Ajinomoto: Annual Securities Report for the 147th Fiscal Year

Annual Securities Report

The 147th fiscal year

From April 1, 2024

to March 31, 2025

Ajinomoto Co., Inc.

(E00436)

Table of Contents

Cover Page

Part I. Company Information 1

1. Overview of Company 1

   1. Key financial data 1

   2. History 3

   3. Description of business 5

   4. Subsidiaries and affiliates 7

   5. Employees 13

2. Overview of Business. 17

   1. Management policy, business environment, issues to address 17

   2. Disclosure of sustainability-related financial information 21

   3. Business and other risks 41

   4. Management analysis of financial position, operating results and cash flows 52

   5. Critical contracts, etc. 62

   6. Research and development activities 63

3. Information About Facilities 73

   1. Overview of capital investments 73

   2. Major facilities 74

   3. Planned addition, retirement, and other changes of facilities 76

4. Information About Reporting Company 77

   1. Company’s shares, etc. 77

   2. Acquisition and disposal of treasury stock 83

   3. Dividend policy 86

   4. Status of corporate governance, etc. 87

5. Financial Information 164

   1. Consolidated Financial Statements and Notes 165

      1. Consolidated Financial Statements 165

         1. Consolidated Statement of Financial Position 165

         2. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income 167

         3. Consolidated Statements of Changes in Equity 169

         4. Consolidated Statements of Cash Flows 173

      2. Other 265

   2. Non-Consolidated Financial Statements and Notes 266

      1. Non-Consolidated Financial Statements 266

         1. Non-Consolidated Balance Sheet 266

         2. Non-Consolidated Statement of Income 268

         3. Non-Consolidated Statement of Changes in Net Assets 269

         4. Supplementary Schedule 283

      2. Main assets and liabilities 284

      3. Others 284

6. Overview of Operational Procedures for Shares of the Reporting Company 285

7. Reference Information of Reporting Company 287

   1. Information about parent of reporting company 287

   2. Other reference information 287

Part II. Information About Reporting Company’s Guarantor, Etc. 289

Document title: Annual Securities Report

Clause of stipulation: Article 24, Paragraph 1 of the Financial Instruments and Exchange Act Place of filing: Director-General of the Kanto Local Finance Bureau

Date of filing: June 18, 2025

Fiscal year: The 147th fiscal year (from April 1, 2024 to March 31, 2025)

Company name: 味の素株式会社 (Ajinomoto Kabushiki Kaisha)

Company name in English: Ajinomoto Co., Inc.

Title and name of representative: Shigeo Nakamura, Representative Executive Officer & President Address of registered headquarters: 15-1 Kyobashi 1-chome, Chuo-ku, Tokyo

Telephone number: +81-3-5250-8111

Name of contact person: Hirokazu Yoshimoto, Senior Manager, Global Finance Department Nearest place of contact: 15-1 Kyobashi 1-chome, Chuo-ku, Tokyo

Telephone number: +81-3-5250-8111

Name of contact person: Hirokazu Yoshimoto, Senior Manager, Global Finance Department Place for public inspection: Ajinomoto Co., Inc. Headquarters

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

Ajinomoto Co., Inc. Osaka Branch

(2-57 Nakanoshima 6-chome, Kita-ku, Osaka)

Ajinomoto Co., Inc., Nagoya Branch

(3 Ayuchitori 2-chome, Showa-ku, Nagoya) Tokyo Stock Exchange, Inc.

(2-1 Nihombashi Kabutocho, Chuo-ku, Tokyo)

1. Overview of Company

   1. Key financial data

      1. Key consolidated financial data

         Fiscal Year		International Financial Reporting Standards
         		143rd	144th	145th	146th	147th
         Fiscal year-end		March 31, 2021	March 31, 2022	March 31, 2023	March 31, 2024	March 31, 2025
         Sales	(Millions of yen)	1,071,453	1,149,370	1,359,115	1,439,231	1,530,556
         Business profit	(Millions of yen)	113,136	120,915	135,341	147,681	159,302
         Profit before income taxes	(Millions of yen)	98,320	122,472	140,033	142,043	108,330
         Profit attributable to owners of the parent company	(Millions of yen)	59,416	75,725	94,065	87,121	70,272
         Comprehensive income	(Millions of yen)	117,762	143,398	149,036	199,937	72,537
         Total equity	(Millions of yen)	667,846	739,744	822,968	884,448	813,273
         Total assets	(Millions of yen)	1,431,289	1,457,060	1,511,734	1,768,371	1,721,131
         Equity per share (attributable to owners of the parent company)	(Yen)	565.41	640.25	726.12	795.09	751.01
         Basic earnings per share	(Yen)	54.18	69.71	87.99	83.72	69.77
         Diluted earnings per share	(Yen)	54.16	69.71	87.98	83.70	69.77
         Ownership ratio attributable to owners of the parent company	(%)	43.3	47.1	50.8	46.1	43.4
         ROE attributable to owners of the parent company	(%)	10.3	11.6	12.9	11.0	9.0
         Price/earnings ratio	(Times)	20.9	24.9	26.2	33.8	42.4
         Cash flows from operating activities	(Millions of yen)	165,650	145,576	117,640	168,074	209,898
         Cash flows from investing activities	(Millions of yen)	(66,247)	(61,567)	(30,087)	(132,434)	(77,382)
         Cash flows from financing activities	(Millions of yen)	(60,387)	(123,055)	(111,061)	(6,753)	(137,684)
         Cash and cash equivalents at end (Millions of of the year yen)		181,609	151,454	132,777	171,537	164,776
         Number of employees (Separately, average number of temporary employees)	(Persons)	33,461 (9,074)	34,198 (8,749)	34,615 (8,703)	34,862 (8,343)	34,860 (8,512)

         Notes:

         1. Consolidated financial statements are prepared in accordance with the International Financial Reporting Standards (“IFRS”).

         2. Figures presented are rounded down to the nearest million yen.

         3. Upon the adoption of IFRS, the Ajinomoto Group has introduced “Business profit” as a new profit level that will better enable investors, the Board of Directors, and the Executive Committee to grasp the core business results and future outlook of each business while also facilitating continual evaluation of the Group’s business portfolio by the Board of Directors and the Executive Committee. “Business profit” is defined as sales and share of profit of associates and joint ventures minus cost of sales, selling expenses, research and development expenses, and general and administrative expenses. Business profit does not include other operating income or other operating expenses.

         4. In the 147th Fiscal Year, the Company finalized the provisional accounting treatment for a business combination, and the finalized figures have been reflected in the 146th Fiscal Year.

         5. With a 2-for-1 stock split of the Company’s ordinary shares effective April 1, 2025, equity per share (attributable to owners of the parent company), basic earnings per share and diluted earnings per share were calculated based on the assumption that the stock split was conducted at the beginning of the 143rd Fiscal Year.

