02 16-13 kao results-q3-1
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02 16-13 kao results-q3-1 02 16-13 kao results-q3-1 Presentation Transcript

  • Annual Financial Review From April 1, 2012 to December 31, 2012 Kao Corporation February 5, 2013This is a translation of materials used for the analyst meeting held in Japan on February 5, 2013.
  • These presentation materials are available on ourwebsite in PDF format:http://www.kao.com/jp/en/corp_ir/presentations.html Forward-looking statements such as earnings forecasts and other projections contained in this release are based on information available at this time and assumptions that management believes to be reasonable, and do not constitute guarantees of future performance. Actual results may differ materially from those expectations due to various factors.Note: The yen amounts in these presentation materials, which were previously truncated to their respective units for presentation, are rounded to the nearest unit from FY2012, ended December 31, 2012. Figures for FY2011, ended March 31, 2012, and prior fiscal years have also been restated for ease of comparison. 2
  • 1. Business Environment April 1, 2012 – December 31, 2012 3
  • Consumer Products1 Market in Japan(%)2 79 major household and personal care categories (all manufacturers)110 FY2012 Semiannually Monthly105100 95 90 2H/FY10 1H/FY11 2H/FY11 3 4/12 5/12 6/12 7/12 8/12 9/12 10/12 11/12 12/12 1 Consumer products do not include prestige cosmetics. (Source: SRI POS data by INTAGE Inc.) 2 Year-on-year growth rate of market size in value (yen) 3. The data of 2H/FY10 includes hoarding due to the earthquake in March 2011. 4
  • Consumer Purchase Prices in Japan 15 major household and personal care categories (all manufactures)Index105 100 100 99100 97 97 97 96 95 95 94 95 Comparison with Oct-Dec 2011 Body cleansers Shampoo Hair styling agents Conditioner 90 Toothpaste Hair color Toothbrushes Sanitary napkins Fabric softener Adult incontinence products Dishwashing detergents Facial cleansers 85 Makeup remover Baby diapers Laundry detergents 80 1H/FY08 2H/FY08 1H/FY09 2H/FY09 1H/FY10 2H/FY10 1H/FY11 2H/FY11 1H/FY12 Oct-Dec 2012 (Source: SRI POS data by INTAGE Inc.) 5
  • 2. Consolidated Business Results April 1, 2012 – December 31, 2012Fiscal year end is December 31 from FY2012Term of consolidation for FY2012 as a transitional period Group companies whose fiscal year end was previously March 31 *: April-December 2012 Group companies whose fiscal year end is already December 31: January-December 2012Restated FY2011Figures for the nine-month period from April 1 to December 31, 2011 for groupcompanies whose fiscal year end was previously March 31.Adjusted growthComparison with the nine-month period from April 1 to December 31, 2011 for groupcompanies that previously had a fiscal year end in March * Kao Corporation and certain consolidated subsidiaries with the same fiscal year end 6
  • Key Points in FY2012 Japan sales related1. Consumer purchase price of 15 major household and personal care categories market in Japan1:1: 1. Consumer purchase price of 15 major household and personal care categories market in Japan st 11st half: -1 point year-on-year half: -1 point year-on-year Oct.-Dec.: Flat Oct.-Dec.: Flat2. Growth of household and personal care market in Japan2 2 (Apr.-Dec.):+1% 2. Growth of household and personal care market in Japan (Apr.-Dec.): +1%3. Growth of the cosmetics market in Japan3 3 (Apr.