FY3/2018
Results
決算説明資料Explanatory Materials
2018年3月期
オイシックスドット大地株式会社
Oisix.Daichi IncFarm for Tomorrow, Table for Tomorrow
We provide services that enable a better food life
for more people.
We realize a society where good farmers are
rewarded and proud.
We evolve continuously to deliver a sustainable
framework that links farm and table.
We solve social issues related to food throughbusiness approaches.
We create and expand Tomorrow's Food.

Contents

FY3/2018
Results
Overview

FY3/2018
Activities
Overview

FY3/2018
SocialActivities

TOPICS

FY3/2019
Action Plan

FY3/2019
Performance
OutlookThis material is intended to provide an understanding of Oisix.Daichi activities, not to solicit investment. Forecasts of Oisix.Daichi’s
operating results and future performance are based on information available to Oisix.Daichi at the time this material was drafted and are
not guaranteed to be accurate. Actual operating results may differ from the future outlooks contained in this material.

Contents

FY3/2018
Results
Overview

1. FY3/2018 Results Overview

1. Consolidated Results Overview
2. Results Overview by Segment
・Summary・Oisix KPI・Daichi wo Mamoru Kai (DMK) KPI

1. FY3/2018 Results Overview

1. Consolidated Results Overview
2. Results Overview by Segment
・Summary・Oisix KPI・Daichi wo Mamoru Kai (DMK) KPI

FY3/2018 Consolidated Results Overview■With the addition of DMK earnings this term and better than anticipated Oisix subscriber
acquisitions, sales grew +73%YoY, +5% above plan.
■Operating profit grew +18% to achieve historical high (+15% vs. ¥774m in FY3/2016)■EBITDA grew +67%
Units: ¥mn

FY3/2017
Results

FY3/2018
Results

FY3/2018
Plan

YoY

YoY %

Plan
Achievement
Rate

Sales
Operating Profit
EBITA *1
EBITDA *2
Excluding
extraordinary factors *3
EBITDA per share (¥) *4*1 EBITA = Operating profits + amortization of goodwill*2 EBITDA = Operating profits + depreciation + amortization of goodwill*3 Extraordinary factors = One-off merger related costs (cost of moving HQ, etc.)*4 EBITDA per share= Calculation adjusted for 1:2 stock split implemented on April 1, 20186

Consolidated Sales & EBITDA Trends
Sales grew ＋73.7%YoY, EBITDA grew +67.6%YoY■Sales■EBITDA/EBITDA per share

FY3/2018(¥‘00mn)

YoY¥39.99bn +73.7%

400(¥‘00mn)

399.9

16

FY3/2018¥1.67bn

YoY+67.6%

16.7

(¥)

400

14
350

300

12
300
10
250

230.2

8

201.6

200

180.6

9.0

9.8

10.0

8.4

6

159.1
150

4

100

2

50

200

104.03
80.26

100

82.44
72.08

84.61

■EBITDA●EBITDA per share0

2014/03
FY3/2014

2015/03
FY3/2015

2016/03
FY3/2016

2017/03
FY3/2017

2018/03
FY3/20180
2014/03
FY3/2014

2015/03
FY3/2015

2016/03
FY3/2016

2017/03
FY3/2017

2018/03
FY3/2018*EBITDA = Operating profits + depreciation + amortization of goodwill*EBITDA per share amended to reflect the number of shares outstanding post stock split

7

1. FY3/2018: Results Overview

1. Consolidated Results Overview
2. Results Overview by Segment
・Summary・Oisix KPI・Daichi wo Mamoru Kai (DMK) KPI

8

FY3/2018: Results Overview by Segment■Oisix: Sales achieved plan thanks to robust subscriber growth. Strength in new customer
acquisitions saw an increase in sales of high CoGS ‘otameshi’ taster boxes, which translated intoslightly low marginal profits.
■DMK: Conservative forecasts for first FY translated into above plan sales & marginal profits
FY3/2018
Home Delivery Business
Oisix
Sales
Marginal profit
Units: ¥mn

DMK

Other Business *2

Company total

Plan

ActualAchievement

Sales
Marginal profit
Sales
Marginal profit
Sales
Marginal profit
Fixed costs *1
Operating profit*1 Includes amortisation of goodwill (included in each business segment in the kessan tanshin & quarterly reports)*2 Other business: solutions, media, shops, overseas, wholesale, etc.

