Ajinomoto : ASV Report (Integrated Report) 2022 (A3-size)

Ajinomoto Group

ASV Report 2022

Integrated Report

Cover Story

The image concept of people enjoying themselves as they prepare and eat food and engage in exercise shows the outcomes that the Ajinomoto Group is aiming for by providing the "essence of happiness" to the world. We believe that pursuing our purpose of "unlocking the power of amino acids to resolve the food and health issues" and promoting health and healthy lifestyles conveys our message of "Eat Well, Live Well."

Inquiries

Ajinomoto Co., Inc.

15-1, Kyobashi 1-chome,Chuo-ku, Tokyo

104-8315, Japan

Global Communications Department

E-mail: [e-mail]

URL: https://www.ajinomoto.com

Investor Relations, Global Finance Department

E-mail: [e-mail]

URL: https://www.ajinomoto.co.jp/company/en/ir/

Report Integrated 2022 Report ASV Group Ajinomoto

Ajinomoto Group

ASV Report 2022

Integrated Report

	AjiPanda® is the
Unauthorized copying or reproduction of this document is prohibited.	global ambassador
©Ajinomoto Co., Inc. 2022	for the Ajinomoto Group

Toward the ASV Report conveying our approach to ASV management and relevant activities

We have renamed our integrated report the ASV Report and positioned it as a report that conveys our approach to ASV management and our activities under this approach.

Editorial policy

Purpose

Unlocking the power of amino acids to resolve the food and health issues.

Vision

Contribute to greater wellness for people worldwide, unlocking the power of amino acids to resolve the food and health issues associated with dietary habits and aging.

	Outcome
By 2030, help extend the healthy life	By 2030, reduce our environmental impact by
expectancy of 1 billion people	50%, while improving business performance

ASV Management

The Ajinomoto Group has grown by pursuing ASV (The Ajinomoto Group Creating Shared Value).

ASV represents our unchanging commitment to help resolve social issues and create value through our business.

This remains our fundamental management policy.

Our Founding Aspiration

This ASV Report conveys-in the Message from the President and CEO-the aspirations and commitment of newly appointed President and CEO Taro Fujie to steadily promote ASV management across the entire Ajinomoto Group and further enhance corporate value. This report also features the Group's growth strategy for medium- to long-term value creation, progress, and current outcomes along with efforts to strengthen corporate governance and promote sustainability under the new organizational structure launched in 2021.

We hope the report will encourage and stimulate dialogue with our shareholders, investors, and all other stakeholders.

Organizational scope

This report covers the activities of the Group, comprising, unless otherwise noted, Ajinomoto Co., Inc. (the Company) and its consolidated subsidiaries and equity-method affiliates (as of March 31, 2022). When comprehensive Group information is not available, the data parameters are explicitly defined.

Period covered by this report

Fiscal 2021 (April 1, 2021 to March 31, 2022)

Past circumstances, data, and recent cases outside of this time period are presented when appropriate.

Precautions related to forward-looking statements

Business performance forecasts and other forward-looking statements presented in this report are based on management estimates, assumptions, and projections at the time of publication. The Company does not guarantee that the forward-looking statements will be fulfilled. Various factors could cause actual results to differ materially from expectations.

Eat Well, Live Well.

Discovered that the umami	Discoverer of the umami taste	Ajinomoto Group founder	Launched AJI-NO-MOTO®,
component in kombu (kelp)	the world's first umami
Dr. Kikunae Ikeda	Saburosuke Suzuki II
broth is the amino acid	seasoning based on
Tokyo Imperial University Professor
glutamic acid		glutamic acid

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(soups, instant noodles, etc.)

Pursuit of "unlocking the power of amino acids" since our founding

History of business growth driven by the pursuit of amino acids

Since it released the world's first umami seasoning more	of "Eat Well, Live Well."
than a century ago, the Ajinomoto Group has expanded	By combining the various powers of amino acids, we
its business reach globally through the development of	have been able to develop a multifaceted business
innovative manufacturing methods and ways of using	portfolio spanning foods, seasonings, healthcare, and
amino acids while passing down the founding aspiration	electronic materials.

Business growth centered on amino acids

For more than a century, the Ajinomoto Group has unlocking the power of amino acids to pursue realizing both deliciousness and well-being, while passing down its founding aspiration of "Eat Well, Live Well."

Glutamic acid

Seasonings (AJI-NO-MOTO®, flavor seasonings, menu-specific seasonings, mayonnaise, etc.)

As a leader in amino acids, our global business operations span a wide range of domains centered around the core food products and AminoScience businesses.

Wide ranging contributions by unlocking the power of amino acids

Discovery of umami

1908 Dr. Kikunae Ikeda discovered that glutamic acid is an umami ingredient of dashi broth

Other

amino acids

Utilization

Development of usage applications

Utilization

Umami seasonings for processed food manufacturers Processed foods

Frozen foods

Amino acids for pharmaceuticals and foods Bio-Pharma Services

Supplements

Sweeteners Animal nutrition

Around 20% of the human body is comprised of proteins and 20 types of amino acids make up these proteins.

Amino acids have a flavoring function to create delicious meals, a nutritional function to promote growth and development, a physiological function to support physical health, and reactivity to create new functions.

The Ajinomoto Group has been studying amino acids since its founding over 100 years ago. Our research has not only helped to explain how amino acids function, but also yielded a wide range of new materials and

technologies created using amino acids. When we talk about the power of amino acids, we are referring to all of this.

