Good afternoon, ladies and gentlemen. Thank you very much for taking time out of a busy schedule to attend Ajinomoto IR Day. My name is Kaji, IR department. I will emcee the event. At the outset, I would like to introduce the attendees today. Member of the Board, Representative Executive Officer, President and CEO, Fujie-san.
This is Fujie speaking. Nice to speak to you all.
Shiragami-san, Executive Senior Vice President, CIO. Nice to speak to you all.
Sasaki-san, Executive Officer and Vice President. Nice to speak to you all.
Professor Davis, Chair, SAC, Sustainability Advisory Council.
Nakano-san, Executive Officer and Vice President, Finance and Investor Relations.
Executive Officer in charge of Sustainability and Communications, Morishima-san. Nice to speak to you all.
Yamamoto-san, General Manager, Global HR Department.
Those seven attendees will be attending the session. As announced earlier, Nosaka-san was scheduled to give his presentation, however, he is unable to attend. Therefore, instead of him, Yamamoto-san is attending the session. The entire session will last one hour and 30 minutes. We will give presentations during the first one hour, then we will entertain questions from the audience. Today's presentation materials are posted on the IR website of Ajinomoto. Please have a look. Also, today's session is recorded, including the Q&A session, and will be posted on the IR website at a later date. Please be advised. Now we would like to begin the program. Fujie-san, the floor is yours.
Ladies and gentlemen, good afternoon. Thank you very much for taking time out of your busy schedule to attend our IR Day event. For the evolution of ASV management, sustainability, and human assets, those will be today's main topics. I truly look forward to this event. Therefore, I would like you to enjoy this program today. There are three takeaway messages today. Next slide, please. One is, under the new management system that was inaugurated in April this year, ASV, Ajinomoto Group Shared Value. In order to evolve our ASV management, we are steadily accelerating the speed of management, and the entire group is working towards this goal. One slogan is to full-fledgedly ASV, we will pursue.
That is our slogan. Under the 100-day plan, we changed the gears and made a jump start. We are making a steady progress towards that goal. Number two. ASV management is buttressed by sustainability. This must be incorporated into ASV management further in order to help solving social issues. We also need to create economic values. This is a co-creation and the opportunity is raised. The intangible assets is the driving force. In particular, human assets need to be strengthened as the driving force of intangible assets. We will need to solidify the ASV value creation process in order to accelerate our evolution. Number three. Midterm index management, which is named 2030 Roadmap.
This will be formulated in order for us to enhance corporate value sustainably and exponentially. Those are the main topics for today. Today's agenda, please show the first topic. Next slide, please. I would like to start with the Ajinomoto Group vision, our purpose. By unleashing the power of AminoScience, we will help solving food and health-related issues.
Purpose times passion times OE, speed up and scale up. We will try to enhance corporate value sustainably and exponentially. This is our vision. There are initiatives. Outcomes are to halve environmental burden and to extend the health longevity for 1 billion people. Those will be the outcomes that we are working towards. Next slide, please. This is ASV value creation process. Speaking of sustainability, we are working towards sustainability. As you are aware, all the sustainability buttresses any company's core strategy, that's the same for Ajinomoto. From various perspectives, we envision the future, backcasting from there. Amid sustainability, what is truly unique about Ajinomoto? We are trying to define the materialities that is unique to Ajinomoto. Then Professor Davis, chair of SAC, will announce later.
In October, they will finalize the report to BOD. By January, we will deliberate the matter carefully. In March, 2030 Roadmap will be formulated, including the sustainability perspective when we announce it later in March 2030. Excuse me, in March next year. Materiality is the source of the intangible assets. By harnessing the strengths through, we will create innovation and help solving the social issues so that we can further evolve ASV management so we can enhance our corporate value. Next slide, please. This shows the formula to derive corporate value. This was newly set up. As you can see, financial value as well as intangible assets, the value is created, we take the sum of this. In terms of the general formula to derive corporate value, we added our own element, which is speed up and scale up.
By adding this, we'd like to accelerate the speed of corporate value creation so that we can attain a higher level of corporate value. The numerator is cash flow generation. This needs to be steadily implemented. Under the midterm ROIC or other KPI management, we need to ensure that we meet those ROIC targets and others. The denominator, capital costs, needs to be minimized. We need to enhance our risk management ability, ensure sustainability management so we can win more trust from stakeholders. This is a key element. In order to do so, these SAC or Sustainability Committee initiatives are enhanced. They're enhancing their initiatives, we would like to emphasize the importance of dialogue with stakeholders.
Regarding the human asset enhancement as well as sustainability management, we'd like to convert the trade-off relationship to trade-on relationship so that we can further speed up and scale up to maximize our corporate value enhancement. Under the topic of sustainability and human assets, these touch upon the denominator of this formula. Please take a closer look. Next topic is sustainability and management strategy. As I mentioned earlier, from diverse perspectives, we are to identify materiality for Ajinomoto, which will be incorporated to ASV management. Next slide, please. In terms of Sustainability Advisory Council, this has been set up already. Under BOD, the SAC council is already set up. Under executive committee, we have a Sustainability Committee as a separate entity. Next slide, please.
In the Sustainability Advisory Council, we have those members. The names and photographs are shown here. What are they strong at are indicated here. This is a diverse member and very advanced in the world and in Ajinomoto. What should be sustainability like? They would like to discuss and deliberate. In October, they will provide us final proposal, and I am looking forward to seeing them. As for the roles of the Sustainability Advisory Council, this is written here. As was mentioned earlier, the Roadmap, a medium-term management plan, I think is going to be reflected in that. Next is about strengthening of human asset. Next, please. This is four intangible assets that we value at Ajinomoto Group. Human resources, technology, customers, organization. Out of that, today, we would like to focus on human resources. Next, please.
As for the strengthening of human assets, we would like to strengthen both the individual and the organization. We would like to backcast from the vision, and we will create the plan. We would like to visualize the processes and train and develop the human resources. This is enhancement of motivation in the human assets. I think we want Ajinomoto to become a company providing high motivation for the employee to work. We are now in top 1% ranked as a motivating company, but still at the rank of 47. Myself, I want to become number one in Japan, even number one in the world. The motivation, morale, the long-term training, and the evaluation, we want to visualize them all and report to you all. This very valuable human asset needs to be enhanced in our company. This is part of that initiative.
