Good morning, everyone. Thank you very much for taking your precious time to attend Ajinomoto Company's business briefing session. We thank you very much indeed. I am the emcee. My name is Kaji from the Investor Relations group. First of all, I would like to introduce the participants from Ajinomoto. We have the member of the board, representative executive officer, President and Chief Executive Officer, Mr. Fujie. Member of the board, representative executive officer, Executive Vice President, Mr. Shiragami. Executive officer, Senior Vice President, General Manager of Food Products Division, Mr. Masai. Executive officer, Vice President, General Manager of AminoScience Division, Mr. Maeda. Executive Officer in charge of Finance and Investor Relations, Mr. Nakano. General Manager of Bio-Pharma Services Department, Mr. Otake. Six members altogether. Today's session, we expect to finish in about two hours.
First of all, there will be a one-hour presentation from the company, followed by a question-and-answer session. Please be advised that the materials to be used for today's meeting is made available on Ajinomoto's homepage investor relations section. Please take a look at it as adequate. Please be advised that this session will be recorded all the way to the question-and-answer session, which will later be posted on the company's IR site. Please be advised of that. Without further ado, we would like to begin the meeting immediately. Mr. Fujie, the floor is yours. Good morning, ladies and gentlemen.
My name is Fujie from Ajinomoto. Well, thank you very much for taking your precious time out of your busy schedule to attend this briefing. I was very much looking forward to today's briefing session. The 2022 business briefing is today's meeting.
The new executive structure that was started from April, I will talk about the ASV management evolution, the current state, and also the future plans going forward. Those are the topics that I would like to cover today. We look forward to today's session. Now, on the next page, these are today's message that I would like to convey during today's business briefing. I think this is self-explanatory because now that we have a new management structure, I would like to talk about the four points. Towards the evolution of ASV management, effective April 1st, we have implemented a 100-day plan. As a result of that, we have speeded up our execution. In the first quarter, we were able to achieve an increase year-over-year in both profits and revenue. We were able to achieve this record results.
Going forward, we will formulate the 2030 roadmap for medium-term index-based management so that we can continually and dramatically increase our corporate value. In the last 100-day, the new management structure, we were able to steadily achieve a gear change, if you will. The second point, toward our sustainable growth of business, we will address business model transformation. I will talk about this as well. Also through the integration of food and AminoScience, which is one of the strengths of Ajinomoto Group, I will talk about how we have achieved this integration and what are the plans for the future. Also the fourth point, I would like to talk about the next-generation growth driver.
Actually, the Bio-Pharma Services is positioned to be the growth driver, especially the technologies that we have cultivated with the CDMO business together with its customer base will be combined together with our proprietary manufacturing technologies as well as solutions capability that we can contribute to boosting further growth. Those are the four points that I would like to cover today. I myself will talk about these three points as you see here. This is the vision of Ajinomoto Group. We aim, what we aspire to be, the red section in the middle. We would like to contribute to greater wellness for people worldwide, unlocking the power of amino acids to resolve the food and health-related issues associated with dietary habits.
In fact, we would like to reduce the environmental impact by 50%, also we would like to extend the healthy life expectancy of 1 billion people. The next page. With the new management structure in place from April 1st, there are things that we would like to carry over, carry forward from the former team, which is about purpose, passion, and operational excellence. The first is the purpose, unlocking the power of amino acids to resolve the food and issues. Secondly, the passion, also operational excellence. We would like to work on these three points in a steadfast and thorough fashion. Next page, please. These are the things that we would like to further evolve in the future, which is about speed up and scale up. We have been working on both ends. Now, toward speed up and scale up.
From April 1st, we have implemented the action plan for the 100 days starting from April 1st. On the left-hand side, there are things that directly connected to ASV outcomes, the four points there. Also on the right-hand side, there are functional things that accelerate and support the pursuit of ASV, which are written in the right-hand circle. The timeframe for realizing this plan, actually, there are three major ideas. There are things that produce results within 100 days. Secondly, creating roadmap in 100 days. Third, identifying issues in 100 days. Those are the approach to the time frame. The summary of the 100-day plan is provided here. As you can see here, we believe we have successfully been able to achieve a gear change in a steadfast fashion aimed at speeding up our management.
As you can see, number one and two, purpose, passion, and operational excellence, also speed up and scale up, is something that we have addressed over the last 100 days. The third point, the sustained growth of corporate value. There are three points under this. One is steady promotion of organic growth. We are going to pursue steadfast promotion of organic growth also at the same time strengthen efficient management. Secondly, the thorough visualization through data and rearrangement of evolution of business portfolio, thereby looking at the changes in consumer's behavior, we will rearrange and evolve our business portfolio. Number three, through innovation in the four growth area driven by Business Model Transformation, we will further achieve growth and improve the profitability that we can drive the overall growth of the company.
Number four, continued strengthening of sustainable management foundation and organizational structure and operations to continue providing value to the future. Number five, we will connect the impacts of COVID-19 and the Ukraine situation, and lead it to revamping the company. That's summary of the last 100 days. Through this 100-day plan, we'd like to evolve Ajinomoto management under these scenarios. This slide shows the scenario. Purpose and times passion and OE, as well as speed up and scale up, those will be the basis to strengthen healthcare, food and wellness, ICT, and green areas. Those are the core growth areas to drive growth. In addition, we'd like to propel our organic growth as well.
In order to do that, business portfolio needs to be reconstructed further. It is buttressed by management cycle evolution as well as intangible asset strengthening, including marketing, advancing brand strategies and others, as well as midterm index-based management and business division collaboration, as well as intangible asset enhancements. Through these activities, we'd like to involve the stakeholders who share our purpose, including investors as well as Sustainability Advisory Council. Those incorporate materiality perspectives and that we value.
Also we set up a Value Creation Advisory Board and incorporate their innovative perspectives as well. Next slide, please. This shows our first quarter results for fiscal 2022. Amid global environmental changes, by responding to this changing environment, we were able to take swift actions and this raised our ability to respond. That's why we made a strong start, resulting in revenue increase as well as profit increase. Since the adoption of IFRS in 2016, the record was the highest quarterly results. This was a very good start for the year. However, going forward, we need to closely monitor the impact of Ukraine and lead to the level of, or reach the level of fiscal remodeling. Next slide, please. This shows in order to continuously improve our corporate value, we need to strengthen our management capability.
In order to do that, we adopt or introduce rolling forecast. We are going to introduce rolling forecast. In ASEAN and Brazil, monthly visualization involving rolling forecast has been introduced on a trial basis. The point is that we need to make sure that we grasp the current state of affairs and then enhance our capability to foresee to detect early signs so that frontline workers, together with the management, can examine and implement the necessary measures. These are the key points. In order to do so, visualization through data needs evolve. This shows the vision for 2030. This is how we perceive our future in 2030. Currently, business profit base, two stars comes from foods and AminoScience constitute the rest of our business. At least 3%-5% needs to grow the food business and the AminoScience based on the current trend.
Seeds that already planted, we can achieve double-digit growth, continue achieving double-digit growth in AminoScience. By 2030, both AminoScience as well as Food Products will become a 50/50 in terms of our united entity. By unleashing the power of amino acid, we can provide more solutions to solve food and health related issues so that we can continue enhancing corporate value, and we will be such a unique entity by then. This is how we perceive our future, and we are making a business planning to achieve this. To be more specific, on March 1st, we will announce the next detailed index-based plan in greater detail. We are making preparations towards that announcement. Next slide, please. In order to raise corporate value, intangible assets need to be our focus because they are the source of corporate value.
We are to strengthen our intangible assets, including talent, technology, customer, and organization. Those will be enriched further. Next slide, please. To encapsulate under the new management system, in order to, or by evolving SB management, we are to realize sustainable and exponential corporate value enhancement. To do so, we are to formulate a mid-term index-based management, which is the 2030 roadmap, by changing gears and making a jump start. We'd like to ensure that we will formulate the next 2030 roadmap. We'd like to solicit your continued support. That concludes my session.
Thank you very much. Fujie, thank you very much.
We'd like to move on to the presentation by Mr. Shiragami.
