Ajinomoto Co., Inc. · TSE:2802
Ajinomoto — Investor Presentation (April 2018)
41 slides from Ajinomoto's investor presentation, Apr 10, 2018
Slide 1: Generating social value and economic value through R&D
Generating social value and economic value through R&D Takeshi Kimura Member of the Board & Corporate Vice President April 10, 2018 Copyright © 2018 Ajinomoto Co., Inc. All rights reserved.
Slide 2: 1. The Ajinomoto Group seen from an R&D perspective 2. Positioning of R&D and
1. The Ajinomoto Group seen from an R&D perspective 2. Positioning of R&D and its overall picture in the FY17-19 MTP 3. Examples of solutions using technology 4. Descriptions of representative core technologies 5. Open and linked innovation concepts and initiatives Copyright © 2018 Ajinomoto Co., In
Slide 3: 1. The Ajinomoto Group seen from an R&D perspective
1. The Ajinomoto Group seen from an R&D perspective Copyright © 2018 Ajinomoto Co., Inc. All rights reserved.
Slide 4: R&D framework: organizational structure and staff numbers
1. The Ajinomoto Group seen from an R&D perspective R&D framework: organizational structure and staff numbers Approx. 1,700 R&D staff Approx. 350 Ph.D. holders Business Units Group Companies R&D Planning Dept. Institute of Food Research Institute for Research Labs. of Science and Bioscience Products
Slide 5: R&D expenses
1. The Ajinomoto Group seen from an R&D perspective R&D expenses (¥ Billions) FY2015 FY2016 FY2017 FY2019 Result Result Forecast MTP R&D expenses 26. 5 27. 1 28. 8 29. 0 (Japan Food Products) 3. 5 3. 4 3. 9 - (International Food Products) 3. 3 3. 5 3. 8 - (Life Support) 4. 8 5. 0 5. 4 - (Healthcare)
Slide 6: Breakdown of R&D expenses and comparison with other companies
1. The Ajinomoto Group seen from an R&D perspective Breakdown of R&D expenses and comparison with other companies (FY2016) (%) R&D expenses / Sales ratio 3.5 3 Japan integrated beverages Other Other 2.5 International Healthcare tobacco Basic research 2 Life Support Japanese domestic tobacco Internat
Slide 7: Patents
1. The Ajinomoto Group seen from an R&D perspective Patents External assessment Comparison of intellectual property number Ranking by Patent Result Co., Ltd.* (comparison with domestic food per ¥10 bil. of sales product companies) (Comparison with top 10 global food product companies) Food Products,
Slide 8: Conceptualization of "R" and "D"
1. The Ajinomoto Group seen from an R&D perspective Conceptualization of “R” and “D” • “R” (Research): creation from 0 to 1 • “D” (Development): from 1 to 10 (creating viable products, introducing new production processes, etc.) through to finished results Conceptual diagram and examples Research De
Slide 9: Theme management
1. The Ajinomoto Group seen from an R&D perspective Theme management Development stages R D Corporate Business Departments Future Corporate Themes Projects Consumer Foods Resource-saving Taking individual fermentation technologies themes to the next stage Development of (multiple) Roll out to each p
Slide 10: 2. Positioning of R&D and its overall picture in the FY17-19 MTP
2. Positioning of R&D and its overall picture in the FY17-19 MTP Copyright © 2018 Ajinomoto Co., Inc. All rights reserved.
