The Benesse Group does have a very unconventional structure and management style, with three representative directors and one vice-chairman and director. However, we believe that this structure has allowed each of us to draw upon our own strengths and experiences. For example, Chairman Fukutake is the one who charts the overall direction and management policy for the Group, over the medium and long terms, and he has the direct responsibility for ensuring that we meet the numerical targets of our business plans. Meanwhile, Vice-Chairman Fukuhara draws upon his specialized knowledge of financial markets, his experiences living and working in other countries, his extensive network of personal connections, and the management experience he gained as president of Benesse Style Care Co., Ltd., to coordinate the activities of all Benesse Group subsidiaries. Vice-Chairman Uchinaga has formerly served as an outside director for Benesse, as well as former Director and General Manager of IBM Japan. Her extensive experience in the rapidly changing IT sector, as well as her ability to function effectively on the global stage, serves her well in her role as the head of Berlitz International, a core subsidiary in the Benesse Group. As for myself, I oversee the operations of the parent company's core education business, based on my years of experience at Benesse in activities ranging from marketing strategy to the development of educational materials.

Our medium-term earnings targets call for the Group to generate ¥430.0 billion in sales for fiscal 2010, with an operating income of ¥43.0 billion. We are making good progress in terms of broadening the Group's existing operations, as well as developing and commercializing new products and services. In the education business, for example, we have combined our traditional paper-based correspondence courses with the functions and capabilities of the internet to create “Shinkenzemi Junior High School Course + i,” which was launched in March 2008. We are also expanding into areas of education beyond the core correspondence course business, and are working to expand cram school operations and make them a second pillar of earnings. Benesse also has begun marketing educational software packages for the Nintendo DS video game platform. Major Group subsidiaries such as Berlitz are developing into the next major source of growth for Benesse, as we seek to tap demand in new regions, and in the market for corporate language instruction. To minimize the possible risk to our nursing care business, due to changes in Japan's long-term care insurance system, we are focusing on achieving and maintaining the highest levels of service possible. Finally, we are restructuring the AVIVA business in an effort to return it to profitability.

Tamotsu Fukushima, Representative Director, President and COO

We intend to concentrate on three main themes which offer opportunities for growth. First, we plan to expand our overseas operations in the education business, focusing in particular on courses for young children in East Asia. We have already made some advances in Taiwan, China and Korea; by leveraging this experience, we aim to expand this business further. A second theme for Benesse is the development of English language and international training operations. Beginning in 2011, Japan will introduce English tuition at the elementary school level. This is just the start of the changes that we anticipate in education markets. Benesse already operates a very diverse English language instruction business, which includes our consolidated subsidiary Berlitz International – the largest language school operator in the world. Using the accumulated know-how of the Benesse Group, we intend to expand operations to include not merely English language instruction but also international training courses to give individuals the skills needed to perform effectively on the global stage. The third theme involves the effort to extend education businesses into the university and adult education markets, thereby building our reputation as an education company.
The creation of an internal company infrastructure for these new businesses will include efforts to develop entirely new markets. Therefore, we intend to strengthen and broaden our direct marketing capabilities. As we try to streamline our organization, it will also be necessary to improve productivity, partly by refining and revising work processes, and by taking steps to further train our employees, introduce improved personnel systems, and systems of compliance and internal control. Benesse has always placed great emphasis on reliable product quality, and we intend to continue working to make products and services even better. Benesse management has identified environmental issues as a priority which we intend to address by constantly seeking ways to reduce our own environmental impact, as well as by promoting environmental education in an effort to influence people in the regions where we operate, and society in general.