Slides
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Consolidated Financial Results for the Year Ended December 31, 2025 and FY2026 Forecast Kao Corporation February 5, 2026
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2 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 differ materially from those expectations due to various factors. Notes: 1. Numbers in parentheses are negative. 2. YoY: Abbreviation for year on year 3. Year on year growth rates for net sales are all like-for-like, excluding the effect of translation of local currencies into Japanese yen. Growth by volume includes changes due to differences in product mix. 4. Changes and comparisons are all with the previous year unless otherwise noted. 5. Household & personal care (H&PC): Global consumer care products excluding cosmetics 6. GC: Abbreviation for Global Consumer Care 7. Core income: Income excluding impacts of structural reforms for the fiscal year ended December 31, 2023. 8. Net sales and operating income for the previous fiscal year have been reclassified and restated to reflect the changes to reportable segments implemented during the three months ended March 31, 2025 (see page 64 for details).
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Contents 01 Key Highlights 02 Financial Results for the Year Ended December 31, 2025 03 FY2026 Forecast 04 Mid-term Plan “K27” Progress and Beyond 05 Appendix
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4 ✓ In Japan, firmly established continuous market share expansion and earning power. Outside Japan, clearly identified key areas of improvement and entered a phase in which early signs of growth have begun to emerge. FY2025 Results FY2026 Key Initiatives / Path to Growth Key Highlights Capital Allocation / Shareholder Returns ✓ FY2026 Plan: Dividends (planned): 37th consecutive fiscal year of increases in dividends (on a pre-share split basis) Share split: 2-for-1 share split of ordinary share, effective July 1, 2026 ✓ Accelerate the expansion of businesses with growth potential and the turnaround of businesses facing challenges to achieve K27 and drive growth beyond. ✓ FY2025 Results: Share repurchases totaling 80.0 billion yen and retirement of shares ✓ Clarification of the Approach to Capital Allocation - Enhanced competitiveness of GC business in Japan: The Kao Group’s share of Japan’s H&PC market has grown YoY for 30 consecutive months. - Focus on growth businesses: Substantially increased sales and operating income in the Cosmetics Business, accelerated initiatives in the skin protection business in the Americas and Europe, as well as other businesses. - Improved earnings quality: Increased earning power through promotion of high-value-added products and cost reductions. Firmly established ROIC-centered business portfolio management. - FY2026 Key initiatives: Improve earning power, including selling price adjustment; expand the GC Business outside Japan; enhance a global promotion framework - Path to growth: Three key technologies - precision selective cleansing, individual optimal selection, and environment-adaptive selection
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02 Financial Results for the Year Ended December 31, 2025
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6 Billion yen FY2024 FY2025 Growth Change Net sales 1,628.4 1,688.6 +3.7% +0.0% +3.7% +60.2 +0.7 +59.5 Gross profit Gross margin(%) 638.4 39.2% 668.2 39.6% +4.7% - +29.8 +0.4pts Operating income Operating margin(%) 146.6 9.0% 164.1 9.7% +11.9% - +17.4 +0.7pts Income before income taxes 151.0 169.8 +12.5% +18.8 Net income 110.4 120.6 +9.3% +10.2 Net income attributable to owners of the parent 107.8 120.1 +11.4% +12.3 EBITDA (Operating income + Depr. & Amort.) 235.1 249.9 +6.3% +14.8 Basic earnings per share (yen) 231.94 260.30 +12.2% +28.36 Cash dividends per share (yen) 152.00 154.00 - +2.00 Net cash flows from operating activities 201.6 199.7 (0.9%) (1.9) Effect of currency translation Like-for-like growth * Exchange rates: 149.65yen/USD 169.05yen/Euro 20.82yen/Yuan Highlights of Consolidated Financial Results *
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7 Billion yen FY2024 Q4 FY2025 Q4 Growth Change Net sales 438.4 456.6 +4.1% +1.6% +2.5% +18.2 +7.2 +11.0 Gross profit Gross margin(%) 179.1 40.9% 186.8 40.9% +4.3% - +7.7 +0.0pts Operating income Operating margin(%) 45.6 10.4% 49.2 10.8% +7.9% - +3.6 +0.3pts Income before income taxes 47.0 50.4 +7.3% +3.4 Net income 37.5 35.7 (4.7%) (1.8) Net income attributable to owners of the parent 36.7 35.4 (3.8%) (1.4) EBITDA (Operating income + Depr. & Amort.) 67.6 71.1 +5.1% +3.5 Basic earnings per share (yen) 79.10 77.92 (1.5%) (1.18) Highlights of Q4 Consolidated Financial Results (Oct.-Dec.) Effect of currency translation* Like-for-like growth * Exchange rates: 154.04yen/USD 179.33yen/Euro 21.73yen/Yuan
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8 Key Points of Results Net sales 1,688.6 billion yen +3.7% on a like-for-like basis Operating income 164.1 billion yen (+17.4 billion yen; +11.9%); margin9.7% (+24.7 billion yen; +16.8% on a like-for-like basis* ) ROIC 9.7% +0.5 pts Net sales ⚫ The GC Business in Japan grew substantially, outperforming market growth. ⚫ In the Chemical Business, sales increased due to steady performance by information materials and selling price adjustments reflecting rising raw material prices for fats and oils. Operating income ROIC ⚫ GC Business: Operating margin of 10.4% — returned to double digits ⚫ Fabric & Home Care: Effectiveness of combining high-value-added products with appropriate pricing in Japan — sales and market share expanded, and the operating margin rose to 19.1% ⚫ Cosmetics Business: Rapid profit growth due to recovery in China, expansion in key areas, and streamlining of fixed costs — operating income of 10.4 billion yen (+14.1 billion yen) ⚫ Improved by 0.5 pts year on year due to greater profitability. *Excluding the impact of one-time income and expenses in 2024 (+7.2 billion yen). Breakdown of main items: 1) Gain on transfer: pet care business +4.3 billion yen, beverage business +6.3 billion yen 2) Structural reform expenses for subsidiaries in the Americas and Europe (3.4) billion yen
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9 Outside Japan ConsolidatedJapan Asia Americas Europe Billion yen Like-for-like Billion yen Like-for-like Billion yen Like-for-like Billion yen Like-for-like Billion yen Like-for-like Billion yen Like-for-like Fabric & Home Care 346.0 5.5% 40.1 (11.3%) 3.0 (9.3%) - - 43.1 (11.1%) 389.1 3.4% Sanitary 71.6 (6.3%) 88.6 (2.1%) - - - - 88.6 (2.1%) 160.2 (4.0%) Hygiene Living Care Business 417.6 3.3% 128.6 (5.1%) 3.0 (9.3%) - - 131.7 (5.2%) 549.3 1.1% Health Beauty Care Business 225.0 6.1% 36.5 (0.1%) 109.1 (1.4%) 62.3 (3.4%) 207.9 (1.8%) 432.9 2.2% Cosmetics Business 177.0 6.3% 45.3 16.2% 7.7 (1.0%) 31.5 (0.0%) 84.5 8.1% 261.6 6.9% Business Connected Business 38.8 (3.5%) 0.4 47.7% - - - - 0.4 47.7% 39.2 (3.2%) GC Business 858.5 4.3% 210.8 (0.2%) 119.9 (1.6%) 93.8 (2.3%) 424.4 (1.1%) 1,283.0 2.5% Chemical Business* 144.6 4.5% 120.8 14.2% 86.9 6.7% 99.3 2.3% 307.0 8.0% 451.5 6.9% Consolidated 963.4 4.4% 328.3 4.8% 206.5 1.7% 190.4 0.3% 725.2 2.7% 1,688.6 3.7% (2.4%) 1.5% 2.8% 4.0% (2.9%) 1.2% 4.9% 4.9% 1.6%4.0% Consolidated Net Sales by Segment/Geographic Region in FY2025 • The GC Business grew 2.5%, driven by strong sales in Japan. Although conditions outside Japan were sluggish, our updated cosmetics strategy is delivering results reflected in the double-digit growth in the Cosmetics Business in Asia. • Chemical Business sales increased due to steady performance by information materials and selling price adjustments for oleo chemicals reflecting rising prices in the raw materials market. * Net sales of the Chemical Business include intersegment transactions • Sales by geographic region are classified based on the location of the sales recognized. • Green figures: Excluding the impact of business transfers and structural reform expenses in FY2024