      2. Key financial data of the reporting company

         Fiscal Year		143rd	144th	145th	146th	147th
         Fiscal year-end		March 31, 2021	March 31, 2022	March 31, 2023	March 31, 2024	March 31, 2025
         Net sales	(Millions of yen)	250,350	271,542	294,270	307,289	313,636
         Ordinary income	(Millions of yen)	36,253	83,439	101,081	150,126	118,896
         Net income	(Millions of yen)	37,622	89,168	107,249	139,720	90,081
         Common stock	(Millions of yen)	79,863	79,863	79,863	79,863	79,863
         Number of shares outstanding	(Shares)	549,163,354	536,996,254	529,798,154	521,430,854	502,818,808
         Net assets	(Millions of yen)	323,918	347,229	393,157	405,071	360,605
         Total assets	(Millions of yen)	984,374	961,002	973,935	1,131,974	1,112,861
         Net assets per share	(Yen)	295.28	323.64	371.39	395.14	362.64
         Dividend per share		42.00	52.00	68.00	74.00	80.00
         (Including interim dividend per share)	(Yen)	(16.00)	(24.00)	(31.00)	(37.00)	(40.00)
         Net income per share	(Yen)	34.31	82.09	100.32	134.26	89.44
         Diluted net income per share	(Yen)	34.30	82.09	100.31	134.23	89.44
         Equity ratio	(%)	32.9	36.1	40.4	35.8	32.4
         Return on equity	(%)	12.1	26.6	29.0	35.0	23.5
         Price/earnings ratio	(Times)	33.0	21.2	23.0	21.1	33.1
         Payout ratio	(%)	61.2	31.7	33.9	27.6	44.7
         Number of employees		3,184	3,252	3,335	3,480	3,627
         (Separately, average number of temporary employees)	(Persons)	(213)	(222)	(221)	(224)	(227)
         Total shareholder return	(%)	114.8	177.5	237.2	293.3	310.0
         (Comparison indicator: TOPIX (including dividends))	(%)	(142.1)	(145.0)	(153.4)	(216.8)	(213.4)
         Highest share price	(Yen)	2,527.50	3,656.00	4,634.00	6,279.00	3,069.00 (6,590.00)
         Lowest share price	(Yen)	1,694.00	2,135.00	2,879.00	4,568.00	2,951.00 (4,886.00)

         Notes:

         1. The highest and lowest share prices before April 3, 2022 are those quoted on the First Section of the Tokyo Stock Exchange and prices as from April 4, 2022, on the Prime Market of the Tokyo Stock Exchange. The highest and lowest share prices for the 147th Fiscal Year after the rights-off due to a stock split are stated, and those before the stock split are stated in parentheses.

         2. The Company has adopted the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020) and others from the beginning of the 144th Fiscal Year. The key financial data in and after the 144th Fiscal Year are those after adopting the said accounting standard and others.

         3. With a 2-for-1 stock split of the Company’s ordinary shares effective April 1, 2025, net assets per share, net income per share, and diluted net income per share were calculated based on the assumption that the stock split was conducted at the beginning of the 143rd Fiscal Year. Number of shares outstanding, dividend per share, and payout ratio stated are those before the stock split.

         4. Of the dividend per share of ¥80.00 for the fiscal year ended March 31, 2025, the year-end dividend of ¥40.00 is put for a matter to be resolved at the ordinary general meeting of shareholders to be held on June 20, 2025.

   2. History

      Month/Year

      Overview

      May 1907 July 1908 May 1909 April 1912 September 1914 June 1917 December 1925 October 1932 March 1935 December 1940 May 1943 December 1943 May 1944 February 1946 May 1949 January 1956 July 1956 December 1956 May 1958 April 1960 March 1961 July 1961 March 1963 October 1967 February 1968 July 1969 November 1970 December 1970 August 1973 December 1974 September 1981 May 1982 June 1987 September 1989 December 1996 October 2000 April 2001 February 2003 July 2003 February 2007 November 2011

      Established Suzuki Pharmaceutical GSK. Dr. Kikunae Ikeda obtained a patent for the production method of seasoning (monosodium glutamate). In September of the same year, Saburosuke Suzuki II undertook the commercialization. Launched umami seasoning AJI-NO-MOTO®. Suzuki Pharmaceutical GSK. succeeded to the AJI-NO-MOTO®business, operated as a personal business of Suzuki, and changed the company name to Suzuki Shoten GSK. at the same time. Completed the Kawasaki factory and started operation. Established S. Suzuki & Co. Ltd. and transferred all business of Suzuki Shoten GSK. to the said company, and changed the business purpose of Suzuki Shoten GSK. to the acquisition and sale of securities and real estates. Established S. Suzuki Co., Ltd. and transferred all business of Suzuki Shoten GSK. and S. Suzuki & Co., Ltd. to the said company, and dissolved these two companies. (present Ajinomoto Co., Inc.) Changed its company name to Ajinomoto Honpo S. Suzuki & Co., Ltd. Established Takara Oil Refining Co., Ltd. and started fat and oil business. Changed its company name to Suzuki Shokuryo Kogyo Co. Changed its company name to Dai-Nippon Chemical Co. Established the Saga factory in Saga prefecture. (present Kyushu Plant) Merged Takara Oil Refining Co., Ltd. Changed its company name to Ajinomoto Co., Inc. Listed on the stock market. Launched essential amino acids (for infusion) and started amino acid business. Established Ajinomoto Co. of New York, Inc. (present Ajinomoto Health & Nutrition North America, Inc.) Set up a central research laboratory in Kanagawa prefecture. Established Union Chemicals Inc. (present AJINOMOTO PHILIPPINES CORPORATION) Established Ajinomoto Co., (Thailand) Ltd. Set up a Yokkaichi factory in Mie prefecture. (present Tokai Plant) Established Ajinomoto (Malaya) Co., Ltd. (present Ajinomoto (Malaysia) Berhad) Entered into partnership with U.S.’s Corn Products International. (present Conopco, Inc.) (founded a joint-venture company, Knorr Foods Co., Ltd.) Set up Specialty Chemicals Department and fully started specialty chemicals business. Established Ajinomoto del Perú S.A. Established PT Ajinomoto Indonesia. Launched HON-DASHI®. Established Ajinomoto Restaurant Foods Co., Inc. (present Ajinomoto Frozen Foods Co., Inc.) and started frozen food business. Entered into partnership with U.S.’s General Foods Corporation. (founded a joint-venture company, present Ajinomoto AGF, Inc.) Established Ajinomoto Interamericana Indústria e Comércio Ltda. (present Ajinomoto do Brasil Indústria e Comércio de Alimentos Ltda.) Launched ELENTAL®and started pharmaceutical business. Launched export of aspartame and started sweeteners business. Made Knorr Foods Co., Ltd. a subsidiary. Acquired all shares of a Belgian chemical company S.A. OmniChem N.V. (present S.A. Ajinomoto OmniChem N.V.) Established Ajinomoto (China) Co., Ltd. Spun off the frozen food business into a separate company and integrated it into Ajinomoto Frozen Foods Co., Inc. Spun off the fat and oil business into a separate company and integrated it into Ajinomoto Oil Mills Co., Inc. (present J-Oil Mills, Inc.) Ajinomoto Frozen Foods Co., Inc. acquired all shares of Frec Co., Ltd. from Nippon Sanso Ltd., and merged with Frec Co., Ltd. in April 2003. Acquired all shares of ORSAN SA (present Ajinomoto Foods Europe S.A.S.), an umami seasoning production and sales company held by Amylum France S.A.S. Acquired part of shares of Yamaki Co., Ltd. and entered into a capital and business alliance. Transferred operation of feed-use amino acid business to Ajinomoto Animal Nutrition Group, Inc. (established in September 2011)

