Good morning, ladies and gentlemen. Thank you very much for coming to Ajinomoto FY 2022 financial results briefing meeting in spite of your busy schedule. I am the MC. My name is Kaji. First of all, I would like to introduce the members of today. Representative Executive Officer, President Fujie.
This is Fujie. Hello.
Representative Executive Officer, Executive Vice President Shiragami.
Shiragami speaking. Hello to you.
Executive Officer and Senior Vice President, General Manager, Corporate Division Sasaki.
Sasaki speaking. Good morning.
Executive Officer, Senior Vice President, General Manager, Food Products Division Masai.
Masai speaking. Hello to you.
Executive Officer and Vice President, General Manager, AminoScience Division Maeda.
Maeda speaking. Hello to you.
Executive Officer and Vice President, Supervision of Frozen Foods Kawana.
Kawana speaking.
Executive Officer and Vice President in charge of Finance and Investor Relations and Sustainability and Communication, Executive Officer Horishima. Executive Officer, Finance IR Mizutani.
Mizutani speaking.
Good morning to you. In addition to these members, there are two executive officers present. Executive Officer in charge of Quality Assurance Sumigaura. Good morning. Executive Officer in charge of Diversity and HR Kaihara. Kaihara speaking. Good morning to you. For the rest of the day, if there are other points, including these members, there will be a response to be given. However, we have one hour 30 minutes for today's meeting. The materials for today would be on the homepage, our information site of Ajinomoto. Therefore, I hope you will refer to them. Today's contents will be recorded and including the Q&A session. On subsequent days, they will be put on the IR site, so please understand. I would like to start. Forecast for FY 2023, ending March 31, 2024, and initiatives for enhancing corporate value. Explain from Mr. Fujie. The floor is yours, Mr.
Fujie. Good morning. Hello to all of you. Today, in spite of your busy schedule, thank you very much for attending this meeting. Time has passed very quickly. Last year in April, I was inaugurated as president. Already one year and one month has passed. There are a lot of rapid changes occurring in the environment, but we have been able to start very successfully, and we would like to challenge into the higher area so that we'll be able to really seek for success and go to higher levels. In 30 minutes, first of all, I would like to talk about FY 2022 performance and also the forecast for 2023. What are the initiatives for that, and what do we think about the business performances will be explained, too. After that, Q&A will be solicited.
Advice, et cetera, will be solicited from all of you so that our initiative acceleration and scale expansion will be tackled. Thank you very much. Next page, please. Today, this is the two points that I will remark on. Next, please. Today, in summary, it has been concluded as this. Those are the five points here. First, FY 2022, we increased revenue and profit, business profit exceeding even the performance forecast that we had revised upward. Profit and revenue after IFRS in FY 2016, we have reached new heights since then. Second, the seasonings and foods and frozen food products, which profits had declined through Q3, came together to counter the environment. In 2023, we will steadily grow the profits. Third point, healthcare and others drove the overall performance in double-digit % growth in both sales and profits.
While electronic material business will be affected by semiconductor market adjustments in the short term, we will confidently work to achieve our vision over the medium to long term. Fourth point, we will also increase shareholder returns with higher dividends and by buying back shares, as well as by introducing Normalized EPS and a progressively dividend policy as indicated in our roadmap, with the aim of having three times the EPS in FY 2030. The fifth and last point, we announced a purpose-driven management by medium-term ASV initiatives 2030 roadmap, and we are making efforts to instill it. Next, please. Next, please. FY 2022, this is a digest. Sales and profit, business profit having the second consecutive year record high, and for the fourth consecutive year, business profit was raised. Profit attributable to the owners of the parent companies for the second consecutive year.
Revenue grew in every segment. Sales increased, significantly boosted by currency translation and further driven by efforts to raise our prices in seasoning, food, frozen foods business, every region, as well as solid growth of businesses, including healthcare and others. As you see, profits increased in every segment. Next page, the gross impact of raw material and fuel costs. It was around JPY 55 billion that we expected at the beginning of the year, we thought that it would become JPY 45 billion. In the beginning of the year, JPY 10 billion negative was what we forecasted. In the year, the net impact is JPY 10 billion, which became -JPY 2 billion. Therefore, there was the acceleration of various initiatives and capabilities are being polished furthermore. Next page, please. In each of the segments, we had the increase in profit. Next, please. It's about cost.
In FY 2022, from the beginning of the year, ammonia mainly had been significantly re-rising in prices. In the second half, the raw sugar, tapioca, and other main raw materials rose in the second half, and unable to in-absorb them. In 16 countries, 45 price hikes occurred in Umami Seasonings. In 2023, we foresee further cost increases from the previous year, particularly in the first half. We think that the cost will be more increased throughout the year. JPY 10 billion and more of cost increases may be expected. We would like to identify decisively carry out necessary counter responses. Next page, please. This is the seed needs and quick nourishment combined into volume and unit prices. This is the first time we could disclose this. For FY 2022, sales in Japan was as you see against the previous year.
The volume is down to 96% and quantity, and 104% by unit price, and 103% and 108% overseas, and 103% increased volume steadily on. FY 2022- 2022. In all of the priority KPIs, we achieved the targets of phase I. ROIC specifically was where eight point % was our target, but we reached 9.9% structural reform. That was the theme of the phase I yielded result in excess of the plan. Next, please.
This shows the priority KPIs by segment, as you can see on the slide. Next slide, please. Regarding the progress of structural reform, the denominator, the invested capital, we aimed to reduce our asset to JPY 100 of JPY 100 billion, but we actually achieved JPY 214 billion. Surpassing our target, the ROIC grew. Starting from 2019, so amounting to JPY 200 billion asset-light approach was planned, as we conveyed earlier. By the end of 2022, we were able to already accelerate that to more than JPY 200 billion. Therefore, we are significantly going over the plan. In terms of the 2023 forecast, we project a record high revenue and profit according to our plan.
In terms of the single year growth driver, as we conveyed earlier, overseas s-foods will drive the growth. Especially in FY 2022, after the third quarter of FY 2022, the momentum started to emerge, and therefore, during the third quarter, we profitability grew significantly. We'd like to actually accelerate the momentum created last year, and healthcare and others will continue to grow to drive and achieve both revenue and profit increase in each segment. Next slide, please. Regarding the cost, how do we project our costs? This is actually factors behind changes in business profit, as you can see on the slide, please, for your perusal. Next slide, please. This shows factors behind changes in BP by segment, and the details are shown on the slide. Next slide, please.
