Kao Corporation
4452・Prime Market・Chemicals
Governance
Company with a Board of Corporate Auditors (also employing an executive officer system). Of the 9 directors, 5 are outside directors (majority), and all outside officers are independent officers. Since 2014, an independent outside director has served as chairman of the Board of Directors, and voluntary nomination and compensation committees have been established to ensure transparency.
Risk Management
The Risk and Crisis Management Committee is established under the Internal Control Committee, which is chaired by the Representative Director, President and Executive Officer. Risks deemed to have a particularly significant impact on management are identified once a year as "corporate risks" at the Management Committee, and executive officers are appointed as risk owners to manage progress. In 2025, seven themes were designated: major earthquakes/BCP, geopolitical risk, cyberattacks, social issues, serious quality problems, reputation, and pandemics.
Shareholder Returns
Basic policy of stable and continuous dividend increases. The annual dividend for FY2025 is ¥154 per share (interim ¥77 + year-end ¥77). For FY2026, a year-end dividend of ¥39 per share (after the stock split) is planned; the annual dividend before considering the stock split is equivalent to ¥156. Share buybacks are also stipulated in the Articles of Incorporation.
Dividend Policy
The basic policy is stable and continuous dividend increases, with dividends paid twice a year at the interim and year-end. The annual dividend for FY2025 is ¥154 per share (interim ¥77 + year-end ¥77). For FY2026, a stock split at a ratio of 2 shares for every 1 share of common stock is planned, with a record date of June 30, 2026 and an effective date of July 1, 2026. After considering the stock split, the forecast for the FY2026 second-quarter-end dividend is ¥78 and the forecast for the year-end dividend is ¥39. Without considering the stock split, the total annual dividend for FY2026 is planned to be ¥156 (an increase of ¥2 year-on-year).
ESG
The ESG strategy "Kirei Lifestyle Plan (KLP)" is being promoted in an integrated manner with the medium-term management plan "K27." On climate change, Scope 1+2 CO2 emissions have been reduced by 47% compared to 2017 (2025 actual results), with a target of carbon zero by 2040. In human capital, the company continues to raise the ratio of female managers (79.4% on a group basis), employee education investment has reached 2.03 times the 2020 level, and the employee engagement score stands at 68 (2027 target: 75), progressing toward its goal. ESG indicators from the KLP (decarbonization, plastic recycling, ratio of female managers, number of compliance violations) are incorporated into long-term incentive compensation, linking them with management.
Last updated: March 25, 2026