.3%, and while we will maintain the 7% level, we do not expect to reach the
8% level that we have announced for 2023 ahead of schedule at this time.

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The next slide is an explanation of the main points regarding the full-year forecast summary for FY2023 interms of comparison with FY2022.
First, recovery from the new COVID-19 in the Nursing Care and Childcare Business will drive profit growth.
Operating income is expected to increase by JPY2.8 billion YoY. Shinkenzemi is expected to decrease in thenumber of enrollments, but profit growth is expected to be absorbed by price revisions and cost reductions.
In the University and Working Adult business, we expect further growth of Udemy and expansion into newareas through M&A and alliances.
In addition, in FY2023, we plan to make several investments for future growth. The main areas of investment
for growth are the strengthening of products and infrastructure in the elementary and junior high school
business in preparation for the replacement of GIGA in FY2025, investment in sales expenses and humanresources to accelerate the growth of Udemy, strengthening the area business promotion system, businessdevelopment in India, and investment in DX human resources, etc.
We expect to increase investment by approximately JPY3.0 billion in this area of business. These factors haveresulted in a reduction in the increase in profit.

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The next slide will be a chart showing the change in sales by business from FY2022 to FY2023.
First, in the Education business in Japan segment, Shinkenzemi sales are expected to decrease by JPY3.9 billion,
the School and Teacher Support Business is expected to increase by JPY2.8 billion, and University and Working
adult Business is expected to increase by JPY1.2 billion, for an overall increase of JPY1.9 billion in Education
business in Japan segment sales.
In the K&F Business, sales are expected to remain mostly unchanged in the segment as a whole. The Nursing
Care and Childcare Business, however, is expected to increase sales by JPY8.8 billion.
In addition, there are other factors such as an increase in sales from the Naoshima project, resulting in a
projected overall increase in sales of JPY11.1 billion.

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The following chart shows the change in operating income from FY2022 to FY2023 by business segment.
In Education business in Japan, while Shinkenzemi is expected to post an increase of JPY700 million and the
University and Working Adult business an increase of JPY200 million, the prep school and classroom businessis expected to post a decrease of JPY600 million, for a total segment increase of about JPY300 million.
In the K&F business, operating income is expected to increase slightly from the previous year. The Nursing
Care and Childcare Business is expected to post a significant increase of JPY2.8 billion. This is in addition to
the strategic investments included in others and increased costs associated with the expansion of the India
business. Overall, we expect an increase of JPY800 million to JPY21.5 billion.

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On the next slide, I will explain the breakdown by segment and business.
First is the Education business in Japan segment. In the Shinkenzemi division, sales are expected to decreaseby JPY3.9 billion, although the negative impact of the decline in enrollment will be partially offset by pricerevisions. In terms of operating income, while the decrease in sales is expected to reduce profits, a total
increase of JPY700 million is expected due to a decrease in system amortization expenses and cost reduction
effects.
In the School and Teacher Support Business, we expect a JPY2.8 billion increase in sales due to price revisions
for Shinken Simulated Exams and the strengthening of the area structure. Profit is expected to decrease by
about JPY600 million due to an increase in upfront investment of about JPY1.1 billion in the elementary andjunior high school business for FY2025 and beyond.
In the Prep school and Classroom Business, we expect an increase in overall sales due to higher profits at eachschool, but we expect a JPY200 million decrease in profits due to lower profits at Tokyo Kobetsu Shido Gakuin
and start-up costs for UP's junior high school entrance examination business in the Tokyo metropolitan area.
In University and Working Adult Business, there was a reaction to the special demand for the study abroad
program in the previous fiscal year, but Udemy grew, resulting in a total sales increase of JPY1.2 billion.
However, we expect an increase in investment for growth, about JPY900 million, and as a result, we plan anincrease in profit of about JPY200 million, for a total segment increase of about JPY300 million.
In the K&F Business, although there will be a decrease in sales due to lower enrollment in Kodomo Challengein Japan and China, we expect overall sales in the segment to remain mostly unchanged due to the effect ofprice revisions and an expected recovery in sales in the media business. Profits are also expected to remain
mostly unchanged as we plan to strengthen sales promotion for early business recovery in China while
anticipating a recovery in the lifestyle area.

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The Nursing Care and Childcare Business is expected to post a significant increase in sales of JPY8.8 billion due
to an increase in occupancy rates, an increase in the number of facilities, and the effect of price revisions.
Profits are also expected to increase substantially by JPY2.8 billion, offsetting various cost increases.
Other factors include an increase in sales from the Naoshima business. As a result, we expect an overall
increase in sales of JPY11.1 billion, but we also expect an overall increase in income of JPY800 million due tostrategic investments for transformation and increased investments in the India business and other areas.

