Ajinomoto Co., Inc. · TSE:2802
Ajinomoto — Investor Presentation (March 2019)
50 slides from Ajinomoto's investor presentation, Mar 29, 2019
Slide 1: Initiatives for Achieving ASV's Target of Health and Well-being
The 5th Briefing on Integrated Report Topics Initiatives for Achieving ASV's Target of “Health and Well-being” Masaya Tochio Member of the Board & Corporate Senior Vice President Ajinomoto Co., Inc. March 29, 2019
Slide 2: Striving for sustainable growth heading into FY2020
Striving for sustainable growth heading into FY2020 ■ASV Value Creation Model Resolution of social issues Resolution of social issues Issues of Healthy lifestyle ・Physical: Nutrition imbalance (undernutrition/ overnutrition) ・Psychological: Eating alone & lack of spare time “ Food ” and “AminoScienc
Slide 3: Social issues to be Resolved through the Ajinomoto Group's Business
Social issues to be Resolved through the Ajinomoto Group’s Business ■Materiality matrix of the Ajinomoto Group (Fiscal 2017 revised) Materiality relevant to “21st-century issues of human society” Health and Well-being Food Resources Global Sustainability Business Foundation Copyright © 2019 Ajinomot
Slide 4: Established the Group Shared Policy on Nutrition in July 2017
Established the “Group Shared Policy on Nutrition” in July 2017 1. We aspire to focus on the nutritional needs of people of different regions, ages, lifestyles, and health conditions and provide products and information that improve the nutritional balance of daily meals. 2. We assist people in enjo
Slide 5: Overseas: Solving nutritional issues through flavor seasonings
Overseas: Solving nutritional issues through flavor seasonings (e.g., Masako® in Indonesia) Overnutrition Undernutrition Copyright © 2019 Ajinomoto Co., Inc. All rights reserved. 5
Slide 6: Masako unit sales and flavor seasonings market
Overseas: Solving nutritional issues through flavor seasonings (e.g., Masako® in Indonesia) Overnutrition Undernutrition ■Flavor seasonings market (weight basis) and Masako® unit sales trend (when FY08 = 100) Ajinomoto Co.'s share is approx. 60% each year 350 Masako® unit sales have grown (in line w
Slide 7: AminoIndex technology: Evaluate the risk of the 3 major diseases
AminoScience: AminoIndexTM technology Evaluate the risk of the “3 major diseases” Overnutrition Undernutrition Elderly nutrition with a single blood sample Assesses various disease risks based on balance of blood amino acid concentrations in single blood sample AminoIndexTM Risk Screening (AIRSTM) A
Slide 8: AminoIndex technology: facilities offering tests and direction
AminoScience: AminoIndexTM technology Overnutrition Undernutrition Elderly nutrition ■Trend in no. of facilities able to offer the AICSTM or AIRSTM test AIRSTM launched Units: no. of facilities (Nov. 2017) 1,600 1,420* 1,400 1,300 1,192 1,200 1,107 1,000 927 811 800 AICSTM launched (Apr. 2011) 600 3
Slide 9: Domestic Sales Sector ASV-centered Sales Strategy
Domestic Sales Sector ASV-centered Sales Strategy Hideki Takeuchi Corporate Vice President Deputy General Manager, Food Products Division Ajinomoto Co., Inc. March 29, 2019
Slide 10: Today's Agenda
Today’s Agenda 1. Sales Trends of Seasonings & Processed Foods in Japan 2. Domestic Sales Sector Structure and Strengths 3. Sales Strategy Centered on ASV (Kachimeshi®) 4. Initiatives for Reduced Sodium and Increased Vegetable Intake 5. Kachimeshi® Initiatives 6. Examples of ASV Initiatives with Pro
Slide 11: Today's Agenda
Today’s Agenda 1. Sales Trends of Seasonings & Processed Foods in Japan 2. Domestic Sales Sector Structure and Strengths 3. Sales Strategy Centered on ASV (Kachimeshi®) 4. Initiatives for Reduced Sodium and Increased Vegetable Intake 5. Kachimeshi® Initiatives 6. Examples of ASV Initiatives with Pro
Slide 12: Sales trends of seasonings & processed foods in Japan
1. Sales Trends of Seasonings & Processed Foods in Japan ◆Ajinomoto Co.’s sales trends of seasonings & processed foods (home-use and restaurant and industrial- use) in Japan (FY2013-FY2017) (billion yen) 93.7 Restaurant 93.8 97.1 90.1* 87.5 and industrial- use 97.6 Home- 97.6 101.1 101.6 102.7 use *
Slide 13: Home-use sales have grown despite flat market growth
