Ladies and gentlemen, good morning. Thank you very much for taking time out of your busy schedule to attend our briefing, financial result briefing for FY 2021. My name is Kaji from the IR group. First, let me introduce our attendees. Representative Executive Officer, President, and CEO, Fujie-san. Representative Executive Officer and Executive Vice President, CIO, Shiragami-san. Executive Officer and Senior Vice President, General Manager, Global Corporate, Sasaki-san. Executive Officer and Vice President, General Manager, AminoScience, Maeda-san. Executive Officer and Vice President, Deputy General Manager, Food Products Division, Okamoto-san. Executive Officer and Vice President, Supervision for Frozen Food, Kawahara-san. Executive Officer and Vice President in charge of Finance and Investor, Nakano-san. Global Financial Manager, Mizutani-san. Those are the eight attendees attending the session. The overall briefing session will be 90 minutes. Today's presentations are posted online on the IR website. Please have a look.
Also, this session is recorded, and the video, including the QA, will be posted on the IR website. Please be advised. Now we'd like to begin. Forecast for FY 2022 and initiatives for enhancing corporate value. We'd like to ask our CEO, Fujie-san, to present the material. Fujie-san, floor is yours.
Ladies and gentlemen, good morning. Today, despite your busy schedule, thank you very much for joining us today on the thirty-first of January since the press conference of becoming the CEO. I'm very happy to have this dialogue with you since then. Today, we have the results announcement as well as the forecast for fiscal 2022. We would like to also show you the direction where the new management team is heading for. Those are the things that I would be explaining today. Sorry for the noise. I will spend about 40 minutes, but I would like to have a both way dialogue with you all. I'd like to have your cooperation and participation. Next, please. What I want to talk today. Next, please.
In these recent days, the environment surrounding our business is extremely challenging. Fiscal 2021, we have increased profits and expecting increase in profit in fiscal 2022 as well, and we want to do the sustainable growth. Second, of course, short-term measures are very important, but the medium to long-term structural reform and growth strategy execution will also be very important and continuously done. By taking this opportunity of this challenge, we want to make a resilient business foundation. We are thinking about up to the level of physical remodeling. That's what we're talking about amongst our management team. The new administration began from April 1 in order to achieve the vision, purpose by passion, by operational excellence or OE, and speed up by scale up.
Through those efforts, we want to enhance our corporate value from medium- to long-term perspective. Next, please. First is about the important financial results. Fiscal 2021, we have enjoyed increase in sales and profit. Sales was JPY 1,149.3 billion. After we used IFRS in 2016, we've recorded the highest. Business profit setting a record high for the third year in a row. For fiscal 2022, although it's difficult, we want to improve and upgrade the price, and also increasing the volume. We want to increase both sales and profit. ROIC was 7.9% in fiscal 2021, but we will definitely achieve 8% in fiscal 2022.
Operating cash flow was 145.5 billion in fiscal 2021. We have been exceeding the level of what we have announced already. For the dividend, for the interim forecast, it was JPY 48 per share, but we've decided JPY 52 for fiscal 2021. For fiscal 2022, we're expecting JPY 58 per share. Next, please. This is summary for 2021. As was mentioned to you earlier, business profit for the three consecutive years, we've recorded the highest level. As for sales, for the home use, especially overseas, was very favorable. For restaurants and industry use, partially recovered. Biopharma service ingredients, functional materials were the driver for all, and we were able to increase the sales compared to the previous term.
It was a 107.3% increase. Excluding that of the translation, it was 107.3%. It was 103.9%. Next is about the business profit. As you can see, the changes we are seeing the raw material and fuel cost increase. It is about JPY 27 billion. In some forms, we were able to make a reduction of JPY 17 billion, but it was minus JPY 10 billion for the raw material. Having various countermeasures and actions, we were able to make this sales and business profit. Next page, please. Seasonings and foods.
The domestic seasonings, especially soup and nutritionals and umami for the processing, they were a negative on the profit. Frozen food, it was a negative of JPY 29 billion. Healthcare was 170, sorry, JPY 17 billion of surplus. Next page please. Here are the things that would influence the performance. In 2011, the material cost was highest, but now it is exceeding that level. Ukraine situation is unclear, but instantly, we had launched a team to address the event. Wheat and the other things, the raw material directly being hit by Russia and Ukraine situation, including also the crude oil price and commodity price. We have included all the cost increase and visualized the impact to each of the items.
Earlier price hike, alternative, consideration. These are the countermeasures, especially every month, for the raw material and energy costs. We are compiling all the information to this team, and we'll be reflecting to results. We're trying to come up with countermeasures as quickly as possible. These are the price changes of the raw materials. Of course, for the seasonings, we need to reduce the cost, and we have been revising the cost to counteract. Especially for the foods, in order to reflect these efforts to our performances, we will have a certain time lag. At a certain one-time level, BP ratio would go down. The absolute value of the business profit, we are able to maintain a certain level.
By addressing these issues continuously, I think we will be able to recover and increase the profits. Next page, please. As for the overseas seasonings volume, well, we will be making a price hike. There may be some concern that we may be able to not have increased volume. In the past 10 years, we have been increasing the prices, but volume have been also increasing. I, myself, from my experience in China, Philippines, and Brazil, what I can say is that our capability to revise the prices have been improving steadily. From the future, we would like to improve this capability more in the future. Next is about the costs, and how are we going to counteract.
As you can see, we will have Ukraine's event impact of the raw material fuel price hike, but it's showing up from fourth quarter of fiscal 2021. Rapid action have been taken, and we've been recovering, but that could not be all offset in the fiscal 2021. We want to show this effect definitely from the second half of fiscal 2022. Next, please. This is the forecast for fiscal 2022. Throughout the year, we're expecting sales and profit increase. As you can see, with appropriate measures, we want to achieve organic growth. We want to strengthen the business foundation and lead to sustainable growth. For net sales, we are expecting JPY 1.31 trillion. This is 114% increase.
For the unit price increase is 6%, volume increase 4%, other things included. For the business profit, JPY 124 billion, 102% increase. Next page, please.
