Ajinomoto (2802) investor relations material

Governance and board effectiveness

• Revised group code of conduct (AGP) and policies to address evolving environmental, social, and stakeholder requirements, implemented April 1st.

• Governance structure clarified, emphasizing compliance, transparent relationships with politicians and governments, and prioritizing stakeholder responsibilities.

• Established Group Compliance Committee to oversee global compliance, AGP implementation, hotline operations, and regional compliance structures.

• Board effectiveness survey ongoing, focusing on direction-setting, risk support, operational supervision, and regular evaluation of internal controls.

• Plans to align board members on priorities, evolve board structure and agenda in 2026, and standardize processes to support growth.

Executive management, succession, and compensation

• Succession plan executed with new president and ongoing development of a medium- to long-term growth strategy and 2030 roadmap.

• Executive compensation under review to strengthen linkage with performance, shareholder value, and ambitious goals, with more weight on medium-term incentives and TSR.

• Feedback from investors and executives shaped compensation revisions, aiming for transparency, market competitiveness, and value-driven incentives.

• Short-term incentives now reward exceptional performance; medium-term incentives emphasize TSR, with unified calculation formulas and expanded eligibility for stock-based incentives.

• New system includes personalized communication, ongoing feedback sessions, and consideration to grant shares to overseas officers and adjust incentive curves.

Audit and risk management

• Recognized by FSA for best practices in audit disclosure and hybrid audit approach combining internal and management audits.

• Audit committee conducts site visits and interviews to ensure psychological safety and gather candid feedback.

• Hybrid audits cover both domestic and overseas subsidiaries, focusing on operational and governance aspects.

• Focus on business risks, audit, and revision of group policies.