Good morning, ladies and gentlemen. Thank you very much for taking time out of your busy schedule to attend the presentation titled, The Purpose Driven Management by Midterm ASV Initiatives 2030 Roadmap. My name is Kaji from the IR group. I'll be your emcee for the event. Today, we have a hybrid type event, and there may be some time lag in the audio services between the venue and those attending online. Please be advised. Let me first introduce our attendees. Representative Executive Officer Fujie. Nice to speak to you all. Representative Executive Officer, Executive Vice President Shiragami. Nice to speak to you all. Executive Officer and Senior Vice President, General Manager, Food Products Division, Masai. Thank you very much. Executive Officer, Vice President, General Manager, AminoScience Division, Maeda. Executive Officer and Vice President, Supervision of Frozen Foods, Kawana. Nice to speak to you all.
Executive Officer in charge of Sustainability and Communications, Morishima. Nice to speak to you all. Corporate Executive General Manager of Global Finance Department, Mizutani. Nice to speak to you all. We have a total of 17 attendees today. The session is scheduled for 90 minutes. First 30 minutes will be Fujie-san's presentation, which will be followed by QA. The materials are posted on the IR website for your perusal. Today's session will be recorded, including the QA session, and will be posted on the IR website at a later date. Please be advised. Now we'd like to begin the program. Fujie-san, floor is yours.
Good morning, ladies and gentlemen. Thank you very much for taking time out of your busy schedule to attend our briefing. Those of you who are attending online, thank you very much for your participation.
Today, we'd like to announce the Midterm ASV Initiative 2030 Roadmap. That is the title of the presentation, and I truly look forward to this event. The concrete contents and also our vision, as well as our message, will be disseminated through my presentation, and then we'd like to exchange our views in the QA session afterwards. That is the structure of the meeting. Next slide, please. Let me first start with this slide. This covers the agenda for today. Next slide, please. Today, these are my three messages. First, the purpose has been renewed to, and the new purpose has it that we'll contribute to people and community and planetary well-being through the power of AminoScience. Second, we terminated the MTP formulation and then evolved that into the MTP, excuse me, Midterm ASV Initiative under the management transformation.
Number three, we'd like to shift from structural reform to growth. Next slide, please. Let's start with the evolution of our ideal state. As you can see on the slide, in addition to the original purpose, now the new purpose has it that reflects our commitment to contribute to the well-being beyond. That was the story behind the update of the purpose. Then in terms of the outcomes, two outcomes towards 2030, which is to make contributions to the environment and also to the food and nutrition contribution of. Start with the AminoScience. Since inception, by adamantly pursuing the power of amino acids at Ajinomoto, we've accumulated a diverse set of knowledge involving materials in functions and technology as well as services, and this AminoScience is a collective term encompassing all these aspects. This is the source of our competitiveness.
Amino acids are very interesting. Including myself, those members attending today, a lot of employees are a great fan of amino acids. Amino acids are the building blocks of the body, and it presents the taste, as well as nutrition and physiology, as well as reactivity functions. Those are the four separate functions served by amino acids. Since inception, we've been in the food business and nutrition business. We've deployed this texture and taste functions as well as the power of amino acids in our businesses. Going forward in food businesses, both in food as well as AminoScience, we'd like to pursue the function of amino acids down the road. Next slide, please. We also evolved our philosophy. Under a slogan of Eat Well and Live Well, this is upheld and it remains unchanged. We'd like to simplify our message.
As I mentioned earlier, the purpose has been renewed and it's the AGW, Ajinomoto Group Way. These were recombined into the new slogan or into the new philosophy. Next. This shows based on the report submitted by Sustainability Advisory Council, SAC. We had multiple stakeholder dialogues, and we identified materiality as a group. As you can see, we incorporated four perspectives and 12 conditions or the requirements. This cycle will be accelerated, and this is the essence of our framework for us to create values down the road. This will be also reflected in the midterm ASV initiative as well. Furthermore, this Sustainability Advisory Council, the chair, Mr. Davis, who has been the chair of the council, will be the outside director after the June event, the shareholders meeting.
From a director's point of view, he will continue monitoring the entire process for the materiality going forward. Next. This shows the definition of midterm ASV initiative. What do we mean by that? To put it simply, we'd like to adamantly pursue ASV with full-fledged or full determination and become more capable of execution. There are two reasons why we are evolving a midterm ASV initiative. One is to exit the MTP fatigue that we've been creating. Second is to create more capacity or becoming more capable of executing the plan. Regarding the 2020 MTP, the structure phase we were in, structure reform phase we were in. Ahead of one year, we are entering the regrowth phase. This growth will be further accelerated and further expand its scope.
To do so, we'd like to focus on the core businesses as well as BMX, Business Model Transformation, that will drive growth. Through these two pillars, we'd like to shift our growth and focus on the four BMX areas, four growth areas that would offer values. Those will be the four areas where we'll be shifting growth to generate high profit business, as well as achieve a robust structure that could attain 50/50 food and AminoScience revenue. It will be not just a food company, nor an AminoScience company, but we'd like to achieve a very unique entity combining those two elements. The management team thinks that it's really a proprietary for Ajinomoto. By 2030, we'd like to achieve CAGR 10%+ in business profit growth, as well as ROIC or ROIC 17%.
Those will be the targets we'd like to attain by 2030. In addition, of business profit or business growth, BMX core areas will generate by 2030, incremental revenue will top JPY 300 billion. That is our plan. Business profit incremental growth. 40% of the business profit incremental growth will come from these BMX four areas. Next slide, please. Let's start the review of the phase I of 2020 and 2025 MTP.
As you can see, thoroughly, we have made restructuring and steadily we had achieved organic growth and focusing on core businesses and asset light measurement. Both business profit as well as sales, we were able to go into the growth trajectory ahead of schedule. Next, please. As a result of high evaluation of our initiatives, I think our market capitalization also are increasing. We had enhanced cash generation capabilities, in addition to share buybacks, we are able to achieve a sustainable increase of dividend payment. I think the shareholders' value has been enhanced. At the same time, including myself, the management members have always been studying and thinking how we can enhance our corporate value. We have employees, shareholders, group, and those participants will be able to get 100 units of our shares in June.