-Dec.):-0.2% 3. Growth of the cosmetics market in Japan (Apr.-Dec.): -0.2% Income statements related Adjusted growth41. Net sales: 1. Net sales: ¥1,012.6 billion ¥1,012.6 billion +0.4% +0.4% Effect of currency translation: Effect of currency translation: -¥7.3 billion -¥7.3 billion -0.7% -0.7% Sales growth excluding effect of Sales growth excluding effect of currency translation: currency translation: +¥11.6 billion +¥11.6 billion +1.1% +1.1%2. Increase/decrease in operating income5:5: 2. Increase/decrease in operating income +¥3.1 billion +¥3.1 billion Cash flow related1. Free cash flow6 6 1. Free cash flow ¥52.7 billion ¥52.7 billion2. Payments of cash dividends7:7: 2. Payments of cash dividends ¥33.5 billion ¥33.5 billion1 Index with the 1st half of FY2008 as 100 (Source: SRI POS data by INTAGE Inc.)2 Source: SRI POS data by INTAGE Inc.3 Source: SLI data by INTAGE Inc.4 Excludes the impact of the change in financial term. (Please refer to slide 6 for details.)5 Please refer to slide 12 for details.6 Free cash flow = Net cash provided by operating activities + Net cash used in investing activities7 Includes payments of cash dividends to minority shareholders. 7
  • FY2012 Consolidated Results Restated Adjusted Billion yen FY11 FY11 1 FY12 growth 1Net Sales 1,216.1 1,008.3 1,012.6 +0.4%EBITA 2 142.2 124.2 125.7 +1.2% EBITA* Margin 11.7% 12.3% 12.4%Operating Income 108.6 98.5 101.6 +3.2% Operating Margin 8.9% 9.8% 10.0%Ordinary Income 110.0 100.2 104.2 +4.0%Net Income 52.4 51.8 62.4 +20.5%EBITDA 188.4 160.6 161.4 +0.4%ROE 3 9.8% -0 11.0%EPS (yen) 100.46 99.16 119.55 +20.6%1 Excludes the impact of the change in financial term. (Please refer to slide 6 for details.)2 Operating income before amortization of goodwill and intellectual property rights related to M&A.3 ROE of FY2012 is for the transitional period connected with the change in fiscal year end. 8
  • Consolidated Net Sales [1] 1 Restated FY2011 FY2012 % Growth Billion yen Billion yen 1 2 Adjusted Like-for-likeBeauty Care Business 311.9 312.6 +0.2 +0.2Human Health Care Business 125.8 131.6 +4.6 +4.6Fabric and Home Care Business 204.5 208.9 +2.1 +2.1Japan total 642.3 653.1 +1.7 +1.7Asia 3 81.5 87.2 +7.0 +7.8 3Americas 55.1 56.6 +2.7 +2.1Europe 61.5 57.3 -6.9 -1.8Eliminations -21.4 -21.0 - -Consumer Products Business 819.0 833.2 +1.7 +2.11: Excludes the impact of the change in financial term. (Please refer to slide 6 for details.)2: Excludes the effect of currency translation and the impact of the change in financial term. (Please refer to slide 6 for details.)3: Australia and New Zealand, which had been included in Asia until FY2011, have been reclassified to Americas from FY2012. The results of FY2011 have been restated for the purpose of comparison. 9
  • Consolidated Net Sales [2] 1 Restated FY2011 FY2012 % Growth Billion yen Billion yen 1 2 Adjusted Like-for-likeJapan 95.6 92.0 -3.8 -3.8Asia 89.2 75.6 -15.3 -15.0Americas 35.9 33.6 -6.5 -5.2Europe 55.7 53.5 -4.0 +3.6Eliminations -57.2 -46.5 - -Chemical Business 219.2 208.1 -5.1 -3.1Eliminations -30.0 -28.6 - -Consolidated net sales 1,008.3 1,012.6 +0.4 +1.11: Excludes the impact of the change in financial term. (Please refer to slide 6 for details.)2: Excludes the effect of currency translation and the impact of the change in financial term. (Please refer to slide 6 for details.) 10