Hello. I am Shiragami, Executive Vice President. I would like to talk as a Chief Innovation Officer. I'm responsible for business model transformation and a growth strategy towards 2030. I would like to talk about this topic. These are the things that I would like to cover today. First of all, I would like to explain the overview of the BMX business model transformation. In 2030, and also beyond that in 2050, in order for us to achieve continuous growth, the Ajinomoto Group has developed a three-level growth strategy. The foundation is the steadfast growth of the core businesses. Through more selection and concentration, we would like to strengthen organic growth. The BMX that I would like to cover today is represented in the red box there.
From 2025 towards 2030, these are the areas that will drive our growth. We will leverage our strength. We have identified four growth areas where we can make contribution. Through the integration of Food and AminoScience, we would like to drive the growth. Further, beyond 2030, we will continue to create new generation businesses. We would like to lay the stepping stones towards the future. Through this three-level growth strategy, we will achieve corporate value expansion and achieve sustained growth of the total group. Next, please. For business model transformation, BMX, this is about transitioning from the existing business model centered on products to digital plus sustainability. Through these changes, we will further evolve the existing businesses at the same time towards the society that we aspire to realize.
We would like to backcast from the outcomes, designing from what we would like to achieve as solutions, therefore, make a business transformation to a market and consumer-centered solutions business. Of course, this is the strength of Ajinomoto, and we will work together with the human resources who have shared the same purpose. Through open innovation, we would like to work for the social value creation and also leveraging our intangible assets and take advantage of this and realize BMX. Next page. In the 100-day plan towards 2030, we have identified four BMX areas where we can leverage Ajinomoto Group's strengths. Beyond 2030, the earth environment, social system, and the consumers, POF, those are defined as picture of the future, POF. We have sorted out all the serious needs.
Based on that, we have developed the values that we wanted to create and provide. Based on these outcomes, we have set healthcare, food and wellness, ICT, and green as the four growth areas of the company. Healthcare and ICT, of course, will be covered later as part of the amino acid business transformation, and these will be further accelerated because these are already delivering results. In the food business, data and personalization through these DX, we would like to further evolve the food business and growth strategy for sustainability. Through the integration of food and AminoScience and food and wellness area, the green areas, we would like to drive growth for the company. For the core six businesses, as you can see on the left-hand side, based on the current structure, we are working on this in this vertical function.
On top of this, with the BMX, for a transverse structure, we would like to, based on the outcome, myself and the two business heads will work together so that we will have a dedicated person as well as for the business unit so that we can achieve a transverse organization structure to promote mid-term, short-term, and long-term growth. This matrix organization is already implemented in DX promotion, so this is already a standard approach for the company. Towards the creation of social value, we will drive open innovation and work together with various ecosystems, together with startups and some various companies. By working together with stakeholder for co-creation, we would like to expand the growth of the company. From here, I would like to talk about the growth strategy for healthcare and ICT, especially focusing on the sustainable food business.
For healthcare and also ICT growth strategy, let me talk about this. As it was mentioned by Mr. Fujie's presentation, towards 2030, we have developed a growth strategy for 2030, and in the AminoScience business, we will aim to achieve a CAGR of over 10%, a two-digit growth. In the AminoScience business, over the last 10 years, we have implemented business model transformation. We have captured the change of society and made a selection to concentration to highly value-added businesses. Overseeing the next 10 to five years, we have made R&D investments heavily in the growth areas. We made that transition. In the healthcare and ICT, we have achieved a 17% growth as of 2011. We will continue heavy and prioritize investment in these growth areas so that we can maintain this high growth rate going forward. The next page.
The last 10 years of growth was driven by the electronic materials business and healthcare business, because we were able to offer highly value-added services and service that has a high entry barrier. We formulated this model. In this model, we foresee the innovation that will create the new market and conceive the business that could capture the value chain of the industries that will be created. By foreseeing the winning pattern in this stage, we co-create together with partners and the building blocks of the company and move on to the next stage. After that, when the value chain is socially implemented, we will scale up the business through the ecosystem and realize ASV. By evolving these formats going forward, we would like to further accelerate the growth of the company and also apply the standard approach to the total BMX of the company.
In the healthcare and ICT area, in addition to the growth of the existing business, after 2020 through BMX, the business contribution as newly, we believe we shall be able to achieve an incremental sales revenues of JPY 80 billion by 2025 and JPY 120 billion by 2030. In terms of business profit, we expect to achieve incremental JPY 50 billion in business profit by 2030. The healthcare area BMX comprises CDMO business, cell culture media, as well as cellular and genetic solutions, as well as medical food business. Through this business, we would like to drive growth. Later, Mr. Otake, head of the Bio-Pharma Services Division, will talk about the oligonucleotide business as well as the CDMO business in more detail. In the ICT area, for the existing semiconductor packages, we will support high frequency and implement higher performance implementation.
Also to expand the applications, we would like to enter the encapsulating material and magnetic material business, also participate in the ION consortium so that we can further accelerate the growth. The business development and technical development for ICT and healthcare areas has a time lag of 5 to 10 years. Therefore, we believe we are well-positioned to achieve growth by 2025. From here, I would like to talk about the growth strategy for the green area. One of the future pillars that we aspire to establish is the sustainable food business. I would like to talk about this sustainable food business in the future. In line with the growth of revenues and population of the world, the meat demand is also expected to heighten in the future.
According to the Agriculture & Livestock Industry Cooperation's projection, the food consumption by 2050 is expected to increase by 1.5x compared to the current level, which will also induce an increase in the meat protein market, which is estimated to be JPY 3.6 trillion by 2040. According to Kearney's projection, 60% of the food meat market is expected to be replaced by alternative meat or cultivated meat. Here, it shows the change of consumer surveys results for sustainable food. In the world, there are increasing number of people who are selecting sustainable food despite the higher prices. This shows people's mindset and behavior changes vis-à-vis the keyword of sustainability.
In light of these changes in market and also consumers' awareness, we as a group have took a earth perspective, in order to contribute to the food and health of people, also to solve the protein crisis and the food supply issues through our business. Of course, food is very important element in order for people to exert their individuality, and diversity is expanding. Especially from the viewpoint of alleviating the environmental burden, a more advanced solution is needed for food. The food ingredient development, sustainable food system for lower environmental burden, sustainability-related initiatives will have to be rolled out under the understanding of the different food culture so that we can achieve affluent lifestyles that are delicious and healthy for everyone. We will work together with innovators of the world and transcending the different categories of B2C ingredients and B2B.
Generate lifestyle solutions that can allow people to express their individuality through our environmental solutions. For our business strategy, because we already have a foundation in the U.S., we will use B2B2 business as a central activity, because U.S. is a market where alternative food demand is quite advanced. In the Americas, we have already established a strengthened lineup for the plant-based solutions through the provision of seasonings and also for the ingredient textures. We have already established a business size of JPY 10 million. This will be the core, and we will add more resources in the future and work together with various companies and standardize a solution, thereby expand the business size as quickly as possible. The second strategy is the conversion between food and AminoScience, thereby establish strengthened solutions.
In the alternative food market, where plant-based protein is already established a market, also in the cultivated meat market, where growth is expected in the future, also air protein, which is expected to be environment-friendly. In this market, we have various solutions. We have unique solutions that are only available with Ajinomoto. By combining our technology such as cultivated media, we shall be able to achieve deliciousness and enhance the health and nutrition value, of course, develop a safe and highly socially viable solutions that offer a better value for the product. In the green sustainable food business, we are developing ecosystems through various innovations, in March of this year, we have made an investment in the company called SuperMeat.
On top of the cultivated meat and technology and platform owned by SuperMeat, combining it with our own technology, we will be able to roll out the new, delicious, and very nutritious cultivated meat to the market. Also, based on the different food culture of each region, we will roll out delicious and nutritious and healthy menus and products. We have decided to establish sustainable food labs in each region. Of course, at the headquarters, we will establish Sustainable Food Promotion Department. The potential offered by food and science is so large. By establishing a business model that is not just a one-off thing, we would like to achieve growth for the company. That was all for myself regarding the growth strategy through BMX. I also talk about the details of the sustainable food business. Thank you very much for your attention.
Next presenter, we'd like to invite Masai as well as Maeda .
Ladies and gentlemen, this is Masai speaking, the General Manager of Food Products Division, and I'll be the first speaker. Maeda , who is well-versed in food, is heading the AminoScience, and myself, who is well-versed in AminoScience, is now taking responsibility of looking after the Food Products, and we'd like to mutually grow the businesses. This is a repetition of the previous slide, so I'm going to skip. Today, I'd like to focus on the B2B aspect of our business. We are a unique food company in a sense that more than 30% of our JPY 1 trillion sales is generated by B2B business. In 2021, B2B accounted for 32% of the total sales, and the breakdown is shown on the right-hand side. AminoScience as well as Food are 60/40.
