Improving Capital Efficiency and Shareholder Value
First written in FY2016. 9 of 20 entries say "Advanced", first in FY2021. Latest entry: FY2026.
The whole theme swung hardest in 2023: 6 of 40 companies on the "Worse" side.
24 other companies' latest entry also says "Advanced".
- FY2026AdvancedAnnual report
「The fiscal 2025 results were ROE of 17.7%, ROIC of 11.8%, an organic growth rate of 3.7%, and an EBITDA margin of 17.1%.」
As the fiscal 2025 results toward the 2030 targets, the company disclosed ROE of 17.7%, ROIC of 11.8%, an organic growth rate of 3.7%, and an EBITDA margin of 17.1%. Net interest-bearing debt/EBITDA was 1.6x, maintaining financial discipline below 2.0x, and capital expenditures of approximately ¥130.0 billion are planned for fiscal 2026. - FY2025ReframedAnnual report
「To maintain financial soundness while maximizing capital efficiency, the company changed its financial discipline metric from the previous net debt-to-equity ratio of 40%-60% to net interest-bearing debt/EBITDA of <2.0x, a metric also used by rating agencies and investors. This enables adjustments through monitoring an appropriate debt level relative to cash-generating capacity based on EBITDA, allowing the company to implement flexible and agile capital policies aimed at achieving 3x EPS.」
The company changed its financial discipline metric from the net debt-to-equity ratio to net interest-bearing debt/EBITDA, and specified the use of leverage and cash allocation to achieve 3x EPS. - FY2024RaisedAnnual report
「From fiscal 2024 onward, to pursue further growth through proactive investment, including differentiation in 4 growth areas, and greater efficiency in capital and other resources, the company will raise the net debt-to-equity ratio range to 0.4-0.6x.」
While continuing proactive investment in 4 growth areas, the company raised its management range for the net debt-to-equity ratio to 0.4-0.6x. It also indicated a policy of targeting EPS growth to 3x the 2022 level by 2030. - FY2024-Q1AdvancedAnnual report
「Ajinomoto Co.,Inc.'s consolidated subsidiary Ajinomoto Malaysia Sdn. Bhd. entered into a sale and purchase agreement on 20 July 2023 for the transfer of land and other assets at its former plant.」
In connection with the relocation of Ajinomoto Malaysia Sdn. Bhd.'s plant, the company entered into an agreement to transfer the former plant's land, buildings and other assets for approximately ¥12.6 billion, and planned to record a gain on the transfer of approximately ¥11.8 billion in the fiscal year. It is making concrete progress toward improving asset efficiency and becoming asset-light. - FY2023AdvancedAnnual report
「The company has reduced business assets by approximately ¥130.0 billion and carried out resource allocation and sales of cross-shareholdings totaling approximately ¥80.0 billion by concentrating on priority businesses and promoting an asset-light strategy. As a result, it completed the structural reforms targeted through fiscal 2022 largely as planned and will now shift to a financial strategy focused on strengthening growth.」
The company reported results through fiscal 2022 including a reduction of approximately ¥130.0 billion in business assets and approximately ¥80.0 billion in resource allocation, and shifted from improving capital efficiency to a financial strategy centered on growth investment. - FY2022AdvancedAnnual report
「In fiscal 2021, the company implemented asset-light measures totaling approximately ¥77.0 billion, including approximately ¥43.0 billion through the reduction of business assets and approximately ¥34.0 billion through resource allocation and the sale of cross-shareholdings.」
In fiscal 2021, the company implemented approximately ¥77.0 billion of asset-light measures, achieving ROIC of 7.9% and an organic growth rate of 6.8%. For fiscal 2022, it targets ROIC of 8% and an organic growth rate of 11%, while aiming for a net debt-to-equity ratio of 0.36x and cumulative asset-light measures of approximately ¥100.0 billion for fiscal 2020-2022. - FY2022-Q3AdvancedAnnual report
「During the cumulative third quarter of the fiscal year, the company recorded a gain on the sale of property, plant and equipment of ¥15,294 million in other operating income. This was mainly due to a gain of ¥13,696 million on the sale of idle assets.」
The company recorded gains on the sale of property, plant and equipment, including idle assets, updating its track record of reducing business assets and becoming asset-light. - FY2022-Q2AdvancedAnnual report
