The History of
the Ajinomoto Group
Fiscal Years 2009 - 2019
The History of the Ajinomoto Group
Fiscal Years 2009 - 2019
The History of
the Ajinomoto Group
Fiscal Years 2009 - 2019
Greetings
The Ajinomoto Group celebrated its 110th anniversary in 2019. This history has seen a mountain
of diculties and victories.
Twenty years ago, in 1999, our operating profits were 33 billion yen. In the years that
followed, although bulk businesses such as animal nutrition grew, profits slumped due to
intensifying competition, and we were unable to achieve stable growth. Then in 2009 we marked
our 100-year anniversary.
During the period between 2009 and 2019—this “10-Year History”—we worked to shift
our focus from an over-reliance on bulk business to one that contributes to the enrichment of
people’s lives around the world. This illustrated our aim of becoming a Genuine Global Specialty
Company (GGSC). We then launched strategies such as our “FIT & GROW with Specialty” and
“Open New Sky (expansion into adjacent domains, Open & Linked innovation),” to achieve
growth with a focus on our overseas consumer business.
However, it also became clear that there were challenges to overcome. These included
global digitalization and changes in the macro environment, especially more intense competition
for bulk materials and the rise of local companies. In addition, we faced the internal challenge of
having a business structure that made it dicult to generate economic value because we had a
strong managerial focus on scale. In order to resolve these issues, we believe that improvements
to capital eciency and steady organic growth in our key businesses are essential for the growth
of the Group.
On the other hand, it was during this period that we established ASV (The Ajinomoto Group
Creating Shared Value), which represents our unchanging commitment: with our stakeholders
and businesses, we help resolve society’s issues, which leads to the creation of economic value.
In the midst of the growing need for corporate social responsibility, we have been at the forefront,
with global sustainability, food resources, and Health and Well-being as challenges facing society
in the 21st century that we want to address. Today ASV contains the universal values at the heart
of the Group.
To realize the ASV vision, we strengthened and enhanced corporate governance through
dialogue and cooperation with external parties and implemented measures to develop human
resources from a global perspective.
Our business profits are now 99.2 billion yen (FY2019), almost three times higher than in
FY1999. We believe that our various initiatives in the 2010s and the experience gained from
them are valuable assets for even further sustainable growth. I hope that all of our stakeholders
will read this “10-Year History.”
We have established a “2020 to 2025 Medium-Term Management Plan and Vision for
2030.” Our Group Vision is to become a solution-providing Group for food and health issues
that helps people worldwide lead healthier lives by unlocking the power of amino acids. As such,
we will promote management based on our ASV vision and strive as one to help resolve social
issues. We look forward to your continued support.
Takaaki Nishii
Representative Director,
President & Chief Executive Ocer
Contents
Greetings Takaaki Nishii, Representative Director, President & Chief Executive Ocer
I The First 100 Years of the Ajinomoto Group
1. A Chronicle of the Ajinomoto Group 2
2. Our 100th Year: Where We Were, What We Were Doing 8
II Taking the First Step into the Next 100 Years
- A Roadmap for Becoming a GGSC, Presented by Top Management -
1. Becoming a Global Group of Companies that Contributes to “Food,” a Fundamental for Humanity
- Interview with Chairman of the Board Masatoshi Ito 12
2. Becoming a Solution-Providing Group of Companies for Food and Health Issues by Adapting to Social
Change Driven by Digital Transformation and the Adoption of the SDGs
- A Dialogue Between President & CEO Takaaki Nishii and Keio University Professor Masahiro Okada 21
3. The Ajinomoto Group: The Last 10 Years and Expectations for the Future
- Special Contribution by Professor Masahiro Okada, Graduate School of Business Administration, Keio University 31
III Taking the First Step into the Next 100 Years
- Aiming to Become a GGSC -
The Ajinomoto Group FY2009 - FY2019 36
1. Grand Designs - Four Medium-Term Management Plans 37
2. The Challenge towards Structural Reform and Creating Growth Drivers
- Specic Measures for “FIT & GROW with Specialty” 42
(1) Rapid portfolio transformation through sales of businesses and other means…42
(2) Cultivating new markets and acquiring technology through M&As…43
(3) Cultivating markets utilizing external resources in Japan and overseas…47
(4) Innovating and strengthening R&D to support specialties…52
(5) Market cultivation and business area expansion through global development…57
(6) Organizational reform focused on overall optimization and streamlining…58
3. ESG-Related Initiatives for Becoming a GGSC
- Forging Firm Relationships with Stakeholders 62
(1) Self-reform aimed at creating a better world and group of companies…62
(2) Environmental preservation initiatives…65
(3) A prosperous coexistence with society…67
(4) Strengthening corporate governance and promoting the information disclosure…72
(5) Personnel training, job assignments, and utilization…74
(6) Reforming the organization and awareness to achieve proper operation as a global organization…78
(7) New initiatives for conveying corporate value…80
(8) New nancial and IR initiatives as a global company…82
4. Overview of Main Businesses (FY2009 - 2019) - Towards “Specialty and Global” 84
(1) Food products business…84
(2) AminoScience business…87
5. ASV Management at the Ajinomoto Group
- 2020 - 2025 Medium-Term Management Plan and Vision for 2030 90
IV Data
1. Financial Trends 92
(1) Main consolidated nancial indicators…92
(2) Consolidated statements of nancial position…94
(3) Consolidated statements of income…96
(4) Consolidated statements of cash ows…99
2. List of Director and Auditor Tenures 103
3. Executive Tenures and Changes in Number of Employees 104
(1) List of terms of oce for corporate executive ocers…104
(2) Changes in the number of employees…106
4. Diagram of HQ Organizational Changes and Aliates 107
(1) Ajinomoto Co., Inc. organizational changes…107
(2) History of group companies in Japan…112
(3) History of group companies overseas…115
5. Timeline 121
Postscript
[To Our Readers (“10-Year History” Project Coordination Team)]
As the contents of this publication cover a wide range of subjects, we created the following table for those who wish to read
about specific topics. Please use it as a guide.
Chapter I Chapter II Chapter III Chapter IV
Our Strategy and Specific Initiatives
○○
○○
(III-1, 2)
Our ESG Initiatives
○○
○○
(III-3)
Overview (History) of the Group Since Its Founding
○○
○○
(III-1, 2, 5)
○○
(IV-5)
Summary of Our Businesses
○○
○○
(III-2, ４)
The First 100 Years
of the Ajinomoto Group
I
The History of the Ajinomoto Group
I. The First 100 Years of the Ajinomoto Group
- 1. A Chronicle of the Ajinomoto Group -
2
1
Saburosuke Suzuki in his youth
In the beginning: The iodine business
The Ajinomoto Group s origins lie with Takiya, a grain and
alcohol retailer. It was founded by Saburosuke Suzuki in 1866
just before the Meiji Restoration, on the Miura Peninsula in
Kanagawa Prefecture. After Saburosuke died suddenly at the
end of 1875, his wife Naka took over business operations.
The eldest son, Saburosuke II, was an ambitious man. After
marrying, he became involved in rice speculation but failed.
As the family was having a hard time, they decided to rent
two rooms at the back of their house to summer vacationers
to help pay for their living expenses. One of their guests was
an engineer from a pharmaceutical company. He advised
Saburosuke II to produce iodine from seaweed, which inspired
his new business. Through the eorts of Naka and Saburosuke
II s wife Teru, they successfully produced it in 1888. In the
spring of 1893, they built a new plant and established a new
company, Suzuki Pharmaceutical Co. In 1895, the company
began exporting iodine and, in an eort to utilize its by-
products, began manufacturing saltpeter, the raw material for
gunpowder, for which demand rose sharply during the Sino-
Japanese (1894-95) and Russo-Japanese (1904-05) wars.
Suzuki Pharmaceutical Co. soon became one of the leading
chemical companies in the Kanto region. However, the market
was in turmoil due to a sharp decline in demand for its products
after the war, and in 1907 the company had no choice but to
merge with two of its competitors. Saburosuke II took the
opportunity to embark on a new challenge, establishing Suzuki
Pharmaceutical GSK. as a separate joint stock company with
its Hayama and Zushi Plants. The inspiration for this came
from a 1908 encounter with Dr. Kikunae Ikeda, a professor
at Tokyo Imperial University. Dr. Ikeda had been researching
the component in kelp that provides its umami flavor, which
he identied as glutamine acid. Compounded with sodium, it
became the seasoning Mono Sodium Glutamate (MSG). For
searching a company to commercialize his research, Dr. Ikeda
turned to Saburosuke II. They held a tasting that conrmed
MSG s promise, and Saburosuke II accepted the oer. One of
the motivations for Dr. Ikeda s research was to help improve
nutrition among the Japanese public. Combined with the
entrepreneurial spirit of Saburosuke II, AJI-NO-MOTO
®
and
the Ajinomoto Group were launched, already practicing the
founding aspiration of the Ajinomoto Group Creating Shared
Value (ASV) and contributing to the resolution of social issues
through the Group s business activities.
I. The First 100 Years of the Ajinomoto Group
A Chronicle of the Ajinomoto Group
May 20, 1909 was the day the umami seasoning AJI-NO-MOTO
®
rst went on sale. At that time, Japan was
expanding its power as a modern nation. The industrial revolution was underway in the nation, and Japan had
prevailed in the Russo-Japanese War (1904-05). Since then, the Ajinomoto Group has grown its business,
responding to changing lifestyles while contributing to the enrichment of food and improving quality of life
through diversication and technology with a focus on amino acids. Here we provide an overview of the history
of Ajinomoto Co., Inc. (the Company), including the events leading up to its launch.
Dr. Kikunae Ikeda (1900)
The launch of AJI-NO-MOTO
®
and struggles during
the founding years
Saburosuke II s younger brother, the scholar Chuji Suzuki, was
placed in charge of the establishment of a production method
for the new seasoning. Saburosuke II s eldest son Saburo,
later to become Saburosuke III, was in charge of sales and
advertising. Saburosuke II managed the enterprise as a whole.
The name Ajinomoto was
decided in November 1908, and with a
trademark registered they were ready
to launch. However, as production
involved breaking down wheat with
hydrochloric acid, corrosion of the
vessels used in the process, became
an issue. With no overseas precedents
to learn from, the situation was so
A Domyoji pot
The History of the Ajinomoto Group
I. The First 100 Years of the Ajinomoto Group
- 1. A Chronicle of the Ajinomoto Group -
3
patent, the Great Kanto Earthquake when the head office
burned (1923), and a labor dispute at the Kawasaki Plant (1925).
During that period only 1920 was in the red, but operating
prots remained in the high 4 million yen range from 1926
and grew to about 5.4 million yen in 1931. During this period,
Saburosuke II was commended by the Imperial Institute of
Invention and Innovation in 1926, along with Sakichi Toyoda
(who developed an automated loom), and Kokichi Mikimoto
(who succeeded in pearl cultivation). AJI-NO-MOTO
®
became
known as one of Japan s Three Greatest Innovations.
Business expansion and World War II
In March 1931, Saburosuke Suzuki II died and Chuji Suzuki
became the company s second President. The Manchurian
Incident occurred the same year. Due to the Finance Minister
Takahashi Korekiyo s aggressive scal policy, the country
experienced a brief period of prosperity until the Second
Sino-Japanese War began in 1937. In this context, Chuji,
who had mainly been in charge of technology and production
since the company started, announced a complete reform
of manufacturing technology and the development of related
products and worked on the creation of acid-resistant
technologies and the conversion of raw materials into defatted
soybeans. The transition started in 1934. The company
also processed and commercialized by-products, with the
development and launch of the amino acid solution
AJIEKI
in
1934 and
ESUSAN Fertilizer
in 1936. Sales of
AJI-NO-MOTO
®
also increased due to its price cut etc. and use of the product
spread from urban to rural areas, eventually even being adopted
by low-income consumers. Sales of AJI-NO-MOTO
®
soared,
thanks to the organization of the Ajinomoto Association and
the introduction of new marketing approaches like special sales
with perks, as well as increased exports. In 1937, production
peaked at 3,750 tons before the war, and the total prot of
Ajinomoto
Honpo S. Suzuki &Co., Ltd. (renamed in October
1932) reached 8.85 million yen in 1938. In addition, with a
transition in raw materials and an increase in by-products, the
company also established subsidiaries and affiliated companies
in the elds of sake brewing, pharmaceuticals, the electrical
industry, and edible oil manufacturing to ensure a stable supply
of defatted soybeans, forming the small conglomerate that
could be called a Group. In June 1932, an eight-story head
office building was completed in Takara-cho, Kyobashi Ward,
Tokyo (present-day Chuo-ku, Tokyo).
With the outbreak of the Second Sino-Japanese War
in July 1937 and the National Mobilization Law in 1938,
economic control over the country was increasingly tightened.
With the formation of the Dai-Nippon Industrial Patriots
Society in November 1940, the freedom of corporate activity
was nearly brought to a halt. Ajinomoto Honpo S. Suzuki
& Co., Ltd. had also been forced to reduce production and
sales of AJI-NO-MOTO
®
since the outbreak of World War
II in 1941 in favor of producing military supplies, and
newspaper advertisements were discontinued. Starting in
1942, AJI-NO-MOTO
®
was produced as a by-product of the
dire that at one point Saburosuke II said they had fallen into
a predicament beyond their control that words could barely
describe, the situation being almost too much to handle.
However, after great toil they discovered that Tokoname-yaki
ceramic Domyoji pots could be used, which created a way
forward.
AJI-NO-MOTO
®
was launched in May 1909 after the
national laboratory conrmed its safety. The company set up an
office in Kyobashi (Tokyo City, Tokyo Prefecture, now Chuo-
ku, Tokyo). To make a name for itself, they installed a display
window and electric lights, which were rare at the time. The
company established a sales network by concluding special
dealer contracts with major food and liquor wholesalers and
establishing distributors in local major cities. However, the new
seasoning was expensive; while a cup of soba noodles and broth
at the time sold for 3 sen, a small 14-gram bottle of the product
sold for 40 sen. As a result, sales were dismal. Saburosuke II
sought to advertise in newspapers and market the product to
kamaboko sh cake manufacturers while seeking sales channels
in Taiwan, Korea, and China during Japan s colonial period.
Even so, the company continued to struggle.
In 1912, Suzuki Pharmaceutical GSK. was renamed
Suzuki Shoten GSK., and July of that year issued in the Taisho
era. Suzuki Shoten GSK. s iodine and saltpeter businesses
were solid. The construction of the Kawasaki Plant took place
between 1913 and 1914, made possible in part due to growth
during World War I (1914-1918). Industrial development during
the war encouraged urbanization and the adoption of electricity,
and the economic boom opened the door to a mass consumer
society. Against the backdrop of those developing Taisho
Modern times, Saburosuke II championed more progressive
management. He converted the organization to a corporation in
1917 and set up an office in New York.
Suzuki Shoten GSK. and AJI-NO-MOTO
®
operations were
suspended at the Kawasaki Plant in 1920 due to the failure of
Saburosuke II s stock investments. Further damages occurred
due to rumors surrounding the Ajinomoto Raw Material Snake
Theory (around 1920), the expiration of the AJI-NO-MOTO
®
Domyoji pots
( Cooling crystallization of
hydrochloric acid)
Certificate declaring Ajinomoto “harmless”
The History of the Ajinomoto Group
I. The First 100 Years of the Ajinomoto Group
- 1. A Chronicle of the Ajinomoto Group -
4
amino acid solution used as a substitute for soy sauce. During
this period, Saburosuke Suzuki III was appointed President
in August 1940. The company changed its name to Suzuki
Shokuryo Kogyo Co. in December 1940 and again to Dai-
Nippon Chemical Co. in May 1943. Sales of AJI-NO-MOTO
®
in Asia and the U.S. continued to stagnate or shrink, and by the
end of the war the company was mostly producing items used
in munitions like electrolysis, linings, alumina, etc.
First steps toward postwar reconstruction and
modernizing management
By the end of the war in August 1945, Japan had lost more
than three million lives, major cities had been devastated, and a
quarter of national wealth had been lost. The nation then began
its journey towards reconstruction.
Dai-Nippon Chemical Co. was renamed Ajinomoto Co.,
Inc. in April 1946 under the decisive leadership of Saburosuke
Suzuki III, and resumed production of AJI-NO-MOTO
®
in
May of that year. There was a strong underlying belief that
AJI-NO-MOTO
®
had to be provided to the public during that
post-war period of poverty. Meanwhile, Saburosuke III had
to face the General Headquarter of the Allied Forces policy
of dissolving large industrial groups. In addition to changing
the company name, to minimize disruptions the Suzuki family
retired from management and released their shares. Suzuki III
also resigned as President in May 1947 and the company was
listed on the stock market in
May 1949.
Toyonobu Domen became
President of the Company in
May 1948. He had moved to the
U.S. at a young age, and with
his international experience
ran the New York office of the
Company before the war and
dealt with GHQ in English
afterwards. The production of
the insecticide DDT, which
kept the Company afloat immediately after the war, was also due
to Domen s American network. Under Domen, the Company
took a series of measures to transform itself into a modern
company. These included the introduction of a council system for
meetings, open recruitment of employees rather than the network
of connections that had prevailed until that point, the institution
of overseas inspection tours, and the development of international
offices. These consisted of the re-opened Los Angeles Office in
1951 and New York Office in 1953, along with the establishment
of new offices in Sao Paulo, Paris, Bangkok, Singapore and Hong
Kong in 1954.
During this period, the Company got its system back on
track, with eorts such as resuming advertising in newspapers
and retail store visits to promote sales and establishing offices in
major cities. From August 1950, the Company was once again
able to sell freely. In March 1955, the conscated Ajinomoto
Building was returned, marking the end of the Company s
postwar reconstruction.
Expansion during the high-growth period,
part 1: Product development and changes in
manufacturing methods
With the special procurement demands of the Korean War
(1950-53) as an impetus, the Japanese economy experienced
three major periods of economic growth: the Jinmu Boom (31
months), the Iwato Boom (42 months), and the Izanagi Boom
(57 months) that followed the 1964 Tokyo Olympics. On the
heels of this miracle of reconstruction and rapid growth, in
1968 Japan became the second largest capitalist country in the
world after the U.S.. During this period, domestic consumption
of MSG also continued to grow rapidly, reaching 76,000 tons
(calculated as production minus export volume) or 744.5 grams
per capita in 1968.
In the midst of this rapid growth period, the Company
solved its business challenges while boosting its business
through an expansion of the sales volume of AJI-NO-MOTO
®
under Domen s leadership. This was due to a change in
manufacturing methods.
The extraction method relies on breaking down
agricultural products such as soybeans with strong acids. This
method has problems such as the instability of the price and
quality of raw materials and the deterioration of equipment
due to acids. The need to develop a new manufacturing
method was urgent. In 1956, we established the Central
Research Laboratory and started to develop two new types
of manufacturing methods: a fermentation method that
uses microorganisms and a synthesic method that relies on
chemical synthesis. The fermentation method was earlier
developed by Kyowa Hakko Kogyo Co., Ltd. We developed
our own technology and completed the change to the updated
manufacturing process at the Kawasaki Plant in 1965.
Production with synthesis method began at the Tokai Plant in
1961, and the year after it opened.
Competition intensied at this time when other companies
launched compounded seasonings. They added inosinic acid
(the umami component of dried bonito flakes) and guanylic
acid (the umami component of shiitake mushrooms) to MSG.
After falling behind with its mainstay product, the Company
attempted to regain its footing in 1962 with the launch of
Umami Dashi
Hi-Me
®
. By 1966 it had become the leading
brand. In 1960 we launched
Aji-Shio
®
, rened salt coated
with MSG, which was a big hit. Even so, MSG s market share
gradually declined. It had been 80% in 1955 for both consumer
and commercial use products in domestic and export markets.
By 1968, the domestic market share had fallen to 51%, and
especially the commercial (industry and food service) market
share dropped below 40%.
Expansion during the high-growth period,
part 2: Diversication
Amid intensifying competition for its mainstay products, the
Company made the foray into consommé and ramen soup
Our fourth President,
Toyonobu Domen
The History of the Ajinomoto Group
I. The First 100 Years of the Ajinomoto Group
- 1. A Chronicle of the Ajinomoto Group -
5
through its acquisition of Nippon Shokuhin Kogyou Co., Ltd.
In light of the popularity of instant products, Knorr Foods
Co., Ltd. was established in March 1963 in partnership with
the U.S. s Corn Products International (CPC)
1
. Through the
customization and marketing of
Knorr
®
Soup
in Japan, we
were able to introduce modern American marketing methods
from CPC. In 1968, the Company launched its mayonnaise and
diversied into food products, including edible oils.
Diversication had been driven by technology and sales
capabilities, the latter of which was helped by a powerful sales
network and branding in addition to advanced approaches to
marketing. Domen served as the rst Chairman of the Japan
Marketing Association and contributed not only to the Company
but also helped establish and raise the prole of marketing in
Japan.
Knorr
®
Soup Ajinomoto KK Mayonnaise
Expansion during the high-growth period,
part 3: Internationalization
Domen s genius was in pursuing international expansion in
parallel with diversication.
Domen visited the U.S. three times after the war between
1949 and 1952 and succeeded in selling MSG to major food
companies and other parties. His third trip included Europe
as well. He also worked on changing the mindset of the entire
management team. Directors in charge of overseas business
traveled to Southeast Asia and the U.S. numerous times for
inspection tours. Nine trips to overseas markets were made in
total in the roughly four years from 1949 to 1952. They were all
on Domen s instructions, with an eye towards the Company s
internationalization. From Toyonobu Domen, A Manager
Who Challenged the Times: Another Jiro Shirasu (Economics
Edition), by Tomohide Tsuji.
To help develop markets in Southeast Asia, our employees
visited markets and small shops in the provinces and gave
them free packages of our products to encourage further use.
We were also able to build a successful system for delivery
and payment collection by local employees. The Company
worked to cultivate the European market by setting up a local
plant in Italy and strengthening exports from Japan. As a result,
sales in FY1969 exceeded 100 billion yen. Domen was invited
to participate in the 13
th
World Congress of the Academy of
International Business held in New York City in September
1963 (sponsored by the International Council for Scientic
Management). He gave a speech on the theme of Social
Responsibility and the Managers of Tomorrow, demonstrating
how far his international vision had come.
Domen retired from the
Company in November 1965.
The Company funeral was
held for him when he passed
away in March 1981.
In a special issue of
the Company s corporate
newsletter entitled Honoring
the Late Senior Advisor to
the Board Domen, Bunzo
Watanabe
2
wrote a piece
describing the essence of
Domen s management style.
Domen s motto was In
the spirit of fair play. Common in the American sports world,
including football and Major League baseball, it was known
throughout the Company as its most concise catchphrase.
It also summarized Domen s management philosophy as
follows:
We cannot be satised with our business simply if the
Company prospers, favors its shareholders and treats its
employees well. Given the public nature of our business,
we need to reach the level of a Public Service. This means
contributing to society, not just by streamlining production and
providing people with better quality products at lower prices, but
by improving society itself through our business activities, even
if only a little. I hope we ll always work towards this ideal.
He s referring to the social responsibilitytoday known
as CSRthat companies are obliged to abide by. Watanabe
was surprised yet respectful of the fact that Domen already had
this kind of vision in his management philosophy, which was
decades ahead of its time, and laid out the full story, in the mid-
1950s when the Japanese economy was about to enter a growth
period after its postwar recovery.
Toyonobu Domen now rests with his ancestors in
Hiroshima, where he was from. (See previous citation)
Safety measures and full-scale international
expansion
The Company developed steadily until October 1969, when
it encountered a situation that had the potential to shake the
business to its foundations: MSG was suspected of being
unsafe.
Dr. Olney of the U.S. conducted experiments in which
MSG was administered to newborn mice, which resulted in
brain damage. Based on these results, the president s specialist
on nutrition and health recommended that MSG not be used in
baby food. The Japan Chemical Seasoning Industry Association
(now Umami Manufactureres Association of Japan) argued that
Olney s experiment relied on usage far removed from the norm.
However, there was widespread talk of Chinese restaurant
1. At the time CPC had soup-maker Knorr in Germany and mayonnaise maker Best
Foods in the U.S. under its umbrella.
2. The President of the Company at the time
Saburosuke Suzuki, our third
President, and Toyonobu Domen (left)
The History of the Ajinomoto Group
I. The First 100 Years of the Ajinomoto Group
- 1. A Chronicle of the Ajinomoto Group -
6
syndrome, an unfounded claim that only resulted from massive
overuse. These issues had an enormous eect on the Company.
In response, the Company conducted a series of studies to prove
the safety of MSG under the leadership of two Presidents,
Kyoji Suzuki (1965-73) and Bunzo Watanabe (1973-81). Based
on this data, in 1980 the U.S. s Food and Drug Administration
(FDA) concluded that MSG was Safe at the current levels of
use. In 1987 the Joint FAO/WHO Expert Committee on Food
Additives (JECFA) stated that MSG is not harmful to human
health, so there is no need to specify a maximum recommended
daily intake. This put an end to the problem.
In addition to MSG safety issues, the Company was faced
with problems related to Japan s transition to stable growth.
With the Nixon Shock of 1971 and the 1973 1st Oil Crisis, the
growth due to exports and quantitative expansion reached a
turning point. Japanese companies worked to conserve energy
and downsize, with the economic growth rate falling to less
than half of what it was during the high growth period. Yet the
Company grew in the midst of these severe circumstances. It
launched the new mainstay flavor seasoning
HON-DASHI
®
in
1970, the Chinese-food seasoning
Chuka Aji
®
in 1977, and the
seasoning for Chinese dishes
Cook Do
®
in 1978. The Company
launched an instant coee in partnership with the U.S. s
General Foods Corporation and established Ajinomoto General
Foods Co., Ltd. in 1973. Ajinomoto Frozen Foods Co., Ltd. was
established in 1970, and full-scale development of our frozen
food business began in 1972. A business tie-up commenced
with Danone S.A. in France in 1980. A License Agreement with
Searle, G.D. Searle & Company was also signed in 1970 for the
sweetener aspartame, which was later commercialized.
In overseas business, the Company established a system
of direct sales in Asian countries with the launch of flavor
seasonings tailored to local cuisine and the manufacturing and
sale of ramen noodles in South America in retail businesses.
The commercial use business shifted to local production in
Peru and Indonesia, and we began a full-scale feed-use Lysine
business with the opening of a production base in Europe
along with other developments. Sales in FY1979 were about
350 billion yen, more than two and a half times higher than
the 135 billion yen in FY1971, the year of the transition to
stable growth. It was during this period that environmental
conservation eorts at our plants began in earnest against a
backdrop of the worsening domestic pollution problems.
Business expansion and restructuring during the
bubble years and after the bubble’s collapse
After the oil crisis, Japanese companies that radically reduced
costs and developed cutting-edge technologies became
dominant in the 1980s in the automotive, consumer electronics,
semiconductor, and other industries. This also caused trade
and economic friction, and the Plaza Accord in 1985 led to
a recession caused by a strong yen. However, due to various
policies like low-interest rates designed to encourage domestic
demand, the economy began to recover in 1986, and the
money that no longer needed to be raised from banks due to a
strengthened corporate structure was invested in land and stocks.
A major bubble economy then grew until stock prices plunged
in 1990. Following the collapse of the bubble, Japan entered a
prolonged recession and continued to stagnate with the rise of
emerging economies and the end of the Cold War.
Having reaffirmed the safety of MSG, the Company
planned to become a world-class company under the leadership
of Presidents Katsuhiro Utada (from 1981) and Tadasu Toba
(from 1989). The WE-21 Plan announced in 1989 set a target
for sales of 1 trillion yen and 3 billion USD for exports and
overseas businesses while promoting diversication of food
products, ne chemicals and services, and expansion of our
operations overseas. In the food products sector, the Company
formed a business partnership with Calpis Food Industry, Co.,
Ltd., expanded into Vietnam and Nigeria, developed its frozen
food business in South Korea and Taiwan, and launched a
full-scale sweetener business. In the ne chemicals sector, the
Company expanded into electronics. In the service sector, our
businesses entered elds as diverse as healthcare, vegetables,
seedlings, packaging, restaurants, and golf courses. However,
many of these eorts had little synergy with our core business,
and coupled with the collapse of the bubble economy, many
had to be shuttered or restructured. The following is a list of
Ajinomoto KK’s frozen foods at the
time of its launch
Maxim
®
coffee at the
time of its launch
The consumer sweetener PAL SWEET
®
Cook Do
®
Mabo Tofu at
the time of its launch
Ajinomoto KK’s HON-DASHI
®
at the time of its launch
ELENTAL
®
The History of the Ajinomoto Group
I. The First 100 Years of the Ajinomoto Group
- 1. A Chronicle of the Ajinomoto Group -
7
new businesses and products that bore fruit.
A sweetener business featuring the low-calorie sweetener
aspartame (adopted by Diet Coke in 1983, launched as
PAL SWEET
®
for Japanese consumers in 1984)
ELENTAL
®
, an elemental diet (1981)
Our pharmaceutical business was solidied with launches
like
LIVACT
®
(1996), a branched-chain amino acid drug
for liver diseases
A frozen bread dough business established by Ajinomoto
Frozen Bakery Co., Ltd. (1993)
Expansion of our specialty chemicals business into
materials for electronic parts and launch of the cosmetic
JINO
®
(1997)
amino VITAL
®
(1995), an amino acid nutritional food for
athletes
In parallel with these expansions, we proceeded with
business restructuring, which involved consolidation of
production and bolstered manufacture of commercial use
products in the seasonings business (which struggled with
a shift away from Japanese food and a trend towards eating
out), in addition to the edible oils business (which faced the
liberalization of imports from overseas in addition to sluggish
consumption).
Shunsuke Inamori assumed the post of President in 1995.
In light of the bubble s collapse and the failure of many of the
diversied businesses, he sought to correct this trajectory by
formulating the MSG global strategy and introducing other
measures. In March 1997, he was forced to resign due to a
scandal that involved illegal payments to corporate racketeers.
Standards of Business Conduct in April 2000 in light of a
cartel incident involving U.S. subsidiaries. Advancing from
Japan to the global arena as a leader in foods and amino acids,
we practiced the Ajinomoto Way as a technology-driven
company with amino acids at its core. The Company s basic
policies included its Strong No. 1 Strategy, which focused
on businesses and products with the global No. 1 or 2 market
shares and reorganized the others, instituted a fully bottom-
up approach, and involved all employees in management.
Important challenges to allow us to compete with major global
food companies included consolidated management, promotion
of brand strategy, strengthening cost competitiveness,
streamlining research and development systems, and promotion
of corporate citizenship. Specic measures included the sale
of defective businesses, the reorganization and integration of
subsidiaries, a system of 6 business-specic laboratories (1998),
the establishment of the Ajinomoto Group Corporate Citizenship
Committee (1999), the introduction of the corporate slogan
A taste of the future (1999), the Brand Review Committee
(2000), Ajinomoto Stadium naming rights acquisition (2002),
introduction of a virtual company system (2002), introduction
of a Corporate Executive Officer system and a reduction in
the number of Board of Directors (2003). We also built a
foundation suitable for a global food company, including the
acquisition of ISO9000 and ISO14000 series certication,
establishment of a CSR Division, and establishment of our CSR
Vision (2005).
Our overseas businesses saw a focus on business expansion
in China, a joint venture with a Russian research institute,
and establishment of a full scale frozen food business by the
aquisition of a local company in the U.S. (2000). We developed
a variety of other businesses around the world, including
retail seasoning, feed-use lysine, sweetener, and frozen food
businesses.
Norio Yamaguchi was appointed President in 2005, and he
continued this approach. Under the
-dvance10 medium- to
long-term plan, the Company acquired Hong Kong Amoy Food
Group (2006), made GABAN Co., Ltd. a subsidiary (2006),
sold Mercian Corporation (2006), entered a capital tie-up with
YAMAKI CO., Ltd. (2007), sold Calpis Ajinomoto Danone Co.,
Ltd. (2007), and made Calpis Co., Ltd. a fully owned subsidiary
(2007).
As a result of these eorts, consolidated sales surpassed 1
trillion yen in FY2003 and reached 1.21 trillion yen in FY2007.
However, the prot margin on sales did not exceed 5%, and
it was left to the next generation to strengthen the Company s
standing as a global company, including in terms of human
resources.
A century after its founding, the Ajinomoto Group stood on the
threshold of becoming a global food company, responding to
the changing times while looking back to its original mission:
to contribute to people s health and improve dietary habits at
every turn.
amino VITAL
®
PRO at the time of its launch
JINO
®
at the time of its launch
From Japan to the world
Kunio Egashira succeeded Inamori as President in 1997. He
strengthened corporate governance through measures like
the reinforcement of auditing and legal functions and the
establishment of the Ajinomoto Co., Inc. Standards of Conduct
in April 1997, which were revised as the Ajinomoto Group
The History of the Ajinomoto Group
I. The First 100 Years of the Ajinomoto Group
- 2. Our 100th Year: Where We Were, What We Were Doing -
8
2
The Ajinomoto Group at 100 years
In 2009, a century after the launch of AJI-NO-MOTO
®
in May
1909, the Ajinomoto Group was one of Japan s leading food
companies. Sales had exceeded 1 trillion yen for 6 consecutive
years from 2003 and surpassed 1.2 trillion yen in FY2007.
Net prot had remained in the 30-40 billion-yen range, despite
some fluctuation. Further, as indicated by the nal chapter s
title From Japan to the World of our 100-year history, First
100 years of the Group: New Value Creation and the Pioneer
Spirit, we had embarked on full-scale globalization. Although
sales from our international food products business were still
only about 12% of total sales, with overseas sales of umami
seasonings, amino acids, animal nutrition products, and similar
items included, the gure was closer to 30%.
In terms of food products in Japan, consolidated
subsidiaries with established brands included Knorr Foods Co.,
Ltd., Ajinomoto Frozen Foods Co., Inc., Calpis Co., Ltd., and
GABAN Co., Ltd., equity-method affiliates such as Ajinomoto
General Foods Co., Ltd., J-OIL MILLS, INC., and YAMAKI
CO., Ltd., as well as a number of subsidiaries dealing in
amino acids, pharmaceuticals, logistics, and various services
were operated. The Overseas business of the Group was at the
forefront of the global expansion of Japanese food companies.
Entities involved included local subsidiaries doing businesses
of Ajinomoto itself, its consolidated subsidiaries and equity
method affiliates, as well as the Amoy Food Group, led by
Hong Kong Amoy Food, Ltd.
As of the end of FY2008, we had 26,869 employees,
including those at our consolidated companies. In Japan,
business operated from 3 production bases in Kawasaki (mainly
food products), Tokai (mainly sweeteners, food products and
pharmaceuticals), and Kyushu (mainly amino acids). We had
research laboratories (the main one in Kawasaki), 5 branch
offices (Tokyo, Osaka, Kyushu, Nagoya, and Tohoku)
1
and
a sales department responsible for nationwide accounts, as
manufacturing, development, and sales bases. Overseas, we had
a total of 20 offices, including 2 in North America, 2 in Latin
America, 2 in Europe,
9 in Southeast Asia,
and 5 in East Asia. We
sold AJI-NO-MOTO
®
and flavor seasonings
tailored to local cuisine
in over 100 countries,
and we enjoyed a
high degree of market
penetration in Southeast
Asia in particular.
A severe business environment
Nevertheless, as the Group entered its 100th year, the business
environment surrounding it was full of challenges.
One aspect was a detour along our move to globalization
due to setbacks with our WE-21 long-term plan. WE-21 (WE
= World Excellence) aimed to become a 21st century industry
leader in light of intensifying global competition and the
international mergers and acquisitions that have become a
powerful means of competition. We announced the management
I. The First 100 years of the Ajinomoto Group
Our 100th Year:
Where We Were, What We Were Doing
1,190.3 billion yen
Sales
Food Products
in Japan
653.9
International
food products
148.7
Amino acids
246.9
Other business
55.0
Pharmaceuticals
85.7
1,190.3 billion yen
Sales
Japan
843.3
Asia
151.0
Europe
89.4
Americas
106.5
40.8 billion yen
Operating
profit
Food Products
in Japan
16.9
International food products
11.5
Amino acids
9.4
Other business
2.4
Pharmaceuticals
13.6
40.8 billion yen
Operating
profit
Japan
26.9
Asia
16.0
Europe
1.7
Americas
8.6
Figure I-1: Our 100th Year (FY2008 consolidated results)
(Unit: 100 million yen)
Results by segment
Regional results
1. This includes the Kanto Branch under the Tokyo Branch, the Chugoku and
Shikoku branches under the Osaka Branch, and the Hokuriku Branch under the
Nagoya Branch.
Source: Financial statement
26,869 people
Food Products
in Japan
7,117
Amino acids
6,627
Pharmaceuticals
1,870
Other business
3,086
Group-wide (All Segments)
557
International
food products
7,612
Number of employees (by segment)
Note: Operating profit includes an
elimination of 13.2 billion yen
Note: Operating profit includes an
elimination of 12.5 billion yen
The History of the Ajinomoto Group
I. The First 100 Years of the Ajinomoto Group
- 2. Our 100th Year: Where We Were, What We Were Doing -
9
manufactureres in emerging countries such as China were
gradually gaining market share in this business, using low costs
to their competitive advantage. The expansion of the Group was
also having a number of negative eects. For example, there
was a desensitization to the fact that the Ajinomoto Group
common sense was losing touch with the society little by
little, as well as distance growing between management and the
employees.
The 2008 nancial crisis (the Lehman Shock) and
falling into the red
The 2008 nancial crisis (the Lehman Shock) occurred in this
context in September 2008. Since the previous year, there had
been nancial instability due to subprime mortgages
2
marketed
to low-income families in the U.S.
The global economy was in recession from the once-
a-century nancial crisis. Though the damage to Japanese
nancial institutions was not extensive, the export industry
was hit hard by recessions in Europe and the U.S. Japan s real
economic growth rate shrank in FY2008 and FY2009. Japan s
longest post-war growth period (longer than the Izanagi Boom)
came to an end.
As a result, while net sales for the Group s FY2008
nancial results were only slightly reduced, there was a net
decit of more than 10 billion yen due to factors like large
foreign exchange losses of Brazilian subsidiaries. This was
the fourth time the Group had fallen into the red. The rst and
second were during periods of emergency shortly after the
founding and immediately following the World War II. The
third time was when the Group recorded an extraordinary loss
on corporate pensions due to the globalization of accounting
standards in FY2000. This fourth instance was the rst time
loss occurred due to factors that a company could have avoided.
Structural changes in the world and Japan
In addition to these unexpected events, other changes that had a
major impact on the Group s business development were taking
place both in Japan and around the world.
In terms of the global economy, the expansion of emerging
economies was an important change. The response to the Lehman
Shock was discussed among developed nations and at the G20
(a summit of leaders of the 20 countries/regions concerning world
nancial and economic issues). The fact that nancial stimulus by
China, one of BRICS
3
, played a major role in staving o a major
depression was a clear illustration of this.
On the other hand, the Japanese economy had a low growth
plan in 1988 with the goal of laying the groundwork to allow
us to compete with major global food companies, including
milestones like achieving sales of 1 trillion yen. This goal itself
was timely, given the state of global competition. However,
most of these eorts were unsuccessful because the Group
sought to diversify domestically to help achieve the goal,
straying from its core business with restaurants and other
service sector initiatives. Subsequently, we moved in the
direction of growing our umami seasonings business in various
markets around the world, which led to the creation of a new
business model for the Group. The Group s strategy to become
a global food group of companies was back on track, but it took
more than ve years to make the transition.
From then, Ajinomoto Fine-Techno Co., Inc. was
launched in 1998. The next year they released
Ajinomoto
Build-up Film
®
(
ABF
), an interlayer insulating material for
semiconductor packages, which was adopted by major CPU
manufacturers and rapidly became the de facto standard.
Subsequently we worked to establish a system that would allow
us to compete on the world stage while remembering where we
started as a company. The medium to long-term management
plan for scal years 2005 to 2010 sought to accomplish
this through initiatives like -dvance10, revision of the
Ajinomoto
Group Philosophy, and
Ajinomoto
Renaissance,
which reaffirmed our founding mission to improve nutrition
in Japan by recognizing the value of the umami seasoning
AJI-NO-MOTO
®
and bringing it to the world. We set CSR
Management as one of our basic strategies to become a
respected Corporate Citizen worldwide and established our
CSR Division to focus on activities involving dietary education
in addition to our existing initiatives that ensure the safety
and security of our products and manufacturing processes and
respond to environmental issues. All of this is part of aiming to
become a global group of companies that is not solely focused
on scale.
However, the overall performance of the Group has
been greatly influenced by the feed-use amino acids business,
which we focused on as the Group expanded. Moreover,
ABF is used for build-up boards, which form the foundation of CPUs
with their multiple layers of tiny electronic circuits. Laser processing
and direct copper plating on the surface can create micrometer-scale
electronic circuits
IC: Semiconductor
Build-up board
Circuit connected
to the outside
Printed circuit board
2. Against the backdrop of the housing bubble, loans were provided to those who
would not usually be able to secure a mortgage. Securitized receivables became
nancial products which were sold to nancial institutions in order to diversify
risk. However, when the housing bubble burst leaving many unable to pay their
debts, the nancial products that incorporated subprime loans collapsed, and the
nancial institutions that were buying them suered a great blow. With the collapse
of the long-established U.S. securities rm Lehman Brothers, it all came to a head
spurring a global nancial crisis.
3. BRICS is an acronym for the emerging countries of Brazil, Russia, India, China,
and South Africa, which in 2001 the investment bank Goldman Sachs predicted
would experience rapid growth.
Figure I-2: Ajinomoto Build-up Film
®
(ABF), an interlayer
insulating material for semiconductor
packages
The History of the Ajinomoto Group
I. The First 100 Years of the Ajinomoto Group
- 2. Our 100th Year: Where We Were, What We Were Doing -
10
rate even during the period of long-term growth from 2003 and
economic disparity widened. Furthermore, Japan s population
has been declining since 2005, and combined with its aging, the
market for food products had inevitably shrunk.
Issues of corporate governance
In 1997 the Group faced severe criticism of its corporate
governance and its top executive resigned over a scandal
involving illegal payments to corporate racketeers. For this
reason, with regard to corporate governance, we worked to
reinforce our internal auditing and legal functions and made
ongoing eorts to unify the Group through the establishment
of the Group Standards of Business Conduct and our Quality
Policy. The spate of corporate scandals in the early 2000s, when
prestigious companies were instantly discredited and even
dissolved, also made corporate governance essential.
For the Group, it had become even more important from
the perspective of corporate governance to ensure that the
Group s philosophy and policies were fully implemented in
the context of overseas expansion and continuing mergers and
acquisitions. In addition, prompt decision-making with a view
to overall optimization of the Group was required, and we
reached a turning point of the virtual company system which
was ideal for optimizing each individual business.
Furthermore, with the ratication of the Kyoto Protocol in
1997 and the United Nations Millennium Development Goals
(MDGs) in 2000, the Group s response to challenges regarding
the global environment and human society had become more
sophisticated. The time was arriving when Environment,
Society, and Governance (ESG) and Sustainable Development
Goals (SDGs; established by the United Nations in FY2015)
would become an important criterion for investment in
companies. The Group was an early endorser and participant
in the United Nations Global Compact in 2009, but to achieve
CSV (Creating Shared Value) that generates both social and
economic values, it was necessary to go deeper and evolve even
further.
In the midst of such complicated circumstances, Masatoshi
Ito was appointed President & CEO of the Group in June 2009,
and was charged with laying the groundwork for the Group s
next 100 years of global expansion.
The History of the Ajinomoto Group
II. Taking the First Step into the Next 100 Years
- 1. Becoming a Global Group of Companies that Contributes
to “Food,” a Fundamental for Humanity -
11
II
Taking the First Step
into the Next 100 Years
- A Roadmap for Becoming a GGSC,
Presented by Top Management -
The History of the Ajinomoto Group
II. Taking the First Step into the Next 100 Years
- 1. Becoming a Global Group of Companies that Contributes
to “Food,” a Fundamental for Humanity -
12
Masatoshi Ito
1
When the Ajinomoto Group celebrated the 100th anniversary of the launch of AJI-NO-MOTO
®
in June 2009,
current Chairman of the Board Masatoshi Ito was appointed as Ajinomoto Co., Inc.’s 12th Representative Director
and President & CEO. Although the company had recorded a loss in FY2008 and the situation remained dicult
due to factors such as the Great East Japan Earthquake in 2011, President & CEO Ito achieved a recovery in
business results through measures such as reorganization of unprotable businesses and cost reductions. Through
the FY2011 - 2013 and FY2014 - 2016 Medium-Term Management Plans that followed, he formulated the vision
to become a “Genuine Global Company” and by advancing FIT (business structure reform) and GROW (growth
driver development), he achieved record prot in FY2015. While working to realize this, he also focused on
external collaboration and the establishment of a base suitable for a global company in terms of organization,
human resources, and other areas.
Furthermore, the Ajinomoto Group Creating Shared Value (ASV) that was formulated under his leadership
advocates creating both social value and economic values and rearms the philosophy held by the Ajinomoto
Group since its founding. This will be passed on to future management for many years to come.
What are Chairman of the Board Ito’s thoughts and feelings about these various management initiatives that
he led?
Appointment during a time of crisis and promotion
of information sharing
Q: When you were appointed President & CEO, the
Company was marking the 100th anniversary of the
launch of AJI-NO-MOTO
®
. What was your impression
of the situation at the Company and the challenges it
was facing at this time?
Ito:
While publications of the
Ajinomoto
Group s history such
as The First 100 Years of the Ajinomoto Group had content
Masatoshi Ito
Chairman of the Board
Born in Tokyo in 1947. Joined Ajinomoto Co., Inc. in 1971. Served
in positions including General Manager of the Processed Food
Department of the Food Products Division, Representative Director
and President of Ajinomoto Frozen Foods Co., Inc., Representative
Director & Corporate Senior Vice President and President of
the Food Products Company of Ajinomoto Co., Inc. Appointed
as Representative Director, President & CEO in 2009 and
Representative Director & Chairman of the Board in 2015. Also has
important responsibilities outside the Group, including as President
of the Japan Sport Association, Chairman of the Japan Overseas
Enterprises Association, and President of the Japan Advertisers
Association Inc., and serves as an outside director of Japan Airlines
Co., Ltd. and NEC Corporation.
such as looking at the next 100 years, in reality we were not
in a position to look 100 years into the future.
The animal nutrition (referred to as feed-use amino acids
at the time) and pharmaceuticals businesses were struggling.
Under the leadership of President & CEO Kunio Egashira
(1997-2005), the animal nutrition business had been extremely
successful, generating about a third of overall prots. This was
the result of the accumulation of research carried out by the
Company over many years. However, from 2005, although
the rise of Chinese manufacturers had expanded the market,
II. Taking the First Step into the Next 100 Years
- A Roadmap for Becoming a GGSC, Presented by Top Management -
Becoming a Global Group of
Companies that Contributes to
“Food,” a Fundamental for Humanity
–
Interview with Chairman of the Board Masatoshi Ito
The History of the Ajinomoto Group
II. Taking the First Step into the Next 100 Years
- 1. Becoming a Global Group of Companies that Contributes
to “Food,” a Fundamental for Humanity -
13
wasn t being read. However, nobody is going to read a piece
of paper handed to them about events that happened several
months before. For this reason, I urged that we consider why
no one was reading it and what we could do to make employees
take an interest. As a result, we started to post the CEO
Headline in both Japanese and English on the Group s intranet.
We wanted to provide an understanding of the Group s actions
and messages through my activities as President & CEO. As a
result, we started sharing photos and reports around the world
within a week of events. Previously people had no idea about
what the President & CEO did, and they probably thought I just
sat in a chair and checked things. So, I went, I m working and
communicating like this!
There was one more internal communications initiative we
carried out at that time. We made it so that a summary of the
main points discussed in weekly Executive Committee meetings
was shared around the world immediately after the meetings.
Up to that point, explanations had been made orally and only
to the general managers. This was to prevent information
leaks. However, when looking into this, we found there were
inconsistencies in the amount of information that was being
passed down to managers and their subordinates. While some
general managers would pass on 90% of the content, others
would only communicate half. This was not a case of them not
wanting to talk – it is just that they were not able to. There were
some aspects, such as nancial matters, that they did not fully
understand. As a result, the information being passed down
varied and there were many people who did not understand
what the Company was thinking. By putting information into
a document which was only viewable by managers, we greatly
improved this situation.
While these are fairly small details, in this way we
improved the sharing of information and drove reforms
forward.
Q: How did you communicate externally?
Ito:
I took an approach in which we did not disclose
information but shared it. When holding press conferences,
we prepared Q&A materials for anticipated questions. This
included answers to be used when asked about certain things, so
a big drop in price per unit had started to drag prots down.
Furthermore, as a precursor to this, the inability to meet supply
volumes meant that a majority of our capital investment had
been spent on reinforcing animal nutrition, which pushed the
business into the red. The pharmaceuticals business was also
struggling due to its lack of scale. Although it managed to
record operating prots of over 10 billion yen for a time, drug
development generally involves producing one successful new
drug every 10 or 15 years, which puts too much burden on a
small business. Both businesses were suffering due to changes
in structure and environment.
In addition to this, we also faced factors such as the
2008 global nancial crisis (the Lehman Shock) and foreign
exchange losses. As a result, although our share price had been
steady at around 1,500 yen for over 10 years, it had dropped to
about 670 yen when I was appointed.
Q: It must have been a very dicult situation.
Ito:
Before becoming President & CEO, I had started attending
investor relations (IR) events as a Corporate Senior Vice
President, and the rough tone in which we were questioned by
analysts made me realize that we were in an urgent situation.
We were also receiving harsh words from former employees
who held shares, and employees were also starting to question
more seriously whether the Company was all right. The
labor union also pointed out that in this sort of situation, top
management tended to retreat from the front lines.
Therefore, rather than thinking about future aspirations
and the next 100 years, we rst had to do something about the
situation at hand.
Q: What did you do rst?
Ito:
First of all, I thought it was important that we explain
the situation to all stakeholders, both inside and outside the
company, and show them the direction we planned to take. To
do this, it was essential that our understanding of the company s
situation was accurate and that we verify our planned direction,
so I hired a consulting company for the rst time. Up to
that point, there had been very little inclination within the
Ajinomoto
Group to use external resources, and some thought
that it would be meaningless. However, I did not intend to
leave these consultants think or follow their directions blindly.
Rather, I thought it would be worthwhile to receive verication
that our analysis and direction were appropriate, so I actively
met with analysts and management advisors and listened to
their opinions.
Q: What did you do to explain the situation and direction
within the Company?
Ito:
I repeatedly told the Public Communications Dept, Your
work is not just to communicate externally. Our employees
are the most important communications targets. At that point,
employees were not considered targets of communications
activities. While there had been a monthly internal magazine,
its publication had shrunk to four times per year because it
A snapshot in “CEO Headline”
The History of the Ajinomoto Group
II. Taking the First Step into the Next 100 Years
- 1. Becoming a Global Group of Companies that Contributes
to “Food,” a Fundamental for Humanity -
14
it was ne to discuss the content. However, the people in charge
of IR told me not to talk beyond this content or give away too
much. This makes sense when there is not enough time, but
it seemed strange to take an approach of not saying anything
unless asked. So, I decided to talk openly about matters that we
were able to share.
The reasoning behind this approach was that we were in a
crisis situation when I was appointed, and that I had listened to
the opinions of analysts and shareholders and agreed with them.
It is natural that people who have invested in us, are considering
investing in us, or are giving advice to investors want to know
about the state of our business. It would be strange to only give
them the minimum of information. Rather, bad news had better
shared.
In fact, after I became President & CEO, there was
flooding in Thailand in 2011. Thailand was our main overseas
business location, so this was a big negative for the Ajinomoto
Group. We had about 20 plants in the country. People were
naturally worried about the impact of the flooding. To address
this, we provided
investors with
information about
the status of our
plants. Out of the
20 plants, 18 were
still operating and
two had stopped.
We received great
praise for sharing
this information
before we were
asked to.
Financial results briefing for analysts and institutional
investors
Q: You have placed great importance on communicating
openly and fairly.
Ito:
Anybody can give an answer when asked a question. I
remember having a conversation with a person from another
country about what is important for building relationships based
on trust. It is information. How transparent is the exchange of
information? For example, in my house I have a two-month
schedule of meals on our refrigerator, which includes whether
I am planning to go out to eat on a certain day. Naturally my
meal schedule is not secret company information. However,
while I write clearly who I will be going with, I try to make the
location as vague as possible, so that later on, my wife won t be
able to pester me to take her there too.
Q: And you advanced reforms based on these relationships
of trust?
Ito:
That s right. Sharing our management direction also meant
we had to have a clear idea of the roles and responsibilities
of management. Up to that point, Ajinomoto Co., Inc. had
formulated its management plan by combining the plans of
each of virtual company. This meant that the responsibilities of
the top management team were vague, and I felt that decision-
making was unclear. I thought that it would better if top
management created a strategy framework for the entire Group
and then each business division independently formulated their
own plans based on this framework. It is important that top
management leads the way in creating management direction
with executive team members, and this is the job of the
President & CEO.
(Billions of yen)
201720162015201420132012201120102009200820072006200520042003200220012000 2018
(FY)
100
80
60
40
20
0
-10
Japanese food products International food products Bioscience & fine chemical business (including animal nutrition) Pharmaceuticals Other business
Figure II-1: Overall business results (FY2000-2018)
Note 1: During this period, there were reclassification of segments, and changes made to the content of segments, accounting systems, and other items, so these figures are provided to give a general idea of
overall business results.
Note 2: Up to FY2015, figures shown are for operating profit and from FY2016 onward they are for business profit.
The History of the Ajinomoto Group
II. Taking the First Step into the Next 100 Years
- 1. Becoming a Global Group of Companies that Contributes
to “Food,” a Fundamental for Humanity -
15
Q: Before I ask about individual measures, I would like to
take a bird’s eye view of your time as President & CEO.
You realized a V-shaped recovery following losses and
then smoothly grew sales and prots to high levels by
FY2015. However, in FY2013, both sales and prots
temporarily fell.
Ito:
I think things went roughly according to plan in terms
of both the numbers and the actual content of our businesses.
The slump in FY2013 was a lull made necessary by structural
reforms, and we had prepared for it. Our plan to reduce the ratio
of bulk business such as animal nutrition meant that for that
year, the business actually made zero prot. It probably turned
out that way because we said it would be ne if it happened.
The sale of Calpis Co., Ltd. and the fall in the pharmaceuticals
business had also been anticipated. Instead, we focused on
expansion of our consumer business overseas, putting effort
into Japanese food products, Ajinomoto Frozen Foods Co., Inc.
and Ajinomoto General Foods, Inc., and these measures led to
growth later on.
Specic measures of FIT & GROW with Specialty
– Focus on consumer business, business headquarters
system, and spinning o companies
Q: Following the key principles of “growth driver
development,” “business structure reinforcement,” and
“foundation building” in the FY2011 - 2013 Medium-
Term Management Plan, for the FY2014 - 2016 Medium-
Term Management Plan you hit upon “FIT & GROW
with Specialty.” You advanced structural reform (FIT)
and growth driver development (GROW) with a focus
on specialty.
Ito:
We decided that our macro-direction would be to shift
away from a weighting towards bulk business. Although
the BtoB market is big, there were a number of competitors
emerging from China as well as from South Korea. So, it would
be dicult to work freely and I felt it might be a problem to
have this area as our core business. Although this is also true of
other businesses, if a product does not have any distinguishing
characteristics, competition will come down to a price war.
In our bulk business in particular, we were creating physical
substances such as lysine which are dicult to differentiate as it
does not matter if they taste good or bad. Therefore, our major
goal was to remove the weighting towards bulk business and
achieve a business structure that we could control. We judged
that price competition was not a good t for us.
Based on this, we set our key principles in FIT as structural
reform centered on a shift from commodities to specialty and
enhance capital eciency to boost shareholder value and
return on equity (ROE), and our key principles in GROW as
R&D leadership and global growth. We also started to
transform the culture of the Group by practicing governance
that accounted for globalization, developing and diversifying
human resources, using external capabilities, and expanding
into adjacent domains.
Q: The year after you became President & CEO, the
Company transitioned from a virtual company system
to a business headquarters system. Was this also to
strengthen internal communications?
Ito:
After we started using a virtual company system, the
barriers between companies grew to the point where you could
say that each company was not aware of what the others were
doing. In such a situation, the disadvantages outweigh the
benets. A virtual company system might work if one business
bears little relation to the others, such as TVs and refrigerators,
but it was not appropriate for the Ajinomoto Group, which uses
amino acids in every business. It got to the point where the
achievement of research into amino acids technology could
not be applied in other areas such as food products. In cases
where we need to focus on the swiftness and agility of decision
1. Growth driver
development
Global growth
R&D leadership
Use of external resources
Global human resource development
Global governance
2. Business structure
reinforcement
From VOLUME to VALUE
From PROFIT (OP)
to CASH (FCF)
Enhance capital efficiency to
boost shareholder value
3. Foundation building
Build a foundation for a global company
Figure II-2: Key principles of the FY2011 - 2013
Medium-Term Management Plan
1. Growth driver
advancement
Corporate governance: “Governing HQ” and “Delegated front”
Solid and large class of global human resources
Open New Sky: Daily efforts to utilize external capabilities
and expand into adjacent domains
2. Further reinforcement
of business structure
3. Evolution of the management foundation
(management innovation)
Pursue specialty
FITGROW
Specialty
Become a food company group with specialties driven
by leading-edge bioscience and fine chemical technologies
Figure II-3: Key principles of the FY2014 - 2016
Medium-Term Management Plan
The History of the Ajinomoto Group
II. Taking the First Step into the Next 100 Years
- 1. Becoming a Global Group of Companies that Contributes
to “Food,” a Fundamental for Humanity -
16
making, it is better to establish a scale of operations and make
it into a separate company, like we did with Ajinomoto Frozen
Foods Co., Inc.
Q: It seems like your policy of strengthening collaboration
transformed the Company.
Ito:
That s right. It was the same with R&D structure. At
rst, we had over 10 R&D institutes, so we took a focused
management approach that brought together small research
institutes to make larger ones and specied the areas in which
we were aiming to develop. Up to that point, it seemed that
individual researchers were performing research in various
areas on their own, and it would be bad if they went too far, so
we decided to clarify the scope of research. We worked to bring
them together and collaborate. We created an environment into
which each researcher could bring the different information
they possessed and
utilize it to create
new knowledge
and value. We have
personnel with a
variety of areas
of expertise and
by combining the
expertise of one
researcher with the
different expertise
of another, we often
generate new ideas.
For example,
in frozen foods,
where I worked
from the 1980s into
the 1990s, we had a structure comprising Ajinomoto Co., Inc. s
Frozen Foods Department and the Ajinomoto Frozen Foods Co.,
Inc. companies in each region (Kanto, Chubu, Shikoku, and
Kyushu), and they were mainly focused on production
1
. This
means that under normal operations, there is a divide between
development and manufacturing. However, when it comes to
creating a product, we cannot achieve anything good or quickly
unless the business department personnel, experts in facilities
and machinery, researchers, and others can work together.
Therefore, they would collaborate on a project basis. People
involved in product development often work in this way, but I
wanted us to be able to do it on an organization-wide level, so
after becoming President & CEO I advanced structural reforms.
Q: Furthermore, you spun o the animal nutrition and
pharmaceutical businesses, which were facing issues, as
new companies. Was there any opposition to these moves?
Ito:
Recognition of the state of these businesses was already
shared, so in the case of the pharmaceuticals business, we had
a request to spin off from the departments involved themselves.
This would enable them to combine as a single company. Also,
it would have been dicult to restructure the animal nutrition
business while it was still a part of Ajinomoto Co., Inc. For
example, operating joint ventures when you are not a separate
company is very dicult. For these reasons, we took various
steps to spin off the businesses and enable them to operate more
freely.
Specic measures of FIT & GROW with Specialty
– Promoting external partnerships and realizing
“with Specialty”
Q: I think that the active pursuit of external collaborations,
such as M&A, alliances, and joint research projects,
became a big feature of the Group from your presidency
onward and marks a clear shift of direction.
Ito:
Even within
Ajinomoto
Co., Inc., people involved in
technological elds had already grown beyond developing
everything in-house and it was normal for them to announce
research results externally and work for short periods at other
research institutes. There were even employees who had been
temporarily working at research institutes in Russia.
There have been lots of cases where the creation of new
things has required some kind of stimulus to provide that
moment of inspiration. I think it is better to bring in and mix
information from a variety of sources. We implemented external
collaborations, personnel allocation, and other measures based
on consideration of how we could make this happen.
Looking back, although there was opposition to the
various measures I implemented, this came from people who
did not understand or did not have the right information. That
was ne, because if I could make them understand, then they
would become supporters. With this in mind, the amount of
information you have is very important when advancing your
businesses. In other words, you need to have curiosity and a
broad interest in the world. People who can push ahead with
ambition and a desire to try new things generally nd the
information and knowledge they need comes naturally.
While our collaborations with companies such as Kao
Corporation and Bridgestone Corporation have produced
relatively few specic results, they have proven valuable in
providing experience and realizations to the employees involved
regarding what it means to mutually share and understand
information. While Kao Corporation makes cosmetics and we
sell ingredients, our collaboration leads to action along the lines
if we work together, couldn t we make this substance? Also,
although our joint research and development with Bridgestone
Corporation has come to a halt due to cost issues, we
successfully made rubber for tires from proteins. This means
that we are able to offer an alternative to rubber from trees.
This kind of experience and sensibility towards information
is important for realizing specialty. When creating new
products, creating something that already exists is meaningless.
R&D conversations
1. In October 2000, all divisions were amalgamated to create the current Ajinomoto Frozen Foods
Co., Inc.
The History of the Ajinomoto Group
II. Taking the First Step into the Next 100 Years
- 1. Becoming a Global Group of Companies that Contributes
to “Food,” a Fundamental for Humanity -
17
It is important to be useful in a way no one else can, and how
you differentiate a product is also a core of marketing.
Q: It appears that your experience in marketing was at the
root of promoting specialty.
Ito:
Exactly. You have to repeatedly differentiate. Ultimately,
this is what the Ajinomoto Group Creating Shared Value (ASV)
is. In other words, you should build your business on things
that are useful to people. Society is a gathering of people so
if you can provide something that many people like and think
is convenient, then you will prot. For example, dashi soup
stock is made by buying and preparing dried kelp and dried
bonito flakes, but using HON-DASHI
®
, you can prepare it in
one second. If a normal family wanted to make it from scratch,
they would have to grate the bonito themselves and it would
be expensive. If they use HON-DASHI
®
, they can save a billion
seconds over a year. It is quicker, easier, and more convenient
and there is no waste. This represents specialty to the people
who use HON-DASHI
®
. Greater benet is important.
Q: I feel like the “expand into adjacent domains” part of
the plan also had a marketing perspective.
Ito:
The origin of expand into adjacent domains was the
feeling that we could do something to create more business
opportunities, but we did not. For example, why did Cook Do
®
have to be just a seasoning for Chinese dishes while the
markets for Japanese and Western dishes are so close? During
development, people had been constantly told that Cook Do
®
is a seasoning brand for Chinese dishes so they thought that it
could only be used for Chinese dishes. However, we launched
Cook Do
®
Kyo-no Ohzara
®
based on the concept that it would
be good to be able to prepare Japanese dishes in the same
simple way. This is a good example of expansion into an
adjacent domain. The people responsible for Cook Do
®
had
always treated it as a seasoning brand for Chinese dishes so
they were against anything different. The people above them
had just accepted this, so nothing had changed for 30 years.
This was also true for Ajinomoto KK Consommé cubes. Why do
these cubes only have to be used for consommé? Consumers
were already using them for different purposes, such as Western
hotpots or Japanese Nabe dishes. This led to the development
of Nabe Cube
®
.
In this way, we were limiting ourselves. We could only
think that something had to be a certain way just because
the person in charge said so. Doesn t it make work boring?
However, there is also an individual element to this. Out of 10
people, only two or three have the creativity that means they
nd just sticking to the task they have been given boring and
start to consider things like new applications. These kinds of
people possess a wider range of information.
Q: I understood that specialty is not just about new
technology, and you must have seen R&D as one of the
core elements.
Ito:
R&D was an important part of the measures we
implemented to create specialty, and this included combining
the scattered research sites that I mentioned previously. The
Ajinomoto
Group has a focus on R&D that is unusually strong
within the foods industry, and this can be seen in the number
of researchers we have and the globalization of our research
structure. However, you need to do unusual things if you want
to differentiate.
Even so, this does not mean that research divisions are
untouchable or are overly exalted within the food products
business. Research and development have to t the market
and our customers, so we cannot ignore marketing, sales,
and production. On the other hand, AminoScience involves
a process from research through to the creation of a physical
substance, so it is a little bit different in nature. Although these
are separate elds, we transfer personnel between them to
enable them to experience a different area of expertise and to
create opportunities to expand their interests and horizons.
Q: I’ve heard that out of all the Presidents in the
Company’s history, you are notable for how much you
have interacted with researchers.
Ito:
While there were times where I used conversations with
young researchers to communicate our approach to R&D in
terms of overall strategy, the main reason I spoke to them was
because I wanted to hear about the most recent developments.
I participated in periodical R&D reporting meetings, but just
receiving reports on things that have already been completed,
was not very exciting. I really wanted to hear about what was
happening at an earlier stage. What really left an impression
on me is that although these researchers are young, many of
them did not hesitate to explain things to me that I could not
understand. It seems like we have an organization that gathers
people who think the technical terms are understandable for
everyone. That was why I also did not hesitate to ask them,
Besides the results, what value will be created by this?
Q: Do you think that a fair amount progress has been made
with specialty in R&D?
Ito:
In regard to seasonings, I feel we have achieved about half of
what we need to do. There is an extremely wide range of structural
Cook Do
®
Kyo-no Ohzara
®
Nabe Cube
®
Tori-dashi Uma-shio
The History of the Ajinomoto Group
II. Taking the First Step into the Next 100 Years
- 1. Becoming a Global Group of Companies that Contributes
to “Food,” a Fundamental for Humanity -
18
elements that can create deliciousness. For about half of these, our
research has enabled us to use them to create deliciousness but
there are still more of these elements to explore. We are continuing
to deepen our research efforts in this area. While we have been
fairly successful in pursuing the physical elements that determine
deliciousness, such as texture, taste, and flavor, there is still a lot
we do not know. For example, sometimes adding a tiny bit of
something bitter makes a meal delicious. Alone, it is not very tasty
but as part of a mix it is delicious. The attempt to work out why
this should be is tough but very interesting.
In regard to the use of amino acids in the pharmaceutical
peripherals eld, we have made reasonable progress and are
developing products that contribute to health and well-being
through the use of peptides and proteins. In the past, we used
protein production technologies to target digestive organs such
as the stomach, but we are now using them for development in
different elds.
I think that in foods and pharmaceutical peripherals, we
are successfully leading the way.
ASV comes from the founding of the Group
Q: In the past 10 years, I think the formulation of ASV
and the internal promotion of an approach in which
the Ajinomoto Group works to continue being useful
to society through its business activities marks a big
change. What are your thoughts on this?
Ito:
Earlier I said that ASV was about repeatedly building a
business by providing products that are benecial to people
and different from anything else, and this is what we have been
doing since our founding. During our 100th anniversary, when
we reconsidered what it is that makes Ajinomoto Co., Inc.
unique, we constantly came back to Dr. Kikunae Ikeda, who
discovered umami. Although Dr. Ikeda had eaten a lot of meat
while studying in Germany, he actually had a small build. Most
Germans were a lot bigger than him so he would have lost in a
ght. This made him realize that he needed to improve people s
builds and nutrition. However, it was during the Meiji period in
Japan, so people did not eat that much meat. They had a very
simple diet and Japanese food was not very delicious. So he
looked to nd a way to improve nutrition and health of Japanese
people by making their simple diet more delicious and when he
researched umami in boiled tofu, he discovered glutamic acid.
Q: So the Company has always tried to create social value
since its founding?
Ito:
Yes. If health can be achieved through delicious foods, it
benets the customer, and as a result, we can obtain revenue.
This concept is identical to CSV (Creating Shared Value).
Economic value is tied to the creation of social value. In that
sense, we have always been doing the same thing.
The typical example in Japan would be packaged foods.
You could make sauce, ketchup and mayonnaise by yourselves,
and they started to be manufactured in the Meiji period. In
the olden days, everyone made soy sauce and miso paste by
themselves too.
In Europe, it s consommé. Why were bouillon cubes
developed? It is because during the industrial revolution many
factories were built, and women also needed to work to ll
labor shortages. This meant that wives had less time to prepare
food. It takes about three hours to boil your own bouillon
which was just not possible. People needed something to be
done about this situation, which led to the development of the
bouillon cube. Three hours of work could be achieved in three
minutes using just a cube. This kind of innovation has always
been there.
Looking at Ajinomoto Co., Inc. products, we have
HON-DASHI
®
, which provides a
dashi
broth made of dried
bonito flakes and kelp, and Pure Select
®
Mayonnaise, which
saves you having to mix oil, eggs, and vinegar. Also, if a
product is the same as others, then it ends up needing to be
cheaper, so we always try to enhance a product s deliciousness.
Q: What was the reason for the establishment of ASV
instead of CSV?
Ito:
We replaced C which represents creating with A
because we had already been doing this continuously since our
founding. Therefore, we applied the Ajinomoto Group Creating
Shared Value (ASV). Our thinking behind this was that ASV
represents the foundation of our business activities, and we
try to develop even greater nutrition and health from this. We
are actually tackling issues such as overnutrition in developed
People
Help resolve
global issues
Global sustainability
Food resources
Healthy living
Contribute to a
healthy society
in every region worldwide
with delicious nutrition
The Ajinomoto Group is creating future lifestyles
by combining the tireless efforts of each individual
Creation of
economic
value
Achieving
social value is
creating
economic value
(profit)
Aspirations
at the time
of founding
(1909)
Kikunae Ikeda
Saburosuke Suzuki II
“Eat Well, Live Well.”