Globally speaking, we have a direct sales network to sell our products to the world's leading food companies as well as pharmaceutical companies and cosmetics companies and semiconductor-related companies. Approximately 400 companies have purchased over JPY 100 million. Among them, 50 companies have purchased over JPY 1 billion from us. Next slide, please. What products are we selling? I'm sure you are well familiar with this, but starting with AminoScience, we provide electronics and amino acid-related materials, Bio-Pharma Services-related products. Under Food Products, solution and ingredient products as well as flavors, as well as sweeteners products are provided. Next slide, please. This shows B2B or B2BP as well as BP margin ratio. We are strong because we sell materials and ingredients, and that is why we are able to grow the portion of B2B.
Amid the rising material and fuel prices since the Ukrainian crisis, the B2B is performing well because we provide key materials and ingredients. Next slide, please. This shows how we are generating synergies, especially focusing on the intangible assets as the bottom half indicates. Talent as well as customer and technology assets will be integrated globally in order to provide values to customers. In AminoScience, electronics, high speed development, as well as the collaboration with pharmaceutical companies, as well as in Food Products, value chain will be our partner to work with and also co-create values with startup companies and others. Next slide, please. This shows the technological aspects as to how we can contribute to the food by fusing or integrating these two entities. On the right-hand side, the deliciousness technology. On the left-hand side, excuse me. Amino acid alone can represent this deliciousness technology.
Speaking of the senses, there is taste as well as smell and texture. Starting with the sense of smell, excuse me, taste. This is well known for umami seasonings, kokumi, and low salt, as well as high-intensity sweeteners. Those are contributing to the deliciousness technologies. As for the olfactory-related products, we haven't touted our related products. However, amino acid technology is mostly reflected in various products. By applying pressure on protein, then there is the reaction called Maillard reaction, and utilizing this, various flavors are generated. Incorporating amino acid technologies, we are contributing to the tastiness or deliciousness of foods. Regarding texture, in order to improve texture or softening meat, we have technologies to achieve this. By clarifying those technologies, we'd like to emphasize this in our marketing aspects as well. The other aspect is nutrition.
By applying our knowledge accumulated with animal nutrition, going forward, alternative meat is going to be a strong focus. Plant proteins lack certain amino acids, by supplying those deficiencies or through a process called fortification, we can contribute technology-wise. Next slide, please. Starting from here, we'd like to switch to Maeda. The floor is yours.
Thank you very much, Masai . This is Maeda speaking. Let me provide you some certain ideas and applications to introduce as a topic of the integration of Food Products and AminoScience. Currently, in multiple businesses, we grasp wants and needs of customers to provide products and services. In food service, we provide not only seasonings and foods, but also provide recipes and how to cook.
In AminoScience, we provide supplements in aminoVITAL, as you are all aware, we also utilize our technology such as AminoIndex to determine the risk of developing certain risks or certain diseases. However, traditionally, each business unit has been working in silo, exploring the best approach to each customer separately. Next slide, please. Going forward, with the society facing larger issues and social issues, this is just one example. For example, dementia is one case, this will have a very big burden, not only for the patient itself and also for the people taking care, the family members, for example. That will have also an economic burden on them. In order to reduce the risk of dementia, it is not very difficult. Adequate and right level of exercise is considered to be effective, also well-balanced nutritious intake, including protein, is going to be very effective.
It's not about solving a problem by taking a relatively expensive supplement. It's not going to prevent that. We believe if we can transcend the boundaries of business, then there is a good potential that we can support and provide solutions to these people who are concerned about dementia. This offers a great opportunity. Supporting economic dietary menus and providing adequate nutritious, providing support for exercise, providing risk assessment once a year through AminoIndex. As needed, we can also provide supplements if need be. This is just one example. In this way, for certain issues and for some certain problems, how to provide our resources and utilize our intangible assets so that we can provide value to society. That's one output that we should study as the integration of food and amino acids. The next page, please.
This is already started, which is about the integration of food amino acid and delivering results already. This is something that we have not introduced to you in any significant manner, this is a business relating to our medical food business. For certain diseases, if there are any abnormalities for metabolization and also for digestion and absorption, for these people, they cannot maintain their health. For those people, they prescribe and give guidance, this stands in the middle between food and medical products. Our company have been providing the raw material amino acids for these needs. In 2017, we acquired a company, Cambrooke, in the U.S., and thereafter we made a foray into the U.S. market in a full-scale manner. The next page.
The medical food business has a very big total size of about JPY 2 trillion on a global scale. Going forward, this is expected to achieve a stable growth of 5%-6% per annum. Why this will grow? The whole society is aging, lifestyle diseases are increasing, and also because of the development of m edical treatments, more advanced medical food will become available. Therefore, we believe this market will continue to enjoy stable growth to become a very important element of our business in the future. Overall, JPY 3 trillion is a very large medical food market, but it doesn't mean that we are going to address everything.
We have a clear focus in our business activities. Ajinomoto Cambrooke is focusing on the amino acids related metabolic disorders and protective effects in hyponutrition and protein allergy. As you can see here, the diseases are directly related to proteins or based on the amino acid, which is the source of protein. Those are the causes of the diseases. Just by removing certain types of amino acids or making different combinations will be needed.
Ajinomoto Group is well-versed in the functions of amino acids, so that's the reason why we are able to provide good quality products and assure good outcomes. Medical food is of course, positioned as one of the food, but usually, life sustenance is given priority. The existing products are not really tasty. In the case of Ajinomoto, we can take advantage of our deliciousness technology so that we can improve the taste of the product itself. We are achieving both deliciousness as well as high function. That's the reason why we are receiving great reviews from customers. In those areas where we made an entry, we are actually outpacing the competitors and achieving a high growth in our market share. Actually, after the acquisition of Cambrooke, we have also acquired a new company based in Ireland called Nualtra in 2020.
Both of these two M&A cases as good news. They believe that they were purchased by the best owners. In a very short period of time, we strengthen our unity and work together as a group company and delivering results to the society. Next page, please. This is the last page for myself. Medical food business. This is an area where we can exert our strength, both in terms of functions as well as deliciousness, and we are focusing clearly on these opportunities. The business size is still very limited at this stage. We have confidence that this is an area we can leverage our deliciousness as well as our technology, and also we have a very strong access to the channel and patients through our group companies such as Cambrooke.
We believe this is an area that can enjoy continuous strong growth in the future. That's the reason why I wanted to introduce this company to you. Just briefly, that's all for myself and I would like to give back the microphone to Masai to summarize this part.
Once again, I would like to just introduce one last page, please. To the collaboration of amino acid and food, what are we doing in each area? Actually, if you look at the bottom right, Japan, Southeast Asia and Latin America, in these areas, the deliciousness technology is well deeply rooted in making contributions to people's daily activities. Using our food platform, we are going to strengthen the AminoScience business in the future. When it comes to North America and Western markets such as Europe, the AminoScience business has been the centerpiece.
Already, the frozen food business is already there, established. Of course, we are working on various fronts in European markets. We will utilize the AminoScience platform so that we can strengthen the food offerings in the future. For the bottom left, East Asia. In this area, the deliciousness technologies were proven to be functional here. Of course, we have various production sites as well as sales sites in East Asia. For each market, through the collaboration between food and amino acids, we would like to roll out new businesses and expect for high expansion there. That's all for myself, Masai and Maeda for the integration of food and AminoScience business.
Thank you very much, Masai and Maeda. Next, Mr. Otake, please.
This is Mr. Otake speaking. I'm the General Manager of Bio-Pharma Services Department. Next slide, please. This is the agenda for today's presentation. First, I will give you an overview of our Bio-Pharma Services business, followed by an introduction of our oligonucleotide contract manufacturing service, which is the main focus of today's talk. Finally, I will introduce other initiatives for new value creation. Next slide, please. Let me begin with an overview of the Bio-Pharma Services business. This shows the mission and vision of Ajinomoto Bio-Pharma Services. Our mission has it that we help to improve the health of humankind. Our vision is to be a leading and trusted and innovative partner to all our stakeholders. The value of our business is to continue to create ASV through our unique business by maximizing the Group's tangible and intangible assets.