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10 • The GC Business maintained its strong performance from the previous year, achieving an operating margin of 10.4% (+1.5 pts). • Chemical Business operating income decreased due to lower sales volume resulting from a decline in demand in Europe and shrinking margins in the oleo chemicals business, as well as the additional impact of inventory valuation losses. Net sales Operating income Overview (Billion yen) (Billion yen) Change Operating margin Like- for-like By Volume By Price Fabric & Home Care 389.1 3.4% 1.4% 2.0% 74.1 5.7 19.1% In Japan, promotion of high-value-added products, selling price adjustments, and other factors drove profit, offsetting a slump in Asia, for an operating margin approaching 20%. Sanitary 160.2 (4.0%) (3.0%) (1.1%) 7.1 (0.2) 4.5% Sales of sanitary napkins grew in Asia, mainly in China. Merries achieved full-year profitability. Excluding the gain on the transfer recorded in 2024, operating income increased by 4.1 billion yen. Hygiene Living Care Business 549.3 1.1% 0.1% 1.0% 81.3 5.5 14.8% ー Health Beauty Care Business 432.9 2.2% 2.0% 0.2% 39.1 4.7 9.0% Personal health grew, as did skin care and high premium hair care in Japan. Ramped up investment for growth in skin care. Cosmetics Business 261.6 6.9% 5.9% 1.0% 10.4 14.1 4.0% Operating income grew substantially due to streamlining of fixed costs in Japan, recovery in the China business, and other factors (operating margin +5.5 pts). The Japan business returned to profitability. Business Connected Business 39.2 (3.2%) (4.6%) 1.4% 2.3 (3.0) 5.8% Although the medical and other sectors were impacted by price competition, sales increased in the lodging and leisure sectors due to firm market conditions. GC Business 1,283.0 2.5% 1.7% 0.8% 133.1 21.3 10.4% ー Chemical Business* 451.5 6.9% (3.2%) 10.1% 30.2 (5.5) 6.7% Although information materials performed steadily, results were impacted by a decline in market demand for performance chemicals, shrinking margins for oleo chemicals, and inventory valuation losses. Consolidated 1,688.6 3.7% 0.5% 3.2% 164.1 17.4 9.7% (2.4%) 1.5% 2.8% 4.0% 1.6% 4.1 1.3 28.6 9.8 Consolidated Results by Segment in FY2025 * Net sales of the Chemical Business include intersegment transactions • Growth by volume includes changes due to differences in product mix. • Sales by geographic region are classified based on the location of the sales recognized. • Green figures: Excluding the impact of business transfers and structural reform expenses in FY2024 24.7 3.4
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11 Outside Japan ConsolidatedJapan Asia Americas Europe Billion yen Like-for-like Billion yen Like-for-like Billion yen Like-for-like Billion yen Like-for-like Billion yen Like-for-like Billion yen Like-for-like Fabric & Home Care 99.4 4.4% 10.6 (10.4%) 0.8 5.4% - - 11.4 (9.4%) 110.7 2.9% Sanitary 18.3 (13.7%) 22.4 (1.8%) - - - - 22.4 (1.8%) 40.7 (7.5%) Hygiene Living Care Business 117.7 1.1% 33.0 (4.6%) 0.8 5.4% - - 33.8 (4.4%) 151.4 (0.1%) Health Beauty Care Business 58.1 3.4% 9.7 (0.8%) 27.4 (2.1%) 15.9 (8.6%) 52.9 (3.8%) 111.0 (0.1%) Cosmetics Business 53.9 7.2% 12.5 68.3% 2.5 5.1% 11.6 (2.7%) 26.5 22.9% 80.4 11.8% Business Connected Business 11.1 (0.7%) 0.1 (5.4%) - - - - 0.1 (5.4%) 11.2 (0.8%) GC Business 240.8 2.9% 55.2 6.4% 30.6 (1.3%) 27.4 (6.2%) 113.3 1.1% 354.1 2.3% Chemical Business* 37.6 (0.5%) 31.1 8.4% 21.8 2.4% 24.1 (1.3%) 77.0 3.6% 114.6 2.2% Consolidated 268.1 2.8% 85.4 7.3% 52.4 0.1% 50.7 (4.0%) 188.5 2.1% 456.6 2.5% Q4 Consolidated Net Sales by Segment/Geographic Region (Oct. – Dec.) * Net sales of the Chemical Business include intersegment transactions • Sales by geographic region are classified based on the location of the sales recognized. • Green figures: Excluding the impact of business transfers and structural reform expenses in FY2024 • Sales of the GC Business increased overall, driven by steady performance in Japan and in Asia, where significant improvement in the Cosmetics Business contributed. • Sales of the GC Business decreased YoY in the Americas and Europe due to the impact of weak performance in the business for hair salons.
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12 Net sales Operating income Billion yen Billion yen Change Operating margin Like-for- like By Volume By Price Fabric & Home Care 110.7 2.9% 0.9% 2.0% 22.6 2.0 20.4% Sanitary 40.7 (7.5%) (7.0%) (0.5%) 1.0 0.0 2.5% Hygiene Living Care Business 151.4 (0.1%) (1.4%) 1.3% 23.6 2.0 15.6% Health Beauty Care Business 111.0 (0.1%) (0.1%) 0.0% 9.6 0.8 8.6% Cosmetics Business 80.4 11.8% 10.3% 1.4% 7.4 3.2 9.3% Business Connected Business 11.2 (0.8%) (2.7%) 1.9% 1.1 0.6 9.8% GC Business 354.1 2.3% 1.4% 0.9% 41.7 6.5 11.8% Chemical Business* 114.6 2.2% (4.6%) 6.8% 7.3 (2.5) 6.4% Consolidated 456.6 2.5% 0.1% 2.4% 49.2 3.6 10.8% Q4 Consolidated Results by Segment (Oct. – Dec.) * Net sales of the Chemical Business include intersegment transactions • Growth by volume includes changes due to differences in product mix. • Sales by geographic region are classified based on the location of the sales recognized. • Green figures: Excluding the impact of business transfers and structural reform expenses in FY2024 • The Cosmetics Business accelerated its strong momentum up to Q3, leading to substantial increases in both sales and operating income. • In the Chemical Business, operating income decreased due to the substantial impact of falling prices for oleo chemicals and inventory valuation losses. 1.1 6.9 4.0
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13 9.0 15.5 18.5 146.6 (8.5) (4.0) (6.5) 0.7 (7.2) 164.1 Analysis of Change in Operating Income in FY2025 (YoY Change) Raw material prices SG&A expenses Impact of currency translation, other income and expenses Selling price Volume Gross profit in Chemical (Billion yen) Other cost of sales • In the GC Business, operating income increased substantially due to significant growth in volume, together with the contribution from increased sales of high-value-added products and selling price adjustments. • Achieved an increase in operating income of approx. 17.5 billion yen through improved earning power. FY2024 Operating Income H&PC (8.0) ＋6.5 ＋8.5 Cosmetics (0.5) ＋2.5 +7.0 TCR Change in product mix Increase in logistics costs Structural reform of human capital Structural reform of human capital Increase in personnel expenses Marketing investment FY2025 Operating Income Approx. 17.5 billion yen Earning power billion yen+17.4 billion yen（Like-for-like growth））（+24.7 * *Excluding the impact of one-time income and expenses in 2024 (+7.2 billion yen). Breakdown of main items: 1) Gain on transfer: pet care business +4.3 billion yen, beverage business +6.3 billion yen 2) Structural reform expenses for subsidiaries in the Americas and Europe (3.4) billion yen GC Business Gains on transfer, etc. (FY2024)
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14 • Launches of high-value-added products, cost reduction activities and other measures offset the impact of rising raw material prices. • Growth in the Cosmetics Business also contributed, resulting in an improvement of 1.5 pts, substantially exceeding the target. 40.4 35.4 37.3 39.2 39.6 32.0 34.0 36.0 38.0 40.0 42.0 2021 2022 2023 2024 2025 (％) (FY) Gross Margin +1.5pts Selling price increases (promotion of high-value- added products/price hikes)： +0.9 pts Cost reductions, etc. (including product mix differences)： +1.4 pts Rising raw material prices： (0.8) pts ● ● ● Target improvement rate +1.0 pts/year ＞ GC Business Gross Margin Consolidated gross margin (YoY) +0.4 pts Further Improvement of Earning Power Gross margin for FY2023 represents "core gross margin."
