Benesse’s
Reform and
Growth Towarda Sustainable
SocietyFebruary 21, 2023
Benesse Holdings, Inc.

Teshima Art Museum (Benesse Art Site Naoshima,
Fukutake Foundation) Photo: Kenichi Suzuki

Today’s Agenda

Strictly Confidential.

1

Part 1 Benesse’s ESG and Sustainability
Part 2 Reform and Growth Toward a Sustainable Society
Looking to the Future

Hitoshi Kobayashi
Representative
Director andPresident, CEO

Haruna Okada
Managing Executive Officer,
Executive General Manager of ESG and Sustainability

Hidetomo Hashimoto
Senior Managing
Executive Officer
CDXO

Hisano Murakami
CHRO

Koutarou Ueda
CSO

Strictly Confidential.

Benesse Group Corporate Philosophy

2Part 1
Benesse’s ESG and Sustainability

History of Benesse’s ESG Initiatives

Strictly Confidential.

4

Integration of “Management” and “Sustainability Activities” in progress.
ESG and Sustainability Division launch

2022

2021
2020
2019
2018

・Group Environmental Conference
・Diversity Day
・Group Human Rights Conference

Disclosure of human rights policy andresponsible marketing
Human rights assessment policy and disclosure
ESG strategy considerations and response tochallenges
Development of sustainability vision
Materiality determination and disclosure
Formulation of Medium-Term Management Plan
“Transform and Grow Benesse 2022” andlaunch of Sustainability Promotion Committee

Structure of Sustainability and ESG Promotion Committee

Strictly Confidential.

5

Sustainability is at the core of corporate governance and matters for discussion are
submitted to the Board of Directors.
General Shareholder's Meeting
Appoints

Appoints

Audit & Supervisory
Board

Board of Directors

Reports

Internal Auditing
Department

President, CEO

Benesse
Corporation

Benesse Style Care
Co., Ltd.

Subsidiaries

Subsidiaries

Appoints
Nomination andCompensation
Committee

Independent
Auditors

Management Council
Company Management Committee
Sustainability and ESG Promotion
Committee
Group Human Resources Committee
DX Governance Board
Information Security SurveillanceCommittee
Risk and Compliance Committee Committee whose members are
full-time directors, including thePresident, CEO, and Head of eachBusiness Company.
 Sustainability and ESG Promotion
Committee established in April
2022 directly under the President,CEO Director in charge (Managing
Executive Officer) appointed

Administrative
Divisions

Subsidiaries

Group’s main policies and initiatives
regarding ESG and sustainability
determined

Overall View of Benesse’s ESG Initiatives

Strictly Confidential.

6

Responding quickly to changes in society and customers.
Improving human capital in particular is a driver of reform and growth

E

S

G

Contribution to asustainable global
environment

 Role of companies in climate control
measures
 GX and the real challenges of soaring
energy prices
 Need for essential medium- and longterm measures

 Establishment of environmental goals※Benesse Corporation
 Environmental practices compatible
with business characteristics
 CO2 reduction at logistic centres

Human resources
to support growth Strengthen human capital Changing job types through advancesin DX/AI Diversification of individual working
styles and values

 Engagement through spreadingawareness of principles
 Implementation of “B-STAGE”
proposal system Enhancing diversity
 Learning culture challenges

Furtherstrengthening ofgovernance Diversity in governance Board of Directors’ ESG commitments
 Maintain and improve information
security Corporate governance structure Improving effectiveness of Board of
Directors
 Thorough information security
measures

E Formulation of Environmental Targets

Strictly Confidential.

7

Establish medium- to long-term environmental targets and address climate change as a GroupScenario analysis in accordance with
TCFD recommendations

Analysis of risks and opportunities based on
probability of occurrence and impact, strategies
and promotion based on the results

Transition
Risks

Physical
Risks

Switch to alternative materials(recycled plastics, etc.)

Increase inenergy costs

Targets revised to 1.5℃
Scope 1 and 2 reduction targets certified by SBTi
Scope 3 reduction target SBTi 2℃ certified
Every year

Sharp rise in shipping costs(by trucks)

2030

2041

2050

Reputation risk if consumers’ environmental awarenessexpectations are not met

Changes in shipping methods
due to suspensionof logistics network

Failure to procure
from suppliers

Major damage tologistics hubs

Highly resilient
logistics base

※

※

※

4.4%

52.8%

100%

100%

1.23%

14.8%

-

39.4%

Restructuring of logistics networks
due to environmental changes andspread of infectious diseases

Changes in consumer awareness

Opportunities

Scope 1+2
(1.5℃ target)

Competitive advantage gained byinnovative environmental technologies※

Scope 3(2℃ target)

Global environmental conservation
initiatives※Benesse Corporation/ FY ended March※SBTi certified

E Environmental practices compatible with business characteristics

Strictly Confidential.