Now, this will be the last slide of my explanation. These are the April enrollment figures for Shinkenzemi and
Kodomo Challenge, which we disclose on an ongoing basis.
The total number of enrollments of Kodomo Challenge and Shinkenzemi courses for elementary, junior high,and high school students was 2.21 million, down 290,000, or 11.5%, from 2.49 million last year. The
Shinkenzemi courses for elementary, junior high, and senior high school students decreased by 8%, while
Kodomo Challenge experienced a large drop in enrollment, down 19%.
Looking at paper and digital enrollment, the number of digital enrollments remained almost on par with theprevious year, while paper course enrollment fell significantly below the previous year's level. In addition,
here, where the drop is particularly large, the drop in the zero to three-year-old nursery line is larger than in
the four to six-year-old pre-school line.
In addition to the declining birthrate, we believe this is largely due to macroeconomic factors such as widening
economic disparities. We would like to take these results and make changes based on a deeper understandingof the diversification of current needs and customer realities.
Although the decrease in enrollment is significant, the effect of the price revision is expected to limit the total
sales of Shinkenzemi and Kodomo Challenge to JPY4.2 billion, a decrease of 3.8%. In addition, the current April
retention rate has remained higher than that of the same period of the previous year.
This is an overview of our business performance.

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Kobayashi: Thank you for your time today. I would now like to talk about our future business policy, especially
how we are planning for the FY2023, the single fiscal year.
I will discuss three points today.
First, as Tsuboi mentioned earlier, last year was the end of the first phase of the first and second phases ofthe medium-term management plan. Accordingly, we would like to take a look back at this first phase.
Secondly, I would like to talk about the positioning of the FY2023, including the future of Benesse, and the
key themes of our main projects.
Finally, next Friday, the 19th, I will be presenting the Transformation Business Plan, which I had previously
promised to do.
I would like to briefly introduce some of these points today.

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First, let me review our medium-term management plan.
The medium-term management plan that Benesse is talking about now is the one announced in November
2020, on the far-left side of this chart. At that time, I mentioned that 2021-2022 would be the first phase ofrecovery from the COVID-19 and a V-shaped recovery. Based on the above, we have announced that fromFY2023 to FY2025, Benesse will further grow by taking on challenges and achieving growth.
We are also updating this November 2020 financial KPI when we announced our May FY2022 financial results.
As I mentioned before, we are accelerating to achieve sales and operating income and ROE of 10% or more.
We have been proceeding with our business as it is, but there have been a number of significant changes inthe business environment. The largest change is still COVID-19.
In this context, we believe that it is necessary to make changes based on a portfolio approach that clearly
positions each business for sustainable profitable growth.
We will also review the strategies and KPIs to achieve this at the same time, and this will be the positioning of
the transformation business plan that we will announce next week.

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Now I would like to talk about the first phase, the end of last year, and what is our perception of this phase.
First, Phase I targets as financial targets, V-shaped recovery from the impact of the COVID-19. This was,unfortunately, a slight underachievement. Operating income for FY2019 is before COVID-19. It was JPY21.2
billion. As Tsuboi mentioned earlier in the financial results for fiscal 2022, the operating profit was JPY20.6
billion, meaning that we have not achieved our goal of about JPY600 million short of the target.
In this context, we are talking about the evolution of our core businesses, which are Education business inJapan, Nursing Care, China, and things like that, and in fact, Education business in Japan has made a significant
V-shaped recovery from the 2019 numbers before this COVID-19. The operating income for Education
business in Japan in FY2019 was JPY14.0 billion. In 2022, the previous period, the operating income for
Education business in Japan was JPY19.1 billion. I think we can say that a V-shaped recovery has been achieved
here.
On the other hand, the medium-term management plan also indicated that we would do our best to achieve
inorganic growth in our existing core businesses. I think we can say that we have started preparations for thelaunch of various learning support businesses and the establishment of Heart Medical Care, a peripheral
Nursing Care Business, as a consolidated subsidiary.
On the other hand, the Nursing Care Business, and the Kodomo Challenge business in China, unfortunately,
have been affected longer by the COVID-19 than we had originally thought. The plan was to achieve morethan JPY21.2 billion in the first phase to achieve a V-shaped recovery, but we believe that the biggest reason
for not achieving this figure was that the impact of the COVID-19 in the Nursing Care business and the China
Kodomo Challenge business was slightly ahead of schedule.
The next major point of the first phase was to prepare for, and initiate, the challenge of entering new areas
in FY2023 and beyond. Let me tell you a little about the situation.
First of all, we mentioned that we were going to make a full-fledged effort in the area of University andWorking Adults as one of the growth areas. As an organization, we have raised the University and Working