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15 • Responding to a market with increasingly polarized consumption by offering value in both high premium and mass-market price segments to achieve sustainable growth. (1.0) (0.5) 0.0 0.5 1.0 1.5 21 22 23 24 25 26 Jn Fe MaAp My Jn Jl Au Se Oc No De Jn Fe MaAp My Jn Jl Au Se Oc No De Jn Fe MaAp My Jn Jl Au Se Oc No De Jn Fe MaAp My Jn Jl Au Se Oc No De YoY change Share Kao’s Share of the H&PC Market (Japan) Share( ％) YoY change (%) 2024 (Month) Household Products / Japan INTAGE, Inc. SRI+ KAO + NIVEA From July 2023 30 consecutive months of YoY growth 20232022 2025 Representative Brands In-bath hair careLaundry detergents Kitchen care INTAGE, Inc. SRI+ Jan.-Dec. 2025 YoY change 46% share +2.0pts YoY High Premium Segment Mass-market Price Segment Creating markets with new value Expanding the customer base A Steady Path toward Sustainable Growth 52% share +1.0pts YoY 14% share +1.3pts YoY Loyal customers Repeat customers Trial customers Strong base of loyal customers Customer Composition
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16 113 % Six Focus Brands Japan Business Achieve both growth and profitability improvement Accelerated Growth of Six Focus Brands YoY sales growth Business Streamlining Reduction of fixed costs (4.3) 118 % 109 % Cultivating Locally Produced Products Selling price of freeplus mild soap As planned Sell-out Expansion Strengthening Presence in Europe GMV at Tmall cosmetics brand flagship stores Kao: Total of Curél and freeplus 104% China Business Reorganization Laying the foundation for global growth Reorganizing the Cosmetics Business to Achieve Profitable Growth and Promoting Globalization Unofficial E-commerce stores Selling Price Recovery YoY selling price increase All figures are for FY2025. Sales Expansion in ASEAN YoY growth of six focus brands 116% Note: 126% in Thailand • Operating income exceeded 10.0 billion yen. The Japan business achieved profitability. 1.8 2.0 2.0 YoY sales growth in directly operated e-commerce YoY sales growth times times Promoting Integrated Operations in Asia YoY growth YoY sell-out growth times Sell-out amount in e-commerce of Curél serum A Stronger Base in the Channel billion yen YoY sales growth Approx.Approx. (Market: 100%) INTAGE Inc. New SLI (Market: 99%)Kao
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17 Strengthening the GC Business outside Japan: Results in FY2025 • Strengthened brands and made progress in category development in major markets outside Japan, focusing on cosmetics and skin protection. ＋9％ ＋8％ ＋1％ 売上 YoY sales growth GC Business outside Japan Operating income (FY2025) 26.5 billion yen etc. Asia Europe Americas Asia Sales High single- digit growth＋2％ Bioré UV （Skin protection） Cosmetics JERGENS Base （Skin care） Laurier （Sanitary products） Europe Americas Asia Americas Asia Strengthened global collaboration to drive the “three strategic expansion models". Promoted differentiation through evidence-based marketing. Achieved expanded distribution in strategic retail chains. Since August, new product launches and strengthened digital initiatives have significantly increased brand awareness among younger consumers. A first step toward brand renewal. Implemented area-specific strategy and loyalty marketing. Improved investment efficiency, and achieved profitable growth. (Jul.-Dec.：+4％) Operating Income Approx. 1.4x Double-digit operating margin Share of above brands in FY2025 operating income Operating income mix: approximately 70%
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18 • ROIC improved in all three business areas. Kao Group ROIC was 9.7%. Improvement Results for Capital Efficiency and Profitability by Business Area (vs. FY2024 Results) Stable Earnings Growth Driver Business Transformation Total Fabric care and Home care Personal health Skin care Cosmetics Business Connected (Commercial-use hygiene products) Chemicals Sanitary Hair care (Including products for hair salons) Sales Growth Rate +3.5% +5.1% (0.3)% +3.7% Improvement in Operating Income (Like-for-like growth1) +6.7¥bn +4.9¥bn (+11.2¥bn) +4.2¥bn (+5.1¥bn) +17.4¥bn (+24.7¥bn) Improvement in ROIC +1.4pts +0.1pts +1.1pts +0.5pts 3. A portion of expenses were allocated as corporate expenses. (vs. FY2024) 2. Business-area ROIC is an internal indicator for strengthening management in each business. Focused on improvement rates, it is calculated using operating assets such as inventory and fixed assets as invested capital in the denominator. Consolidated ROIC is positioned as a major KPI for the overall Kao Group. It is calculated using invested capital based on the Consolidated Statement of Financial Position in the Annual Securities Report as the denominator. 1. Excluding the impact of one-time income and expenses in 2024 (+7.2 billion yen). Breakdown of main items: 1) Gain on transfer: pet care business +4.3 billion yen, beverage business +6.3 billion yen 2) Structural reform expenses for subsidiaries in the Americas and Europe (3.4) billion yen 2 3 4. ¥bn : Abbreviation for Japanese yen in billions
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03 FY2026 Forecast
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20 Billion yen FY2025 FY2026 Growth Forecast Growth Change Net sales 1,688.6 +3.7% +0.0% +3.7% 1,750.0 +3.6% +0.4% +3.2% +61.4 +7.8 +53.6 Operating income Operating margin(%) 164.1 9.7% +11.9% - 182.0 10.4% +10.9% - +17.9 +0.7pts Income before income taxes 169.8 +12.5% 185.0 +8.9% +15.2 Net income attributable to owners of the parent 120.1 +11.4% 130.0 +8.3% +9.9 EBITDA (Operating income + Depr. & Amort.) 249.9 +6.3% 270.0 +8.0% +20.1 ROE (%) 11.3% - 12.0% - +0.7pts Basic core earnings per share (yen) 260.30 +12.2% 287.41 +10.4% +27.11 Cash dividends per share (yen) 154.00 - 156.00 - +2.00 FY2026 Forecast Effect of currency translation Like-for-like growth 1. Exchange rate assumptions: 150 yen/USD 175 yen/Euro 21 yen/Yuan 2. These figures do not take into account the impact of the 2-for-1 ordinary share split scheduled to take effect on July 1, 2026. 1 2 2
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21 Billion yen Japan Outside Japan Consolidated Overview of Initiatives Like-for-like Like-for-like Like-for-like Hygiene Living Care Business 424.0 1.5% 133.0 0.0% 557.0 1.1% In Fabric & Home Care, establish the dominance of core products and create new usage habits. In sanitary products, prioritize stabilizing profitability. Health Beauty Care Business 239.0 6.2% 222.5 6.4% 461.5 6.3% Expand growth drivers (year-round promotion, entry into new countries, and high-premium and Asia-specific colors) and transform the salon business model. Cosmetics Business 183.0 3.4% 88.5 4.9% 271.5 3.9% Implement the three strategic expansion models outside Japan and strengthen channel strategies (e-commerce and drugstore self- selection). Business Connected Business 40.0 3.1% 0.5 20.0% 40.5 3.2% Achieve sustainable growth by strengthening proposals of high-value- added solutions in the core food service business. GC Business 886.0 3.2% 444.5 4.1% 1,330.5 3.5% ー Chemical Business* 146.0 1.0% 320.0 2.8% 466.0 2.2% Expand sales and acquire new customers by capturing recovery in demand, mainly for oleo chemicals, while nurturing businesses that will become future sources of earnings. Consolidated 992.0 3.0% 760.0 3.6% 1,750.0 3.2% 《GC Business sales outside Japan》 Asia 216.0 1.6% Americas 127.0 6.1% Europe 101.5 7.2% Key Points of FY2026 Sales Forecast by Segment * Net sales of the Chemical Business include intersegment transactions Sales by geographic region are classified based on the location of the sales recognized. • Expecting continued rapid progress from hair care in Japan, and growth of cosmetics and skin care outside Japan.
