Home > Company Profile > Annual Report

The 55th Annual ReportApril 1, 2016 - March 31, 2017

1. Message from the President

The Kumon Group announced the NEXT 50 Grand Design on the occasion of our 50th anniversary in 2008. We declared that the Kumon Group will continue to contribute to society for the next 50 years by striving to meet the two challenges of Broadening and Deepening while making the development of each and every Center the core of our activities.

Presently, the Kumon Group is implementing its activities in accordance with the 2014-2018 Mid-term Corporate Plan. In recent years our efforts aimed at the circulation of knowledge throughout the Kumon Group have promoted the standardization and upgrading of various business operations including Center development. We are also working to further the globalization of the Kumon Group. Our foundation is the wide-ranging exchange of personnel across all of the countries and regions in which Kumon operates. By circulating the practical knowledge from within Japan and from overseas, as well as by circulating practical knowledge between overseas Kumon companies, we are proactively engaged in the process of the standardization and upgrading of our operations.

Below, see details of the 55th Annual Report.

In FY2016 the Japanese economy experienced a gradual recovery thanks to improvements in corporate earnings and the employment environment that were supported by governmental economic policies and the monetary easing policy of the Bank of Japan.

On the other hand, due to factors such as fears for an economic slowdown in emerging nations, the announcement by the UK government of plans to withdraw from the EU, and the result of the presidential election in the United States there has been some instability in financial markets including in the areas of foreign exchange rates and stock market valuations. For these reasons the global economic situation remained uncertain.

Despite these conditions the consolidated results for the Kumon Group show that sales were 90,500 million yen (previous fiscal year 90,000 million yen) and operating income amounted to 12,500 million yen (previous fiscal year 11,800 million yen) representing an increase in both sales and profit. The increase in operating income was primarily due to the increase in the number of subject enrollments in Japan.

The total number of subject enrollments in the Kumon Group at the end of the term showed growth and amounted to 4,354,000 (year-on-year increase of 75,000). A breakdown shows that there were a total of 1,553,000 subject enrollments in Japan and 2,801,000 overseas. Thus, both Japan and overseas have showed year-on-year growth.

The number of subject enrollments in Centers in Japan (Math, English, and Kokugo) had grown to 1,430,000 by term end. This represents the highest number of subject enrollments at the end of a fiscal year since FY2002. The needs for private educational services have been changing with the times. The reasons for our positive results this term are the united efforts of everyone within the Kumon Group to understand the situation of each family in each community, to carefully respond to the expectations that parents have regarding Kumon Method education, and to accordingly provide services in an appropriate and detailed manner. As a result, the number of students in Kumon has attained excellent results that approach the high level reached 18 years ago. The number of elementary school-aged children in Japan 18 years ago was 7,540,000. Today that number has fallen by 15% to 6,370,000. Despite this trend we have continued to achieve good results. Looking ahead, this trend of a declining number of children is predicted to continue. Nevertheless, we pledge to further improve the value of the Kumon Method (learning effects) in order that we continue to be chosen by parents and children in communities around the world.

The following is a report on the overall condition of the Kumon Group. Kumon Lifelong Integrated Learning Co., Ltd. (Kumon LIL) celebrated its 20th anniversary in FY2016. Enrollment has been growing rapidly and Kumon LIL reached a new high in their enrollment figures of 94,000 subject enrollments as of the end of March 2017 (year-on-year 107.1%). Kumon LIL aims to promote the study of calligraphy in the true self-learning spirit of Kumon.

Furthermore, Kumon Publishing Co., Ltd. achieved annual sales of 4,350 million yen in FY2016 (an increase of 80 million yen over the previous fiscal year). This was despite a drop of 30% in sales over the last 10 years in the publishing business in Japan. These solid results by Kumon Publishing were based on a conscious effort to learn from our customers and students in order to provide better products. In addition, staff continued their efforts to communicate the value offered by Kumon Publishing.

Looking ahead to the near future, we can expect globalization to continue and, as a reaction, for protectionism to gather strength. Artificial intelligence is likely to become more prevalent and lead to further technological innovations. The population structure of Japan is expected to undergo major changes in the years ahead and educational reforms will be implemented in Japan in 2020. Overall, the future is sure to be one of increasingly rapid change. The more that change occurs, the more that people will be called upon to mobilize all of their know-how in order to effectively deal with new situations. Individuals will require the ability to make independent decisions, to solve problems and to create their own paths in life.

Based on our many years of implementing educational activities, Kumon enables students to develop basic academic skills while attaining a high level of self-learning ability. The Kumon Method imparts to students the ability to think independently, to make decisions and to act. Over the years many Kumon students have gone on to play leading roles on the global and local stages. Kumon is now seen as one of the most responsible educational organizations in the world as a result of its more than half-a-century long history of educational activities and their positive results. For that very reason, all Kumon staff bear a great responsibility to continue to further refine the value of Kumon Method education so as to fulfill our responsibility to society.

Our ultimate goal at Kumon is to help people from all over the world benefit from the Kumon Method, whether they live in developed nations or in developing nations. Through our educational activities we will continue to strive to realize Kumon’s Mission “to foster sound, capable people and thus contribute to the global community.”

Hidenori Ikegami
President
Kumon Institute of Education Co., Ltd.