Oisix ra daichi Inc.
Q2 Financial Results Briefing for the Fiscal Year Ending March 2021
November 12, 2020

Event Summary[Company Name]

Oisix ra daichi Inc.

[Company ID]

3182-QCODE[Event Language]

JPN[Event Type]Earnings Announcement[Event Name]

Q2 Financial Results Briefing for the Fiscal Year Ending March 2021

[Fiscal Period]

FY2020 2Q[Date]

November 12, 2020

[Number of Pages]

47[Time]

16:00 – 17:04(Total: 64 minutes, Presentation: 32 minutes, Q&A: 32 minutes)[Venue]Webcast[Participants]

130[Number of Speakers]

1
Kohey Takashima

Representative Director, CEO

Hideki Sumi
Yusuke Saito

Tokai Tokyo Research Institute Co., Ltd.
Snow Lake Capital Limited[Analyst Names]**Analysts that SCRIPTS Asia was able to identify from the audio who spoke during Q&A.

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Presentation
Umemura: Now it is time to commence the financial results briefing.
Thank you very much for your participation in the financial results briefing for the first half of the fiscal year
ending March 2021 of Oisix ra daichi Inc., despite your busy schedule today. I am Umemura of the Investor
Relations section of the Corporate Planning Department, and I am a facilitator of today’s briefing. Nice tomeet you.
Today's financial results briefing consists of mainly two parts. In the first half of the briefing, ourRepresentative Director, CEO, Mr. Takashima, will report the financial results for the first half of the fiscal year
under review for about 30 minutes, focusing on the results for the first half of the year. After that, we willcontinue to a Question & Answer with the participants.
In the Question & Answer, we will use the raise hand feature of Zoom Video Communications, Inc., andconduct it in an oral form to answer questions. We will also accept questions via chat for participants who arein a situation unable to speak. The details of the Question & Answer will be explained again.
Now, we will move to the financial results briefing for the first half of the fiscal year under review.
Representative Director, CEO, Mr. Takashima, please start.
Takashima: Good afternoon everyone. Nice to meet you. Thank you very much for your participation in our
financial results briefing, despite your busy schedule today.
We were listed on the first section of the Tokyo Stock Exchange in April, and we conducted a financial results
briefing in May on the internet. We are conducting today’s financial results briefing on the internet as well.
It is difficult to do it in that way because I cannot see everyone's reaction. Nevertheless, I am pleased with thefact that many people will be able to watch it. Thank you for your time today, despite your busy schedule.
First, I would like to explain the results of our activities, including the entire first half with the second quarter,
as well as our outlook for the future.

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We have a lot of items to explain, as described in the table of contents. I will explain about this period, ouroutlook for the future, and some topics.

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Before explaining, I think that many people are participating today, including those participating for the firsttime. Since we shifted to the First Section, I would like to, once again, explain our corporate philosophy as an
introduction of ourselves. We have positioned ourselves with the philosophy of Farm for Tomorrow, Table forTomorrow.
In 2000, I founded a Company, Oisix. In 2017, my Company merged with Daichi wo Marmoru Kai, which had
had a longer business operation of 40 years. In 2018, we merged with Radish Boya, which had run the businessfor more than 30 years, and Oisix ra daichi Inc. was established. When we established the new Company, we
created this corporate philosophy over time with everyone.
The reason I mention this corporate philosophy in the introduction of our Company is that we have a strong
commitment to this philosophy, and we cherish it. Our corporate philosophy is to improve both dining andfarm, not dining alone, or farm alone. As described in the second row from the bottom, we are trying to solve
social issues related to food through business methods.
Our main business now is to solve the social issues related to food in the area of food subscription, where wehave the greatest strength. Going forward, we will continue to develop our business in line with this businessphilosophy. That was an introduction of ourselves.

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4Now, I would like to explain the contents. I would like to report on our business performance. First, I would
like to mention a cautionary note when you look at it, YoY.
In April of last year, we acquired Purple Carrot, a vegan food company in Boston, in the US. But we did notconsolidate it in the first half of last fiscal year, which was from April 1 to September 30. We consolidated itin the latter half of the previous fiscal year, so the report shows in that way.
This year is the first consolidated year for the full 12 months, so when you look at the report YoY, the portionof Purple Carrot is simply added in sales and profit for the first half performance.

