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The 59th Annual ReportApril 1, 2020 - March 31, 2021

1. Progress and results of business

In this fiscal year the economic environment in Japan as well as overseas was strongly affected by the spread of the COVID-19. In Japan there were temporary economic recoveries in the periods between disease waves. However, the overall situation remains very difficult to predict due to the unending waves of the COVID-19.

In these conditions, the Kumon Group has set forth the following four basic policies as a forward-looking response to the situation:

  1. Implementation of measures to ensure that employees, Instructors, and Center assistants do not become infected.
  2. Strict compliance with the directives of each country and local authority regarding the COVID-19 in order to prevent the spread of infection.
  3. Development and implementation of measures to ensure the continued study of students to the maximum extent possible.
  4. Placement of our primary focus on the continuation of each and every Center so as to ensure continued operations.

The Kumon Group carried out emergency measures in line with basic policies 1., 2., and 3. above, such as assistance regarding the hygienic environment of Centers and the provision of learning materials to students. All of our efforts were focused on providing a safe study environment and on measures to prevent infection. At the same time, in order to realize Kumon’s Mission, which is our reason for existence, in other words in order to continue to make a contribution to society by helping students grow through the Kumon Method and, moreover, to ensure the continuation of our business which is a prerequisite to achieve that goal, we provided a variety of types of assistance aimed at ensuring the continuation of Centers to realize our most important basic policy 4. above from a mid- to long-term point of view in consideration of the ongoing COVID-19 pandemic situation as well as the post-pandemic situation.

In addition, we have converted the emergency declarations and lockdowns into opportunities to spread the usage of on-line instruction in Centers, to carry out online learning sessions and support activities involving Instructors and staff, and to implement work reforms within the company including promotion of paperless styles of working. This move to online activities and usage of ICT has led to major progress as we move into the future.

In the above manner we have striven to overcome the COVID-19 pandemic, to continue our business operations, and to continue to provide learning opportunities to our students. This crisis has raised our awareness of the need for change and we have made progress in reforming our work methods and expense structure during this pandemic. With all of this in mind, we have begun to implement fundamental reforms according to our Structural Reform 2.0 vision that will transform Kumon into an organization that can develop in a sustainable manner regardless of changes in conditions. As we move forward in efforts to realize sustainable operations, we have started the implementation of our 2019-2025 Mid-term Corporate Plan: Innovation 2025 which calls for “dramatic improvement of learning outcomes” and “further penetration into communities in a sustainable model.” In addition, we have also started carrying out the domestic operations policy Future Creation 2025 based on the above policies as well as mid-term plans for the operations of each company of the Kumon Group. Furthermore, by updating Innovation 2025, Future Creation 2025, and the mid-term operations plans of each company in accordance with Structural Reform 2.0, we have adapted to the situation by increasing our speed and effectiveness as a result of changing our priorities and promoting the usage of ICT in response to the effects of the pandemic.

Structural Reform 2.0 aims at the realization of Kumon’s Mission. It focuses on incorporating the ideas of “selection and concentration” and “low-cost operations” into our operational planning and activities. It is a reform that is designed to “increase value for customers.” Our goal is not simply to overcome the COVID-19 pandemic crisis. Rather, we strive to achieve the further development of Kumon so that we can “answer the needs of society” and, at the same time, “realize sustainable operations.” We further aim to continue to contribute to global society by implementing SDG Goal 4 (“Quality education”), one of the 17 Sustainable Development Goals (SDGs) promoted by the United Nations.

As a result, consolidated sales in this fiscal year were 72,457 million yen, a decrease of 19,313 million yen compared with the previous fiscal year (year-on-year decrease of 21.0%). Operating income was 3,787 million yen (year-on-year decrease of 72.2%), ordinary income was 4,058 million yen (year-on-year decrease of 69.3%), and net loss attributable to owners of the parent company for the fiscal year was 5,036 million yen (previous year: income of 7,240 million yen) resulting in a decrease in Sales and income. The net income for the current term attributable to owners of the parent shifted to net loss in this fiscal year due to the recording of an extraordinary loss related to a large increase in losses caused by the spread of the COVID-19.

As of the end of March 2021, the total number of subject enrollments worldwide was 3.72 million.