Kao Corporation · TSE:4452
Kao — Kao Corp Ord — Q1 2026 Earnings Presentation
28 slides from Kao's earnings presentation, May 12, 2026
Slide 1: Consolidated Financial Results for the Three Months Ended March 31, 2026
Consolidated Financial Results for the Three Months Ended March 31, 2026 Kao Corporation May 12, 2026
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 Three Months Ended March 31, 2026 03 Appendix
Slide 4: Key Highlights
Key Highlights Strategic role of FY2026 Further strengthening our sustainable earning power and accelerating the shift to growth. Ensuring the success of Mid-term Plan 2027 (“K27”) and building a foundation for step-change growth thereafter. FY2026 Q1 Results Net sales 413.2 ¥bn Operating income 44.
Slide 5: Financial Results for the Three Months Ended March 31, 2026
02 Financial Results for the Three Months Ended March 31, 2026
Slide 6: Highlights of Consolidated Financial Results
Highlights of Consolidated Financial Results Billion yen FY2025 Q1 FY2026 Q1 Growth Change Net sales 389.9 413.2 +6.0% +23.4 Effect of currency translation* +3.5% +13.5 Like-for-like growth +2.5% +9.9 Gross profit 148.0 158.7 +7.2% +10.7 Gross margin(%) 38.0% 38.4% - +0.4pts Operating income 30.9 44
Slide 7: Q1 Consolidated Net Sales by Segment/Geographic Region
Q1 Consolidated Net Sales by Segment/Geographic Region • GC Business sales increased 3.9%, driven by strong performance in Japan. Outside Japan, growth was driven by priority businesses such as Cosmetics in Asia and Skin Care in the Americas. At the same time, optimization efforts continue for busin
Slide 8: Q1 Consolidated Results by Segment
Q1 Consolidated Results by Segment • GC Business: Operating income increased across all segments, driven by stronger earning power and the expansion of high-value-added products. Operating margin +1.8 pts. • Chemical Business: Operating income declined due to a delay in passing on higher raw materia
Slide 9: Q1 Analysis of Change in Operating Income
Q1 Analysis of Change in Operating Income (YoY Change) • Strong volume and selling price growth in the GC Business offset the decline in Chemical Business operating income. • As part of logistics optimization, the Kao Group sold land (recording an 11.5 ¥bn gain on sale), which will lead to further i
Slide 10: Further Improvement of Earning Power
Further Improvement of Earning Power • Drivers of gross profit margin expansion are firmly in place, supported by high-value-added products, growth of high- margin businesses, and cost reduction initiatives, among others, transforming earning power into a more sustainable and repeatable structure. G
Slide 11: Further Reinforcing the GC Business in Japan
Further Reinforcing the GC Business in Japan: FY2026 Q1 Results • A consistent brand concept and high-value-added products strengthened brand loyalty, while cross-category sales expansion drove sustainable profit growth. Laundry detergents Sunscreens Facial cleansers In-bath hair care Kao’s market s
Slide 12: Further Reinforcing the GC Business in Japan
Further Reinforcing the GC Business in Japan: FY2026 Q1 Results • In Nikkei Trendy’s "2026 First Half Hit Awards," Bioré UV Aqua Rich Airy Hold Cream won the Grand Prize in the Beauty category. • In Nikkei Trendy’s "2026 Second Half Breakout Predictions," Bioré At-Home Spa Deep Clay Facial Wash won
Slide 13: Strengthening Priority Businesses outside Japan
Strengthening Priority Businesses outside Japan: Q1 Results • Achieved steady growth centered on key brands and strategic areas. YoY sales growth Strengthened global collaboration to drive the “three strategic Europe expansion models” Cosmetics + 5% Americas KATE: Ramped up new product rollouts in t
Slide 14: Chemical Business - Q1 Impacted by Delayed Price Pass-through; Recovery from Q2 Onward
Chemical Business -Q1 Impacted by Delayed Price Pass-through; Recovery from Q2 Onward • The main factor behind the Q1 profit decline was a delay in price pass-through in the fats and oils business in the Americas and Europe, rather than a structural decline in earning power. • From Q2 onward, profit
Slide 15: Integrated Supply Chain Enhancing Resilience to Raw Material Risk
Integrated Supply Chain Enhancing Resilience to Raw Material Risk • Even amid raw material sourcing risks, Kao’s integrated supply chain is expected to ensure planned supply volumes for the year. • End-to-end integrated operations from upstream to downstream enable adaptation to changes in the exter
Slide 16: Key Highlights
Key Highlights Strategic role of FY2026 Further strengthening our sustainable earning power and accelerating the shift to growth. Ensuring the success of Mid-term Plan 2027 (“K27”) and building a foundation for step-change growth thereafter. FY2026 Q1 Results Net sales 413.2 ¥bn Operating income 44.
