EVA, which is used to measure true profit by factoring in the cost of invested capital, is the Kao Group’s principal management metric. Continuous growth in EVA is linked to increased corporate value, which means long-term profits not only for shareholders, but for all Kao Group stakeholders as well. The Kao Group views EVA growth as a primary focus of operating activity that expands business scale by making the maximum use of assets, and raising asset efficiency. The Kao Group also uses this metric to determine the direction of long-term management strategies, to assess specific businesses, to make evaluations on investment in facilities, acquisitions and other items, and to develop performance targets for each fiscal year.
By remaining conscious of invested capital with EVA, the Kao Group strives to continuously increase corporate value through profitable growth from a long-term perspective.
We strive to increase corporate value by measuring improvement of EVA from the following four perspectives.