All in all, our organization as a whole is trying to enhance the corporate value with including our employees. Next, please. This is the reviewing toward our goal for the MTP. I think we have an outlook that we can achieve everything. Next. Is the important and focusing strategies for the 2030 roadmap. Last year, we issued ASV report. As is mentioned in this report, we have a calculation formula for corporate value. Based on this, we're trying to improve our corporate value. I think important points three are written for the 2030 roadmap. One, management transformation toward midterm ASV initiatives. Two, evolve portfolio management. Three, investment to intangible assets with connection to ROIC3, of course, and speed up and scale up. As for management transition Challenging, ambitious, 2030 ASV metrics are being raised.
Back casting from that, we would visualize using data, the reality and its progresses, we want to do a rolling forecast, and flexibly come up with countermeasures. We want to brush up our exercising and capabilities continuously. For example, in China and the Philippines, where I worked in the past, I did a similar thing. Those members here have also those experiences. Based on that, we want to brush up and enhance our implementation capabilities and hence improve the corporate value. How about the single year forecast? Of course, we would be disclosing them, so please feel safe about it. For fiscal 2030 outlook or forecast, this May, we have a schedule to announce the financial performances. We will announce, disclose the target. Next is about the evolution of portfolio management.
We saw steady structural reform, but to shift to a growth trajectory, we need to add some other perspectives. Using this page and the other page, we want to explain more about this portfolio management. As you can see on the horizontal axis, we have the growth trajectory with a tailwind, and on the horizontal axis, we have shown you a competitive advantage. AminoScience. I think we want to shift to the businesses where we can take advantage of that capabilities. There are four things. Collect, meaning that we want to collect all the management resources into the area where we can grow. Change, the business model should be changed utilizing the tailwind or maybe in a different structure. Start, beginning for new businesses, we want to seed. Stop, meaning that if there are some businesses, we need to make some decisions.
We need to decide what to do, including the withdrawal and spin-off of functions. Doing those four things, we want to keep and maintain our business portfolio. Currently, as you can see, for the product and the services on the left-hand side, we have that organizational axis. We want to change them along with the four values that we provide, healthcare, food, wellness, ICT, and green. Exceeding that of the organizational conventional business structures, we would like to fully utilize the tangible and intangible assets at an appropriate timing. We want to evolve our organization. Also from April, Ajinomoto Group as a whole, we want to enhance the marketing capabilities. We are going to establish Marketing Design Center and also procurement strategic department.
In Japan headquarters and North America, we want to build an innovation strategic team so that they can provide intelligence regarding investment in M&As. Next, please. Now I'd like to talk about four intangible assets that we think is very important. This is only Ajinomoto can provide, and we have been discussing this in our management group meetings and so forth. First, about the technology. As for the taste design technology and leading bio fine technologies, we have AminoScience. Using the amino functions, we need to have digital capability so that we can be more closer to our customers. I think this is the center of this activity. The second is about the human asset, meaning that we need to have human resources where they can match our technology with the customers' needs.
Also, our strength is that we have a person who can go along with the customers and the site. We want to hire and educate more of such human resources and enrich the human resources. In page 54, this explains about how we want to make investment in the human resources area. By 2030, we want to make investment of JPY 100 billion worth in this area. For the customers' assets, B2B 70%, B2C 30%. 60% for the overseas and 40% Japan. We are diversified. We have diversified customers. This is very unique. Our assets. Organizational asset, meaning that adaptability to the local areas or local way of doing things. For example, in the Philippines, I think where I worked in the mountainous area where we had to go 3,000 steps, in those stores, in those regional locations, we see Ajinomoto products.
I visited a house in the Philippines and saw how local people would actually use our seasonings and how they have been used in their cooking. I think this type of marketing capabilities needs to be fully utilized. I think product services and sales way of things are important so that we can speed up and scale up the innovations happening at the site. Next slide, please. This shows initiatives connecting ROIC Tree and initiatives to strengthen intangible asset investment. We want to enhance investments, and in 2030 we want to make a 17% ROIC and EPS three times that of the figure in 2022. How are we going to educate this? Next is using the function of the AminoScience thoroughly.
Regarding the market growth potential, we'd like to focus on high growth potential markets and also the areas where we can contribute to social value creation. That is a basic principle. Next slide on. We'd like to introduce our activities in the four BMX areas to achieve exponential growth. Of the four BMX areas, one is healthcare. The core businesses already exist, so we'd like to continue growing those core businesses to realize further growth. We'd like to create a next growth driver, namely nucleic acid, as well as nucleic acid medicine, as well as the cell culture media for regenerative medicine, as well as medical foods. Those are the emerging strategic businesses. Therefore, we'd like to identify and we'd like to focus our efforts to further grow those areas. Next is food and wellness. In the consumer foods, we'd like to strengthen our area strategy.
Also with the frozen foods, we'd like to shift from structural reform to growth trajectory. Through that, we'd like to further enhance or expand our revenue. By integrating food and AminoScience, we'd like to further accelerate our growth. Regarding area strategy in ASEAN as well as Latin America, we'd like to drive a solid growth, organic growth. In frozen foods, North America as well as Europe will be the center for the growth of Asian frozen foods, including Gyoza. Especially with Gyoza, that is rapidly growing. Ajinomoto is the top brand in Japan, but the Western sales is almost catching up with or surpassing the sales in Japan. Also in Western markets, more than three times or nearly three times in terms of the volume consumption, that is. Therefore, that is driving the unit price growth in those markets.
In terms of the frontier areas, we also like to drive growth. For the domestic businesses, which is also important, by have an overarching view in Japan as well as East Asia, we'd like to focus our efforts on the Japanese products as well. To reach out to each and every consumer, we'd like to create a direct connection. New blockbuster will be generated through this direct linkage as part of the effort. Last December, as we announced, the Ajinomoto's online shop as well as AJINOMOTO PARK, these IDs were merged together, and we now have a total of a top-level number of consumers, and the monthly unique users topped 8.4 million consumers. By utilizing their information, we'd like to conduct test sales through easy channels to launch promising new products.