      Month/Year

      Overview

      November 2014 April 2015 April 2015 April 2016 November 2016 April 2019 July 2021 December 2023

      Ajinomoto North America, Inc. acquired all equity interest of Windsor Quality Holdings, LP, a frozen food manufacturing and sales company in the U.S. Ajinomoto Frozen Foods U.S.A., Inc. merged Windsor Quality Holdings, LP and changed its company name to Ajinomoto Windsor, Inc. (present Ajinomoto Foods North America, Inc.) Made Ajinomoto General Foods, Inc. (present Ajinomoto AGF, Inc.) a subsidiary. AJINOMOTO PHARMACEUTICALS CO., LTD., engaged in the pharmaceutical business, succeeded a part of the business in the area of digestive diseases of Eisai Co., Ltd. through an absorption-type company split, became an affiliate accounted for by the equity method of the Company and changed the company name to EA Pharma Co., Ltd. Acquired 33.33% shares of Promasidor Holdings Limited, a major processed foods manufacturer that conducts business in countries in Africa and made it an affiliate accounted for by the equity method of the Company. Concentrated and reorganized the production system of part of the Kawasaki factory and Tokai Plant and Ajinomoto Packaging Co., Inc. to Knorr Foods Co., Ltd. and changed its company name to Ajinomoto Food Manufacturing Co., Ltd. Merged Ajinomoto Animal Nutrition Group, Inc. Ajinomoto North America, Inc. acquired all equity interest of Forge Biologics Holdings, LLC (present Forge Biologics, Inc.), a US-based gene therapy CDMO.

   3. Description of business

      The Ajinomoto Group consists of Ajinomoto Co., Inc., 108 consolidated subsidiaries, and 15 affiliates accounted for by the equity method, and is engaged in areas of Sauce and Seasonings, Quick Nourishment, Solutions and Ingredients, Frozen Foods, Amino Acids for Pharmaceuticals and Foods, Bio-Pharma Services (CDMO services), Functional Materials (electronic materials and others), as well as other business activities.

      The position of the said Group’s business is as follows. (Companies marked with asterisks (*) are affiliates accounted for by the equity method.)

      Reportable segments	Details	Major companies
      Seasonings and Foods	Sauce and Seasonings	Ajinomoto Food Manufacturing Co., Ltd. Ajinomoto AGF, Inc. Ajinomoto Co., (Thailand) Ltd. AJINOMOTO SALES (THAILAND) COMPANY LIMITED WAN THAI FOODS INDUSTRY CO., LTD. PT Ajinomoto Indonesia P.T. AJINOMOTO SALES INDONESIA PT AJINEX INTERNATIONAL Ajinomoto Vietnam Co., Ltd. AJINOMOTO PHILIPPINES CORPORATION Ajinomoto (Malaysia) Berhad AJINOMOTO FOODS NIGERIA LTD. Ajinomoto do Brasil Indústria e Comércio de Alimentos Ltda. Ajinomoto del Perú S.A. * Promasidor Holdings Limited
      	Quick Nourishment
      	Solutions and Ingredients	AJINOMOTO FOODS EUROPE S.A.S. Ajinomoto Bakery, Inc. DELICA ACE Corporation * Yamaki Co., Ltd.
      Frozen Foods	Frozen Foods	Ajinomoto Frozen Foods Co., Inc. Ajinomoto Foods North America, Inc.
      Healthcare and Others	Amino Acids for Pharmaceuticals and Foods	Ajinomoto Healthy Supply Co., Inc. Ajinomoto Health & Nutrition North America, Inc. Shanghai Ajinomoto Amino Acid Co., Ltd.
      	Bio-Pharma Services (CDMO services)	S.A. Ajinomoto OmniChem N.V. Ajinomoto Althea, Inc. (Note 1) Forge Biologics, Inc.
      	Functional Materials (electronic materials and others)	Ajinomoto Fine-Techno Co., Inc.
      	Others	Ajinomoto Direct Corporation
      Others	Contract Manufacturing	* EA Pharma Co., Ltd.
      	Oil and Fat	* J-Oil Mills, Inc. (Note 2)
      	Logistics	* F-LINE CORPORATION
      	Services and Others	AJINOMOTO ENGINEERING CORPORATION Ajinomoto Communications Co., Inc. * NRI System Techno, Ltd.

      Notes:

      1. On May 1, 2025, the Company transferred all shares of Ajinomoto Althea, Inc. to Packaging Coordinators Inc.

      2. In the Group, a company that is listed on the domestic stock market is as follows: Prime Market of the Tokyo Stock Exchange (as of the filing date): J-Oil Mills, Inc.

      The business structure is as follows. (Companies marked with asterisks (*) are affiliates accounted for by the equity method.)

      The Business Structure Diagram

      Frozen Foods

      Seasoning and Foods

      Sauce & Seasonings, Quick Nourishment

      [Japan]

      Ajinomoto Food Manufacturing Co., Ltd. Ajinomoto AGF, Inc.

Ajinomoto Co., Inc.

Healthcare and Others

[Japan]

*EA Pharma Co., Ltd.

*J-Oil Mills, Inc.

Others

*F-LINE CORPORATION

AJINOMOTO ENGINEERING CORPORATION

Ajinomoto Communications Co., Inc.

*NRI System Techno, Ltd.

1. Subsidiaries and affiliates

   1. Parent company Not applicable.

   2. Consolidated subsidiaries

      Company name	Location	Capital stock or investments in capital	Main business	Percentage of voting rights held (%) (Note 1)	Relationship
      					Concurrent holding of corporate officer positions	Business transactions	Facility/equipment leasing
      Ajinomoto Frozen Foods Co., Inc. (Specified subsidiary)	Chuo-ku, Tokyo	JPY 9,537 million	Frozen Foods	100.0	Yes	Purchase and sale of said company’s products by the Company; joint purchase and provision of said company’s raw materials by the Company	Leasing of buildings, etc. by the Company
      Ajinomoto Food Manufacturing Co., Ltd. (Specified subsidiary)	Kawasaki-ku, Kawasaki-shi, Kanagawa	JPY 4,000 million	Sauce & Seasonings, Quick Nourishment, and Solution & Ingredients	100.0	Yes	Purchase and sale of said company’s products by the Company; joint purchase and provision of said company’s raw materials by the Company	Leasing of buildings, etc. by the Company
      Ajinomoto AGF, Inc. (Specified subsidiary)	Shibuya-ku, Tokyo	JPY 3,862 million	Quick Nourishment	100.0	Yes	Purchase and sale of said company’s products by the Company; joint purchase and provision of said company’s raw materials by the Company	Leasing of buildings, etc. by the Company
      Ajinomoto Healthy Supply Co., Inc.	Chuo-ku, Tokyo	JPY 380 million	Other (Healthcare, etc.)	100.0	No	Purchase and sale of said company’s products by the Company; purchase and sale of the Company’s products by said company	No
      AJINOMOTO ENGINEERING CORPORATION	Ota-ku, Tokyo	JPY 324 million	Other	100.0	No	Subcontracting of the Company’s operations by said company	Rental of buildings, etc. by the Company
      Ajinomoto Fine-Techno Co., Inc.	Kawasaki-ku, Kawasaki-shi, Kanagawa	JPY 315 million	Functional Materials (Electronic materials and others)	100.0	No	Purchase of said company’s products by the Company; subcontracting of said company’s operations by the Company	No