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Next is a summary of results. A lot of items are written, but I will explain while looking at the graphs andnumbers. Net sales increased by approximately 1.5 times YoY to JPY47.5 billion. EBITDA increased byapproximately 3.5 times to JPY4.67 billion.

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6Regarding the background why sales increased, as these are also graphs of sales, I will explain it on the next
page.
Sales grew by approximately JPY15 billion. Its breakdown is three domestic home delivery divisions, Oisix,
Daichi wo Marmoru Kai, and Radish Boya. This business grew by approximately JPY10 billion. Despite the
COVID-19 circumstance, sales per capita, ARPU, grew very much. Each of the brands grew approximately by
1.2 times, which is significant.
In addition, the number of subscribers grew. In particular, in the first quarter, the capacity of Oisix's
distribution centers became full, so we were unable to conduct promotions for Oisix sufficiently. In the second
quarter, the capacity problem was largely resolved, so we made some promotions, and there was an increaseof about 20,000 customers in the Oisix brand, increasing sales.
In terms of Other Individual Businesses, we supported the Hong Kong Business and Ecommerce Business ofother companies through the collaboration with ISETAN DOOR and with NTT DOCOMO for d meal. We arealso seeing an increase in the number of customers.
On the other hand, sales in the Nursery School Wholesale Business declined because nursery schools wereclosed, particularly in the first quarter, or the first half of the fiscal year. Although it is returning to a certain
extent, we were able to carry out the sales activities that we had previously anticipated, so we have not yet
reached our initial anticipation level for this B2B Business.
The third is on Purple Carrot I mentioned at the beginning. We acquired it last year and have been carryingout management improvements, among others. I think there are some effects, probably a little, but rather,
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US has been affected by COVID-19 very much, resulting in an increase in shipment. Sales also increased
because of the growing need for vegan food due to a growing awareness of health.

Now, on profit. As a whole, it increased by a little over three times. The biggest was that the sales in the threehome delivery divisions increased, which led to an increase in profit. Profit increased approximately JPY2.5
billion.
On the other hand, this isn't a very good story because we were unable to conduct promotions for Oisix due
to the overcapacity of the delivery centers I mentioned earlier. An expense of approximately JPY0.75 could
not be used.
Regarding Other Business, Purple Carrot was in the red at the time we acquired it, but it became profitable
for the first time this fiscal year. We did not anticipate it very much. Instead, we anticipated that it would
continue to be in the red for a little longer period. Over this period, the fact that we achieved profitability
meant that sales and profit increased from it.

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8Next is results by segment. As I already mentioned, as a whole, net sales amounted to JPY47.5 billion, andoperating income amounted to approximately JPY4 billion. I would like to explain more details by segment.

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First, I would like to explain it from the three major domestic brands.
Regarding Oisix, as a result of the resumption of promotions in the second quarter, we were able to increase
the number of customers by about 20,000. Summer is the toughest period in the year with sales per capita
falling. However, this year's summer holiday was considerably shortened, and customer behavior changed.
As a result, ARPU declined, but not substantially, to about 120% YoY.

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Among them, our mainstay, Kit Oisix’s course, is growing very much.
We also conducted some collaboration. One of two typical ones was the collaboration with MOS FOODSERVICES, INC. With regard to Future Food Fund, a fund for food technology, they joined JP just like us. The
collaboration with MOS FOOD SERVICES, INC. was very well received, so items sold out quickly, which was areflection on us.
Another thing was our collaboration with OOTOYA Holdings Co., Ltd. at the beginning of fall, and items weresoon sold out. We began collaborating with such well-known restaurants in this quarter.

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Also, we started the Home Restaurant Business in April immediately after COVID-19. We deliver restaurant
food to general households because such restaurants did not have customers and could not use ingredientsanymore.
Sales has been continuously growing even after a State of Emergency was declared. We initially started it toprovide support, but it could become a business that supports a new lifestyle, more than a support. Therefore,
we have continued to do the business, and now 23 stores are participating.
They are participating, but our model is not like we receive a fee from them. Rather, we purchase and sellrestaurant ingredients or menus. In some cases, we work with them to develop products and sell them.
We have received many customer comments, but from now on, regardless of COVID-19, people will eat
restaurant food at home, or it becomes a matter of course to spend at a dining table with a mixture of foodcooked by chefs, and food cooked by housewives. I feel that there will be such changes, so we will continue
to handle them.