  • Consolidated Income Statements FY2011 FY2012 Adjusted 1 Billion yen % Billion yen % % growth Net Sales 1,216.1 100.0 1,012.6 100.0 +0.4 Cost of Sales 525.0 43.2 442.5 43.7 0.0 Gross Profit 691.1 56.8 570.1 56.3 0.0 2 SG&A Expenses 582.5 47.9 468.5 46.3 0.0 Operating Income 108.6 8.9 101.6 10.0 +3.2 Non-operating Income/Expenses 1.4 0.1 2.6 0.3 0.0 Ordinary Income 110.0 9.0 104.2 10.3 +4.0 Extraordinary Gain/Loss -4.8 -0.4 -1.9 -0.2 0.0 Income Before Income Taxes 105.3 8.7 102.3 10.1 0.0 and Minority Interests Income Taxes 50.8 4.2 38.5 3.8 0.0 Income Before Minority 54.5 4.5 63.8 6.3 0.0 Interests Minority Interests 2.1 0.2 1.4 0.1 0.0 Net Income 52.4 4.3 62.4 6.2 +20.5 1 Excludes the impact of the change in financial term. (Please refer to slide 6 for details.) 2 Amortization related to Kanebo Cosmetics FY2011: 27.4 billion yen, FY2012: 20.5 billion yen 11
  • FY2012 Consolidated Operating Income Analysis Comparison with restated FY2011 +3.1 billion yen Restated FY2011 +7.0 billion yen Increase in sales volume FY2012Operating Income* -7.5 billion yen Impact from change in raw material prices Operating Income +8.0 billion yen Total Cost Reduction (TCR) 98.5 billion yen 101.6 billion yen +0.0 billion yen Increase (decrease) in SG&A expenses -4.4 billion yen Product mix and others * Excludes the impact of the change in financial term. (Please refer to slide 6 for details.) 12
  • Consolidated Cost of Sales and SG&A to Net Sales % % 55 40Cost of Sales ratio OperatingSG&A ratio SG&A ratio Margin (left scale) 50.4 50 49.3 49.2 49.1 48.6 47.9 30 SG&A ratio (left scale) 46.3 44.9 Cost of Sales 45 43.8 44.0 43.8 ratio (left scale) 43.2 43.6 40.9 43.2 43.7 20 41.8 42.0 42.0 Cost of Sales 41.6 40 ratio (left scale) Operating Margin 13.3 13.0 12.4 (right scale) Operating Margin 10 35 (right scale) 9.8 10.0 8.8 8.8 8.9 7.9 7.6 30 0 FY04 04 05 06 07 08 09 10 11 12 * Structure has changed significantly since FY2006 due to the consolidation of Kanebo Cosmetics. The impact of the change in financial term is included in FY2012. (Please refer to slide 6 for details.) 13
  • Breakdown of Major Consolidated SG&A Expenses (Billion yen) FY2011 FY2012* Total SG&A Expenses 582.5 468.5 Freight/Warehouse 68.4 56.8 Advertising 82.2 67.0 Sales Promotion 63.0 52.1 Salaries and Bonuses 121.8 97.7 R&D 48.2 37.5 *Includes the impact of the change in financial term. (Please refer to slide 6 for details) 14
  • Consolidated Non-operating Income/Expenses and Extraordinary Gain/Loss (Billion yen) Non-operating Income/Expenses FY2011 FY2012* Non-operating Income 5.3 5.0 Interest Income 0.9 0.8 Dividend Income 0.2 0.2 Equity in Earnings of Nonconsolidated Subsidiaries and Affiliates 1.7 1.7 Other 2.6 2.3 Non-operating Expenses 3.9 2.3 Interest Expense 2.2 1.2 Foreign Currency Exchange Loss 0.6 0.3 Other 1.1 0.9 Extraordinary Gain/Loss FY2011 FY2012* Extraordinary Gain 0.3 0.6 Gain on Sales of Fixed Assets 0.2 0.1 Gain on Sales of Stock of Subsidiary - 0.3 Other 0.1 0.2 Extraordinary Loss 5.0 2.6 Loss on Sales/Disposals of Fixed Assets 2.4 2.2 Loss related to the Great East Japan Earthquake 2.0 - Other 0.6 0.3 *Includes the impact of the change in financial term. (Please refer to slide 6 for details) 15