This is the factors behind the changes in PL. Regarding fiscal 2022, the cost increase of fuels and raw materials is amounted to JPY 40 billion. Of that, 35 billion will be offset by implementing measures at this point in time. However, there are some extra ten billion that is not incorporated into this forecast. Foreign Forex is negative 90 billion. One hundred and twenty-four billion is our clear target that we are committed to attain. Regarding the Forex, this is a very conservative assumption at 120 yen to the dollar. Next slide, please. This is the disclosed by segment forecast for each business segment. Regarding seasonings and food, especially in Japan, a profit decline is projected.
For frozen food, in overseas profit increase or structural reform effect will increase the profit. Under healthcare, thanks to booming demands, we expect a profit increase. Next slide, please. These are the key KPIs for our consolidated results for the entire group. In order to meet the MCP targets, we are making steady progress. Please look at the 2022 forecast. ROIC 8%, organic growth 11%, and sales ratio of 71% and PI of 8%. Those are the clear targets that we committed to achieve, and we'd like to ensure this. We are implementing major projects to attain these targets. Let's look at the projection by segment for your perusal. Next slide, please. This is the progress of our structural reform. As you can see, our progress has been made according to the plan.
For fiscal 2022, ROIC. In order to attain the ROIC target of 2025, asset light policy will be partly brought forward or added in order to further our effort of structural reform. Next slide, please. This shows the frozen food structural reform progress. During the executive committee, this has been the priority of our executive committee. ROIC 5% in 2025 must be met. Therefore, we are implementing measures that are listed here accordingly. Under the 2021 review, we suffered a significant predicament. However, in North America, we already announced a price hike that is reflected in the first quarter. We are addressing the further fuel and raw material cost increase accordingly. The diversion of assets are being accelerated.
In Japan, rice product factory is being aligned and OEM outsourcing of non-core domain will be advancing. To attain ROIC 5%, there are three points. One is Asian product, which is our core domain. We need to focus further on this particular core domain. For the non-core part, we will downsize or realign to accelerate the diversion of asset into Asian products. Number three, to ensure growth in the core domain that is highly profitable to supplant or offset the reduction in the non-core business. This is our effort towards organic growth in seasonings and food. Regarding the existing business, while adding value, we will attain both volume growth as well as price increase. To meet the unmet needs, we would like to create new businesses in the adjacent fields in each country.
By doing so, we'd like to expand our health and nutrition value provision business to enhance the level of growth for the entire business. Next slide, please. This is how the business model transformation is driving growth. Let's cite an example of electronics materials. As you can see, there is robust demand that is likely to continue. From 2022 to 2025, this is a shipment CAGR on the left. 15% used to be our forecast, but now it's projected to be 18%, which is an upward revision. So the high growth is likely to continue. In order to meet this robust demand, in 2022, we will spend JPY 1 billion, and after 2023, we will spend JPY 70 billion to ramp up the production in order to ensure we can address the robust demand. Next slide, please.
This is whether the electronics business is likely to continue growing, especially for the data center servers and network. ABF growth is being contributed from those two elements. Added value and higher performance ABF will see greater demand going forward. Therefore, we'd like to further drive in this particular area. Next is Biopharma Service. In the past few years, electronics materials business has been the central growth driver for Ajinomoto. Now we see that Biopharma Service is a new growth driver. Going forward, in anticipation of the future growth, we made additional necessary R&D investments so that Biopharma Service can further accelerate its growth. Next slide, please.
This is a particular area we are focusing on, oligonucleotide market, whose size is shown on the upper right panel, which is expected to grow significantly in the next few years. Our proprietary liquid phase synthetic method will enable us to mass produce this product. This is the strength we'd like to cultivate in order to grow our model, business model. Next slide, please.
Next is about the assets and liabilities. We have been rationalizing the assets for fiscal 2021. Because of the currency translation, the total asset has increased. Fiscal 2021 was about JPY 65 billion effect. If we exclude that, we have reduced JPY 40 billion worth. We will be properly managing them in the future as well. Operating cash flow in fiscal 2021 resulted in JPY 145.5 billion. We have more and more cash generation capability. Through CCC improvement, we would like to further generate cash. Next, please. As you can see, strategic investment. As you can see, for tangible assets, we would be timely investing in a growth area like the electronics material business.
For R&D, marketing, DX, business model development, HR, such intangible assets, we are shifting our investment to those areas strategically, trying to lead to the corporate growth. As you can see, in the past, the tangible asset used to be 60%-70%, but non-tangibles were 30%. In future, we would like to make this 50/50. More and more investment will be made into the intangible assets, for the coming years. Next, please. The important management indicators. Through steady growth of business profits, all the important management indicators are improving for fiscal 2022. Because of the deterioration, there will be limited portion, but, onwards from fiscal 2023, we would be improving this. Next page is how do we think about the shareholders' return and growth investment.
We have shifted our investment from tangible to intangible assets, and we would be exceeding the operating cash flow JPY 400 billion. Next is about the shareholder returns. Fiscal 2021, we've repurchased and retired JPY 40 billion worth of treasury shares. You're all aware of this. For dividends, we've increased our dividend from JPY 24 per share projected for the second half to JPY 28 per share, increasing the dividend for the year to JPY 52 per share. In fiscal 2022, we plan to raise this to JPY 58 per share. We hope to continuously expand the dividends and the shareholder returns in a stable manner, especially 2022. The total return will be more than 50%, and the single year payout ratio will be 40%.
We would like to do good shareholder returns. This is going to be part two of my presentation. Management policy of our new management team and initiatives for enhancing corporate value. I'd like to explain to you the important points here. Next page, please. Ajinomoto Group vision, we have not changed this. We would like to steadily realize this so that we want to realize this. Next page, please. At the announcement in January thirty-first to all the consumers around the world, we want to provide happiness and we want to develop the company in such a way. This page explains about that. Among that, you can see intangible assets. We want to enrich this.