This shows the sales breakdown as well as the factors behind BP changes for FY 2023. In Japan, we project a price increase as well as the group volume growth. We project the revenue increase. For overseas, we'd like to drive both the volume growth as well as unit price growth for a steady profit increase. Next slide, please. This is on Japan, food business, how to recover our profitability. In FY 2022, we were unable to absorb the impact of soaring raw materials and fuels with the decline in volume, therefore, GP margin declined. However, in FY 2023, soup and other products will increase their price, and GP margin will recover. Thanks to the enhanced marketing efforts, we'd like to drive volume.
The details will be mentioned about the establishment of Marketing Design Center or MDC. We'd like to make sure that we meet the demands of consumers through our marketing design going forward. Next slide, please. This shows a high level view of Japan and East Asia, especially with a focus on exports. We'd like to activate this, through this initiative, we'd like to activate the Japan business. Inbound tourism is back, and we see this as a business opportunity for us. In the post-pandemic world, we have made previous preparations. Hokkaido, as you can see or as you are aware, is well-rated by the East Asian consumers. Therefore, currently, already the exports to overseas markets and D2C are expanding rapidly overseas. We'd like to further accelerate these initiatives going forward. Next slide, please.
This shows overseas seasonings and foods, especially with a focus on frontier markets. On top of the five major countries, there are neighboring emerging, frontier markets whose sales are growing more rapidly than the major five countries, especially in Cambodia and Bangladesh, Laos and Singapore, Peru and Bolivia. Those are the frontier markets where volume are not only growing, but profits are generated as well. We'd like to create a template or standardized method in frontier markets for more expansion worldwide. This slide's an example. In Cambodia, a frontier market in ASEAN, and as an expansion from the neighboring Thailand, in 2009, we set up a local entity there. In 2014, this turned around the business to generate profit, and we already eliminated the cumulative deficits in that country.
Therefore, by 2030, we are planning for a rapid expansion of the business. As a result of expansion from the neighboring Bolivia, Peru, Bolivia achieved generating profit as well. In Bangladesh, there is a small, yet profitable business structure. This was achieved for the first time in FY 2022. Even though the scale may be small, yet, however, we are standardizing or achieving this asset light management style. There is a template emerging from frontier market, and this will be horizontally applied to other markets as well. Next is frozen foods, Asian category and the progress of it. In FY 2022, overseas gyoza, well, The gyoza actually generated 50% sales in Japan and 50% from overseas markets, which has been a book mating.
In addition to Japan and North America, which have been mainly driven by the home use products, Europe is rapidly growing. It started out handling food service products and then expanded into home use products. Overseas gyoza is priced highly, three times higher than those of Japan. Therefore, our profitability is growing. Gyoza production lines at a factory producing appetizers in France. Therefore, gyoza is generating more and more revenue. We'd like to deploy this French model to ASEAN markets so that we can actually replicate the success in other markets. This shows the recent status of frozen foods in North America, which has been a source of concern. Starting from the second half of 21, frozen foods faced profit decline.
We designated this business as a company to be closely monitored, whereby executive committee assessed the current situation on a monthly basis and decided the agile measures. By executing price hike and prioritizing core categories and visualizing TDC margin, we managed the business as one team together, and we are stemming the cycle of profit deterioration. In the four consecutive months, profits was achieved in the past. Even after FY 2023, with a focus on Asian as well as part of Mexican foods, we'd like to focus on those core categories and further realign or consolidate our production structure and then provide support from Japan-Japanese headquarters by an increased number of seconded employees. We'd like to further buttress the structure of the business and achieve growth strategy entailing profit increase.
At the several rounds of IR sessions, we receive your very poignant input. Thanks to your feedback, we were able to achieve this turnaround of business. For that we'd like to express our gratitude. Thank you very much. Regarding electronics materials, for the time being, the production adjustment was had to be made for ABF because of the supply chain issue with the semiconductor. Currently there is an issue of excess inventory. For the fourth quarter of 2022, we had to control our production in order to minimize or have a better control of inventory. With ChatGPT and high-performance computing, the growth potential remains the same. Therefore, we will shift to regrowth after the adjustment period.
To attain midterm ASV indicators, we'd like to drive a steady growth going forward. After the demand and supply adjustment, there's robust demand to be met. JPY 25 billion will be spent on CapEx, as we've indicated earlier. Next slide, please.
Biopharmaceutical service continues. There is the CDMO expanding business services for oligonucleotide drugs. This is steadily growing. Pipeline is growing too. Within the business briefing in August of last year, we made an explanation about our perspective towards FY 2030, and it will be upward revised. Next, please. 2030 ASV indicator should be achieved. We will have FY 2023 forecast to be solidly achieved. ROE and ROIC will show the effects of rebound from temporary profit recorded in the previous year. We plan to solidly achieve our ASV indicators by generating returns in line with the investment. The upward trend itself will not... Next is the ASV indicator for each segment as shown here. Next page, please. I'm sorry that the sound seems rather distorted, but this shows the ASV indicator of each of the segment. As you see. Next page, please.
This is about the assets and liabilities. In FY 2023, we will have a reduction of the inventory, and in the key areas for intangible and tangible asset will be proactively handled. We consider that the total asset is in line with the previous years, not just profit and reducing inventory. Sustainability and Business Model Transformation is where we will invest into. Net ED ratio is 30%-50%. Within that, the operating cash flow, if there are some excess, we will have treasury stocks proactively bought back. Next page, please. In FY 2023, temporarily, the operating cash flow declined, in FY 2023, we will generate cash in the high increase profit and inventory. We will have a JPY 170 billion range of cash to be generated. Next page, please. Strategic investment. FY 2023, especially the intangible assets will be reinforced.
Around 50% will be intangible asset investments. To tangible assets, whatever necessary, we will make investments too. Next page, please. This is the important management indicator trend. As you see, each indicator is steadily going upwards, and it is growing. From FY 2022- 2022, EPS has increased approximately five-fold. 2023, EPS three times towards which the profit generation, share buybacks, and appropriate global tax management will be progressed so that EPS increase will be gained. Next page, please. This shows the growth investment. It should be in excess of FY 2022. Significant and necessary investment and D ratio as necessary will be maintained. We will aggressively share buybacks by reducing cash and deposits. Next page, please. Shareholder returns. In FY 2022, 40% is the payout ratio and total shareholder return of at least 50% have been committed.