Providing opportunities for environmental education in line with children's’ development
stages and curriculum

Preschool

Elementary
school,Junior highschool,Senior highschoolCollaboration
withgovernment
agencies

TV show “Shimajiro no Wow!”「Creating the future competition,
environmental category」「 “Tankyu Nabi (Inquiry Navigator)” 」「STEAM library」※Ministry of Economy, Trade andIndustry’s “future classrooms”

8S Engagement through spreading awareness of principles

Strictly Confidential.

9

Employees play a leading role in Benesse’s sustainability activities.
Measures implemented to share thoughts with employees.
 Started in 1991

Founding
Day Morning  Held more than 20 times in
total
Meeting Held once a year since 2008

Sustainability
Study Started in 2019

 2022 theme “Diversity andTransformation”(23 companies and 4,000 people participated)

Philosophy
booklet“BATON”

 Published in April 2022
Distributed to all Group
employees(Initial distribution approximately
10,000)Group engagement
surveyMOTIVATION
CLOUD

A

S Group proposal system ”B-STAGE”

Strictly Confidential.

10

Group proposal system “B-STAGE”, which is rooted in employees’ self-initiatives,
attracts many business proposals.

1,782 proposals submitted
2021(Inaugural year)<New business proposal category>
1 Grand Prize, 2 Excellence Awards<Business reform proposal category>
1 Grand Prize, 2 Excellence Awards

3,427 proposals submitted
2022<New business proposal category>
1 Grand Prize, 2 Excellence Awards,
1 Special Prize<Business reform proposal category>
1 Grand Prize, 2 Excellence Awards

S Enhancing diversity

Strictly Confidential.

11

Enhancing the next level of diversity in women’s activities, aiming for new value creationand sustainable growth.
 Percentage of women in management
positions
Domestic average 9.4％ < Benesse33％※Benesse Corporation percentages (2022)

 Percentage of employees who returned
from childcare leave：Over 95％※Benesse Corporation and Benesse Style Care percentages (2022)

 Employees who took childcare leave：377※Benesse Corporation and Benesse Style Care percentages (2022)

 「Uncomfortable with female supervisors」
Benesse 2.7％ ＜ Domestic average 14.6％

S Learning culture challenges ①

Strictly Confidential.

12

Visualize number of people and placements by specialty required to execute the business plan,and objectively identify organizational capabilities. Periodically fulfill human resources needs.

GAP analysis of number of people required
and number of placements

Specialty definitions and individual specifications
Define skills for each specialty, verify the skills of all employees,
and manage through talent manage system

Evaluated byexperts in eachspecialty

Planning
BPR

Job types# of people
required# ofplacement

Placement levell
breakdown
Lv3

Lv2

Lv1

Planning
BPR

PMO

PMO
Development andmanagement

Development and management

Engineering

Engineering
Digital marketing

Fill rate for DX positions in 2022 was 86%(+15％ YoY)

Employee
database

Data
Skill definitions for each specialty are based on external skills standards(e.g. ITSS) and internal high performer analysis

Digital marketing

Data
Total
Increasevs previous year

Decreasevs previous year

Analyze 「urgent need for training due to sharp increase in Lv1」
by department and formulate individual training plans

S Learning culture challenges ②

Strictly Confidential.

13

Reskilling through 「assessment×job-specific training programs」.
Various measures to bring out employees’ independence.
Training system

Reskilling testimonials

Development of company-wide training programs in addition to
on-the-job training
Most of the 31 training programs are internal content using
in-house case studies

Passing on what one learns to the organization
Learning through interactions with experts across divisions

Planning
企画

BPR

PMO

Development& management
開発管理

Engineer
エンジニア

Digitalmarketing

デジマ

Selfdirected
自学自習
learning

Udemyによるオンライン講座
Onlinecourses by UDEMYSpecialized

外部アセスメント
Compass、HR君)
External(Skill
Assessment

スキル研修
training

Practical
実践

Practical
実践

Practical
実践

Introduction of「資格取得のsupportsystemfor qualification
支援制度」も導入
acquisition

Introductory

入門

Introductory

入門

IntroductoryBasicdigitalデジタル
training

基礎研修

I joined
Benesse as a new graduate in 1984. I have a wide range
1984年、新卒でベネッセに入社。
of experience from Red-Pen teacher to sales & sales
赤ペンから、小・中・高ゼミの営業・営業開発、
development for Shinkenzemi correspondence courses , web
WEBマーケ、情報編集など幅広く経験。
marketingand information editing. I have been deepening my
2014年のチャレンジタッチ開講を機に、
data
analysis skills since taking the Challenge Touch course(Shinkenzemi
tablet course) when it was first offered in 2014.
データ分析のスキルを深めていく。

