Ajinomoto (2802) Investor Day 2025 summary

Leadership Transition and Succession Planning

• A sudden CEO illness in December led to a rapid succession process, with an acting CEO appointed and a new president selected within six weeks after three board meetings.

• The Nomination Committee had an emergency succession plan and a list of candidates, enabling a smooth transition.

• The new president, with a science and bio/chemical background, is expected to accelerate the 2030 roadmap and expand high-speed development systems group-wide.

• Succession planning is ongoing, with emergency, medium, and long-term plans regularly reviewed and candidates evaluated.

• Succession planning for the new CEO will begin within six months, with emergency plans ready to be triggered if needed.

Board of Directors' Evolution and Strategic Focus

• The board is shifting from a fixed agenda to a custom-made set of key management matters, emphasizing long-term vision, scenario planning, and external environment analysis.

• Directors are focusing on refining the 2030 roadmap, linking financial, capital, and portfolio strategies, and increasing discussion frequency.

• Prioritizing long-term vision, optimal capital structure, and large-scale M&A as part of the updated management agenda.

• Enhanced stakeholder engagement and brand value improvement are now core management themes.

• Governance improvements include optimizing board effectiveness and standardizing IT and DX strategies.

Executive Compensation and Sustainability

• Executive compensation includes fixed salary, short-term incentives, and mid-term stock-based incentives, with 20% of the mid-term incentive tied to sustainability metrics.

• Medium-term stock-based incentives are tied to ASV indicators, targeting ROE of 18% by FY30 and ROIC of 13%.

• Compensation policy aligns with medium- to long-term corporate value expansion, market competitiveness, and transparency.

• The compensation system is under review, with potential for incorporating best practices such as stock-based compensation for outside directors.

• Executive compensation includes basic, short-term, and medium-term stock-based incentives, with MTI paid every three years.