Ajinomoto (2802) Investor update summary

Key strategic themes

• Accelerating purpose-driven management through the Medium-Term ASV Initiatives 2030 Roadmap, focusing on marketing evolution and digital transformation (DX) to achieve ambitious ASV indicators.

• Aspiration to extend healthy life expectancy for 1 billion people and reduce environmental impact by 50% through amino science.

• Medium-term management targets for 2030 include tripling EPS, raising ROE to 20%, and ROIC to 17%, with organic sales growth of 5% or more annually from FY2025.

• Employee engagement and brand value are key intangible assets, with targets to raise engagement scores to 85%+ and brand value to $2.39 billion by FY2030.

• Emphasis on employee-driven transformation and leveraging digital technology for corporate value enhancement.

Marketing transformation

• Marketing Design Center (MDC) established to foster innovation, develop talent, and integrate digital and mass media strategies, functioning as both a profit and service center.

• D2C Dept. launched in April 2024 to integrate direct consumer channels, support existing businesses, and expand marketing investment effects.

• D2C business model is shifting from single-item repeat orders to fan-building through brand attachment and content marketing.

• Influencer and ambassador programs are expanding, aiming for 100 million followers by 2030 and achieving ¥5.65 billion in media exposure in FY2023, a 1.7x increase year-on-year.

• Brand investment and marketing mix modeling have improved efficiency, ROI, and market share in key products.

Product and communication strategy innovation

• Product development reformed to integrate MDC throughout the process, enabling mass production of hit products.

• Successful launches include Cook Do Premium Mala Mapo Tofu and Pasta Cube, leveraging consumer insights and agile marketing.

• Transitioning from mass media to the PESO (Paid, Earned, Shared, Owned) model, integrating online and offline communication.