The corporate culture, which would enrich intangible assets, we want to improve this, and we want to make this. From the soil that we get nutrition, we see the roots. This is regarded as intangible assets. We want to enrich this. The financial assets, the value of the company needs to be enhanced through this. Next page, please. This is the former CEO, Mr. Nishii's organization and what we will be succeeding from him. One is ASV management, and the second is the purpose, passion, and OI. Purpose means that through the usage of amino acid, we want to solve the issues of health and food issues. This is the purpose. We want to have this purpose and have passion of our employees to support this.
In addition to this purpose and passion, OE or sophistication, meaning that employees and partners and stakeholders with a certain level of tension would polish and sophisticate their strengths. What we want to evolve is speed up and scale up. These are the things that we want to evolve more. For speed up, I'd like to explain to you we want to change the culture and appropriate top-down and bottom-up, stop and reduce to earnestly tackle what we want to do. For scale up, Ajinomoto Group, we have a standardization of successes inside and outside our company, and we want to create a next-generation business through transformation. Next page, please. Towards the speed up and scale up under this new management team, we have formulated a specific action plan.
By 100-day plan, we mean that in this new management team from the first of April where we started 100 days, the first 100 days, what we will be specifically doing. There are three things that we will be doing. One is that within this 100 days, we want to show the result. Second, make a specific clear roadmap. Thirdly, we want to come up with challenges and see the troubles that we need to tackle. By 2030, we have a vision. In order to realize that vision, we want to show you the direction, strategic direction. Where are we heading for? How are we going to do it? We want to show this in this plan, and there are seven themes underneath.
On the left-hand side, this is directly related to ASV outcomes, and the functional themes that accelerate and support the pursuit of ASV. In 100-day plan, already 40 days have passed. In order to speed up the management itself, we have changed the gears definitely. I myself feeling that way. Next page, please.
Next slide, please. This is the strategy for investment. As you can see, this strategy is going to buttress our sustainable growth. We need to ensure this is executed fully to secure, as well as drive growth and to pave the way for our growth in 2055, after 2050. There are six core business areas where we'd like to concentrate our investment and need to ensure that they execute this plan. Within these six core areas, we need to narrow down on which area we particularly focus on. Also for each area, each of the six, we need to define the concentration of investment later. Next slide, please. This is our corporate called value enhancement.
As a way, as an initiative to enhance corporate value to the value creation or value enhancement for all stakeholders that need to be synchronized in lockstep. We'd like to establish a system called Value Creation Advisory Board in order to further enhance our corporate value. This is an advisory board serving the CEO and CIO. The members will be invited from external professionals. We've already selected three external personnel. Governance as well as corporate brand and corporate value, those are the key materials. Up until now, the executive committee members used to focus on the core, discuss this core value enhancement, corporate value enhancement. But now we'd like to incorporate these external perspectives in order to further evolve our management. The discussion is already taking place. Next slide, please.
This is a topic of speed up or increasing speed. After the shareholder meeting last year, the corporate organization changed. Structure was changed, and we became a company with nomination committee. The overall direction is decided by the executive committee, and the BOD provides this comprehensive supervision. Much was delegated from the BOD to the executive committee members. By exerting appropriate leadership and bottom-up approach, where Ajinomoto excels, we need to combine the two styles in further management. Next slide, please. Regarding the scale up, how are we going to expand our scale? There are three layers for us to consider. First is the overall, well, six core businesses. We need to further implement concentration and selection to strengthen our organic growth in these core six areas. Second is through DX.
By integrating food and amino science, we need to drive growth. Regarding the third is picture of the future, and then backcast from there to define four innovation areas, healthcare, food and wellness, ICT, and green. Those are the four innovation areas identified so far as a next-generation business for us to pave the way for future growth. Those are the three layers we'd like to consider. Next slide, please. As I said earlier, those are the four innovation domains, and these are the concrete measures that are implemented already. Next slide, please. Regarding intangible assets, we will create a 50/50 ratio between intangible and tangible, especially on the HR value or HR assets. We would like to implement a management to enhance HR value.
Diverse talent, as well as their expertise, will be harnessed through the initiative of inclusion in order to drive further competition. Now management that raises the HR not only a commitment will do. Therefore, we need to visualize this through a major case KPI. One is to own ASV. In line with the process visualization, as it is listed on the left, we need to visualize the entire process to measure the progress of ASV attainment through engagement survey. Next slide, please. Next, as the brand value as intangible asset. Fortunately, our purpose branding was rated highly, and our brand value has grown significantly. According to Interbrand Best Brands 2022, Ajinomoto was selected. By source 2020, we increased our brand value by 30% in 2021, and we'd like to further grow our brand value. Next is the nutrition initiatives.
At international forums in 2021, we disseminated the information about healthy food importance of healthy food that is also sustainable. International agencies as well as governments gave us full recognition on Ajinomoto's activities. Next, on environment. Ajinomoto Group aims to realize carbon neutral by 2050. We submitted a commitment letter in March 2022. Then within 2 years we'd like to set a clear goal. We are committed to halving GHG by 2030. For that, for Scope 1 and 2, we are likely to achieve that target. Next is the MSG ecosystem construction in Thailand. This is initiative that we will be implementing as well for you to have a look later. This is the summary chart. This is a message as CEO. As is listed here, we would like to earnestly pursue ASV under the new organization and the new team.
ASV management and purpose and passion times OE was inherited from the former CEO, and we would like to further increase both speed and scale. To this end, through the 100-day plan, we'd like to change gears and jumpstart. The entire company will work together to realize solving food and health problems by unleashing the power of amino acids, and provide the essence of happiness to consumers all around the world. Through that, we'd like to realize continuous and exponential enhancement of corporate value. To that end, we are going to have an open discussion with stakeholders, and we truly look forward to continue that dialogue with you. There may be inadequacies with my management. However, I'd like to dedicate my entire self to this effort. For that, I'd like to solicit your continued support.
Through our business growth, we'd like to keep delivering the essence of happiness to all, you all. We'd like to seek your continued support. Thank you very much.