The word unique or proprietary holds a key to differentiate ourselves from other companies. Next slide, please. This map shows our Bio-Pharma Services global sites. In Japan, there are four locations, including the headquarters. Starting with Kawasaki plant, is an R&D center for creating new technological values. Tokai plant is the main manufacturing base for oligonucleotides using AJIPHASE. And GeneDesign in Osaka, which is a CDMO specializing in oligonucleotides. In Europe, in Belgium, we have Ajinomoto OmniChem, which is the largest base for Ajinomoto Bio-Pharma Services. Although its main business is small molecule contract manufacturing, but it is enhancing its uniqueness as a manufacturing base for flow chemistry and more recently, AJIPHASE. In India, we have Ajinomoto Bio-Pharma Services India as a wholly owned subsidiary of Ajinomoto OmniChem. This company mainly deals with small molecule contract manufacturing.
In addition, Ajinomoto Althea is located in the U.S., San Diego, and is capable of providing aseptic liquid formulation as well as manufacturing large molecule API. Next slide, please. The middle bar indicates the evolution of our CDMO business. With the acquisition of OmniChem in 1989, we entered the CDMO business with two bases, one in the Tokai and the other in Belgium. After a period of stagnation, with the support of management, we established a manufacturing base in India in 2011 and entered biologics in 2013 with the acquisition of Althea in the U.S. In 2016, we acquired GeneDesign to strengthen our nucleotide drug structure. This way, now we can handle various modalities encompassing small to medium to large molecules, and also we are capable of aseptic liquid formulation.
Until 2020, each company has grown its business under separate and individual strategies, but in 2020, we united as one brand of Ajinomoto Bio-Pharma Services, creating synergies between each site. We are also optimizing the production capability as well. Based on or utilizing these tangible assets as well as intangible assets such as technology going forward, we'd like to strengthen and add value to our businesses in order to accelerate growth. Next slide, please. From now on, I'd like to introduce oligonucleotide contract manufacturing service, which is significantly growing lately. Next slide, please. In 2016, we acquired GeneDesign as part of Ajinomoto Bio-Pharma Services. Starting from there, our business plan is to triple our business by fiscal 2030. To do so, or for that, oligonucleotide contract manufacturing service will be the main driver of growth, which is based on AJIPHASE.
We entered this business in 2012, and with the acquisition of GeneDesign in 2016, we strengthened our capability. More recently, we acquired multiple pipelines based on AJIPHASE, significantly growing. AJIPHASE was originally developed as a peptide synthetic technology, but we realized that it could be diverted to oligonucleotide production technology, so we decided to develop the business. Going forward, we will optimize the global structure. By 2017, we'd like to grow our capability 6x by 2016 compared to 2011 and also improve the current technological skills. Then cultivate new customers as one united entity to accelerate future further growth. By 2030, we'd like to grow the sales of business to more than 20x the 2016 level to be the next growth driver for the entire Ajinomoto Group. This touches upon or germane to customer information, we must refrain from disclosing further details.
Based on the current pipeline development stage and risks and other factors, we think this is a very realistic goal, and this is our minimum target. Here, I'd like to explain the characteristics of nucleic acid-based drugs, whose active ingredients are oligonucleotides. Nucleic acid-based drugs combine the advantages of both mainstream small molecule drugs and large molecule drugs in terms of both ease of synthesis and drug efficacy. Following antibody drugs, this is drawing attention as a new modality. In the bottom half shows the recent pipeline. Oligonucleotide drugs have been approved one after another. The ones in the development pipeline are also significantly increasing. Next slide, please. With the market growth, the oligonucleotide contract manufacturing CDMO is expanding or is expected to grow significantly as well. Currently, Nitto Avecia, U.S. Agilent, as well as German BioSpring are the main competitors.
Nitto Avecia is the top player in this market with the top share. We believe that Ajinomoto's oligonucleotide CDMO business is already in the number two group in terms of scale, together with Agilent and others. To grow further, we need to differentiate us from other companies as well. Next, I'll introduce oligonucleotide synthesis method. All oligonucleotides are produced by a method called solid phase synthesis, except for ours. Solid phase synthesis is characterized by the fact that the reaction can be performed efficiently, reducing the production time. That means the production time is very quick. On the other hand, it requires very expensive dedicated equipment and has limited scalability. Therefore, the production volume per batch is limited to a few kilograms.
Other companies have adopted a strategy of spending CapEx to install several lines of large solid phase synthesizers in order to meet the robust demand and achieve scale expansion. On the other hand, AJIPHASE does not require specialized equipment and can use general-purpose reactors normally used for small molecule production. This means that the equipment used for small molecule production can be converted or diverted to value-added oligonucleotide production without large investment. Although AJIPHASE is the world's only practical MAPSS synthesis technology, the production time is longer than that of the solid phase method, making it unsuitable for small lot production of wide variety. In other words, in terms of business model as an example, solid phase manufacturers need 100 projects worth JPY 500 million to achieve JPY 50 billion in sales, while AJIPHASE requires five large-scale projects worth JPY 10 billion.
That's the perception of our difference in terms of business model. The Tokai plant is currently shifting to a value-added business model, whereby it will stop acquiring new small molecule contracts, which have been its mainstay business, and will divert the excess capacity to AJIPHASE. This is a switch to a value-added business model. We are able to differentiate ourselves through mass scale production based on AJIPHASE, leading to a significant business growth. Next slide, please. This table summarizes the characteristics of solid phase synthesis and AJIPHASE. You may think that it would be better to develop only AJIPHASE alone because it can differentiate us from other companies. However, as shown in the lower left graph, which indicates the cost by scale. On a small scale, solid phase synthesis is overwhelmingly superior in terms of speed and cost.
Solid phase has its limit as to scalability and cost reduction. Meanwhile, AJIPHASE, like small molecules, allows reactions to be carried out in large batch or large reactor, making it possible to manufacture oligonucleotides on a scale exceeding 100 kg in a single batch, using a 10,000-liter vessel or container. This means that the advantages are generated as the scale increases. Since any item starts on a small scale, we thought that the solid phase synthesis is necessary to make a solid market entry. This is why we acquired GeneDesign in 2016, to gain access to solid phase synthesis. Next slide, please. That means Ajinomoto is the world's only oligonucleotide CDMO that possesses both solid phase and liquid phase synthesis. We are ready to optimally serve customer needs, varying from micrograms to over 100 kg.
As the last topic, I'd like to introduce other CDMO business initiatives that are unique to our group. Today, I have focused on AJIPHASE so far, which is our oligonucleotide contract manufacturing business. We are also developing the ones or businesses that follow AJIPHASE. We will create new business centered around protein contract business, CORYNEX, TALEMAX, and ADC-related AJICAP. Trying to make sure that these will follow as second and third AJIPHASE. Furthermore, by establishing mRNA technology based on RNA fermentation technology and gene therapy, we will achieve significant business growth towards 2030 by creating new businesses. Next slide, please. Finally, we will further accelerate our growth by fully utilizing both tangible and intangible assets we have accumulated as a group. Especially by strengthening businesses that can differentiate us from our competitors, such as AJIPHASE. Next slide, please.
We recently launched a website that introduces Ajinomoto Bio-Pharma Services technology in an easy-to-understand manner. Please have a look. That concludes my presentation.
Thank you very much, Otake. Now we'll begin the question-and-answer session. If you have any questions, please indicate by pressing the Raise Hand button. The first question came in. This is from Saji from Mizuho Securities. Please begin your question.
Thank you very much. I have two questions. One is about the Bio-Pharma Services. On page 10, there's about $4.5 billion of the oligonucleotide drug market, which is about more than 600 billion JPY market according to the current currency rate. You said that you were able to acquire market share comparable to Agilent. Looking into the future, do you think you're also projecting a similar growth level towards 2030? Is that your projection? Let's say you have a market share of 20% or so, are you expecting higher expansion, further expansion of your market share?
Can you just share with us your assumptions for the market projection, growth projection in future? What are the assumptions that you have utilized? I just wanted to confirm the medium-term potential of this business. That's my first question. May I continue or
Oh, please continue.
Okay. The second question is about Shiragami's presentation, which is about the texture and your strength of Ajinomoto. This is a question relating to your strength, including the texture of food. On page seven, I think this was mentioned by maybe Maeda and Masai presentation, page seven, about the deliciousness technology. You have provided us about a lot of details behind this technology. Texture and flavor technology, you said that there's a strong need, although you haven't introduced so much details in the past.