Slide 17: FY2026 Main Upcoming Events
FY2026 Main Upcoming Events (Scheduled) ➢ Briefing on Marketing Strategy ➢ Briefing on Research and Development Strategy 17
Slide 18: Appendix
03 Appendix
Slide 19: Four Commitments Following the Extraordinary General Meeting
Four Commitments Following the Extraordinary General Meeting (held April 30, 2026) ＜Proposing Shareholders＞ Shareholder Proposal* Rejected（30.30%） Oasis Japan Strategic Fund Ltd. and Oasis Opportunities Fund One SPC - Echo SP ＜Proposal*＞ Proposal to appoint investigators to examine the Kao's busines
Slide 20: Toward responsible sourcing of raw materials
Toward responsible sourcing of raw materials Targets and key initiatives through FY2030 Building a fully transparent and sustainable supply chain from raw material origins to final products, while demonstrating zero deforestation and respect for human rights globally. FY2030 FY2030 Independent FY202
Slide 21: Dual approach: Driving market-wide transformation
Dual approach: Driving market-wide transformation (RSPO adoption) and full traceability within our own supply chain Support for RSPO and Ensure 100% company traceability* expansion of its adoption (Target for FY2030) Palm farm IP SG Full physical segregation of certified oil Palm oil extraction Palm
Slide 22: The Role of Book & Claim in Expanding Sustainable Procurement
The Role of Book & Claim in Expanding Sustainable Procurement Premise of the shareholder proposal's claim—"B&C is a lower-tier model"—is incorrect. FY2025: Achieved 100% certified oil through a RSPO Secretariat Explicitly States: combination of MB and B&C "B&C is not a lower-tier model" <RSPO Secret
Slide 23: Engagement to Drive Improvement Is an NDPE Global Standard
Engagement to Drive Improvement Is an NDPE Global Standard Responses by H&PC Companies to Suppliers Identified in Shareholder Proposals FGV AAL Business Status *Listed on Mill List Business Status *Listed on Mill List Trading Continued · Corrective Action Unilever Trading Suspended Not listed Reques
Slide 24: Engagement History with the Shareholder Proponent, Oasis
Engagement History with the Shareholder Proponent, Oasis Management Company Ltd. (“Oasis”), at the Extraordinary General Meeting of Shareholders (April 30, 2026) Mar. 5, 2026 Mar. 19, 2026 Mar. 27, Apr. 8, Apr. 30, 2026 “Protect Kao” 2026 Kao’s Views Extraordinary Mar. 21, 2025 published by General
Slide 25: 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 25 Q2 25 Q3 25 Q4 26 Q1 25 Q2 25 Q3 25 Q4 26 Q1 104 103 103 105 102 99 99 98 110 110 100
Slide 26: Kao's Main Markets outside Japan
Kao’s Main Markets outside Japan Asia Market growth rate in value terms China (including e-commerce) Indonesia Thailand (% vs. previous year) 25 Q2 25 Q3 25 Q4 26 Q1 25 Q2 25 Q3 25 Q4 26 Q1 25 Q2 25 Q3 25 Q4 26 Q1 Baby diapers - - - - 95 95 97 96 85 78 82 76 Sanitary napkins and panty liners 104 103
Slide 27: IFRS 18 Presentation and Disclosure in Financial Statements
IFRS 18 “Presentation and Disclosure in Financial Statements” • IFRS 18 was early adopted from FY2026 Q1. Due to the reclassification of categories, a portion of foreign exchange gains and losses is reflected in operating income. Three months ended March 31, 2025 (Millions of yen) IAS 1 Reclassifica
Slide 28: KAO
KAO Kirei-Making Life Beautiful