      Company name	Location	Capital stock or investments in capital	Main business	Percentage of voting rights held (%) (Note 1)	Relationship
      					Concurrent holding of corporate officer positions	Business transactions	Facility/equipment leasing
      Ajinomoto Trading Co., Ltd.	Minato-ku, Tokyo	JPY 200 million	Other (Healthcare, etc.)	100.0	No	Purchase and sale of the Company’s products by said company; purchase and provision of the Company’s raw materials by said company	No
      Ajinomoto Communications Co., Inc.	Chuo-ku, Tokyo	JPY 100 million	Other	100.0	No	Subcontracting of the Company’s operations by said company; purchase and sale of the Company’s products by said company	Leasing of buildings, etc. by the Company
      Ajinomoto Financial Solutions, Inc.	Chuo-ku, Tokyo	JPY 100 million	Other	100.0	No	Subcontracting of the Company’s operations by said company	No
      Ajinomoto Bakery, Inc.	Chuo-ku, Tokyo	JPY 100 million	Solution & Ingredients	100.0	No	Purchase of the Company’s raw materials by said company	No
      GeneDesign, Inc.	Ibaraki-shi, Osaka	JPY 59 million	Bio-Pharma Services (CDMO services)	100.0	No	Purchase and sale of the Company’s products by said company	No
      Ajinomoto Digital Business Partners Co., Inc.	Chuo-ku, Tokyo	JPY 51 million	Other	100.0	No	Contracting and factoring the Company’s operations by said company	Rental of buildings, etc. by the Company
      AGF Suzuka, Inc.	Suzuka-shi, Mie	JPY 23 million	Quick Nourishment	100.0 (100.0)	No	No	No
      AGF Kanto, Inc.	Ota-shi, Gunma	JPY 20 million	Quick Nourishment	100.0 (100.0)	No	No	No
      Ajinomoto Direct Corporation	Chuo-ku, Tokyo	JPY 10 million	Other (Healthcare, etc.)	100.0	No	Purchase and sale of said company’s products by the Company	No
      DELICA ACE Corporation	Ageo-shi, Saitama	JPY 200 million	Solution & Ingredients	90.0	No	No	No
      Ajinomoto SEA Regional Headquarters Co., Ltd.	Thailand	THB 1,408,488 thousand	Regional Headquarters	100.0	Yes	Subcontracting of the Company’s operations by said company	No
      Ajinomoto Co., (Thailand) Ltd.	Thailand	THB 796,362 thousand	Sauce & Seasonings	99.8 (0.0)	Yes	Purchase and sale of said company’s products by the Company; purchase and sale of the Company’s products by said company	No

      Company name	Location	Capital stock or investments in capital	Main business	Percentage of voting rights held (%) (Note 1)	Relationship
      					Concurrent holding of corporate officer positions	Business transactions	Facility/equipment leasing
      Ajinomoto Sales (Thailand) Co., Ltd. (Note 2)	Thailand	THB 50,000 thousand	Sauce & Seasonings	100.0 (100.0)	No	Purchase and sale of the Company’s products by said company	No
      WAN THAI FOODS INDUSTRY CO., LTD.	Thailand	THB 60,000 thousand	Quick Nourishment	60.0 (35.0)	Yes	Purchase of said company’s products by the Company	No
      AJINOMOTO BETAGRO FROZEN FOODS (THAILAND) CO., LTD. (Note 3)	Thailand	THB 764,000 thousand	Frozen Foods	50.0 (50.0)	No	No	No
      AJINOMOTO BUSINESS CENTER (THAILAND) COMPANY LIMITED (Note 3)	Thailand	THB 10,000 thousand	Sauce & Seasonings, Frozen Foods	49.0 (49.0)	No	No	No
      PT Ajinomoto Indonesia	Indonesia	USD 8,000 thousand	Sauce & Seasonings	51.0	No	Purchase of the Company’s products by said company	No
      P.T. AJINOMOTO SALES INDONESIA	Indonesia	USD 250 thousand	Sauce & Seasonings	100.0 (80.0)	No	Purchase and sale of the Company’s products by said company	No
      PT AJINEX INTERNATIONAL	Indonesia	USD 44,000 thousand	Solution & Ingredients	95.0	No	Purchase and sale of said company’s products by the Company	No
      Ajinomoto Vietnam Co., Ltd.	Vietnam	USD 50,255 thousand	Sauce & Seasonings	100.0	Yes	Purchase of the Company’s products by said company	No
      Ajinomoto (Malaysia) Berhad	Malaysia	MYR 65,102 thousand	Sauce & Seasonings	50.4	No	Purchase and sale of said company’s products by the Company; purchase and sale of the Company’s products by said company	No
      AJINOMOTO PHILIPPINES CORPORATION	The Philippines	PHP 665,444 thousand	Sauce & Seasonings	95.0	Yes	Purchase and sale of the Company’s products by said company	No
      Ajinomoto (China) Co., Ltd. (Specified subsidiary)	China	USD 104,108 thousand	Other (Healthcare, etc.)	100.0	No	No	No
      Shanghai Ajinomoto Amino Acid Co., Ltd	China	CNY 99,352 thousand	Amino acids for pharmaceuticals and foods	61.0 (59.0)	Yes	Purchase and sale of said company’s products by the Company; purchase of the Company’s raw materials by said company	No