Sustainability of people,
living things and the Earth
Living with the Earth,
even a century
from now
Living creatures
The Earth
Aspiration
(passion and ambition)
Vision
(foresight and ability to identify issues)
Information
(diverse information)
Perspiration
(ability to see things through)
Connection
(links to people inside and outside the Group)
Figure II-4: ASV (The Ajinomoto Group Creating Shared Value)
The History of the Ajinomoto Group
II. Taking the First Step into the Next 100 Years
- 1. Becoming a Global Group of Companies that Contributes
to “Food,” a Fundamental for Humanity -
19
countries and undernutrition in developing countries. However,
no matter what we do, we tend to focus on health and nutrition.
ASV is what we do, and includes the standard products that
people are eating every day, so it is important that we tirelessly
strive to make our products better.
Q: Doesn’t this also connect to “Eat Well, Live Well.” in
the Ajinomoto Group Philosophy?
Ito:
And following that, the planet also has to be well.
Producing 500,000 tons of AJI-NO-MOTO
®
a year (FY2010)
from kelp would result in the world s kelp resources
disappearing in a month. We produce it using a wide variety of
flora and fauna and constantly striving to procure sustainable
ingredients is a key part of our work. We have to develop in a
way that maintains natural capital and conserves biodiversity.
The importance of food
Q: What is your view of the Ajinomoto Group?
Ito:
We are a group that can contribute in a eld which is
essential for humanity. Food is truly one of the most important
things. If you do not eat, you will die. By eating food, humans
rebuild cells that gradually break down. It is said these cells
replace themselves every three months. I would like both our
employees and consumers to be aware of this. If they are not,
then they will think we just eat because we are hungry. Think
like that and you will end up just eating cake and drinking
alcohol. This is the foundation of my personal philosophy. In
fact, the last thing I wrote in my My Personal History series
(published in The Nikkei in March 2019) was You are what
you eat
2
.
Q: Doesn’t this mean that if you just take nutritional
supplements you will be ne?
Ito:
Not at all. For humans, when it comes to food, the most
important thing is communication. Only humans share food.
Even ape species do not share their food, even when they eat in
groups. That is why we share at events like weddings. Even if
we eat different things, we still eat together in the same space.
Tables are only one or two meters wide so that people can see
each other s faces and communicate while they eat. If they were
any wider, we would not be able to talk. Human eyeballs have
white parts so that we can express ourselves by moving our
eyes, while in ape eyes, these parts are black. This means we
can eat and talk together while expressing ourselves through
our eyes. While this does not necessarily mean eating alone is
bad, I don t think it would be good to go a whole month eating
only by yourself. You would lose a part of your humanity. No
matter how much digitalization progresses, if a guest from
overseas visits you hold a dinner party and bring out good wine.
Nobody would question why they have to eat together. Feeding
people and eating together is at the very root of relationships. It
connects people. Not just people, countries too.
Q: It is the foundation for human activity.
Ito:
To go further, it also connects us to our heritage. Also, if
you think about how the Group is contributing through our
products, we are creating new lifestyles, culture, and customs
that no longer assign xed gender roles. One night you can buy
something to eat, another night you can cook using Nabe Cube
®
.
The time it takes to prepare food has shrunk by an incredible
amount since the Meiji period. However, it does not just stop
there it is also expanding the scope of women s activities
without a drop in the quality of meals. I think it would be good
if everyone could experience just once how busy life was for
a wife in the Meiji period. Try cooking in an old-fashioned
kitchen which starts with kindling a re.
Connect to our heritage, connect people, but at the same
time create something new. Although things continue to change,
there are also aspects that should remain unchanged. That s
how humans are made. Both our bodies and our culture are
continuously being rebuilt. As a company, the Ajinomoto Group
Environmental commercial (Ajinomoto Co., Inc. website)
2. An expression often used in Europe and North America. It originates from Jean Anthelme
Brillat-Savarin, a French lawyer and politician who gained fame as a gourmand, who wrote in
Physiologie du Goût (Physiology of Taste, published in 1825), “Dis-moi ce que tu manges, je te
dirai ce que tu es” (Tell me what you eat: I will tell you what you are).
The History of the Ajinomoto Group
II. Taking the First Step into the Next 100 Years
- 1. Becoming a Global Group of Companies that Contributes
to “Food,” a Fundamental for Humanity -
20
is the same. While our employees gradually change over time,
the brand itself remains and becomes stronger. Like university
brands.
The next 100 years
Q: Please tell us your thoughts about the future of the
Ajinomoto Group.
Ito:
As I said before, at the time of our 100th anniversary
I wanted to think about the next 100 years, but truthfully,
it was not the time for that. While we also have specialty
chemicals and other businesses, I want to focus about 70% of
our growth on foods and pharmaceutical peripherals. We are
a food company after all. They say that a balanced diet leads
to a healthy body, so foods and pharmaceuticals are the same
in principle and both are important. If possible, I want us to
be a unique group of companies that works on a foundation of
science to deliver amino acids technologies not found anywhere
else on earth through foods. How far we can go with this
depends on our efforts going forward.
Q: During your time as President & CEO, Ajinomoto
Co., Inc. set a course towards becoming a global foods
company with a focus on specialty. Is there anything in
particular you feel about this?
Ito:
I feel that we are moving a little too slowly to become
a GGSC (Genuine Global Specialty Company). The world
is steadily changing and if we carry on at our current pace,
I don t think we can achieve our goal in the next 100 years.
We need more speed. We need to look further into the future,
not just in terms of external partnerships and M&A but also
in internal research and development and other areas. Our
competitors are gradually expanding and growing beyond
being just food companies. Big tech platforms and the like
also have overwhelming capabilities in terms of information,
which I have repeatedly told is important. We need to speed up
in regard to technological change, too. In my 2014 New Year s
message Speeding Up Towards Becoming a GGSC, I hoped
for a sense of speed. To achieve our goal, I think we need
intuition backed by information and experience. We also need
imagination to work out what to do with the information we
gain.
2
The History of the Ajinomoto Group
II. Taking the First Step into the Next 100 Years
- 2. Becoming a Solution-Providing Group of Companies for Food and Health Issues
by Adapting to Social Change Driven by Digital Transformation and the Adoption of the SDGs -
21
President & CEO Takaaki Nishii, who was appointed in June 2015, bases his judgements on the clear criterium of “be
a global top 10 class food group of companies,” and achieving this has been set as a management goal for FY2020.
Inheriting and evolving the concept of shifting to specialty devised by Chairman of the Board Masatoshi Ito, he aims to
make the Ajinomoto Group into a GGSC (Genuine Global Specialty Company) through a policy of accelerating response
to changes in the business environment, such as digital transformation. He invited Keio University Professor Masahiro
Okada, who has an intimate knowledge of business strategy based on CSV (Creating Shared Value), for a dialogue
exploring the Ajinomoto Group’s core competencies, its achievements over the last 10 years and future growth strategy,
and the Group’s challenges and aspirations based on a medium-term management plans centered on evolving ASV.
Born in Nara Prefecture in 1959. Joined Ajinomoto Co., Inc. in 1982.
Served in positions including General Manager of the Consumer Foods
Department at Ajinomoto Frozen Foods Co., Inc., General Manager of
the Human Resources Department at Ajinomoto Co., Inc., and President
of AJINOMOTO DO BRASIL INDÚSTRIA E COMÉRCIO DE
ALIMENTOS LTDA. while also a member of the Board & Corporate
Vice President of Ajinomoto Co., Inc. Appointed as Representative
Director, President & Chief Executive Ocer of Ajinomoto Co., Inc. in
June 2015 (current position).
Born in Hokkaido in 1962. Joined Honda Motor Co., Ltd. in 1985.
Completed a master’s course at the Graduate School of Business
Administration, Keio University in 1993. After working at
Arthur D. Little Japan, Inc., became a fellow of MUSE Associates, LLC.
in the U.S. Gained a Ph.D from the Ohio State University in 1999 and
became a lecturer at the Graduate School of Business Administration,
Keio University. Promoted to assistant professor, associate professor,
and then to his current position of Professor.
Professor
Masahiro Okada
President & CEO
Takaaki Nishii
What is the Ajinomoto Group’s competitive edge
(core competencies)?
Professor Okada (“Okada” from here on):
I specialize in
management strategy and I would like to ask about a variety
of topics, including your initiatives over the past 10 years,
outlook for the future, as well as ASV. First of all, regarding
the Ajinomoto Group s competitive edge, the media mentions
aspects like technologies for leading-edge bioscience and
deliciousness, and marketing that is adapted to each region.
What is your impression?
President & CEO Nishii (“Nishii” from here on):
Our
II. Taking the First Step into the Next 100 Years
- A Roadmap for Becoming a GGSC, Presented by Top Management -
Masahiro Okada
Becoming a Solution-Providing Group of Companies for
Food and Health Issues by Adapting to Social Change Driven
by Digital Transformation and the Adoption of the SDGs
–
A Dialogue Between President & CEO Takaaki Nishii and Keio University Professor Masahiro Okada
Takaaki Nishii
The History of the Ajinomoto Group
II. Taking the First Step into the Next 100 Years
- 2. Becoming a Solution-Providing Group of Companies for Food and Health Issues
by Adapting to Social Change Driven by Digital Transformation and the Adoption of the SDGs -
22
Nishii:
That s right. I also think we are a very unique company.
We constantly review the elds in which we apply our
business portfolio and strategy in accordance with changes
in the external environment while keeping a central focus on
how these connect to our core competencies. While our main
focuses are consumer foods, amino acids for pharmaceuticals,
electronic materials, and animal nutrition, we will alter these
focuses in accordance with changes in consumer and customer
needs depending on the times. We think that being able to adapt
to various business areas through our two core competencies is
important for our sustainable growth.
Reforming Business with a Focus on the Shift to
Specialty
Okada:
Based on these core competencies and unique
attributes of the Group that we just talked about, I would like
to ask about the management direction Chairman of the Board
Ito and you took over the last 10 years. Out of the things that
Chairman of the Board Ito and yourself tried to do, how much
did you manage to achieve and what still needs to be done in
the next 10 years?
Nishii:
Well, rst of all, I think it will be easier to understand
if I talk about
-dvance 10, the medium- to long-term plan
leading up to the last 10 years. The theme of the plan was
the 21st century is an amino acid century, and we aimed
to build our business portfolio along two axes, one of which
involved being an amino-acid driven company, including
in regard to pharmaceuticals, and the other of which involved
the globalization of our food products business. We positioned
Japan food products as a stable revenue-generating business
and set overseas markets as an area for growth investment.
You could say that Chairman of the Board Ito s approach of
becoming a Genuine Global Specialty Company (GGSC) and
a global top 10 food company put a sharper focus on the food
products and advanced pharmaceutical peripherals businesses
targeted in -dvance 10. In other words, in order to respond
to the expectations of stakeholders, he used business scale and
eciency, growth areas, and specialty in terms of added value
as yardsticks for making judgements and shifted focus from the
former core businesses of drug creation and animal nutrition to
growth in overseas food products.
When Chairman of the Board Ito was appointed
President & CEO, prots were being generated by the Japan
food products, Japan pharmaceuticals, and animal nutrition
businesses, and healthcare in the advanced pharmaceutical
peripherals eld was barely making a contribution. Now,
prots from animal nutrition have shrunk signicantly and
the pharmaceuticals business has been reorganized as an
leading-edge bioscience and ne chemical technologies
include technologies for the development and application
of materials based on research on the functions of amino
acids. We apply these over a broad range of business areas,
such as foods, healthcare, and life support. For example, we
discovered that glutamic acid, the substance that prompted the
founding of the Ajinomoto Group, was an umami ingredient,
so we subsequently developed and launched the umami
seasoning AJI-NO-MOTO
®
. We have also developed products
with added nutritional functions using BCAA
1
that effectively
help athletes recover from fatigue. Furthermore, amino acids
also adjust the body s functions. For example, L-DOPA is
an amino acid used in pharmaceuticals and if a person does
not have enough of it, their neurotransmission functions
worsens. Glycine, which is the main component of Glyna
®
,
helps people to sleep more deeply (see footnotes on p.29).
Also, it is not generally known, but we use technology derived
from research into the reactive properties of amino acids and
their applications to develop interlayer insulating materials
for semiconductor packages, which are contributing to the
evolution of IoT, so specialty chemicals is also one of our core
businesses.
Another competitive edge is marketing capabilities that
enable us to provide tastes which are thoroughly in line with
local sensibilities. In regard to consumer foods, we offer
product development and sales channels that are adapted to
local food cultures and in our BtoB ingredients business, we are
able to work together with customers to solve their problems.
These two areas are our core competencies and have been
at the heart of the Group since our founding.
Okada:
The other day I visited the Client Innovation Center
(CIC, see p.51) in Kawasaki and saw your full lineup of amino
acid bioscience and ne chemical technologies. General
consumers like myself have an image of the Ajinomoto
Group as a food company, particularly as the producer of
AJI-NO-MOTO
®
, but visiting the CIC completely changed my
perception. I came to understand that the Ajinomoto Group is
using amino acids to expand in BtoB and BtoC markets based
on a foundation of various technologies, and I came away with
the strong impression that the Group is not just a food company.
1. Branched Chain Amino Acids, which are the three amino acids valine, leucine and isoleucine.
High concentrations of these amino acids are found in muscle tissue and they are known to
build protein mass in bodies. They are used as an energy source during exercise.
The Client Innovation Center
The History of the Ajinomoto Group
II. Taking the First Step into the Next 100 Years
- 2. Becoming a Solution-Providing Group of Companies for Food and Health Issues
by Adapting to Social Change Driven by Digital Transformation and the Adoption of the SDGs -
23
2. Currently the AminoScience Business contains two business areas: healthcare and life
support. Healthcare comprises the six businesses of amino acids for pharmaceuticals and
foods, bio-pharma services, sports nutrition, direct marketing, AminoIndex
®
, and personal
care ingredients, and life support comprises the animal nutrition and electronic materials
businesses.
equity-method aliate. The business prot of the AminoScience
business
2
, which now accounts for 25% of overall prot,
derives from new businesses we have been developing through
the pursuit of specialty over the last 10 years. These businesses
are mainly amino acids for pharmaceuticals; the custom
development pharmaceutical peripherals business, which is
a Contract Development and Manufacturing Organization
(CDMO); and the specialty chemicals business, which includes
electronic materials. These are the areas that have changed the
most over the last 10 years. In the food products business, we
sold our beverages business in Japan and stabilized earnings in
our domestic operations through the seasonings and packaged
food products, frozen foods, and coffee businesses. We have
vastly grown our overseas food products business, including in
the emerging countries we have dened as the Five Stars and
the Rising Stars, and it is now our biggest business. As a result,
although we were in a dicult situation in 2009, recording
a consolidated operating prot of just 64 billion yen and
almost no non-consolidated prot, current business prot is 97
billion yen and even if we account for a move to International
Financial Reporting Standards, we have managed to increase
annual business prot by 20 billion yen.
It has been 10 years in which we have improved business
results through the concentration of overseas food products
and businesses leveraging amino acid technologies in growth
markets, while at the same time advancing structural reforms.
Aiming to become top 10 through increased eciency
and stable growth instead of rapid growth driven by
the Five Stars.
Okada:
Could you explain a little more about initiatives in the
Five Stars and the Rising Stars in the overseas food products
business?
Nishii:
In our FY2011 - 2013 Medium-Term Management
Plan, in addition to setting the vision of becoming a GGSC
from 2020 onward and aiming to become a global top 10 food
company, we targeted four criteria – a consolidated operating
prot of around 130 to 150 billion yen, earnings per share (EPS)
growth ratio of 10%, return on equity (ROE) of over 10%, and
a business prot margin of 10%. Overseas food products were
positioned as a source of growth, particularly for realizing an
EPS growth ratio of over 10%. Building on this, in the FY2014
- 2016 Medium-Term Management Plan onward, we positioned
the Five Stars (see p. 39) as the leading countries in these
efforts. We aimed to double or triple business prot in the Five
Stars by FY2020 compared to the base year of FY2013. The
Rising Stars are key markets we are cultivating from a medium-
to long-term perspective.
Okada:
Is North America one of the Rising Stars?
Nishii:
When formulating the FY2014 - 2016 Medium-Term
Management Plan, sales in our North American frozen food
business were just shy of 10 billion yen and it was still taking
baby steps. We started the business in 2000 by acquiring a small
local plant. The change in approach and scales came in April
2015, when we acquired and consolidated Windsor Quality
Holdings, LP, launching a full-scale effort to make it into a
global business.
Okada:
You have returned to the head oce after serving as
President of a Brazilian subsidiary. How was Brazil positioned
when you were there and over the last 10 years?
Nishii:
AJINOMOTO DO BRASIL INDÚSTRIA E
COMÉRCIO DE ALIMENTOS LTDA. was positioned as
one of the Five Stars and its mission included strengthening
our consumer food business in Latin American markets by
further strengthening collaboration with AJINOMOTO DEL
PERÚ S.A. I was President of the subsidiary when we were
asked to double our business by 2020 under the FY2014 - 2016
Medium-Term Management Plan.
Okada:
What was the result?
Nishii:
We didn t make it quite far enough in terms of gures.
While we had to realize an average annual growth rate of 15%,
from around 2015, top line growth began to slow, and we
didn t reach the target. However, in terms of prot, we realized
EPS growth of 10%, so it has denitely become an engine for
growth.
Okada:
Will you continue to pursue a position in the global top
10?
Nishii:
In FY2010, the year before we targeted a top 10
position, our operating prot was 69 billion yen. This scal year
we are looking at 97 billion yen, so the distance to our target
of 130-150 billion yen is shrinking. Although changes in the
business environment have shifted our course to put focus on
eciency and stable growth, we will continue to aim to become
a global top 10 class food company and use this as a waypoint
towards our eventual goal.
2015 as a Turning Point
Okada:
In preparation for this dialogue, I had a look at the
share prices of various food companies. Excluding Unilever
N.V. and Nestlé S.A., a lot of food companies like Ajinomoto
Co., Inc. and Danone S.A. previously had share prices of
around 1,000 yen and rose to the 2,700-2,800-yen level around
2015, but have been gradually falling since then. Is the decrease
in growth in the Five Stars you mentioned previously related to
the slow economic growth in Asia? Do you recognize 2015 as a
turning point?
Nishii:
I agree that the fall in food company share prices and
growth in emerging markets marked a turning point. Following
the 2008 global nancial crisis (the Lehman Shock), I think a
lot of nancing flowed into the food industry, which offered
stable growth and strong potential in emerging countries, and
The History of the Ajinomoto Group
II. Taking the First Step into the Next 100 Years
- 2. Becoming a Solution-Providing Group of Companies for Food and Health Issues
by Adapting to Social Change Driven by Digital Transformation and the Adoption of the SDGs -
24
this is linked to the rise in share prices up to 2015. You can
see this by looking at indicators such as price-earnings ratios
at that time, which were extremely high. Sometimes 30 times
as high. One of the factors that started the decline since then
was a greater focus on IoT-related industries as a strong sector
for investment. From around 2010-2011, the spread of 4G
(4th-generation mobile communication system) accelerated
and these industries started to realize extraordinary growth that
was driving the global economy, so investment began to shift.
Another factor was the start of a slowdown in the growth of
companies in the foods eld, including personal care-related
businesses. I think one of the reasons for this was the changes
in lifestyles realized by digitalization and networking. In other
words, the power of mass brands began to erode. Therefore,
2015 was a turning point for a number of different reasons.
Ajinomoto
Co., Inc. was unable to overcome these macro-
changes so growth began to slow in our overseas business, and
our share price declined from the 2,700-2,800 yen level.
Maintaining growth by responding to the two major
trends of digitalization and sustainability
Okada:
Do you think the Rising Stars will be future growth
drivers?
Nishii:
Although it is important to cultivate emerging countries,
there are major trends that are even more pressing. We think the
changes brought by these trends are generating new markets
in advanced countries and in Asia, which has already seen a
certain amount of growth. One of these trends is digitalization
and urbanization. This is particularly striking in the beer
industry, in which craft beers have been gradually eating away
at the big national brands. Before digitalization revolutionized
distribution, these minor brands were not found in supermarkets
so people who wanted to buy the beer would have to search
around. However, e-commerce has enabled people to search for
and order these beers digitally.
Another major trend is that consumers have become
greatly segmented. The representative example is the millennial
generation, whose members tend to be turning towards things
that t with their lifestyles and values focused on sustainability
and naturalness, and approaches that are considerate of the
environment, such as the sharing economy, compared to
previous generations who tend to aspire to beauty and wealth.
These two trends – the growth of small-size markets driven
by digital trends and the diversication of consumer values
such as an emphasis on sustainability – have most noticeably
started occurring in advanced countries, particularly the U.S.
They then spread to major cities in emerging countries very
quickly, such as Bangkok in Thailand and Jakarta in Indonesia.
This is a sort of change that cannot be seen by just looking at
average gures, such as a GDP per person of 3,000 dollars.
Okada:
Did you judge that responding to these trends is a
higher priority than cultivating emerging markets? I often go
to Africa for research, so I might be a little biased, but Sub-
Saharan Africa currently has a population of over one billion
people and it is thought that Africa will be the only market left
that will see population growth beyond 2050. What do you
think about this market?
Nishii:
Looking at the period in which I will be managing the
Group, up to 2025, and beyond that to around 2030, I think that
growth driven by a population increase in Africa overall will
not be enough to register an impact in terms of gures.
Of course our business base in Africa is important and we
will maintain it. We will continue initiatives in collaboration
with our partner company (Promasidor Holdings Limited), in
which we acquired a 33% share through M&A, but in terms
of growth, we think that we need to capture the two major
trends of digitalization and sustainability or we may end up in a
dicult situation. Similarly, India is also a big market and these
two major trends will likely create change in major cities, but
we do not have a solid base in the country and the competition
is strong. So, it has not been selected as part of our strategy to
enter the global top 10.
Okada:
Our entire conversation up to now really demonstrates
your approach of putting a greater focus on specialty rather than
competing through volume.
Nishii:
Yes. We think our success will depend on the rapid
establishment of middle-size businesses that will not become
red oceans
3
. It is the same with BtoB. We shifted our strategy
away from a pursuit of volume in simple materials before 2010
and ceded the space to Chinese competitors. Instead, we will
establish businesses that directly focus on what customers want
and need by leveraging material mixes and minor components
with soft aspects such as functionality and quality.
3. A term used in the best-selling marketing strategy book Blue Ocean Strategy (2004). Existing
markets where competition is fierce are “red oceans” (turned red from the bloody competition),
so it is better to target uncultivated markets known as “blue oceans,” where there is no
competition.
Health
Environment
Increase in
chronic diseases
Health problems
accompanying aging
Greenhouse
gases
Sustainable materials
sourcing
Food loss and waste
Plastic waste
Figure II-5: Sustainability initiatives
(response to SDGs issues)
The History of the Ajinomoto Group
II. Taking the First Step into the Next 100 Years
- 2. Becoming a Solution-Providing Group of Companies for Food and Health Issues
by Adapting to Social Change Driven by Digital Transformation and the Adoption of the SDGs -
25
Okada:
I guess that your main customers will be people who
are highly health-conscious and willing to pay for premium
products.
Nishii:
That s right. Former President & CEO Ito set the course
away from development based on commodities and individual
materials in bulk towards specialty in our overall business and
I inherited the progress he made up to 2015, which included
structural reform. This structural reform included moving drug
creation to a joint venture with Eisai Co., Ltd. and making
it an equity aliate, closing plants that only manufactured
commodities and switching to OEM in animal nutrition, and
selling our French subsidiary in sweeteners. Through a series of
measures, we considerably shrunk our commodities divisions.
Asset light management and digital transformation
– Changing gears in the shift to specialty
Nishii:
However, to reach the global top 10, we have to further
shift to specialty in order to continue growing sustainably. We
have to further increase our level of specialty and overcome
any hurdles in achieving this. We need to do this within
the current medium-term management plan. Therefore, we
must value the core competencies we discussed before while
strengthening our focus on core businesses. We have decided
on six key areas (sauce and seasoning, Asian frozen foods, QN
[Quick Nourishment = nutritional and packaged food products],
integrated food solutions [ingredients for food manufacturing
and food service industries], healthcare, and life support
[electronic materials]) and we are concentrating strategic
investment in these areas. We will also work to shrink and
withdraw from non-core businesses.
As for the reasons why our growth has slowed, I think
we were also slow to respond to competition produced by
digitalization. The level and speed of the competition is
greater than before. We must focus on strategic areas and
polish our strengths. If we focus on too much, we cannot win
a competition that requires speed. We will not be able to take
advantage of digital growth unless we concentrate on elds
where we have a strong brand and can build a competitive
edge by integrating technology and marketing, which are our
core competencies. The next stage is to strengthen our focus,
even in the food products business where we have already been
realizing specialty.
Our main strategic direction has not changed, so we can
still refer to it as FIT & GROW with Specialty, but I should
emphasize that we need to change gears. We will start from
FY2020 with the key phrases of asset light management and
digital transformation.
Okada:
From what you are saying, becoming global top 10 is
not in terms of sales, but in terms of prots.
Nishii:
I would also add eciency. I want to raise return on
invested capital (ROIC), return on assets (ROA), and by doing
this, enhance return on equity (ROE). Unless we do this, we
will not be able to increase corporate value.
4. An e-commerce term for an approach using a lineup of small retail volume products and
increasing the sales of these products by dispersing them widely. As the use of IT has realized
a dramatic leap in sales and management efficiency, it has become possible to market minor
products that are not suited to mass production and sales.
20-22
｜
Phase 1
23-25
｜
Phase 2
Goal in 2030
Social
transformation
Business model
transformation
Ecosystem
transformation
Group-wide
operational
transformation
Dx 4.0
Dx 3.0
Dx 2.0
Dx 1.0
Operational processes
Remove operational waste from the customers’ point of view
and accelerate through digitalization
R&D
Reduce development times by half
SCM
Realize flexible supply chain management and shrink inventories
Marketing
Enhance ROI through complete personalization
for each individual
SCM
Collaborate with other companies over logistics and
production networks
Cultivate new businesses
Expand value provided into diagnoses,
services, etc.
Become an
industry leader
＄
Okada:
Does your next medium-term management plan
include full-scale investment aimed at the long tail
4
?
Nishii:
It does. As we are a food company, we cannot just
launch miscellaneous products like craft beers. It is crucial that
we develop small-size markets into middle-size markets to
make business more robust. It would obviously be impractical
to gather 10 of the 10-billion-yen businesses for establishment
into a 100-billion-yen business headquarters, as we used to do,
but we must nd a way to establish ve 2-billion-yen businesses
and then grow these to 20 times their size. We must attempt
this while using digital marketing to speed the process up. The
most important points and biggest issues towards achieving this
are how we cultivate digital human resources, improve work
eciency and create businesses for growth in parallel.
Okada:
In that case, looking at traditional channels, such as
existing supermarket channels, and online BtoC channels that
offer a direct route to consumers, will the latter become more
important going forward?
Nishii:
It s looking that way. Even just within our business
areas, such as seasonings and packaged food products, it was
revealed that the ratio of food products sales in Japan through
e-commerce last year was already close to 4%. This was 1-2%
just two years ago, but it has already risen to 4%. The ratio of
e-commerce for the Ajinomoto Group for the same period was
0.7%, so this 3% disparity is evidence that we are not capturing
digital growth.
Okada:
To expand e-commerce, will you need to make any
adjustments with your usual retail channels?
Nishii:
There are various ways we could approach this, so I
Figure II-6: Digital transformation measures to create change
The History of the Ajinomoto Group
II. Taking the First Step into the Next 100 Years
- 2. Becoming a Solution-Providing Group of Companies for Food and Health Issues
by Adapting to Social Change Driven by Digital Transformation and the Adoption of the SDGs -
26
don t think we will need to adjust too much. Physical stores
have also had to incorporate digital methods and practice small-
size marketing to survive, so we can ally ourselves with them.
This does not mean committing exclusively to existing mall-
style e-commerce platforms but carrying out digital marketing
which includes convenience stores and the like are doing.
Accumulating “full spec” global talent over 10 years
Okada:
Over the last 10 years, I m sure the
Ajinomoto
Group
has amassed things like capabilities, intangible assets, human
networks, and relationships with companies, so out of these,
what in particular do you think will prove the most useful over
the next 10 years?
Nishii:
The biggest thing has been growing the number of
personnel who are beyond the level of just having experienced
work overseas and can perform globally. The BtoB business
we developed overseas was mostly in one market, so it was
dicult to develop diversity and a multi-layered quality in
our personnel. In contrast to this, in the BtoC business, the
consolidation of a U.S. frozen foods subsidiary in 2015 had a
huge impact. The U.S. business has a different sense of speed
and sharpness compared to our Asian and South American
businesses. The dispatch and return of people to and from
that company and the information we exchange is extremely
important to our future. While only four years have passed,
consumer foods has made a bold strategic move and established
a foothold in advanced countries.
Japan is also an advanced country, but unfortunately
there is no growth and few new challenges have emerged. Our
employees who have tested themselves in the U.S., a huge,
advanced country, and have steadily taken in information and
then returned with new capabilities are providing the Group
with a great stimulus.
Okada:
What about areas other than human resources?
Nishii:
I think these 10 years have produced results in regard to
taking on the challenge of full-scale globalization.
The development of our consumer foods business (flavor
seasonings, etc.), in addition to the BtoB ingredients business,
started in 2003, when the dissolution of our joint venture with
Unilever N.V. gave us a free hand. In addition to the cooling off
period, only 12 years have passed since then. During this time,
consumer foods has grown to record prots of over 44.0 billion
yen, and it has built our biggest portfolio. This protability is
extremely robust due to the addition of a business model for
advanced countries like the U.S. in 2015, and I think it is a
business that will contribute to future growth.
Okada:
Establishing a foothold in an advanced country where
you can amass human resources and information is a big deal.
It enables you to multiply the synergies of the technology and
alliance strategies symbolized by the CIC.
Nishii:
Exactly. The theme of sustainability is similar. Although
it originally started with the adoption of the Kyoto Protocol at
COP 3, strangely enough, it turned to be COP 21 and brought
things to a new level in 2015, when I mentioned was also a
turning point for our business. At a United Nations summit that
same year, the SDGs became central to global sustainability
efforts and forced a change in gear. All companies that want to
compete globally have to openly declare how they will make a
contribution among the 17 goals and 169 targets by next year
and set milestones with the aim of achieving these by 2030.
The Ajinomoto Group declared our agreement with the SDGs
in 2015 and we set specic, quantitative targets in our FY2017
- 2019 Medium-Term Management Plan. Furthermore, we
have linked these to our nancial and non-nancial targets and
are carrying out a trial and error process to achieve them as
CSV=ASV. We will further advance these efforts in our next
medium-term management plan. This will not involve doing
only what is convenient for us. We will reset targets to achieve
outcomes that are visible to people outside the Group and
we will properly disclose our results. While we have paid a
considerable educational cost to do this, it also provides deeper
knowledge from a human resources perspective and we can set
KPIs.
Okada:
What was it that resulted in a high educational cost?
Nishii:
In FY2017, we plucked up our courage to set KPI and
publish them in our Integrated Report and Sustainability Data
Book, but we received stern criticism externally, including that
they were dicult to understand and that they were not actual
targets. This also became a tremendous asset.
We have been accumulating human resources who
understand a vision like creating shared value, sustainability,
ESG, and the reason for the execution of the Ajinomoto Group
Engagement Survey for 34 thousand employees in 18 languages
(see p.80) to spread the spirit of the corporate governance in
the Group. We have also acquired talent that understands the
importance of the clarication and documentation of rules
through the GGP (Global Governance Policy, see p. 79), and
the signicance of clarifying organizational hierarchies and
compensation systems. We have increased the organizational
knowledge we need to act globally to a considerable level.
President & CEO Takaaki Nishii
The History of the Ajinomoto Group
II. Taking the First Step into the Next 100 Years
- 2. Becoming a Solution-Providing Group of Companies for Food and Health Issues
by Adapting to Social Change Driven by Digital Transformation and the Adoption of the SDGs -
27
Deepening the appeal of ASV – How are non-nancial
information and nancial information connected?
Okada:
The incorporation of sustainability into business
strategy is one of my areas of research and it is an extremely
fascinating area. I think that your external communication of
non-nancial information, which includes measurable values
from meat and vegetable intake volumes through to employee
engagement, is very progressive. What are your thoughts about
Assurance of
product safety
Contribution to
health and
nutritional
issues
Rapid response
to consumer
lifestyle changes
Sustainable
materials
sourcing
Reduction of
food loss
and waste
Climate change
adaptation
and mitigation
Conservation
of water
resources
Diverse talent
Strong
corporate
governance
Preparation for
intense global
competition
Non-financial (Social Value)
Materiality Item
Financial (Economic Value)
Umami seasonings
+ approx.
100,000
tons
Flavor seasonings
+ approx.
90,000
tons
Frozen foods
(*3)
+ approx.
30
million packs
Soup
(*4)
+ approx.
100
million servings
Amino acids
+ approx.
80,000
tons
Cost reductions
− approx. 10.0
billion yen
(*5)
Higher specialty composition
through innovation
Higher work efficiency supported by ICT
− approx. 2.5
billion yen
(*5)
Sales
1.35
trillion yen
(+ approx.
260 billion yen)
Business profit
137
billion yen
or more
Business profit
margin
10
%
ROE
10
% or higher
EPS growth rate
Double-digit
annual growth
Overseas consumer
foods sales
growth rate
(local currency basis)
Double-digit
annual growth
The Ajinomoto Group is
harnessing ASV to
become a
global top 10 class
food company
Genuine Global
Specialty Company
Volume of meat and vegetable consumption through the Ajinomoto Group’ s products
(Japan, Five Stars
(*1)
)
Contribution
to a circular
economy
●
Percentage of annual consumption per person
Meat
2015 2020
660
16
6
8
19
1,000
500
0
(10,000 tons)
30
15
0
(%)
Vegetables
2015 2020
(FY)
380
860
550
Contribution to people eating together through the Ajinomoto Group’ s products
(Japan, Five Stars)
2015 2020
50
80
40
0
(Times/household/year)
70
+ 20
times
Spare time created through the Ajinomoto Group’ s products (Japan)
2015 2020
31
40
20
0
(Million hours)
38
+ 7
million hours
Contribution to comfortable lifestyles through amino acid products
(AminoScience)
2015
2005
(%)
100
50
0
33% 33% 35% 33% 37% 38%
50
%
reduction
2015 2016 2017 2018 (FY)
2020
18
30
20
10
0
(Million people)
22
+ 4
million people
Reduction rate of greenhouse gas emission volume per unit produced
(vs. FY2005)
(*2)
Percentage of employees
feeling highly engaged
in their work
80
%
+
Better nutritional balance by eating more protein and vegetables with umami
More eating together
Realizing smart and delicious cooking
Realizing comfortable lifestyles for people
Reducing the Group’s impact on the global environment
Enhancing employees’ engagement
2019
(Target)
2020
(Target)
2030
(Target)
Integrated target
for FY2020
USD
1,500
million
Enhance brand value
(*6)
through creating social/
economic value,
which leads to
further value creation
Corporate
brand value
2015
650
2016
711
2017
778
2018
852
2020
(FY)
(Millions of USD)
1,500
Figure II-7: Non-nancial/nancial integrated targets
Professor Masahiro Okada
Note 1: (*1) Thailand, Brazil, Indonesia, Vietnam, and the Philippines
(*2) Additional targets have been set for renewable energy use ratio, fluorocarbon elimination, reduction of food loss and waste, securing of food resources and protection of natural environment
including ecosystems and biodiversity, conservation of water resources, and waste 3Rs.
(*3) Counting only products for household consumers in Japan
(*4) Counting only cup soup products in Japan
(*5) −Cost reductions of 10 billion yen and 2.5 billion yen are FY2019 targets.
(*6) Evaluated by Interbrand, “Japan’s Best Global Brands”
Note 2: Sales volume increases for umami seasonings, flavor seasonings, frozen foods, soups, and amino acids are comparisons over the period from FY2015 to FY2020. Increases in management indicators
are comparisons over the period from FY2016 to FY2020.
Source: Ajinomoto Group Integrated Report 2019
The History of the Ajinomoto Group
II. Taking the First Step into the Next 100 Years
- 2. Becoming a Solution-Providing Group of Companies for Food and Health Issues
by Adapting to Social Change Driven by Digital Transformation and the Adoption of the SDGs -
28
linking nancial and non-nancial information?
Nishii:
To give an example of this kind of linkage, for meat and
vegetable consumption volumes, we linked the standard amount
used in a meal made using our products to the desirable intake
volume per person per day. Therefore, while it is based on
hypotheticals, by working out a measurable volume, we show
the amount we contribute to each country and region.
Okada:
It is easy to understand how meat and vegetable intake
volumes link to increased sales of seasonings, but it is a little
dicult to understand how the other targets, such as spare time
created, link to your food products in Japan and overseas, or
AminoScience businesses.
Nishii:
We have properly outlined how these are connected in
our Integrated Report and Sustainability Data Book. We have
also included gures, such as so many thousands of people used
this product in regard to comfortable lifestyles and healthcare.
It would be best if we could include context such as an increase
in gures that users are saying are good, but in regard to eating
habits, this is not quite possible.
Okada:
I have been studying various papers, such as this
one by some teaching staff from Harvard University (Robert
E. Eccles and two others) titled Capturing the link between
non-nancial and nancial performance in one space. In the
paper, they write that in integrated reports, it is not enough to
just include nancial and non-nancial information together,
the relationship between them needs to be explained. This is
because it makes it easier to understand and probably more
appealing to investors.
Nishii:
To show the linkage between nancial and non-nancial
information, rst of all, non-nancial value is important. I m
sure you already know this, but when companies such as Nestlé
S.A. and Unilever N.V. began to present their shared values,
certication standards were created alongside these. Currently,
the world s biggest evaluation framework with regard to
nutrition is the Access To Nutrition Index (ATNI) which was
created in line with the Millennium Development Goals (MDGs)
to combat hunger in developing countries. Within this, aspects
like improvements to nutritional balance that can be realized
through umami seasoning or contributed to by fermented
foods are not included. In light of this, the evaluations for us
did not take into account of factors such as growth, sales, and
social contributions made through umami and dashi at all.
Furthermore, Tsuyu (concentrated liquid seasoning for Japanese
noodles) and flavor seasonings contain a lot of salt, so they
received a zero evaluation. If we want to clarify these links
and strengthen our appeal to investors, we have to exercise
our power to have these contributions incorporated into the
evaluation frameworks of public institutions, or we will not be
able to change globally. For this reason, we started an action
like the World Umami Forum.
Okada:
The World Umami Forum is extremely highly regarded
and I read a report by a journalist who attended the event said,
Ajinomoto Co., Inc. mostly stayed in the background and
let chefs and researchers speak about data and observations
with regard to umami from an objective perspective. I
certainly think that unless you do something about evaluation
frameworks, you cannot fundamentally solve this issue.
Nishii:
Furthermore, we need to communicate the social value
created by the Ajinomoto Group to consumers in an easy-to-
understand manner. With respect to our goal to contribute to
health, we have a clear, easy to understand priority of let s
realize proper nutrition and get a well-balanced intake of
meat and vegetables. However, the reply to this might be,
It would be great if we could get a well-balanced intake of
meat and vegetables, but we are too busy, or we are too poor,
so what would you suggest we do? Consumers might be left
thinking that by only continuing ASV efforts, although it might
have a big impact on business results, the Ajinomoto Group
is not contributing to society. This is related to the fact that it
is dicult to understand. In order to resolve this, we need to
provide specic products and services.
Nutritional intake has three key signicances – growth
and energy, recovery from fatigue, and self-control and
conditioning. 110 years ago, Dr. Kikunae Ikeda, who discovered
glutamic acid and created AJI-NO-MOTO
®
, said, Turn
simple but nutritious fare into delicacies. I think that simple
but nutritious fare encompasses the three signicances of
nutritional intake I mentioned. Dr. Kikunae Ikeda thought that
as certain ingredients have certain functions, if they could
be used to make foods delicious then it will enable people to
properly take in nutrition which will help make their bodies
healthier. I want to further raise awareness of these kind of links
to our products, such as how umami seasoning creates meals
that are sucient for growth and energy, how amino acids
like BCAA help sports people recover from fatigue, and how
products like Glyna
®
help realize a restful sleep.
Over the last 10 years, the Ajinomoto Group has
primarily been focused on deliciousness, but the functions
of amino acids also enable us to provide solutions in terms of
added nutrition and conditioning. The volumes of meat and
vegetable consumption are important targets, but unless we
become a company that can provide new nutritional intake
and specically provide nutritional intake that people need,
we cannot engage middle-size market areas. I think it is our
World Umami Forum
The History of the Ajinomoto Group
II. Taking the First Step into the Next 100 Years
- 2. Becoming a Solution-Providing Group of Companies for Food and Health Issues
by Adapting to Social Change Driven by Digital Transformation and the Adoption of the SDGs -
29
business to provide solutions to these kinds of needs and make
them middle-size markets.
If we can do this, it will be very easy to understand in
terms of how many undernourished children and exhausted
adults we have improved life for. This is because it was
achieved through products. Unless we provide specic products
and services, it will be dicult to communicate our efforts
through actions such as providing or recommending menus that
feature meat and vegetables, or posting recipes on our website.
Okada:
So you will launch products and services which are
easy to understand in terms of both social value and economic
value.
Nishii:
For example, we are selling
Glyna
®
by 10 million yen as
a functional product or supplement by on-line shopping through
our web-site. If we introduce Glyna
®
as an ingredient in Knorr
®
Cup Soups
or
Ajinomoto
AGF, Inc. s beverage, sales of
Glyna
®
will grow to achieve 40-50 billion yen. Our current approach
of solutions through menus that feature meat and vegetables
is dicult to understand. We have incorporated this point into
the six core businesses decided for our next medium-term
management plan to show they are drivers for growth. Organic
growth of the six businesses is just over 3%, so if we can
strengthen products and services by 1% by providing functions
directly like this, it will rise to 4%. I think this makes it easier
to understand the connection between the nancial and non-
nancial aspects.
Okada:
This means a denitive difference between SDGs and
MDGs is that SDGs cover advanced countries and even target
extremely busy businesspeople in urban areas. It seems the
SDGs have provided a tailwind.
Nishii:
That is correct. In the U.S., as well as in Japan, salt
reduction is an extremely important theme.
Okada:
As many companies have been forced to tackle
the SDGs, as President & CEO, are there any companies in
particular you are watching?
Nishii:
Among Japanese companies that are approaching this
seriously, there are several manufacturers other than ourselves.
Ajinomoto
Co., Inc. is also on the board of the Consumer
Goods Forum, an international group that is strengthening
advancement in non-nancial elds. Out of the 400 companies
representing the world, 200 are manufacturers of food and
personal care products and 200 are major retailers. I think
we can be proud that we are a part of this group of leading
companies.
Continuing as a company that can contribute to
health and well-being
Okada:
One more thing. I have heard that your diagram of
the Group philosophy has made it simpler, but it seems a little
complicated to me...
Nishii:
In our Philosophy, the important parts are the Mission
and the Vision which outlines milestones for achieving the
Mission. Realizing these is our values, and values are actually
stories. There are four main ASV Value Creation Stories, and
these connect to our business.
Specically, 1) contribute to health and well-being through
the food products and healthcare businesses, 2) contribute to
the joy of eating together through the food products business in
Japan and overseas, and 3) contribute to comfortable lifestyles
by mainly the life support business. Also, we contribute to
the sustainability of the society and the earth along with cost
reductions through our supply chain, leveraging our resource-
saving fermentation technologies and so on. Additionally, 4)
we are raising the degree of global employee engagement
through work-style innovation and health and productivity
management. These also led to the development of specialty
through the enhancement of value creation with customers and
the realization of eciency through the use of ICT. In other
words, if we can improve our ASV stories, we have a structure
that can achieve our Mission.
We intend to make each initiative further improved to
connect our value with stakeholders one.
Okada:
It is easy to understand when you explain it like that.
Finally, what are the values and principles that are consistently
followed by the Ajinomoto Group, both in the past and into
the future? While I think that Dr. Kikunae Ikeda s thoughts on
nutrition and umami can be seen as ASV itself, I would like
to ask you what should be changed and what should not be
changed?
Nishii:
What cannot be changed is our desire to become a
global company which contributes as much as possible to
health and well-being. This must denitely remain the same.
I particularly want to use our core competencies to realize
this. We will continue to research more deeply into the four
functions
5
of amino acids and pursue applications for our
ndings.
Okada:
I feel a spark is being created by engagement with
people from different industries through collaboration at the
CIC, etc. While this is just the start of these efforts, what are
your expectations for 10 years from now? Not just on the
Ajinomoto
Group s own.
Nishii:
The CIC is denitely a location for open innovation.
There are lots of cases where visitors discover things like, I
didn t know Ajinomoto Co., Inc was doing that, or We can
use this to solve our own company s issues. We have actually
already started joint research under non-disclosure agreements.
While the number of these projects is still in the single digits,
ideally, we would increase these kinds of orders to close to 100.
If we realize traceability that can be narrowed down to each
stage of these projects, evaluations of our development in terms
5. Refers to the flavoring function (create delicious meals), the nutritional function (promote
growth, development and recovery), the physiological function (support physical health [an
example of this is Glyna
®
, which has glycine as a main component]), and reactivity (creating
new functions).
The History of the Ajinomoto Group
II. Taking the First Step into the Next 100 Years
- 2. Becoming a Solution-Providing Group of Companies for Food and Health Issues
by Adapting to Social Change Driven by Digital Transformation and the Adoption of the SDGs -
30
of R&D will be easy to understand.
Okada:
If you can realize a large project from the CIC, I think
it would be a really appropriate use of the facility.
Nishii:
If we can actively utilize our core competencies and
external capabilities while always making contributions to
society, I think we will begin to see the shape of our next 100
years.
Okada:
Thank you very much.
Eat Well, Live Well.
Corporate message
Ajinomoto
Group
Mission
Ajinomoto Group
Vision
ASV
(The Ajinomoto Group
Creating Shared Value)
Ajinomoto Group Way
Ajinomoto Group Policies (AGP)
Our raison d’être, mission, and desire
as a company that we will pursue
persistently
Our mission is to contribute to the
world’s food and wellness, and to
better lives for the future
What we aim to be as we pursue our
mission
Our vision is to become a genuine
global food company group with
specialties guided by our
leading-edge bioscience and fine
chemical technologies
Initiatives to create both social and
economic value in order to realize our
mission and vision
ASV represents our unchanging
commitment: With our stakeholders
and businesses, we help resolve
society’s issues, leading to the
creation of economic value
Shared values among employees in
pursuing our mission and vision; basic
approach and stance in taking on our
work
・
Create New Value
・
Pioneer Spirit
・
Social Contribution
・
Value People
Beliefs and behaviors to be upheld by each
Ajinomoto Group company and each of us
who works there
Figure II-8: Our Philosophy (2018)
The History of the Ajinomoto Group
II. Taking the First Step into the Next 100 Years
- 3. The Ajinomoto Group: The Last 10 Years and Expectations for the Future -
31
3
II. Taking the First Step into the Next 100 Years
- A Roadmap for Becoming a GGSC, Presented by Top Management -
The Ajinomoto Group:
The Last 10 Years and Expectations for the Future
– Special Contribution by Professor Masahiro Okada, Graduate School of
Business Administration, Keio University
issues as a food company. I think this has its roots in one of the
motivations behind Dr. Kikunae Ikeda s research – to realize
social benet by improving the nutrition of the Japanese people.
Furthermore, in the period between 1955 and 1964, Toyonobu
Domen, the President at that time, earned acquaintance with the
Rockefeller family through which he recognized the importance
of realizing social contribution through the company s main
business beyond legal compliance and charity work. As
companies build longer histories, they tend to forget about
the philosophy and aspirations of their founders. However,
reviewing this history enables a company to rearm why it was
originally founded and what kind of strengths it has built up
over time.
In the late 1950s and early 1960s, while Japan s economy
was booming amid a period of high growth, President
Toyonobu Domen made the following remarks. I would like to
share them with you once again.
We cannot be satised simply because our company
thrives, benets shareholders, and realizes good compensation
for our workers. We must consider the public nature of our
business and reach a point where we are a public service.
This kind of social contribution means not only streamlining
production and operations to deliver high quality products to
the public at a cheaper price, but also engaging in business that
makes society better, even if only a little. We should always
strive to realize this ideal.
The Ajinomoto Group has taken the approach of creating
social value through business which then enables the business
itself to thrive since its founding, and this was shown inside
and outside the Group through the concept of ASV (The
Ajinomoto
Group Creating Shared Value), representing the last
10 years.
(1) The signicance and importance of tracing history
I supervised the editing of this 10-Year History chronicling
the rst 10 years following the Ajinomoto Group s 100th
anniversary, and participated in a dialogue with President &
CEO Nishii. These were extremely valuable experiences. By the
way, what exactly is the signicance of a company s history?
What kind of events and circumstances does a company go
through from its founding up to the present day? Speaking
as a researcher of strategy, recording these in detail has a
strategic importance connected to decision making in terms
of the allocation of managerial resources, that goes beyond
just historical preservation. For each individual company, its
unique history represents the cultivation and accumulation of
managerial resources and capabilities (such as expertise, human
networks, and human abilities). Unlike the widely available
know-hows in manuals, the assets that anyone can purchase,
and the general abilities that anyone can learn or acquire
over a short period of time, these managerial resources and
capabilities acquired through history are path dependent and
rm-specic. They generate a distinctiveness from competitors
and are inimitable in their nature. In the strategy theory, these
resources can be a source of continuous strength, a sustainable
competitive advantage, unique to a company. Knowing what a
company has learnt from past events and experiences and how
its values and human networks have been formed provides
an understanding of the origins of its reason for being and its
corporate culture, and has a signicant influence on its current
and future strategies and how successful these will be.
(2) The unique characteristics of the Ajinomoto Group
I, as a business school professor, have opportunities to connect
with a variety of companies. Among these companies, I realized
that the Ajinomoto Group has unique styles and values as I
come to know its history. There are two elements. One is the
emphasis both on scientic technology and market adaptation
(marketing), and I sense that the Group has a particularly strong
orientation toward technology in food industry. The origins that
shaped this characteristic can be tracked back to the scientic
technology created by Dr. Kikunae Ikeda, who identied
the umami component of seaweed and created monosodium
glutamate (MSG), combined with the fearless entrepreneurial
spirit of President Saburosuke Suzuki II.
The Ajinomoto Group has another unique style. It is a
strong determination that the Group should resolve social
Toyonobu Domen speaking at the
International Council for Scientific
Management and his audience
(Fortune, November 1963 edition)
The History of the Ajinomoto Group
II. Taking the First Step into the Next 100 Years
- 3. The Ajinomoto Group: The Last 10 Years and Expectations for the Future -
32
(3) The strategic signicance of these 10 years:
Proactive strategy building and ASV
Looking back over the Ajinomoto Group s 110 years of
history, I think the past 10 years have a special signicance.
This is because there has been a change in direction from the
propagation of natural growth driven by the period of high
economic growth that followed the Second World War to
proactive reform of the structure of the Group. I feel this is
different from the expansion during Japan s economic bubble
and the unavoidable austerity that accompanied its burst. While
the 2008 global nancial crisis (the Lehman Shock) created
unprecedented external pressure, President & CEO Ito used
it to create FIT & GROW with Specialty, a strategic direction
focused on adding value to realize a vision for the Ajinomoto
Group, and he implemented specic measures aimed at making
the Group a GGSC (Genuine Global Specialty Company).
President & CEO Nishii continued this FIT & GROW with
Specialty strategy in the form of asset-light management and
digital transformation, and under this phrasing, he has been
responding to the rapidly advancing digitalization of business
and its shift to networking. As discussed in the latter part of
this publication, markets and society demand companies to go
forward in terms of how they will address digitalization and
digital platforms, and how they will contribute to society and
the environment furthermore. This is a paradigm shift with
trends that will easily continue for 10-20 years or more. I think
the past 10 years have been the beginning of this structural
reform by the Group.
The above-mentioned strategies were formulated and
advanced, and the most representative event of the last 10 years
is that the Group set the concept of ASV as its fundamentals. As
Chairman of the Board Ito said in his interview, with regards
to taking Porter and Kramer s CSV (Creating Shared Value)
theory published in 2011 and replacing its C with A (Ajinomoto
Group), Creating shared values (CSV) among corporate and
society is not something the Ajinomoto Group will pursue
from now on, but rather we, Ajinomoto has already been long
operated under this CSV spirit since our foundation. This
shows another unique characteristic of the Group. While recent
years have seen a growing number of companies declare they
will practice CSV management, the Group found its own way
of expressing this very early on, and it is also using its own
methods to closely link nancial and non-nancial indicators
as integrated ASV targets, such as targets for increasing meat
and vegetable consumption volumes. Also, ASV is not just
a mission to be achieved. The Group has rmly positioned it
as the Ajinomoto Group s values. Chairman of the Board Ito
reiterates that the Group follows ASV approach simply because
It is always natural for us to do so. in the past, the present,
and the future. I feel that this is another area in which the Group
has inherited the strong desire to provide social value since its
foundation.
Overall, I think the concepts, strategies, and values
formulated by Presidents Ito and Nishii over these 10 years will
be an important driving force over the next 100 years.
(4) The Ajinomoto Group’s superior technological
capabilities (globally unique AminoScience)
In the food industry, it is generally considered important to
have marketing and mass production capabilities that enable a
company to get an idea of current and potential customer needs
through market surveys, and then fulll these needs by quickly
developing products and producing them. This logic will not
change now or in the future. However, the strong impression
I had from visiting the Client Innovation Center (CIC) and
the Ajinomoto Group Umami Science Square was that the
Group puts an equal or even greater focus on technology than
marketing and mass production capabilities. I have already
spoken about one of the reasons behind this, which is that
the commercialization of AJI-NO-MOTO
®
itself came from
university technology. As a result, MSG was awarded the
Imperial Invention Prize in 1926 and Dr. Ikeda was considered
one of the ten Japanese great inventors alongside Sakichi
Toyoda, who developed the automated loom, and Kokichi
Mikimoto, who was the rst person to successfully realize pearl
cultivation. Furthermore, in the modern day, The Group is one
of the top investors in research and development within the
food industry, investing around 28 billion yen per year. From a
global perspective, while it is obviously not at the same level as
companies like Nestlé S.A., Unilever N.V., and PepsiCo, Inc., it
does put the Group alongside Mondelz International, Inc. and
Danone S.A. I think this investment, combined with 10 years
of swift advancement by acquiring footholds in each region
through acquisitions, have resulted in the track toward a GGSC
for the Group.
In terms of organization, these 10 years have also seen
the signicant restructuring of the Group s research and
development framework, including the concentration of the
dispersed research capabilities of each business into two
research functions to form a structure that maximizes synergies.
Furthermore, the CIC is also being
utilized to realize collaborations
focused on incorporating external
technologies and external needs.
I predict this will result in new
synergies and innovation and I am
greatly looking forward to seeing
the results.
Cover of Ten Japanese Great
Inventors published by the
Japan Patent Office
The History of the Ajinomoto Group
II. Taking the First Step into the Next 100 Years
- 3. The Ajinomoto Group: The Last 10 Years and Expectations for the Future -
33
(5) The advent of the digital age and adapting strategy
The deepest impression I had during my conversation
with President & CEO Nishii was that he had a sense
of crisis regarding the decline of mass brands due to the
spread of digitalization and e-commerce even as he takes a
strong direction toward actively using e-commerce. In our
conversation, his concept of targeting the strongly health-
conscious middle- and upper-income earning segments by
using e-commerce to sell functional health foods (for recovery
from fatigue or comfortable sleep, etc.) directly became clear.
For your reference, in FY2018 the Japanese e-commerce/mail
order market for health foods was said to be worth 513.4 billion
yen. The Ajinomoto Group was estimated to have a 2.8% share,
while the company with the top share had 16.7%, so there is
lots of room for growth.
(FY2019 Health Foods Mail Order/E-commerce Business Strategy
Survey, TPC marketing research corp., https://netshop.impress.
co.jp/node/6923)
Also, as e-commerce will make it easy to transcend the
boundaries of language and national borders, it is thought that
ultimately, technological capabilities and product strengths will
be the deciding factors. The markets in which the Ajinomoto
Group can demonstrate its strengths will become global in
scale. The advantage of online retail is that it is possible to
reach customers in real time by providing them with products
directly at a lower cost. Recently there has been a boom in
the import of pharmaceuticals and health products by private
individuals, and considering the development of worldwide
logistics technology, inventory costs will be eliminated in
each consumption area. Test marketing, which is high-mix
low-volume long tail retail methods, will enable products that
perform well to be identied at an extremely low cost. So the
Group will be able to realize ecient marketing and business
growth. Regarding future global development, while I think the
frozen foods business in North America will play a major role
at rst, the global market for health foods through e-commerce
will become an important growth area. I look forward to seeing
the Group s next move (product functions and sales methods).
(6) Challenges for the next 10 years
During this period, the Ajinomoto Group has acquired many
companies and businesses to plant the seeds for future growth.
Furthermore, it has advanced internal restructuring that further
strengthens synergies between businesses with AminoScience
at the core through a transition from a company system
to a multi-divisional system and integrating research and
development to eliminate silos. This shows the necessity of
not aiming to simply acquire companies to grow in scale as
a conglomerate, but acquiring carefully selected companies
that offer strong synergies and then using their sales channels
to expand the sale of products based on the Group s original
technologies. Generally speaking, while corporate acquisitions
have an instant effect in terms of scale, it is dicult to create
originality and synergies. I think that the key to become a
GGSC will be to demonstrate originality
through management based on core
competencies that position AminoScience
at the center and then apply this through
retail channels (mixing real and online) in
each global region. When considering what
kind of synergies will be generated between
acquisition companies and the AminoScience
technological capabilities developed internally,
I would like to see a focus on, to borrow
President & CEO Nishii s words, synergies that
link being an amino-acid driven company
and globalizing the food products business. I
think the concentration of the company s future
strategic direction will be based on President
& CEO Nishii s statements that, We will not
be able to take advantage of digital growth
unless we combine our core competencies with
technology and marketing to concentrate in
Table II-1: Industry dominance ranking (food products
industry)
Position
Company name
Number
of patent
citations
1 Ajinomoto Co., Inc. 269
2 Kirin Holdings Company, Limited 258
3 Suntory Holdings Limited 181
4 Asahi Group Holdings, Ltd. 180
5 Japan Tobacco Inc. 165
6 Nisshin Seifun Group Inc. 156
7 Meiji Holdings Co., Ltd. 141
8 FUJI OIL HOLDINGS INC. 129
9 NESTEC Inc. 111
10 PHILIP MORRIS PRODUCTS S.A. 108
Note: The figures show the number of patents owned by each company that were cited as the
reason to reject a patent filed by another company during the patent examination process in
2019.
Source: Investigation by Patent Result Co., Ltd. The written representation of company names is
based on presentations by Patent Result Co., Ltd.
600
500
400
300
200
100
0
120
115
110
105
100
95
90
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
(FY)
(Billions of yen)
(%)
Note: Investigation by TPC marketing research corp
Source: NetShop Tantousha Forum, Impress Corporation
https://netshop.impress.co.jp/node/6923
Year-on-year changeSales
Figure II-9: Scale of the Japanese e-commerce/
mail order market for health foods
The History of the Ajinomoto Group
II. Taking the First Step into the Next 100 Years
- 3. The Ajinomoto Group: The Last 10 Years and Expectations for the Future -
34
elds where we can build a competitive edge, and two trends
– the growth of small-size markets driven by digital trends and
e-commerce that incorporates the diversication of consumer
values on sustainability.
(7) Looking toward the next 100 years
While editing this publication, I have learned about the spirit
of the Ajinomoto Group since its foundation, which has come
to fruition through the ASV concept. This approach is not just
about improving nutrition, but also about contributing to health
through the deliciousness of umami, connecting people, and
connecting to tradition through food. The Ajinomoto Group has
contributed to society through the creation of new lifestyles,
culture, and mindsets that are not dened by xed gender roles
and realizing a world where the lifestyles offered to women are
broader while keeping the quality of diets. The Group continues
to pursue the three key signicances of nutritional intake,
which are 1) growth and energy, 2) recovery from fatigue, and
3) self-control and conditioning. I think the Ajinomoto Group s
mission and ASV, the values that guide behavior in support of
the achievement of this mission, have a universal quality which
provide a backbone that will carry the Group over the next 100
years.
The History of the Ajinomoto Group
35
III. Taking the First Step into the Next 100 Years
- 1. Grand Designs -
III
Taking the First Step
into the Next 100 Years
- Aiming to Become a GGSC -
The History of the Ajinomoto Group
III. Taking the First Step into the Next 100 Years
- Aiming to Become a GGSC -
36
FY
▪2008 ▪2009 ▪2010 ▪2011 ▪2012 ▪2013
Medium-Term
Management Plan
FY2008-2010 Medium-
Term Management Plan
➡ p.37
1) Realize an amino acid
century
2) Respond to the new
economic order and cost
structures
3) Realize the Group
Innovation
FY2011-2013 Medium-Term Management Plan
➡ p.37
1) The Group Vision: group of companies that contributes to
human health globally
2) The Ajinomoto goal: to become a Genuine Global Company
(GGC)
Structural
Reinforcement
and Growth
Initiatives
Structural
Reinforcement
Animal nutrition: start of
outsourcing
manufacturing ➡ p.47
Spinning off the animal
nutrition business
➡ p.59
Sale of Calpis Co., Ltd. to
Asahi Group Holdings, Ltd.
➡ p.42
From a virtual company
system to a business
headquarters system
➡ p.58
Spinning off the
pharmaceuticals company
➡ p.42
Restructuring into three
research institutes and one
center ➡ p.52
Growth
Initiatives
Start of the AminoIndex
®
business ➡ p.53
Acquisition of Althea
Technologies, Inc. in the
U.S.
Launch of an overseas
business in partnership
with Toyo Suisan Kaisha,
Ltd. ➡ p.49
ABF, an interlayer
insulating material for
semiconductor packages,
wins a Porter Prize
Foundation Development
Initiatives
Acquisition of naming
rights for Japan’s
National Training Center
➡ p.67
Introduction of a biomass
boiler in Brazil ➡ p.65
Expansion of Kachimeshi
®
targeting regular
consumers ➡ p.69
3 17 12 13 157 3 17
Start of the Ghana
nutrition improvement
project ➡ p.70
Start of a job grade system, global human resources
development ➡ p.77
2 17
5 8
Introduction of a
biomass boiler in
Thailand ➡ p.65
12 13 157
FY
▪2014 ▪2015 ▪2016 ▪2017 ▪2018 ▪2019
Medium-Term
Management Plan
FY2014-2016 Medium-Term Management Plan ➡ p.39
1) “FIT & GROW with Specialty” towards a Genuine Global Specialty Company (GGSC)
2) The Ajinomoto Group Creating Shared Value (ASV)
FY2017-2019 Medium-Term Management Plan ➡ p.40
1) Continue “FIT & GROW with Specialty” to become a global top 10 class food company
2) Reinforce our organization, human resources and work-styles + Establish business structure with
high asset/capital efciency
3) Four ASV Value Creation Stories
Structural
Reinforcement
and Growth
Initiatives
Structural
Reinforcement
Establishment of
Ajinomoto SEA Regional
Headquarters Co., Ltd.
➡ p.78
Establishment of a two-
business headquarters
system comprising
food products and
AminoScience ➡ p.59
Group-wide introduction
of a Global Governance
Policy (GGP) ➡ p.79
Sale of Amoy Food Ltd.
➡ p.59
Establishment of
Ajinomoto Food
Manufacturing Co., Ltd.
➡ p.60
Reorganization of the
China Division
➡ p.58
Reorganization of Institute
for Innovation ➡ p.58
Growth
Initiatives
Acquisition of Windsor
Quality Holdings, LP
in the U.S. ➡ p.43
Taking full ownership of
Ajinomoto General
Foods, Inc. (trademarks
acquired the following
year)
➡ p.45
Establishment of EA
Pharma Co., Ltd. with Eisai
Co., Ltd. ➡ p.42
Consolidation of three
companies in Turkey
➡ p.46
Start of commercialization
of StemFit
®
iPS/ES cell
culture media ➡ p.50
Acquisition of shares in
Promasidor Holdings
Limited in Africa ➡ p.46
Creation of the Solution &
Ingredients Department
➡ p.61
Foundation Development
Initiatives
Declaration of our aim to
become a GGSC through
ASV ➡ p.39
Introduction of a
biomass cogeneration
system in Thailand
➡ p.65
Establishment of
Our Philosophy as a
philosophical framework
encompassing ASV
➡ p.63
Making outside directors’
ratio one third
➡ p.73
Holding of
World Umami Forum
➡ p.80
Inauguration of
F-LINE CORPORATION
➡ p.66
All SDGs
12 13 157
All SDGs
Corporate Governance
Code
3 17 13 177
Issuance of Integrated
Report and full adoption of
IFRS
➡ p.73 - 74
Corporate Governance
Code
Corporate Governance Code: A code of conduct that encourages stock listed companies to practice corporate governance based on relationships with a variety of stakeholders and to realize
sustainable growth. Japan’s Corporate Governance Code was formulated in 2015, primarily by the Financial Services Agency and the Tokyo Stock Exchange.
SDGs: An abbreviation of Sustainable Development Goals. Included in Transforming our world: the 2030 Agenda for Sustainable Development, an outcome document adopted by the United
Nations in September 2015, as guidelines for taking concrete action up to 2030. They comprise 17 goals and 169 targets.
SDGs
1
-
17
:
1
NO POVERTY
2
ZERO HUNGER
3
GOOD HEALTH AND WELL-BEING
4
QUALITY EDUCATION
5
GENDER EQUALITY
6
CLEAN WATER AND SANITATION
7
AFFORDABLE AND CLEAN ENERGY
8
DECENT WORK AND ECONOMIC GROWTH
9
INDUSTRIAL INNOVATION AND INFRASTRUCTURE
10
REDUCED INEQUALITIES
11
SUSTAINABLE CITIES AND COMMUNITIES
12
RESPONSIBLE CONSUMPTION AND PRODUCTION
13
CLIMATE ACTION
14
LIFE BELOW WATER
15
LIFE ON LAND
16
PEACE, JUSTICE AND STRONG INSTITUTIONS
17
PARTNERSHIPS FOR THE GOALS
III. Taking the First Step into the Next 100 Years
- Aiming to Become a GGSC -
The Ajinomoto Group FY2009 - FY2019
1
Grand Designs
- Four Medium-Term Management Plans
The History of the Ajinomoto Group
37
III. Taking the First Step into the Next 100 Years
- 1. Grand Designs -
III. Taking the First Step into the Next 100 Years
- Aiming to Become a GGSC -
A struggle following the 2008 nancial crisis (the
Lehman Shock) –
FY2008-2010 Medium-Term Management Plan
The Ajinomoto Group entered its second century in 2009 as
the world was experiencing a global recession due to the 2008
financial crisis (the Lehman Shock).
At this time, we were advancing our FY2008-2010
Medium-Term Management Plan which had three main goals:
A) Realize an amino acid century, B) respond to the new
economic order and cost structures, and C) realize Ajinomoto
Group Innovation.
Realize an amino acid century centered on the use of
amino acid-related products and technology to aim for business
growth while practicing management that contributes to society
and the environment through initiatives such as saving land
use and reducing CO
2
emissions through feed grade amino
acids, and improving nutrition to improve undernutrition in
developing countries and overnutrition in advanced countries.
Respond to the new economic order and cost structures
meant the implementation of initiatives that were focused on
responding to rising material costs, market contraction in Japan,
and the advancement of globalization. These initiatives included
shifting focus in Japan to profitable businesses, growing the
overseas business to realize an overseas operating profit ratio of
over 50% in FY2010, reorganizing and boosting the profits of
less profitable businesses, expanding in growth areas
1
, quickly
stabling a profit base for our health business, and creating new
businesses and materials.
Realize Ajinomoto Group Innovation meant
strengthening the Group management by stipulating the
Ajinomoto
Way (now the
Ajinomoto
Group Way) as a set of
values and shared attitude for employees, formulating a new
mission and vision, and considering the optimal business
operational structure for the Group, such as a holding company
structure.
The appointment of President & CEO Ito and a
V-shaped recovery
However, in FY2008 we recorded a loss in our full-year
results (see p.9), so for FY2009, following the appointment of
Masatoshi Ito as President & CEO in June 2009, we pursued
management that positioned recovering profitability as an
urgent issue.
In our results for FY2009, although there was an
unavoidable decline in sales, we managed to increase year on
year operating profit by more than 50%. For net income of
the year, after experiencing a loss of over 10.0 billion yen in
the previous fiscal year, we realized a V-shaped recovery with
profit of more than 16.6 billion yen. This success was achieved
by whittling down unprofitable businesses and focusing on
profitable businesses, such as overseas seasonings.
Following this, we experienced a second consecutive year
of declining sales in FY2010, partially due to the tragedy of the
2011 Great East Japan Earthquake. However, we managed to
increase operating income and almost doubled net income for
the year at 30.4 billion yen. This was due to a mix of positive
factors, including cost reductions across the Group, growth
of the overseas food products business, improved market
conditions for feed-use amino acids (lysine), and contributions
from the highly profitable electronics material ABF (an
interlayer insulating material for semiconductor packages).
During this period, in FY2009 we formulated Rules for the
Group Management Committees (July 2009) and in FY2010,
we created a new corporate slogan, Eat Well, Live Well.
Furthermore, we transitioned from a virtual company system to
a business headquarters system and established AJINOMOTO
PHARMACEUTICALS CO., LTD. (both in April 2010). In July
2010, we began to implement reforms and lay the foundations
for growth that focused on the period beyond recovery,
including initiatives aimed at advancing globalization and
improving the profitability of Ajinomoto Co., Inc. In November
2010 we launched the Innovation Task Force, which began to
formulate the direction of our next medium-term management
plan, including a shift from self-reliance innovation towards
open & linked innovation, a reduction in manpower, and
enhanced collaboration with overseas subsidiaries.
Aiming to become a Genuine Global Company –
FY2011-2013 Medium-Term Management Plan
The FY2011-2013 Medium-Term Management Plan, formulated
under President & CEO Ito with his own management policies,
included the Group Vision of becoming a Group of companies
that contributes to human health globally and the Ajinomoto
goal to become a Genuine Global Company (GGC). To
achieve these, it included the key principles of A) growth driver
1. At that point, our focus growth areas were overseas seasonings, electronics
materials, and feed-use amino acids.