As for employee stock ownership, in this, we have some measures, especially special incentives. The 1st of June next year, those stock owners, the 100 stocks is one unit, and that unit is going to be provided so that the employee would be shareholder, so that we together could enhance our corporate value. We want to make a happy company, a good wellbeing for the world. Summary. Under a steady ASV value creation process, in order to realize and achieve sustained and dramatic enhancement of our corporate value, we would like to formulate our 2030 Roadmap for medium-term indicator management, and we hope to announce them to you. Thank you very much. That was all from me.
Thank you very much, Mr. Fujie. Next, Professor Davis, please.
Good afternoon, ladies and gentlemen. My name is Davis. I'm the chairperson for Sustainability Advisory Council or SAC. Thank you very much for giving me the opportunity to present my materials in front of you. Ideally, I would like to report the details of a report or proposal that has been worked on for the past two years. The final proposal will be announced next month on the 27th, so we cannot disclose the detail yet. Today, I'd like to take this time to reflect Ajinomoto Group's approach to its Sustainability Advisory Council, and what processes have been created by the members of the council. We have reached to a stage where we have established an unprecedented level of council. I'd like to lay out the details of our advisory board and advisory council, excuse me, in my presentation today. Next slide, please.
This is my agenda for today. If you could turn the page. We are the Sustainability Advisory Council, the board has assigned us the brief, and to that brief, we are compiling a proposal. We received this board's brief, I'd like to lay out the priorities we have reviewed during the discussion. Basically, sustainability-related issues, not only the main issues, but we take this as an opportunity and we've led a constructive and future-oriented deliberations. From a third-party perspective or objective perspective, including the multi-stakeholder perspective, we defined a long-term view on this matter. Speaking of management, there are things what to do and what not to do that is important for any management, and we completely agree.
The advisory board was established first, during the first two years, we discussed what to discuss, we also identified what not to discuss at the SAC. Why is that? It is actually important to appreciate what we appreciate from the external point of view. The previous history or track record or the current products and services, how to define a company in the past tense or how to define a company in the present tense, these need to be clarified. We compile a list of materiality. That itself is good. It's not bad. Apart from that, we needed to be more constructive and future-oriented. That was what decided first. We capture Ajinomoto as a future-oriented platform, Ajinomoto needs to achieve an innovation process. We define the envisioned future for Ajinomoto.
There's a subtle difference here between the past tense and the future-oriented approach. We wanted to focus on the future-oriented approach rather than the previous perception of Ajinomoto. We thought outside the box or the conventional image of Ajinomoto. In terms of the formality, how we positioned our council, it's in this organization chart. As Fujie-san mentioned earlier, we deliberated this perspective, sustainability, but in parallel with management. We do not actually separate management from sustainability. Rather, we needed to encompass everything through the dialogue with the members of the executives, not only the information in the past, but also their future vision. From the executive side, we wanted to actually explore what their dreams are and how they want to take Ajinomoto to where they want to take Ajinomoto. Those are the perspectives that we incorporated from the executive members.
What to focus here is the Sustainability Advisory Council, which is on the upper right portion. The counterpart here is AGES. There is a counterpart here, Sustainability Committee, as well as AGES, which are both future-oriented organizations. The SAC as well as Sustainability Committee has an ongoing dialogue within themselves. We are independent in terms of the meeting structure. However, within Ajinomoto, these two organizations or committees are both embedded and well ingrained within the corporate structure. Next slide, please. At the outset, we defined where to Without defining the definite goal, but we explored the direction. By looking ahead to 2050 or super long vision, the former CEO, Nishii-san, wanted us to discuss our sustainability issue in 2050, super long time.
We wanted to make Ajinomoto to be an essential or an integral part of society, and that was the vision for Ajinomoto during Nishii-san's tenure. From multi-stakeholder dimensions as well as, without creating consensus, we wanted to explore multi-stakeholders' perspectives to deep dive into this matter. When the proposal was announced, or when the brief was issued, we first defined the direction and backcast from there, then incorporate that into their management vision and define the clear roadmap as to what needs to be done by when. These are the milestones and KPIs that will follow suit after our final proposal will be submitted to BOD, and those deliberations need to take place within our council. Next slide, please.
Taking two years, we have not yet ended, but what have we been doing? One, dialogue. Two, narrative. Three, discussion. Four, definition it says here. Yes, in reality, before dialogue one, we had zero pre-session because we could not wait. Members wanted to gather as early as possible. In Kawasaki, there is an R&D center of Ajinomoto. The first pre-session was held in that location. Although it was during the COVID-19, there were some participating remote, but we had also face-to-face meeting. We had a study meeting there. We had heard [Dr. Placido]. He is a very famous person for amino acid. What amino acid can do, starting from sugarcane. What is amino acid? Ammonia production with a co-competence. We thought about the business model. In Thailand, cassava production with very high value added. This type of introduction was made by him.
Starting from that, we had learned much about the actual Ajinomoto's business. We had introduced ourselves, then we've started to run and provided baton to the next person in the dialogue. We had in the pre-session, we talked about what Ajinomoto can do and what they were thinking. We knew that. As a stakeholder, what is expectation that we have toward Ajinomoto? Based on that, you can see in the red corner, AGS, five task force teams had taken that back, they talked about it, what Ajinomoto should do, can do. They had compiled that. At the second narrative meeting, they had explained that. Based on that, we had discussed on that, on a pinpoint situation, what we really expect the outcome from Ajinomoto. There was very active discussion.
As a result, the executive officers, they had thought about the story of Ajinomoto growth. On that agenda, we had the third discussion. Each session, we took a long time. The discussion was not enough. We wanted to have more and more meeting. The SAC members had expressed that. Before these formal sessions, we had pre-sessions. To SAC, each member, there were presentation, explanation, and taking that, we had the final discussion and the feedback. Based on that feedback, the executive officers had prepared various things. We would like to define materiality, we are now preparing for that. This is a very fresh story. Just last evening, the total draft of the materiality had been decided. On 27th of next month, we will be reporting that to the Sustainability Advisory Council. I'm off to go into that content.
But because I'm not able to, I'd like to talk to you about the process. This is not a conclusion. This is not the report. What was the overview that we started to discuss? This is just a pre-notice, maybe for your reference. Next, please. Next slide is the sixth slide. Those participating today, investors and analysts. I think there's no need for me to talk about this chart table. In order to recheck for myself, I want to explain to you what we mean by here with this picture. In our discussion, this was the focus. What is this? As you can see, at this point of time, human beings' well-being, the cost to maintain that is very expensive. The current we mean not just as Ajinomoto, but for the human being as a whole, our health and our well-being.