Accordingly, for the payout ratio, as of the end of the year, from the earlier forecast, we will increase the year-end dividend by JPY 6. Therefore, we plan to pay an annual dividend of JPY 68. Planned dividend is increased of JPY 16 from previous year. In FY 2022, we already bought back approximately 7.2 million shares valued at JPY 30 billion. We will also have the Normalized EPS-based dividend also to be maintained. JPY 6 annual dividend increase, meaning JPY 74 by paying dividends. As announced, we will buy back 12.5 million shares with a value of JPY 50 billion. Next, please. From here in, it's the initiative for enhancing the corporate. Next, please. What we would want to be.
We will unlock the power of AminoScience assets to resolve for food and health issues, contribute to well-being of all human beings, of society, planet with AminoScience. This is our philosophy. It is our philosophy. Corporate slogan, "Eat well, live well," will not be changed. Our philosophy has been progressing. It's wonderful. AGW simplify the e-evolution on those. Next, please. This shows the structural reform to shift to growth. As we mentioned up to now, there will be the value to be offered. Healthcare, food and wellness, ICT, and green are the four growth areas that existing businesses will be progressed and shifted into. FY 2021 had the business profit basis where, as you see, food to AminoScience business was two to one, so food was larger in portion. On the other hand, towards 2030, food will be grown.
More than that, AminoScience businesses will also be grown. One to one. It's not just food or AminoScience only businesses. High profitability and unique and strong structure is what we would like to materialize. The basis for that is AminoScience. AminoScience, this way we will be very much particular to, and there will be various diverse materials, functions, marketing services to be pursued securely.
When we announced the 2030 roadmap under the midterm ASV initiative in February, to align our purpose with the employees, we have held discussions or dialogues with them to disseminate our message. Now we'd like to show you a video clip about, for about two minutes. For me, very important because especially for-
I like it a lot actually. Sorry. The second question is related to the regional headquarters. This is on the intangible assets.
One of the very important to intangible asset is, human resource, right?
I have two questions. The first is related to the business.
Making product existing without, no plastic.
Thank you.
Thank you. Thank you.
Next slide, please. We are making efforts to make sure that our roadmap and message is penetrating the organization. Not only me, but also the executive members, including managers, are having direct dialogues with our employees on many occasions. In order for us to pursue ASV thoroughly, we are holding discussions with our employees with full earnest. This is part of the feedbacks given from our employees. We always make sure that we provide psychological safety in our discussions. Honest opinions are given from our employees through these discussions, providing a hint to further improve ourselves. We'd like to further promote our dialogues with our employees. Next slide, please. This shows the evolution of our governance structure. Starting from April, these are the five new implementations given starting from April. One is the management risk committee.
We'd like to enhance our defense activity in terms of this management risk. Second is the second term SAC, Sustainability Advisory Council, consisting of the following members. Number three is internal director, newly appointed. Value creation advisory member in the past one year and an expert of going through a lot of predicaments before, Saito was appointed as an internal director to assume the CXO or Chief Transformation Officer to drive the transformation. Number four, Professor Scott Davis, who has chaired this SAC, will be appointed as an outside director. Number five, Value Creation Advisory Board now welcomes Mr. Baba as a new member, who was the Executive Officer at Panasonic before. Based on U.S. Silicon Valley innovation as well as sustainability will be driven by him coming on board.
The profile is attached in the appendix for your perusal. Next slide, please. We established Marketing Design Center on April 1st. By reflecting consumers' opinions and collecting information, we'd like to create ideas to generate promising new progress, new products. By disseminating that message or internally share those product ideas, we'd like to create, keep generating new products as well as connect to local sales channels. This was the intent behind the setup of MDC. Members, there are 95 members of them. The other day we held the gathering discussion to unite these members as one team, and they brought together their bento boxes to deliver a message of co-creation and going beyond the past. We'd like to show you a video clip. In April 2023. We make our first new step.
By bringing together different perspectives. By bringing together different opinions. Let us go beyond our past. Let's talk more. Let's try more. Through trial and error. Let us create a bigger future. Let us co-create and go beyond our future. On April 1, 2023, Marketing Design Center was established with 95 colleagues. Thank you very much for the clip. We are working as one team to create promising new products by soliciting consumers' voices, and this is reflected to our R&D activities. In the past, who has been an architect in producing and delivering big hits, Mr. Okamoto, Executive Officer, is presiding over this initiative. With the Masai San, who heads the food business, together they are leading this initiative, so please have look forward to the outcomes. Next slide, please. This is our cash generation initiative. This is the structure of it.
Next slide, please. Regarding the cash flow, cash generation initiative, the performance is progressing or improving. However, we have many rooms to improve in terms of consistency and wastefulness. This is actually a treasure that we can cultivate into or tap into, so we'd like to create a leaner structure throughout. Out of this initiative. Supply chain management transformation is another initiative that is underway. Next slide, please. This is how to reduce or lower our break-even point. We have set up a procurement strategy department to make sure that procurement is conducted in a strategic manner. We set the goals to be lean in terms of our procurement as well. Next slide, please. This shows the HR assets.
We introduced the employee stock ownership and where we provide special incentives for those participating in the program. There is a total of 19 group companies who are participating in this employee stock ownership. 1 unit of stocks, 100 stocks will be provided to each one of the participants. Therefore, employees are shareholders in a sense. Together with the employees and consumers and customers, we'd like to actually meet their demands and then create a cycle of this corporate culture, corporate value. Before this adoption, there was only 3% who participated in the program. However, now the participation ratio stands beyond 60%, and the deadline is scheduled to be at the end of May.
We'd like to further solicit more participants in this program so that we together can enhance our corporate value. Next slide, please. This is my last slide. To encapsulate, in FY 2022, we shifted from the structure reform phase to a regrowth phase one year ahead of the schedule. In the four BMX areas, we'd like to continue enhancing our product portfolio as well as corporate portfolio. In FY 2023, which marks the initial step towards the 2030 roadmap, we'd like to make sure that necessary investments are made to realize a steady growth. Number three, although things are rapidly changing, but this is where our chances may emerge. We'd like to be more agile in terms of decision-making and achieve scale-ups to a bigger extent.
Through dialogues with employees and investors, we receive many insightful feedbacks. Among harsh opinions, we find opportunities rising. There are rooms of for improvement, of course. However, by listening to your feedbacks, honest opinions, today we'd like to solicit to your honest opinions and forthcoming opinions. With that, I'd like to conclude my presentation. Thank you very much.