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Now is on the last topic of Oisix. The capacity of our distribution center reached its limit in the first quarter.
So, we quickly added two satellites, and then we improved the productivity of the satellites . Even so, we could
not catch up, so we planned to operate the Sayama Station.
The preparation to operate the Sayama Station has been going on well. In fact, the productivity of the originalsatellite improved more than we expected. We will conduct test operation for the Sayama Station until theend of this year and will begin its operation at the beginning of the next year.

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In the future, we started the business in Ebina, and we immediately created satellites in Fujisawa and Zama.
In addition, we created a satellite in Sayama that is large in scale. We are developing our business in multiple
locations.
In October next year, we are making a large investment, and a new Ebina Station will be built, which weoriginally planned. Thereafter, we will consolidate into the new Ebina Station, and logistics costs will
temporarily deteriorate slightly from now on. However, from October next year, we plan to raise productivity
and increase profitability.

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Next, is on Daichi-wo-mamorukai. The number of customers has been continuously increasing in the Daichiwo-mamorukai as well. It fell during the summer vacation, but it was better than the previous year, which isthe same trend.

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In the case of the Daichi-wo-mamorukai, an energetic senior group is a main target, and items of a businessmodel, Ryoufu-kai, fish and such, are hit items for them. People of the Daichi-wo-mamorukai have thestrongest trend of staying at home, among other our brands. Sales per capita is nearly double than that of the
Oisix brand, so these people are using various types of items.

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Now is on the Radish Boya. The number of its subscribers declined slightly. As we had planned before the
COVID-19, we were conducting activities in this second quarter to change the delivery method or the
procurement method, so it declined slightly in that period because we were unable to promote it.
Regarding ARPU of the case of the Radish Boya, as in the case of the Oisix, it increased more than 15% during
the summer YoY.

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In terms of improving profitability, the delivery frequency of the Radish Boya is the highest among the other
our brands, and that led poor efficiency and differences in product quality. Therefore, we are working to
improve quality and improve costs by creating two intermediate collection centers between producers andstations, one in eastern Japan and the other in western Japan.

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Also, as a topic for the end of the year, there are many people who haven't made plans for it, but many people
will stay at home or spend their time at their parents' homes without going abroad. The reservations for the
food served during the New Year's holidays are also doing well at the moment.

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Next is on other Domestic Business. The first is on the Ecommerce Support Business for other companies.
The trend is similar to others. The Ecommerce Business, ISETAN DOOR, that we are working with Isetan
Mitsukoshi Group, as well as the d meal kit that we are collaborating with NTT DOCOMO, has just begun. But
the number of customers has doubled since the end of the previous fiscal year, and they are continually
growing.
For our part, we do websites, systems, logistics, service design, and so on.

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Another is on Tokushimaru Inc. This is a service mainly for people in their 80s and 90s who are unable to fulfil
their shopping needs. There is also a growing need for this service. The total value of transactions handled isincreasing, and the number of units is increasing.
We started collaboration with Ito-Yokado Co., Ltd. this Spring, and its experimental development has been
almost completed. Now, it is shifting to an increase phase. Since September, they have been providing theirservice weekly.

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Finally, it is on Other Business.
As I mentioned earlier, Purple Carrot is growing because demand for Purple Carrot is rising in the US, andthere is also growing demand in health consciousness. During the first half of the fiscal year, net sales totaled
approximately JPY4 billion. As a result, it became profitable.
Regarding another topic, we started to sell frozen food and vegan food of the Purple Carrot brand at a verylarge supermarket in the US called Whole Foods Market.

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Next, the other overseas is on Hong Kong. Hong Kong experienced a problem with COVID-19 earlier than Japan,
and it experienced an earlier converge than Japan. Due in part to this, we made efforts to continue ourbusiness, and it saw the first quarterly profit. As a result, sales are growing steadily.
On the other hand, we are having difficulties in launching business in Shanghai. We are launching it with ourstaff currently unable to go to China. I think the market environment has been fully recovering, but our
preparation is not as smoothly done. But we are proceeding a little bit at a time.

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The rest are on stores. Some stores were closed, but sales are growing, somewhat.
As I mentioned earlier, sales at nursery schools fell slightly.