The History of the Ajinomoto Group
38
III. Taking the First Step into the Next 100 Years
- 1. Grand Designs -
development, B) business structure reinforcement, and C)
foundation building, and aimed to make us into a global top 10
class food company by realizing an average annual operating
income growth rate of 10%.
The Group was recognized as one of the top food
products companies in Japan and we carried a reputation for
developing global businesses earlier than any other domestic
companies. However, there was still a gap between us and
major global food companies in terms of both business results
and organizational operations, so the use of the term Genuine
reflected our desire to bridge this gap.
Growth driver development positioned global
development and R&D as drivers for growth.
Global development involved the cultivation of overseas
markets, particularly in emerging countries, with the targets
of raising our overseas sales ratio from the 31% forecast in
FY2010 to 35% in FY2013, and our overseas prot ratio from
the 59% forecast in FY2010 to 62% in FY2013. In addition to
expanding the market share of mainstay products and raising
protability, we aimed to introduce products such as powdered
menu-specic seasonings and functional seasonings that were
tailored to local conditions as a specic means of developing
the next generation of core products. We also implemented a
strategy that used overseas business locations as hubs to quickly
establish businesses in surrounding countries in order to speed
up business development.
R&D leadership involved the priority investment of
resources into areas connected to seasonings and advanced
biotechnologies to create new value and businesses that
improve protability and realize growth. Our goals were to
realize products that appeal value in terms of both deliciousness
and health, including becoming No. 1 in seasonings in each
country while providing reduced-salt, reduced sugar, and
low-fat products, and to contribute to global sustainable
development, conservation of food resources, and healthy
living
2
through technological capabilities in the three areas of
environment and resource contributions, animal and plant
nutrition, and advanced medicine and nutrition. In terms
of business locations, we established a structure of ve global
centers (Asia, Europe, the U.S., Russia, and China) and took a
new policy that departed from previous approaches by shifting
away from self-reliance and actively utilizing open & linked
innovation, alliances, and M&A. In order to realize this, we set
a goal of making investment in Group-wide strategic themes
account for 40% of total R&D investment in FY2013.
Furthermore, business structure reinforcement
meant implementing structural reforms and organizational
enhancement with a view to improving resistance to market
and exchange rate fluctuations and responding to heightened
competition in emerging countries.
Regarding a transition from quantity to quality (added
value), which had been an issue since the previous medium-
term management plan, our basic strategy was to strengthen
our cost competitiveness and shift our focus to added-value
businesses. We set specic, quantitative targets for raising
our ratio of added-value businesses from the 70% forecast
in FY2010 to over 80% in FY2013, and our operating prot
ratio from the 5.7% forecast in FY2010 to 7% in FY2013.
We also aimed to realize cash flow-conscious management by
controlling overall limits for capital investment and increasing
asset efficiency, with the goal of dramatically increasing
free cash flow from an average of 10 billion yen per year in
FY2005-2010 to 40 billion yen in FY2013. Optimize business
portfolio and functional value chain was established as an
initiative for enhancing asset efficiency and shareholder value
and we set a quantitative target of 8% return on equity (ROE)
for FY2013 (compared to 4.5% forecast for FY2010). As
funding for growth was primarily being raised through interest-
bearing debt, we allowed for a debt-to-equity ratio of up to
around 50% (compared to the previous 20%).
Also, to conduct the foundation building needed to
achieve the key targets mentioned above, we aimed to develop
global human resources and strengthen governance with a view
to further advances in global development. One example of this
was when we increased the ratio of locally recruited officers at
overseas subsidiaries from the 34% forecast in FY2010 to 50%
in FY2013. We established the Open New Sky concept which
involved daily eorts to flexibly utilize external capabilities and
expand into adjacent domains with a wider approach.
Under these plans, we implemented the large-scale
initiatives outlined in Table III-1. The second cabinet of Prime
Minister Shinzo Abe (appointed in December 2012) launched
its Abenomics policies (including bold monetary easing)
leading to a gradual recovery in the Japanese economy, despite
the sluggish growth of consumption, and conditions in the U.S.,
Japan
Japan
U.S.
Asia
China
Russia
Europe
Figure III-1: Establishing research and development centers
in Asia, the U.S., and Europe (ve locations in
total)
2. Specically, MSG production, aimed to use raw materials that are not competing
with food resources, feed for agricultural, livestock, marine production, utilizing
amino acid functions, biopharmaceuticals and regenerative medicine.
The History of the Ajinomoto Group
39
III. Taking the First Step into the Next 100 Years
- 1. Grand Designs -
European, and Chinese economy were generally improving.
As a result, while the sales of certain businesses reduced
revenue, we were able to reinforce business structure through
overseas business growth and the creation of hit products
(such as Nabe Cube
®
, Cook Do
®
Kyo-no Ohzara
®
, Cook Do
®
Koumi Paste
®
, and
AjiPro
®
-
L
) that were realized by providing
new value in adjacent domains. This consistently increased
operating income margins, reaching 6.5% in FY2013 compared
to 6.05% in FY2011 (see Table III-2).
Further advancing “FIT & GROW with Specialty” and
the appointment of Takaaki Nishii as President & CEO -
FY2014-2016 Medium-Term Management Plan
The FY2011-2013 Medium-Term Management Plan involved
execution of the business development and reform needed
to become a global company, including rapid cultivation
of markets in developing countries, a shift away from self-
reliance and actively utilizing external resources, and
enhanced governance. Under the FY2014-2016 Medium-
Term Management Plan, the Group worked to strengthen this
foundation.
This plan used the slogan FIT & GROW with Specialty
towards a Genuine Global Specialty Company (GGSC) to
clarify the concept of adding specialty to the promotion of both
the FIT business structure reinforcement and GROW growth
driver cultivation that had been advocated in the FY2011-2013
Medium-Term Management Plan. Also, when formulating this
plan, how we incorporated Creating Shared Value (CSV)
3
was
an important consideration, and the Ajinomoto Group Creating
Shared Value (ASV, see p.63) was announced at the same time
as the plan (for the reason why we replaced CSV with ASV,
see p.18). We aimed to create specialty through ASV to realize
sustainable growth and become a Global Genuine Specialty
Company (GGSC, see p.62).
The key principle of the plan was become a food company
group with specialties driven by leading-edge bioscience and
ne chemical technologies in an approach that strengthened the
focus on R&D in relation to both GROW and FIT.
We positioned global growth and R&D leadership as the
main growth drivers. The strategies for each business were as
follows.
Food products business: Pursue a customer-driven
approach (see p.84-85) in marketing focused on No.1
in deliciousness and promote For One, For All by
demonstrating our strengths. For One in Japan, which
is experiencing individualization, through product
development tailored to the market for individuals and
single servings, while realizing For All overseas with
a focus on delivering popular foods. Focus on the Five
Stars (key countries) overseas.
AminoScience business: Establish new businesses in the
specialty materials and healthcare elds as growth drivers
on the unique cutting-edge biotechnology platform.
In the overseas business in particular, we launched a
new initiative by positioning the key countries of Thailand,
Vietnam, Indonesia, the Philippines, and Brazil as the Five
Stars. Through this emphasis, we aimed to raise overseas prot
ratio from the 52% forecast in FY2013 to 60% in FY2016 and
realize an increase in sales growth ratio for the Five Stars in
FY2016 of 70% compared to FY2012.
To reinforce business structure, rst we set an overall
direction of shifting from commodities to specialty by
specializing bulk products and business, such as MSG,
sweeteners and animal nutrition (or shifting these businesses to
consumer use). The aim was to minimize the eects of market
fluctuations and price competition in emerging countries via
increased competitiveness through dierentiated products that
provide high added value. We also formulated strategies that
included increasing our competitiveness through resource-
saving fermentation and other technologies and strengthening
our pharmaceuticals business through external partnerships.
Regarding the shift from bulk to consumer sales, we set targets
of increasing the ratio of MSG used for consumer sales from
the 68% forecast in FY2013 to 74% in FY2016 and the ratio of
sweeteners used for consumer sales from the 49% forecast in
FY2013 to 57% in FY2016. For feed-use amino acids, our goal
was to raise the ratio of specialty products to 40% in FY2016.
Also, to enhance asset efficiency and shareholder value, we set
3. In 2011, Harvard University Professor Michael E. Porter and others advocated a
new approach to CSR, which had generally focused on social contribution outside
of a company’s business. The CSV approach encourages companies to resolve
social issues and contribute to society and the environment through their business
and thereby raise their competitiveness.
Table III-1: Major newly established companies,
acquisitions, and sales (FY2011-2013)
Date Initiative
September 2011
Established an animal nutrition subsidiary
(Ajinomoto Animal Nutrition Group, Inc.)
April 2012
Established a joint venture systems subsidiary
with Nomura Research Institute, Ltd.
(NRI System Techno, Ltd.)
October 2012 Sold all shares in Calpis Co., Ltd.
April 2013 Acquired Althea Technologies, Inc. in the U.S.
December 2013 Acquired a 50% share in Kükre A.Ş. in Turkey
Cook Do
®
Koumi Paste
®
Cook Do
®
Koumi Paste
®
(Spicy)
AjiPro
®
-L
The History of the Ajinomoto Group
40
III. Taking the First Step into the Next 100 Years
- 1. Grand Designs -
Expand into
adjacent domains
Existing product domain Another domain/innovation
Introduction
of
technology
Partnerships
JV
M&A
Organic
capabilities
Existing organic
capabilities
Open
&
linked
Open New Sky
Examples of use of external
resources
• Kükre A.
Ş
.: Secured local seasonings
and sales channels in Turkey
• Toyo Suisan Kaisha, Ltd.: Expanded
sales of overseas instant noodle
business
• Kyoto University: Developed a new
culture method for iPS cells
• Keio University: Developed culture
medium technology for the low-cost
production of iPS cells
Examples of expansion into
adjacent domains
• Nabe Cube
®
, Cook Do
®
Kyo-no Ohzara
®
: Used technologies
and brands of existing products to
expand into adjacent markets
• AjiPro
®
-L (lysine for dairy cattle):
Added some technology to an existing
product to create a different target
market
a new theme of focusing on a value chain oering high added
value and aimed to continue eorts to optimize our cash flow
management, business portfolio, and optimization of functional
value chain.
To reinforce our management foundation, rst of all we
advanced corporate governance in the overseas business.
We aimed to achieve a structure that properly balanced
functions between headquarters, which was seeking overall
optimization, and the affiliates that were expanding the
businesses in close coordination with localities. We especially
delegated authority in the Southeast Asian region and
South America, including the Five Stars. Another theme
of management foundation reinforcement was to cultivate
around 200 potential management candidates by FY2016
through the development of a solid and large class of global
human resources and introduction of global HR systems (see
p.76). We also responded to the need for diversity (active
recruitment of personnel of diverse races, genders, ages,
etc.) by setting specic target gures for the ratio of locally
hired overseas executives. In April 2016, we introduced our
Global Governance Policy (GGP) Group-wide in order to take
a forward step in delegating authority to overseas business
locations to help them make use of their human resources. A
further theme was Open New Sky (see Figure III-2), in which
all businesses made daily eorts to flexibly utilize external
capabilities (open & linked) and took a wider approach to
expand into domains adjacent to existing businesses. In regard
to open & linked, we pursued joint development with
Kükre A.
Ş
. (securing local seasonings and sales channels in
Turkey), Toyo Suisan Kaisha, Ltd. (collaboration that expanded
countries covered in the overseas instant noodle business),
Kyoto University (development of a new culture method for
iPS cells, see Figure III-3), and Keio University (development
of culture technology for the low-cost production of iPS cells).
With respect to development in adjacent domains, we leveraged
technology to launch new products in adjacent domains, such
as the development of Nabe Cube
®
from consommé, and in
specialty chemicals, we developed a server application for
Ajinomoto Build-up Film
®
(
ABF
), an interlayer insulating
material for semiconductor packages.
We actively engaged in M&A, including acquiring the
U.S. frozen foods company Windsor Quality Holdings, LP
(November 2014), making Ajinomoto General Foods, Inc.
into a full subsidiary (April 2015), taking a 33% share in
the African foods company Promasidor Holdings Limited
(November 2016), and acquiring Örgen Gida Sanayi ve Ticaret
A.S. in Turkey (April 2017), and as a result, we realized three
consecutive years of revenue and prot increases up to FY2015.
Takaaki Nishii was appointed as President & CEO in June 2015,
and he drove rm progress on the plan together with Masatoshi
Ito, who had been made Chairman of the board. While
revenue and prot decreased in FY2016 due to factors such as
difficulties in the animal nutrition business and exchange rate
fluctuations, a sensible approach to nancial matters, such as
using a portion of the funds raised through selling businesses as
part of structural reinforcement for M&A, resulted in a debt-to-
equity ratio of around 30% and laid the foundation for realizing
growth in markets in emerging countries.
As shown above, under these two medium-term
management plans, primarily advanced while Masatoshi Ito was
President & CEO, the Group managed to realize a V-shaped
recovery from a full-year loss and steadily built a foundation
for becoming a global company (see Table III-2) through the
utilization of external resources while expanding into emerging
countries and narrowing the focus of R&D, based on ASV
management.
Continuing and advancing “FIT & GROW with
Specialty” - FY2017-2019 Medium-Term Management
Plan
Formulated under the leadership of President & CEO Takaaki
Nishii, the direction of the FY2017-2019 Medium-Term
Management Plan was to continue FIT & GROW with
Specialty to become a global top 10 class food company,
based on tackling issues remaining from previous medium-term
Figure III-2: Open New Sky Figure III-3: Development of a new culture method
for iPS cells
Previous method New culture method
Mouse cells (feeder cells)
* Recombinant protein: A protein created from microorganisms or yeast by using
biotechnology. As a biopharmaceutical, it offers a wide range of applications,
including as treatments for cancer and rheumatism.
Human and animal-derived
components
Human growth factor
(recombinant protein)
StemFit
®
AK03 culture
medium
(no human and
animal-derived
components)
Previous
culture medium
(with human and
animal-derived
components)
+
+
Human iPS cells
Scaffold protein
(recombinant protein)
The History of the Ajinomoto Group
41
III. Taking the First Step into the Next 100 Years
- 1. Grand Designs -
management plans (further transformation of animal nutrition
business
4
, slow growth in Thailand, increasing diversity of
talent). In terms of FIT (further business structural reform),
our main plan was to scale-down commodity business and
expand and accelerate specialty. In terms of GROW (growth
driver advancement), our main plan was to enhance growth
drivers tailored to changes in society and food habits in the Five
Stars. To reinforce our management foundation, in addition
to advancing the reinforcement of our organization, human
resources and workstyles as a global top class food company,
we added establish business structure with high asset/capital
efficiency capable of creating sustained protability as a
nancial KPI.
In terms of what we aimed for as the Group, besides
clarication of the conditions required to be a GGSC, the plan
also included the following ASV Value Creation Stories.
We contribute to health and well-being by utilizing our
leading-edge bioscience and ne chemical technologies
and deliciousness technologies to deliver delicious and
healthy food
We contribute to the development of a society that
enables strong family/social bonds and diverse lifestyles
through diets well
We contribute to the sustainability of living with the
society and the earth, with our customers and local
communities, across the value chain from production to
consumption
Our global, top-class and diverse human resources
co-create value with each region through a customer
perspective.
We aimed to utilize the Group products to realize A) better
nutritional balance by eating more proteins and vegetables
with umami, B) more eating together, C) smart and delicious
cooking, and D) comfortable lifestyles through amino acid
products. In addition to this, we also aimed to create value
for society and employees by reducing environmental impact
through the construction of a value chain (VC) that optimizes
the use of resources and improving employee engagement and
work environments supported by ICT, thereby realizing sales
growth, cost reductions, greater efficiency in various areas, and
the enhancement of corporate brand value.
Specic strategies were as follows.
FIT: Business structural reform in animal nutrition
including external partnerships, structural reinforcement
in sweeteners and pharmaceuticals custom manufacturing
(intermediate pharmaceuticals), reorganization of the food
product value chain in Japan including affiliated companies,
construction of sustainable value chains on a global scale
GROW: Realization of key product innovation and stronger
customer applications in Japan as a unied Group, category
strengthening and acceleration of new regional development
in the Five Stars and North America, establishment of a
BtoBtoC
5
(Business-to-Business-to-Consumer) model centered
on deliciousness solutions, establishment of businesses in the
advanced biopharmaceuticals area.
4. While specialization had progressed for products such as AjiPro
®
-L (lysine for
dairy cattle), competition had become ercer.
5. A style of business which involves supporting companies that are conducting
consumer business (B-to-C). For the Group, BtoBtoB business means A) raises the
value of the products which these companies deliver to consumers by dierentiated
materials and products (taste, texture, resistance to time degradation, etc.), and
B) utilizes consumer information possessed by the Group to provide appropriate
advice on product development for food manufacturers and restaurant businesses.
By using these methods, we realize the delivery of products that have more value
for consumers.
Table III-2: Trends in Major Indicators
FY
2010
FY
2013
FY
2016
FY
2019
Business
indicators
(*1)
Operating (business)
income ratio
6.8% 6.5% 8.9% 9.0%
Overseas sales ratio 37% 50% 52% 56%
Overseas operating
(business) prot ratio
(*2)
59% 47% 54% 55%
Return on equity (ROE) 5.0% 7.1% 8.7% 3.3%
Shareholder
return
indicators
(*1)
Payout ratio 37% 29% 32% 93%
Human
resources
strengthening
indicators
Ratio of locally hired
overseas executives
34% 40% 44% 41%
Ratio of female managers 14% 14% 19% 24%
(*1) Figures for FY2010 and FY2013 are based on Japan GAAP (operating profit) and figures for
FY2016 and FY2019 are based on IFRS (business profit)
(*2) The allocation of administrative expenses and a portion of R&D expenses was revised in the
operating profit ratios between Japan and overseas businesses
Through these strategies, by FY2020 we aimed to achieve
quantitative targets (see Table III-2) including business prot of
over 137 billion yen (96.8 billion yen in FY2016), a business
prot margin of 10% (8.4% in FY2016), ROE of 10% or higher
(8.56% in FY2016), double-digit annual growth in earnings per
share (92.81yen per share in FY2016), and double-digit annual
overseas sales growth (consumer foods).
2
The Challenge towards Structural Reform and
Creating Growth Drivers
- Specic Measures for “FIT & GROW with Specialty”
The History of the Ajinomoto Group
III. Taking the First Step into the Next 100 Years
- 2. The Challenge towards Structural Reform and Creating Growth Drivers -
42
III. Taking the First Step into the Next 100 Years
- Aiming to Become a GGSC -
1. The New Vision for the Pharmaceutical Industry released by Japan’s Ministry
of Health, Labour and Welfare in 2007 divided pharmaceutical companies that
can survive the intense competition of the industry into ve categories: mega,
specialty, basic drug, generic, and OTC (Over The Counter). A specialty pharma
company is a new drug manufacturer that creates drugs in specic elds and can
achieve an incredibly high share of the global market.
2. Startup capital: 9,145 million yen (Eisai Co., Ltd.: 60%, Ajinomoto Co., Inc.:
40%). EA is a combination of the rst letters of both companies’ names.
(1) Rapid portfolio transformation through sales of
businesses and other means
Selling businesses to clarify domains
– Establishing NST and selling Calpis Co., Ltd.
At Ajinomoto Co., Inc., we considered how to optimize our
business portfolio based on the policy of optimization of
business portfolio and functional value chains in our FY2011-
2013 Medium-Term Management Plan. In order to advance
FIT (structural reform), we worked to strengthen our focus on
core businesses under the new basic policy of with Specialty
(specialization and focus on our strengths) which was added in
our FY2014-2016 Medium-Term Management Plan.
First of all, in February 2012, we formed a strategic business
alliance with regards to IT services with Nomura Research
Institute, Ltd. (NRI) which included the transfer of 51% of
shares in our subsidiary, Ajinomoto System Techno Corporation,
renamed as NRI System Techno, Ltd. (NST) the following April.
While IT was a non-core area, we aimed to optimize operational
performance through collaboration with NRI, who oer advanced
consulting and system building capabilities, and focus on systems
that are important for enhanced productivity and technical
capabilities over the affiliate.
Following this, in October 2012, we transferred all shares
in our holding of Calpis Co., Ltd. to Asahi Group Holdings, Ltd.
The value of this transfer was 119 billion yen, which made it the
largest in the Japanese beverages market at that time. We rst
invested in Calpis Co., Ltd. in 1990 and integrated our beverage
business into the company the following year, nally making it
a fully owned subsidiary in 2007. Although Calpis business was
performing well, we wanted to concentrate business resources on
the core businesses of seasonings and foods, and leading-edge
bioscience and ne chemicals, so we decided to make the transfer.
Calpis Co., Ltd. and Asahi Group Holdings, Ltd. had been
collaborating since 2001, including on sales of beverages through
each other s vending machines, and had built up a partnership
that included integration of vending machine businesses in
2007. Asahi Group Holdings, Ltd. made its approach based on
this collaborative relationship and its plans to grow in scale and
acquire lactic acid technology that it did not yet possess.
Structural reinforcement through the establishment of
AJINOMOTO PHARMACEUTICALS CO., LTD. and
external partnerships
The pharmaceutical eld was in a stage of intense competition
over the discovery of new drugs, such as antibody and molecular
targeted drugs, progressive globalization, and dramatic change,
such as the growth of companies through M&A and the sudden
rise of venture companies.
Within this environment, our Pharmaceutical Company
dierentiated from major manufacturers by advancing business
development as a specialty pharma
1
company. In April 2010,
when we transitioned from a virtual company system to a
business headquarters system, we split o our Pharmaceutical
Company and merged it with Ajinomoto Pharma Co., Ltd. (sales
and marketing) and Ajinomoto Medica Co., Ltd. (production
and distribution), our group companies in the pharmaceutical
eld, to form AJINOMOTO PHARMACEUTICALS
CO., LTD., which were capable of all functions from
development through to manufacturing and sales. After the
licensing of technology from Netherlands-based Norgine
B.V., AJINOMOTO PHARMACEUTICALS CO., LTD. set
gastrointestinal care as its main business area and in February
2012, it applied for approval to market and manufacture a new
oral bowel cleansing solution in Japan. In June 2013 it began
sales of MOVIPREP
®
, a preparation for colonoscopies and
colon surgery.
The focus on gastrointestinal care as a main business
area meant that there emerged an urgent need to implement
structural reform that dealt with the transfusion and dialysis
businesses, remnants from when it was the Pharmaceutical
Company. Although these two businesses made up a quarter of
total sales, they were recording losses. Therefore, in December
2012, we partnered with Yoshindo Inc., a generic drug
manufacturer based in Toyama, Japan, to establish the joint
venture AY PHARMACEUTICALS CO., LTD. (AJINOMOTO
PHARMACEUTICALS CO., LTD.: 49%, Yoshindo Inc.: 51%),
and these two businesses were transferred to the new company.
Although AJINOMOTO PHARMACEUTICALS CO.,
LTD. advanced structural reforms in this manner, difficulties
continued. In October 2015, we established EA Pharma Co.,
Ltd.
2
with Eisai Co., Ltd., and the companies agreed to integrate
The History of the Ajinomoto Group
III. Taking the First Step into the Next 100 Years
- 2. The Challenge towards Structural Reform and Creating Growth Drivers -
43
3. A rise in obesity and lifestyle-related diseases raised consumer demand for low-
calory products, and low-calory sweeteners began to be used in various foods, such
as sweets and beverages. Japan approved the use of sucralose as a food additive in
July 1999 and acesulfame potassium, which was developed by Hoechst AG (now
Nutrinova), in April 2000. In addition to this, the U.S. beverage giant The Coca-
Cola Company and major agricultural producer Cargill, Incorporated., launched
stevia onto the market in 2007. Sucralose in particular is approved for sale in more
than 80 countries around the world and it is being used in a wide range of products,
from sweets and beverages to processed livestock and seafood products, health
foods, and pharmaceuticals.
4. Ajinomoto Sweeteners Europe S.A.S., a sweeteners manufacturing and sales
subsidiary based in France.
5. In 2006 there were about 24,000 Japanese restaurants outside of Japan. In 2013,
this had grown to 55,000 (investigation by the Ministry of Foreign Aairs,
estimates by the Ministry of Agriculture, Forestry and Fisheries). According to
a survey conducted in 2014 by the Japan External Trade Organization (JETRO),
Japanese food was the most popular ethnic food in the world.
and concentrate AJINOMOTO PHARMACEUTICALS CO.,
LTD. s business and a portion of Eisai Co., Ltd. s business
related to gastrointestinal diseases into the new company.
The two companies combined their knowledge and expertise
with the goals of new drug discovery and overseas expansion
as Japan s largest manufacturer of specialty pharmaceuticals
for the digestive system and improved efficiency in business
operations. The new company was inaugurated in April
2016 with the aim of becoming a company that creates new
innovation. Subsequently, EA Pharma Co., Ltd. disposed of
its transfusion and dialysis businesses by selling shares in
AY PHARMACEUTICALS CO., LTD. to Yoshindo Inc., its
partner in the AY PHARMACEUTICALS CO., LTD. joint
venture, and it now aims to survive and grow as a specialist in
gastrointestinal diseases such as inflammatory bowel disease
and gastric ulcers.
In this way, in the pharmaceutical eld, we sold its
transfusion and dialysis businesses and attained collaborations
with other pharmaceutical companies to make its business
related to gastroenterological diseases into a strength.
Furthermore, we also realized structural reinforcement
by concentrating on businesses that leverage proprietary
technology such as pharmaceutical intermediates, cell culture
media and AminoIndex
®
.
Restructuring our sweeteners business in Europe
In our sweeteners business, centered on aspartame, we set a
basic policy of increasing specialization through reinforcement
of the structure of the bulk business and growth of the
consumer business. Over the FY2014-2016 Medium-Term
Management Plan, our target was to raise the specialty ratio
from the 49% in the FY2013 forecast to 57% in FY2016. In
the bulk business, a succession of new entrants into the market
3
from 2000 led to a difficult condition in which unit selling
prices fell, and structural reinforcement became urgently
needed issue.
As part of this structural reinforcement, in August 2015,
we decided to sell its sweetener business subsidiary in Europe
4
to HYET Holding B.V., a holding company established newly
by HYET Sweet B.V., an import and retail company in the
Netherlands, and all shares in the company were transferred
that October (an extraordinary loss of approximately 7.0 billion
yen).
As a result, we made the bulk business more robust by
consolidating the production of aspartame at the Tokai Plant
and achieved cost reductions, while advancing specialization
through expanded sales in the consumer business.
Terminating an instant noodle joint venture with
NISSIN FOODS HOLDINGS CO., LTD. in Brazil
In October 2015, we sold its share in NISSIN-AJINOMOTO
ALIMENTOS LTDA., a joint venture company for the
manufacture and sale of instant noodles in Brazil, to the
Brazilian subsidiary of NISSIN FOODS HOLDINGS
CO., LTD., its joint venture partner for 32.5 billion yen,
which terminated the joint venture. NISSIN-AJINOMOTO
ALIMENTOS LTDA. was established in 1972. We acquired a
55% share in MIOJO PRODUTOS ALIMENTICOIS LTDA.,
which had been founded in 1965. In 1975, NISSIN FOOD
PRODUCTS CO., LTD. joined as a joint venture partner, with
Ajinomoto
Co., Inc. and NISSIN FOOD PRODUCTS CO.,
LTD. both taking a 50% share.
The transfer of shares in NISSIN-AJINOMOTO
ALIMENTOS LTDA. was prompted by a proposal by NISSIN
FOODS HOLDINGS CO., LTD. Furthermore, the instant
noodles produced by the company were being sold under the
Nissin brand , so we decided to terminate the joint venture to
concentrate business resources in the seasonings business and
focus on further promotion of the Ajinomoto Brand .
(2) Cultivating new markets and acquiring technology
through M&As
Acquiring Windsor Quality Holdings, LP, a frozen food
company in the U.S.
In our FY2014-2016 Medium-Term Management Plan,
advancing specialty business was the basic focus of GROW,
which means cultivating growth drivers. Specically, we
intended to become a global top 10 class food company through
global development and the creation of new businesses that
leverage our food and amino acid technologies, and it was
crucial we realized this quickly in order to compete globally.
Therefore, we needed to evolve beyond developing everything
in-house and actively utilize external business resources. In other
words, we aimed to acquire business platforms, technologies,
and brands through precisely targeted M&A and alliances.
Global development was divided into the following
strategies.
Emerging markets such as Southeast Asia: Cultivate
markets with a focus on seasonings
Advanced countries in Europe and North America: Focus
on a product lineup that oers unique value originating
from Japan (develop Asian/Ethnic foods businesses
tailored to local markets, with a particular focus on frozen
and packaged foods)
In Europe and North America, the Asian food market was
growing amid increased interest in health, and there was a boom
for Japanese foods
5
in particular. Since 2000, we had been
The History of the Ajinomoto Group
III. Taking the First Step into the Next 100 Years
- 2. The Challenge towards Structural Reform and Creating Growth Drivers -
44
6. In frozen foods, “appetizers” refers to snacks and deep-fried products as a side
dish to eat while drinking, such as battered cheese and vegetables (onion, zucchini,
etc.).
7. Around that time, North America experienced a boom for Japanese-style ramen
noodles, particularly in urban areas.
8. Current Good Manufacturing Practice (the name given to the most recent
regulations for manufacturing and quality management for pharmaceuticals, etc.).
A quality management system regulated by the FDA (the U.S. Food and Drug
Administration) and applied to the manufacturing and testing of pharmaceuticals,
etc.
9. In the pharmaceutical industry, factors such as the “2010 problem” (in and around
2010, patents for various major pharmaceutical products, particularly established
low-molecular-weight drugs, expired at around the same time) and the promotion
of controls on healthcare costs led to companies outsourcing production functions
in order to survive. It was particularly common to subcontract active ingredient
manufacturing.
developing a full-scale frozen foods business in North America
with gyoza (Japanese-style dumplings), noodles, and rice dishes
as our main products. In 2014, we recorded sales of around
US$130 million (approx. 13.5 billion yen). In order to accelerate
this progress, in November 2014 we acquired Windsor Quality
Holdings, LP, a U.S. frozen foods company based in Houston,
Texas. The deal was worth US$800 million (approx. 87.0 billion
yen), which made it the biggest M&A in our history.
Windsor Quality Holdings, LP had seven production
locations across the U.S. and the top market share for Asian
foods, as well as a strong lineup of Mexican, Italian, and snack
food brands. It also had a solid business base within the U.S.
frozen foods markets for both retail and food service customers,
with approx. 80,000 retail stores handling its products, including
major distributors, and approx. 120,000 restaurants. The goals
of the acquisition were to instantly expand the scale of our
business by supplying our frozen food products through these
sales channels, and to become the clear No. 1 manufacturer of
Asian/Ethnic foods. In April 2015 we changed the name of the
company to Ajinomoto Windsor, Inc., and we have continued
to invest in improved production capabilities, which includes
increased production of frozen cooked rice products in 2016 and
production of frozen appetizers
6
in 2017. Over this period, we
made steady progress towards becoming a GGSC (see p.62),
such as by establishing Ajinomoto Toyo Frozen Noodles Inc., a
frozen noodle production company established as a joint venture
with Toyo Suisan Kaisha, Ltd., in April 2015 and selling its
products through Ajinomoto Windsor, Inc. sales channels from
October 2016
7
.
Gyoza
(Japanese-style dumplings)
Gyoza
(Japanese-style dumplings)
Chahan
(Fried rice)
Harumaki
(Spring rolls)
Acquisition of Althea Technologies, Inc., a U.S.-based
contract development and manufacturing company for
biopharmaceuticals to expand the biopharmaceutical
business
In April, 2013, we acquired Althea Technologies, Inc., a
contract development and manufacturing organization for
biopharmaceuticals based in San Diego, California U.S. to
accelerate specialization in our pharmaceutical peripheral
businesses. The deal was agreed for US$175 million (approx.
16.0 billion yen) and the company was renamed Ajinomoto
Althea, Inc.
Biopharmaceuticals are a kind of pharmaceuticals created
from biological sources, such as proteins, peptides, and nucleic
acids, through the use of biotechnologies including genetic
engineering. Biopharmaceuticals can be used to treat severe
diseases and are expected to be safer, oering high efficacy with
minimal side eects. At the time of the acquisition, the size of
contract development and manufacturing market was approx.
US$ 2.3 billion and expected to grow by over 10% per year on
average.
Founded in 1998, Althea Technologies, Inc. engages in
contract manufacturing and development for pharmaceutical
companies and biopharmaceutical formulation based on
quality controls in line with cGMP
8
. We worked to expand
the development and manufacturing services business for
biopharmaceutical by combining its propriety protein production
technology (Corynex
®
, see p.47) with Althea Technologies, Inc. s
business resources.
In addition, we acquired GeneDesign, Inc. in December
2016 in order to achieve future business growth. The M&A
was carried out to realize production synergies between
GeneDesign, Inc. s small volume multiproduct manufacturing
technology for oligonucleotide medicine which is expected
to grow largely in the future, and our proprietary AJIPHASE
®
mass production technology (see p.52).
Furthermore, in September 2011, our fully owned
subsidiary S.A. Ajinomoto OmniChem N.V., based in Wetteren,
Belgium, established Granules OmniChem Private Limited
through a fty-fty joint venture with Granules India Ltd.,
a manufacturer of active ingredients based in Hyderabad,
India. This deal responded to the accelerated trend
9
in which
pharmaceutical companies outsource the manufacturing of
active ingredients. We established the manufacturing site for
Ajinomoto Althea, Inc. (Recent photograph)
The History of the Ajinomoto Group
III. Taking the First Step into the Next 100 Years
- 2. The Challenge towards Structural Reform and Creating Growth Drivers -
45
10. Drug development is normally separated into multiple processes. The materials
used between the starting materials and the active ingredients are referred to as
intermediates.
11. Contract Development and Manufacturing Organization. Drug development
requires signicant sums of investment, so CDMOs rst appeared in the
U.S. in response to a trend by pharmaceutical companies to concentrate
business resources on drug discovery and clinical development. The increase
in biopharmaceuticals and the tightening of regulations regarding licensing
requirements for research and manufacturing facilities led to contracts
for formulation study and clinical trial material production in addition to
manufacturing.
pharmaceutical intermediates
10
in India, a country that oered
low manufacturing costs and was making rapid progress in
the pharmaceuticals market. The new company constructed a
plant in a special economic zone in the Visakhapatnam region
of the Indian state of Andhra Pradesh. The new plant began
production in July 2014.
Our pharmaceutical custom manufacturing businesses
started to operate under the umbrella brand of Ajinomoto Bio-
Pharma Services from October 2018 as a virtual CDMO
11
(Contract Development and Manufacturing Organization). Up
to then, each Group company or division in the pharmaceutical
custom manufacturing businesses had provided various services
independently, but now, the business has been unied and
is being operated through corporation between each Group
company and division. In June 2020, Granules OmniChem
Private Limited was made a fully owned subsidiary (Company
name: Ajinomoto Bio-Pharma Services India Private Limited)
and became an important part of Ajinomoto Bio-Pharma
Services.
Making Ajinomoto General Foods Inc. a fully owned
subsidiary
In April 2015, we acquired shares in Ajinomoto General
Foods Inc. (AGF) held a subsidiary of U.S.-based Mondelz
International, Inc., headquartered in Illinois, in a deal worth
approx. 27 billion yen and made it a fully owned subsidiary.
The goals of the move were to reinforce business structure in
line with our FY2014-2016 Medium-Term Management Plan
and thoroughly implement a Group-wide policy of expanding
into adjacent domains (launching products in areas that are
adjacent to existing products and developing into adjacent
markets). We worked to achieve these goals through the
creation of development and production synergies between
Ajinomoto
Co., Inc. and AGF centered around powdered and
processed products.
AGF was established in 1973 as a 50-50 joint venture
between Ajinomoto Co., Inc. and General Foods Corporation
in the U.S. and it boasted both marketing and technological
capabilities, which earned it the top share of the Japan s
S.A. Ajinomoto OmniChem N.V.
(Ajinomoto Bio-Pharma
Services EU)
Belgium
India
Japan U.S.
Former Granules
OmniChem Private
Ltd. which was
made a fully
owned subsidiary
in June 2020
Ajinomoto Co., Inc.
GeneDesign, Inc.
Ajinomoto Althea, Inc.
(Ajinomoto Bio-Pharma
Services US)
“Ajinomoto Bio-Pharma Services’ Network”
(Ajinomoto Bio-Pharma
Services Osaka)
Ajinomoto Co., Inc.’s Biopharmaceutical Manufacturing Technologies
Fermentation
Amino acids
Nucleic acids
Dipeptides
Amino acid
derivatives
Nucleic acids
derivatives
Fermentation, enzymatic conversion, chemical synthesis, AJIPHASE
®
, AJICAP™,
and bioconjugation technologies
The combination of diverse technologies enables the synthesis of a wide range of molecules.
Peptides
Oligonucleotides
Proteins
Conjugated
proteins
Fermentation
+
Enzymatic
conversion
Fermentation
+
Enzymatic
conversion
+
Chemical
synthesis
Oligomer
synthesis
Protein expression
Bioconjugation
Small molecules Large molecules
(The supply chain of pharmaceuticals)
Starting
material
Process
1
Process
2
・・・・・
Final
process
Active
ingredients
Formulation
Process
3
Pharmaceutical intermediates
Processing into drug form to be actually ingested/
capsule filling, processing into injectable form, etc.
Covered by the pharmaceutical custom manufacturing business
The Ajinomoto
Group
Figure III-4: Biopharmaceutical supply structure, manufacturing technologies, and areas covered by the pharmaceutical custom
manufacturing business
The History of the Ajinomoto Group
III. Taking the First Step into the Next 100 Years
- 2. The Challenge towards Structural Reform and Creating Growth Drivers -
46
consumer coee market (excluding canned coee). Despite
a change in our joint venture partner
12
, AGF s business grew
smoothly and in 2015, it concentrated on products such as stick-
sachet beverage products and expanded its range of beverage
products to include black tea and cocoa, and it also focused on
the commercial market.
However, after this acquisition, Mondel
ē
z International,
Inc. still owned the trademarks for AGF products such as
Blendy
®
and
MAXIM
®
, so AGF was using these under license
rst from Mondelz International, Inc., and then from
Netherlands-based Jacobs Douwe Egberts B.V. (JDE), which
had acquired Mondel
ē
z coee business. Therefore, in October
2016, we acquired all trademarks for all brands, which includes
Blendy
®
and
MAXIM
®
, from JDE for approx. 25.9 billion yen.
This not only removed the risk of licenses being removed,
but also prevented new product development and use of brand
logos without consent or licensing to other companies, enabling
us freedom to develop brand strategies.
Acquiring two Turkish food companies and amalgamating
three companies, including our local subsidiary
We have actively used M&As to cultivate new markets overseas.
We started our seasonings for food service use business
in Turkey in July 2011 with the establishment of Ajinomoto
Istanbul Food Sales Ltd. and in December 2013, we acquired
50% of shares in the Turkish food company Kükre A.
Ş
. for
around 60 million Turkish lira (approx. 2.9 billion yen). In
2012, the population of Turkey was around 75 million and
GDP per person surpassed US$10,000. We estimated that
the seasonings and packaged foods market in the country
was worth around 65 billion Turkish lira (approx. 3.2 trillion
yen), and the need for convenient seasonings and packaged
foods increased as economic development led more women to
enter the workforce in urban areas. There was also signicant
growth forecast for the future. Therefore, in its Medium-Term
Management Plans for FY2011-2013 and FY2014-2016, we
positioned Turkey and the Middle East as Rising Stars and
made Turkey business the key for further market cultivation in
the Middle East and Central Asia into a core strategy.
Kükre A.
Ş
. was a company headquartered in Eski
ş
ehir, a
city in the west of Turkey, and boasted a history of about 100
years. It manufactured and sold products such as seasonings
(table vinegar, fruit-based sauces) and pickles and its main
product series, Kemal Kükrer, was widely recognized in Turkey
as a premium brand. It also possessed a logistics platform
covering over 30,000 retailers across Turkey and had strong
sales capabilities for food service, nationwide mass retail
chains, and influential stores. Our equity participation in the
company enabled us to sell our new and existing products
through this network.
Following this, in April 2017, we agreed to acquire all
shares of another major Turkish food company headquartered
in Izmir, Örgen Gida Sanayi ve Ticaret A.S., along with the
trademark rights for its Bizim Mutfak (meaning our kitchen )
brand for 220 million Turkish lira (approx. 7.4 billion yen).
Örgen Gida Sanayi ve Ticaret A.S. manufactured and sold a
wide range of seasonings and foods, and we were especially
interested in its bouillon, powdered soup, menu-specic
seasonings, and powdered dessert businesses
13
.
Furthermore, we made Kükre A.
Ş
. into a fully owned
subsidiary in August 2017 and in July 2018, the three
companies of Ajinomoto Istanbul Food Sales Ltd., Kükre A.
Ş
.,
and Örgen Gida Sanayi ve Ticaret A.S. were amalgamated to
form Ajinomoto Istanbul Food Industry and Trade Limited
Company (Ajinomoto Istanbul Gida Sanayi ve Ticaret Limited
Sirketi). This new company aimed to double its sales to over
10 billion yen by FY2020 through the following policies.
Combine and strengthen the corporate functions of the
previous three companies and reinforce existing business
by leveraging brand, product lineups, marketing and sales
functions
Advance product development that leverages our
proprietary ingredients and technology and strengthen
exports to the Middle East and Eastern Europe
After the amalgamation, we created new packaging for
Kükre and Örgen brands with the Ajinomoto Group Global
Brand Logo (AGB, announced October 2017) and accelerated
awareness of the Ajinomoto Brand.
Taking a share in Promasidor Holdings Limited, a major
African seasonings and packaged foods company
In our FY2014-2016 Medium-Term Management Plan, we
positioned Africa as one of our Rising Stars. As of 2015, the
Powdered soup Örgen Powdered dessert Örgen
Pomegranate
sauce Kükre
Apple vinegar
Kükre
Bouillon Örgen
Menu-specific seasonings Örgen
12. In 1985, General Foods Corporation was acquired by Philip Morris International
Inc. (now Altria Group, Inc.) and in 1989 it was merged with Kraft Foods Company
under the Philip Morris International Inc. umbrella. Kraft Foods Company then
spun o its global divisions under the name of Mondelēz International, Inc.
13. Örgen Gida Sanayi ve Ticaret A.S.’s coee business was transferred to another
group company belonging to its parent company, Yildiz Holding A.S., through
a corporate split before the acquisition. Its ketchup, mayonnaise and spice
businesses were ended following the acquisition.
The History of the Ajinomoto Group
III. Taking the First Step into the Next 100 Years
- 2. The Challenge towards Structural Reform and Creating Growth Drivers -
47
continent was estimated to have around 1.2 billion people and
during 2011-2015, the average annual real GDP growth rate
for sub-Saharan Africa was high at approximately 5%. It was
predicted to become a huge economic block. As the middle
class grew, food demand was diversifying, especially among
younger people, and the need for simplicity and convenience
was rising, signicant growth in the seasonings and packaged
foods markets was expected.
We had already fully entered the continent in May
1991 through the establishment of West African Seasoning
Company Limited (WASCO), a subsidiary for small-unit
packaging and sales for AJI-NO-MOTO
®
, in Nigeria. After
Masatoshi Ito became President & CEO of the Company,
sales of AJI-NO-MOTO
®
grew as we established Ajinomoto
Foods Egypt S.A.E. (a sales company) in October 2011 and
AJINOMOTO AFRIQUE DE L OUEST S.A. (a plant for small-
unit packaging) in Cote d Ivoire in January 2012, and WASCO
set up branch offices in Cameroon in March 2014 and Kenya in
April of the same year.
In order to further accelerate development, in November
2016 we acquired a 33.33% share in Promasidor Holdings
Limited a major seasonings and packaged foods manufacturer
headquartered in the British Virgin Islands, for US$532
million (approx. 55.8 billion yen). Promasidor Holdings
Limited conducts business in 36 African countries with a
particular focus on ve countries – Nigeria, Algeria, Ghana, the
Democratic Republic of the Congo, and Angola. It produces
and sells products such as powdered milk, powdered beverages,
flavor seasonings, and cereals, and its brands are widely found
in markets throughout Africa. By combining our product
development and production technology capabilities with
Promasidor s robust sales foundation, we intend to strengthen
our business base in each region of Africa and establish a
presence as a leading player in African markets in the medium-
to long-term.
(3) Cultivating markets utilizing external resources in
Japan and overseas
Establishing a culture medium company for
biopharmaceuticals joint venture business in South Korea
We have used external business resources to dynamically
advance alliance strategies that cover both FIT (business
structure reform) and GROW (cultivating growth drivers).
In November 2012, we established a joint venture for
manufacturing and culture media for biopharmaceuticals in
South Korea as an alliance initiative covering GROW.
We had been leveraging its high purity amino acid
technology to sell serum-free culture media for animal cells
since 1987. As the global market for biopharmaceuticals
expanded, demand for the animal cell culture media used
in their production rose sharply and the new company was
established with the goal of establishing production and sales
locations in South Korea, one of Asia s leading culture media
consumption markets, to establish a stable supply structure and
capture new demand, particularly in Asia.
Our joint venture partner was Genexine Co., Ltd., a South
Korean bio-venture company advancing biopharmaceutical
research and development based in Seongnam Gyeonggi
Province, and from March 2011, it joined us in the development
of animal cell culture media.
The new company was established as Ajinomoto Genexine
Co., Ltd. with a starting capital of 35.7 billion South Korean
won (approx. 2.5 billion yen, Ajinomoto Co., Inc.: 75%,
Genexine Co., Ltd.: 25%), and it established a business location
in South Korea s Incheon Free Economic Zone. It started
production and sales in the rst half of FY2014.
Development and licensing of Corynex
®
technology that
makes pharmaceutical production more ecient
Corynex
®
is our proprietary technology that makes
pharmaceutical manufacturing more efficient. It achieves
high purity production of new proteins and peptides
through the use of glutamic acid-producing bacteria
Corynebacterium glutamicum
.
Heterologous proteins and peptides secreted by the
Corynex
®
system do not require processes such as cell
lysis and refolding
14
to maintain an active form. Also, as
Corynebacterium glutamicum
secretes a limited amount of host
cell-proteins and it does not produce endotoxins
15
, the Corynex
®
system makes it possible to obtain proteins and peptides
with very high purity and therefore simplify the purication
process. It is possible to manufacture proteins that are difficult
to produce with high density culture expression systems and/
or scale-up the other expression systems (biopharmaceuticals,
potential pharmaceutical target proteins, various enzymes, etc.).
We are expanding its business and making pharmaceutical
development more efficient by entrusting this technology to
Ajinomoto
Althea, Inc. in the U.S. and licensing it out to various
pharmaceutical companies.
Structural reform of the animal nutrition business –
Production outsourcing and company spin-o
We also advanced an alliance strategy that covers FIT (business
structural reform).
In 1965, we became a global pioneer in the
commercialization of feed-use amino acids and while we built
a global production structure from the 1990 s into the 2000 s,
price oensives by manufacturers from the U.S., China, and
South Korea led to a continuously difficult environment.
We implemented a series of reforms to counter this. One
of these was in November 2010, when we formed an alliance
with Inner Mongolia Fufeng Bio-technological Co., Ltd., a
14. When heterologous protein is overexpressed using expression systems such as
E. coli, the target protein is accumulated within a cell, so the cell body has to be
broken and the target protein is often expressed as insoluble aggregates called
inclusion bodies in a cell, so the cell has to be disrupted and dissolve the inclusion
body. As these processes possibly change the structure of the target protein, it
requires a process to be returned to original conformation (refolding).
15. A polysaccharide found in the outer membrane of Gram-negative bacteria (E.coli,
Salmonella, etc.). They can be found in any living environment and if they enter
the blood stream, they can cause fevers, septic shock, multiple organ failure, rapid
heart rates, and other symptoms.
The History of the Ajinomoto Group
III. Taking the First Step into the Next 100 Years
- 2. The Challenge towards Structural Reform and Creating Growth Drivers -
48
group company of China s FUFENG GROUP LTD. based in
the Hohhot Economic and Technological Development Zone
in China s Inner Mongolia Autonomous Region.
We started to sell feed grade threonine produced by the
company under our brand and production started on March 1,
2011. Prior to this, CHUANHUA AJINOMOTO CO., LTD.
(Sichuan Province) had made a voluntary transfer of all its
shares (70% share) in a joint venture to produce feed grade
lysine in China to SICHUAN CHEMICAL WORKS GROUP,
LTD., a local chemical company that was its joint venture
partner. CHUANHUA AJINOMOTO CO., LTD. had lost
ground to cheaper local products and in fall 2008, it stopped
production. Then in 2011, we spun o our animal nutrition
business (see p.59 - 60) to establish Ajinomoto Animal Nutrition
Group, Inc. (AANG) and through AANG, in August 2017,
we agreed a production outsourcing agreement for feed grade
lysine and threonine with Meihua Holdings Group Co., Ltd., a
major Chinese amino acids manufacturer based in the Langfang
Economic & Technical Development Zone, Hebei Province.
Through these deals, AANG reduced its own production of feed
grade lysine and threonine from 2018.
We also increased focus on new areas such as high value-
added products and AjiPro
®
-L (see p.88), and advanced external
outsourcing for products that were facing excessive competition
in a way that leveraged our brand, technological, and quality
control capabilities. Through these reform measures, we
reinforced the structure of the business.
Advancing diverse alliances
We have advanced a variety of alliances, not just ones that are
directly related to business.
In May 2012, we allied with Kao Corporation over a
health-related business (see p.56). The Society for Sustainable
Food and Lifestyles established by the two companies carries
out initiatives such as hands-on environmental education
programs for children in Kawasaki City, where both companies
have plants.
Additionally, we are actively advancing multi-faceted
collaborative projects with external partners, including business
and sales alliances in the health-related and pharmaceutical
peripherals elds, nutrition improvement projects in Japan and
overseas together with local governments and NGOs, and research
and development partnerships with universities and research
facilities. Below are some of our representative eorts (details of
each project below are provided in the corresponding articles).
Overseas governments and NGOs: The Ghana Nutrition
Improvement Project, Vietnam Nutrition System
Establishment Project
Local governments in Japan: Love Vege, measures tackling
metabolic syndrome and locomotive syndrome,
development of AminoIndex
®
, salt reduction project in
Iwate Prefecture
Universities and research facilities: Development of
AminoIndex
®
, on-site production of ammonia,
development of iPS cell culture media
Iwate Low and Proper Salt Intake Day,
Iwate Prefecture
Love Vege, Tokai Region
Vegetable intake
initiatives in
46 prefectures
Salt reduction
initiatives in
32 prefectures
Initiatives tackling regional nutrition issues
(salt reduction, vegetable intake)
Establishing a powdered soup production company with
NONGSHIM CO., LTD. in South Korea
In our FY2017-2019 Medium-Term Management Plan, we
positioned South Korea as one of our Rising Stars. In 2017,
it had a population of approx. 52 million and with a GDP per
person of over US$30,000, which was close to becoming a G7-
level country. We established a representative office in Seoul
in 1983 and formed Ajinomoto Korea, Inc. in 2003 to promote
sales of our products and provide technical support and sales to
food manufacturing and food service companies. From 2006,
we contracted Seoul-based NONGSHIM CO., LTD., a major
local instant noodle and snack foods manufacturer, to take over
sales of products that include flavor seasonings and VONO
®
16
brand single-serving powdered soups. NONGSHIM CO., LTD.
oered strong sales capabilities with supermarkets through its
Shin Ramyun brand of instant noodles, and we had already
built up a good relationship with the company.
Furthermore, in December 2017, we established a
powdered soup production company, Ajinomoto Nongshim
Foods, Co., Ltd., through a joint venture with NONGSHIM
CO., LTD. in order to accelerate expansion into the consumer
market. The new company had a starting capital of 13 billion
16. The unied soup brand for our overseas consumer foods business. It was
developed following the termination of a joint venture with Netherlands-based
Unilever N.V. (which had acquired U.S.-based CPC International Inc., owner of
the Knorr
®
brand, in 2000) which meant that we could only use the Knorr
®
brand
name in Japan. Currently active in South Korea, Brazil, and Taiwan.
The History of the Ajinomoto Group
III. Taking the First Step into the Next 100 Years
- 2. The Challenge towards Structural Reform and Creating Growth Drivers -
49
South Korean won (approx. 1.3 billion yen) with Ajinomoto
Co., Inc. owning 51% and Nongshim 49%. It established a
new plant in the Nongshim Boseong Distribution Center in
Pyeongtaek, Gyeonggi Province and in September 2019, it
began sales of locally produced VONO
®
products.
As of 2016, the powdered soup market in South Korea
was estimated to be worth 58 billion South Korean won
(approx. 6.0 billion yen) and from 2014 to 2016, it had a
stable annual growth rate of 7%. Single-serving powdered
soups accounted for about 40% of this demand and had a high
growth rate of 26%, and VONO
®
boasted an overwhelming
market share of over 70%. While the consumption rate for
single-serving powdered soups in South Korea is only about
one tenth of the size of Japan s at 0.6 times per year (based
on studies by Ajinomoto Co., Inc.), demand for bread as a
breakfast continues to grow, and the need for smart cooking
is rising due to an increase of people who lives alone and
women entering the workforce, so further market growth is
expected.
Alliances with Toyo Suisan Kaisha, Ltd. in North America,
Nigeria, and India
Instant ramen noodles originated in Japan and in 2012, the
global market had grown to 100 billion servings per year, and
it has maintained these levels since. We deal in this market,
primarily through instant noodle broths, and in December 2013,
we agreed an overseas business alliance with general foods
manufacturer Toyo Suisan Kaisha, Ltd.
One of the businesses agreed was a frozen noodle business
in North America. Frozen noodles (Yakisoba, launched in 2007)
had made a big contribution to the growth of our frozen foods
business (operated by Ajinomoto Frozen Foods U.S.A., Inc.)
in the region, which was worth over 10 billion yen in FY2013.
The frozen noodle market was expected to continue its growth
due to factors such as a Japanese food boom, so in April 2015,
we established a frozen noodle production company through a
joint venture (the Ajinomoto Group: 80%, Toyo Suisan Kaisha,
Ltd.: 20%) as Ajinomoto Toyo Frozen Noodles Inc. (ATFN),
headquartered in Portland, Oregon. During this period, we
had also acquired Windsor Quality Holdings, LP in November
2014 (see p.43), so ATFN constructed a frozen noodle
production plant (investment amount: approx. 2.6 billion yen)
with an annual production capacity of about 8,600 tons, and
construction was completed in June 2016. Sales of the plant s
products began in October through Ajinomoto Windsor, Inc.,
to club stores
17
and supermarkets, as well as frozen noodle kits
(frozen noodles and soup sets) to food service sectors. The
combination of Toyo Suisan Kaisha, Ltd. s advanced noodle
production technology, Ajinomoto Frozen Foods Co., Inc. s
production technology, and Ajinomoto Windsor, Inc. s strong
sales network and ability to develop products suited to local
tastes have made frozen noodles into a core product alongside
frozen rice products.
In addition to this, in December 2013 we also agreed to
establish instant noodle joint venture companies in Nigeria
and India. Nigeria is
an emerging country
considered as one of
Next Eleven
18
, with a
population of about 170
million. In May 1991,
we established WEST
AFRICAN SEASONING
COMPANY LIMITED
in the country (see p.47). In January 2015, we established
the joint venture company Maruchan Ajinomoto Nigeria Ltd.
(MAN) with a starting capital of 3.2 billion Nigerian naira
(approx. 2.0 billion yen; the Ajinomoto Group: 51%, Toyo
Suisan Kaisha, Ltd.: 49%). Headquartered in the capital Abuja,
it began to sell A&M (the rst letters of Ajinomoto Co., Inc.
and Maruchan) brand products in FY2016. However, factors
such as a slowdown in the Nigerian economy due to a decline
in oil prices resulted in us having to dissolve and liquidate the
company.
Furthermore, since the 2000 s, India has been experiencing
accelerated economic growth as one of the BRICS countries
and its population (1.34 billion in 2018) is expected to surpass
China s in the 2020 s. With this in mind, in December 2014 we
established MARUCHAN AJINOMOTO INDIA PRIVATE
LIMITED
19
(MAI), headquartered in Kanchipuram, Tamil Nadu
State. Afterward, MAI constructed a plant and began to produce
and sell A&M brand instant noodles in November 2016, with
the objective of establishing a presence by targeting younger
generations.
ATFN’s representative product
17. Membership-based volume retailers (that can be used by regular consumers)
that sell wholesale goods through large warehouse-like stores, which have
been gaining in popularity since the 1990’s. Also known as warehouse clubs or
wholesale clubs. The representative example is Costco Wholesale Corporation.
18. Next Eleven are eleven countries (Iran, Indonesia, Egypt, Turkey, Nigeria,
Pakistan, Bangladesh, the Philippines, Vietnam, Mexico, and South Korea)
which in 2005, investment bank Goldman Sachs predicted would become the
next big global presences following BRICS (Brazil, Russia, India, China, and
South Africa, predicted to experience rapid economic growth by the same bank in
2001).
19. Starting capital of 1.27 billion Indian rupees (approx. 1.93 billion yen), the
Ajinomoto Group: 49%.
AJINOMOTO INDIA PRIVATE LIMITED’s A&M brand instant noodles
The History of the Ajinomoto Group
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- 2. The Challenge towards Structural Reform and Creating Growth Drivers -
50
Accelerating Pakistani market cultivation through a joint
venture with the Lakson Group
In July 2016, we established a joint venture company
in Pakistan with the Lakson Group, an influential local
conglomerate, as a part of eorts to cultivate new markets
in Islamic countries through the overseas consumer foods
business under our FY2014-2016 Medium-Term Management
Plan. The cultivation of new markets through capital alliances
with local partners was a strategy that was also carried through
to the FY2017-2019 Medium-Term Management Plan and
implemented in Turkey and Africa in the same way.
The new company, Ajinomoto Lakson Pakistan (Private)
Limited (ALP), had a starting capital of 1.0 billion Pakistani
rupees (approx. 1.2 billion yen; Ajinomoto SEA Regional
Headquarters Co., Ltd.: 85%, Lakson Group: 15%) and a
headquarters was established in Karachi, Pakistan s biggest
city. It began by importing Halal-certied (a certication that
means followers of Islam can eat a product) seasonings from
PT AJINOMOTO INDONESIA and selling them in Karachi,
and gradually expanded its sales area.
The Lakson Group is engaged in business areas from
consumer goods and food manufacturing and sales through to
paper and packaging manufacturing, nance and insurance, and
IT services, and it has strong distribution capabilities to 180,000
retailers across Pakistan and a robust network of locally-rooted
distributors. It also oers a wealth of insight about Pakistani
consumers and markets, and has the ability to develop products
tailored to the local food culture and eating habits. This made
it a good joint venture partner for the rapid establishment of a
business base in the country.
As of 2013, Pakistan had a population of about 180
million, including a large amount of young people, and this
is predicted to grow to 310 million by 2050, which will make
it the most populous country in the Islamic world. Pakistani
people tend to eat at home more compared to other countries
and normal cuisine includes dishes centered on boiled chickpeas
(dal) and vegetables, so we expect a particular increase in the
use of flavor seasonings and menu-specic seasonings, which
are our specialty products. Additionally, it is geographically
located between the Southeast Asia and the Middle East, so
establishing a business location through a joint venture had
signicant meaning for our strategy in terms of shifting from
self-reliance.
Joint development of StemFit
®
cell culture media for
regenerative medicine with CiRA, Kyoto University
Since 1987, we have leveraged our expertise in amino acids to
sell cell culture media for manufacturing biopharmaceuticals.
Culture media, nutrient solutions in which microorganisms
or biological tissue are kept in an appropriate environment
for articial culture, can be broadly divided into serum
culture media, to which blood serum from animals has been
supplemented as a growth factor, and synthetic culture media,
which are formulated with synthetic chemicals such as sodium
bicarbonate and L-glutamic acid. Serum culture media usually
come with the risk of contamination by microorganisms that
were not intended to be cultured. In comparison, synthetic
culture media can be free from contamination as being
formulated with completely puried components.
In February 2014, we announced that we had successfully
developed StemFit
®
AK03, an iPS cell culture medium with
a higher level of safety, free of animal- and human-derived
components.
iPS cells (induced pluripotent stem cells), established by
introducing a minute number of genes into ordinary human
somatic cells, such as
a skin cells, have the
ability to dierentiate
into various tissue
and organ cells and
propagate indenitely
in culture, which makes
them an important
element in regenerative
medicine. The use of
patient s own cells
enables the realization of
regenerative medicine with low risk of immune rejection.
The joint research with Kyoto University (CiRA
20
, Kyoto
University led by Professor Shinya Yamanaka
21
) targeted
at regenerative medicine bore fruit as StemFit
®
AK03. The
product was developed through a combination of our analysis
and synthesis technologies and Kyoto CiRA s knowledge and
research results. The use of recombinant proteins synthesized
with biotechnology and the formulation optimized for cell
culture enabled the medium in which iPS cells and ES cells can
be stably propagated over the long term.
Conventionally, iPS cells have been cocultured with mouse
cells called feeder cells in a culture medium containing
bovine serum, because iPS cells need a scaold provided by
the feeder cells to attach the vessels. On the other hand,
A scene from the deal signing with the Lakson Group
Representative StemFit
®
products
20. An abbreviation of Center for iPS Cell Research and Application, Kyoto
University.
21. Winner of the 2012 Nobel Prize for Physiology or Medicine for his work on iPS
cells.
The History of the Ajinomoto Group
III. Taking the First Step into the Next 100 Years
- 2. The Challenge towards Structural Reform and Creating Growth Drivers -
51
StemFit
®
AK03
replaces it with a protein called laminin, which
makes the culture system completely free from animal-derived
components, which is ideal for the safety of culture media used
in regenerative medicine. On this point, the Pharmaceuticals
and Medical Devices Agency (PMDA), the pharmaceutical
regulatory agency under the Ministry of Health, Labour and
Welfare, agreed with us in an official consultation.
Since then, we have successfully commercialized
StemFit
®
AK03
through providing it to Healios K.K
22
and CiRA,
Kyoto University. On the sales side, it has been accelerating
development in collaboration with Takara Bio Inc. and
ReproCELL Inc. in Japan, and local sales distributors in the U.S.
October 2015: StemFit
®
AK02N, a culture medium for
basic research that has the same composition and
performance as StemFit
®
AK03, launched for research
institutions (successful commercialization)
July 2016:
StemFit
®
AK03N
launched in the U.S.
September 2016:
StemFit
®
Basic02
, an iPS/ES cell culture media for use
in basic research, launched in the U.S.
Alliance with T. HASEGAWA CO., LTD.
In May 2015, we agreed to a business alliance with T.
HASEGAWA CO., LTD., that concerned the research,
development and commercialization of natural flavors by
fermentation process. This was to aid the speedy realization of
the strategy in our FY2014-2016 Medium-Term Management
Plan to pursue Specialty , or in other words, be each country s
No.1 in deliciousness through assimilation with customers/
countries (regions) and be world No. 1 in seasoning
technologies: Deepen our ability to dene deliciousness in three
dimensions and design it.
Deliciousness is decided by taste, texture, and flavor
that complements these characteristics. Therefore, the goal
of our alliance with T. HASEGAWA CO., LTD., which oers
global top class materials and technologies as a flavor-focused
company, was to deepen the qualities of our deliciousness
technologies so that we can provide comprehensive value
through deliciousness that meets the needs of customers in each
country.
In order to raise the eectiveness of the alliance, we
also acquired 900,000 shares (2.11% of issued shares)
of T. HASEGAWA CO., LTD. treasury stock at a cost of
approximately 1.6 billion yen through a third-party allocation.
Opening the Client Innovation Center (CIC) as a space for
co-creation
As we were actively utilizing external capabilities (open &
linked) to swiftly advance globalization and shift to specialty
business, we also used a similar approach for R&D. In June
2018, we opened the Client Innovation Center (CIC), which had
been built in the premises of the Kawasaki Plant, as a place for
understanding and implementing open and linked innovation to
co-create new values.
The CIC is a two-storied ferroconcrete building with
a partial steel frame construction and a total floor area of
1,211.72m
2
. It was built on the site of our former main research
building at a cost of about 1.1 billion yen and oers the
following facilities.
An Introduction Space that uses video presentations to
introduce the history of Ajinomoto Co., Inc. and its eorts
to help resolve social issues with our technologies, among
other features
A Technology Space that introduces the 37 representative
technologies in 14 categories possessed by us, and our
creation of solutions to issues faced by society and
business partners
A Digital Ideation
23
Space that incorporates the latest ICT
(Information and Communications Technology) to share
and deepen discussion about issues faced by society and
business partners to generate hypotheses of new values
A Convention Hall where lectures and poster sessions can
be held to promote exchange and share details of leading-
edge research with internally and outside partners
Additionally, the building design is modelled on the shape
of a neuron, which embodies the image of various information
being communicated and passed around, leading to creation
24
.
As a precursor to this, we established the Value Creation
Group in the Research Institute for Bioscience Products &
Fine Chemicals in 2014. Since then, it had been introducing
our various research and development technologies to business
partners through individual visits. The CIC has been positioned as
a hub for promotion that aims to contribute resolutions to social
issues in the areas of Health and Well-being, Food resources,
and Global sustainability by further deepening relationships
with business partners developed through previous activities
with the objective of co-creating new value and new businesses.
At the same time, in FY2020 we plan to realize collaborations
The CIC design, which resembles a neuron
22. This involved joint research with RIKEN on treatments of age-related macular
degeneration through transplants of retinal pigment epithelium cells derived from
iPS cells.
23. In business, ideation means to come up with ideas based on certain themes or
concepts. It is a process designed to draw out originality and creativity.
24. The design was created by RUI SEKKEISHITSU Co., Ltd., which designed
buildings such as the Nagano Olympic Stadium and Doshisha University’s
campus.
The History of the Ajinomoto Group
III. Taking the First Step into the Next 100 Years
- 2. The Challenge towards Structural Reform and Creating Growth Drivers -
52
by concentrating the R&D functions of four Ajinomoto Group
companies in Japan at the Kawasaki Plant to create a hub that
strengthens co-creation within the Group.
(4) Innovating and strengthening R&D to support
specialties
Innovating R&D operations to accelerate commercialization
As we pursued our basic policy of with Specialty, it became
fundamental to possess leading-edge technological capabilities
in the bioscience and ne chemical elds, especially in areas
related to the amino acids that we have developed, and deliver
products that responded to consumers issues and needs.
Therefore, we also changed the way we carried out R&D based
on this policy.
Broadly speaking, the elds of consumer foods and
AminoScience became our main focuses and in terms of
organization, in October 2010, we reorganized into three
research institutes and one center (see p.58). Furthermore,
we also carried out the following measures to strengthen
commercialization based on corporate R&D results.
Revise evaluation systems:
Theme evaluation meetings and progress check
meetings with business departments as members
Organize and concentrate research themes:
Divide research into themes for Group-wide strategy,
themes on technology to be shared with the Group,
and themes for our future business and set time
deadlines for each theme, etc.
In the foods eld, where alignment between corporate
themes and business department themes went smoothly, we
combined our proprietary materials with consumer-orientated
product development to create new product brands such
as Cook Do
®
Koumi Paste, Cook Do
®
Kyo-no Ohzara
®
, and
Nabe Cube
®
(see p.84). In the AminoScience eld, we used
external alliances eectively to commercialize new technologies
such as AminoIndex
®
, a diagnostic method that detects health
risks from amino acid balance in blood, Corynex
®
, a technology
that makes pharmaceutical production more eective, and
AJIPHASE
®
, a service for contract manufacturing of peptide and
oligonucleotide active ingredients that uses new liquid-phase
synthesis methods (see p.47, p.53, and p.87).
In regard to recognition from outside of the Group, in
September 2011, we achieved the global No.1 spot in the
food, beverage and tobacco segment of U.S.-based Patent
Board Company s quarterly Patent Board Ranking
25
for
two consecutive
quarters, and the
evaluation showed
that our technological
capabilities are top
class worldwide
according to patent-
related indicators.
Additionally, in
FY2012, Ajinomoto
Fine-Techno Co., Inc. won a Porter Prize
26
for its innovations
such as Ajinomoto Build-up Film
®
(ABF), an interlayer insulating
material for semiconductor packages.
The Active Senior Project
The Active Senior Project, established by Ajinomoto Co., Inc.
in October 2013, is a cross-sectoral Group-wide initiative that
contributes to improved quality of life for the elderly through
food, to help them extend their healthy life expectancy
27
. At
the time, Japan had one of the world s highest average life
expectancies and the number of active seniors was on the rise,
especially among the baby boomer generation (approx. seven
million people) who had reached around 70 years of age.
However, the discrepancy between average life expectancy and
healthy life expectancy was thought to be around nine years
for men and 12 years for women, and the elimination of this
discrepancy has become a social issue.
Amid this, we were focused on tackling locomotive
syndrome
28
and we built up knowledge and expertise, including
through external collaborations, as shown below.
May 2012:
Health solutions business collaboration with Kao
Corporation
December 2012:
Participated in Japan Locomo Challenge Promotion
Conference established by the Japanese Orthopaedic
Association as a full member
March 2013:
Established the Active Senior Food and Nutrition
Club with amino acid material BtoB users, registered
dieticians, and others
November 2013:
Through a joint research with the University of
Nottingham in the U.K. and a joint research with
the Tokyo Metropolitan Institute of Gerontology
in Japan, it was demonstrated and published in the
Japanese Society for Amino Acid Sciences that our
proprietary leucine-rich essential amino acid mixture
Amino L40
®
has properties which achieve muscle
protein synthesis with a small dose and can be an
eective measure against sarcopenia
29
, one of the
forms of locomotive syndrome (the discovery was
25. A comprehensive assessment of the strength of companies in areas such as
technology, research and development that scores in six categories, including
U.S. patents granted and number of patent citations. Out of the six categories, we
were ranked No.1 out of 31 major global food companies in the categories of U.S.
patents granted, technology strength, and science strength.