Thank you very much, Mr. Fujie. We would like to move on to the Q&A session. About how you can make the questions, if you would like to ask questions, please push hand-raising button in display. I would like to point out. Those who would be able to make questions, please turn off the mute and make the question. We would like to limit the question to one or two per person. I'm sorry for those who are not able to make questions, because we have limited time. We would like to move on to the Q&A session. The first question from Nomura Securities, Fujiwara-san, please. Hello, this is Fujiwara from Nomura Securities. Good morning. Hello.
That was a very strong and passionate presentation. Thank you. As for the management, I have a question about scale-up. Slide number 40. I'm looking at this slide, page 40. From here, of course, your existing business will grow and you will be have business model transformation, DX usage and integration of food and amino science. We can imagine a bit, but we want to be more concrete and specific image. For your company, business transformation, how are we going to do it? What would be the result for this BMX that you're referring to? This is my question. Thank you.
Thank you. First, I have discussed about the whole image, and CIO, Mr. Shiragami, will also supplement afterwards.
Fujiwara-san, thank you very much for your question. Ajinomoto Group, one of the challenges that we face is the growth capability. That's what I feel. Out of that, we have three layer model here, and we want to use this. For the definite growth, steady growth, we have unit price increase and volume growth. For unit price hike, we want to do the price hike steadily. We want to shift to the products that have higher value. Those are the two measures. The second, BMX business model transformation. In Ajinomoto Group, we have a very excellent success stories.
To be specific, in the AminoScience, we have been doing this BMX and as a result for fiscal 2021, our AminoScience business, the business profit is JPY 43.3 billion. CAGR for the past five years at 26% growth. Biopharma and electronics material were the growth drivers. I think there is a good format or standardization of BMX 0, 1, 2 or 3. 1 to 10 to 100. We have this type of capability, and we want to strengthen this capability. We're trying to adapt this BMX to other areas as well. In that sense, not just AminoScience, but for the food business, this BMX can be done, and we're doing it, especially food and AminoScience integration.
Yoshiteru Masai became the head of the food business. In AminoScience and Mr. Maeda, who is good at food, and Mr. Kojima is good at the food research and development. Cross-functional things have been done. Mr. Shiragami would like to explain and supplement my comment.
Thank you very much for the question. Let me expound on the matter. Regarding the four innovation areas, those are identified as the next generation businesses. Let me expound on this matter. One is food and wellness innovation. Delicious and health and your own lifestyle. This is where food and amino science as well as digitalization can contribute to. In order to personalize nutrition as well as health and wellbeing value to, for 1 billion people, this is a new business model. We'd like to accelerate the shift from the current business model to the next generation business model in this particular area. One is the dining, cooking, routine, which is enabled by digital technologies to prevent diseases and provide wellbeing lifestyles. Not only Ajinomoto, but also through external corporations, collaborations.
To realize this future, we are creating this ecosystem to realize this new business innovation. Another example is green innovation. This is to contribute to the environment and also a food system needs to buttress 1 billion people. Excuse me, 10 billion people. Green innovation, amino acid synthesis and carbon neutral cycle as well as eco-friendly supply chain and local consumption, local production, local consumption. A co-creation value with consumers. Those are what we'd like to innovate in this field. Our time is limited during this Q&A, but we hope to provide more better picture of that later. Thank you. In the past few years, or in 3 years from now, regarding this BMX new business seed, will the new business seed be visible? In what particular area is there anything on the horizon?
Thank you very much for the additional question, Fujiwara-san. Biopharma is one. Through BMX, which is already generating this biopharma, oligonucleotide is emerging. We have already created one and completed the cycle of 1-10, so now we are entering the phase of 10-100. That is a BMX for this oligonucleotide arena. We'd like to drive this into, grow this into a next generation pillar following electronics materials. We hope to provide a better image of that on the IR on a separate occasion through IR activities. Thank you very much. Thank you very much. I have high expectations. Thank you. Fujiwara-san, thank you very much for your question.
The next question from Goldman Sachs, Yamaguchi-san, please. My name is Yamaguchi from Goldman Sachs. Good morning. Hello. I have two questions. As for food, centering on that, you have a cost issue. As for this term, gross cost increase is going to be JPY 40 billion from JPY 27 billion, but for counteract is going to be JPY 30 billion from JPY 17 billion. This is the presumption. As for this JPY 40 billion, what are the largest source and factors here? That's one question. And how much is it hedged for this term? This is the important point. This is the risk factor for this year. This JPY 30 billion vis-à-vis previous year, you have the counteract. How certain is this counteract effect?
Of course, you have detailed calculations, I believe, but every country, what months, is this the accumulation of all the figures? Can you be more specific about the details of those figures? My question is simple, can you really achieve this? Can you elaborate on this point?
Thank you, Yamaguchi-san. As for raw material price hike, yes, very detailed. We've been analyzing the major raw material and the secondary raw materials are being seen. For major raw materials, it is sugar and tapioca. As for crude sugar, we have a small increase rather because Brazil, India, Thailand are the major source, and the weather was very good, favorable last year. There is no risk from the weather, bad weather.
As for tapioca, the corn price had hiked. The tapioca chips for ethanol were higher, but the demand here is leveled at high level. For major raw material from fiscal 2020 to 2022, there will be no large price hike. The large price increase is seen in ammonia. This one is very high now. We are assuming this, and that is incorporated, and this is a major part included in our calculation. Looking at the current situation, now it's leveled at high level, and there is a little bit of trend of going down. As you're all aware, we are very conservative. This high level and we are assuming that it may increase. This portion is included.
For domestic raw material, et cetera, for fiscal 2021 to 2022, there will be no big changes and impact. The material prices are being kept at high level. Under such circumstances, last year, JPY 27 billion counteract JPY 40 billion. This year, we have an increase of cost of JPY 40 billion and JPY 30 billion. How are we going to be certain with this counteraction? We have this raw material high, but we are now clear with them. We want to first reduce our costs and expenditure, and also we want to carry out price increase. For price increase, price hike for each countries, for each product, the timing, the raw materials related to it, the price hike gap, the rounding situation and environment surrounding that.
