Kao Group Profile 2016
Transcript of Kao Group Profile 2016
Kao Overview
We put our heart into our products.They’re our way to make your day better, brighter, and more beautiful.
Kao Overview 2017 1
Towards a Global Presence
CEO Message
The Kao Group has made the Kao Way, the
Group’s corporate philosophy, the foundation
of all our corporate activities. Our mission is to
enrich the lives of people globally and contribute
to the sustainability of the world.
Since the company’s founding in 1887, Kao
has been delivering unmistakable value to people
everywhere. Our consumer products promote
cleanliness, beauty and health, while our
chemical products contribute to the development
of diverse industries.
In 2009, we unveiled the Kao Environmental
Statement. By striving to reduce environmental
impact across every aspect of business, and
by constantly searching for sustainable raw
materials, we are helping to conserve the
natural environment and contribute to social
sustainability.
Fiscal 2017 is the first year of K20, the Kao
Group Mid-term Plan for 2017–2020. Targeting
even greater future growth, K20 is built around
three commitments: to foster a distinctive
corporate image; to maintain profitable growth;
and to provide returns to all stakeholders.
The environment, health, aging and hygiene
are all key challenges, and Kao is tackling them
by creating new value that leverages the Group’s
collective strengths.
As we transform ourselves to drive change,
Kao will remain attentive to people’s needs and
work to become a company that enjoys global
support.
Michitaka SawadaPresident and Chief Executive Officer
The Kao Way
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Creating new value through a consumer driven approachKao’s Consumer driven approach is expressed as Yoki-Monozukuri*, a fundamental commitment
to user satisfaction. Yoki-Monozukuri results from painstaking quality assurance by all employees.
This stance, which dates all the way back to our founding, enables us to offer products of unique
value that bring a breath of fresh air to everyday life.
Yoki-Monozukuri at Kao
*We define Yoki-Monozukuri as “a strong commitment by all members to provide
products and brands of excellent value for consumer satisfaction”.
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Yoki-MonozukuriConsumer Driven
Principle
Interactive Communication
Improved Products
Res
earc
h a
nd D
evel
opment
Production and Sales
Marketing and Product Developm
ent
Yoki-Monozukuri
Kao Group’s cosmetics research facility, the Beauty Research &
Innovation Center, was the first place in Japan to deploy functional
MRI (fMRI), which can analyze brain activity such as emotions. Then,
with the installation of COCOLAB, a research space for exploring
emotional value, Kao broke new ground in beauty R&D by achieving
integrated access to science and kansei: emotion linked to perception.
R&D harnessing sensory and scientific approaches offers a deeper understanding of beauty
The new Data Science Laboratory is a key facility for deepening
our understanding of an increasingly diverse customer base.
From a vast sea of data, we can now precisely identify consumer
preferences and needs. The Data Science Laboratory will facilitate
collaboration both inside and outside the company, enabling Kao to
explore the potential of empathetic digital marketing.
Digital marketing that sharpensunderstanding of consumers
In an initiative supported by a major logistics company, Kao’s
new trailer relay transportation system lets truck drivers exchange
trailers at a relay point. This enables them to make short-haul,
same-day runs, reducing their working hours while improving
operational efficiency, as well as significantly lowering costs and
CO2 emissions.
Japan’s first cross-industry, cross-company trailer relay transportation system
Careful exploration of consumer needs leads to products that surpass expectationsWe create products that feature innovative technologies and reflect a careful exploration of
consumer needs. We then ensure that each product has clear benefits and is easy to choose at
the point of purchase. The entire Kao Group works together to advance Yoki-Monozukuri, and
approach the goal of true consumer satisfaction.
Yoki-Monozukuri at Kao
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Consumer feedback generates products thattruly resonate
Consumer Driven Principle
The Genba is where the action is, on the front line of everyday business life. Kao is committed to
understanding every aspect of how people actually live: their lifestyle Genba. To offer people an
even better, more satisfying lifestyle, we must listen to those who use our products, and identify
exactly what they want, their fundamental needs. By using this information in the development
process, we can deliver products that both delight and surprise.
Yoki-Monozukuri at Kao
The Raku-raku Eco Pack Refill was developed in response
to consumer calls for a refill product for viscous liquids like
shampoos and conditioners. The pack is easy to open and helps
to reduce waste. You simply set it upside-down on top of the
bottle for a quick refill with no spills and no liquid wasted.
The Raku-raku Eco Pack Refill, so easy to use
“I wish you could make it easier to tell the shampoo from the
conditioner when I’m washing my hair with my eyes closed.”
Taking that kind of comment into consideration, along with the
needs of the visually impaired, in 1991 Kao begin to add tactile
indicator notches to the side of all shampoo bottles.