1. Sales Trends of Seasonings & Processed Foods in Japan ◆Ajinomoto Co.’s sales (home-use) and Japan’s processed foods market (FY2013-FY2017) 106 Ajinomoto Co.’s sales of seasonings & 当社調味料・加工食品（家庭用）売上高推移 Processed foods market 加工食品市場伸長率推移 調味料市場伸長推移 Seasonings market growth rate processed foods (hom
Slide 14: Cook Do value proposition and net sales
1. Sales Trends of Seasonings & Processed Foods in Japan ◆Cook Do®’s value proposition and net sales of menu-specific seasonings Net sales index with launch year of 1978 as 100 Authentic Chinese 800 food made even easier Happy family 700 meals with 2010 Authentic Chinese Chinese food foods other tha
Slide 15: Knorr soups' value proposition and market size
1. Sales Trends of Seasonings & Processed Foods in Japan ◆Knorr® soups’ value proposition and market size Vegetable intake Home-use soups market Pasta added to for summer soup with many ingredients (billion yen) 1,250 125 Made with cold milk 2001 More authentic Healthy and light tastes thanks to Kno
Slide 16: Basic seasonings market has declined slightly over the medium-term
1. Sales Trends of Seasonings & Processed Foods in Japan ◆Market trends of home-use basic seasonings by category (Ajinomoto Co.’s estimates) (billion 単位：億円 yen) うま味調味料 Umami seasonings (billion 単位：億円yen) Japanese flavor 和風だしの素 (billion 単位：億円yen) マヨネーズ類 Mayonnaises seasonings 60 6.0 390 39.0 460 46.0
Slide 17: Realize solutions to social issues through our business
1. Sales Trends of Seasonings & Processed Foods in Japan ◆Health issues facing society as a whole Overnutrition Undernutrition Need to increase Need to reduce ・Protein and amino acid ・Sodium ・Sugar ・Vegetables ・Calories ・Animal fats ・Nutrients we tend to not get enough of Locomotion Undernutrition i
Slide 18: Today's Agenda
Today’s Agenda 1. Sales Trends of Seasonings & Processed Foods in Japan 2. Domestic Sales Sector Structure and Strengths 3. Sales Strategy Centered on ASV (Kachimeshi®) 4. Initiatives for Reduced Sodium and Increased Vegetable Intake 5. Kachimeshi® Initiatives 6. Examples of ASV Initiatives with Pro
Slide 19: Domestic Sales Sector Structure and Strengths: sales network
2. Domestic Sales Sector Structure and Strengths ◆Sales Network in Japan (As of March 2019) Tokyo Branch Niigata Regional Branch Hokkaido Ajinomoto Kanto Branch Nagano Regional 5 branches & 1 sales dept. Co., Inc. Branch 3 branches Osaka Branch Higashi Chugoku 7 regional branches Chushikoku Branch R
Slide 20: Relationships with business customers
2. Domestic Sales Sector Structure and Strengths ◆Relationships with business customers Restaurant and Home-use industrial-use Direct relationships and proposals by Ajinomoto Co. Shopping Processed malls CVS Drugstores Ecommerce HMR Restaurants Cafeteria Distributors food makers 585 companies* CVS,
Slide 21: Use of deliciousness technologies and delicious ingredients
2. Domestic Sales Sector Structure and Strengths ◆Use of deliciousness technologies and delicious ingredients Delicious elements Restaurant and Home-use industrial-use Deliciousness design B-to-C technologies B-to-B-to-C Achieve softness by × combining enzymes and Delicious ingredients Stop spoilage
Slide 22: Proprietary ingredients/technologies
2. Domestic Sales Sector Structure and Strengths ◆Examples of solutions tailored to social issues and needs Rising cost Effective use of Worker Food Health Social issue of raw diversification materials food resources shortages issues Needs of Reduced Lower Substitute Simplify restaurants Stop sodium
Slide 23: Today's Agenda
Today’s Agenda 1. Sales Trends of Seasonings & Processed Foods in Japan 2. Domestic Sales Sector Structure and Strengths 3. Sales Strategy Centered on ASV (Kachimeshi®) 4. Initiatives for Reduced Sodium and Increased Vegetable Intake 5. Kachimeshi® Initiatives 6. Examples of ASV Initiatives with Pro
Slide 24: Resolving the two issues of poor nutrition
3. Sales Strategy Centered on ASV (Kachimeshi®) ◆Resolving the two issues of poor nutrition Agricultural and fisheries Government Distribution producers Experts (Universities, Wholesalers academic societies) Dietetic associations Retailers NPO Bentos and prepared food stores Media Restaurants Proces
