AJINOMOTO CO., INC（2802）

First Presentation

Investor Relations, Global Financial Dept. (As of Nov. 2019)

Copyright © 2019 Ajinomoto Co., Inc. All rights reserved.

1. Corporate Data (FY2018)

*A profit indicator defined by Ajinomoto for administrative purposes.Sales - Cost of sales - Selling expenses, Research & development expenses and General & administrative expenses + Share of profit of associates and joint ventures

1Copyright © 2019 Ajinomoto Co., Inc. All rights reserved.

Corporate Headquarters15-1, Kyobashi 1-chome, Chuo-ku,

Tokyo, Japan

Foundation 1909

Number of Employees 34,504

Paid-in Capital ￥79.8B

Net Sales ￥1,127.4B

Business Profit* ￥92.6B

Number of

Affiliated Companies128

Inc. Number of Affiliated

Companies Overseas89

Countries and regions

with business sites35 countries and regions

Countries where

products are soldOver 130 countries and regions

２．What Are Amino Acids?

Approx. 100,000

types of proteins

The 20 Types of Amino Acids

That Make Up Proteins

Isoleucine Glycine

Leucine Alanine

Lysine Serine

Methionine Aspartate

Phenylalanine Asparagine

Threonine Glutamate

Tryptophan Glutamine

Valine Arginine

Histidine Cysteine

Tyrosine

Proline

About 20%

Lipids and

Saccharides

About 20%Proteins

About 60%

Water

About 60% Water Proteins, Lipids, Minerals and Saccharides

Proteins account for about 20% of the body

Proteins are composed of 20 types of amino acids

→ Make up skin, muscle, bones, organs, blood, hormones, etc.

2Copyright © 2019 Ajinomoto Co., Inc. All rights reserved.

３．Beginning of Foundation

Dr. Kikunae Ikeda Discovers Umami in 1908

Saburosuke Suzuki ll commercialized with strong desire

to “improve the nutrition of the Japanese people.” in 1909

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４． Infant taste Umami

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Copyright © 2019 Ajinomoto Co., Inc. All rights reserved.

Starch from corn or cassava

Enzymatic

degradation

Glucose

(a kind of sugar)

in molasses extracted

from sugar cane. Glucose

Glutamic acid

Fermentation

Glutamic acid

producing microbe

Glucose and glutamic acid producing microbe

are key substances to produce glutamic acid

by fermentation.

●●

●●

●●

Glucose

●●●●

●●

Glutamic acid producing microbe transforms glucose

into glutamic acid.

Sugar cane Molasses

Corn

Cassava

Production process of glutamic acid by fermentation

５． Raw materials and Production Method

5

６． Safety of Monosodium glutamate (MSG) is concludedin the world

Conclusion of safety about MSG by public institution

○1958 FDA designates MSG as Generally Recognized as Safe.

○1979 National Academy of Science in US confirms MSG is safe as

a food ingredient.

○1987 Joint FAO/WHO Expert Committee on Food Additives places

MSG in the safest category for food additives.

○1991 European Community’s Scientific Committee for food confirm

safety of MSG

○1992 American Medical Association concludes normal MSG levels in

diet are safe.

○1995 FDA reaffirm MSG is safe upon a report from the Federation

of American Societies for Experimental Biology.

○2003 Food and Standards Australia New Zealand declared MSG is safe.

6Copyright © 2019 Ajinomoto Co., Inc. All rights reserved.