In order to guarantee that, secure that, the industry, the society that is enabling that, the cost-benefit profile for that is very low. The cost is high, but the benefit is not enough. If this was an investment, the return on investment is going to be bad. The environmental footprint is so huge that because of that health and well-being from the value of the human beings, the value that is created from it is too small, too low. What do I mean by this? When you talk about sustainability, the word trade-off comes out. Trade-off. In telling sustainability, we have the word of trade-off. Because of this picture in the background, this story comes up. We had discussion. Trade-off. We have the mechanism, and we have that mechanism created by the human being. Trade-off is not the starting point. That's what we really picked up.
What was the discussion and the overview that we had? This is trade-on. Trade-on, not trade-off. Sustainable value creation. Even though you have the trade-offs, trying to change anything, nothing will come out. Trade-on. If you have trade-on, and if we want to achieve that, we need transition and transitional innovation. You can see this picture. This is on the left-hand side and right-hand side, separated. On the left-hand side, you can see Ajinomoto. I am not really a person from Ajinomoto, so although I talk about Ajinomoto, this is not boasting about Ajinomoto. Let me talk about Ajinomoto. I've looked at a lot of things about Ajinomoto. What I can definitely say that AminoScience, bio-science. AminoScience. There is no one that has the capability other than Ajinomoto. Ajinomoto was very serious in AminoScience and studying about this.
The knowledge Ajinomoto has for this amino acid, and based on that, trying to create value, come up with product and services. This is a scientific possibility that is written on the top. We can tell a well-being story which has not been told before. Ajinomoto knows not just about amino acid, but have a sales marketing channel around the world, and they have a very good relationship. From the viewpoint of consumers, they can provide the vision in each community, reflecting each society, what is the necessity there. There is a scientific potential and possibility. They have these two perspectives. You can see the negative loop that I showed you on page six. They have the possibility of synergy. As you can see, the red arrow toward the environmental footprint, they can make it smaller using the scientific possibilities.
Then we will be enjoying the social sensitivity and the story of wellbeing as of the final beneficiary. What are the value that you can get? That is going to be heightened. On page six, the circles and circulation would be on the other way around. The next page, please. I'm going to end with this slide. In various areas, Sustainability Committee exists. A lot of places, they're trying to lower negatives and come up with positives. This is not bad thing, and I'm not going to criticize that. We're not expecting that kind of level to Ajinomoto. What we expect Ajinomoto is using this picture, opportunity space. Currently, those can be expected, and the perception of the reality lies the gap. You can see if it's on the left-hand side too much, then it is negative.
If it goes to right-hand side, it's positive gap. This is opportunity space. Holistically, we should take it as a space. Sustainable growth in order to achieve it and to lead to the sustainable value creation. I think the negative gap should be shifted to positive gap in this opportunity space, and that is how the management should be doing. I think this is the third idea that we've been talking and discussing in fact. On 27th of October, we will be reporting materiality. At that time, the report and materiality is not going to be just a plain list. The real multi-stakeholder, multidimensional, by stakeholder perception, we will provide what we expect, what we request, what we require as Ajinomoto. This is three-dimensional, very meaningful, significant, not to 2030, but even to 2050. This could be referred by the management of Ajinomoto.
This is going to be the kind of report we will be presenting to Ajinomoto management. I have one more minute. I'd like to report to you one more thing. This is not the end. For the two years' time as a chair of SAC, I've been working hard, I have talked, Nishii, President Nishii and President Fujie, all the executive officers, all the researchers, employees. I have had engagements and discussions, communications. As an individual, a member of SAC, I think all of those employees and executives were toward open and very positive toward our council. I never thought that there would be no company that could be so enthusiastic and passionate about this. Maybe Fujie-san, you said it, "honki," true meaning and your motivation.
With this great feeling, sustainably, eternally, you want to create value together with the shareholders by having dialogue, engaging with the investors. They're trying to do that. This is very boldly, I think you are having mind and a strong will to do it. I really felt the real seriousness about the employees and executives toward this. Taking this opportunity, investors, analysts, shareholders, together with you, I think we would like to have dialogue, opportunity of dialogue. I'm very happy to have it. Thank you very much.
Thank you very much, Professor Davis. Now I'd like to invite Yamamoto-san, the Group HR Department General Manager.
Nice to speak to you all. This is Yamamoto speaking. Now I'd like to give the corporate value enhancement activities through human asset initiatives. Speaking of human assets, which is drawing attention, our initiatives are still halfway through. Thank you very much for giving me an opportunity to present my materials today. This is my takeaway messages. There are two. Number one, human assets is the driving force or the source of all intangible assets, and this will lead us to enhance corporate value sustainably and exponentially. Number two, we need to, each inbound of diverse individuals will grow together with the value-creating organization, and this will be the pillar of our HR strategy.
As you can see on this tree chart, the intangible assets sits at the root of everything we do. This is the source of intangible assets. Excuse me, the human assets is the source of the intangible assets. This is today's agenda. First, the human asset-based value creation story. Our story is as follows. Through growth of diverse individuals and value-creating organization, we will create innovation in order to enhance corporate value. This is the concept. On the right-hand side, each individual will resonate with the story and value creation story, we'll take on new challenges to grow. On the organization side, the diverse individuals will be leveraged, we will network with external bodies to grow. It's underpinned by, well, health and well-being, which needs to be promoted, too. This is another conceptual mindset or framework.
In terms of DE&I, speaking of diversity, gender and generation, there are other aspects of attributes. Cross-section talent is another, Ajinomoto's own perspective. To be well-versed in R&D as well as group companies, both in and outside Japan, as well as AminoScience and food products. On the left-hand side, we have one team inclusion spirit. Through the cross-sectional networking, we would like to create a chemistry that is unique to Ajinomoto. Next slide, please. Based on such concept, we will include diverse individuals, starting from this slide. In the red, I'd like to detail one by one, starting from number one. Starting with the gender perspective. Previously, by 2030, we wanted to increase the number of female managers ratio to 30%. In ASEAN and other regions, more than 30% are female.