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22 Japan-origin Global Expansion: Curél’s Full-scale Rollout in Europe and the Americas Strengthening Priority Businesses outside Japan: Key Focus for FY2026 Global Expansion of the Bioré Brand Asia Model Global Expansion: Building a Thailand-led Success Model Sales in Thailand （KANEBO/KATE) Building a Stronger Earnings Base and Expanding Priority Areas Skin care × Global Expanding Younger Users through Brand Renewal Cosmetics × Europe Chemicals × Global Cosmetics × Asia Skin care × Americas Double-digit growth well exceeding the market Double-digit sales growth Growth exceeding the market ・Strengthening social media communication World map image provided by PIXTA Sales in growth areas such as electronic materials including semiconductors 10+ Double-digit YoY growth ・Establishment of a three-regional production structure for tertiary amines (US, Europe, and Asia) Number of countries for expansion in FY2026 Double-digit growth in the Americas and Europe The Americas and Europe Asia Expansion through wide rollout including new cleansing products
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23 Outlook for Raw Material Prices in FY2026 (GC Business vs. FY2025) • After a negative YoY impact, the pricing impact is expected to turn positive for the first time in six years. • Cumulative cost increases of approx. 56.0 billion yen since FY2021 are expected to be absorbed through selling price adjustments in line with high-value-added products and cost reduction initiatives. Natural fats and oils Petrochemical raw materials Petrochemical packaging materials Inorganic materials and others Paper and cardboard Energy costs and others ■ ■ ■ ■ ■ ■ Forecast for FY2026 (vs. FY2025) ＋3.0 billion yen Q1 Q2 Q3 Q4 油脂 石化原料 石化包材 無機他 紙・パルプ エネルギー他 Cumulative Increase in Raw Material Prices (Base year: FY2021) Q1 Q２ Q3 Q4 2026年見込 30億円 のグラフに変える 21 Q2/22 Q4/22 Q2/23 Q4/23 Q2/24 Q4/24 Q2/25 Q4/25 Q2/26 Q4/26 Energy, etc. Packaging material Raw materials Cumulative: approx. (56.0) billion yen （FY）
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24 Forecast of Factors in Operating Income in FY2026 (vs. FY2025 Results) • Plan above-market volume growth, mainly led by hair care in Japan and UV care in the Americas. • Mitigate the impact of rising personnel and logistics costs by proactively adjusting selling prices aligned with high-value-added products. • Aim to achieve profit growth of more than 17.0 billion yen through improved earning power. 10.0 18.0 7.0 6.0 164.1 3.0 (25.5) (0.6) 182.0 More than 17.0 billion yen Earning power H&PC ＋4.0 ＋8.5 ＋14.0 Cosmetics (1.0) ＋1.5 +4.0 Raw material prices SG&A expenses Impact of currency translation, other income and expenses Selling price Volume Gross profit in Chemical Other cost of sales GC Business (Billion yen) FY2025 Operating Income FY2026 Operating Income TCR Changes in product mix Increase in logistics costs Increase in personnel expenses Marketing investment
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25 K27 Progress (Billion yen) FY2023 Results ROIC 4.1% EVA 14.9 Operating Income 114.7 Sales outside Japan 655.8 FY2024 Results 9.2% 33.2 146.6 705.5 FY2027 Targets 11.0% or more 70.0 or more Record-high operating income (FY2019 211.7 billion yen) 800.0 or more (Sales CAGR+4.3％) FY2025 Results 9.7% 41.1 164.1 725.2 • Progressing as planned toward achieving the targets of K27. 2 FY2026 Forecasts 10.5% 51.0 182.0 760.01 1. Sales outside Japan are based on the location where the sales were recognized. 2. Core operating income
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26 K27 Progress 110.1 146.6 114.7 164.1 100.0 150.0 200.0 2022 2023 2024 2025 2026 2027 ( 139.4) Operating Income Operating Income （¥bn） 7.8% 4.1% 9.2% 9.7% 14.7 14.9 33.2 41.1 0.0 70.0 0% 11% 2022 2023 2024 2025 2026 2027 EVA ROIC and EVA EVA (¥bn1 ) 70.0 ¥bn or more ROIC （%） 11% or more Record-high operating income 211.7 ¥bn or more Forecast 182.0 Forecast 51.0 ¥bn Forecast 10.5% ROIC Forecast TargetForecast Target +24.7 +24.7 1. Abbreviation for Japanese yen in billions 2. FY2023 figures are calculated based on core income. 3. Excluding the impact of one-time income and expenses in 2024 (+7.2 billion yen). Breakdown of main items: 1) Gain on transfer: pet care business +4.3 billion yen, beverage business +6.3 billion yen 2) Structural reform expenses for subsidiaries in the Americas and Europe (3.4) billion yen 3 2 • Leverage the growth foundation built to date to expand growth in stages starting in FY2026.
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27 Approach to Capital Allocation Underpinned by its capacity to generate over 200 billion yen in operating cash flow annually, the Kao Group will conduct disciplined capital allocation prioritizing investments that contribute to stronger competitiveness and business expansion going forward. 1. Investments that contribute to enhancing future competitiveness, such as investments for maintaining and strengthening the business foundation (including replacement investment), capacity expansion, and digital transformation (DX). Includes expenditures for repayment of lease liabilities. 2. Measures aimed at strengthening and transforming the business portfolio as well as capturing discontinuous growth opportunities. approx. 40% approx. 30% approx. 30% ✓ Using EVA as its common language for making capital allocation decisions, the Kao Group will • Emphasize value creation that exceeds the cost of capital in strategic investment and M&A. • Avoid holding surplus cash over the long term, keep the equity ratio at or below its current level, and utilize debt financing as necessary for M&A. • Flexibly deploy share repurchases from the perspective of improving capital efficiency when investment opportunities in strategic investments expected to generate value in excess of the cost of capital are temporarily limited. ✓ The allocation outlined above is not fixed, but will be managed flexibly and in a disciplined manner within a defined range, taking into account the business environment, investment opportunities, and capital efficiency. ⚫ Strategic investments including M&A (also including share repurchases) ⚫ Capital expenditures for future growth1 ⚫ Steady and continuous dividend increases 【Allocation Guideline】
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04 Mid-term Plan “K27” Progress and Beyond 1) K27 Progress 2) Pathways for further growth 3) Digital Transformation to Build a Foundation for Business Growth 4) Advancing Dialogue-based Management
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29 Progress of Portfolio Management and Vision for K27 Stable Earnings 成長ドライバー領域 Business Transformation Skin Care Chemical Business Cosmetics Hair Care Business Connected Business (Commercial-use hygiene products) Fabric ＆Home Care Personal Health Sanitary products 29 Sanitary products Products for hair salons Global Growth Growth Driver Focus Areas 1st Japan 2nd Asia In - bath (high premium) Approx. 8 x （ Bioré UV ) Skin protection business ＋ 8 ％ Asia sanitary napkins business ＋ 9 ％ Business outside Japan ＋ 8 ％ Chemicals for semiconductor manufacturing ＋ 3 9 ％ Oral care business ＋ 7 ％ Fabric care: Japan Sales ＋ 7 ％ 1st Americas and Europe 2nd Asia/Japan 1st Americas 2nd Asia All figures are YoY changes for FY2025.