Slide 25: Promote resonance with our approaches and activities
3. Sales Strategy Centered on ASV (Kachimeshi®) ◆Background to initiatives Government (national/local) National and local governments ●Health Japan 21* vision Facing difficulty spreading ・Extend people’s healthy life expectancy the word amid lack of ・Prevent onset of lifestyle diseases, etc. means/m
Slide 26: 3-way collaboration: vision for ASV activities
3. Sales Strategy Centered on ASV (Kachimeshi®) ◆Vision for ASV activities Information on health/nutritional Ajinomoto Co. Government issues unique to area Propose solutions to nutritional issues through food 3-way collaboration Distribution Work with mass Trade merchandisers in area to paper propos
Slide 27: Status of initiatives with government
3. Sales Strategy Centered on ASV (Kachimeshi®) ◆Status of initiatives with government Review of FY2018 Objective: Promote regional development and solutions to health/nutritional issues through tie-ups with regional distributors, media, governments, academia, and dietetic associations, etc. Numeric
Slide 28: Today's Agenda
Today’s Agenda 1. Sales Trends of Seasonings & Processed Foods in Japan 2. Domestic Sales Sector Structure and Strengths 3. Sales Strategy Centered on ASV (Kachimeshi®) 4. Initiatives for Reduced Sodium and Increased Vegetable Intake 5. Kachimeshi® Initiatives 6. Examples of ASV Initiatives with Pro
Slide 29: Nutritional issues by region
4. Initiatives for Reduced Sodium and Increased Vegetable Intake ◆Nutritional issues by region Sodium intake Vegetable intake Daily sodium intake Daily vegetable intake (2012 National Health and Nutrition (2012 National Health and Nutrition Survey) Survey) All prefectures are far from the People in
Slide 30: Initiatives for reduced/appropriate sodium intake (1)
4. Initiatives for Reduced Sodium and Increased Vegetable Intake ◆Initiatives for reduced/appropriate sodium intake (1) Iwate Prefecture Shizuoka Prefecture “Reduced sodium day” Reduced sodium intake with Japanese foods Firmly establish foods Proposed Japanese and seasonings with menus with reduced
Slide 31: Initiatives for reduced/appropriate sodium intake (2)
4. Initiatives for Reduced Sodium and Increased Vegetable Intake ◆Initiatives for reduced/appropriate sodium intake (2) Regular counter space Special feature counter space Bento sales area Low sodium soy sauce options Copyright © 2019 Ajinomoto Co., Inc. All rights reserved. 31
Slide 32: Initiative for increased vegetable intake: Love Vege
4. Initiatives for Reduced Sodium and Increased Vegetable Intake ◆Initiative for increased vegetable intake: Love Vege® Aiming to increase vegetable intake Vegetable day with Love Vege® in Aichi Prefecture (lowest vegetable intake in Japan), worked with a local Example display university on joint re
Slide 33: Collaboration with Kyushu-made produce
4. Initiatives for Reduced Sodium and Increased Vegetable Intake ◆ Initiative for increased vegetable intake Collaboration with Kyushu-made produce Proposing delicious ways of eating vegetables Promoting CookDo® as way to prepare/enjoy Vegetables grown with seasonal vegetables compost made of by- pr
Slide 34: Status of initiatives across Japan for regional health issues
4. Initiatives for Reduced Sodium and Increased Vegetable Intake ◆Status of initiatives across Japan for resolving regional health issues (FY2018) Map of initiatives Map of initiatives for increasing for reduced sodium intake vegetable intake Reduced sodium intake Love Vege® initiatives Other initia
Slide 35: Vegetable intake: Cook Do examples
4. Initiatives for Reduced Sodium and Increased Vegetable Intake ◆Vegetable intake: Examples of Cook Do® and Cook Do® Kyo-no-Ohzara® Delicious way of eating vegetables! Cabbage Eggplant Green pepper Tofu Pork Number of people who have eaten Cook Do® and Cook Do® Kyo-no-Ohzara® (FY2017) 520 million 7
Slide 36: Today's Agenda
Today’s Agenda 1. Sales Trends of Seasonings & Processed Foods in Japan 2. Domestic Sales Sector Structure and Strengths 3. Sales Strategy Centered on ASV (Kachimeshi®) 4. Initiatives for Reduced Sodium and Increased Vegetable Intake 5. Kachimeshi® Initiatives 6. Examples of ASV Initiatives with Pro
Slide 37: What is Kachimeshi?