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As for the fund, Fuso Chemical Co., Ltd. and Jalux Inc. newly funded the LP. For this period, that will be afunding to snaq.me Inc., which is providing a snack subscription service.

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In terms of our affiliates, DEAN & DELUCA had a very hard time in the first quarter. Although sales were still
down in the second quarter, it is recovering little by little. The stores were not even open in the first quarter,so sales were tight, but they opened the stores from the second quarter. There is a tailwind that could begood or not, I am not sure, but the sales of eco-bags and tote bags were very strong in July, partly due to theimpact of charging for plastic bags.

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Next is our social activities. This is not a profit-making business, but I would like to report on these activities,
as they are also conducted using the Company's resources.
This is called WeSupport Business. We deliver a variety of food of food companies to healthcare professionals
who don't even have the time to eat.
We asked about it in April, started immediately, and then gradually expanded. Currently, we have been
donated a variety of food from nearly 100 food companies, which we deliver with SEINO TRANSPORTATION
CO., LTD. to 76 medical institutions.
At the moment, we've finished offering food to those with better situations, but still a little over 20 medical
institutions are in a tight situation. We are continually providing these types of support with some, saying thatthey are becoming tighter due to an overlap with the flu. We have offered a cumulative total of just over
JPY300 million of food.

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Next, is something we [do internally]. We receive requests from producers for [their] ingredients in excess
due to the disappearance of tourism and cancellation of events.
For example, with the chicken called Awao Dori, we will start to sell it from next week as a meal kit because
Awao Dori was cancelled, so the sales of chicken decreased very much.
Also, there was a problem that brewers' rice would be left over in excess because restaurant s will close. As aresult of studying considerably with producers how to eat brewers' rice deliciously in ways other than inalcoholic beverages, we discovered that it would be extremely delicious as risotto. So, we will start selling it
as a risotto set next month.
These are only a couple of example cases, but we intend to continue to do what we can to help throughvarious food issues.

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Next is a revision and forecast of our business performance.
About two weeks ago, we revised the forecast. For net sales, we revised it to be JPY90 billion against the initial
forecast of JPY78 billion. For EBITDA, we revised it to be JPY6.4 billion against the initial forecast of JPY4.4
billion. For operating income, we revised it to be JPY5 billion against the initial forecast of JPY3 billion.

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In terms of progress, net sales also exceeded 50%.
Regarding EBITDA and operating income, as well, at present, due to COVID-19 circumstances, we added to behigher than usual, but we expect these to be relatively conservative.
In particular, in terms of ARPU sales per capita, I think that we added considerably more than its normal
performance, so we will look at it a little conservatively. On the other hand, since our customers are on a
subscription basis, I don’t think the number suddenly declines, so we have taken that into account and havemade this revision forecast for now.
In terms of profit, there are some areas that have been relatively strong in the current fiscal year, so we would
like to do as much as possible to use the money that will lead to the future in the remaining second half ofthe fiscal year. Regarding the amount for various items that we could not use in the first half, we intend to
make use of it by the end of this fiscal year. In light of this, we have made such a revision. The breakdown is
as described here.

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Also, the number of subscribers is just under 400,000. We would like to achieve just under 390,000 by
combining the three brands.

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I would like to explain about some topical things.
First, as we announced in today’s morning, we will start collaborating with Walt Disney Japan.
As many of our customers, particularly in the Oisix brands, have small children, and there are a variety ofissues such as dietary education and taste problems. For example, about one third of elementary school
students have a taste impairment problem. This is said to have been affected by the unbalanced diet before
entering elementary school. To solve such problems, we will begin our efforts to improve the foodenvironment for Japanese children by combining Disney's overwhelming fans, a sense of fun, with our safe
ingredients.
As the first step, as it started today, we began to sell hamburger patties with the shape of Minnie Mouse on
the right side and Mickey Mouse on the left side.
In addition to meal kits, we are planning to collaborate in a variety of other areas in the future. As I have said,
we are working with Disney Japan to resolve the problems of various Japanese households, particularly thosewith children.

