Benesse Holdings FY2020 1Q FAQ
August 7, 2020

We have prepared answers to some of the questions we anticipate fromshareholders and investors regarding the announcement of FY2020 1Q
results. Please refer to them in conjunction with the supplementarymaterials.

1. What was the reason for the sharp 5.2 billion yen operating
loss in 1Q?
In the Domestic Education business, structurally speaking 1Q profits
are low due to the increase in production costs for educational
materials for the start of the new school year. This year, the novel
coronavirus (COVID-19) pandemic has had a significant impact, mainlyin the School & Teacher Support, Cram Schools/English Language
Education, and Nursing Care and Childcare businesses, resulting inlosses.
2. What is the outlook for 2Q?
It is highly likely that net sales and operating income will decline YoY
in 1H. However, since the 1Q operating loss was largely due tostructural factors, we expect the operating loss to narrow in 1H.
3. What is the situation for Shinkenzemi and the Kodomo
Challenge business in Japan?
April enrollment rose 3.3% YoY, a good start. 1Q cumulativeenrollment was even higher than April’s growth at +5.2% YoY thanks
to higher retention rates as usage rates improved, resulting incontinued strong growth.
4. What is the situation for the School & Teacher Support andCram Schools/English Language Education businesses?
1Q net sales and operating income fell sharply YoY following school
closures and a voluntary halt in cram schools and English language
classes due to COVID-19. Since the state of emergency was lifted,
there are signs of recovery.

5. What is the situation for the Kodomo Challenge business inChina?
The fiscal year-end for the business in China is December 31. COVID19 had a major impact on 1Q (January ~March), but the impact isexpected to weaken in 2Q (April ~June).
6. What is the situation for the Nursing Care and Childcare
business?
In 1Q (April~June) the reduction in marketing activities due to COVID19 had an impact, but from July marketing activities have been
resuming gradually.
7. What is the situation for the Berlitz business?
Berlitz Corporation’s fiscal year-end is December 31. COVID-19 had
limited impact on 1Q (January ~March) results. However, the impactof COVID-19 has been increasing since April, and the YoY decline in
net sales and operating income in 2Q (April~June) widened due to thesuspension of marketing activities following the temporary closure oflanguage centers in the Language Learning business and the closure of
University campuses in the US in the ELS business (Overseas StudySupport).
8. Please explain the decision not to release FY2020 earnings
forecasts
At this time, it is difficult to properly and reasonably calculate theimpact that COVID-19 will have on the full year. We are therefore notproviding guidance for FY2020. In the Domestic Education business,
Shinkenzemi is doing well. However, the process of trial and error in
the school environment continues, including shortening of the summer
vacation period for elementary, junior high and high schools, andscheduling for the second semester and beyond, and we cannot predict
the impact on the School & Teacher Support business and the Cram
Schools/English Language Education business.
In the Nursing Care and Childcare business, the top priority is
preventing the spread of infection from COVID-19 and it continues tobe difficult to plan marketing activities.

Moreover, a further spread of COVID-19 could mean a further
reduction in business activities in all our businesses.
9. Are there any changes to the dividend policy?
In anticipation of a recovery in business performance from FY2021, thecompany plans to maintain a dividend of ¥50 per share.

-end-