Now we are seeing planting seeds, and we'll be able to introduce new products down the road. By utilizing our strong AminoScience and our understanding towards diet of consumers all around the world, we'd like to pursue Eat Well and Live Well, those corporate philosophy. Next is ICT. Ajinomoto Build-up Film or ABF, that is. ABF will increase its capacity according to the plan, and we'll also make sure that BCP countermeasures are taken. Next. In addition to PCs and servers, but we'd like to focus on HPC, semiconductors, and new packages. These are the high growth areas of the electronics material market where we can utilize our knowledge as well as know-how and expertise. ABF continual expansion will be further pursued, and the development of new materials as well as new fields will be making progress down the road.
Next is green. We are already seeing expansion in the plant-based protein areas, where we'd like to utilize our deliciousness technology and also technology to design nutrition. We'd like to further improve ourselves, and to create a new food system, as well as develop B2C channel utilizing biotechnology, cultured meat, for example. CO2 in the air is now being utilized as part to create protein. That technology is already available in the market. However, economically and quality-wise, we are facing many issues. Therefore, by utilizing our strength, we'd like to create a method to produce those meat with a good texture in a safe manner with affordable price. That is our one promising area where Ajinomoto can contribute to. Pertaining to the proprietary fermentation technology, we'll be able to develop new materials and to contribute to a sustainable agriculture.
In Spain, there is an office of our subsidiary group, Agro2Agri. By utilizing this biostimulant technology, we can offer agri solution that we'd like to further expand. Next slide, please. Regarding the business foundation strengthening, we'd like to create a lean business structure through these initiatives. By 2030, we'd like to reach EBITDA increase of 1% or more versus 2022. That is our goal. SGD's finance as well as the individual shareholders' ratio will be raised to further reduce WACC or capital cost. Under ASV metrics, as we list the core KPIs and the structural KPIs in the 2020 MTP, those will be evolved to ASV metrics. ASV metrics consist of economic value indicators as well as social value indicators on the slide. These will be buttressed by the intangible assets, which is also another key element. Next slide, please.
This shows the ASV metrics. On top of the items we already announced, but we added ROE and EBITDA anew as part of ASV metrics. The 2030 ROIC target was raised from 13% to 17%, and 2025 target was further raised from 10% to 13%. For your reference, by 2030, we'd like to triple EPS from 2022 to 2030 or by 2030. Next slide, please. This describes the detailed picture, a growth test by segment. Organic growth will be attained according to the plan, which is shown on the slide. Business profit company-wide in 2025, 12%. That is the target. To secure this, seasonings would like to attain 12%, healthcare 13%, frozen food more than JPY 10 billion. Those are the targets by segment. Frozen foods in the U.S., which is undergoing structural reform.
Based on the recent figure, things are improving now. We would like to solidify this growth. If so, we will be able to attain this JPY 10 billion figure. Regarding ROIC, as I said earlier, was revised upward. On the other hand, regarding WACC, company-wide 5%-6% is expected. Interest rates and other uncontrollable elements are taken into account. We have a conservative view in terms of WACC. However, initiatives will be accelerated to further reduce WACC. That is our effort. Next slide, please. Regarding the social value indicator, by 2030, we would like to halve the environmental burden and also to attain carbon neutral by 2050. We already announced these goals. To achieve these goals, we would like to make a steady progress. Main topic has been GHG reduction, plastic food loss reduction, and sustainable procurement.
Those are the major initiatives that will continue to further propel those initiatives. 2023 biodiversity effort will further evolve itself. Next slide, please. This slide shows the continuation of nutrition without compromise approach. The progress will be announced, and that is measured as the extending healthy lifespan for 1 billion. The progress will be disclosed from 2022 and onwards.
Under this approach, deliciousness, food access, as well as regional individual diet will be pursued without compromising any elements. We would like to achieve low salt, low sugar, and low fat, as well as promote the consumption of protein and vegetables and foods, fruits. These are the concrete initiatives that we are propelling. The most closest stakeholder, that is the employees, we would like to raise their nutritional literacy amongst our employees. Also, health-conscious employees need to be healthy. Therefore, including those in the management, we would like to make sure that health and wealthy productivity management at the organization level. Next is the financial strategy and allocation of the management resources. Next page. I think financial strategy, we need to talk about the three pillars written here, and the details would be explained onwards. First is the cash.
Organic growth and cash needs to be generated, and we need to accelerate the growth as a whole group. In addition, for M&As, we would be positively considering them, so that by 2030, about JPY 300 billion would be a framework secured for M&As. Of course, we need to do capital investment to support organic growth, and JPY 750 billion is expected to be invested in that area. By doing that kind of investment, the D/E ratio will be in the range of between 30%-50%, and we want to do a flexible shareholder returns. Next page, please. In order to improve EPS continuously, we will be doing three initiatives. The most important is continuous and drastic growth of business profits. As mentioned earlier, through rolling forecast, we want to quickly grasp the changes in the business environment and flexibly come up with countermeasures.
What we are strengthening is to cope with raw material, fuel cost, and logistics cost surge. We want to visualize globally how these are being increasing and controlled. We see that effect coming up. Second is management of effective tax rate. We think that this should be 27%, which was 34.5% in fiscal 2021. We want to make this 27% that fully take advantage of the tax benefits. Lastly, but not least, is the improvement of the capital and asset efficiency. We want to continuously do the flexible share buyback, and we want to suppress the denominator, the issued number of shares, and to minimize cash and deposit at hand, and the excess should be used for the investment and shareholder's returns. Next page, please. This is how we're going to continuously strengthen shareholders' return.
This total shareholder return will be more than 50%, and share buyback would be continued. There are two more new policies. One is a progressive dividend payment and the second is dividend payment based on normalized EPS. The payment will be based on those two policies. As you can see, progressive dividend payment means that even though we have a one-time deterioration of the businesses, we will not decrease the dividend, but we will maintain the level of the dividend. By normalized EPS means that, of course, we want to base the calculation on this business profit, which is less affected by the changes of the profit, like impairment and so forth. Next page shows how well we're doing.
If we are comparing with the actual dividend trend with the theoretical values based on a new calculation, I think we will be able to make improvement for the return of a shareholder return. Lastly, but not least, this is going to be in one page, summarizing what would be the ASV management. Trying to explain to you in one page. Based on this page, we want to steadily manage this company. Through this presentation meeting, I have a request to you, investors, analysts. I think you have an ambition and a will to grow as well as Ajinomoto, for we want to contribute to human planet well-being. That is our purpose, and we want to realize "eat well, live well," and we want to solve bigger social challenges. For that, we need economic value. Meaning we need to have profit.
