highlights for fy2002 - kaohighlights for fy2002 april 22, 2003 kao corporation takuya goto these...
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Highlights for FY2002
April 22, 2003Kao Corporation
Takuya Goto
These are the translation of materials used for the analysts meeting of April 22, 2003 in Japan.
This presentation material contains forward-looking statements that are based on management's estimates, assumptions and projections as of April 22, 2003.Some factors, which include, but are not limited to, the risks and uncertainty associated with the worldwide economy, competitive activity and currency fluctuation, could cause actual results to differ materially from expectations.
(The figures in this presentation material are rounded down.)
The presentation material in PDF format is available on our website: http://www.kao.co.jp/e/ir_e/analystmtg/index.html
Agenda
1. Kao’s Growth Strategy- Domestic Operations- International Operations
2. Corporate Governance and management reforms
Market share gains
Consumer Products/Cosmetics - Japan
- An Offensive Posture -
Ability to graspconsumer needs/wants
Technological seeds
Superior R&D
Unique, innovativeand value-added
New market-creating
Products
Aggressive spendingfor marketing and
sales promotion
Effective supplychain management
Category management/retailer support activities
Sales/Distribution
Profitable growth under challenging economic condition
Healthcare/Functional Food
Econa
DiacylglycerolVegetable sterol
Cooking oilMayonnaise type (*)Dressing (*)
Prevention of fat depositLowering cholesterol
Healthya
Concentrated tea catechin
Ready-to-drink green tea
Suitable for people who are concerned about body fat
Brand
Producttype
Keyingredient
Healthbenefitsclaim
(*) The mentioned products contain Econa Cooking Oil, however, they do not have such health benefits as above mentioned.
SOO Relaxation
Clear Clean PlusWhitening Whitening the teeth
Clear Clean PlusRecalcification of teethPrevention of cavitiesin early decay
Success Flavacyte Hair restoration
(*) Monofluorophosphate
New Key Chemicals
Brand Product featuresKey chemicals
Cedrol
Malic acids
MFP(*)/Alkaline granulesNaF/Xylitol
t-flavanone
Consumer Products - Overseas (1)
1988 Andrew Jergens1989 Goldwell (KPSS)
1998 Curél1999 Alliance with SC Johnson
2000 Ban2001 ADM Kao2002 KMS Research Inc Kao (China) Holding
John Frieda Kao Transfer (Hangzhou)<October 2002>
M&A Joint Venture/Other
.....
.....
Consumer Products - Overseas (2)
Asia & Oceania
NorthAmerica Europe
Skin Care Bioré Jergens, BioréBan, Curél (Bioré)
ProfessionalHair Care Goldwell Goldwell
KMSGoldwellKMS
Fabric & HomeCare
Attack,Magiclean, Haiter
Feminine &Baby Care Laurier, Merries
Health Care/Functional Food Enova
Hair CareSifoné, Feather
LavenusGuhl
John FriedaJohn Frieda
- Brand Portfolio -
Healthy growth
Concentrate resourceson selected brandsReinforce the unified management in the regionReallocate production sites
Build solid foundationEstablish the brandsbacked by strategicmarketing investmentExpand to popularmarket through the joint-venture
China
In process of recoveryMaximize restructuringbenefits Reinforce core business for further profitable top-line growth
Taiwan
China, Hong Kong TaiwanASEAN
Consumer Products - Asia
- For reinforcement and expansion -
Consumer Products - China
- Strengthen the Market Presence -
Premium
Popular
Premium brands
Kao Corporation Shanghai-Bioré facial cleanser-Attack laundry detergent-Sifoné shampoo-Laurier sanitary napkins
Popular brands
Kao Transfar (Hangzhou) Co. Ltd-Transfar laundry
detergent and dishwashing detergent
Establish the brands
Expand to the popular market
Personal Care in North America/Europe
- Toward Comprehensive Personal Care -
Skin care Hair carePopular
Premium
Hand & Body Face Antiperspirant/Deodorant
Personal care
Mass Niche
Jergens
Ban
Bioré
CurélJohnFrieda
Guhl
Oleo Chemicals/ Surfactants
Focused Fields in Chemical Business
Specialty ChemicalsToner and toner binder
Specialty ChemicalsAroma chemicals
- Benefit from global production and market-specific product development capabilities
Directors’remuneration
Separationbetween the supervisoryfunction andexecution
External eyes
Compliance
Continuous Enhancement of Corporate Governance- Toward More Profitable and Ethical Company -
1999 2000 2001 2002 2003
Advisory Committee
Increase in number of Outside Corporate Auditors
Outside Directors
Committee for the Examination of the Nominees for the Board of Directors and the President
FY
Executive Officer System
Assigning certain position titles(*)
to executive officers instead of directors
Performance-linked bonus system based on EVA
Stock Option Plan for Directors
Retirement Allowance for Directors abolished
Compensation Advisory Committee
Compliance Committee
Corporate Audit Services
Cor
pora
te g
over
nanc
e
*Namely President, Senior Executive Vice President, Executive Vice President
Corporate Ethics Committee (1997-)
Internal Audit (1992-)
(Conference by Corporate Auditors of Domestic Group Companies)
Out
side
Law
yers
Board of Directors
Chairman of the Board
Internal Directors
Outside Directors
Board of Directors
Chairman of the Board
Internal Directors
Outside Directors
Shareholders MeetingShareholders Meeting
Committee for the Examination of the Nominees for the Chairman of the Board
of Directors and the President(Outside Directors / Outside Corporate
Auditors)
Compensation Advisory Committee(Representative Directors / Outside
Directors)
Corporate Audit Services
Management Committee“Keiei-Kaigi”
Executive OfficersPresident
Senior Executive Vice PresidentExecutive Vice President
SupervisionCompliance Committee
Consultation on Compliance
Internal CoordinatorExternal Coordinator
Accounting & Finance/Risk Management/Legal & ComplianceOther Business Divisions
Certified Public Accountants
子会社、関係会社子会社、関係会社子会社、関係会社子会社、関係会社子会社、関係会社子会社、関係会社子会社、関係会社子会社、関係会社Affiliates
Board of Corporate Auditors
Inde
pend
ent A
udito
rsIn
depe
nden
t Aud
itors
Board of Corporate Auditors
Internal Corporate Auditors
Outside Corporate Auditors
Board of Corporate Auditors
Internal Corporate Auditors
Outside Corporate Auditors
Audit
Audit
Audit
Audit
Audit
AuditAudit Audit
Audit
Audit
EPS and Net IncomeNet Income (Billion yen)
Adjusted Net Income per Share
Net Income
Weighted Average # of Outstanding Shares (MM)
Net Income per Share (Yen)
FY F
560577600615625620611601600600599598598593587577527512
467411390390
353327
64.062.4
3.05.2 5.5
7.09.3 10.5
12.9 13.4
17.5 17.820.0 20.0 20.4
22.123.6 24.5
27.5
34.7
52.1
59.4 60.2
24.4
115.2
108.1
9.214.9 14.3
18.022.8 22.6
25.2 25.530.4 30.3
33.7 33.5 34.137.0
39.5 40.945.9
40.1
56.0
83.4
96.7100.4
0
10
20
30
40
50
60
70
80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 030
20
40
60
80
100
120
140
Expansion of marketshares of our corebrands
Development of newmarket-creating products and acceleration of growth in new businesses
Corporate governanceand managementreforms
Strengthening and expansion of globalbusinesses
Achieve sustainable profitable growth and build corporate value
Basic Management Strategy