Kao : Consolidated Financial Results for the Nine Months Ended September 30, 2025

November 6, 2025

Company name: Kao Corporation Tokyo Stock Exchange in Japan Stock code: 4452 (URL: https://www.kao.com/global/en/investor-relations/library/results/) Representative: Yoshihiro Hasebe, President and CEO

Contact person: Yoshimasa Minegishi, Vice President, Financial Controllers, Global

Telephone: +81-3-3660-7111

Scheduled commencement date for dividend payments: -

Preparation of supplementary material on financial results: Yes

Financial results information meeting: Yes (for institutional investors and analysts)

(Amounts less than one million yen are rounded)

1. Consolidated financial results for the nine months ended September 30, 2025 (from January 1, 2025 to September 30, 2025)
   1. Consolidated operating results (Percentages indicate year-on-year changes)

      	Net sales		Operating income		Income before income taxes		Net income
      Nine months ended	Millions of yen	％	Millions of yen	％	Millions of yen	％	Millions of yen	％
      September 30, 2025 September 30, 2024	1,232,034 1,190,011	3.5 5.7	114,867 101,055	13.7 99.3	119,412 104,016	14.8 90.6	84,901 72,917	16.4 111.1

      	Net income attributable to owners of the parent		Comprehensive income		Basic earnings per share	Diluted earnings per share
      Nine months ended	Millions of yen	％	Millions of yen	％	Yen	Yen
      September 30, 2025 September 30, 2024	84,719 71,027	19.3 118.3	73,729 86,162	(14.4) (10.2)	182.64 152.85	- -

   2. Consolidated financial position

      	Total assets	Total equity	Equity attributable to owners of the parent	Ratio of equity attributable to owners of the parent to total assets	Equity attributable to owners of the parent per share
      As of September 30, 2025 December 31, 2024	Millions of yen 1,791,798 1,867,237	Millions of yen 1,057,494 1,098,835	Millions of yen 1,029,263 1,066,776	％ 57.4 57.1	Yen 2,245.81 2,296.69

2. Dividends

   	Annual cash dividends per share
   	1st quarter end	2nd quarter end	3rd quarter end	Fiscal year end	Total
   	Yen	Yen	Yen	Yen	Yen
   Fiscal year ended December 31, 2024	-	76.00	-	76.00	152.00
   Fiscal year ending December 31, 2025	-	77.00	-
   Fiscal year ending December 31, 2025 (Forecast)				77.00	154.00

   Note: Revisions to the most recently announced forecast of cash dividends: None

3. Forecast of consolidated operating results for the fiscal year ending December 31, 2025 (from January 1, 2025 to December 31, 2025)

   (Percentages indicate year-on-year changes)

   	Net Sales		Operating income		Income before income taxes		Net income attributable to owners of the parent		Basic earnings per share
   Fiscal year ending December 31, 2025	Millions of yen 1,690,000	％ 3.8	Millions of yen 165,000	％ 12.5	Millions of yen 168,000	％ 11.2	Millions of yen 121,000	％ 12.3	Yen 262.31

   Note: Revisions to the most recently announced forecast of consolidated operating results: None

4. Others

   1. Significant changes in the scope of consolidation during the period: None Newly included: － companies (Company name) －

      Excluded: － companies (Company name) －

   2. Changes in accounting policies and changes in accounting estimates

      1. Changes in accounting policies required by IFRS ： None

      2. Changes in accounting policies due to reasons other than 1) ： None

      3. Changes in accounting estimates ： None

   3. Number of issued shares (ordinary shares)

      1. Total number of issued shares at the end of the period (including treasury shares)

         As of September 30, 2025	465,900,000 shares
         As of December 31, 2024	465,900,000 shares

      2. Number of treasury shares at the end of the period

         As of September 30, 2025	7,596,989 shares
         As of December 31, 2024	1,415,333 shares

      3. Average number of shares outstanding during the period

(Caution regarding forward-looking statements, etc.)

Forward-looking statements such as earnings forecasts and other projections contained in this release are based on information available at the time of disclosure and assumptions that management believes to be reasonable, and do not constitute guarantees of future performance. Actual results may differ materially from expectations due to various factors.

