Message from the Outside Director

Having more in-depth discussions from diverse perspectives and supporting challenges for further growth

Mutsuo Iwai

Outside Director, Chair of the Nomination and
Compensation Committee

Taking the time to have more in-depth discussions at the Board of Directors, even amidst the COVID-19 pandemic

Although there were constraints on the Board of Directors in fiscal 2021 due to the COVID-19 pandemic, I appreciate that we were able to leverage the expertise and experience of each Director and take the time to have multifaceted discussions. Among those discussions, our exit from the Berlitz business was one of the major issues on the agenda. In particular, the specific details of negotiations were reported, and the process has been closely monitored. Similarly, we have been monitoring the progress of the Medium-Term Management Plan to achieve the goal of a V-shaped recovery in two years. In addition, we have been discussing initiatives in each business area from a variety of perspectives, including not only the current situation but also the future potential of the business.
Of those discussions, I place importance on checking the management situations of companies that were added to the Group through M&A. How do we position, integrate and grow each business company as part of the major brand Benesse? Since this matter also relates to investment efficiency, I am actively speaking up at board meetings in order to have more in-depth discussions.

The essential point of a succession plan is consensus building through internal discussions

I was appointed to serve as the Chair of the Nomination and Compensation Committee beginning in July 2022, and I recognize that the succession plan is the biggest function of said Committee.
In my opinion, in formulating a succession plan, it is important to first develop and assess a successor from within the company, and form a consensus that this person will be responsible for the next generation. After doing so, it is key that someone from outside the company makes a judgment about whether or not the plan is appropriate from a larger perspective, which I call "endorsement."
Leading up to this point, the Nomination and Compensation Committee had already been holding discussions and deliberations from a broad perspective. However, I recognize that developing a process to obtain an internal consensus within the company and providing information on factors such as the status of the Executive Officer pipeline —which will serve to bolster our decisions—are issues that need to be addressed to promote more ideal discussions.

Challenges are precisely what lead to the growth of the Group

When I communicate with shareholders and investors in my activities as an Outside Director, I sometimes feel as though they do not fully understand the current circumstances of the Group and the direction it is heading. For example, there are many voices expressing concern about the decline in Shinkenzemi membership numbers. However, the Group is promoting a strategy with an eye towards the future, in conjunction with accelerating DX in all businesses, not just the Shinkenzemi business. In addition, each business is pursuing the principle of "well-being," and working to offer new value to customers and society. I believe it is also necessary to properly convey to stakeholders through communication activities, using indicators of Benesse’s future social value, that Benesse encourages people of all generations to have the desire for "well-being," and that it is a corporate Group that can expect continued growth.
The greatest asset of a company is its human resources. Benesse has a deep-rooted culture of treasuring human resources and using them to the fullest, and each and every one of its employees is continuing to take on new challenges. It is my understanding that the growth of the Group to date has been achieved through the efforts of those employees. Challenges are what will lead to the future growth of the Group. Making the final decisions on risk-taking is the role of the Board of Directors, and in my capacity as the Outside Director, I would like to continue observing and providing support for such efforts.