We want to improve the corporate value. A larger profit would contribute to resolving social issues. How are we going to improve the corporate value and the economic value? Together with you and Ajinomoto, I think the purpose, I think could have some duplications and overlays. That overlays, we want to clarify it together with you. We would like to do our best effort, every effort to grow our business. Ajinomoto Group, as one team, would like to do our best. Thank you very much for your attention.
Thank you very much, Mr. Fujie. Next, we would like to move on to the Q&A session. Today, at site and online, we will be receiving questions. We would like to explain to you how you can do the questions. For those participating in the hall, please raise your hand.
We would point you, we will bring you a disinfected microphone. Those of you who are participating through webinars, please push hand-raising button in your screen, and we would point you. If you are being designated, please unmute your microphone. For those participating from overseas, we have a simultaneous interpretation service, so you are able to ask questions in English. If we have so many questions being raised, I think we are not able to cope and cover all of those who wanted to make questions. I am very sorry about it. We would like to move on to the Q&A session. Please raise your hand at site and on webinars if you have any questions. Mr. Saji from Mizuho, please ask questions. I am sorry. Tsunoyama-san. I am sorry. From Mitsubishi UFJ Morgan Stanley. Mr. Tsunoyama, please.
Thank you very much. Thank you very much for the wonderful presentation. This is Tsunoyama, Mitsubishi UFJ Securities. I have two questions to raise.
Could you please raise one by one?
Yes. I would like to address this question of you. This was a very ambitious and challenging presentation, ASV initiative that was announced. According to the plan, what is the level of your commitment and confidence level from your point of view, especially with the business profit CAGR 10% + or ROE adjusted 18%? In terms of the level of confidence, could you please outline?
Yes. Thank you very much. By 16% growth by 2025, when we formulated a 2030 roadmap, the management level discussed this matter and also each division and each region discussed internally in terms of what is an attainable goal. We thoroughly debated this internally and carefully considered this figure. By 2025, we are already making preparations, and to what extent are they bearing fruits? That is one part of calculation we made. Of course, there is some invisibility yet. However, in terms of rolling forecast that is performed on a monthly basis, we are taking flexible measures. That is the key. In any way, we have a clear path towards these goals and also making sure that progress is being made along the path, and we are more capable of doing so nowadays, including the management level. In terms of meeting these goals, we are quite confident.
Having said that, there are many uncertainties that could possibly happen in the future, and we need to make sure that we can resist those unexpected changes down the road. Thank you very much. I'm just coming to in front of you, I'm suggested that not to cross this line because of the infectious control, I might be moving forward to show the level of my passion. I'm moving closer and closer to you, I'd like to keep standing up here, somewhere around here.
Thank you very much. I'd like to ask you a follow-up question. In terms of profitability, according to the original plan, top line growth remains unchanged, but the profitability, including ROIC and EBITDA, one percent increase. Profitability, compared to three years ago, has changed to reflect your higher confidence. Is that true? What is the background of this?
Yes. Thank you. In terms of the break-even point, that needs to be lowered. That is the requirement from the management point of view. When I came on board, Passion, Purpose, and OE, through those initiatives, we need the OE process to buttress our business foundation and increase efficiency. By doing so, we can buttress and make the business structure more leaner. By raising price increase or introducing PI, we can actually create more profitability. That data needs to be visualized to identify where we are succeeding and where we are not. Where we are failing, we should identify measures to address those inadequacies. In terms of execution level, we are more capable nowadays. That is one background.
Having said that, our efforts need to be accelerated in a much larger scale, especially towards 2030. To what extent can we achieve growth in those four business BMX areas to attain JPY 300 billion? How can we make sure that we attain these goals? We are trying to visualize measures. Another follow-up question regarding business ABF, electronics material business, in particular with ABF. In terms of the CapEx plan that was raised this time, in addition, the BCP measure, you added anew. What are the challenges that you are currently facing, and what concrete measures are you going to take? Could you please expound on this matter?
Let me first provide the outline, and then Maeda-san can provide more details. Well, regarding the market of ABF, that will grow rapidly. That is our expectation. Of course, as we communicated earlier, for PC applications, inventory adjustments will take place.
In terms of PC exposure, it's actually lower than 30%, as we announced earlier. Be it servers or data centers, those applications are on the rise. Of those, ABF is evolving to become a high-performance and high-function item, and that is increasing in terms of volume. Appropriate customers, when they place orders, we need to be able to meet those customer needs, and the investment must be made to meet those customer needs. We are not significantly increasing the level of investment. We are trying to focus our investment into necessary items. Regarding BCP measures, in Gunma and Kawasaki, those are the central areas for BCP initiatives. The details of, excuse me, it needs to be better balanced. Also, another remote area must be also utilized. The details can be provided from Maeda-san.
Fujie-san, thank you very much. This is Maeda speaking.
I'd like to expound on the matter. As Fujie-san mentioned earlier, a few years ago, we expected that high-performance computing, described on page 27, is becoming or advancing on a further accelerated level. It's much faster. 3G, 4G, 5G, 6G, those are the rapid advances that are being made. With the advancement, the required level of specs in terms of insular property and of heat-resistant property, the number of servers is also increasing as well. Volume as well as price wise increase are taking place as well. The speed of transformation is faster than expected, and this is reflected in recent plan. The investment level is rising due to the recent inflation. That is why we calculated JPY 25 billion in order to meet the demand from the market, and that shows the level of commitment.
Regarding the second question pertaining to BCP, as you are aware, de facto standard has been considered, and we have a very high share. If Ajinomoto fails to provide this, then it's going to create a very difficult situation. Therefore, we need to withstand any possible natural disaster at factory level, and that is the BCP taking place. We are already doing enough. However, we'd like to do more before the foreseeable risks, to alleviate market concerns. That is why we are focusing on BCP. That is elevated each year.
Thank you very much.
Mr. Tsunoyama, thank you very much. Next, Mr. Saji from Mizuho Securities. The microphone is yours.
