Good morning, everyone. Thank you very much for taking precious time to attend this meeting today. I am Kaji of the IR group. I'll be serving as MC. Today, we would like to talk about the sustainable initiatives aimed at enhancement of corporate value. Thus, we will look forward to having a dialogue with you on this theme. First of all, let me introduce the speakers for today. We have Director, Representative Executive Officer, President Mr. Fujie.
This is Fujie.
Thank you for being with us today. We also have Director, Executive Officer, Senior Vice President, General Manager of Corporate Division, Mr. Sasaki.
This is Sasaki here.
Executive Officer, Vice President in charge of sustainability and communications, Ms. Morishima.
This is Morishima here.
In addition to these three members, we also have the Independent Outside Director and Chairman of the Compensation Committee, Mr. Davis.
This is Davis here.
Thank you for being with us. We also have Director, Representative Executive Officer, and Executive Vice President, Mr. Shiragami. Executive Officer, Vice President in charge of Finance Investor Relations, Mr. Mizutani. General Manager, Sustainability Development Department, Ms. Takatori.
This is Takatori here.
And Value Creation Advisory Board, Mr. Baba is also here with us.
This is Baba here.
After the opening remarks by Mr. Fujie, Sasaki-san, and Morishima-san will introduce to you the sustainability initiatives aimed at enhancing corporate value. After that, we would like to move on to the Q&A session. We expect to finish the entire meeting in about 90 minutes. The materials to be used for today's meeting are already posted on the IR website of the homepage of Ajinomoto Corporation. Please refer to them as necessary.
Please be advised that this session will be recorded all the way to the Q&A session and will be posted on the IR website later. Please be advised of that. Without further ado, we would like to have Mr. Fujie begin his presentation.
This is Fujie. Thank you very much for being with us today despite your busy schedule. Thank you very much. Please bear with us for today's session. These are the three points that I would like to cover today in my presentation. In view of 2050, we would consider the materiality for the Ajinomoto Group, and we are promoting the ASV management as middle good, creating shared value through the enhancement of intangible assets. Second point is that we are seeing acceleration of initiatives that will produce positive impact based on AminoScience.
The third point is the reduction of negative impact and the expansion of the creation of positive impacts. Through these, we will aim to achieve an enhancement of enterprise value in a dramatic and continuous way. Next slide. This is the ASV value creation processes. As you can see, sustainability is already incorporated in the core of our ASV management. The next is the purpose of Ajinomoto Group. With AminoScience, we would like to contribute to the well-being of people, our society, and planet. We would like to extend the healthy life expectancy of 1 billion people and reduce the environmental impact by 50%. These are the outcomes that we have already set forth. The next page is the governance structure for us to realize the ASV management.
In 2021, under the Board of Directors, we have established what is called the Sustainability Advisory Council for the first time in our corporate history. This council was led by Professor Davis of Rikkyo University. The expectations of Ajinomoto Group have been discussed under his leadership for a two-year period. As a result of that, we have defined the materiality for Ajinomoto Group, which were proposed and advised to the Board of Directors. From 2023 onwards, Mr. Nakazora of Paribas Securities succeeded as the chairperson for the second term of the advisory council. The implementation of progress of materiality advised in the first phase and the conversation with the stakeholders are monitored under his leadership, and we are continuing our dialogue under the second phase of the advisory council. This relates to the materiality.
We would like to hone co-creation capabilities, take on stakeholders' perspective while achieving well-being, and through our business activities, we would like to return the co-created share value to the society. This is the framework for us to achieve that. With this time around, we have break down these topics into three six important key themes for materiality. Those are identified here on the six items you see here. Based on the intangible assets, we have the risks, and the negative impact will be reduced. Positive impact towards the society and these initiatives will be accelerated today out of this positive impact creation. These initiatives especially would be focused and we will be doing them. Based on that, we will keep on going. For the extending 1 billion people's life expectancy
We would like to put this a focus, a very tasty and delicious reduction of the salt and also 50% reduction to the environmental burden. This is for the 880 million people achievement. With this outcome, in this extension, we would like to evolve these themes. Next, positive impact, in order to expand this. In the COP28, we have agri-food system sustainable building. That declaration has been adopted. For promotion of GX, as you are all aware, in these days, the speed has been accelerated. In the agriculture and livestocks businesses, I think the trend is going to change. For our company, this is going to be a really big turning point or business opportunity for us. When you look at globally, GHG emission is about 57 billion tons, of which 30% is generated from the agri and food system.
To this end, Ajinomoto Group, based on AminoScience, we would like to provide a feed with a high value added and amino acid-based products. We have very unique technology, and we will be able to contribute to the reduction of GHG emission. To the investors, and including our employees, to various stakeholders, we would like to have communications. Through that, we would like to evolve further our ASV management and would like to exert the whole Ajinomoto Group's efforts toward enhancing our corporate value. We have now with us a chairman, the first chairman of the Sustainability Committee with us as outside director. We would like to ask Professor Davis of Rikkyo University to say a few words of comments.
Thank you very much. This is Davis here. Thank you very much for having me. As it was mentioned by Mr. Fujie, based on the slide number six, the infinity loop, which was introduced by Fujie-san. Based on this process, materiality for the company was identified when I was chairperson of the Sustainability Advisory Council. The Sustainability Advisory Council defined these processes for materiality, after that, I became outside director of the company. Although we are maintaining independence from the maintenance with the advisory council, now in my capacity as an outside director, I am monitoring whether the implementation is taking place in accordance with the line of and the concept behind the establishment of these materiality themes. I am now free to speak up because I am no longer the chairperson, this infinity loop appears to be very well.
Many people said that it was very difficult to understand in the beginning. We have said that this is not something that can explain. It is just about finding a gap between reality and the to-be state, and how can they be translated into the improvement process. This is a tool for each person to work on. I admit that I have made a lot of impolite comments from time to time. All the speakers that will follow us after this, and Mr. Fujie, all of them were enthusiastic about saying that sustainability is identical to the strategy. We have to provide solutions and thereby generate shared value. The executives are very enthusiastic. We call this Fujie fever. We have to put this into practice, otherwise, the society will be in danger.
As an outside director and also the voted board will have to monitor on this. After I took office, I have been keen to and showing a lot of strong interest and keep an eye on this. Just briefly, I would like to report the progress of the implementation so far. First and foremost, in the four areas, in the four strategic areas, before I was appointed, the board decided on these four strategic areas as the basic core of the corporate strategy. Sustainability is the foundation of value creation, otherwise it is just a pie in the sky. Mr. Shiragami, I asked Mr. Shiragami to have an interview with the top of each division, then I had a conversation with every one of them.
