1H Results for FY2020
Supplementary Materials

November 6, 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)
Six months ended September 30

Education Business in Japan
Global Kodomo Challenge
Nursing Care and Childcare
Berlitz
OthersTotal Net Sales
Education Business in Japan
Global Kodomo Challenge
Nursing Care and Childcare
Berlitz
Others/Reconciliations
Total Operating Income
Ordinary Income
Net Income(Millions of Yen)FY2019FY2020Change%101,406
27,89760,79523,041
11,586
224,727
9,118
2,919
5,716
(2,049)(1,057)
14,647
12,956
8,378

99,447
27,12160,875
13,687
7,815
208,946
6,436
3,026
4,150
(3,759)(1,654)
8,200
5,053
2,274

(1,958)(776)
80(9,353)(3,771)(15,780)(2,681)107(1,565)(1,709)(597)(6,446)(7,902)(6,103)

(1.9)
(2.8)
0.1
(40.6)(32.5)(7.0)(29.4)
3.7(27.4)－－(44.0)(61.0)(72.8)※In fiscal 2020, Domestic Education was renamed the Education Business in Japan.

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

Education Business in JapanNet Sales

Global Kodomo Challenge

Shinkenzemi : increase in cumulative enrollment

4.3

School & Teacher Support business : impact of temporary school closures due to COVID-19, etc(3.5)

Cram schools / English education : impact of the voluntary halt of business over COVID-19, etc(2.7)

Japan : Impact of concerts cancellation / increase in cumulative enrollment , etc(0.2)

Overseas : impact of concerts cancellation and the price revision for correspondence course in China, etc

(0.0)
(0.5)

Forex rate impact

Nursing Care and Childcare

Increase in the Childcare business / decrease in the No. of new residents for the rooms with down payment, etc

0.0Berlitz

BTS : temporary language center closures due to COVID-19 / impact of franchising conversion in Spain and Belgium, etc /liquidation of business in France, etc
ELS : Impact of the halt marketing due to university campus closures in the USA(8.7)

Forex rate impact(0.6)

No sales contribution from Simul International, Inc, due to its sell-off, etc. *(3.0)

Impact of hotel closures in the Naoshima business due to COVID-19, etc(0.7)

Shinkenzemi : due to higher sales, etc

2.2

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

Japan : due to lower sales in the concerts business, etc(0.5)

Overseas : decrease in marketing costs / Forex rate impact [-0.1], etc

0.6

Nursing Care and Childcare

Improve wages for staff / higher labor costs as increase in the No. of nursing homes, etc(1.5)

Berlitz

Due to lower sales / lower cost, etc(1.7)

Others/Reconciliations

Due to lower sales, etc(0.5)

Others

Education Business in Japan

Operating Income

Global Kodomo Challenge*The Company transferred all shares of Simul International, Inc, to TAKARA & COMPANY LTD. as of March 31, 20203FY2020 Forecast(Millions of Yen)FY2020FY2019Net Sales

Change(Forecast)%

448,577

426,000 (22,577)(5.0)

Operating Income

21,2669,300 (11,966)(56.3)

Operating Income ratio（%）

4.7

Ordinary Income

16,759Net Income

6,2890(6,289)

ーExchange Rate(USD/JPY)

109.37108.00(1.37)

ー2.2

4(2.5)

ー

4,500 (12,259)(73.2)

FY2020 Forecast by Segment(Millions of Yen)FY2020FY2019
Education Business in Japan
Global Kodomo Challenge
Nursing Care and Childcare
Berlitz
OthersTotal Net Sales
Education Business in JapanGlobal Kodomo Challenge
Nursing Care and Childcare
Berlitz
Others/Reconciliations
Total Operating Income(Forecast)

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

5

203,200
55,500124,200
26,90016,200426,000
10,1001,400
9,000(6,800)(4,400)9,300

Change%2,807(1,055)
1,332(18,120)(7,539)(22,577)(3,942)(1,254)(2,374)(3,648)(748)(11,966)

1.4
(1.9)
1.1
(40.2)(31.8)(5.0)(28.1)(47.2)(20.9)ーー(56.3)

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

Education Business in JapanNet Sales

Global Kodomo Challenge

Shinkenzemi : increase in cumulative enrollment

8.3

School & Teacher Support business : impact of temporary school closures due to COVID-19, etc(3.2)

Cram schools / English education : impact of the voluntary halt of business over COVID-19, etc(2.3)

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

0.1

Overseas : Impact of concerts cancellation in China, etc

(0.4)
(0.7)

Forex rate impact

Nursing Care and Childcare

Increase in nursing home residents and Childcare business, etc

Berlitz

BTS : temporary language center closures due to COVID-19 / impact of franchising conversion in Spain and Belgium, etc /liquidation of business in France, etc
ELS : Impact of the halt marketing due to University campus closures in USA

1.3(17.5)

Forex rate impact(0.6)

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

(6.2)

Impact of hotel closures in the Naoshima business due to COVID-19, etc(1.3)

Shinkenzemi : due to higher sales, etc

5.4

Due to lower sales in the School & Teacher Support business; Cram schools and English education business, etc(9.3)

Japan : due to higher sales in the correspondence course / due to lower sales in the concerts business, etc(0.0)