5. Kachimeshi® Initiatives ◆What is Kachimeshi®? Future of Kachimeshi® Losing Recovering Support people working to achieve weight from fatigue their goals with Kachimeshi® Core targets Top athletes Building the Replenishing Conditioning “Meals that help power hard-working people”” energy body ■Apply
Slide 38: Definition of Kachimeshi
5. Kachimeshi® Initiatives ◆Definition of Kachimeshi® Support hard-working people by proposing nutritionally-balanced meals! Support students Prevent Address Support student Support preparing for metabolic locomotive athletes young women entrance exams syndrome syndrome Approach to Kachimeshi® menus
Slide 39: Kachimeshi rollout example (1)
5. Kachimeshi® Initiatives ◆Rollout example (1) ・Mie Prefecture and Ajinomoto Co. partnership agreement ・Planning ・Media/social media exposure⇒Increase visibility With Governor Suzuki of Mie Prefecture ・Distributor side⇒Create economic value ・Tie-ups with community events⇒Establish continuous cycle
Slide 40: Kachimeshi rollout example (2)
5. Kachimeshi® Initiatives ◆Rollout example (2) Mass merchandiser A Mass merchandiser B Sales from Special Display Corners Sales from Special Display Corners (April = 100) (Chinese food fair = 100) Compared to April Compared to Chinese food fair: Chinese food 132% fair: 125% Chinese food fair (last
Slide 41: Kachimeshi rollout example (3)
5. Kachimeshi® Initiatives ◆Rollout example (3) Company cafeterias HMR For hard-working people on the job Delicious and simple Kachimeshi® Well-balanced Kachimeshi® set meals Hearty soup filled with vegetables and sources of protein 3 types of hearty soup! Bringing menus used by top athletes for Cre
Slide 42: Kachimeshi rollout example (4)
5. Kachimeshi® Initiatives ◆Rollout example (4) Supporting students preparing for entrance exams with everyday meal options! Perfect for students Partnership with major college prep school preparing for the entrance examination Supporting students preparing for entrance exams! Developing Kachimeshi®
Slide 43: Kachimeshi rollout example (5): drugstores
5. Kachimeshi® Initiatives ◆Rollout example (5) Initiatives at drugstores Menu development and recipe contest by dieticians for drugstores Nutritional consults Sales promotion items Information provision × In-store campaigns Copyright © 2019 Ajinomoto Co., Inc. All rights reserved. 43
Slide 44: Introducing various initiatives
5. Kachimeshi® Initiatives ◆Introducing various initiatives Kachimeshi® class for junior athletes through tie-up with sports organizations ・Kachimeshi® class linked to seminar held by karate magazine called JKFan ・Dialogue with national team members on meals and snacks, along with explanation of Kac
Slide 45: 45,000 stores nationwide
Total of 45,000 stores* nationwide Promoting Kachimeshi® in-store! *Estimate for FY2018 Tokyo Osaka Kyushu Nagoya Tohoku Copyright © 2019 Ajinomoto Co., Inc. All rights reserved. 45
Slide 46: Reach out to consumers from various angles
5. Kachimeshi® Initiatives ◆Future rollout (1) Promote initiatives tailored to channels Linked with branch PR Mass Prepared Company Drugstore tie-ups Dorms of college prep Dietetic association Boards of merchandiser foods at mass cafeterias schools tie-ups education displays merchandisers ドライグロサリー D
Slide 47: Aim for total of 60,000 stores
5. Kachimeshi® Initiatives ◆ Future rollout (2) In-store activities: In-store campaigns and in-store marketing Aim for total of 60,000 stores* *FY2019 target Digital ads Visibility Understanding Action Spread Kachimeshi® menu Banner ads Kachimeshi® page AP Kachimeshi® page submissions Increase visib
Slide 48: Today's Agenda
Today’s Agenda 1. Sales Trends of Seasonings & Processed Foods in Japan 2. Domestic Sales Sector Structure and Strengths 3. Sales Strategy Centered on ASV (Kachimeshi®) 4. Initiatives for Reduced Sodium and Increased Vegetable Intake 5. Kachimeshi® Initiatives 6. Examples of ASV Initiatives with Pro
Slide 49: AminoIndex initiatives in the co-op channel
6. Examples of ASV Initiatives with Processed Food Makers and Future Direction ◆AminoIndexTM initiatives in the co-op channel AminoIndexTM An exam for evaluating a person’s current health condition and possibility of illness based on the balance of amino acid concentration in the blood. Can evaluate
Slide 50: This is Ajinomoto Co.'s strength
Deliver proposals on healthy and nutritionally balanced foods to all stakeholders based on our strengths in technology, materials and sales Specialty like no other company This is Ajinomoto Co.’s strength Copyright © 2019 Ajinomoto Co., Inc. All rights reserved. 50