Kao Corporation · TSE:4452
Kao — Q3 2026 Earnings Presentation
28 slides from Kao's earnings presentation, Nov 5, 2026
Slide 1: Consolidated Financial Results for the Nine Months Ended September 30, 2026
Consolidated Financial Results for the Nine Months Ended September 30, 2026 Kao Corporation November 5, 2026
Slide 2: Disclaimer
Disclaimer Forward-looking statements such as earnings forecasts and other projections contained in these presentation materials 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 r
Slide 3: Contents
Contents 01 Key Highlights 02 Financial Results for the Nine Months Ended September 30, 2026 03 Appendix
Slide 4: Key Highlights
Key Highlights ✓ Q3 YTD operating income reached 146.5 billion yen (+28.1%). Net sales, net income and EPS* reached record highs. The likelihood of achieving the full-year operating income forecast of 190.0 billion yen has increased. Q3 YTD Operating income Trend （Billion yen） ✓ The GC Business incr
Slide 5: Financial Results for the Nine Months Ended September 30, 2026
02 Financial Results for the Nine Months Ended September 30, 2026
Slide 6: Highlights of Consolidated Financial Results
Highlights of Consolidated Financial Results Billion yen FY2025 Q3 YTD *1 FY2026 Q3 YTD Growth Change Net sales 1,232.0 1,319.3 +7.1% +87.3 Effect of currency translation*4 +4.0% +49.6 Like-for-like growth +3.1% +37.6 Gross profit 481.3 529.4 +10.0% +48.1 Gross margin(%) 39.1% 40.1% - +1.1pts Operat
Slide 7: Highlights of Q3 Consolidated Financial Results (Jul.-Sep.)
Highlights of Q3 Consolidated Financial Results (Jul.-Sep.) Billion yen FY2025 Q3 FY2026 Q3 Growth Change Net sales 423.0 447.4 +5.8% +24.4 Effect of currency translation*2 +3.3% +14.1 Like-for-like growth +2.4% +10.3 Gross profit 169.5 182.2 +7.5% +12.7 Gross margin(%) 40.1% 40.7% - +0.7pts Operati
Slide 8: Key Points of Results and Future Initiatives
Key Points of Results and Future Initiatives Strategic role of FY2026 Further strengthening our sustainable earning power and accelerating the shift to growth. Ensuring the success of K27 and building a foundation for step-change growth thereafter. FY2026 Q3 Results Net sales 1,319.3 ¥bn Operating i
Slide 9: Consolidated Net Sales by Segment/Geographic Region in Q3 YTD
Consolidated Net Sales by Segment/Geographic Region in Q3 YTD • GC Business sales increased 3.4%, driven by strong performance in Japan. Outside Japan, Cosmetics and Health Beauty Care in Asia drove growth. Measures to strengthen the earnings base for growth are being implemented in certain business
Slide 10: Consolidated Results by Segment in Q3 YTD
Consolidated Results by Segment in Q3 YTD • GC Business: Operating income increased across all segments, driven by the promotion of high-value-added products. Price pass-through was also implemented to offset rising raw material costs. The operating margin of the GC Business outside Japan improved t
Slide 11: Q3 Consolidated Net Sales by Segment/Geographic Region (Jul.-Sep.)
Q3 Consolidated Net Sales by Segment/Geographic Region (Jul.-Sep.) • GC Business sales increased 2.0%, driven by Japan. In Asia, both skin care and cosmetics grew by double digits in Thailand, a key market. • Chemical Business sales increased 3.7% due to the continued positive effects of selling pri
Slide 12: Q3 Consolidated Results by Segment (Jul.-Sep.)