The issue here, the challenges in Japan, starting from the 2020s, in order to deepen the bench for female workers, we have participants of cumulative 676 participants, this is the third year since we launched this academy, [Ajipana Academy]. On the left-hand side, according to each stage, there are approaches being implemented, including the supervisors and executives, both mutually, they are participating in event and according to their talent, the initiatives are defined. On to step three, I'd like to introduce our mentoring activity. Mentor program is called the Nana-Mentor. The intention here is that instead of the vertical reporting line, we focus on the hexagonal reporting line. Those who you do not often communicate with. By expanding your perspective and through this one-on-one session, on hexagonal session, you need to deepen your perspective.
The mentor side will gain better understanding of each individual employee. In terms of the production department which has a lower female manager ratio, this mentoring session is very helpful. Please view the video that is only available in Japanese. Thank you. Next slide, please. I'd like to report on the progress of this initiative. This is a good news, which is highlighted in the lower half. According to our engagement survey, there was a clear gender gap in certain score surveys, in certain items. The gap is narrowing in the recent years. In terms of the mindset, speaking of decision-making participation and the equal opportunities, which are important for career development, the gender gap in mindset is reducing or narrowing, which is good. This is a very positive result that is generated throughout this initiative.
In terms of reality, which is also a good news, as the chart indicates, the female executive and line manager ratio is increasing up to 13% in the most recent year. 36% of the all directors are female, but it's important to further the advancement of women's appointment in this top-level decision-making post. Speaking of the cross-sectional networking or assignments, this is a highly challenging team, but we would like to harness what's unique about Ajinomoto. That means the mutual reciprocal interaction between AminoScience and food products. By assigning a R&D person in business units, they can harness their expertise in the business arena, also sometimes can work at a group company level. Those are the interactions we'd like to create through our job transfers. Let me cite a recent example.
Speaking of business, both general managers are well-versed in the counterpart department before. This promotes the integration of the two entities. In Ajinomoto Brasil, a management candidate was assigned to work in Peru as well as in Thailand. This intergroup exchange or job transfer was available in the past, but this is actually the first time that we assigned those individuals outside its own country. Speaking of external HR resources utilization, currently, of the Ajinomoto employee, mid-term careers account for 13%. In the past, this was just to fill up the vacancies in the headcount. However, that is different. According to our strategy, we are trying to attract more specialized talent as mid-career hirings. The mid-term career hiring account for 35% in the last three years. This year, the ratio is likely to increase further.
Speaking of the new business development, we are trying to attract more and more specialized talent through mid-career hires. In terms of leading this diverse set of talent, how are we going to educate group management? We have three layers of talent pools, trying to enhance or deepen the bench of future candidate managers. On the left-hand side, we have members of corporate executive committees, the management leaders as well as youth young leaders in next generation. Those are the three layers of talent pools. On the right-hand side, as you can see, nomination committee is the core, each business division as well as regional headquarters are partnering together to formulate the training programs. Speaking of the cross-sectional experience, this is one of the strategies in order to accelerate cross-sectional appointments.
We have been talking about the diverse individuals' perspective. Now we'd like to reach a high-level discussion of HR development. In the slide where it says in the red, please have a look. This is the big level, the high-level picture of HR development. We need to keep studying and provide hands-on experience, as well as motivating employees. We need to enhance measures to encourage people to take on new challenges and people to develop their own careers voluntarily. We are expanding opportunities of programs that are based on voluntary participation, and the hands-on training programs will be announced later. In terms of motivation, the most impactful one is the assignment to key posts at an early stage, but they need to visualize their own career development. In order to have a better matching service, 360-degree feedback is important. Another one-on-one mentoring approach is being enhanced.
In terms of coaching, we introduced the interview horizontal mentoring service called Nana-Mentor. Those coaches are solicited on a voluntary basis. Managers are taking the opportunity to serve as mentors, and they need to undertake a training program to be mentors. There is a motivation for both mentor side as well as the mentee side. Let me now detail the moonlighting applications. As the bar chart indicates, recently, the number of applications for moonlighting is increasing on the right-hand side. By age, those in their 20s and 30s account for more than 40% of the total applications in various occupations and areas. Moonlighting experience is being strengthened. By occupation, consulting advisor and lecturers come at the top, leveraging their expertise. Food was the most prevalent area. For example, online cooking teacher and table coordinator, those are the examples of moonlighting experiences.
In the youth, filmmaking and flower arrangement and other creative opportunities are popular too. Without confining their workspace within the company, we'd like to encourage the moonlighting experiences for employees. Next slide, please. This will start as a new program, which is the hands-on training program that will be rolled out next month. This is called Ajinomoto Group Dialogue for the Future. Aoki-san, who sits on the SAC panel, is one of the contributors for this program. Our aim is to develop talent who can provide or promote ASV management. For example, sustainable fishing and local food and other social issue-related areas. The programs will be based on those areas where people can gain first-hand experience. In the context of ASV, what roles they would like to explore and what future they would like to envision.
They will communicate externally the results of the program later on. I truly look forward to what they have to say at that later point in time. Next slide, please.
I'd like to now talk about introduction and utilization of a human resources management system. From July of 2021, we've started this. It doesn't have long history yet. At last, we have now visualized HR management system. This is making information public to our employees so that they can access to those information. Of course, they can declare their skills. Those who lead the HR development, they can discover and find a new person and can provide a right person to the right places. This could be utilized in those areas. Next, please. This is going to be talking about the last slide of the diverse HR. Thanks to our efforts, the popularity of our company had been ranked in the top 10 for the science. For those graduating humanities, we are also very popular.
As was mentioned by Mr. Fujie at the outset, after entering this company, we are trying to make this company so that they can actually work and enjoy. Next, please. Here, I'd like to talk about co-growth of individuals and organization. Next, please. On the left-hand side. From the organizational viewpoint, I'd like to explain various things. First is the engagement. What is the management cycle to increase that? The gray cycle in the middle, we have been introducing this. This is the third round of the cycle for this year. The understanding empathy of ASV and the monitoring process empathy. We have various measures globally being carried out under a new structure. Our President, the management, and the various officers, we have a direct dialogue communication with the management around the world. Next page, please.
As a monitoring improvement, we have the engagement surveys, this is the fifth round of the surveys from last year. We have been regarding this year as autonomous used period. That means through online workshop, we are providing various information about this. 240 employees in and outside of Japan had participated. The bar graph shows the results. The engagement sustainable in yellow and also green. As for the health and productivity management, they are increasing. Group KPI as for the ASV as one zone initiative score, I would like to explain that more in detail later. The four engagement survey have ended. We are now analyzing the relationship between that survey results and the business performance. As a result of the four surveys, because of our business performance, I think sales employees' empathy for purpose, enhancement of productivity, customer focus, they had high empathy.