      Company name	Location	Capital stock or investments in capital	Main business	Percentage of voting rights held (%) (Note 1)	Relationship
      					Concurrent holding of corporate officer positions	Business transactions	Facility/equipment leasing
      AJINOMOTO (SINGAPORE) PRIVATE LTD.	Singapore	SGD 1,999 thousand	Solution & Ingredients	100.0	Yes	Purchase and sale of the Company’s products by said company	No
      Ajinomoto North America, Inc. (Specified subsidiary) (Note 4)	U.S.A.	USD 0	Regional Headquarters	100.0	Yes	No	No
      Forge Biologics, Inc. (Specified subsidiary)	U.S.A.	USD 65,573 thousand	Bio-Pharma Services (CDMO services)	100.0 (100.0)	Yes	Subcontracting of the Company’s operations by said company	No
      Ajinomoto Foods North America, Inc. (Note 5)	U.S.A.	USD 15,030 thousand	Frozen Foods	100.0 (100.0)	Yes	Purchase and sale of the Company’s products by said company	No
      Ajinomoto Health & Nutrition North America, Inc.	U.S.A.	USD 0	Solution & Ingredients	100.0 (100.0)	Yes	Purchase and sale of said company’s products by the Company; purchase and sale of the Company’s products by said company	No
      Ajinomoto Althea, Inc. (Note 6)	U.S.A.	USD 0	Bio-Pharma Services (CDMO services)	100.0	Yes	Subcontracting of the Company’s operations by said company	No
      Ajinomoto Cambrooke, Inc.	U.S.A.	USD 34,280 thousand	Other (Healthcare, etc.)	100.0 (100.0)	Yes	No	No
      Ajinomoto do Brasil Indústria e Comércio de Alimentos Ltda. (Specified subsidiary)	Brazil	BRL 913,298 thousand	Sauce & Seasonings	100.0	Yes	Purchase and sale of said company’s products by the Company; purchase and sale of the Company’s products by said company	No
      Ajinomoto del Perú S.A.	Peru	PEN 45,282 thousand	Sauce & Seasonings	99.6	Yes	Purchase and sale of the Company’s products by said company	No
      AJINOMOTO FOODS EUROPE S.A.S.	France	EUR 35,000 thousand	Solution & Ingredients	100.0 (0.0)	Yes	Purchase and sale of the Company’s products by said company	No
      AJINOMOTO FROZEN FOODS FRANCE S.A.S.	France	EUR 12,000 thousand	Frozen Foods	100.0 (100.0)	No	No	No
      S.A. Ajinomoto OmniChem N.V.	Belgium	EUR 21,320 thousand	Bio-Pharma Services (CDMO services)	100.0 (0.0)	Yes	Purchase and sale of said company’s products by the Company; purchase and sale of the Company’s products by said company	No

      Company name	Location	Capital stock or investments in capital	Main business	Percentage of voting rights held (%) (Note 1)	Relationship
      					Concurrent holding of corporate officer positions	Business transactions	Facility/equipment leasing
      AJINOMOTO FOODS NIGERIA LTD.	Nigeria	NGN 13,225,000 thousand	Sauce & Seasonings	100.0	Yes	No	No
      AJINOMOTO ISTANBUL FOOD INDUSTRY AND TRADE LTD. CO.	Turkey	TRY 751,949 thousand	Sauce & Seasonings	100.0	Yes	No	No
      AJINOMOTO POLAND Sp. z.o.o.	Poland	PLN 39,510 thousand	Quick nourishment	100.0	Yes	No	No
      Nualtra Limited	Ireland	EUR 0	Other (Healthcare, etc.)	100.0 (100.0)	Yes	No	No
      Agro2Agri, S.L.	Spain	EUR 2,027 thousand	Other (Healthcare, etc.)	100.0 (100.0)	No	No	No
      Other 61 companies	–	–	–	–	–	–	–

      Notes:

      1. Figures in parentheses in the “Percentage of voting rights held” column indicate the percentage of indirect holding of voting rights included in the total.

      2. For Ajinomoto Sales (Thailand) Co., Ltd., sales (excluding internal sales between consolidated companies) account for more than 10% of consolidated sales.

         Key profit and loss information

         1. Sales ¥167,514 million

         2. Operating profit ¥12,465 million

         3. Profit ¥10,276 million

         4. Total assets ¥31,653 million

         5. Total net assets ¥19,309 million

      3. Although the percentage of voting rights held is 50% or less, the company is regarded as a subsidiary as it is substantially controlled by the Company.

      4. On September 1, 2024, Ajinomoto North America Holdings, Inc. has changed its name to Ajinomoto North America, Inc.

      5. For Ajinomoto Foods North America, Inc., sales (excluding internal sales between consolidated companies) account for more than 10% of consolidated sales.

         Key profit and loss information

         1. Sales ¥179,910 million

         2. Operating profit ¥6,234 million

         3. Profit ¥5,309 million

         4. Total assets ¥148,058 million

         5. Total net assets ¥110,490 million

      6. On May 1, 2025, the Company transferred all shares of Ajinomoto Althea, Inc. to Packaging Coordinators Inc.

   3. Affiliates accounted for by the equity method

      Company name	Location	Capital stock or investments in capital	Main business	Percentage of voting rights held (%)	Relationship with the Company
      					Concurrent holding of corporate officer positions	Business transactions	Facility/equipment leasing
      EA Pharma Co., Ltd. (Affiliate)	Chuo-ku, Tokyo	JPY 9,145 million	Other	40.0	No	Contract manufacturing of said company’s products and active ingredients by the Company	Rental of buildings, etc. by the Company
      J-Oil Mills, Inc. (Affiliate) (Note 1)	Chuo-ku, Tokyo	JPY 10,000 million	Other	27.2	Yes	Purchase and sale of said company’s products by the Company	Leasing of buildings, etc. by the Company
      Promasidor Holdings Limited (Joint venture)	British Island of Jersey	USD 0 thousand	Quick Nourishment	33.3	No	No	No
      Other 12 companies (Note 2)	–	–	–	–	–	–	–

      Notes:

      1. J-Oil Mills, Inc. has filed an annual securities report.

      2. Other in the Company name column includes two joint ventures.

   4. Other affiliates Not applicable.

2. Employees

   1. Consolidated companies

      As of March 31, 2025

      Segment name	Number of employees (persons)
      Seasonings and Foods	22,096	(4,235)
      Frozen Foods	5,478	(3,391)
      Healthcare and Others	5,321	(348)
      Other	1,185	(538)
      Corporate (shared)	780	(–)
      Total	34,860	(8,512)

      Note:

      1. Figures in parentheses in the “Number of employees” column states separately the annual average number of temporary employees.

   2. Reporting company

      As of March 31, 2025

      Numbers of employees (persons)	Average age (years)	Average years of employment (years)	Average annual salary (yen)
      3,627 (227)	44.3	19.4	10,367,410

      Segment name	Numbers of employees (persons)
      Seasonings and Foods	1,689	(57)
      Frozen Foods	46	(–)
      Healthcare and Others	980	(124)
      Other	132	(46)
      Corporate (shared)	780	(–)
      Total	3,627	(227)

      Notes:

      1. The number of employees indicates full-time employees.

      2. Figures in parentheses in the “Number of employees” column states separately the annual average number of temporary employees.

      3. Average annual salary includes bonuses and extra wages.

   3. Status of labor union

      There are no special matters to note.

   4. Rate of female workers in management positions, utilization rate of childcare leave by male workers, and gender wage gap among workers

      Please refer to “II. Overview of Business, 2. Disclosure of sustainability-related financial information

      ” on the initiatives taken toward the diversity of the Company and the Ajinomoto Group.

      1. Reporting company

         Current fiscal year
         Rate of female workers in management positions (%) (Note 1)	Utilization rate of childcare leave by male workers (%) (Note 2)	Gender wage gap among workers (%) (Note 1)
         		All workers	Regular workers	Part-time, fixed-term workers
         14.4	89.6	70.1	72.5	65.8

         Notes:

         1. The rate is calculated based on the provisions of the Act on the Promotion of Women’s Active Engagement in Professional Life (Act No. 64 of 2015).