9

1. FY3/2018 Results Overview

1. Consolidated Results Overview
2. Results Overview by Segment
・Summary・Oisix KPI・Daichi wo Mamoru Kai (DMK) KPI

10

Oisix: Subscriber Trends
Subscriber acquisition via LINE & SEO robust. Led by Kit Courses, subscriber
growth saw acceleration to +23.5%, significantly outperforming plan.
169,664

FY3/2018
Number of subscribers

YoY

162,891+23.5%

169,664

155,827

155,000

147,474
137,359
130,673124283118124

87018

1Q

91540

93470

2Q

3Q

2015年3月期
FY3/2015

96718

4Q

101079 102780

1Q

2Q

1075393Q
2016年3月期
FY3/2016

111036

4Q

1Q

2Q

3Ｑ
2017年3月期
FY3/2017

4Q

1Q

2Q

3Q

4Q

計画
FY3/2018
Plan

2018年3月期
FY3/2018

11

Oisix: ARPU Trends
Signs of a slight improvement in customer spend thanks to a successful ‘buy a sidedish’ campaign were outweighed by a fall in purchase frequency. ARPU fell 2.8%
YoY.
FY3/2018

YoY¥11,602 97.2%
Annualaverage

12,253

12,373

12,227

12,072

12,682

12,514

12,402

11,827

12,644

11,89012,13911,95512,087

11,51911,932

11,587 11,602

11,833

11,586

11,057

(¥)

1Q

2Q

3Q

4Q

1Q

FY3/2015

2Q

3Q

FY3/2016

4Q

1Q

2Q

3Ｑ

FY3/2017

4Q

1Q

2Q

3Q

4Q

FY3/2018※ARPU : Average Revenue Per User
※Frequency of purchase x amount spent per purchase12

Oisix: Frequency of Purchase (FoP) Trends
FY3/2018 4Q

YoY

1.96x

96.5%

2.10

2.10

Annualaverage

2.11

2.07

2.09

2.16

2.15

2.07

2.11

2.02

2.07

2.06

2.00

2.00

1.97

2.03

2.03

1.94

1.96

1.96

(x)

1Q

2Q

3Q

FY3/2015

4Q

1Q

2Q

3Q

FY3/2016

4Q

1Q

2Q

3Ｑ

FY3/2017

4Q

1Q

2Q

3Q

4Q

FY3/2018

13

Oisix: Average Customer Spend (Basket) Trends
YoY

FY3/2018 4Q¥5,925 100.9%
Annualaverage

5,882

5,806

5,841

6,081

5,831

5,800

5,756

5,701

5,988

5,880

5,878

5,874

5,799

5,975

5,839

5,872

5,817

5,704

5,908

5,925

(¥)

1Q

2Q

3Q

FY3/2015

4Q

1Q

2Q

3Q

FY3/2016

4Q

1Q

2Q

3Ｑ

FY3/2017

4Q

1Q

2Q

3Q

4Q

FY3/2018

141. FY3/2018 Results Overview

1. Consolidated Results Overview
2. Results Overview by Segment
・Summary・Oisix KPI・Daichi wo Mamoru Kai (DMK) KPI

15

DMK: Subscriber Trends
Expansion of subscriber acquisition activities in 2H FY3/2018 led to a recovery
trend from 3Q.
FY3/2018
Number of subscribers

YoY

97.5%

44,99346,89846,62245,45045,09145,68046,43846,14545,300

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

FY3/2016

FY3/2017

43,687

2Q

43,864 44,993

3Q

4Q

46,000FY-end計画
targetFY3/2018

16

DMK: ARPU Trends
Expanded subscriber acquisition activity meant an increase in the ratio of low
frequency beginners resulting in a slight YoY increase in ARPU.
FY3/2018 4Q

YoY¥19,240 100.9%
Annualaverage

20,37921,216

20,346

22,563

20,73821,08820,05421,307

20,30319,066

19,884

19,87522,20919,240

(¥)

2Q

3Q

4Q

1Q

FY3/2016

2Q

3Q

FY3/2017

4Q

1Q

2Q

3Q

4Q

FY3/2018※ARPU : Average Revenue Per User
※Frequency of purchase x amount spent per purchase17

DMK: Frequency of Purchase (FoP) Trends

FY3/2018 4Q

2.49x
Annualaverage

YoY

98.4%

2.75

2.72

2.82

2.66

2.72

2.77

2.67

2.58

2.67

2.53

2.60

2.58

2.67

2.49

(x)

2Q

3Q

FY3/2016

4Q

1Q

2Q

3Q

FY3/2017

4Q

1Q

2Q

3Q

4Q

FY3/2018

18

DMK: Average Customer Spend (Basket) Trends

FY3/2018 4Q

YoY¥7,726 102.6%
Annualaverage

7,704

7,479

7,997

7,655

7,636

7,605

7,524

7,838

7,965

7,525

7,589

7,700

8,336

7,726

(¥)
（円）

2Q

3Q

FY3/2016

4Q

1Q

2Q

3Q

FY3/2017

4Q

1Q

2Q

3Q

4Q

FY3/2018

19

Contents

FY3/2018
Activities
Overview

FY3/2018 Strategy & Action

1. Growth Strategy: Takuhai Home Delivery Business(1) Oisix:Strengthen value of Premium Jitan(2) Daichi wo Mamoru Kai: Reform earnings structures, reinitiate
subscriber acquisition activity(3) Action to Create Synergy : Designated DMK area on Oisix.com