Indented notches on shampoo bottles for fingertip identification
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Canada
USA
Mexico
Brazil
South Africa
Sweden
Finland
Russia
Denmark
Norway
Germany
The Netherlands
UnitedKingdom
Spain
France
Belgium
Switzerland
Italy
Austria
Czech Republic
Korea
China
Hong Kong
Vietnam
Thailand
Malaysia
Singapore
Indonesia
Australia
New Zealand
Japan
Taiwan
The Philippines
Providing high-value products andservices in some 100 countries and areasA satisfying, enriching life for people everywhere. Kao’s business is expanding globally across two
fields in particular: the Consumer Products Business, which is designed to enhance cleanliness, beauty,
and health; and the Chemical Business, which contributes across the board to industrial development.
Global Expansion
Asia
Europe
Americas
* Please visit our website for a list of Kao Group companies. http://www.kao.com/group/en/group/gateway.html
Kao Corporation S.A.Kao Germany GmbH Kao USA Inc. Quimi-Kao, S.A. de C.V.
Kao Industrial (Thailand) Co., Ltd.
PT Kao Indonesia
Kao (China) Holding Co., Ltd.Kao Corporation
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Beauty Care Business
Human Health Care Business
Fabric and Home Care Business
Chemical Business
Principal Locations and Business Development
601.6billion yen
345.2billion yen
2016 Segment
Net Sales
2016 Segment
Net Sales
We believe in the beauty of everyday living
Consumer Products Business
The Fabric and Home Care Business
provides products that boost
cleanliness and comfort in everyday
life. Fabric care brands include Attack
laundry detergent and Humming fabric
softener, while home care products
include Cucute dishwashing detergent
and Magiclean household cleaner.
From cosmetics lines such as Sofina and
Kanebo, each offering its own distinct
brand impact, to skin care and hair care
products, the Beauty Care Business
responds to beauty aspirations the world
over with technologically advanced
products.
The Human Health Care Business offers
a broad selection of products such as
Healthya, a functional health beverage
developed through many years of research.
Designed to contribute to a comfortable
and healthy life, products range from,
Laurier sanitary napkins and Merries baby
diapers to oral care items such as Pure Oral.
Beauty Care Business
273.1billion yen
2016 Segment
Net Sales
Human Health Care Business Fabric and Home Care Business
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Innovative technology that contributes to industrial development
Chemical Business
2016 Segment
Net SalesThe Chemical Business offers an array of products
including oleo chemicals and derivatives, surfactants,
high-performance polymers, and fragrances. It
continues to grow by developing and supplying
industrial products to a wide range of businesses
both globally and within the Kao Group. Paper and
pulp, food, pharmaceuticals, civil engineering and
construction, information materials, and electronics
are among the many industries our products support.
Chemical Business
273.8billion yen
*Includes internal sales between businesses.
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Plastics and Rubbers
CivilEngineering and
Construction
Information Materials
LubricantsDetergents, Perfumes, Cosmetics
FragranceMetal CastingColorantsPaper and Pulp
Pharmaceuticals
PolyurethanePrecision
Industries andElectronics
Agrochemicals
Food Products
BRIDGESTONE
REGNO GR-Leggera
Mighty is a high-performance water-reducing
additive that makes possible high-quality
concrete featuring superior usability. This
product responds to requirements in the civil
engineering and construction industries for
high-strength, high-durability concrete.
Mighty,for high-strength,
high-durability concrete
Kao’s new silica dispersion
improver contributes to CO2
reduction by balancing both
the fuel-efficient and wet-grip
performance of tires to the
highest possible standards,
using Kao’s interface control
technology.
Kao was the world’s first manufacturer
to succeed in developing toner binder with
polyester resin. This made possible
a significant reduction in the
temperature at which toner fuses
to paper, thus reducing
environmental impact.
New silica dispersion
improver essential for
fuel-efficient tires
Toner and toner binder that
boost environmental
performance through low-
temperature fusing
To a brighter future, for youand the world
Sustainability
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Kao works with diverse stakeholders to reduce environmental
impact throughout the product lifecycle, from procurement of
raw materials to production, distribution, use, and disposal.
Reducing environmental impact across the entire product lifecycle
The Environment
In 2009, Kao began visiting schools with the goal of helping
children develop their “skills for living.” For children, guidance on
correct hand-washing techniques is not just instructive but also
enjoyable.
Lessons for the young
Hygiene
Using health-related research findings, along with visceral fat
measuring devices and other tools, Kao supports the promotion
of health and fitness.
Working side by side with localcommunities, Kao promotes educationin beneficial lifestyle habits
Health and Aging
Kao Sustainability Statement
In 2013, Kao Group formulated the Kao Sustainability
Statement, clarifying our commitment to contribute to the
resolution of global issues through our business activities.
A number of key challenges were identified, including the
environment, health, aging, and hygiene. The Kao Group as a
whole continues to focus on these themes.
Global Commitment
4-0024-07-100-00
RSPO
The Roundtable on Sustainable Palm
Oil (RSPO) is an international non-profit
organization working to address issues
associated with palm oil production,
including ecosystem destruction in tropical
forests, and harsh labor conditions on palm
oil plantations. Kao has been a member of the
Roundtable since 2007.
