Ajinomoto Co., Inc.

Sustainability Initiatives Aimed at Enhancement of Corporate Value

Tatsuya Sasaki

Director, Executive Officer & Senior Vice President

Chika Morishima

Executive Officer & Vice President

March 27, 2024

Today's Message

  • • By advancing initiatives concerning key themes that the Ajinomoto Group should address, we seek to expand the creation of social value and economic value.

  • • Within these initiatives, efforts for the creation and expansion of positive impacts on society in diverse domains are accelerating, and visualization of our path toward achieving ASV* is making progress.

    Today, I would like to place a special focus on initiatives to create positive impacts.

  • • Through communication with our stakeholders, we will further refine ASV management and connect it to the solid enhancement of corporate value.

*The Ajinomoto Group Creating Shared Value: Initiatives to create both social and economic value through its business, which the Group has been consistently engaging in since its foundation.

Examples of Achievement of ASV

Creation of Value through the Global Umami

Seasonings Business Value Chain

Creation of Value through the Umami Seasonings Business Value Chain: Overview of Initiatives

We seek to achieve sustainable agriculture and prosperity for local communities through outreach and initiatives across the value chain, from upstream to downstream.

(midstream)

Biocycle promotion through our own co-products (fertilizers)

Farmer support

Building of relationships with farmers and provision of support

Low-environmental-impact manufacturing

Improvement of health and nutrition

(technology, agricultural materials)Reduction of greenhouse gases through proprietary manufacturing technologies that conserve raw materials and fuelsProvision of reduced salt products and nutritionally balanced menus through

Deliciousness Technology

Reuse of resources

Reuse of manufacturing by-products as fertilizers, feeds, and soil conditioners

Strengthening of technical assetsStrengthening of customer assets

Purchase as raw materials

Stability and increase in suppliers' yields

(Stabilization of farmers' livelihoods)

Enhancement of employee engagement

Sharing of aspirations (Purpose);

multifaceted communication

Reduction of environmental impacts from amino acid production (GHG reduction)

Strengthening of organization and human assets

Earning of customer loyalty

Evaluation of our sustainability activities

Toward the creation of long-term economic value

Creation of Value through the Umami Seasonings Business Value Chain: Achievement of ASV and Circulation of Intangible Assets

By engaging in consumer-perspective initiatives through the strengthening of intangible assets, economic and social value will be created and will connect to long-term economic value. This is spurring the circulation of further accumulation of intangible assets, which is leading to the evolution of ASV management.

The balance between

increasing farmers'

income and reducing

raw material

procurement costs.

Creation of Value through the Umami Seasonings Business Value Chain: Elements of the Equation for Calculating Enhancement of Corporate Value

  • • Sales expansion

  • • The balance between increasing farmers' income and reducing raw material procurement costs.

  • • Reduction of production costs

Corporate ＝with

  • • Acceleration of initiatives through enhancement of employee engagement

  • • Development of global and other businesses

  • • Risk reduction through stable procurement via support for farmers

  • • Reduction of the cost of borrowing through the effective use of sustainability financing through environmental impact reduction

  • • Earning of customer loyalty

  • • Enhancement of brand power through provision of health and nutritional value to consumers and through evaluation of our sustainable initiatives

Creation of Value through the Umami Seasonings Business Value Chain: Quantification of Value Creation

Values are estimated by Ajinomoto Co., based on initiatives at global umami production plants or on cases of support for cassava farmers in Thailand.

Applicable outcomes

Specific item name

Estimated value

Reduction of environmental impacts of the value chain overall

GHG emissions

approx. 60% decrease

Scope 1 + 2 (FY2030 vs FY2018)

Social value

Stability and increase in supplier yieldsStarch yield per ha

(= Increase in farmers'

approx. 40% increase (FY2022)

incomes)

Economic value

Short-term

Reduction of production costs

Production costs

(Raw materials and fuels saving, productivity enhancement)

Productivity enhancement through adoption of proprietary technologies that conserve raw materials and fuels

approx. 4.5% decrease (FY2030 vs FY2019)

Long-term

The balance between increasing suppliers' income and reducing raw material procurement costs.

Raw materials costs

(Suppression of purchase price due to increase in starch yield)

approx. 15% decrease

Increase in sales

(= Capture of customer loyalty, enhancement of corporate brand value)

Purchasing volume x unit price

approx. 4.5% increase

Estimated value: GHG emissions are comparisons of FY2030 to FY2018. Production costs are comparisons of FY2030 to FY2019.

Starch yield and raw materials costs are provisional estimates for the single year FY2022 (assumption by Ajinomoto Co.).

Sales are estimated from the FY2022 Consumer Survey (Thailand).

Targeted scope: GHG emissions and production costs: Global umami plants

Starch yield, raw materials costs, and sales: Farmer support in Thailand 7

Key Themes that the Current Ajinomoto Group Should Address (Reposted)

Achievement of a sustainable global environment

Achievement of well-being through food

Contribution to advanced medicine and prevention

Contribution to the evolution of a Smart Society

Respect for diverse values and human rights

Reinforcement of our management foundation

Achievement of a Sustainable Global

Environment

Copyright © 2024 Ajinomoto Co., Inc. All rights reserved

We will work toward greater agricultural efficiency, crop quality, and reduction of environmental impact through the business of biostimulants* that leverage "AminoScience."

1930s

We started sales of co-products from production of umami seasoning AJI-NO-MOTO® as fertilizer, followed by worldwide roll-out to the present.

2000s onward

Research into co-products progressed, and research and development into biostimulants began.

We launched the first product, AMIHEART®, in 2011.

2017

We acquired a majority interest in Spain-based Agro2Agri S.L., which manufactures and sells amino acid-based biostimulants. Since then, we have jointly engaged in product development and customer development.

(Currently a 100% subsidiary of S.A. Ajinomoto OmniChem N.V.)

*Biostimulants: An agricultural material blending amino acids and other ingredients derived from fermentation microorganisms, natural extracts, and other natural materials to promote plants' natural power and growth.

Expected outcomes ofutilization of biostimulants

Enhancement of nutrients (proteins, vitamins, sugars, etc.)

Enhancement of quality

Reduction of water use

Reduction of chemical fertilizers and chemical pesticides

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Ajinomoto Co. Inc. published this content on 26 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 March 2024 23:20:08 UTC.