2. Growth Strategy: Non-takuhai Business(1) Physical store retail business (Physical Stores, Wholesale)(2) Overseas business(3) Alliance business3. Tokushimaru

FY3/2018 Strategy & Action

1. Growth Strategy: Takuhai Home Delivery Business(1) Oisix:Strengthen value of Premium Jitan(2) Daichi wo Mamoru Kai: Reform earnings structures, reinitiate
subscriber acquisition activity(3) Action to Create Synergy : Designated DMK area on Oisix.com

2. Growth Strategy: Non-takuhai Business(1) Physical store retail business (Physical Stores, Wholesale)(2) Overseas business(3) Alliance business3. Tokushimaru

(1) Oisix:Strengthen Value of Premium Jitan■Kit Oisix (Meal Kits)

Delivery of precisely the amount ofingredients you need. Cook a mainand side dish in just 20-minutes.

All menus have at least 5 different
vegetables allowing for abalanced meal!

Safe and secure because it’s Oisix.

※ What is Premium Jitan? : Not only do Premium Jitan kits shorten cooking time, they also provide the reassurance, safety& deliciousness of Oisix standards, whilst resolving the stress that can come from thinking about menus, buying
ingredients, cooking, wasting reduction & tidying up. There is a top quality, large & varied menu of time-saving Premium
Jitan kits for healthier meals on the table.
※ What is a meal kit? A product comprising a recipe, seasonings and ingredients pre-prepared for a designated number ofpeople.

23

(1) Oisix:Strengthen Value of Premium Jitan“Meals”. Top of “things to get right” in the home. Continuous growth in meal kits to
help with this saw cumulative shipments exceed 10 million!

■ Kit Oisix: Examples

OVER

71,000¥ 10 mn

Cumulative shipments(July 2013 – May 2018)

50,00032,000

1Q

2Q

3Q

FY3/2016

4Q

1Q

2Q

3Q

FY3/2017

4Q

1Q

2Q

3Q

4Q

FY3/2018

Kit Course Subscriber Trends (Unit: people)

24

(1) Oisix:Enhancing Value of Premium Jitan“Kit Oisix Morning Soup” launched to help with busy breakfast hours! Wellreceived selling-out immediately.

25

(1) Oisix:Enhancing Value of Premium Jitan
Launched the “Vege Gohan Kit” – an easy vegetable centric meal for busy people.
The many recipe variations using seasonal vegetables have proved popular.
Delivered with recipes!
Your own three day meal set

26

(1) Oisix:Enhancing Value of Premium Jitan
Test launch of the “Umami Diet Kit” developed by Chef Keisuke Matsushima!
Full-fledged roll-out planned for FY2018.

■What is the Umami Diet Kit?

The Umami Diet Kit comprises a two week course of meals
that are designed to help make umami more discernable andthereby help improve eating habits. The easier a person isable to sense umami, the more they come to prefer healthy
food. People feel sated even when only eating small amounts.

Sold out despite its high price point: ¥29,800/set
27

(2) DMK: Reform of Earnings Structures
Catalogue Renewal Efforts #1: Reduced production time
Time taken to produce printed
catalogue reduced to

1/3

Accelerated PDCA

Early discovery of successful patterns

SALES UP28

(2) DMK: Reform of Earnings Structures
Catalogue Renewal Efforts #2
Increased appeal via creativity review. Contributed to improvement in marine
product sales which had been weak.
Clinch the sale with
Tell the story!
Catch the eye!
catchy naming!

Prominent catchy
title and image at
the top of a two
page spread tocatch the eye ofthe reader.

Having caught thereader’s attention,
draw them in withdetails of the productpresented in a fun &informative style.

Backed up by notnormally seen
illustrations for
greater effect,
catchy productnames clinch the
sale.

29

(2) DMK: Reinitiating Subscriber Acquisition Efforts
Improvements and more effective subscriber acquisition methods developed in
1H FY3/2018. In 2H, subscriber acquisition activity reinitiated. Recovery insubscriber numbers expected in FY3/2019 and beyond.