We have this Excel sheet all calculated, 10 pages or so, very detailed calculation by country, by product, and we have been analyzing more in detail. Every month, we will review, and we will be seeing whether we are coping with the situation. At the management level, once a month, we have this concentrated information, looking at it, whether we are good at addressing the situation or not. The management level is well aware of the fact. As for counteractions that you are concerned about, what the management can say is that we are fully aware, and we can counteract. One thing is about the frozen food in North America. Price hike is scheduled, and the customer has been already told, but they have accepted it.
40, 30 out of 40 could be counteracted, but more could be realized, I believe.
Thank you very much. In the first quarter December announcement of various companies, I think they have been having lower raw material costs. For you, means that all the 70%-80% of raw materials have been hedged. Is my understanding correct?
Yes. Yes.
Thank you. The second is about ABF. This time, the CAGR 20-22 was raised from 15% to 18%. Why is it? Can you tell us about this background? You mentioned this term is 14% increase. The term ended was 8%, but it ended 30%, so you have a big difference here. Maybe you are too conservative. Can you tell us about your assumption?
I would like to know the reason why you have differences with the previous year?
Yes, from 15% to 18%, CAGR have been revised upward. The reason for this is that, personal computers and the game markets, we had the continued adoption of this product in those areas. In the data centers and servers, we have more and more demand. Because of those reasons and because of that outlook, we thought that we can grow more in this field. The businesses as well as the management have confirmed this. We have made the announcement of CAGR of 18%. With this, very robust demand in back, I think it is backed by that. As for upward revision, in that sense, we would have to have a capability to look the future and analyze it well.
At the same time, there are different shipment timings. As you're all aware, recently, we have the logistics, the marine transportation and confusion in that area. We've been very conservative up until now for making the forecasts. Amongst ourselves, the management team have been discussing that, the capability of the rolling forecast. Of course, we want to start to do the rolling forecast, but we want to raise this capability by doing so. Quarterly, we want to have more clear vision so that through IR, we can provide more detailed figures close to the real and without a volatility on the announced figures. With your expectation, we would like to have your further scoldings or maybe and encouragement. Thank you.
15, 18 is the volume, I guess. You have robust demand, and at the same time, I think the upward revision of the ended year is volume and I think unit price, right?
Yes, we have more added value and more products of such kind.
Which is the more difficult to make outlook?
Well, the difficulty of making the outlook, so we would have to nurture this capability to see the future, I think.
Thank you.
Yes, thank you very much indeed.
Yamaguchi, thank you very much for the questions. Next question is from Saji-san from Mizuho Securities.
Thank you very much. This is your first day and the stock price went down. We'd like you to recover the stock price. Thank you very much. On page 17, regarding the price increase as well as volume growth that I'd like to delve into. Last year, the seasonings, the food, and frozen foods only are listed here. For overseas consumer products, the price increase was 3.5% for seasonings and food, and organic growth was 4.9%. There is a gap of 1.4%. The volume was solid in a sense. Frozen food was up 2%. Regarding this year's projection, the gap will be 3% or even minus 1% for frozen food.
Regarding seasonings and food volume-wise, you mentioned that the price is going to increase, but the volume will be up too. What is the background of this, your projection? That is my first question. Second, price is solid, including the price hike. Last year and this year in seasonings and food channel mix, the perception of channel mix, presumably both for home channel as well as the industrial channel, the channel is being diversified or changed, I believe. What does that impact on the price increase? Those are the two questions I'd like to ask you.
Thank you very much, Saji-san. Regarding the stock price, well, it's the assessment of the management, top management. I'd like to make sure that with strong determination, I'd like to fully work towards better stock price.
Regarding the volume growth, what is the background you've asked? Previously, in 2007, we've shown a strong evolution since 2007, and despite the price increase, the volume remained growing. That was the result of the survey we conducted, and also that is a background for our assumption or a forecast. In addition, for this year, sales and marketing expenses earmarked more than the previous ones. We allocate more on the sales and marketing side to realize volume growth. Having said that, though, as you're aware, depending on the country, some countries are more amenable to price hike and others aren't. Especially in Japan, it is difficult for us to conduct price hike. However, through our company-wide effort, as the fuel and raw materials rise, we would like to pass that cost increase to the price.
In a positive way, we'd like to create a virtuous cycle to reward workforce through better wage. That is the virtuous cycle we'd like to create in Japan. That is my view. In that sense, as a food company, Ajinomoto will do all it can by ourselves. Also, regarding the channel mix, in 2020, for the industrial channel, some will recover. That is our assumption. However, this does not have a negative impact on the growth because the home products tend to be higher than the industrial products, the unit price-wise. However, overall, this doesn't impact on the unit price growth. That is our assumption. Did I answer your question?
Thank you. I would like to ask a follow-up question.
On page eleven, for major countries for now, Southeast Asia as well as Brazil, you are conducting price hikes in each of these markets. Volume-wise, there was a concern and there will be a concern this year. Is that your assessment? Especially this week, we saw a consumer report, and Brazil has a severe inflation. There is a concern that the violence might break out in because of the inflation. If you keep hiking the price, how does that affect volume-wise outside Japan? Do you have any concerns associated with the possible or another rounds of price hikes?
Relatively speaking, for major seasonings products, we don't have any concerns.
While I understand that the economy may suffer, overseas seasonings in these difficult times, people start to tend to cook more at home and consume a lot of vegetables to bring down the cost per meal. That is the consumer general tendency. Even in hard, bad economies, the volume is likely to grow for seasonings. In 2015, when I was assigned to work in Brazil, the country was in a serious economic situation. The company said 9% price increase is demanded by the company, and would you like to sign 9% price hike for flavored seasonings. I wondered whether that was logical enough or made sense. There were certain reasons and good arguments, and the local entity said, I.
Well, so sought my approval, and I signed that document and approved. Gradually the volume grew even despite the price increase, especially for basic seasonings. That is the generic trend we see in other countries as well, looking back our long history. Therefore, we are confident that the volume can grow despite price increase. Thank you very much.
Thank you very much, Saji-san. Next, Morita-san from Daiwa Securities, please.