Thank you very much, Mr. Fujie. From now on, we will entertain the questions. First of all, I would like to explain about the method to ask questions. If you have questions, within the screen there is the Raise Your Hand button. Please press it. From there, we will see who will be nominated as the person to ask questions. If you are nominated, please release your mute mode. It is also possible for overseas people to pose questions in English, it will be simultaneously interpreted. For one time question, please place up to two questions. We would appreciate your support. There are a lot of people who may want to ask questions, sometimes we may not be able to nominate everyone. Please be prepared for that beforehand. We would like to start the Q&A session.
If you have any questions, please press the Raise Your Hand button. The first question, Mita Securities, Mr. Saji, please.
Good morning. Thank you very much. I am submitted overseas sales in seasonings, food. There were information about that given. As we talked about it yesterday on page nine and 16, page 16 on the slide is the comment that I would like some elaborations on. I am especially interested in the overseas sales on page 16. It was 1% grown last year. This is 5%. The volume is 3% last year, and this is 1% this year. Unit prices had gone up 8% this year, it's 4%. Looking at this last year, it was quite good. Maybe it's a rebound from that, but it seems as though there are a lot of slowdowns. It seems to be the case.
Maybe some conservative perspective is taken, as explained yesterday. Within the numbers, I would like some backgrounds to be explained furthermore, please. That's the only question I have.
Thank you very much. I would like to give you the overview, and if there is something to supplement, Masai-san will respond. First of all, for overseas food, in the past two years, we had raised prices. Excuse me. Let me start from the beginning. In the past two years, overseas food cost inflation countermeasures were taken. For that, in each of the countries, there are a lot of price increases occurring. From this perspective, in FY 2023, as of the planning stage, the volume had been very much conservatively forecasted. That is one point. Having said that, growth should be materialized, so challenge should be securely worked on. Masaya-san, if there is anything to add, please. Yes.
I, Masaya, would like to give some supplements or information. As Mr. Fujii mentioned, in the future, further price increases should be proactively considered. In overseas particularly, up to now, a lot of price increases occurred. Going forward, a lot of product cost increases have been occurring. For price increases, we should look at the situation of the competitors so that we conduct it very carefully. It's not in line with the past activities. Therefore, we are looking rather conservatively at this in that sense. Another, especially in 2022, overseas, there were eating out segment also included in food. It was very much increasing, but the pace is rather settled now. Therefore, it may be looked at as conservative, but that is what we apply at this moment. Thank you very much.
I'm sure your expectation is to grow the overseas food business furthermore, and we will understand it as so and tackle it securely. Thank you very much for your question. Thank you. Just one point to confirm. For price increases, I think it has become more larger, and we have to look at the competitive situation too. As of now, the competitive environment area where we need to watch, or the product area, if they exist, then I would like to confirm on that, please. Obviously, in all areas, a lot of information should be secured, and it is being secured presently. Therefore, we would like to act very strongly globally for the seasonings in ASEAN, especially Indonesia, Vietnam, et cetera. The competitors are very strong in those areas too, so we need to securely look at the conditions there.
For frozen food in the U.S., we should look at the activity and trends properly. Is there anything to add on to this? None? Okay, thank you very much. Thank you.
Thank you very much. Next question. SMBC Nikko, Takagi-san. Nice to see you.
This is Takagi speaking. Nice to speak to you. I'd like to ask a question about the seasonings and foods. This year, this fiscal year, JPY 992.9 billion, a record high profit. You've been around, trading around JPY 80 billion in the past. Structure-wise, what improves you? What drove this significant improvement? Could you please elaborate on this matter? That is my first question. Second, under the current MTP, this will be a crux. Going forward next year, as well as, two years ahead of from now, 10% growth. In order for you to achieve this 10% growth, what are the remaining issues to be addressed?
If the raw materials costs, or prices are down, then you can improve your performance. You're assuming that they will remain high. What are the remaining issues to be addressed? Especially in Japan, I understand, but for overseas markets, are there any remaining issues to be tackled?
Thank you very much for the questions. Well, to address the first question, regarding the visualization of the current state of affairs and how we are taking measures.
We are becoming more capable and agile in executing those measures. There is room for improvement, of course, but we have been increasing our capacity of execution through these visualization, which enabled this agile implementation of measures. That is one thing. Going forward, for future growth, especially neighboring countries as well as frontier countries, their top line will grow significantly. They started to grow. In a few years' time, we project that the profitability or profits will grow. That is the template we have in mind, or that is the previous example that we have established. We are quite confident. Another is the integration of the foods and amino acids, or AminoScience. We are making various initiatives. Ajinomoto has both B2B as well as B2C, so we'd like to leverage this as strength.
To maximize this, we'd like to evolve ourselves further. Regarding the raw materials and fuel prices that remain very high, as I mentioned earlier, for the entire group, more than JPY 10 billion, there will be a net impact of JPY 10 billion. To offset that impact, JPY 150 billion is the projection or forecast. That includes price increase in Japan, but for overseas markets, we have significantly increased our prices. We'd like to remain, maintain our agility in terms of increasing price. Masayori-san, could you please expound on this matter?
This is Masayori speaking. I'd like to expound on the matter. As Fujii-san mentioned just now, in addition, the mainstay ASEAN categories, in the past there have been a sluggish market, including Vietnam. This year, it returned to steady growth, and that makes a significant contribution.
Neighboring countries, this is may overlap with Fujii-san's presentation, but Myanmar, Cambodia, and Laos, as well as Bangladesh, those neighboring countries or frontier markets are leading this robust growth. Another factor is that, within the ASEAN countries, those products produced in Malaysia, which are qualified as halal products, and we enhance the capability and exporting products to outside ASEAN markets, and that is, will be a positive factor. Thank you very much. In terms of integration of food and AminoScience, this is a repetitive item that always comes up in these IR presentations. What are the specific initiatives that you are currently driving? Is it creating any positive outcomes? I just wonder.
Also, regarding the examples in Vietnam, which returned to growth, but is it because of the improved outside or external environment, or was it due to internal initiatives that were conducted within Ajinomoto? Thank you very much for the question. This is Masayori speaking. Regarding Vietnam, I think both externally and internally. One is external environment, but also internally we made a steady basic measures of implementation with methods. Various initiatives are underway. It's not just about launching products that contain a lot of amino acids. B2B is our strength with AminoScience Division. Then Food as well as AminoScience business divisions are launching this joint product, joint projects so that both teams come together to create a momentum. There are specific projects going on.
In addition, I've been in charge of AminoScience before. There are keywords that have not been applied to foods, that is exports. If you are an AminoScience division and you may not have been thinking about exports, but from Japan to East Asian markets, there is a lot of exports. From Malaysia, halal products are exported elsewhere. Those are unprecedented because food items tend to address those local market needs. We may not have been necessarily tapped into this export potential, but there are significant room for improvement or room for growth in terms of exports going forward. Thank you very much. I have another question.