451

457

464

461

453

437

439

450

460

(hundred)
1Q

2Q

3Q

FY3/2017

4Q

1Q

2Q

3Q

4Q

計画
FY3/19FY3/20FY3/21

FY3/201830

(3) Efforts to Create Synergy : Designated DMK area on Oisix.com
Stable operation of DMK’s site within a Oisix site has translated into healthy
sales growth■ Designated DMK area on Oisix.com■Sales trend since launch¥49.3mn

4月
Apr

5May
8月 9Sep
2月 3Mar
月 6Jun
月 7Jul
月 Aug
月 10
月 11
月 12Dec
月 1Jan
月 Feb
月
Oct
Nov
(Units: ¥mn)31

FY3/2018 Strategy & Action

1. Growth Strategy: Takuhai Home Delivery Business(1) Oisix:Strengthen value of Premium Jitan(2) Daichi wo Mamoru Kai: Reform earnings structures, reinitiate
subscriber acquisition activity(3) Action to Create Synergy : Designated DMK area on Oisix.com

2. Growth Strategy: Non-takuhai Business(1) Physical store retail business (Physical Stores, Wholesale)(2) Overseas business(3) Alliance business3. Tokushimaru

(1) Physical Retail (Physical Stores, Wholesale) : Shop in Shop
Boosted by the addition of DMK, sales were up +85.8%YoY. Sales also benefited
from exhibition events and the acquisition of new shop venues including theMiuraya & Inageya stores.
■New shop in Isetan Urawa Store■Sales trend (¥mn)
YoY¥+85.8%

777mn

FY3/2018

106
stores

418
301

142

2015
年3月期
FY3/2015

2016
年3月期
FY3/2016

2017
年3月期
FY3/2017

2018
年3月期
FY3/2018

DMK wholesale business33

(2) Overseas Business – China (Shanghai)
Limited service for Japanese expats launched in November 2017. Preparations
underway for full-fledged roll out in FY2018.
■1st: Start of limited sales to Japanese for monitoring■2nd: Planned start of sales to Chinese in FY201834

(3) Alliance Business
FY3/18 summer & autumn ‘Kin Mugi 75% Sugar-off’ campaign to be repeated in
FY3/19. Foreseeable expansion could include Premium Malts, ALL-Free and other
Suntory products.

35

FY3/2018 Strategy & Action

1. Growth Strategy: Takuhai Home Delivery Business(1) Oisix:Strengthen value of Premium Jitan(2) Daichi wo Mamoru Kai: Reform earnings structures, reinitiate
subscriber acquisition activity(3) Action to Create Synergy : Designated DMK area on Oisix.com

2. Growth Strategy: Non-takuhai Business(1) Physical store retail business (Physical Stores, Wholesale)(2) Overseas business(3) Alliance business3. Tokushimaru

Tokushimaru:
Expansion of Mobile Sales Infrastructure for “Shopping Refugees”
New agreement entered into with major supermarket operator Sunlive, with 147
stores predominantly in the KitaKyushu/Chugoku region under management.

37

Tokushimaru: Number of Vehicles in Operation
Management support with subsidiarization, as well as a boost in staffing, have led
to 83 more operating vehicles or +40% YoY. In April, vehicles surpassed 300.

Annual growth

+40%

303

288
268
243

189

205

221

168
145

92

108

72

3 4

5

1Q

6
4Q

2013/36

7

9
3Q

2014/3

18
9 12

27

2Q
2015/334

50(No. Vehicles)

1Q

4Q
2016/33Q
2017/3

2Q
2018/3

2018
年4 月
April
2018

38

Tokushimaru : Total Transaction Value
A steady rise in the number of vehicles in operation saw FY3/18 total transaction
value* exceed ¥5.0bn!
1,502
1,524
1,310

YoY

+54%

1,224
1,022

1,035

852
698

438

3,607

512

5,560

314
232
6

11

16

19

25

1Q

2Q

3Q

4Q

1Q

FY3/2013

31

36

37

56

79

2Q

3Q

4Q

1Q

2Q

FY3/2014

118

152
(¥mn)

3Q

FY3/2015

4Q

1Q

2Q

3Q

FY3/2016

4Q

1Q

2Q

3Q

FY3/2017

4Q

1Q

2Q

3Q

4Q

FY3/2018*Total transaction value = Value of goods sold (Oisix.daichi revenue = royalties from each vehicle)
39

Contents

FY3/2018
SocialActivities

TABLE FOR TWO
Oisix donates 3% of revenue to TFT from the sale of TFT-accredited products
purchased by our customers. The proceeds are used to fund meals and theconstruction of dining facilities for children in developing countries.
DonatesCustomers

Oisix

3％

Of revenue

Purchases TFT accredited products

Sells TFT-accredited products

Delivers lunches tochildren indeveloping countries*Cumulative 2009 – FY3/18 1 lunch = ¥20

41

N-1 SUMMIT 2018 hosted by Oisix.Daichi
The theme of this year’s summit was “The Future of Farming lies in a Revolution in
Logistics”. Approx. 160 producers attended the event to explore new ways ofdelivering food !