         2. The figure calculated indicates the rate of childcare leave, etc., as set out in Article 71-6, Item 1 of the Ordinance for Enforcement of the Act on Childcare Leave, Caregiver Leave, and Other Measures for the Welfare of Workers Caring for Children or Other Family Members (Ordinance of the Ministry of Labour No. 25 of 1991) in accordance with the provisions of the Act on Childcare Leave, Caregiver Leave, and Other Measures for the Welfare of Workers Caring for Children or Other Family Members (Act No. 76 of 1991). Regular workers are subject to the calculation of the utilization rate concerned.

      2. Consolidated subsidiaries

         Current fiscal year
         Company name	Rate of female workers in management positions (%) (Note 1)	Utilization rate of childcare leave by male workers (%) (Note 2)	Gender wage gap among workers (%) (Note 1)
         			All workers	Full-time workers	Part-time, fixed-term workers
         Ajinomoto Frozen Foods Co., Inc.	8.5	100.0	52.6	75.6	84.7
         Ajinomoto Food Manufacturing Co., Ltd.	7.7	87.5	60.2	75.9	78.6
         Ajinomoto AGF, Inc.	13.4	60.0	81.5	78.4	92.2
         Ajinomoto Healthy Supply Co., Inc.	21.3	75.0	55.6	82.2	59.9
         AJINOMOTO ENGINEERING CORPORATION	2.3	66.7	72.3	70.1	–
         Ajinomoto Fine-Techno Co., Inc.	15.0	64.0	88.8	90.7	51.7
         Ajinomoto Bakery, Inc.	–	100.0	67.6	73.9	94.5
         Ajinomoto Communications Co., Inc.	13.4	50.0	68.3	86.3	55.4
         AJINOMOTO KOUNAI SERVICE CORPORATION	–	100.0	57.3	78.7	84.2
         AGF Suzuka, Inc.	–	44.4	70.4	71.5	75.6
         AGF Kanto, Inc.	11.1	100.0	73.4	91.3	70.6
         Ajinomoto Digital Business Partners Co., Inc.	44.2	100.0	61.4	71.9	101.9

         Notes:

         1. The rate is calculated based on the provisions of the Act on the Promotion of Women’s Active Engagement in Professional Life (Act No. 64 of 2015).

         2. The figure calculated indicates the rate of childcare leave, etc., as set out in Article 71-6, Item 1 of the Ordinance for Enforcement of the Act on Childcare Leave, Caregiver Leave, and Other Measures for the Welfare of Workers Caring for Children or Other Family Members (Ordinance of the Ministry of Labour No. 25 of 1991) in accordance with the provisions of the Act on Childcare Leave, Caregiver Leave, and Other Measures for the Welfare of Workers Caring for Children or Other Family Members (Act No. 76 of 1991). Regular workers are subject to the calculation of the utilization rate concerned.

         3. The three companies, Ajinomoto Bakery, Inc., AJINOMOTO KOUNAI SERVICE CORPORATION, and AGF Suzuka, Inc., have no female managers.

         The rate of female managers in the Group as a whole is 27%, and of Ajinomoto Co., Inc. is 14%. The Company will continue to develop the basis and take initiatives toward women’s active participation in the Group as a whole and aim for the rate of female managers group-wide to be 40% and of Ajinomoto Co., Inc. to be 30%.

         (Persons)

         			Total	Men	%	Women	%
         Ajinomoto Group Grand Total		Total employees	34,860	24,097	(69%)	10,763	(31%)
         		Managers	5,184	3,767	(73%)	1,417	(27%)
         		Non-managers	29,524	20,225	(69%)	9,299	(31%)
         		Employees on non- regular contracts	152	105	(69%)	47	(31%)
         	Japan	Total employees	8,274	5,837	(71%)	2,437	(29%)
         		Managers	2,125	1,834	(86%)	291	(14%)
         		Non-managers	5,997	3,898	(65%)	2,099	(35%)
         		Employees on non- regular contracts	152	105	(69%)	47	(31%)
         	Asia	Total employees	13,925	9,942	(71%)	3,983	(29%)
         		Managers	1,566	1,007	(64%)	559	(36%)
         		Non-managers	12,359	8,935	(72%)	3,424	(28%)
         	Europe*1	Total employees	3,180	2,066	(65%)	1,114	(35%)
         		Managers	462	292	(63%)	170	(37%)
         		Non-managers	2,718	1,774	(65%)	944	(35%)
         	Americas	Total employees	9,481	6,252	(66%)	3,229	(34%)
         		Managers	1,031	634	(61%)	397	(39%)
         		Non-managers	8,450	5,618	(66%)	2,832	(34%)

         *1: Europe and African countries

         The integrated personnel system in Ajinomoto Co., Inc. sets the same gender wage range for the same level of duties. However, the wages differ by gender due to the following factors.

         The wage level by gender for full-time workers in non-management positions is almost the same in their 20s. However, a wage gap according to job rank is approximately 88% for those in their 30s, as employees are affected by limited work relocations, leaves, shorter working hours, and limited overtime work from life events such as marriage, childbirth, and childcare. For workers in management positions, the gender wage gap of 95.5% and 97.8% exists in the junior/mid-level and senior management positions, respectively, with the gap narrowing as the position gets higher. Yet, the gender wage gap for full-time workers as a whole comes to 72.5% as the rate of female employees in management positions with high pay levels is low. Female employees in their 20s account for 41% of full-time workers compared to all female employees, accounting for 30% of full-time workers, which indicates an increasing trend. In addition, Ajinomoto Co., Inc. aims to raise the rate of female managers to 30% by FY2030 and is promoting measures to support the development of women, such as AjiPanna Academy, to create a pipeline of human resources among managers. In the FY2024 career workshop of AjiPanna Academy, all of 25 participants expressed their intention to challenge for higher positions.

         Furthermore, in an engagement survey question (“If approached to take a higher position, I would like to accept the offer.”), more than half of the women showed their intention of taking a higher position. We believe that the number of female managers will increase, and the wage gap will gradually narrow in the future.

         The wage gap in non-full-time workers is mainly due to the difference in the male-to-female ratio in the senior rehired employees whose wages are higher than part-time employees. Considering the future decline in the working population in Japan, the Company believes the wage gap will also gradually narrow for the non-full-time workers by encouraging further active participation of women, whether working regularly or not, such as by promoting the rehiring of senior women.

1. Overview of Business

   1. Management policy, business environment, issues to address

      The management policy, business environment, and issues to address of the Ajinomoto Group are as follows.

      Note that matters related to future developments that are mentioned in this section are judgments of the Ajinomoto Group that were made as of the end of the fiscal year ended March 31, 2025 (on a consolidated basis).

      We are now in the third year since we announced our “Medium-Term ASV Initiatives 2030 Roadmap” (in February 2023), which outlines our vision for 2030 and the path to achieving it through backcasting*1. In implementing the roadmap, we abolished the more conventional three-year medium-term management plan that we had in place and instead endeavored to establish a series of “challenging targets set by management” (ASV Indicators*2), based on our long-term vision. To achieve these targets, the entire Ajinomoto Group is united in continuing to strive to create new value and transform our business model beyond organizational boundaries.

      *1 Backcasting is a method of envisioning how to achieve a goal by “working backward” from a desirable future to the present as a means of determining what one should do now.

