CEO Message to Shareholders and Investors

Achieving a sustainable society is not optional. It is our responsibility. Within limited resources, we must enhance the quality of life while continuing to advance society sustainably. To do so, companies must continually question their purpose and continue to evolve.
Kao has rebuilt its management foundation with structural reform at the core: sharpening its business portfolio through selection and concentration, strengthening capital efficiency, and advancing organizational reform from a global perspective. These actions are delivering results, and our performance is firmly on a recovery trajectory.
We now have a clear sense of progress toward K27. However, this is not the destination. K27 is a milestone. Beyond it lies the sustainable growth we must achieve.

At the core of our growth strategy is Precision Interface Control Technology, refined over decades to design and control interfaces at the atomic and molecular level. Not easily replicated, we position it not as a component technology but as our innovation engine for value creation.
This technology drives consumer loyalty through superior sensory quality and solutions optimized for individual needs.
It is equally vital in growth areas to achieve both lower environmental impact and high functionality while advancing the production of next-generation materials. With both consumer and industrial businesses, Kao addresses these challenges from technology and business perspectives.
Our Precision Cleansing Technology targets only impurities, from laundry and personal care to semiconductor.
This accumulated expertise, and the ability to apply it across industries, is our exclusive uniqueness.

For Kao, enhancing societal and environmental value, with economic discipline at its core, directly strengthens our corporate value.
Attack ZERO, featuring our proprietary surfactant Bio IOS^®, has achieved a 38% reduction in energy consumption and a 47% reduction in water quality impact compared to conventional products.
At Kao, science drives this virtuous cycle between environmental performance and business growth.

Growth depends on disciplined investment. We manage each business according to its competitive position, growth potential, and capital efficiency.
We continuously evolve our portfolio based on competitiveness, growth potential, and capital efficiency. Under K27’s financial discipline, we invest actively in growth areas while accelerating structural transformation elsewhere.
This dynamic and disciplined resource allocation drives sustainable growth beyond K27.

At the foundation of everything we do lies The Kao Way. Since our founding 139 years ago, our purpose has remained unchanged: As one, we create a Kirei life for all, providing care and enrichment for the life of all people and the planet. From that same spirit, we make people and society clean, enriching lives and creating more smiles.
Dedication and altruism define Kao at its core. We engage sincerely with society and create value through Yoki-Monozukuri. This philosophy does not change, even as the world evolves.
What lies beyond K27 is not simply a growth strategy. It is a statement of what kind of company we aim to become.
With technology at the core, and by fully leveraging scientific marketing and AI, we are harnessing our scientific advantage, from Precision Interface Control to insight-driven marketing, to achieve the next stage of growth as a company essential to a sustainable society.