Overview of Consolidated Financial Results of Ajinomoto Co., Inc.
for the Interim Period of Fiscal 2017
Double-Digit Growth in Profit Attributable to Owners of Parent
Compared with Previous Interim Period
TOKYO, November 7, 2017 – An overview of the consolidated financial results of Ajinomoto Co., Inc. (“Ajinomoto Co.”) for the interim period of fiscal 2017 (April 1, 2017 – September 30, 2017) is as follows.

(JPY billions unless otherwise noted; figures rounded down)
Sales Business Profit Profit Attributable to
Owners of Parent
Interim Period of Fiscal 2017 546.7 48.3 31.2
Interim Period of Fiscal 2016 522.4 46.1 27.0
Change from Previous Interim Period +4.7% +5.0% +15.8%
Reference: Share of profit of associates and joint ventures
Interim Period of Fiscal 2017: JPY 2,583 million / Interim Period of Fiscal 2016: JPY 1,385 million
Notes:
1. The Ajinomoto Group has adopted International Financial Reporting Standards (“IFRS”) as of fiscal 2016.
2. Upon the adoption of IFRS, the Ajinomoto Group has introduced “Business profit” as a new profit level that will better enable investors, the Board of Directors, and the Management Committee to grasp the core business results and future outlook of each business while also facilitating continuous evaluation of the Group’s business portfolio by the Board of Directors and the Management Committee. “Business profit” is defined as “Sales” minus “Cost of sales,” “Selling expenses,” “Research and development expenses,” and “General and administrative expenses,” to which is then added “Share of profit of associates and joint ventures.” Business profit does not include “Other operating income” or “Other operating expenses.”

In the interim period ended September 30, 2017, consolidated sales increased JPY 24.3 billion compared with the same period of the previous fiscal year to JPY 546.7 billion as a result of factors including the positive effect of currency translation and an increase in sales of seasonings and processed foods (International) on a local currency basis. Business profit increased JPY 2.2 billion to JPY 48.3 billion, due in part to the positive effect of currency translation. Profit attributable to owners of parent increased JPY 4.2 billion to JPY 31.2 billion.

An overview of consolidated results by business segment is as follows.

(JPY billions unless otherwise noted; figures rounded down)
Sales Year-on-Year
Change		 Year-on-Year
Change (%)		 Business
Profit		 Year-on-Year
Change		 Year-on-Year
Change (%)
Japan Food
Products		 184.6 -4.2 -2.3% 18.2 +1.1 +6.5%
International Food
Products		 221.8 +19.0 +9.4% 22.3 +0.2 +1.3%
Life Support 63.6 +3.7 +6.2% 3.6 +1.5 +73.4%
Healthcare 45.6 +3.4 +8.2% 2.2 -2.0 -48.0%
Other Business 31.0 +2.3 +8.1% 1.9 +1.4 +246.8%
Total 546.7 +24.3 +4.7% 48.3 +2.2 +5.0%
Note: Domestic and overseas sales of ACTIVA® products to food processing companies and savory seasonings are included in Japan Food Products. Domestic and overseas sales of AJI-NO-MOTO® for the food processing industry and nucleotides and sweeteners are included in International Food Products.

Japan Food Products segment sales decreased as a result of a decline in sales of seasonings and processed foods (Japan), mainly due to the impact of the sale of a subsidiary, among other factors, as well as a decline in sales of coffee products due to contraction of the home-use market and the associated intensification of competition. Business profit increased due to increases in profit from seasonings and processed foods (Japan), frozen foods (Japan) and coffee products.

International Food Products segment sales increased as a result of increases in sales of seasonings and processed foods (International) and frozen foods (International), due in part to the positive effect of currency translation. Business profit increased as a result of factors including an increase in profit from seasonings and processed foods (International) due to the positive effect of currency translation, among other reasons, although profit from frozen foods (International) decreased.

Life Support segment sales increased as sales of both animal nutrition and specialty chemicals grew, due in part to the positive effect of currency translation. Business profit increased substantially due to significant growth in profit from specialty chemicals.

Healthcare segment sales increased overall, as a decline in sales of amino acids for pharmaceuticals and foods was more than offset by an increase in sales of pharmaceutical custom manufacturing, among other factors. Business profit decreased substantially due to significant declines in profit from both amino acids for pharmaceuticals and foods and pharmaceutical custom manufacturing.

In consideration of recent conditions, the assumed average exchange rate for the fiscal year has been changed to JPY 111.04 to USD 1 (rate before change: JPY 108.3 to USD 1). There is no change to the consolidated performance forecast for fiscal 2017, which was announced on May 15, 2017.

Note: The performance forecast above is based on information available to Ajinomoto Co. as of the date of this news release. Various factors could cause actual results to differ materially from the above forecast.

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 30 countries and regions, Ajinomoto Co. had net sales of JPY 1,091.1 billion (USD 10.07 billion) in fiscal 2016. For more about Ajinomoto Co. (TYO: 2802), visit www.ajinomoto.com.

For further information, please contact:
Ajinomoto Co., Inc. Public Communications Department; pr_info@ajinomoto.com
 
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