Just one more about the frozen business, frozen food business in U.S.. At last, your growth reform has been very much changing matters. Why in the fourth quarter such profit improvements has occurred? Can you give us some background information furthermore? In the future or this fiscal year, the fourth quarter had recovered significantly, but what about this quarter? It's rather conservatively looked at. What about this year? I would like to know more about that, including the market environment.
Yes. First we have done our best in order to succeed in this. Mr. Kawana, who has been very much involved in this, will be explaining. Thank you. For North America, there are three points. The first is by price increases.
The raw material prices may come up and then we raise the prices. There are differences by two to three months, but at last, the price increases has caught up, and that's one reason. The second reason is that the cost overall and the value chain where TBC Total Delivery Cost project is acted on so that costs overall can be driven down. There was COVID, therefore the factories lacked personnel and production was delayed, or the technical support from Japan had more or less stopped. Improvements didn't progress much, at last after COVID, there has been improvement in the country, and the first cost improvement fruit has been servicing. The third point, as mentioned previously, is about some advanced investments that occurred in gyoza or the frozen food sales and Mexican food with added value involve various investments.
As you know, FRB raised the rates, and they restrained the rates. There was some recession somewhat occurring, so that is one of the causes. That at last has started to mobilize and more utilization can be expected and profits can be expected too accordingly. For your last question, for FY third 2023, how we read it is that, I'm sorry to say, rather conservative. The reason is the raw materials in the U.S. at this moment has stabilized, but there are some portions that we cannot read fully. There is the Russian condition, and the inflation may accelerate furthermore, and reading that is what is happening here. Thank you very much. If that is the case, from this year on, the profit will be solidified if basically through cost raises, price increases will occur.
We don't know what will happen to the raw material prices. On the other hand, there may be new gyoza or the rice products that will be solidifying the business, and they will lead to more growth, and then profits will be further improved. Is that how it flows? It's rather complicated here. We acquired a certain company, we use it, and there are a lot of unprofitable businesses that it has too. Obviously, funds would cut them off continuously. In our case, gyoza and rice products that has high added value and also growing businesses are also existing, so these segments are utilized. For gyoza and rice products and Mexican, they will be growing. At the same time, the existing unprofitable businesses will be reduced, so are sales. Added value business sales will go up. Unprofitable, non-value-added processing divisions will be reduced.
It doesn't connect to the increases directly, but basically unprofitable areas go down and growing areas go up. We become more profitable in the end. Thank you very much. Thank you. Next question, please.
Yoshida-san from JP Morgan Securities. JP Morgan Securities, this is Yoshida speaking. I'd like to ask questions about non-food businesses. Regarding functional materials, according to your materials, SBC market is advancing. When you announced the ASV vision, KPIs were at 18%. It was further revised to or increased to 25% this time around. What is the factor behind this increase? Regarding biopharma service ingredients, in mid to long term, you revised upward your long-term forecast. What are the factors behind this revised upward revision? Regarding functional materials, previously you spoke with the media or media reported earlier that new production capacity may be examined, even though the location and timing were not determined.
When you announced the ASV initiative, last time, according to the CapEx, outside this, JPY 15 billion of CapEx, is it included in the CapEx budgeted under the ASV initiative or not?
Thank you very much for the questions. Let us first address the CAGR related question. When we made the announcement in November, we were talking about ABF shipment volume. That was announced as 18%. That was our initial projection. This time, HPC market is projected, so the table is a little bit different even though our message may be misleading. That speaks the difference. Maeda-san, could you please expound on the other items as well?
Thank you very much for the questions, Yoshida-san. This is Maeda speaking. I'd like to address your other questions as well. First of all, regarding the CAGR, 22%, this pertains to high performance computing. The high-end server networks applications, which is growing higher than expected. It is expected to grow at 22% in CAGR. As the left-hand side shows, compared to the substrates used for PCs, it uses ABFs 10 times greater than the amount used in PCs. Towards 2030, this will drive this very robust market growth. To address your second question regarding functional materials, in terms of JPY 25 billion, that is for the existing two factories for ABF. That is the production capacity increase for the existing facilities.
During the media interview that you mentioned, there is another project going forward, which is not included in the existing facility. Regarding this midterm biopharma projection on page 24. Regarding the nucleotide medicine in AjiPhaSe, we are driving growth in AjiPhaSe, and the customer base is growing as well, and our sales is growing steadily with the expansion of the pipeline. That is why we revised our sales projection upward. Thank you very much. Let me ask a follow-up question regarding biopharma service ingredients. Yesterday, during the media announcements, there were questions relating to this, and I have a follow-up question. This year, in by 2030 CAGR, compared to 2016, 9% is the expected CAGR. That is the calculation. This year's growth is projected to be around 8%.
I understand the CDMO business with growth, a CAGR of different %, but what is the expectation for this year's AminoScience? Apart from this AminoScience, what is the projection for this biopharma in ingredients for this particular year? Also by 2030 is when we made the announcement for ASV 2030 roadmap. On page 27, ASV, the same graph was indicated and it said 18%, but the number is different. Is there any factor behind the slight modification? May I answer that question? This is Maeda speaking. I'd like to address those follow-up questions. Regarding the biopharma service, this is within healthcare and others, which is reported. On page 24 here, oligonucleotide medicine, CDMO and other frontier advanced healthcare, this is highly profitable.
For this includes the low molecule CDMO as well as other items. Regarding this nucleotide CDMO, which is growing strongly, but biopharma amino acids as well as cell culture and the low molecule products, part of them, compared to 2021 and 2022, because of the pandemic, there were incremental orders given to those product lines. Starting from the second half of 2022 after the subside, after the pandemic was eased. We are actually driving the steady growth for a regular biomedicines. Compared to that, there's this oligonucleotide business that is driving, that is trending strongly. Compared to the previous year, 8% may seem unimpressive. I understand that. Because this, well, with the elimination of this pandemic surge, 8% is still high for oligonucleotide.
Regarding the HPC for that includes servers and high performance computing, therefore, we revised the forecast upward.
I understand. Thank you very much. For 8% this year, the revenue increase, amino acids as well as biopharma service, there's no significant difference. Is that right? Within biopharma service, nucleotide CDMO will be higher than 8%. Is my understanding correct?
Yes. For the entire business, they are making steady progress in each area. Thank you very much.
Thank you very much. Next question, please.