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30 K27: Key Drivers of Record-High Profit FY2026 2027 Operating Income +30.0 ¥bn (estimate) (182.0 ¥bn → over 211.7 ¥bn) ・Ramped up high value-added businesses -Electronic materials, agrochemicals, etc. ・Increased countries served ・Stepped up rollout of skin protection ・Reviewed the Asia portfolio ・RNA platform business ・Full-scale rollout of the three strategic expansion models outside Japan ・Strengthened channel strategies (e-commerce, drugstore self-selection) ・RNA platform business Global Business Promotion Structure / DX Promotion Cosmetics Maximum with Minimum Growth Potential Earning Power Chemical Skin Care Hair Care
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31 Global Sharp Top Target conditions Global business rollout Exclusive uniqueness Established position in core regions Details Multi-region expansion potential Proprietary technologies and strong brands or distinctive business model Competitive advantage over other companies Indicator Market size and growth Rate in target countries/areas of operation Loyalty rate and profitability in target markets Share of target markets An Indispensable Approach for Achieving K27 and Growth Beyond: Global Sharp Top Strategy “Protect what is essential, remove only what is unnecessary, and precisely control physical properties.” Three Guiding Principles for Technology Precision Selective Cleansing Environment - adaptive Selection Individual Optimal Selection
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32 Silicon wafer Cleaning Film formation Cleaning Resist coating Exposure/Development Etching Resist removal Cleaning Inspection and assembly Note: Processes for removing microscopic metals, organic substances, and other contaminants from silicon wafers Planarization30-40% of the more than 500 steps in semiconductor manufacturing are cleaning processes Advancement of semiconductor manufacturing process 2D structure Miniaturization 3D structure Advanced Package Precision selective cleansing Environment-adaptive selection Individual optimal selection Path to Growth - Rising Demand for Cleaning Backed by Growth of Generative AI and Data Centers
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33 Kao’s 140 Years of Selective Cleansing Technology (Interface Control Technology) Conventional Cleaning Technology Higher-performance semiconductors ↓ Advances in packaging interface optimization technologies ↓ Greater structural complexity and increased difficulty of cleaning Selective Cleansing of Skin ・ No damage to fine structures ・ Preservation of surface properties ・ Highly reliable New Cleaning Technology Complex Structure Precision selective cleansing Environment-adaptive selection Individual optimal selection Selective Washing of Fabrics Selective Cleansing of Semiconductors Path to Growth - Growth in the Electronic Materials Business Powered by Selective Cleansing Technology
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34 Semiconductor Manufacturing Agents (Cleaning agents for semiconductor packaging) Global share 60% (Kao estimate) - Strongly linked to the growth of data centers - Two Consecutive Years of Record Sales Record Income Electronic Materials Business Expanding Investment to Contribute to Technology Innovation ・ Participation in the JOINT3 co-creation-based evaluation platform ・ Establishment of the Fine Cleaning Center in Taiwan ・ Ramping up co-creation with partners K27 Plan to double sales (vs. FY2023) CAGR approx. 20% Other Chemicals CMP slurry agent, Dispersant for ceramic, Immersion Coolant Precision selective cleansing Environment-adaptive selection Individual optimal selection Path to Growth - Growth in the Electronic Materials Business Powered by Selective Cleansing Technology Hard Disk Manufacturing Agents (polishing and cleaning agents) Global share50% (Kao estimate)
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35 Path to Growth - Growth in the Platform Business Backed by Expanding Generative AI and Data-Driven Demand Target Business KPIs Company: Marketing ROI After introduction: >2.0x (Target: 3-4x) Consumers: Matching success rate After introduction: >2.0x Society: Product waste After introduction: <0.5x Index using pre-introduction as 1.0 https://www.rna-co-creation.jp/ Message above from the RNA Co-creation Consortium • Say goodbye to guesswork. Knowing yourself is the smarter way to buy. • Too many people get trapped in a cycle of buying product after product, only to find that none of them truly suit. The result? Confusion, wasted money, and frustration. We’re here to change that. • Using RNA science to help understand your body’s condition at any particular time opens up a whole new way of making choices—one where you can confidently select what genuinely works for you, and only what truly matters. • Empowering people to choose beauty and health that reflect who they really are won’t just change their lives—it will reshape the future of society. • Backed by the proven science of RNA, a revolution is beginning. A revolution in truly knowing ourselves. Precision selective cleansing Environment-adaptive selection Individual optimal selection Shift the competitive axis from price and shelf space to scientific reproducibility and data
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36 ■Need for a New Metric •Even highly rated cosmetics may not suit an individual •The same skincare routine can feel effective one day and less so the next The problem is that the same criteria are used even as skin conditions change ■The Skin Gene Mode Concept •Not discernible through appearance or touch •Reflecting environment, lifestyle, and other conditions A metric for understanding the skin’s current underlying state ■A Metric Developed from Precision Data •Analysis of gene expression data from more than 2,000 RNAs in skin surface lipids •Original AI image analysis based on highly detailed RNAs data from over 5,000 individuals and more than 10,000 bare-skin images •Skin Gene Mode is identified from bare-skin photos taken using a smartphone ■Essential Qualities of the Metric •Skin Gene Mode fluctuates in approximately 60% of individuals •Designed to be checked regularly rather than identified once and done with •A guideline for selecting skin care based on understanding the skin’s current underlying state rather than on assumptions about what may work A New Skin Metric Derived from RNA Research That Reveals “Who I Am Right Now” Path to Growth - Skin Gene Mode Precision selective cleansing Environment-adaptive selection Individual optimal selection
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37 Product(1) C1 success probability：85% C2 success probability：42% C2：34%C1：6% C1：66% C2：52% C1 C2 C1 C2 C1 C2 Competitive advantage: Matching accuracy based on accumulated comprehensive data Profitability: An LTV-driven data accumulation model based on estimation of skin type Path to Growth - RNA Platform Business Understanding Skin Gene Modes Reveals the Probability of Success in Skin Care • Increase the precision of skin suitability through a range of products and recommend products for each suitability group. • Identify product combinations for each suitability group and develop products even better adapted to those groups. • Share of consumer reviews reporting perceived skin improvement LTV: Life Time Value Precision selective cleansing Environment-adaptive selection Individual optimal selection Product(2) Product(3) Success probability*
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38 Value Offering Visualizes the skin’s underlying state to continuously propose optimal solutions tailored to its current condition SOFINA SYNC+ Using RNA and Stratum Corneum Research to Deliver Optimal Solutions for Ever-changing Skin Core Technology (Exclusive Uniqueness) Skin_surface_lipid RNA monitoring combined with AI-based image analysis (Skin Gene Mode) Product “A serum that responds to the skin” An activating pre-serum (C1/C2) that synchronizes with changes in the stratum corneum THE ANSWER PROGRAM Evolving Hair Care from One-time Purchases to a Continuous, Data-driven Model Path to Growth – New Offerings That Address Individual Characteristics of Skin Value Offering Combining analysis, science and continuity for ongoing updates to optimized personal care Core Technology (Exclusive Uniqueness) A reproducible analytical algorithm based on four dimensions and 16 hair types Product “Combination Insight” Hair care designed through “combination insight” based on analytical results Scheduled launch Monday, March 2 Precision selective cleansing Environment-adaptive selection Individual optimal selection
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39 Path to Growth - Confronting the Limits of Sustainability in Washing ✓ Palm olein ✓ Palm stearin 95% 5% ✓ Palm kernel ✓ Coconut Soybean Rapeseed Oil palm Sunflower Precision selective cleansing Environment-adaptive selection Individual optimal selection Source: OIL WORLD, 2023 (July 2022–June 2023) World's First (Kao) ・New surfactant properties ・Eliminate EO, Dioxane ・Low-cost raw material New High-Performance Surfactant Bio IOS C12,14 Lauric Oleo Chemicals C16,18 Oleic-Stearic Oleo Chemicals Main surfactant raw materials Production Volume of the 8 Major Oleo Chemicals 210 million tons / year Main demand is for cooking oil Restricted to food use, industrial applications
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40 Continue to enhance environmental compatibility and economic value while creating new, high-value-added products. Path to Growth – Achieving Both Sustainability and Economic Rationality V Attack ZERO (Laundry detergent) Attack Antibacterial EX (Laundry detergent) Bioré The Body Totonoihada (Body wash) Merit Osolo (shampoo) Representative product New/high value-added High-speed cleaning performance Ultra hydrophilic surface coating Selective sebum cleansing technology Protection through hair- beautifying ingredients CO2 Emissions1 (37%) ー4 (29%) ー4 Renewable carbon ratio1 ＋15% ー4 ＋7% ー4 Price per unit volume2 2.6x 1.1x 2.2x ー4 Contribution to net sales3 25% 1.6% 4% 1.3% New surfactant Bio IOS 1 Compared to product formulations before incorporating Bio IOS 2 Compared to category core products (as of 2025) 3 Percentage share of sales within same category of the brand in 2025 (Bioré Totonoihada: 9 months following launch in Apr. 2025; Merit Osolo: 3 months following launch in Oct. 2025) 4 No product is available for comparison, as this is a new offering within the same brand. Precision selective cleansing Environment-adaptive selection Individual optimal selection
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41 Maximum Minimum with High added value Low social negative impact Precision selective cleansing Environment-adaptive selection Individual optimal selection Path to Growth – Kao’s Approach to ESG Positioning ESG not as a cost or corporate citizenship, but as a competitive edge and revenue stream backed by exclusive uniqueness Going beyond the ability to address environmental issues, to making that our competitive edge A forward-looking strategy treating ESG as “future-financial” rather than “non-financial” Resource and energy efficiency Low environmental impact Low cost High performance High quality High circularity Kao’s approach to sustainability
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42 Toward Achieving K27 and Beyond Aiming for further growth with three technologies with exclusive uniqueness as our core Precision Selective Cleansing Environment - adaptive Selection Individual Optimal Selection
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43 Digital Transformation Progress and Achievements: Initiatives to Build a Foundation for Business Growth and Create Value Business Growth Value Creation Management Base Core System AI Utilization DX Talent 5,000 per day Skin Diagnostics In-house Utilization of Information Utilization of Consumer Feedback 142% D2C Business AI Demand Forecasting More than 100,000 users 38% reduction Six cosmetics focus brands D2C sales in Japan Skin care diagnosis recipients (since July 2025) RNA Co-creation Evaluation categories (vs. previous methods) 60% reduction in information collection （Social listening tool） Total DAU by Tool (Non-Unique / Aggregate) Cosmetics in Japan SAP S/4HANA Kirei skin AI: Kao’s proprietary AI technology for skin evaluation enables highly accurate analysis of not only the skin’s outward appearance but also infers its internal condition, based on a single facial image. YoY sales growth 5-fold increase to77 categories (estimate vs. conventional methods) More than 800 users in over 10 countries 97 companies in 29 countriesScope: More than 4,700 citizen developers • AI-centric initiatives that strengthen the management base and create value are contributing to business growth.