Thank you. I have two questions. I would like to simplify and make it into one. First, as a management in ASV metrics, you have incorporated the challenges. I want to clarify, what part is challenging? What are the high-priority areas? Taking that risks, the plan is to make the return at such a level. I need to know the risks as well. What could be the risks? Then you had designed this to target these metrics. I'm sorry. Can you go each by each?
Yes. First, why challenging ASV metrics? Why have we formulated this?
One thing is that we want to pursue ASV with determination and ambition. We would like to improve operational efficiency, we want to do our best effort. I think if you have a challenging target, that would lead to your growth.
In our organization, in Ajinomoto Group, we had some organization that was able to do, but not some. That's a reflection. Especially domestic food business in the past 5 years, sales and profit, they are not being able to grow their areas. They were able to protect their market share. I think that is culture. Changing that culture and way of thinking into a challenger, I think it could become a driving force for the growth. From yourselves, you have to challenge. Now we see a lot of seeds are being planted. We have Mr. Okamoto as a Marketing Executive Director. He is leading that. Mr. Masai is going to add some comments for this. The risks here. The future, we cannot actually make forecasts.
In our management, we want to grasp risks of such kind as a management risks, and we would like to have a committee and launch a committee that could grasp that. Up until now, we've written underneath the risks, war risks or conflict risks. To that, we did not have enough BCPs. I think we could assume such risks happen in the future, and those are unforeseeable risks. We need to write down what could be, that could become a bigger risk in the future. Mr. Masai, could you tell us more about it?
Yes. This is Masai speaking. I'd like to supplement. For Japan, as was mentioned by Mr. Fujie earlier, in the past few years, we were not able to grow the business as it should have. As Ajinomoto Group, what is the strengths?
First, we have the food and AminoScience. We have B2C and B2B business. We have domestic and not a small, big overseas business. In that matrix, the B2C Japan food is not growing well. Here, I think, in another perspective, we can say that there is still room for growth here. Mr. Fujie mentioned we want to enhance and improve the marketing. We have a Mr. Okamoto, he is going to head the Marketing Design Center, and was mentioned in the presentation earlier. We have a globalized business now. We thought the center was Japan, East Asia, China. That was directly controlled from Japan headquarters. We have a keyword here, exporting from Japan to China, we have seen them accelerating. I think enhancing marketing and have a bird's-eye view of the East Asia, not just Japan.
The risks. Ukraine war, we have the raw material, energy prices surge. We are trying to cope with that situation. For example, competitors analysis and so forth. We have been seeing various risks. Together with the corporate, we are looking at them. Continuously, we want to keep an eye on them.
Thank you. Another thing is a very simple question. I'd like to hear hint from you. This is a relative comparison. In the world, in the consumable producing companies, Japan traditional challenging companies had been now well-established, including their corporate values in the world. Other consumables companies, amongst others, you want to be a leader. From an outsider viewpoint, what is appealing? What is the positioning of Ajinomoto? How could Ajinomoto be a sole company of Ajinomoto providing values as a consumable company?
In a relative comparison with others, what would be the differentiating factor for your company?
Thank you. Yes. I've been troubled a bit. I'm thinking about how we can differentiate. Especially, Value Creation Advisory Board. We launched them last April, and we have some experts in that committee and the management meeting also involved, and we are discussing in that committee that Interbrand. Mr. Namiki is also involved. Interbrand, how are we going to enhance the corporate brand of Ajinomoto from various aspects? He's given some ideas. This is rather multinational corporate brand. How are we going to bundle that globally? That's very important. We've started this initiative already. We have various contents, and we need to make them, and we need to utilize them globally. Eat well, live well. Towards that AminoScience company.
I think we need to have that recognition globally, we are thinking about what we can do for that. Through those initiatives, I think in each of the countries, not just the members in the communication and PRs, various members' and employees' engagement and passion would be increasing, I think, through those efforts. In Indonesia, we have health provider initiatives. Not just people, but we're thinking about the planet, the health, meaning that the paper package instead of other packages, and they're selling well. We have the video made, in Indonesia that is shown around, and the other region members are also seeing that video. The Philippines and in other countries, they want to make the same video of such.
Towards eat well and live well, how can we fully utilize AminoScience and contribute to the wellbeing of the human being and the planet? I think that could be a trigger and the roadmap towards our goal. We have that plan. Today, we have Mr. Morishima in charge of communications. In that aspect, he's also in charge of Sustainability. Sustainability and communication and corporate brand. I think she is heading that department and doing some various initiatives, so she could explain to us some of the initiatives. Thank you for your question.
This is Morishima. I would like to compliment Mr. Fujie's comment. As was mentioned, AminoScience. With AminoScience, we want to contribute to the wellbeing of the human beings and the planet. That is our target, we want to have a shared view by our stakeholders as well.
As for the corporate brand, still so far, we were having a discussion based on B2C, AminoScience B2B is also important, we want to communicate that to our stakeholders through our corporate brand. As was mentioned earlier, Sustainability in various divisions, corporate, we are thinking about how we can be friendly to the Earth and the health, for example, to the consumers and. Ajinomoto, it is a company providing traditional seasonings with safety. We are more than that. Through communication, we would like to strengthen that Sustainability. Doing is very important, at the same time, communicating that to the stakeholder and making them understand and having their support is also important, I think. I would like to do our best in that aspect. I'm looking forward to see that. Thank you.
Thank you very much, Mr. Saji.
Those attending from the webinar, we have many questions. We'd like to invite questions from those attending online. If you are designated, please unmute and identify yourself and mention your question. Next is Yoshida-san, J.P. Morgan Securities.
This is Yoshida speaking from J.P. Morgan Securities. Thank you very much. I'd like to ask two questions of you. First, pertaining to the 4 BMXs regarding healthcare. When you mentioned that the strategic core businesses will be driven to propel growth, you earlier mentioned this as well. To what extent are you going to accelerate the growth under these strategic businesses? Could you be more specific under healthcare? During your presentation, you mentioned medical food and cell culture media. You are planting seeds, I understand. In terms of the entire healthcare business, how is the growth being accelerated and contribute to the overall growth expansion that We have high hopes for the business.
