Ajinomoto Co., Inc. · TSE:2802
Ajinomoto — FY2024 Earnings Presentation
48 slides from Ajinomoto's earnings presentation, May 8, 2025
Slide 1: Forecast for FY2025 and Initiatives for Enhancing Corporate Value
Ajinomoto Co., Inc. Forecast for FY2025 (Ending March 31, 2026) and Initiatives for Enhancing Corporate Value Shigeo Nakamura Representative Executive Officer, President & Chief Executive Officer May 8, 2025
Slide 2: Agenda
I. FY2024 Summary Results and FY2025 Forecast II. Initiatives for Enhancing Corporate Value Reference Materials Appendixes: Consolidated Results FY2024 (Ended March 31, 2025) FY2025 Forecast by Segment Note: Business profit (consolidated) in this material: Sales - Cost of sales - Selling expenses, R
Slide 3: Today's Message
Today's Message • Sales and business profit in FY2024 reached their highest levels since the introduction of IFRS in FY2016. Excluding the impact of the Forge Biologics acquisition, business profit continued double-digit growth. While profit attributable to owners of the parent company will be tempo
Slide 4: I. FY2024 Summary Results and FY2025 Forecast
I. FY2024 Summary Results and FY2025 Forecast II. Initiatives for Enhancing Corporate Value
Slide 5: I-1. Digest of FY2024 Results
I-1. Digest of FY2024 Results Sales: Increased Business profit: Increased Profit attributable to owners of the parent (New record) (New record) company ¥1,530.5 billion ¥159.3 billion ¥70.2 billion 106% of FY2023 107.9% of FY2023 80.6% of FY2023 Excluding currency translation: 104% Excluding currenc
Slide 6: I-2. Changes in Business Profit (FY2024 Results by P&L Factor)
I-2. Changes in Business Profit (FY2024 Results by P&L Factor) (¥ bil.) Increased GP from increased sales Investment in intangible and an improved profit structure assets to bring growth 200 180 6.9 -29.3 160 32.5 1.5 Investment in 140 marketing: Approx. -¥2.3 bil. Increased international consumer I
Slide 7: I-2. Changes in Business Profit by Segment
I-2. Changes in Business Profit (FY2024 Results by P&L Factor) (¥ bil.) 180 160 7.4 3.3 2.4 Includes Forge -4.3 -1.5 140 159.3 147.6 Includes Forge -4.3 120 FY23 Seasonings Frozen Foods Healthcare Other FY24 Actual and Foods and Others Actual (¥ bil.) (Ref.) FY2024 Forecast vs. FY2023 Actual 180 2.2
Slide 8: I-3. Sauce and Seasonings, and Quick Nourishment: Sales and Profit Factors
I-3. Sauce and Seasonings, and Quick Nourishment: Breakdown of Sales, and Factors behind Changes in Business Profit Breakdown of the FY2024 sales and factors behind changes in business profit, in Japan and overseas (vs. the previous year). Japan sales: 104% Overseas sales: 106% (local currency basis
Slide 9: I-4. 2030 Roadmap and ASV Indicators
I-4. 2030 Roadmap and ASV Indicators FY24 FY25 FY30 Ref.: Aim for FY22 FY23 Actual (plan) (plan) approx. 3x EPS (vs. FY2022） Approx. ROE 12.9% 11.0% 9.0% 18% 20% (Excluding the impact of the Forge acquisition) (11.4%) (11.3%) (Excluding the impacts of the Forge acquisition + special factors) (14.7%)
Slide 10: I-4. Reference: Growth Paths by Segment
I-4. Reference: Growth Paths by Segment Segment Organic growth Business profit ROIC EBITDA margin Vs. prev. year CAGR Vs. prev. year CAGR FY22 FY23 FY24 FY25 FY22 FY23 FY24 FY25 FY22 FY23 FY24 FY25 FY22 FY23 FY24 FY25 Sauce & actual actual actual plan actual actual actual plan actual actual actual p
Slide 11: I-5. Forecast for FY2025
I-5. Forecast for FY2025 Revenue and profit are projected to hit record highs in the FY2025 full-year forecast We will aim to achieve our ASV indicators through steady organic growth in the Food Products business and through dramatic growth in Healthcare and Others. While the direct impact of the Tr
Slide 12: I-6. Changes in Business Profit (FY2025 Forecast by P&L Factor)
I-6. Changes in Business Profit (FY2025 Forecast by P&L Factor) Aim for sustainable business profit growth by increasing gross profit (GP) through sales growth and improving the GP margin, and by aiming to increase investment in intangible assets by up to the amount of GP growth. Increased GP from i
Slide 13: I-6. Factors behind Changes in Business Profit by Segment