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14Adult Business from the Business Division to the Company. We have established a new company. And the
Udemy business is currently expanding very steadily. The number of companies that have adopted the system
has exceeded 1,000 as of the end of this fiscal year and has reached that point.
In addition, in order to further accelerate growth in the University and Working Adult Business, we haveinvested in and partnered with SkyHive and brought Waris into the group, and I think it can be said that wehave been involved in these kinds of projects.
Meanwhile, looking overseas, we have established a company called Benesse India and have started a school
education support business for schools in India. We are steadily beginning preparations for this one as well,and hope to move toward future growth.
It is about the management infrastructure that supports these activities. We have been working vigorously
for the past two years to organize our issue projects and to promote DX. I think the biggest challenge was thesales of Berlitz, which had been a continuously loss-making business. By doing this, it greatly improved
profitability.
Also, digital. We are trying to aim for business growth using digital in all our businesses. During this Phase I,
we created an organization called Digital Innovation Partners to strongly support and lead the growth of all
our businesses using digital technology. The entire group is now promoting digitalization centered on thisorganization.
This is how we have organized our achievements in Phase I of the medium-term management plan, or what
remains to be done in the future.

Continuing on, I would like to talk a little bit about how I am positioning this single FY2023, right now.
I believe that these three things will be very important for Benesse in FY2023.

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Firstly, we would like to make aggressive investments in growth areas for the next stage of growth. As Tsuboi
mentioned earlier, we are considering investing about JPY3 billion for the next growth or to maintain andimprove our customer base.
At the same time, we must steadily work to resolve issues in our core business. In addition, strengthening themanagement base is a very important point as we grow our business in the future. This is to strengthen thedevelopment of the area, or the human resources themselves, and the continued enhancement of DX. I
believe that this is also something we need to plan for and work on this FY2023.
While working through these initiatives, we are sure to achieve an increase in sales and profit. That is how we
see the positioning of FY2023 for Benesse.

I would like to continue by discussing the key points of each of these projects for this FY2023.
First, Education business in Japan. I will talk about Education business in Japan, which includes Shinkenzemi,
schools, and K&F's Kodomo Challenge, although the segments are slightly different.
I believe that we must now overwhelmingly focus on three things: product value, redesign of sales methods,
and reform of cost structures.
Challenges and Opportunity Points. Accelerating declining birth rates or diversifying needs, and a major shift
in schooling that began during the COVID-19 disaster. This is the progress of the intra-year entrance
examination or GIGA school concept. And the decline in children's motivation to learn is actually occurring in
the periphery of the Education business in Japan business.
This is the recent situation. Unfortunately, the number of Shinkenzemi and Kodomo Challenge members inJapan decreased by 11.5% compared to the previous year, as Tsuboi explained earlier. High school assess, alsoslightly, were down 1.8% from the previous year and down last year.

