Realizing the Ajinomoto Group Philosophy Through its business activities, the Ajinomoto Group is striving to help solve three challenges faced by huma

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1 Realizing the Ajinomoto Group Philosophy Through its business activities, the Ajinomoto Group is striving to help solve three challenges faced by humanity in the 21st century: global sustainability, food resources, and healthy living. Technology is an essential means to realize the Ajinomoto Group Philosophy. By developing a broad range of advanced technologies with a focus on amino acids, the group is working to help solve the three challenges it has designated. 12

2 Committed to Realizing the Ajinomoto Group Philosophy The Ajinomoto Group Philosophy In 2009, on the occasion of the 100th anniversary of the founding of the Ajinomoto Group, the group reflected on its social responsibilities, unique capabilities and goals to be achieved as it considered the next century ahead. It led to a revision of the Ajinomoto Group Philosophy with an addition of the concept, "working for life." The philosophy expresses the intent of the Ajinomoto Group to make unique contributions to help solve fundamental issues facing humanity by drawing on the strengths of the entire group's accumulated technologies and expertise, and utilizing the potential of innovative raw materials, technologies, and business models. The meaning of "life" in the concept is connected to food and health the foundations of life as well as the natural environment, which supports all life on Earth. As such, the idea of "working for life" emphasizes the value that the group places on nature's precious gifts. With this addition to the philosophy of "contributing to significant advances in Food and Health," the Ajinomoto Group has declared its desire to contribute more intently and broadly toward solving social and environmental issues. All employees of the Ajinomoto Group share this desire, and, with a commitment to society, are pursuing and carrying out the necessary means to protect and enhance life through the group's products and services. Approach to Helping Solve Social Issues The Ajinomoto Group believes it has a corporate social responsibility to realize the Ajinomoto Group Philosophy through business activities. On the 100th anniversary of its founding, the group broadened the philosophy with the concept of "working for life," which led to the designation of global sustainability, food resources, and healthy living as three challenges that "life" faces in the 21st century. The group intends to strengthen the connection between its business domains and each of these three challenges with initiatives that demonstrate its unique capabilities. Toward this end, the Ajinomoto Group is striving to help create sustainable societies through collaboration with local communities and business activities that span from procurement, development and production, to the provision of products and services. 13

3 Incorporating the Challenges for Humankind in the 21st Century in the Medium-Term Management Plan Upon appraising the centennial history of the Ajinomoto Group, in 2010 the Medium-Term Management Plan was formulated as a step toward shaping its next 100 years of business. Under the plan, the group specified the challenges that humanity faces in the 21st century. However, it became evident that a strategic policy was needed to draw plans for projects intended to help solve such all-encompassing issues. Process of formulating the CSR Policy Approximately 30 business managers in charge of operations, production, and R&D divisions of Ajinomoto Co., Inc. participated in workshops held in May and June 2010, and discussed specific ways to proceed with a company-wide perspective. The workshops were divided into three stages, as shown in the chart at right. Ideas that emerged during the third stage of the workshops were narrowed down, with focus turning to the extent that the Ajinomoto Group could contribute to society, innovative qualities of the group's contributions, and the growth potential of its businesses. The participants became increasingly aware of the need to concentrate on and clarify priority matters in relation to each of the three challenges faced by humanity in the 21st century. A series of meetings were later held to discuss the workshop's results, and overall conclusions were presented at the annual stakeholder dialogues to obtain feedback. To gain new insights and ensure the soundness of the ideas, stakeholders were encouraged to offer suggestions from their respective points of view on how the group can help solve the social issues. Click here for more details: Stakeholder Dialogues Initiatives to help solve 21st century global issues 14