  • Consolidated Results by Segment Adjusted Adjusted Restated FY2011 3 FY2012 changes 3 growth 3 % of % of Billion yen Billion yen Billion yen % net sales net sales Net Sales1 444.5 - 444.4 - -0.1 -0.0%Beauty CareBusiness EBITA2 42.6 9.6% 45.9 10.3% +3.2 +7.6% Operating Income 17.0 3.8% 21.8 4.9% +4.8 +28.0%Human Health Net Sales1 144.1 - 152.0 - +7.9 +5.5%Care Business Operating Income 12.6 8.7% 11.5 7.6% -1.0 -8.3%Fabric and Home Net Sales1 230.4 - 236.7 - +6.3 +2.8%Care Business Operating Income 47.2 20.5% 51.4 21.7% +4.1 +8.7% Net Sales1 219.2 - 208.1 - -11.2 -5.1%ChemicalBusiness EBITA2 21.8 9.9% 16.9 8.1% -4.9 -22.5% Operating Income 21.7 9.9% 16.8 8.1% -4.9 -22.6% Net Sales 1,008.3 - 1,012.6 - +4.3 +0.4%Consolidated EBITA2 124.2 12.3% 125.7 12.4% +1.6 +1.2% Operating Income 98.5 9.8% 101.6 10.0% +3.1 +3.2%1 Before elimination of intersegment transfers2 Operating income before amortization of goodwill and intellectual property rights related to M&A3 Excludes the impact of the change in financial term. (Please refer to slide 6 for details.) 16
  • [Reference] Consolidated Results by Geographic Area Adjusted Adjusted Restated FY2011 4 FY2012 4 4 changes growth % of % of Billion yen Billion yen Billion yen % net sales net sales Net Sales1 712.3 - 720.8 - +8.4 +1.2% Japan EBITA2 101.3 14.2% 108.8 15.1% +7.5 +7.4% Operating Income 77.6 10.9% 86.5 12.0% +9.0 +11.5% 3 Net Sales1 167.6 - 159.9 - -7.8 -4.6% Asia Operating Income 9.4 5.6% 6.3 3.9% -3.2 -33.7% Net Sales1 90.9 - 90.0 - -0.9 -1.0% Americas 3 EBITA2 4.4 4.8% 3.4 3.7% -1.0 -23.4% Operating Income 3.7 4.0% 2.7 3.0% -0.9 -25.3% Net Sales1 117.0 - 110.5 - -6.5 -5.5% Europe EBITA2 9.3 7.9% 7.4 6.7% -1.9 -20.7% Operating Income 8.0 6.9% 6.1 5.5% -1.9 -23.7% Net Sales 1,008.3 - 1,012.6 - +4.3 +0.4% Consolidated EBITA2 124.2 12.3% 125.7 12.4% +1.6 +1.2% Operating Income 98.5 9.8% 101.6 10.0% +3.1 +3.2% 1 Before elimination of intersegment transfers 2 Operating income before amortization of goodwill and intellectual property rights related to M&A 3 Australia and New Zealand, which had been included in Asia until FY2011, have been reclassified to Americas from FY2012. The results of FY2011 have been restated for the purpose of comparison. 4 Excludes the impact of the change in financial term. (Please refer to slide 6 for details.) 17
  • Consumer Products Business by Geographic AreaSales (Billion yen) Japan Operating Income Asia (Billion yen) 1,000 150 200 15 800 150 10 100 600 100 5 400 50 50 0 200 0 0 0 -5 FY2010 FY2011 FY2012 FY2010 FY2011 FY2012 Americas & Europe 200 15 Net Sales 150 10 Operating Income 100 5 * Australia and New Zealand, which had been 50 included in Asia until FY2011, have been reclassified to Americas from FY2012. The results of FY2011 have been restated for the purpose of comparison. 0 0 FY2010 FY2011 FY2012 The results of Japan in FY2012 include the impact of the change in financial term. (Please refer to slide 6 for details.) 18
  • Chemical Business by Geographic AreaSales (Billion yen) Japan Operating Income Asia (Billion yen) 150 20 150 20 15 15 100 100 10 10 50 50 5 5 0 0 0 0 FY2010 FY2011 FY2012 FY2010 FY2011 FY2012 Americas & Europe 150 20 Net Sales 15 Operating Income 100 10 50 * The results of Japan in FY2012 include the impact of 5 the change in financial term. (Please refer to slide 6 for details.) 0 0 FY2010 FY2011 FY2012 19
  • Consolidated Balance Sheets (Billion yen) Mar/12 Dec/12 Changes Mar/12 Dec/12 ChangesCurrent Assets 432.9 493.4 +60.5 Current Liabilities 274.9 315.9 +41.0 Notes and Accounts Cash and Time Deposits 85.5 99.3 +13.9 Payable - Trade 110.7 105.5 -5.2 Notes and Accounts Bonds/Short-term Loans Receivable - Trade 142.9 164.3 +21.4 (incl. Current Portion of 2.1 53.1 +51.1 Short-term Investments 46.8 57.4 +10.6 Bonds/Long-term Loans) Inventories 120.7 122.2 +1.5 Accounts Payable - Other 48.5 52.5 +4.0 Other 37.1 50.2 +13.1 Accrued Expenses 73.5 74.4 +0.9 Accrued Income Taxes 18.3 11.7 -6.6 