26. A prize established in 2001 by the Hitotsubashi University Graduate School of
Business Administration in honor of Harvard University’s Professor Michael
Porter. It presents awards to companies that are realizing high protability
through innovation.
27. The amount of time a person can live independently without the need for daily
nursing care.
28. A condition that reduces movement ability by impairing the musculoskeletal
system, such as legs and the lower back, which results in the requirement of
nursing care or a high possibility of needing nursing care in the future.
29. A type of locomotive syndrome that lowers muscle strength through muscle loss
that occurs with aging. Among the elderly, it can cause the loss of physical ability,
a reduction in activity in everyday life, and the need for nursing care. One of the
causes is thought to be a loss of muscle protein synthesis ability that occurs with
aging.
Receiving the prize from Professor Michael
Porter at the ceremony (2012)
The History of the Ajinomoto Group
III. Taking the First Step into the Next 100 Years
- 2. The Challenge towards Structural Reform and Creating Growth Drivers -
53
based on the joint research
on the eects of amino
acids on the maintenance
of health among seniors
that has been carried out
with the University of
Texas Medical Branch at
Galveston in the U.S. since
1999).
The project has carried
out various activities with local
governments, which included joining eorts to support
recovery after the 2011 Great East Japan Earthquake through
coordination with the health promotion department of Watari
Town, Miyagi Prefecture, and the Red Apron Project to support
Tohoku over activities such as providing information and
exercise tips to prevent the locomotive syndrome to health
mate community leaders who promoted a better dietary habit
(later, these activities were taken over by THE AJINOMOTO
FOUNDATION, which currently supports locally-led
programs being held in each region of Japan). Furthermore, it
disseminates information through a multi-faceted approach that
includes sharing recipes, exercise tips, and other methods for
preventing locomotive and metabolic syndrome through the
website Karada-Gohan-Labo, launched in November 2013,
setting up sales spaces at retailers and drugstores based on the
theme of locomotive syndrome prevention, and publishing
150,000 copies of Protein Intake Recommendation to Prevent
Locomotive Syndrome, a booklet created together with the
Japan Dietetic Association.
Commercialization of AminoIndex
®
AminoIndex
®
, a service launched in April 2011, is a success
story that demonstrates that our amino acid research directly
contributed creation of a new business. It is known that a
balance of about 20 kinds of amino acid concentrations in
blood is maintained constant in a healthy human but that it is
disrupted by various diseases. AminoIndex
®
is an unique service
that can assess the probability of multiple types of cancer or
risk of lifestyle-related diseases based on amino acid balance in
blood by a single 5-ml blood withdrawal.
Previously, it was known that various health conditions can
alter concentrations of amino acids in blood. However clinical
use of amino acid balance in blood as biomarkers had been
limited to screening for inborn error of metabolism or evaluations
of the severity of liver disease because there were challenges such
as large individual dierences in blood amino acid concentrations
and the poor reproducibility of the analysis. We had been
measuring concentrations of amino acids in blood since around
the year 2000 and discovered the possibility of their use as a risk
assessment index to evaluate health conditions. Accordingly, we
made eorts to overcome the hurdles of individual discrepancy
and reproduction by combining technology for statistical analysis
of blood amino acid balance with technology for the rapid and
highly sensitive analysis of amino acids. In 2001, our research
and development team began to use Liquid Chromatography/
Mass Spectrometry (LC-MS) that can separate amino acids
based on dierences in the time it takes to pass through a column
tube
30
and dierences in molecular weight. Furthermore, they
developed pre-column derivatizing reagent that could realize a
rapid and highly sensitive analysis of amino acids. This shortened
the time for analysis of a single sample from 2 hours to about 7
minutes, enabled us to measure a huge number of samples in a
short period.
We started publishing the scientic results on the basis of
AminoIndex
®
technology in 2006 and in 2009, we started
releasing papers related to its use in assessing the possibility of
cancer. In November 2010, we agreed a joint business contract
to commercialize AminoIndex
®
with clinical testing company
SRL, Inc. Subsequently, we carried out large-scale clinical
trials focused on lung, stomach, colorectal, breast, and prostate
cancer with the Kanagawa Cancer Center and many other
facilities. In 2011, we announced that the balance of amino acid
concentrations in the blood of cancer patients is signicantly
dierent to that of healthy people and that these changes were
observed in cancer patients at an early stage of the disease.
In April 2011, it was veried that it was possible to
assess the probability of cancer at an early stage, leading to
commercialization under the AminoIndex
®
Cancer Screening
(AICS
®
) trademark. AICS
®
oers the following characteristics.
Can be taken as part of a health checkup as it only
requires a single blood sample
Can simultaneously assess the probability of multiple
types of cancer through a single blood sample
Can assess the probability of cancer at an early stage
The business contributes to cancer prevention in Japan,
which has a lower rate of cancer screening uptake compared to
Europe and North America.
In October 2011, a joint research with the Yokohama
City University Hospital Department of Obstetrics &
A product that enables AICS
®
and AILS
®
to be taken
at the same time through a single blood sample
Existing potential
for cancer
(ve types for men,
six types for women)
AILS
(risk of diabetes):
With in 4-year risk for diabetes
AILS
(risk of cerebral and myocardial infarction):
With in 10-year risk of brain stroke
and myocardial infarction
AILS
(amino acids level):
Condition of nutritional status
using amino acids in blood
Provide lifestyle improvement
guidelines by type based
on the results of the above
AILS
®
AICS
®
+
Figure III-5: AIRS
®
(AminoIndex
®
Risk Screening)
30 stick pack of Amino Aile
®
,
containing Amino L40
®
30. A tube with an inner diameter of 1-4mm lled with bulking agents such as
particulate or liquids.
The History of the Ajinomoto Group
III. Taking the First Step into the Next 100 Years
- 2. The Challenge towards Structural Reform and Creating Growth Drivers -
54
Gynecology and others revealed applications for three types
of gynecological cancer (cervical cancer, endometrial cancer,
and ovarian cancer), and in September 2014, a joint research
with the Osaka Medical Center for Cancer and Cardiovascular
Diseases revealed an application for pancreatic cancer.
We added AminoIndex
®
LifeStyle Diseases Risk Screening
(AILS
®
) services including a screening that assesses the risk of
diabetes in November 2017, and one that assesses the risk of
brain stroke and myocardial infarction in April 2019. These
AICS
®
and
AILS
®
were then combined in a package named
AminoIndex
®
Risk Screening
(
AIRS
®
).
Commercialization of AjiPro
®
-L
AjiPro
®
-L
, a rumen bypass lysine product for cows launched
in North America in April 2011, is the result of 20 years of
tenacious work by our research and development teams.
A cow is a ruminant animal that has four stomachs. When
lysine was given to a cow, most of the lysine would be broken
down in the rst stomach (rumen) and not be absorbed as a
nutrient. AjiPro
®
-L was developed to solve this issue. Our
researcher tackled this by:
A) Establishing evaluation technologies for its bio-
availability through animal testing and accumulating
data
B) Developing simple and eective screening methods that
could obtain the same results with animal testing
C) Developing granulation technology that protects the
lysine
As a result, they successfully developed AjiPro
®
-L which
ensures that lysine is dissolved slowly in the small intestine
after ingestion by the cow.
This product led to business expansion into an unexplored
market of amino acids for ruminants, and sales in North
America grew smoothly. Then, in November 2014, Ajinomoto
Heartland, INC. increased production capacity to 6,500 tons per
year from an initial 1,500 tons.
Commercialization of kokumi ingredient glutamyl-valyl-
glycine
In August 2014, we gained approval to use glutamyl-valyl-
glycine as a food additive. This is a kokumi ingredient found
in foods like scallops and authentically brewed soy sauce
that combines glutamic acid, valine, and glycine, three kinds
of amino acids. We denes koku as the substantial, broad
multisensory experience created by sensations related to the
taste, flavor, and texture of food (such as richness, complexity,
and body) and the way that these are balanced. Additionally,
kokumi is dened as an ingredient that does not have a taste
itself but enhances the koku of a food that it is added to.
In February 2010, glutamyl-valyl-glycine was reviewed by
the Flavor and Extract Manufacturers Association in the U.S.
and approved as Generally Recognized As Safe (GRAS). In
June 2012, the FAO/WHO Joint Expert Committee on Food
Additives (JECFA) assessed it as no safety concern. It is
currently approved in the three major regions of Japan, North
America, and Europe, and also in various other countries.
Just a small amount of glutamyl-valyl-glycine can enhance
koku and it is currently used in our consumer and industrial-
use products. In addition to helping to improve the quality
of products that are used with meat, dairy products, and
products that are used with edible oils, it also enhances the
deliciousness of products such as fat-reduced foods.
Conserving and recycling resources and realizing local
partnerships through resource-saving fermentation
technologies
The amino acids used in our products, including umami
seasoning AJI-NO-MOTO
®
, are manufactured at 18 plants in
nine countries around the world through a fermentation process
that uses raw materials that are easy to procure locally, such as
sugar cane, corn, sugar beets, and wheat. As populations grow,
demand for these ingredient crops is increasing as a precious
food resource, and also as biofuels and industrial materials.
Therefore, in consideration of the sustainability of society and
the planet, we developed the resource-saving fermentation
technologies shown below.
AjiPro
®
-L is not broken down
in the rumen of dairy cows
and is absorbed in the small
intestine
Ordinary lysine is
broken down by
bacteria in the
rumen and does
not reach the small
intestine
Ordinary lysine
AjiPro
®
-L
Microbes
Small intestine
Rumen
Figure III-6: AjiPro
®
-L, a lysine product with unique
technologies for protection and dissolution
Examples of products that contain glutamyl-valyl-glycine
The History of the Ajinomoto Group
III. Taking the First Step into the Next 100 Years
- 2. The Challenge towards Structural Reform and Creating Growth Drivers -
55
0
50
100
150
(%)
2005
Base year
123
28 28
25
2016 2017 2030
Goal
(FY)
A) Technologies that require less main raw materials by
maximizing fermentation productivity
B) Technologies that use less auxiliary materials (acids,
alkalis) and discharge less water
C) The introduction of biomass boilers that use resources
not being used locally as a fuel source, such as rice
husks and woodchips
D) Technologies that enable the self-production of a
portion of fermentation raw materials or that use
bagasse (brous matter that remains after the sugarcane
is crushed), from a biomass by-product as a fuel
In order to avoid competition between crops for amino
acid manufacturing and crops for food use, we are advancing
research and development into next-generation production
technologies that limit the use of food resources by using
ingredients such as cellulose derived from non-edible biomass
or grease and oils created from microalgae as the main
fermentation raw material.
With regards to the production of feed grade amino acids,
we introduced resource-saving fermentation technologies
in Brazil in March 2012, the U.S. in July 2013, and France
in January 2014. Since the end of 2011, manufacturing of
AJI-NO-MOTO
®
at our plant in Thailand has included a
process through which the plant makes its own molasses as
a raw material from cassava chips. In addition to this, our
Kyushu Plant is eectively using the biomass produced as
a by-product of fermentation by mixing it with fertilizer.
They are collaborating with Saga City, local retail stores,
agricultural cooperatives (JAs) and others to sell fruits and
vegetables grown with the fertilizer under the brand names
Kyushu Rikisaku Yasai
®
and
Kyushu Rikisaku Kudamono
®
.
Evolving palatability technologies
We have positioned global industry leading seasoning
technologies as a specic goal for the achievement of R&D
leadership, one of the growth drivers in our FY2017-2019
Medium-Term Management Plan. This strategy realizes growth
through the provision of solutions such as:
A deeper comprehension of biological mechanisms for
deliciousness
Limeira Plant (Brazil)
Woodchips
A sugar cane field
Technologies to control deliciousness
Technologies to optimize deliciousness for preferences in
local markets
Digital technologies to deliver the value of deliciousness
for individual consumers
Deliciousness comprises not only the basic tastes (sour,
bitter, sweet, salty, and umami), but also elements such as
koku, texture, and flavor. It is also aected by factors
such as a person s mental state at the time of eating. We seek
to understand the biological mechanism for deliciousness
through the analysis and synthesis technologies outlined below,
so we have been advancing the design and realization of
deliciousness, such as the flavorings, aromas, and textures that
we want to make, using proprietary materials.
Understanding the biological mechanisms for
deliciousness: Design statistical models that use taste and
olfactory receptors to understand the interaction of tastes,
flavors and textures and measure intraoral sensations.
Current
Partially
introduced
Goal
Sugar
Conventional producer strains
Improved producer strains
Bagasse
(brous matter that remains
after the sugarcane is crushed),
a non-edible biomass
Biomass saccharication technology
Sugar
Sugar
Figure III-7: Using less main raw materials
Figure III-8: Trends in water use per unit of production
The History of the Ajinomoto Group
III. Taking the First Step into the Next 100 Years
- 2. The Challenge towards Structural Reform and Creating Growth Drivers -
56
Technologies to control deliciousness: Acquire key
flavor and texture materials (in-house development +
external collaborations), build synthesis and application
technologies, ensure important materials can be produced
in-house
There are many examples of applications that take a step
forward from conventional product development, such as
understanding deliciousness that is craved worldwide and then
making this a reality with reduced salt, or achieving meat that is
more tender through the use of enzymes.
Development and introduction of AJI-PMap
®
We developed and introduced AJI-PMap
®
as a way to make
product development that is tailored to consumer preferences
quantiably more efficient and eective. The P stands for
preference, and the name describes how we are mapping
the characteristics of consumer preferences. With this map, it
is possible for product developers to understand the optimal
sensory characteristics that consumers prefer and to identify
clear words which they can use during quality design.
First of all, the product developers make a list of the sensory
characteristics that describe the product and could influence
consumer preferences. Then, several test products are prepared.
These test products are used to assess consumer preferences.
The preference data obtained is used to carry out statistical
analysis to get the map and identify the optimal sensory
characteristics for consumers based on their preferences.
Quality design that uses AJI-PMap
®
enables us to target all
consumers or to target segmented consumers based on factors
such as age or gender. Also, it contributes to a shorter product
development period because AJI-PMap
®
visualizes important
characteristics, including the optimal levels of these, to obtain
an optimal quality design.
This process was used when renewing the Knorr
®
Cup Soup
series in FY2016 and year on year sales grew. It has also been
External environment
Main components of deliciousness
Five basic tastes
Brain science
Experience and information
Occasion
Relationships
with people
+
FlavorFlavor
TasteTaste
TextureTexture
Umami
Saltiness
Sweetness
Bitterness
Sourness
Kokumi
Understand
the biological
mechanisms for
deliciousness
Build technologies
to control
deliciousness freely
Figure III-9: Understanding the structure of deliciousness
and deepening design capabilities
used in the quality design for HON-DASHI
®
and Nabe Cube
®
,
and development is spread between in our group companies in
Japan and overseas.
Alliance strategy in the pharmaceutical peripherals business
We have been dynamically advancing open and linked
innovation in R&D in the pharmaceutical peripherals business
as well.
In May 2012, we agreed a health solutions business
collaboration with Kao Corporation. The aim was to build a
health support platform that targets individuals by realizing
synergies between the healthcare-related products possessed
by Kao, the lifestyle-related disease prevention programs being
implemented by its subsidiaries, and our health-related products
and amino acid technologies.
In February 2016, we entered into an agreement (eective
from April 2016) with Nestlé Japan Ltd. to transfer our
concentrated liquid foods business and entrust sales and sales
promotion activities (sole agency agreement) for nutritional
care foods through healthcare channels. Nestlé Japan Ltd.
possesses Nestlé Health Science S.A. and by entrusting these
sales to Nestlé Japan Ltd., which has strong healthcare sales
channels, we transferred the nutritional care foods business
to the Consumer Foods & Seasonings Dept. (at that time) and
concentrate on development, production, and sales through
consumer channels. As a result of this alliance, AJINOMOTO
NUTRITION FOODS Co., Ltd., which had been in charge of
sales through healthcare channels, was dissolved at the end of
November 2016.
We pursued joint research in various forms, including joint
research with Massachusetts General Hospital in Boston, U.S.,
aimed at the global development of AminoIndex
®
, a prediction
service that screens amino acid balances in blood to detect
cancer and lifestyle-related diseases (2014-2016: verication of
eectiveness in dierent countries and among dierent races),
as well as implementation of the Ajinomoto Innovation Alliance
Program (AIAP, 2013-2019) which solicited innovative ideas
related to health and healthcare and then supported research
Knorr
®
Cup Soup (FY2016 renewal)
The History of the Ajinomoto Group
III. Taking the First Step into the Next 100 Years
- 2. The Challenge towards Structural Reform and Creating Growth Drivers -
57
on them. AIAP evolved from the Ajinomoto Amino Acid
Research Program (3ARP) that had been continuing since
2004. It solicited applications on a wide range
31
of themes each
year, and then funded a portion of research costs. More than 30
research projects had already been supported.
(5) Market cultivation and business area expansion
through global development
Business expansion in the Five Stars
In our FY2014-2016 Medium-Term Management Plan, as part
of eorts focused on achieving the global part of becoming
a genuine global company, we named the key countries of
Thailand, Vietnam, Indonesia, the Philippines, and Brazil as the
Five Stars, to achieve higher growth than the overall overseas
business. Our products and brands were widely known in
these countries while at the same time their economic growth
as members of BRICS and Next Eleven was at the center of
attention (see footnote on p.49).
At Ajinomoto Co., Inc., we have set social value targets
for volumes of meat and vegetable consumption through our
products as part of ASV (see p.63). In the Five Stars, our basic
strategy was to realize these targets through the promotion of
umami seasoning and developing and selling flavor seasonings
for local traditional home-cooked cuisine. Our 2020 targets for
these countries have been set as the consumption of 8.6 million
tons of meat and 5.5 million tons of vegetables per year. If we
could realize these goals, we estimated that we would increase
umami seasoning consumption by about 100,000 tons and
flavor seasoning consumption by about 90,000 tons compared
to those in FY2015, which would enable us to achieve the
sales target. In other words, our targets linked improvements
in dietary balance and eating habits in each country to business
growth.
Our basic strategy was as follows.
A) Cultivate seasonings rooted in each region and develop
new categories tailored to changes in eating habits and society
brought about by urbanization
B) Invest 35 billion yen to enhance and streamline facilities
that support growth.
For strategy A) in particular, we worked to attain growth
by becoming No.1 in Deliciousness through our proprietary
materials and technologies attained by enhancing the quality
of existing products and actively launching new products. We
pursue global development through the introduction of new
products such as menu-specic seasonings, expansion in areas
in which we sell such products, accelerating development in the
coee business area using Ajinomoto AGF, Inc. technologies,
and expanding sales to food manufacturers and food service.
Development in emerging countries – Turkey, Africa, Asia
In FY2011, we announced its plan to expand its foods business
into 30 new countries over the following six years by creating
rm footholds through the establishment of local subsidiaries.
In 2011, we set up business locations in quick succession,
establishing Ajinomoto Istanbul Food Sales Ltd. in Turkey
in July, Ajinomoto Foods Egypt S.A.E. in October, and
AJINOMOTO AFRIQUE DE L OUEST S.A. in December. We
began full scale cultivation of markets in the Middle and Near
East and Africa in conjunction with the reform of our European
business in July of that year.
We put Ajinomoto Istanbul Food Sales Ltd. in charge of
business in Turkey, Central Asia, Iran, Israel, and Jordan, with
a primary focus on applying sales expertise cultivated in South
America to develop its seasonings business.
Ajinomoto
Foods Egypt S.A.E. was headquartered in Cairo
and its sales region extended to Libya, Tunisia, Algeria, and
Morocco. We aimed to leverage cash sales expertise developed
in the Southeast Asia region to develop a seasonings and
packaged foods business in Egypt and across North Africa.
31. Includes nutrition, diagnosis, digital technology, biopharmaceutical
manufacturing and DDS (drug delivery systems) improvements, manufacturing,
storage and administration processes for cellular therapy products, food
processing and storage methods that can contribute to food sustainability, and
provision of solutions using proteins and amino acids.
Expand the scale of sales by FY2020
(compared to FY2012,
based on local currencies)
Vietnam
Philippines
Thailand
Africa and the Middle East
Europe and North America
Establish sales platforms and
strengthen product development
for frozen food products, instant
noodles, and food service channels
Accelerate expansion
into surrounding countries
centered on umami
seasoning
Five Stars Main Strategies
Rising Stars Main Strategies
Existing
core elds
Focus on strengthening and new growth in main
seasonings
Next generation
core elds
Introduce localized core food products for each
country, including cross-sectoral product expansion
Channel
expansion
Expand business from a business base of solid
traditional channels to include food service and
modern channels
Development
into surrounding
countries
Expand business to surrounding countries centered
on the Five Stars
Inorganic growth
Strengthen inorganic growth functions at regional
headquarters in ASEAN and Latin America
×3
×3
×3
×3
×2
Indonesia
Brazil
• Expansion of
upper and
middle-income
earners
• Modernize eating
habits and channels
Middle East
North America
Europe
Africa
Figure III-10: Five Stars and Rising Stars
The History of the Ajinomoto Group
III. Taking the First Step into the Next 100 Years
- 2. The Challenge towards Structural Reform and Creating Growth Drivers -
58
Both companies possessed the strength of being able to utilize
production sites in Europe and Asia. AJINOMOTO AFRIQUE
DE L OUEST S.A. was headquartered in Abidjan, the former
capital of Cote d Ivoire. It focused on the development of a
flavor seasonings and packaged foods business by establishing
a new repackaging plant (creating retail packaging for selling
AJI-NO-MOTO
®
imported from Brazil) and working to
penetrate 11 West African countries
32
. In the African region,
we had already established WEST AFRICAN SEASONING
COMPANY LIMITED (WASCO) in Nigeria in 1991, and while
we had started by cultivating sales through distributors, the
establishment of the two new companies enabled us to pursue
full-scale market cultivation through direct sales.
Furthermore, in Asia, we established AJINOMOTO
(CAMBODIA) CO., LTD. in September 2009. This started
by selling AJI-NO-MOTO
®
with support from AJINOMOTO
CO., (THAILAND) LTD. and then expanded into the flavor
seasonings, powdered beverages, and instant noodle businesses.
Following this, in August 2011, we established AJINOMOTO
BANGLADESH LIMITED in Dhaka, Bangladesh s capital,
which strengthened the cultivation of the South Asian market.
The cultivation of these two countries is an example of
expanding into adjacent domains centered on AJINOMOTO
CO., (THAILAND) LTD.
These countries and areas are forecasted to experience
further economic growth in the future and have lots of young
people. Furthermore, they have local cuisines which can
be made more delicious using AJI-NO-MOTO
®
, so they are
expected to support the growth of the Group in the 2020 s.
(6) Organizational reform focused on overall
optimization and streamlining
From a virtual company system to a business headquarters
system
In April 2010, after the appointment of Masatoshi Ito as
President & CEO, we abolished a virtual company system and
adopted a business headquarters system.
The in-house company system had been introduced in
FY2002 to strengthen the swiftness of decision making and
enhance prot-consciousness at each business. However, as
the transfer of authority progressed, it led to confusion and
duplication, which included foods and amino acids being
manufactured at the same site, and multiple research projects
being implemented in similar elds, such as health ingredients.
Factors such as the time taken to arrange collaboration that
crossed company boundaries led to a negative silo eect.
Therefore, the rst stage of FIT (structural reform) was to spin
o the pharmaceuticals company (see p.42) and return Food
Products Company and Amino Acids Company to a business
headquarters system, establishing a Food Products Division and
a Bioscience Products & Fine Chemicals Division. This made
it easier to realize collaborations between the businesses and
simpler to revise areas such as raw material procurement and
production structures on a global scale to optimize the overall
business and make management more efficient. Furthermore,
the major goal was streamlining and cost reductions, which
included the Wellness Business Division that had been
established in July 2009.
We also continued the China Business Strategy & Planning
Division which oversaw business in China, which was expected
to become a big market.
Concentrating R&D in two institutes and two centers
structure
As we moved from a virtual company system to a business
headquarters system, we also merged and concentrated our
research and development organizations.
Under the company system, R&D was carried out by 11
organizations – two research institutes, the Institute of Life
Sciences and the Research Institute for Health Fundamentals
and the Technology & Engineering Center that catered for
the entire company, as well as two organizations in the food
company (the Food Development & Technology Center and
the Food Product Application Center), ve organizations in
the amino acids company (the AminoScience Laboratories,
the Fermentation & Biotechnology Laboratories, the
Production & Technology Administration Center, the Fine
Chemical & Pharmaceutical Industrialization Center, the
Bio-Industrialization Center) and one organization in the
pharmaceuticals company (the Pharmaceutical Research
Laboratories). After the Pharmaceutical Company was spun o,
the 10 remaining organizations were concentrated into three
institutes – the Institute for Innovation (Corporate Sector), the
Institute of Food Sciences and Technologies (Food Products
Division) and the Research Institute for Bioscience Products
& Fine Chemicals (Bioscience Products & Fine Chemicals
Division) – and the Production & Technology Administration
Center which was responsible for production technology was
reorganized. Then, research personnel were reassigned into
organizations that researched elds that were important for our
growth strategy and organizations involved in areas such as
new product development.
Following this, in April 2015, the Production &
Technology Administration Center s food product-related
projects were separated to establish the Food Production &
Technology Administration Center under the jurisdiction of the
Food Products Division. Also, in April 2019, the Institute for
Innovation was abolished and its functions were transferred to
the Institute of Food Sciences and Technologies, the Research
Institute for Bioscience Products & Fine Chemicals, and the
Information Systems Planning Department to accelerate the
development of products and technologies in the health and
wellness elds.
Assimilation of the China Division
Going into the 1990 s, China experienced a continuous period
of rapid economic growth and in the aftermath of the global
32. Cote d’Ivoire, Mali, Burkina Faso, Togo, Liberia, Sierra Leone, Gambia, Senegal,
Guinea, Guinea Bissau, and Ghana
The History of the Ajinomoto Group
III. Taking the First Step into the Next 100 Years
- 2. The Challenge towards Structural Reform and Creating Growth Drivers -
59
nancial crisis in 2008, it maintained a high growth rate
compared to advanced nations through measures such as a four-
trillion-yuan stimulus package and monetary easing.
We had progressively deepened its expansion into China,
forming a joint venture with a local company in 1993 and
then taking a 100% share in this venture in 1996 to establish
Ajinomoto
(China) Co., Ltd. Under the company system, we
established the China Business Strategy & Planning Division
to oversee our four offices in Beijing, Shanghai, Hong Kong,
and Guangzhou, in an organizational structure that focused on
the characteristics of each area. Simultaneously we acquired
Amoy Food Ltd. (Hong Kong) in 2006. However, the operation
of Amoy Food Ltd. (Hong Kong) did not go smoothly due to
issues such as excessive facility renewal, the deactivation and
liquidation of multiple group companies in accordance with
our restructuring, steep rises in personnel, raw materials and
fuel costs, and worsening price competition with mainland
companies in areas such as Chinese ethnic sauces and frozen
foods.
As a result, in April 2012, we dissolved the China
Business Strategy & Planning Division and the China Foods
& Seasonings Department, and developed our business in the
country as a part of overall food product business under the
Food Products Division s China Division. In November 2018,
all shares in Amoy Food Ltd. (Hong Kong) were transferred
to CITIC Capital Asian Foods Holdings Limited, a company
owned by investment funds of CITIC Capital Holdings Limited,
a part of the influential CITIC Group in China. At the same
time, we acquired a 15% share in CITIC Capital Asian Foods
Holdings Limited to develop and expand new businesses in
China through the partnership. Additionally, development by us
alone was focused on the food service and food manufacturing
elds rather than the consumer eld, in order to secure
protability and realize further development.
Establishing the Wellness Business Division and
transitioning to a two-business headquarters system
In July 2009, before the transition to a business headquarters
system, the Wellness Business Division was established
by bringing together the Amino Acid Company s Amino
Acid Consumer Products Department, the Health Services
Development Department, the Medical & Nutrition Food
Business Department, and other businesses. This provided
unied management of health-related products such as amino
acid sports beverages, sleep improvement supplements, and
food products for the elderly, with the objective of improved
business growth. The new Wellness Business Division
comprised the Wellness Business R&D Planning Department,
which was responsible for planning and governing in the
division, as well as the Sports Nutrition Department, the Direct
Marketing Department, the Nutrition Care Department, and the
AminoIndex Department.
The health foods market had experienced continuous,
growth up to 2005, almost reaching a worth of 1.3 trillion yen
before the impact of regulations and the like caused it to level
out. However, factors such as the aging of Japan s population
had increased the social need for a variety of wellness services,
and it was a eld in which we could use the technologies
cultivated by us such as amino acids and plant-derived
materials, to provide high added value products. Therefore,
with a sales goal of 200 billion yen, we concentrated dispersed
business resources in order to accelerate business expansion by
speeding up product development in line with market demand.
In April 2015, the Wellness Business Division was
dissolved and we transitioned to a two-business headquarters
system that consists of the Food Products Division and the
AminoScience Division. Regarding the Wellness Business
Division s ve businesses (health foods, sports nutrition,
AminoIndex
®
, nutrition for the elderly, and overseas health
foods), the Sports Nutrition Department was moved into the
AminoScience Division, while the other four businesses were
successively absorbed
33
into the Business Strategy & Planning
Department of the AminoScience Division.
Although the Wellness Business Division was reorganized
into a new structure after a little shorter than six years, our
business in the healthcare eld progressed steadily and
developed into one of the pillars of our AminoScience business.
Spinning o the animal nutrition business
Our feed-use amino acid business, which handled lysine and
threonine mainly, experienced ongoing difficulties due to price
oensives from major U.S. companies and Chinese competitors.
As a result, in September 2011, we span o the business
and established it as a dedicated animal nutrition company,
Ajinomoto
Animal Nutrition Group, Inc. (AANG), with the
aim of responding to dynamic changes in the global business
environment. As well as realizing specialty through products
such as AjiPro
®
-L (see p.54), a lysine formulation for cows that
had started production in North America in April 2011, spinning
o the company also meant that production outsourcing
and alliances could be achieved faster, and structural reform
could take place. In November of that year, we carried out
an absorption-type split to transfer the feed-use amino acid
business to AANG and we also moved global manufacturing
and sales subsidiaries for the business under the AANG
umbrella.
Following this, AANG set up a regional headquarters
and sales company for the Asia Pacic region in Singapore in
April 2013, swiftly responded to rising demand by increasing
production of AjiPro
®
-L in North America, increasing
production of tryptophan in Europe, and launching production
of tryptophan in North America. At the same time, AANG
strengthening through a shift to added value products such as
AjiPro
®
-L
and feed-use valine. It is also advancing business
as it showcases values such as contributing to food resource
33. Although our health foods business in Japan was absorbed into the Wellness
Department in April 2015, in April 2016, it was revived as the Direct Marketing
Department and in April 2017, it inherited the Jino
®
cosmetics business from the
Specialty Chemicals Department.
The History of the Ajinomoto Group
III. Taking the First Step into the Next 100 Years
- 2. The Challenge towards Structural Reform and Creating Growth Drivers -
60
sustainability, or in other words, reducing the environmental
footprint of the entire feed/livestock business through feed-use
amino acids.
Rebuilding food production in Japan
– Implementing the MORE Project
We started the restructuring of the value chain of Japan food
products, as one of the key strategies in our FY2017-2019
Medium-Term Management Plan, by restructuring domestic
seasonings and packaged foods production, which was
announced in September 2017. The restructuring was advanced
under the in-house name of the MORE (Multi Optimized
Rebuilding Execution) Project. This project aimed to strengthen
the foundation for our Japan food products business in the
medium- to long-term through a total investment of 40 billion
yen in facilities through the construction of state-of-the-art
plants which use cutting-edge technologies such as ICT and
automation to dramatically increase efficiency. We concentrated
our ve existing seasonings and packaged foods production
sites in Japan into three sites with the goal of attaining world-
class production that can swiftly and flexibly respond to
customer demand.
Specically, in August 2017, we moved Ajinomoto
Packaging Inc. s Kanto Plant into the premises of Kawasaki
Plant (Kawasaki-ku, Kawasaki City) and renovated it to
increase packaging efficiency through automation and raise
quality control levels. Additionally, in November 2017, we
invested around 15 billion yen into our Tokai Plant (Yokkaichi
City, Mie) and started construction on a new plant for the
integrated manufacturing and packaging of seasonings and
other products (18,300m
2
, four-storied steel-frame structure).
This is to be completed within FY2020 and will bring together
the functions of Chubu Plant of Knorr Foods Co., Ltd. and
Ajinomoto
Packaging Inc. s Kansai Plant (Takatsuki City,
Osaka). The plant will become the newly established Ajinomoto
Food Manufacturing Co., Ltd. s Mie Plant. Then, in December
2018, we invested around 20 billion yen to start construction
on a new plant for the integrated manufacturing and packaging
of soups and other products (approx. 30,000m
2
, six-storied
steel-frame structure) on the premises of our Kawasaki Plant
(Kawasaki-ku, Kawasaki City). It is scheduled to be completed
in the rst half of 2021 and will bring together the functions of
Ajinomoto
Packaging Inc. s Kanto Plant, and Knorr Foods Co.,
Ltd. s Kawasaki Plant (Takatsu-ku, Kawasaki City).
During this period, in April 2019 we inaugurated
Ajinomoto
Food Manufacturing Co., Ltd. (starting capital: 4
billion yen) and tasked it with manufacturing all seasonings and
packaged foods in Japan. In FY2021, seasonings and packaged
foods production sites in Japan will be concentrated into three
locations under the new company – the Kawasaki Plant, the
Shizuoka Plant (Shimada City, formerly Knorr Foods Co., Ltd. s
Tokai Plant) and the Mie Plant. We will strive to dramatically
raise efficiency at each of the three plants to achieve as follows.
Improve EBITDA (Earnings Before Interest, Taxes,
Depreciation and Amortization; prot before tax with
interest, depreciation, and amortization added back)
by approximately 7 billion yen per year and improve
domestic seasonings and packaged food product business
prot margins by around 2% from FY2022 onward
Double labor productivity at plants in FY2021
Realize flexible production which excels at switching
between products
Integrate the technology departments of the three
companies to enhance technological capabilities through
the merging production technology and knowledge in
areas such as manufacturing and packaging, thereby
developing and accumulating technology that can realize
world-class production
Advance signicant improvements in capital efficiency by
shrinking ingredient and intermediate product inventories
through the syncing of manufacturing and packaging
to demand projections and improvements in logistics
efficiency, including through joint logistics with other
companies, to reduce inventory across the entire supply
chain.
Concentrating gift product businesses into Ajinomoto AGF,
Inc.
In April 2015, we acquired all shares in Ajinomoto General
Foods, Inc. (AGF) held a joint venture partner U.S.-based
Mondelz International, Inc. and made it a fully owned
subsidiary (see p.45). We subsequently pursued synergies
with AGF in a variety of areas and the rst of these was the
integration and concentration of our gift product businesses into
AGF through a transfer implemented in April 2016.
At the time, the gift product market was worth around 7
trillion yen and while the markets for traditional summer and
year-end gifts given in Japan continued to shrink, the market
for personal gifts (gifts other than traditional or corporate
gifts), accounting for about 60% of the gift product market,
was growing at an average 2% per year and was expected to
continue to grow. Integrating our gift product business enabled
us to fully utilize the assets of both companies to establish a
strong presence in the growing personal gift market through the
creation of food product, beverage and health gift products
The inauguration ceremony for Ajinomoto Food Manufacturing Co., Ltd.
The History of the Ajinomoto Group
III. Taking the First Step into the Next 100 Years
- 2. The Challenge towards Structural Reform and Creating Growth Drivers -
61
with specialty. In October 2016, we acquired all trademarks
for products such as Blendy
®
and MAXIM
®
(see p.46) which
enabled AGF to fully leverage the capabilities of top brands in
the consumer coee market (excluding canned coee) for gift
products.
In July 2017, AGF was renamed as Ajinomoto AGF, Inc.
and revised its product portfolio advancing the development
and deployment of gift products under the three key concepts of
individual portion and personal, premium and luxurious,
and health-conscious. The integrated provision of our
gifts, such as beverages, seasonings, and edible oils
34
, raised
awareness among fans focused on each eld of our overall
oerings, and attracted broader customers through combinations
such as Toss Sala
®
with Olive Oil. It also attempted business
structure reinforcement by raising the efficiency of the gift
product business operational and sales structures and the
restructuring of production and logistics locations.
Establishment of the Chushikoku Branch
In FY2009, our food products business sales structure
comprised ve major branch offices and four minor branch
offices. Within this, the Chugoku and Shikoku regions were
covered separately by the Chugoku Branch and Shikoku
Branch, both under the jurisdiction of the Osaka Branch.
However, due to factors such as the growth of retail chains
beyond regional boundaries and advances in the use of ICT,
it was judged that it would be more efficient to cover both
regions together and in July 2017, the Chushikoku Branch was
established.
The new branch was headquartered in Hiroshima and
included a structure comprising the Chushikoku Branch, the
East Chugoku Regional Branch (Okayama) and the Shikoku
Regional Branch (Takamatsu), with the objective of making
sales more efficient and detailed.
Establishment of the S&I Department
We established its Integrated Food Solutions business
(see p.55 - 56) as a growth driver under the FY2017-2019
Medium-Term Management Plan. The concept behind this
was to establish a BtoBtoC model (see footnote on p.41)
that covers packaged food product manufacturers, ready-
made meal business, food service and other customers, based
on deliciousness technologies that combine cutting-edge
technologies related to tastes, flavors and textures, with our
proprietary ingredients.
A specic attempt to achieve this was the establishment
of the Solution & Ingredients (S&I) Department within the
Food Products Division in April 2018. The use of ingredients
in the name not only refers to food ingredients, but also
components or ingredients that make up a whole. The S&I
Department was established by integrating the Food Ingredients
Department, which was responsible for industrial use products
such as Tencho (savory seasonings) and enzyme preparations
targeting packaged food manufacturers, and the Food Service
Department, which was responsible for products targeting
ready-made meal businesses and food service. The new
department aimed to expand business by helping customer
companies solve issues based on consumer needs (= BtoBtoC)
through deliciousness technologies and an enhanced customer-
focused sales structure in unison with each group company (such
as setting key customers, etc.).
In July 2018, the S&I Department was moved into the
foods research building on the premises of the Kawasaki Plant.
This enabled it to enhance its speed and ability to respond to the
needs of customers through closer collaboration with research
and development departments and we are further strengthening
activities with a view to concentrating R&D operations in Japan
within the Kawasaki Plant.
34. From 2009, J-OIL MILLS, INC. unied all consumer-use edible oils under the
AJINOMOTO
®
Brand (with the exception of FILIPPO BERIO
®
imported olive
oil and Rama margarine).
Representative gift products
3
ESG-Related Initiatives for Becoming a GGSC
- Forging Firm Relationships with Stakeholders
The History of the Ajinomoto Group
III. Taking the First Step into the Next 100 Years
- 3. ESG-Related Initiatives for Becoming a GGSC -
62
III. Taking the First Step into the Next 100 Years
- Aiming to Become a GGSC -
(1) Self-reform aimed at creating a better world and
group of companies
The Ajinomoto Group and the movement toward resolving
global issues
After the establishment of its FY2011 - 2013 Medium-Term
Management Plan, we declared its intention to become a
Genuine Global Specialty Company (GGSC) in pursuit of its
ideal group image (Specialty was added beginning with the
FY2014 - 2016 Medium-Term Management Plan). Here, the
word Genuine means achievement of the following in order
to achieve sustainable growth:
Contribute to future progress for humanity and the earth
Possess our own industry-leading technologies
Assemble a group of globally capable and diversied
talent
Achieve the business and prot scale of a global company
Meet global eciency standards to generate prot
With globalization advancing on all fronts ever since
the beginning of the 21st century, the entire world, including
corporations, has synchronized its eorts to resolve and
overcome the issues of global environmental preservation,
poverty, discrimination, and more.
January 1999 Secretary-General Ko Atta Annan of
the United Nations advocated for the
United Nations Global Compact at the
World Economic Forum at Davos (nine
principles divided among the three
categories of human rights, labor, and the
environment)
July 2000 United Nations Global Compact launched
( anti-corruption added for a total of 10
principles and four categories)
September 2000 United Nations adopted Millennium
Development Goals (MDGs) (Eight goals
1
for resolving problems that developing
countries face)
September 2015 Adopted Sustainable Development Goals
(SDGs) for 2030 as a follow-up goal
to the MDGs (17 goals and 169 targets
established in an attempt to resolve issues
not only in developing countries, but in
countries and regions all over the world)
The history of the Ajinomoto Group is lled with responses
and solutions to a number of challenges, which includes the
desire of our founder to improve the health of the nation s
people, the early expansion overseas, the postwar safety issues
surrounding MSG, the Kawasaki Plant strike, the energy-saving
measures taken after the oil shock, and the global environmental
issues and racketeering incidents of the 1990s
2
. It is with these
events in mind that we ocially joined the United Nations
Global Compact in July 2009. In addition, with regard to SDGs,
we selected goals that were intimately related to our businesses,
and we are advancing specic initiatives, such as those in Table
III-3.
Note: Footnotes 1. and 2. are on the following page.
Major items Included items Primary initiatives
Related
SDGs
Health and
well-being
Assurance of
product safety
・
Enhancing communication to share the
benets of umami and MSG
3
2
17
Contribution
to health and
nutritional
issues
・
Offering tasty food and amino acid
products as well as menus that nourish
health and well-being
・
Developing nutritional standards that our
products should meet
Rapid response
to consumer
lifestyle
changes
・
Advanced marketing efforts through the
leveraging of big data and consumer data
・
Building strategies to deal with small-size
markets (due to urbanization, etc.)
・
Properly delivering products, services and
information to customers
・
Expanding products and services to meet
the need for convenience, such as smart
cooking
Food
resources
Sustainable
materials
sourcing
・
Identifying important raw materials and
engaging in responsible procurement
(paper, palm oil, bonito, etc.)
17
12
13
15
7
2
6
14
Reduction of
food loss and
waste
・
Upgraded, optimal supply-chain
management (SCM) that makes use of
digital technology
Global
sustainability
Climate change
adaptation and
mitigation
・
Disclosing information in line with the
Task Force on Climate-related Financial
Disclosures (TCFD) (scenario analysis, etc.)
Contributing
to a circular
economy
・
Promoting the 3Rs of containers and
packaging (reduction of plastic waste, etc.)
・
Using biodegradable plastic/plant-derived
raw materials/certied paper
Conservation of
water resources
・
Maintaining forests for water sources
・
Developing wastewater treatment
technology
Foundation
for our
business
activities
Diverse talent
・
Promoting PDCA cycle using the
engagement survey
・
Reforming organizational culture to
promote diversity
・
Training and promotion of female
employees
・
Promoting health and productivity
management
5
8
Strong
corporate
governance
・
Strengthening corporate governance
system
Preparation for
intense global
competition
・
Value chain restructuring (production
system reorganization)
・
Promoting digital transformation
・
Rapidly commercializing research ndings
(R&D system reorganization)
Excerpt from “Ajinomoto Group Integrated Report 2019.”
Refer to p.36 to see which numbers correspond to which SDGs.
Table III-3: SDG initiatives
The History of the Ajinomoto Group
III. Taking the First Step into the Next 100 Years
- 3. ESG-Related Initiatives for Becoming a GGSC -
63
ESG initiatives: From CSR management to the Ajinomoto
Group Way and AGP
ESG investments originated with the Principles for Responsible
Investment advocated by the United Nations in 2006 and have
been a key concept for business management in the 2010s.
ESG is formed from the rst letters of Environment, Social,
and Governance (disclosure of information, independence of
external directors, legal compliance, etc.); it is also referred to
as non-nancial information. It is recommended that investors
consider companies ESG-related measures and systems when
deciding their investments. Nowadays, the ESG perspective has
come to have a direct impact on company ratings and investor
evaluation criteria. From a company s perspective, this is not
merely a matter of how one s image is perceived, but inuences
fundraising as well as survival and growth. Improvement in
the evaluation of one s company in the capital market requires
adapting one s actions.
We established the CSR Division in April 2005 and
declared CSR management
3
as one of three management
policies in our FY2005 - 2007 Medium-Term Management
Plan. We subsequently reviewed our management philosophy
on the occasion of our 100th anniversary in 2009 and
established the Ajinomoto Group Way. We also systematized
our philosophy, vision, and standards of business conduct in the
Ajinomoto
Group Principles (AGP) (see Figure III-11).
Through this process, we considered the 21st century
issues of human society to be resolved through our business
and chose to focus our management on health and well-being,
food resources, and global sustainability. We declared our
commitment to taking action and making contributions through
our businesses. These three issues were incorporated into our
FY2011 - 2013 Medium-Term Management Plan as our Group
Vision.
Formulating the Ajinomoto Group Creating Shared Values
We also announced the Ajinomoto Group Creating Shared
Values (ASV) alongside the FY2014 - 2016 Medium-Term
Management Plan in February 2014. In other words, we
rearmed the idea we have acted since our foundingthat the
creation of value which is shared with society and communities
(social value) leads to improved economic value and growth
as the foundation of our management. Accordingly, we
advanced initiatives that included the identication of the social
value generated by departments across the Company and the
establishment of numerical targets.
We began to hold internal ASV sessions featuring
lectures and discussions about ASV in 2015, and we had all
of our employees attend over the course of three years, which
thoroughly instilled the mindset of generating economic and
social value through our business activities. In addition to
policies for the various SDGs mentioned on p.36, we provided
products that contribute to balanced nutrition, lower salt intake,
and maintaining the health of the elderly, and we put the Eat
Well, Live Well. philosophy into action.
It was decided that expanding upon these eorts through
ASV would facilitate our becoming a Genuine Global
Company, which has consistently been our aspiration since our
FY2011 - 2013 Medium-Term Management Plan.
From AGP to Our Philosophy
In 2016, we reorganized the Ajinomoto Group Principles (AGP)
system and revised the Group Management Philosophy.
Prior to this, we made a change in 2012 (eliminating the
virtual company vision, among other things) in accordance
with the shift from the virtual company system to the business
headquarters system (April 2010) and another change in
accordance with the August 2014 revision to our Group
Standards of Business Conduct (standardization across the entire
Group and the addition of a new chapter on human rights).
However, the 2016 reorganization marked a major adaptation
of the AGP towards the global standard of Mission, Vision,
and Value based on the previously described announcement
about ASV, the United Nation s adoption of SDGs, and other
developments. In general, Mission refers to the societal duty
a company is meant to accomplish and its reason for existing,
Vision refers to its future ideal state, and Value refers to
the values shared throughout the organization. Our ASV, which
express seeking the co-creation of economic value and social
1. A) Eradication of extreme poverty and hunger, B) achieving the complete
implementation of primary education, C) promoting gender equality and improving
the status of women, D) reducing the infant mortality rate, E) improving the
health of pregnant women, F) preventing the spread of HIV/AIDS, malaria, and
other diseases G) ensuring environmental sustainability, H) promoting global
partnerships for development
2. On the 100th anniversary of our founding (2009), we announced our commitment
to resolving the 21st century issues of human society (health and well-being, food
resources, and global sustainability) through our businesses. We referenced the
MDGs during the formulation process as well.
3. We promoted initiatives through the ve perspectives of food, health and medicine,
food resources and the environment, personnel training, and partnerships, with the
goal of becoming a “corporate citizen” respected around the world.
Ajinomoto Group
Philosophy
Ajinomoto Group
Way
Ajinomoto Group
Standards of
Business
Conduct
Ajinomoto Group Standards of
Business Conduct
by areas
Standards and criteria
by companies and areas
Virtual company vision
Group company visions
Ajinomoto Group
Vision
Figure III-11: Ajinomoto Group Principles (AGP)
The History of the Ajinomoto Group
III. Taking the First Step into the Next 100 Years
- 3. ESG-Related Initiatives for Becoming a GGSC -
64
Integrated Report Sustainability Data Book
value through solutions for the issues of human society, were
considered similar to the Mission, but the strong conviction of
President & CEO Takaaki Nishii led to them being designated
as the Value. Co-creation was positioned not as an obligation,
but a natural course of action that we had pursued up until then
and would continue pursuing in the future.
In other words:
Mission - Contributing to the world s food and wellness,
and to better lives for the future
Vision - Becoming a genuine global food company
group with specialties guided by our leading-
edge bioscience and ne chemical technologies
And achieving these two goals entailed implementing:
ASV (Value) - Our steady commitment: With our
stakeholders and businesses, we help resolve society s issues,
leading to the creation of economic value
The values and approach towards our jobs required to
pursue our mission and vision were dened in the Ajinomoto
Group Way, the mindset and actions we must abide by were
distilled in our Standards of Business Conduct (currently
the Ajinomoto Group Policy), and our overall system, which
includes the corporate message of Eat Well, Live Well., was
established as Our Philosophy.
Conveying information about ESG policies and being
selected as SRI recommended brands
We have put eort into environmental measures and disclosing
ESG-related information.
2000 Began publication of the Ajinomoto Group
Environmental Report
2005 Began publication of the CSR Report
2012 Began publication of the Sustainability Report,
which combines the CSR Report and Environmental
Report
2016 Began publication of the Integrated Report along
with the Sustainability Data Book (SDB, renamed
from the Sustainability Report)
In 2019, we received the Environmental Communication
Awards of Excellence for Sustainability Reports from
the Minister of Environment for our Integrated Report
and Sustainability Data Book (awarded by the Ministry
of the Environment Government of Japan and the Global
Environmental Forum).
The many initiatives centered around our ASV are in an
advanced position among Japanese food companies with regard
to ESG evaluations, and we have earned global recognition for
our inclusion in various Socially Responsible Investment (SRI)
indexes.
2004: FTSE4Good Global Index
4
2010: MSCI ESG Leaders Indexes
5
2014: DJSI (Dow Jones Sustainability World Index)
6
However, the lack of clarity surrounding our top
management s commitments and our activity targets and
policies related to the United Nation s SDGs, as well as
various insuciencies noted in our Access to Nutrition Index
(ATNI)
7
, which include the lack of clear goals and an auditing
mechanism, the fact that malnutrition initiatives are not at
the core of our business strategy, and the insuciency of our
approach to the base of the economic pyramid (BOP) and
children, are all aspects that are considered to fall short of major
international food products companies, so specic initiatives
are desired going forward.
Taking part in the Global Compact and strengthening
involvement in SDGs
We joined the United Nations Global Compact in July 2009.
After the United Nations adopted SDGs, we claried 17 goals
and the relevancy of its businesses in its Sustainability Data
Book (see p.62) and other documents, taking into consideration
of SDGs in formulating the ASV and AGP as well and working
to instill them throughout the Group.
After Nishii assumed the position of President & CEO
in June 2015, the Group s support for and participation in the
United Nations Global Compact as well as our contributions
to the achievement of SDGs were declared on the website, in
various reports, in interviews, and so on. Support for the Global
Compact was also mentioned in the fundamental principles of
the Ajinomoto Group Standards of Business Conduct, declaring
our involvement outside and throughout the Group.
In addition, the social issues that are meant to be addressed
through the Group s businesses were linked with SDGs in
the FY2017 - 2019 Medium-Term Management Plan. It
systematically lays out the materiality, key issues, and items
that impact our ability to create value, opportunities and risks,
and the related initiatives, and it denes the path towards
sustainable growth through co-creation of social and economic
value (ASV).
IR Data Book
4. One of the globally representative SRI indexes established by FTSE Russell, which
was created by England’s Financial Times Ltd. and the London Stock Exchange. It
inuences the trends of investors who focus on ESG.
5. An index from the U.S.’s MSCI Inc. composed of companies that have earned high
SRI and ESG evaluations in various industries.
6. An SRI index jointly developed by the U.S.’s Dow Jones & Company, Inc. and
Swiss company RobecoSAM AG.
7. A rating that evaluates initiatives by 22 major global food and beverage
manufacturers to improve the nutritional state of consumers. Because it was
formulated with MDGs in mind, it has few items dealing with overnutrition in
advanced nations (see p.28).
The History of the Ajinomoto Group
III. Taking the First Step into the Next 100 Years
- 3. ESG-Related Initiatives for Becoming a GGSC -
65
(2) Environmental preservation initiatives
Installation of biomass boilers at MSG production facilities
One of our revolutionary initiatives for contributing to the
reduction of the burden on the environment was the installation
of biomass boilers at the Kamphaeng Phet factory managed by
AJINOMOTO CO., (THAILAND) LTD. in March 2009.
For MSG production, in addition to using the ample
blessings of nature from various regions, such as sugarcane and
cassava, we created a bio-cycle system in which we reuses
the nutrient-rich by-products formed during the amino acid
production process as fertilizer to cultivate locally grown rice
plants and elds where raw materials are grown.
The installation of biomass boilers in Thailand took this a
step further, replacing conventional heavy oil boilers and using
rice husks, produced in great quantities in the country that is one
of the world s leading rice-producing nations, as fuel instead
of wasting them. The rice plants that produce the rice husks
include plants grown with fertilizer created as a by-product of
amino acid fermentation. Cultivation of rice plants with by-
products generated during the production of AJI-NO-MOTO
®
and using the rice husks from those plants as factory fuel allows
an energy bio-cycle to be achieved. The installation of these
boilers also reduced the CO
2
emissions from the entire Group s
factories by 100,000 tons annually (approx. 5%).
Meanwhile, at the AJINOMOTO DO BRASIL
INDÚSTRIA E COMÉRCIO DE ALIMENTOS LTDA.
Laranjal Paulista Plant in Brazil, one of our main fermentation
sites, in order to use not only sugar cane, but its strained lees
(bagasse) as an energy source as well, biomass boilers were
installed in FY2012. In addition to raw sugar, sugar cane was
purchased from contracted farmers to provide a portion of the
raw materials (approx. 10% of the total). Externally purchased
bagasse and wood chips were added to the bagasse generated
from their own sugar cane juice extraction equipment to be
used as fuel. Besides providing approx. 70% of the steam
required by the entire factory, CO
2
emissions were signicantly
reduced, and using
the ashes created by
burning the bagasse
as a soil conditioner
enhanced both
raw material
procurement and the bio-cycle.
As of 2018, among the MSG production facilities that
we developed throughout the world, biomass boilers had
been installed in Thailand, Brazil, France, and Vietnam, and
installation of combined electrothermal-generation equipment
is underway.
Ajinomoto Frozen Foods Co., Inc.’s plan to completely
remove uorocarbon refrigerators
Ajinomoto
Frozen Foods Co., Inc. declared its intent to
eliminate uorocarbons, a commitment to the goal of replacing
the uorocarbon-type refrigerants used to refrigerate products
with natural refrigerants by 2020. This was another attempt to
integrate the company s businesses with its social contributions.
At seven of the company s factories in Japan (Kanto,
Chubu, Shikoku, Kyushu, Saitama, Osaka, and Chiba),
uorocarbons were included among the refrigerants used in
refrigerators. Because uorocarbons destroy the ozone layer
and contribute to global warming, these were to be replaced
with natural refrigerants.
Refrigeration equipment accounts for approximately
70% of energy consumption across all factories, so rather than
simply replacing them, there was a need to consider energy
conservation at the same time. Energy-saving refrigerators that
use ammonia and carbon dioxide were installed. There were
some demerits, such as the installation of water sprinklers for
use in the event of a refrigerant leakage and the inability to
maintain the machinery internally. This resulted in a signicant
burden, such as the return on investment being estimated at
20 years or longer, or 10 years even with the use of subsidies.
Nevertheless, there was no hesitation in deciding on their
installation for the sake of realizing ASV and the company
philosophy, which is We will contribute to the creation of
happiness for people and society through our frozen food
business.
By April 2020, there remained ve lines in the above-
mentioned factories in Japan that used uorocarbon-based
refrigeration equipment, and uorocarbon elimination eorts
were completed in the U.S. However, there were some countries
where the replacement was delayed due to various laws and
incidents (for example, in China, an explosion once occurred at
a factory that uses ammonia). Ajinomoto Frozen Foods Co., Inc.
is making other eorts to reduce fossil fuels and CO
2
emissions,
such as by using biomass trays (made of biomass plastics
created from raw materials such as corn starch).
The “F-LINE
®
Project,” a joint logistics project involving
six major food companies
The F-LINE
®
(Food Logistics Intelligent Network) project,
which involved external cooperation on environmental
measures, has achieved signicant results. F-LINE
®
is a
food company logistics platform agreed to by Ajinomoto
Co., Inc., Kagome Co., Ltd., The Nisshin OilliO Group, Ltd.,
Nisshin Foods, Inc., and House Foods Group Inc. as well as
Mizkan Holdings Co., Ltd. in February 2015. It was created in
AJINOMOTO CO., (THAILAND) LTD.: Biomass boiler equipment at
Kamphaeng Phet factory
The History of the Ajinomoto Group
III. Taking the First Step into the Next 100 Years
- 3. ESG-Related Initiatives for Becoming a GGSC -
66
response to deepening logistics issues, such as a chronic lack
of drivers and other logistics employees, increases in fuel and
transportation prices, and eorts at environmental conservation
such as reductions in greenhouse gases. Afterwards, the six
companies launched the F-LINE
®
Project (consisting of a
management group
8
and three working groups: joint shipping,
main route transport, and logistics systems) based on the idea
of competition through products and cooperation on logistics
and advanced consideration of the matter.
The joint shipping team began by advancing a joint
shipping plan for dry goods (products stored at room
temperature), and it initiated delivery operations in April 2016
in Hokkaido districts. The six companies combined the four
transportation hubs they had in the same area into two locations,
and the newly formed F-LINE CORPORATION (Head oce:
Kitahiroshima City, Hokkaido) provided joint storage and
shipping of the products. At the same time, the information
systems of the six companies were consolidated and logistics
information was centralized, and logistics tasks such as product
inventory control and arrangement of delivery trucks were
made more ecient. This increased the loading eciency of
individual trucks and lowered the number of deliveries, which
cut down fuel costs and greenhouse gas emissions while also
reducing the burden of receiving goods at delivery destinations.
Joint distribution of room-temperature goods was started in the
Kyushu area as well in January 2019, with Kyushu F-LINE Co.,
Inc. handling management of the new site, which is the largest
in Japan with over 40,000m
2
of oor space and is equipped with
cutting-edge automation and energy-saving equipment. During
this period, initiatives for decreasing the burden on drivers and
the environment as well as improving eciency were begun,
such as A) relay transportation using large trailers, B) relay
transportation with alternating drivers, C) making long-distance
shipment containers and distribution vehicles in-house, and
D) transportation of fruits and vegetables between East-West
gateways
9
.
In addition, with regard to the reconstruction of mid- to
long-distance main route transportation, beginning in March
2016, the Ajinomoto Group and Mizkan Holdings Co., Ltd.
began two-way railway transportation between eastern areas
(Kanto) and western area (Kansai). The outbound route (from
Kanto to Kansai) transports our products from our Kuki
Distribution Center to the West Japan Distribution Center;
the inbound route (from Kansai to Kanto) transports Mizkan
Holdings Co., Ltd. products from Mizkan Holdings Co., Ltd.
Kansai No. 2 Distribution Center to the Mizkan Holdings
Co., Ltd. Kanto Distribution Center. This brought the modal
shift percentage for the routes to approx. 50% total for both
companies, and it reduced CO
2
emissions by about 25%.
In April 2019, the distribution businesses of AJINOMOTO
LOGISTICS CORPORATION, Kagome Buturyu Service Co.,
Ltd., a portion of House Logistics Service Corporation, F-LINE
CORPORATION (Hokkaido), and Kyushu F-LINE Co., Inc.
combined to form the New F-LINE CORPORATION (Head
oce: Chuo-ku, Tokyo). The new company became a middle-
scale rm with capital funds of 2.48 billion yen (Ajinomoto
Co., Inc.: 45%; House Foods Group Inc.: 26%; Kagome Co.,
Ltd.: 22%; Nisshin Foods Inc.: 4%; The Nisshin OilliO Group,
Ltd.: 3%) and approx. 2,550 employees (as of April 2019),
with approx. 600 trucks and sales of 98 billion yen. While
joint transportation had been started in other industries as well,
8. An authorizing organization comprised of management members.
9. Round-trip transportation by a single truck between Tokyo and Osaka in which fruits
and vegetables previously transported individually via multiple vehicles from eastern
areas to Osaka and from western areas to Tokyo are gathered and reloaded in Tokyo
and Osaka, respectively.
The Nisshin
OilliO
Group, Ltd.
Nisshin
Foods Inc.
Kagome
Co., Ltd.
Ajinomoto
Co., Inc.
F-LINE
CORPORATION
(Hokkaido)
Kyushu
F-LINE
Co., Inc.
(Former)
AJINOMOTO
LOGISTICS
CORPORATION
Corporate name
changed
to F-LINE
CORPORATION
House
Foods
Group Inc.
House
Logistics
Service
Corporation
Kagome
Buturyu
Service
Co., Ltd.
Equity Equity Equity Equity Equity
Business
integration
Business
integration
Business
integration
Business integration
(excluding some
businesses)
Figure III-12: F-LINE CORPORATION launch scheme
(April 2019)
Distribution
center A
(Current) (After change)
Distribution
center B
Distribution
center C
Manufacturer
A
Manufacturer
B
Manufacturer
C
Distribution
center
Manufacturer
A
Manufacturer
B
Manufacturer
C
Client Client
Figure III-13: Joint transportation concept
F-LINE CORPORATION launch ceremony
The History of the Ajinomoto Group
III. Taking the First Step into the Next 100 Years
- 3. ESG-Related Initiatives for Becoming a GGSC -
67
establishment of joint logistics company was an initiative that
was signicantly ahead of its time.
Joint research and development for on-site production of
ammonia
Along with joint shipping through F-LINE CORPORATION,
the implementation of the world s rst on-site ammonia
synthesis system is our initiative for contributing to reductions
in both logistics costs and environmental impact. Tsubame BHB
Co., Ltd. (Head oce: Yokohama City, Kanagawa) was jointly
established in April 2017 with the UMI No. 1 Investment
Limited Partnership managed by Universal Materials Incubator
Co., Ltd. (UMI; Head oce: Chuo-ku, Tokyo), a fund
company focused on the basic materials industry and chemical
industry, and Professor Hideo Hosono, head of the Materials
Research Center for Element Strategy at the Tokyo Institute
of Technology. It is currently working to develop a small-
scale ammonia production system. The advantage it oers is
that it uses high-quality catalysts invented by a group led by
Professor Hosono through the support of the Japan Science and
Technology Agency (JST).
Ammonia is an important chemical compound that serves
as a nitrogen source, and its gross annual global production
amount exceeds 160 million tons, and 80% of this amount
used as fertilizer ingredients, with the remaining 20% used for
food products, medical products, and specialty chemicals. For
ammonia production, the Haber-Bosch process (HB process)
invented over 100 years ago is the primary method used, but
over-concentration and mass production at large-scale plants
that can withstand the high-temperature, high-pressure reactions
of the HB process is inevitable. Also, in addition to the high
capital investment, there is the disadvantage of high shipping
costs piling up from the limited number of production sites.
To solve this issue, Professor Hosono and his collaborators
utilized JST s strategic basic research program, to discover and
invent a new catalyst that allows for highly ecient ammonia
synthesis under low-temperature and low-pressure conditions.
This makes production at small-scale plants possible and has
brought us closer to achieving on-site production of ammonia,
in which the necessary amount of ammonia is produced at the
locations where it is needed.
We use large amounts of ammonia as an auxiliary
ingredient in the production of glutamic acid and many
other amino acids, and we have implemented joint
development related to practical applications with a focus
on the new technology developed by Professor Hosono and
his collaborators. If on-site production of ammonia can be
achieved, we can improve cost competitiveness and reduce both
the energy consumption due to shipping and the impact on the
environment.
We plan to introduce practical applications of on-site
production of ammonia at fermentation plants both in Japan and
overseas around 2021. In the future, we hope to coordinate with
a variety of partner companies and work to expand applications
to agricultural fertilizers and so on so that we can contribute to
society.
(3) A prosperous coexistence with society
Conclusion of naming rights contract for the National
Training Center
In March 2003, we concluded a naming rights contract
10
with
Tokyo Stadium. It is the rst contract with regards to a naming
right for public facilities in Japan. This has led to the main
stadium at the facility being named AJINOMOTO STADIUM
11
,
with the second eld on the same site being called
Aminovital Field (the neighboring west eld has been called
AGF Field since March 2019). The contract also established
support for facility management costs, improvements to
popularity among the young generations, and so on, which
helped to create a new image for the Brand.
Based on these results, in May 2009, we acquired
the naming rights to the National Training Center (Kita-
ku, Tokyo), the nation s training facility for top athletes
that was opened in January 2008, and named it the
Ajinomoto National Training Center
(nicknamed the
Ajinomoto TRESEN
12
). We also acquired the naming rights to
the nearby state-owned Nishigaoka Soccer Field in May 2012,
naming it Ajinomoto Field Nishigaoka.
The Ajinomoto TRESEN was constructed based on the
Sports Basic Plan. It is managed and operated by the JAPAN
SPORT COUNCIL (JSC) and primarily run by the Japanese
Olympic Committee (JOC). It was designed based on three
principles for improving competitive abilitytraining,
nutrition, and restwith the goal of improving the overall
competitive strength of Japan s top athletes. It consists of the
Indoor Training Center, Track and Field Training Area, and
Event marking the founding of Tsubame BHB Co., Ltd.
10. A contract that allows a company to obtain the rights to add a brand name to a
public facility in exchange for bearing the management costs of the facility, such
as with sports facilities. It was rst implemented in the U.S. around the latter half
of the 1990s. Because the facility is public, the contracted company is asked to
maintain the contract for a long period of time and committed to improving its
image.
11. A Tokyo Metropolis’s multi-purpose sports facility completed on the former site
of aireld in Chofu City, Tokyo in 2001. It is used for various events and is the
home ground for F.C.TOKYO and Tokyo Verdy of the J. League football league.
12. Management and operations are all handled by the JAPAN SPORT COUNCIL
(JSC), which operates the Japan Institute of Sports Sciences (JISS).
The History of the Ajinomoto Group
III. Taking the First Step into the Next 100 Years
- 3. ESG-Related Initiatives for Becoming a GGSC -
68
Indoor Tennis Courts, training areas separated by sports in
accordance with International Sports Federation standards,
as well as an Athlete s Village equipped with a dining hall
and lodging facilities. This allows for athletes to engage in
concentrated and sustained enhancement activities all at a
single location.
SAKURA Dining (nicknamed the Kachimeshi
®
Dining
Hall), established within the center s nutrition-managed dining
hall, aims to help athletes attain the body condition they need
by having them think about not what they will eat, but what
they are eating it for.
In May 2017, we renewed our naming rights through the
end of March 2025 and committed ourselves to supporting
athletes long-term. Moreover, in December 2019, we obtained
the naming rights to the Indoor Training Center East,
which was newly opened as a joint facility for Olympic and
Paralympic sports.
Support for the Japan’s Olympic and Paralympic
delegations
We concluded a partner contract with JOC in February 2003
and began the VICTORY PROJECT
®
, which enhances support
for athletes, with JOC in June of the same year. At the time,
because amino VITAL
®
was the only contract category covered,
it served as an initiative for promoting the popularization of
amino acids. Since the 2004 Summer Olympics in Athens,
members of the VICTORY PROJECT
®
have been coming to
sports sites and lending intensive support to all the teams
representing Japan.
From 2009, seasonings, soups, sweeteners, and frozen
foods were added to the contract categories.
In 2016, we concluded a Tokyo 2020 Olympic/Paralympic
Games partnership contract
13
. We provide the Kachimeshi
®
nutrition program, which consists of foods and amino acids
prepared with HON-DASHI
®
, amino VITAL
®
, and other products,
to eight teams, including swimming, badminton, karate, and
ve-person soccer (blind football), in addition to individual
athletes, including gure skater Yuzuru Hanyu, competitive
swimmer Daiya Seto, table tennis player Mima Ito, badminton
player Nozomi Okuhara, and Paralympic track-and-eld athlete
Atsushi Yamamoto.
SAKURA Dining
Support entails repetitions of cycles in which information
and education are provided. The athletes get to personally
experience Kachimeshi
®
, apply it during their enhancement
periods, and then utilize it during actual competitions. Plans
are proposed to solve specic issues, each athlete is facing, to
help them achieve their goals, and nutrition intake strategies are
provided for actual competitions as well.
In the case of competitive swimmer Daiya Seto, his goal
was attaining representative rights for the 400m individual
medley at the 2016 Summer Olympics in Rio de Janeiro and
earning the gold medal, and he was severely restricting his food
intake in order to obtain a light frame with little resistance.
As a result, he didn t have enough energy during practice,
and his condition deteriorated. In February 2016, a member
of the VICTORY PROJECT
®
whom Seto consulted about this
issue made plans to improve the nutritional makeup, amount,
and timing of meals and supplementary meals. This led to
an immediate improvement in Seto s condition, helping him
recover his form, and he earned representative rights at the
qualifying trial in April, earning a bronze medal in a splendid
display at the 2016 Summer Olympics in Rio de Janeiro in
August. Afterwards, our VICTORY PROJECT
®
further enhanced
its support of Japan s competitive swimming representatives
with a focus on Seto in preparation for the Tokyo 2020 Olympic
Games. The formulation and implementation of an amino
acids-centered nutrition strategy that incorporates cutting-
edge nutrition science contributed to a reliable improvement
in competitive ability. There are few examples of a company
implementing such initiatives either in Japan or overseas, and
we have attracted attention not only from Japanese consumers,
but also the sports elds of various countries.
13. We are an ocial partner of the Tokyo 2020 Olympic and Paralympic Games and
the JOC/JPC (cooking condiments, dehydrated soup, amino acid based granules,
prepared frozen foods and coee beans).
National Training Center - West
National Training Center - East
The History of the Ajinomoto Group
III. Taking the First Step into the Next 100 Years
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69
Introducing Kachimeshi
®
to consumers
Based on the results from providing Kachimeshi
®
to these kinds
of top athletes, we began an initiative for consumers as well in
2013.
