Kao Corporation · TSE:4452
Kao — Kao Corp Ord — Q3 2025 Earnings Presentation
27 slides from Kao's earnings presentation, Nov 7, 2025
Slide 1: Consolidated Financial Results for the Nine Months Ended September 30, 2025
Consolidated Financial Results for the Nine Months Ended September 30, 2025 Kao Corporation November 6, 2025
Slide 2: Disclaimer
Disclaimer Forward-looking statements such as earnings forecasts and other projections contained in this release are based on information available at this time and assumptions that management believes to be reasonable, and do not constitute guarantees of future performance. Actual results may diffe
Slide 3: Contents
Contents 01 Key Highlights 02 Financial Results for the Nine Months Ended September 30, 2025 03 Appendix
Slide 4: Key Highlights
Key Highlights Positioning of FY2025 toward Achieving K27 ✓ Improving earning power while building a foundation for global sales expansion toward profitable growth. - Accelerating the shift from quantity-based to quality-based growth, underpinned by a solid revenue base in Japan. FY2025 Q3 YTD Resul
Slide 5: Financial Results for the Nine Months Ended September 30, 2025
02 Financial Results for the Nine Months Ended September 30, 2025
Slide 6: Highlights of Consolidated Financial Results
Highlights of Consolidated Financial Results Billion yen FY2024 Q3 YTD FY2025 Q3 YTD Growth Change Net sales 1,190.0 1,232.0 +3.5% +42.0 Effect of currency translation*(0.5%) (6.5) Like-for-like growth +4.1% +48.5 Gross profit 459.3 481.3 +4.8% +22.0 Gross margin(%) 38.6% 39.1% - +0.5pts Operating i
Slide 7: Highlights of Q3 Consolidated Financial Results
Highlights of Q3 Consolidated Financial Results (Jul. – Sep.) Billion yen FY2024 Q3 FY2025 Q3 Growth Change Net sales 402.0 423.0 +5.2% +21.0 Effect of currency translation*+0.4% +1.5 Like-for-like growth +4.8% +19.5 Gross profit 155.6 169.5 +8.9% +13.9 Gross margin(%) 38.7% 40.1% - +1.4pts Operatin
Slide 8: Key Points of Results and Future Initiatives
Key Points of Results and Future Initiatives Net sales 1,232.0 billion yen Operating income 114.9 billion yen ROIC 9.3% +4.1% on a like-for-like basis (+13.8 billion yen; +13.7%); margin 9.3% +0.9 pts FY2025 Q3 YTD Financial Results 15 By category Q3 sales recovered in all categories and areas. Both
Slide 9: Consolidated Net Sales by Segment/Geographic Region in Q3 YTD
Consolidated Net Sales by Segment/Geographic Region in Q3 YTD • Consolidated sales exceeded the plan. • The Global Consumer Care Business performed well in Japan, and market share continued to grow. Outside Japan, while the Cosmetics Business and the Health Beauty Care Business steadily improved, Fa
Slide 10: Consolidated Results by Segment in Q3 YTD
Consolidated Results by Segment in Q3 YTD • Operating income increased due to substantial improvement in the profitability of the Cosmetics Business and strong performance by Fabric & Home Care and sanitary products. • In the Chemical Business, operating income decreased as fluctuations in raw mater
Slide 11: Q3 Consolidated Net Sales by Segment/Geographic Region
Q3 Consolidated Net Sales by Segment/Geographic Region (Jul. – Sep.) • Consolidated sales were nearly in line with the plan. The Global Consumer Care Business continued to expand its market share in Japan. The Chemical Business maintained its sales growth. • The Global Consumer Care Business outside
Slide 12: Q3 Consolidated Results by Segment
Q3 Consolidated Results by Segment (Jul. – Sep.) • Operating income increased due to substantial improvement in the profitability of the Cosmetics Business, and strong performance by Fabric & Home Care and skin care in Japan. • Excluding the gain on the transfer of the beverage business and other ex
Slide 13: Analysis of Change in Operating Income in Q3 YTD
Analysis of Change in Operating Income in Q3 YTD (YoY Change) • Operating income increased substantially due to a significant increase in sales volume in the Global Consumer Care Business and the contributions of selling price adjustments and a change in the product mix. • As personnel and other exp
Slide 14: Further Improvement of Earning Power
