Our key message towards 2030
The Ajinomoto Group will be reborn as a solution-providing company for food and health issues for 2030.
“Help people worldwide enhance healthier life by unlocking power of aminoacids” This is the message for all stakeholders.
The power of amino acids is mainly to "delicious food", "promote growth and development", "recover from wasting", and "condition your body".
We will concentrate our corporate activities on improving lifestyles related to food and health through our products.
Key principles towards 2030
We will conduct group management with the policy of "concentrating all management resources for the purpose of solving food and health issues".
The management plan of "Transform management of HR & organization", "Add Consumer Value Centered on Health", and "Establish Profitable and Sustainable growth" includes to eliminate the company weakness in the shortage of strategy execution backed up by business transformation through digital transformation.
As a result, we will improve corporate value with a balance of corporate brand value, employee engagement and market capitalization.
Structural targets for 2030
As a structural target for 2030, we will aim for ROIC of over 13% from the viewpoint of efficiency and an organic sales growth rate of 5% from the viewpoint of growth. As priority KPIs that lead to this, we set the Sales ratio of core businesses, employee engagement, and unit price growth.
Toward the structural targets for 2030, the 20-22 Medium-Term Management Plan is defined as Phase 1 “Structural Reform”, and the 23-25 Medium-Term Management Plan is defined as Phase 2 “Regrowth”. We will transform our business structure into a sustainable business structure.
Three main strategies
1. Reform of profit structure: We will thoroughly concentrate management resources on priority businesses throughout the six years.
In Phase 1, the restructuring of non-priority businesses will be completed. We will also identify other businesses. In Phase 2, we will reorganize the businesses we will have identified to rebuild a sound business portfolio.
2. Business strategy to strengthen health promotion and a unit price increase strategy: through six years, we will pursue the taste that is compatible with lifestyles and continually improve our core brands and products. In addition, in Phase 1 we will invest in creating a food and health ecosystem. New business model for personal health based on this in Phase 2 challenge to build.
3. Human resources and organizational management reform: We will invest in digitally advanced operations in parallel with standardization of management methods that streamline business processes from the perspective of increasing customer value, in order to improve productivity throughout the six years.
Sustainability of Society and the Earth
Regarding ESG issues, we will work on the most important measures to reduce greenhouse gases by 50% by 2030 and to reduce the economic risk of 8 to 10 billion yen derived by TCFD simulation.
Corporate Financial strategy for FY25
In FY20-23, which is a structural reform, we will generate operating cash flow that exceeds FY17-19, and invest in growth investments.
Regarding shareholder returns, we will continue our basic policy of aiming for a total return ratio of over 50%, and maintain and increase the current dividend amount with a target payout ratio of around 40%.
We are confident that we will achieve sustainable growth through these efforts.
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