First, in July of the year, we published the recipe book
entitled The Food Program for Japan Olympic Athletes:
Bolstering the Next Generation through Kachimeshi
®
Recipes
(Shogakukan Inc.). And in 2016, Let s Make Kachimeshi
®
!
was newly added to the integrated site ,
which made the following content available:
As the basics for making Kachimeshi
®
for the family: A)
ensure you get enough protein to build a healthy body,
B) get plenty of vegetables to maintain your body s
condition, and C) eat soup, which is easy to make and
allows everyone to get the required ingredients and
nutrients
Features that include tips for simple ways to prepare
Kachimeshi
®
,
recommended menus and
nutrients depending on
your goals, and
Kachimeshi
®
meals eaten
by top athletes
The section on goal-
based nutrition provided
recipes supervised by certied
nutritionists based on dierent
objectives, including content
aimed at students involved in
school sports on how to get their
Kachimeshi
®
Concept
Menu items are chosen based on what one is eating for rather than what one eats.
Kachimeshi
®
is a practical nutrition support program to help athletes win.
The “Five Rings” refer to the
ve dishes one sees on the table.
Eating a balanced meal
using the “Five Rings”
is the fundamental paradigm
for meals.
The “Five Rings Strategy” for Food Fundamentals
Food should be enjoyable, make you happy,
and be shared with everyone.
Soups are vital!
How umami works:
Useful for digestion and
protects the stomach and
intestines
Stoking the Appetite: The “Soup Strategy”
The Password for Athlete’s Food: “MAGONIWAYASASHII”
The foods have a rich variety of
colors and are visually appealing,
whetting the appetite
Kachimeshi
®
Technique 1
Kachimeshi
®
Technique 2 Kachimeshi
®
Technique 3
Meals and supplementary meals are recommended to eat with timing and purpose in mind.
Utilizing umami
Beginning your meal with
a soup with a lot of umami
can prepare your stomach
to start digestion.
アミノ酸
糖 質
Protein
Vitamins and minerals
Carbohydrate
body in shape to win in sports, and content focused on students
studying for entrance examinations (health management,
pre-exam preparation). It also incorporated videos and other
contents.
To encourage the spread of this information, we ran two
types of online advertisements in February 2018 with a focus
on websites with many mother viewers. By engaging in trial
and error, which involved eorts such as utilizing popular
sports athletes, we increased our view counts. We promoted
our relationship with top athletes by making full use of social
media sites such as Twitter, sending out messages of support
to coincide with matches, and other eorts, achieving a 60%
awareness rate among the mothers of junior high and high
school students in 2019. Moreover, we also tried to hold a soup
recipe contest and other participation-type events, and we plan
to strengthen our PR aimed at children.
Kachimeshi
®
promotions in stores Kachimeshi
®
brochure aimed at consumers
Figure III-14: Kachimeshi
®
concept explanatory materials for athletes
The History of the Ajinomoto Group
III. Taking the First Step into the Next 100 Years
- 3. ESG-Related Initiatives for Becoming a GGSC -
70
In-store promotions that were implemented through
coordination between branch oces and retailers throughout the
country have also played a signicant role in raising awareness
of Kachimeshi
®
. Our eorts to develop these measures
into proposals for solutions to the nutritional issues, each
municipality is facing, led to the number of participating stores
eectively rising to 60,000 in FY2019, a major expansion.
We are working to raise awareness in a variety of ways,
including a Kachimeshi
®
classroom for elementary and
junior high school students, a Kachimeshi
®
study session in
collaboration with sports associations, awareness-raising
activities that include briengs at nationwide nutritionist
seminars, getting major restaurant chains to oer Kachimeshi
®
menu items by appealing to the food service industry, and
providing Kachimeshi
®
menu items at dining halls for
employees and students.
Spreading Kachimeshi
®
from Japan to the world
Additionally, in 2018, the members of the VICTORY PROJECT
®
gradually began to implement the following kinds of activities
to spread Kachimeshi
®
around the world.
Thailand: Supporting the women s national volleyball team
Indonesia: Supporting the competitive swimming
representative (1 athlete)
Singapore: Supporting the national competitive swimming
team
The Philippines: Supporting the karate representative
(1 athlete) and pole vault representative
(1 athlete)
Malaysia: Supporting the students at the oldest national
sports school in the nation
Brazil: Concluded a contract with the nation s Olympic
and Paralympic Committees to support its
representatives
Through these eorts, Kachimeshi
®
have begun to spread
to athletes around the world.
The Ghana nutrition improvement project
The Ghana nutrition improvement project, which began in
2009 as the Ajinomoto Group s 100-year anniversary project,
intends to put into practice our function as a social business
while applying the enormous amount of knowledge about food
products and amino acids that we have accumulated since our
founding towards solving the serious issue of malnutrition
in developing countries. We aim to contribute to improving
children s nutrition by developing nutritional food products and
manufacturing and selling them through local companies.
As of 2016, nearly 10% of the world s workers subsist on
their daily earnings of less than $1.90 per person (International
Poverty Line) to live with their families (estimated 783 million
people total), and they are primarily located in South Asia and
Sub-Saharan Africa (December 2018, United Nations). In these
countries, the stunted development and high death rate facing
infants is particularly severe. The key to addressing these
issues is believed to be the nutrition obtained within the three-
year period from conception to the
child s second birthday, or the rst
1,000 days of life. If development
is stunted during this period, it is
said to be dicult to make up for it
afterwards.
In Ghana, as a result of poor
nutrition beginning six months
after birth, when infants start to be
fed with baby food, approx. 30%
of two-year-olds show stunted
height, delayed intellectual development, and other issues. We
attempted to overcome this situation by spreading nutritional
food products that can be added to KOKO (a gruel made from
fermented corn), a traditional Ghanaian baby food that lacks
protein and micronutrients, thus addressing the lack of nutrition
during the weaning period of six months to 24 months after
birth.
According to recommended nutritional requirements
from WHO and other sources, the grain-based KOKO baby
food lacks energy, protein, and micronutrients. To address
this, we developed KOKO Plus
®
, a nutritional food product
that contains amino acids and is added during the KOKO
preparation process to supplement missing nutrients. We
obtained permission from the Ghanaian government to
conduct a nutritional eect conrmation test and manufacture
KOKO Plus
®
, and we conducted trials in multiple villages. This
showed that KOKO Plus
®
was most eective for preventing
stunted height, and it was also shown to be eective for
preventing anemia.
The distribution model test was implemented for a year
using a combination of the two activities below:
A) Sales through networks of saleswomen in northern
rural areas through cooperation with CARE
14
, an
international NGO
B) Generating demand through social marketing in the
southern regions and selling through normal retail
outlets
Through these activities, we learned that utilizing
saleswomen in northern areas was greatly eective in raising
receptivity to KOKO Plus
®
, and that providing nutritional
education at places such as public health centers and utilizing
local radio were eective for social marketing in the southern
areas. As for the project s future developments, we have been
considering coordination with the NGO World Vision and
the JOICFP
15
, as well as public institutions such as the Japan
International Cooperation Agency (JICA), the U.S. Agency for
International Development (USAID), and the World Bank.
KOKO Plus
®
14. An abbreviation of Cooperative for Assistance and Relief Everywhere.
15. Japanese Organization for International Cooperation in Family Planning. It is a
public interest incorporated foundation founded in 1968 in response to a demand
for the experience and know-how related to family planning and maternal and
child health in postwar Japan to be shared with developing countries. It engages
in international cooperation activities that protect the lives and health of women
and expectant mothers around the world.
The History of the Ajinomoto Group
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71
In this way, the project is making radical expansions in
its partnerships, and it was transferred to THE AJINOMOTO
FOUNDATION (TAF) when it was founded in August 2016
(recognized as a public interest incorporated foundation in April
2017; see p.72), where it continues to be implemented.
Promoting a project to establish a nutrition-related system
in Vietnam
In August 2012, as a part of our initiatives for training
nutritionists in Vietnam, we concluded a memorandum of
understanding with Hanoi Medical University and the country s
National Institute of Nutrition related to the establishment
of endowed courses with the purpose of training leaders in
nutrition education. There were no nutrition departments at
universities in Vietnam at the time, and nutritionist certication
had not yet been established. To address this, our Institute for
Innovation began the Vietnam Nutrition-system Establishment
Project (VINEP) in collaboration with Vietnam s National
Institute of Nutrition in 2009. For two years beginning in 2010,
we began initiatives aimed at establishing the education system
through cooperation with Teiji Nakamura, chairman of The
Japan Dietetic Association (and Dean of Kanagawa University
of Human Services), and Professor Shigeru Yamamoto of
Jumonji University.
The endowed courses began in October 2012, and we also
received approval to establish Vietnam s rst four-year nutrition
science baccalaureate degree program at Hanoi Medical
University in November. 47 students enrolled for the rst
term in September 2013, with graduates making their debuts
as nutritionists starting in 2017. During this time, we oered
training for instructors and students in Japan, and supported
training both locally and in Japan for relevant individuals for
the establishment of a nutritionist job code in Vietnam (October
2015).
This project was transferred from Ajinomoto Co., Inc. to
TAF in April 2017.
Vietnam school meal project
We expanded its operations to Vietnam with the founding
of B&W Vietnam Co., Ltd. in February 1991 (renamed
AJINOMOTO VIETNAM CO., LTD. in 1994). In 2006, as a
part of the AIN Program (see p.72), we supported a project to
improve children s nutrition in the northern mountainous region
of Vietnam run by Save the Children Japan, which deepened
our involvement.
There were no laws or nutritional guidelines for school
meals in Vietnam, and elementary school lunches were left up
to the schools. For this reason, there were a variety of nutrition-
related issues, such as children primarily in rural communities
not receiving the necessary nutrition while the number of obese
and overweight children in cities increased.
To work on a fundamental solution to these conditions,
AJINOMOTO VIETNAM CO., LTD. approached the
Department of Education and Training and health centers in Ho
Chi Minh City and began a project with the following goals:
Improve lunches prepared at all elementary schools
within ve years
Support healthy growth with menus that provide
nutritional balance
Support hygiene management during the cooking process
and training for kitchen sta to provide lunches that are
safe and can be trusted
Support food education that provides accurate information
to children and guardians about meals and nutrition
For the project, the members of the company s public
communications team started by observing practices at Japanese
schools, such as lunch menu creation, food preparation, kitchen
sta training, and self-service by students on school lunch duty.
Upon returning to their country, they worked with the Vietnam
Ministry of Health s National Institute of Nutrition and decided
specic goals for the nutritional content balance and portions
tailored to the lower, middle, and upper school grades. They
also promoted specic measures that included the development
of menus consisting of main dishes, side dishes, staple foods,
soups, and desserts, following up on progress at schools and
responding to concerns, giving three-minute lessons on food
prior to lunch, and the installation of example kitchens at model
schools.
These eorts resulted in a signicant increase in
awareness of the importance of lunch at government agencies,
and activities expanded to the hub cities of Da Nang, Hai
Phong, and Hanoi in addition to Ho Chi Minh. In addition,
AJINOMOTO VIETNAM CO., LTD. continuously provides
scholarships that cover annual school fees.
In January 2017, it was decided that menu creation
software developed by AJINOMOTO VIETNAM CO., LTD.
would be introduced at all elementary schools in Vietnam
with cooking facilities (3,880 schools). The reference menu
incorporates items that use AJINOMOTO VIETNAM CO.,
LTD. products, and it was hoped this would contribute to sales
incrase.
In FY2017, AJINOMOTO VIETNAM CO., LTD.
launched a Kindergarten Meal Project and established nutrition
goals aimed at kindergarteners. In addition, the menu creation
software was updated for consumer use and shared with the
guardians of elementary school children in FY2018. In FY2020,
the company has provided an environment on its website that
allows households to use the software, and it has encouraged
use with a system that allows for one-click purchases.
This series of initiatives has been picked up by a number of
media outlets, which has led to an increase in corporate brand
value. AJINOMOTO VIETNAM CO., LTD. is confronting
social issues head-on and has established its ASV (see p.63)
themes for Vietnam as A) improving the state of citizens
nutrition for healthy living, B) developing food resources in the
agricultural eld, and C) raising awareness among employees
about energy conservation and resource conservation.
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The founding of THE AJINOMOTO FOUNDATION (TAF)
We established THE AJINOMOTO FOUNDATION (TAF:
Kyobashi, Chuo-ku, Tokyo) in August 2016 with the goal of
contributing to improved nutrition through food. In April 2017,
TAF was certied as a public interest incorporated foundation,
and the food-based social action programs and business
activities to address social issues that had been managed by us
were transferred to the foundation.
The improvement of nutrition is considered a key issue
among the SDGs promoted by the United Nations (global
targets for sustainable development) as well, but it is dicult
for individual company to resolve social issues on their own,
so coordination with the international and local communities,
which includes national and regional governments and non-
prot organizations, is vital. Ever since the founding, we
have created shared value based on the philosophy of Eat
Well, Live Well., but it decided that having TAF take over its
activities would be more appropriate in terms of facilitating the
deepening of cooperation with NPOs, governments, and other
entities on improving nutrition in low-income countries and
providing restoration eorts in disaster areas.
TAF promotes the following four core projects in an eort
to contribute to global society:
A) Projects for improving nutrition in low-income
countries - The Ghana nutrition improvement project
B) Projects that support food and nutrition (Ajinomoto
Foundation International Program for Nutrition:
AIN Program): Soliciting projects publicly that aim
to improve food and nutrition and, after screening
and inspecting the oered projects, assisting Japan s
and overseas NGOs, NPOs, educational institutions,
and other entities. The preceding organization,
Ajinomoto
International Cooperation Network for
Nutrition and Health (AIN), was established in 1999
as a committee providing support for international
cooperation activities in the areas of food, nutrition, and
health within our social contribution activities, and it
consists primarily of external experts in nutrition and
international cooperation.
C) Project to establish nutrition-related systems in low-
income countries: This project was transferred from
(former) our Institute for Innovation. Based on its
achievements thus far (establishing university courses
for training nutritionists and establishing an ocial
job code), it has cooperated with the Vietnam National
Institute of Nutrition to support the establishment
of rules for evaluating nutritionists work (Nutrition
Standards). It is also planning initiatives to expand the
number of universities oering the course (from two to
ten) and establish a Nutrition Education Center to serve
as the core of nutrition education.
D) Disaster area restoration activities - Health and
nutrition seminar project: Until its termination in
March 2020, the Fureai Red Apron Project began
in October 2011 to help with the Great East Japan
Earthquake reconstruction eort and provided over
4,000 opportunities for people to cook, eat, and speak
together. It currently provides recipes to organizations
who wish to implement initiatives and conducts safety
and hygiene training for their sta.
(4) Strengthening corporate governance and promoting
the information disclosure
Governance system enhancement and an open management
system
Corporate governance increased attention in the early
2000s against the backdrop of the advance of globalization,
consecutive internal and external corporate scandals, the
increase in group management via holding company systems,
and the rapid rise in information leaks, harassment, and other
issues. It is recognized as an important factor in the thorough
implementation of management policy to prevent corrupt
practices, and to improve competitiveness and protability to
increase long-term corporate value. Japan s Stewardship Code
was established by the Financial Services Agency in February
2014, and the Corporate Governance Code was published by
the Financial Services Agency and the Tokyo Stock Exchange,
Inc. in March 2015 and subsequently applied to stock listed
companies in June the same year.
We have also worked to strengthen corporate governance
to achieve sustainable growth through the creation of unique
value via our ASV initiatives (see p.63). Under the system,
the Board of Directors oversees business execution from the
perspective of shareholders and society based on audits by
Audit & Supervisory Board and other entities. As indicated
in Fig. III-15 and Table III-4, the Board of Directors, the
committees that report to the Board of Directors, and other
entities have implemented measures to strengthen governance.
Actively promoting dialogue with stakeholders
The advance of globalization in corporate management starting
in the 2000s has propagated the concept of stakeholders (parties
with a stake in corporate management, including consumers,
business partners, employees, shareholders, creditors, suppliers,
AIN Program
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communities, and administrative bodies) widely throughout
society. Japanese companies responded to customers,
employees, society, and other stakeholders to a certain degree,
such as through their customers rst principles, bottom-
up organizational management and labor-management
cooperation, and working for the benet of everyone. However,
being responsive towards shareholders was often undervalued.
In addition, employees were being asked to change as well in
response to transformations in the organizational environment
required to keep up with global developments and rapid
decision-making.
At Ajinomoto Co., Inc., Masatoshi Ito paid attention to
this issue after becoming President & CEO. He established a
CEO Headline to convey his own thoughts and attitudes
to employees, and he actively collected information through
discussion with young researchers. He also increased direct
engagement based on taking the initiative to share information
with stakeholders in and outside of Japan and investors rather
than simply disclosing it, and ESG briengs and other events
were held to actively explain policy and strategy (see p.13).
The current President & CEO Takaaki Nishii, not only
followed suit, but held events such as the World Umami Forum
(see p.80) to enhance information sharing and dialogue with
regard umami seasonings and MSG, which are central to the
Company s businesses and competitiveness, and advance eorts
to eliminate misunderstandings and bias.
Publishing the Integrated Report
We used to share information with its stakeholders, which
includes shareholders and investors, through its Shareholder
Report, which focuses on nancial and business aairs, and
its Sustainability Report, which focuses on non-nancial
activities such as ESG. However, as ESG investments
General Meeting of Shareholders
Board of Directors
Audit & Supervisory Board
Audit & Supervisory
Board Member (Standing)
Audit & Supervisory
Board Member (External)
Audit & Supervisory
Board
Accounting Auditors
Outside Director
Internal Director
Assistance
Cooperation
Member of the Board of Director appointments/dismissals
Auditing
[Management/Supervision]
[Auditing]
Appointment/
dismissal
resolution
decisions
Appointments/dismissals
[Business execution]
Compensation Advisory Committee
Nominating Advisory Committee
Corporate Governance Committee
Management Foundation Review Committee
Recommendations
Supervision
Management decision-making
Delegation of authority
Cooperation
Executive Committee/Other Committees, etc.
Appointments/dismissals of Audit & Supervisory Board Members
Figure III-15: Corporate Governance System
System 2009 2011 2015 2017 2019 Key points
Board of
Directors
Response
Female outside
director
appointed
External added
Decrease in
members
Non-executive members
comprise majority
We promoted the creation of an open management framework,
such as by appointing more female members and external
members to increase their ratio. The increase in the number of
non-executive directors resulted in increased separation from
business execution.
Number of
external/total
2/15 3/14 3/14 3/9 3/9
Compensation/Nominating
Advisory Committee
Specication of
provisions
Members of both committees are chosen from Members of
the Board of Directors and Corporate Executive Ofcers, and
Outside Directors comprise the majority. It was described that
the committee chairs should be chosen from among the Outside
Directors.
Corporate Governance
Committee
Newly
established
Established to maintain and improve sound management and
corporate governance. It is set forth that committee members
are chosen from Members of the Board of Directors and
Corporate Auditors, with the majority of external members and
the committee chair being chosen from external members.
Management Foundation
Review Committee
Newly
established
Established to formulate the strategic direction of the Group
management and reinforce the management foundation across
the Group. It consists of three Representative Directors and one
non-executive Internal Director, with the President serving as
chairperson.
*We maintain a system whereby three of the five members of the Audit & Supervisory Board are external members for the duration of the period.
Table III-4: History of Corporate Governance Enhancement
An small meeting between the President &
CEO and analysts
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underwent a rapid expansion, the importance of non-nancial
information grew, and there grew a demand for a report that
integrated nancial and non-nancial information and covered
all aspects of management.
To address this, we published a Financial Report in
2015 that included our ASV philosophy in addition to nancial
information. Beginning in 2016, we started to publish an
Integrated Report that combines our company s unique
philosophy of value creation and details about our activities in
story form. This was a part of an eort to enhance our long-term
corporate brand value. We consider the Integrated Report to be
the primary communication material, with the Sustainability
Data Book, IR Data Book (from 2017), Financial Statement,
and Corporate Governance Report serving as secondary
communicaton materials. We disclose an extensive amount of
information, including through our website.
Introduction of IFRS
We began applying the International Financial Reporting
Standards (IFRS), beginning with the consolidated nancial
statements in its FY2016 Financial Statement.
The IFRS are accounting standards established by
the International Accounting Standards Board, and they
were withdrawn once after the Financial Services Agency
had announced their adoption in April 2011. However, the
Ajinomoto
Group, which aspires to become a GGSC (see p.62),
decided that global accounting standards are essential from
the standpoint of A) comparing company nancial information
internally and externally and B) improving communication
with overseas stakeholders. Thus, ever since the Group decided
to introduce them in September 2011, it has worked to advance
their thorough implementation regardless of surrounding
circumstances.
Implementation took place in three phases, with the
response to lease-related items signaling completion:
Step 1: FY2013 (the recording method of sole agent sales
and related to retirement benets)
Step 2: FY2014 (sales promotion costs, depreciation
of tangible xed assets, standardization of
administrative accounting across the Group,
standardization of operation of intangible assets
across the Group, standardization of range of
consolidation and accounting term)
Step 3: FY2016 (handling of debts and impairment losses,
denitions and settings for goodwill and operating
and business prots)
Our Group companies are working quickly on
implementation, with the objective of sharing appropriate
information with Japan and overseas shareholders and investors
as a GGSC.
(5) Personnel training, job assignments, and utilization
WLB vision formulation and work-style innovation
In our pursuit to become a GGSC, it is also important that the
pledge to Value People, as declared in the Ajinomoto Group
Way, is applied to employees. The Company has valued people
in a number of ways throughout its over 100-year history,
and this is made clear in the message passed down within the
Human Resources Dept., Never stop believing in people s
potential and make sure to utilize them.
In addition, as one of the leading companies in the food
industry, if we were to provide a comfortable work environment
for a variety of personnel, and break away from the male-centric
Japanese work tradition of long working hours, it would have
an impact on the Group companies, the food industry, and all of
society. This also creates and provides social value for changing
business society, and links with ASV.
Based on this mindset, we formulated the the Ajinomoto
Becoming an individual lled with purpose in both work and life,
and with independence and autonomy as a businessperson,
family member, and community member
● Healthy mind and body
● Can feel your growth through work and self-improvement
● Always working to achieve challenging goals and productivity
● Always striving for balance in your work and private life and
moderating your work style
● Respecting and aiming for mutual growth with colleagues
working alongside you in the Group regardless of their
company/organization afliation or rank
● Respecting the diverse values of each individual
● Valuing communication and teamwork
● Hiring personnel with abundant appeal and helping them grow by
providing various opportunities
● Create a workplace culture and environment where all employees
working in the Group respect each other and can push each other to
work hard
● Contribute to society by always creating and providing new value, and
become a company that everyone aspires to emulate
Becoming a company that everyone wants to work at and
that can be passed down to the next generation with pride
Aiming to establish a “work-life cycle” between individuals and the company
Individual
Company
Support individual growth and improve work satisfaction by providing diverse options
Contributing to the company by improving and displaying one’s abilities and creating new value
Figure III-16: The Ajinomoto Group work-life balance vision
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Group Work-life Balance (WLB) Vision in 2008 (see Figure
III-16) and have promoted initiatives to make it a reality.
To achieve the five aspects of an ideal Ajinomoto Co., Inc.
employee starting in FY2012, we began initiatives focused on
the workplace and launched Work@A: Ajinomoto-style Work-
style Innovation in FY2013. In FY2014, we implemented
specific initiatives that included A) considering and creating a
mechanism for telecommuting, etc., B) promoting independent
workplace initiatives such as workshops for facilitating
mutual understanding, and C) awareness-raising activities
for promoting good examples of workplaces across the
organization. In FY2015, we continued by tying these efforts in
with diversity and health and productivity management, and we
created a system and culture that allows for personnel with a
variety of time and other restrictions to take an active role.
2009: Introduced re-employment system
2010: Extended the usage period for Child Care Short
Time Shift (up until end of third grade of elementary
school); made 15 days of childcare leave into paid
leave
2011: Assignment of first female corporate executive
officer, general managers in business departments,
and Member of the Board; changed head office
closing hour from 10 p.m. to 9 p.m.
2012: Began initiatives to improve WLB with workplaces
taking the lead (programs formulated by each
department)
2014: Introduced super flextime (flextime system without
setting core time), paid time off by the hour,
telecommuting (working from home, etc.)
2015: Formulated a Diversity & WLB Concept, launched
the Ajinomoto Women s Council, provided free
morning meals at the head office cafeteria, changed
head office closing hour from 9 p.m. to 8 p.m.
Systematic development of support for independent career
design by employees
In the FY2014 - 2016 Medium-Term Management Plan,
development of a solid and large class of global human
resources was set forth as one aspect of establishing a
management foundation with an eye towards a GGSC. The
goals set were as follows:
A) Form a group of approx. 200 future management
personnel (by FY2016)
B) Select, hire, and train global management personnel and
local specialists to establish a diverse management base
C) Raise ratio of locally hired overseas executives to 50%
and ratio of female managers to 20%
Achieving these goals requires personnel management that can
forge win-win relationships by linking individual autonomous
growth with corporate growth. Employees should take stock
of what they ve learned from their experiences since entering
the Company, make efforts to think about their qualifications
and career plan and improve their knowledge and skills. The
Company should make position requirements clear, identify
and appoint appropriate personnel, and formulate and execute
a training plan. This system and change in mindset will also
allow the early promotion of talented personnel through mutual
efforts and communication.
The Human Resources Dept. Career Support Group
launched in July 2012 has actively supported the development
of independent careers for self-fulfillment in anticipation
of the advance of globalization and the increase in senior
employees and decrease in young employees 10 years in the
future. Its main duties are to provide mechanisms and learning
opportunities, ensure effective operation, and offer specific
support. Consultations, training plans, and so on were carried
out while abiding by the following principles when performing
duties: A) respecting the individual, B) being supportive, and C)
respecting privacy.
The public recruitment system, career development
interviews with superiors, and other programs were
systematized as well, and a self-carrier development support
system for managers was begun (April 2014) in anticipation
of those who seek a second career after retirement. We made
systematic preparations to support autonomous career selection
and the maintenance of motivation, such as middle-age career
training for interested 42- and 43-year-olds, upper-middle-age
career training for those between 52 and 57 years old, follow-
up interviews and individual consultations, and life planning
seminars (applicants can attend with their spouses). This allows
participants to choose from A) re-employment, B) shifting
careers to other organizations, C) making their own plan
(early retirement), and D) temporary staffing in anticipation of
retirement age, charting their own path while receiving support
from the Company.
Training for this kind of independent career design was
conducted for all age groups by FY2016.
Career design creation lectures for new employees
Career path training for young women held jointly by
food product manufacturers
Career path training for those in their 30s
Career path coaching training for female managers
Middle-age career path training for managers and non-
managers
Career path training for upper-middle-age individuals
The training places more emphasis on linking individual
growth and corporate growth and forging win-win relationships
the younger participants are. The goal of the career path
coaching training for female managers is to increase the
number of female employees who want to become a manager
and create a base for utilizing and assigning jobs to women. We
also published the Career Design Handbook in September
2015 and used it as a guidebook to prepare for enrichment of
the annual career development interviews.
Other initiatives included enhancing career counseling by
training internal counselors, and in 2014, 12 members of the
Human Resources Dept. Career Support Group successfully
passed the CDA (Career Development Advisor) certification
exam. We also worked to enhance practical skills through the
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implementation of training to improve career counseling skills.
For this series of initiatives, we won the grand prize at
the 5th Japan HR Challenge Awards (hosted by the Japan HR
Challenge Awards Executive Committee) in April 2016.
Creating a new platform for talent
For the Ajinomoto Group to continue to protect its tradition
of Value People while aiming to become a GGSC, it was
important to appropriately utilize the diverse array of talent in
our overseas businesses, which comprise over two-thirds of
employees and the majority of our sales.
It was thus imperative to make major posts and key talent
visible to create a global talent platform to allocate the right
personnel to the right place. Besides clarication of the job
descriptions, job requirements, and personnel requirements
that are necessary to advance our business strategies, the
platform must be a transparent and fair mechanism for sharing
information about various talent and enabling their discovery,
training, and job assignments.
The creation and management of this platform was
the primary responsibility of the Global Human Resources
Management Dept. (now Global Human Resources Dept.)
established in April 2016. Creating a new platform for talent
primarily involves:
A) Shifting from preparing the right positions for the
talent to nding the right person for the position
B) A shift towards agility-focused strategic planning and
promotion from build-up business style that ensures
diverse talent for the creation of innovation and by
making leadership requirements clear
The creation and execution of a work blueprint to usher in
the transformation that will achieve A) and B) (overall picture/
schedule for reform work) became essential. The schedule
proceeded according to the following outline:
FY2016: Position management (job grade system [see
p.77], formulating job descriptions, identifying
GKP [Global Key Positions]), talent management
(talent nding, hiring and promotion)
FY2017: Organizational reform (Promotion of ASV and
implementation of employee engagement survey,
global policy for organization creation)
FY2018: Performance management (evaluation criteria,
feedback cycle, global remuneration policy),
personnel management
Among these, for position management and talent
management, a Group-wide personnel management system was
implemented in April 2016. In addition, through the creation
of the organization, the number and rank of the subordinates
led by managers were decided, and a policy of conducting
management and training in an appropriate manner and aiming
for mobility and rapid decision-making was established.
Advancing diversity through job assignments for women
and other eorts
As previously described, in the FY2014 - 2016 Medium-Term
Management Plan, developing a solid and large class of global
human resources was set forth as one aspect of establishing
a management foundation with an eye towards becoming
a GGSC. The goals set were to A) Form a group of future
management personnel, B) utilize global management personnel
and local specialists to establish a diverse management base,
and C) raise the ratio of locally hired overseas executives to
50% and female managers to 20%.
A global management system and other initiatives were
created to utilize overseas talent. In addition, to facilitate job
assignments for women, we set a goal of becoming a company
in Japan with the most women actively participating in the
workplace. Starting in FY2015, we launched the Ajinomoto
Women s Council as a framework for the promotion of this
eort, with members consisting of HR personnel from various
departments, personnel from business departments, and labor
union members. The organization issued a proposal to members
of management in regard to a course of action for identifying
and resolving issues based on the actual thoughts and
circumstances of those in workplaces, and it urged an expansion
of the system and reform of the HR system. A seminar for
supporting work-life balance was held, and a nursing room was
installed at the head oce in the Kyobashi area, among other
initiatives.
However, we were unable to achieve the specic numerical
targets for the C) diversity initiative, so in the FY2017 - 2019
Medium-Term Management Plan, we continued to pursue our
goals with the addition of encouraging mid-career hiring of
personnel with professional expertise. Given that unrecognized
biases in particular create barriers to achieving diversity, we
implemented unconscious bias training starting in March
2018, with President & CEO Nishii himself taking the lead in
working to advance the promotion of women in manager career
paths. There was also an active push to appoint more female
executives, and we joined the 30% Club
16
Japan launched in
Announcement of the FY2019 Nadeshiko Brands and Semi-Nadeshiko Brands
held on March 22, 2019
16. A non-prot campaign that began in England in 2010. It aims to improve the ratio
of women in important decision-making bodies at companies (including boards
of directors).
The History of the Ajinomoto Group
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May 2019 to demonstrate our commitment to achieving 30%
(see the table on p.41 to read about its progress).
Job grade system for managers
As the first step of preparing the global talent platform, the
Managers Job Grade (JG) was established and implemented to
provide a base for finding the right person for the position.
We introduced a job grade system in 2010 with global
management in mind, as nearly uniform requirements
with global key talent. The four grades that were initially
implemented were:
GEM: Business department general managers, HR/finance
department general managers, top management of
the Group companies in Japan and overseas
JG1: Head office assistant business department general
managers, executives/business department general
managers at the Group companies in Japan and
overseas
JG2: Head office section chiefs, general managers at the
Group companies in Japan and overseas
JG3: Head office senior staff, section chiefs at the Group
companies in Japan and overseas
Employees of the Group companies were also assigned a
grade depending on the size of their company, their role, and
the importance of their responsibilities. The future management
personnel described in the FY2014 - 2016 and FY2017 - 2019
Medium-Term Management Plans are chosen from among these
personnel, and they are narrowed down through training and
assessments. There are currently six grades (GEM + JG1-5).
Concurrently with this system, a database with information
on key personnel was shared with management and HR
personnel at our main overseas Group companies. By the end
of FY2018, the key positions at our main Group companies in
Japan and overseas were identified, the job requirements were
clarified, and the foundation for finding the right person for the
position around the world is being built.
Launch of the Ajinomoto Group Academy
Along with the introduction of the Job Grade (JG) System,
education and training for outstanding talent was conducted for
each grade beginning in 2011.
The first session of the Global & Group Leadership
Seminar (GGLS) for those in the JG1 grade was held from
February to July 2011. There were about 25 spots, and it was
attended by assistant department general managers from the
head office as well as executives and general managers at the
Group companies in Japan and overseas. The session involves
sharing the Ajinomoto Group Way, dialogue with the Group
executives, case studies of global companies, action learning
about the Group s global issues, and presentations in front of
members of the talent committee. Management sensibilities
are cultivated over the course of three days of lectures, an
interim report session, and two days of presentations. The
lectures are conducted in English (with simultaneous Japanese
interpretation) for the most part.
The Ajinomoto Global Future Leader Seminar (AGFLS)
held in September is a training session for executive candidates
aimed at those in the JG2 grade. Participants distill their vision
into a strategy and learn how to exercise influence that can
propel the organization in the future. While there are 25 spots,
30 individuals from 16 countries (six Japanese) attended the
first session. For those in JG2 and JG3 in Japan, the Ajinomoto
Group Leader Seminar (AGLS) is available as well.
In addition to the aforementioned, for those in the JG3
grade, there is also the Ajinomoto Regional Leader Seminar
(ARLS) for young leaders at each regional office, and there
is the Ajinomoto Global Future Leader Seminar Jr. for non-
managers. We thus established a system for fostering leadership
step by step.
Furthermore, for officers and GEM (Group Executive
Managers: department general managers and top-level
personnel at the Group companies in Japan and overseas), we
conduct executive training 13 times a year, which allows us
to constantly promote improvement of capabilities among our
Name of training Purpose Target and number of particilants
Frequency and
training period
Contents
Global Leaders
Seminar (GLS)
Discern future trends from a broad
perspective and strengthen leadership
based on the Ajinomoto Group Vision
Target: Ajinomoto Co., Inc.
assistant general manager
and Group company
executives/general
managers
Participants: Around 25
Once a year,
eight days
Obtain the latest knowledge, internal case studies,
panel discussions with the Group management,
the Group proposals for management through
action learning
Future Leaders
Seminar (FLS)
Establish one’s ideal state as a leader,
strengthen leadership to advance future
businesses
Target: Senior managers and
managers, Participants:
Around 25
Once a year,
10 days
Obtain the latest knowledge, internal case
studies, deepen self-recognition through coaching
sessions
Leadership & Literacy
Seminar (LLS)
Deepen one’s self-recognition as a
leader and improve the foundation
(perspective, basic business knowledge)
for one’s future
Target: Team leaders or newly
promoted managers,
Participants: Around 20
Once a year,
10 days
Reecting on leadership, career design, deepening
comprehension of ASV through lectures by internal
and external instructors, business literacy
Table III-5: The Ajinomoto Group Academy main programs (April 2018 onward)
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top personnel through constant checkups and training sessions.
Starting in April 2018, we launched the Ajinomoto Group
Academy as a systematic training program for next-generation
management talent that will spearhead global growth, as well as
the next-generation of highly skilled specialists and candidates
for department leadership roles (see Table III-5).
For the next-generation management talent, we are working
to deepen the aforementioned training at each JG level, with a
focus on insight into the future, reecting on and strengthening
leadership, establishing business literacy, and implementing the
Ajinomoto
Group Vision in order to enhance global leadership.
Starting in FY2019, we implemented a program to enhance the
expertise of our next-generation highly skilled specialists and
candidates for department leadership based on the needs of each
department and the Group company.
Promoting health and productivity management: Protecting
employees’ physical and mental health
The biggest reason Ajinomoto Co., Inc. evolved its initiatives
for physical and mental health and was able to be named a
brand that promotes health and productivity management
every year since FY2017 is that it has assiduously built up a
foundation for industrial health activities. Our unique initiatives
based on compliance, safety, and health were nearly completed
by FY2015.
A) Interviewing everyone individually to provide
personalized health guidance based on the results of
health exams, stress checks, and so on, while respecting
each person s value and lifestyle
B) The mental health recovery program, a measure that
supports those returning to the workplace
These are the two main pillars of our initiatives.
In FY2015, a system for selecting brands that promote
Health and Productivity Management (jointly selected every
year by the Ministry of Economy, Trade and Industry and
the Tokyo Stock Exchange) was established, and we began
full-scale initiatives for physical and mental health from a
management standpoint. In FY2018, under the supervision
of those responsible for the promotion of health throughout
the entire Ajinomoto Group, the Group companies designated
individuals in charge of promoting health as well, and
decided to advance health-related measures based on their
own circumstances in each country. Our mission to support
the maintenance and promotion of its employees health to
maximize its ability to contribute to global food and health and
better lifestyles in the future was declared in the Ajinomoto
Group Health and Well-Being Initiatives. Additionally, our
style of health and productivity management aims to have those
working in the Ajinomoto Group naturally become healthy, and
it promotes the creation of an environment where employees
can form self-care habits that include balanced meals, moderate
exercise, and good sleep.
A non-smoking company declaration was issued as a
common policy among the Group companies in Japan, with the
goal of eliminating smoking during oce hours by FY2022.
In addition, we deepened its self-care infrastructure in FY
2018 by:
Implementing a comprehensive health management
system that allows for the centralized control of
information from the nationwide wellness promotion
center
Introducing a health advice application (Karada Kawaru
Navi )
Creating the My Health website for individuals that
aggregates health-related information. Starting an
Appropriate Carbohydrates Intake Seminar and
Women s Health Seminar across all oces to enhance
one s self-care support
In FY2019, we started My Health Lunch, a company-
wide healthy menu at the cafeteria that oers delicious options
with health benets.
(6) Reforming the organization and awareness to
achieve proper operation as a global organization
Establishing the Ajinomoto SEA Regional Headquarters
Co., Ltd.
In our FY2014 - 2016 Medium-Term Management Plan, we
designated the ve countries with a strong foundation for
the overseas food product business (Thailand, Indonesia, the
Philippines, Vietnam, Brazil) as the Five Stars, and Africa,
Europe, North America, and the Middle East as Rising Stars.
For the former, we set a goal of increasing sales by two to three
times by FY2020. In addition, it was planned that sales from the
overseas food product business to exceed those from the Japan
food product business in FY2016. To make this a reality, it
would be essential to strengthen local systems and appropriate
management of companies that entered the Group through
M&A.
One specic plan was to establish a regional headquarters
in Bangkok, Thailand and use this as a focal point for expansion
of the seasonings and packaged food product business in
the Southeast Asian and South Asian markets. ASEAN
(the Association of Southeast Asian Nations) is a regional
cooperative organization that consists of 10 nations, and as of
2014 it represented a population of over 600 million people.
The size of the economy is about half that of Japan, but the
Philippines and Vietnam, which belong to the NEXT11 (see
the footnote on p.49), and ASEAN is being regarded as an area
with signicant potential for future growth. Among our oversea
aliates, AJINOMOTO CO., (THAILAND) LTD. has long
maintained its top share in the avor seasonings market, making
its large presence felt by ever-growing sales of Ros Dee
®
and
its sales base, as well as the success of top brand Birdy
®
, which
for a time boasted a 70% share of the canned coee market. It
was natural to conceive of using Thailand as a launching pad to
make headway into the markets of the surrounding countries.
To execute this strategy, we established the Ajinomoto SEA
Regional Headquarters Co., Ltd. in Bangkok, the capital of
Thailand, in January 2015. It had paid-in capital of 715 million
baht (fully owned by Ajinomoto Co., Inc.) and 25 employees.
The History of the Ajinomoto Group
III. Taking the First Step into the Next 100 Years
- 3. ESG-Related Initiatives for Becoming a GGSC -
79
The company went on to handle funding for subsidiaries
and joint ventures established in Pakistan, Myanmar, and other
countries, and it also became the base for implementation of
the Global Governance Policy (GGP), which will be described
hereafter. It served as the governing headquarters (head oce
functions) of the region and came to play a vital role in training
management personnel, among other functions.
Spreading awareness of the Ajinomoto Group Way
On the occasion of its 100th anniversary in 2009, we reviewed
its management philosophy and other documents that provide
its administrative underpinnings, and systemized its vision in
the Ajinomoto Group Principles (AGP).
At this time, the Ajinomoto Way advocated by former
president Kunio Egashira in 1997 was documented clearly
as the Ajinomoto Group Way, which set out the shared value
among employees and basic approach and stance in taking on
our work, then was considered a pillar supporting the Group s
management principles. The Ajinomoto Group Way is the
essence of the enterprising spirit and corporate culture passed
down over a 100-year period, and it consists of A) the creation
of new value (Create), B) a pioneer spirit (Pioneer), C) social
contribution (Contribute), and D) value people (Respect).
In July of the same year, participation in the United
Nations Global Compact was incorporated into the Ajinomoto
Group Standards of Business Conduct, and the guiding
principles for the Group companies and employees were
completed by the compliance and implementation of the AGP
and the 4 categories/10 principles of the Global Compact
authorized around the world: human rights, labor, environment,
and preventing corruption.
Thoroughly instilling this system, and the Ajinomoto
Group Way in particular, throughout our globally expanding
organization was an essential part of strengthening global
governance. Beginning in FY2011, we held the Ajinomoto
Group Way Sessions in an eort to bolster awareness, and by
FY2015, all of approx. 33,000 Group employees around the
world had participated.
The ASV Awards
ASV, in addition to being a public declaration that we consider
balancing social and economic values to be a fundamental
part of our management, is also a Group-wide policy, and it
is important to ensure that it takes root throughout the Group.
Though we continued to expand our product lineup with the
intention of balancing these two values ever since our founding,
as a company, we were of course executing measures to stand
up to our competitors and other forces as well, so it became
essential for us to always be conscious of ASV even in these
kinds of situations.
For this reason, in addition to ASV sessions (see p.63) and
other eorts, starting in FY2016, we converted the company-
wide award system into the ASV Awards, celebrating
innovative and creative initiatives that embody the essence of
ASV. We reported the grand prize, conferred to particularly
superb initiatives, in our Integrated Report.
The ASV Awards are selected by the award committee
consisting primarily of department general managers based not
only on short-term economic value, but also future potential
social and economic values.
The following initiatives have received the grand prize
thus far.
FY2016: Initiatives to improve nutrition in Vietnam
FY2017: Supporting customer QOL improvements by
providing Amino Aile
®
along with information on
exercise and nutrition
FY2018: Promoting the value that Cook Do
®
provides
through its support of vegetable intake and family
harmony using a commercial celebrating the 40th
anniversary of its launch, achieving the highest
sales to date
Formulation of GGP
After assuming his post, President & CEO Takaaki Nishii
held up the Three Linked Areas of Reform: Personnel,
Organization, and Rules and continued laying the foundation
for becoming a GGSC (see p.62). The Global Governance
Policy (GGP) introduced in April 2016 ushered in dramatic
growth in our overseas businesses and provided the rules of
execution to reform our organizational management (see Figure
III-17).
The GGP explicitly denes the head oce functions as the
governing headquarters and local functions as the delegated
front, and they can run on their own. It aimed to increase the
mobility and eciency of local operations while strengthening
the Group governance. Specically, the GGP indicates the
governance policies to which corporations that are applying it
must adhere and clarify both the delegation of responsibility
and authority to our main Japan s and overseas aliates as
well as the obligation to process GGP proposals (corresponds
to the former Ringi [approval system] Regulations and
Aliated Companies Supervisory Regulations). AJINOMOTO
CO., (THAILAND) LTD. and AJINOMOTO DO BRASIL
INDÚSTRIA E COMÉRCIO DE ALIMENTOS LTDA.
adopted it on a trial basis starting in FY2015. After a one-
year verication period, it was fully adopted by the Group
Improve local decision-making speed to
achieve rapid growth overseas
Switch to management that aims
to enhance mobility and efciency
・Expand delegation of authority
-Target: Major afliates/regions, including
ASEAN and Latin America
-Authority: Launch of new products,
acquisition of xed assets, etc.
・Introduce a reporting system for
delegation
Management/corporate
(governing headquarters)
Regional headquarters/
businesses/
individual companies
(delegated front)
Figure III-17: Global Governance Policy
The History of the Ajinomoto Group
III. Taking the First Step into the Next 100 Years
- 3. ESG-Related Initiatives for Becoming a GGSC -
80
companies including Ajinomoto Windsor, Inc., Ajinomoto
Frozen Foods Co., Inc., and Ajinomoto General Foods Co.,
Ltd. In the same scal year, the Global Policy Matrix and
policies and procedures were established, which outlined
policies to be obeyed related to the Standards of Business
Conduct, legal matters, tax matters, trade, purchasing, general
aairs, accounting, funding, human resources, and other areas.
In order to create the platform for our governing
headquarters by reorganizing the corporate functions of our
head oce and clarifying its role (planning and supervision)
from the perspective of the Group global management, we
established the Global Corporate in April 2016, which was
renamed the Global Corporate Division in April 2018, creating
a system to further promote the unication of our global
strategy.
Implementing an Ajinomoto Group Engagement Survey
The slogan Value people is the DNA of the Ajinomoto Group,
and this was displayed in the Ajinomoto Group Engagement
Survey that was implemented in October 2017. This survey
measures engagement in terms of the sense of commitment
and devotion that employees have towards the company and
the depth of their involvement in the company (which approx.
job satisfaction), which is useful for the improvement of work
styles and the working environment. We had originally been
conducting an engagement survey since 2010, but it was
only aimed at overseas managers, while domestic employees
underwent an organizational culture evaluation. The latter
examined the state of the company and organization, and this
was replaced by an employee-centered engagement survey
targeted at all employees around the world. As globalization
advanced, it was important to understand the approx. 35,000
employees across Ajinomoto Co., Inc. and its 100+ Group
companies, with their dierent cultures and customs, through
the level of their job satisfaction, and thereby increase the sense
of unity.
The rst survey consisted of 60 questions that added
the ASV concepts of Enabled (highly productive work
environments) and Energized (the realization of potential
through the provision of opportunities and a healthy mind
and body) to the three engagement components of thinking,
feeling, and acting to gain an idea of sustainability. Eighty
seven percent of employees across the entire Group responded,
and the percentage of employees feeling highly engaged in their
work was 79% (a score that indicates sustainable engagement),
and 76% said that they felt healthy in both mind and body. We
intended to further improve the working environment through
sustainable implementation.
In FY2019, the nal year of the FY2017 - 2019 Medium-
Term Management Plan, we conducted a second survey that
included an evaluation of the eect of improvement measures
per organization based on the results of the rst survey. The
response rate (93%) reected the deepening understanding of
and expectations for the employee engagement survey, and the
sustainable engagement score improved to the mid-term plan
target of 80%.
Beginning in FY2020, we will increase the frequency
of the survey from every other year to every year, and each
scal year we evaluate the level of achievements and results
of the measures implemented by both the entire Group and
each department with regard to the key issues of the employee
engagement score (sustainable engagement) and personnel and
organization management reform. Based on these results, the
employees come to think of ASV as one s own initiative, which
fosters an organizational culture in which employees take the
initiative to contribute to our development and growth to an
even greater extent.
(7) New initiatives for conveying corporate value
Holding the World Umami Forum (WUF)
The World Umami Forum held in New York City on
September 20th and 21st, 2018, marked the 110th anniversary
of Dr. Kikunae Ikeda s discovery of umami. This initiative
disseminated correct information on monosodium glutamate
(MSG), and this initiative was our rst step towards clearing
away many years of concern in order to debunk misconceptions
among consumers throughout the world.
Prominent inuencers in the food community, including
dieticians, chefs, journalists, and academics from various
countries throughout the world were invited. They made
appeals to the over 200 people in attendance, positioning MSG
as the ingredient with the purest form of umami, reviewing its
history, clearing up misunderstandings about its safety, and
discussing benets, such as improving the taste of low-sodium
foods.
Lectures: Fundamentals of deliciousness/History of
umami and its journey across the globe/What
is glutamate?/Chinese restaurant syndrome -
Why do Americans fear MSG but love umami?/
Taste and Aroma - The how and why behind the
sensation
Panel exhibit: The history of MSG in the U.S.
Taste test corner: What kind of taste is umami?
Culinary demonstration: Umami around the world
Panel discussion: Debunking the Myths and Mysteries
behind MSG
Umami cooking competition
In a survey administered to participants, nearly 100% said
that they were satised with the forum and had learned new
information, and over 80% said they had been convinced by
presentations on topics that included the benets of MSG, such
as improving the taste of low-sodium foods, verication of the
safety of MSG, misperceptions about MSG from unreliable and
debunked studies, and MSG s promotion of satiety and control
of appetite.
This forum was conceived by President & CEO Nishii
as part of our responsibility as a global company to spread
awareness of umami, which had thus far been promoted through
associations and groups, and to clear away misconceptions and
biases related to MSG. In addition, the fact that the planning
The History of the Ajinomoto Group
III. Taking the First Step into the Next 100 Years
- 3. ESG-Related Initiatives for Becoming a GGSC -
81
Holding the World Umami Forum (WUF)
and execution was led on the U.S. side was revolutionary, and
it was an extremely signicant event for appealing to partners
and key opinion leaders in emerging countries where we are
expanding our business.
Introducing a global brand logo to aggregate our corporate
value
In October 2017, we introduced a shared Group-wide brand
logo, the Ajinomoto Group Global Brand Logo (AGB).
As a result of its concerted push to expand abroad since its
founding, we expanded its business to encompass 30 countries
and regions (including Japan) and 121 Group companies (46
in Japan [including Ajinomoto Co., Inc.] and 75 overseas)
as of April 2017. However, among the main countries, there
are countries where our brand recognition is relatively low
compared to competing global food companies. In addition, our
Japan s and overseas group companies increased in number due
to active pursuit of M&A from 2009 onward, and our business
spheres expanded as well. Considering the need to accurately
convey the pursuit of both social and economic values based on
ASV, the need for a unied brand that ties the entire Ajinomoto
Group together grew stronger.
Based on this background, we developed an easy-to-
understand logo design that could transcend language barriers
and get consumers throughout the world, including Japan, to
recognize it as the symbol of the Ajinomoto Group.
Ajinomoto literally means Essence of Taste, which refers
to the Essence of Umami. Combining the innity symbol with
the A of the AGB conveys our innite ambitions to pursue,
master and popularize this taste ( Aji ), to drive the evolution
of and develop the value of Amino acids using leading-edge
bioscience and ne chemical technologies, and to promote
global sustainability. The line that ows from the A into the
j represents a person, which suggests people gathering (Join)
and enjoying (Joy) cooking, eating and comfortable life styles
enriched by taste ( Aji ) and Amino acids. The line that extends
from the bottom of the j to the upper-right represents the future
growth and development of the Ajinomoto Group.
The AGB started out being used on Ajinomoto Co., Inc.
press releases and the website, and since November 2017, it
has expanded around the world and is now part of standard use,
appearing on the Group company business cards, stationery,
and more. In addition, since January 2018, we have striven
to maximize the AGB s exposure, not only on our product
packaging, but also in company advertisements, television
commercials, promotions, online, and other communication
activities that serve as points of contact with our consumers.
It is also a symbol to which we aggregate and accumulate
created through ASV, and it represents our goal of growing into
a Group that is all the more trusted by consumers around the
world.
Along with the establishment of our AGB, we created the
Ajinomoto Group Messaging System and systematized the
elements that use words to form the essence of the Ajinomoto
Group brand in an eort to standardize our Group messaging
and create a unied and strong brand around the world. This
system establishes the following elements that convey the
ideals that our Group strives to achieve:
Elevator pitch (a short statement one can read and
understand during a short elevator ride)
Boilerplate (a standardized text that can be used
repeatedly)
Brand story (representative topics that tell the story of our
brand)
The brand story explains the Group s mission and desire
is to realize greater wellness for people all around the world,
the Dr. Kikunae Ikeda s discovery of glutamate and his words;
to create good, aordable seasonings and turn simple but
nutritious fare into delicacies.
Thus, the AGB and messaging system made it possible to
convey information to the whole world in a coordinated manner
and show our past as well as its future aspirations more vividly.
In the corporate brand survey C-BIS that was conducted in
May 2019, the AGB recognition rate among consumers who are
familiar with our products (based on the 12 primary countries)
was approx. 85%, which indicates rm awareness.
Establish a memorable
mark that feels friendly
to people worldwide
[Old corporate logo] [Ajinomoto Group
Global Brand Logo (AGB)]
1
2
3
Continue to use the
“Ajinomoto Red
symbol color”
Improve visibility and
power with boldface
type
Figure III-18: Former logo and AGB
The History of the Ajinomoto Group
III. Taking the First Step into the Next 100 Years
- 3. ESG-Related Initiatives for Becoming a GGSC -
82
Our corporate character,
AjiPanda
®
AjiPanda
®
, Ajinomoto Co., Inc. s
beloved corporate character, was
launched in May 2005 as part of
our AJI-NO-MOTO
®
100-year-
anniversary campaign along with
the 75g (now 70g) AjiPanda
®
bottle.
We chose a panda as our corporate
character because it is an animal
that has a friendly image and is
widely loved by people around the
world, including young people and
mothers. It s also easy to immediately recognize as a panda
even with the simple design in which the black part is replaced
with our corporate color red.
Afterward, campaigns using the bottle were periodically
conducted, and the miniature cellphone strap that was oered as
a gift when the campaign was run in 2010 proved very popular,
winning rst place in the 2011 Japan Package Design Award
- Souvenir/Promotion Package Category. It was released in
2011 as a commercial product. In May 2015, at AJINOMOTO
GROUP Umami Science Square, which was opened in our
Kawasaki Plant for its 100-year anniversary, an AjiPanda
®
goods shop was opened on the 1st oor, and a workshop where
visitors can make their own My AjiPanda
®
bottle was opened
on the 2nd oor. In the square an AjiPanda
®
washcloth and
apron are used during the Cook Do
®
cooking experience. The
character had solidied its position as the corporate character
for all of Ajinomoto Co., Inc.
17
In addition, starting in December 2019, AjiPanda
®
has
played the role of global ambassador for the Ajinomoto Group.
(8) New nancial and IR initiatives as a global company
Actively investing and raising funds for growth
Based on our FY2014 - 2016 Medium-Term Management Plan,
we made a signicant shift towards an approach appropriate
for a global company in terms of nancial aairs and Investor
Relations (IR).
On the nancial side, we invested heavily to spur growth
and concentrated eorts on improving our ROE (return on
equity).
Until around 2008 or 2009, we were an organization that
disliked borrowing and was eectively managed without any
debt. However, as the number of international shareholders
increased due to globalization, there grew a demand for growth-
based investments even if this required moderate borrowing.
In Europe and the U.S., there is a strong belief that companies
are considered the property of shareholders, and in addition
to the importance of enhancing growth to raise the stock
price, borrowing also helps to reduce companies tax burden.
Moreover, simply improving internal reserves somewhat delays
M&A and other eorts, and it makes it difficult to respond
promptly to changes in the environment.
For this reason, in our FY2011 - 2013 Medium-Term
Management Plan and FY2014 - 2016 Medium-Term
Management Plan, we disclose specic measures for our
nancial strategy, including cash ow, investments aimed
at growth, fund procurement, and shareholder returns. In
particular, in terms of raising funds, we secured funding
through interest-bearing debt as necessary while keeping our D/
E ratio (debt-equity ratio) at around 30 - 50%. At the same time,
we set ROE as our most important indicator, and we also retired
repurchased shares as a return for our shareholders and took
other measures to improve our protability and the efficiency
of fund operations. The ROE level of global companies is 10 -
15%, and Japanese companies generally have about half of this
rate
18
, but we set a target of 10% or higher in its FY2017 - 2019
Medium-Term Management Plan.
Further, to prevent a re-occurrence of the foreign exchange
loss (approx. 10 billion yen) at our subsidiary in Brazil,
which was the main reason we were in the red in FY2008, we
established exchange contract rules instead of leaving it to our
subsidiaries to handle.
Improving our nancial structure and training personnel
In our FY2017 - 2019 Medium-Term Management Plan, in
addition to ROE, we set an ROA (return on assets) target for
each business, and besides improving this metric, we advanced
improvements to our cash conversion cycle (the number of
days from purchase to sale until cash is collected). In terms of
investments, we manage capital expenditures, R&D, and M&A
as a set and give priority allocation to our growth areas. For
fund procurement, we are benchmarking our D/E ratio under
50% if we deem it necessary based on a detailed analysis of
risks, future prospects, and business opportunities.
With respect to shareholder returns, we aim for 30%
payout ratio (dividends net income) and a total return ratio
((dividends + share buybacks) net income) of 50% or higher,
and in FY2018 we implemented a share buyback of up to 40
billion yen.
In addition, with our overseas businesses accounting
for over 50% of both sales and business prots, nance
personnel with expertise in international tax and accounting,
a commitment to compliance with rules based on BEPS
(Base Erosion and Prot Shifting),
19
and who are conscious
of efficiency have become essential. So in April 2018, we
separated the Global Finance Dept. from the Finance &
Accounting Dept. and have been working to secure and train
talent.
17. Internal usage guidelines were established, and employees were encouraged to
make active use of it. We have also created a website for consumers and provided
information so that visitors can get to know AjiPanda
®
’s personality and mission,
as well as learn about the Company through the corporate character.
18. While the returns from Japanese companies are low, there is also little uctuation
in prot, so they can be considered as low-risk, low-return.
19. Corporate tax evasion that exploits dierences and inconsistencies in the tax
systems of dierent countries. It is such a serious problem that an international
countermeasure organization has been formed.
AjiPanda
®
The History of the Ajinomoto Group
III. Taking the First Step into the Next 100 Years
- 3. ESG-Related Initiatives for Becoming a GGSC -
83
Enhancing IR activities
Our global IR activities began in 2005, and they have been
enhanced further since Masatoshi Ito became President & CEO
based on a belief in the importance of dialogue and the willing
disclosure of internal information.
Various information, including non-nancial information,
is transmitted online in real-time on the corporate website, and
other information that can be disclosed, such as management
strategy (message from President & CEO, medium-term
management plans, etc.) and stock information (share price,
dividends, shareholder incentives, etc.) are shared in a prompt
and concise manner. Information that we think shareholders
may be interested in is also shared in printed form, such as the
IR Data Book, Integrated Report, Sustainability Data Book, and
Intellectual Property Report. We instituted a system that shares
this information as-is worldwide on our global website (English
version).
In addition, both of our two most recent President &
CEOs, Masatoshi Ito and Takaaki Nishii, have actively
engaged in direct dialogue with investors and encouraged
their understanding of our business strategy and ASV, such
as through nancial results briengs, small meetings with the
President & CEO (follow-up to the nancial results briengs),
medium-term management plan briengs, business briengs,
and briengs on the topics in the Integrated Report (ESG
briengs).
The small meetings held by the President & CEO that were
begun in 2015 exclusively for buy-side analysts (institutional
investors) were an expansion of the meetings targeted at sell-
side analysts (securities rms) that had already been in place
since 2010. The ESG brieng rst held in March 2015 was
also well-received, so it was made into a periodic event. In our
fund procurement activities, we also began Debt IR focused on
creditors in 2015 in order to execute our strategy of utilizing
interest-bearing debt to nance for our growth.
As a result of these eorts, we won the Grand Prize for
Excellence at the IR Award held by the Japan Investor Relations
Association in 2015, and in 2016 we received an Award for
Excellence in Corporate Disclosure by The Securities Analysts
Association of Japan.
Since FY2017, we have developed and enhanced the
activities directed at individual investors, who continue to grow
in importance.
Award ceremony for the Grand Prize for Excellence at the IR Award (2015)
4
Overview of Main Businesses (FY2009 - 2019)
- Towards “Specialty and Global”
The History of the Ajinomoto Group
III. Taking the First Step into the Next 100 Years
- 4. Overview of Main Businesses (FY2009 - 2019) -
84
III. Taking the First Step into the Next 100 Years
- Aiming to Become a GGSC -
(1) Food products business
Ten years in the food products industry and business
In 2009, the global economy was suering a recession
following the 2008 nancial crisis (the Lehman Shock), but
from that point onward, it recovered rather smoothly due to the
rise of China and other emerging countries. During this period,
informatization and globalization advanced and there was a
huge movement towards consideration of issues such as the
environment and human rights, as represented by the SDGs.
Within this circumstance, Japan was facing the unprecedented
situation of population decline and the aging of society. In
addition to this, factors the 2011 Great East Japan Earthquake
had an impact and deation continued for a time. From 2013,
the economy began to improve, driven by Abenomics (a set
of economic and monetary policies implemented by the Prime
Minister Shinzo Abe), but sluggish personal consumption
continued, meaning that the Japan food products market
remained roughly level. Beside a succession of headwinds,
the food products industry saw a rise in raw material prices,
an increase in one and two-person households, shifts towards
individualized diets and easy-to-cook meals, and stronger
health-consciousness. In response to these trends, there was
movement towards the creation of added value and overseas
expansion.
Under the leadership of President & CEO Masatoshi Ito
(2009-2015), the Ajinomoto Group s food products business
adopted key principles such as Specialty (providing value
that is not found in other companies products), Open & Link
(actively using external resources through M&A, alliances,
etc.), and expansion into adjacent domains (leveraging brands
and technology to develop in adjacent business areas), with the
aim of digging deeper into domestic markets and achievement
of rapid overseas business growth.
As a result, from FY2009 to FY2019, sales and prots
changed as shown in Table III-6 below.
Sales in the Japan food products business decreased by a
little over 10% due to factors that include the sale of Calpis Co.,
Ltd. in October 2012 and changes in accounting standards after
the adoption of International Financial Reporting Standards
(IFRS) in FY2016. However, prot grew by over 20%, showing
a signicant increase in protability driven by measures
such as the progress of structural reform and sales expansion
through products in new business areas. Also, in the overseas
food products business, although there was also a change in
accounting standards, sales surpassed domestic sales in FY2013,
and prot surpassed domestic prot in FY2014. As a result, we
have been able to expand overall food products sales by over 200
billion yen and prot by over 30 billion yen.
Japan consumer food products business
Our food products business in Japan consists of products
including umami seasonings such as AJI-NO-MOTO
®
, Japanese
avor seasonings such as HON-DASHI
®
, Cook Do
®
and other
menu-specic, mayonnaise, cup soups developed under the
Knorr brand, coee products by Ajinomoto AGF, Inc., and
various frozen foods by Ajinomoto Frozen Foods Co., Inc., etc.
For basic seasonings products such as AJI-NO-MOTO
®
,
HON-DASHI
®
,
Ajinomoto KK Consommé, Marudori Gara Soup
,
and Pure Select
®
, we maintained rm sales by constantly
improving the products, as well as implementing measures that
include proposals for new uses and healthy recipes through
TV commercials and informative websites, and launching new
products with reduced salt or reduced calories. Furthermore, in
FY2012, we launched Cook Do
®
Koumi Paste
®
and Cook Do
®
Kyo-no Ohzara
®
, which added original new materials and
technologies to our popular Cook Do
®
Chinese menu-specic
seasoning brand. These products are good examples of expansion
into adjacent domains in Chinese general seasonings and
Japanese food seasonings and they made large contributions in
terms of sales. In the same year, we launched Nabe Cube
®
which
applied consommé technology for maintaining cube shapes and
dissolving in liquid to Nabe (Japanese hotpot) seasonings.
For soups, we grew sales by developing new products and
lifestyle proposals, such as the made with cold milk” series
that has stimulated in demand during summer since 2010,
Knorr
®
Soup DELI
®
soups with plenty of ingredients launched in
(Billions of yen)
FY2009 FY2019
Sales
Operating
prot
Sales
Business
prot
Japan 436 24.3 375.3 32.8
International
Food Products
214.6 25.4 477.6 48.8
Total 650.6 49.7 852.9 81.7
Sources: IR Data Book 2020, INVESTOR’S GUIDE 2017
Table III-6: Food products business results
(FY2009/FY2019)
The History of the Ajinomoto Group
III. Taking the First Step into the Next 100 Years
- 4. Overview of Main Businesses (FY2009 - 2019) -
85
2011, and the Warm Breakfast series campaign started in 2016.
For our Cook Do
®
menu-specic seasonings, we also managed
to win the support of consumers by appealing to their lifestyle
and food needs, such as eating together with family and getting
a balanced intake of protein and vegetables. This greatly grew
sales and we maintained a leading market share and drove market
expansion for both menu-specic seasonings and cup soups.
In the sweeteners business, we are centered on the high
intensity sweetener aspartame. During this period, in order
to reinforce the structure of the business, we sold Ajinomoto
Sweeteners Europe S.A.S. and introduced new manufacturing
methods. We also grew the consumer business which boasts the
PAL SWEET
®
brand.
In April 2015, we made Ajinomoto General Foods, Inc.,
which was responsible for our coee business, into a fully owned
subsidiary and in July 2017, the company was reborn under the
name of Ajinomoto AGF, Inc. We achieved growth through the
stick type coee business, which cultivated new markets through
instant coee developed with technology, and convenience store
counter coee business. However, the liquid coee business,
which had been supporting by consumers for many years, began to
face severe competition. In order to respond to the diversication
of consumer preferences, we have actively been launching new
products such as individual portion and premium products.
Blendy
®
Stick
Ice Café au Lait
Pack of seven
Blendy
®
Roasters &
Stick Colombian Blend
Pack of seven
In frozen foods, we continued to grow steadily with
Gyoza
(Japanese-style dumplings), originally launched in 1972,
maintaining its leading share of the gyoza market through ongoing
improvements (enabling preparation without water or oil,etc.).
Similarly, in the Okazu eld (side dishes that are usually served
alongside rice), while there was an increase in competition for one of
our major products, volume packs of Yawaraka Wakadori Karaage
(fried chicken), we saw steady demand for natural thawing products
such as lunch box series, including Ebi Yose Fry (shrimp fry),
which led to rm growth. The rice products eld was another
major focus and it saw good sales of The
★
®
CHA-HAN, which
attracted male consumers, Gudakusan Ebi Pilaf (shrimp pilaf), and
Gomoku Chahan
, which had been discontinued for a while but was
brought back due to customer demand.
New products in each of these elds incorporated
deliciousness technologies including ingredients that
enhance kokumi and avor, and
ingredients that quickly tenderize raw
materials.
J-OIL MILLS, INC. advanced
activities with the aim of being an
Oishisa Design Company that
creates deliciousness which can
move people with a focused pursuit
of the various values possessed by
edible oils (value for cooking, value
for health, value for avoring) and
expansion of the possibilities of
how edible oils can be used. It has
maintained a top market share for
olive oil, and it has stimulated the
market even more by seeking health
value through the sale of perilla and
linseed oils. Also, in July 2018, it
opened the Oishisa Design Studio,
a multifunction presentation facility
that will communicate new Oishisa
(deliciousness) concepts to people
inside and outside the company.
In regard to marketing, due to an
emphasis on consumer s viewpoint
and advanced use of the internet, we got closer to consumers by
adding digital communication to traditional mass advertising
eorts, which included using social media and websites such as
, providing communications that focus
on dierent life stages, implementing small-size marketing,
promoting Kachimeshi
®
which provides athlete support foods to
consumers, supporting dietary education that contributes to
health promotion, and cooperating with government initiatives.
We also unied advertising and PR messaging to further spread
the AGB brand.
Also, on the R&D and production side, we began to
concentrate together research and production locations that were
scattered across Japan. The four companies responsible for our
Japan food products business – Ajinomoto Co., Inc., Ajinomoto
Olive Oil Extra Virgin
Gyoza (Japanese-style dumplings)
Karaage no hi no abura
(oil for fried chicken)
The History of the Ajinomoto Group
III. Taking the First Step into the Next 100 Years
- 4. Overview of Main Businesses (FY2009 - 2019) -
86
Frozen Foods Co., Inc., Knorr Foods Co., Ltd., and Ajinomoto
AGF, Inc. – will concentrate their R&D functions in Kawasaki
in 2020. Also, in regard to food product production, in 2019
we integrated our food product manufacturing departments
at the Kawasaki and Tokai plants with Knorr Foods Co.,
Ltd. and Ajinomoto Packaging Inc. to form Ajinomoto Food
Manufacturing Co., Ltd., and by 2021 the manufacturing and
packaging of seasonings and packaged foods in Japan will be
concentrated into three locations – Kawasaki City in Kanagawa
Prefecture, Shimada City in Shizuoka Prefecture, and Yokkaichi
City in Mie Prefecture. Initiatives are underway to produce
even greater eciency and synergies than ever before.
Overseas food products business
The overseas food products business was positioned as a growth
driver in the FY2011 - 2013 and FY2014 - 2016 Medium-Term
Management Plans. In addition to previous eorts focused on
cash sales in traditional markets, we strengthened initiatives to
engage modern trade markets and markets for eating out, while
also building rm sales foundations through avor seasonings
and menu-specic seasonings tailored to local food preferences,
particularly in the Five Stars (Thailand, the Philippines,
Indonesia, Vietnam, and Brazil). In the Rising Stars (Africa,
Turkey and the Middle East, Pakistan, Myanmar, India, etc.),
where future growth was expected, we strived to achieve rapid
market cultivation with a focus on the acquisition of or alliances
with major local food companies. We also launched consumer
foods businesses centered on frozen foods in North America
and Europe.
In the Five Stars, our basic strategy was to expand
seasonings businesses rooted in each region and develop new
categories adapted to changes in eating habits and society
due to urbanization. To expand seasonings businesses, we
focused on sales growth for menu-specic seasonings and
liquid seasonings as new mainstay products to follow umami
seasonings and avor seasonings. We increased sales of
Ros Dee
®
Menu
in Thailand;
CRISPY FRY
®
and
Sarsaya
®
in
the Philippines; Sajiku
®
, SAORI
®
, and Mayumi
®
in Indonesia;
Aji-Quick
®
in Vietnam; and
Satis!
®
in Brazil. We also advanced
the cultivation of markets that included powdered beverages
(through products such as Birdy
®
3in1 and Birdy Maccha
®
in Thailand and Vietnam, and MID
®
and FIT
®
in Brazil),
and markets targeting food service and food manufacturing
businesses.