I-6. Factors behind Changes in Business Profit (FY2025 Forecast by Segment) FY2025 Forecast vs FY2024 Actual (¥ bil.) 200 17.0 0.0 180 3.3 5.0 1.9 160 140 180.0 159.3 120 100 FY24 Seasonings Frozen Foods Healthcare and Other Shared FY25 Actual and Foods Others companywide Forecast expenses Shared co
Slide 14: I-7. Sauce and Seasonings, and Quick Nourishment: FY2025 Forecast
I-7. Sauce and Seasonings, and Quick Nourishment: Breakdown of Sales, and Factors behind Changes in Business Profit Breakdown of the FY2025 sales forecast and factors behind changes in the business profit forecast, in Japan and overseas (vs. the previous year). Overseas sales: 109% Japan sales: 107%
Slide 15: I-8. Unit Price Initiatives in Japan
I-8. Sauce and Seasonings, and Quick Nourishment: Unit Price Initiatives in Japan Excluding coffee, Sauce and Seasonings and Quick Nourishment are growing steadily, with new products making contributions. We will work to return to growth in Japan and to bring business profit margin back up. Business
Slide 16: I-8. Seasonings and Foods: Steady Organic Growth Overseas
I-8. Seasonings and Foods: Steady Organic Growth Overseas Solid growth continued in Sauce and Seasonings and Quick Nourishment overseas, with sales and business profit margin hitting new highs in FY2024. In FY2025, too, we will aim for organic growth and for growth through the provision of new value
Slide 17: I-9. Frozen Foods: Growth Driver in the Food Products Business
I-9. Frozen Foods: Growth Driver in the Food Products Business Through ongoing steady growth in existing businesses and new business initiatives in all areas, we aim to expand business with 7% CAGR for the five years of FY2025-2030. Sales in the Frozen Foods business In FY2030, we will aim for: Expa
Slide 18: I-10. Functional Materials (Electronic Materials and Others)
I-10. Functional Materials (Electronic Materials and Others) Premises of the FY2025 ABF* forecast Amid the proliferation of AI and growing demand for generative AI servers, firm demand for general-purpose servers and PC replacement demand (including PCs with edge AI) are expected. We expect sales ov
Slide 19: I-10. Increased Production at AFT Gunma Plant
I-10. Functional Materials (Electronic Materials and Others) Increased production at the Ajinomoto Fine-Techno Co., Inc. (AFT) Gunma Plant Construction of the new Ajinomoto Build-up Film varnish production facility completed in March 2025. We are aiming for full-scale operation within FY2025 followi
Slide 20: I-11. Bio-Pharma Services & Ingredients: CDMO Services Overall
I-11. Bio-Pharma Services & Ingredients Bio-Pharma Services (CDMO Services) Overall Despite the impact in FY2025 from the transfer of Althea (sales: approx. ¥19 billion), the high-value-added area based on our proprietary technologies is growing steadily. By growing the medium molecule business with
Slide 21: I-11. Bio-Pharma Services: Europe and Japan
I-11. Bio-Pharma Services & Ingredients Bio-Pharma Services (CDMO Services) In FY2025, we are planning for a significant increase in profit from stable growth in small molecules and expanded profit from proprietary technologies. FY2024 Review FY2025 Forecast Europe Europe In FY2024, the start of pro
Slide 22: I-11. Bio-Pharma Services: AJICAP
I-11. Bio-Pharma Services & Ingredients Bio-Pharma Services (CDMO Services) AJICAP® Contracts for AJICAP® steadily increased and it is now in a phase where we can expect it to contribute a degree of revenue. Selective transport to target cancer cells • AJICAP® is our proprietary new technology for c
Slide 23: I-12. 2030 Roadmap and ASV Indicators
I-12. 2030 Roadmap and ASV Indicators Aim to steadily reach our FY2025 forecast to reach our 2030 ASV indicators. FY25 FY25 FY30 Ref.: Aim for FY22 FY23 FY24 forecast (plan) (plan) approx. 3x EPS Approx. (vs. FY2022） Approx. ROE 12.9% 11.0% 9.0% 16% 18% 20% (Excluding the impact of the Forge acquisi
Slide 24: I-12. Reference: Growth Paths by Segment
I-12. Reference: Growth Paths by Segment Segment Organic growth Business profit ROIC EBITDA margin Vs. prev. year CAGR Vs. prev. year CAGR FY23 FY24 FY25 FY25 FY23 FY24 FY25 FY25 FY23 FY24 FY25 FY25 FY23 FY24 FY25 FY25 Sauce & actual actual forecast Plan actual actual forecast plan actual actual for
