Kao Group Overview

Striving for the wholehearted satisfaction and enrichment of the lives of people globally through Yoki-Monozukuri implemented from the consumer/customer's perspective

The Kao Group develops consumer product business that targets general consumers. Kao Group business segments that cater to the consumer include: the Beauty Care Business in which we offer prestige cosmetics, and premium skin care and hair care products; the Human Health Care Business with products that include functional health beverages and feminine and baby care products; and the Fabric and Home Care Business, which includes laundry detergents and household cleaners. Also, in the Chemical Business we develop chemical products that meet the various needs of industry.

In these diverse business fields, Kao remains committed to Yoki-Monozukuri implemented from the consumer/customer's perspective so that we may strive for the wholehearted satisfaction and enrichment of the lives of people globally.

Company Outline (As of December 31, 2012)

Company Name

Kao Corporation

Address

14-10, Nihonbashi Kayabacho 1-chome, Chuo-ku, Tokyo 103-8210 Japan

Founded

June 1887

Incorporated

May 1940

Capital

85.4 billion yen

Employees

6,052
(Number of employees in Kao Group consolidated companies: 33,350)

Representative

Michitaka Sawada, President and CEO

Consolidated Sales and Income (FY 2012 ended December 31, 2012)

Net sales	1,012.6 billion yen
Operating income	101.6 billion yen
Ordinary income	104.2 billion yen
Net income	62.4 billion yen

* Due to a change in the fiscal year end to December, the periods of consolidation for Kao Group companies during the transitional period of FY2012 are as follows.
- Companies in Japan: 9 months from April to December 2012
- Companies outside Japan: 12 months from January to December 2012

Business Activities

Kao Group business activities are driven by the consumer/customer. Group companies and individual divisions work together organically, and through the spirit of Yoki-Monozukuri deliver products and services that enable us to share joy with our consumers/customers.

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Research and Development

Research and Development in the Kao Group is committed to creating innovative products, ever mindful of the motto, "Integration of Diversity."

Research activities of the Kao Group cross-functionally bring together research functions of product development research and fundamental research. Through such matrix management, knowledge and wisdom of each specialized area is dynamically and flexibly combined resulting in a Yoki-Monozukuri that creates innovative products for the consumer/customer satisfaction.

Marketing

Consumer Driven Yoki-Monozukuri is the marketing cornerstone of the Kao Group.

We ascertain the needs of consumers, and create products using innovative technologies in response to those needs. We then properly communicate the benefits of products conceived through this process, proposing at the same time ideas of creating an attractive point-of-purchase to enable convenient selection and purchase. As part of these marketing efforts, companies of the Kao Group work together to offer new value that responds to changes in society.

Production

To deliver products that can be used safely and with peace of mind, we work with global production bases and are committed to efficient production in pursuit of high quality at reduced costs.

Distribution

To get products to consumers/customers without delay, we look on a series of processes from the procurement of raw materials to sales of final products as a single flow, link production with retailers, and promote supply chain management that works to avoid short supply while minimizing inventories.

Sales

To get valuable products, brands, and information to consumers/customers, we develop comprehensive sales activities. To this end we maintain effective information and logistics networks, propose ideas to create an attractive point-of-purchase and effective sales methods, and provide consumer communication know-how to retailers.

Moreover, we attempt to uncover issues that affect both consumers and retailers from their perspective, and pursue customer satisfaction through solution-proposing sales activities that address both groups.