In that process, I had an impression that everybody is working quite energetically in their respective field, how to implement materiality in their practices and how materiality are reflected in their business execution. AminoScience, which I call, is the very super high-tech material science. Based on this, how to execute business utilizing AminoScience. This is very well understood by all the executives, and they are working quite energetically to put them into practice. It is about the sensitivity to the society and the potential of the chemicals. Those are combined together to deliver the story of well-being. In these are the common issues and common theme for all the four core areas. Just last month, I visited this office in Tokai region, HONDASHI is a very popular product. Starting off with that product, these chemical production utilized for medical applications.
This is an office that is engaged in these broad range of activities. I visited there, and I had an interview with the people working on the field there. I asked about the infinity loop. I asked about the sustainability of the company. To my surprise, for one thing, I would say that the entire value chain was People, many people were conscious about the total value chain. I thought about rather they were focused on the negative impact, but I think they were rather focused on the positive impact. It's not only nature focused, but how our products are being utilized in society. What is the mission of the company? Those were proactively discussed by many of the employees out there in the Tokai region.
As an outside director, to fulfill my responsibility as a monitoring function, it was very encouraging to reconfirm that this is well permeated in the employee base. Just the other day, there's a GX conference, the global executive class are participating in this conference. They share the business strategy and the track record of each organization. I think we have that organization. For one week, we spent one week and had a discussion. I was able to observe that meeting as an observer. In that process, who ultimately will be the beneficiary of profits? What is the circumstances of each people? What are the things, the values that only Ajinomoto can deliver? We had a very enthusiastic discussion. Chemical versus well-being story. Those are discussed and identified by each executive.
Beyond that, for example, one business in Africa have found out and identified many wisdoms, and those can be implemented. It could be rolled out in Thailand or in Brazil. Those were proposed by a representative in Africa. Africa, America, Thailand, these networking effects were actively seen. That's what I found in this conference. If I dwell on this, I think we will lose the time for presentation. In a nutshell, I would say that the Ajinomoto people are quite humble. To be candid with you, I was able to confirm that there are many strange things with them. If they can easily pretend to show that they are working on sustainability, but it's just about low-hanging fruits. If you just take on those low-hanging fruits, it's very easy to realize what is called sustainability.
We don't want to educate with them that this is something that is easy. We wanted to work on the fundamentals. Instead of having a low-hanging fruit and outcome, but rather than those are superficial activities, we understand that they are not focused on those easy things. Fujie-san is quite energetic, and there are many people who have caught the Fujie fever, so that excites me going forward. As for the future outcome.
Fujie, Davis-san, thank you very much for your comments. We would like to move on to the next presentation, which is the sustainability initiatives aimed at enhancement of corporate value. Mr. Sasaki, Morishima-san, please go ahead.
This is Sasaki here. Thank you very much for having me. If you can move on to the next page. The next page, please. If you can move on to the next page. Yes.
These are the topics I would like to cover today. The three, second one, the positive impact and expansion of positive impact. As it was mentioned by Fujie-san at the outset, in many different fields, challenges are now accelerating. Towards the realization of ASV, I think we have a good visibility towards achieving the ASV. I would like to specifically focus on initiatives that we are implementing to create these positive impacts. Next page, please. These are the examples of achievement of ASV, which is about the global umami seasoning business value chain and the value creation thereof. I would like to explain this part. As you can see here on this slide, umami seasoning value chain. Through this, we are trying to create additional value all the way from upstream, midstream to downstream. We are implementing various initiatives.
With the fermentation, we are developing umami seasonings, cassava and also sugar canes are the more materials for that. Then we are also providing direct support to the farmers of these produces and also utilizing the supplies from the farmers. Our products are with a low environmental impact, and we are pulling back these co-products to the farmers. We have been repeating this positive cycle. These produces will be used for the improvement of health and nutrition in the format of our customers so that we can help improve their health and nutrition. By having an empathy to our products, we can earn the loyalty of customers, and the engagement of these initiatives will further lead to enhancing the employee engagement. This is a cycle that we have already established. Next page, please. Hi. All right. Umami seasoning.
The value chain we are trying to achieve ASV and also the circulation of intangible assets are listed here. We are working on to strengthen the intangible assets. Through this, we will try to create economic and social value over the longer term. This creation of economic and social value, through this, we would like to further accumulate the intangible assets. This is leading to the evolution of ASV management. Based on the materiality framework, this is the process of value creation under the ASV management concept. Next page. This is the formula for us to realize the enhancement of corporate value and how these activities are contributing to them are explained here. In the formula of corporate value enhancement, all these initiatives, how do they relate to them, are explained here on this slide.
If you can read them through, I think that will be self-explanatory to you. Next page. Here, this is about through the value chain of umami seasoning. We would like to create value, and we have been working on the quantification of value creation. We have divided into social value and economic value. Within the umami seasoning value chain, for example, when it comes to social value, GHG emission reduction for one thing, also with the supplier yields. We are working to stabilize and increase the yields and thereby improve the social value. When it comes to economic value, the raw material cost and fuel cost can be reduced. Also in contributing to improving the profits of the suppliers, we can also utilize this win-win situation to bring down the raw material cost.
With this positive cycle, the empathy to the products will also lead to improving the sales of the company. These are just a simulated value, but with often when we see this in business value that we can address. The part after this will be explained by Morishima-san. I will switch over to Morishima-san.
All right. From here, this is Morishima, and I would like to talk along the six key themes and share with you the representative activities. As it was mentioned by Fujie at the outset, these are the typical cases that will produce positive impact to society over the longer term in a broad manner. I would like to share these initiatives with you. Next page, please. First, I would like to talk about the realization of a sustainable earth environment.
Before that, even after COP28, the establishment of a resilient and sustainable agri-food system has become a global issue, and we would like to share with you here how we can contribute to the livestock industries in the Ajinomoto-like way utilizing AminoScience. The next page, please. The first is the contribution to the sustainable agriculture utilizing biostimulants. Biostimulants may not be familiar to you, this is an agricultural material that combines the natural ingredients such as amino acid and other ingredients derived from fermentation microorganisms with natural ingredients to deliver the power to live healthily, leveraging the natural power equipped intrinsically in plants. A supplement which sits between food and drugs, this is like a supplement of plants that sits between fertilizers and chemicals.
We have been explaining this as the amino acid bio-cycle, at Ajinomoto Group, since the 1930s, have been selling the coal produces of amino fermentation as products, as fertilizers and realize the cycle of natural capital. We have entered into a Spain-based company, Agro2Agri A2A, which became a 100% subsidiary of Ajinomoto OmniChem in 2022 after we entered into a capital alliance in 2017. This company is offering biostimulants to over 15 countries around the world, producing a global network. As you can see on the right, biostimulant not only helps improve the crop quality and the agriculture efficiency, it also helps reduce the chemical fertilizers and pesticides, improves the yield, and thereby reduces fuel consumption. These various contributions to the environment are drawing a lot of attention and high growth is expected for the future. Specifically, if you can move on to the next page.