Nutritional

function

Physiological

function

ReactivityFlavoring

function

Sweetener

Seasonings

Processed

food

Frozen

foods

Pharmaceutical

custom

manufacturing

Chemicals

Personal

healthcare

Healthcare

AminoIndex®

Amino acids for

pharmaceutical

Infusions

Animal

nutrition

Amino acids

functions

Ajinomoto

technologies

Business

Quicker

cooking needs

Healthy lifestyles

Low salt,

low sugar, low fat

Increased demand for meat

Locomotive, metabolic syndrome

Diagnosedisease risks

Improve

information

processingcapacity

Needs for

natural

cosmetics

Solving

Social Issues

Improved nutritional balance

Improving quality of sleep

７． Business Deployment Based on Amino Acids

Evaluation of taste

and palatability

Design of

deliciousness

Improvement of

material properties

Granulation /

Processing

Statistical

analysis

Highly sensitive and speedy analysis

Evaluation of

health functionFormulation and

emulsification

Evaluation of

nutritional function

Polymerization

/ Film formation

Evaluation of

functionality

Hybrid

manufacturing

process

Japan Food

Products

International Food

Products

Healthcare

Life Support

Copyright © 2019 Ajinomoto Co., Inc. All rights reserved. 7

Unmetmedical needs

８． FY2018 Sales and Business Profit by segments

Japan Food Products

375.0

International Food Products

481.6

LifeSupport107.9

Healthcare135.3

Other27.4

Japan Food Products

29.8

International Food Products

42.3

LifeSupport

9.5

Healthcare12.0

Other-1.2

FY18

¥1,127.4 bil.

FY18

¥92.6 bil.

Sales Business profit*

*A profit indicator defined by Ajinomoto for administrative purposes.Sales - Cost of sales - Selling expenses, Research & development expenses and General & administrative expenses + Share of profit of associates and joint ventures

8Copyright © 2019 Ajinomoto Co., Inc. All rights reserved.

９．What We Aim for

Roadmap to a "Genuine Global Specialty Company"

EPS growth rate

ROE

Business profit margin

Business profit

Intl. sales growth rate2)

¥95.6 bil.

FY17Actual

13％

9.6%

8.6%

Global top 10 class

food company level1)

7.7%

3.0%

-38%

10%

10%~

¥150.0 bil.

¥130.0 bil.

5%3)

Become a global top 10 class company

with robust business structure

Sustained growth as a

global top 101)

class food company

Become a global

top 10 class food company

FY19RevisedForecast

FY20Target (Organic growth)

¥88.0 bil. ¥137.0 bil. ~

Double-digit annual growth

Double-digit annual growth

1. Global top 10 class status defined as business profit of ¥130.0 billion or higher with IFRS accounting standards.; 2. Consumer foods, local currency basis.; 3. Includes Frozen foods.

9

-49%

4.7%

8.2%

6%3)

FY18Actual

¥92.6 bil.

Copyright © 2019 Ajinomoto Co., Inc. All rights reserved.

3%3)

Sustainable value creation

as a Genuine Global

Specialty Company

In concert with the next MTP

Reb

uild

ing

the

gro

wth

str

ateg

y↓

１０． Financial Strategy

• Operating cash flow of approx. ¥350.0 bil. during

FY17-19

• EBITDA to sales ratio to 13% (to the level of latter half)

• Utilize interest-bearing debt while maintaining

a debt-equity ratio of approx. 50%Financing

Cash

flow

Investments

for growth

＋

Shareholder

returns

FY18 Actual

• Engage in integrated mgmt of CapEx, R&D, and M&As and

allocate investments corresponding to areas of growth– R&D: Approx. ¥29.0 bil. per FY (ratio to sales = 2.5%)

– CapEx: Total of approx. ¥230.0 bil. over 3 years

– M&A: Actively engage in strategic M&A investments

• Consider raising the ownership ratio of affiliated companies

for higher net profit

• Pay stable and continuous dividends

(Target payout ratio of 30%)

• Consider flexible share buy back with a target shareholder's

return (payout + buy back ratio) of 50% or higher

Operating CF:¥123.2 bil.

EBITDA ratio:12.9%

Total expenditures:

¥107.4 bil.

R&D: ¥27.8 bil.

CapEx: ¥79.6 bil.

M&A: ¥0 bil.

Payout ratio:

59.7%

Debt-equity

ratio: 36.3%

10Copyright © 2019 Ajinomoto Co., Inc. All rights reserved.

１１． Ajinomoto Group thinking of ESG

食を通じて、家族や人と人がつながり、

多様なライフスタイルを実現できる

社会づくりに貢献します

モノづくりから消費の場面に至るまで、

社会とお客様と共に地域・地球との

共生に寄与します

グローバルトップクラスの多様な人財が、

お客様起点で地域と価値を共創します

先端バイオ・ファイン技術と

そこから生まれたおいしさ設計技術により、

おいしくからだに良い食で、

健康づくりに貢献します

• うま味を軸とした、たんぱく質・野菜が摂取出来る

おいしくからだに良いメニューをプロデュース

ASVを通じた価値創造ストーリー

グループが解決すべき社会課題と目指す創造価値味の素グループは、事業を通じて社会課題の解決に貢献することで、経済価値を向上させ、持続的な成長を実現してきます。

　　社会 S

　　環境 E

　ガバナンス G

【解説(3つの社会課題とASV価値ストーリーの関係性)】

Social Issues to Resolve and Values to Create as The Ajinomoto GroupContribute to resolve social issues with our businesses, leading to economic value and sustained growth