What is the added value of agricultural Farmer of the Year award ceremony.
produce? Consumers gave their frankopinions.

Live Q&A session participated in by
all 160+ attendees.
42

Organic Festa 2108
Organic Festa 2018, an event to link farm and table, was staged by Oisix.daichi.
350 farmers chosen by DMK interacted with 2,000 attendees!

43Beefing-up support for Para-sports ahead of 2020
Appointed official supplier to Team Japan! Helping para-athletes build up theirstrength by supplying training camp lunches and snacks.

44

Beefing-up support for Para-sports ahead of 2020
m-flo’s DJ Taku, the first celebrity to take part in our pro-bono program
implemented in collaboration with The Japan Committee for Economic Development& The Nippon Foundation Paralympic Support Center, provided the BGM for theJapanese Paralympic Powerlifting Competition!

In collaboration with JCED we are also staging meet & greet events to match paraathletic bodies with professionals who can help with the running of competitions
and PR, etc.
45

Contents

TOPICSTOPICS

1. Business and Capital Alliance with NTT DOCOMO
2. Business Combination of Radishbo-ya Co., Ltd.

TOPICS

1. Business and Capital Alliance with NTT DOCOMO
2. Business Combination of Radishbo-ya Co., Ltd.

１．Business Alliance with NTT DOCOMO
Food Home Delivery Market Strength• The meal kit market, which is looking buoyant in the USA, isgaining traction in Japan (approx. ¥200bn, source: Nikkei Trendy)• Growth in home delivery market from further developments inwomen entering the work force (approx. 2 trillion yen, source:
Yano Research Institute)• Possibility of further market expansion from the entry of
traditional industry players and/or large capital-rich overseas
players.

Oisix.daichi assets
DOCOMO assets• Database of approx. 75 million
customers• Overwhelming brand power• ABC Cooking Studio• dPOINT Collaboration• AI Agents to attract customers

×
Meal Kit
Exclusive EC site

• Network of excellent
producers• Safe & secure brand• Own food home delivery
business infrastructure• 3 temperature zone
warehousing• Production facilities• No.1 in Meal Kits
• Network with homedelivery major Yamato
Transport49

１．Capital Alliance with NTT DOCOMO
Capital alliance with DOCOMO through 3 rd-party allocation.
Takes 3% stake through3 rd party allocation(¥630mn)

Plans to take a board seat

Meal Kit EC(Collaborative business)
Funds procured to be used
for investments in
production plant equipment& IT systems, etc.

50

TOPICS

1. Business and Capital Alliance with NTT DOCOMO
2. Business Combination of Radishbo-ya Co., Ltd.

2．About Radishbo-ya

Company name

Radishbo-ya Co., Ltd.

Representative Director

Kohey Takashima (Representative Director & CEO)Year of establishment

May 17, 1988

Major shareholders

Oisix.daichi Inc. 100％

Business Description

Delivery service of organic, low-chemical & non-additive foods

Places of business

Headquarter (Tokyo), Hokkaido Center, Tohoku Center, Tokyo Area
Center, Kanagawa Center, Chubu Center, Osaka Center

No. employees

Full time (including contractors) 236, part-time/temporary 119※as at end February, 2018

No. farmers, etc.

Approx. 2,400

Performance

Sales : ¥ 18.9 bn , Operating losses : ¥ 0.6 bn (FY02/2018)52

2．Business Combination of Radishbo-ya (RB)••On February 28, 2018, DOCOMO transferred its 100% holding in RB to Oisix.daichi
Recovery in earnings power via introduction of home delivery business expertise &reforms to earnings structure.

FY2017FY2018Transfer 100% of
RB shares¥1bn (Cash)
Waiver ofindebtedness

100%



Operating lossNet asset recovery

100% One-time amortization of
goodwill

100%





Earnings recovery (operating
profits generated)• Home Delivery EC businessknowhow• Earnings structure reform• Operation Speed management
No amortisation of goodwill

53

Business Combination of Radishbo-ya (RB) Merger planned in FY3/19 (assuming authorisation at Annual General Meetingof Shareholders in June 2018).
 Profitability improvement via coalescence of management and integration ofgroup resources.
2018/10～～2018/9100%Consolidated subsidiaryMerger through absorption
Inheritance of loss brought
forward from the previous
term
54

Contents

FY3/2019
Action Plan

FY3/2019 Action Plan
1. Platform for Growth of Food Delivery Business2. Progression of Takuhai Home Delivery Business（1）Oisix（2）DMK（3）Radishbo-ya
3. Progression of non-Takuhai Business（1）Physical store retail（2）Solutions（3）Overseas
4. Tokushimaru

FY3/2019 Action Plan
1. Platform for Growth of Food Delivery Business2. Progression of Takuhai Home Delivery Business（1）Oisix（2）DMK（3）Radishbo-ya
3. Progression of non-Takuhai Business（1）Physical store retail（2）Solutions（3）Overseas
4. Tokushimaru

Standard Operational Structure for Each Home Delivery Brand
In the past, each business operated independently of one another,each with its own home delivery brand.