Through those continuous analysis, I think various measures that would provide favorable results and contribution to our business performance, we would like to continue those. Next, please. From this year, we will be introducing ASV realization process. The target here is that including ASV making your own, we would like to visualize how you would be realizing ASV, starting from understanding individuals to organization, to the result creation. We have divided into four stages. As mentioned earlier, this information could be added. The engagement survey, this is going to be linked, and we will be monitoring the result, not just the group as a whole, but in each of the companies and organization. This information could be utilized and evaluated so that it will be contributing to further growth. This is the ASV Awards example of initiatives. This is the sixth year of such award recently.
I think for the purpose of more participation, we had different screening and criteria. The Smart Salt, Suma-Shio, is a Grand Prize. This is linked to Ajinomoto guideline, this has been made into a video, and this is going to be real learnings to all the employees. This is not just going to end as a Grand Prize. Two more slides. I'd like to talk about the co-growth of individual and organization. Network-based work style. The challenging theme that we've never had before, we should exceed the past thinkings, and we have to introduce new way of thinking. On the left-hand side, you can see the second item. It says here, from corporate to marketing to production, we have more than 15 organizations, about 30 members. They are leading the group companies. That is this internal cross-organizational type.
Later I will talk about the nutritional things. This is written in the middle. The nutritionists in our company, they had participated and they made the contents of e-learning. They made it by themselves. I think ASV empathy is shared throughout these. Including the volunteer participation, internal and even from outside, we would like to have organizational things happening for the value creation. This is the internal cross-organizational type of initiative from various backgrounds. A member had participated, they had talked about the picture of the future and food, healthcare, food wellness. There's growth areas. This triggered what we should be thinking about the business transformation in those four areas. Changing the topic here. Now I'd like to talk about human resources investment. First, per Ajinomoto, how much are we investing per person?
The definition of the investment here, as is written here on the four key areas in the blue box, we wanted in addition to directly involved cost, we also emphasize opportunity investment also. For fiscal 2021, as for direct cost, this is +12%, JPY 250,000 per person. Opportunity cost, these are the training to four key areas. About adding that portion, this is about JPY 500,000 per person. How are we going to make investment to the human resources? We are still making this and thinking about how to do this. We would like to furthermore deepen our definition and invest into our people. Next, please. Opportunity cost. In order to improve literacy and provide training sessions, this is one example.
ASV, in order to educate more, we think that individual development is very important, they are important to improve the literacy of three areas. We started this in fiscal 2020, in fiscal 2021, about 2,600 people had participated in this. I'd like to explain a bit about e-learning. This is about nutritional element. The nutritional element has three functions. One, energy for moving your body, making and building your body. Three, conditioning your body. My question, out of staple food, main dish, side dish, soup. This has given all of those three nutrition elements. What is it? This offers the four elements. What is it out of those four diets? Yes, right, this answer is soup. Yes. Soup, you may have excessive salt intake.
If you have a rich flavored broth or stock, then you make a simple taste, but rich taste because of umami, of amino acids. In recent studies, umami is said it would help digestion and absorption. Yes, thank you very much. These are the materials that was produced by the nutritionists in our company. Next is DX. Business DX training program. On the left bottom, you can see it started from fiscal 2020, and I think 2,000 people, about 2,000 employees, took classes in two years. I think you can feel the high motivation of our company. 2,000 people were awarded finishing this program. I mentioned about opportunity cost. Those are areas we focus how much we had to spend. We had calculated into money, monetary value, and we are monitoring that. The result of those investment, what is the productivity?
Hourly productivity, as you can see the line, the gray line. If you see the growth rate, this is sales per hour, and the dark gray line shows consolidated business profit per hour. We have started the monitoring. Of course, we have time lag in the return of the investment coming out. Continuously, we would like to monitor them, and we would like to make effective investment, Group as a whole. Of course, Ajinomoto is a driver, and we have started this monitoring. Next page. This is going to be the last slide at last. Yes, please. About said dimension D, the story of value creation. As I've explained to you, we have pipelines, ASV engagement cycle, cross-sectional exchange of human resources, diverse knowledge and experience, human resource development, pipeline development, appointment. With those pillars and co-growth, we want to enhance value creation for the company.
That was my presentation. Thank you very much.
Yamamoto-san, thank you very much for your presentation. Now we'd like to open the floor for questions. Let me introduce how to raise your question. On your screen, please press Raise Your Hand button and IR department will appoint the person to ask question, and then please unmute in order to answer the question. For those of you attending from overseas, you can raise your question in English and simultaneous interpretation will be provided to answer the question. There will be a time lag between a question and an answer. Please be advised. We'd like to limit the number of questions to two per person, if that is all right. Please be advised. There may be an occasion where we need to decline some questions because of the limited amount of time.
We'd like to open the floor for questions. Please press Raise Your Hand button on your screen. We are open for questions. Now we'd like to take the first question from Araki-san.
This is Araki speaking. I'm with the Tokai Tokyo Research Center. In terms of human assets or human resources, thank you very much for giving the wonderful presentations, very detailed presentations on human assets. I'd like to raise one question. In Japan, wages are down, actually, starting from April until July. Consumers themselves are on tight budget. From Ajinomoto's perspective, this is pertaining to labor costs, so it may be a separate angle from the HR investment. But in terms of remuneration or compensation, you mentioned that there is a global approach, or you would like to encourage people to be assigned overseas. But each individual employee's compensation table, what is the ideal situation for the salary level or wage level? The Japanese economy is in this predicament, how do you assess this matter? What is your view?
Thank you very much for the question, Araki-san. This is Fujie speaking. As Yamamoto-san indicated, represented global HR department. I'd like her to address that question, if that's all right.
Yes, thank you very much for the question, Araki-san. This is a very difficult question. In terms of salary level or wage level for our employees, for those who contributed to generate results, they need to be rewarded in a right way. That is the basis of our policy for wages. Depending on the economic status, we are impacted slightly. However, the overall revenue will be enhanced and raised through corporate activities or business activities, we'd like to continue this basic policy of wages. Thank you very much.