Daiwa Securities, Morita-san, please.
I'm Morita from Daiwa Securities. There are two questions for food. On page 18 and 19 of the material, there will be exports from Japan and frontier will be focused on. Once more, with this timing, these two scenarios seem to be emphasized. What are the reasons for that? I think from the past, we have already worked on this, as I understand. Why is it that now this becomes a more interesting topic? Is there some environmental change or is there some kind of preparation finalized within your company? What is the reason you have started to explain once more about this?
Thank you very much, Mr. Morita. For this, especially, we are having an enthusiast, Masaya-san, to elaborate on this. Masaya will explain about this. For exports, as mentioned, up till now, it's not that we didn't act on it at all.
Internally, B2C food business in each of the countries have respective customers to which, through the food culture, we were very much emphasizing our businesses. I say that in our dictionary, we didn't have the word exports, but we have started to consider about that. Having said that, another important factor is in export, as on the material, it may go past and the border into other countries. Recently, it is very much growing as business, especially as Ajinomoto AGF coffee-related products are securing the trends. Up till now, we had thought about this, but there wasn't a due role here. It was a good initiative for us to launch into the exports. For the frontier, obviously, it we had been working on it up till now.
As mentioned, Cambodia, Bangladesh, Myanmar, and Myanmar may have some political issues and Laos included, their growth are securely being visualized. In the future, five-star core areas with the economic growth may be stagnating somewhat. These companies still will be growing. With this timing, we really want to emphasize and focus into them. Does that answer the question? Thank you very much. For export, for the recent currency trends, are there some external factors or DX included? Is there something that leads to technical innovation and also, currency support materials? As you say, in Forex, there are some reasons to it. Cross-border EC is not necessarily just in foreign currency denomination. It may be in yen. Generally speaking, yen depreciation will be a tailwind for us. We would like to definitely target to this business. Thank you.
My second question is about food too. On page 18, or rather 16, I see especially in Japan, where last year cost inflation led to severities, and in the new year it was to be recovered. We said it was to be recovered, maybe it hasn't happened at all. Last year, JPY 9.9 billion profit reduction and new year is JPY 3.5 billion through price increases will be recovered. Prior to cost inflation, the profit level hasn't been reached to that level at all. For this, how will you regain the profitability of the past? You are to grow volume in food. Share seems to be coming down gradually. Once more, in the Japanese food business, how will you be winning as a company? Can you comment on this?
I would like to give the overview, and Masaya will give some additions, if necessary. Japan food, first of all, in FY 2021 and 2022, had significant eat in, or rather in FY 2021, eat in had grown and sales also had, including profits, increased significantly. In FY 2022, that was relaxed somewhat. As reported early on, there was profit reduction occurring. From the past, as I mentioned, FY 2019 levels should be recovered. Obviously, we set targets in order to work on it. Out of that, the forecast for the performance has been set as this. If we suddenly pursue too strongly, share may come down furthermore, or the share once more, and also sales may be dropping. Such competitive environments and also the economic environments considered, we really considered about our forecast as being this.
If there is anything to add on to this, Masaya-san, please. I, Masaya, would like to give some information additions. One point is, as mentioned today, the Marketing Design Center to be established, and that's the important point. It had been prepared for that and started up in April, from this year on, it becomes operational many times. Within today's documents, it has been mentioned that whereas up till now, we in marketing division was dispersed into various divisions. This has become one organization so that efficient marketing activities can be conducted. Keyword is the insight of the consumers to be caught and appropriate products to be created. That kind of Marketing Design Center establishment. The details will not be mentioned here, but that's one point.
Other is, as provided in the presentation overall, the supply chain should be reinforced, and we have been tackling this. It's not just about sales increases. Connecting to cost reduction, efficient activities have been continuing. As mentioned, for example, in exports in Japan or as sales and profit, it will be related to Japan. Put together, it's difficult as a business in Japan, but we really want to rejuvenate the Japan business. Operation of overseas is very successful, but why is it so difficult in Japan? Is there any thought you have? That will be mentioned from both of us. Previously, the Japanese food was very strong. Even now, frozen food is having strength. The reason is that we continue to challenge. It seems that profits are what we want to defend, and that's a strong mindset we may have.
The capability of challenge, namely the genes of Ajinomoto that existed, has become rather weakened. I used to be general manager of the Food Division. I have a responsibility for that, I feel. Out of that, to Masaya-san, some challenge in the organizational culture and to be voluntary to stand in the batter box in order to not only stand there, but have a high rate of hits, is where we need to polish ourselves into. That kind of mission was requested of Mr. Masaya, and he is responding to that. The situation will be expanded by Masaya-san. Thank you very much. I also love to look at the history of the company in that sense. In the past 10 years or so, I looked at the history and I felt that, as a matter of fact, Japan population is declining and Japan has severities.
About 10 years ago, the management at that time had already forecasted that. At that time, we were to reinforce the overseas market. Within the process, I consider now that in overseas, if you focus there, we hadn't left behind Japan, but overall, Japan market had been left behind. I declare that we have to invigorate Japan market, therefore we have various preparations ongoing. It's not just overseas markets. We want to be called a strong player in the Japan market too. Please look forward to that. We have expectations of that. Thank you very much.
Thank you very much for the questions. Next is Tsunoyama from Mitsubishi UFJ Morgan Stanley.
Thank you very much for this opportunity. This is Tsunoyama speaking. Nice to speak to you all. I'd like to raise two questions regarding ABF and the for umami seasonings for processed foods. My question pertaining to ABF, in terms of risk management for the demand and supply adjustment for semiconductors, I'd like to know the basic principle to navigate this. During the January to March, you adjusted the production level of ABF. What are the factors behind the production adjustment? Also 16% for this fiscal year or revenue increase projection for this the FY 2023. If things do not fare well, what are the countermeasures that you have in mind?
This business is very aggressive in terms of the budget and you remain very conservative for other business. What is the balance between ABF and other businesses? How are you going to tread with ABF?
I'd like to provide you an up overview. We remain very conservative, but in some other parts we remain very aggressive. Each local entity has the same attitude. We would like to manage the situation, manage the balance of the two features, and Maeda-san can give you the details.
Yes. Thank you very much for the question, Tsunoyama-san. In terms of risk management and production adjustment, whether PCs or servers, ABF is used in many applications. Speaking of PCs, I think early on last year, for the entire industry, the demand has been sluggish. In the recent months, servers applications needed to be adjusted. That trend has started to emerge from this new year, this fiscal year, or this calendar year, that is. We are closely monitoring the situation. For server applications, many analysts as well as industry say that things will recover in a short term. According to my experience, the production tends to rebound quite quickly even after a period of adjustment. Once there is those products, the demand surge, then we need to make sure that we have enough production in place.
