Takeaways from Marketing Strategy Briefing

Research evidence excerpt

Takeaways from Marketing Strategy Briefing

Update

July 14, 2026 09:39 AM GMT

Morgan Stanley MUFG Securities Co., Ltd.+MKao (4452) | Japan Haruka Miyake

Equity Analyst

Takeaways from Marketing Haruka.Miyake@morganstanleymufg.comJully Ussui +81 3 6836-5421

Research Associate

Jully.Akina.Ussui.Nakao@morganstanleymufg.com +81 3 6836-5408

Strategy Briefing

Key Takeaways

July 14 (afternoon) briefing: Our impression was slightly positive. Kao already has

an established marketing framework designed to compete in the AI era by Kao (4452.T, 4452 JT)

leveraging data as a strategic asset. In particular, the company sees growth Top Pick

potential overseas, with tangible results emerging in N. America. Cosmetics & Personal Care Products | Japan

Kao is accelerating decision-making and initiative improvement in its overseas Stock Rating Overweight

Industry View In-Line

businesses with GMiK (platform developed to visualize AI recommendations, Price target ¥3,600

Shr price, close (Jul 14, 2026) ¥3,279

consumer reviews, and competitive dynamics) alongside its newly established DX Mkt cap, curr, basic (bn) -

Marketing Centers in Europe and N. America. Avg daily trading value (bn) ¥10.4

Use of AI enhances Kao’s marketing capabilities, developed over more than 50

years and a major strength; this competence is built on the integration and

utilization of multifaceted, scientific data ranging from R&D to consumer insights.

Signs of success in North America: Biore UV’s US market share rose from 1.2% in

2025 to 5.5% in May 2026, with growth accelerating between March and May. In

California, brand market share rose sharply to 16.2% in May.

The overseas consumer biz posted an OPM of 6.3% in FY25, 6.1ppt below the

domestic biz. Management aims to narrow this gap by accelerating overseas sales