Strengthening the Business Structure for Further Growth Ajinomoto Co., Inc. and Nestlé Japan Ltd. Enter into an Agreement for the Transfer of a Portion of the Medical and Nursing Care Foods Business and a Sales Tie-Up

TOKYO, February 29, 2016 – Ajinomoto Co., Inc. (“Ajinomoto Co.”) has entered into an agreement today with Nestlé Japan Ltd. (“Nestlé Japan”) for the transfer of Ajinomoto Co.’s diets for protein-energy malnutrition (enteral nutrition)^* business and a sales tie-up in the medical channel (medical and nursing care facilities, dispensing pharmacies, etc.) for nutritional care foods (peroral nutrition for medical and nursing care) in Japan. Ajinomoto Co. aims to expand its business for further growth by specializing its medical and nursing care foods business in the field of nutritional care foods to strengthen its business structure, as well as to meet the diverse nutritional needs of Japan’s super-aging society.
* Food products that supplement nutrition using tubes through the nose or into the stomach of patients who cannot ingest food orally

In 1969, the Ajinomoto Group capitalized on its expertise in clinical nutrition to launch diets for protein-energy malnutrition through the medical channel, and later developed MEDIF_® and MEDIF_® PUSH CARE_® 2.5, which are highly original products for nutrition management support. Since the 2000s, the Ajinomoto Group has deployed its many years of amino acid research with its food product development technologies for making delicious, easy-to-eat products, to launch AQUASOLITA_®, AMINOCARE_® Jelly and other nutritional care foods through the medical channel. In 2015, the Group also expanded into the household-use channel (drugstores, supermarkets, etc.) to conduct operations that support nutrition for the elderly in medical facilities and at home.

With the advance of the super-aging society in recent years, there has been an increase in efforts to curtail the cost of social security and to promote self-medication. Nutrition therapy is gaining new attention as a way of enhancing the effects of treatment at medical institutions, and there is growing awareness of the importance of nutrition management for the elderly at home. Although expectations are thus rising for elderly nutrition, the operating environment of the medical and nursing care foods business has been growing increasingly severe year after year, requiring a stronger business structure.

Nestlé Health Science Company of Nestlé Japan operates a medical and nursing care foods business, and is strong in medical-channel sales from providing science-based products and services. It aims to use the “power of nutrition” to contribute to the future of medical and nursing care. On the other hand, Ajinomoto Co. has strengths in product development, which leverages its amino acid research and food product development technologies, and in sales through the household-use channel, which it has cultivated through its food products business. Ajinomoto Co. has decided that cooperating to make the most of the companies’ respective strengths will accelerate the strengthening of its business structure.

On April 25, 2016, Ajinomoto Co. will transfer its diets for protein-energy malnutrition business to Nestlé Japan, which will handle production and sales. In addition, from April 25, 2016, Nestlé Japan will conduct sales and sales promotion activities for nutritional care foods in the medical channel pursuant to an exclusive agency agreement. Ajinomoto Co. will continue to conduct activities including product development, production, quality assurance and clinical research for nutritional care foods, as well as sales through the household-use channel.

Structure of the Medical and Nursing Care Foods Business (from April 25, 2016)

Sales Channel	Product Line	Main Products		Business Operator	Seller
Medical	Diets for protein-energy malnutrition (enteral)	MEDIF®, MEDIF® PUSH CARE® 2.5		Nestlé Japan	Nestlé Japan
	Nutritional care foods (peroral)	AQUASOLITA®, AMINOCARE® Jelly Leucine 40 and others		Ajinomoto Co.
Household-use					Ajinomoto Co.

In connection with entering into this agreement, Ajinomoto Co. plans to dissolve AJINOMOTO NUTRITION FOODS Co., Ltd., which handles sales through the medical channel as a wholly owned subsidiary, by the end of November 2016.

The Ajinomoto Group will continue to conduct product development that brings together scientific data from its amino acid research and its expertise in product development technologies for delicious, easy-to-eat products to help the elderly receiving medical and nursing care lead healthy lives.

The impact of this matter on business results for fiscal 2015 is immaterial.

The medical and nursing care foods business is conducted by Nestlé Health Science Company.

1) Name:	Nestlé Health Science Company, Nestlé Japan Ltd.
2) Location:	Tennozu Yusen Building 20th Floor, 2-2-20 Higashishinagawa, Shinagawa-ku, Tokyo
3) Representative:	Akihiro Nakajima, Company President
4) Business description:	Sales of liquid diets and nutritional care foods
5) Main brands:	Isocal, Resource, Peptamen

Reference

Diets for protein-energy malnutrition to be transferred to Nestlé Japan

MEDIF®	A diet for protein-energy malnutrition (1.0 kcal/mL) that has long been favored by many customers. Available in two packaging formats: paper pack (200 mL, 1,000 mL) and bag (300 mL, 400 mL).
MEDIF® PUSH CARE®2.5	A highly concentrated, semisolid-type diet for protein energy malnutrition (3.0 kcal/mL).The small-volume, flexible standing pouch enables quick and convenient nutritional intake.

Main nutritional care foods to be sold through the medical channel by Nestlé Japan (sales tie-up)

AQUASOLITA®	An oral rehydration solution that effectively and deliciously replenishes water and electrolytes. The refreshing apple flavor is made without excessive sugars and calories. Available in both jelly and powder types.
AMINOCARE® Jelly Leucine 40	An apple-flavored jelly drink labeled as a food with functional claims. A blend of essential amino acids containing 40% leucine that is reported to support muscle building in people in their 60s and over to maintain muscle mass and walking ability.

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 27 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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