Home > Company Profile > Annual Report

The 56th Annual ReportApril 1, 2017 - March 31, 2018

1. Message from the President

Progress and Results of Business

In this consolidated fiscal year in Japan there was a gradual increase in capital investment due to improved corporate performance. In addition, there was a continuation in the recovery in consumer spending due to improvement in the employment situation. On the other hand, due to economic uncertainty, fluctuations in financial markets, and other geopolitical risks, the situation remains opaque on an international level.

 

In response to these circumstances, the concrete action plan described below has been carried out in accordance with the Kumon Group Mid-term Corporate Plan in order to further develop our activities both within Japan and overseas.

 

In Japan, the Challenge 2020 action plan has been implemented. We have been engaged in improving the benefits of study and the value of the Kumon Method, operating and developing our Center network, and establishing the Kumon brand through the offering of English language education and programs for preschoolers. The execution of the PDCA (Plan, Do, Check, Act) cycle has advanced our activities. As a result, the market penetration rate continues to set record highs. In addition, a record high enrollment has been achieved for the subject of English and the number of preschoolers enrolled in Kumon has increased for the fifth year in a row.

 

Overseas, the Global Challenge 2020 action plan has been implemented. We have been engaged in improving the fundamental work procedures that support the improvement of the benefits of study and the value of the Kumon Method. Activity data has been accumulated in the KiDS Kumon Group consulting support system and information regarding advanced practices has been shared. As a result, inter-regional cooperation and the sharing of knowledge is underway leading to the steady improvement of the activities of the Kumon Group.

 

As a result, consolidated sales in this consolidated fiscal year equaled 93,159 million yen, an increase of 2,568 million yen compared with the previous consolidated fiscal year (year-on-year increase of 2.8%). Operating income amounted to 13,190 million yen (year-on-year increase of 5.1%); ordinary income was 12,475 million yen (year-on-year increase of 3.5%). However, profit attributable to owners of parent for the fiscal year was 6,716 million yen (year-on-year decrease of 14.7%) due to incurred extraordinary loss. Thus, the fiscal year yielded an increase in sales but decrease in 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 worldwide, as of the end of March 2018 was 4,280,000.

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