We also responded to urbanization by striving to establish
new categories and realize new sales channels and sales
opportunities. We launched frozen food products that catered
to demand for easy-to-prepare foods (Gyoza, frozen bread,
etc.), developed and introduced products for food service
and convenience stores, and expanded region of sales of
instant noodles (Yum Yum
®
, etc.). Through these initiatives, we
continuously achieved annual sales growth of around 10% in
the Five Stars, driving the growth of the Group.
Furthermore, we realized the growth of consumer
businesses in the advanced regions North America and Europe
through methods such as M&A. In the U.S., in 2014 we
acquired Windsor Quality Holdings, LP (headquarters: Houston,
Texas) for around 84 billion yen. In Europe, in 2013 we
established a new plant in Poland through a joint venture with
Jawo sp. z o.o., and in 2017 we acquired France-based Labeyrie
Traiteur Surgelés S.A.S. (LTS, headquarters: Le Neubourg) for
around 3.6 billion yen. Windsor Quality Holdings, LP boasted
a top share of the market for frozen Asian foods in the U.S.,
while LTS focused on products such as desserts and aperitifs.
By using both companies sales networks to sell our frozen
food products, which include Gyoza and fried rice, we tried to
accelerate business growth.
We also put an emphasis on speed for the cultivation of the
Rising Stars. In Africa, we worked to accelerate growth centered
around WEST AFRICAN SEASONING COMPANY LIMITED
(WASCO), which had been established in Nigeria in 1991,
by establishing Ajinomoto Foods Egypt S.A.E. in 2011 and
AJINOMOTO AFRIQUE DE L OUEST S.A. in Cote d Ivoire
in 2013. Following this in 2016, we acquired a 33% share in
Promasidor Holdings Limited, a major packaged food products
manufacturer that had developed businesses in 36 African
countries, and advanced a strategy by leveraging Promasidor s
sales network. In Turkey, we established Ajinomoto Istanbul
Food Sale Ltd. in 2011 and in 2013, we acquired a 50% share
in Kükre A.
Ş
., a local manufacturer of premium brand food
products, and made it into a subsidiary. From 2016 to 2017, we
continued to steadily build a business foundation by acquiring
Örgen Gida Sanayi ve Ticaret A.
Ş
., thereby acquiring its
bouillon, dry soup, menu-specic seasonings, and powdered
dessert businesses and brands, and we made Kükre A.
Ş
. into
a fully owned subsidiary. In 2018, Kükre A.
Ş
., Örgen Gida
Sanayi ve Ticaret A.S., and Ajinomoto Istanbul Food Sales Ltd.
were amalgamated to form Ajinomoto Istanbul Food Industry
and Trade Limited Company (headquarters: Istanbul) in order
to expand business within Turkey and realize exports to the
Ros Dee
®
Menu CRISPY FRY
®
Sajiku
®
Aji-Quick
®
Birdy
®
3in1
The History of the Ajinomoto Group
III. Taking the First Step into the Next 100 Years
- 4. Overview of Main Businesses (FY2009 - 2019) -
87
Middle East to expand the scale of business to a sales of around
10 billion yen as early as possible. During this period, in 2016
we also established a joint venture company with the Lakson
Group in Pakistan and reopened a local subsidiary in Myanmar,
creating a foundation for long-term, sustainable growth in both
countries.
Strengthening BtoBtoC business targeting food service
chains and packaged food product manufacturers in Japan
and overseas
With regard to the development of our food products business
over these 10 years, we also strengthened our commercial use
business (BtoBtoC) targeting food service chains and packaged
food product manufacturers, representing a signicant deviation
from our history, which focused on consumer markets. In
addition to changes in eating habits in Japan and overseas,
the Specialty policy led by President & CEO Masatoshi Ito
(2009-2015) also eectively dierentiated our products in the
commercial market, where evaluations are made by discerning
professionals.
In the market for the food service industry in Japan,
sluggish consumption had resulted in a fairly consistent
downward trend from its peak in 1997 to 2011, but from 2012
onward, it nally began to expand again due to a recovery in
economic conditions and an increase in inbound demand. On
the other hand, the markets for ready-made meals (premade
side dishes, lunch boxes, bread products, etc.) and packaged
food products (frozen and chilled precooked food products,
processed livestock vegetable and marine products, desserts
and sweets, noodles, beverages, etc.) had been expanding
fairly consistently. The business environment continued to
be generally favorable in overseas markets as well. This
was boosted by further depth and cultivation in our overseas
food businesses in the Five Stars and Rising Stars and the
establishment of foundations in North American and Europe
through M&A focused on frozen food business.
Within this, products that include Tencho (savory
seasonings) for industrial use and enzyme preparations that
enhance texture and physical properties such as ACTIVA
®
were
aected by food service trends in Japan to a certain extent,
so we enhanced our product lineup and strengthened our
relationships with major customers, and we increased overseas
sales as well as in Japan. The market for ready-made meals in
particular was growing, so we deepened our engagement with
major convenience store chains and realized many applications
for our products including Tencho (savory seasonings),
enzymes, and mayonnaise in mainstay convenience store
products, such as oden broth and rice balls.
Based on these developments, in April 2018, we
amalgamated our business that ready-made meal and food
service and our Tencho (savory seasonings), enzymes, MSG,
and nucleic acids business targeted packaged food product
manufacturers to establish the Solution & Ingredients
(S&I) Department. This department utilizes deliciousness
technologies to actively grow our integrated food solutions
business for packaged food manufacturers, food service and
ready-made meal customers.
Using digital technology to create new businesses and
making existing businesses more advanced
The advancement of digital technology has made it possible
to obtain and utilize huge volumes of digital data related
to consumer awareness and behavior. In light of this, we
established the Consumer Data Analysis & Business Creation
Department under the Food Products Division in April 2018.
This department gathers and analyzes data related to every
aspect of consumer awareness and behavior and increases
resolution by getting closer to consumers. Using these data,
the department promotes cross-sectional initiatives such as
creating new products, services, and businesses that go
beyond the scope of existing businesses, and making
existing businesses more advanced and ecient by promoting
digitalization on a Group-wide basis, and its initiatives are
making a major contribution to strengthening the growth
potential of the entire Group.
(2) AminoScience business
Amino acid-related business development
In FY2009, our amino acid-related businesses recorded sales
of 193.5 billion yen, a year on year decrease of 6.2 billion
yen, and a relatively low level of prot with an operating
prot of 5.2 billion yen, a year on year increase of 0.2 billion
yen. Out of the ve elds of feed-use amino acids, amino
acids for pharmaceuticals and foods, sweeteners, intermediate
pharmaceuticals, and specialty chemicals, the only eld
performing strongly was specialty chemicals (which included
personal care ingredients, Jino
®
brand amino acid cosmetics,
and Ajinomoto Build-up Film
®
(ABF ) interlayer insulating
material for semiconductor packages). In the elds of feed-
Cook Do
®
Shirunashi Tantanmen
savorboost
TM
Okome Fukkura
Choriryo
Kokumidoru
®
(for richer sweets)
◆「コクミドル」〈スイーツ濃厚感〉
(Billions of yen)
FY2009 FY2019
Sales Operating prot Sales Business prot
193.5 5.2 231.6 19.5
Sources: IR Data Book 2020, INVESTOR’S GUIDE 2017
Table III-7: AminoScience business results (FY2009/FY2019)
The History of the Ajinomoto Group
III. Taking the First Step into the Next 100 Years
- 4. Overview of Main Businesses (FY2009 - 2019) -
88
From internally focused
“4 P’s” to
customer-driven “SAVE”
Advance ve principles aimed
at improving efciency
New initiative:
Innovate production
Expand specialty businesses
Clearly dene customer-driven value
Thoroughly eliminate excess from
the value chain
Build ows that create customer value
Gather capabilities as one team while at the
same time strengthening the capabilities of
each individual
Constantly improve with the goal of
perfection
Manufacturing
4.0
OE
SAVE
ASV
Specialty
4.0
SAVE Operational excellence Manufacturing 4.0
Manufacturing
4.0
Manufacturing
3.0
Manufacturing
2.0
Manufacturing
1.0
Specialty
4.0
Specialty
3.0
Specialty
2.0
Specialty
1.0
Specialty 4.0
Industrialization
Process
improvements
Automation
Connection of
VC and
customers
Material
capabilities
Synthesis
capabilities
Ability to provide
solutions meeting
customer needs
Ability to discover
and deliver
untapped value
Place
Promotion
Product Price
Access
Entanglement
Solution Value
company in India (and in August 2019 we announced our plan
to take full ownership of this company (details on p.45)) as a
low cost, high quality custom manufacturing location in order to
strengthen business structure. In 2013, we also acquired Althea
Technologies, Inc. (headquarters: San Diego) to strengthen
applications in the biopharmaceuticals market, including in the
growing eld of antibody drugs, and from that point onwards
we maintained a rm upward trend in revenues. In 2016, we
reorganized our structure for the contract manufacturing of
nucleic acid drugs from small volume multiproduct production
to mass production through the acquisition of GeneDesign,
Inc. and we integrated the operation of contract development
& manufacturing organizations (CDMO) in four locations –
Japan, the U.S., Europe, and India – as Ajinomoto Bio-Pharma
Services to build a structure for providing global services.
Our full-scale website business began in 1997 through
sales of Jino
®
cosmetics. In 2005, we leveraged the business
model developed through our Jino
®
eorts to begin sales of
supplements by mail-order, and we then grew this business
through advertisements in various media, including newspapers,
TV, and websites. In FY2017, we integrated the Jino
®
and
our proprietary website for direct sales of supplements and
from FY2018, we grew in this business area by expanding
the products handled to include nutritional care and website
exclusive high value food products (examples include
seasonings and soups).
Our sports nutrition business, which is centered around
the amino VITAL
®
series, aims to support conditioning when
doing sports by developing unique amino acid compositions
and deploying products based on the results of sports nutritional
science research focused on sports physiology. We also entered
the protein and jelly drink markets, through which we increased
contributions to general consumers in a range of sporting
scenarios. We have increased our customer base including
foreign customers and have expanded the business to cover
10 countries. We have also been enhancing brand value by
supporting Olympic and Paralympic athletes at the London, Rio
de Janeiro, and Tokyo Games.
In the pharmaceutical peripherals eld, in addition to
engaging in the nucleic acid and antibody drugs businesses
use amino acids and sweeteners, which involved relatively
high ratios of bulk business, factors such as price competition
from manufacturers in the U.S., China, and South Korea and
the appearance of new competing sweetener products made it
particularly dicult for us to compete using our strengths of
technological capabilities and marketing.
In the feed-use amino acids business, which had accounted
for a large portion of sales and prots in the early 2000 s, we
were focusing on lysine, threonine, and tryptophan, but factors
that included increasing competition led to wild uctuations
in the prices of these products. Therefore, in September 2011,
we spun o the business to form Ajinomoto Animal Nutrition
Group, Inc. (AANG) and based on the key principle of shifting
to specialty , we strengthened our competitiveness regarding
lysine and threonine, which had become commodities, by
advancing OEM procurement through an alliance with a
Chinese manufacturers, and shifted focus to dierentiated
products such as AjiPro
®
-L.
Furthermore, our performance in the amino acids for
pharmaceuticals and foods business had been seesawing up to
FY2012, but from FY2013 it began trending towards rising
sales and prots and provided a support in terms of revenue
to our amino acids business, which was undergoing structural
reform. In November 2017, we invested 7.2 billion yen to
make the U.S.-based medical foods company Cambrooke
Therapeutics, Inc. (headquarters: Massachusetts) a full
subsidiary and fully entered to market for medical foods
targeting patients with amino acid metabolism disorders.
In the sweeteners business, which is centered on aspartame,
we advanced a shift from bulk business to consumer business
with a focus on PAL SWEET
®
and other products in Japan and
Refresco MID
®
powdered beverages, which are marketed in
South America. As a result of this shift, in FY2015 we moved
the sweeteners business to the Food Products Division.
In FY2009, the intermediate pharmaceuticals (custom
manufacturing of pharmaceuticals) business was struggling
due to factors such as exchange rate uctuations and declines
in sales. However, it began to recover from 2011 and in July
that year, S.A. Ajinomoto OmniChem N.V. (Belgium), which
plays a central role in the business, established a joint venture
Figure III-19: AminoScience business strategy pyramid
The History of the Ajinomoto Group
III. Taking the First Step into the Next 100 Years
- 4. Overview of Main Businesses (FY2009 - 2019) -
89
Category Concept Strengths Relevant Businesses
Life support
We realize comfortable lifestyles for consumers
and living with the society and the earth through
specialty chemicals (electronics materials)
business that contributes to the evolution of IoT
and animal nutrition business which reduces
environmental impact on land and water quality
by adjusting the amino acid balance of animal
feed.
・World-class knowledge of amino acids
・ Highly safe material development capabilities
and synthesis evaluation technology
・Global animal nutrition network
・Ajinomoto Animal Nutrition Group
Inc.
・Specialty Chemicals Department’s
electronic materials business
Healthcare
We provide a variety of unique materials, active
ingredients, and technologies to pharmaceutical,
cosmetics, toiletries, and other companies around
the world. We also support comfortable lifestyles
and improving quality of life for consumers
through the provision of fundamental foods
and amino acid supplements that leverage our
knowledge of amino acid functions and benets
and ability to discover new applications.
・R&D capabilities and production technology
for amino acids and other areas
・Ability to adapt to regulations
・Service providing capabilities
・Amino Acids Department
・Specialty Chemicals Department’s
personal care ingredients business
・Direct Marketing Department
・Sports Nutrition Department
・Pharmaceutical Custom
Manufacturing Department
(renamed as the Biopharma
Service Department in April 2020)
・AminoIndex Department
Table III-8: Composition of the AminoScience Division
mentioned previously, we also created and developed
new businesses in the disease risk evaluating service and
pharmaceutical cell culture medium elds. In regard to disease
risk evaluating services, in 2011 we launched AminoIndex
®
Cancer Screening
(
AICS
®
), a service for analyzing amino
acid concentrations in blood that can assess the possibility
of whether a person has cancer. Subsequently, we added an
AminoIndex
®
LifeStyle Diseases Screening
(
AILS
®
) service, which
assesses the risk of future strokes, heart attacks, and diabetes to
deliver a combined package named AminoIndex
®
Risk Screening
(AIRS
®
). This service is being provided by almost 1,500 medical
institutions across Japan (as of February 2020). The tests can
assess the risk of various diseases from a single blood sample,
and in addition to being oered as an optional test in medical
checkups, it is also being used as an item in local government
and corporate health checks. With this service, we are directly
contributing to society through our accumulated research into
amino acids.
In the specialty chemicals business, while a stagnation in
PC demand and other factors since FY2011 have had an impact
in the electronic materials eld, increased demand for server
and communications applications since FY2013 have driven
growth. In the personal care ingredients eld, recent concern for
the global environment has led to sales growth, particularly for
amino acid-based surfactants, and both elds have experienced
continuous growth. On a dierent note, since FY2017, Jino
®
operations have been the responsibility of the direct marketing
business.
As a result of these initiatives, in FY2019, the
AminoScience business (which absorbed the sports nutrition,
direct marketing, and AminoIndex businesses following the
dissolution of the Wellness Business Division in April 2015),
achieved sales of 95.3 billion yen and business prot of 7.1
billion yen in its life support business (animal nutrition and the
electronic materials business in specialty chemicals), and sales
of 136.3 billion yen and business prot of 12.3 billion yen in
its healthcare business (amino acids for pharmaceuticals and
foods, pharmaceutical cell culture media, the personal care
ingredients business in specialty chemicals, direct marketing
[supplements and cosmetics, including Jino
®
], sports nutrition,
pharmaceuticals custom manufacturing, and AminoIndex
®
).
The sum of both elds produced total sales of 231.6 billion
yen and business prot of 19.5 billion yen. This demonstrated
slight sales growth of 20% compared to FY2009, but prot was
almost four times higher, showing the protability of moving
away from bulk business.
Going forward, we plan to grow sustainably through
measures such as the full-scale development of an antibody
drug conjugate (ADC) custom manufacturing business and
the strengthening of our nucleic acid drugs business in the
healthcare eld, and expansion into domains adjacent to
the electronic materials business (servers, communications
applications, etc.) in the life support eld.
In both the food products and AminoScience business,
we have successfully strengthened core businesses through a
process of selection and concentration, pursued a high value
adding strategy of pursuing specialty through a shift from bulk
to retail, and cultivated overseas markets swiftly using external
resources. During this period, we have created and spread both
social value and economic value based on ASV and have made
this the starting point of the development and expansion of all
of our businesses and products.
Our new medium-term management plan started
in FY2020. If we can successfully attain market growth
through further emphasis of focus, pursuit of specialty, and
digitalization, the goal of becoming a GGSC (see p.62)
stipulated in the FY2011-2013, FY2014-2016, and FY2017-
2019 plans will be within touching distance.
The History of the Ajinomoto Group
III. Taking the First Step into the Next 100 Years
- 5. ASV Management at the Ajinomoto Group -
90
5
ASV Management at the Ajinomoto Group
- 2020 - 2025 Medium-Term Management Plan and
Vision for 2030
III. Taking the First Step into the Next 100 Years
- Aiming to Become a GGSC -
In February 2020, the Ajinomoto Group announced its Vision
for 2030 and 2020 - 2025 Medium-Term Management Plan.
First of all, we declared in our vision for 2030 to become a
solution-providing group of companies for food and health
issues and our message to society is that we will help people
worldwide enhance healthier lives by unlocking the power of
amino acids. The enhancement of healthier lives has become
a key issue in both emerging countries and advanced countries
that have low birthrates and aging societies, and it is important
that people improve their dietary habits from a young age. This
is an area where the Group can play a signicant role as we
have accumulated expertise related to foods and amino acids.
Additionally, we made resolving food and health issues
our new driver for growth alongside our previous focuses of
deliciousness and easy to prepare. Our strategy is to
make our products attracted among upper and middle-income
customer segments in emerging countries that are predicted
to experience rapid growth while increasing the products
prices per unit. To advance this strategy, in addition to the
reorganization of R&D structure carried out in April 2019
(integration of the Institute for Innovation into the Research
Institute for Bioscience Products and Fine Chemicals and the
Institute of Food Sciences and Technologies), in April 2020 we
carried out organizational reforms to manage the operations
of our three food businesses (sauce and seasonings, quick
nourishment, and frozen foods) in both Japan and out of Japan
under a unied structure. These organizational reforms aim
to encourage collaboration between our food business and
AminoScience business, and strengthen our ability to provide
solutions in a way that transcends the business between Japan
and overseas.
Furthermore, our new medium-term management plan
covers a period of six years rather than three like previous
plans, and we have divided it into Phase 1 (structural reform)
from 2020 to 2022 and Phase 2 (regrowth) from 2023 to 2025.
Broadly speaking, in Phase 1 we will complete the restructuring
of non-core businesses while also strengthening a foundation
(such as lineup of products and services, systems that engage
governments and healthcare providers, and human resources,
etc.) for resolving food and health issues in our core
businesses, so that we can realize growth in Phase 2.
In order to concentrate all business resources on resolving
food and health issues, we will raise value for consumers
centered on health to enhance intangible assets (human
resources, customers) through personnel and organizational
reforms. At the same time, we will enhance tangible assets
(nancial matters) with a focus on improved return on invested
capital by A) thoroughly raising awareness of all Group
employees about capital eciency and sustainable earning
power, B) implementing asset light measures (reductions
of 200 billion yen by FY2025), and C) promoting digital
transformation (DX) throughout the Group, including in areas
such as supply chain management and marketing.
The Group will continue to build on the accumulated self-
transformation eorts carried out in the 2010s so that we make
further progress as a food company unlike any other in the
world.
IV
Data
Data - 1. Financial Trends -
Data - 2. List of Director and Auditor Tenures -
Data - 3. Executive Tenures
and Changes in Number of Employees -
Data - 4. Diagram of HQ Organizational Changes
and Affiliates -
Data - 5. Timeline -
The History of the Ajinomoto Group IV. Data - 1. Financial Trends -
92
1) Japanese GAAP
131st Period 132nd Period 133rd Period 134th Period 135th Period 136th Period 137th Period 138th Period 139th Period
FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016
Sales, operating prot and net income (loss)
Sales (millions of yen) 1,190,371 1,170,876 1,015,215 972,648 948,705 951,359 1,006,630 1,184,100 1,091,414
Operating prot (millions of yen) 40,827 64,034 69,374 72,584 71,232 61,807 74,519 90,880 85,339
Net income (loss) (millions of yen)
（
10,227
）
16,646 30,400 41,754 48,373 42,159 46,495 63,427 52,595
Protability ratios
Ratio of operating prot to sales (%)
*
1
3.4 5.5 6.8 7.5 7.5 6.5 7.4 7.7 7.8
Ratio of net income to sales (%)
*
2
（
0.9
）
1.4 3.0 4.3 5.1 4.4 4.6 5.4 4.8
Ratio of gross prot to sales (%)
*
3
30.0 32.9 39.7 38.0 36.7 33.2 34.5 35.0 35.5
Ratio of SGA to sales (%)
*
4
26.6 27.4 32.9 30.5 29.2 26.7 27.1 27.4 27.6
Total assets, total shareholders’ equity and interest-bearing debt
Total assets (millions of yen) 1,057,786 1,082,238 1,077,418 1,097,057 1,091,741 1,093,165 1,255,090 1,262,113 1,336,931
Total shareholders’ equity (millions of yen) 585,234 602,769 608,191 605,349 635,287 594,950 669,576 619,872 623,106
Interest-bearing debt net (millions of yen) 79,832 50,035
（
8,410
） （
19,873
） （
67,187
）
10,538 43,299 43,462 148,340
Shareholders’ equity ratio (%)
*
5
55.3 55.7 55.4 55.2 58.2 54.4 53.3 49.1 46.6
Net debt / equity ratio (%)
*
6
16.6 12.4 4.4 2.9
（
3.2
）
7.3 12.8 15.9 31.2
Return indicators
Return on equity (ROE) (%)
*
7
（
1.7
）
2.8 5.0 6.9 7.8 7.1 7.4 9.8 8.5
Return on total assets (ROA) (%)
*
8
（
0.9
）
1.6 2.8 3.8 4.4 3.9 4.0 5.0 4.0
Per share value indicators
Net income (loss) per share (yen)
（
14.6
）
23.9 43.6 61.3 74.4 68.7 78.5 107.9 92.0
Book value per share (BPS) (yen) 838.5 863.7 871.6 894.6 1,004.4 1,002.3 1,131.4 1,066.8 1,094.8
Cash ow per share (CFPS) (yen)
*
9
60.1 103.9 106.6 131.2 152.5 155.6 159.2 199.5 172.6
Efciency indicators
Asset turnover (times)
*
10
1.10 1.09 0.94 0.89 0.87 0.87 0.86 0.94 0.84
Inventory turnover (times)
*
11
8.4 8.0 7.2 6.9 6.2 5.9 5.8 6.5 6.3
Number of days of inventory held
*
12
43.4 45.8 50.7 53.1 59.1 62.0 62.9 56.0 58.3
Liquidity indicators
Debt / Cash ow ratio (%)
*
13
349.0 204.4 188.4 147.8 128.7 137.3 187.4 204.4 303.0
Interest coverage ratio (times)
*
14
10.5 28.6 44.8 42.7 45.0 31.0 50.4 57.1 44.2
Current ratio (%)
*
15
204.3 213.5 236.5 226.5 229.3 232.8 169.5 267.5 238.0
Investment ratios
Price / Earnings ratio - PER (times) - 38.8 19.9 16.9 19.0 21.2 33.5 23.5 23.9
Price / Book value ratio PBR (times) 0.8 1.1 1.0 1.2 1.4 1.5 2.3 2.4 2.0
Price / Cash ow ratio - PCFR (times) 11.6 8.9 8.1 7.9 9.3 9.5 16.6 12.7 12.7
Dividends and payout ratio
Dividends per share (yen) 16.0 16.0 16.0 16.0 18.0 20.0 24.0 28.0 30.0
Payout ratio (%)
*
16
- 67.1 36.7 26.1 24.2 29.1 30.6 26.0 32.6
Value indicators
Free cash ow (millions of yen)
*
17
（
10,788
）
42,597 66,833 51,611 103,703
（
480
） （
31,132
）
71,394
（
33,724
）
Note 1: “Net income” presents gures for “Prot (loss) attributable to owners of the parent company”
Note 2: For the coffee and edible oils business and some other businesses, the gross gures for sales and cost of goods sales were recorded in the accounts but from the year ended March 31,
2014 this method is changed by netting off sales and cost of goods sold and recording the net gure in the accounts. Post-reclassication basis from the year ended March 31, 2012.
Note 3: The following changes in accounting policies were conducted in FY2014. Sales promotion discounts paid to customers to expand sales are deducted from net sales. Figures for FY2011
and subsequent scal years have been restated.
Note 4: Numerical values in parentheses refers to a loss or decrease from the previous period.
▪
Methods of calculating
*1. Ratio of operating prot to sales = Operating prot / Sales
*2. Ratio of prot = Net income / Sales
*3. Ratio of gross prot to sales = Gross prot / Sales
*4. Ratio of SGA to sales = Selling expenses, General and administrative expenses / Sales
*5. Ratio of Shareholders’ equity = Total shareholders’ equity / Total assets
*6. Ratio of Net debt / equity = Interest-bearing debt / Shareholder’s equity (Net debt is interest-bearing debt - Cash on hand and in banks x 75%)
*7. ROE = Net income / Average shareholders’ equity
*8. ROA = Net income / Average total assets
*9. Cash ow per share = (Net income + Depreciation and amortization + Deferred income tax) / Outstanding shares
*10. Asset turnover = Sales / Average total assets
*11. Inventory turnover = Sales / Average inventory
*12. Number of days of inventory held = 365 / Inventory turnover
*13. Debt / Cash ow ratio = Average interest-bearing debt / (Net income + Depreciation and amortization)
*14. Interest coverage ratio = Net cash provided by operating activities / interest paid
*15. Current ratio = Current assets / Current liabilities
*16. Payout ratio = Dividends paid / Net income
*17. Free cash ow = Net cash provided by operating activities - Net cash used in investing activities
(1) Main consolidated nancial indicators
1. Financial Trends
(Note 1) to (Note 4)
The History of the Ajinomoto Group IV. Data - 1. Financial Trends -
93
2) IFRS Standards
138th Period 139th Period 140th Period 141st Period 142nd Period
FY2015 FY2016 FY2017 FY2018 FY2019
Sales, business prot, operating prot and prot attributable to owners of the parent company
Sales (millions of yen) 1,149,427 1,091,195 1,114,784 1,114,308 1,100,039
Business prot (millions of yen)
*
1
98,144 96,852 95,672 93,237 99,236
Operating prot (millions of yen) 99,678 83,617 78,706 53,642 48,773
Prot attributable to owners of the parent company 71,292 53,065 60,124 29,698 18,837
Protability ratios
Ratio of business prot to sales (%) *
2
8.5 8.9 8.6 8.4 9.0
Ratio of operating prot to sales (%) 8.7 7.7 7.1 4.8 4.4
Ratio of prot attributable to owners of the parent company to sales (%) *
3
6.2 4.9 5.4 2.7 1.7
Ratio of gross prot to sales (%) *
4
34.1 35.5 35.4 35.4 36.7
Ratio of selling expenses, research and development expenses, and general and administrative
expenses to sales (%) *
5
25.7 26.8 27.2 27.0 27.5
Return on equity (ROE) *
6
11.3 8.7 9.6 4.7 3.3
Ratio of business prot to total assets (ROA) *
7
7.8 7.4 6.9 6.6 7.2
Total assets, Equity attribute to owners of the parent company and Interest-bearing debt net
Total assets (millions of yen) 1,273,893 1,350,105 1,426,230 1,393,869 1,353,616
Equity attributable to owners of the parent company (millions of yen) 609,486 616,315 640,833 610,543 538,975
Interest-bearing debt net (millions of yen) 64,089 149,980 156,337 183,297 272,031
Ratio of equity attributable to owners of the parent company (%) *
8
47.8 45.6 44.9 43.8 39.8
Net debt / equity attributable to owners of the parent company ratio (%) *
9
18.5 31.4 31.7 36.3 57.0
Per share value indicators
Earnings per share (yen) 121.23 92.81 105.76 53.62 34.37
Book value per share (BPS) (yen) 1,048.96 1,082.90 1,128.44 1,113.93 983.19
Cash ow per share (CFPS) (yen) *
10
172.44 125.93 156.00 107.38 108.85
Efciency indicators
Asset turnover (times) *
11
0.91 0.83 0.80 0.80 0.80
Inventory turnover (times) *
12
6.41 6.34 6.32 6.11 6.05
Number of days of inventory held *
13
57.0 57.5 57.80 59.80 60.30
Liquidity indicators
Ratio of interest-bearing debt to cash ow (%) *
14
207.7 308.5 271.8 273.4 360.2
Interest coverage ratio (times) *
15
58.8 44 43.3 38.1 32.6
Investment ratios
Price / Earnings ratio - PER (times) 20.9 23.7 18.0 33.0 58.5
Price / Book value ratio - PBR (times) 2.4 2.0 1.7 1.6 2.0
Price / Cash ow ratio - PCFR (times) 14.7 17.4 12.3 16.5 18.5
Dividends and payout ratio
Dividends per share (yen) 28.0 30.0 32.0 32.0 32.0
Payout ratio (%) *
16
23.1 32.3 30.0 59.7 93.1
Value indicators
Free cash ow (millions of yen) *
17
70,565
（
33,392
）
27,551 50,333 48,205
▪
Methods of calculating
*1. A prot indicator dened by Ajinomoto for administrative purposes; Sales - Cost of sales - Selling expenses, Research and development expenses and General and administrative expenses +
Share of prot of associates and joint ventures
*2. Ratio of business prot to sales = Business prot / Sales
*3. Ratio of prot attributable to owners of the parent company to sales (%) = Prot attributable to owners of the parent company / Sales
*4. Ratio of gross prot to sales = Gross prot / Sales
*5. Ratio of SGA to sales = Selling expenses, Research and development expenses and General and administrative expenses / Sales
*6. Return on equity (ROE) = Prot attributable to owners of the parent company / Average equity attributable to owners of the parent company
*7. Ratio of business prot to total assets (ROA) (%) = Business prot / Total assets
*8. Ratio of equity attributable to owners of the parent company (%) = Equity attributable to owners of the parent company / Total assets
*9. Net debt / equity attributable to owners of the parent company ratio (%) = Interest-bearing debt / Equity attributable to owners of the parent company (Net debt is interest - bearing debt - Cash
and cash equivalents x 75%)
*10. Cash ow per share JPY (JPY) = (Prot attributable to owners of the parent company + Depreciation and amortization + Income taxes) / Outstanding shares
*11. Asset turnover = Sales / Average total sales
*12. Inventory turnover = Sales / Average inventory
*13. Number of days of inventory held = 365 / inventory turnover
*14. Debt / cash ow ratio (%) = Average interest-bearing debt / (Prot attributable to owners of the parent company + Depreciation and amortization +Income taxes)
*15. Interest coverage ratio (times) = Net cash provided by operating activities / Interest paid
*16. Payout ratio (%) = Dividends paid / Basic earnings per share
*17. Free cash ow = Net cash provided by operating activities - Net cash used in investing activities
The History of the Ajinomoto Group IV. Data - 1. Financial Trends -
94
(Millions of yen)
1) Japanese GAAP
131st Period 132nd Period 133rd Period 134th Period 135th Period 136th Period 137th Period 138th Period 139th Period
FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016
Assets
Current assets Cash and deposits 69,569 97,866 141,801 149,913 186,501 132,416 168,294 221,242 185,202
Notes and accounts receivable 188,444 194,545 194,227 205,778 196,473 200,115 202,980 181,860 177,841
Inventories 147,340 146,810 135,311 147,657 159,818 163,528 183,661 179,407 169,131
Others 47,284 48,128 45,091 39,025 43,281 52,147 52,982 41,554 45,926
Total current assets 452,639 487,351 516,432 542,375 586,074 548,209 607,919 624,063 578,102
Investments
and long-term
advances
Investments in and advances to
unconsolidated subsidiaries and afliates
46,910 50,613 51,755 54,332 60,996 73,701 79,677 50,560 151,710
Investment securities 36,952 39,314 32,418 31,912 34,887 38,777 50,324 48,357 47,845
Others 12,670 11,656 13,183 12,766 11,316 9,112 9,256 11,989 10,593
Total investments and long-term advances 96,533 101,583 97,357 99,012 107,200 121,591 139,258 110,907 210,150
Property, plant
and equipment
Land 100,146 98,628 98,167 96,139 51,065 47,068 47,583 53,772 52,245
Buildings and structures 336,660 357,010 350,654 350,782 348,963 358,043 377,948 362,650 366,241
Machinery and equipment 602,258 609,130 596,443 606,467 630,369 652,073 705,513 684,806 692,499
Subtotal 1,039,065 1,064,769 1,045,265 1,053,389 1,030,398 1,057,185 1,131,045 1,101,229 1,110,986
Accumulated depreciation
（
606,099
） （
652,930
） （
657,215
） （
664,705
） （
679,173
） （
697,814
） （
747,776
） （
715,028
） （
715,395
）
Property, plant and equipment, net 432,966 411,839 388,050 388,683 351,224 359,370 383,269 386,201 395,590
Total other assets 75,646 81,463 75,578 66,985 47,241 63,994 124,643 140,941 153,088
Total assets 1,057,786 1,082,238 1,077,418 1,097,057 1,091,741 1,093,165 1,255,090 1,262,113 1,336,931
Liabilities
Current liabilities Short-term borrowings and
Commercial paper
26,706 9,963 16,209 17,790 12,365 14,641 102,191 6,456 6,294
Current portion of long-term borrowings
and Current portion of bonds
3,056 20,923 5,316 4,406 23,411 22,011 33,677 11,189 24,125
Notes and accounts payable 95,537 99,643 104,226 113,545 109,310 105,699 115,066 91,311 89,798
Income taxes payable 8,328 13,095 7,900 9,465 20,590 8,497 7,725 10,288 10,137
Others 87,877 84,609 84,689 94,245 89,861 84,679 99,932 114,059 112,565
Total current liabilities 221,506 228,236 218,341 239,455 255,541 235,529 358,594 233,304 242,920
Long-term
liabilities
Long-term borrowings 118,594 114,788 109,272 104,837 81,434 104,429 74,147 245,207 301,188
Customers’ deposits received 13,312 13,330 13,220 13,202 13,020 12,424 12,093 12,270 12,247
Accrued employees’ retirement
benets
47,856 52,623 58,554 62,962 28,796 61,845 43,631 52,325 55,268
Accrued ofcers’ severance benets 1,315 1,113 1,331 1,016 517 415 427 435 464
Others 36,546 28,966 26,406 25,422 20,720 23,015 22,708 26,641 27,068
Total long-term liabilities 217,625 210,822 208,786 207,442 144,489 202,128 153,006 336,880 396,237
Total liabilities 439,131 439,058 427,127 446,897 400,030 437,657 511,600 570,184 639,157
Net assets
Share capital Common stock 79,863 79,863 79,863 79,863 79,863 79,863 79,863 79,863 79,863
Capital surplus 182,723 182,719 182,716 162,381 112,757 83,443 53,725 26,031 4,181
Retained earnings 389,100 394,672 414,189 444,728 482,501 501,945 536,170 578,451 605,887
Treasury stock
（
2,378
） （
2,437
） （
2,514
） （
2,219
） （
2,817
） （
31,085
） （
4,070
） （
6,944
） （
6,895
）
Total share capital 649,308 654,818 674,255 684,755 672,304 634,168 665,689 677,402 683,037
Accumulated
other
comprehensive
income
Unrealized holding gain (loss) on
securities
（
1,517
） （
232
）
1,339 2,678 9,419 13,043 22,783 17,804 17,936
Unrealized gain (loss) from hedging
instruments
220
（
16
） （
31
） （
141
） （
26
）
223
（
1,578
） （
1,063
）
Translation adjustments
（
62,777
） （
51,799
） （
67,045
） （
81,603
） （
46,295
） （
31,668
） （
4,655
） （
47,746
） （
46,230
）
Others - -
（
327
） （
478
）
-
（
20,567
） （
14,465
） （
26,008
） （
30,572
）
Total valuation, translation adjustments and others
（
64,074
） （
52,048
） （
66,064
） （
79,405
） （
37,017
） （
39,218
）
3,886
（
57,529
） （
59,930
）
Non-controlling interests 33,419 40,409 42,099 44,809 56,423 60,557 73,913 72,056 74,666
Total net assets 618,654 643,179 650,291 650,159 691,710 655,507 743,489 691,928 697,773
Total liabilities and net assets 1,057,786 1,082,238 1,077,418 1,097,057 1,091,741 1,093,165 1,255,090 1,262,113 1,336,931
(2) Consolidated statements of nancial position
The History of the Ajinomoto Group IV. Data - 1. Financial Trends -
95
(Millions of yen)
2) IFRS Standards
138th Period 139th Period 140th Period 141st Period 142nd Period
FY2015 FY2016 FY2017 FY2018 FY2019
Assets: Current assets
Current assets Cash and cash equivalents 204,487 186,003 187,869 153,725 141,701
Trade and other receivables 177,002 186,503 200,272 194,270 184,739
Other nancial assets 5,483 11,047 10,615 16,526 8,946
Inventories 175,217 168,755 184,109 185,036 178,636
Income taxes receivable 1,259 7,423 8,374 8,095 8,653
Others 15,271 13,711 12,919 13,944 16,225
Subtotal 578,722 573,445 604,160 571,599 538,901
Assets of disposal of groups classied as held for sale 51,008 - - 19,568 -
Total current assets 629,731 573,445 604,160 591,167 538,901
Non-current assets Property, plant and equipment 379,410 393,441 411,640 423,369 454,357
Intangible assets 37,446 60,422 66,144 66,132 69,245
Goodwill 96,889 96,606 107,394 91,373 89,964
Investments in associates and joint ventures 37,582 130,634 131,190 116,900 116,280
Long-term nancial assets 62,696 62,923 70,042 64,812 50,132
Deferred tax assets 10,007 8,249 13,080 15,589 17,781
Others 20,127 24,382 22,576 24,523 16,952
Total non-current assets 644,161 776,660 822,069 802,701 814,714
Total assets 1,273,893 1,350,105 1,426,230 1,393,869 1,353,616
Liabilities
Current liabilities Total and other payables 158,715 160,840 185,269 183,276 178,583
Short-term borrowings 12,499 11,153 15,280 10,989 8,043
Commercial paper - - - - 40,000
Current portion of bonds - - - - 19,995
Current portion of long-term borrowings 11,012 23,929 11,285 13,089 15,191
Other nancial liabilities 2,653 5,049 4,049 5,935 5,401
Short-term employee benets 34,646 35,501 37,811 37,273 41,588
Provisions 4,275 4,579 6,348 6,560 5,272
Income taxes payable 9,988 9,995 10,429 9,549 12,517
Others 8,340 9,744 9,636 11,510 8,972
Subtotal 242,132 260,794 280,111 278,185 335,566
Liabilities of disposal groups classied as held for sale
13,470 - - 13,571 -
Total current liabilities 255,602 260,794 280,111 291,756 335,566
Non-current
liabilities
Corporate bonds 89,656 169,347 169,413 169,479 149,550
Long-term borrowings 153,570 129,617 140,298 137,157 124,135
Other nancial liabilities 20,030 18,452 28,428 25,412 72,738
Long-term employee benets 53,213 57,592 64,807 64,406 66,659
Provisions 6,704 11,261 11,397 11,135 7,264
Deferred tax liabilities 13,925 12,163 10,448 7,392 4,503
Others 461 202 710 1,167 1,127
Total non-current liabilities 337,562 398,637 425,505 416,153 425,978
Total liabilities 593,165 659,431 705,616 707,909 761,545
Equity
Common stock 79,863 79,863 79,863 79,863 79,863
Capital surplus 26,021 3,797 955 3,266 -
Treasury stock
（
6,944
） （
6,895
） （
9,585
） （
2,361
）
(2,160)
Retained earnings 552,684 584,849 628,966 595,311 574,287
Other components of equity
（
41,976
） （
45,299
） （
59,366
） （
65,521
）
(113,015)
Disposal groups classied as held for sale
（
161
）
- -
（
16
）
-
Equity attributable to owners of the parent company 609,486 616,315 640,833 610,543 538,975
Non-controlling interests 71,240 74,358 79,780 75,417 53,095
Total equity 680,727 690,673 720,613 685,960 592,070
Total liabilities and capital 1,273,893 1,350,105 1,426,230 1,393,869 1,353,616
The History of the Ajinomoto Group IV. Data - 1. Financial Trends -
96
(Millions of yen)
1) Japanese GAAP
131st Period 132nd Period 133rd Period 134th Period 135th Period 136th Period 137th Period 138th Period 139th Period
FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016
Sales 1,190,371 1,170,876 1,015,215 972,648 948,705 951,359 1,006,630 1,184,100 1,091,414
Cost of sales
（
833,123
） （
785,578
） （
612,237
） （
603,420
） （
600,630
） （
635,594
） （
659,509
） （
769,230
） （
704,337
）
Gross prot 357,247 385,298 402,978 369,228 348,076 315,765 347,121 414,870 387,076
Selling expenses, general and administrative expenses
（
316,420
） （
321,264
） （
333,604
） （
296,644
） （
276,844
） （
253,957
） （
272,601
） （
323,989
） （
301,736
）
Operating prot 40,827 64,034 69,374 72,584 71,232 61,807 74,519 90,880 85,339
Interest expenses
（
4,774
） （
3,468
） （
2,440
） （
2,167
） （
1,931
） （
2,032
） （
2,140
） （
2,269
） （
2,473
）
Commission paid - - - - - - -
（
72
） （
65
）
Interest income and dividend income 2,000 2,174 2,171 2,821 2,902 3,196 4,020 4,164 4,348
Exchange gains (losses)
（
12,429
）
2,639
（
205
） （
7
）
552 699 1,675 583
（
177
）
Reversal to income of accrued severance
indemnities (benets)
61 16 - - - - - - -
Loss on devaluation of securities
（
799
） （
64
） （
7,416
） （
607
） （
2,346
） （
52
） （
3
） （
25
） （
89
）
Loss on devaluation of investments in afliates
（
257
） （
322
） （
92
） （
24
） （
9
） （
381
） （
624
） （
710
） （
582
）
Gain (loss) on sales of securities 286 66 900 526
（
36
）
- - - -
Gain on sales of shares of subsidiaries and
associates
- - - - 18,201 2,315 - 24,298
（
205
）
Gain on transfer of benet obligation relating to
employees’ pension fund
- - - - 27,752 236 - - -
Gain on termination of retirement benet system - - - - - - 9,290 - -
Gain on business combination achieved in stages - - - - - - - 18,027 -
Impairment loss
（
18,838
） （
14,325
） （
8,503
） （
1,106
） （
14,562
） （
624
） （
10,486
） （
7,467
） （
1,965
）
Loss on liquidation of afliates -
（
178
）
- - -
（
859
）
-
（
6,937
） （
970
）
Gain (loss) on sales of property, plant and
equipment
- - - - 908 3,081 1,269 725 5,034
Gain on liquidation of afliates - - - - - 1,005 - 272 -
Equity in earnings of afliates 2,524 3,461 2,990 2,401 3,058 3,360 5,177 1,558 4,345
Loss on disposal of property, plant and equipment
（
3,401
） （
4,536
） （
1,356
） （
3,320
） （
2,951
） （
1,222
） （
1,757
） （
2,799
） （
3,713
）
Pharmaceutical business restructuring charges - - - - - - -
（
16,623
）
-
Litigation expenses - - - - - - - - 1,012
Others
（
1,943
） （
4,705
） （
6,978
）
990
（
1,943
）
2,032
（
1,892
） （
3,452
） （
4,712
）
Non-operating income (expenses), extraordinary
gains (losses)
（
37,570
） （
19,242
） （
20,929
） （
493
）
29,595 10,754 4,529 9,272
（
214
）
Income (loss) before income taxes and minority
interests
3,256 44,791 48,444 72,091 100,828 72,561 79,049 100,153 85,125
Income tax, municipal tax, and business tax
（
14,402
） （
21,741
） （
18,150
） （
20,881
） （
39,716
） （
15,293
） （
18,932
） （
24,907
） （
21,561
）
Deferred income taxes 2,879
（
681
）
5,581
（
3,631
） （
6,015
） （
7,679
） （
4,741
） （
2,140
）
771
Total income taxes
（
11,522
） （
22,423
） （
12,568
） （
24,513
） （
45,732
） （
22,972
） （
23,673
） （
27,047
） （
20,790
）
Net income (loss) - - 35,876 47,578 55,095 49,588 55,375 73,105 64,334
Prot attributable to non-controlling interests
（
1,961
） （
5,721
） （
5,475
） （
5,823
） （
6,722
） （
7,429
） （
8,880
） （
9,678
） （
11,739
）
Prot (loss) attributable to owners of the parent
company
（
10,227
）
16,646 30,400 41,754 48,373 42,159 46,495 63,427 52,595
133rd Period 134th Period 135th Period 136th Period 137th Period 138th Period 139th Period
(Consolidated comprehensive income statement) FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016
Net income 35,876 47,578 55,095 49,588 55,375 73,105 64,334
Unrealized holding gain on securities 1,677 1,227 6,363 3,479 8,929
（
4,688
） （
170
）
Unrealized gain (loss) from hedging instruments 34
（
9
） （
159
）
10 143
（
1,509
）
454
Translation adjustments
（
16,713
） （
14,831
）
41,462 14,793 34,129
（
57,756
）
1,881
Adjustments for retirement benets - - - 5,650 6,110
（
11,159
） （
5,227
）
Adjustment in pension liabilities of overseas subsidiaries 5
（
151
）
478 - - - -
Share of other comprehensive income of equity-method afliates
（
626
） （
567
）
1,339 722 1,459 2,387 697
Total other comprehensive income
（
15,622
） （
14,332
）
49,485 24,657 50,771
（
72,724
） （
2,366
）
Comprehensive income 20,253 33,245 104,581 74,245 106,147 380 61,968
(Breakdown)
Comprehensive income attributable to owners of the parent company 16,717 28,413 90,761 66,846 89,900
（
591
）
49,870
Comprehensive income attributable to non-controlling interests 3,536 4,831 13,819 7,399 16,247 972 12,098
(3) Consolidated statements of income
The History of the Ajinomoto Group IV. Data - 1. Financial Trends -
97
(Millions of yen)
2) IFRS Standards
138th Period 139th Period 140th Period 141st Period 142nd Period
FY2015 FY2016 FY2017 FY2018 FY2019
Sales 1,149,427 1,091,195 1,114,784 1,114,308 1,100,039
Cost of sales 757,135 704,177 720,118 719,299 696,166
Gross prot 392,291 387,018 394,666 395,008 403,873
Share of prot of associates and joint ventures 1,169 2,537 3,966 (515) (2,444)
Selling expenses 174,440 169,448 176,319 174,263 172,079
Research and development expenses 26,591 27,134 27,833 27,823 27,596
General and administrative expenses 94,284 96,119 98,807 99,167 102,516
Business prot 98,144 96,852 95,672 93,237 99,236
Other operating income 23,868 9,541 7,854 6,009 7,572
Other operating expenses 22,335 22,776 24,821 45,604 58,035
Operating prot 99,678 83,617 78,706 53,642 48,773
Finance income 5,292 7,283 9,578 8,116 8,030
Finance expenses 6,192 4,216 7,465 7,060 8,009
Prot before income taxes 98,778 86,684 80,819 54,698 48,795
Income taxes 20,635 21,717 15,330 17,697 20,384
Prot from continuing operations 78,143 64,966 65,489 37,001 28,410
Prot from discontinued operations 2,788 - 2,684 2,002 558
Prot 80,931 64,966 68,174 39,004 28,969
Attributable to:
Owners of the parent company 71,292 53,065 60,124 29,698 18,837
Non-controlling interests 9,639 11,901 8,049 9,306 10,132
Prot from continuing operations attributable to owners of the parent company 68,504 53,065 57,533 27,509 18,643
Prot from discontinued operations attributable to owners of the parent company 2,788 - 2,590 2,188 193
Prot attributable to owners of the parent company 71,292 53,065 60,124 29,698 18,837
(Appendix) Breakdown
Selling expenses Logistics expenses 46,432 43,787 51,826 52,857 51,007
Advertisement 32,371 35,148 35,583 33,895 35,923
Sales promotion expenses 27,611 26,399 25,400 22,971 22,121
Sales commissions 3,253 2,794 2,966 2,787 2,566
Employee benets expenses 42,396 39,996 37,738 40,247 39,201
Depreciation and amortization
expenses
2,167 2,020 2,050 2,221 5,309
Other 20,207 19,301 20,753 19,283 15,948
Total selling expenses 174,440 169,448 176,319 174,263 172,079
Total research and development expenses Employee benets expenses 12,760 12,717 12,996 12,952 12,456
Depreciation and amortization
expenses
2,024 2,201 2,323 2,619 2,807
Subcontracting expenses and
consumales expenses
6,407 6,979 6,901 6,848 7,147
Other 5,399 5,236 5,611 5,403 5,185
Total research and development expenses 26,591 27,134 27,833 27,823 27,596
General and administrative expenses Employee benets expenses 51,948 53,496 55,321 55,303 56,658
Depreciation and amortization
expenses
9,721 8,006 8,466 8,725 10,789
Other 32,615 34,616 35,019 35,138 35,068
Total general and administrative expenses 94,284 96,119 98,807 99,167 102,516
Other operating income Gain on step acquisitions 18,112 - - - -
Foreign exchange gain 1,160 - - - -
Gain on sales of property, plant and
equipment
879 5,312 450 626 1,492
Lease revenue - - 1,429 1,487 1,577
Interest on refund - - 564 236 30
Insurance fee - - 114 311 121
Reversal of provision for loss on
litigation
- - - - 863
Reversal of provision for loss on
contract
- - - - 1,111
Others 3,716 4,229 5,295 3,347 2,376
Total other operating income 23,868 9,541 7,854 6,009 7,572
The History of the Ajinomoto Group IV. Data - 1. Financial Trends -
98
(Millions of yen)
2) IFRS Standards
138th Period 139th Period 140th Period 141st Period 142nd Period
FY2015 FY2016 FY2017 FY2018 FY2019
Other operating expenses Impairment loss 7,124 1,965 11,681 18,134 30,728
Impairment loss on shares of
associates and joint ventures
- - - 14,107 4,232
Loss on sales of shares of subsidiaries
and associates
5,603 626 - - -
Loss on disposal of property, plant
and equipment
2,796 3,657 2,958 3,178 3,559
Litigation expenses - - 1,437 658 578
Foreign exchange loss - 1,272 1,103 210 49
Provision for loss on contract - 6,451 610 368 -
Business restructuring charges - - 315 2,448 1,785
Valuation loss on stock purchase
agreement
- 2,037 - - 6,525
Environmental measures expenses 1,013 377 - - -
Fees related special second career
program
- - - - 6,525
Others 5,798 6,389 6,712 6,497 10,575
Total other operating expenses 22,335 22,776 24,821 45,604 58,035
Financial income Interest income 2,825 3,162 4,405 4,375 4,409
Dividend income 1,317 1,217 1,336 1,383 1,493
Gain on valuation of derivatives - 975 - 2,087 1,790
Foreign exchange gain 1,094 1,303 3,108 - -
Others 55 625 728 270 338
Total nancial income 5,292 7,283 9,578 8,116 8,030
Financial expenses Interest expenses 2,326 2,532 3,058 3,347 3,804
Loss on valuation of derivatives 2,732 - 2,959 - -
Foreign exchange loss - - - 2,025 2,292
Unwinding of discount on provisions
arising from passage of time
4 3 2 8 2
Loss allowance for expected credit
loss
149 357 13 9 89
Others 978 1,322 1,432 1,670 1,820
Total nancial expenses 6,192 4,216 7,465 7,060 8,009
The History of the Ajinomoto Group IV. Data - 1. Financial Trends -
99
(Millions of yen)
1) Japanese GAAP
131st Period 132nd Period 133rd Period 134th Period 135th Period 136th Period 137th Period 138th Period 139th Period
FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016
Cash ows from operating activities
Income (loss) before income taxes and minority
interests
3,256 44,791 48,444 72,091 100,828 72,561 79,049 100,153 85,125
Depreciation 55,192 55,382 49,825 43,717 42,463 45,746 43,376 50,920 46,907
Impairment loss 18,838 14,325 8,503 1,106 14,562 624 10,486 7,467 1,965
Amortization of goodwill 5,497 5,000 4,505 4,503 2,265 1,589 2,201 7,093 6,620
Increase (decrease) in allowance for doubtful
accounts
（
507
）
228
（
85
） （
211
） （
210
）
252
（
56
）
40 671
Increase (decrease) in bonus reserve 181 387 1,552 227
（
237
）
354 1,461 1,639 308
Increase (decrease) in bonus reserve for directors
and others
（
114
）
195 33
（
2
） （
16
） （
5
）
97 7
（
123
）
Increase (decrease) in liabilities for retirement
benets
- - - - -
（
3,005
） （
1,957
） （
5,526
） （
3,783
）
Increase (decrease) in bonus reserve for directors
and others
2,134 4,988 6,036 4,095
（
3,688
）
- - - -
Increase (decrease) in allowance for directors'
retirement benets
（
638
） （
204
）
220
（
314
） （
240
） （
103
）
12
（
280
）
32
Increase (decrease) in provision for environmental
measures
1 187 170
（
67
）
52
（
38
）
306
（
62
） （
23
）
Increase (decrease) in provision for allowance of
investment loss
- - 264 209 107 152 90 217 -
Increase (decrease) in provision for loss on
guarantees
- - - - - - 564 116
（
681
）
Insurance income - -
（
182
） （
6,012
） （
1,800
） （
1,189
） （
330
）
- -
Interest and dividend income
（
2,000
） （
2,174
） （
2,171
） （
2,821
） （
2,902
） （
3,196
） （
4,020
） （
4,164
） （
4,348
）
Interest expense 4,774 3,468 2,440 2,167 1,931 2,032 2,140 2,269 2,473
Equity in earnings of afliates
（
2,524
） （
3,461
） （
2,990
） （
2,401
） （
3,058
） （
3,360
） （
5,177
） （
1,558
） （
4,345
）
Loss (gain) on sales and disposal of tangible xed
assets
2,674 4,686 1,284 3,927 2,174
（
1,430
）
598 2,074
（
1,321
）
Gain on sales of shares of subsidiaries and
associates
（
437
）
- - -
（
18,201
） （
2,315
）
-
（
24,298
）
205
Loss on liquidation of afliates - - - - - - - 6,937 970
Pharmaceutical business restructuring charges - - - - - - - 16,623 -
Gain on business combination achieved in stages - - - - - - -
（
18,027
）
-
Gain on termination of retirement benet system - - - - - -
（
9,290
）
- -
(Gain) loss on sales of securities 174
（
66
） （
900
） （
526
）
37
（
54
） （
12
）
14
（
5,659
）
Loss on devaluation of securities 799 64 7,416 607 2,346 52 3 - -
Loss on devaluation of investments in afliates 257 322 - - - - - - -
Gain on liquidation of afliates - - - - -
（
1,005
）
- - -
Loss (gain) on transfer of benet obligation relating
to employees’ pension fund
- - - -
（
27,752
） （
236
）
- - -
Notes and accounts receivable
（
3,882
） （
5,340
） （
2,054
） （
14,098
）
15,158 2,095 92 12,494
（
7,323
）
Notes and accounts payable
（
5,256
）
4,114 5,527 10,562
（
18,516
） （
6,212
）
2,605
（
2,039
）
1,315
Increase (decrease) in inventories
（
20,798
）
2,381 5,312
（
16,040
） （
7,048
） （
1,377
） （
4,768
）
3,423 2,883
Increase (decrease) in accrued consumption tax 1,600
（
374
）
887
（
1,814
）
1,863 2,501 3,258 - -
Increase (decrease) in other current assets - - 1,849
（
3,677
）
1,180 5,073
（
9,232
）
2,872 4,185
Increase (decrease) in other current liabilities - - - - 6,699
（
6,986
）
1,642 1,408
（
123
）
Others 7,137
（
5,516
）
3,272 5,335
（
1,518
） （
1,447
）
4,129
（
12,881
） （
640
）
Subtotal 66,360 123,387 139,165 100,563 106,480 101,070 117,270 146,935 131,743
Insurance proceeds - - 182 5,087 2,764 1,189 100 356 1,532
Retirement benets for employment transfers paid,
etc.
- - - - -
（
3,080
）
- - -
Interest and dividends received 3,164 3,040 3,521 4,166 3,697 4,559 5,370 5,901 4,859
Interest paid
（
4,938
） （
3,704
） （
2,518
） （
2,185
） （
1,965
） （
2,034
） （
2,166
） （
2,191
） （
2,446
）
Income taxes paid
（
12,886
） （
16,799
） （
27,633
） （
14,318
） （
22,475
） （
40,214
） （
11,344
） （
21,947
） （
27,665
）
Refund of income taxes for prior periods - - - - - 1,526 28 - -
Other - - - - - - -
（
3,835
）
-
Net cash provided by operating activities 51,699 105,924 112,716 93,312 88,501 63,017 109,259 125,219 108,024
(4) Consolidated statements of cash ows
The History of the Ajinomoto Group IV. Data - 1. Financial Trends -
100
(Millions of yen)
1) Japanese GAAP
131st Period 132nd Period 133rd Period 134th Period 135th Period 136th Period 137th Period 138th Period 139th Period
FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016
Cash ows from investing activities
Purchase of property, plant and equipment
（
56,355
） （
38,273
） （
40,634
） （
45,401
） （
60,691
） （
47,864
） （
45,056
） （
51,396
） （
56,090
）
Proceeds from sales of property, plant and
equipment
1,059 494 1,507 1,412 1,134 6,448 1,819 1,263 6,406
Purchase of intangible assets
（
4,679
） （
23,352
） （
3,488
） （
3,659
） （
5,045
） （
5,391
） （
3,875
） （
4,430
） （
30,131
）
Acquisition of investments in securities
（
273
） （
634
） （
1,020
） （
214
） （
324
） （
62
） （
129
） （
2,369
） （
2,040
）
Proceeds from sales of investments in securities 135 97 3,757 2,102 241 101 15 13 8,262
Proceeds from sales of investments in subsidiaries
resulting in change in scope of consolidation
- - - - - -
（
91,461
）
- -
Purchase of shares in subsidiaries resulting in
change in scope of consolidation
- - - - -
（
15,708
）
-
（
26,553
）
-
Proceeds from sales of shares in subsidiaries
resulting in change in scope of consolidation
- - - - 80,890 - - 4,133 2,235
Proceeds from sales of shares in associates and
joint ventures
480 - - - - 7,572 - 32,500 916
Purchase of shares in associates and joint ventures
（
499
） （
679
） （
149
） （
1,414
） （
3,650
） （
5,104
） （
2,456
） （
6,616
） （
63,979
）
Increase (decrease) in term deposits
（
1,376
） （
620
） （
5,487
）
4,435 1,862 502
（
572
） （
201
） （
564
）
Payments for long-term loans receivable - - - -
（
108
） （
3,942
） （
150
）
- -
Others
（
978
） （
359
） （
366
）
1,037 892
（
46
）
1,475
（
166
） （
6,763
）
Total net cash used in investing activities
（
62,487
） （
63,327
） （
45,882
） （
41,701
）
15,201
（
63,497
） （
140,391
） （
53,824
） （
141,749
）
Cash ows from nancing activities
Increase (decrease) in short-term borrowings 341
（
17,387
）
6,922 2,122
（
6,026
）
376 72,939
（
86,107
）
70
Increase (decrease) in commercial paper
（
5,000
）
- - - - - 15,000
（
15,000
）
-
Proceeds from long-term borrowings 3,034 17,013 52 23 115 45,000 3,022 116,011 -
Repayments of long-term borrowings
（
2,951
） （
3,208
） （
5,956
） （
5,225
） （
4,344
） （
4,137
） （
7,025
） （
22,381
） （
11,058
）
Proceeds from issuance of corporate bonds 34,986 - - - - - - 70,000 80,000
Redemption of corporate bonds
（
20,000
）
-
（
15,000
）
- -
（
20,000
） （
15,000
） （
15,000
）
-
Dividends paid
（
11,172
） （
11,154
） （
11,162
） （
10,997
） （
10,604
） （
12,437
） （
11,855
） （
15,982
） （
17,242
）
Distribution of dividends to non-controlling
shareholders
- - - -
（
2,226
） （
2,840
） （
2,794
） （
3,693
） （
3,927
）
Increase (decrease) in money held in trusts for
repurchase of treasury stock
- - - - -
（
2,520
）
2,520 - -
Purchase of treasury stock
（
1,107
） （
69
） （
87
） （
20,045
） （
50,225
） （
57,584
） （
2,707
） （
30,187
） （
30,034
）
Sales of treasury stock - - - - 2 2 2 1 -
Others
（
252
） （
3,204
） （
661
） （
3,333
） （
1,109
） （
1,108
） （
1,279
） （
304
） （
615
）
Total net cash provided by (used in) nancing activities
（
2,119
） （
18,011
） （
25,893
） （
37,456
） （
74,419
） （
55,248
）
52,823
（
3,288
）
16,175
Effect of currency rate changes on cash and cash equivalents
（
2,824
）
2,717
（
2,245
） （
1,356
）
8,838 958 12,071
（
14,180
）
249
Net change in cash and cash equivalents
（
15,732
）
27,303 38,695 12,798 38,122
（
54,770
）
33,762 53,925
（
17,300
）
Cash and cash equivalents at beginning of the year 83,164 67,790 95,063 133,744 146,647 184,770 130,028 165,160 217,791
Increase due to inclusion of subsidiaries in consolidation 358 - 9 - - - - - -
Increase in cash and equivalents resulting from change of
scal year end of consolidated subsidiaries
- - - - - - 13
（
1,112
）
-
Decrease due to inclusion of subsidiaries in consolidation -
（
30
） （
23
）
- - - -
（
460
） （
19,346
）
Increase in cash and cash equivalents on merger of non-
consolidated subsidiaries
- - - 103 - 28 1,356 278 -
Cash and cash equivalents at end of the year 67,790 95,063 133,744 146,647 184,770 130,028 165,160 217,791 181,144
Capital expenditure /
Investment (Inc. acquisition of intangible assets)
58,293 44,117 45,772 56,778 61,590 50,602 50,927 58,867 89,692
Depreciation 55,192 55,382 49,825 43,717 42,463 45,746 43,376 50,920 46,907
The History of the Ajinomoto Group IV. Data - 1. Financial Trends -
101
(Millions of yen)
2) IFRS Standards
138th Period 139th Period 140th Period 141st Period 142nd Period
FY2015 FY2016 FY2017 FY2018 FY2019
Net cash provided by operating activities
Prot before income taxes 98,778 86,684 80,819 54,698 48,795
Prot before income taxes from discontinued operations 11,064 - 4,009 1,931 680
Depreciation and amortization 50,852 46,273 51,783 52,485 61,986
Impairment loss 15,043 1,965 11,681 18,384 30,728
Impairment loss on shares of associates and joint ventures 11,784 - - 14,107 4,232
Pharmaceutical business restructuring charges 11,784 - - - -
Increase (decrease) in employee benets
（
3,859
） （
2,853
） （
2,560
） （
1,823
）
5,969
Increase (decrease) in provisions 1,507 5,939 1,202 975
(
4,433
)
Interest income
（
2,846
） （
3,162
） （
4,405
） （
4,373
） (
4,401
)
Dividend income
（
1,317
） （
1,217
） （
1,341
） （
1,351
） (
1,506
)
Interest expense 2,310 2,532 3,042 3,342 3,711
Share of prot of associates and joint ventures
（
1,585
） （
2,537
） （
3,981
）
560 2,444
Loss on disposal of property, plant and equipment 2,926 3,657 2,973 3,414 3,886
Gain on sales of property, plant and equipment
（
878
） （
5,312
） （
2,712
）
1806
(
1,492
)
Loss on sales of property, plant and equipment - - - 554 1,846
Gain on sales of shares of subsidiaries - -
（
40
） （
74
） (
559
)
Gain on sales of shares of subsidiaries and associates
（
27,570
） （
593
）
- - -
Loss on sales of shares of subsidiaries and associates 5,603 626 - 688 0
Gain on business combination achieved in stages
（
18,112
）
- - - -
Environmental measures expenses 1,013 377 859 1,244 440
Increase (decrease) in trade and other receivables 13,800
（
4,174
） （
9,329
） （
644
）
3,754
Increase (decrease) in trade and other payables
（
2,687
） （
1,478
）
20,720 3,375
(
8,919
)
Increase (decrease) in inventories 1,845 3,216
（
11,287
） （
3,877
） (
2,092
)
Increase (decrease) in accrued consumption tax
（
716
）
570
（
1,588
）
492
(
1,923
)
Increase (decrease) in other current assets 4,445 1,489 4,097
（
236
） (
2,250
)
Others
（
14,197
）
653 2,351 1,264
(
8,427
)
Subtotal 147,203 132,655 146,295 143,334 132,466
Insurance proceeds 356 1,532 - - -
Interest received 3,436 3,121 3,619 4,378 4,403
Dividends received 2,459 1,738 2,976 2,111 2,661
Interest paid
（
2,197
） （
2,474
） （
2,922
） （
3,239
） (
3,522
)
Income taxes paid
（
21,947
） （
27,665
） （
23,313
） （
23,328
） (
21,152
)
Total net cash provided by operating activities 129,311 108,907 126,655 123,256 114,856
Cash ows from investing activities
Purchase of property, plant and equipment
（
51,415
） （
56,055
） （
70,727
） （
70,185
） (
73,703
)
Proceeds from sales of property, plant and equipment 1,270 6,406 3,693 4,441 1,264
Purchase of intangible assets
（
5,039
） （
30,138
） （
7,239
） （
9,822
） (
8,338
)
Purchase of nancial assets
（
2,369
） （
7,242
） （
1,869
） （
3,495
） (
26
)
Proceeds from sales of nancial assets 13 8,664 3,082 6,940 11,621
Purchase of shares in subsidiaries resulting in change in scope of
consolidation
（
26,553
）
-
（
25,307
）
-
(
3,809
)
Proceeds from sale of shares in subsidiaries resulting in change in
scope of consolidation
4,133 2,235 386 3,276 2,754
Purchase of shares in investments accounted for using equity
method
- -
（
240
）
-
(
516
)
Proceeds from sales of shares in investments accounted for using
equity method
- - - - -
Purchase of shares in associates and joint ventures
（
6,616
） （
63,979
）
- - -
Proceeds from sales of shares in associates and joint ventures 32,500 916 - - -
Others
（
4,667
） （
3,109
） （
881
） （
4,078
）
4,100
Total net cash used in investing activities
（
58,745
） （
142,299
） （
99,104
） （
72,923
） (
66,651
)
The History of the Ajinomoto Group IV. Data - 1. Financial Trends -
102
(Millions of yen)
2) IFRS Standards
138th Period 139th Period 140th Period 141st Period 142nd Period
FY2015 FY2016 FY2017 FY2018 FY2019
Cash ows from nancing activities
Net change in short-term borrowings
（
85,172
） （
1,112
）
3,313
（
3,283
） (
1,759
)
Net change in commercial paper
（
15,000
）
- - - 40,000
Proceeds from long-term borrowings 115,856 - 23,388 8,543 3,545
Repayments of long-term borrowings
（
22,381
） （
11,058
） （
24,174
） （
11,962
） (
13,735
)
Proceeds from issuance of corporate bonds 69,703 79,690 - - -
Redemption of corporate bonds
（
15,000
）
- - - -
Dividends paid
（
15,982
） （
17,242
） （
17,065
） （
18,455
） (
17,555
)
Dividends paid to non-controlling interests
（
3,693
） （
3,927
） （
5,893
） （
4,889
） (
4,789
)
Purchase of treasury stock
（
30,187
） （
30,034
） （
2,690
） （
40,062
） (
6
)
Purchase of shares in subsidiaries not resulting in change of scope
of consolidation
（
644
） （
1,017
） （
217
） （
8,640
） (
49,274
)
Expenditure due to the repayment of leases - - -
(
1,119
) (
8,835
)
Others
（
318
） （
557
） （
611
）
947 103
Total net cash provided by (used in) nancing activities
（
2,820
）
14,738
（
23,951
） （
78,923
） (
52,306
)
Effect of currency rate changes on cash and cash equivalents
（
13,324
）
169
（
1,734
） （
754
） (
7,925
)
Net change in cash and cash equivalents 54,420
（
18,484
）
1,865
（
29,344
） (
12,024
)
Cash and cash equivalents at beginning of the year 169,413 204,487 186,003 187,869 153,725
Cash and cash equivalents included in assets of disposal groups classied as held for sale
（
19,346
）
- -
（
4,799
）
-
Cash and cash equivalents at end of the year 204,487 186,003 187,869 153,725 141,701
The History of the Ajinomoto Group IV. Data - 2. List of Director and Auditor Tenures -
103
2. List of Director and Auditor Tenures
Norio Yamaguchi
Masatoshi Ito
Osamu Tosaka
Namio Terashi
Keiichi Yokoyama
Yutaka Kunimoto
Shozo Hashimoto
Tomoyasu Toyota
Kiyoshi Miwa
Tomoya Yoshizumi
Takashi Nagamachi
Keisuke Nagai
Tamotsu Iwamoto
Shinichi Suzuki
Uichiro Niwa
Hiroyuki Miyake
Yoichiro Togashi
Hiromichi Oono
Koji Igarashi
Sakie T. Fukushima
Yasuo Saito
Etsuhiro Takato
Hideaki Shinada
Takeshi Kimura
Takaaki Nishii
Masaya Tochio
Hiroshi Fukushi
Makoto Murabayashi
Takashi Nawa
Chiaki Nosaka
Kimie Iwata
Ryozo Nishio
Rieko Sato
Hiroshi Adachi
Eisei Kaneda
Takeshi Ohyama
Yasushi Akasaka
Shizuo Tanaka
Masato Tsukahara
Kiyoshi Fujimura
Yoichiro Togashi
Masami Hashimoto
Atsushi Toki
Hiroshi Murakami
Hideki Amano
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
6.26 6.26
6.26 6.256.26
6.26 6.29
6.29
6.27
6.27
6.27
6.27
6.29
6.29
6.29
6.29
6.29
6.29
6.29
6.29
6.29
6.27
6.27
6.27 6.26 6.27
6.26
6.26
6.26
6.26 6.27
6.27
6.27 6.25
6.25
6.25
6.26
6.296.27
6.27 6.25
6.25
6.25
6.27
6.27
6.27
6.27
6.28
6.29
6.29
6.29 6.25
6.16
6.26
6.26
6.26 6.26
6.26
6.26 6.27
6.27
6.27
6.26
6.26
6.286.26
6.26
6.26
6.26
6.26
6.26
6.26
6.26 6.28
6.28
6.28
6.28
6.28
6.28
6.28
6.28
6.26 6.29
6.29
6.29
6.29
6.29
6.29 3.17
6.26
6.29
6.29
6.26
6.26
6.26
Corporate Auditor Representative
Member of the Board
of
Directors:
Chairman
Member of the Board of Directors:
Corporate Senior Vice President
Member of the Board of Directors:
President & CEO
Member of the Board of Directors:
Corporate Vice President
Member of the Board of Directors:
Corporate Executive Deputy President
Member of the Board of Directors
(Non-Executive)
The History of the Ajinomoto Group IV. Data - 3. Executive Tenures and Changes in Number of Employees -
104
3. Executive Tenures and Changes in Number of Employees
Masatoshi Ito
Osamu Tosaka
Namio Terashi
Keiichi Yokoyama
Yutaka Kunimoto
Tomoyasu Toyoda
Kiyoshi Miwa
Shigetoshi Suzuki
Hiroaki Nomura
Koichi Maeda
Tomoya Yoshizumi
Takashi Nagamachi
Keisuke Nagai
Tamotsu Iwamoto
Shinichi Suzuki
Toshirou Kobaru
Osamu Kurahashi
Kiyoshi Ooya
Harutoshi Oura
Takahiro Kuratani
Hiroyuki Miyake
Teizo Murata
Hiromi Yamada
Shinichi Kishimoto
Alain Vrillon
Jean Falgoux
Kazuhiko Yasutake
Toshihisa Kato
Yoichiro Togashi
Takashi Tsuji
Fumihiko Odashima
Hiromichi Oono
Koji Igarashi
Hidetora Yoshimine
Chiaki Sano
Hajime Mizusawa
Etsuhiro Takato
Tomoya Yamamoto
Hideaki Shinada
Yoshimi Nagano
Takao Sakurai
Takeshi Kimura
Shinji Suzuki
Tadanori Umezawa
Mitsunobu Suzumi
Shunichi Komatsu
Takaaki Nishii
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
6.26
6.26 6.29
6.29
6.29
6.29
6.29
6.29
6.29
6.29
6.29
6.29
6.29
6.29
6.29
6.29
6.29
6.29
6.29
6.29
6.29
6.29
6.29
6.29
6.29
6.29
6.29
6.29
6.29
6.29
6.29
6.29
6.26
6.26
6.26
6.26
6.26
6.26
4.1
4.1
6.26
6.26 6.27
6.27
6.27
6.27
6.27
6.27
6.27
6.27
6.27
6.27
6.27
6.27
6.27
6.27
6.26 6.26
6.26
6.26
6.26 6.27
6.27
6.27
6.27
6.27
6.26
6.26
6.26 6.29
6.26
6.26
6.26
6.26
6.26
6.26
6.26
6.26
6.26
6.26
6.26
6.26
6.26
6.26
6.26
6.26
6.26
6.26
6.26
6.26
6.26
6.26
6.26
6.26
6.26
6.26
6.26
6.26
6.26 6.25
6.25
6.25
6.26
6.26 6.29
1.31
6.29
6.26
6.26
6.26
President & Chief Executive Ofcer Corporate Executive Deputy President Corporate Senior Vice President Corporate Vice President Corporate Executive Ofcer
(1) List of terms of ofce for corporate executive ofcers
The History of the Ajinomoto Group IV. Data - 3. Executive Tenures and Changes in Number of Employees -
105
Masaya Tochio
Chiaki Nosaka
Hiroshi Fukushi
Kazuya Onomichi
Makoto Murabayashi
Masaya Sugimori
Yoshimasa Yoshimiya
Eiji Majima
Fuminao Hachiuma
Hiroshi Motoyama
Hideki Takeuchi
Masahiro Tani
Taro Fujie
Daniel Berovici
Gwinnett Bompas
Haruo Kurata
Hiroyuki Kojima
Kaoru Kurashima
Masayoshi Kurosaki
Jiro Sakamoto
Chika Morishima
Koji Tamura
Takayuki Koda
Narutoshi Fukase
Tadahiko Yokota
Hiroshi Tsujita
Junichiro Kojima
Yoshiteru Masai
Tetsuya Nakano
Tatsuya Sasaki
Hiroharu Motohashi
Masami Kashiwakura
Hideaki Kawana
Takumi Matsuzawa
Masaki Kashihara
David Enloe
Bernard Kreilmann
Hiroshi Shiragami
Tatsuya Sato
Takayuki Tahara
Tatsuya Okamoto
Ichiro Sakakura
Sumio Maeda
Toshiyuki Mochizuki
Hiroyuki Teramoto
Ayumu Kamiya
Shigeo Nakamura
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
6.29
6.29
6.29
6.29
6.26
6.26
6.26
6.26
6.26 6.29
6.29
6.26
6.26
6.26
6.26
6.26
6.1 6.23
6.29
6.27
6.27
6.27
6.25
6.25
6.256.27
6.27
6.27 6.27
6.27
6.27
6.27
6.27
6.27
6.27
6.27
6.27
6.27
6.27
6.27
6.27
6.27
6.27
6.27
6.27
6.27
6.27
6.27
6.27
6.27
6.27
6.27
6.25
6.25
6.25
6.25
6.25
6.25
6.25
6.25
6.25
6.25
6.25
6.25
6.25
6.25
6.25
6.25
6.25
6.25
6.25
6.25
6.25
6.25
6.25
6.25
6.25
6.25
6.25
9.30
President & Chief Executive Ofcer Corporate Executive Deputy President Corporate Senior Vice President Corporate Vice President Corporate Executive Ofcer
The History of the Ajinomoto Group IV. Data - 3. Executive Tenures and Changes in Number of Employees -
106
Note:
*1 “Number of employees” refers to the number of employees at the end of each scal year. “Number of temporary employees” refers to the average number of such workers hired each
year. They are not included in the number of employees.