Liability for loss related to the Great East Japan Earthquake 0.0 - -0.0 Other 21.8 18.7 -3.1Fixed Assets 558.3 546.6 -11.8 Long-term Liabilities 166.7 118.4 -48.3 Property, Plant and Equipment 240.6 252.3 +11.8 Bonds/Long-term Loans 100.0 50.1 -50.0 Intangible Assets 237.5 215.9 -21.5 Other 66.6 68.3 +1.7 Investments and Other Assets 80.3 78.3 -2.0 Total Liabilities 441.6 434.3 -7.3 Shareholders equity 633.5 663.6 +30.1 -Common Stock 85.4 85.4 - -Capital Surplus 109.6 109.6 - -Retained Earnings 447.6 477.6 +30.0 -Treasury Stock, at Cost -9.1 -9.0 +0.1 Accumulated other comprehensive income -95.5 -71.3 +24.2 - Unrealized Gain on Available-for-sale Securities 2.3 2.4 +0.2 - Deferred Gain (Loss) on Derivatives under Hedges Accounting -0.0 0.0 +0.0 - Foreign Currency Translation Adjustments -96.1 -71.9 +24.2 - Post retirement adjustments for foreign consolidated subsidiaries -1.7 -1.9 -0.2 Stock Acquisition Rights 1.2 1.3 +0.1 Minority Interests 10.4 12.1 +1.7 Total Net Assets 549.7 605.7 +56.0 Total Liabilities and Total Assets 991.3 1,040.0 +48.7 991.3 1,040.0 +48.7 Total Net Assets 20
  • Consolidated Statements of Cash Flows (Billion yen) FY2011 FY2012 1 Net Cash Provided by Operating Activities 125.0 97.4 Net Cash Used in Investing Activities -49.0 -44.6 Net Cash Used in Financing Activities -86.2 -32.0 Translation Adjustments on Cash and Cash Equivalents -3.3 9.7 Net Increase (Decrease) in Cash and Cash Equivalents -13.4 30.4 Cash and Cash Equivalents, Beginning of Period 143.1 129.7 Cash and Cash Equivalents from Newly Consolidated Subsidiary, Increase - 0.3 Cash and Cash Equivalents, End of Period 129.7 160.4 Total Debt at End of Period 102.1 103.2 2 Free Cash Flow 76.1 52.7 <Net cash used in investing activities> Capital expenditures: - Construction of new plants in China and Indonesia - Production capacity enhancement of fatty alcohols in the Philippines - Production facilities for new products - Production capacity expansion - Optimization of distribution bases - IT related, etc. <Net cash used in financing activities> Payments of cash dividends (Includes payments of cash dividends to minority shareholders) : 33.5 billion yen 1 Includes impact of change in financial term. (Please refer to slide 6 for details.) 2 Free cash flow = Net cash provided by operating activities + Net cash used in investing activities 21
  • Share Repurchase (Million Shares) 35 Aggregate to December 2012 29.1 137.6 MM shares 30 27.3 363.8 Billion yen 25 19.9 20 16.0 13.9 15 10.0 10.0 9.3 10 5 2.0 - - - - - 0 FY 99 FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12Billion yen 29.5 28.6 56.8 77.2 36.7 70.0 5.0 - 30.0 - - 30.0 - - * Share repurchase from the market 22
  • 3. Forecast for FY 2013Fiscal year end is December 31 from FY2012Term of consolidation for FY2012 as a transitional period Group companies whose fiscal year end was previously March 31 *: April-December 2012 Group companies whose fiscal year end is already December 31: January-December 2012Restated FY2012Figures for the twelve-month period from January 1 to December 31, 2012 for groupcompanies whose fiscal year end was previously March 31.Adjusted growthFY2012 actualComparison with the nine-month period from April 1 to December 31, 2011 for groupcompanies that previously had a fiscal year end in MarchFY2013 forecastComparison with the twelve-month period from January 1 to December 31, 2012 for groupcompanies whose fiscal years ended in March before the fiscal year end change * Kao Corporation and certain consolidated subsidiaries with the same fiscal year end 23
