TOP > Investor Relations > Business Data > Education Group

PrintingJapanese

Last updated : 2009/10/01

Education Group

Main Business

Benesse Corporation


Shinkenzemi, Kodomo Challenge

[Correspondence courses]


Shinken simulated Exams

[Support for schools and teachers]


BE-GO, Benesse English Classes for Children

[English education materials and classes]


Tokyo Individualized Educational Institute, Inc.

[Prep school]


Kodomo Challenge Tokyo Individualized Educational Institute, Inc. Shinken simulated Exams
Shinkenzemi Junior High School Courses

Review of Fiscal 2008 Results

Consolidated net sales in the Education Group were ¥244.5 billion, up 10.3% year on year.

The higher net sales reflect a 487 thounsand people year-on-year increase in cumulative enrollment in Benesse's mainstay Shinkenzemi and Kodomo Challenge correspondence courses, to 43,900 thounsand students. There was a 60,000 person increase in the number of enrollees in these correspondence courses at the start of the fiscal year from the 3.96 million students enrolled in April 2008, and numbers increased steadily throughout the year. In addition, the Company raised prices for the Shinkenzemi and Kodomo Challenge courses. The overall Education Group sales increase also reflects the first full year of sales from Tokyo Individualized Educational Institute, Inc., which became a subsidiary in June 2007; only nine months' sales from this company were included in consolidated operating results in the previous fiscal year.

In the Shinkenzemi business, Benesse launched Shinkenzemi Junior High School Course +i for first-year junior high school students in 2008 and then for second-year junior high school students in 2009. This course combines internet-based learning with traditional teaching materials, mainly paper based. The Company also continued to strengthen marketing activities during the past fiscal year. In Kodomo Challenge, in particular, the Company developed business alliances with other companies, including Procter & Gamble Japan K.K. (P&G), at the same time as focusing on expanding contact with customers through nursery schools, pre-schools, obstetricians and gynecologists and in other areas. Due to these products and services and stronger marketing, the number of enrollees in Japan in April 2009 was 4040 thousands, an increase of 80 thousands on April 2008. Courses for elementary school students, in particular, set a new enrollment record.

Overseas, in April 2009, the number of enrollees in preschool courses was 150,000 and 120,000 in China and South Korea, respectively, representing year-on-year increases of 50,000 members in each country, as membership bases continued to expand steadily. Benesse has been conducting preschool courses in China and South Korea since 2006.

In business aimed at schools, the Company steadily grew sales volumes of core products for high schools, namely Shinken Simulated Exams and Study Support courses, even amid a declining number of children in Japan. Sales increased steadily in monetary terms as a result, reaching an all-time high.

Operating income for fiscal 2008 was ¥40.0 billion, up 23.1% year-on-year, due mainly to higher cumulative enrollment and price revisions in correspondence courses.

Net Sales / Operating Income (Years ended March 31)

Net Sales / Operating Income

(Billion yen)
Net Sales 2005 2006 2007 2008 2009 Change
Senior High School Courses

21.8

24.3

26.6

25.6

27.7

8.0%

Junior High School Courses

37.9

41.9

42.0

40.8

44.0

7.9%

Elementary School Courses

53.3

58.0

60.0

60.6

68.8

13.5%

Preschool Courses (Kodomo Challenge)

25.4

24.6

24.5

24.8

26.8

8.3%

School & Teacher Support Company

29.9

31.6

34.3

35.1

36.3

3.4%

Others

14.8

18.0

21.2

34.5

40.6

17.5%

Total

183.4

198.6

208.8

221.7

244.5

10.3%

Note.Net Sales by segment do not include internal sales.

Total Shinkenzemi Enrollment (Years ended March 31)

Total Shinkenzemi Enrollment

(Thousands of People)
2005 2006 2007 2008 2009 Change
Senior High School Courses

3,065

3,232

3,289

3,060

3,279

7.1%

Junior High School Courses

7,600

8,376

8,315

7,903

7,967

0.8%

Elementary School Courses

16,205

17,623

17,862

17,733

18,395

3.7%

Preschool Courses (Kodomo Challenge)

16,432

15,712

15,216

14,716

14,257

(3.1%)

Total

43,304

44,945

44,683

43,413

43,900

1.1%

Note.Total enrollment represents the cumulative total number of people who receive materials monthly (from April to March)

Shinkenzemi's Fee Structure

Various payment methods are available, with progressively larger discounts for lump-sum payments made in advance. In the case of early withdrawal, refunds are made for courses that have not been completed.

Senior High School Courses Three payment methods:
Monthly payment, Half-yearly lump-sum payment, Yearly lump-sum payment
Junior High School Courses
Elementary School Courses
Preschool Courses
(Kodomo Challenge)
Three payment methods:
Monthly payment, Yearly lump-sum payment, Lump-sum payment before entering elementary school.

Average Monthly Tuition by Course (Year ended March 2009)

Senior High School Courses ¥8,464
Junior High School Courses ¥5,530
Elementary School Courses ¥3,742
Preschool Courses
(Kodomo Challenge)
¥1,885

Percentage of School Customers to Total Schools in Japan (Year ended March 31, 2009)

Customers Total Schools in Japan Percentage
Elementary and Junior High Schools

8,967

33,391

26.9%

Senior High Schools

4,317

5,241

82.3%

Number of Students Taking Shinken Simulated Exams and Other Exams (Years ended March 31)

Number of Students Taking Shinken Simulated Exams and Other Exams

(Thousands of People)
2005 2006 2007 2008 2009

5,860

6,050

6,180

6,360

6,650