Specifically, we can expect quality enhancements in the protein, in wheat, and the vitamins in paprika and sugar in corns. In addition to them, as you can see on the right, we expect to see a 24% improvement of yield in agricultural produces, which improves the efficiency of land utilization. We also can expect some 25% reduction in water usage and chemical fertilization usage, and an 8% reduction in fuel consumption, which in turn leads to CO2 reductions. These positive impacts are based on the estimates calculated based on A2A's sales volume, which are projected to lead to the creation of 800,000 hectares of farmland. This equals to 3.3 million tons of wheat or securing food of 40% of the population of Japan's food required for 50 million people in Japan for one year.
Biostimulant is now spreading across Europe mainly, and the market size is expected to grow at a CAGR of more than 10% going forward. This also has an impact to moderate the environmental stress of plants, such as high temperature and drought. This is expected to be a solution for global issues such as the climate change and food security. Next page, please. The second of AminoScience achievement of sustainable livestock husbandry utilizing AjiPro-L. As you are all aware, AjiPro-L is helping the status of health of cow by, the cow could absorb the feeds more efficiently by providing amino acids in a well-balanced manner. It suppresses excessive excretion of amino acid into urine.
Cow is a ruminant, and with a unique technology, AjiPro-L would not be decomposed in the first stomach, but it would go to the first intestine, and it will be effective. By suppressing excessive excretion of amino acid into urine, it will reduce N2O origin from urine by reducing it 25%, and absorption for feed would be more effective. And we could reduce CO2 by 20% regarding the raw material procurement, and the feed volume, and also the feed cost could be reduced by $100, including other items. CO2 reduction of about one ton per animal annually could be expected. Toward 2030, 1 million animals, meaning 1 million tons of CO2 reduction is our target. This initiative will not just cover milk cow, but also beef cows. Currently with global dairy manufacturers and meat manufacturers, we have started to consider cooperation.
That was two initiatives related to the agriculture and the livestock industries. Sustainable and resilient building of agri food system using AminoScience that could be achieved only by Ajinomoto Group. Next is about wellbeing through food. There are two initiatives. First is visualization of the contribution to wellbeing through cooking and eating together. Working together with a global survey by Gallup, that is a basis of UN World Happiness Report, we have clarified that people with enjoying cooking and with more eating occasions with others experience more sense of wellbeings. As is shown here, who enjoy cooking is vis-à-vis non-cookers and not enjoying cookings, 1.2 times higher wellbeing being experienced. And with people frequently eating with others is experiencing 1.6 times sense of wellbeing more than the eating alone people.
As a result, we were saying that food and nutrition and health on a physical basis had a wide evidence of such. But in the area of food and objective wellbeing, there was not an academic evidence. But with this study, we have validated that there exists. Together with University of Oxford, we are analyzing in detail, and we can authorize that food could contribute to objective wellbeings through the papers and so forth. Ajinomoto Group are promoting wellbeings physical experiences to people through our businesses of healthcare and nutrition improvement. Through our products, information, services of food, we are providing joy of cooking, eating together, joy of connecting with people. We are contributing to the physical and objective wellbeing. Second initiative is utilizing ANPS, accelerating our initiatives toward health and nutrition, usage of NPS promotion with dishes. ANPS stands for Ajinomoto Nutrition Profiling System.
This provides visualization and evaluation system for nutritional value of products and menus.
From 2020, we started ANPS-P products. We have promoted this, and together with our 16 locations around the world, we are utilizing this in the product development and improvement of the quality. In the reality, people would not just eat processed food. They would cook using seasonings. From 2022, therefore, we have started to visualize the nutritional value of the menus and started to develop ANPS-D or dishes. We have unique algorithm, including classified menu, model dishes, contribution to nutrients and so forth, so that we are providing nutritional values in those areas, visualizing nutritional values, and through that, we will be able to provide food environment for people and consumers to make a menu of their own and so forth. We are contributing this in promoting the health of the people. Next page, please.
In Japan, Ministry of Health, Labour and Welfare, Food Environment Strategic Initiative, we are now joining the projects of National Institute of Health and Nutrition. We are now trying to implement this in a society. In Thailand, together with university and nutritionists, we are developing ANPS-Dish. Every year in Bangkok at the International Health Conference of PMAC, we are communicating those efforts. Currently, nutrient evaluation indices are based on processed food. Those Japanese companies initiatives providing menus, well-balanced menus using seasonings and et cetera, are not well evaluated compared to the European and American companies.
On the other hand, we can say Japan is a country with longer health longevity, and the consumers will say, "Seikatsusha is used to eating vegetables, meat, and fishes in a balanced manner." I think to recognize ANPS of dishes globally is going to lead to the solution of issues and challenges in the area of health and nutrient. With the cooperation of Dutch Institution of ATNI, we are doing these efforts to proliferate this ANPS-Dish version of the indices. Together with financial institution of Mitsubishi UFJ Bank and academia, government, international organization, and NPOs, we are cooperating to provide a food environment support model, a comprehensive one. This is going to be a model that would help the challenges of the food. In the next summit, Nutrition for Growth Summit, which will be held in Paris, we will be showing this.
Next is going to be our contribution to advanced medicine CDMO. Providing solution and creating values in the CDMO of advanced medicine. Based on AminoScience, a unique and competitive technology. Based on this, we can solve the issues of our customer, pharmaceutical companies. We can support drugs development and manufacturing in an innovative way. We can contribute to the well-being and healthcare from the healthcare area. With our wider modality and through our unique platform, we can realize value creation and we can contribute to the health of the people, namely, develop new treatment methods and expand treatment for refractory diseases. To be more specific, on the left-hand side, you can see CORYNEX, small molecule protein production system based on microorganism secretion.
With this CORYNEX technology, we are now able to produce protein in a very efficient way, which was not able in the past. From development to manufacturing, the speed will be accelerated.
ADC, antibody-drug conjugate, that is a growing area in the anti-cancer usage. This is one of the biodrugs. By having less dosage of drugs dropping before reaching the target cell, we will be able to provide more high-performance drugs with less side effects. ADC will enable this. Therefore, the less volume of drugs is required for the treatment, and the treatable area will be expanded. Next is about nucleic acid drugs, which is growing highly in the area of antibody drugs, mixing small molecule and large molecule drugs advantages. We are providing AJIPHASE methodology, our unique methodology, unlike the solid phase synthesis. This will enable mass production of the nucleic acid drugs. We will be able to provide a more wide range of treatable area and also lead to treatment for the refractory diseases.
