The 63rd Annual ReportApril 1, 2024 - March 31, 2025

Regarding the current fiscal year’s social and economic environment, the impact of the new coronavirus infection (COVID-19) has eased, and economic activities have normalized in Japan and abroad, but significant exchange rate fluctuations and the lifting of the negative interest rate policy in Japan have impacted our corporate activities. Furthermore, although personal consumption in Japan is showing signs of recovery, inflation is significantly affecting consumer behavior as consumers exercise thrift and place greater emphasis on cost effectiveness.

Amid such changes in the business environment, we officially introduced the tablet-based study program “Kumon Connect” (KC) at some of our centers in Japan beginning in June 2024. KC started as an official business overseas in January 2023, and we will expand this business in Japan by exploiting the knowledge obtained overseas.

As of December 2024, the number of KC students was 195,461 (year on year 182.4%), the number of KC centers was 6,299 (year on year 161.3%), and the number of expansion countries/regions increased to 55. Since the first fiscal year in which KC was offered, the trend has continued that centers with a larger number of KC students exhibit a higher percentage of overall enrollment increase , contributing to the overall increase in number of enrollments, including KC students.

In Japan, the number of KC students had reached 36,000, and the number of KC centers was 4,368 as of March 2025, 10 months after the official introduction in June 2024. As the introduction of KC has expanded, cases have emerged of centers with more than 100 KC students and more than 80% KC students, and the knowledge from advanced cases circulates among our instructors and staff. We are also working together to improve instructional skills and learning outcomes through the use of KC, and the number of staff members is increasing who utilize KC student data to interact with instructors in a timely fashion to enhance instruction.

In Kumon study, homework is a factor that significantly impacts improvement, and grading homework constitutes a large part of the work in center management. To expedite grading and the return of homework through the use of ICT, the Kumon Global Grading Center (KGGC) was launched as a paid service to instructors overseas in January 2025 after a three-year trial operation. In practice, a KC student studies at home and submits homework online, which is then graded at KGGCs in Vietnam, India, the Philippines, Mexico, and Indonesia and returned online to the student. This will reduce grading work in Kumon Centers and enable prompt feedback on at-home study, contributing to improved student motivation and learning outcomes.

Regarding the overseas center business, the total number of enrollments in the five regions of North America, South America, Asia/Oceania, China, and Europe/Africa exceeded 100% year on year for the second consecutive year. Total enrollments in those five regions and the Middle East/Pakistan numbered 1,197,493 (year-on-year 104.1%), and the number of centers was 8,384 (year-on-year: 102.5%) for the month of December.

As for the domestic center business results, total enrollments in three subjects total number of enrollments in July 2024, exceeding the same month last year for the first time in five years and eight months since November 2018. Regarding center openings, new centers opened at a rate of 107.1% from the previous year, and the year-on-year total number of openings was up 121.0%, the second highest in the past 10 years.

Within the Kumon Group, Kumon Publishing Co., Ltd. installed a “Kumon Square” section for its products in 403 bookstores, and sales in that section increased 116% year on year, positively impacting sales area expansion and sales growth. As a result, operating income reached 84 million JPY at Kumon Publishing, an improvement of 222 million JPY from the previous fiscal year, and the company regained profitability.

In addition, 450 centers offered or are scheduled to offer the Senior Penmanship and Calligraphy Class for those aged 65 years and older, which Kumon Lifelong Integrated Learning Co., Ltd. launched in April 2024. In a new initiative, Kumon has also concluded a license agreement with Pandanet Co., Ltd. for Kumon Igo, a lifelong learning content developed in 1985 and discontinued in 2003, which provides online Go game services in approximately 150 countries and regions around the world.

As for social contributions, we have launched KC study at private schools in Nepal as a new business based on a license agreement, and we are providing educational opportunities for refugee children in Japan in collaboration with Sumitomo Mitsui Financial Group, Inc. and Fast Retailing Foundation as part of our efforts to achieve Goal 4 of the SDGs, “Quality Education for All,” as well as Goal 17, “Achieve the Goals Through Partnerships.”

Furthermore, the company continually implements initiatives to promote and maintain the health of our staff members and has been certified by the Japan Health Council as a “Health Management Excellent Corporation 2025 White 500,” which recognizes top-ranking large corporations in terms of excellent health management.

As a result of the developments described above, this fiscal year saw consolidated sales of 94,039 million yen, an increase of 6,450 million JPY compared with the previous fiscal year (a year-on-year increase of 7.4%). Operating income totaled 16,583 million JPY (a year-on-year increase of 19.8%), ordinary income fell by 8.8% to 16,717 million yen from the previous year, and net income attributable to the shareholders of the parent company totaled 11,763 million JPY (an 11.6% decrease from the previous year). The increase in operating income was due mainly to an increase in the number of students at overseas consolidated subsidiaries. The decreased net income attributable to shareholders of the parent company was due mainly to foreign exchange losses resulting from the appreciation of the JPY in the current fiscal year, whereas the depreciation of the JPY in the previous fiscal year yielded foreign exchange gains.

The number of students worldwide increased by 14,000 from the previous year to 3.57 million as of March 31, 2025, and the number of students in consolidated subsidiaries overseas as of that date increased by 52,000 from the previous year to 1.231 million.

Kumon Institute of Education Co., Ltd.

Representative Director and President Mitsunori Tanaka