to support people in their everyday lives and to continue
to be an indispensable group of companies.
- Representative Director and
- Representative Director and
In FY2020 we recorded net sales of ¥427.5 billion, operating income of ¥13.0 billion, and net income attributable to owners of the parent of ¥3.1 billion. Net sales and operating income declined year-on-year for the first time in four years and net income attributable to owners of the parent for the first time in two years.
The main factors for this downturn in earnings were the temporary closure of language centers in the Berlitz business, the effects of the closure of schools on the School and Teacher Support business, and temporary restraint on marketing activities in the Cram Schools and English Education Business. All of these negative factors owed to the impact of the COVID-19 pandemic. They outweighed the positive development of increase in cumulative enrollments in the Shinkenzemi business and the Kodomo Challenge business in Japan, which resulted from acceleration in content digitalization in recent years positioning the Group to meet increased home learnings needs amid the temporary closure of kindergartens and schools.
Despite the current steady recovery in the Cram Schools business and School and Teacher Support business, we see rebuilding earnings and responding to changes in the business environment as urgent issues for the Benesse Group as a whole.
Start of a new management structure for FY2021
Against this backdrop, the Company inaugurated a new management structure from April 1, 2021. Representative Director and President, CEO Tamotsu Adachi took on the new position of Representative Director and Chairman, CEO, while Representative Director and Executive Vice President, COO Hitoshi Kobayashi became Representative Director and President, COO. These changes were made with the objectives of speeding up business reform in response to major changes in the business environment and further expanding Group synergies.
Pursuing a new medium-term management plan in order to create a V-shaped recovery and further growth
Under this new management structure, in FY2021 the Group has begun implementing the five-year medium-term management plan it announced in November 2020, “Evolve core businesses and Expand into New Fields.” With an eye on societal conditions in 2030, the new plan is a response to deepening of the structural issues facing Japanese society of a falling birthrate, graying of society, and shortage of labor. As one of Japan’s leading education and nursing care companies, Benesse understands it will have an even greater social responsibility to contribute to solving these issues through its education and nursing care operations.
The first phase of the management plan targets a V-shaped earnings recovery by rebuilding net sales and operating income to above FY2019 levels via swift rebound in existing businesses by FY2022. In the medium term, the plan will involve proactive expansion into new fields where the Group can leverage its strengths in a bid to help tackle global education and nursing care issues.
Pursuing our corporate philosophy of “Benesse = well-being” to find a resolution to societal issues
Amid the current unprecedented conditions, many people have a sense of unease and continue to have to live under constraints.
By contributing to the sustainability of society and pursuing its corporate philosophy of “Benesse = well-being,” Benesse aims to fulfill its mission of being an indispensable group of companies that helps to improve people’s lives.
Representative Director and Chairman, CEO
Representative Director and President, COO