As was mentioned last year, we have a company called Forge in our group that has a very high technology in the area of gene called viral vectors. AminoScience of our group and the technology of Forge could be fused, and this will lead the road for treatment for rare diseases. Together with a customer company of pharmaceutical companies, we can provide solutions to the serial issues of society. Together, in addition, AJIPHASE, compared to the solid phase synthesis, we will be able to use less organic solvent and reagents. This is going to be less burden on the environment. Using AminoScience in the area of innovative drugs and technologies, we will be able to contribute to the well-being of the people physically, and hence, a positive impact. Lastly, I would like to talk about smart society.
This page shows our contribution to the evolution of a smart society through electronic material. ABF, Ajinomoto Group's electronic material, has been generated through our evolution in this area, and ABF is now a de facto standard for global CPU and GPU. As you are all aware, ABF is used to protect IC chips on semiconductor substrate. It will reduce losses of electronic signal transmission from IC chips and reduce the saved power. Magnetic materials will lead to smaller products and also shorter startup time, and will contribute to lower energy consumption for the semiconductor packages. In recent years, high performance per power has increased by 100 x in the past five years, and Ajinomoto ABF has contributed in this, adding high values. Semiconductor usage is not limited to PCs, but server network, auto, and AI, and so forth. Also, it will contribute to the consumer's comfortable smart life.
It will also lead to a lower burden on environment through reduction of the power and reduction of CO2 emission. In the future, for optical computing and for photonics-electronics fusion, we have participated in the IOWN, and we are co-creating ecosystem in the area of high-speed development system so that we can provide a timely solution for the innovation. Next page, please. Lastly but not least, is a challenge toward creating value in the area of corporate venture capital, CVC. In January 2024, we have established a CVC location in U.S. Silicon Valley as part of our global development of the innovation strategic team. Together with this location, we have invested in Elephantech, a startup company creating low carbon print substrate. The current circuit manufacturing utilizes a high volume of energy and water. This is a challenge for the CO2 emission and high volume water emissions.
With the Elephantech's technology, the special inkjet technology, we will be able to reduce the usage of volume of energy and water. CO2 emission by 75%, water consumption by 95%. Together with the establishment of the technology, we are now considering how to cooperate in the mid and long term with Elephantech. This is the last slide. I was not able to go into details, specifics, but our company's activity will be minimizing the negative impact to the value chain, and we think this is our responsibility. We will be definitely doing this. In addition, as was mentioned earlier, we want to maximize positive impact utilizing our AminoScience that would create a surplus advantages to the whole world. We want to challenge to this. Thank you very much for your attention. Thank you.
Sasaki-san, Morishima-san, thank you very much. From here, we would like to move on to the Q&A session for the entire presentations that we have heard. We would like to first explain how to raise questions. If you have any questions, please press the Raise Hand button that you see on the screen. We will nominate the questioner from ourselves. If you are nominated, please unmute your microphone and begin your statement. Those of you participating from overseas, you can raise question in English. We would like to answer utilizing a simultaneous interpretation system. We would like to limit the number of questions to approximately two questions per one time. We thank you very much for your cooperation. If there is a possibility that we may not cover all the questions, if there are too many people wanting to ask a question.
We would like to begin the Q&A session. If you have a question, please indicate by the press of the Raise Hand button. The first question will be from Saji-san from Mizuho Securities.
Thank you very much for allowing me. I have a question both to Sasaki-san and Morishima-san. On page seven, which introduces the value creation by the umami seasoning. I have a question, especially in regards to the starch yield per hectare, and also t he production cost, the raw material cost for that.
This I think is about Thailand, because I see that from the footnote. The estimated value, like 40% positive increase or the - 15% reduction, this is quite sizable as an impact. If you can explain how you arrived at these numbers, that will be appreciated. If you can explain how you came up with these numbers. That's my first question. My second question relates to page 12. You just mentioned that previously, AjiPro. Previously, we've been covering, you have provided some information about this, but I know that some update. AjiPro, what is the size of this business today, and what are the challenges you're facing? For example, this time around, you have provided us from positive impacts as an explanation.
As a business, are you seeing any challenges with respect to AjiPro business and towards 2030, a million tons or so, CO2 reduction? If that is actually realized, what is the actual impact out of that in terms of economic value? If you can share with us the economic value that can derived out of this reduction. Those are the two questions that I have.
Thank you. The first question will be answered by Sasaki.
Thank you very much for your question, Mr. Saji. This relates to page seven. As you rightly pointed out, the starch yield per hectare and also the raw material cost. This was calculated based on the case of Thailand. Yes, you're right in that regard. The starch yield, there are two aspects here. With respect to the method, let me just briefly explain the method of this.
The product, I explained the virtuous cycle, we are providing a lot of co-products for nutrition, and we are broadly expanding that. Also in Thailand, there's a group company called FD Green, which is engaged in agriculture business. The cassava, we provided and provided to the farmers. We are about to start this business. Through these activities, the yield per 1 hectare could increase, there could be some new plants, like new varieties, that will increase the yield per hectare. Also the starch content will also increase. Altogether with these, I think with these, the incremental estimated value that we have derived at out of that calculation. Of course, based on the assumption that the fixed cost will not change, because the yield per hectare will increase and therefore the raw material cost will come down accordingly.
We will split these positive impacts between us and the farmers, therefore, the raw material cost will be reflected in our economic calculation as our business. This again is our estimate. These are the economic value that we have derived at. That is the background, how we came to these numbers. That's all for myself.
I just have one point of confirmation. At the bottom it says, "This is the single year evaluation for fiscal 2022." This 40% increase or 15% decrease, what is the basis of comparison?
In 2022, the actual cost for 2022 and the yield data for 2022 were obtained. Based on certain formulations, we have estimated the contribution based on certain assumptions in 2030. No, not 2030, but this is the per year contribution.
If you can extend on these activities, this is the annual contribution that we can expect per one year. This is the increase or decreases that we can expect per one year. All right. The single year contribution is the number here. If you can continue on, this will accumulate towards 2030. Again, this is just an estimated value. With these expectations, we would like to work together with our farmers. That is our resolve, to work on this in order to achieve these estimated values.
All right. Thank you.
All right. This is Morishima. I would like to answer to your second question. AjiPro-L, as a business, this has further room to grow. We are at the early, initial stage only right now. The milk cattle, I think this is a very sizable business around the world.
We would like to further expand this business and expand the volume going forward. We are at the initial phase only. In Japan, the sales contribution of this business is very limited. I think there's great potential for us to expand this business going forward. We talked about the milk cattle right now. In the meat cattle, more than the milk cattle, because the total number of cattle outnumbers the milk cattle. We would like to expand on this to the meat cattle going forward. That is currently taken into consideration. When it has a scale of 1 million tons, the economic value out of that, it's very difficult for me to comment on the economic value in specific terms today.
