The name of our company – “Benesse” – means “to live well.” This concept is the foundation for our corporate philosophy, which aims to help people live a rewarding life by supporting their efforts to improve themselves and resolve their problems through business activities that include childhood education, language instruction, and businesses related to lifestyle and social welfare. Through our core business activities, we constantly strive to convey our dedication to “living well,” by providing services that we desire for ourselves and our own families, by supporting the efforts of young and old alike to improve themselves from childbirth to old age, and by providing services that help people make their lives happier and more rewarding with each passing year. By adhering constantly to these messages, Benesse seeks to justify the loyalty of all company stakeholders, and strives to become an integral part of society and the communities in which we do business, both now and in the future.
Since the Company was founded in 1955, Benesse has adhered to a management philosophy that seeks to operate from cash flow, without the need for credit, avoids any in-house inventories, and seeks to provide comprehensive, ongoing services and support, rather than just selling each individual product separately. These management themes arose from the difficult experiences of the Company founder, who suffered the hard lessons of bankruptcy before finally achieving success, and they form the unique business model which underlies the Benesse Group's continuing development. In order to perpetuate the Company's growth, we will continue to pursue business activities which fully incorporate Benesse's corporate philosophy, mission and message to customers, while always seeking outstanding new business models that are responsive to the changing times.

I believe that all a company's activities, and the actions of all its people, should be directed at creating better living environments in the communities where the company operates. In Benesse's case, for example, we have been working for 20 years to develop the island of Naoshima in the Seto Inland Sea, creating what today is known as the “Benesse Art Site Naoshima.” These activities have helped to design a venue that exhibits modern art in a setting of traditional Japanese scenery, while simultaneously invigorating the aging population of the island. Previously, the island's population was dwindling, and the average age of the residents increasing, but today Naoshima is lively and overflowing with vitality, as the smiling faces of the island's residents attest. The population today is just about 3,400, but the island plays host to some 300,000 visitors a year, not only from other parts of Japan but from all over the world.
I want to ensure that as people in Japan get older, they have even more opportunities to enjoy life and take satisfaction from it. I want to find ways to spread art activities and the motivation that inspires such activities to all parts of Japan, so that Benesse can help bring smiles to the faces of the senior citizens in other communities too. The quality of life in any community is a reflection of whether it allows the people who live in the community to “live well” – and that, after all, is the very basis of Benesse's philosophy.
Thus, Benesse is striving to earn respect worldwide as a good corporate citizen, not only through its core business activities but also through the type of contribution to communities described above. I believe that these efforts will also serve to enhance the corporate value of the Benesse Group as a whole.

I expect that the business environment affecting the Benesse Group will continue to change, bringing new challenges to the organization. However, we will continue to hold firmly to our philosophy and build on our achievements thus far by being prompt in improving those areas that need reform. Thus, we will ensure that whatever the era and whatever the venue, Benesse can help its stakeholders to truly “live well.” I wish to thank all stakeholders once again for your continued support.