Ajinomoto Malaysia : Annual Report 2023

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ANNUAL REPORT 2023

INSIDE THIS REPORT

02

Corporate Information

03

Management

Discussion and

Analysis

10

Director's

Profile

15

Corporate Governance

Overview

Statement

30

Additional Compliance Information

31

Statement of Directors' Responsibility in Relation to the Financial Statements

32

Statement on Risk Management and Internal Control

35

Audit Committee Report

39

Statistics of Shareholdings

41

Financial Highlights

42

Financial Statements

101

List of Properties

102

Notice of Annual General Meeting

108

Sustainability Statement

-

Form of Proxy

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DIRECTORS

Tan Sri Dato' (Dr.) Teo Chiang Liang (Chairman)

Koay Kah Ee

(resigned w.e.f. 31 March 2023)

Cheong Heng Choy

Tomoharu Abe (Managing Director /

Chief Executive Officer) (resigned w.e.f. 30 June 2023)

Riichiro Osawa (Managing Director /

Chief Executive Officer) (appointed w.e.f. 1 July 2023)

Shunsuke Sasaki

(Chief Finance Officer)

Dominic Aw Kian-Wee (resigned w.e.f. 31 May 2023)

Kamarudin Bin Rasid

(retired w.e.f. 31 March 2023)

Azhan Bin Mohamed

Norani Binti Sulaiman

Noriko Fujimoto

Takahiro Sato

(resigned w.e.f. 31 May 2023)

Elaine Tan Ai Lin

(appointed w.e.f. 24 February 2023)

Yong Kum Cheng (appointed w.e.f. 1 April 2023)

AJINOMOTO (MALAYSIA) BERHAD 196101000252 (4295-W)

CORPORATE

INFORMATION

BANKERS

MUFG Bank (Malaysia) Berhad

Malayan Banking Berhad

Standard Chartered Bank Malaysia Berhad

AUDITORS

KPMG PLT

SOLICITORS

Lee, Ling & Partners

SECRETARIES

Chua Siew Chuan (MAICSA 0777689)

SSM PC No. 201908002648

Yeow Sze Min (MAICSA 7065735)

SSM PC No. 201908003120

REGISTERED OFFICE

Lot L1-E-5A and L1-E-5B,

Enterprise 4,

Technology Park Malaysia,

Lebuhraya Puchong - Sg. Besi,

Bukit Jalil,

57000 Kuala Lumpur, Malaysia

Tel : [phone]

Fax: [phone]

Customer Service: https://www.ajinomoto.com.my/ customer-service

Company / Corporate inquiries: [e-mail]

Business / Product inquiries: [e-mail]

SHARE REGISTRAR

Securities Services (Holdings) Sdn. Bhd.

Level 7, Menara Milenium, Jalan Damanlela,

Pusat Bandar Damansara, Damansara Heights, 50490 Kuala Lumpur

Tel : [phone]

Fax: [phone]

Email: [e-mail]

STOCK EXCHANGE

LISTING

Main Market of the Bursa Malaysia Securities Berhad

02	ANNUAL REPORT 2023

AJINOMOTO (MALAYSIA) BERHAD 196101000252 (4295-W)

MANAGEMENT

DISCUSSION & ANALYSIS

Our Business

History & Milestones

Ajinomoto (Malaysia) Berhad ("the Company") first started its business operation in Malaysia in 1961 as a monosodium glutamate ("MSG") distributor imported from its parent company in Japan under the brand, AJI-NO-MOTO®. In 1965, the Company's business grew rapidly with the production of MSG locally and subsequently other food seasoning products at its then factory in Jalan Kuchai Lama, Kuala Lumpur.

The Company is one of the very first Japanese companies to be set up in Malaysia and has since established itself as a responsible and reputable food manufacturer and distributor for a range of umami food seasoning products trusted by Malaysians. AJI-NO-MOTO® Umami seasoning has been an indispensable item in almost every household and food service vendor. Nowadays the Company's business is expanding globally, furthermore the commencement of Company's new plant at Bandar Enstek has fully operated from December 2022.

					• Establishment of Production
	Commencement of			• Launch of PAL SWEET®	2 (seasonings and food
	Launch of AJI-EKI™	Inauguration of	production line) factory
Establishment	AJI-NO-MOTO®	Sweetener	• Launch of AJIMATE™ Taste	Launch of
(Hydrolysed	Effluent Treatment
of Ajinomoto	plant operation	• Launch of Hydrolysed	Enhancing Seasoning	Seri-Aji® Menu
(Malaya)	Awarded HALAL	Vegetable Protein	Management	Vegetable Protein (HVP)	• Awarded AJI-NO-MOTO®	Launch of Slim Up™
Liquid)	(SALAM)	Specific
Co., Ltd	Certification	Powder	Product Certification	Seasoning	Sweetener
1961	1965	1971	1982	1989	1993	1996	2000