4 Following the stakeholder dialogues, the company formulated the Ajinomoto Group CSR Policy to specify the objectives of initiatives undertaken to help solve each of the three challenges designated. The Ajinomoto Group CSR Policy outline Area of initiatives Contributing to a low-carbon society Objectives of initiatives Target further reductions of CO2 emitted from production processes - Improve efficiency of energy consumption - Promote the shift to renewable energy Conduct carbon footprint research with the aim to reduce greenhouse gas emissions over an entire product lifecycle Global sustainability Food resources Conserving ecosystems and biodiversity Contributing to the recycling of resources Improving food productivity Maximizing usage of food resources Promote the sustainable use of resources in agriculture, livestock farming, and fisheries Explore new methods of applying amino acids and co-products 1 in research and development aimed at conserving ecosystems and biodiversity Promote more efficient usage and recycling of raw materials, fuel, and sub raw materials Further reduce water consumption, pursue advanced wastewater treatment technologies to promote recycling, and examine ways to obtain water consumption data through the supply chain to facilitate reduction Make comprehensive improvements to the environmental friendliness of containers and packaging to promote resource recycling among customers Strive to improve productivity in livestock farming and fisheries by providing feed additives Promote the utilization of amino acids and co-products to increase yields of agricultural resources Promote efficient use of resources in agriculture, livestock farming, and fisheries to minimize waste Upgrade technologies used by the group to minimize impact on ecosystems Actively offer suggestions to consumers aimed at making the most of food products and ingredients with minimum waste Healthy living Contributing to healthy living through nutrition Provide functional food products to help prevent lifestyle diseases and other chronic illnesses associated with excessive nutritional intake Cooperate in the social sector to help alleviate malnutrition in developing countries Apply amino acid analysis technologies to contribute to the medical field Help solve nutrition-related problems in areas affected by the Great East Japan Earthquake by actively providing information on health and nutrition. Responding to the aging of society Strive to improve the quality of life of elderly people through food 1. Co-products such as fertilizers and animal feeds are made using nutrient-rich fermentation liquid left over after the amino acid fermentation process. 15

5 The Ajinomoto Group Philosophy in Technologies and Initiatives Business and Technologies Based on Amino Acid Application Beginning with the discovery of umami, the founding spirit of the Ajinomoto Group is driven by a desire to explore the essence of great taste and promote healthy lifestyles. Building on this philosophy, the group has been making independent technological developments focused on amino acids for over 100 years with the aim to contribute to people's health. Amino acids are essential for life. The foundation of the group's business lies in the commercialization of glutamate, an amino acid found in the human body. Since then, breakthroughs in research and development on the nutritional and physiological benefits of glutamate and other amino acids continue to drive the growth of the Ajinomoto Group. Through their application, new technologies have been introduced not only in the area of food products, but also in an array of other fields. In recent years, an increasing number of these technologies have focused on contributing to environmental sustainability, such as the development of organic fertilizers using co-products generated from the amino acid fermentation process, and livestock feeds using lysine that reduce environmental impact. Measures for comprehensive CO2 emission control from product manufacturing through to customer usage are also being implemented. The combined synergies of these and other original technologies are enabling the Ajinomoto Group to offer unique solutions to the social issues faced by humanity in the 21st century. 16

6 The Role of R&D in the Medium-Term Management Plan In the pursuit of stable and continuous growth, the Ajinomoto Group is working to contribute to three challenges, namely global sustainability, food resources, and healthy living, through its business activities. To drive growth going forward, three strategies have been designated in the Medium-Term Management Plan: to achieve global growth by entering new markets, strengthen R&D leadership, and leverage resources outside the group. The plan also calls for the creation of new value through research and development by concentrating investment in developing the world's best seasonings, and establishing a cutting-edge biotechnology platform. In its aim to become the world's leading seasoning manufacturer, the Ajinomoto Group will continue extensive research on umami and the other four basic tastes. It will also strive to accumulate technologies in all fields related to uncovering the secrets of great taste, including the effects of aroma and food texture on experiencing taste. To establish a cutting-edge biotechnology platform, R&D resources will be channeled into biotechnologies that contribute to the sustainability of environment and resources, improve animal and plant nutrition, and can be utilized in advanced medical care and nutrition. These three areas correspond with what the Ajinomoto Group has designated as issues in the 21st century: global sustainability, food resources, and healthy living. Furthermore, the group intends to strengthen its R&D capabilities by establishing a global R&D network and actively promoting an open innovation approach to speed up the pace of results. R&D expenses in fiscal 2010: 36,906 million yen Patents secured: Approx. 4,400 17

7 21st Century Global Issues to Resolve through R&D 18