The question is, in the market, IFF and Symrise included, and Firmenich maybe, I think there are four companies that are recently, reorganization is taking place, consolidation is taking place. They are expanding their size, the scale of the business. As it was mentioned by Mr. Fujie in the beginning, the B2B users. Let's say, you have 50 companies that have a size of JPY 1 billion. For those major users, flavor, the aroma, are there heightened demand from them, including raw materials, for example? Your approach to aroma, your flavor, what is your current position? Of course, in the past, I believe, you were interested in M&A activities in these fronts. At this point of time, for you to brush up the deliciousness technology, other than texture, what's the importance of aroma, the flavor? Can you just comment on those points?
Thank you very much for the question. This is Otake speaking. To answer the biopharmaceutics, on page 10, this is a nucleic acid-based, excuse me, oligonucleotide drug, CDMO. My topic today was oligonucleotide. However, apart from that, I'm sure you are aware that mRNA is a hot topic because of the pandemic, and also vector is also another type of nucleic acids. Our target is oligonucleotide. This oligonucleotide alone, we wanted to extract this information alone in order to highlight the market growth. We encapsulated all aspects of nucleic acid. But speaking of oligonucleotide alone, the market size is around JPY 50 billion-JPY 60 billion. In 2030 About 1/3 will be oligonucleotide. JPY 150 billion in absolute terms. That is the size we expect in 2030. Speaking of oligonucleotide contract manufacturing, our growth will be on par with the entire market growth. I hope that answered your question.
Thank you very much. That means that, speaking of JPY 50 billion market size, you said that about JPY 10 billion is your sales. Once that market tops JPY 150 billion, your revenue will top JPY 30 billion. Am I right in thinking, right?
Well, to be more specific, we cannot actually disclose such specific data for the oligonucleotide contract manufacturing, but that's about the right impression or perception. Let me deal with the second question. This is Masai speaking. Historically, flavor manufacturers worldwide were important amino acid customers. They purchased amino acids to manufacture flavors by themselves, especially in the U.S. U.S. is a big market for aromas or flavors. The customers tend to purchase from flavor manufacturers. Ajinomoto is not producing and sell flavors by ourselves.
We have established an internal technology to produce a flavor to add to our own products. That is the reaction flavor that is being introduced to B2C products. Did I answer your question?
Yes. Thank you very much. Currently, B2B customers, the main users of your company, how relevant is aroma for those customers, or is flavor?
Yes. Well, flavor matters to customers, I believe. However, I might repeat myself here, but we are not selling flavors directly to those customers. But amino acid-based flavors are used to produce our own products.
I see. Considering the global trend, the end users are deciding whether they directly purchase, source those materials from the suppliers or from Ajinomoto, but they may be natural-based flavors. Well, the end users may be toiletry manufacturers or other cosmetics companies, and aroma or flavors are in great need. Considering what you have said, you are adding those flavors on top of your taste and other products. Is that right?
That means that flavor is not so important. We call it a deliciousness technology, which needs to satisfy all aspects of taste and smell and texture. Speaking of that, well, smell is only one aspect of it, but the smell alone is not independently acting.
I understand. Thank you very much. Thank you.
Mr. Saji, thank you very much for the question. We would like to move on to our next question. This is from Miura from Citigroup Securities. Please begin your question.
Hello. This is Miura from Citigroup Securities. Thank you very much for appointing me. Actually, the presentation was very positive, although that content was quite difficult for me, it was a very fruitful meeting so far. Thank you very much. I have a question. The first question is for Mr. Fujie. You have this fist, and you raised your fist and talked about scale up and speed up on repeated occasions. When it comes to scale up and speed up, in concrete terms, what are you actually aiming to achieve? Can you give us some more concrete strategy examples?
In view of your strategy, if you can give us some concrete example, that would be quite informative for me. Also, the other question is about the biopharma business. This time around, you had a very progressive disclosure this time around, that was quite splendid, especially on slide number nine regarding the oligonucleotide drugs approval and the certification tests. All these data have been disclosed for the first time this time. 5 approved drugs - 16 approved drugs , the number of approved drugs increasing from 5 approved drugs - 16 approved drugs .
To be more specific, in which country, for example, in which region or in which area do they represent? Or maybe just a category will be fine. If you just elaborate what kind of drugs in which area have been approved. Also regarding the clinical trials for nucleic acid-based drugs, from 300 trials- 700 trials, this doubled. How many of them are at phase III? Can you just elaborate on those details? If that can be done, that would be appreciated.
Thank you very much for the question. All right. Miura, thank you very much for the question. First of all, regarding the speed up initiative, actually, we are trying to expand, accelerate the speed of execution. At the executive committee meeting, of course, we conduct extensive discussion, we are speeding up the decision-making. This gear change is already implemented, and I think we are successful in this effort. So far, for the executive committee meeting, the management meeting, the employees of Ajinomoto, directors, and only the Ajinomoto people comprised this meeting.
In addition to them, the Value Creation Advisory Board was added. We can incorporate the viewpoints of investors and all the opinions for Takeshi Saito, who is very strong at the business transformation activities. In order for us to expand the corporate value, from that viewpoint, we have incorporated Saito-san from Value Create in our team. Also, to some extent, brand and corporate brand, product brand, how to evolve these brands. From that perspective, we have also invited Miki-san from Interbrand to take part in our executive meetings so that not only internal opinions, but also outsiders' perspective can also be incorporated in our discussion relating to the management of the company. We decide and make decisions and accelerate the speed of our execution.
In that regard, on page 16, we have given some reference information as to the things that we delivered results in the 100 days. The major items are listed up here for the management structure and organization structure and operations. In these areas, we believe we were able to deliver firm results. Especially, we are committed to accelerating the speed. From the top management, we are taking the lead and showing the example. Also, for the scale-up portion, especially today, the Executive Vice President, Mr. Shiragami, informed you and talked about business model transformation, and the four growth areas were identified by him. We are focusing on these four areas. Currently, the specific plans and actions for business model transformation in the four areas are now being discussed and studied. We are now trying to develop the standard model to achieve this.
Through these initiatives, we would like to expand the scale. At the same time, the existing business' organic growth will also be addressed in a proper fashion. In addition to the organic growth of the core business, on top of that, we would like to achieve business model transformation. Especially in the four growth areas, we will inject resources in terms of human resources and monetary resources so that we can properly propel these activities. Thank you very much.
Let me deal with the second question. On the nucleic acid drug. Speaking of what countries have approved recent nucleic acid-based drugs, in the U.S. as well as Europe, as well as in Japan, those are the major countries where products are being launched. The number of products in the pipeline is also increasing. At this point in time, I don't have the specific data to answer that question. In phase III as well as phase II, the increasing number of phase II and III, and there will be more to be launched. I hope that answers your question.
Thank you very much. I have additional questions. I like your instruction, Otake. These nucleic-based drugs, there were five drugs in 2016, but the number has risen to 16 drugs in 2022. It's on a cumulative basis, yes. Until 2016, there have been five being approved, and then after that, from 2016 to 2022, the number has increased by one. I understand. Excuse me, it has increased by 11. What category or therapeutic area are we talking about for these approved drugs? Could you instruct me on these nucleic-based drugs?
Yes. There's a wide-ranging therapeutic areas on a trial basis, but the ones approved are the genetic diseases or hereditary diseases. The advantage of this nucleic acid-based drug is the ones that cannot be targeted by the small molecule, such as muscular dystrophies. That is where progress is made, especially on the clinical trial front. Speaking of hereditary diseases, I'm very novice at this healthcare, but there are multiple hereditary diseases. What specific therapeutic areas can these address? In particular, muscular dystrophy is a clear example. Also familial hypercholesterolemia.
I understand. Those are already launched?
Yes.
In terms of the clinical trials, that has increased to 700 in phase. 1/3 is phase III.
No, there isn't such. Only a few hundred, a few dozen of them.
Speaking of absolute value or absolute terms, there's only a few dozen or 20 trials-30 trials which are in the phase III?
Yes, that's right.
What is the number of clinical trials being applied? Under review for launch?
I don't have a specific answer to that question, but going forward, we believe that more and more will be approved one after another.
Is the number of products being applied for review or approval, is it greater than 20?
No, it is lower than 20 or 30.