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On the other hand, the number of schools using Benesse's Miraiseed, which has been released for compulsory
education in elementary and junior high schools, has been increasing even more. Approximately 9,000 schools,
or 30 percent of schools, are using Benesse's Miraiseed. This is the current situation.
Under these circumstances, or in the context of challenges and opportunity points, I will tell you what ourpriority in FY2023 is. First, we decided to thoroughly strengthen our educational materials service. With thechanging environment and motivation of our customers, I believe that we naturally have to strengthen ourefforts to address the decline in children's motivation to learn.
We have already talked about this in various releases, but we have also begun to work with Nintendo on a
Switch tie-up and a new VR learning method for some grades. As I mentioned earlier about the enrollment
numbers, we are starting this mainly in the junior school seminar, but the April newcomers in the junior school
seminar are not hurting as much as in the other seminars.
I also feel that we have been a little weak in our efforts to propose new things to children that they would liketo do or would like to try. We need to expand the target grade levels in this area and continue to offer things
that children want to do, including VR and other things besides Nintendo Switch, which I mentioned earlier.
We are going to put more effort into doing that.
On the other hand, there is a GIGA terminal replacement in 2025. What this means is that at the time of the
COVID-19 disaster, GIGA terminals were distributed all over the country on a national budget. So those will
be replaced. In addition, we are currently offering paid learning software for learning on these devices, which
we call Miraiseed, and this is also under a five-year contract. This is where the contract has to be renegotiated.
In order to achieve this, we will make investments in FY2023 to expand our share of the market by renewing
contracts in the next round of replacements.
On the other hand, it is clear that diversified needs are occurring. In this area, we will use our customer base,i.e., the number of seminar members, to provide a variety of learning opportunities in a more focused andenhanced manner. That would be EVERES or the expansion of the Challenge School.
In addition, school divisions are also expanding a bit in schools, for example, through mid-year entrance
examinations. Career paths are becoming more and more fragmented from high school to high school. Under
such circumstances, I believe that we must naturally strongly release and strengthen new products and new
products that will really help children think about what kind of career path they should choose and what kindof destination they should consider for their next steps.
In addition, the educational gap in the region, or educational initiatives in the region, have changed
considerably in each region over the past year or two. We believe that it is very important for education in
Japan today to catch up with this trend and make product and business proposals that are suited to the region.
We have created a new Area Business Promotion Division this April to strengthen the area business. I believe
this is also a very important point for FY2023.
On the other hand, we believe that there is still much to be done and much that can be done, in the area of
Education business in Japan, so we will continue to examine items and amounts and implement them.

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Continuing on, we have University & Working Adult in the Education business in Japan segment.
This one is now the Benesse Group's most important theme for future growth areas, and we are considering
aggressively investing in this area.
Challenges and Opportunity Points. I think this is more of an opportunity point than a challenge, but I believethat the need for reskilling and HR-related services is expanding both for companies and individuals. This issomething that we, as an operator of Udemy and other services, have experienced firsthand.
Sales growth rate. The growth rate of sales in this area has also increased steadily over the last year, 40.1%
year over year. Udemy's business is also expanding steadily. The number of companies that have adopted thesystem has exceeded 1,000, and the number of individual members has also grown to over 1.3 million. With
this in mind, we will also work with companies such as SkyHive and Waris, which have important elements tobuild this business. We have been working on this from the end of last fiscal year through this April.
Priority Items for FY2023. Strategic allocation of resources for business expansion, which will be further
strengthened. We are now assembling a corporate sales force, first of all in the form of a 60% increase in sales
personnel over the previous year. In this context, we are preparing for corporate sales, or sales tomunicipalities, or strengthening functions such as content, data science, and corporate, to firmly grow ourbusiness. And we will also strengthen sales promotion.
We also intend to further accelerate the effective use of our own infrastructure and mergers and acquisitions.
On the right side, I have included a little description of what we are aiming to achieve through our capital andbusiness alliance with SkyHive. Now, that is why we already have the area of training on Udemy. On the other
hand, visualization of skills, especially when we are communicating with corporations, we need to clarify theskills that our corporations will need to grow their business in the future, or the skills that their current
employees have, and to fill this gap. When such things become necessary and the skills gap becomes apparent,
the reskilling training program will be even more useful. I think it will be that kind of cycle.

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We now have the ability to nurture in Udemy. SkyHive is a company that can make these skills visible. By
combining the two, we will be able to strengthen our proposals to companies and individuals and increase
our product power. In this sense, we have also entered into a capital alliance with SkyHive.

This is a Nursing Care and Childcare Business.
For the Nursing Care and Childcare Business, as I mentioned earlier at the beginning, COVID-19 has influenced
them for a somewhat long time. We still need to recover the occupancy rate as soon as possible. And we now
recognize that the Nursing Care Business also has ample potential for new business growth through new andperipheral businesses.
The challenges and opportunity points are, first, early recovery from the COVID-19 impact. We are also
thinking of solving the social issues that exist in this business area, such as the shortage of nursing carepersonnel, as an opportunity point for new business.
As for the current situation, the occupancy rate at the end of March was 90.4%. The occupancy rate at thesame time a year ago was 90.1%, so there has been a slight improvement. However, we had originallyintended to build this area at a higher level, so in that sense, I have the impression that the impact of the
COVID-19 is still lingering.
On the other hand, the number of requests for information materials or tours has been growing both in termsof requests for information materials and monetary value. This May, the COVID-19 becomes category 5 andvarious changes in the COVID-19 environment are taking place. I believe that such a situation has been createdrecently.
Therefore, our first priority for 2023 is to quickly restore the occupancy rate in the Nursing Care Business, andthis will be our first priority. We have a great advantage in building relationships with hospitals and caremanagers, as well as in short-stay services. We have further strengthened this area and also reinforced oursales structure.