Slide 11: Technology is the platform supporting Ajinomoto Co.'s business
2. Positioning of R&D and its overall picture in the FY17-19 MTP (Abridgment from FY2017-2019 Medium-Term Management plan) Genuine Global Specialty Company The Ajinomoto Group Creating Shared Value (ASV) ¥102. 5 billion ¥21. 0 billion Food Products AminoScience Japan Food Life Support NEW (Highly Fu
Slide 12: Social issues to be solved and value creation targeted
2. Positioning of R&D and its overall picture in the FY17-19 MTP Social issues to be solved and value creation targeted ASV Value Creation Stories We contribute to health and well-being by 1 utilizing our leading-edge bioscience and fine chemical technologies which also leads to deliciousness techno
Slide 13: Amino acid functions
2. Positioning of R&D and its overall picture in the FY17-19 MTP Business development and the technologies that contribute to it — based on amino acid functions Starting with the discovery of umami substances as a base, using the functions of amino acids, refining the technology in the field of “lea
Slide 14: Examples of issue solutions using technology
3. Examples of issue solutions using technology Current business structure and the technologies supporting it; social issues Ajinomoto Co. is contributing to solving Amino acid functions* Flavoring function: building deliciousness Solving Nutritional function: delivering nutrition Social Issues Loco
Slide 15: 3. Examples of solutions using technology
3. Examples of solutions using technology Copyright © 2018 Ajinomoto Co., Inc. All rights reserved.
Slide 16: Examples of solutions using technology (1)
3. Examples of solutions using technology (1) Solving Social Issues Locomotive, Healthy metabolic lifestyles Business syndrome Improving Increased quality of demand Amino acids for sleep pharmaceutical Healthcare for meat Diagnose Infusions disease risks Ajinomoto technologies AminoIndex Improved An
Slide 17: Contributing to needs for quicker cooking and preparation
3. Examples of solutions using technology (1) Contributing to needs for quicker cooking and preparation Raw Japanese radish Knowledge of applied Before cooking amino acid technologies Cell walls of Japanese radish The root vegetable softener makes The alkaline broth immediately the broth alkaline to
Slide 18: Contributing to sports nutrition
3. Examples of issue solutions using technology (1) Contributing to sports nutrition Copyright © 2018 Ajinomoto Co., Inc. All rights reserved. 13
Slide 19: Examples of solutions using technology (2)
3. Examples of solutions using technology (2) Solving Social Issues Locomotive, Healthy metabolic lifestyles Business syndrome Improving Increased quality of demand Amino acids for sleep Healthcare for meat Example Infusions pharmaceutical Diagnose disease risks Animal (2) Ajinomoto technologies Ami
Slide 20: Expanding into the field of regenerative medicine
3. Examples of solutions using technology (2) Expanding into the field of regenerative medicine Leading-edge bioscience and Business and Product Cell Culture Medium fine chemical technologies for Regenerative Medicine Research on amino acid Infusions nutrition/metabolism Elental enteral nutritional
Slide 21: Examples of solutions using technology (3)
3. Examples of solutions using technology (3) Solving Social Issues Locomotive, Healthy metabolic lifestyles Business syndrome Improving Increased quality of Amino acids for demand for meat pharmaceutical Healthcare Example sleep Diagnose Infusions Ajinomoto technologies (3) AminoIndex disease risks
Slide 22: Diagnosis and providing solutions
3. Examples of solutions using technology (3) Easily understanding a person’s condition of physical health; providing appropriate solutions Sports supplements Application of technology Nutrition for seniors Providing solutions Diagnosis Fusing diagnosis and solutions to further solve social issues E
Slide 23: Examples of solutions using technology (4)
3. Examples of solutions using technology (4) Solving Social Issues Locomotive, Healthy metabolic lifestyles Business syndrome Improving Increased quality of demand Amino acids for sleep pharmaceutical Healthcare for meat Diagnose Infusions disease risks Ajinomoto technologies AminoIndex Improved An
Slide 24: Ajinomoto Build-up Film (ABF) for semiconductor package substrates
3. Examples of solutions using technology (4) Contributing to new technologies that require improvements in information processing capabilities Ajinomoto Build-up Film (ABF) for insulating semiconductor package substrates Example of technology application Amino acid Insulation Heat ABF chemical Diel
Slide 25: Examples of solutions using technology (5)
3. Examples of solutions using technology (5) Solving Social Issues Locomotive, Healthy metabolic lifestyles Business syndrome Improving Increased quality of demand Amino acids for sleep pharmaceutical Healthcare for meat Diagnose Infusions disease risks Ajinomoto technologies AminoIndex Improved An
Slide 26: Solving various social issues through platform technology
3. Examples of solutions using technology (5) Contributing to solving various social issues through platform technology Fermentation Further advancements technology Toward solving various social issues Expanded scope of application Depletion of Animal welfare Waste products natural resources Providi