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32This is a report on the collaboration with OOTOYA Holdings Co., Ltd., which was announced in August. After
that, there was a TOB with COLOWIDE CO., LTD., and we have begun to discuss with the management of
COLOWIDE CO., LTD., and the new management of OOTOYA Holdings Co., Ltd. regarding the collaboration.
Originally, we were planning to collaborate with OOTOYA Holdings Co., Ltd., but in conjunction with this, I
understand that we may be able to do various things with COLOWIDE CO., LTD. I believe that we can deliver
various brands that COLOWIDE CO., LTD. has, for example, in the form of home restaurants or meal kits. We
have begun discussions on the possibility of collaborating in such areas as manufacturing, productprocurement, and so on.

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The final topic of this report is our approach to the Green Shift. I would like to introduce it as I close thebriefing, but I would like to announce again our corporate philosophy.
Our corporate philosophy is, we realize a society that deliver a sustainable framework that links farm andtable, as shown in the middle. In this sense, we believe that our corporate philosophy, itself, is to create
products in a sustainable manner, deliver them in a sustainable manner, and eat them in a sustainable manner.

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In conjunction with this, we have already begun a new Green Shift, but I would like to introduce today fivemeasures in four areas.

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First is the production method. With regard to production, as the Ministry of Agriculture, Forestry and
Fisheries, and the Ministry of the Environment have announced about decarbonization, we will also reduce
the amount of greenhouse gases emitted in the production process. By introducing Green standards, andworking together with producers to achieve it, we intend to reduce the amount of greenhouse gases
generated in the production process from five perspectives.

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Then, the second is about delivery. We believe that we must also begin experiments, so we will begin
demonstration tests of delivery in electric vehicles.

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Third, we are already working on this, and we would like to further evolve it. In Kit Oisix, our meal kit, webegan using bioplastics in February this year to reduce emissions by about 13 tons per year. In addition, we
intend to continue to replace other materials with more environmentally friendly packaging in the future.

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The fourth and fifth are our approach to food loss.
For example, in the case of Kit Oisix, we are using our field loss very well and proposing it to our menus. Also,
our loss of distribution process is very small. Compared to supermarkets, we dispose of very small amounts
through distribution.
Customers using kits only receive the ingredients they need, so there is very little waste at home. This meansthat Kit Oisix is very food-loss-oriented, and we will further strengthen our efforts in this area.
Then, it's about the upcycling. The upcycling is a term for food that might be eaten by processing food waste,
which is created in the process of making food, and is originally thrown away. We would like to increase theseproducts in the future.
I would like to reinforce the products that are our original products or those in which Future Food Fund isfunding for.
That’s all for my explanation. Thank you very much.
Umemura: Representative Director, CEO, Mr. Takashima, thank you very much.

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Question & Answer
Umemura: Now we will move to a Question & Answer.
When asking questions, please tell us your company name and name at the beginning . The number ofquestions should be up to two per person. If we are unable to reply due to time limitations, we will disclose
our answers on our website at a later date.
If you have a question, please inform us with the raise hand button on top of the screen.
Sumi: I am Sumi of Tokai Tokyo Research Institute Co., Ltd. Thank you very much for your explanation today.
I would like to ask you two questions.
First of all, I think that the purchasing frequency was increasing even during the second quarter in each brand.
Did it increase because of the effect of refraining from going out after the declaration of a state of emergency?
Or was it because there were some changes in consumer’s purchasing actions? Could you please tell us how
you think?
The other point is that the operation of the Sayama Station would increase costs. On the other hand, are there
some areas that you are seeing, such as costs due to detouring delivery between stations that you rent
externally, or cost improvements due to a decrease in warehouses, and cost improvements?
Takashima: Thank you very much. I will answer the two questions. Regarding the frequency of purchases, as
you have pointed out, the number of hours spend at home has increased continuously from the first quarter.
In addition, in every second quarter they travel during a summer vacation. It's a usual tendency for the second
quarter that the frequency goes down because they are away from home. Rather than it is low as a whole inthe second quarter, especially around the middle of August, it goes down sharpy.
It was not the case this year. They rather went on a trip after the beginning of October due to the effect of
the go to campaign, as everyone would feel that they went on a trip in October, rather than in August. I thinkthat this year was not impacted by a sharp decline that happens every year.
Also, regarding the operation of the Sayama Station, although my explanation may have been a bit bad, we
will use the Sayama Station in parallel with the satellite centers in Fujisawa and Zama that are currently inoperation. That is why add-ons are purely costly.
We will close several centers, one by one, after the big one is built in Ebina in September, or October next
year. We will move gradually, and from the beginning of 2022, we will be able to reduce the detouring cost
after we can integrate all at the new center in Ebina. This is all.
Umemura: Representative Director, CEO, Mr. Takashima, thank you.
Now let me move on to the next question. Ms. Shoji, please ask your questions.
Shoji: I am [Shoji] of Nikkei Business. Thank you very much. I would like to ask again that the use of otherinternet supermarkets is increasing due to the COVID-19 crisis. I would like to ask about the strengths of Oisix
ra daichi Inc. compared to net supermarkets, and how do you think about net supermarkets as competitors?