Amino acids are considered the building blocks of life itself-the source of life-because they are found in the most fundamental elements of humans and other animals as well as vegetation and microorganisms. Unlocking the power of amino acids makes it possible to widely contribute to deliciousness, health and nutrition, and even the natural environment.

Cosmetic ingredients

Electronic materials

Changes in business/operational profit and business portfolio

Other		Healthcare	Food products
Food products	products
Healthcare 9%	67%
84%	36%
products
7%
Business			Business
portfolio			portfolio	Other
			FY2021	-3

The four functions of amino acids

Flavoring	Nutritional	Physiological	Reactivity
function
function	function
Create delicious	Promote growth	Support	Create new
and development,
meals	physical health	functions
recovery

FY1993

%

Business/operational profit
1988	2000	2010	2021 (FY)

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The Ajinomoto Group today

Six core businesses

The Ajinomoto Group focuses its management resources on six core businesses in order to contribute to solutions to social and environmental issues while addressing the diversification of consumer lifestyles and values and changes in consumer preferences around the world. We will

continue to tackle new challenges without compromise, aiming to become a solution-providing group of companies for food and health issues by utilizing the Ajinomoto Group's uniqueness of unlocking the power of amino acids and turning that power into value that contributes to the world.

Sauce & Seasonings

We provide a variety of products including umami seasonings AJI-NO-MOTO®, flavor seasonings for home-made dishes, and menu-specific seasonings to support smart cooking to more than 130 countries and regions around the world. Through our products, we contribute to deliciousness that suits the local consumer preferences as well as to improve nutrition of consumers.

Umami seasonings: AJI-NO-MOTO®

Sales/business profit/sales by region
Seasonings & Foods	Frozen Foods		Healthcare and
Seasonings & Foods	Others
¥664.2 billion	¥221.7 billion	¥81.2 billion	¥43.3 billion

Seasonings & Foods

Quick Nourishment

We provide foods that respond to the needs for ready-to-eat meals, individual meals, and healthy meals, such as soups, beverages, and instant noodles, and products that supplement nutrition including those for medical institutions. The business contributes to consumers' health and well-being by addressing globally changing lifestyles.

Beverage: Birdy®

FY2021 sales

¥1,149.3 billion

Healthcare and

FY2021 business profit

¥120.9 billion

Solution & Ingredients

We supply products and services globally to our customers (consumer foods industry and food services) to solve their challenges from the consumers' point of view. The business provides Integrated Food Solutions comprising our taste/Deliciousness Technologies based on specialty ingredients.

Texture improver: Ajinomoto KK Seasoning for Juicier Kara-Ageand Meat

Others

¥251.2 billion

Other

¥12.1 billion

Frozen Foods	Other
-¥0.6 billion	-¥3.0 billion

Frozen Foods

We provide products mainly in the Asian food category such as gyoza

Frozen Foods (Japanese-style dumplings) and fried rice to markets in Japan, North America, and Europe. With a focus on deliciousness, the business meets consumers' needs for quick and easy cooking and healthy frozen foods.

Gyoza

EMEA
¥115.6 billion
The Americas
¥262.5 billion	FY2021
Sales by region
Asia
¥285.2 billion

Japan

¥485.8 billion

Healthcare and Others

Healthcare

We provide amino acids and amino acid-based products and services to customers globally in a broad range of industries including pharmaceuticals, foods, and cosmetics. The business helps to improve consumers' quality of life and support comfortable lifestyles utilizing the nutritional, physiological, and flavoring functions of amino acids.

Electronic Materials

We supply products globally centered on Ajinomoto Build-upFilm® (ABF), an interlayer insulating material for semiconductor packages. These products are mainly used in PCs, servers for data centers, and communications network applications, playing a key role in providing more comfortable lifestyles to consumers together with our customers.

Fundamental foods:

Glyna®

Ajinomoto Build-up Film® (ABF)

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Contents

Introduction

Ajinomoto Group Objectives	2
Pursuit of "Unlocking the Power of	3
Amino Acids" since Our Founding

Message from the President and CEO

Message from the President and CEO	9
Meet President Fujie	17
Successor Nomination Process	18

Medium- to Long-term

Growth Strategy

CIO Shiragami Talks about
the Sustainable Growth Strategy	20
Business Model Transformation	23
Megatrends and Our Four Innovation Areas	27
Enhance Intangible Assets	30
Human Assets	31
Technology Assets	39
Customer Assets	41

Current Growth

Ajinomoto Group Materiality	45
Approach to Realizing Our Outcomes	46
Progress of 2020-2025
Medium-Term Management Plan	54
Interdivisional Discussion	59
Review of Financial Results by Segment	61
Growth Strategies for the Core Businesses	63
Financial Capital Strategy	69

Corporate Governance

Discussion between the President &	75
CEO and the Chair of the Board
Activities of the Sustainability	77
Advisory Council
Corporate Governance	79
Directors and Executive Officers	92

Performance and Information

Stakeholder Engagement	97
Ajinomoto Group Supply Chain	99
Ten-Year Summary of Financial Data	101
Performance Data	103
Global Network	105
Corporate Data / Stock Information /	107
Stock Performance
External Evaluations /	108
Key Communication Materials
Glossary	109

Message from the	Medium- to Long-term	Current Growth	Corporate Governance
President and CEO	Growth Strategy

01

Message from the President and CEO

Message from the President and CEO	9
Meet President Fujie	17
Successor Nomination Process	18

Sharing	Evolving
Purpose	Speed Up
Passion	Scale Up
OE

(Operational Excellence)

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