Slide 25: I-13. Assets and Liabilities
I-13. Assets and Liabilities Total assets decreased in FY2024 due to inventory asset reduction initiatives as well as currency translation impacts. * In FY2025, we replaced "net D/E ratio 40%-60%" with "net interest-bearing debt/EBITDA ratio of less than 2" as a financial discipline indicator. As we
Slide 26: I-14. Cash Generation
I-14. Cash Generation In FY2024, we generated over 200 billion yen in cash, surpassing the level of FY2023 and setting a new record-high for operating cash flow, by improving working capital and other means. In FY2025, we will further improve our working capital and increase our capability to genera
Slide 27: I-15. Strategic Investments
I-15. Strategic Investments In FY2024, we made capital investments of about ¥96 billion to accelerate the shift from structural reform to regrowth. In FY2025, we plan capital investments of over ¥110 billion and will actively invest in intangible assets. However, we expect the percentage of investme
Slide 28: I-16. Important Management Indicators
I-16. Important Management Indicators Numbers in FY2024 were affected by expenses incurred in structural reform, but improvement is expected in FY2025. ROE (%) ROA (BP basis, %) 11.0 Approx. Excluding the 18.0 impact of the Approx. 19 Approx. 10 Forge 12.9 acquisition 16 10.0 14.0 10.3 11.6 11.4 11.
Slide 29: I-17. Shareholder Returns and Investment for Growth
I-17. Shareholder Returns and Investment for Growth (Our Thinking under the Medium-Term ASV Initiatives) While generating record-high operating cash flow and making necessary investments for the future, we will aggressively buy back shares as a second tier of investments above WACC. Operating cash f
Slide 30: I-18. Return to Shareholders and Investments for Growth
I-18. Return to Shareholders and Investments for Growth A dividend increase based on a progressive dividend policy is scheduled for FY2025. Today, May 8, we announced a ¥100 billion share buyback and will further enhance shareholder returns. FY2024 (Based on pre-split shares) ◼ Dividend ■配当 (FY2016-
Slide 31: II. Initiatives for Enhancing Corporate Value
I. FY2024 Summary Results and FY2025 Forecast II. Initiatives for Enhancing Corporate Value
Slide 32: II-1. Self-introduction – Shigeo Nakamura
II-1．Self-introduction – Shigeo Nakamura ① 1992 Graduated Department of Environmental Science and Technology, Interdisciplinary Graduate School of Science and Engineering, Tokyo Institute of Technology with M.S. Joined Ajinomoto Co., Inc. electronic materials at Central Research Laboratory 1996 Star
Slide 33: II-2. What We Received from Mr. Fujie and What We Will Evolve
II-2. What We Received from Mr. Fujie and What We Will Evolve We have properly received the Company’s Purpose from Mr. Fujie, our former president, will further evolve our ASV initiatives, and challenge ourselves to achieve our 2030 Roadmap ahead of schedule. The Purpose we received Achieve 2030 Roa
Slide 34: II-3. Evolution of ASV Management
II-3．Scenario: Evolution of ASV management that the new management aims to achieve * *AGW：Ajinomoto Group Way ・Create new value ・Pioneer spirit ・Social contribution・Value people Copyright © 2025 Ajinomoto Co., Inc. All rights reserved 34
Slide 35: II-4. Example of Company-wide Strategy (Business Portfolio Management)
II-4. Example of Company-wide Strategy (Business Portfolio Management) We will carry out portfolio reform ahead of schedule. While accelerating growth in Healthcare, ICT, etc., we will withdraw from businesses in which we cannot expect to build competitive advantages into the future. Concept of busi
Slide 36: II-5. The High-speed Development System
II-5．The High-speed Development System Essence of the High-speed Development System ① • Management resources seen as people, materials, money, information + time ➢ The High-speed Development System Built on three Key Success Factors (KSF): anticipating customer needs, developing multiple solutions q
Slide 37: II-5. High-speed Development System at Ajinomoto do Brasil