We, rather than focusing on short-term production, adjustment, we need to make sure that we have plenty of production capacity leeway so that we can address this possible hike, certain hike of production demands. Then from 2026 and 2028, we need to make catch up with the advancement of semiconductors to uphold our 90% or more ABF shares in the market. That is the forecast, and we remain very vigilant to defend this high market share. Did I answer your question?
Thank you very much. Rather than focusing on short-term goals, I understand that, but the 16% forecast, are there any factors? Is it challenging, this 16% forecast? What is the nuance behind this 16% projection?
We collected various sources of information, including magazines and industry journals. I'm sure everyone is paying attention to both positive news and positive opinions and negative opinions in the industry. We need to avoid out of stock situation in either way to meet the demands of the market. Going forward, either way, when things thread favorably or disfavorably, ABF has a significant social contribution to fulfill. The key is the server applications or high-performance computing applications. The film is required in significant volume, and in what quantity and what timing the demands will recover for this particular applications. That include or reflected in this 16% projection, or could sway the performance significantly going forward. At this stage, I cannot actually confidently comment on the future outlook, but we are closely monitoring the situation going forward.
Thank you very much. I have another question. Regarding the MSG for processed foods, this is generating a stable source of revenue, and the food service business was in the scope of asset-light approach in the past. However, in terms of generating a stable revenue currently, is it changing your view on MSG for processed food? Or are you thinking about the possibility of reducing assets for MSG for processed foods? What is the positioning of MSG for processed foods under the current situation?
Thank you very much. I'd like to provide an overview. The internal sales ratio is increasing, and the extra one or extra ones are actually sold externally. The internal sales is growing, and Masai can provide you some more details. This is Masai speaking. I'd like to expound on the matter. Yes, your point is poignant. A few years ago, 71% was the indicator, and we wanted to raise this to 80%. That was the announcement we made externally, and we are trending towards that 80% right now. In terms of pro- capacity increase, we haven't actually implemented anything, but for internal sales alone, there is a robust demand for internal sales. Extra capacity, we do not actually use that extra capacity for external sales.
In that way, we have a very robust production capacity. After the invasion of Ukraine, the supply tended to plunge or said it to be in a shortage, but materials are our strength, and we've been able to exert this, our strength by having this materials business. Going forward, MSG for processed foods, MSG is not just a commodity, but it is a value-added item that has been reviewed by the markets. Going forward, we'd like to drive a strong growth for MSG for processed food. Thank you very much.
Asset light will continuously be considering the various asset efficiency aspects. If it's inefficient, although we don't see at this moment, if it exaggerates, we'll be setting it correctly. We may transfer it to other areas. It will be visualized on a planned basis. To add on to that, for MSG expansion, value may go up, and internalization may go up too. Is there something else within the market in your business where your value may be enhanced furthermore? Especially Morishima-san is here, sustainability promotion, where in the world there is Scope three interest becoming stronger. Our MSG production method has a lot of Scope three environmentally friendly initiatives incorporated. On a total basis within the supply chain, there is the reliability and trust that is increased. Ajinomoto is offering quality and also at proper delivery dates.
In that sense, corporate value has been enhanced furthermore. Morishima-san may have something to add on to this. Thank you very much. As Mr. Fujii mentioned, asset is our core business, but from the past, we were considering about the burden to the environment. For many years, environmentally friendly production method and various technology developments had been tackled. We are having that now to the B2B customers. That value should be communicated properly, and it should be assessed by our customers accordingly. That is enabled now, and it will be reinforced in the future. That's one point. Another to add on to that is MSG presently having the nutrition initiatives, so there will be reduction of salt in the Umami Seasonings.
If we can successfully reduce the salt content to the global companies, it is becoming more and more valuable, and that is enhancing our value. That's another factor. Thank you very much.
Yes, thank you very much for your answer.
Thank you. We have 10 minutes until the closing time, so we would like to have just two people to answer. Morgan Stanley MUFG Securities. Miyake-san, please.
Thank you very much. I am Miyake from Morgan Stanley. I consider the sales, seasoning, and also food, and also the flavoring products. Marketing and also the production efficiency should be reinforced. It's very important, I understand that. It is related to the MTP, and also please include the forecast for 2023. In sales in Japan in 2022 was 4% reduced, and this year is 3% positive that you book for this year.
I would like to know details about that once more. Last year there was a COVID impact more or less settled down. We thought so, but it hadn't. That impact was most heavy. Is that the case? Is it through price increases and in within the inflationary environment, volume became rather weaker? What do you think about it? Can you revisit what happen ed last year? The 3% increase for this year for the eat-in market, what is your perspective? With this 3% positive, is it unique to your company or is there anything driving this? That's about the volume-related question.
Masaya-san will be explaining about this.
Thank you very much, Ms. Miyake, for your questions. I would like to explain about this.
As you say, recently, last year comparisons becoming this leading to this and that may be an example. It's rather difficult to capture what is happening towards the year of FY 2022. Whereas FY 2021 overall had COVID first half problems, where there were a lot of increases of eat-in demands, especially in Japan, where the ratio became in 2022 when COVID became more improved, then eat-in ratio came down. It's not just unique to Ajinomoto, so we cannot just explain it as so. On the other hand, price increases continued. Private brands overall at lower prices is where people purchase more and more. Therefore, overall, the domestic B2C food had difficulties overall, if you compare especially against the previous year.
I can say that this is not just the problem of Ajinomoto, but overall price increases occurred, which means in sales against the previous year is even, but the volumes came down and unit price comes up. This trend continued, that was in 2022. That's the overall trend for the year. For FY 2023, we have to work very much hard on this. In that sense, if we compare against the previous year, from 2021-20 22, it came down, and that has to be increased for this year. Eat-in ratio won't change so much. As mentioned, we cannot say if we have not succeeded in it, but we will take various initiatives and countermeasures in order to further grow. Does that answer your question?
Yes. Thank you very much.
The present status to be recovered from this year, I think there are more accelerations and increases occurring. Out of that, your company within the household eat-in ratio enhancing is the thought you have. What is the background to that? For eat-in ratio, as I mentioned, it was against FY 2021, when in 2022 it came down. Going forward, there will be more of the people exchange, people will eat outside furthermore. There will be difficulties, but in volume, we definitely want to grow furthermore. Eat-in ratio may come down furthermore. That is an inherent risk, as you say. You have various products. You will secure shares through your diverse products. I cannot say today, but Marketing Design Center will be used so that new products will be continuously planned for. Around July, the next product announcement meeting will be held.
