MANAGEMENT MESSAGE

FY2022 results

In FY2022 we recorded net sales of ¥411.8 billion, the first decrease in two years, and operating income of ¥20.6 billion, an increase for the second year in a row. Net income attributable to owners of the parent increased dramatically to ¥11.3 billion, compared to ¥1.0 billion in the previous fiscal year.

The main factors for the decrease in sales and increase in income were the elimination of sales and operating losses following the transfer of shares in Berlitz Corporation in the previous fiscal year, as well as the elimination of loss on sale of investment in a consolidated subsidiary from the transfer of shares in Berlitz Corporation which was recorded in the previous fiscal year.

On the other hand, we fell slightly short of our target for recovery in net sales and operating income to exceed FY2019 levels, which is the target of Phase 1 of our medium-term management plan.

Toward achieving sustainable income growth for the Benesse Group

Amid the rapidly changing business environment, we have announced our Group purpose: “Anybody can enjoy lifelong growth. Toward a world in which everyone can live their own life. Benesse will continue to aim for these ideals.” In order to achieve the purpose and aim for sustainable income growth in the Benesse Group, we formulated the "Transformation Business Plan" in May of this year. To achieve the plan, we will work to transform our portfolio structure, transforming our core business with a focus on the Education Business in Japan and investing in and shifting human resources into new growth areas such as university and working adult domains. At the same time, we will vigorously advance the plan by transforming our management system and corporate functions to enable speedier decision making.