  • Major Assumptions for FY2013 Forecast Year-on-year growth rate of market size in value (yen) for the Consumer Products Business1 in Japan: 0 to +1% year-on-year Year-on-year growth rate of cosmetics market size in value (yen) in Japan: Flat Adjusted growth2 Net sales: ¥1,270.0 billion +4.1% Effect of currency translation: +¥30.0 billion +2.5% Sales growth excluding effect of currency translation: +¥19.6 billion +1.6% Estimated impact on income Impact from change in raw material prices: Gross impact: +¥4 billion Net impact: -¥3 billion Total Cost Reduction (TCR) activities: +¥5 billion Capital expenditures/depreciation and amortization Capital expenditures: ¥60 billion Depreciation and amortization: ¥76 billion Share repurchases: Up to ¥30 billion or up to 12.5 million shares plannedExchange rate assumptions 90 yen/USD (FY2012 actual exchange rate [average]: 80.12 yen/USD) 115 yen/Euro (FY2012 actual exchange rate [average]: 103.46 yen/Euro) 1 Excludes prestige cosmetics. 2 Excludes the impact of the change in financial term. (Please refer to slide 23 for details.) 24
  • Consolidated Sales and Profit Forecast [Reference] 4 1 FY2012 Restated 2 FY2013(F) 5 FY2012 Adjusted Adjusted Billion yen Billion yen Billion yen % growth2 % growth 2 Net Sales 1,012.6 +0.4 1,220.4 1,270.0 +4.1 Operating Income 101.6 +3.2 111.8 116.0 +3.8 [% of Sales] 10.0% 9.2% 9.1% Ordinary Income 104.2 +4.0 114.1 117.0 +2.5 [% of Sales] 10.3% 9.4% 9.2% Net Income 62.4 +20.5 62.7 73.0 +16.4 [% of Sales] 6.2% 5.1% 5.7% Net Income per Share (yen) 119.55 +20.6 120.21 142.60 +18.6 3 ROE 11.0% - 11.1% 12.2% - EBITDA 161.4 +0.4 189.2 192.0 +1.5 (Operating Income + Depr. & Amort.) Cash Dividends per Share (yen) 62.0 +3.3 62.0 64.0 +3.2 1 Exchange rate assumptions: 90 yen/USD,115 yen/Euro 2 Excludes the impact of the change in financial term. (Please refer to slide 23 for details.) 3 ROE forecast of FY2012 is for the transitional period connected with the change in fiscal year end. 4 Kanebo Cosmetics (Apr. -Dec. 2012) : Net sales = approximately ¥150 billion / operating margin before deduction of royalties = slightly more than 7%; amortization related to Kanebo Cosmetics: ¥20.5 billion 5 Kanebo Cosmetics (Jan. -Dec. 2013) : Net sales = slightly more than ¥190 billion / operating margin before deduction of royalties = approximately 8%; amortization related to Kanebo Cosmetics: ¥26.5 billion 25
  • Sales Outlook by Segment – FY2013 Adjusted<Billion yen> growth2Consolidated Net Sales 1,270 +4.1% Reference: By Segment1 By Geographic Area1 Adjusted Adjusted growth2 growth2Beauty Care 560 +4.1% Japan 956 +2.4%HumanHealth Care 197 +3.9% Asia 181 +13.1%Fabric andHome Care 305 +4.5% Americas 99 +10.0%Chemical 242 +2.3% Europe 117 +5.9% 1 Sales are before elimination of transactions between segments or geographic areas. 2 Excludes the impact of the change in financial term. (Please refer to slide 23 for details.) 26
  • Sales Outlook – FY2013 - Consumer Products Business in Japan - <Billion yen> 1st Half Full Year FY2012 FY2013 FY2012 FY2013 Adjusted Adjusted Actual Forecast growth* Actual Forecast growth* (9 months) (12 months)Beauty Care 203.6 197.0 +1.8% 312.6 413.0 +1.2%Human Health Care 84.9 81.0 +0.5% 131.6 173.0 +1.6%Fabric and Home Care 132.6 120.0 +3.6% 208.9 273.0 +3.2%Consumer Products Business 421.1 398.0 +2.1% 653.1 859.0 +1.9%*Excludes the impact of the change in financial term. (Please refer to slide 23 for details.) 27