Thank you very much. It's edifying.
This is Fujie speaking. In terms of the number of drugs being approved, an indication indicated a therapeutic area. Let me expound on this. As Otake indicated, apart from the ones indicated by Otake, the hepatitis B prevention and also acute poliomyelitis disease. There are multiple diseases, hereditary ones, that have the indication that these drugs can be indicated for.
Thank you very much.
Thank you, Miura. The next question, this is from Satoshi, Nomura Securities. Satoshi, I think you're on mute. I cannot hear you. Please unmute yourself.
I'm so sorry about that. I just unmuted myself. So sorry for the inconvenience. I have two questions as well. One is about for the green food, the sustainable food. From before, plant-based food is an area where you can apply amino acid, and you talked about the business potential. You've been addressing this for several years back. Now this time around, you are showing a touching focus on this possibility, sustainable food. The market itself, I think, is growing to a sizable level. I think the areas where you can support and provide solutions is expanding. Can you just once again elaborate on the business expansion potential for sustainable food? My second question is relating to CDMO. In your explanation, you talked about the solid phase and also the other synthesis technology, and will that become a de facto standard in the future?
On the other hand, maybe these other companies are also hanging in there for the solid phase as synthesis technology. You are in the second group and also you are in the second level, but the other companies are in the first leading group level. Maybe a seismic change may happen in the future, some phase change may happen. Are there any risks that that kind of change will never happen? Can you share your viewpoint on that? That's my two questions.
All right, I would like to answer the first question. This is Shiragami here. Satoshi, thank you very much for the question in the first place. As for the sustainable food, among them, the plant-based protein, as it was mentioned by Satoshi, the market itself, as you rightly pointed out, is expanding. That's our recognition as well. We too, for this market, currently, the centerpiece of the growth is happening in the United States. U.S. is the driver.
In the U.S., as I mentioned during my presentation, amino acid and various other unique solutions that are only available for Ajinomoto, including texture materials as well as seasonings. We are providing all these solution materials. As a result of that, the market size has grown to JPY 10 million already. Of course, without doing anything in addition, I think the market will continue to expand. Furthermore, the mimic-based, quasi plant-based solutions are provided, things that are similar to meat. That is becoming trendy and becoming a fashion. We, in addition to these solutions and the deliciousness, we would like to offer nutritious value as well as health value so that we can provide solutions that are requested for plant-based products. We believe we can exert our strength in that way even further.
Mainly in the U.S., in this area, we plan to provide those solutions and try to expand our market share as much as possible. Through these solutions, we would like to monopolize the market in certain areas so that we can capture this market as much as possible. We will work together with other players in ecosystem so that we can expand our initiatives. Other than that, in each region, the plant-based products, the perception and the approach are quite different because there are many different ethical approaches to this food.
Depending on the situation and circumstances in each region and market, maybe rather than Japan, Southeast Asia is showing higher amount of awareness to these alternative food, like cultivated meat is now making a very good success in Singapore, for example. The demand level will have to be taken into consideration. Based on that, we would like to decide the proper target for the plant-based food in the future. That's our thoughts. Did I answer your question?
Yes. Thank you very much for that. For plant-based, actually, globally, there are many companies that are active on a global scale. Are you approaching these companies? What kind of actions are you taking to approach these companies, global players?
Yes. Major global players have entered the space through M&A activities, for example. Those are what we are seeing already. We would like to put our strengths at the core, and rather than doing everything ourselves, we would like to ally with companies and tie up with them and collaborate with them, those players who are strong in this field, so that we can grow together. That's our strategy.
All right. Understood. Thank you very much for that.
Regarding the Bio-Pharma Services, I would like to answer the question. Solid phase versus liquid phase, whether that will be the standard for companies to achieve both. When I speak with our customers, solid phase alone is unlikely to source stably. Therefore, liquid phase, such as AJIPHASE, is required. That is the feedback we get from our customers, including companies, competitors, including pharmaceutical companies. Liquid phase synthesis is on the rise. AJIPHASE is only commercialized liquid phase methods, but we need to maintain our differentiation as well as the competitive edge. In order to do that, we need to improve our own technology. We need to closely monitor the global trend. Speaking of the risks, as Fujie mentioned earlier, Nitto, Avecia, and others who are liquid phase companies, made a significant CapEx to achieve one ton or two tons in terms of production output.
That's their level of investment. As their competitor, we see it as a threat. There is a limit as to what this solid phase can do in terms of the scalability. That is why AJIPHASE, which is capable of mass production, will be in greater need as well. That is what we believe.
Thank you very much.
Satoshi Fujiwara, thank you very much for your question. We'd like to take a question. Next question from Takagi, SMBC Nikko Securities.
Nice to speak to you all. This is Takagi speaking. I'd like to ask this question of Shiragami. On page 12, BMX growth driver, sales target as well as business profit targets are stipulated here. In business profit 2020 forecast versus 2025 forecast, there is a difference of JPY 30 billion, and this is the accumulation of business profit. Could you be more specific about this? JPY 10 billion comes from CDMO. What is the breakdown of this business profit? Explaining the discrepancy between the two forecasts. That is my first question. Second, this question is for Otake. Initially, you disclosed a CDMO center, the nucleic basic drugs. To what extent the business profit will grow? You mentioned this earlier in a previous briefing session. In terms of sales growth, from 2021 to 2023, that's where sales will be accumulated, and sales will be further accelerated in 2024 and 2025.
That was the perception. Could you please update us on this picture? Is it accelerating ahead of the pace, or is it in line with the plan? Are we expecting a further acceleration in 2024 and 2025? What is the perspective for profitability, especially centered around AJIPHASE and TALEMAX and AJICAP? You always mention these two in your presentation, but how commercializable are they? What potential do they have? Could you please edify me on these two prospects?
Thank you very much for your question. The first question will be answered by myself on page 12 of my presentation. This will be answered by myself, Mr. Shiragami. The question was from 2022- 2025, especially the business profit, the growth of the business profit between 2022- 2025. I think that was your question, right? If you look at it, in 2022, the forecast for 2022 is slightly less than JPY 10 billion. The plan for 2022, JPY 30 billion. For 2025, approximately JPY 30 billion. That is the outlook that we have provided to you. The details are already provided at the bottom there. Healthcare, CDMO, cell therapy support, medical food, for example, also the ICT area, functional materials. This is the total number for these individual elements.
We are very sorry, but we do not disclose the individual breakdown from each element. That is not available for disclosure. For healthcare and ICT, the proportion of these two, as of 2022 and even for 2025, healthcare area is significant, more significant in terms of the contribution to the total business profit compared to ICT. On top of that, among the healthcare, as it was just mentioned, as we have introduced as on topics, CDMO, nucleic acid, these contribution accounts for the largest bulk. Also, on the next page, we have introduced some other information on the next page. Yes, here. CDMO. That was about the details of CDMO are provided here. Also for the green part, cell culture media for regenerative medicine and also cellular and genetic solutions.
For the growth of the amino acid business, we are expecting further growth in these opportunities. They are going to make greater contributions in the future. Also, medical food that was presented by Maeda, they will also start making contribution to business profit. Those are the components of the business profit increase.
Thank you very much for that. For the ICT area, functional materials, this is not ABF. Is this ABF or not? Again, we don't disclose the ABF number in particular, we disclose rather the functional materials, but inside the functional materials, the new businesses after 2022, new products after 2022, which are likely to generate the business profit and the business model transformation contributions are illustrated here. The biggest contributor will be CDMO, cell therapy, and then the personal nutrition. Is that correct?
Yes. Compared to healthcare, the ICT will have a smaller contribution, cell culture and also medical food, they make a reasonable level of contribution. That's how you should see it.
In that case, other than CDMO, cell therapy, and also personal nutrition, medical food, is there any possibility that you fall short of these targets and make not a significant contribution? What are the risks for that potential?
Overall, the risk is not that significant, especially when it comes to the 2025 timeframe. I don't think the risks are significant. It's quite insignificant, rather. From R&D all the way to commercialization, after the adoption by customers are decided and actual revenues are generated, it takes 5- 10 years. There's a time lag of 5- 10 years or so. As of 2025, these numbers are really supported by some visibility of the customer already. The revenues from those opportunities are likely to expand in line with the growth of the market. Those are factored in in these projections.