(スキル×レベル別にレコメンド)
Recommended
by skill x levelknowledge
専門知識
and skill

Data
データ

Practical
Practical
実践

Practical
実践

Introductory
Introductory
入門 Introductory
入門
入門

Practical
実践

Practical
実践Time for a change!
変わらねば!
大の苦手な数学も学び、データサイエンティストにI learned math which I was not good at, and became a data scientist

入門

Introductory

入門■研修で2回連続不合格、手痛いトラウマで一念発起
I failed twice during training, and that painful trauma renewed my determination

Introductory

If you have more company experience, you will be able to handle the work.
社歴を重ねれば、仕事はこなせるようになる。
But as my role changed, I realized that new knowledge and skills are essential.
でも、役割が変わる中で新しい知識やスキルは不可欠だと痛感。

Basicデジタル基礎研修
digital training(全社員対象)(for allemployees)
ベネッセDXリテラシーチェック
BenesseDX literacy check

Benesse DX literacy check = 2,456 people (100％ YoY)
Training program participants = 6,504 people in total (180％ YoY)

Learn data by exploring■手探りでデータを学ぶ

I learn by searching through books, training programs, Udemy, YouTube, etc.
ゼミ会員の様子が可視化されたデータを活かしたい一心で、
with the focus on making use of data that visualizes how Shinkenzemi members
本・研修・Udemy・YouTubeなど手探りで学ぶ。
are doing. Before I knew it, I could understand math, which I was not good at, to
大の苦手な数学もいつの間にか高校数学超えのレベルまで理解。
a level beyond high school math.

Reskilling starts with a simple question■リスキルは身近な「？」から

Learning expands from coming across something you don’t know how to do in the course of familiar work.
身近な仕事の中での「これどうやったらできるだろう？」を考えるところから、学びは広がっていく。
Don't be afraid to start!
気負わずにスタートを!

G Thorough information security measures

Strictly Confidential.

Continuing to promote initiatives based on our determination to be a company
that takes the security of customer information most seriously.
Measures to strengthen systems security

Employee awareness and education

Strengthen system operation and surveillance, andcontinue technical measures

Annual Security Day in which all employees participate

Security measures insystem operation

Measures to prevent
malware infection

Measures to protect
telecommunications
networks

Systems and information
access control

Image oftraining materials※Benesse Corporation

Strengthen security environment

Accident response system

Implement security zoning (classification) by level

Enforce rule to report to contact point
within 30 minutes of discovery

President
CPO
Information security
contact point

Emergency Reporting
HotlineOrganization representative※Benesse Corporation

Person who discovered the accident

14

List of ESG external valuations

Strictly Confidential.

15

Benesse Holdings is listed for all ESG indices selected by GPIF.
※1

※1
※3

※2

※1

※2

※2

※2

SRI Index※1

Initiatives※1※1※ The inclusion of Benesse Holdings, Inc. in any MSCI index, and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute a sponsorship, endorsement, or promotion ofBenesse Holdings, Inc. by MSCI or any of its affiliates. The MSCI indexes are the exclusive property of MSCI. MSCI and the MSCI index names and logos are trademarks or service marks of MSCI or its affiliates.

※1 Benesse Corporation※2 Benesse Business-mate, Inc.

※3 Tokyo Individualized Educational Institute, Inc.

※1

Part 2
Reform and Growth Toward a Sustainable Society「Management foundations」 of Benesse’s aim for sustainable growth

Strictly Confidential.

Sustainable growth of the Benesse Group
Contributing to resolution of social issues facing「people」 at every stage of life

Creation of a sustainable society

17Benesse and our Purpose

Strictly Confidential.

Group corporate philosophy
Benesse=『well-being』

Changes in the times and social conditions
Declining birth rate, diversification, growing inequality,
technological progress, etc.
Group purpose (Meaning of our existence)
To answer the question 「Why does the Benesse Group exist?」,we must consider how we want to be viewed
by our customers and society at large.
This should inform the action plans and principles ofeveryone working in the business to create Benesse.

18

Establishment of the Group’s purpose ①

Strictly Confidential.

