Ajinomoto (2802) Investor update summary

Key strategic themes

• Focus on creating shared value (ASV) by enhancing well-being, reducing environmental impact by 50%, and extending healthy life expectancy for 1 billion people by 2030.

• Accelerating purpose-driven management through the Medium-Term ASV Initiatives 2030 Roadmap, with marketing and digital transformation (DX) as central pillars.

• Marketing and DX are positioned as company-wide transformations, leveraging digital technology for speed, scale, and corporate value enhancement.

• 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.

• The Marketing Design Center (MDC) was established to drive innovation, develop talent, and create new business pillars with high growth potential.

Marketing transformation and innovation

• MDC focuses on D2C strategies, data-driven product development, and global expansion of marketing models, integrating mass media, digital, and influencer marketing under the PESO model.

• Success stories include innovative product launches (e.g., Cook Do® Premium Mala Mapo Tofu, Pasta Cube) and viral campaigns leveraging social media and celebrity partnerships.

• Influencer marketing and ambassador programs have expanded, achieving ¥5.65 billion in media exposure in FY2023, a 1.7x increase year-on-year.

• Brand power is enhanced through a support and contribution model, optimizing investment and leveraging marketing mix modeling for efficiency and improved ROI.

• Inner branding and talent development are prioritized, with global knowledge sharing and skill-building initiatives.

Digital transformation (DX) initiatives

• ADAMS, a unified data management platform, integrates data across business units, enabling efficient analysis and reducing manual workload.

• AI and generative tools are used for data access, customer insights, R&D, and productivity, with an AI subcommittee established in FY2024.

• Digitalization extends to production, inventory management, and supply chain, with visualization tools reducing inventory days and enhancing decision-making.

• Company-wide DX literacy and human resource development are emphasized, with education, recruitment, and internal training to build digital capabilities.

• Transition to a zero trust network and cloud-based services strengthens IT security and supports flexible work environments.