*2 “Other Business” includes employees of business tie-ups between FY2010 and FY2014.
Fiscal
year
Number of employees by segment *
1
Number of
employees of
consolidated
companies
Number of
temporary employees
of consolidated
companies *
1
Japan food
products
International
food products
Amino acids
Bioscience
and ne
chemicals
Pharmaceutical
Life support Healthcare
Other
business *
2
Company-wide
(All Segments)
2009 6,629 10,426 4,314 2,062 3,183 601 27,215 13,417
2010 6,612 11,252 4,278 2,042 3,401 499 28,084 14,170
2011 6,566 11,583 4,452 1,695 3,378 571 28,245 13,845
2012 5,655 11,852 4,682 1,651 3,090 588 27,518 12,984
2013 5,157 12,678 4,875 1,180 3,077 612 27,579 11,902
2014 6,760 14,513 4,945 1,087 3,307 700 31,312 12,170
2015 5,304 18,522 1,920 3,398 3,207 944 33,295 11,215
2016 5,414 18,648 1,807 2,535 3,377 953 32,734 10,252
2017 5,647 20,271 1,829 2,724 3,116 865 34,452 10,149
2018 5,638 20,310 1,472 3,047 3,113 924 34,504 9,682
2019 5,911 20,243 1,652 2,946 1,000 757 32,509 9,019
1) Number of employees including those of consolidated companies
2) Changes in the number of employees, including consolidated companies
0
10,000
20,000
30,000
40,000
50,000
2009
(Employees)
2010 2011 2012 2013 2014 2015 2016 2017 2018
2019
(Years)
Japan food products
Life support Healthcare Other business Company-wide (All Segments) Number of temporary employees
International food products Amino acids Bioscience and ne chemicals Pharmaceutical
(2) Changes in the number of employees
The History of the Ajinomoto Group IV. Data - 4. Diagram of HQ Organizational Changes and Aliates -
107
4. Diagram of HQ Organizational Changes and Afliates
Department
*1 With the transfer of some financial and accounting functions to AJINOMOTO FINANCIAL SOLUTIONS, Inc., the Finance & Accounting
Dept. was integrated into the Global Finance Dept.
*2 With the transfer of some public communicating functions to Ajinomoto Digital Business Partners, Co., Inc. (ADP), the Public Communications Dept. was integrated into the Global Communications
Dept. CSR-related functions were transferred to the newly established Sustainability Development Dept.
2009
Name in 2009
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
April 1,
2020
(current)
Internal Auditing Dept.
Corporate Planning Dept.
Finance Dept.
CSR Dept.
Public
Communications Dept.
Human Resources Dept.
General Affairs &
Risk Management Dept.
Production Planning Dept.
Environment &
Safety Dept.
R&D Planning Dept.
Internal Auditing Dept.
Corporate Planning Dept.
Business Strategy and
Development Dept.
Global Finance Dept.
Global Communications Dept.
Olympic & Paralympic
Promotional Office
Global Human Resources Dept.
Manufacturing Strategy Dept.
R&D Planning Dept.
7.1
4.1
4.1
4.1
Primary domestic business transferred to the Human Resources Dept.
4.1
Global Human Resources Management Dept.
Global Human Resources Dept.
4.1 Renamed Finance & Accounting Dept.
4.1(Became independent from the Public Communications Dept.)
4.1 Renamed the Production Management Dept.
3.31 Closed (Integrated into the Global Communications Dept.)
3.31 Closed *
2
(April 1: Integrated into the Global Communications Dept.)
Global Communications Dept.
7.1 Renamed the Manufacturing Strategy Dept.
3.31 Closed (Integrated into the Global Human Resources Dept.)
3.31 Closed *
1
(April 1: Integrated into the Global Finance Dept.)
Global Finance Dept.
Business Strategy and Development Dept.
4.1
(Became independent from the Global Communications Dept.)
Olympic & Paralympic Promotional Office
3.31 Integrated into the Global Human Resources Dept.
3.31 Closed
(April 1: Functions concerning general affairs,
safety and disaster preparedness, real estate management,
office management, etc. integrated into the Human Resources Dept.)
4.1 Became independent from the Global Human Resources Dept.
3.31 Closed (Integrated into the Production Management Dept.)
Human Resources Dept.
1) Corporate sector
(1) Ajinomoto Co., Inc. organizational changes
The History of the Ajinomoto Group IV. Data - 4. Diagram of HQ Organizational Changes and Aliates -
108
*3 The Sustainability Development Dept. was established by integrating the Environmental Support Group of the Environment, Safety & Plant Management Support Dept. (the ESP Dept.) and the
Nutritional Strategy Task Force. The functions of formulating procurement policies by the Manufacturing Strategy Dept. and the
Group Procurement Center have been integrated. The remaining
functions of the Group Procurement Center were transferred to ADP.
*4 With the establishment of the Sustainability Development Dept., the Manufacturing Strategy Dept. has integrated the ESP Dept
. (Safety & Plant Management Group).
*5 With the transfer of some functions of the General Affairs & Risk Management Dept. to ADP, the other functions, which included compliance, risk management, and shareholder relations have
been integrated into the Legal Dept. and the name has been changed to the Legal & Compliance Dept.
*6 Became independent from the Quality Assurance Dept., with its own organizational structure.
*7 The Customer Service Office was transferred from the Corporate Service Division to the Food Products Division, and the consumer service functions of Ajinomoto Frozen Foods Co., Inc. and
Ajinomoto AGF, Inc. were integrated and renamed the Group Customer Service Center.
*8 The Advertising Dept. was transferred to the Food Products Division with the aim of strengthening collaboration between the food product related departments and the Consumer Data Analysis
and Business Creation Dept.
*9 Integrated into organizations such as the Research Institute for Bioscience Products & Fine Chemicals, the Institute of Food Sciences and Technologies, the Information System Planning Dept.,
and the Production & Technology Administration Center.
Department
2009
Name in 2009
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
April 1,
2020
(current)
4.1 Renamed the Legal & Compliance Dept. *
5
4.1 Renamed the Secretarial Dept.
3.31 Closed *
9
4.1 Transferred *
8
4.1 Renamed the Institute for Innovation
Sustainability Development Dept.
4.1
4.1
4.1 Transferred *
7
4.1 Newly established *
6
4.1
4.1 (Became independent from the R&D Planning Dept.)
3.31 Closed *
3,
*
4
Smart Corporate Promotion Dept.
6.30 Closed
(Transferred to the Overseas Foods & Seasonings Dept.
and the Nutritional Strategy Task Force)
4.1
3.31 Closed *
3
10.1 Closed (Integrated into the Institute for Innovation)
Group Procurement Center
Legal Dept.
Secretarial Office
Information System
Planning Dept.
Quality Assurance Dept.
Intellectual Property Dept.
Advertising Dept.
Institute of Life Science
Research Institute for
Health Fundamentals
Smart Corporate Promotion Dept.
Sustainability Development Dept.
Creating Group’s
New Work-Place Dept.
Legal & Compliance Dept.
Secretarial Dept.
Information System
Planning Dept.
Quality Assurance Dept.
Intellectual Property Dept.
Customer Service Office
Environment, Safety & Plant Management Support Dept.
Nutrition Improvement Dept.
1) Corporate sector
The History of the Ajinomoto Group IV. Data - 4. Diagram of HQ Organizational Changes and Aliates -
109
*10 The domestic and overseas consumer foods framework has been shifted to a system with the business activities at the core. This has involved the restructuring of the organizational systems
of three key business areas (savory foods, nutritional and packaged foods, and frozen Asian foods and desserts), as well as the establishment of the Sauce & Seasoning Dept., the Quick
Nourishment Dept., and the Frozen Foods Business Dept.
Department
2009
Name in 2009
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
April 1,
2020
(current)
3.31 Closed
(duties transferred to other organizations)
Business Strategy & Planning Dept.
7.1
4.1
4.1
3.31
(Integrated into the Solution & Ingredients Dept.)
3.31
(Integrated into the Solution & Ingredients Dept.)
4.1
4.1 (Transferred from the AminoScience Division)
4.1 Renamed the Food Sales Strategy Dept.
(integrated into the Finance Group of the Finance & Accounting Dept.)
Solution & Ingredients Dept.
Consumer Data Analysis & Business Creation Dept.
4.1 Reorganized *
10
M Han
4.1 (Integrated into the Consumer Foods & Seasonings Dept.)
7.1 Integrated (Chushikoku Branch)
10.1(Integrated into the Institute of Food Sciences and Technologies)
4.1 (Made the Production & Technology Administration Center’s
food products related activities independent)
Food Production & Technology Administration Center
Global Frozen Foods Strategy Dept.
Group Customer Service Center
10.1
4.1 (With the establishment of Ajinomoto Food Manufacturing Co., Ltd.,
activities related to the AminoScience Division have been transferred to it)
4.1 (Transferred from the corporate sector)
4.1 *
7
3.31 Closed
(Transferred to
Ajinomoto General Foods, Inc.)
4.1
Business Strategy
& Planning Dept.
Seasonings Dept.
Processed Foods Dept.
Overseas Foods &
Seasonings Dept.
Food Service Dept.
Food Ingredients Dept.
Food Sales
Administration Dept.
Logistics Planning Dept.
Tokyo Branch
Kanto Branch
Osaka Branch
Chugoku Branch
Shikoku Branch
Kyushu Branch
Nagoya Branch
Hokuriku Branch
Tohoku Branch
National Account
Sales Dept.
Food Products
Application Center
Food Technology
Development Center
Kawasaki Plant
Gift Pack Dept.
Kawasaki Plant
(production)
Business Strategy &
Planning Dept.
Consumer Data Analysis &
Business Creation Dept.
Sauce & Seasoning Dept.
Quick Nourishment Dept.
Frozen Foods Business Dept.
Solution & Ingredients Dept.
Sweeteners Dept.
Food Sales Strategy Dept.
Logistics Planning Dept.
Group Customer Service Center
Advertising Dept.
M Dept.
Tokyo Branch
Kanto Branch
Osaka Branch
Chushikoku Branch
Kyushu Branch
Nagoya Branch
Hokuriku Branch
Tohoku Branch
National Account Sales Dept.
Food Production & Technology
Administration Center
Institute of Food Sciences
and Technologies
With the establishment of
Ajinomoto Food Manufacturing Co., Ltd.,
functional activities other than those related to
food products were transferred to
the Kawasaki Plant.
2) Food products division
The History of the Ajinomoto Group IV. Data - 4. Diagram of HQ Organizational Changes and Aliates -
110
Department
2009
Name in 2009
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
April 1,
2020
(current)
3.31 Closed (Transferred to the direct control of the AminoScience Division)
Business Strategy & Planning Dept.
7.1 (Established by combining staffing functions
and the AminoScience Business Development Dept.)
4.1 (Transferred to the Food Products Division)
4.1 3.31 Closed
11.1 Newly established (Animal Nutrition Business Management Office)
6.30 Closed
8.1
4.1 Renamed the Bio-Pharma Services Dept.
4.1 (Transferred from the Food Products Division)
10.31 Closed (Transferred to Ajinomoto Animal Nutrition Group, Inc.)
AminoIndex Dept.
4.1 Renamed the Sports Nutrition Dept.
Pharmaceutical Custom
Manufacturing Dept.
7.16.30 Closed
*11 The department was newly established to supervise the various departments with the reorganization of the Wellness Business
Division.
4.1 (Became independent from the Business Strategy & Planning Dept.)
4.1
Renamed the Production & Technology
Administration Center
4.1 (Integrated into the Research Institute for Bioscience & Fine Chemicals)
6.30 Closed (Transferred to the direct control of the AminoScience Division)
4.1 Renamed the Direct Marketing Dept. 4.1 Reorganized as a group in the Wellness Dept.
Wellness Dept. *
11
4.1 Direct Marketing Dept.
4.1 (Transferred to the AminoScience Division)
4.1
Transferred food products related activities to the Food Production &
Technology Administration Center
3.31 Closed
(Transferred to the AminoScience Division’s Wellness Dept.)
4.1 (Transferred to the Business Strategy & Planning Dept.)
4.1 Renamed the AminoIndex Dept.
General Planning Dept.
AminoScience Business
Development Dept.
Amino Acids Dept.
Specialty Chemicals Dept.
Intermediate
Chemicals Dept.
Health Service
Development Dept.
Amino Acid Consumer
Products Dept.
Sweeteners Dept.
Technology &
Engineering Center
Tokai Plant
Kyushu Plant
Animal Nutrition Dept.
Business Strategy
& Planning Dept.
Amino Acids Dept.
Specialty Chemicals Dept.
Bio-Pharma Services Dept.
Direct Marketing Dept.
Sports Nutrition Dept.
AminoIndex Dept.
Production & Technology
Administration Center
Kawasaki Plant
Tokai Plant
Kyushu Plant
Research Institute for
Bioscience Products
& Fine Chemicals
HI Dept.
S Dept.
AminoScience Laboratories
Fermentation &
Biotechnology Laboratories
Fine Chemical & Pharmaceutical
Industrialization Center
Bio-Industrialization Center
3) AminoScience division
The History of the Ajinomoto Group IV. Data - 4. Diagram of HQ Organizational Changes and Aliates -
111
Department
2009
Name in 2009
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
April 1,
2020
(current)
4.1 (Transferred to AJINOMOTO PHARMACEUTICALS CO., LTD.)
3.31 Closed (Transferred to the AminoScience Division’s Wellness Dept.)
3.31 Closed (Transferred to the Wellness Dept. of the AminoScience Division.
Some functions were then transferred to the Consumer Foods &
Seasonings Dept. on April 1, 2016)
6.30 Closed (Transferred to related departments such as the Corporate Planning Dept.)
6.30 Closed (Transferred to related departments such as the Corporate Planning Dept.)
6.30 Closed
4.1
4.1 Nutrition Care Dept.
4.1
(Pharmaceutical
Company)
Medical & Nutrition
Food Business Dept.
Affiliates Business
Management Dept.
CP Dept.
Wellness Business
R&D Planning Dept.
Pharmaceutical Business
Management Dept.
4) Other business (afliated company business)
The History of the Ajinomoto Group IV. Data - 4. Diagram of HQ Organizational Changes and Aliates -
112
*1 Acquired 50% share in Mondelēz International, Inc. of the U.S. making it a fully owned subsidiary.
*2 When Ajinomoto Frozen Foods Co., Inc. expanded its No. 1 Factory at the Kanto Plant, they started manufacturing the products that the FREC DESSERT CO., LTD. head office plant had
produced.
*3 SEVEN-ELEVEN JAPAN CO., LTD. is written as SEJ.
Since subsidiaries (1) to (9) were not mentioned in “The First 100 Years of the Ajinomoto Group” published in 2009. The dates o
f establishment or capital participation are listed below.
(1) Established on August 8, 1988. (2) Established on September 22, 1995. (3) Established on May 1, 1997. (4) Capital participa
tion: June 28, 1996. (5) Established on April 1, 1950.
(6) Established on April 16, 1956. (7) Established in September, 1963. (8) Established on March 25, 1986. (9) Established on De
cember 1, 2002.
J-OIL MILLS, INC.
Knorr Foods Co., Ltd.
Ajinomoto Packaging Inc.
3.31
Integrated into Ajinomoto Food Manufacturing Co., Ltd.
4.1 Ajinomoto Food Manufacturing Co., Ltd.
3.31
Integrated into Ajinomoto Food Manufacturing Co., Ltd.
4.1 Contract concluded *
1
7.1 Renamed Ajinomoto AGF, Inc.
7.1
(Integrated into Ajinomoto Frozen Foods Co., Inc.)
(Integrated into Ajinomoto Frozen Foods Co., Inc.) *
2
10.31 (Integrated into Ajinomoto Frozen Foods Co., Inc.)
Ajinomoto Animal Nutrition Group, Inc.
9.1
7.1
(Integrated into Ajinomoto Frozen Foods Co., Inc.)
AGF Suzuka, Inc. (1)
AGF Kanto, Inc. (2)
AGF Suzuka, Inc.
Manufacturing and packaging of coffee
AGF Kanto, Inc.
Manufacturing and packaging of coffee
J-OIL MILLS, INC.
Manufacture and sale of edible oils, etc.
Ajinomoto Food Manufacturing Co., Ltd.
Manufacture and sale of food and
related products, etc.
Ace Bakery Co., Ltd.
YAMAKI CO., Ltd.
AJINOMOTO HEALTHY SUPPLY CO., INC.
Ajinomoto Fine-Techno Co., Inc.
Ace Bakery Co., Ltd.
Manufacture and sale of bread for
SEJ, etc.*
3
Knorr Trading Co., Ltd.
Ajinomoto AFM Trading Co., Ltd.
Sale of food product ingredients and
food products
4.1 Renamed Ajinomoto AFM Trading Co., Ltd.
Consolidated subsidiaries Equity method affiliates Equity method joint ventures Non-equity method affiliates
Non-equity method non-consolidated affiliates
Other business
4.1 Renamed Ajinomoto Food Manufacturing Hokkaido Co., Ltd.
Hokkaido Knorr Foods Co., Ltd.
Ajinomoto Food Manufacturing Hokkaido Co., Ltd.
Manufacturing of food products
and ingredients
AJINOMOTO BAKERY CO., LTD.
Ajinomoto General Foods, Inc.
Ajinomoto Frozen Foods Co., Inc.
Ajinomoto AGF, Inc.
Manufacture, import and sale of
coffee and related products, etc.
Ajinomoto Frozen Foods Co., Inc.
Manufacture, import and export of
frozen foods, etc.
AJINOMOTO BAKERY CO., LTD.
Manufacture and sale of frozen bread
dough, etc.
YAMAKI CO., Ltd.
Manufacture and sale of processed
marine products, etc.
Ajinomoto Animal Nutrition Group, Inc.
General management of the animal
nutrition business
AJINOMOTO HEALTHY SUPPLY CO., INC.
Sale of ingredients for food products, etc.,
contract manufacturing of cosmetics
Ajinomoto Fine-Techno Co., Inc.
Manufacture and sale of electronic
materials, etc.
FREC DESSERT CO., LTD.
FFA International Co., Ltd.
Komec Co., Ltd.
FREC KANTO CO., LTD.
Major domestic Group companiesMajor domestic Group companies
2009
Name in 2009
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
April 1,
2020
(current)
Company names and
classications of consolidation
Businesses
Order of companies complies with the internal rules of Ajinomoto Co., Inc.
(2) History of group companies in Japan
The History of the Ajinomoto Group IV. Data - 4. Diagram of HQ Organizational Changes and Aliates -
113
*4 A new company funded 67% by Ajinomoto Co., Inc. and 33% by Accenture Japan Ltd. It has taken charge of some of the human resources, general affairs, public communications, and
procurement functions of Ajinomoto Co., Inc., the general affairs operations of the various headquarter organizations and part of the Support Division of Ajinomoto Communications Co., Inc.
*5 Succeeded the corporation established on October 2, 1952.
Delica Ace Co., Ltd.
Vege Pro Foods Co., Ltd.
SAPS CO., LTD.
Tsubame BHB Co., Ltd.
4.1 AJINOMOTO PHARMACEUTICALS CO., LTD.
(Merged with Ajinomoto Pharma Co., Ltd. and Ajinomoto Medica Co., Ltd.)
4.1 EA Pharma Co., Ltd. established
4.24 Investment
F-LINE CORPORATION
4.3
(Integrated into F-LINE CORPORATION)
3.1
(Integrated into F-LINE CORPORATION)
4.1 (Integrated into F-LINE CORPORATION)
4.1 (Integrated into AJINOMOTO LOGISTICS CORPORATION)
4.1 (Integrated into AJINOMOTO LOGISTICS CORPORATION)
4.1 (Integrated into AJINOMOTO LOGISTICS CORPORATION)
4.1 (Integrated into AJINOMOTO LOGISTICS CORPORATION)
4.1 (Integrated into AJINOMOTO LOGISTICS CORPORATION)
4.1 (Integrated into AJINOMOTO LOGISTICS CORPORATION)
3.1*
5
5.31 Sold
Bonito Technical
Laboratory Co., Inc.
(3)
Japan Standard Salt
Co., Ltd.(4)
Bonito Technical Laboratory Co., Inc.
Trade in processed marine products
Japan Standard Salt Co., Ltd.
Manufacture and sale of special
purpose salt, etc.
Ajinomoto
Communications Co., Inc.
Ajinomoto Communications Co., Inc.
Comprehensive Services
4.1 Partial transfer *
4
4.1 (Integrated into Ajinomoto Communications Co., Inc.)
Ajinomoto Digital Business Partners
Co., Inc.
An agent for Group business *
4
Ajinomoto Digital Business Partners Co., Inc.
4.1
Okinawa Ajinomoto Co., Inc.
Sale and promotion of the Group
products in Okinawa
Hokkaido Ajinomoto Co., Inc.
Sale and promotion of the Group
products in Hokkaido
NICHIEI BUSSAN CO., LTD.
Sale of food products and
wholesale trade
Shinmi Corporation
Wholesale trade of food products
Ajinomoto Trading, Inc.
Agent and the Group-related import
and export
EA Pharma Co., Ltd.
Development, manufacture,
and sale of pharmaceuticals, etc.
Tsubame BHB Co., Ltd.
Development of a new manufacturing
method for ammonia
AJINOMOTO
BUSINESS ASSOCIATES CO., INC.
9.30 Closed (Merged with Ajinomoto Communications Co., Inc.)
Consolidated subsidiaries Equity method affiliates Equity method joint ventures Non-equity method affiliates
Non-equity method non-consolidated affiliates
Other business
Kyushu Ace Logistics Corporation
Hokkaido Ace Logistics Corporation
AJINOMOTO LOGISTICS CORPORATION
Kansai Ace Logistics Corporation
Kanto Ace Logistics Corporation
Kyodo Ace Logistics Corporation
Chuo Ace Logistics Corporation
Tokai Ace Logistics Corporation
Tohoku Ace Logistics Corporation
Okinawa Ajinomoto Co., Inc.
Hokkaido Ajinomoto Co., Inc.
NICHIEI BUSSAN CO., LTD.
(5)
Shinmi Corporation (6)
Ajinomoto Trading, Inc.
Knorr Service Co., Ltd.
Delica Ace Co., Ltd.
Manufacture and sale of bento boxed
lunches for SEJ, etc.*
3
SAPS CO., LTD.
Manufacture and sale of seasonings
for SEJ *
3
F-LINE CORPORATION
Truck transportation and related
business, etc.
Ajinomoto Co., Inc.
Pharmaceutical
Company
2009
Name in 2009
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
April 1,
2020
(current)
Company names and
classications of consolidation
Businesses
(2) History of group companies in Japan
The History of the Ajinomoto Group IV. Data - 4. Diagram of HQ Organizational Changes and Aliates -
114
*6 Established on December 20, 2000, capital participation on December 21, 2016. Business details: 1. Manufacture and sale of p
harmaceuticals 2. Manufacture and sale of cosmetics 3.
Manufacture and sale of quasi-drugs 4. Manufacture and sale of medical equipment 5. Manufacture and sale of physics and chemistry equipment 6. Import, manufacture and sale of life
science research reagents and materials 7. Outsourcing of work related to life science research 8. All work related to the preceding items.
Kawaken Fine Chemicals
Co., Ltd.
Ajinomoto Kohjin Bio Co., Ltd.
Manufacture and sale of cell culture
mediums for regenerative medicine
J-CYSTEINE CO., LTD
Manufacture and sale of L-cysteine
hydrochloride
Kawaken Fine Chemicals Co., Ltd.
Manufacture and sale of surfactants, etc.
GeneDesign, Inc.
Manufacture and sale of
pharmaceutical products, etc.
Ajinomoto Direct Co., Inc.
Sale and promotion of supplements, etc.
ACE KOUNAI SERVICE CORPORATION
Product packaging, on-site receiving,
etc.
Hayama Marina Co., Ltd.
Yacht harbor and related businesses
AJINOMOTO FINANCIAL
SOLUTIONS, Inc.
Group Finance and Accounting
Ajinomoto Engineering Corporation
Design and construction of various
equipments
ELTEX Co., Ltd.
Design and construction of
instrumentation equipments
Ajinomoto Mirai Co., Ltd.
Cleaning Services
NRI System Techno Ltd.
Various work related to information
systems
Intellectual Property Expert Co., Ltd.
Various work related to intellectual
property
GeneDesign, Inc.
4.1 Renamed to AJINOMOTO FINANCIAL SOLUTIONS, Inc.
12.21 Contract concluded *
6
4.1 Renamed Ajinomoto Direct Co., Inc.
6.30 (Integrated into A-Direct Co., Inc.)
4.1 (Overseeing organization changed from Ajinomoto Packaging Inc.
to the Kyushu Plant of Ajinomoto Co., Inc.)
Engaged in all the financial operations of the Finance & Accounting Dept. of Ajinomoto Co., Inc.
(including the financial operations of ATM Company and Ajinomoto Food Manufacturing Co., Ltd.),
in addition to being entrusted with the financial operations of Ajinomoto Communications Co., Inc.
11.4
Ajinomoto Mirai Co., Ltd.
4.1 Transfer of capital (100% investment)
11.30 Dissolved
10.1 Sold
10.1 Sold
10.1 Sold
10.1 Sold
10.1 Sold
6.30 Sold all shares
4.1 Renamed NRI System Techno, Ltd.
Ajinomoto Kohjin Bio Co., Ltd.
J-CYSTEINE CO., LTD
6.1
7.15 Investment
Nippon Protein Co., Ltd.
A-Direct Co., Inc.
JINO Co., Ltd.
ACE KOUNAI SERVICE
CORPORATION
Hayama Marina
Co., Ltd. (7)
Ajinomoto Treasury
Management, Inc.
Ajinomoto
Engineering Corporation
ELTEX Co. Ltd. (8)
Ajinomoto
System Techno Corporation
Intellectual Property Expert
Co., Ltd.
(9)
AJINOMOTO
NUTRITION FOODS Co., Ltd.
Calpis Co., Ltd.
Calpis Business Support
Co., Ltd.
Calpis Logistics Co., Ltd.
Calpis Foods Service
Co., Ltd.
CA Real Estate Co., Ltd.
GABAN Co., Ltd.
Nippon Protein Co., Ltd.
Manufacture and sale of cysteines
Consolidated subsidiaries Equity method affiliates Equity method joint ventures Non-equity method affiliates
Non-equity method non-consolidated affiliates
Other business
2009
Name in 2009
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
April 1,
2020
(current)
Company names and
classications of consolidation
Businesses
(2) History of group companies in Japan
The History of the Ajinomoto Group IV. Data - 4. Diagram of HQ Organizational Changes and Aliates -
115
Since subsidiaries (1) to (10) were not mentioned in “The First 100 Years of the Ajinomoto Group” published in 2009. The dates
of establishment or capital participation are listed below.
(1) Capital participation on March 1, 2007. (2) Established on March 10, 2006. (3) Established on March 24, 1995. (4) Establish
ed on October 1, 1990. (5) Established on July 10, 2007.
(6) Established on November 1, 1975. (7) Established April 1, 1995. (8) Established on July 1, 1987. (9) Established on August
28, 2002. (10) Established January 21, 1992.
SHANGHAI AJINOMOTO
FOOD RESEARCH AND
DEVELOPMENT CENTER CO., LTD.
New Season Foods, Inc.
(1)
XIAMEN AJIRAKU
IDEAL FOODS CO., LTD.
(2)
Shanghai Ajinomoto
Seasonings Co., Ltd.
AJINOMOTO TAIWAN INC.
WEST AFRICAN SEASONINGS
COMPANY LIMITED
AJINOMOTO CO., (THAILAND) LTD.
AJINOMOTO SALES (THAILAND)
CO., LTD.
Ajinomoto Calpis Beverage
(Thailand) Co., Ltd.
BANGKOK ANIMAL
RESEARCH CENTER CO., LTD.
FD Green (Thailand)
Co., Ltd.
Ace Pack (Thailand)
Co., Ltd.
SI AYUTTHAYA
REALESTATE CO.,LTD.
Erawan Industrial
Development Co., Ltd.
SIAM TOKAI CO., LTD.
AB Logistics (Thailand)
Co., Ltd.
Myanmar Ajinomoto
Industry Co., Ltd.
Myanmar Ajinomoto
Co., Ltd.
(3)
Ajinomoto SEA Regional Headquarters
Co., Ltd.
Thailand: SEA headquarters for consumer foods business
SHANGHAI AJINOMOTO FOOD RESEARCH
AND DEVELOPMENT CENTER CO., LTD.
China: Development and accumulation of technologies
related to the analysis of food products
New Season Foods, Inc.
USA: Manufacture of soup ingredients
XIAMEN AJIRAKU IDEAL FOODS CO., LTD.
China: Manufacture and sale of
processed agricultural materials
Shanghai Ajinomoto Seasonings Co., Ltd.
China: Manufacture and sale of
seasonings and food products, etc.
AJINOMOTO TAIWAN INC.
Taiwan: Import and sale of seasonings
and food products
WEST AFRICAN SEASONINGS
COMPANY LIMITED
Nigeria: Manufacture and sale of seasonings
AJINOMOTO AFRIQUE DE L’OUEST S.A.
Cote d’Ivoire: Packaging and sale of
AJI-NO-MOTO
®
AJINOMOTO CO., (THAILAND) LTD.
Thailand: Manufacture and sale of seasonings,
food products, animal feed, etc.
AJINOMOTO SALES (THAILAND)
CO., LTD.
Thailand: Sale of seasonings, instant noodles,
beverages, animal feed, etc.
Ajinomoto Business Center
(Thailand) Co., Ltd.
Thailand: Shared service center for the
Group companies
ABBT Co., Ltd.
Thailand: Real estate maintenance
BANGKOK ANIMAL RESEARCH
CENTER CO., LTD.
Thailand: Livestock rearing and research
FD Green (Thailand) Co, Ltd.
Thailand: Manufacture and sale of fertilizer
and feed, cultivation of agricultural products
Ace Pack (Thailand) Co., Ltd.
Thailand: Holds stock in
Fuji Ace Co., Ltd. and other functions
SI AYUTTHAYA REALESTATE CO.,LTD.
Thailand: Real estate and
building maintenance
Erawan Industrial Development
Co., Ltd.
Thailand: Holds real estate and stocks,
supplies raw materials
SIAM TOKAI CO., LTD.
Thailand: Distribution of agricultural
and marine products
Yusen Food Supply Chain
(Thailand) Co., Ltd.
Thailand: Logistics services such as
cargo import and export, etc.
Myanmar Ajinomoto Industry
Co., Ltd.
Myanmar: Currently idle
Myanmar Ajinomoto Co., Ltd.
Myanmar: Currently idle
Myanmar Ajinomoto Foods CO., LTD.
Myanmar: Packaging and sale of
AJI-NO-MOTO
®
AJINOMOTO BANGLADESH LIMITED
Bangladesh: Packaging and sale of
AJI-NO-MOTO
®
, etc.
Ajinomoto SEA Regional Headquarters Co., Ltd.
Myanmar Ajinomoto Foods CO., LTD.
Currently idle
4.1 Name changed to Yusen Food Supply Chain (Thailand) Co., Ltd.
Currently idle
AJINOMOTO BANGLADESH LIMITED
8.14
1.5
1.20
10.1 Company name changed due to sale of Calpis Co., Ltd.
2.28
AJINOMOTO AFRIQUE DE L’OUEST S.A.
Ajinomoto Business Center (Thailand) Co., Ltd. established
2.17
Consolidated subsidiaries Equity method affiliates Equity method joint ventures Non-equity method affiliates
Non-equity method non-consolidated affiliates
Other business
2009
Name in 2009
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
April 1,
2020
(current)
Company names and
classications of consolidation
Country and businesses
Order of companies complies with the internal rules of Ajinomoto Co., Inc.
(3) History of group companies overseas
The History of the Ajinomoto Group IV. Data - 4. Diagram of HQ Organizational Changes and Aliates -
116
AJINOMOTO INDIA
PRIVATE LIMITED
AJINOMOTO PHILIPPINES
CORPORATION
AJINOMOTO PHILIPPINES
FLAVOR FOOD INC.
(4)
AJINOMOTO PHILIPPINES
GLOBAL FOOD INC.
AT ALLIANCE & HOLDINGS
COMPANY Inc.
(5)
Union Hikari Fertilizer
Industries, Inc. (6)
PT AJINOMOTO
INDONESIA
PT AJINOMOTO
SALES INDONESIA
P.T. AJINEX
INTERNATIONAL
Ajinomoto (Malaysia)
Berhad
AJINOMOTO (SINGAPORE)
PRIVATE LIMITED
AJINOMOTO VIETNAM
CO., LTD.
Ajinomoto Interamericana
Indústria e Comércio Ltda.
AJINOMOTO DEL
PERÚ S.A.
Sazonadores del
Pacico C. Ltda
Ajinomoto Korea, Inc.
AJINOMOTO INDIA
PRIVATE LIMITED
India: Manufacture and sale of seasonings
AJINOMOTO PHILIPPINES
CORPORATION
Philippines: Manufacturing and sale of
seasonings
AJINOMOTO PHILIPPINES
FLAVOR FOOD INC.
Philippines: Outsourced packaging of seasonings, etc.
AT ALLIANCE &
HOLDINGS COMPANY Inc.
Philippines: Real estate rental
Union Hikari Fertilizer
Industries, Inc.
Philippines: Manufacture and
sale of liquid fertilizer and animal feed
PT AJINOMOTO INDONESIA
Indonesia: Manufacture and sale of MSG,
flavor seasonings, etc.
PT AJINOMOTO SALES
INDONESIA
Indonesia: Domestic sale of seasonings, etc.
P.T. AJINEX INTERNATIONAL
Indonesia: Manufacture and sale of MSG
PT AJINOMOTO BAKERY INDONESIA
Indonesia: Development, manufacture and
sale of dough and frozen bakery products
Ajinomoto (Malaysia) Berhad
Malaysia: Manufacture and sale of
seasonings and sweeteners
AJINOMOTO VIETNAM CO., LTD.
Vietnam: Manufacture and sale of
seasonings and vinegar, etc.
AJINOMOTO (SINGAPORE)
PRIVATE LIMITED
Singapore: Import and sale of seasonings
and packaged foods
AJINOMOTO (CAMBODIA) CO., LTD.
Cambodia: Packaging and sale of
AJI-NO-MOTO
®
Ajinomoto Lakson Pakistan
(Private) Limited
Pakistan: Import and sale of seasonings
AJINOMOTO DO BRASIL INDÚSTRIA
E COMÉRCIO DE ALIMENTOS LTDA.
Brazil: Manufacture and sale of seasonings,
amino acids, etc.
AJINOMOTO DEL PERÚ S.A.
Peru: Manufacture and sale of seasonings,
instant noodles, etc.
Sazonadores del
Pacico C. Ltda
Ecuador: Import and sale of seasonings, etc.
Ajinomoto de México,
S. de R.L. de C.V.
Mexico: Manufacture and sale of seasonings
and packaged foods
Ajinomoto Korea, Inc.
Korea: Import and sale of seasonings,
etc.
Ajinomoto Nongshim Foods Co., Ltd.
Korea: Manufacture of packaged
foods such as soup, etc.
MARUCHAN AJINOMOTO
INDIA PRIVATE LIMITED
India: Manufacture and sale of instant noodles
7.13
9.15
8.29
12.21
12.3
PT AJINOMOTO BAKERY INDONESIA
AJINOMOTO (CAMBODIA) CO., LTD.
10. Renamed AJINOMOTO DO BRASIL INDÚSTRIA E COMÉRCIO DE ALIMENTOS LTDA.
(Merged Ajinomoto Interamericana Indústria e Comércio Ltda.)
1.20
Ajinomoto Lakson Pakistan (Private) Limited
Ajinomoto Nongshim Foods Co., Ltd.
Ajinomoto de México, S. de R.L. de C.V.
MARUCHAN AJINOMOTO INDIA PRIVATE LIMITED
10.14 Contract terminatedMARUCHAN AJINOMOTO NIGERIA LIMITED
1.20
5. (Absorbed by AJINOMOTO PHILIPPINES FLAVOR FOOD INC.)
2009
Name in 2009
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
April 1,
2020
(current)
Company names and
classications of consolidation
Businesses
Consolidated subsidiaries Equity method affiliates Equity method joint ventures Non-equity method affiliates
Non-equity method non-consolidated affiliates
Other business
(3) History of group companies overseas
The History of the Ajinomoto Group IV. Data - 4. Diagram of HQ Organizational Changes and Aliates -
117
*1 Concluded an equity purchase agreement based on an agreement to acquire Windsor Quality Holdings, LP in the U.S.; acquisitio
n completed in November of the same year.
*2 Acquired LABEYRIE TRAITRUR SURGELES S.A.S, a French company that manufactures and sells frozen foods.
*3 Acquired the 50.1% share in the U.S.’s liquid seasonings manufacturer More Than Gourmet Holdings, Inc.
Ajinomoto Poland
Sp. z o.o.
WAN THAI FOODS
INDUSTRY CO., LTD.
YATHAR CHO CO., LTD.
(7)
Convenience Foods
International Ltd.
Ajinomoto Frozen Foods
(Thailand) Co., Ltd.
Ajinomoto
Betagro Frozen Foods
(Thailand) Co., Ltd.
Ajinomoto
Betagro Specialty Foods
Co., Ltd.
LIANYUNGANG
AJINOMOTO RUYI FOODS
CO., LTD.
Lianyungang Ajinomoto
Frozen Foods Co., Ltd.
Xiamen Ajinomoto
Life Ideal Foods Co., Ltd
Ajinomoto Frozen Foods
U.S.A., Inc.
OOO“AJINOMOTO”
AJINOMOTO FOODS
EUROPE SAS
4.1 Renamed Ajinomoto Windsor, Inc.
4.1 Renamed Ajinomoto Foods North America, Inc.
4.1 Renamed Ajinomoto Frozen Foods France S.A.S.
10.3
4.22
7. Joint venture established
9.10 Contract concluded *
1
Ajinomoto Jawo Sp. z o.o.
Ajinomoto Toyo Frozen Noodles Inc.
11.2 Contract concluded *
2
Renamed LTS
Shanghai ABPan Co., Ltd.
8.20 Contract concluded *
3
Promasidor Holdings Limited
Ajinomoto Foods Egypt S.A.E.
10.18
11.8
Contract concluded
7.1 (Integrated into Ajinomoto Istanbul Food Sales Ltd.)
7.1 (Integrated into Ajinomoto Istanbul Food Sales Ltd.)Kükre A.Ș.
4.3
Contract concluded
8.17
Contract concluded
12.13 Capital participation
Örgen Gıda Sanayi ve Ticaret A.Ș.
7.21
7.1 Three companies merged and were renamed
Ajinomoto Istanbul Food Industry and Trade Limited Company
Ajinomoto Istanbul Food Sales Ltd.
Ajinomoto Istanbul Food Industry
and Trade Limited Company
Turkey: Manufacture and sale of
seasonings and packaged foods
Promasidor Holdings Limited
British Virgin Islands: Manufacture and
sale of seasonings, packaged foods, etc.
Ajinomoto Foods Egypt S.A.E.
Egypt: Sale of AJI-NO-MOTO
®
Ajinomoto Poland Sp. z o.o.
Poland: Manufacture and sale of
seasonings, instant noodles, etc.
WAN THAI FOODS INDUSTRY CO., LTD.
Thailand: Manufacture and sale of
instant noodles, retort-pack foods, etc.
YATHAR CHO CO., LTD.
Myanmar: Manufacture and sale of
instant noodles
Convenience Foods
International Ltd.
China: Manufacture and sale of
frozen foods
Ajinomoto Frozen Foods
(Thailand) Co., Ltd.
Thailand: Manufacture and sale of frozen foods
Ajinomoto Betagro Frozen Foods
(Thailand) Co., Ltd.
Thailand: Manufacture and sale of
chicken-based frozen foods
Ajinomoto Betagro Specialty Foods Co., Ltd.
Thailand: Manufacture and sale of
pork-based frozen foods
LIANYUNGANG AJINOMOTO
RUYI FOODS CO., LTD.
China: Manufacture and sale of frozen foods
Lianyungang Ajinomoto
Frozen Foods Co., Ltd.
China: Manufacture and sale of frozen foods
Xiamen Ajinomoto Life Ideal
Foods Co., Ltd
China: Manufacture and sale of frozen vegetables
and vegetable-based ingredients
Ajinomoto Jawo Sp. z o.o.
Poland: Development and
manufacturing of frozen foods
Ajinomoto Foods North America, Inc.
USA: Manufacture and sale of
seasonings and frozen foods
Ajinomoto Toyo
Frozen Noodles Inc.
USA: Manufacture of frozen noodles
Ajinomoto Frozen Foods
France S.A.S.
France: Manufacture and sale of frozen foods
OOO“AJINOMOTO”
Russia: Sale of seasonings,
frozen foods, etc.
Shanghai ABPan Co., Ltd.
China: Manufacture and sale of
frozen bread dough
AJINOMOTO FOODS EUROPE SAS
France: Manufacture and sale of MSG,
sale of seasonings
More Than Gourmet, Inc.
USA: Manufacture and sale of
liquid seasonings
2009
Name in 2009
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
April 1,
2020
(current)
Company names and
classications of consolidation
Businesses
Consolidated subsidiaries Equity method affiliates Equity method joint ventures Non-equity method affiliates
Non-equity method non-consolidated affiliates
Other business
(3) History of group companies overseas
The History of the Ajinomoto Group IV. Data - 4. Diagram of HQ Organizational Changes and Aliates -
118
*4 AFNA: Ajinomoto Foods North America, Inc., AHN: Ajinomoto Health & Nutrition North America, Inc.
*5 Has acted as the logistics base when selling medical food products manufactured by Cambrooke Therapeutics lnc. in Europe. He
adquarters in Cyprus, fully owned by Cambrooke Therapeutics lnc.
*6 Has acted as the European sales base for medical foods manufactured by Cambrooke Therapeutics lnc., fully owned by Cambrooke
Therapeutics lnc. Headquarters in Milan, Italy.
AJINOMOTO
(HONG KONG) CO., LTD.
Ajinomoto Heartland,
INC.
AJINOMOTO
EUROLYSINE S.A.S.
Ajinomoto Biolatina
Indústria e Comércio
Ltda.
AJITRADE (THAILAND)
CO., LTD. (8)
AJINOMOTO
EUROPE S.A.S. (9)
Ajinomoto U.S.A., Inc.
Ajinomoto (China)
Co., Ltd.
SHANGHAI AJINOMOTO
AMINO ACID CO., LTD.
TAISO COMMERCE INC.
S.A. Ajinomoto
OMNICHEM N.V.
Kenney & Ross, Limited
Canada: Manufacture and sale of
gelatin and collagen products
AJINOMOTO (HONG KONG) CO., LTD.
China: Import, sale, and brokerage of
the Group products
Ajinomoto Animal Nutrition
North America, Inc.
USA: Manufacture and sale of
amino acids for animal feed
AJINOMOTO ANIMAL
NUTRITION EUROPE S.A.S.
France: Manufacture and sale of amino acids
for animal feed and its by-products
Ajinomoto Animal Nutrition
(Singapore) Pte. Ltd.
Singapore: Sale of animal nutrition
related products
AJITRADE (THAILAND) CO., LTD.
Thailand: Import-export agent and sale
of seasonings, amino acids, etc.
AJINOMOTO EUROPE S.A.S.
France: Provision of services to
the Group Companies in Europe
Ajinomoto North America
Holdings, Inc.
USA: AFN and AHN holding company *
4
Ajinomoto Health &
Nutrition North America, Inc.
USA: Manufacture and sale of
amino acids and bulk foods
Ajinomoto (China) Co., Ltd.
China: Investment, consultation and
sale of feed additives
SHANGHAI AJINOMOTO
AMINO ACID CO., LTD.
China: Manufacture and sale of
pharmaceutical amino acids
Shanghai Ajinomoto Trading Co., Ltd.
China: Import, export and domestic
sale of amino acids
Ajinomoto Genexine Co., Ltd.
Korea: Manufacture and sale of culture
mediums
Ajinomoto Cambrooke, Inc.
USA: Development, manufacture and
sale of medical food products
Cambrooke International Ltd.
Cyprus: Sales base for medical food
products in Europe
Quaris S.r.l
Italy: Logistics base for medical food
products in Europe
Ajinomoto Fine-Techno
USA Corporation
USA: Import, export and sale of
electronic and functional materials
TAISO COMMERCE INC.
Taiwan: Sale and export of
AminoScience Division products, etc.
Ajinomoto Sanghai Specialty
Chemicals Co., Ltd
China: Sale of electronic materials and
information collection, etc.
PT Lautan Ajinomoto
Fine Ingredients
Indonesia: Manufacture of
cosmetic raw materials
S.A. Ajinomoto OMNICHEM N.V.
Belgium: Manufacture and sale of
pharmaceutical raw materials, etc.
Ajinomoto North America, Inc.
Renamed Ajinomoto Health & Nutrition North America, Inc.
Shanghai Ajinomoto Trading Co., Ltd.
Ajinomoto Genexine Co., Ltd.
Cambrooke International Ltd.
Quaris S.r.l
4.1 4.1
8.23
11.
11.9 Contract concluded
11.9 Contract concluded *
5
11.9 Contract concluded *
6
4.1 Renamed Ajinomoto Cambrooke, Inc.
1. Established 4.1 Commenced operations
12.10
2.15
Ajinomoto Fine-Techno USA Corporation
Ajinomoto Sanghai Specialty Chemicals Co., Ltd
PT Lautan Ajinomoto Fine Ingredients
11.1 Renamed Ajinomoto North America, Inc.
4.1 Renamed Ajinomoto North America Holdings, Inc.
Ajinomoto Animal Nutrition (Singapore) Pte. Ltd.
10.31 Renamed AJINOMOTO ANIMAL NUTRITION EUROPE S.A.S.
4.1 Renamed Ajinomoto Animal Nutrition North America, Inc.
4.1
(Merged Ajinomoto Interamericana Indústria e Comércio Ltda.)
4.
Became independent as
AJINOMOTO ANIMAL NUTRITION DO
BRASIL INDÚSTRIA E COMÉRCIO LTDA.
4.1
(Absorbed into AJINOMOTO DO BRASIL INDÚSTRIA
E COMÉRCIO DE ALIMENTOS LTDA.)
10.
Renamed AJINOMOTO DO BRASIL INDÚSTRIA
E COMÉRCIO DE ALIMENTOS LTDA.
7.29 Contract concluded
Kenney
＆
Ross, Limited
2009
Name in 2009
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
April 1,
2020
(current)
Company names and
classications of consolidation
Businesses
Consolidated subsidiaries Equity method affiliates Equity method joint ventures Non-equity method affiliates
Non-equity method non-consolidated affiliates
Other business
(3) History of group companies overseas
The History of the Ajinomoto Group IV. Data - 4. Diagram of HQ Organizational Changes and Aliates -
119
Agro2Agri, S.L.
Spain: Manufacture and sale of amino
acid-based agricultural raw materials
DADELOS AGROSOLUTIONS, S.L.
Spain: Manufacture and sale of amino
acid-based agricultural raw materials
AGRITECNO FERTILIZANTES, S.L.
Spain: Manufacture and sale of amino
acid-based agricultural raw materials
AGRIGENTUM 3, S.L.U.
Spain: Manufacture and sale of amino
acid-based agricultural raw materials
AGRITECNO EAST AFRICA
Kenya: Manufacture and sale of amino
acid-based agricultural raw materials
AGRITECNO WEST AFRICA
Cote d’Ivoire: Manufacture and sale of
amino acid-based agricultural raw materials
AgriTecno (Shanghai) Trading
Co., Ltd.
China: Manufacture and sale of amino
acid-based agricultural raw materials
OOO AGRITECNO
Russia: Manufacture and sale of amino
acid-based agricultural raw materials
10.1 Sold
10.1 Sold
4.1 (Consolidated with Ajinomoto Windsor, Inc.)
10.3 Contract concluded
10.3 Contract concluded
8. Closed
11. Liquidated
10.30 Sold
10.3 Contract concluded
4.1 Stock transferred
12.1 3.31 Closed
11.19 Contract concluded
AJIMEX SERVICIOS S.A. DE C.V.
AGRITECNO MX FERTILIZANTES, SOCIEDAD ANONIMA DE CV
AGRITECNO COLOMBIA EMPRESA UNIPERSONAL
AGRITECNO USA LLC
AgriTecno (Shanghai) Trading Co., Ltd.
10.3 Contract concluded
10.3 Contract concluded
9.2
4.5 Contract concluded
OOO AGRITECNO
Granules OmniChem Private Limited
Ajinomoto Althea, Inc.
10.3 Contract concluded
10.3 Contract concluded
10.3 Contract concluded
10.3 Contract concluded
10.3 Contract concluded
10.3 Contract concluded
Agro2Agri, S.L.
DADELOS AGROSOLUTIONS, S.L.
AGRITECNO FERTILIZANTES, S.L.
AGRIGENTUM 3, S.L.U.
AGRITECNO EAST AFRICA
AGRITECNO WEST AFRICA
*7 Approved on June 2, 2020 by the Indian government as a fully owned subsidiary (Company name: Ajinomoto Bio-Pharma Services India Private Limited).
AGRITECNO COLOMBIA
EMPRESA UNIPERSONAL
Columbia: Manufacture and sale of amino
acid-based agricultural raw materials
Granules OmniChem Private Limited
I
ndia: Manufacture of intermediate
pharmaceuticals and active ingredients
*
7
Ajinomoto Althea, Inc.
USA: Biopharmaceutical CDMO
AJINOMOTO ENGINEERING
2001 (THAILAND) CO.,LTD.
Thailand: Engineering and equipment
sales
ZAO “AJINOMOTO-GENETIKA
Research Institute”
Russia: R&D for microorganisms to
produce amino acid and nucleic acid
Ajimpex, S.A.
Panama: Import, export, and brokered
trade of the Group Companies products
AJINOMOTO
ENGINEERING 2001
(THAILAND)
CO.,LTD. (10)
ZAO
“AJINOMOTO-GENETIKA
Research Institute”
TAIWAN CALPIS
CO., LTD.
Amoy North America,
Inc.
Calpis U.S.A., Inc.
AJINOMOTO
EMPREENDIMENTOS
E PARTICIPACOES LTDA.
Nissin-Ajinomoto
Alimentos Ltda.
Ajimpex, S.A.
Amoy Food Ltd.
12. Closed
2009
Name in 2009
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
April 1,
2020
(current)
Company names and
classications of consolidation
Businesses
Consolidated subsidiaries Equity method affiliates Equity method joint ventures Non-equity method affiliates
Non-equity method non-consolidated affiliates
Other business
(3) History of group companies overseas
The History of the Ajinomoto Group IV. Data - 4. Diagram of HQ Organizational Changes and Aliates -
120
*8 Resolution made to dissolve on March 31, 2015
*9 Agreed to conclude an agreement to transfer all shares of Fuji Ace Co., Ltd. (51% ownership) to Fuji Seal International, Inc
.
*10 Transfer of shares approved on August 29, 2018.
*11 Transferred all outstanding shares to HYET Holding B.V., a holding company belonging to HYET Sweet B.V., a Dutch company that imports and sells sweeteners (sale completed on October
15, 2015). Ajinomoto Sweeteners Europe S.A.S. was established on November 27, 1991.
Shanghai Amoy Foods
Co., Ltd.
Shenzhen Amoy Foods
Ltd.
SHANGHAI HOUSE
AJINOMOTO FOODS
CO., LTD.
HENAN AJINOMOTO
AMINO ACID CO., LTD.
Shandong
Lingwei Seasoning
Co., Ltd.
AQY Sauce Co., Ltd.
AET Manufacturing
Co., Ltd.
Fuji Ace Co., Ltd.
ITOHAM
BETAGRO FOODS
CO., LTD.
STAR AND SUN
PTE. LTD.
PT SASA INTI
PT Ajinomoto
Calpis Beverage
Indonesia
Gaban Spice
Manufacturing (M)
SDN. BHD.
Gaban Spice
Marketing (M)
Sdn. Bhd.
Ajinomoto Sweeteners
Europe S.A.S.
Ajinomoto Switzerland
AG
Sold *
10
8.5 Became Non-group company
8.5 Became Non-group company
10.1 Sold
6.30 Sold shares to GABAN Co., Ltd.
6.30 Sold shares to GABAN Co., Ltd.
Dissolved end of February
10.15 Sold completed *
11
4. Liquidation completed
5. Liquidation completed
3.31 Sold *
9
Began liquidation *
8
4.22 Began liquidation
11.12 Began liquidation
Liquidated end of December
Sold
2.8 Became Non-group company
3.31 Liquidation completed
3.31 Liquidation completed
2009
Name in 2009
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
April 1,
2020
(current)
Company names and
classications of consolidation
Businesses
Consolidated subsidiaries Equity method affiliates Equity method joint ventures Non-equity method affiliates
Non-equity method non-consolidated affiliates
Other business
(3) History of group companies overseas
Timeline
The History of the Ajinomoto Group IV. Data - 5. Timeline -
122
■
Primary management
■
Business activities in Japan
■ Overseas operations ■ What was happening in society
■
Business related
■
Product related
■ Business related ■ Product related
2009 2009
1.9
4.—
5.11
6.26
7.31
8.25
9.17
Announced non-operating expenses of 10 billion yen
in Brazil
Commenced a bonito tagging survey with the
Fisheries Research Agency
Opened the Ajinomoto National Training Center
in Tokyo. Agreed with the Japanese Olympic
Committee to acquire the naming rights
Masatoshi Ito appointed President & CEO of
Ajinomoto Co., Inc.
Published its CSR report
Recruitment for the "Food and Health" international
support program
J-OIL MILLS, INC. published its 2009 CSR Report
5.11
7.24
10.1
Launched MediMill
®
and AminoCare
®
and started
nutritional care business
Acquired manufacturing and marketing rights for
pharmaceuticals to treat osteoporosis from Procter
& Gamble (P&G)
Ajinomoto Co., Inc. and Calpis Co., Ltd.’s gift
business integrated
2.19
2.23
2.23
6.15
7.7
8.17
8.24
8.24
8.24
8.24
8.—
10.22
Ajinomoto Frozen Foods Co., Inc. updated items
like Gyoza, creating new value by making them even
more delicious, safe, and secure
Launched Kobuuma, an umami seasoning made with
kelp
Launched amino VITAL
®
Water
Launched the Ajinomoto KK Asiamen series
Launched Black Tea Polyphenol, a Health
Fundamental Food
Launched GABAN
®
Spice Dressing
Launched No-Mikata
®
Launched a Japanese, Western, and Chinese soup
stocks with 30% less salt
PAL SWEET
®
was completely updated for the 25th
anniversary of its launch
Launched SUPER Citric Acid, a powdered beverage
containing citric and amino acids
Launched a new and improved Knorr
®
Cup Soup
variety
amino VITAL
®
recalled due to violation of usage
standards stipulated by the Food Sanitation Act
3.6
3.26
3.—
Established ITOHAM BETAGRO FOODS CO., LTD.
in Thailand (joint venture between ITOHAM FOODS
INC., BETAGRO PUBLIC CO., LTD. and Hoei Bussan
Co., Ltd.)
AJINOMOTO CO. (THAILAND) LTD., began operating
a biomass boiler at the Kamphaeng Phet Plant,
aiming to reduce
CO
2
Sold all shares of AJINOMOTO BIOITALIA S.p.A.
1.15
3.—
4.1
5.—
6.—
8. 3
9.1
9.—
11.—
U.S. plane crash led to the ‘Miracle on the Hudson
River’
Huge decits in electronics, automobiles, etc. due to
the global recession. Large staff lay-offs.
Meiji Seika Kaisha, Ltd. and Meiji Dairies Corporation
merged to form the holding company Meiji Holdings
Co., Ltd.
New inuenza strain, rst infections in Japan
In the U.S., the automakers General Motors (GM) and
Chrysler collapsed
The lay judge system was introduced in Japan and
the rst trial held at Tokyo District Court
Consumer Affairs Agency launched
The Democratic Party of Japan took control of
government (Yukio Hatoyama Cabinet)
Business review (the DPJ government held a
conference on administrative reform)
2010 2010
1.28
1.28
2.22
4.1
4.1
6.23
10.25
Released a new corporate slogan: “Eat Well, Live
Well.”
Ghana Project (A social business developed with
Royal DSM N.V. of the Netherlands)
Environmental Report won the 13th Environmental
Communication Awards prize
Transitioned from a virtual company system to a
business headquarters system
Established AJINOMOTO PHARMACEUTICALS CO.,
LTD.
Sumikazu Umeda became President & CEO of J-OIL
MILLS, INC.
Commenced joint research with the United States
Department of Agriculture (USDA) to solve the
problem of obesity by focusing on the satiety
delivered by Umami
3.10
5.18
9.24
10.1
Tokai Plant was subject to administrative dispositions
and guidance regarding manufacturing equipment
Sales partnership with between Ajinomoto General
Foods, Inc. and Starbucks Coffee Japan, Ltd. for
coffee products for home use
Signed ofcial sponsorship agreement with Japan
Swimming Federation
Dashi Cafe opened in Yurakucho, Tokyo
2.18
2.22
2.22
2.—
4.5
8.20
8.24
Ajinomoto Frozen Foods Co., Inc. launches Just
Bake It Bakery series
Launched Knorr
®
Cup Soup cold series
New variety launch and full update of Pasta Do
®
Launched Blendy
®
Stick Cafe Au Lait by Ajinomoto
General Foods, Inc.
Launched amino VITAL
®
Capsi
Ajinomoto Frozen Foods Co., Inc. launches Agezuni
Sakutto-san and the Puchi Cake series
Launched powdered AquaSolita
®
11.4 AJINOMOTO CO. (THAILAND) LTD. announced
construction of its umami seasonings plant
1. 4
2.12
5.—
6.13
9.15
12.4
World’s tallest skyscraper completed in Dubai,
United Arab Emirates
Vancouver Winter Olympics held
Apple Inc. in the U.S. launched the iPad
The asteroid probe Hayabusa returned after 7 years
The Collision Incident with Chinese Boat occurred in
the Senkaku Islands
Full JR Tohoku Shinkansen line opened
2011 2011
3.14
6.15
7.19
9.1
9.30
11. 24
The Ajinomoto Group provided a relief fund of 200
million yen and its products worth of 130 million yen
in response to the Great East Japan Earthquake
J-OIL MILLS, INC. invested in FUJI OIL (THAILAND)
CO., LTD.
Finalized repurchase of own stocks (5.5 million
shares, 5.5 billion yen)
Established Ajinomoto Animal Nutrition Group, Inc.
Rated Global No. 1 in food products for 2
consecutive quarters by the U.S.’s Patent Board, Ltd.
in an overall assessment of technological capability
Announced 30 million yen in support for those
affected by Thailand ooding
3.1
4.—
6.13
9.8
9.14
12.1
Commenced outsourcing production of feed grade
Threonine to FUFENG GROUP LTD. in China
Commenced business with AminoIndex
®
Cancer
Risk Screening (AICS
®
)
Concluded a joint venture agreement for frozen
bread dough in Shanghai, China
An article on AminoIndex
®
Cancer Risk Screening
(AICS
®
) published in the academic journal PLOS
ONE
Generic drug patent infringement lawsuit concerning
the osteoporosis pharmaceutical Actonel
®
Received the Minister of the Environment Award
for the Kawasaki Plant’s “Efforts to utilize Humus
(residue of defatted soybeans generated in the
process of manufacturing liquid seasonings)”
1.6
1.14
1.—
2.21
6.15
8.22
8.—
9.4
9.—
Ajinomoto Frozen Foods Co., Inc. announced the
start of development of the Ajina Eco logo
Launched Puru Puru Amino and Collagen, a Health
Fundamental Food
J-OIL MILLS, INC. launched Rama Soft Low Sodium
Launched Hiyashi Dashi-Gayu and Toromi Okoku
Vegetable Stir Fry
Launched AquaBalance, a Health Fundamental Food
Launched the Knorr
®
Soup DELI
®
series
Ajinomoto General Foods, Inc. launched Blendy
®
Stick Cocoa Au Lait
Ajinomoto Frozen Foods Co., Inc.’s Gyoza became
their single best-selling item for 8 consecutive years.
Launched an updated product for the Gyoza World
campaign
J-OIL MILLS, INC. launched Rama Margarine For
Butter Lovers
7.13
7.14
7.—
8.—
10.—
12.—
European businesses integrated into Ajinomoto Food
Europe S.A.S.
Established Granules OmniChem Private
Limited, a joint venture company for intermediate
pharmaceuticals in India
Established Ajinomoto Istanbul Food Sales Ltd.
Established AJINOMOTO BANGLADESH LIMITED
Established Ajinomoto Foods Egypt S.A.E.
Established AJINOMOTO AFRIQUE DE L’OUEST
S.A.
11.— AJINOMOTO CO. (THAILAND) LTD. launched
RosDee
®
Menu, avor seasonings that make
creating spicy dishes easy
3.11
3.12
3.15
7.17
7.—
10.26
The Great East Japan Earthquake and the Fukushima
Daiichi nuclear power plant disaster occurred
Full JR Kyushu Shinkansen line opened
Tokyo Electric Power Company Holdings, Inc.
commenced planned blackouts
Japan won the FIFA Women’s World Cup for the rst
time (held in Germany)
Extensive ooding occurred in Thailand, causing
prolonged damage
All Nippon Airways Co., Ltd. (ANA) operated the rst
commercial ight of its Boeing 787
2012 2012
3.27
4.1
5.29
5.31
7.25
7.27
8.6
10.1
Commenced joint procurement of coated paper
board packaging from overseas with Ezaki Glico Co.,
Ltd. and House Foods Corp.
Concluded a strategic business alliance agreement
for IT services with Nomura Research Institute, Ltd.
and established NRI System Techno, Ltd.
Health solutions business tie-up with Kao
Corporation (33.4% investment in Healthcare
Committee Inc.)
Concluded a memorandum of understanding for
a project improving nutrition of weaned children in
Ghana with U.S. ID and JICA
Launched AJINOMOTO
®
Park, an interactive food
community site
Conrmed the carbon footprints (CFP) value of 8
products including amino acid related products
Concluded a memorandum of understanding with
Vietnam National University, Hanoi to establish
an endowed chair for teacher training course for
nutritionists
Sold all shares of Calpis Co., Ltd. to Asahi Group
Holdings, Ltd.
2.13
2.23
3.28
4.16
4.—
5.3
5.23
5.31
9.15
11.7
11.8
12.25
Concluded an agreement for the joint development
of bio-based nylons with Toray Industries, Inc.
Applied for approval permitting domestic
manufacture and sale of MOVIPREP
®
, a new oral
intestinal cleanser
Added frozen foods to the JOC Gold Partner
program
Expanded application of the AminoIndex
®
Cancer
Risk Screening (AICS
®
) to include gynecologic
cancer
Introduced a new wastewater treatment facility at
the Kawasaki Plant and achieved one fteenth of the
legal limit
Acquired naming rights for Ajinomoto Field
Nishigaoka
Ajinomoto Frozen Foods Co., Inc. rebuilt the Kanto
Factory 1st Building
Concluded a contract with Bridgestone Corporation
for joint development biomass-derived synthetic
rubber
Presentation about the effects of high leucine
essential amino acid mixtures on early recovery from
muscle fatigue at the Japanese Society of Physical
Fitness and Sports Medicine
Full-scale introduction of resource-saving
fermentation technologies for animal feed grade
amino acids
Conrmed the effects of the alanine and proline
enriched carbohydrate compounds on increasing
endurance
AJINOMOTO PHARMACETUCALS CO., LTD.
established AY PHARMACETUCALS CO., LTD. with
Yoshindo Inc.
