Roundtable Discussion with Outside Directors

Sakurai　When I joined as an Outside Director in 2022, Kao was facing some of its most difficult decisions. To drive future growth, we supported a sharper focus on high-growth businesses and advocated for structural reforms in human capital to accelerate progress. Although there was understandable hesitation, open and constructive discussions helped clarify our direction. This then led to bold actions, including transferring challenging businesses to more suitable partners. The structural reform has strengthened our ability to manage the portfolio with more strategic precision. I hope to inspire increasingly agile and decisive actions moving forward.

Takashima　Since my appointment as an Outside Director in 2024, I have seen a company undergoing structural reform, yet firmly grounded in its core values.

Takashima　We have made solid progress in clarifying strategic execution priorities and assigning responsibilities in AEMEA, which is vital to keep moving forward. The important factor is securing and developing talented local human resources, as the saying goes, “business is people.” Kao has built its brand by consistently attracting and nurturing exceptional talent.

Casanova　Kao has tremendous potential and room to grow. Its strength in R&D and product quality is clear, but we must better communicate this to the public. A key challenge is enhancing our marketing and digital strategies to better communicate our products and values and build stronger brand awareness.

Sakurai　Global expansion requires active co-creation with local partners. In 2024, we signed a Memorandum of Understanding with Thailand’s Charoen Pokphand Group to collaborate on key initiatives. Shifting from a solo approach to trusted partnerships marks a significant strategic shift and is vital to Kao’s global growth.

Casanova　Japanese companies have traditionally taken a cautious approach to decision-making, but Kao is now embracing a bolder, more assertive mindset. Western firms often take swift action and refine as they go—there is something we can learn from that mindset. I believe we, too, should take a more proactive approach and address challenges directly. A key step is to clearly define team accountability for results.

Sakurai　Kao has long valued diligence and attention to detail, but we are now beginning to see the seeds of change take hold. In transforming our Hair Care Business, we successfully reduced product development time to one-sixth by assembling top talent and adopting a scrum structure with clear accountability. This process proved to be a valuable experience for Kao.

Takashima　Our trusted products have established Kao’s position in Japan, but this alone may not suffice globally. To accelerate progress, we need to extend the scrum structure more broadly. The company-wide R&D conference I attended highlighted the value of collaboration, which boosts creativity and energizes research. Activating such mechanisms will significantly enhance our speed.

Sakurai　Kao has an exceptionally committed team, providing a solid foundation for future growth. With effective portfolio management, meaningful progress is within reach. Establishing a positive cycle between people, brands, and products is key to sustained success. As an Outside Director, I am committed to supporting this vision.

Casanova　The number one priority is talent. A company’s strength lies in its people. When employees are passionate and aligned around shared goals, they achieve remarkable results. To make a global impact, we must focus on the highest-growth areas. The toughest part of strategy is deciding what not to pursue. As a Board member, I will continue my oversight to keep Kao focused on true growth areas.

Takashima　We are committed to delivering products and services that prioritize sustainability and promote diversity, the core principles of The Kao Way. Embracing this philosophy and strengthening the emotional connection with our portfolio of brands is essential to growing our global fan base and building confidence in who we are as a company and what we stand for. The Board of Directors is fully behind this journey.