Let me expound on the matter. Speaking of HR investment, which will be enhanced, in investment, we used to, in tangible assets as well the intangible assets. Speaking of tangible assets, they accounted for a larger volume, but now we are trying to shift to reach a 50/50 breakdown between tangible and intangible. The intangible assets are the ones we'd like to focus more on. Regarding this corporate shareholding policy for the employees, depending on the labor market, rather than the labor market, we need to enhance our business activities and for the betterment of company performance. This is what we'd like to focus on. Depending on each region, as well as professional talents that will be flexibly hired within our organization. We would like to create this multiple track of talents within ourselves, those are the evolutions which need to take place within Ajinomoto.
Araki-san, you are the expert on this matter, we'd like to improve ourselves and for the betterment of HR department as a whole. Thank you very much.
I'd like to confirm one thing. On a global level, the economic indicators or KPIs globally, in order to develop HR, those global indicator will be added in order for you to assess HR.
Yes, that's right.
I understand. Thank you very much. That's it for me.
Thank you very much, Araki-san. Mr. Saji from Mizuho Securities, please.
Thank you. I think I've asked that question to Fujie-san before. Today, we want a comment from Fujie-san as well as Scott-san. Country risk. Risk management. In the presentation on page seven of Mr. Fujie's paper, it says to reduce the WACC. In the regional strategy, you have the country risk. What is your idea for this? As a regional strategy, future, what should be, how should Ajinomoto do your work? Another point is that you had mass exposure was very big to the risks because you were doing in the emerging countries and things like that. As a whole, we have the separation of the world now. Towards 2050, you're thinking about various sustainability works, but such regional geopolitical risks. As Ajinomoto, how do you take that regional risks, geopolitical risks?
Thank you very much, Mr. Saji. That is a very important issue for us, item for us. Regional things, when you have the preposition, we have to have a good balance of our business regionally. First, food was 2/3 and amino acid was 1/3 of business or profit. But in 2030 I think amino acid and food should be 50/50 contributing to the profit. In addition, B2C, B2B percentage. 70% was B2C, but depending on the business, B2C and B2B balance. Rather, we want to go more to B2B. AminoScience, we are strong in B2B, I think that is what we should be doing. In addition, region, we have to think about that for food, as you say. North American frozen food.
As for Latin America, we should expand the business. For ASEAN, yes, we want to expand and deepen our business. In Europe, Asian frozen food, it will increase for Africa by, if we include 2050, I think we have a possibility to do business there. Also China and India, what should be the strategy and things that we have to be thinking and that will be shown in the midterm management plan. I think geopolitical risks, regional risks, business risks, we have to think about the balance. Management as a whole, we should control over that. Scott-san, please. Professor Scott.
Thank you. Unfortunately, I am not on the management side, so this is going to be just an expression of idea. Ajinomoto, when you think about the future, what is the risk that they would be facing and what are the things that should be facing and engaging? That means, in order to achieve the sustainability, that is achievement by co-creation, and also they need transformation. In doing that transformation, that should be inclusive. That's very important challenge for them, I think. Earlier in my presentation, I showed you page six. On the left-hand side, we have a very big negative asset, environmental negative footprint.
We have the wellbeing is very small on the left-hand side, I mentioned to you earlier. In that, we have more challenges. That means that we have to pay a lot. There are benefits out of that costs. The allocation is not equal. That I think is do with the inclusivity. Those who are benefiting from that, I think are inclined. That means developed nations are being benefiting. We do not want to see that, the inequality of the allocation. In our SAC meeting, we had discussed that we should be multi-domestic for Ajinomoto. Multi-domestic should be what Ajinomoto doing and have the competitiveness in there. That's what we thought about. By region, global risk, regional risk. As a multi-domestic, they should take and they should provide a solution and create a solution for each individual regions.
In that sense, in our discussion, I don't know how this is going to be actually exercised by the management, but I think good. You should think locally, but for knowledges, you should globally think that. They should be limited and produced and moved in the region. I think in knowledges we have to think about globally. Inclusive transformation. Inclusive means co-value creation. That needs to be done, and that structure needs to be built by Ajinomoto. Then for the investors and for the consumers and for the workers, I think this is going to be very rewarding company and attractive company, I think. Very attractive with good partnership. I may not be answering your question directly, but that's my answer. Thank you for your question.
Thank you. Yes, thank you very much. That's all from me. Thank you.
Thank you very much for the question. We'd like to take the next question from Yamaguchi from Goldman Sachs.
This is Yamaguchi speaking from Goldman Sachs. I have two questions to raise. Regarding HR development, my first question, Ajinomoto's KPI, how do you define your KPI for talent development? Could you elaborate on this matter? My second question pertains to the last page of the sales per capita and business profit per capita. I wonder whether these are the ultimate KPIs. Maybe the story is different for the backside workers. Could you please elaborate your KPI for or the process for HR development? My second question pertains to the business portfolio that was previously highlighted. I wonder whether this is perfectly fit for today's topic. There are non-profitable or unprofitable businesses that were streamlined under previous rounds of business transformation or structural reform.
Speaking of frozen food in the past, well, the stock market wonders whether or not Ajinomoto should continue providing frozen food business. Professor Davis highlighted the fact that the council actually debated what to discuss and what not to discuss at the council level. I understand food versus non-food, if you could detail about the business portfolio, that'll be wonderful. Thank you very much.
Yamaguchi-san, thank you very much for the questions. I'd like to address the second portion of a question, I'd like to ask Yamamoto-san to handle the first element of your question. Starting with the business portfolio, in the Midterm Index-Based Management Plan, we will deliberate on this matter or detail on this matter. Asset-light approach will be further evolved. As earlier announced, by 2015, JPY 200 billion asset-light approach will take place by 2025.
We are even accelerating the pace, not waiting until 2025. We already achieved JPY 150 billion asset-light. There is remaining JPY 50 billion left to be achieved by 2025. It's not one single project worth JPY 50 billion, there are multiple projects to be explored in order to complete this JPY 50 billion worth asset-light approach. Towards this midterm goal, we will have this executive training in September to consider ways of business portfolio, we'd like to explore multiple directions or possibilities on this matter. Speaking of business value, not only economic value, that also encompasses social value. In order to generate value to the society, that needs to be led to the economic value, this process is visualized. For example, with frozen foods, regarding economic value, maybe the economic value of frozen food may be low, as you point out.