I hope that you will be able to see what you expect. Thank you very much. Is about the cost. Last year, domestic food against the previous year had JPY 2.1 billion of the cost restrainment, and it became other costs. This year is JPY 5.5 billion increase. Marketing fee. Have a mixture, I suppose. Last year and this year compared, in cost comparisons, what are the images that you have? In the midterm plan, the President talked about the Japanese food having other areas to look at it so that it becomes more efficient, and Marketing Design Center and procurement will be working on it. How is it go part within this year's budget? I would like to know about that too. I would like to respond to that question.
The correct figures, accurate figures cannot be disclosed. For marketing fees, this year, Marketing Design Center was created. Therefore, budget related to that will be further utilized. Marketing will be reinforced furthermore, and the activities are recovering. For example, business trip fees are increasing obviously compared to FY 2020 Et cetera. There are more increases. This will be activity budget, which is an official budget thing we have prepared for. Thank you very much. That's all from me.
Thank you very much for the questions. We'd like to entertain one last question. Fujiwara-san from Nomura Securities.
Nice to speak to you. This is Fujiwara speaking from Nomura Securities. This is my opportunity, the last question. I'd like to ask several questions. First, just a simple question. Regarding biopharma, going forward, you would like to grow your nucleotide medicine business. I understand that, and that has been a consistent message previously. AJICAP and CORYNEX, next growth drivers, we have high hopes for those new products, new generation of technology. Could you please enhance the level of understanding AJICAP and CORYNEX? What is your competitive advantages? Also, at what timing, to what extent are they likely to make contributions to your performance?
Thank you very much. I'd like to nominate... Well, regarding AJICAP, the one-off investments need to be made to adopt this technology, and we started to generate positive outcomes. I'd like to nominate Maeda-san as well as Shiragami-san to provide some technical backgrounds. Could you please follow up on this question?
This is Maeda speaking. Regarding AJICAP, as we previously announced, this is an Antibody-Drug Conjugate to actually attack or deliver drugs to cancer cells, and this is an epoch-making technology. This is patented. It's strongly patented, and we have a proprietary technology associated with this. At what timing, we made a press release for some of the technology, but this is a very large-scale license that has been concluded. Two of them, two licensing agreements have been concluded. Utilizing this technology, we are partnering with the industry players to utilize this technology. It started to contribute to our performance, and we have high hopes for it. Regarding CORYNEX, this is a protein product. Unlike AjiTech, AjiPhaSe or AJICAP, this doesn't contribute to a specific medicine.
By applying this technology, we are working on applications in cutting-edge healthcare, and it's taking time. However, we have a very positive response regarding CORYNEX. In terms of monetization, it will take much longer than AJICAP. In June, when we have a business briefing session scheduled for June, I hope to provide you some more details at the next rounds of business briefing in June. Did I answer your question? Yes. I think that will suffice. My next, second question. Previously it was asked regarding seasonings and foods and frozen foods in Japan, we'd like to see more sales generated in these segments. With the establishment of a Marketing Design Center, we have high hopes for it.
Based on the consumers' voices, your amino acid-related know-how and technology, in terms of it is actually rather driven by nutrition perspectives. Under a global brand of Ajinomoto, there is nothing that can beat your previous corporate brand. Is there any emotional brand equity that you can appeal to consumers in your marketing activities? That is my honest opinion. Going forward, in terms of your brand strategy and marketing strategy going forward, rather than focusing on product function, but is there any emotional aspect you can actually resonate with consumers? Is this a new perspective that you are about to deploy?
Yes, we are.
Masaya-san, you have, like, been quite passionate about this, so would you like to comment on this matter?
Well, our purpose is to make contribution to the well-being of human society and the Earth. In terms of well-being promotion, we need to make significant contribution.
That is a brand image that we'd like to enhance amongst the consumers. In food businesses, you are making various efforts to do so. Could you please comment? First of all, in terms of resonating with the emotional side, Marketing Design Center will focus on this particular perspective. We are committed, fully committed to this, do this. Whether it's a new product or existing products, we need to rebrand our products. That is a key word. In the past, the same products, no matter how you change the container, that can drastically change how those products will be perceived. In July, we hope to provide some more details, and I cannot disclose for the scope of this briefing any further than that. Amino acids is perceived to be nutrition.
As Fujii-san rightly mentioned, it is more than just nutrition. I used to be in charge of amino acids, and now I'm heading this Food Products Division. In the past, when we look at amino acids, it is perceived as a simple source of nutrition, but that's not the case. We've been consistently saying that it is a deliciousness technology amino acids can exert, and that is fortified by amino acids. We are focusing on this deliciousness approach. R&D center tends to focus on deliciousness technology, but the marketing side needs to change their mindset to actually leverage this deliciousness technology. What is this about deliciousness technology? It appeals to the taste, including umami, kokumi, enabled by amino acids. Also for the other senses, AminoScience is the basis for flavors.
We are not a flavor manufacturer, but we excel in flavor production. We have an abundance of flavor technologies that are used for amino acids and foods business. Also for the texture side, amino acids are used to improve textures of our food products. Amino acids can actually contribute to the function and as well, the deliciousness, not just nutrition supplements. Amino acids should be better leveraged in that perspective. Thank you. I hope that provides you an answer. I truly look forward to this July briefings on, especially on the new production lineup. Thank you very much.
Thank you very much. With that, QA session will be concluded. Lastly, a word of from Mr. Fujii, please.
Thank you very much for participating today in spite of your busy schedule. As explained, in FY 2022, there was a very successful result. For FY 2023, overall, the perspective is not so bad. Today, as questions have been given and various comments were received, it seems that are rather difficult to understand still remaining, and maybe that is a challenge to us. Especially in frozen food in Northern America, there were various comments and questions and comments given, and it really convinced us. There were a lot of criticisms and also proactive comments too. With that, including the site, as management, we will be one team in order to tackle the various challenges. That is very much unique to Ajinomoto. Therefore, the comments and questions given to us today will be once more within the management revisited, each and every one.
How can we take actions to resolve various problems, and how can we gain furthermore trust from everyone will be what we will tackle securely. We appreciate your expectation and also your various interests to us. Thank you very much for your attendance today.
With that, today's financial results briefing session has been concluded. Thank you very much for your participation, and goodbye. Thank you.