By adopting a holding company structure, Benesse has taken the first step into a new era in which it aims to pursue growth opportunities in five business domains

In October 2009 the Benesse Group adopted a holding company structure. This new business structure will facilitate the efforts of every subsidiary in the Benesse Group to pursue growth independently, in one of the five business domains that we have identified as central to group operations.

The Education Business, Benesse Corporation's mainstay focus, will continue to be a central pillar in the Group's operations. In addition, we are gradually expanding the branches of the group in numerous business sectors which promise future growth. By clearly identifying the domains that Group companies should target, as well as the intended objectives, Benesse has been able to transfer the major portion of authority and responsibility for meeting these goals to each individual Group company, and thus accelerate the pace of growth. We believe that this structure will be the most productive from the standpoint of fuelling growth over the next decade.

Just a few months after adopting the new Group structure, the benefits of this change began to appear. There was a visible acceleration in the speed of decision-making on a variety of issues, and communication among Group companies increased, as members of the Group exchanged knowhow and successful experiences.

The holding company has adopted a "4G" slogan, to identify the issues which are our primary focus: Growth, Group, Global and Governance. As each of the 38 Benesse Group subsidiaries works to sharpen their individual skills and strengths, Benesse Holdings will strive to promote cooperation and synergy, building the foundation for a stage of growth that will surpass all that we have accomplished in the past.

"Growth is Global" – Building a "Benesse" tailored to each market

The word "Global" is one of the four "Gs" adopted as Benesse's new slogan, and it is one of the most important issues that we are currently addressing. Benesse aims to build the largest educational business on the planet, so that it may reach and benefit children not only in Japan, but in countries around the world. This is not solely an altruistic goal; it is also a practical reality that the company must face. If Benesse does not expand the geographical boundaries of its business, further growth will soon be impossible.

As Benesse develops education businesses in overseas countries, we must always remember that the underlying goal is to help people "live well." When the company launched correspondence courses for preschool children in China, in 2006, nearly all of the texts and learning materials used in the courses were unique products, developed locally, with local needs in mind. Although the desire of parents to see their children grow and mature is universal, the concept of growth will differ from country to country. Naturally, the products and services that an education company provides must also be tailored to the needs of local children. In short, Benesse is not trying to export its education business to other countries – only the underlying concept, and the desire to educate young people. Each new overseas business that the company establishes will need to grow in the local soil, and cultivate the local concept of "well-being."

Benesse's approach to CSR activities has the same emphasis on localization. The underlying concept of Benesse's CSR activities is to "put the customer first, and through its business activities, help each customer to address the issues and challenges of their own society." The products and services that Benesse offers are all intended to help individuals to "live well." But in addition to contributing to the well-being of customers, Benesse generates profits, creates jobs and pays taxes which benefit local communities in an indirect fashion. In short, Benesse's business operations and its CSR activities are one and the same.

Addressing social issues in order to help people "live well"

Effective and transparent management are essential if Benesse hopes to fulfill the high ideals of its corporate philosophy. Not only must the company strictly observe all laws and regulations in the countries where it operates; it also must provide full disclosure, and employ constant self-inspection to ensure that these ideals are met. People are the source of all products and services, and thus people are an essential part of Benesse's operations. For example, in the Senior & Nursing Care domain, personal contact and communication are an integral part of ensuring that customers enjoy a high quality of life. Similarly, our Language & Global Leadership Training domain addresses the current issue of globalization, by training highly motivated individuals who can function effectively on an international stage.

The trend toward globalization has also contributed to the increasing individuality and self-reliance of local communities. An increasing number of towns and cities are striving to develop a local infrastructure that will allow citizens to "live well." Benesse is working to support these efforts to revitalize local areas, and to stimulate their educational, cultural and artistic development. Naturally, we also need to consider the environmental burden of our activities.

During fiscal 2009, Benesse participated in the United Nations Global Compact, which establishes a set of standards which business corporations are asked to observe. Though there is no compulsory aspect to the compact, and no penalty for failure to meet the standards, the compact expresses a company's ideals and intentions. This is essentially the same thing as Benesse's "live well" motto, and the Company's abiding commitment to help people improve their quality of life. By encouraging employees to reflect on their own work, and consider whether they are "helping customers to live well" through their daily work activities, this promotes high standards of behavior and contributes greater value to society. The Benesse Group will continue to concentrate its resources on activities that help people around the world to enjoy a high quality of life, from the cradle to the their golden years. In doing so, we believe that we are also enhancing Benesse's corporate value.