Morita speaking from Daiwa Securities. The first question is related to Saji-san's question. If the economic situation deteriorates, you mean if you have the stagnation, how much do we have to think about the downward effect? That means, from page 11, you have the menu-specific seasonings, flavor seasonings and umami seasonings. Is there any chance of seeing this growth reverse? I think you mentioned that you would like to do well with the added value products. I can understand that. This premiumization in this inflation a good way to solve the issue. That's question number one.
Thank you very much, Mr. Morita. Yes.
As for food, there are some evolving stages, as is written here. For example, we have this umami seasonings at the base, then goes to the flavor seasonings, and then you go to the menu-specific seasonings like Cook Do. We have the processed food, for example, frozen food and so forth, or chilled foods. We have this evolution for the food business. Out of that, as for menu-specific seasonings, it is value-added. We have things high-end. In menu-specific seasonings, we have low-end as well, so that the general consumer can use. For example, in Japan, if you have a downtrend economic situation, then the menu unit price per food is going to be lower. For example, Hoikoro, you have the cabbage.
If this is cheaper, people can use the cabbage and the pork, and use this, seasonings. Per unit, per menu is going to be lower. You did the bean sprout. We have the cooked menus, and that is going to be sold well.
From the customer viewpoint or consumer viewpoint, how are they going to lower the unit price per menu and endure this economic difficulty?
I think that's the way consumer would think. For the menu specific seasonings, of course, here, there may be some headwind. But this is not going to be a downtrend. It's going to be reversed, and going back to umami seasonings and flavor seasonings. No, that is not the case, because the menu is evolving.
This is irreversible, so there is not such a big trend of such occurring. Thank you.
Second question is that, under your explanation, I think, there is a time lag, to pass on the, raw material price hike, to your price hikes. When you did not have any time lags, how much, business profit I think would be able to be achieved? What is the discussion amongst management? If you think about the real capabilities, are you able to achieve that level in the next fiscal year? With your real, capability, if there is not been achieved, is there any risk of such factors? Can you talk about this?
Yes. Thank you. In that sense, fiscal 2021, 27, and, 17 was at JPY 10 billion.
In fiscal 2022, we have a gap between JPY 40 billion and JPY 30 billion, meaning JPY 10 billion. Fiscal 2021 budget from the beginning of the year, we have formulated with various calculations. At that time, 40 billion, we were not having this figure. From 27 though it was jumping to 40 billion yen. With that, we have reviewed and remade this forecast. The counter actions we have been making it, and those we are definite that we can contain is 30 billion yen. That is the business profit reflecting it, which is JPY 124 billion. Within these calculations and analysis, we're providing this. We would like to achieve the increase of our price hike.
We have in this 100-day plan, under the management leadership, we are thinking thoroughly and we want to exercise all the plans. We want to have more colors. I think this is not focused on the seasonings and foods, but according to last year, 20% was BP, but this year's guidance is 10%.
I think two years ago was 14%. So your capability when you're actually able to transfer the price hike, what is the BP rate actually?
Yes, we want to return to the before COVID rate and grow from that. That means that not just seasonings and food, but for frozen foods, we want to do various countermeasures. You are concerned about probably the Americas, overseas.
For North America, we have done the structural reform, and also we were able to make the price hike penetrated for fiscal 2022 forecast. We are definite that we can achieve that target. ROIC 5% in 2025, we need to achieve that definitely. We have the plan thoroughly. We would have to just exercise and implement that. After achieving it, we can see further evolution. That is the challenging, but target that we have internally. This year, yes, I can understand that you will exert efforts.
\Our worries are from the next year. Going back, can you really go back to the previous BP margin, maybe 12.9% or 12.7%? Are you assuming that? Are you definite?
In the new year, I think the absolute value will be close to JPY 90 billion. Is that in your mind? If there is any risks, what are the risks?
That you can assume, this is going to be for the future. Can you comment on that as well?
I think, when you turn to page 12, I think it's easier to understand for you, especially how the countermeasures, to, address the cost issue for the first half of 2022 to 2023. The pink portion is the countermeasure, and the gray portion is cost increase. For the first half of 2022, we cannot actually offset, but from the second half, we are able to offset. In the second half of fiscal 2023, we are definitely able to counteract.
In that sense, 12 point several %, I think we're not going to disclose this publicly, but internally through those countermeasures and by definitely exercising them, I think we can promise to achieve that figure.
Thank you very much indeed for that. Morita-san, thank you for the questions. Next question is from Takagi-san, SMBC Nikko Securities.
This is Takagi speaking. Your stock price went down, but this shows the rather high level of expectations. Under this predicament, you've made a solid performance. However, investors are not satisfied. Fujie-san can produce more. The performance is not increasing our profit. Therefore, the expectation. Your bar is very high, Fujie-san. That is the level of expectation from investors. That prompts my question. Regarding Bio-Pharma, the top line is strong.
That is likely to continue this year, but the profit is going down. Therefore, going forward in a midterm perspective, profit growth must catch up or even exceed the revenue increase in order for this to serve as the growth driver. This is not failing to achieve that target. That is my clear first question.
Thank you very much for the question. We'd like to make sure that we can meet your expectation. Regarding Biopharma, which is positioned as the next generation growth driver within Ajinomoto. In 2022, the forecast has it that, as you rightly pointed out, the fuel and raw material rising costs as well as sea transportation costs are rising as well. Therefore, currently, solid measures, countermeasures are yet to be implemented fully amid the situation.
That is why we've formulated the guidance for Biopharma. We will accelerate the initiatives to counter the situation to be in line with your expectation at the end of this fiscal year.
That's for this year, right?
Yes.
Regarding excluding the cost increase, the product mix is good. Excluding the cost increase, you can accumulate your profit to a much higher level. Is my understanding correct? From next year and onwards, could you please comment?
Regarding this year, yes. As you rightly pointed out, we could have accumulated more profit. Starting from next year, there is an internal solid plan to ensure business growth with Biopharma. On the right occasion, we'd like to provide a better image of that regarding the actual situation of Biopharma and our clear roadmap towards further business growth on a separate occasion going forward.