As we have announced earlier, many seeds were planted. In terms of oligonucleotide acids, customers are placing orders and the pipeline is growing. Regarding the regenerative medicine cell culture media, we are already planting seeds and bearing fruits. Those will be the areas that are driving future growth. Can be certainly achieved. Shiragami-san.
Thank you very much for the question. This is Shiragami speaking. I'd like to provide some more details. Regarding the AJIPHASE acceleration, as we have communicated this on the IR events Driver and CAGR 20. That is the bold target. To be shifted to AJIPHASE. Part of them can be shifted to AJIPHASE.
Tokai Plant, as well as Belgium Ajinomoto OmniChem plant, will shift from small molecule CDMO business to high margin AJIPHASE business. Those initiatives are underway, and we need to accelerate that. Number two is the expansion of portfolio. Oligonucleotide medicine consists of multiple compounds. Those will be further expanded to enhance our pipeline. Currently, we have a highly promising one, compounds. On top of that, we have another group consisting of siRNA. By expanding the scope, we can project a further revision or upward revision for this part. Number three, AJICAP was added anew. Unlike oligonucleotide acid, this is a new technology, and that is emerging. Like AJIPHASE, this is a new type healthcare business that will be able to engendered utilizing this AJICAP technology. Regarding the second question, cell culture media as well as medical food.
Starting with the cell culture media, regenerative medicine, cell culture. StemFit has become a de facto standard within Japan and also overseas. The sales is increasing. Regenerative medicine launch, as Dr. Yamanaka won the Nobel Prize, it's taking time for the market to mature. Products are being launched in an increasing number recent years, and it is being commercialized. There is a much more clear visibility with this regenerative medicine. The cell culture media for regenerative medicine purposes will expand. Regarding the medical food in the U.S. as well as Ireland, we acquired companies in these two regions, and we are growing. We are trying to grow medical food element. This is a therapeutic food for intractable diseases, and the services can be reimbursed. Even in a country where these services are not reimbursable, we can actually expand this business.
Medical food will be globally expanded towards the 2030 roadmap. I hope that answers your question. Thank you very much.
Pertaining to the CAGR growth of 20% you would like to attain with AJIPHASE on a sales base, is that right?
Toward 2030, that is an ambitious goal. Yes, that's right. As we've communicated earlier, the previously introduced growth trajectory has been announced. Yes.
On the previous IR day, the graph showed that by 2025, CAGR target for healthcare was JPY 30 billion with business profit of JPY 12 billion +. The actual was surpassing the targets last year. You further raised the bar? Or rather, are you focusing on a previous projection?
Yes, that's right. I'm focusing on a previous projection. Then there will be a small incremental increase than that.
I just mentioned that when we reiterated that the target of 20% contribution from AJIPHASE.
I understand. Based on the previous announcement, rather than previous announcement, the growth is accelerating. Is that right?
In terms of the growth rate down the road, it's much higher than expected, yes. Yes, that's right. The current roadmap shows a higher growth proportion.
In terms of AJIPHASE, the pipeline is increasing. CDMO oligonucleotide, are you expanding the share?
Yes. As I mentioned earlier, to cover multiple disease areas, multiple oligonucleotides are within our pipeline. There, AJIPHASE can be deployed. We are expanding the adaptation of the technology. Our penetration will further rise as the adaptation goes up.
Thank you very much. I have another question. Regarding frozen foods in the U.S. or North America. One, the JPY 10 billion business profit, that is the target.
This isn't a specific area of concern, but the recent months in December and January, things are improving. What is the change? What's driving the change or improvement in frozen foods in North America?
Yes. I'd like to address the outline, then Kawana-san can provide some more details. As we mentioned earlier, TDC margin, total delivery cost margin is visualized and carefully monitored. Also the top line unit price hike has been being monitored. Price increase as well as TDC margin, those are the key indicators that we are closely monitoring. Both, too, are improving. To do so, we need to make sure that through price increase, we need to grow the revenue. Also the cost of goods sold at the plant level must be reduced. We are dispatching experts from Japan, and details can be provided from Kawana-san. Could you please comment? I'm sure that we are confident that we can meet this goal.
Thank you very much. This is Kawana speaking, in charge of frozen foods. Thank you very much for the question. Regarding our North American business, broadly speaking, there are two areas. One is the high margin, high growth Asian products. The other is low margin, American-specific Italian products. Those are the two different categories that we need to consider. Structure reform is underway, we are carefully considering how to reduce the low margin products. Asian products are increasing, therefore, we are increasing the capacity. Asset diversion is being promoted in these two segments. This is a so-called death valley, where we are facing. We need to reduce certain level of sales, but yet we need to actually spend more for the asset diversion.
There, the lack of labor as well as inflation came in. So we had to face multiple crises. The death valley has been alleviated after a certain period of time, and the increased capacity is actually fully operated to increase sales. Now structure reform is underway to start generating profit, and we are ready to start generating profit. That is the recent situation. Regarding the pandemic, the support provided from Japan has been stalled. After the pandemic, as we go enter the post-pandemic era, we will be able to meet your expectations and rectify the situation.
Thank you very much. Going forward, including the price revision, but to the unit price increase to raise your sales to secure a certain level of profit, that is the plan. You are entering a recovery phase, is that right?
Yes. Within frozen foods, there are different categories. Portfolio needs to be shifted towards the high margin ones. That shift is underway, and we see a clear path. Okay. Then in the U.S. and Western countries, Gyoza and other Asian products are growing steadily. Therefore, as well as in Japan, things are improving. The performance overall is improving as a result.
Thank you very much. Thank you for outlining the situation.
Thank you very much, Yoshida-san. Another question from the webinar. Mr. Takagi from SMBC Nikko Securities.
This is Takagi of SMBC Nikko. Hello. I have two questions. Mr. Fujie, you mentioned about we are now fully strengthened, that we can go the roadmap toward growth. In the full field, JPY 300 billion, you are going to increase the sales, and business profit is 40%. That means that the profit of JPY 40 billion is going to be raised from here. What is the new growth area, and can you be more specific? I would like to know. Yes, you mentioned that you have the growth trajectory, but which part is going to grow? What are you expecting most?