This is only the milk cattle only. That's what we have heard. When we roll this out to the meat cattle- What is the time horizon you're talking about? At which timing can we expect to see the results out of that initiative? If you can share that with us.
Yes, the priority was the milk cattle because milk productivity of protein is larger, therefore, the requirements of amino acid is larger. Also the nurturing period, we were able to track them better for the milk cattle. Based on the track record in the past, we now have good visibility to roll this out on the meat cattle. Shortly, we would like to implement initiatives for the meat cattle going forward, we shall be able to share the results with you shortly.
This is Fujie. Saji-san, thank you very much for the question. Value Creation Advisory Board's Mr. Baba also could supplement some comments.
I would like to ask him to add some comments later. For AjiPro-L, we have conversations with the top of the global companies and also some other Japanese top management. We have increased opportunities to have a discussion with these people because under COP28, food agri system was identified as a very important topic for COP28. The business opportunities relating to this, especially from the perspective of delivering a positive impact, the United States also and also Europe, all these global sustainability promotion activities are now making progress. Because this person used to be the executive officer of Panasonic, I think this will have repercussions on the electronic industry. I would like to ask Mr. Baba to add some comments in that regard if you are ready to do so.
This is Baba here. In relation to the previous question, I too believe that if there is a 1 ton reduction per one cattle and a savings of 800,000 hectares, when we look at all these numbers presented by Ajinomoto, it seems so large as a potential, like outrageously large. If we check on the actual logic or the background, these numbers appear to be very correct. The economic impact that can be derived out of that, of course, will have to be estimated based on the social changes. I myself attend many different international conferences such as COP or the UN General Assembly. When this is converted into energy, this is going to be a massive number. Depending on industry, the impact might be different from industry to industry.
Having said that, however, if it is a methane or a carbon monoxide or CO2 equivalent or whatever, when these are converted into these numbers and the production per 1 ton as penalty or as incentives, those are calculated in that way, as you may know very well. Right now at COP and after the Paris Agreement, in other many different countries, the NDC targets, the national based targets, the food and agriculture sector has not incorporated any of these impacts. The financial industries and many businesses, the reduction from the agriculture sector, these are not penalized per 1 ton yet. After the Emirates Declaration at the COP 30 in Brazil next year, these will be incorporated in the national targets. That's already declared. For the first time then, I think the landscape will change dramatically.
Like the energy industry or the auto industry, the reduction per 1 ton, I think that target will be set forth for these agriculture industries and other industries as well. The economic value per one cattle, I cannot comment on that, but I have some numbers in my mind, and I can convert them into energy impact. I hope that all the similar things that have happened in the energy industry and the auto industry, when this is applied to this sector, I think this is going to have a climate impact, and I think Ajinomoto, if we are a client solution provider for the GHG of the food sector, this is likely to have a significant impact, please expect of us.
Just one point that I wanted to confirm is that in Australia, when their meat cattles account for the large portion, the carbon tax is already implemented and the carbon tax savings, I think is already utilized as the raw material in AjiPro-L. Using it as a funding sources, I think the economic value can be realized. Is that what you're talking about?
Should I comment?
Yes.
Tax savings, of course. Tax will increase in a linear fashion going forward for methane and also for not only derived from agriculture, but this is like a methane credit, or like 30%, 50% up to agriculture, and 30% is applied to oil production. For 1 ton of methane, like $3,000, some thousand dollars. Those are already talked about. But each company will be penalized.
When they are penalized per 1 ton, the emission per 1 ton, if they're not able to reduce that, then they will be penalized and the cost will associate with that. Of course, they will have to compare with the economics of developing the technology that will reduce the methane emission.
Okay, I got it. Thank you very much.
Thank you very much. Next question from SMBC Nikko. Hara-sa n, please. Hara-s an, do you hear us? Please unmute and ask your question.
Sorry. This is Miyazaki of Goldman Sachs. I'm sorry. May I?
Yes, Mr. Miyazaki, please. I'm sorry, Hara-s an, you're next.
Thank you very much. This is Miyazaki from Goldman Sachs. I have two questions. First, as was pointed out by Mr. Saji on page seven, sales increase. I wanted to know how this is calculated, whether this is a unit or by supporting cassava farmers will develop further globally, 4.5% here. I'd like to know more about this. You mentioned every year, 40% starch yield per hectare. Is this 40% every year? Or if things continue, and if that is spread throughout the years, this is going to be 40% finally? I'd like to confirm this.
In addition, I'd like to know background about approximately 4.5% increase in sales you're talking. Another question is on page, in the same material, page six, the corporate value creation and how you have calculated. I would like to know how you're thinking about the disclosures, creation of value. CDMO have been explained today. I think for Ajinomoto, B2B business, you have a less quantitative numbers or disclosures. Because of the limit, the capital cost, there may be a risk of increasing capital cost, I want to know about this disclosure. By having more disclosures, then you will be able to lower capital cost and sustainability, there may be room for further growth in that area. Do you see that? Do you find those areas possible?
Yes, Mr. Miyazaki, thank you for your question. The first question will be answered by Sasaki. The second question is going to be answered by Mr. Mizutani.
Yes, thank you very much for your question. This is Sasaki. The first question on page seven for the sales, as you say, in Thailand, yes. This is the estimated calculation we made in Thailand project. Yes, in a circulation economy, especially in Thailand, with the support from the farmers, we have find this and various products are related. We have connections clearly there. Therefore, in this circulation and from the crops that we have taken in farmers, fermentation and bringing it back to the farmland of Thailand, we want to support this. How much? For example, if the value is added, can a customer buy them? We have made a survey, a very big survey, and based on those surveys and figures, we had estimated this cost.
This is Thailand based on their circulation economy. For the starch yield, I'm sorry, my explanation was pretty difficult. It's in fiscal 2022. The actual starch yield that we used and based on this, if we were to make contribution to the farmers vis-à-vis the actual figures, we will be able to make improvement by 40%. If that is the case for one year, 40% increase. Of course, if we have the effect, then linearly, it may not be increasing 40%. But from 2018 to 2030, if we had estimated that there was not increase, then this contribution will be 40% every year. For sales, rather than unit price hike, that means that the volume will be increasing by 4.5% you mentioned.
That is the basis of your estimation?
Yes. Both. For both unit price hike and the volume increase. Comprehensively through those initiatives, I think we have conveyed the message that we are such a company, and we have calculated based on consumers' perspective changes toward us.
Thank you very much.
Miyazaki-san, thank you very much. Miyazaki would like to answer to your second question. Yes. We are doing not just in the food business, but also in the healthcare business. Sales is going to increase, and that means the data is going to increase. To that end, we have various initiatives through the strategic meetings we have been discussing for the disclosures on healthcare in the third quarter. Healthcare by each segment. We have mentioned about the market condition, and how we think about them, and how are we going to approach them by having the rolling forecast.