However, on our part, going forward, in order for people to obtain better balanced diet, especially in North America or ASEAN or Western countries, high unit price Gyoza products, frozen foods, will have a greater contribution to society and greater value for the economy. We are actually preparing the plan to achieve that. We'd like to formulate a detailed plan on frozen foods to the shareholders, the detailed plan needs to be executed fully. Those will be the details that we'll be reporting in the midterm plan. Speaking of electronics materials, which is the current growth driver. Seven to eight years ago, people wondered why Ajinomoto initiated this electronics business. Those were the advices we received already from shareholders. That helped us to evolve the electronics division, to this level. This led to a concrete investment plan.
I believe that we can do the same for frozen foods. We need to make sure that the concrete business plan will be submitted. Regarding business portfolio, once we compile this concrete plan, it needs to be executed fully. Within the next MTP, we will focus on this business portfolio we can enhance business activities. We'd like to ask Yamamoto-san to answer the first question.
Thank you very much for the question. Regarding talent development, what KPIs are we deploying for HR development? To answer to that question, as I announced today, speaking of investment evolution and productivity, those are the KPIs.
Outside that, speaking of HR development or HR asset development, as I mentioned in my presentation, female decision-making participation, which needs to be raised, and expertise in cross-sectional networking interaction, as well as KPI relating to human assets and HR development within the engagement survey. This year, we will introduce the ASV realization process, which needs to be finalized. By 2030 Roadmap, when we present it in March next year, we will introduce new KPI on this topic. I hope that answers your question. Thank you very much.
Yes, thank you.
Thank you very much, Yamaguchi-san. Next question, Fujiwara-san from Nomura Securities, please.
Thank you. Fujiwara from Nomura Securities. I have a question to Professor Scott. In the slide, you mentioned that from trade-off to trade-on. You talked about this. Honestly speaking, many companies are going into trade-off. That's my perception, and that's how I really feel. In Ajinomoto, what is a differentiation factor? It enables it to change it from trade-off to trade-on. For example, top management's seriousness, or AminoScience technology and assets. What would be the driver for Ajinomoto to go into trade-on? Professor Scott?
Thank you very much. Well, this is embarrassing question, and it may be very difficult to understand. Fujie is sitting on my left-hand side. What is the seriousness of President Fujie? I would have to really say that he is really, really serious. This is true. Yes, this is true.
Well, in Bridgestone and Seven & i Holdings, Suzuki, Ishibashi, and Sompo Holdings, Sakurada, I think they are good at transformation, and I learned a lot from them. I smell a lot from President Fujie. I think this is a common thing for those people. They're not satisfied with the current status. That's a starting point. So far they have been doing various things, and they have the results, yes. In the future, in order to go, who is going to be the enemy? It's you in the past. We have to evolve, transform. The top management's determination, the boldness, the determination. That's very important. Yes, I am teaching management in university, and I am using various theories and talking to the students that there are so many theories and so forth. I think the difference here is mindset, I would say. Seriousness.
This company is very good at this. Not just that, but as you mentioned, intangible assets. Ajinomoto have lots of Ajinomoto intangible assets that could be utilized, developed in the future. This could be led to the scientific possibilities. AminoScience, I mentioned. Yes, I was mature in this field, and in the past two years, I learned a lot about it. Yes, not just human being's body, but in animal body, amino acid is working. What is the effect and function? What is the potential? They taught us a lot. Yes, I'm saying to Ajinomoto people that you have to explain it to other people, and more and more should be utilized in your product and services. Not just myself, but the member of the SAC are mentioning that they are doing it. For example, in Thailand, high value added agriculture, cassava production is done.
This originally was a very severe farming as a cycle, I think Ajinomoto have partnership in Thailand, that it could create more values and create more in the future. Of course, the cassava should just be eaten at that site, that is going to be utilized amino acids material. Based on that solution, they are providing various added value and products and profits and making another investment. That is a reality. The SAC members say that easy to say, difficult to do. We're saying that we should do more, more. I think those people outside the company do not know about this story. We're telling them, "You should tell others more about it." I see President Fujie determined, showing us. Yes, maybe President Fujie, you should tell that, your determination.
Thank you very much. Yes, maybe. Yes, I should. Yes, passion to our purpose. I think that's the important thing. Trade-on. The word trade-on, recently, we're using it internally, relatively speaking, we are one of the company that was doing trade-on naturally. I was the president of Brazilian company. Amino acid and Ajinomoto, we are fermenting the sugarcane and making amino acid. Of course, in the side product, we have a lot of amino acids, we are providing that back to the ground, or may be utilized as a fertilizer. That profit is creating a lot. We have the circulation type of business. As a result of that, the cost will be reduced, or maybe in some cases, more profit. Not just myself, but many of our employees are experiencing that and globally found in it. That's our strength, I think.
In a new location, what should we be doing? I think that's how we could create business. Yes. Thank you very much for your good question. Still, we are not yet achieving our goal, we would like to evolve more. Thank you very much.
Thank you.
Thank you very much for the questions, Fujiwara-san. We'd like to take more question. Morita-san from Daiwa Securities.
This is Morita speaking. Nice to speak to you all. I'd like to ask you one question pertaining to materiality, which will be announced next month. What is the likelihood of achieving that materiality? I'd like to ask each one of you, for all the presenters, starting with Professor Davis. In order to execute materiality, you have set, I'm sure, concrete set of materialities. What can be attained?
What is the difference between what can be attained and what cannot be attained in order for you to identify materiality? This might be a repetition of previous questions, where does Ajinomoto potential lie and how are they promising? How viable is it? That, in order for you to execute materiality, you require HR resource to be allocated on this matter. This question pertains to Yamamoto-san. You need to advance your HR reform and, well, how are you going to permeate Fujie-san's enthusiasm across the organization in order for you to achieve a higher creative level? What is the driving force for the further reform? Finally, to Fujie-san, well, I understand your full commitment. It's very keenly felt, to be more specific, speaking of organization structure, well, apart from your passion, could you please be more specific about this matter?
Thank you very much for the question. This is Davis speaking. This is a very difficult question to address, but this is a very risky question. If I were to answer that directly, because we are yet to submit our proposal to BOD, I don't want to disclose the details. This is very tempting, but I cannot comment fully. However, Morita-san instead. Well, on the very next day of our announcement, I can visit you to explain the details once we submit our proposal to BOD. Well, maybe Morita-san may be mad at me, but I cannot disclose the detail. I'm very sorry. However, I can tell you a very similar story. Two points. By 2050, materiality we've identified by 2050, unfortunately, the council, there is no fortune teller or prophet within the council. We cannot tell what's going to happen by 2050.