Overseas : due to lower sales / strategic investment / Forex rate impact [-0.1](1.2)

Nursing Care and Childcare

Due to higher sales / improve wages for staff / higher labor costs as increase in the No. of nursing homes, etc(2.3)

Berlitz

Due to lower sales / lower cost, etc(3.6)

Others/Reconciliations

Due to lower sales, etc(0.7)

Others

Education Business in Japan

Operating Income

Global Kodomo Challenge

6EducationBusinessin Japan

Breakdown of Net Sales

Six months ended September 30(Millions of Yen)FY2019FY2020Change%Ratio(%)

Senior High School

6,714

7,073

359

5.3

7.1

Junior High School

14,285

14,933

647

4.5

15.0

Elementary School

28,791

32,102

3,310

11.5

32.3

27,46623,885(3,581)(13.0)

24.0

Other

24,14721,452(2,695)(11.2)

21.6

Total

101,406

99,447(1,958)

(1.9)

100.0

School & Teacher
Support7Global
KodomoChallenge

Breakdown of Net Sales

Six months ended September 30(Millions of Yen)FY2019
Kodomo Challenge

FY2020Change%Ratio(%)

9,064

9,687

622

6.9

35.7

13,36013,446

85

0.6

49.6

Other

5,471

3,987

(1,484)(27.1)

14.7

Total

27,897

27,121(776)

(2.8)

100.0

in Japan (Preschool)
Overseas Kodomo
Challenge (Preschool)8

Education
Business (Japan)
Global
Kodomo Challenge

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

Six months ended September 30

FY2019FY2020Change%Senior High School

780778(2)(0.3)

Junior High School

2,260

2,340

79

3.5

Elementary School

7,049

7,704

655

9.3

10,08910,822733

7.3

Total

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

Change%Kodomo Challenge in Japan (Preschool)

4,599

4,799

199

4.3

Overseas Kodomo Challenge (Preschool)

7,458

7,214(244)(3.3)

12,05812,013(44)

(0.4)

Total

•Note1: Cumulative enrollment represents the cumulative total No. of people who receive materials monthly (from April to September).
•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 June), due tothe differences of those closing dates ended December 31 st.

9

Education
Business (Japan)
Global
Kodomo Challenge

Enrollment for Shinkenzemi and Kodomo Challenge as of October (Japan)(Thousands)

As of October

20192020

Change%Senior High School

110

110

01.6

Junior High School

330

360

306.5

Elementary School

1,120

1,240120

11.2

790

830

40

5.4

2,350

2,540

190

8.1

Kodomo Challenge (Preschool)
Total (Japan)

10GlobalKodomoChallenge

Enrollment for Kodomo Challenge as of October (Overseas)

As of October

China
TaiwanTotal (Overseas)(Thousands)

2019

2020

1,140

1,100(40)

(3.6)

90100

10

5.8

1,230

1,200(30)

(2.9)

11

Change%Nursing Careand Childcare

No. of Nursing Homes and Elderly Houses

Sep. 2019

March 2020

Sep. 2020

Aria242424

Clara

40

4040

143

146147Madoka

575757

Bon Sejour

464749Cocochi

141415

Li-Re222

Total

326

330

334

Occupancy Rate of

95%

95%

93%

Granny & Granda

Existing Facilities

12Berlitz

Berlitz No. of Lessons by Region (Berlitz operated)
Six months ended June 30(Thousands of Lessons)

2020

2019%

Americas557

479(13.9)

Europe1,370

743(45.7)

Asia

800

526(34.3)

Total

2,728

1,749

(35.9)

Nine months ended September 30 (Preliminary figures) (Thousands of Lessons)

2019

2020

%

Americas846

724(14.4)

Europe

1,981

1,080(45.5)

Asia1,216809(33.5)

Total

4,044

2,614(35.4)•Note:The No. of lessons in Europe in 1H has decreased by 626 thousands YoY. This decrease includes a reduction of the No. of lessons （344 thousands）
due to franchising conversion and liquidation of business.
The No. of lessons in Europe in 9 months ended Sep.30 （preliminary figures）has decreased by 900 thousands YoY. This decrease includes a reductionof the No. of lessons （495 thousands） due to franchising conversion and liquidation of business.

13Berlitz

Berlitz No. of Locations by Region
As of June 30, 2020
Berlitz

Berlitz

ELSELS

OperatedFranchiseOperatedFranchise

Americas48(-8)

53(5)32(-3)1(0)134(-6)

Europe83 (-16)106(26)

0(0)

3(0)

192(10)Asia68(0)

11(0)

1(0)

3(0)

83(0)

（Japan）

56(0)

4(0)

0(0)

0(0)

60(0)

199 (-24)

170(31)33(-3)7(0)409(4)

Total

Note: Figures in parentheses indicate change from Dec. 31, 2019.

14

Total

CAPEX／Depreciation and Amortization(Millions of Yen)

Six months ended September 30

CAPEX(Details) Lease AssetsFY2019

FY202012,24313,067823

6,604

5,222(1,381)

0

1,408

1,408

5,639

6,436

797

9,886

9,257(628)Goodwill
OthersDepreciation and Amortization

15

Change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

76.6-16