Kao (4452) Status update summary

Strategic vision and business environment

• Aims to become a global leader by leveraging scientific and emotional brand strengths, fusing scientific evidence with sensory appeal, and creating distinctive brands.

• Seeks to establish a stable revenue base by 2027, focusing on global consistency and local flexibility amid a rapidly changing cosmetics market.

• Implements a global management structure, emphasizing cross-border collaboration and organizational restructuring.

Growth strategy and brand focus

• Focuses on six global/core brands: SENSAI, MOLTON BROWN, KANEBO, SOFINA, Curél, and KATE, each with tailored growth strategies and a scrum-style, borderless operation for global expansion.

• Achieved 15% year-on-year growth for focus brands in Japan and 34% growth in e-commerce, with significant cost reductions.

• Divides brands into Japan origin, Europe origin, and Asia models to maximize investment efficiency and success rates.

Market expansion and operational improvements

• Curél targets European expansion, leveraging its derma care reputation and proprietary ceramide technology.

• SENSAI and MOLTON BROWN expand from Europe into Asia, targeting 2.5x sales growth in Asia, while KANEBO and KATE aim for 2.5x growth in Thailand and focus on Asian growth.

• SOFINA integrates all series into One SOFINA, launching new products and channels to boost Asian sales by 1.5x by 2027.

• Plans to increase overseas sales ratio to 50% by 2027, leveraging local market strengths and cross-regional brand rollouts.