IR News｜Results

 Okayama, Japan, May 16, 2003 - Benesse Corporation today announced consolidated financial results for the fiscal year ended March 31, 2003 (FY2002). The company's sales fell to 258,289 million yen, down 3.4% from one year earlier. The sales decline was primarily attributable to a decrease in sales at the Education Group, which reflected a drop in enrollment for its mainstay Shinkenzemi home study correspondence courses. In addition, Berlitz International, Inc., a wholly owned subsidiary, reported weaker sales and financial results, affected by a global economic slowdown and the sale of its translation service unit.

Consolidated operating income declined 33.6% from the previous fiscal year to 16,317 million yen mainly because of decreased profit reflecting weaker sales at the Education Group and increased investments for new business startups at the Women & Family Company, a business unit focused on publishing and developing products for women and families. The drop in income comes despite increased revenues at the Senior Company, a nursing care business unit. Ordinary income fell 39.1% from the period of one year earlier to 16,024 million yen.

Consolidated net income, on the other hand, jumped to 6,972 million yen, an increase of 6,646 million yen from a year earlier, mostly due to a one-time gain in special profit of 3,150 million yen, which reflects an exemption* from the obligation to pay for future employee benefits (the so-called substitutional portion of the Employees' Pension Fund). Decreased special loss from the previous fiscal year's results, which included the impairment of the goodwill of Berlitz International Inc., also contributed to the substantial increase in net income.


* Pursuant to the enactment of the new law concerning defined benefit corporate pension plans in Japan, Benesse obtained approval from Japan's Ministry of Health, Labor and Welfare for an exemption from future benefit obligation regarding the proxy portion of employees' pension fund on March 14, 2003.