I would like to talk about the overview, then Mr. Shiragami and Mr. Masai would like to supplement. One, in the area of healthcare, as was mentioned earlier, healthcare, we have already seeded and the market is going to grow. That is sure. In that area, we want to grow our business, as Shiragami mentioned earlier. Another one is the green, especially green food. I think including startups, various companies have entered into this market, as you know. Our company, we have AminoScience and we can utilize this. From the customers, we have a lot of inquiries. In North America, we will have a customer innovation center, and there the customer can actually visit and taste plant-based food. We are now improving the product. People say that Ajinomoto is different.
We have ecosystem together with our customers, and we have so many customers involved now. With this expertise in U.S. and in Japan and in Europe, in ASEAN, we want to make this. That is our roadmap, and that is visible now. Let's supplement.
Yes, this is Shiragami, and I'd like to comment about the JPY 300 billion. With existing core business and the growth of BMX, we have divided them and calculated differently. JPY 300 billion BMX I think that is a portion of BMX growth. Among the BMX, we have four areas or regions. In that, healthcare and ICT, starting from last year. In IR, we have made various explanation towards 2025 to 2030 growth plan. Yes. Once again, for this roadmap, we have reviewed AJIPHASE. It could have incremental growth, that forecast. That is included here. On the other hand, food and wellness and green. Those two, this is also included in the JPY 300 billion. Those are the new additions. As for green, I think last year's IR Day, we've already presented to you. Green food, plant-based protein, bio-meats, and also fermentation technology, proteins and crisis.
There are so many technologies coming out. We have the fermentation technology and deliciousness designing technology, B2C. In this green business, I think we have opportunity to grow globally. We have written, and we have made this a new pillar for the growth strategy. For food and wellness, as was mentioned earlier by Mr. Fujie, one is data is going to be involved and also Masai-san mentioned about the strengthening marketing. We will have more the product, and we will have challenging initiatives. In addition to that, through usage of digital technologies, we will be able to acquire personal data in the coming years. I think DX in food business is also going to start. Towards that, we want to be the leader. We want to be in advance. We want to have initiative where food and wellness business is data-driven.
In the food, wellness and green, JPY several hundred billion. The target is JPY 100 billion. That is not included. Several tens of billions or maybe JPY 20 billion or JPY 30 billion is going to be included in the future. Towards next year, in IR Days, by field or area, we want to present you specific figures.
Can you break down the JPY 300 billion? This JPY 300 billion incremental sales, can you break them down by healthcare, ICT, food and wellness and green?
At this point of time today, we're not able to make any disclosure for the breakdowns.
Of course, overwhelmingly, healthcare and ICT, you mean, right?
I think when you look at the last and recall last year's IR day, this is not mostly JPY 300 billion, and you can identify that green, food and wellness is, we have new sides of business which could become a new pillar, and that is going to be launched.
Thank you. May I?
Another question is, within the coming three years, I was surprised. Seasonings and sauce. This CAGR of business profit is 12%. I think this is an accelerated figure from the past. Before COVID-19 and now, I think profit-wise, you have not grown this business. The level is JPY 80 billion level, but in the coming three years, you want to exceed that with JPY 100 billion. How can you do that?
Yes. The first and foremost factor here is that during the COVID situation, we have raised prices. We had lowered the break-even point.
Based on that calculation, we came up with that figure. Yes. However, I think of course there should be some responses, but when you look at the three years' acceleration and looking at the past, I think it's unlikely to have that kind of acceleration, not just price increase. We have a new product contributing to the sales, and by combining AminoScience and food, we have a lot of inquiries from our customers. For example, now, food manufacturers, person in charge of food and marketing went there, and they had discussed about the better taste and the texture. But now, the members of our sales team, they're studying about AminoScience. Amino acid, for example, how it can contribute to the immunology. That idea could be brought to the customer, and that could become a new product. This type of initiative has already started.
For that person, for that portion of business, we can have a higher margin. It will become a business. Mr. Masai and Mr. Maeda always are having communication. Maybe can you comment on that more in detail?
Yes, this is Masai speaking. As first mentioned by Mr. Fujie earlier, especially in the area of B2B, we call them customer assets. Customers thought in the past that we were a company of amino acids and differently a food company, but now they've started to combine this, and we have a lot of inquiries from our customers. The sales team of both companies, us and our customers, getting together and formulating various plans to get to more profit. In addition, it was written in the food and wellness. We have regional strategies, and we want to enhance this, to strengthen this. This is very important.
Of course, in the past we had regional headquarters, but we want to have a global bird's-eye viewpoint. For example, ASEAN. We think that ASEAN will grow in the coming years. Seasonings was the driver, but along with the economic development and growth, the quality of the people's living will shift to the frozen food and other areas. For example, the instant noodles and so forth were successful in Thailand, and we will have more of a new product there. Region wise, we do have frontiers. For example, in ASEAN nations, Cambodia, Laos, Myanmar, not the ASEAN, but Bangladesh. I think we have new markets to grow. For example, in Malaysia, through our new plant, we will be distributing halal identified food, approved food, and that could be exported to other countries, Islamic countries.
We can expand more in the region and through Marketing Design Center, we can enhance our marketing. The key word is D2C. D2C means we can expand the healthy longevity.
Thank you very much. One more. This is very important. Break-even point, lowering that, reducing the break-even point. We still have a bit of meat here, muscle here. We want to be leaner. That is, I think, the source. In 2011, I went to the Philippines. The sales was about JPY 10 billion. We didn't rarely make any profit. I think towards 2020, I said that we should make this sales triple and more than 10% of the profit. We made various initiatives there. Of course, the top line will grow from after. First, we wanted to make the company lean, the management lean. We still have room to grow.
By making this organization more lean, we can improve the top line. This is like having a Chinese medicine. Within our organization, this is proven. These members have done that. Those are the member of the management executive committee meeting. Of course, this is not their enthusiasm. It is improving the operational excellency as well. We have visualized data and various initiatives, I think we can reduce the level of break-even point, and that is going to be an important factor.
Thank you. Yes, I understood now. Thank you very much indeed.
Thank you very much for the questions, Takagi-san. We'd like to take questions from Fujiwara-san, Nomura Securities.
