Kao (4452) Status update summary

Strategic vision and business environment

• Aims to become the most chosen cosmetics business in targeted categories, price points, and regions by leveraging scientific benefits and emotional appeal, fusing scientific evidence with sensory appeal.

• Seeks to establish a stable revenue base by 2027, focusing on global consistency, local flexibility, and a global management structure with cross-border collaboration.

• COVID-19 and changes in the Chinese market prompted a strategic shift and business restructuring.

• Promotes internal pride and external brand recognition, with positive feedback from employees and customers.

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 globally unified operations.

• Implements scrum-style cross-divisional teams and a global management structure.

• Achieved 15% year-on-year growth for focus brands in Japan and 34% growth in e-commerce; direct EC sales up 134% in H1 2025.

• Rapid growth in Thailand (27% year-on-year), significant ASEAN expansion, and notable growth in China and Europe.

• Pursues a self-sustaining cycle of capital acquisition and investment, balancing growth and business streamlining.

Brand deployment models and market expansion

• Deploys three models: Japan origin (Curél), Europe origin (SENSAI, MOLTON BROWN), and Asia model (KANEBO, KATE, SOFINA).

• Curél leverages Japanese derma care expertise to expand in Europe, targeting regions with high rates of sensitive skin.

• SENSAI and MOLTON BROWN expand from Europe into Asia, targeting 2.5x sales growth in Asia and managing the region as one market.

• KANEBO and KATE aim for 2.5x growth in Thailand, with SOFINA launching new series and channels.

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