1Q Results for FY2019
Supplementary Materials

August 2, 2019
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)

Three months ended June 30

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

FY2018FY201945,452
12,55728,193
11,962
5,752
103,918(2,743)937
1,795(1,342)(917)(2,270)(2,913)(3,357)

48,742
13,16830,141
11,1905,609
108,851(1,259)684
2,705(1,334)(644)
150(469)(1,597)

2

Change3,289
610
1,948(772)
(142)
4,933
1,483
(252)
909
7273
2,421
2,444
1,759%

7.2
4.9
6.9
(6.5)
(2.5)
4.7
－
(27.0)
50.7－－－－－

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

Domestic Education

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

Net Sales

Japan : Impact of the price revision and higher enrollment, etc

Global Kodomo Challenge

Overseas :Due to change of the tax benefit and impact of the price revision in china
Foreign exchange rate impact

Nursing Care and Childcare
Berlitz

Increase in nursing home residents, etc
Due to lower sales of ELS and Impact of transition of centers to franchised owners in Nordic area in BTS, etc

Foreign exchange rate impact

Operating Income

Domestic Education

Shinkenzemi
Due to higher sales of School & Teacher Support and Cram schools / increase investment regarding the Education Reform

Global Kodomo Challenge

Japan : Increase in marketing costs, etc
Overseas : Impact of the price revision and change of the tax benefit in china / Reinforce sales promotion, etc

Nursing Care and Childcare

Due to higher sales, etc

Berlitz

Due to lower sales / Lower costs by restructuring effect, etc*The company converted Classi Corp. and EDUCOM Corp. into a consolidated subsidiary as of January 8, 2019.

3

1.3
1.2
0.7
0.3
0.5
(0.2)
1.9
(0.4)
(0.3)
1.2
0.2
(0.2)
0.0
0.9
0.0

FY2019 Forecast
Forecast announced on May 10, 2019 has not been changed.

FY2018Net Sales

FY2019(Forecast)(Millions of Yen)

Change%439,431459,000

19,569

4.5

Operating Income

16,24520,000

3,755

23.1

Operating Income ratio（%）

3.7

4.4

0.7

ー

Ordinary Income

12,15016,000

3,850

31.7

Net Income

4,902

9,500

4,598

93.8

Exchange Rate(USD/JPY)

110.57110.00(0.57)

ー4FY2019 Forecast by Segment
Forecast announced on May 10, 2019 has not been changed.

FY2019FY2018Domestic 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(Forecast)

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

5

204,300
58,700121,800
49,40024,800459,000
14,3003,500
10,400(3,300)(4,900)20,000(Millions of Yen)

Change%12,236
2,257
4,801
125
153
19,569
4,245
242
(996)
1,448
(1,185)
3,755

6.4
4.0
4.1
0.3
0.6
4.5
42.2
7.4
(8.7)
ーー
23.1

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

Domestic Education

School & Teacher Support / Consolidates Classi Corp. and EDUCOM Corp.
Cram schools / English education, etcNet Sales

Japan : Higher enrollment / Peripheral, etc

Global Kodomo Challenge

Overseas : impact of the price revision in china / higher enrollment, etc
Foreign exchange rate impact

Nursing Care and ChildcareBerlitz

Increase in nursing home residents, etc
Higher No. of lessons, etc
Foreign exchange rate impact

Operating Income

Domestic Education

Shinkenzemi
Due to higher sales of School & Teacher Support and Cram schools / increase investment regarding the Education Reform

Global Kodomo Challenge

Japan : Due to higher sales
Overseas : Due to higher sales / foreign exchange rate impact (-0.1) / Reinforce sales promotion, etc

Nursing Care and Childcare

Due to higher sales / Increase in costs for staff, etc

Berlitz

Due to higer sales / Lower costs by restructuring effect / foreign exchange rate impact(+0.1), etc

Others/Reconcilliations

Investment in growth, etc

6

5.3
3.5
3.4
1.5
1.7
(1.0)
4.8
0.3(0.2)
4.2
0.0
0.4(0.2)
(0.9)
1.4
(1.1)

Domestic
Education

Breakdown of Net Sales

Three months ended June 30(Millions of Yen)FY2018FY2019Change%Ratio(%)

Senior High School

3,759

3,635(124)

(3.3)

7.5

Junior High School

6,915

7,404

488

7.1

15.2

Elementary School

13,066

14,591

1,525

11.7

29.9

11,362

11,491

129

1.1

23.6

Other

10,348

11,619

1,270

12.3

23.8

Total

45,452

48,742

3,289

7.2

100.0

School & Teacher
Support7Global
KodomoChallenge

Breakdown of Net Sales

Three months ended June 30(Millions of Yen)FY2018Domestic Kodomo

FY2019Change%Ratio(%)

4,324

4,530

206

4.8

34.4

6,082

6,395

313

5.2

48.6

Other

2,150

2,241

90

4.2

17.0

Total

12,557

13,168

610

4.9

100.0

Challenge (Preschool)
Overseas Kodomo
Challenge (Preschool)8

Domestic
Education
GlobalKodomo Challenge

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

Three months ended June 30

FY2018FY2019Change%Senior High School

445422(23)(5.2)

Junior High School

1,200

1,175(25)(2.1)

Elementary School

3,480

3,588

108

3.1

5,126

5,186

59

1.2

Total

【Cumulative Enrollment for Kodomo Challenge (Preschool)】
FY2018FY2019(Thousands）

Change%Domestic Kodomo Challenge (Preschool)

2,259

2,268

80.4

Overseas Kodomo Challenge (Preschool)

3,710

3,729

190.5

Total

5,970

5,997

27

0.5

Note: Cumulative enrollment represents the cumulative total No. of people who receive materials monthly (from April to June).Cumulative enrollment for Kodomo
Challenge in China and Indonesia represents the cumulative total No. of people who receive materials monthly (from January to March) , due to the difference of its
closing date ended December 31st.

9Nursing Careand Childcare

No. of Nursing Homes and Elderly Houses

June. 2018

March. 2019

June. 2019

Aria

232424Clara414040134

140141

Madoka575757

Bon Sejour

454546

Cocochi

141414

Li-Re222

Total

316

322324

Occupancy Rate of94%

96%

95%

Granny & Granda

Existing Facilities

10Berlitz

Berlitz No. of Lessons by Region (Berlitz operated)

Three months ended March 31(Thousands of Lessons)

2018

2019%

Americas309

262(15.2)

Europe726

699

(3.7)

Asia

384

388

0.9

Total

1,420

1,350(5.0)

Six months ended June 30 (Preliminary figures)

2018(Thousands of Lessons)

2019%

Americas659557(15.5)

Europe1,474

1,370(7.1)

Asia

798

800

0.3

Total

2,932

2,728(7.0)

11