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44 An External Expert’s Evaluation of Kao’s DX Hirofumi Suzuki President and Representative Director, SAP Japan Co., Ltd. Kao is a highly advanced company that utilizes SAP S/4HANA not merely as a core system upgrade, but as a decision-making platform that supports ROIC-based management and ESG management. While steadily rolling out SAP S/4HANA across its 97 companies in 29 countries, the Kao Group has further expanded application of the system to business process standardization and greater data utilization in its business operations and management. I consider these to be exemplary initiatives on a global scale. Alice H. Chang CEO and Founder, Perfect Corp. I am particularly impressed that Kao does not use AI as a showcase experience, but rather as a platform for bringing together skin science and consumer understanding. The company’s end-to-end approach, seamlessly connecting research, product development, and customer experience, is one of the few global- level examples where AI has been elevated to a driver of genuine value creation in the cosmetics industry. Miki Tsusaka President, Microsoft Japan Co., Ltd. Kao is a corporate leader in implementing DX throughout its organization, from frontline operations to top management. Centered on a data lake built on Microsoft Azure, Kao has established Group-wide, global infrastructure, and through a network of 4,700 citizen developers leveraging its Power Platform, enables all employees—including the executive team—to actively develop and utilize data, AI, and AI agents. This has resulted in numerous successful use cases and is driving business transformation across the organization.
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45 Advancing Dialogue-based Management • With a view to achieving the K27 targets and growth beyond, the management structure continues to evolve [Career summary] Apr. 1989 Joined P&G Far East, Inc. (currently, P&G Japan G.K.) Sep. 2008 President, Procter & Gamble Korea, Inc. Jun. 2012 President, P&G Japan Limited Nov. 2016 Feb. 2021 Senior Corporate Officer - Marketing, Ezaki Glico Co., Ltd. Representative of a global IT company (current) Leveraging his management and marketing experience at global consumer goods and IT companies, Mr. Okuyama will contribute to the oversight of Kao’s overall management, including its growth strategies, human capital initiatives, and DX initiatives. Leveraging her expertise in corporate and industry research and her deep understanding of capital markets, Ms. Sato will provide strategic advice to management, enhance the quality of dialogue with investors, and contribute to building a robust internal knowledge infrastructure. [Expected roles] [Expected roles] Shinji Okuyama Outside Director (Candidate) Wakako Sato Executive Fellow [Career summary] Apr. 1992 Joined The Sumitomo Trust & Banking Co., Ltd. May. 1994 Began equity research analyst coverage Jun. 2006 Mizuho Securities Co., Ltd. May 2019 Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. Jan. 2024 Managing Director, Morgan Stanley MUFG Securities Co., Ltd. Jan. 2026 Executive Fellow, Kao Corporation (current) Nikkei Veritas Analyst Rankings (2017–2025): No. 1 in Toiletries & Cosmetics/Extel (formerly Institutional Investor) (2019–2025): No. 1 in Cosmetics & Personal Care
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46 K27 Progress (Billion yen) FY2023 Results ROIC 4.1% EVA 14.9 Operating Income 114.7 Sales outside Japan 655.8 FY2024 Results 9.2% 33.2 146.6 705.5 FY2027 Targets 11.0% or more 70.0 or more Record-high operating income (FY2019 211.7 billion yen) 800.0 or more (Sales CAGR+4.3％) FY2025 Results 9.7% 41.1 164.1 725.2 • Progressing as planned toward achieving the targets of K27. 2 FY2026 Forecasts 10.5% 51.0 182.0 760.01 1. Sales outside Japan are based on the location where the sales were recognized. 2. Core operating income
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47 ✓ In Japan, firmly established continuous market share expansion and earning power. Outside Japan, clearly identified key areas of improvement and entered a phase in which early signs of growth have begun to emerge. FY2025 Results FY2026 Key Initiatives / Path to Growth Key Highlights Capital Allocation / Shareholder Returns ✓ FY2026 Plan: Dividends (planned): 37th consecutive fiscal year of increases in dividends (on a pre-share split basis) Share split: 2-for-1 share split of ordinary share, effective July 1, 2026 ✓ Accelerate the expansion of businesses with growth potential and the turnaround of businesses facing challenges to achieve K27 and drive growth beyond. ✓ FY2025 Results: Share repurchases totaling 80.0 billion yen and retirement of shares ✓ Clarification of the Approach to Capital Allocation - Enhanced competitiveness of GC business in Japan: The Kao Group’s share of Japan’s H&PC market has grown YoY for 30 consecutive months. - Focus on growth businesses: Substantially increased sales and operating income in the Cosmetics Business, accelerated initiatives in the skin protection business in the Americas and Europe, as well as other businesses. - Improved earnings quality: Increased earning power through promotion of high-value-added products and cost reductions. Firmly established ROIC-centered business portfolio management. - FY2026 Key initiatives: Improve earning power, including selling price adjustment; expand the GC Business outside Japan; enhance a global promotion framework - Path to growth: Three key technologies - precision selective cleansing, individual optimal selection, and environment-adaptive selection
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48 ➢ Briefing on Marketing Strategy ➢ Briefing on Research and Development Strategy FY2026 Main Upcoming Events (Scheduled)
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05 Appendix
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50 90 100 110 120 Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. 90 100 110 120 Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. vs. previous year Oct. Nov. Dec. Q4 H&PC total 103 105 101 103 Laundry detergents 108 110 106 108 Fabric softeners 103 105 101 103 Bath cleaning products 104 104 99 102 Sanitary napkins 101 102 99 101 Baby diapers 101 104 99 101 Sunscreens 108 109 108 108 Hand soaps 103 107 101 104 Hand sanitizers 107 157 104 120 Bath additives 105 106 99 103 Growth of H&PC Market （％） 25 Q3 103 25 Q4 103 25 Q1 103 25 Q3 99 25 Q4 99 25 Q1 101 25 Q2 102 25 Q2 104 2025 2025 vs. previous year Oct. Nov. Dec. Q4 Cosmetics total 100 100 98 99 Skin care products 102 100 99 100 Facial cleansers/ Makeup removers 98 103 100 100 Lotions/emulsions/creams 105 101 97 101 Serums 100 100 102 101 Makeup products 95 100 96 97 Makeup bases 96 100 96 98 Point makeup products 94 99 96 96 Other 109 98 107 104 Sunscreens 108 109 104 107 Consumer Products Market in Japan Growth of Cosmetics Market Market Growth Rates of Major Categories Market Growth Rates of Major Categories （％） 26 categories, New SLI2 Market growth rate in value terms 87 categories, SRI+1 Market growth rate in value terms 1. SRI+: Estimates based on POS data from approx. 6,000 retail outlets in Japan 2. New SLI: Estimates based on a panel survey of approx. 40,000 consumers in Japan (Source: INTAGE Inc. )
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51 Market growth rate in value terms (% vs. previous year) China (including e-commerce) Indonesia Thailand 25 Q1 25 Q2 25 Q3 25 Q4 25 Q1 25 Q2 25 Q3 25 Q4 25 Q1 25 Q2 25 Q3 25 Q4 Baby diapers - - - - 95 95 95 97 86 86 79 83 Sanitary napkins and panty liners 105 104 103 96 107 104 103 105 101 101 101 103 Laundry detergents - - - - 102 102 102 102 99 100 101 104 Sunscreens - - - - - - - - 102 92 97 96 House cleaning products - - - - - - - - 93 96 96 100 Market growth rate in value terms (% vs. previous year) U.S. U.K. Germany 25 Q1 25 Q2 25 Q3 25 Q4 25 Q1 25 Q2 25 Q3 25 Q4 25 Q1 25 Q2 25 Q3 25 Q4 Hair care 105 105 105 104 107 108 107 107 105 106 106 108 Facial care products 102 104 107 105 - - - - - - - - Self tanning 108 101 107 116 - - - - - - - - Hand and body lotions 112 106 106 109 - - - - - - - - Kao’s Main Markets outside Japan Asia Americas and Europe Source: NielsenIQ Source: Circana