      *2 Indices that encourage further growth and aspiration, consisting of economic indicators that demonstrate the degree to which the Ajinomoto Group’s business has performed financially, as well as social value indicators that are intended to measure the value that the Group strives to create on a societal level.

      To realize the Ajinomoto Group’s Purpose, “Contributing to the well-being of all human beings, our society and our planet with ‘AminoScience,’” we are refining our corporate strategy, as well as our business and functional strategies, based on the ASV concept and the Ajinomoto Group Way (AGW), Ajinomoto Group’s code of conduct. The “My Purpose Workshop,” a program initiated by Ajinomoto Group’s executive officers to deepen its employees’ personal understandings of the Ajinomoto Group’s aspirations, is also being rolled out across the entire group. By identifying certain points of overlap between each individual’s motivations and those of the Ajinomoto Group, translating them into specific, relatable goals and encouraging them to take on certain challenges while empathizing with others, we hope to further improve engagement*3 and enhance the Group’s ability to put Our Philosophy into practice. We are now in the third year of the Medium-Term ASV Initiatives 2030 Roadmap, a stage that calls for greater strengthening of our conceptual and executive capabilities. As such, we will strive to further develop our intangible assets – our people, technology, customers, and organization –that are the source of our value creation, as well as the corporate culture that supports them.

      *3 Deepening employees’ attachment to the Company and their work, as well as their willingness to contribute.

      The Ajinomoto Group aims to contribute to the well-being of all human beings, our society and our planet with “AminoScience.” To this end, we believe it is necessary to reduce our environmental impact by 50% while also extending the healthy life expectancy of 1 billion people by 2030.

      Through extensive discussions with a broad range of stakeholders, and based on the value creation framework (approach) established in accordance with the recommendations of a Sustainability Advisory Council composed mainly of external experts, the Ajinomoto Group has identified Six Material Themes to be addressed in relation to the value that the Group is expected to provide to various stakeholders and to society.

      Materiality

      (Important issues for the Ajinomoto Group)

      Value Creation Frame work Material Themes

      Under the new structure introduced in February 2025, we aim to further develop our ASV management capabilities. Based on the Ajinomoto Group’s Purpose and the Ajinomoto Group Way (AGW), which serves as a code of conduct, we will apply our “High-speed Development System”*4 to both speed up and scale up, creating new businesses and transforming existing business models by forecasting*5 from the perspective of our present business activities and backcasting from the perspective of our desired future state, thereby driving organic growth and achieving an evolution of our business portfolio. Furthermore, while maintaining a corporate culture that supports innovation, we will further advance our ASV management capabilities by further developing our business management cycle and strengthening our intangible assets.

      *4 An approach that recognizes people, products, money, information and also time as important management resources, to create long-term value through speed, innovation, and the enhancement of intangible assets, and benefit all stakeholders, including customers, employees, and society.

      *5 A way of thinking that predicts the future as an extension of the present.

   2. Disclosure of sustainability-related financial information

      The Purpose of the Ajinomoto Group is to contribute to the well-being of all human beings, our society and our planet with “AminoScience.” We position sustainability at the core of ASV management. We advance specific initiatives under the Medium-Term ASV Initiatives 2030 Roadmap. These efforts align with the Six Material Themes identified as important issues (materiality) for the Ajinomoto Group.

      Our business depends on sound agrifood systems that produces and consumes food resources, and on the rich global environment that supports this system. This system both faces environmental changes and contributes significantly to the loss of natural capital. Adapting to these changes and restoring nature are urgent priorities for society and for the sustainable growth of our business as the global environment nears its limits. To this end, we advance efforts in climate change, biodiversity, and the circular economy. We also implement various initiatives to help achieve better nutritional balance, greater emotional well-being through food, and progress in both treatment and prevention.

      The Ajinomoto Group not only works to steadily reduce negative impacts through business activities but also aims to create stronger positive impacts across the value chain by leveraging our strengths in “AminoScience” and working with diverse stakeholders. Therefore, we strive for the sustainable enhancement of corporate value while implementing consistent efforts toward creating a healthy and prosperous society and healthier and more abundant lifestyles.

      1. Governance

         In the Ajinomoto Group, we honestly comply with the Ajinomoto Group Policies (AGP) that show the ideal way of thinking and action that the Group companies and their officers and employees should comply with, continue to develop and properly operate our internal control system, strengthen our system that considers sustainability as a framework active risk-taking system, and continuously enhance our corporate value. For the reflection of sustainability-related metrics in remuneration policy, please see “4. Status of corporate governance, etc., (4) Compensations for officers.”

         We are strengthening our sustainability promotion system to continuously increase our corporate value from the perspective of sustainability. As of the filing date of this document, this system is as outlined below.

         Framework for ESG and sustainability

         The Board of Directors has established the Sustainability Advisory Council, creating a system to provide recommendations about the Group’s approach to sustainability and ESG. It determines important issues (materiality) for the Ajinomoto Group that serve as guidelines for ASV management and supervises the execution of initiatives related to sustainability.

         The Executive Committee has established the Sustainability Committee and the Risk Management Committee as subordinate bodies and selects and extracts risks and opportunities based on important issues (materiality) for the Ajinomoto Group, assessing the degree of impact, formulating measures, and managing progress. In FY2024, the Executive Committee received two activity reports each from the Sustainability Committee and the Risk Management Committee.

         The Sustainability Advisory Council makes recommendations to enhance the corporate value of the Ajinomoto Group from the viewpoint of sustainability as a subordinate body of the Board of Directors. The Second Term Sustainability Advisory Council began in April 2023 and consists of four external experts, including investors and well-being specialists. An external expert also serves as council chair. The council meets at least twice a year to assess the efforts of the Board of Directors in the areas of materiality implementation, communication on implementation and information disclosure, and partnership building with stakeholders. The council submitted their final report to the Board of Directors in March 2025.

         The Sustainability Committee works with the Risk Management Committee to select and identify risks and opportunities based on materiality as well as assess their impact on the Ajinomoto Group, making proposals to the Executive Committee. The Sustainability Committee then explores and formulates countermeasures for sustainability risks and opportunities and manages their progress. In addition, the

         Sustainability Committee formulates the entire Ajinomoto Group’s sustainability strategy, promotes action themes (nutrition, environment, and society) based on this strategy, makes proposals and provides support for business plans from a sustainability viewpoint, and compiles internal information on ESG.

         The Risk Management Committee works with the Sustainability Committee to select and identify risks and opportunities based on materiality as well as assess their impact on the Ajinomoto Group, making proposals to the Executive Committee. The Risk Management Committee also develops and manages the progress of risk management measures to establish a strong corporate structure that ensures prompt and accurate responses to risks and crises, particularly with regard to risks that management should address (i.e., geopolitical risks, information security risks).

      2. Strategy

         The year 2024 was the hottest on record, with average temperatures rising by more than 1.5°C compared to pre-industrial revolution levels. It is our duty to ensure that the next generation can inherit a flourishing global environment and healthy society, which are essential to the sustainability of our business activities. Stabilizing the climate is a particularly urgent issue. To do so, we must become nature positive ‒ that is, stop the loss of nature and put nature on the road to recovery. We must also simultaneously address other mutually connected issues, such as circular economy, nutritionally balanced diets, and human rights.