Of course, for our current situation and for our near future, yes, we want to fulfill disclosures so that we could contribute to the reduction of WACC. Yes, for CDMO, compared to other companies doing the similar business, I think your disclosure is sometimes lacking or has been less than others, so I want it to be fulfilled. Mr. Miyazaki, thank you for a good advice. Yes, we would like to enhance our capability in that area as well. Thank you.
Thank you very much.
Now we'd like to move on to the next question from SMBC Nikko. Hara-san, please begin your question..
Can you hear me?
Yes, we hear you loud and clear. Thank you.
This is ESG analyst Hara from SMBC Nikko Securities. I am the colleague of Takagi-san. Regarding the social and economic values, double materiality, I think that concept is very strongly rooted in your company. This is permeated very well amongst the employee base, and that's what I learned from your comments. That sounds very wonderful. What I would like to ask here is about the EU Corporate Sustainability Reporting Directive requirements. Your response to CSRD, not only you are disclosing information, but also the high-quality data can be provided. I think you are one of those limited companies who are capable to doing so. What are the discussions taking place in order to respond to CSRD?
Because your sales in EU accounts for quite a large bulk, I think you are subject to disclosure, what's your thoughts?
Hara-san, thank you very much for your question. At our executive meeting, we are discussing to increase our capability for disclosure, and the project is already launched. We are trying to further reinforce our capability for disclosure. The Sustainability head, Takatori-san, is the key person for that activity. Starting April 1st, Takatori-san will spearhead this activity, I would like to ask Takatori-san to explain.
Hara-san, thank you very much for your question. Disclosure. The statutory disclosure requirements on a global basis. The rules have been established in many different corners of the world. For CSRD, as Fujie-san mentioned, we are taking all out efforts at the company to prepare for this.
We are now reading into the details at the corporate level and also at the local entities, subject to the requirements. We are having a close communication with them. Right now, we are in the middle of making the necessary preparations. Gap analysis will be done, and we will identify the challenges and issues. For double materiality, what is materiality? We are currently finalizing on these points. Of course, there's a long way to go from now onwards, but we would like to make sure that we can make proper disclosure. Of course, in terms of quality, just like Ajinomoto, we would like to present high-quality information, we are more than ever excited about this. Thank you very much for your question.
I'm sure your answer, thank you. That we understood.
Thank you very much, Hara-san. Next question. Mitsubishi UFJ Trust Bank, Mr. Hyogo. Hyogo-san.
Hyogo from Mitsubishi UFJ Trust Bank. I have two questions. First, CVC. Evaluation to CVC. Yes, you have mentioned and explained about CVC return on investment. What is rules and regulation within your company? How are you going to proceed with that, along with the important themes of your business? That's important, but the timeline as well as if something goes wrong, what would you be doing? I want to know about the rules regarding CVC. Second question is about disclosure of sustainability in important themes. Yes, by businesses, you are doing various important things, and they're well-sorted. Sustainability Advisory Council, what is this doing? How do you prioritize in Sustainability Advisory Council? How are you sorting them out? Those are two of my questions.
Thank you very much, Mr. Hyogo. The first one, Chief Innovation Officer Vice President Mr. Shiragami is going to answer. Second is going to answer by Morishima-san and also from Professor Davis.
Thank you very much, Mr. Hyogo, for your question. As for CVC operation, first, our way of thinking is that financial return is not our target. Strategic partnership or such things are our goal of CVC. To be more specific, making R&D, CVC strategy, M&A consideration. We have four growth area roadmap, if the partner matches, or technology matches, or innovation matches with that roadmap, that is going to be first picked up, by improving the intelligence capability, we are now searching for appropriate partners. We would like to find out whether that is going to be a good partnership or making investment that is evaluated, how we will make this investment or not.
The governance itself, yes, we want to be agile, so we have a venture investment committee, if that is less than JPY 150 million, that is going to be decided by this committee. Regularly, that situation is going to be reported to BOD and executive meetings. That is the governance about the CVC.
Yes, well understood. Thank you. Means that the investment or the amount is not going to be more than that. I think that's the governance, right?
Yes.
Thank you.
Thank you very much and for the second question, I'd like to answer. For Sustainability Advisory Council, the themes, and what are their priorities, and how are they operated. Sustainability Advisory Council, as is shown here. It is linked to BOD and materiality.
In implementing the materiality, how are we going to disclose this progress and how are they going to do the partnership? Of course, support the BOD in monitoring these activities. From fiscal 2023, advanced materiality, how are we going to implement, and how are we going to use them as our businesses? This is linked to the executive committee execution. Sustainability Committee and sustainability-related staffs are going to work on this. They need to understand what is important, that needs to be linked with the execution. There are about 12 initiatives. This is the first year. Within the company and the groups, materiality needs to be incorporated into the actual businesses and activities. Executive and execution teams have been doing this. For each of the initiatives, we are providing this in sustainability data books and various media.
We are disclosing them in those reports with the stakeholders' relationship including others. In the second phase, the Sustainability Advisory Council is now working on how are we going to relate that to the stakeholders. This is linked to BOD, they are advising how this is more effectively used and implemented. They're providing various opinions. Yes, please.
In that sense, we are having trials and errors, we are making improvement. Is my understanding correct?
Yes. Rather than errors and trials, we are now making evolution every year. This year, the initiative is going to be evolved. Every year we review, we are trying to upgrade the implementation levels. Thank you.
Thank you.
Sorry, Fujie-san. How about you, Professor Davis?
Yes, thank you. Morishima-san mentioned what I wanted to say. First generation in this council made this grand design, and we have provided this to the management side. That ended a year ago. Based on that result, the Sustainability Committee on the execution side had discussed their goals and targets and initiatives. In the second generation Sustainability Advisory Council, this is going to start, and execution side is going to incorporate the grand design into the business. The policies, strategies, results, and initiatives, how those would be communicated outside the companies. Stakeholders listening and thinking that this is just an ordinary, simple sustainability. We don't want to happen that. We want to improve the level of quality of the communication so that the stakeholders would understand us. Second generation council is receiving that report regularly, and Sustainability Committee is going to report us that regularly.
That I think the explanation that was made today as on a regular basis reported to BOD meetings and executive committees. I'm not representing BOD, but as part of BOD, I'm saying that as the director.
The goals to achieve materiality, I'm really interested in and focusing on that. As was mentioned, how is that linked to BMX transformation? How is that bearing fruit or not in that area? That is the focus.
Yes. I think what I'm saying is aligned to what Morishima-san had mentioned. This is quite difficult to say. There's a checkpoint of materiality each stages, so we want to have higher transparency, and we want to make the regular reports. BMX, which is in back of that, we want the management and the leaders, they are well focused executive side. I think I am evaluating that highly. Thank you.