  • FY2013 Outlook by Segment/Geographic Area Decrease in operating income Increase in operating income Increase in net sales CP1 – Asia CP1 – Americas CP1 – Japan Chemical – Japan CP1 – Europe Chemical – Asia Chemical – Americas Chemical – Europe Decrease in net sales 1: CP = Consumer Products 2: Excludes the impact of the change in financial term. (Please refer to slide 23 for details.) 28
  • Consolidated Net Sales/EBITA1/Operating Income [Full Year] Sales Profit Billion yen Billion yen 1,400 240 1,276.3 1,270.0 1,184.4 1,216.1 220 1,186.8 1,200 200 1,012.6 Net Sales 180 1,000 160 139.1 142.2 144.4 800 134.7 129.5 140 125.7 116.0 108.6 120 EBITA 104.6 101.6 96.8 94.0 600 12.4% 100 11.7% 11.7% 11.4% 10.6% 10.9% 80 Operating 400 Income 60 10.0% 9.1% 7.9% 8.8% 8.9% 40 200 7.6% 20 EBITA Margin Operating Margin 0 0 2 FY08 09 10 11 12 13(F) 1 Operating income before amortization of goodwill and intellectual property rights related to M&A 2 Fiscal year end is December 31 from FY2012. (Please refer to slide 23 for details.) 29
  • EBITDA Depretiation & AmortizationBillion yen Operating Income 250 Total 200 188.4 192.0 184.3 186.0 178.8 161.4 150 79.8 76.0 87.5 81.4 84.8 59.8 100 108.6 116.0 50 96.8 94.0 104.6 101.6 0 FY08 09 10 11 12 * 13(F) *Fiscal year end is December 31 from FY2012. (Please refer to slide 23 for details.) 30
  • ROE & ROA (%)20 14.915 13.1 12.2 11.7 11.5 10.9 11.0 12.8 9.910 11.6 8.6 10.3 9.7 9.2 9.8 8.0 8.5 7.3 5 ROE ROA 0 FY05 06 07 08 09 10 11 12 1,2 13(F) ROA: Ordinary Income / Total assets 1 Fiscal year end is December 31 from FY2012. (Please refer to slide 23 for details.) 2 ROE and ROA of FY2012 are for the transitional period connected with the change in fiscal year end. 31
  • Net Income per ShareNet Income Net Income(Billion yen) Weighted Average per Share Number of Shares (yen) Outstanding (MM) 90 Net Income 200 Net Income per Share 80 73.0 180 71.1 70.5 66.6 160 70 64.5 62.4 140 60 52.4 142.6 130.6 129.4 46.7 120 50 122.5 120.3 40.5 119.6 100 40 100.5 80 87.7 30 75.6 60 20 40 544 544 543 536 536 533 522 522 511 10 20 0 0 FY05 06 07 08 09 10 11 12 * 13(F) * Fiscal year end is December 31 from FY2012. (Please refer to slide 23 for details.) 32
  • Cash Dividends per Share (Yen)70 Dividend increase for the 23rd 64.00 62.00 consecutive year in FY2012 60.00 58.0060 56.00 57.00 54.00 52.00 50.005040 38.00 32.00 30.0030 26.00 24.00 20.0020 16.00 14.0015.00 11.5012.50 9.09 10.0010.50 8.8710 7.10 7.10 0 ) 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 88 (FFY 13 *Impacts of share splits are retroactively reflected. 33
  • Capital Expenditures(Billion yen) 100 Parent Subsidiaries 60.0 49.1 47.2 50 44.6 44.9 41.9 27.0 14.7 17.3 19.6 17.5 22.5 34.4 33.0 27.4 29.9 25.0 19.4 0 FY08 09 10 11 12 2 13(F) 1 Includes long-term prepaid expenses. 2 Fiscal year end is December 31 from FY2012. (Please refer to slide 23 for details.) 34
  • FY2013 Quarterly Consolidated Sales and Profit Forecast Net Sales Operating Income(Billion yen) (Billion yen) 1,270.0 Net Sales 2012 1,220.4 Operating Income 2012 Net Sales 2013 Operating Income 2013 116.0 111.8 890.1 69.4 578.7 600.0 34.9 284.7 32.0 14.4 3 months 6 months 9 months Fiscal year 3 months 6 months 9 months Fiscal year * Fiscal year end is December 31 from FY2012. Figures for the twelve-month period from January 1 to December 31, 2012 for Kao Corporation and its subsidiaries whose fiscal year end was previously March 31. (Please refer to slide 23 for details.) 35