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52 Global Consumer Care Business: Results by Geographic Region Net sales Operating income Operating margin Billion yen FY2024 FY2025 Growth Like-for- like FY2024 FY2025 Change FY2024 FY2025 Change Japan 823.2 858.5 4.3% 4.3% 89.0 106.5 17.6 10.8% 12.4% 1.6pts Asia 212.5 210.8 (0.8%) (0.2%) 16.7 18.7 2.0 7.8% 8.9% 1.0pts Americas 123.9 119.9 (3.2%) (1.6%) 6.6 5.7 (0.9) 5.3% 4.7% (0.6pts) Europe 93.3 93.8 0.6% (2.3%) (0.5) 2.2 2.7 (0.5%) 2.4% 2.9pts Outside Japan 429.6 424.4 (1.2%) (1.1%) 22.8 26.5 3.8 5.3% 6.3% 1.0pts GC Business 1,252.8 1,283.0 2.4% 2.5% 111.7 133.1 21.3 8.9% 10.4% 1.5pts Sales by geographic region are classified based on the location of the sales recognized. Net sales growth rates of major companies (Like-for-like %) Kao China: 12.9% Kao Taiwan: (9.7%) Kao Vietnam: 8.2% Kao Indonesia: (9.3%) Kao Thailand: (0.6%) Kao Hong Kong: 2.4%
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53 ✓ The dividend forecast for FY2026 is 156 yen per share, an increase of 2 yen from the previous fiscal year. ➢ Scheduled to be the 37th consecutive period of dividend increases (on a pre- share split basis). Shareholder Returns and Share Split Shareholder Returns Share Split ✓ The Kao Group is scheduled to split its ordinary share at a ratio of 2 for 1, effective July 1, 2026. ➢ By lowering the investment unit price and creating a more accessible investment environment, the Kao Group aims to expand its investor base. *This amount does not take into account the impact of the 2-for-1 ordinary share split scheduled to take effect on July 1, 2026. For the fiscal year ending December 31, 2026, the Kao Group plans to pay a second quarter-end dividend of 78 yen per share prior to the share split and a year-end dividend of 39 yen per share after the share split. *
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54 ESG Evaluations by external organizations Kao's ESG activities which are highly rated by external organizations External Evaluations and Recognitions The only company in Asia that has been recognized for 19 consecutive years 19 consecutive years: Only 6 companies worldwide Selected as one of “World’s Most Ethical Companies®” Commended by Prime Minister Highest rating Certified 10 times 9 consecutive years Certified in 2016 Commended by Minister of Economy, Trade and Industry SilverHighest rating for 8 consecutive years Certified as Prime Top 15%Top 10% As of January 2026 SRI indexes 2 consecutive years 8 consecutive years 18 consecutive years 9 consecutive years 4 consecutive years 8 consecutive years 3 consecutive years * *“World's Most Ethical Companies” and “Ethisphere” names and marks are registered trademarks of Ethisphere LLC. • MSCI https://www.msci.com/our-solutions/sustainable-investing • FTSE https://www.lseg.com/ja/ftse-russell/indices • Morningstar® Japan Ex-REIT Gender Diversity Tilt Index: Morningstar, Inc., and/or one of its affiliated companies (individually and collectively, “Morningstar”) has authorized Kao corporation to use of the Morningstar® Japan ex-REIT Gender Diversity Tilt Index Logo (“Logo”) to reflect the fact that, for the designated ranking period, Kao corporation ranks within the top group ofcompanies comprising the Morningstar® Japan ex-REIT Gender Diversity Tilt Index (“Index”) on the issue of gender diversity in the workplace. Morningstar is making the Logo available for use by Kao corporation solely for informational purposes. Kao corporation’s use of the Logo should not be construed as an endorsement by Morningstar of Kao corporation or as a recommendation, offer or solicitation to purchase, sell or underwrite any security associated with Kao corporation. The Index is designed to reflect gender diversity in the workplace in Japan, but Morningstar does not guarantee the accuracy, completeness or timeliness of the Index or any data included in it. Morningstar makes no express or implied warranties regarding the Index or the Logo, and expressly disclaims all warranties of merchantability or fitness for a particular purpose or use with respect to the Index, any data included in it or the Logo. Without limiting any of the foregoing, in no event shall Morningstar or any of its third party contentproviders have any liability for any damages (whether direct or indirect), arising from any party’s use or reliance on the Index or the Logo, even if Morningstar is notified of the possibility of such damages. The Morningstar name, Index name and the Logo are the trademarks or services marks of Morningstar, Inc. Past performance is no guarantee of future results. 9 consecutive years Adopted in 2025
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55 *1: NDPE: No Deforestation, No Peat, and No Exploitation, *2: Actual results as of June 30, 2025, *3: Smallholder Inclusion for Better Livelihood & Empowerment, *4: Actual results as of December 31, 2024 *5: Actual results for fiscal year 2021 Value-Creating ESG • Driving dual pillars of opportunity creation and risk mitigation by addressing environmental and social challenges through business activities while enhancing value for consumers Sustainable Palm Oil Procurement: Mitigating Raw Material Procurement Risks Through Supply Chain Partnerships Aqua Rich Breathable UV Veil Palm Oil Dashboard *1 2025 Pre-release "Bioré UV Aqua Rich Airy Hold Cream" Purchasers in Japan: 108 women aged 20-59, surveyed in April 2025 Aqua Rich Breathable UV Veil *1: “Bioré UV Aqua Rich Airy Hold Cream” 2025 pre-release purchasers in Japan: 108 women aged 20-59 (surveyed in April 2025) UV Care: Adapting to Climate Change While Delivering UV Protection and Comfort Economic value • March 2025 pre-sales reached 1.5x plan, with 89%*1 repurchase intent • Skin Protection Business shipment value at 107% YoY vs. 2024 • Bioré UV offered in 27 countries/regions leveraging proprietary technology Environmental and Social Value • Responding to fluctuations in UV intensity, temperature and humidity driven by climate change addresses conflicting challenges of outdoor heat/humidity and indoor dryness in environments • In addition to existing technology that creates a uniform protective coat, proprietary technology absorbs sweat in hot, humid conditions and releases moisture in dry conditions, reducing stickiness, preventing skin dryness, and reducing burden on the skin • Delivers high UV protection with comfortable skin feel, supporting sunburn prevention and everyday comfort Economic value • Ensuring traceability and enforcing NDPE*1 reduces risk of procurement issues and remediation actions arising from deforestation and human rights issues • SMILE *2 program improves independent smallholder productivity, strengthening supply stability within existing supply chains • Collaboration with third-party organizations and NGOs enabled the establishment of investigation, remediation, and disclosure mechanisms, clarifying the process from issue identification to remediation and supporting a sustainable management system Environmental and Social Value • Securing traceability up to 91% for palm plantations and 99% for mills*3 enables upstream visibility of deforestation and human rights risks • Supporting a cumulative total of 3,489 oil palm smallholders*4 through the SMILE*2 program enhances productivity on existing farmland and promotes RSPO certification • Supported farms have achieved an average yield increase of 56%*5, accelerating the transition to sustainable production without deforestation • Grievance mechanisms aligned with the UN Guiding Principles have been implemented at 309 plantations*3, institutionalizing early response and remediation for human rights violations and land disputes.