Q3 Consolidated Results by Segment (Jul.-Sep.) • GC Business: Operating margin improved by 1.0 pts YoY. • Cosmetics Business: Strengthening of focus brands, profit structure reforms, and growth outside Japan progressed steadily, resulting in operating income growth for seven consecutive quarters. Ne
Slide 13: Analysis of Change in Operating Income in Q3 YTD
Analysis of Change in Operating Income in Q3 YTD (YoY Change) • Selling price increases exceeding rising raw material costs, combined with sales volume growth led by Cosmetics, drove strong profit growth. • Strategic investment in human capital and the effective allocation of marketing investment co
Slide 14: Further Improvement of Earning Power
Further Improvement of Earning Power • Mechanisms to drive gross profit growth, such as the launch of high-value-added products, Total Cost Reduction (TCR) initiatives, and product mix improvements, have become firmly established. Together with price pass-through to offset higher raw material costs,
Slide 15: Kao's Model for Profitable Growth in the GC Business in Japan
Kao’s Model for Profitable Growth in the GC Business in Japan • Amid significant changes in the external environment, Kao continues to achieve profitable growth by accurately capturing changes in consumers’ lifestyles and purchasing behavior and leveraging its unique strengths. Key Market Kao’s Uniq
Slide 16: Further Reinforcing the GC Business in Japan: Q3 YTD Results
Further Reinforcing the GC Business in Japan: Q3 YTD 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 shar
Slide 17: Further Reinforcing the GC Business in Japan: New Product Results
Further Reinforcing the GC Business in Japan: New Product Results • Promote high-value-added products by launching new products that leverage technological capabilities with exclusive uniqueness. • Expand the customer base by entering new price segments and categories. Promote High-Value-Added Produ
Slide 18: Strengthening Focus Businesses outside Japan: Q3 YTD Results
Strengthening Focus Businesses outside Japan: Q3 YTD Results • Achieved steady growth centered on key brands and strategic areas. YoY sales growth Strengthened global collaboration to drive the “Three Strategic Expansion Models.” Europe KATE: Ramped up the promotion rollouts in tandem with Japan sta
Slide 19: Chemical Business - Situation through Q3 and Initiatives for Q4
Chemical Business - Situation through Q3 and Initiatives for Q4 • In Q3 YTD, the effects of selling price adjustments for oleo chemicals and consumer care chemicals in Japan and Asia and growth in sales of performance chemicals and information materials contributed to a continued increase in operati
Slide 20: Impact of Raw Material Prices: Earnings Impact is Now Expected in Q4
Impact of Raw Material Prices: Earnings Impact is Now Expected in Q4 • In the GC Business, raw material prices rose during Q3, but most of the earnings impact is now expected in Q4 rather than Q3. • The Chemical Business is adjusting selling prices and strengthening inventory management to prepare f
Slide 21: Forecast of Factors in Operating Income in FY2026
Forecast of Factors in Operating Income in FY2026 (vs. FY2025 Results) • Earning power is expected to offset the impact of higher raw material costs and increased SG&A expenses, with operating income forecast to increase by 26.5 billion yen for the full year. +26.5 ¥bn (Excluding gain on sale of lan
Slide 22: K27 Progress
K27 Progress ROIC and EVA EVA Operating income Operating Income ROIC （Billion yen） （Billion yen） （%） Forecast *1 Record-high operating 11% or income 211.7 billion yen 10.5% more or more 11% 9.7% 70.0 billion 9.2% yen or more 200.0 70 ROIC 7.8% Forecast *1 190.0 billion yen 163.5 4.1% 41.1 Forecast *
Slide 23: Appendix
03 Appendix
Slide 24: Responsible Sourcing of Raw Materials: Third-Party Review
Responsible Sourcing of Raw Materials: Third-Party Review As explained at the Extraordinary General Meeting of Shareholders in April 2026, we are conducting a review as part of our ongoing efforts to enhance the effectiveness of supply chain governance. The review aims to verify the facts more objec
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 Q4 26 Q1 26 Q2 26 Q3 25 Q4 26 Q1 26 Q2 26 Q3 103 105 104 103 99 98 99 101 110 110 100
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 Q4 26 Q1 26 Q2 26 Q3 25 Q4 26 Q1 26 Q2 26 Q3 25 Q4 26 Q1 26 Q2 26 Q3 Baby diapers - - - - 97 96 92 95 82 76 77 85 Sanitary napkins and panty liners 96 94 9
Slide 27: IFRS 18 Presentation and Disclosure in Financial Statements
IFRS 18 “Presentation and Disclosure in Financial Statements” • IFRS 18 was early adopted in Q1 FY2026. Due to the reclassification of categories, a portion of foreign exchange gains and losses is reflected in operating income. Nine months ended September 30, 2025 (Millions of yen) IAS 1 Reclassific
Slide 28: KAO Kirei-Making Life Beautiful
KAO Kirei-Making Life Beautiful