1963	1968	1978	1988	1992	1994	1998
Corporate name	Company name	Launch of AJI-SHIO®	Launch of	Launch of	Launch of	Awarded
was changed to	was changed to	Table Topping	AJI-PLUS™	AJI-AROMA™	AJI.MIX™	ISO 9001
Ajinomoto	Ajinomoto	Seasoning	Blended Flavour	Flavour Enhancing	Blended	Certification
(Malaysia)	(Malaysia) Berhad		Enhancer	Seasoning	Seasoning
Sdn Bhd	as the public
	company

2017	2014	2012	2011	2010	2008	2006		2005	2004	2003
Hydrolysed	Establishment	Establishment	50th	Launch of	Awarded	Awarded	•	Launch of	Awarded	Launch of
Vegetable	of ASEAN	of Chicken	Anniversary	AJINOMOTO®	OSHAS 18001	ISO 14001		VONO®	HACCP
	TUMIX® Stock
Protein (HVP)	Application	Meat	of Ajinomoto	Chicken Stock	Certification	Certification		Instant Soup	Certification
	Seasoning
process	Centre	Powder Plant	(Malaysia)				•	Launch of
improvement			Berhad					ACTIVA™ TG
								Series

2019	2020	2021	2022	2023
• Launch of	• Launch of	• Launch of Seri-Aji®	Establishment of new	• Launch of Seri-Aji® Curry Fried Rice Seasoning
Rasa Sifu™	aminoVITAL®
Fritter Seasoned	plant at Bandar Enstek,	and Seri-Aji® Chicken Soup Seasoning Powder
All in One	Jellly Flavoured
Flour	Negeri Sembilan, as a	Launch of AJINOMOTO® Chicken Gyoza
Seasoning	Drink with
• Launch of Seri-Aji®	'Global	Launch of AJIRISE™ K and AJIRISE™ UM
	Amino Acids
	Banana Fritter Flour	Customer-Centric Halal
			Food Company'

ANNUAL REPORT 2023

03

AJINOMOTO (MALAYSIA) BERHAD 196101000252 (4295-W)

MANAGEMENT DISCUSSION & ANALYSIS

(cont'd.)

Our Policy

The Company's Vision is to be a "Global Customer-Centric Halal Food Company" to contribute towards enhancing people's food and well-being through our Specialties and Innovative Solutions. It is the Company's policy to consistently develop and distribute high quality and safe food products that meet customers' needs and satisfaction, and at the same time ensure compliance with international and local laws and regulations for food manufacturing. The Company also concurrently supports and implements strategies to meet ESG requirements and standards in its business plans and policies.

CERTIFIED TO MS1500:2019	CERTIFIED TO ISO 9001:2015	CERTIFIED TO ISO 14001:2015	CERTIFIED TO ISO 45001:2018	CERTIFIED TO MS 1480:2019
REF. NO.: 1092-02/2004	CERT. NO.: QMS 00504	CERT. NO.: EMS 00368	CERT. NO.: OHS 00302	CERT. NO.: 53-A4-01757
Malaysian Standard on Halal Food	Quality Management Systems	Environmental Management Systems	Occupational Health And Safety	Food Safety according to Hazard
General Requirements	("QMS")	("EMS")	Management Systems	Analysis and Critical Control Points
			("OHS")	System
				("HACCP")

As a responsible employer, the Company is committed to providing a safe and healthy working environment for all its employees.

Product Range

Consumer Products

For the past 6 decades, the Company has continuously strived to develop new products in meeting consumer needs. To-date, the Company has manufactured and distributed a wide range of seasoning and food products which include chicken stock, all-in-one seasoning, menu seasoning, pepper, sweetener and jelly drink with amino acids. Recently, the Company launched 2 new variants of Seri-Aji® seasoning - Seri-Aji® Curry Fried Rice Seasoning and Seri-Aji® Chicken Soup Seasoning Powder to provide simple and convenient cooking with exceptional deliciousness for Malaysian households. The Company has also added a new product category with the launch of Frozen Gyoza, an authentic Japanese cuisine which consumers are able to enjoy at home without fuss.

The Company will continue to expand and improve its product range with innovative, high quality and convenient products to meet changing consumer trends, behaviours and needs. Additionally, the Company will continue interacting with households and food service vendor through social media and via the establishment of a new platform "DtoU" (Digital to User) through its own e-Commerce channel.

Industrial and Food Service Products

The Company manufactures a wide range of taste and flavour enhancing products as well as binders and texture improvers for the food manufacturing and food industries, which are marketed under the Company's TENCHO and ACTIVA® brandnames. These products are widely used in various processed food such as instant noodles, soups, snacks, sauces, dairy products, processed meats and seafood. In its efforts to meet customer's requirements for simple to use seasonings, the Company launched a new product AJIRISE™, which is a yeast extract product that has savoury sensation while enhancing the original taste and flavour.

04	ANNUAL REPORT 2023