The United Nations Global Compact
Participation in the United Nations Global
Compact represents a commitment by
corporations around the world to support
and act in accordance with ten key
principles relating to human rights, labor,
the environment, and the prevention of
corruption. Kao has been engaged in the
Global Compact since 2005.
Network JapanWE SUPPORT
Consolidated Number of Employees
16,618
Number of Patents Held
PATENTED
Shareholder Dividends
27No.1 among Japan’s public companies
consecutive fiscal years of increase
History
20171887
130years
Products Sold
100countries and
regions
in about
R&D Expenses
54.6billion yen
(As of December 31, 2016)
33,195
Con
sum
er P
roduct
s B
usi
nes
s
Chem
ical B
usiness
Beauty Care B
usin
ess
¥601.6 billion 41.3
%
Human Health Care Business¥273.1 billion 18.7%
Fabr
ic an
d Ho
me
Care
Bus
ines
s
¥345
.2 b
illio
n 2
3.7
%
Chemica
l Business
¥273
.8 billion 16.3%
Fiscal year ended December 31, 2016
¥1,457.6billion
Consolidated Net Sales
Consolidated Operating Income ¥185.6 billion
Kao Group by the Numbers
Net Sales by Segment
2016 Highlights
December
December
November
Kao Customer Marketing Co., Ltd. wins the
Environment Minister’s Prize for Corporate
Activities to Prevent Global Warming.
SeptemberBeauty Research & Innovation Center established
at the Odawara Complex.
September
Kao selected for the Dow Jones
Sustainability World Index
(DSJI World).
August
Kao included in the FTSE4Good Global
Index, one of the world’s leading SRI
indices, for the ninth consecutive year.
JuneKao agrees to acquire a U.S. manufacturer of
inkjet inks and a European ink company.
March
For the fifth year running, Kao joins
the State Environmental Protection
Administration (SEPA) of China in
promoting Nationwide Cleanliness and
Water-saving Initiatives.
March
Kao selected for inclusion in the
World’s Most Ethical Companies
for the 10th consecutive year.
Kao selected as a CDP 2016
Water A List company.
Kao announces K20, the Kao
Group Mid-term Plan 2020.
Since the fiscal year ending December, 2016, Kao has
subscribed to International Financial Reporting
Standards (IFRS). The composition of net sales shown
on the graph is calculated based on net sales to
external customers. Net sales for the Chemical
Business includes internal sales between segments.
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Kao’s Yoki-Monozukuri began in 1890, with the introduction of Kao Sekken, a quality facial soap
made in Japan. In the 130 years since then, Kao has continued to generate dozens of innovative
products that have transformed everyday life.
Kao Products that Changed Everyday Life
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Kao Kona Sentaku (Wonderful)
1951Significantly reduced the time needed
for doing laundry by hand, and the
burden of housekeeping chores.
Sofina
1982Born of a desire to provide more women
with dermatologically tested, high-
quality cosmetics.
Raku-raku Eco Pack Refill
2016Combining universal design and care
for the environment, this heralded a new
age in refills.
By popularizing the word “shampoo,” Kao changed
hair-washing habits in Japan.
Kao Shampoo
1932With quality to rival imported soaps of the time,
Kao Sekken, won fans nationwide.
Kao Sekken(Kao Soap)
1890
Quickle Wiper
1994A new floor cleaner for modern lifestyles.
Quiet, easy cleaning for all, whenever it was
needed.
Laurier
1978Changed life for women by offering
constant peace of mind and comfort.
Providing thorough cleaning with savings
in time and water usage, Attack Neo
offered an environmentally friendly way
to do laundry.
Attack Neo
2009A flagship product among the government-
certificated FOSHU (Foods for Specified
Health Uses), Healthya was readily
incorporated into everyday life.
Healthya Green Tea
2003
1887
Kao Industrial (Thailand) Co., Ltd.
established as Kao’s first company
outside Japan.
1964 1985
Kao Group acquires
Kanebo Cosmetics, Inc.
2006
Kao announces Kao
Environmental Statement and
unveils new corporate identity.
2009
1960s 1980s 2000s1900sKao predecessor
Nagase Shoten founded
Kao Soap Co., Ltd.
renamed Kao
Corporation.
2004
Launch of the Kao Way, a
statement of the Kao Group's
corporate philosophy.
Merries
1984Baby diapers that offered absorbency,
leak prevention and a sensation of
dryness not found in cloth diapers.
Attack
1987Providing surprising whiteness with just
one scoop of detergent. The compact
size made shopping more convenient.
*References to “Kao” in this report refer to the Kao Group. Any other Kao company is referred to specifically in full.
14-10, Nihonbashi Kayabacho 1-chome, Chuo-ku, Tokyo 103-8210, JapanCorporate Communications
Published May 2017