19

We established the management foundations we are aiming for as the 「Group‘s purpose」 (from April 2023)

Anybody can enjoy lifelong growth.
Toward a world in which everyone can live their own life.
Benesse will continue to aim for these ideals.

Establishment of the Group’s purpose ②“Anybody” means“All people”, “Diversification”“Sustainability” and“No one left behind”

Strictly Confidential.

20“Can enjoy lifelong growth” means
Benesse’s principle and appeal“Believing in the potential of humanbeings”

Anybody can enjoy lifelong growth.
Toward a world in which everyone can live their own life.
Benesse will continue to aim for these ideals.
”World” broadly means“future”, “global”, and“social systems”“Live their own life”
including the ideasof diversity and well-being“Benesse will continue to aim for these ideals” encapsulate our resolution“There are no goals, but ideals that we continue to follow”.
As a company’s determination, these words motivate our employees.

Understanding Population Change and Social Issues in Japan
Strictly Confidential. 21
As Japan’s population changes, understanding of social issues is being reconsidered.
Infants, Elementary toHigh school students

Pregnancy, childbirth and parenting

Ongoing decline in the birth rate
DeclineDeepening in social issues andmarket creation

University and working adults

Seniors

Longer working life

Rise in thepercentage of elderly
peopleExtendRise

Seeing increasing social needs
as a business opportunity

Social Issues People Face at Every Stage of Life

Strictly Confidential.

22

Reorienting our business to reflect social issues faced by “people”
Pregnancy, childbirth and parenting

Concerns and worries
about childbirth andchildcare（in the era of a declining birth rate）

Support for 「child development」
Support for 「parents andother caregivers」

Infants, Elementary toHigh school students

Inequality of educational
opportunities
Children’s motivation
to learn declining

Support for diverse 「learning」
and creation of educationthat increases motivation

University and working adults

Seniors

Delay in university reform

Increase in seniors whoneed nursing care services

Change in requirements
for work

Shortage of nursing care staff

Shortage in labor force

Delay in DX(digital transformation)「Individual well-being」 andcontributing to 「active
participation in the workplace」

Enhancing nursing care for the「super-aging society」 in an
era of living to 100 and beyond

Expanding Our Business Domains Focused on People① Education Business in Japan

Strictly Confidential.

23

Supporting all infants and students to follow their dreams and learn their own way.
Social issues and customer needs

New initiatives■Shift from conventional university entrance exams to
Advancement achievement program
intra-year admissions (recommendation, Comprehensive)
Ratio of intra-year admissions (recommendation, Comprehensive)
Used by around 500
high schools andto private universities up
110,000 students in

42.4% in 2001⇒58.2% in 2021

its second year
since launch※Source: Ministry of Education, Culture, Sports, Science and Technology■Increasing needs for diverse learning
Proportion of parents and caregivers of 1st year
elementary school students wanting their child to“develop a sense of curiosity and positive attitude” up

Mirai Campus

Challenge School

39% in 2018⇒46% in 2022
※Source: Benesse Corporation■Rise in children with varying levels of development and「inclusive education」
Proportion of children with serious difficulties in learning andbehavior up

6.5% in 2012⇒8.8% in 2022

※Source: Ministry of Education, Culture, Sports, Science and Technology

Maru Grand

2022 Japane-Learning Awards
Grand PrizeExpanding Our Business Domains Focused on People② University and Working Adults

Strictly Confidential.

Toward a society of lifelong learning, support for individuals and institutions
Social issues and customer needs■Increase in reskilling demand and growth in HR market
Rise in awareness and demand triggered by advance indigitalization and labor shortages

1/2 of all workers in need of reskilling

according to report ※Source: The Future of Jobs Report 2020, World Economic Forum

New initiatives
Udemy
In use at
1,000+
companies
in Japan

Working
support■Japan has lowest level of adults in education in the OECD
Percentage of adults aged 25~64 studying at educational institutions

Japan lowest at 2.4% compared to OECD average 10.9%
Source: Ministry of Health, Labour and Welfare■Rise in the number of foreign workers in Japan
Foreign nationals in Japan currently only 2% of Japan’s
population, but expected to rise to

more than 10% by 2060

※Source: Ministry of Land, Infrastructure, Transport and Tourism

Inbound support
Careerin Japan24

Expanding Our Business Domains Focused on People③ Nursing Care

Strictly Confidential.