MarketingFulfilment

Subscription Model

Subscription Model

Subscription Model

EC Marketing

Catalogue Sales

Catalogue Sales

Settlements

Proprietary Delivery
Network

Proprietary Delivery
Network

Materials

Settlements

Settlements

Manufacturing
Facilities

Materials

Materials

3 Temperature zone
Logistics Center3 Temperature zone
Logistics Center3 Temperature zone
Logistics Center

Quality Control

Quality Control

Quality Control

Producers

Producers

Producers58

Food Delivery Business: Building the Platform for Growth
Going forward, aim is to create distinct platforms with unique functions that allow
for sharing of knowhow & infrastructure. Promotes rationalization/social problemsolving.
SocialIssuesGrowing needfor time-saving
solutions

Growing healthconcerns

Concern for asustainable
society

Growing needfor time-saving
solutions

Growingdemand for safe
& secure food

Meal Kit EC

Hong Kong

Increasing
number of
shopping
refugees(w/ DOCOMO)

China

Marketing Platform






Subscription
CRM
UI/UX
Web promotion, etc.

Fulfilment Platform







Producers
3 temperature logistics centers
Food processing/manufacturing facilities
Delivery network/facilities
Quality control, etc.
59

Benefits of Platform Approach
Marketing Platform
Subscription/Promotion

 Development of subscription model to create a solid customer base & stable income streams
 Repeat marketing using access logs, purchase analysis & improved UI/UX, etc.
 Improved customer acquisition rates through use/promotion of web marketing
 Optimisation of customer acquisition methods using catalogues¥▲300m(FY3/2019 Plan)

Fulfilment Platform
Procurement/Production

 Stabilised supply through expanded supplier network Increased productivity through sharing operational knowhow of 3 temperature-zone food centers
 Merged processing & production facilities for increased productivity, lower costs& improved quality

Quality Control

 Unified product selection & quality checking functions to resolve differences in brand quality &reduce costs

Materials

 Unification of packaging materials to reduce costs & improve quality
 Cost savings via centralization of catalogue printing

Logistics

 Building of an effective delivery network using Yamato Transport, our own trucks & regional facilities
 Increased convenience for customers through delivery method diversification

Settlement

 Unification of vendors for volume discounts¥▲200m(FY3/2019 Plan)

Others SG&A expenses from office/branch mergers (rent, telecom, fixtures, etc.)
 Collaboration in customer support

60

Investment Relating to Platform Development
With integration of the 3 brands, production capacity will be expanded andlogistics centers will be reshuffled. Investments to be made for scaling-up andprofitability enhancement to be promoted.
March 2019

March 2020

Expansion of production
plants, strengthening ofequipment facilities

・Increase capacity
・Improve efficiency & CoGS ratio

Cash out
Approx.

2¥bn

Reshuffling of Logistics Centers

・Implement rationalization

Utilization of Distribution Network

・Large-scale accomodation
・ Improve profitability

61

Start of Initial Collaborative Project “Ra in O”
A special Radishbo-ya sales site was opened on Oisix.com on 17 May. PB
merchandise such as chemical free seasonings were offered. Aim is to quickly
develop synergies from the formation of the group.

62

First 3 Brand Collaboration ‘Next Break Tohoku’ Begins
First 3 brand collaboration since Radish Boya became part of the Group. Saleof products new or reborn in Tokoku’s 3 Prefectures since the 2011
earthquake and tsunami.
■Sold by RadishBo-ya■Background of efforts
Sharing our producer networks &marketing knowhow, the 3 brands aim
to identify and nurture produce that
consumers will love in the Tohoku
region’s three prefectures of Iwate,
Miyagi & Fukushima. Aim is to makethem hit, flagship products. By nurturing
hit products, we contribute to theeconomic development of these areas.

