Summary of Financial Results (Consolidated) of Ajinomoto Co.
for the Year Ended March 31, 2015
Net Sales JPY 1,006.6 Billion, Operating Income JPY 74.5 Billion
Ordinary Income JPY 82.8 Billion, Net Income JPY 46.4 Billion
Record Highs for Both Operating Income and Ordinary Income

TOKYO, May 8, 2015 - A summary of the consolidated financial results of Ajinomoto Co., Inc. (“Ajinomoto Co.”) for the fiscal year ended March 31, 2015 is as follows.

(JPY billions unless otherwise noted; figures rounded down)

Net Sales Operating Income Ordinary Income Net Income
Fiscal Year Ended
March 31, 2015
1,006.6 74.5 82.8 46.4
Fiscal Year Ended
March 31, 2014
951.3 61.8 68.8 42.1
Year-on-Year Change +5.8% +20.6% +20.4% +10.3%
Notes:Figures for the fiscal year ended March 31, 2014 have been restated to reflect a change in accounting policy.

Net sales for the fiscal year ended March 31, 2015 increased JPY 55.2 billion compared with the previous fiscal year to JPY 1,006.6 billion. Despite the impact of the absence of sales of the infusion and dialysis business units, which were spun off as AY PHARMACEUTICALS Co., Ltd. (hereafter, “AY PHARMACEUTICALS”), an equity-method affiliate, as of July 1, 2013, net sales increased contributed by factors such as the positive effect of currency translation, sales increase of consumer foods in overseas food products on a local currency basis and consolidation of Windsor Quality Holdings, LP (currently Ajinomoto Windsor, Inc.; hereafter “Windsor”), a frozen food manufacturing and sales company in the United States in which Ajinomoto Co. acquired a full equity interest on November 5, 2014. Operating income increased JPY 12.7 billion to JPY 74.5 billion due to a substantial increase in income from feed-use amino acids and consumer foods in overseas food products, and ordinary income increased JPY 14.0 billion to JPY 82.8 billion. Net income increased JPY 4.3 billion to JPY 46.4 billion, and net income per share was JPY 78.54 (JPY 68.67 in the previous fiscal year).

Dividends for the fiscal year ended March 31, 2015 are scheduled to be JPY 24 per share (including an interim dividend of JPY 10 per share) and dividends for the fiscal year ending March 31, 2016 are scheduled to be JPY 26 per share (including an interim dividend of JPY 13 per share).


An overview of consolidated results by business segment is as follows.
(JPY billions unless otherwise noted; figures rounded down)

Net Sales Year-on-Year
Change
Year-on-Year
Change (%)
Operating
Income (Loss)
Year-on-Year
Change
Year-on-Year
Change (%)
Domestic Food Products 321.8 +21.8 +7.3% 23.8 -3.2 -11.9%
Overseas Food Products 326.7 +34.4 +11.8% 34.1 +9.1 +36.4%
Bioscience Products & Fine Chemicals 239.5 +11.4 +5.0% 17.0 +10.6 +167.1%
Pharmaceuticals 39.7 -11.5 -22.5% 2.1 -1.6 -43.5%
Other Business 78.7 -0.9 -1.2% (2.6) -2.1
Total 1,006.6 +55.2 +5.8% 74.5 +12.7 +20.6%


In the domestic food products segment, sales increased JPY 21.8 billion compared with the previous fiscal year due to substantial growth in sales of frozen foods because Windsor became a consolidated subsidiary, among other factors, although sales of seasonings and processed foods were unchanged from the previous fiscal year due to factors including the pullback from the last-minute surge in demand before the consumption tax rate increase. Operating income decreased JPY 3.2 billion due to expenses incurred related to the acquisition of Windsor, among other factors.

In the overseas food products segment, sales increased JPY 34.4 billion compared with the previous fiscal year, with growth in sales of consumer foods on a local currency basis in addition to the positive effect of currency translation. Operating income increased JPY 9.1 billion due to the increase in sales of consumer foods and the contribution of umami seasonings for processed food manufacturers, as well as the positive effect of currency translation.

In the bioscience products and fine chemicals segment, sales increased JPY 11.4 billion compared with the previous fiscal year, with growth in sales of feed-use amino acids, amino acids for pharmaceuticals and foods, sweeteners and pharmaceutical custom manufacturing, which develops and manufactures pharmaceutical fine chemicals and active pharmaceutical ingredients on consignment, as well as the positive effect of currency translation. Operating income increased JPY 10.6 billion, with substantial increases from feed-use amino acids, amino acids for pharmaceuticals and foods, and pharmaceutical custom manufacturing, as well as increases from specialty chemicals and sweeteners and the positive effect of currency translation.

In the pharmaceuticals segment, sales decreased JPY 11.5 billion compared with the previous fiscal year, with the absence of sales of the infusion and dialysis business units, which were spun off as AY PHARMACEUTICALS, and the impact of National Health Insurance (NHI) drug price revisions and generic drugs, despite an increase in royalty income. Operating income decreased JPY 1.6 billion.


Consolidated Performance Forecast for the Fiscal Year Ending March 31, 2016

(JPY billions unless otherwise noted; figures rounded down)

Net Sales Operating Income Ordinary Income Profit Attributable to
Owners of the Parent
Fiscal Year Ending
March 31, 2016
1,263.0 82.0 85.0 50.0
Fiscal Year Ended
March 31, 2015
1,006.6 74.5 82.8 46.4
Year-on-Year Change +25.5% +10.0% +2.6% +7.5%

The assumed exchange rate for the fiscal year is JPY 115.0 to USD 1.

Notes:
1.In accordance with a revision of the “Accounting Standard for Business Combinations,” from the fiscal year ending March 31, 2016 the concept of “net income” has changed from the total after adjustments for minority interests to the total of profit attributable to owners of the parent and profit attributable to noncontrolling interests. As a result of the change, “net income” before the revision has been changed to “profit attributable to owners of the parent” after the revision.
2.The performance forecast presented above includes assumptions and projections on which the plan is based. Actual results could differ from the above forecast due to various factors.


Change in Segment Classifications
Until the fiscal year ended March 31, 2015, the classification of the reportable segments of the Ajinomoto Group has been Domestic Food Products, Overseas Food Products, Bioscience Products and Fine Chemicals, and Pharmaceuticals. From the fiscal year ending March 31, 2016, the segments have been changed to Japan Food, International Food, Life Support and Healthcare in accordance with a new organizational structure in line with the new business domains set forth in the FY2014-2016 Medium-Term Management Plan.

As for the main changes, Bioscience Products and Fine Chemicals has been divided into Life Support and Healthcare; Pharmaceuticals is included in Healthcare; frozen foods, which had been included in Domestic Food Products, has been divided and included in Japan Food and International Food; sweeteners, which had been included in Bioscience Products and Fine Chemicals, is included in International Food; coffee product business that had been included in Other Businesses is included in Japan Food; and the wellness business is included in Healthcare.



About Ajinomoto Co.
Ajinomoto Co. is a global manufacturer of high-quality seasonings, processed foods, beverages, amino acids, pharmaceuticals and specialty chemicals. For many decades Ajinomoto Co. has contributed to food culture and human health through wide-ranging application of amino acid technologies. Today, the company is becoming increasingly involved with solutions for improved food resources, human health and global sustainability. Founded in 1909 and now operating in 26 countries and regions, Ajinomoto Co. had net sales of JPY 1,006.6 billion (USD 9.17 billion) in fiscal 2014. For more about Ajinomoto Co. (TYO: 2802), visit www.ajinomoto.com.

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