AJINOMOTO (M) SDN BHD Strategic Profile The story of Ajinomoto Co., Inc.

began with taste, when Professor Kikunae Ikeda from the University of Tokyo isolated glutamate from the seaweed and discovered its flavour enhancing properties in 1908. He was the first to discover that the amino acid glutamate was the source of umami, a distinctive taste found in many savoury foods throughout the world. One such food, kombu dashi, a soup stock made with kelp, had long been used as a base food cooking ingredient in Japan. After successfully isolating glutamate from kombu dashi, Dr. Ikeda invented monosodium glutamate which has since been used to give a savoury taste to many types of foods. His discovery was introduced to the market in the form of the flavour enhancer AJI-NO-MOTO meaning the Essence of Taste. Scientifically, it is termed as Monosodium Glutamate, or MSG in short. Today, Ajinomoto is sold in more than 100 countries; has 15 factories around the world and supplies about one third of the 1.5 million tons of monosodium glutamate consumed in the world each year. Ajinomoto Co., Inc., introduced the original seasoning AJI-NO-MOTO into the market in 1909, making unami known to the world. Since then, placing customers first and constantly exploring new themes, supplying original, high-quality products with its original technology and superior marketing skills. Ajinomoto (Malaysia) Berhad began operations in 1961 and has since grown into a dynamic food seasoning manufacturer providing seasonings that are used in almost every Malaysian home. It is one of the very first Japanese joint-venture companies to be set up in this country. Ajinomoto (Malaysia) Berhad has since grown into a dynamic food seasoning manufacturer marketing diverse brand name that is trusted by Malaysian for decades. Today, AJI-NO-MOTO food seasoning is an indispensable item in almost every Malaysian home. Ajinomoto (Malaysia) Berhad is engaged in two areas of activity. Umami segment consists of products, which are derived from fermentation process, such as monosodium glutamate (MSG) and related products. The food and seasoning segment consists of products derived from extracting and mixing process, such as industrial seasoning, tumix and related seasonings. Other products sold by the Company consist of trading goods, such as industrial sweetener, feed-use amino acids and frozen food.

2011 marked Ajinomoto (M) Bhd. fifty years of operation with its outstanding achievement and proud record in Malaysia. This has been accomplished under good leadership and with the support of all employees, sales agents and business partners. Ajinomoto Malaysia has grown from a one-product company to an internationally renowned manufacturer of an array of food seasonings. The company's production capacity has increased over the years, and so has the size of its workforce and number of sales agents and business partners.

The food seasoning industry is an increasingly competitive one, especially with the emergence of manufacturers in lower-cost producing countries. Cost will remain an important consideration, but other factors like quality, branding and a good track record will also determine their ability to compete. Ajinomoto is well known as a pioneer of the flavour enhancing business. The brand is a household name, and itsreputation for quality continues to be endorsed by customers throughout the region. What will prospects be like for the future of this business? The food industry is generally less vulnerable to global economic upheavals compared to many other industries. The main determinants of market growth and product development will be changes in lifestyle, the growth of health consciousness, and evolving consumer preferences.

The Corporate Governance The Board is responsible for the overall strategic direction of the Company and retains full and effective control of the responsibility for the Companys activities. In fulfilling its fiduciary duties, the Board ensures that there are appropriate systems and procedures in place to manage the Companys significant risks. In addition, the Board also has in place a capable and experienced management team to oversee the day-to-day operations of the Company. The Board currently comprises six (6) Executive Directors, one (1) NonIndependent Non-Executive Director and four (5) Independent Non-Executive Directors. The composition complies with paragraph 15.02 of Bursa Malaysia Securities Berhad Main Market Listing Requirements. Therefore, the Board is of the view that the current composition of the Board facilitates effective and independent decision making and judgement as well as fairly reflecting the investment in the Company by shareholders other than the significant shareholders including the minority shareholders. The Board comprises highly respectable and professional persons which represents a diverse background of knowledge, expertise and experience. With their combined experience and knowledge they provide sound advice and judgements for the benefit of the Company and its shareholders. The Board has identified Dato (Dr) Teo Chiang Liang as the Senior Independent Non-Executive Director, to whom concerns may be conveyed by shareholders and the public. The roles and responsibilities of the Chairman, General Tan Sri (Dr.) Dato Paduka Mohamed Hashim Bin Mohd. Ali (Rtd), who is an Independent Non-Executive Director and the Chief Executive Officer/Managing Director, are distinct, separate and clearly defined. The Chairman is responsible for ensuring the Boards effectiveness and orderly conduct.

The Chief Executive Officer/Managing Director, Mr. Hiroshi Amano, has overall responsibility for the management and operation of the Companys business and the implementation of Board policies, strategies and decisions. Responsibility is vested in the Non-Executive Directors of the Company to ensure that the policies and strategies proposed by the Management are fully discussed and critically examined, not only against the best long-term interests of shareholders, but also to ensure that they take proper account of the interests of employees, customers, suppliers and the communities within which it is represented. The presence of the Independent NonExecutive Directors are essential to provide the unbiased and independent view, advice and judgement as well as to safeguard the interest of other parties such as minority interest and the community.

The Case Analysis Purpose Over the last 100 years, the situation surrounding food has changed dramatically and concern about it is much higher than ever. Particular concerns include a looming food shortage due to population growth, water shortages and climate change, as well as health hazards of food treated with agrochemicals and growth hormones. What kind of corporate vision does the Ajinomoto Group need today, to establish itself as a company that will be not only trusted and needed by society for the next 100 years, but also contribute to realization of a sustainable society? Our analysis shall look at how leadership at Ajinomoto helps to ensure the Company stays relevant in the market.