　　Social S

　Environmental E

　Governance G

We contribute to the development of a society that enables strong family/social bonds and diverse lifestyles through eating well

We contribute to the sustainability of the society and the earth, with our customers and local communities, across the value chain from production to consumption

We co-create value with each region through the perspectives of the customers, with our global, top-class and diverse talents

We contribute to health and well-being by utilizing our leading-edge bioscience and fine chemical technologies which also leads to deliciousness technologies, and by delivering good and healthy food •Produce good and healthy food menus with proteins

and vegetables centered on Umami

【解説(3つの社会課題とASV価値ストーリーの関係性)】

Social Issues to Resolve and Values to Create as The Ajinomoto GroupContribute to resolve social issues with our businesses, leading to economic value and sustained growth

　　Social S

　Environmental E

　Governance G

We contribute to the development of a society that enables strong family/social bonds and diverse lifestyles through eating well

We contribute to the sustainability of the society and the earth, with our customers and local communities, across the value chain from production to consumption

We co-create value with each region through the perspectives of the customers, with our global, top-class and diverse talents

We contribute to health and well-being by utilizing our leading-edge bioscience and fine chemical technologies which also leads to deliciousness technologies, and by delivering good and healthy food •Produce good and healthy food menus with proteins

and vegetables centered on Umami

【解説(3つの社会課題とASV価値ストーリーの関係性)】

Social Issues to Resolve and Values to Create as The Ajinomoto GroupContribute to resolve social issues with our businesses, leading to economic value and sustained growth

　　Social S

　Environmental E

　Governance G

We contribute to the development of a society that enables strong family/social bonds and diverse lifestyles through eating well

We contribute to the sustainability of the society and the earth, with our customers and local communities, across the value chain from production to consumption

We co-create value with each region through the perspectives of the customers, with our global, top-class and diverse talents

We contribute to health and well-being by utilizing our leading-edge bioscience and fine chemical technologies which also leads to deliciousness technologies, and by delivering good and healthy food •Produce good and healthy food menus with proteins

and vegetables centered on Umami

11Copyright © 2019 Ajinomoto Co., Inc. All rights reserved.

１２． FY2020 Integrated Targets

ASV Value

Creation Stories

Social value

＜Ajinomoto Group-wide targets＞　Economic value Integrated Value

・Better nutritional balance by

eating more proteins and

vegetables with umami

　　＜Meats and vegetables consumption＞

・More eating together

　　＜Contribution to eating together＞

・Smart and delicious cooking

　　＜Spare time created＞

・People's comfortable lifestyle

　　＜Contribution to comfortable lifestyles

(AminoScience)＞

　Environ

-mental

③Living with the society

and the earth

　Resolution of environmental issues

　　＜Resolution of environmental issues＞

Cost reduction

　▲¥10 bil.※1

　Gover

-nance

④Co-creation with our

diverse human resources

　Improved employee engagement

　　＜Employees with high engagement＞

Higher work efficiency

supported by ICT

　▲¥2.5 bil.※1

　　Social

①Health & well-being

through good and

healthy food

Total sales

　¥1,350 bil.

　 (+¥260 bil.)

Corporate brand

value※2

1,500 mil.USD

or more

　(+850 mil.

USD or more)

②Strong social bonds,

diversity of lifestyles

S

E

G

※1 Comparison between FY16 and FY19

※2 Measured by Interbrand, "Japan's Best Global Brands 2016" (based on FY15 results)

Create social/economic value through our business based on ASV Value Creation Stories

Social Value/Non-financial Targets from the viewpoints of ESG 12Copyright © 2019 Ajinomoto Co., Inc. All rights reserved.

➢ Forward-looking statements, such as business performance forecasts, made in

these materials are based on management's estimates, assumptions and

projections at the time of publication. A number of factors could cause actual

results to differ materially from expectations.

➢ This material includes summary figures that have not been audited so the numbers

may change.

➢ Amounts presented in these materials are rounded off.

Copyright © 2019 Ajinomoto Co., Inc. All rights reserved.