Thank you very much. Amino acid as well as CDMO, could you please expound and could you please add some color to this?
Regarding amino acid, sea transportation, marine transportation as well as the fermentation resource cost increase caused the cost increase for amino acids. Regarding CDMO, marine transportation is a significant portion for the cost increase. Regarding amino acid, I'd like to add that in the last 10-year business model transformation, about 10 years ago, we were barely unprofitable, but now the business has grown significantly over the last decade. I spoke about the business model transformation earlier. Amino acid grown so significantly, and we created a good success example of best practice that can be deployed elsewhere within Ajinomoto. Regarding CDMO, in Belgium, OmniChem is growing faster.
For our concern in North America, structural reform is on the way steadily. The recovery in the US business will start to emerge or take effect after the second half of this year. There is a general manager for Amino Science, Maeda-san, attending here, and if he has any additional comments, I'd like to ask.
Thank you very much, Akagi-san, for your question. In answer to your question regarding the amino acid and CDMO biopharma, starting from amino acid, raw materials are soaring, our products are very close to food materials, therefore, highly impacted by the rising raw materials. Likewise, we are negotiating with our customer for the possible price hike, but there is a time lag. Now for this year, we have to endure certain price and time lag.
Regarding CDMO, which is described on page 24 and 25, this is a new business. On a trial basis, the blue portion is being accelerated or brought forward than the plan. The yellow portion will come from the solid growth of OmniChem. We don't have any concerns with this yellow portion. Therefore, amino acid will be the rising raw material for amino acid will be the concern for this year, and there will be a time lag in order to catch up with the price increase. The blue portion of CDMO this year and last year, oligonucleotide medicine is the driver. Is that right? Yes. For the last year and this year. Yes, oligonucleotide. Which is followed by protein as well as antibodies. Another question, if I may.
Last night, Nakano-san talked about a cost increase and Ajinomoto needs to shift to a business structure that can withstand cost increase. What was the intention? Or what measures you are taking? Could you clarify? Fujie-san, could you please comment? For example, annual price hike negotiation. But there has to be a time lag, and there is a significant portion that you cannot offset with the price hike because you're too late to revise the price. Is it being transformed? First, annual price hike negotiation to reduce the cycle that has already started. Also, to date, business structure centered around commodity is now shifted to specialty centered, and the measures are already taken. So we can have a business structure that can better withstand the price increase because commodity is more volatile and vulnerable to the price increase.
By adding value or shift the focus to a high-end product, we can withstand a cost increase, possible increase going forward. In that sense, price hike or price increase is a very important indicator. If we can hike the price smoothly, that means we are adding value. To what extent we can achieve this, that is a very important indicator for us to measure our success. In addition, each business in each country has its own best practice or success model that needs to be visualized and transformed into a template that which can be shared across the company. Thank you very much. This is my last question. Regarding food, to add value on food, Ajinomoto used to produce results for foods. You are up-trading of your existing products, but you are not adding value to food products.
Under your new leadership, Fujie-san, would you like to do it differently to produce results for foods? Thank you very much for the comment. I used to be the leader of food division last year, and including my own responsibility, there are certain challenges. That is the growth capability of food business. I understand. I exchange views with members of food business. Whether we accumulate our existing products, that, where we need to harness our strength that has been built, accumulated with the existing ones. We need to start collaborating with external experts as well. Regarding the Value Creation Advisory Board establishment, that includes marketing and branding experts. We are hiring those external professionals on this matter. Later, I'd like to ask personnel to comment on this topic.
For the first time, this time, Okamoto-san was appointed as the marketing division, and he is providing a marketing supervision, which used to be divided in silo for each business. We were operating in silo.
However, now we are trying to introduce elements to increase our cross-divisional collaboration within our organization, including that within food, especially in Japan, we'd like to start generating results in Japan for food. Okamoto-san, would you like to comment?
This is Okamoto speaking. Thank you very much for the question, Takagi-san. As you rightly said, and as Fujie-san mentioned, the growth potential in Japanese food, I share the view. In order for us to keep generating new products, Ajinomoto was once excelled at this capability, but we need to actually regain that capability. We are to create a template so as for us to start creating new products. We started to create template, and the communication channel needs to be cultivated anew so that we can approach the consumers in Japan as to how to communicate this and also how to deliver our products. EC is rarely used for food products, but now the situation is changing and double-digit growth is being felt, not just in Japan, but also elsewhere as well.
We are trying to create a new business model in, especially in, with food in Japan. Thank you very much.
Thank you very much, Takagi-san. Next question. Miura-san from Citi. Hello, this is Miura from Citi. Can you hear me? Yes. Yes. Thank you for your participation. First question is about the teamwork. In the past three years, the profit is increasing, but looking at the past three years, Ajinomoto, I think, has a better management capability for the coming years. Mr. Fujie, I think in order to accelerate the growth, how are you going to transform your organization teamwork? You have elaborated on this in your explanation, but for this, what is a direction? What is your thoughts about your transforming the teamwork? That's number one. Second is dream. This is a word that I like. This is the source and essence of the happiness.
When you look at the portfolio of the company, you have the breakfast 60% sales, and the 20% is the profit. In the coming 10 years, 5 years, what is going to be the proportion of the in-home use deliveries? Yes. Thank you very much, Miura-san. Thank you. As for the management capabilities in the Mr. Nishii's administration, we have enhanced. We want to succeed and improve that. For the teamwork, the important point here is that appropriate management leadership. Ajinomoto, we have very serious employees in the field with a passion dealing with their works. When the total optimization to provide amino acid-related product, the management needs to form the direction and, under the appropriate leadership, go through that direction. That is important.
Under such an environment, I have formulated 100-day plan. We want to shift the gears and exercise various plans. In the executive committee, we want to seriously pursue ASV thoroughly, and we want to be serious in doing the discussion. Compared to the previous system, we want to be more serious in those areas. The second point, five years after, ten years after, how should we be? To all the consumers, we want to provide essence of happiness. That's the most important thing. In that sense, the Food and AminoScience, we have two different segments.