Thank you very much. Yes, very advanced trials. I understood your trials. My request is that linkage with corporate value that is going to be evaluated and linked to corporate value is WACC and reduction of the capital cost with the earlier slide. Yes. What you have mentioned and explained, how that is actually directly leading to the corporate value enhancement. As one investor, I'm interested in that point to be shown.
Thank you very much, Mr. Hyogo. Yes, that impact path, visualization, disclosure, we would like to do more in that area. This is have high priority. I think we have explained to you a few of the ideas that we have. Of course, we want to deepen this and so that we can provide you importance of this is leading to enhancements of the corporate value.
Thank you, and expecting a lot.
Thank you. Hyogo-san, thank you very much indeed.
The next question from Norinchukin Value Investments. Kimura-san, please begin your question.
Hello, this is Kimura. Can you hear me?
Loud and clear. Thank you.
Thank you very much for appointing me. I was very pleased to hear this very interesting presentation, such as the well-being visualization through your recipes and food product. That was very astonishing that you're working on this because personalization is now promoted in the world, and the biggest well-being for personal level is, I think, happiness. Visualizing happiness is something you're working on, which I think is wonderful. I would like to ask this question. The many businesses that you're undertaking in Thailand, such as your collaboration with University of Oxford, I think you are trying to visualize many things.
At this point of time, in your engagement and communication with the consumers, what is something that is only uniquely available with Ajinomoto? I am sure that you are doing something unique as Ajinomoto as your engagement. I think that forms the first step of your enterprise value or corporate value. What are the appeals that you are making to the consumers? Going forward, how are you going to evolve them and advance them going forward? If you can elaborate on those points, that would be appreciated. Thank you.
Kimura-san, thank you very much for the question, and we appreciate your day-to-day support for us. I would like to talk about the general comment, and then Morishima-san can follow up later. As you have rightly pointed out, for the consumers, we have to solicit their understanding.
The corporate brand activities is something that we are working on in order to gain the understanding of consumers. That's one thing. In addition, previously, we had this approach centered on selling our products. However, Seikatsusha or consumers are now facing many different social challenges, and we are trying to address and respond to them. That's taking place on many different fronts. For example, when it comes to Indonesia, the sales team was called the sales team in Indonesian language, but we are now calling them as health providers. It's not only about the physical health, but also it encompasses psychological health as well, mental health as well. We are going to deliver them to the Seikatsusha. We are already promoting these initiatives, and in many different countries, many different engagements and activities are taking place.
In March, we held a global roadmap meeting, and those activities are shared in those forums so that we can deploy them horizontally across many different regions. The more we do work on these sustainability initiatives, the more the engagement of employees will increase. We have what is called the SR as internal jargon, sustainable relations, and ER, employment relations, and IR, investor relations, and PR, public relations. These four elements will have to be linked together. With that in mind, we are taking many different actions around the world. Mr. Morishima-san, I think I'm sure you have some additional comments.
Well, Kimura-san, thank you very much for your question. Visualizing happiness is wellbeing. I think I'm happy that you have took up this point.
Wellbeing is the purpose of the company, as you can see on Fujie-san's presentation number six, you see the materiality framework. Also, as Mr. Davis mentioned earlier, after all, the wellbeing and value creation towards wellbeing when we do this, technical advancement and science is very needed. I think we are now trying to transform the quality of happiness. By doing so, I think for the first time we can deliver a very tangible impact. The approach to Seikatsusha is very important, as you rightly pointed out. Of course, this time around, the happiness of recipes and, of course, we're eating together will bring about happiness. Of course, I talked about the academic elements in my presentation, but also for the Seikatsusha, we would like to communicate this in a very easy-to-understand way to the Seikatsushas as well.
That Ajinomoto science, we have this community site with the consumers, and more than 8 million views have been already generated, garnered through this. Many consumers are visiting the site. We would like to approach the consumers by providing an easy-to-understand explanation on the sites. Of course, for the future, we would like to have the Seikatsusha participate in our initiatives. That would be lovely if we can do so. As one example, at Ajinomoto [Reisoku], Frozen Food, which is one of our group companies, we have this what is called a Fry Pan Challenge project. I think this has already covered by some media, I think you have showed, but maybe some people are having difficulties to have a very good performance when they fry things because in some cases, it could charcoal.
I think in a very short period of time, we received many different ideas regarding a high probability of delivering food dishes in a very perfect manner without having them burnt. I think those are the initiatives we would like to strengthen going forward in order to strengthen our engagement with the Seikatsushas.
Thank you very much for the answer. Delight, providing delight. I'm sure the consumer staple companies should also focus more on delight and because they are having troubles in trying to quantify them. In your case, you are now addressing the very basics, and you have a very solid value chain. Maybe you might be able to do this and quantifying this delight. I have high expectations to you going forward. Thank you.
Thank you very much, Mr. Kimura. We will try to live up to your expectation. Thank you.
Thank you very much, Kimura-san. Next question. Tezuka-san, please. Tezuka-san?
Thank you very much. Do you hear me?
Yes, it's clear.
Thank you. This is Sumitomo Mitsui, Tezuka speaking. In the sustainability material, [H SVC], you talked about the blue [refrigeration] and how this has penetrated the strengthening customer relationship, that will lead to increase of the sales, and that will lead to the economic value creation. Whole company, I think you have a very good relationship. By business and making it for your own and how this is being created into actual business, do you analyze that? Can I check on that point? Another point. In his opening remarks, Mr. Fujie mentioned that page nine, 1 billion people's healthy life expectancy should be extended. You mentioned that this has gone to 880 million. You have been able to progress. In order this to be linked, aligned to the economic value, I think it will take a bit of time. Is that my understanding correct?
On page eight, by theme, you mentioned that positive impact creation and about this 1 billion people extending the healthy life expectancy. Of course, this is not directly linked, but how are you evaluating this and providing positive impact creation to your company?
Yes. First question, Sasaki-san would like to answer, for your second question, I would like to answer.
Yes. Thank you very much for your question. On page five, this is how we have been able to circulate this around to our employees. Yes, today we have focused on umami seasonings, the businesses, and mentioned in detail. This creation of value, if we divide that into each of the businesses, yes, they are dividing this and classifying this and it is now visualized more and more. Two years ago, in the training session for the executives, we had done this work by team. Several tens of thousands of lines come down and they all make up one circulation, and we have challenged to that. Two years have passed, and we now have more visualization. For the economic value creation objective, to be more specific, there are some things that is not yet ready to show you in figures.
Today, we have discussed what we can, and we would like to do our best so that we can bring this circulation more in detail. ASV management is highly penetrated in our organization. All of our global employees are working on both the economic and social value creation, and I would like to talk about this. That is the first question.