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56 Consolidated Net Sales/EBITDA/Operating Income Core income: Income excluding impacts of structural reforms for FY2023 1. As of FY2020, the Kao Group changed its method of recognizing sales for certain transactions from the gross amount to the net amount. 2. FY2023 figures are calculated based on core income. 1,382.0 1,418.8 1,551.1 1,532.6 1,628.4 1,688.6 1,750.0 261.6 230.9 199.8 149.6 235.1 249.9 270.0 175.6 143.5 110.1 114.7 146.6 164.1 182.0 0 100 200 300 0 500 1,000 1,500 Net sales EBITDA Operating income Net sales yen) Operating income (Billion yen) (FY) EBITDA (Billion / 12.7% 10.1% 7.1% 7.5% 9.0% 9.7% 10.4% Operating margin *1 *2
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57 Capital Expenditures 53.5 55.9 60.5 48.2 46.6 52.0 54.0 32.7 31.9 34.1 45.0 46.9 49.1 37.0 86.1 87.8 94.6 93.2 93.5 101.1 91.0 0 20 40 60 80 100 120 Parent Subsidiaries (Billion yen) (FY)
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58 ROE & EPS Net income [J-GAAP] / t [IFRS] (Billion yen) Weighted average number of shares outstanding (Million shares) 492.8 489.1 483.3 480.9 475.5 469.4 464.9 464.6 461.3 452.3 Net income attributable to owners of the parent [IFRS] (Billion yen) 147.0 153.7 148.2 126.1 109.6 86.0 86.0 107.8 120.1 130.0 2. FY2023 figures are calculated based on core income. 3. At a meeting of the Board of Directors held in February 2026, the Kao Group resolved to conduct a share split at a ratio of two shares for each 1. As of FY2020, the Kao Group changed its method of recognizing sales for certain transactions from the gross amount to the net amount. ordinary share, with July 1, 2026, as the effective date. Earnings per share (EPS) for the fiscal year ending December 31, 2026 are presented on a pre-share split basis. EPS for the full fiscal year, adjusted to reflect the share split, would be 143.7 yen. 298.3 314.3 306.7 262.3 230.6 183.3 185.0 231.9 260.3 287.4 19.8 18.9 17.6 14.2 11.6 8.9 4.5 10.5 11.3 12.0 0 10 20 0 100 200 300 400 ROE (%) ROE (%) (FY) *1 *2 EPS (Yen) EPS (Yen) ROE (%) *3
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59 Cash Dividends per Share 31, 2026, presents the planned amount as both 78 yen per share on a pre-share split basis and 39 yen per share on a post-share split basis. * At a meeting of the Board of Directors held in February 2026, the Kao Group resolved to conduct a share split at a ratio of two shares for each ordinary share, with July 1, 2026, as the effective date. The second quarter-end dividend for the fiscal year ending December 31, 2026, for which the record date is June 30, 2026, will be paid based on the number of shares outstanding prior to the share split. The forecast of the year-end dividend for the fiscal year ending December 14 15 16 20 24 26 30 32 38 50 52 54 56 57 58 60 62 64 70 80 94 110 120 130 140 144 148 150 152 154 156 78 0 50 100 150 (Yen)Cash Dividends per Share Increase in dividends for 37th consecutive period in FY2026 (planned) (FY) 39 * *
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60 Shareholder Returns 2. IFRS adopted in FY2016. FY2015 figures are calculations based on IFRS. 1. Fiscal year end changed from March 31 to December 31 in FY2012 (FY2012 results are for the nine-month period from April to December for Group companies whose fiscal year end was previously March 31 and the twelve-month period from January to December for Group companies whose fiscal year end was December 31). 3. FY2023 figures are calculated based on core income. 29.5 28.6 56.8 77.2 36.7 70.0 5.0 30.0 30.0 30.0 50.0 50.0 50.0 50.0 50.0 50.0 80.0 0 50 100 150 Total Dividends Amount of Share Repurchases Net Income (J-GAAP) / Net Income Attributable to Owners of The Parent (IFRS) *1 *2*2 (FY) billion yen773.8Share Repurchases: Aggregate to (Billion yen) *3 10.0 10.0 19.9 29.1 16.0 27.3 2.0 9.3 13.9 10.0 11.5 8.9 6.2 5.8 6.9 9.1 12.2 0 10 20 30 (Million shares) million shares208.2 Share Repurchases: Aggregate to
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61 EVA 2. IFRS adopted in FY2016. FY2015 figures are calculations based on IFRS 3. FY2023 figures are calculated based on core income. 1. Fiscal year end changed from March 31 to December 31 in FY2012 (FY2012 results are for the nine-month period from April to December for Group companies whose fiscal year end was previously March 31 and the twelve-month period from January to December for Group companies whose fiscal year end was December 31) 49.6 50.8 53.3 55.1 54.8 56.4 59.1 62.7 63.8 66.5 69.9 73.5 74.1 77.8 80.0 32.4 39.8 47.6 70.6 58.6 73.4 90.4 93.5 87.4 62.3 45.1 14.7 14.9 33.2 41.1 0 50 100 150 2012 2013 2014 2015 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 (Billion yen) Cost of Capital EVA *1 *2*2 (FY)*3
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62 244.5 214.7 175.5 130.9 202.5 201.6 199.7 (69.8) (175.1) 289.7 353.2 336.1 268.2 291.7 357.7 323.3 (400.0) (200.0) 0.0 200.0 400.0 2019 2020 2021 2022 2023 2024 2025 Net cash flows from operating activities Net cash flows from investing activities Net cash flows from financing activities Cash and cash equivalents at the end of the year Cash Flows (Billion yen) (FY)
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63 Global Consumer Care Business Hygiene and Living Care Business Health and Beauty Care Business Cosmetics Business Business Connected Business Chemical Business Business Segments and Main Product Categories Net sales Operating income Operating margin 1,688.6 ¥bn Share 164.1 ¥bn 9.7 % 549.3 ¥bn 32.5 % 81.3 ¥bn 14.8 % 432.9 ¥bn 25.7 % 39.1 ¥bn 9.0 % 261.6 ¥bn 15.5 % 10.4 ¥bn 4.0 % 39.2 ¥bn 2.3 % 2.3 ¥bn 5.8 % 451.5 ¥bn 24.0 % 30.2 ¥bn 6.7 % • Laundry detergents • Fabric treatments • Kitchen cleaning products • House cleaning products • Paper-based cleaning products • Sanitary napkins • Baby diapers • Skin care products • Hair care products • Professional hair care products • Bath additives • Thermo products • Oral care positives • Counselling cosmetics • Self-selection cosmetics • Commercial-use hygiene products • Oleo chemicals • Performance chemicals • Information materials Main brands +1.1% YoY +3.7% YoY +17.4¥bn YoY +0.7pts +2.2% +6.9% △3.2% 6.9% +0.9pts +0.9pts +5.5pts △7.1pts △1.8pts +5.5¥bn +4.7¥bn +14.1¥bn △3.0¥bn △5.5¥bn • Results for the fiscal year ended December 31, 2025 • ¥bn : Abbreviation for Japanese yen in billions • Year-on-year growth rates for net sales are shown on all like-for-like basis, excluding the effect of translation of local currencies into Japanese yen. • Net sales of the Chemical Business include intersegment transactions. • Operating income of ¥164.1 bn includes corporate expenses and other items not allocated to each segment.
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64 Hygiene and Living Care Business Health and Beauty Care Business Life Care Business Cosmetics Business Chemical Business Hygiene Living Care Business Health Beauty Care Business Business Connected Business Cosmetics Business Chemical Business Kao Professional Services Co., Ltd. Commercial-use hygiene products Washing Systems, LLC 【Consumer Products Business】 【Global Consumer Care Business】 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 Care Business” has been renamed as the “Hygiene Living Care Business.” • The “Health and Beauty Care Business” has been renamed as the “Health Beauty Care Business.” 【New Establishment】 • The “Business Connected Business” has been established to further improve productivity and strengthen both internal and external collaboration for creating new businesses. The business consists of the commercial-use hygiene products that were previously included in the Life Care Business (excluding Washing Systems, LLC), as well as life care products and other products.