Further Improvement of Earning Power • Launches of high-value-added products, cost reduction activities and other measures offset the impact of rising raw material prices. • With the additional contribution of growth in the Cosmetics Business, the profit margin improved substantially. Progress towar
Slide 15: Steady Progress toward Sustainable Growth
Steady Progress toward Sustainable Growth • The Kao Group has maintained or expanded sales volume in multiple categories even after selling price adjustments, achieving both profitability and market share expansion with the “strength of brands that consumers continue to choose.” Kao’s share of the H
Slide 16: Reorganizing the Cosmetics Business
Reorganizing the Cosmetics Business to Achieve Profitable Growth and Promoting Globalization • Sales of the six focus brands expanded, primarily in Japan and ASEAN, while business streamlining made headway in Japan. • Profits steadily expanded, supported by a strong resumption of growth in China. Si
Slide 17: Ensuring the Success of K27 - Initiatives Outside Japan
Ensuring the Success of K27 - the Global Consumer Care Business Initiatives Outside Japan • Strengthening growth areas: Reinforce brands in key markets outside Japan and develop new markets, focusing on cosmetics and skin protection. • Advancing reforms in areas facing challenges: Formulate and impl
Slide 18: Raw Material Prices Outlook in FY2025
Raw Material Prices Outlook in FY2025 (GC Business; vs. FY2024 Results) • Prices of fats and oils in Q3 YTD were higher than the initial assumption. This trend is expected to continue in Q4. • Due to the impact of petrochemical raw materials, raw material prices are expected to be approximately 0.5
Slide 19: Forecast of Factors in Operating Income in FY2025
Forecast of Factors in Operating Income in FY2025(vs. FY2024 Results) • Aim to achieve a profit increase of more than 16.0 billion yen by enhancing earning power. • Price adjustments in response to rising raw material prices for household and personal care products will continue concurrently with pl
Slide 20: K27 Progress
K27 Progress ROIC and EVA EVA Operating income Operating Income ROIC （Billion yen） （Billion yen） Record-high （%） operating income 211.7 billion yen or 11% or more more Forecast* 11% 10.0% 70.0 billion 200.0 yen or Growth potential 9.2% more + 40.0 billion 70 Forecast* yen+α ROIC 165.0 billion yen 7.
Slide 21: Key Highlights
Key Highlights Positioning of FY2025 toward Achieving K27 ✓ Improving earning power while building a foundation for global sales expansion toward profitable growth. - Accelerating the shift from quantity-based to quality-based growth, underpinned by a solid revenue base in Japan. FY2025 Q3 YTD Resul
Slide 22: Appendix
03 Appendix
Slide 23: Consumer Products Market in Japan
Consumer Products Market in Japan 87 categories, SRI+1 26 categories, New SLI2 Growth of H&PC Market Market growth rate in value terms Growth of Cosmetics Market Market growth rate in value terms （％） 120 （％） 120 24 Q4 25 Q1 25 Q2 25 Q3 24 Q4 25 Q1 25 Q2 25 Q3 105 103 104 103 102 101 102 99 110 110 1
Slide 24: Kao's Main Markets outside Japan
Kao’s Main Markets outside Japan Asia China (including e-commerce) Indonesia Thailand Market growth rate in value terms (% vs. previous year) 24 Q4 25 Q1 25 Q2 25 Q3 24 Q4 25 Q1 25 Q2 25 Q3 24 Q4 25 Q1 25 Q2 25 Q3 Baby diapers - - - - 94 95 95 95 83 86 86 79 Sanitary napkins and panty liners 105 105
Slide 25: Consumer Price Index Trends and Spending Attitudes (Japan)
Consumer Price Index Trends and Spending Attitudes (Japan) Consumer Price Index for Major Countries(1980 = 100) Figures for 2025 and after are based on the IMF April 2025 forecast. Japan 700 Japan Goods and Services on Which Households Have Goods and Services on Which Households Have 600 China Incre
Slide 26: Changes in Reportable Segments
Changes in Reportable Segments (From January 2025) To further ramp up global growth, the Kao Group restructured its organization and functions as of January 2025. 【Changes of Names】 • The “Consumer Products Business” has been renamed as the “Global Consumer Care Business.” • The “Hygiene and Living
Slide 27: KAO Kirei-Making Life Beautiful
KAO Kirei-Making Life Beautiful