         The Ajinomoto Group procures around 70% of its materials from the agricultural, livestock, and fishery industries, and therefore is highly dependent on the agrifood system, which itself is supported by the bounty of nature, or in other words, ecosystem services. The agrifood system accounts for more than 20% of all GHG emissions and is the second highest emitter behind the energy industry. Although on the one hand it has a significant impact on the global environment, it is also majorly affected by global environmental change. Moreover, around one-third of all food produced globally is wasted, and around one-third of the global population, or 2.8 billion people, do not have access to healthy food.

         As above, there is significant room for change in the agrifood system. At the Ajinomoto Group, we have been working on a biocycle to transform fermentation byproducts into fertilizer and feed, circulating nutrients to support the production of agricultural and livestock products, and improving both the global environment and QOL for farmers. Based on these activities, more recently we have been working on businesses that reduce environmental impact and promote recycling in the agricultural and livestock industries. Moreover, throughout our 110-year history, we have supported nutritionally balanced food through products and solutions, in line with global food cultures and without compromising on taste. In addition to the nutritional benefits of food, it has also become clear through global studies that cooking and eating with others is linked to subjective well-being.

         The Ajinomoto Group is engaged in a wide range of businesses based on its proprietary strength, “AminoScience,” including the Food Products business, which includes seasonings, processed foods, and frozen foods, as well as Healthcare and Electronic Materials. Moving forward, we will continue to make use of our tangible and intangible assets and work with scientists, policymakers, business leaders, and other global and local stakeholders to steadily reduce negative impacts. At the same time, we will aim to create more positive impacts for society throughout the value chain.

         We consider human assets to be the source of all our intangible assets and fundamental to the above activities. We have therefore positioned employee engagement as a key factor to improving corporate value. We are also reinforcing our human resource investments to ensure that our diverse personnel with purpose can work more closely with consumers and customers to co-create innovation.

      3. Risk management

         To achieve the Medium-Term ASV Initiatives 2030 Roadmap, we must identify risks accurately and respond to these risks promptly and appropriately. The Sustainability Committee and the Risk Management Committee work closely together to ensure no risk is left unaddressed between the two. The committees select and identify risks and opportunities based on important matters (Materiality) for the Ajinomoto Group and propose these risks and opportunities to the Executive Committee. The Sustainability Committee formulates response measures and manages progress on matters related to sustainability, including social, environmental, and nutritional issues. The Risk Management Committee handles risks that require management attention (e.g., pandemics, geopolitical risks, and information security risks).

         We implement risk management processes at each domestic and overseas work site to identify risks and formulate countermeasures, taking individual business strategies and local political, economic, and social conditions into account. The Risk Management Committee improves these processes and compiles the risks identified by each work site and addresses those that management should take the initiative to address. In addition, each business and corporation has formulated a business continuity plan (BCP) in preparation for emergencies and The Risk Management Committee has established a system for constant verification of each BCP’s effectiveness and manages the risk response. Full-time Audit Committee members attend the Sustainability Committee and the Risk Management Committee to monitor risk management process.

      4. Metrics and targets

The Ajinomoto Group is currently addressing Six Material Themes (see page 21), and has set targets and KPIs associated with these themes not only for the reduction of negative impacts, such as environmental impact, but also for the creation of positive impacts across society using its proprietary strength, “AminoScience.”

The Executive Committee is responsible for checking the progress and performance of the Group’s main initiatives.

Our major initiatives, targets, and KPIs are as below. Please see “Major risks and opportunities, focus areas, initiatives, targets, and KPIs related to Material Themes” (page 46) for initiatives, targets, and KPIs related to all the Six Material Themes.

(Note) Please see page 25 onwards for details on progress and performance for climate change, biodiversity protection, and human capital.

1. Governance

   The Company’s governance for climate change issues is as described in .

2. Strategy

   The Ajinomoto Group has a wide range of product areas in the food business, from seasonings and foods to frozen foods, and is also expanding its business into fields such as healthcare. Climate change affects the Group’s business in many ways, including delays to business due to large-scale natural disasters, impact on procuring raw materials such as agricultural produce and fuels, and changes in product consumption.

   1. Scenario analysis assumptions

      Based on the scenarios that the average global temperature will rise from post-industrial revolution levels by 1.5°C or 4°C by 2100*1, in FY2024, we again conducted a scenario analysis on the impact of climate change between 2030 and 2050 for global umami seasonings and mainstay domestic and overseas products.

      Among the effects of climate change impacting production over the short, medium, and long term, drought, floods, rising sea levels, and changing yields of raw materials were analyzed as physical risks, while the introduction of carbon pricing and tightening of other laws and regulations, rising energy prices, and changes in consumer preferences were analyzed as transition risks.

      The tables in (ii) and (iii) show risks and opportunities, respectively, in scenario analysis when the average temperature difference between the 1.5°C and 4°C scenarios as of 2030 is considered to be about 0.2°C with no significant difference in physical risk, and when the average temperature difference as of 2050 is expected to be about 1°C with differences in physical risks.

      The following is a summary of the changes in the assumptions used in our scenario analysis to date.

      	FY2020*2	FY2021*2	FY2022*2	FY2023 and onwards*2
      Business	Umami seasonings (global), mainstay products in Japan	Umami seasonings (global), mainstay products in Japan	Umami seasonings (global), mainstay products in Japan and overseas	Umami seasonings (global), mainstay products in Japan and overseas
      Time of occurrence	2030	2030/2050	2030/2050	2030/2050
      Scenario	2°C/4°C	2°C/4°C	1.5°C/4°C	1.5°C/4°C
      Sales basis coverage	24%	24%	55%	65%

      *1 Scenarios referenced are SSP1-1.9 (1.5°C scenario) and SSP5-8.5 (4°C scenario) by the UN Intergovernmental Panel on Climate Change (IPCC) and scenarios by the International Energy Agency (IEA).

      *2 For the results of scenario analyses conducted in previous fiscal years, please refer to issues of the Sustainability Data Book for the respective years.

      https://www.ajinomoto.co.jp/company/en/ir/library/databook.html

   2. Scenario analysis: Risks

*3 Calculated by multiplying the Ajinomoto Group’s FY2018 standard GHG emissions (approved by the Science Based Targets initiative (SBTi)) by the International Energy Agency’s (IEA) carbon pricing forecasts projected under the 1.5°C scenario for 2030 and 2050. Carbon pricing for 2030 is forecast at $25/t-CO2 for emerging countries, $90/t-CO2 for Brazil, China, India, and Indonesia, and $140/t-CO2 for developed countries. For 2050, the forecasted prices are $180/t-CO2 for emerging countries, $200/t-CO2 for Brazil, China, India, and Indonesia, and $250/t-CO2 for developed countries. The 4°C scenario is the outcome of the current situation with no additional or higher CO2 pricing expected.

*4 The IEA World Energy Outlook 2024 edition (based on 2023 data) shows little projected price increase for fossil fuels under the 4°C scenario, unlike the 2022 edition (based on 2021 data), which forecasted a significant rise by 2050. As a result, our projected financial impact is smaller than the estimate in the FY2023 forecast.