Please refer to page 9, "1. Qualitative Information on Financial Results for the Nine Months Ended September 30, 2025, (3) Description of Information on Outlook, Including Forecasts of Consolidated Results" for the suppositions that form the assumptions for earnings forecasts and cautions concerning the use of earnings forecasts.

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1. Qualitative Information on Financial Results for the Nine Months Ended September 30, 2025 …… 2

   1. Description of Operating Results ………………………………………………………………………………… 2

   2. Description of Financial Position ………………………………………………………………………………… 9

   3. Description of Information on Outlook, Including Forecasts of Consolidated Results …………… 9

2. Condensed Consolidated Financial Statements and Notes ………………………………………………… 10

   1. Condensed Consolidated Statement of Financial Position ……………………………………………… 10

   2. Condensed Consolidated Statement of Income …………………………………………………………… 12

   3. Condensed Consolidated Statement of Comprehensive Income ……………………………………… 13

   4. Condensed Consolidated Statement of Changes in Equity ……………………………………………… 14

   5. Condensed Consolidated Statement of Cash Flows ……………………………………………………… 16

   6. Notes to Condensed Consolidated Financial Statements ………………………………………………… 17

   7. Note regarding Assumption of Going Concern ……………………………………………………………… 19

Note: Changes and comparisons are all with the same period a year earlier unless otherwise noted. Like-for-like growth rates below exclude the effect of translation of local currencies into Japanese yen. Growth by volume includes changes due to differences in product mix.

(Billions of yen, except operating margin and per share amounts)

In the global economy, conditions remain uncertain due to international supply chain disruptions and rising procurement costs resulting from the impact of changes in tariff policies, in addition to protracted geopolitical risks in Europe and the Middle East. In Japan, the impact of high prices has persisted and recovery in domestic demand has lacked strength.

According to retail sales and consumer purchasing survey data, the household and personal care products and cosmetics markets in Japan, which are the Kao Group's key markets, grew during the period from January to September 2025 compared with the same period a year earlier.

To successfully execute its Mid-term Plan 2027 ("K27") in this business environment, the Kao Group has been improving its earning power while building a foundation for global sales expansion toward profitable growth.

Net sales increased 3.5% compared with the same period a year earlier to 1,232.0 billion yen. Currency translation accounted for a 0.5% decrease and net sales increased 4.1% on a like-for-like basis (breakdown of the increase: 0.6% increase by volume, 3.5% increase by price). Operating income was

114.9 billion yen, an increase of 13.8 billion yen, and income before income taxes was 119.4 billion yen, an increase of 15.4 billion yen. Net income was 84.9 billion yen, an increase of 12.0 billion yen.

To improve capital efficiency and further increase shareholders' returns, the Board of Directors of Kao Corporation (the "Company") resolved at a meeting held on August 6, 2025, to repurchase shares of the Company's stock. As of September 30, 2025, the total number of repurchased shares was 6,232,000 for a total amount of 41.7 billion yen.

The main exchange rates used for translating the financial statement items (income and expenses) of foreign consolidated subsidiaries and associates were as shown below.

Note: Figures in parentheses represent the exchange rates for the same period a year earlier.

A summary of the changes to reportable segments implemented during the three months ended March 31, 2025, is as follows. (Reference: 2. Condensed Consolidated Financial Statements and Notes, (6) Notes to Condensed Consolidated Financial Statements, 1. Segment Information on page 17.)

1. The "Consumer Products Business," "Hygiene and Living Care Business," and "Health and Beauty Care Business" have been renamed the "Global Consumer Care Business," "Hygiene Living Care Business," and "Health Beauty Care Business," respectively.

2. The Business Connected Business has been newly established within the Global Consumer Care Business. This business consists of commercial-use hygiene products (excluding Washing Systems, LLC), life care products, and other products.

3. Washing Systems, LLC has been included in the Chemical Business.

4. Net sales and operating income for the same period a year earlier have been reclassified and restated to reflect the reorganization of segments in items 1 to 3 above.

Consolidated Results by Segment

Nine months ended September 30