■Forecast for FY2019 (Ending March 31, 2020)and Toward the Next Medium-Term Management Plan

■Forecast for FY2019 (Ending March 31, 2020)and Toward the Next Medium-Term Management Plan

▼FY2018 Summary Results
▽Sales：￥1,127.4 billion(Increased)
・Large increase in sales in the Healthcare business (Pharmaceutical custom manufacturing, aminoacids for pharmaceuticals and foods).
・Increase in sales of the International Food Products business (Seasonings & processed foods,frozen foods).

▽Business profit:￥92.6 billion(Decreased)
・Large decrease in profit for Japan Food Products (Frozen foods, coffee products) due to shrinking sales accompanying stiffening competition.
・Decrease in profit for international frozen foods due to increased costs.
・Impairment loss of ￥3.2 bil. related to Promasidor Holdings Ltd. (PH) trademarks

▽Profit attributable to owners of the parent company:￥29.6 billion(Decreased)
・Impairment loss of ￥31.2 bil. at Ajinomoto Foods North America, Inc., PH, and AJINOMOTO ISTANBUL FOOD INDUSTRY AND TRADE LIMITED COMPANY.

▼FY2019 Forecast, Managerial Policies, and Plan
Aiming to achieve the FY2017-2019 MTP structural targets for FY2020 (business profit margin =10%, ROE > 10%) with the next MTP, we will promote asset light (concentration and focusing to create innovation) and Digital Transformation (DX) that includes the use of IoT, AI, etc.

▽Business divisions
・Accelerate growth by focusing resources on categories where we can be in the global top 3
・Start asset light as soon as possible as a foundation of FY2020-2022 MTP

▽Corporate functions
・Execute company-wide initiatives such as increasing corporate brand value and promoting an advanced style of work
・Rationalize corporate expenses by the following six approaches
1. Sophistication, 2. Consolidation, 3. Centralization, 4. Standardization, 5. Automation, 6. Reorganization(Target: 2.5% vs. sales in FY2020)

▽FY2019 Forecast
・Sales：￥1,171.0 billion
・Business profit:￥97.0 billion
・Profit attributable to owners of the parent company:￥50.0 billion

▼Toward the Next Medium-Term Management Plan
For sustainable growth, strengthen competitiveness through DX and moving to asset light.

▽Asset Light Measures
・Resource allocation
-Repayment of loans through reflux of the Group’s cash and deposits
-Sale of policy shareholdings
-Reorganization of functional subsidiaries
-Reconsideration of JVs

▽Reduction of business assets
-Reorganization of global frozen foods