「During the cumulative second quarter of the fiscal year, the company recorded a gain on the sale of property, plant and equipment of ¥13,807 million in other operating income. This was mainly due to a gain of ¥13,696 million on the sale of idle assets.」
The company recorded a gain on the sale of ¥13,696 million from the disposal of idle assets and disclosed its progress in reducing business assets and becoming asset-light. - FY2021AdvancedAnnual report
「In fiscal 2020, the company implemented asset-light measures totaling approximately ¥54.0 billion, including approximately ¥37.0 billion through the reduction of business assets and approximately ¥17.0 billion through resource allocation and the sale of cross-shareholdings.」
To pursue ROIC-focused management, the company implemented approximately ¥54.0 billion of asset-light measures in fiscal 2020 and plans additional measures totaling approximately ¥100.0 billion in fiscal 2020-2022, a net debt-to-equity ratio of 0.5x or below, and cash inflows of at least ¥400.0 billion. - FY2020RaisedAnnual report
「As structural targets for 2030, we aim for ROIC (return on invested capital) of more than 13%, exceeding the cost of capital, from an efficiency perspective, and an organic growth rate of 5% from a growth perspective.」
The company shifted from its previous focus on ROE and ROA to setting targets for 2030 of ROIC above 13%, exceeding the cost of capital, and an organic growth rate of 5%. It also presented a phased plan targeting ROIC of 8% in 2020-2022 and 10-11% in 2023-2025. - FY2019SoftenedAnnual report
「Business profit ¥95.6 billion ¥103.0 billion ¥92.6 billion ¥124.0 billion ¥97.0 billion Business profit margin 8.6% 8.7% 8.2% 9.4% 8.3% ROE 9.6% 9.5% 4.7% 9.8% 8.0% ROA (Note 1) 6.9% 7.2% 6.6% 8.8% 6.5%」
Against the initial fiscal 2019 targets, the beginning-of-year forecasts were lowered from business profit of ¥124.0 billion to ¥97.0 billion, ROE from 9.8% to 8.0%, and ROA from 8.8% to 6.5%. - FY2018Disclosure of progress against targetsAnnual report
「Fiscal 2016 Actual Fiscal 2017 Target Fiscal 2017 Actual Fiscal 2018 Target Fiscal 2019 Target ROE 8.7% 8.9% 9.7% 9.5% 9.8% ROA (Note 1) 7.4% 7.4% 7.0% 7.2% 8.8%」
For capital efficiency targets, ROE of 9.7% and ROA of 7.0% were disclosed as the fiscal 2017 results, showing progress toward the fiscal 2019 targets. - FY2017RaisedAnnual report
「<2019 fiscal year targets (consolidated)> • Business profit margin: 9.4% • ROE (profit attributable to owners of the parent / equity attributable to owners of the parent): 9.8% • ROA (business profit / total assets): 8.8%」
The company set specific targets for business profit margin, ROE and ROA for fiscal 2019, clarifying its target levels for capital and earnings efficiency. - FY2017-Q3RestatedAnnual report
「For each business's value chain, the company aims to further improve ROE and shareholder value by flexibly using outsourcing while bringing critical activities in-house, focusing on high-value-added activities to improve asset efficiency, and establishing an optimal global supply system in line with demand.」
The company continues to target improved capital efficiency and shareholder value through selective outsourcing and insourcing and a global supply system. - FY2017-Q2RestatedAnnual report
「For each business's value chain, the company aims to further improve ROE and shareholder value by flexibly using outsourcing while bringing critical activities in-house, focusing on high-value-added activities to improve asset efficiency, and establishing an optimal global supply system in line with demand.」
The company continues to target improved capital efficiency through selective outsourcing and insourcing and a global supply system. - FY2017-Q1RestatedAnnual report
「For each business's value chain, the company aims to further improve ROE and shareholder value by flexibly using outsourcing while bringing critical activities in-house, focusing on high-value-added activities to improve asset efficiency, and establishing an optimal global supply system in line with demand.」
The company continues to target improved capital efficiency through selective outsourcing and insourcing and a global supply system. - FY2016First statedAnnual report
「For each business's value chain, the company aims to further improve ROE and shareholder value by flexibly using outsourcing while bringing critical activities in-house, focusing on high-value-added activities to improve asset efficiency, and establishing an optimal global supply system in line with demand.」
The company is targeting improved asset efficiency through selective outsourcing and insourcing and a global supply system.