Slide 27: 4. Descriptions of representative core technologies
4. Descriptions of representative core technologies Copyright © 2018 Ajinomoto Co., Inc. All rights reserved.
Slide 28: Fermentation technologies
4. Descriptions of representative core technologies: Fermentation technologies Process overview Technology for producing bioactive ingredients (metabolic products) in large volume at high purity and at reasonable prices Fermentation, isolation and purification Raw materials Fermentation Isolation &
Slide 29: Deliciousness technologies
4. Descriptions of representative core technologies: Deliciousness technologies Applying science to “deliciousness” and making technology that brings it into reality Strengthening our regional portfolios of food products and connecting this to solutions for food-related issues Deliciousness / Health
Slide 30: Analyzing and reproducing mechanisms expressing deliciousness
4. Descriptions of representative core technologies: Deliciousness technologies Analyzing and reproducing mechanisms expressing deliciousness The three elements of taste, flavor (aroma), and texture change with time Deliciousness / Healthy / Food resources / Smart cooking Aroma of Broth thickness (b
Slide 31: Sensory evaluation technology; Preference Mapping
4. Descriptions of representative core technologies: Deliciousness technologies Technologies for optimizing deliciousness for each target country Sensory evaluation technology; Preference Mapping* 1) Connect characteristic & preference evaluations 2) Define target quality and profile with a score Qu
Slide 32: Cycle for achieving target deliciousness
4. Descriptions of representative core technologies: Deliciousness technologies Cycle for achieving target deliciousness Understanding Evaluation of existing ingredients (food needs products, additives) Addition & omission test Realization of target quality ＋ Development and discovery of ingredients
Slide 33: 5. Open and linked innovation concepts and initiatives
5. Open and linked innovation concepts and initiatives Copyright © 2018 Ajinomoto Co. , Inc. All rights reserved.
Slide 34: Tie-ups: fundamental approach
5. Open and linked innovation concepts and initiatives Fundamental approach Much of the R&D carried out (now and to date) in the Ajinomoto Group has been in collaboration with external parties (currently, we have more than 100 tie-up projects and approx. 10 researchers are posted at universities and
Slide 35: Examples of our initiatives
5. Open and linked innovation concepts and initiatives Examples of our initiatives Inbound: generating innovation incorporating external technology Connecting joint research and corporate tie-ups with commercialization Publicly open program: Ajinomoto Innovation Alliance Program Strategies for stren
Slide 36: Ajinomoto Innovation Alliance Program
5. Open and linked innovation concepts and initiatives Ajinomoto Innovation Alliance Program • Solicited fields: research fields matching our business strategies In target fields… • Implementation period: April 1, 2013 on ・Uncover new themes (Amino acid research: 2005-2012) ・Uncover unknown research
Slide 37: Example of solutions to an issue through acquisitions
5. Open and linked innovation concepts and initiatives Example of solutions to an issue through acquisitions Unmet medical needs Social issue we (E.g.: rare diseases) want to solve More active development of oligonucleotide pharmaceuticals Key point for solutions Toward a solution for production met
Slide 38: Example of a solution through industry-academia tie-ups
5. Open and linked innovation concepts and initiatives Example of a solution to an issue through industry-academia tie-ups The Ajinomoto Group For the production of ammonia ・Buys and uses vast amounts of ammonia for ・Requires much energy; high temperature (300- fermentation processes 600 °C) and hig
Slide 39: Client Innovation Center overview
5. Open and linked innovation concepts and initiatives Overview • Venue for bringing together business partners and Ajinomoto Co. • Introduce Ajinomoto Co.’s technology in easy-to-understand illustrations, videos, hands-on experiences, etc. • Share information on latent and overt challenges faced by
Slide 40: Representative technology clusters introduced at the CIC
Ajinomoto Co.’s representative technology clusters introduced at the CIC Copyright © 2018 Ajinomoto Co., Inc. All rights reserved. 33
Slide 41: Thank you.
Thank you. Copyright © 2018 Ajinomoto Co., Inc. All rights reserved.