Roundtable Discussion with Outside Directors

Sakurai　Kao’s strength lies in its deep understanding of consumers. It understands, based on data and science, which consumers support which brands and why they choose them.
It is extremely important to avoid making choices or accelerating speed without sufficient visibility. Kao’s strength is its ability to make decisions based on consumer understanding. However, while that capability is strong in Japan, there is probably still room for improvement in whether the same level has been achieved overseas.

Nishii　Kao is a company that makes decisions carefully. I do not see that as a weakness, but rather as one of the company’s characteristics. Its management style places importance on the certainty of growth once a decision has been made. That is Kao’s management style.
However, in Europe and the U.S. markets, where Kao has not yet established as strong a position as it has in Japan, it will be important to consider how that approach should evolve.

Casanova　What I have felt strongly over the past year is the need to further accelerate decision-making. In global markets, the pace of competition is extremely fast. For a company to continue growing, speed of decision-making is critical.
This is where the investment in DX and AI will begin to bear fruit—the company must move to the next stage and leverage that investment to accelerate the actual speed of business.

Sakurai　Over the past several years, Kao has first focused on strengthening its financial foundation and restoring business performance. As a result, it has become clearer where the seeds of growth lie. Going forward, the company is at the stage of turning those seeds into actual growth.
I believe global growth, along with the creation of new value based on AI and science, will become the next core pillar for Kao. At the Board of Directors as well, discussions continue with a view to the long-term vision Kao seeks to achieve.

Casanova　While maintaining our leadership in the Japanese market, the question is how we can strengthen our presence in Europe and the U.S. That is the challenge we now face.

Nishii　I believe we are now at the stage where the question is how to realize that growth. There are less than two years remaining in Mid-term Plan K27. 2026 will likely be a year in which Kao raises its growth to the next level.

Sakurai　The role of the Board of Directors changes depending on the phase a company is in. During the business recovery phase, it was important to maintain financial discipline. From here, however, discussions on future direction will become even more important. I see the Board of Directors as a compass, showing the direction of a company’s future.
I will assume the role of chairperson this year, and I intend to maintain close communication with the President & CEO while ensuring that the Board of Directors engages in thorough discussions on important themes.

Nishii　Over the past year, the diversity of the Board of Directors has expanded even further. With the addition of new members, more strategic discussions have taken place on matters such as branding and consumer understanding. With those perspectives added, discussions have also deepened on where resources should be concentrated and through which brands growth should be achieved.
As the Board of Directors, I believe we must continue to engage fully in these discussions. At the same time, looking beyond K27, another major theme is how to develop the global human capital that will lead the next phase of growth.

Casanova　I often ask, regarding the consumers and the markets, “What do we know, what are we assuming, and what do we still need to learn?” I believe it is important to keep asking such questions. What matters is for the Board of Directors to focus on the areas that are truly important. If everything is treated as equally important, then nothing is important.
By focusing discussions on the growth drivers that matter most, I believe the Board of Directors can deliver much greater value.

Sakurai　Human capital will be an extremely important focus area for Kao going forward. As these discussions deepen further, I believe new perspectives such as those brought by Mr. Okuyama, who joined as an Outside Director, carry great significance.
I hope that the Board of Directors in 2026 will continue to evolve further.

Nishii　The Global Sharp Top set out in K27 represents, I believe, a direction in which Kao can further strengthen its existing advantages. Going forward, discussion will center on where to drive innovation and in which brands and categories Kao can build world-class strengths. That discussion will lead to the next phase of growth.

Sakurai　In that sense, I believe Kao could afford to pursue growth more aggressively. To achieve growth at the next stage, another step change will be necessary. As the Board of Directors, we want to discuss a bold vision together with the executive side and support that challenge.

Casanova　Kao has enormous potential. It has strong brands, outstanding technologies, and excellent human capital.
There are major opportunities in global markets. However, to achieve results on an entirely different level, it cannot continue doing things the same way it has in the past. It also needs the courage to change its approach. As the Board of Directors, we intend to fully support that challenge and help Kao expand its presence globally.