II-5．The High-speed Development System The High-speed Development System at the Ajinomoto do Brasil food business (BtoC) A press release from the future (future-dated article about a product launch), “Customer testimonials are key” was published and discussed by all Directors. Concept/product ③ Util
Slide 38: II-5. "Speedily" and "Properly"
II-5．The High-speed Development System Essence of the High-speed Development System ② ➢ It is not all about speed. The concept also incorporates doing things “properly.” “Speedily” and “Properly” ➢ Communicating properly with the customer, ➢ properly and proactively create a new future ➢ by properly
Slide 39: II-6. Our Philosophy
Our Philosophy II-6. (starting with our Purpose, Think Well, which leads to Doing Well!) Corporate slogan Eat Well, Live Well. 志 Purpose Each and every one of Our Philosophy ASV employees Purpose Ajinomoto Group Creating Shared Value AGW Ajinomoto Group Way Developing/embedding Our Philosophy Extern
Slide 40: II-7. Identifying challenges through a cross-SWOT analysis
II-7. Effort to Evolution of ASV management Identifying challenges through a cross-SWOT analysis [Challenge 1] Harnessing strengths for steady growth [Challenge 2] Overcoming weaknesses and seizing opportunities Maintain and expand Enhance the efficiency of management resources (people, materials, m
Slide 41: II-7. 60-day Plan under the new Nakamura management
II-7. Effort to Evolution of ASV management 60-day Plan under the new Nakamura management (outline) <Purpose> To move toward further growth and the evolution of ASV management, review the management issues that should be addressed and set out a direction for actions. ◆ Select several themes from the
Slide 42: Message from the CEO
Message from the CEO • Although we are in an unclear economic environment, we will aim to solidly achieve our targets for FY2025, a milestone along the path of the 2030 Roadmap, by promptly responding to changes. • We will strive to achieve the 2030 Roadmap one year early. We will accelerate busines
Slide 43: Forward-looking statements
➢ Forward-looking statements, such as business performance forecasts, made in these materials are based on management's estimates, assumptions and projections at the time of publication. A number of factors could cause actual results to differ materially from expectations. ➢ This material includes s
Slide 44: Summary of the Fourth Quarter (January-March)
Summary of the Fourth Quarter (January-March) Profit attributable to owners of the Sales: Increased Business profit: Decreased parent company: Decreased ¥379.5 billion ¥21.1 billion -¥12.1 billion 102% of FY2023 91% of FY2023 Dif. with prev. year: -¥21.6 billion Excluding currency translation: 101%
Slide 45: Forecast (Consolidated Statements of Income)
Forecast (Consolidated Statements of Income) Excluding currency FY25 forecast FY24 actual Difference Vs. prev. year translation (¥ Billion) Vs. prev. year (A) (B) (A) –(B) (A) / (B) (A) / (B) Sales 1,618.0 1,530.5 87.4 105% 106% Business profit 180.0 159.3 20.6 113% 112% Other operating income & exp
Slide 46: FY2025 Assumed Exchange Rates and Exchange Rate Sensitivity
FY2025 Assumed Exchange Rates and Exchange Rate Sensitivity Assumed exchange rates (vs. JPY) FY24 actual FY25 forecast FY24 forecast Q4 Q3 Q2 Q1 USD 145.00 152.55 152.37 149.71 155.85 148.89 EUR 157.50 160.55 162.58 164.28 167.85 163.53 THB 4.55 4.49 4.48 4.29 4.24 4.25 BRL 25.00 26.06 26.13 26.89 2
Slide 47: Key Financial Results by Segment for FY2024 (1)
Key Financial Results by Segment for FY2024 (1) Overview of sales by segment Segment/Area Business Overview, FY2024 Growth in both unit prices and volume, excluding coffee. Japan For coffee, while volume declined under repeated price increases, unit price increases Seasonings compensated and resulte
Slide 48: Key Financial Results by Segment for FY2024 (2)
Key Financial Results by Segment for FY2024 (2) Overview of business profit by segment Segment/Area Business Overview, FY2024 Profit decreased overall because of soaring raw material and fuel costs in some Japan Seasonings categories and increased production costs for processed food manufacturers. a