Electronic Materials Briefing: ABF above plan; Al mix surging (memo attached)

Research evidence excerpt

Electronic Materials Briefing: ABF above plan; Al mix surging (memo attached)

iQprofile SM Ajinomoto (2802)

Key Income Statement Data 3/25A 3/26A 3/27E 3/28E 3/29E Company Sector

(¥ Millions) Other GAAP Other GAAP Other GAAP Other GAAP Other GAAP Food Processors

Sales 1,530,556 1,583,719 1,725,400 1,816,800 1,918,300

% Change 6.3% 3.5% 8.9% 5.3% 5.6%

Gross Profit 550,764 597,149 655,652 690,384 728,954 Company Description

EBITDA 200,429 288,326 299,100 337,900 382,900 Ajinomoto is a diversified conglomerate leveraging amino

Operating Profit 113,968 199,412 209,100 245,900 288,900 acid technology across seasonings, processed foods,

% Change -22.3% 75.0% 4.9% 17.6% 17.5%

pharmaceutical CDMO, and semiconductor insulation

Net Interest & Other Income (36,541) 1,831 7,600 8,300 8,300

materials. Its umami seasonings hold strong share in

Pretax Income (ex extraords.) 108,330 196,115 204,700 241,100 284,100

Southeast Asia and South America, driving a high overseas % Change -23.7% 81.0% 4.4% 17.8% 17.8%

Net Income 70,272 134,675 139,300 166,400 198,100 sales ratio. Robust semiconductor demand has boosted

profit via ABF insulation materials. In 2023, Ajinomoto

Key Cash Flow Statement Data

acquired Forge Biologics, a CDMO specializing in gene

Net Income from Cont Operations (GAAP) 70,273 134,676 139,250 166,409 198,014

therapy, reinforcing long-term growth via CDMO Depreciation & Amortization 86,461 88,914 90,000 92,000 94,000

Change in Working Capital 103,064 126,850 0 0 0 investment.

Capital Expenditure (95,090) (104,550) (130,000) (110,000) (100,000)

Free Cash Flow* 114,808 134,801 91,434 135,433 188,268

Share Issue / (Repurchase) (90,695) (130,009) 0 0 0 Investment Rationale

Cost of Dividends Paid (53,508) (52,898) 0 0 0 Functional Materials (including ABF) should drive profit