Yagisawa Shoten’s ‘Kiseki no Hishio’

Soy sauce, miraculously being brewed again thanks to theaccidental discovery of vital moromi biocultures thought tohave been lost to the natural disaster■DMK Isobe-kako Kumiai marine produce

Sale of seafood from the Isobe-kako Kumiai Union, formed byfishermen, their cooperatives & intermediaries to rebuild
Fukushima’s fishing industry

63

FY3/2019 Action Plan
1. Platform for Growth of Food Delivery Business2. Progression of Takuhai Home Delivery Business（1）Oisix（2）DMK（3）Radishbo-ya
3. Progression of non-Takuhai Business（1）Physical store retail（2）Solutions（3）Overseas
4. Tokushimaru

Progression of Takuhai Home Delivery Business(1) Oisix
To meet the diverse needs of varying lifestyles, collection alternatives madepossible. Makes possible delivery to still more customers!
Delivery to the home

Pick-up at CVS (trialling since March)
Lawson Fresh Pick (Ropic)

Physical Store sales

Mobile sales

65Progression of Takuhai Home Delivery Business(1) Oisix
As well as increasing delivery points, expanding points of sale. Initiate workplacesales alongside Shop in Shop & other formats.

Buy in the office

OfficeGo straight home

Home

66

Progression of Takuhai Home Delivery Business(1) Oisix“I want it, but it’s too much like junk food… so I’ll pass…!” No need! Working withfamous brands, we have developed Healthy Junk Kits!

Curry, Ramen noodles, Hamburgers, etc.
High Calories/Low Nourishment
Too much like junk food to eat…

Add lots of safe & nourishingingredients & it becomes
Health Conscious
Healthy junk food!
67

Progression of Takuhai Home Delivery Business(2) DMKA service offering “a healthy food life” without strain and one that is sustainable.
Stimulate customer desire with ‘killer veg’ developed along this concept.
Killer veg

Amatoro Fukaya Negi (onions),
Nokoamamitsu Satsumaimo (sweet potato)

The seasons reward handwork

Miso, dried veg, jam making

68Progression of Takuhai Home Delivery Business(2) DMK
Enhancement of small portion offerings and bundling of recipe cards based on
customer needs.
Small portions/no leftovers

Bundling of Recipe Card
An eye-catching cooking pictures and recipeon the front side~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Preservation method and cooking tips
on the back side69

Progression of Takuhai Home Delivery Business(3) Radishbo-ya

Value Offering:Thoughtful foodthat rewards“time & effort to life”

Enjoy time & effort,
live each day thoughtfully,
and a sustainable future
will follow

70Progression of Takuhai Home Delivery Business(3) Radishbo-ya
 More effective promotional methods
 Reduce overall sales promotion costs
 Restrain channels with low acquisition rates
 Reduce no. of pages in catalogues, Efficient pamphlet use Solicitation of high margin services
 Reduce loss-making orders Reform of cost structure Improve CoGS margin, reduce cost of materials, settlement
fees, customer support operation

 Introduction of management methods
 Visualisation of profitability, Increasing PDCA cycle rate

Turn profitable quickly,
continually build and improve earnings structure71

FY3/2019 Action Plan
1. Platform for Growth of Food Delivery Business2. Progression of Takuhai Home Delivery Business（1）Oisix（2）DMK（3）Radishbo-ya
3. Progression of non-Takuhai Business（1）Physical store retail（2）Solutions（3）Overseas
4. Tokushimaru

Progression of non-Takuhai Home Delivery Business(1) Physical Store Retail
Through diverse channels, expand & complement Takuhai service awareness.
Focus on Kit Oisix brand recognition/increasing the number of first time users.

Directly managed
stores

Office sales

Shop in Shop

From Real to
the Web

MannedStores(small size)

Mobile salesÑursery school73

Progression of non-Takuhai Home Delivery Business(2) Solutions
Secure revenue, increase the number of customers who buy Kit Oisix withinitiatives making use of knowhow & data bases at each brand.

EC meal kit
collaboration

Expand advertisingdatabase

Exploit brand to beefup novelty

74

Progression of non-Takuhai Home Delivery Business:(3) Overseas
Begin procurement & sales in China, aim for full-fledged subscription modelroll-out.

75

FY3/2019 Action Plan
1. Platform for Growth of Food Delivery Business2. Progression of Takuhai Home Delivery Business（1）Oisix（2）DMK（3）Radishbo-ya
3. Progression of non-Takuhai Business（1）Physical store retail（2）Solutions（3）Overseas
4. Tokushimaru

Progression of non-Takuhai Home Delivery Business:(4) Tokushimaru
Accelerate sales partner acquisitions and aim for 420 vehicles in operation via use of
Oisix.Daichi’s operation-building capabilities & CRM.