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We are now creating a financial plan for this project to raise the occupancy target to 93.9% by the end of
March next year, in 2024. I believe that this is more important than anything else in the Nursing Care Business,that we must complete a strong and solid year in order to get there.
On the other hand, a strategic store opening plan will be an important factor in growing this business in FY2023
and beyond. We have been expanding our business in the Tokyo metropolitan area, Nagoya, and Kansai, but
we are now considering expanding our business area. Specifically, we are currently developing properties in
Kanazawa, Hiroshima, Kumamoto, and other cities.
This is actually linked to the region's strategy for recruiting human resources. Very simply, the move is linked
to Benesse Care's strategy for recruiting nursing care staff, not just putting out facilities. Therefore, we would
like to make a strong showing here.
In addition, as I mentioned earlier, we intend to strongly launch the development of new businesses in thearea surrounding nursing care in 2023.

This is the last point for the business. China Kodomo Challenge.
Similar to nursing care, the China Kodomo Challenge is also suffering from the lingering effects of the COVID19. We are also trying to make sure that we are investing in the recovery of this area. That is how we think
about China Kodomo Challenge in FY2023.
Decrease in enrollment due to the impact of the COVID-19 or accelerated decline in the birthrate. However,as an opportunity point, the competitive environment is easing due to a change in Chinese policy called the
double reduction policy. This is now moving positively. They are also now working on converting our sales
from a fixed cost type to a variable cost type.
Through these efforts, we are trying to quickly recover the number of enrollments in China. This is why weare positioning ourselves to make investments in FY2023.

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As for the current situation, the number of members decreased by 16.5%, due to the impact of COVID-19.
However, the current retention rate or the number of new members is already showing signs of exceedingthat of the same period last year. I would appreciate your understanding that FY2023 is positioned as the year
in which investments will be made to further drive this trend.
Priority Items for FY2023. The idea is to invest mainly in selling expenses in order to achieve a quick recovery
in enrollment while focusing on the balance of profits. We are also considering the expansion of peripheralbusinesses using the LTV and customer base, and at the same time, we are thinking about this in the China
Kodomo Challenge.

I would like to continue today with just a few key points of Transformation Business Plan that we will bepresenting next week.
There are three major points. In a business environment that is undergoing various structural changes,
however, we have also set forth our Group purpose. In order to continue to pursue the realization of thisGroup Purpose, we must make sustainable profit growth possible over the medium to long term.
To this end, we believe it is essential to have a firm grasp of our own portfolio structure and to proceed withthe transformation of each of our businesses under that structure. Next week, we will be providing guidancein this area, including the concept of portfolios.
On the other hand, what kind of shape are we aiming for? This means that with FY2025 as the middle passage,
Core Education, Core Nursing Care, and New Fields will become the three major profit pillars supporting theBenesse Group in FY2028. Our intention is to create a Transformation plan based on a transformation plan
portfolio that can do that, and we would like to clarify in the Transformation Business Plan how we will dothis area as well.
In addition, I would like to talk about not only this project, but also the reform of the management structure,
how Benesse will carry out this Transformation Business Plan, and what kind of mechanism will be used tocarry out the reform. Those are the three points.

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21Here is a diagrammatic representation of what we have just discussed.
We will clarify in more detail how we will consider our core businesses in our portfolio strategy and how wewill take on the challenge of new growth, and at the same time, we will clarify and present the changes in ourmanagement structure to realize these strategies.

In this context, I would like to talk today about our operating income target for FY2025 and what we are
currently thinking about.

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The target figures have been revised in consideration of the current status of existing businesses andinvestments in new businesses for growth in FY2025 and beyond. We had previously announced an operating
income target of JPY40 billion for FY2025, but we would like to change it to more than JPY32 billion, a figurethat considers the investment for the next stage of growth.
At the same time, we intend to maintain our ROE target of 10% or more by 2025.

Last from me.
In terms of shareholder returns, from the viewpoint of stable dividends, we currently plan to maintain theannual dividend of JPY60 per share for FY2023.
That is all for my presentation. Thank you very much.

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Document Notes
1.
2.
3.
4.

Portions of the document where the audio is unclear are marked with [Inaudible].
Portions of the document where the audio is obscured by technical difficulty are marked with [TD].
Speaker speech is classified based on whether it [Q] asks a question to the Company, [A] provides ananswer from the Company, or [M] neither asks nor answers a question.
This document has been translated by SCRIPTS Asia.

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