As far as the fiscal year 2025 numbers are concerned, I think the probability of attaining this are quite high. However, because of COVID-19, if the medical treatment modality changes altogether or if major change occurs on the global scale, well, of course, if that happens, of course, such kind of possibilities are not factored in in this potential, but those could be the rule-out factors.
I'd like to deal with the Bio-Pharma Services related question. Takagi-san mentioned the oligonucleotide contract manufacturing, that will be quite stagnant in 2021 through 2023, but will accelerate in 2024 and 2025. Well, in reality, we have already budgeted the year marked for 2021 through 2023, and we expect a huge growth in the next fiscal year as well. I'm not too sure at what point in previously we have disclosed such a detail, but the details may have been changed. What I can say here is that long-term business plan has been formulated, to carry out our business in 2025 or 2030, our vision for 2030, we are making steady progress towards our vision in 2030. With an increasing likelihood of achieving our target in 2025 or 2030.
Apart from AJIPHASE, I have briefly announced, introduced other technologies including AJICAP, ADC-related technology, which is unique to Ajinomoto. Quite a number of customers expressed their interest in this technology. About a few dozen customers are in negotiation with the licensing agreements, part of which is already announced in press release. Going forward, to follow AJIPHASE, we expect that this will become a significant profit contributor going forward. CORYNEX and TALEMAX, which haven't grown into the level of AJIPHASE yet. However, we are formulating new strategy for these two technologies with narrower targets to enter these markets, to solicit customers. This is the future growth strategy for these two. These two technologies have high potentials as well, especially on TALEMAX, which involves the antibody production technology. This is for microbes. It can produce antibodies from microbes. Therefore, this has a high potential going forward. That is our perception.
Speaking of profitability, could you please expound on these two new technologies? The current profitability or expected profitability? Well, can you disclose? I don't know the current level of profitability. Say it's 20%. What is the future perspective? Is it likely to grow, increase further than 20%? That is your expectation, right?
Yes, that's right. Ajinomoto CDMO involved a small molecule, so we were close to CMO instead of CDMO. Now it has changed to CDMO, which involves our development capability. To add value, we've been shifting towards the CDMO business model to increase profitability. Towards 2030, we would like to further increase our profitability as well. You had it right.
Speaking of AJIPHASE alone, what is the profitability going forward? Do you expect to be further increased?
Well, to be specific, I cannot disclose any further than that, speaking of a specific technology, because it involves customer information. Our proprietary technology, by nurturing our own profitability, we can contribute to profitability for the entire group.
Thank you. My next question, AJICAP. What is the next technology? Is AJICAP the closest to become a profit contributor?
Yes. AJICAP is one. Also there's another one, flow reactor of OmniChem, which is proprietary to OmniChem, which I haven't had a chance to include in my slides today, but it has grown into a significant business. What is the timeline for AJICAP to emerge? Well, we have concluded some license agreements with AJICAP to our customers, and there are numerous inquiries involving AJICAP. Therefore, we expect a quick profit contribution from AJICAP going forward. In order for that to become a larger business, it will take more time. In 2030, by 2030, we'll make a profit contribution by then.
This is my last question. Speaking of originality in a very limited amount of time, what is your originality?
Ajinomoto can do what's unachievable by others. We can do what others can't do. We need to be careful. Customers are not seeking technology. Customers are seeking the products and pharmaceuticals. Technology is just our tool to be deployed. Therefore, we cannot be too much or complacent with technology development alone. We need to be conducive to meet customer needs. That is the key.
Thank you very much.
Thank you, Takagi. The next question will be from Daiwa Securities. Hiroshi, begin your question, please.
This is Hiroshi from Daiwa Securities. Can you hear me?
Mr. Hiroshi, your voice level is too low. Can you hear me?
Yes, barely.
Can you try to speak up as much as possible?
I'm so sorry about this. If my voice level is low, please let me know. I have two questions. The first is about CDMO business. Right now, your competitive advantage and originality, you talked about that, which was very interesting for me. On the other hand, what are the areas that you are inferior compared to the competition or the challenges that you're facing today? Can you once again explain these points for the CDMO business? My second question, as it was mentioned by Mr. Shiragami, BMX.
In order for you to promote BMX, you are trying to standardize the model, which was something very interesting for me. In the AminoScience B2B business, your explanation covered some results, the tangible fruits that you have already achieved. In the case of B2C or the B2B in the food business, in these areas, I think the standard model is not really established. At least from the outsider's point of view, it's not really visible. I believe you're also trying to establish the winning model for that. What are the bottlenecks or challenges to achieve that? Can you share your views on these points? That would be appreciated. Thank you.
Let me address the CDMO related question. Let me confirm what you have asked. Speaking of our originality, you asked about the risk of what is inferior to competitors, and what are the challenges that you are currently facing. What is inferior to competitors? Is there any point? I understand. Thank you very much. Our competitors are very formidable in terms of solid phase synthesis. They have a large customer base. They have a proven track record. They have a deep bench of customers. Nitto Avecia, Agilent, and BioSpring are very formidable in terms of their solid customer base. AJIPHASE is able to mass produce, and we are following them. Well, trust that we are inferior to them in terms of the customer base as well as trust built from those customers, and AJIPHASE needs to do more.
When you said track record, once you accumulate your own experience, can we narrow the gap? Is there any technological inferiority?
Well, speaking of track record, this is very difficult to say, solid phase synthesis, when I mentioned in my presentation, it can actually handle small load production of wide customer needs. In that sense, it is hard to beat solid phase synthesis in terms of customer base and track record of trust relationship. GeneDesign has solid phase synthesis, and OmniChem also possesses more than 30 years history of the CDMO. By cultivating their strength, we can further deepen our trust relationship with the existing customers. Speaking of technological inferiority or superiority, we need to be at par with the solid phase synthesis. AJIPHASE needs to be superior in order to beat solid phase synthesis.
Because of the advancement of solid phase, AJIPHASE needs to improve itself in order to become a better liquid phase synthesis to differentiate ourselves, so that we can maintain our competitive edge. This holds the key.
Thank you very much.
All right. Morita, for the second part of the question, I would like to answer it. This is Shiragami. On page 11, the business model, transformation model. Thank you very much for having good understanding on our model. As you rightly pointed out, in the healthcare B2B, this formula or this format or model, I think, can be applied, and we would like to further polish up so that it could be further improved. I think this is an area that is easy to address this. We are making progress in that area already. When it comes to the food area, for B2B, this approach, we believe this approach is viable, and we shall be able to make a standard model.
I didn't cover the detail for the B2B explanation earlier, but these models, these formats, when it comes to electronic materials, fast development system, we have already adopted this approach. Mr. Otake CDMO types of business, especially for the green food and sustainable food business B2B, we will roll these models out, and thereby achieve higher values and make a de facto standard for our business model. By establishing an ecosystem, we shall be able to achieve that.
But when it comes to B2C, as you rightly pointed out, especially when it comes to Stage 1, this approach to Stage 1 is quite difficult and complicated. Actually, I didn't cover this today, but in the food and wellness area, we are now contemplating this. But after all, at Stage 1, if it's B2C, we are talking about consumers, customers, local customers, for example. Those will be the customers that we have to address. Just by applying one scientific critical category, it's quite difficult because of these vast consumers or the end users. But still, by DX and advancing our D2C and EC as we try out these many different strategic options, CX, customers, market, when these things become more visible, I think we shall be able to apply this standardized approach in the future. Visualization will be the key for this.
After listening to all your explanation, in the area of B2C, you are now leveraging scientific approaches including databases. What you are communicating sounds to be quite different from your traditional approach. At least that's my impression. Is that correct?
Yes, exactly. As you rightly pointed out, the BMX's position started out as a position of DX 3.0. DX, the data standardization, personalization in the B2C area, this will be key, I believe.
Thank you very much. I understood.
Thank you. Morita, thank you very much for the question. Moving on to the next question, which is from JP Morgan Securities. Yoshida, the floor is yours.
This is Yoshida from JP Morgan Securities. Thank you very much. I also have two questions. The first is for CDMO business. Previously, your major customers were located in Japan, and you talked about the muscular dystrophy, which was often mentioned in your past presentations. In your current CDMO, what is the level of customer dispersion? Can you talk about that? Because in Japan, muscular dystrophy, I can only think about Nippon Shinyaku, and the pipeline is delayed. So one customer's pipeline delay, what kind of impact will that have on your business?