FY3/2018
Vehicles in operation

FY3/2019

288(+83 vehicles, +40% YoY)

Vehicles in operation

420(+132 vehicles, +45% YoY)

Acquisition of Sales Partners

Knowhow, staff secondment, etc.
77

Contents

FY3/2019
Performance
OutlookFY3/2019 Consolidated Targets■+52% sales growth via further growth of the Takuhai home delivery business &business combination of Radishbo-ya.
■+34% growth in operating profit, +19% growth in EBITDA.
■On the assumption that the Radishbo-ya merger will occur during the current
FY3/2019, a significant increase in net income is expected owing to tax-loss
carryforwards.
Units: ¥mn

FY3/2018
Results

FY3/2019
Plan*1+/YoY+/YoY %

Sales
Operating Profit

EBITDA *2
Net income attributable toowners of parent
EBITDA per share (¥)※1※2

From this FY includes Radishbo-ya earnings (became a consolidated subsidiary on February 28, 2018)
EBITDA＝Operating profit+ depreciation + goodwill amortisation79

FY3/19 Target Sales & EBITDA Trends
Integration of takuhai home delivery business expected to result in a second
continuous term of significant growth in sales and EBITDA.
■Sales■EBITDA

610.0

Growth rate

Merger with
Radish Boya

+52.5%

20.0

Growth rate

20+19.8%

700

16.7

15

399.9

600
500

Merger with DMK

400

10

9.0

230.2
159.1

180.6

201.6

9.8

10.0
300

8.4

5

80.26
(¥‘00mn)
FY3/2014
2014/03

FY3/15
2015/03

FY3/16
2016/03

800

FY3/172017/03

FY3/18
2018/03

FY3/192019/030(¥‘00mn) FY3/2014
2014/03

82.44

84.61

104.03120.84100

72.08
FY3/15
2015/03200

0
FY3/16
2016/03

FY3/172017/03

FY3/18
2018/03

FY3/192019/03(¥)

80

FY3/2019 Targets by Segment■Oisix:Double digit sales growth & margin improvement driven by increase in subscribers.
■DMK: Sales growth & slight decrease in margin from reinitiation of promotional activity.
■Radishbo-ya: Margin improvement from cost structure reforms(previous FY approx. 12%) .
(Unit:¥‘00mn)

Takuhai Home Delivery
Oisix
Sales
Marginal profit
DMK

Sales
Marginal profit

Radishbo-ya

Sales
Marginal profit

Other Business Sales
Marginal profit
Company total Sales
Marginal profit
Fixed costs
Operating profit
EBITDA

FY3/2018(Result)

FY3/2018(Plan)

YoY

YoY

24,7993,288
13.3%
11,215
2,095
18.7%
-

27,8003,890
14.0%
11,5502,030
17.6%
15,9202,240
14.1%+3,001
+602
+0.7%
+335
△65
△1.1%
-

112%
118%
103%
97%
-

3,972

5,730

+1,758

144%

760
19.1%

840
14.7%

△4.5%

+80

111%
-

39,98761,000+21,013

153%

6,143
15.4%
5,253
891
2.2%
1,670
4.2%

9,000
14.8%
7,800
1,200
2.0%
2,000
3.3%

+2,857△0.6%+2,547
+309
△0.3%
+330
△0.9%

147%
148%
135%
120%
-

81

FY3/2019 Targets by Segment – Sales & Marginal Profit
Marginal
Profit

19.1%

19.1%

18.7%

18.7%
13.3%

13.3%

Sales

40.0

大地を守る会
DMK
その他事業
Other
businesses

14.7%
14.1%

らでぃっしゅぼーやRadishbo-ya
Oisix

14.0%
11.8%

58.0

（unit:bn）

17.6%

18.0

4.0

4.0

11.2

11.2

61.0
15.9
（△11％）
5.7（+44％）
11.6（+5％）

らでぃっしゅぼーやRadishbo-ya
その他事業
Other businesses
大地を守る会
DMK
Oisix
Oisix

24.8

24.8

27.8
（+12％）

2018年3月期（実績）
FY3/2018(Result)

2018年3月期（Proforma）
FY3/2019(Proforma)

2019年3月期（計画）FY3/2019 (Plan)※ Sales of FY3/2019（Proforma) include sales of Radishbo-ya’s Takuhai Home Delivery.
※ Other business: solutions, media, shops, overseas, wholesale, etc.

82

FY3/2019 Subscriber No. Target
Approx.

Approx.

300k

300k

69

70k
49k

44

186k

169

49
186

137
111

82

96

(Units: ‘000 People)

年3月期
2014
FY3/2014

年3月期
2015
FY3/2015

年3月期
2016
FY3/2016

年3月期
2017
FY3/2017

年3月期
2018
FY3/2018

年3月期計画2019
FY3/19(Plan)

83