2.19
2.20
2.20
3.29
4.12
8.20
8.20
8.20
8.20
8.27
Ajinomoto Frozen Foods Co., Inc. launched
Mochimochi Thick-Wrap Boiled Gyoza, a natural
thawing product, in response to changes in the bento
boxed lunch making market
Launched Knorr
®
Gochiso Soup Pasta
Launched amino VITAL
®
Perfect Energy
Launched amino VITAL
®
Amino Protein
amino VITAL
®
GOLD supplied to JOC teams
Ajinomoto Frozen Foods Co., Inc. further improved
the quality of Gyoza
Launched Nabe Cube
®
nationwide
Launched Pure Select
®
Kokuuma
®
Calorie 65% Cut
Launched Cook Do
®
Kyo-no Ohzara
®
Launched amino VITAL
®
GOLD
2.29
9.—
10.1
11.15
11.—
ZAO “AJINOMOTO-GENETIKA Research Institute”
(AGRI) received the Russia’s National Award in
Science and Technology for 2011
PT AJINOMOTO INDONESIA made a capital
investment for increased production of Masako
®
Established PT LAUTAN AJINOMOTO FINE
INGREDIENTS, an Indonesian joint venture company
for Personal Care Ingredients
Established Ajinomoto Genexine Co., Ltd., a joint
venture company in South Korea to produce media
for biopharmaceutical manufacturing
Nissin-Ajinomoto Alimentos Ltda. began operating a
new plant in northeastern Brazil
4.— PT AJINOMOTO INDONESIA launched Mayumi
®
mayonnaise
5.22
7.27
8.—
10.1
12.1
12.16
Tokyo Sky Tree opened
London Olympics held from July 27 to August 12
Law enacted increasing the consumption tax
The U.S. military’s Osprey aircraft deployed at MCAS
Futenma in Okinawa
Professor Shinya Yamanaka of Kyoto University was
awarded the Nobel Prize in Physiology or Medicine
The Liberal Democratic Party came to power with
a landslide victory in the House of Representatives
election. The coalition government of LDP and
Komeito (Shinzo Abe’s cabinet) was inaugurated.
5. Timeline
The History of the Ajinomoto Group IV. Data - 5. Timeline -
123
■
Primary management
■
Business activities in Japan
■ Overseas operations ■ What was happening in society
■
Business related
■
Product related
■ Business related ■ Product related
2009 2009
1.9
4.—
5.11
6.26
7.31
8.25
9.17
Announced non-operating expenses of 10 billion yen
in Brazil
Commenced a bonito tagging survey with the
Fisheries Research Agency
Opened the Ajinomoto National Training Center
in Tokyo. Agreed with the Japanese Olympic
Committee to acquire the naming rights
Masatoshi Ito appointed President & CEO of
Ajinomoto Co., Inc.
Published its CSR report
Recruitment for the "Food and Health" international
support program
J-OIL MILLS, INC. published its 2009 CSR Report
5.11
7.24
10.1
Launched MediMill
®
and AminoCare
®
and started
nutritional care business
Acquired manufacturing and marketing rights for
pharmaceuticals to treat osteoporosis from Procter
& Gamble (P&G)
Ajinomoto Co., Inc. and Calpis Co., Ltd.’s gift
business integrated
2.19
2.23
2.23
6.15
7.7
8.17
8.24
8.24
8.24
8.24
8.—
10.22
Ajinomoto Frozen Foods Co., Inc. updated items
like Gyoza, creating new value by making them even
more delicious, safe, and secure
Launched Kobuuma, an umami seasoning made with
kelp
Launched amino VITAL
®
Water
Launched the Ajinomoto KK Asiamen series
Launched Black Tea Polyphenol, a Health
Fundamental Food
Launched GABAN
®
Spice Dressing
Launched No-Mikata
®
Launched a Japanese, Western, and Chinese soup
stocks with 30% less salt
PAL SWEET
®
was completely updated for the 25th
anniversary of its launch
Launched SUPER Citric Acid, a powdered beverage
containing citric and amino acids
Launched a new and improved Knorr
®
Cup Soup
variety
amino VITAL
®
recalled due to violation of usage
standards stipulated by the Food Sanitation Act
3.6
3.26
3.—
Established ITOHAM BETAGRO FOODS CO., LTD.
in Thailand (joint venture between ITOHAM FOODS
INC., BETAGRO PUBLIC CO., LTD. and Hoei Bussan
Co., Ltd.)
AJINOMOTO CO. (THAILAND) LTD., began operating
a biomass boiler at the Kamphaeng Phet Plant,
aiming to reduce
CO
2
Sold all shares of AJINOMOTO BIOITALIA S.p.A.
1.15
3.—
4.1
5.—
6.—
8. 3
9.1
9.—
11.—
U.S. plane crash led to the ‘Miracle on the Hudson
River’
Huge decits in electronics, automobiles, etc. due to
the global recession. Large staff lay-offs.
Meiji Seika Kaisha, Ltd. and Meiji Dairies Corporation
merged to form the holding company Meiji Holdings
Co., Ltd.
New inuenza strain, rst infections in Japan
In the U.S., the automakers General Motors (GM) and
Chrysler collapsed
The lay judge system was introduced in Japan and
the rst trial held at Tokyo District Court
Consumer Affairs Agency launched
The Democratic Party of Japan took control of
government (Yukio Hatoyama Cabinet)
Business review (the DPJ government held a
conference on administrative reform)
2010 2010
1.28
1.28
2.22
4.1
4.1
6.23
10.25
Released a new corporate slogan: “Eat Well, Live
Well.”
Ghana Project (A social business developed with
Royal DSM N.V. of the Netherlands)
Environmental Report won the 13th Environmental
Communication Awards prize
Transitioned from a virtual company system to a
business headquarters system
Established AJINOMOTO PHARMACEUTICALS CO.,
LTD.
Sumikazu Umeda became President & CEO of J-OIL
MILLS, INC.
Commenced joint research with the United States
Department of Agriculture (USDA) to solve the
problem of obesity by focusing on the satiety
delivered by Umami
3.10
5.18
9.24
10.1
Tokai Plant was subject to administrative dispositions
and guidance regarding manufacturing equipment
Sales partnership with between Ajinomoto General
Foods, Inc. and Starbucks Coffee Japan, Ltd. for
coffee products for home use
Signed ofcial sponsorship agreement with Japan
Swimming Federation
Dashi Cafe opened in Yurakucho, Tokyo
2.18
2.22
2.22
2.—
4.5
8.20
8.24
Ajinomoto Frozen Foods Co., Inc. launches Just
Bake It Bakery series
Launched Knorr
®
Cup Soup cold series
New variety launch and full update of Pasta Do
®
Launched Blendy
®
Stick Cafe Au Lait by Ajinomoto
General Foods, Inc.
Launched amino VITAL
®
Capsi
Ajinomoto Frozen Foods Co., Inc. launches Agezuni
Sakutto-san and the Puchi Cake series
Launched powdered AquaSolita
®
11.4 AJINOMOTO CO. (THAILAND) LTD. announced
construction of its umami seasonings plant
1. 4
2.12
5.—
6.13
9.15
12.4
World’s tallest skyscraper completed in Dubai,
United Arab Emirates
Vancouver Winter Olympics held
Apple Inc. in the U.S. launched the iPad
The asteroid probe Hayabusa returned after 7 years
The Collision Incident with Chinese Boat occurred in
the Senkaku Islands
Full JR Tohoku Shinkansen line opened
2011 2011
3.14
6.15
7.19
9.1
9.30
11. 24
The Ajinomoto Group provided a relief fund of 200
million yen and its products worth of 130 million yen
in response to the Great East Japan Earthquake
J-OIL MILLS, INC. invested in FUJI OIL (THAILAND)
CO., LTD.
Finalized repurchase of own stocks (5.5 million
shares, 5.5 billion yen)
Established Ajinomoto Animal Nutrition Group, Inc.
Rated Global No. 1 in food products for 2
consecutive quarters by the U.S.’s Patent Board, Ltd.
in an overall assessment of technological capability
Announced 30 million yen in support for those
affected by Thailand ooding
3.1
4.—
6.13
9.8
9.14
12.1
Commenced outsourcing production of feed grade
Threonine to FUFENG GROUP LTD. in China
Commenced business with AminoIndex
®
Cancer
Risk Screening (AICS
®
)
Concluded a joint venture agreement for frozen
bread dough in Shanghai, China
An article on AminoIndex
®
Cancer Risk Screening
(AICS
®
) published in the academic journal PLOS
ONE
Generic drug patent infringement lawsuit concerning
the osteoporosis pharmaceutical Actonel
®
Received the Minister of the Environment Award
for the Kawasaki Plant’s “Efforts to utilize Humus
(residue of defatted soybeans generated in the
process of manufacturing liquid seasonings)”
1.6
1.14
1.—
2.21
6.15
8.22
8.—
9.4
9.—
Ajinomoto Frozen Foods Co., Inc. announced the
start of development of the Ajina Eco logo
Launched Puru Puru Amino and Collagen, a Health
Fundamental Food
J-OIL MILLS, INC. launched Rama Soft Low Sodium
Launched Hiyashi Dashi-Gayu and Toromi Okoku
Vegetable Stir Fry
Launched AquaBalance, a Health Fundamental Food
Launched the Knorr
®
Soup DELI
®
series
Ajinomoto General Foods, Inc. launched Blendy
®
Stick Cocoa Au Lait
Ajinomoto Frozen Foods Co., Inc.’s Gyoza became
their single best-selling item for 8 consecutive years.
Launched an updated product for the Gyoza World
campaign
J-OIL MILLS, INC. launched Rama Margarine For
Butter Lovers
7.13
7.14
7.—
8.—
10.—
12.—
European businesses integrated into Ajinomoto Food
Europe S.A.S.
Established Granules OmniChem Private
Limited, a joint venture company for intermediate
pharmaceuticals in India
Established Ajinomoto Istanbul Food Sales Ltd.
Established AJINOMOTO BANGLADESH LIMITED
Established Ajinomoto Foods Egypt S.A.E.
Established AJINOMOTO AFRIQUE DE L’OUEST
S.A.
11.— AJINOMOTO CO. (THAILAND) LTD. launched
RosDee
®
Menu, avor seasonings that make
creating spicy dishes easy
3.11
3.12
3.15
7.17
7.—
10.26
The Great East Japan Earthquake and the Fukushima
Daiichi nuclear power plant disaster occurred
Full JR Kyushu Shinkansen line opened
Tokyo Electric Power Company Holdings, Inc.
commenced planned blackouts
Japan won the FIFA Women’s World Cup for the rst
time (held in Germany)
Extensive ooding occurred in Thailand, causing
prolonged damage
All Nippon Airways Co., Ltd. (ANA) operated the rst
commercial ight of its Boeing 787
2012 2012
3.27
4.1
5.29
5.31
7.25
7.27
8.6
10.1
Commenced joint procurement of coated paper
board packaging from overseas with Ezaki Glico Co.,
Ltd. and House Foods Corp.
Concluded a strategic business alliance agreement
for IT services with Nomura Research Institute, Ltd.
and established NRI System Techno, Ltd.
Health solutions business tie-up with Kao
Corporation (33.4% investment in Healthcare
Committee Inc.)
Concluded a memorandum of understanding for
a project improving nutrition of weaned children in
Ghana with U.S. ID and JICA
Launched AJINOMOTO
®
Park, an interactive food
community site
Conrmed the carbon footprints (CFP) value of 8
products including amino acid related products
Concluded a memorandum of understanding with
Vietnam National University, Hanoi to establish
an endowed chair for teacher training course for
nutritionists
Sold all shares of Calpis Co., Ltd. to Asahi Group
Holdings, Ltd.
2.13
2.23
3.28
4.16
4.—
5.3
5.23
5.31
9.15
11.7
11.8
12.25
Concluded an agreement for the joint development
of bio-based nylons with Toray Industries, Inc.
Applied for approval permitting domestic
manufacture and sale of MOVIPREP
®
, a new oral
intestinal cleanser
Added frozen foods to the JOC Gold Partner
program
Expanded application of the AminoIndex
®
Cancer
Risk Screening (AICS
®
) to include gynecologic
cancer
Introduced a new wastewater treatment facility at
the Kawasaki Plant and achieved one fteenth of the
legal limit
Acquired naming rights for Ajinomoto Field
Nishigaoka
Ajinomoto Frozen Foods Co., Inc. rebuilt the Kanto
Factory 1st Building
Concluded a contract with Bridgestone Corporation
for joint development biomass-derived synthetic
rubber
Presentation about the effects of high leucine
essential amino acid mixtures on early recovery from
muscle fatigue at the Japanese Society of Physical
Fitness and Sports Medicine
Full-scale introduction of resource-saving
fermentation technologies for animal feed grade
amino acids
Conrmed the effects of the alanine and proline
enriched carbohydrate compounds on increasing
endurance
AJINOMOTO PHARMACETUCALS CO., LTD.
established AY PHARMACETUCALS CO., LTD. with
Yoshindo Inc.
2.19
2.20
2.20
3.29
4.12
8.20
8.20
8.20
8.20
8.27
Ajinomoto Frozen Foods Co., Inc. launched
Mochimochi Thick-Wrap Boiled Gyoza, a natural
thawing product, in response to changes in the bento
boxed lunch making market
Launched Knorr
®
Gochiso Soup Pasta
Launched amino VITAL
®
Perfect Energy
Launched amino VITAL
®
Amino Protein
amino VITAL
®
GOLD supplied to JOC teams
Ajinomoto Frozen Foods Co., Inc. further improved
the quality of Gyoza
Launched Nabe Cube
®
nationwide
Launched Pure Select
®
Kokuuma
®
Calorie 65% Cut
Launched Cook Do
®
Kyo-no Ohzara
®
Launched amino VITAL
®
GOLD
2.29
9.—
10.1
11.15
11.—
ZAO “AJINOMOTO-GENETIKA Research Institute”
(AGRI) received the Russia’s National Award in
Science and Technology for 2011
PT AJINOMOTO INDONESIA made a capital
investment for increased production of Masako
®
Established PT LAUTAN AJINOMOTO FINE
INGREDIENTS, an Indonesian joint venture company
for Personal Care Ingredients
Established Ajinomoto Genexine Co., Ltd., a joint
venture company in South Korea to produce media
for biopharmaceutical manufacturing
Nissin-Ajinomoto Alimentos Ltda. began operating a
new plant in northeastern Brazil
4.— PT AJINOMOTO INDONESIA launched Mayumi
®
mayonnaise
5.22
7.27
8.—
10.1
12.1
12.16
Tokyo Sky Tree opened
London Olympics held from July 27 to August 12
Law enacted increasing the consumption tax
The U.S. military’s Osprey aircraft deployed at MCAS
Futenma in Okinawa
Professor Shinya Yamanaka of Kyoto University was
awarded the Nobel Prize in Physiology or Medicine
The Liberal Democratic Party came to power with
a landslide victory in the House of Representatives
election. The coalition government of LDP and
Komeito (Shinzo Abe’s cabinet) was inaugurated.
The History of the Ajinomoto Group IV. Data - 5. Timeline -
124
■
Primary management
■
Business activities in Japan
■ Overseas operations ■ What was happening in society
■
Business related
■
Product related
■ Business related ■ Product related
2013 2013
1.7
2.28
4.5
4.17
6.28
10.22
10.30
11.5
11.14
12.18
Concluded a contract with JOC for 2013 to 2016
J-OIL MILLS, INC. concluded a business alliance
agreement with Tsuji Oil Mills Co., Ltd.
Finalized acquisition of all shares of Althea
Technologies, Inc.
Received Intellectual Property Achievement Award
from the Ministry of Economy, Trade and Industry
and the Japan Patent Ofce
Conrmed increase in dividend on retained earnings
(8 yen to 10 yen)
Conducted global environmental cleanup activities
with the Smile Earth! program
Contract for the naming rights of AJINOMOTO
STAD IUM renewed
Acquired 50% share in Turkey’s Kükre A.
Ş
.
Donation of 10 million yen in aid for typhoon damage
in the Philippines
Agreed to establish a joint venture instant noodle
business in North America, Nigeria and India with
Toyo Suisan Kaisha, Ltd.
2.20
7.4
7.12
9.18
9.20
11. 2
Concluded a supplier contract with the J League’s
F.C.TOK YO
Presented the mechanism of cystine and theanine
at the Japan Society for Surgical Metabolism and
Nutrition (July 4 and 5)
Published the Kachimeshi
®
recipe book
Sale of Cystine and Theanine expanded to medical
institutions
Brick and mortar shop JINO
®
at Yaesu Underground
Shopping Mall opened
Presented research results on Amino L40
®
for
improving muscle synthesis in seniors at the
Japanese Society for Amino Acid Sciences
Academic Conference
2.18
2.—
2.—
4.12
8.20
11. 20
Ajinomoto Frozen Foods Co., Inc. launched Double
Wrapped Shumai, Double Fried Rice, etc.
Ajinomoto General Foods, Inc. launched Blendy
®
Stick Tea Heart
Ajinomoto Frozen Foods Co., Inc. improved the
manufacturing methods of Yawaraka Wakadori Kara-
Age (fried chicken) by double frying
Voluntary recall for Pasta Do
®
for Arrabbiata sauce
Ajinomoto Frozen Foods Co., Inc. launched
Yoshokutei
®
Hamburg
Launched Amino Aile
®
1.—
4.1
4.—
6.—
7.15
7.26
7.—
8.—
10.—
AJINOMOTO BANGLADESH LIMITED began
operating the Tongi packaging plant
Established AJINOMOTO ANIMAL NUTRITION
(SINGAPORE) PTE. LTD. (AANS)
AJINOMOTO AFRIQUE DE L’OUEST S.A. began
operating its Yopougon Plant
Ajinomoto Frozen Foods Co., Inc. began
manufacturing Gyoza (Japanese-style dumplings) in
Poland
Completion of the AJINOMOTO CO. (THAILAND)
LTD. Ayutthaya Plant for integrated processes from
MSG manufacturing to packaging
Patent infringement lawsuit brought against a
competitor making lysine in Hong Kong. Won in
October.
AJINOMOTO CO. (THAILAND) LTD. completed
facilities for increased production of its Birdy
®
beverage
AJINOMOTO DO BRASIL INDÚSTRIA E COMÉRCIO
DE ALIMENTOS LTDA. made a capital investment
for increasing production of the avored seasoning
Sazon
®
Completed a facility to increase production of amino
acids for pharmaceuticals and foods in Shanghai
4.—
11.—
Ajinomoto North America, Inc. launched amino
DEFENSE
®
AJINOMOTO VIETNAM CO., LTD. launched Birdy
®
3in1, instant coffee with coffee, powdered milk and
sugar in a single pack
3.14
3.15
4.4
4.—
4.—
6.22
9.8
12.5
12.6
Xi Jinping chosen as president of China
Prime Minister Abe ofcially announced participation
in TPP negotiations
Bank of Japan shifted to strong monetary-easing
policy
Shin Kabuki-za opened
Abenomics commenced, yen weakened, and stocks
rose due to monetary easing
Mt. Fuji registered as a World Heritage site
Determined that the 2020 Olympics would be held in
Tokyo
“Washoku” traditional Japanese cuisine registered
as UNESCO Intangible Cultural Heritage
Act on the Protection of Specially Designated
Secrets passed
2014 2014
4.1
4.3
6.19
8.19
8.—
11.5
J-OIL MILLS, INC. and YAMAKI Co., Ltd. opened
“Dashi x Oil,” a special site
Concluded a joint venture agreement with Toyo
Suisan Kaisha, Ltd. in India and Nigeria
Concluded a joint venture agreement with Toyo
Suisan Kaisha, Ltd. in the U.S.
Joint implementation of the Ghana Project with the
United Nations World Food Programme
Installed a production line for commercial use
products at AGF Suzuka, Inc.
Finalized acquisition of all shares in Windsor Quality
Holdings, LP in the U.S.
2.13
3.24
5.17
.21
5.30
- 6.1
5.—
6.16
8.8
9.25
Successfully developed StemFit
®
AK03
Established a manufacturing process for tyrosine by
fermentation method
Obtained approval for ADVANTAME as a food
additive in Europe and the U.S.
Presentation on the method for detecting high-risk
population for lifestyle-related disease using AICS
®
technology at Japan Society of Nutrition and Food
Science
Began operation of a new logistics center in Kuki
City, Saitama
ADVANTAME designated as a food additive in Japan
Glutamyl-Valyl-Glycine designated as a food additive
in Japan
Presented AICS
®
for its expanded application to
pancreatic cancer at the annual meeting of the
Japanese Cancer Association
1.4
2.3
2.20
3.17
4.1
5.19
8.11
8.22
Revised selling price and package size of HON-
DASHI
®
Launched Toss Sala
®
Ajinomoto Frozen Foods Co., Inc. launched natural
thawing cooked rice, etc.
Launched AminoCare
®
Jelly Leucine 40
Launched JINO
®
AminoFine series
Launched AquaSolita
®
bottled drinks
Launched PAL SWEET
®
Biorigo
®
, a Food for
Specied Health Uses
Launched a Knorr
®
Cup Soup series with 40% less
salt
3.—
4.—
6.—
7.—
8.—
11.—
OOOAJINOMOTO expanded food business starting
with frozen Gyoza
PT LAUTAN AJINOMOTO FINE INGREDIENTS plant
in Indonesia commenced operation
PT AJINOMOTO INDONESIA completed expansion
of a production line for liquid seasonings
Established an ofce in Lahore, Pakistan
Ajinomoto Genexin Co., Ltd. in South Korea plant
commenced operation
Ajinomoto Heartland, INC. commenced production
of AjiPro
®
-L
5.—
5.—
6.—
6.—
AJINOMOTO DO BRASIL INDÚSTRIA E COMÉRCIO
DE ALIMENTOS LTDA. launched Satis!
®
, an oil-free
fried food seasoning
AJINOMOTO (MALAYSIA) BERHAD launched
TUMIX
®
, a avor seasoning for making stewed items
Ajinomoto North America, Inc. launched CapsiAtra
®
AJINOMOTO PHILIPPINES CORPORATION
launched the avor seasoning PORKSAVOR
®
3.27
3.31
4.1
4.16
6.22
8.8
9.19
9.21
10.10
12.15
Hakamada Case set to be retried
Boeing jumbo jet retired
Consumption tax rate raised to 8%
MV Sewol sank in South Korean waters
Tomioka Silk Mill in Gunma registered as a World
Cultural Heritage
WHO declared an emergency due to Ebola
The Chinese internet company Alibaba was listed on
the NY Stock Exchange
Founding of the Innovation Party
17-year old Pakistani Malala Yousafzai received
the Nobel Peace Prize for activities promoting
educational opportunities for children and young
people
The Liberal Democratic Party and Komeito won two
thirds of all seats in the election for the House of
Representatives election
2015 2015
2.2
4.—
5.7
6.19
6.23
8.18
10.15
10.30
12.7
Six food companies in Japan agreed to build a
logistics platform
Acquired all shares of Ajinomoto General Foods, Inc.
held by Mondel
ē
z International, Inc. in the U.S.
Completed the Kawasaki Plant tour facility
Takaaki Nishii replaced Masatoshi Ito as President &
CEO of Ajinomoto Co., Inc.
Fuminao Hachiuma became president of J-OIL
MILLS, INC.
Commenced a business partnership with T.
HASEGAWA CO., LTD. working on natural avors by
fermentation process
Sold all shares of our aspartame manufacturing and
sales company in France
Sold instant noodle joint venture in Brazil to NISSIN
FOODS HOLDINGS CO., LTD.
Concluded an ofcial partner contract with the
Japanese Para-Sports Association
10.1
12.—
Launched StemFit
®
AK02N in Japan
Ceased production of MSG in Japan
8.20
8.21
8.21
8.—
8.—
10.31
Launched Cook Do
®
Okazu Gohan
Launched Knorr
®
Cup Soup Premium
Glyna
®
acquired a qualication for a Food with
Functional Claims (FFC)
Ajinomoto General Foods, Inc. launched Blendy
®
Stick Cafe Au Lait Yasuragi Caffeineless, Blendy
®
Stick Almond Milk Cocoa, and Blendy
®
Stick Aroma
Caramel Tea Au Lait
Ajinomoto Frozen Foods Co., Inc. launched The
★
®
Chahan
Launched Knorr
®
Zeitaku Vegetables, only available
through a proprietary website for direct sales
4.9 Ajinomoto Frozen Foods Co., Inc. entered a joint
venture with Poland’s Jawo sp. z o.o. (Ajinomoto
Jawo Sp. z o.o.) and commenced manufacturing
Gyoza (Japanese-style dumplings)
11.16 AJINOMOTO TAIWAN INC. launched three types of
the amino VITAL
®
series
3.14
4.22
4.25
6.17
7.20
9.25
-27
9.
ｰ
10.5
11.13
11.30
—.—
JR Hokuriku Shinkansen commenced operation
between Tokyo and Kanazawa
The Nikkei Stock Average closed above 20,000 yen
for the rst time in 15 years
The Nepal earthquake resulted in approx. 9,000
deaths
Public Ofces Election Act revised, providing voting
rights to those 18 years old and over
The U.S. and Cuba re-established diplomatic
relations for the rst time in 54 years
United Nations adopted SDGs
Enactment and promulgation of security legislation
TPP negotiations largely agreed upon
Multiple terrorist attacks in Paris by ISIL
21st Conference of the Parties of the United Nations
Framework Convention on Climate Change (COP21)
held
World Expo held in Milan from May to October, with
a theme of food for the rst time
2016 2016
3.28
4.1
4.1
4.1
4.1
4.21
6.30
7.28
10.14
10.31
11.8
12.—
Concluded an ofcial partner agreement for the
Tokyo Olympic & Paralympic
Integrated gift business with Ajinomoto General
Foods, Inc.
Established EA Pharma Co., Ltd. and transferred
pharmaceutical business
Six food companies in Japan commenced joint
shipping in Hokkaido
Changed number of share units
Provided a donation worth of 24 million yen in
support for the Kumamoto earthquakes
Sold all shares of GABAN Co., Ltd. to House Foods
Corp.
Commenced applying International Financial
Reporting Standards (IFRS)
Commenced production and sales at a joint venture
company with Toyo Suisan Kaisha, Ltd. in India.
Dissolved joint venture in Nigeria
Completed purchase of all trademarks for lines
including MAXIM
®
and Blendy
®
for which Ajinomoto
General Foods, Inc. is a licensee
Acquired 33.33% share in Promasidor Holdings
Limited
Acquired all shares of GeneDesign, Inc.
2.8
3.—
4.1
4.28
8.1
8.1
11.3
Joint venture with Nippon Rika Co., Ltd. to strengthen
production of L-cysteine hydrochloride
Commenced Ajinomoto Co., Inc. and Mizkan
Holdings Co., Ltd. joint round-trip rail transportation
between Kanto and Kansai
Ajinomoto Fine-Techno Co., Inc. (AFT) established
new U.S. base to strengthen its electronic materials
business
Partial transfer of the medical food business to and
sales tie-up with Nestlé Japan Ltd.
Started selling StemFit
®
AK03N for both iPS and ES
cells in Japan
Filed lawsuits in Japan and Germany against CJ
CheilJedang Corp. and three of its subsidiaries for
infringement of an MSG process patent
Established Ajinomoto Mirai Co., Ltd., a new
company that promotes the employment of people
with disabilities
2.1
2.1
8.—
12.—
Launched Oniku Yawaraka-no-Moto
®
Updated the Cook Do
®
Arabikiniku-iri Mabo series
Updated Knorr
®
Cup Soup
Ajinomoto Frozen Foods Co., Inc. launched The
★
®
Shumai
2.17
3.—
5.10
5.—
7.—
8.—
9.29
10.—
Established Myanmar Ajinomoto Foods CO., LTD.
AJINOMOTO CO. (THAILAND) LTD. commenced
operation of a cogeneration boiler
Filed a lawsuit in the U.S. and Europe against CJ
CheilJedang Corp. and three of its subsidiaries
for patent infringement of feed grade Trp making
processes
Completion of a feed
grade Trp plant in France (low
resource fermentation + exible production)
Established AJINOMOTO LAKSON PAKISTAN
(PRIVATE) LTD., a joint venture with the Pakistan’s
Lakson Group
Frozen bread factory commenced operation in
Indonesia
Won a 2013 patent infringement lawsuit in the
Netherlands for a lysine manufacturing process
against the Global Bio-Chem Technology Group
Company Limited and its subsidiaries
Ajinomoto Toyo Frozen Noodles Inc. in the U.S.
began selling noodle products
5.—
6.20
9.1
10.—
AJINOMOTO VIETNAM CO., LTD. launched Banh
Ran pancake mix
AJINOMOTO DEL PERÚ S.A. launched cup noodles
AJINOMOTO DO BRASIL INDÚSTRIA E COMÉRCIO
DE ALIMENTOS LTDA. launched amino VITAL
®
GOLD
AJINOMOTO PHILIPPINES CORPORATION
launched the oyster sauce Sarsaya
®
3.26
4.1
4.14
-16
5.26
-27
6.24
7.17
8.5
-21
8.8
10.8
11.9
11.—
12.27
JR Hokkaido Shinkansen commenced operation
between Shin Aomori and Shin Hakodate-Hokuto
Stations
Integrated the operations of processed meat
manufacturers ITOHAM FOODS INC. and Yonekyu
Corp. Inc.
Kumamoto earthquake occurred with a maximum
seismic intensity of 7 on both days
42nd
G7 Summit in Ise-Shima held. U.S. President
Obama visited Hiroshima
The British EU referendum led to the victory of the
Leave supporters
The National Museum of Western Art in Ueno, Tokyo
was registered as a World Heritage Site
Rio de Janeiro Olympics held
His Majesty the Emperor revealed his intention to
retire
Mount Aso erupted violently
Donald Trump won the U.S. presidential election
Relocation of Tsukiji Market to Toyosu postponed
(Governor of Tokyo: Koike)
Prime Minister Abe visited Hawaii’s Pearl Harbor
National Memorial
The History of the Ajinomoto Group IV. Data - 5. Timeline -
125
■
Primary management
■
Business activities in Japan
■ Overseas operations ■ What was happening in society
■
Business related
■
Product related
■ Business related ■ Product related
2013 2013
1.7
2.28
4.5
4.17
6.28
10.22
10.30
11.5
11.14
12.18
Concluded a contract with JOC for 2013 to 2016
J-OIL MILLS, INC. concluded a business alliance
agreement with Tsuji Oil Mills Co., Ltd.
Finalized acquisition of all shares of Althea
Technologies, Inc.
Received Intellectual Property Achievement Award
from the Ministry of Economy, Trade and Industry
and the Japan Patent Ofce
Conrmed increase in dividend on retained earnings
(8 yen to 10 yen)
Conducted global environmental cleanup activities
with the Smile Earth! program
Contract for the naming rights of AJINOMOTO
STAD IUM renewed
Acquired 50% share in Turkey’s Kükre A.
Ş
.
Donation of 10 million yen in aid for typhoon damage
in the Philippines
Agreed to establish a joint venture instant noodle
business in North America, Nigeria and India with
Toyo Suisan Kaisha, Ltd.
2.20
7.4
7.12
9.18
9.20
11. 2
Concluded a supplier contract with the J League’s
F.C.TOK YO
Presented the mechanism of cystine and theanine
at the Japan Society for Surgical Metabolism and
Nutrition (July 4 and 5)
Published the Kachimeshi
®
recipe book
Sale of Cystine and Theanine expanded to medical
institutions
Brick and mortar shop JINO
®
at Yaesu Underground
Shopping Mall opened
Presented research results on Amino L40
®
for
improving muscle synthesis in seniors at the
Japanese Society for Amino Acid Sciences
Academic Conference
2.18
2.—
2.—
4.12
8.20
11. 20
Ajinomoto Frozen Foods Co., Inc. launched Double
Wrapped Shumai, Double Fried Rice, etc.
Ajinomoto General Foods, Inc. launched Blendy
®
Stick Tea Heart
Ajinomoto Frozen Foods Co., Inc. improved the
manufacturing methods of Yawaraka Wakadori Kara-
Age (fried chicken) by double frying
Voluntary recall for Pasta Do
®
for Arrabbiata sauce
Ajinomoto Frozen Foods Co., Inc. launched
Yoshokutei
®
Hamburg
Launched Amino Aile
®
1.—
4.1
4.—
6.—
7.15
7.26
7.—
8.—
10.—
AJINOMOTO BANGLADESH LIMITED began
operating the Tongi packaging plant
Established AJINOMOTO ANIMAL NUTRITION
(SINGAPORE) PTE. LTD. (AANS)
AJINOMOTO AFRIQUE DE L’OUEST S.A. began
operating its Yopougon Plant
Ajinomoto Frozen Foods Co., Inc. began
manufacturing Gyoza (Japanese-style dumplings) in
Poland
Completion of the AJINOMOTO CO. (THAILAND)
LTD. Ayutthaya Plant for integrated processes from
MSG manufacturing to packaging
Patent infringement lawsuit brought against a
competitor making lysine in Hong Kong. Won in
October.
AJINOMOTO CO. (THAILAND) LTD. completed
facilities for increased production of its Birdy
®
beverage
AJINOMOTO DO BRASIL INDÚSTRIA E COMÉRCIO
DE ALIMENTOS LTDA. made a capital investment
for increasing production of the avored seasoning
Sazon
®
Completed a facility to increase production of amino
acids for pharmaceuticals and foods in Shanghai
4.—
11.—
Ajinomoto North America, Inc. launched amino
DEFENSE
®
AJINOMOTO VIETNAM CO., LTD. launched Birdy
®
3in1, instant coffee with coffee, powdered milk and
sugar in a single pack
3.14
3.15
4.4
4.—
4.—
6.22
9.8
12.5
12.6
Xi Jinping chosen as president of China
Prime Minister Abe ofcially announced participation
in TPP negotiations
Bank of Japan shifted to strong monetary-easing
policy
Shin Kabuki-za opened
Abenomics commenced, yen weakened, and stocks
rose due to monetary easing
Mt. Fuji registered as a World Heritage site
Determined that the 2020 Olympics would be held in
Tokyo
“Washoku” traditional Japanese cuisine registered
as UNESCO Intangible Cultural Heritage
Act on the Protection of Specially Designated
Secrets passed
2014 2014
4.1
4.3
6.19
8.19
8.—
11.5
J-OIL MILLS, INC. and YAMAKI Co., Ltd. opened
“Dashi x Oil,” a special site
Concluded a joint venture agreement with Toyo
Suisan Kaisha, Ltd. in India and Nigeria
Concluded a joint venture agreement with Toyo
Suisan Kaisha, Ltd. in the U.S.
Joint implementation of the Ghana Project with the
United Nations World Food Programme
Installed a production line for commercial use
products at AGF Suzuka, Inc.
Finalized acquisition of all shares in Windsor Quality
Holdings, LP in the U.S.
2.13
3.24
5.17
.21
5.30
- 6.1
5.—
6.16
8.8
9.25
Successfully developed StemFit
®
AK03
Established a manufacturing process for tyrosine by
fermentation method
Obtained approval for ADVANTAME as a food
additive in Europe and the U.S.
Presentation on the method for detecting high-risk
population for lifestyle-related disease using AICS
®
technology at Japan Society of Nutrition and Food
Science
Began operation of a new logistics center in Kuki
City, Saitama
ADVANTAME designated as a food additive in Japan
Glutamyl-Valyl-Glycine designated as a food additive
in Japan
Presented AICS
®
for its expanded application to
pancreatic cancer at the annual meeting of the
Japanese Cancer Association
1.4
2.3
2.20
3.17
4.1
5.19
8.11
8.22
Revised selling price and package size of HON-
DASHI
®
Launched Toss Sala
®
Ajinomoto Frozen Foods Co., Inc. launched natural
thawing cooked rice, etc.
Launched AminoCare
®
Jelly Leucine 40
Launched JINO
®
AminoFine series
Launched AquaSolita
®
bottled drinks
Launched PAL SWEET
®
Biorigo
®
, a Food for
Specied Health Uses
Launched a Knorr
®
Cup Soup series with 40% less
salt
3.—
4.—
6.—
7.—
8.—
11.—
OOOAJINOMOTO expanded food business starting
with frozen Gyoza
PT LAUTAN AJINOMOTO FINE INGREDIENTS plant
in Indonesia commenced operation
PT AJINOMOTO INDONESIA completed expansion
of a production line for liquid seasonings
Established an ofce in Lahore, Pakistan
Ajinomoto Genexin Co., Ltd. in South Korea plant
commenced operation
Ajinomoto Heartland, INC. commenced production
of AjiPro
®
-L
5.—
5.—
6.—
6.—
AJINOMOTO DO BRASIL INDÚSTRIA E COMÉRCIO
DE ALIMENTOS LTDA. launched Satis!
®
, an oil-free
fried food seasoning
AJINOMOTO (MALAYSIA) BERHAD launched
TUMIX
®
, a avor seasoning for making stewed items
Ajinomoto North America, Inc. launched CapsiAtra
®
AJINOMOTO PHILIPPINES CORPORATION
launched the avor seasoning PORKSAVOR
®
3.27
3.31
4.1
4.16
6.22
8.8
9.19
9.21
10.10
12.15
Hakamada Case set to be retried
Boeing jumbo jet retired
Consumption tax rate raised to 8%
MV Sewol sank in South Korean waters
Tomioka Silk Mill in Gunma registered as a World
Cultural Heritage
WHO declared an emergency due to Ebola
The Chinese internet company Alibaba was listed on
the NY Stock Exchange
Founding of the Innovation Party
17-year old Pakistani Malala Yousafzai received
the Nobel Peace Prize for activities promoting
educational opportunities for children and young
people
The Liberal Democratic Party and Komeito won two
thirds of all seats in the election for the House of
Representatives election
2015 2015
2.2
4.—
5.7
6.19
6.23
8.18
10.15
10.30
12.7
Six food companies in Japan agreed to build a
logistics platform
Acquired all shares of Ajinomoto General Foods, Inc.
held by Mondel
ē
z International, Inc. in the U.S.
Completed the Kawasaki Plant tour facility
Takaaki Nishii replaced Masatoshi Ito as President &
CEO of Ajinomoto Co., Inc.
Fuminao Hachiuma became president of J-OIL
MILLS, INC.
Commenced a business partnership with T.
HASEGAWA CO., LTD. working on natural avors by
fermentation process
Sold all shares of our aspartame manufacturing and
sales company in France
Sold instant noodle joint venture in Brazil to NISSIN
FOODS HOLDINGS CO., LTD.
Concluded an ofcial partner contract with the
Japanese Para-Sports Association
10.1
12.—
Launched StemFit
®
AK02N in Japan
Ceased production of MSG in Japan
8.20
8.21
8.21
8.—
8.—
10.31
Launched Cook Do
®
Okazu Gohan
Launched Knorr
®
Cup Soup Premium
Glyna
®
acquired a qualication for a Food with
Functional Claims (FFC)
Ajinomoto General Foods, Inc. launched Blendy
®
Stick Cafe Au Lait Yasuragi Caffeineless, Blendy
®
Stick Almond Milk Cocoa, and Blendy
®
Stick Aroma
Caramel Tea Au Lait
Ajinomoto Frozen Foods Co., Inc. launched The
★
®
Chahan
Launched Knorr
®
Zeitaku Vegetables, only available
through a proprietary website for direct sales
4.9 Ajinomoto Frozen Foods Co., Inc. entered a joint
venture with Poland’s Jawo sp. z o.o. (Ajinomoto
Jawo Sp. z o.o.) and commenced manufacturing
Gyoza (Japanese-style dumplings)
11.16 AJINOMOTO TAIWAN INC. launched three types of
the amino VITAL
®
series
3.14
4.22
4.25
6.17
7.20
9.25
-27
9.
ｰ
10.5
11.13
11.30
—.—
JR Hokuriku Shinkansen commenced operation
between Tokyo and Kanazawa
The Nikkei Stock Average closed above 20,000 yen
for the rst time in 15 years
The Nepal earthquake resulted in approx. 9,000
deaths
Public Ofces Election Act revised, providing voting
rights to those 18 years old and over
The U.S. and Cuba re-established diplomatic
relations for the rst time in 54 years
United Nations adopted SDGs
Enactment and promulgation of security legislation
TPP negotiations largely agreed upon
Multiple terrorist attacks in Paris by ISIL
21st Conference of the Parties of the United Nations
Framework Convention on Climate Change (COP21)
held
World Expo held in Milan from May to October, with
a theme of food for the rst time
2016 2016
3.28
4.1
4.1
4.1
4.1
4.21
6.30
7.28
10.14
10.31
11.8
12.—
Concluded an ofcial partner agreement for the
Tokyo Olympic & Paralympic
Integrated gift business with Ajinomoto General
Foods, Inc.
Established EA Pharma Co., Ltd. and transferred
pharmaceutical business
Six food companies in Japan commenced joint
shipping in Hokkaido
Changed number of share units
Provided a donation worth of 24 million yen in
support for the Kumamoto earthquakes
Sold all shares of GABAN Co., Ltd. to House Foods
Corp.
Commenced applying International Financial
Reporting Standards (IFRS)
Commenced production and sales at a joint venture
company with Toyo Suisan Kaisha, Ltd. in India.
Dissolved joint venture in Nigeria
Completed purchase of all trademarks for lines
including MAXIM
®
and Blendy
®
for which Ajinomoto
General Foods, Inc. is a licensee
Acquired 33.33% share in Promasidor Holdings
Limited
Acquired all shares of GeneDesign, Inc.
2.8
3.—
4.1
4.28
8.1
8.1
11.3
Joint venture with Nippon Rika Co., Ltd. to strengthen
production of L-cysteine hydrochloride
Commenced Ajinomoto Co., Inc. and Mizkan
Holdings Co., Ltd. joint round-trip rail transportation
between Kanto and Kansai
Ajinomoto Fine-Techno Co., Inc. (AFT) established
new U.S. base to strengthen its electronic materials
business
Partial transfer of the medical food business to and
sales tie-up with Nestlé Japan Ltd.
Started selling StemFit
®
AK03N for both iPS and ES
cells in Japan
Filed lawsuits in Japan and Germany against CJ
CheilJedang Corp. and three of its subsidiaries for
infringement of an MSG process patent
Established Ajinomoto Mirai Co., Ltd., a new
company that promotes the employment of people
with disabilities
2.1
2.1
8.—
12.—
Launched Oniku Yawaraka-no-Moto
®
Updated the Cook Do
®
Arabikiniku-iri Mabo series
Updated Knorr
®
Cup Soup
Ajinomoto Frozen Foods Co., Inc. launched The
★
®
Shumai
2.17
3.—
5.10
5.—
7.—
8.—
9.29
10.—
Established Myanmar Ajinomoto Foods CO., LTD.
AJINOMOTO CO. (THAILAND) LTD. commenced
operation of a cogeneration boiler
Filed a lawsuit in the U.S. and Europe against CJ
CheilJedang Corp. and three of its subsidiaries
for patent infringement of feed grade Trp making
processes
Completion of a feed
grade Trp plant in France (low
resource fermentation + exible production)
Established AJINOMOTO LAKSON PAKISTAN
(PRIVATE) LTD., a joint venture with the Pakistan’s
Lakson Group
Frozen bread factory commenced operation in
Indonesia
Won a 2013 patent infringement lawsuit in the
Netherlands for a lysine manufacturing process
against the Global Bio-Chem Technology Group
Company Limited and its subsidiaries
Ajinomoto Toyo Frozen Noodles Inc. in the U.S.
began selling noodle products
5.—
6.20
9.1
10.—
AJINOMOTO VIETNAM CO., LTD. launched Banh
Ran pancake mix
AJINOMOTO DEL PERÚ S.A. launched cup noodles
AJINOMOTO DO BRASIL INDÚSTRIA E COMÉRCIO
DE ALIMENTOS LTDA. launched amino VITAL
®
GOLD
AJINOMOTO PHILIPPINES CORPORATION
launched the oyster sauce Sarsaya
®
3.26
4.1
4.14
-16
5.26
-27
6.24
7.17
8.5
-21
8.8
10.8
11.9
11.—
12.27
JR Hokkaido Shinkansen commenced operation
between Shin Aomori and Shin Hakodate-Hokuto
Stations
Integrated the operations of processed meat
manufacturers ITOHAM FOODS INC. and Yonekyu
Corp. Inc.
Kumamoto earthquake occurred with a maximum
seismic intensity of 7 on both days
42nd
G7 Summit in Ise-Shima held. U.S. President
Obama visited Hiroshima
The British EU referendum led to the victory of the
Leave supporters
The National Museum of Western Art in Ueno, Tokyo
was registered as a World Heritage Site
Rio de Janeiro Olympics held
His Majesty the Emperor revealed his intention to
retire
Mount Aso erupted violently
Donald Trump won the U.S. presidential election
Relocation of Tsukiji Market to Toyosu postponed
(Governor of Tokyo: Koike)
Prime Minister Abe visited Hawaii’s Pearl Harbor
National Memorial
The History of the Ajinomoto Group IV. Data - 5. Timeline -
126
■
Primary management
■
Business activities in Japan
■ Overseas operations ■ What was happening in society
■
Business related
■
Product related
■ Business related ■ Product related
2017 2017
2.17
3.1
3.17
3.22
4.1
4.3
4.4
4.25
5.—
8.17
9.29
10.2
11. 2
11.9
12.4
12.11
FY2017 - FY2019 Medium-Term Management Plan
announced
Established F-LINE CORPORATION in Hokkaido
Ajinomoto General Foods, Inc. changed its name to
Ajinomoto AGF, Inc.
Purchased Green Power Certicates for renewable
energy produced domestically from sugarcane waste
in Okinawa
The Ajinomoto Foundation certied as a public
interest foundation
Established F-LINE CORPORATION in Kyushu
Completed acquisition of all shares in Örgen Gıda
Sanayi ve Ticaret A.
Ş
. in Turkey
Established the joint venture Tsubame BHB Co., Ltd.
to produce ammonia on-site
A new packaging plant commenced operation in
Kawasaki
Turkey’s Kükre A.
Ş
. became a fully owned subsidiary
Announced reconstruction of seasonings and
packaged foods production system in Japan
Announced Ajinomoto Group Global Brand Logo
(AGB)
Finalized acquisition of all shares of LABEYRIE
TRAITRUR SURGELES S.A.S, a French frozen food
company
Finalized acquisition of all shares of Cambrooke
Therapeutics lnc., a medical foods company in the
U.S.
Announced integration of the R&D bases of four
Japan-based Group companies
Announced Food and Amino Acid support at the
Pyeong Chang Olympic & Paralympic
3.—
5.1
6.15
7.6
8.3
10.12
Invested in Hinoman, Ltd. in Israel, which owns
Mankai, and acquired exclusive sales rights in Japan
Renewed contract for the naming rights of Ajinomoto
National Training Center and Ajinomoto Field
Nishigaoka
New J-OIL MILLS, INC. Kurashiki Plant commenced
operation
Ajinomoto Frozen Foods Co., Inc. updated corporate
logo to “FRESH & FROZEN”
Concluded a manufacturing contract for feed grade
Lysine and threonine with Meihua Holdings Group
Co., Ltd. in China
Launched AminoIndex
®
Risk Screening (AIRS®)
1.17
1.27
1.—
2.20
2.24
2.—
8.21
8.21
8.—
8.—
11. 2
Launched 3 types of DogPartner
®
Launched Mai Asa Histidine
®
, a Food with Functional
Claims (FFC)
Ajinomoto Frozen Foods Co., Inc. launched Onigiri
Maru
®
Launched a Knorr
®
Cup Soup made with cold milk
series
Launched JINO
®
amino whitive serum
Ajinomoto General Foods, Inc. launched Maxim
®
Black In Box
Launched amino VITAL
®
Amino Shot
Launched a Knorr
®
soup packed with protein series
Ajinomoto AGF, Inc. launched Blendy
®
Stick
J-OIL MILLS, INC. launched AJINOMOTO Olive &
Lemon Flavored Oil
Launched Capsi
®
EX, a Food with Functional Claims
(FFC)
3.—
5.—
7.—
8.—
8.—
10.17
12.21
12.—
Myanmar Ajinomoto Foods CO., LTD. began
construction on a plant to produce powdered
beverages
Ajinomoto Heartland, INC. increased production of
feed grade Trp
PT AJINOMOTO INDONESIA expanded production
facilities for the avor seasoning Masako
®
AJINOMOTO CO. (THAILAND) LTD. expanded
production facilities for the avor seasoning
RosDee
®
Myanmar Ajinomoto Foods CO., LTD. commenced
operation of its AJI-NO-MOTO
®
packaging plant
Acquired a majority share in Agro2Agri, S.L., an
agricultural biostimulant manufacturer
Concluded a contract to establish a joint venture
company producing powdered soup NONGSHIM
CO., LTD. in South Korea
PT AJINOMOTO INDONESIA enhanced production
facilities for the menu-specic seasoning Sajiku
®
8.— AJINOMOTO INDIA PRIVATE LIMITED launched the
Blendy
®
powdered drink series
1.20
6.—
9.3
10.—
12.6
Inauguration of President Trump
A highly poisonous invasive ant (Solenopsis invicta)
found in Japan
North Korea conducted its sixth nuclear test. They
conducted ballistic missile launches repeatedly.
LDP victory in the House of Representatives election
Shogi master Habu Yoshiharu awarded the rst ever
Seventh Lifetime Title
2018 2018
2.20
5.22
6.1
9.20
-21
Established the AjiPanda
®
KIDS employee childcare
center at Kawasaki Plant
Agreed to a joint venture with Kohjin Bio Co., Ltd.
(founded in June)
Opened the Client Innovation Center (CIC)
World Umami Forum held in New York in the U.S.
4.1
10.23
11.30
Established the Solutions & Ingredients Dept.
Renewed the naming rights contract for AJINOMOTO
STAD IUM for ve years, from March 1, 2019 to the
end of February 2024
Kawasaki Plant announced the construction of a
new facility for the manufacture of soup and other
products (scheduled for completion in the rst half of
FY2021)
2.19
2.19
7.—
7.—
8.20
8.—
8.—
40th
anniversary of the launch of the Cook Do
®
series. Launched noodle seasoning.
Launched Knorr
®
vegetable soup for rice
Expiration date labeling including only the year and
month (without dates) completed for home use
products of seasonings and packaged foods
Updated all products in the Pure Select
®
series
Launched Knorr
®
Cup Soup Veggie Recipe
®
Ajinomoto AGF, Inc. launched Blendy
®
Stick Hojicha
Au Lait
Ajinomoto Frozen Foods Co., Inc. launched Ginger
Gyoza
7.—
11.19
12.31
Ajinomoto Istanbul Food Sales Ltd., Kükre A.
Ş
. and
Örgen Gıda Sanayi ve Ticaret A.
Ş
. were integrated
and the company name changed to AJINOMOTO
ISTANBUL FOOD INDUSTRY AND TRADE LTD. CO.
Concluded an agreement to sell all the shares
of Hong Kong Amoy Foods Ltd. to CITIC Capital
Holdings Limited’s afliate investment fund, and
commenced a joint venture with the company
Recorded impairment loss related to investment
in Ajinomoto Foods North America, Inc. and
Promasidor Holdings Limited in the third quarter
consolidated nancial results
2.9
-25
3.18
4.27
6.12
6.28
-7.8
9.6
9.28
10.—
12.31
2018 Winter Olympics held in South Korea
Vladimir Putin re-elected president of Russia
Panmunjom Declaration between North and of South
Korea, led by Moon Jae-in and Kim Jong Un
The U.S. and North Korea held a summit in Singapore
and signed an accord
Heavy rainfall in western Japan (July 2018 Rainfall)
Hokkaido Eastern Iburi Earthquake (maximum
seismic intensity 7)
Earthquake and tsunami in Indonesia left more than
2,000 dead
Tokyo’s Tsukiji Market closed after 83 years
The U.S. left the United Nations Educational,
Scientic and Cultural Organization (UNESCO)
2019 2019
1.—
4.1
4.1
5.27
11.1
The ve food manufacturers in Japan commenced
joint shipping in Kyushu
Established Ajinomoto Food Manufacturing Co., Ltd.
Integrated the logistics functions of the ve food
manufacturers in Japan to establish F-LINE
CORPORATION on a national scale
Announced support for the Task Force on
Climate-related Financial Disclosures (TCFD) and
participation in the TCFD Consortium
Agreed to establish a joint venture in April 2020 with
Accenture Japan Ltd for the purpose of transforming
Ajinomoto Co., Inc.’s operations
4.9
4.—
9.6
10.29
Received the Science and Technology Award in the
development category from the Commendation for
Science and Technology by the Minister of MEXT for
AminoIndex
®
Technology in FY2019
Stroke and myocardial infarction added to the
AminoIndex
®
Risk Screening (AIRS
®
)
Announced the cancellation of the whole sales
agency contract with the Kellogg, Co. on March 31,
2020
Announced that J-OIL MILLS, INC. and the Nisshin
OilliO Group, Ltd. would enter into discussions to
begin a business partnership involving oil extracting,
joint delivery, etc.
2.18
2.18
3.—
3.—
4.1
4.1
8.22
8.22
8.—
11.1
Launched HON-DASHI
®
Noko Dashi and Gu-tappuri
Miso Soup
Launched Kaketechin
♪
Onsai Okazu for microwaves
J-OIL MILLS, INC. launched AJINOMOTO Kara-Age
no Hi-no-Abura
J-OIL MILLS, INC. launched Rama Olive & Butter
Flavor
Selling price revised for Seto no Honjio
®
, Aji-Shio
®
and YASASHIO
®
Selling price and volume of Ajinomoto KK
Consommé and Knorr
®
Consommé revised
Launched Knorr
®
Soup Grande
®
amino VITAL
®
PRO and amino VITAL
®
fully updated
Ajinomoto AGF, Inc. launched Blendy
®
Roasters &
Selling price for Cook Do
®
Chinese and Korean
mixed seasoning for home use revised
3. 6
6.10
8.19
8.20
8.29
Signed a contract to become the highest sponsor
of Southeast Asia’s largest sports competition, the
SEA Games. It was held in the Philippines between
November and December 2019.
Established the Group’s rst amino acid cleaning
agent plant in Brazil (scheduled to commence
operation in the fall of 2020)
AJINOMOTO (MALAYSIA) BERHAD started building
a new plant with an enhanced system to develop and
produce Halal-compliant products (to commence
operation in April 2022)
Acquired 50.1% share in the U.S.’s More Than
Gourmet Holdings, Inc.
Announced a policy of conversion to exclusive
ownership of GranulesOmniChem Private Limited,
an Indian joint venture company (approved by the
government as of June 2, 2020)
4.1
4.15
5.1
6.9
6.28
-29
7.18
8.2
9.8
-9
9.23
10.1
10.31
11. 24
11.30
12.18
Announcement of the new Reiwa era
Large re at Notre Dame Cathedral in France
Ascension of Japan’s new Emperor (succeeding the
previous Emperor’s abdication on April 30)
1.03 million people attended pro-democracy
demonstrations protesting the Hong Kong extradition
bill
The 14th G20 Summit was held in Osaka
An arson and murder incident occurred at Kyoto
Animation Co., Ltd.
The Intermediate-Range Nuclear Forces (INF) Treaty
between the United States and Russia expired
Typhoon Faxai struck in 2019, damaging central
Chiba Prefecture
16-year old Swedish environmental activist Greta
Thunberg spoke at the United Nations
Consumption tax rate raised to 10% (a reduced 8%
tax rate applied in some circumstances)
World Heritage Shuri Castle’s main hall and other
structures burned down
Message from Pope Francis about the abolition
of nuclear weapons delivered in Nagasaki and
Hiroshima
Completed the new national stadium, the main venue
for 2020 Olympic and Paralympic Games
President Trump became the third president in
the U.S. history to be impeached by the House of
Representatives
2020 2020
5.14 Announced introduction of the Ajinomoto Group
Nutrient Proling System for Products (ANPS-P) in 7
countries including Japan
3.— Launched Steamy for microwave oven cooking
through general channels in Tokyo and 9 prefectures
and a proprietary website for direct sales
1.—
3.30
4.7
COVID-19, a new coronavirus, broke out in Wuhan,
China and spread globally
Tokyo 2020 Olympic & Paralympic rescheduled for
July to September 2021
Emergency declarations were issued for 7
prefectures and expanded nationwide on April 16
The History of the Ajinomoto Group IV. Data - 5. Timeline -
127
■
Primary management
■
Business activities in Japan
■ Overseas operations ■ What was happening in society
■
Business related
■
Product related
■ Business related ■ Product related
2017 2017
2.17
3.1
3.17
3.22
4.1
4.3
4.4
4.25
5.—
8.17
9.29
10.2
11. 2
11.9
12.4
12.11
FY2017 - FY2019 Medium-Term Management Plan
announced
Established F-LINE CORPORATION in Hokkaido
Ajinomoto General Foods, Inc. changed its name to
Ajinomoto AGF, Inc.
Purchased Green Power Certicates for renewable
energy produced domestically from sugarcane waste
in Okinawa
The Ajinomoto Foundation certied as a public
interest foundation
Established F-LINE CORPORATION in Kyushu
Completed acquisition of all shares in Örgen Gıda
Sanayi ve Ticaret A.
Ş
. in Turkey
Established the joint venture Tsubame BHB Co., Ltd.
to produce ammonia on-site
A new packaging plant commenced operation in
Kawasaki
Turkey’s Kükre A.
Ş
. became a fully owned subsidiary
Announced reconstruction of seasonings and
packaged foods production system in Japan
Announced Ajinomoto Group Global Brand Logo
(AGB)
Finalized acquisition of all shares of LABEYRIE
TRAITRUR SURGELES S.A.S, a French frozen food
company
Finalized acquisition of all shares of Cambrooke
Therapeutics lnc., a medical foods company in the
U.S.
Announced integration of the R&D bases of four
Japan-based Group companies
Announced Food and Amino Acid support at the
Pyeong Chang Olympic & Paralympic
3.—
5.1
6.15
7.6
8.3
10.12
Invested in Hinoman, Ltd. in Israel, which owns
Mankai, and acquired exclusive sales rights in Japan
Renewed contract for the naming rights of Ajinomoto
National Training Center and Ajinomoto Field
Nishigaoka
New J-OIL MILLS, INC. Kurashiki Plant commenced
operation
Ajinomoto Frozen Foods Co., Inc. updated corporate
logo to “FRESH & FROZEN”
Concluded a manufacturing contract for feed grade
Lysine and threonine with Meihua Holdings Group
Co., Ltd. in China
Launched AminoIndex
®
Risk Screening (AIRS®)
1.17
1.27
1.—
2.20
2.24
2.—
8.21
8.21
8.—
8.—
11. 2
Launched 3 types of DogPartner
®
Launched Mai Asa Histidine
®
, a Food with Functional
Claims (FFC)
Ajinomoto Frozen Foods Co., Inc. launched Onigiri
Maru
®
Launched a Knorr
®
Cup Soup made with cold milk
series
Launched JINO
®
amino whitive serum
Ajinomoto General Foods, Inc. launched Maxim
®
Black In Box
Launched amino VITAL
®
Amino Shot
Launched a Knorr
®
soup packed with protein series
Ajinomoto AGF, Inc. launched Blendy
®
Stick
J-OIL MILLS, INC. launched AJINOMOTO Olive &
Lemon Flavored Oil
Launched Capsi
®
EX, a Food with Functional Claims
(FFC)
3.—
5.—
7.—
8.—
8.—
10.17
12.21
12.—
Myanmar Ajinomoto Foods CO., LTD. began
construction on a plant to produce powdered
beverages
Ajinomoto Heartland, INC. increased production of
feed grade Trp
PT AJINOMOTO INDONESIA expanded production
facilities for the avor seasoning Masako
®
AJINOMOTO CO. (THAILAND) LTD. expanded
production facilities for the avor seasoning
RosDee
®
Myanmar Ajinomoto Foods CO., LTD. commenced
operation of its AJI-NO-MOTO
®
packaging plant
Acquired a majority share in Agro2Agri, S.L., an
agricultural biostimulant manufacturer
Concluded a contract to establish a joint venture
company producing powdered soup NONGSHIM
CO., LTD. in South Korea
PT AJINOMOTO INDONESIA enhanced production
facilities for the menu-specic seasoning Sajiku
®
8.— AJINOMOTO INDIA PRIVATE LIMITED launched the
Blendy
®
powdered drink series
1.20
6.—
9.3
10.—
12.6
Inauguration of President Trump
A highly poisonous invasive ant (Solenopsis invicta)
found in Japan
North Korea conducted its sixth nuclear test. They
conducted ballistic missile launches repeatedly.
LDP victory in the House of Representatives election
Shogi master Habu Yoshiharu awarded the rst ever
Seventh Lifetime Title
2018 2018
2.20
5.22
6.1
9.20
-21
Established the AjiPanda
®
KIDS employee childcare
center at Kawasaki Plant
Agreed to a joint venture with Kohjin Bio Co., Ltd.
(founded in June)
Opened the Client Innovation Center (CIC)
World Umami Forum held in New York in the U.S.
4.1
10.23
11.30
Established the Solutions & Ingredients Dept.
Renewed the naming rights contract for AJINOMOTO
STAD IUM for ve years, from March 1, 2019 to the
end of February 2024
Kawasaki Plant announced the construction of a
new facility for the manufacture of soup and other
products (scheduled for completion in the rst half of
FY2021)
2.19
2.19
7.—
7.—
8.20
8.—
8.—
40th
anniversary of the launch of the Cook Do
®
series. Launched noodle seasoning.
Launched Knorr
®
vegetable soup for rice
Expiration date labeling including only the year and
month (without dates) completed for home use
products of seasonings and packaged foods
Updated all products in the Pure Select
®
series
Launched Knorr
®
Cup Soup Veggie Recipe
®
Ajinomoto AGF, Inc. launched Blendy
®
Stick Hojicha
Au Lait
Ajinomoto Frozen Foods Co., Inc. launched Ginger
Gyoza
7.—
11.19
12.31
Ajinomoto Istanbul Food Sales Ltd., Kükre A.
Ş
. and
Örgen Gıda Sanayi ve Ticaret A.
Ş
. were integrated
and the company name changed to AJINOMOTO
ISTANBUL FOOD INDUSTRY AND TRADE LTD. CO.
Concluded an agreement to sell all the shares
of Hong Kong Amoy Foods Ltd. to CITIC Capital
Holdings Limited’s afliate investment fund, and
commenced a joint venture with the company
Recorded impairment loss related to investment
in Ajinomoto Foods North America, Inc. and
Promasidor Holdings Limited in the third quarter
consolidated nancial results
2.9
-25
3.18
4.27
6.12
6.28
-7.8
9.6
9.28
10.—
12.31
2018 Winter Olympics held in South Korea
Vladimir Putin re-elected president of Russia
Panmunjom Declaration between North and of South
Korea, led by Moon Jae-in and Kim Jong Un
The U.S. and North Korea held a summit in Singapore
and signed an accord
Heavy rainfall in western Japan (July 2018 Rainfall)
Hokkaido Eastern Iburi Earthquake (maximum
seismic intensity 7)
Earthquake and tsunami in Indonesia left more than
2,000 dead
Tokyo’s Tsukiji Market closed after 83 years
The U.S. left the United Nations Educational,
Scientic and Cultural Organization (UNESCO)
2019 2019
1.—
4.1
4.1
5.27
11.1
The ve food manufacturers in Japan commenced
joint shipping in Kyushu
Established Ajinomoto Food Manufacturing Co., Ltd.
Integrated the logistics functions of the ve food
manufacturers in Japan to establish F-LINE
CORPORATION on a national scale
Announced support for the Task Force on
Climate-related Financial Disclosures (TCFD) and
participation in the TCFD Consortium
Agreed to establish a joint venture in April 2020 with
Accenture Japan Ltd for the purpose of transforming
Ajinomoto Co., Inc.’s operations
4.9
4.—
9.6
10.29
Received the Science and Technology Award in the
development category from the Commendation for
Science and Technology by the Minister of MEXT for
AminoIndex
®
Technology in FY2019
Stroke and myocardial infarction added to the
AminoIndex
®
Risk Screening (AIRS
®
)
Announced the cancellation of the whole sales
agency contract with the Kellogg, Co. on March 31,
2020
Announced that J-OIL MILLS, INC. and the Nisshin
OilliO Group, Ltd. would enter into discussions to
begin a business partnership involving oil extracting,
joint delivery, etc.
2.18
2.18
3.—
3.—
4.1
4.1
8.22
8.22
8.—
11.1
Launched HON-DASHI
®
Noko Dashi and Gu-tappuri
Miso Soup
Launched Kaketechin
♪
Onsai Okazu for microwaves
J-OIL MILLS, INC. launched AJINOMOTO Kara-Age
no Hi-no-Abura
J-OIL MILLS, INC. launched Rama Olive & Butter
Flavor
Selling price revised for Seto no Honjio
®
, Aji-Shio
®
and YASASHIO
®
Selling price and volume of Ajinomoto KK
Consommé and Knorr
®
Consommé revised
Launched Knorr
®
Soup Grande
®
amino VITAL
®
PRO and amino VITAL
®
fully updated
Ajinomoto AGF, Inc. launched Blendy
®
Roasters &
Selling price for Cook Do
®
Chinese and Korean
mixed seasoning for home use revised
3. 6
6.10
8.19
8.20
8.29
Signed a contract to become the highest sponsor
of Southeast Asia’s largest sports competition, the
SEA Games. It was held in the Philippines between
November and December 2019.
Established the Group’s rst amino acid cleaning
agent plant in Brazil (scheduled to commence
operation in the fall of 2020)
AJINOMOTO (MALAYSIA) BERHAD started building
a new plant with an enhanced system to develop and
produce Halal-compliant products (to commence
operation in April 2022)
Acquired 50.1% share in the U.S.’s More Than
Gourmet Holdings, Inc.
Announced a policy of conversion to exclusive
ownership of GranulesOmniChem Private Limited,
an Indian joint venture company (approved by the
government as of June 2, 2020)
4.1
4.15
5.1
6.9
6.28
-29
7.18
8.2
9.8
-9
9.23
10.1
10.31
11. 24
11.30
12.18
Announcement of the new Reiwa era
Large re at Notre Dame Cathedral in France
Ascension of Japan’s new Emperor (succeeding the
previous Emperor’s abdication on April 30)
1.03 million people attended pro-democracy
demonstrations protesting the Hong Kong extradition
bill
The 14th G20 Summit was held in Osaka
An arson and murder incident occurred at Kyoto
Animation Co., Ltd.
The Intermediate-Range Nuclear Forces (INF) Treaty
between the United States and Russia expired
Typhoon Faxai struck in 2019, damaging central
Chiba Prefecture
16-year old Swedish environmental activist Greta
Thunberg spoke at the United Nations
Consumption tax rate raised to 10% (a reduced 8%
tax rate applied in some circumstances)
World Heritage Shuri Castle’s main hall and other
structures burned down
Message from Pope Francis about the abolition
of nuclear weapons delivered in Nagasaki and
Hiroshima
Completed the new national stadium, the main venue
for 2020 Olympic and Paralympic Games
President Trump became the third president in
the U.S. history to be impeached by the House of
Representatives
2020 2020
5.14 Announced introduction of the Ajinomoto Group
Nutrient Proling System for Products (ANPS-P) in 7
countries including Japan
3.— Launched Steamy for microwave oven cooking
through general channels in Tokyo and 9 prefectures
and a proprietary website for direct sales
1.—
3.30
4.7
COVID-19, a new coronavirus, broke out in Wuhan,
China and spread globally
Tokyo 2020 Olympic & Paralympic rescheduled for
July to September 2021
Emergency declarations were issued for 7
prefectures and expanded nationwide on April 16
The History of the Ajinomoto Group
128
Postscript
The production of “10-Year History” of the Ajinomoto Group between FY2009 and FY2019
began with preparations for the launch of the production committee in July 2017. The committee
was established in November of the same year and was authorized at the Executive Committee
Meeting in April 2018. A little over three years later, the project is nally nearing completion.
During this time, we conducted more than 50 interviews with various departments to record
the history of the Group during this period. We made efforts to include not just written text,
but voice recordings of the employees who actually engaged in the work. When we met with
company President & CEO Takaaki Nishii in January 2018, he said we should “Create something
that will be read by as many stakeholders as possible.” This became our project coordination
team members’ motto throughout its production.
The style of our “10-Year History” differs greatly from that of most corporate histories.
Many people might be surprised that interviews and conversations with CEOs play a major role
in this publication (The History of the Ajinomoto Group (FY2009 - FY2019), Chapter II).
During this period, we initiated various eorts towards becoming a truly global company.
We realized input from top management would be essential to gain a more realistic understanding
of the Ajinomoto Group Creating Shared Value (ASV) and to have our valued stakeholders
understand their passion for food, which plays an important role in our lives.
We would like to thank the many people within and outside the Group who cooperated in
this history’s production. In particular, we want to thank Mr. Tomohide Tsuji, author of “Toyonobu
Domen, A Manager Who Challenged the Times: Another Jiro Shirasu,” for allowing us to use
quotations from the book. They helped us recognize that we exist on a foundation built by the
great executive Mr. Toyonobu Domen. We also owe a debt of gratitude to Mr. So Maeda of DNP
Communication Design Co., Ltd., who kindly helped us with many dicult problems, and Mr.
Makoto Tsukioka of APIX Co. for writing clearly and carefully about our complicated activities.
Finally, we would like to thank Professor Masahiro Okada of Keio University’s Graduate
School for his helpful guidance and advice. We gained a lot of insight, including the realization
that our way of thinking is not the norm. We would like to express our deep gratitude for his
kindness over the past two years.
October 2020
Saburo Inada
(Project Coordination Leader)
Yuichiro Nakajima
“10-Year History” Project Coordination Team
Global Communications Dept.
Ajinomoto Co., Inc.
The History of the Ajinomoto Group
Fiscal Years 2009 - 2019
Date of release: October 30, 2020
Publisher
Ajinomoto Co., Inc.
15-1, Kyobashi 1-chome, Chuo-ku, Tokyo 104-8315, Japan
Editing Assistance
DNP Communication Design Co., Ltd.
Printing
Dai Nippon Printing Co., Ltd.
1-1-1, Ichigaya-Kagacho, Shinjuku-ku, Tokyo 162-8001, Japan
Printed in Japan
©Ajinomoto Co., Inc. 2020
The History of
the Ajinomoto Group
Fiscal Years 2009 - 2019
The History of the Ajinomoto Group
Fiscal Years 2009 - 2019
