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Corporate Governance

Achieving higher levels of sound and transparent corporate management

The Company's vision by 2030 is to make Kao a company with a global presence. In addition to financial strategies and initiatives including financial results, non-financial strategies and initiatives should be strengthened and both should interact with each other to allow a company to grow sustainably. Kao has announced that it recognizes ESG (Environment, Society and Governance) initiatives as an investment for the future, not as a cost, and is promoting them. Kao considers good corporate governance as a prerequisite and a driving force for strongly promoting the achievement of such a goal. The Company's basic stance on measures related to corporate governance is to set up and operate a management structure and an internal control system, timely implement necessary measures and achieve accountability so that the Company can swiftly respond to changes, realize efficient management that is sound, fair, and highly transparent, and continuously increase corporate value. The Company views accomplishing such tasks as one of its most important management issues. The Company has been actively engaging in activities to listen to stakeholders' voices and based on input from stakeholders and social trends, it conducts reviews of its corporate governance and implements the necessary measures and improvements, as needed, in an appropriate manner.

Report Concerning Corporate Governance

For further details regarding the corporate governance of Kao Corporation, refer to the Corporate Governance Report as submitted to the Tokyo Stock Exchange.

Standards for Independence of Outside Directors/Audit & Supervisory Board Members

Kao has established the "Standards for Independence of Outside Directors/Audit & Supervisory Board Members of Kao Corporation" to clarify the standards for independence of an outside director/Audit & Supervisory Board Member.

Kao Group Tax Policy

The Kao Group has implemented a "Tax Policy" aiming to improve its tax governance framework, reflecting the group's tax code of conduct and its consistent standards for approaching tax matters throughout the group.

The publication of this strategy statement is regarded as satisfying the duty under Paragraph 16(2), Schedule 19, Finance Act 2016 in UK.

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