In myself, the segmentations are happening, but from the consumer eyesight and from the employee perspective, food and amino acid to solve the issues of the food and amino acid of the issues, that's the reputation that we have. Food and amino acid integration, I think that is very important and will be the source of growth of our business. That is going to be happening in the years 25 and in the 2030s. From fiscal 2022, 2023 to 2025, we have mid-term indicators how we want to be in 2030, and doing such discussions amongst our management. We receive various advice. What would be the structure that we want to have with this company?
We would have to have more discussion internally, and we want to also communicate that, to you as well. Thank you very much for your input. Thank you very much. This is a beautiful story, but the business is, quite tough. To pursue the happiness and your dream, I think that, posture, the 100-day plan that you have shown, and, I think you're going to execute that. To your employees, under you, how are you going to communicate and penetrate your message, and how is that mechanism in your company? Yes. As you say, it's beautiful, but, we need to communicate that, and we need to show the result. That is very severe. Yes, I have that determination. In that sense, with, full determination, the management team needs to exercise and implement.
To communicate our will and desire, the mechanism, I value discussion and dialogue. Of course, from Mr. Nishii's system, we have had that dialogue, CEO dialogue, maybe 50 times a year, at minimum, with the people in the field, who I want to have dialogue. Mr. Sasaki, Maeda-san, and one more. The three executives have already started dialogue, and all the heads of the businesses have started their dialogue with their employees. Through those dialogue, we want to communicate our way of thinking to the employees up to the very end, and penetration. In that sense, I reflect a bit in the past that, as a management, I think that I have already communicated, but not the full message have been communicated up to the very end.
Today, yes, I have will to communicate, but I don't know how much of my will have been communicated to you. Maybe not enough. The word that I want to value that I heard from others, he said, Mr. Fujie, yes, so when it is fully communicated, understood, that's when it is communicated. I would like to value the words and communication. To those stakeholders who share the purposes, I want to also have more dialogue and communication. I think, with the investors like this, more than ever, we would like to have more communication and dialogue. Thank you very much. Thank you very much. Lastly, about the performance. Globally, in the consumer staples downtrend, is happening, U.S. and Asia as well. Is this a following wind for you?
I think volume is going to increase by 4% this year. This is going to be positive. Next year, you have more. I think that's a cycle that you have in mind. For next fiscal year, volume is going to grow. You are going to have price hikes as well. So I think your future is quite bright. How do you think about this? Yes. Yes, I think our future is bright. I myself think so. Word that I value is a chance. A chance, opportunity is a pinch or risk. But if you are at a risk or danger, then this may turn to opportunity.
Of course, if you have a target, but if you have the risk, you have to think about how to solve it, and that is going to turn into a chance or opportunity. From the second half of 2022 to fiscal 2023, we want to improve and grow and enhance our corporate value under my leadership. Together with all the members, we want to form one team and exercise all the plan. One team, the word one is very important. Towards the same purpose with passion. All individual should upgrade their capabilities. That's very important thing. Speed up, scale up is also important. Thank you very much.
Thank you very much. Thank you very much for the question. There are remaining a few questions, but, unfortunately, time has come to conclude this event. Therefore, we'd like to invite one more question before concluding this. Yoshida-san from JP Morgan. This is Yoshida speaking. We passed time, but, let me ask a brief question. For the short term frozen food business, as was pointed last night, whether you can certainly achieve the business profit target, and by doing so, ROIC 5% will have better project prospects for ROIC 5%. What will drive the profit growth this year for frozen food? Does that zero price increase?
If you have a smooth price increase, then are you likely to achieve the profit target for frozen food? Regarding the labor force shortages, how are you going to secure labors or workforce? What are the risks on the horizon with frozen food? Thank you very much. Thank you very much for the questions. I'd like to provide an overview and which will be expounded by Kawana-san later. For the fiscal 2022, the figures we presented earlier were very conservative, especially for Japan. North American price hike is already being finalized with the consumers in terms of the negotiations, and that's factored in already. Pertaining to Japan, structural reform is making progress as planned. That is the assumption with it for the forecast. Speaking of risks, any huge headwind worldwide is a risk.
This year, the figures we have shown so far, we are certain that we can achieve at a minimum requirement, or this is a commitment level at the minimum. Even more, we have set an internal target to surpass these minimum targets. If there is a strong headwind which is greater than that, the risk scenario is already formulated. Kawana-san, would you like to add some colors to this? Thank you very much for asking question regarding frozen food. As Fujie-san mentioned, this is not a challenging budget or high toll for us. This year, the profit was scheduled to be generated this year, but next year we are certain to achieve that.
Regarding the negative forces this year, the surge of inflation after COVID and Omicron variant caused labor shortages and we failed to address those issues flexibly. However, we already implemented price hike and, as we announced earlier, for restaurant use products, we already increased the price. For home products, we will start hiking the prices come May. Regarding the labor shortages, there is only one factory that is suffering labor shortages. To address this matter, low profit product lines are being shut down temporarily to deal with the labor shortages. So the basic workforce, the required headcount will be reduced. Once we go through this pandemic, we can provide sufficient technical support from Japan to save labor going forward. So we'd like to hit this minimum target as frozen food.
Thank you very much. This is my last question. Is there any headwind perspective? What is your assumed tailwind going forward? Well, Ukraine is our biggest concern. Well, we are dealing with foods and our raw materials, our agricultural produce. So the feed and food price, once they go up, they can increase our raw prices, raw material prices. We already factored that in into our forecast, but it could even surpass our, the level of our expectation. I understand. Thank you very much for clarification. Yoshida-san, thank you very much for your question. That concludes the QA session. We'd like to invite Fujie-san to give us a closing statement. Thank you very much for taking time out of your busy schedule to attend our business results briefing today. Because of our limited time, we have to conclude here.
However, we'd like to carry on this, active dialogue with you going forward. That is my motto. For that, I'd like to solicit your continued support. From the top management, we, the entire company will work together to provide solutions for food and health issues, and we remain committed to that, so we'd like to solicit your continued support. Thank you very much. That concludes our briefing session. Thank you very much for your participation. That concludes our briefing. Thank you.