25

Resolving nursing HR issues and supporting higher QOL for seniors
Social issues and customer needs

New initiatives
Expansion in HR
recruitment/dispatch services■ Shortage of nursing care staff and worsening
supply-demand gap

Benesse MCM

Joined Group in 2021
Heart Medical Care

Shortage in nursing care staff set to expand

220,000 in FY2023⇒690,000 in FY2040※Source: Ministry of Health, Labour and Welfare

Giving back knowledge and contact points fornursing care industry
100,000 registeredusers, mostly fornursing care jobs

■ Rise in the number and proportion of seniors with dementia
Projected number of dementia patients aged 65+ andprevalence set to rise

6mn (17%) in 2020⇒8mn (21%) in 2040
※Source: Ministry of Health, Labour and Welfare

Majikami AI

FY2022 Information
Technology Award<Customer and business
function area>

Building on Benesse’s Strengths

Strictly Confidential.

26

Customer contact points accumulated through products and services for each life stage
is a major asset to build upon.
Pregnancy, childbirth and parenting

Tamahiyo

Infants, Elementary toHigh school students

Kodomo Challenge

Tamahiyo WEB[Monthly users]

4.38mn ※1[Annual downloads]

534,000 ※2

Seniors

Kaigo Antenna

Shinkenzemi[Domestic enrollment][Domestic users]

2.49mn※3[Membership ]1.10mn+ ※6

100,000

Manabi Handbook Manavision[Total downloads]

Tamahiyo app

University and working adults

1.89mn ※4[IDs issued]

1mn ※5

Elementary and junior high school
points of contact

Mirai SeedHigh school points of contact

Compass

EDUCOMClassi

9,010 schools 10,763 schools 4,391 schools 1,511 schools
※7

※8

※9

※10

※1: Nov 2022
※2: 2022※3: Apr 2022
※4: Jan 2023
※5: Feb 2023
※6: Based on inclusive
operating agreement with
US company Udemy※7: Mar 2023 forecast※8: Jan 2023
※9: FY2021※10: End-Jan 2023

Stance on Target and KPI setting

Strictly Confidential.

27

Establishing targets and KPI by separating the value we create into three types:
customer value, social value, and economic value

Non-financial KPI・Number of customers
・CS (customer satisfaction)

CustomerValue

商品・サービス

Anybody can enjoy lifelong growth.
Toward a world in which everyone can live their own life.
Benesse will continue to aim for these ideals.

Non-financial KPI・Social impact
・ESG

Social
社会課題解決Value

Economic
Value

Financial KPI・Profitability
・Efficiency

KPI

Strictly Confidential.

Education

Nursing Care

VisionKPI ※Levels TBD▼Children and families

Customer
Value

Enjoy learning with enthusiasm, dreams,
and goals to attain the qualifications, skills,
and attitudes for the future▼Working adults and employers

Help workers take ownership of theirown careers and live a life of continued
participation in society

Social Value

Provide learning to navigate the future,
support lifelong learning, and increase
the number of people developing new
lives

E

28

■Product
satisfaction rate,
retention rate

■Adoption andnumber of content
users for「Udemy」■Diverse learning
Total no. of users■Education for
university students
and working adults
Total no. of users■Scope 1+2 (1.5℃ target)
・2030 52.8％・2050 100％

S

VisionKPI▼Seniors and families■Accredited
Majikami

To allow people to always live life on
their own terms▼Nursing care workers (humancapital)Enable nursing care career visions andcontinued improvement of one’s
potential and expertise

Increase seniors’ QOL and increase thenumber of nursing care worker rolemodels by fusing IT and humanknowledge■Engagement survey 「A」■1 female managing director

G・600 in total (FY25)■Leading thestandard ofcompensation in thenursing careindustry■Majikami AI
development status

・Use at all fee-paying
care homes (FY24)■Membership ofKaigo Antenna
・300,000 (FY25)■Increase efficiency ofBoard of Directors

Economic

Value

Net Sales ¥500bn Operating Income ¥40bn (FY25)

非財務KPI

Strictly Confidential.

Benesse as Viewed by External Directors

29

Looking to the FutureProgress of reform business plan

Strictly Confidential.

31

The following main themes are under consideration ahead of the publication of
the reform business plan in May

Today
ESG briefing

Current initiatives～
March
Business planning study
meeting
Education in Japanreform meeting<Internal deliberation>

ESG andSustainability■ Future shape of Benesse■ Aligning the business with customer value and social value■ Growth vision, strategy, and action plan for FY25 and beyond

Businessreform・Reform of Education in Japan business（cross-sectional domestic education

strategy, regional strategy）

・Reform of K&F business・Accelerate growth fields (university and working adults, nursing care, overseas

business)

Corporate
reformMay■ Corporate measures to accelerate business reform

・Strategic resource allocation, corporate governance, HR development

Reform business plan briefing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.