Thank you very much, Tezuka-san. For the second question, 880 million people. This providing these umami seasonings and also the salt reduction products, this is linked to those. For those economic values, yes, together with social values, it is creating value, and we can see those in figures. This is leading to our organical growth. One billion is just a point to go through for us. What is expected from the society to Ajinomoto, the materiality, I think this is linked.
This is also incorporated, and we would like to evolve this. We are now discussing internally how to do this. At an earliest possible time, we would like to explain to you the evolved outcomes, making reviews and how that is going to lead to the positive impacts. As was mentioned earlier by Mr. Sasaki, we have so many lines coming out from various departments, and the initiatives and activities of such department would lead to what figures will be shown, I think.
Yes, thank you very much for your answer. If possible, in the explanation of the impact path, we would like to know leading indicators that could create positive impacts. If there are any advanced indices that would show your future growth as well, that would be very helpful. Thank you very much.
Yes, Mr. Tezuka, thank you very much. Yes, for the leading indices. Yes, we would like to put this into our mind and review.
Thank you very much.
Thank you. I'm very sorry.
Well, we are very sorry we are running out of time already, so this will be the last question for today. Daiwa Securities, Morita-san, please begin.
Hello, this is Morita from Daiwa Securities. Hello. Thank you very much for giving me this opportunity. As one theme, you talked about green transformation, and this field offers great potential for the future, which I agree very much. On the other hand, this field, everybody has identified that this is a very important field. It's very difficult to quantify, and there are also many challenges how to fund those activities. The first question that I have is that, at your company, you have already presented some estimate as to what kind of impact is expected if your products are used. Are these already authorized numbers, or it's just calculated and you're still in the stage of requiring further discussion?
I just wanted to confirm that point. This time around, biostimulants, AjiPro-L, you have shared with us some initiatives that you're undertaking right now, but your competitors or some additional actions might be taking place by your competitors. In that regard, how competitive are these initiatives for you? To what extent the farmers will select your product vis-à-vis the competition? What is your assessment of that right now? Also regarding the impact, the impact is somewhat skewed. I think in order for you to realize them and improve the achievability of them, what additional exercise are needed? Are you going to make a huge amount of investment in order to deliver impacts? If you can elaborate on those points, that would be appreciated.
Morita-san, thank you very much for the questions. I would like to answer those points, and then maybe other members, Sasaki-san or Morishima, can add some additional comments if need be. Regarding the first point
In GX, green transformation, AjiPro-L, for example. Using AjiPro-L, already greenhouse gas, GHG, can be reduced. Scientific evidence is already derived. We have already obtained such a scientific evidence as a result of many different trials and experiments. Currently, the global dairy manufacturers and livestock manufacturers, we have a conversation with the top management of these companies. I myself have such conversation. The POCs are now taking place together with them in order to verify those numbers. Not only Meiji, but we are promoting these activities inside and outside Japan. For example, for milk cows, the methane gas emitted out of them, if they utilize our products and services, a 10% or more than 10% reduction of methane gas can be expected. That is already proven with evidence. We would like to further promote the verification activities of these numbers in multiple countries.
Multiple projects are now taking place in multiple countries. I think the achievability is now very high because of these verifications. I have an individual discussion with the CEOs of many companies, and this is leading to commercial activities. With COP28, the Emirates Declaration on Sustainable Agriculture, Resilient Food Systems, and Climate Action is now issued, there's a strong interest and desire to work together with Ajinomoto for these areas, and that's one thing that I wanted to share with you. In that environment, of course, as you rightly pointed out, do we have competitive advantage? Is there any entry barriers in that regard when it comes to AjiPro-L? A similar product is already provided by another, a different company. When it comes to efficiency, our efficiency is much more superior, significantly superior compared to the product of other companies, which is proven by data.
We are showing these data, and together with customers at those experimental farms, we are moving forward with these experiments and verification. As for biostimulants, for example, in plants. Biostimulants can be regarded as the supplement of plants. Leveraging AminoScience, the formulation, we have a lot of evidence data. We believe we also have a lot of competitive advantage in this area as well. We would like to develop a proper entry value on the part of our competitors so that they won't easily mimic. In order to do this, we have to improve the achievability, attainability. Of course, we will have to make our own efforts in that regard. As I mentioned earlier, at the same time, we would also like to work together with other partners who can join forces with us.
We are currently working to increase the circle of such partners in the field of bio and agriculture. Just like energy sector and automotive sector and the electronic sector, a similar trend is now manifesting itself. The Value Creation Advisory Board, Baba-san, has a lot of insight in this area. What kind of lobbying activities are we engaged in? What are the rule makings that Ajinomoto is going to take part in? Of course, Ajinomoto alone, we are not sufficient in terms of making an impact. We shall work together with other partners, and also have other lobbying activities involving the government. Those activities are now taking place. Maybe Morishima-san, if you have any supplementary comments, please add them.
I'll be okay.
Just one point. In this field, is it right to assume that you already are projecting this picture that Ajinomoto is going to be the main player in this field?
Yes. Especially when it comes to AjiPro-L, I believe we are the main player in this segment. All the players, the key players have changed over time. Previously, the increase in the milk production of milk cows and the increasing the production of meat cattles was the central focus. Nowadays, the GHG reduction and sustainability efforts are now added on top of them. When it comes to biostimulants, a similar trend is now happening as well. I strongly have witnessed all these activities taking place right now. I think the way of disclosing this to make it easier for you to understand, I think there is plenty of room for improvement, we'll try to improve our disclosure activities.
We would like to seek your advice so that we can further improve our capability to disclose information.
Thank you very much.
Competitive advantage, I would like to learn from you more going forward. Thank you.
Thank you very much. That ends the Q&A session. Thank you. Lastly, Mr. Fujie would like to say a few words.
Today, thank you very much for your participation. Your questions and advices were very fruitful, each one of the advice and opinion, how are we going to address them, deal with them? Yes, we would like to do our best to address them. One supplementary comment. 27th of March, the term end is now near, and I'd like to comment about three things. First, 2023 fiscal year financial results. Starting from fourth quarter, Forge company is going to be consolidated. There is a negative impact.
We want to absorb them as much as possible and up to date smoothly. This is progressing well. Second, in order to achieve Roadmap 2030, the positive impact that has been explained today, we want to generate and we want growth. At the same time, short-term result, short-term performances, I think is very important. Third, for fiscal 2024, excluding Forge impact, we would like to head for high growth in the profits. Including the Forge, we want to also keep a good performance. Continuously, we would like to have your support and cooperation. Thank you for joining us today. Thank you.
Thank you. That would end the IR day today. Thank you very much for your participation. Thank you