Can you talk about the customer dispersion versus the pipeline delay in the Japanese companies? What kind of impact will that have on your business? That's my first question. My second question is on how to read the material. Actually, in the business model transformation, in this presentation on page 12 of Mr. Shiragami's presentation, there was a graph talking about the sales and business profit growth, and also on page 13, which is about the growth strategies for healthcare business. If you subtract these two graphs, will that be indication of the ICT business growth? Can you elaborate on that point? Thank you.
Let me address the first question relating to the CDMO. Speaking of the number of customer pipelines, I think you were referring to the number of pipelines for AJIPHASE alone. But the entire CDMO, globally, we have customer base more than 100 customers. GeneDesign solid phase synthesis alone produces 1,500 nucleotides per month. We serve a large number of customers. It's intended to AJIPHASE, but we are not relying on one specific customer. We have multiple customers. As I mentioned earlier in my presentation, not only the Tokai Plant, but there's a manufacturing base in Belgium, and third party is also used to manufacture oligonucleotides. We have numerous or increasing number inquiries, although we cannot disclose the specific number. More than expected, our pipelines is very deep, deep-benched.
Speaking of the major nucleotide pharmaceutical companies, their delay in their pipeline, is there any global impact? Because you have a global presence, the impact is minimal. Is my understanding right?
Yes, that's right.
In previous briefings, you mentioned the location is centered in Japan, but now geography is wider because you have a much more global presence for AJIPHASE.
That's right. We've been emphasizing this. Well, I don't recall any specific briefing session where we emphasize the fact we only locate in Japan. We had a global presence, and I visit about 8x- 10x per year overseas customers. In the last 10 years or so, we wanted to be a global presence, and that's how we are operating now. Thank you very much.
The second question will be answered by myself, Shiragami. Yoshida, well, thank you very much for pointing out a very critical point. Well, why didn't we divide the healthcare and functional materials on page 12? If you compare these two pages and if you say that those represent the functional materials contribution, well, actually, my answer for that, I cannot say that there are some other elements included in there. What you just mentioned sounds right, I think. That's all I can say here. All right. Thank you. If you make a subtraction between the two slides, it looks as though this is only an extension of your existing businesses.
Not only ABF, other than ABF, other functional materials, we talked about the CSO and the magnetic material potential. Those are not included in these numbers on this page. No, for functional materials, as I just mentioned on page 14, all these things, including the performance enhancement for the existing semiconductor packages and also expanded application purposes, those products are also included. By including all these, the new businesses after 2022, the functional materials contribution for the new businesses, the incremental portions are represented in these numbers here.
Okay, I got it. Thank you very much. I understood.
Thank you. Yoshida, thank you very much for the question. Next, I would like to move on to the next question, which is for Mitsubishi UFJ Morgan Stanley Securities, Tsunoyama , the floor is yours. Tsunoyama.
Thank you very much. My name is Tsunoyama from Mitsubishi Morgan Stanley. I also have a question to CDMO and also for Mr. Fujie. For the CDMO business, the ordinary capacity for 2027, this is going to increase by sixfold the manufacturing capacity. The actual capacity, don't you have any bottlenecks or problems as of the current state? The result on the capital expenditures for a small molecule, for example, you are going to utilize the existing facilities for small molecules. Is it right to consider that the CapEx required for that will be limited?
The other question is for Mr. Shiragami on page 12. The numbers on page 12, if you look at these graphs, you mentioned earlier that the oligonucleotide sales is about JPY 10 billion-JPY 13 billion by 2030. If that is the case in terms of sales, other elements other than oligonucleotides, I think the CDMO will account for the bulk in terms of profits, but CDMO may be a different story for sales revenue. If there's anything you can add, that would be appreciated. My second question is for Mr. Fujie. As you said at the outset, you mentioned that the Ukraine impact will be utilized for revamping your corporate strength. Can you elaborate on that? What is meant by that message? I wasn't really able to understand, if you can add more color to that'd be appreciated.
Thank you very much for the question pertaining to CDMO CapEx. In 2021, we'd like to increase our production capacity sixfold. I mentioned in my presentation, OmniChem is also producing based on AJIPHASE and third party utilize AJIPHASE. Tokai plant, whose mainstay has been the small molecule, has already diverted to AJIPHASE. The existing facility can be utilized for AJIPHASE. It only involves a small amount of investment or almost no investment to switch to or increase production capacity of AJIPHASE. That is our strength. In terms of portfolio reshuffling, that is what we intended.
The current capacity, you have no issues with the current level of capacity?
Yes, that's right. As a CDMO, we like to avoid a situation where we are unable to fulfill orders we have received. Third party is being fully utilized. Not only just one, but multiple third parties are being utilized in order to fulfill the orders we receive using AJIPHASE to serve the needs of pharmaceutical companies. That is the current situation.
Okay. I would like to ask the second question from Tsunoyama . This is Fujie, by the way, I would like to address your question. Regarding the impact from Ukraine and utilizing that to improve our corporate foundation, I can talk about that dividing into short-term things as versus the medium to long-term things. For the short term, in the Ajinomoto Group overall, in fiscal 2022, initially, there were cost increase elements, including the packaging material as well as raw material, which amounted to JPY 40 billion or so. In order to offset this, there was about visibility for JPY 30 billion. At the beginning of the year, there was a shortage of JPY 10 billion or so. That's what we have informed you during the results presentation the other day.
Usually, constantly, we are keeping a close eye on the prices of the raw materials, and most recently, ammonium has come down to a level less than $900. This JPY 10 billion impact, because the raw material market trends has turned to favorability to us, this JPY 10 billion impact will become less than half than our original projection. The raw materials as the packaging and the logistic cost, we will keep a close eye on them and properly monitor them and speed up the countermeasures. Those are the revamping measures that we plan to implement. The specific measures, we will have a proper discussion with the customers for price hikes, for example. Each product for each area, when and how much price increase will be implemented. We also keep an eye on the situation of our competitors.
After the price hike is actually introduced, we will see how it unfolds in the market, whether that has translated into a sales reduction. Those are the things that we are already analyzing. Over the medium term, as much as possible, the raw material price volatility will be managed to control it to the minimum. For example, when it comes to fermentation raw material, we will increase the sources to not only one supplier to maybe multiple suppliers. Those sourcing partners who were not able to provide us with tapioca will support providing us with tapioca. Of course, and also ammonium. We would also like to look into the possibility of on-site production of ammonium so that we can deliver price benefits. Also we are now strengthening those suppliers through these efforts. All these are difficulties we will encounter them from time to time.
We will positively tackle them and turn into opportunities for us. That's what I meant by revamping all these situation into our corporate strength. By working together with all the management team, we are addressing these. Did I answer your question, Tsunoyama ? Is that okay?
Yes. I understood very well. Thank you very much. I just have one question to Shiragami. Just a confirmation of numbers on page 12. It was already explained.
Yes, I would like to try to answer your question, if I may.
Yes, please do so.
On page 12. If you look at page 12. In 2030, the healthcare and functional material breakdown, actually simply put in the most simple explanation in terms of business profit, healthcare and functional materials are almost on par with each other. You should put it that way. However, when it comes to sales, because this relates to the profit margin, and in that regard, healthcare will account for the larger proportion for sales contribution. Did I answer your question?
All right. If that is the case, then you talked about the oligonucleotide, and you talked about the size was about JPY 30 billion as a rough indication. JPY 20 billion or so from healthcare. Other elements like regenerative and also the cell culture.
Yes. Those are the personal medication tier.
Yes. I got it. Thank you very much.
Thank you very much for the question, Tsunoyama. Time has come to conclude the session. We'd like to conclude our question-and-answer session. Now we'd like to invite Fujie to give us a closing remarks.
Thank you very much for taking time out of your busy schedule to attend our business briefing. Thank you once again. As we communicated under the new management, we changed gears clearly in order to achieve scale-up and speed up. Through the question-and-answer session, some occasions, some questions we were unable to answer in a specific figure or numbers because of the consideration for customers' confidential information and competitors' condition. However, our policy is to disclose as much as possible wherever we can by hosting briefing sessions like this today. For that, we'd like to continue close dialogues with you who share the same purpose, and we'd like to keep enhancing our corporate value so that we can be mutually happy. That is our ideal state of management. Thank you once again for all your participation, and we'd like to solicit your continued support.
With this, we'd like to conclude our business briefing. Thank you very much for your participation. Thank you very much