There may be a story of science fiction equivalent, but that is not attainable. Rather than focusing on scientific fiction, by 2050 or 2040, what is a situation where Ajinomoto will be fully appreciated? If that's true, what can we do in order for Ajinomoto to reach that stage? By when and how and what to do, what must be attained by what year? Those were the process we have investigated or adhered to. Rather than focusing on scientific story, we wanted to be process-driven. We call it a grand design, which was created, and right next to it, PDCA of KPI, which is the materiality. On top of that process is realized. I skipped the explanation, but a few years ago, maybe it was three years ago, Morishima-san, yes?
Yes.
We had a more quiet materiality identification process, which was completed within a separate forum, but it was only a few years later, we were solicited to be the Sustainability Advisory Council member. What is the purpose of us seemingly duplicating the effort? I already mentioned that the materiality is already identified. That's what I told to Nishii-san, the previous CEO. Those materiality that were already identified, that were transferred to the process that we adhere to. There were something that were missing, which was later incorporated into the long-term plan. Maybe that's different from one year or two-year cycle, but this was conceptualized and incorporated into our strategy, and we measured, and we disclosed, discussed with stakeholders, and we performed this cycle. That was what we advised. It was a process-driven based.
Materiality is not just a cake in the pie in the sky. Unfortunately, I cannot disclose the detail of our proposal, but on the very next day, I can even visit you to discuss the details of this.
Thank you very much. I truly look forward to it.
Thank you very much for the question. This is Yamamoto speaking. In order for us to complete this materiality, how are we going to reform the HR department or HR system? Well, there is no single solution to this matter, but I'd like to raise two points. Within Ajinomoto and outside Ajinomoto. First, within Ajinomoto, to put it simply, we'd like to encourage people to take on new challenges. Those will be the measures to be implemented. For example, if they are passionate about one thing, we need to provide the opportunity.
There is very few participating in this voluntary participatory training programs or programs. Those need to be encouraged. Those fully motivated need to be encouraged. In-house, well, we should not just keep deploying internal personnel. We should actually deploy external HR resources as well, because there are talents out there who are well-versed in this matter, so we can work together. Across the boundaries of our organization, the boundary is becoming more blurred. We'd like to ensure that we provide a work environment where everyone, every single person, can shine. I wonder what Fujie-san has to say. He's very enthusiastic about this whole approach. Could you please comment?
Yes. Thank you very much. This is Fujie speaking. I'm too passionate about this. Please refer to page seven of my presentation materials.
In terms of the Midterm Index-based Management, which will be executed down the road, this is a key point. Traditionally, we used to announce a three-year midterm management plan, but amid the uncertainty of the global economy, we have a detailed plan. It was all about the plan itself, but we decided to abandon this three-year MTP. Rather, we wanted to focus on a long-term approach, and a very ambitious one, and a very bold one. In order to attain a lofty ambition or reach the next higher level, this is the midterm KPI that we call OKR. Our goal is not to 100% achieve this goal, but in order for us to reach to a higher level, what is the path that we must follow? This is what we'd like to focus on.
Speaking of sustainability or materiality that was identified by the council, the final report is about to be submitted. The capital cost, which will represent corporate value, and how to lead to growth rate, and how to generate cash flow in order for us to attain a higher level, the midterm KPI will be formulated. In order for us to achieve those midterm KPI, the path must be identified or explored. There will be 20 different roads ahead in order for us to attain this midterm KPI. Once we identify each path, and if we go along with the path as planned, if we are outside the path, then we should seek another approach to attain that midterm KPI. At the executive level and the mid-management level, we'd like to explore different opportunities. Speaking of my passion, I hope that I'm not overly passionate about this.
We need to carefully monitor this at each stage so that we can monitor rigorously about the progress to present the shareholders. Morita-san, thank you very much for the questions.
Thank you very much. It was edifying. Thank you.
Thank you very much, Morita-san. Although the time has surpassed the scheduled time, we would like to take one more question from Miura-san from Citigroup Securities. This is going to be the last question.
This is Miura from Citigroup Securities. I have two questions. One, I was really impressed. The presentation was excellent. Ajinomoto, I thought it was a complicated company, but in a sense that is diverse. About women, about the social initiatives, and also the personnel structures. You have diverse type of things, and taking advantage of that, you are making good management. I felt innovation in your company. Talking about diversity and valuing diversity, I think we have positive factors. Evidence, I think is shown. I would like to hear some of the examples of such evidence and diversity. I think for the coming years, we'll create benefits to you. I think you have the image of harvesting things from that benefits. Could you talk about that?
Thank you for your question. Diversity. What are the positive facts and what have been generated? I think that was the question. Thank you very much for commending. I said thank you very much, and we would like to do our best more. Of course, there are many facts there. To be specific, first, how many diverse employees do we have and how many people are there out in the field doing their work? I was not able to comment on that today, but for example, through the HR management system, we became to know the facts. That is a direct diversity factor.
What we expect is that from diverse people, employees, I think they should challenge on new things so that they can create new things that has not happened before. Innovation. We want to mix people that creates innovation. Through that, we want to see new ideas and leading to new products. Quantitatively, maybe not from the cause-effect analysis, maybe will not show up, but we will try to do that. Thank you very much.
Thank you. Last, another question to President Fujie. In one word, what is the corporate value of Ajinomoto? We see market capitalization as a benchmark. Sustainability was talked today. What is the value creation for you?
I think that including market capitalization, financial value, and the sum of financial value and the future value created by intangible assets, I think it's a corporate value. That is shown on page seven. With the plan, I would like to come with specific results.
Thank you very much indeed.
Thank you very much, Miura-s an. That is the end of the Q&A session. Lastly, not least, from Fujie, we would like to hear a few words.
Thank you very much for participating our event. We're sorry that we went over time, but thank you very much for sharing your time with us today. Through the dialogue with you today, we noticed a lot of things through the dialogue with you and through our executive at the executive committee meetings. We'd like to introduce what advice we received from the shareholders in order for us to keep evolving ourselves. There is no end to our transformation. Therefore, I truly look forward to our continued dialogue with the shareholders like you. For that, I'd like to solicit your continued support. Thank you very much for today.
This concludes our IR Day event. Thank you very much for your participation. That concludes our meeting. Thank you very much