Thank you very much. This is Fujiwara speaking from Nomura Securities. This is a very exciting target and presentation, and it's full of dreams, ambitious goals for employees as well. Starting with the foods, especially frozen foods. In the U.S., you mentioned that the structural reform is underway and bearing fruit. Windsor was acquired in 2014, in the last few years, cost inflation you faced. Why, to begin with, the process took so long? I'm just wondering. Could you please mention or answer my question?
Thank you very much for the question. When I came on board, we needed to increase speed as well as scale. That was a problem that had to be addressed. We need to double our efforts to rectify the situation.
That's the reflection we have made. As Fujiwara-san points out, this has been a challenge that we are still addressing the issue. The mechanics needs to be in place. Globally, we are operating multiple businesses there will be one or two suffering businesses we have to face, or it may be regions we have difficulty with. In the past, each entity, local entity, had the responsibility to rectify the situation. That has been the traditional style because it was their local responsibility to address the situation. That was good back then. However, there is some uncontrollable items or a crisis developing or escalating into a further difficult level. There is a certain level of problems that can be addressed locally, but the regional headquarters must engage to rectify at another level, the executive committee must monitor a higher escalated crisis.
We have now classified the crisis into 3 Tiers like this. Also with the frozen food in the North American region, the Executive Committee is supervising the entire initiatives. What is taking so long in the North America frozen food? That is the reflection point. It has been driven home for us, therefore, the Executive Team is considering what measures need to be taken. Finally, in the latest figures in December and January, we are starting to see signs of improvements finally. Speaking of the frozen food in the United States, amounting to JPY 10 billion sales. But the margin is still at the 4% level, is so low. But for example, growing this into 10%, what is going to take that to grow from 4% - 10%? What needs to take?
What is your roadmap towards reaching 10% profit margin in frozen foods in the North American region? I would like to focus on Gyoza and Asian frozen food items. The top-line growth. We are about to enter that top-line growth phase to top this JPY 10 billion sales by 2030. Appropriate marketing investments must come to exert effective marketing procedures. By doing so, existing facilities without any major additional CapEx spend, we need to actually conquer the market better. Of course, commitment or passion may differ from the level of investors or shareholders. On a mid-to-long term, this corporate value generating a certain volume growth, and this volume incremental increase, can be better addressed through the current management method. That is carefully planned, and that is the conclusion we derived, and that is why we set the target.
I understand. Thank you very much. I have high hopes. Thank you.
Fujiwara-san, thank you very much for the question.
Thank you very much. Although we are nearing the end time, we would like to entertain one more question. Morita-san from Daiwa Securities, please.
This is Morita from Daiwa Securities. Thank you. I have one question because of the time limit. Portfolio management, you mentioned that you want to improve that. I think you have done various things to stop doing, but it says collect and change. You want to focus on that. I think there should be different difficulties arising. In order to review portfolio management, in thoroughly doing that, what would be the important factor? I was looking at the healthcare transitions, food and wellness. We need to speed up, and are you able to really change this? I do not see a sure aspect. If you are thinking in this area, M&A is going to be an important tool.
Earlier, Mr. Fujie, you mentioned that until 2030, the budget of M&A is JPY 300 billion. From a global viewpoint, 2030, only JPY 300 billion. I was sorry to hear that. Can you tell us about how you think about M&A as well?
Yes. First, as for JPY 300 billion, this is just a number. In the BOD and in the executive committee, we are discussing, and if there is a necessity, we can increase that. That is not totally denied if we need to do so. As for the transition of the portfolio management, Morita-san asked about the Sustainability Advisory Council. We have materiality arising from there. From AminoScience, we will generate corporate value only by Ajinomoto. I think we are having that discussion. We need to go through that discussion.
One thing, relatively speaking, up until now, we have had the various initiatives starting from bottom up. Compared to other competitors around the world, I think we had the capability at the site. What I reflect is that as a top management, are we enough? Are we fast enough? Are we quick enough? Are we really exercising what we need to do? I think I have various communication with other CEOs, and sometimes I feel that and I reflect that we are still lagging behind. If we are to transform a big portfolio changes or management, bottom-up is also important, but I think appropriate top-down decision is important. It is not that the collective knowledge will tell us I think I would like to have that in my mind in BOD and executive committee meeting.
As a top leader of this company, I would like to make decision in case of need. That's how I think about portfolio management, especially as for sustainability promotion in the coming years. How are we going to implement that in the midterm is the initiatives. For example, purpose. We have the word AminoScience. In the Sustainability Advisory Council, the hint was given. Contribute to wellbeing of the human resources society and the planet, I think we need to contribute to the wellbeing, that's important. Having that in mind, we need to evolve our portfolio. At the right time, we would like to report to you and hence, we would like to have your appropriate advice. Thank you for your question. One more. In the sustainability, you mentioned that we will have KPI for each individual materiality.
As for KPI management and this portfolio management, is it going to be connected and linked? Yes. That is going to be linked. First, the materiality. We have 28 challenges and expectations. For that, how are we going to address that? We have a big Excel chart-like thing. How are we going to specifically do with that? In that sense, what can we generate as a social value, and what will be the economic value that could be generated from that? We will have that impact path or roadmap. We have visualized that. Of course, not to all of impact path, what would be the profit or the economic values? Of course, we want to show it in figures, but what is actually visualized now, we are showing it to you. Those initiatives as a whole would lead to enhanced corporate value.
We think that our portfolio, based on the four fields that we've shown you, is shifting and transferred into the appropriate fields.
Thank you very much indeed. Morita-san, thank you very much. That concludes the Q&A session. Sorry for exceeding the time. Lastly, but not least, Mr. Fujie would like to say a word.
Thank you very much for taking time out of a busy schedule to attend our briefing session. Those of you attending online, thank you very much as well for your participation. There is more that we'd like to communicate down the road. Therefore, we'd like to continue our dialogue with you. We value these opportunities. As I said earlier, when we communicate things, it's when our message can get across. Therefore, today, we received numerous advice from you, and we'd like to reflect today's session to identify areas of improvement down the road. We'd like to verbalize this and communicate this to link to the further corporate value enhancement. I'll take my responsibility. With my full responsibility, I'd like to further delve into this matter. Thank you very much once again for all your participation. We'd like to solicit your continued support.
Thank you very much. With that, we'd like to conclude our briefing session. Thank you very much for your kind attention and participation.