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Takashima: Thank you very much. I'm not very good at answering this kind of question, and I haven't analyzed
anything about other companies. No matter what the COVID-19's circumstance is, we are trying hard to meet
our customers' needs.
I really don't know what's different compared to other companies, but in our case, this is a subscription service,so it will take some time before it's delivered after ordering. I feel that people choose from a living with the
Oisix, a living with the Daichi-wo-mamorukai, and a living with the Radish Boya. Then they will buy what theyneed for the day and what they want tomorrow, and that they will use the service differently by customer.
In that sense, we have been visiting customers' homes every month and interviewing them, but since thattime there has been little sense that internet supermarkets will be competitors, and there are a great numberof people who use them in combination.
So far, people used both Oisix and Consumers' co-operative, then they think they have vegetables that arevery concerned about safety, or meal kits that are only available at Oisix, and they buy them because they areavailable only on Oisix, but they buy canned food or beer from Consumers' co-operative. Then, they are
becoming more and more likely to use Oisix and net supermarkets. I can't say for sure that I don't reallyanalyze that we are competing with online supermarkets for customers.
As a customer, meal kits, the value we provide, if they are Oisix, it is time saving that they don't feel bad, butrather a time saving they can be proud of. Regarding the Daichi-wo-mamorukai, it means a healthy life for ahusband and a wife. Regarding the Radish Boya, it means self-realization through cooking. I feel that they arebuying some kind of value and making it a habit, so I'm afraid I'm having trouble every time to say we won inthis area.
Shoji: I understand. Thank you very much.
Takashima: I think it's a bit hard to make an article. I apologize.
Shoji: Thank you very much.
Umemura: Thank you, Ms. Shoji. Now let me move on to the next question.
Mr. Saito, please ask your questions.
Saito: I am Saito of Snow Lake Capital Limited. Regarding the cost could not be used in the first half of the
fiscal year, is that only new sales promotion expenses? It was JPY650 million in the first quarter and JPY750
million in the first half of the fiscal year. Was it about JPY100 million yen that could not be used in the second
quarter? Is there any other portion that could not be used for costs, and whether it is the case that it is moving
to the second half of the fiscal year?
Takashima: A large portion is for promotions, but things we could not do. But we want to do in the second
half is hiring, for example. In the first half of the fiscal year, it was difficult to do a job interview, so we wereunable to do it. However, we would like to actively recruit in the second half of the fiscal year.
Saito: I understand. The next question is related to the question just answered. I think you are a assuming a
JPY5 billion as a full-year operating income. In this case, it will be JPY1 billion in the second half. If I look at theseasonality of figures of your Company in the past, I think that the third quarter will have a tendency for sales
and profits to increase. Considering this, if you don't use substantial costs in the second half, I think you will
not be able to reach this level considering the current momentum.

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Could you please comment on whether you are thinking of spending a considerable amount of money on suchthings as hiring that you just mentioned, or you don’t know in the COVID-19 circumstance?
Takashima: I am thinking both. As you have said, I don't know well. In the first half of the fiscal year, there
was money could not be used. In particular, the situations in April and May were very special, so the profit
was more than our performance. I don't think the double of this is our performance.
Even if the current situation continues, I don't think it will be doubled, and taking that into account, I surely
want to use the money, but I also feel I really don’t know. Particularly with regard to ARPU, it is directly linked
to earnings, but it is not easy to read, so we are looking at it conservatively as you said.
Saito: I understand. Thank you very much.
Umemura: Thank you, Mr. Saito. Then, I would like to move to questions in text.
This is from Mr. or Ms. Akiba from Nihon Ryutsu Keizai Shimbun: Regarding the home restaurant of the Oisix
and a joint meal kit with restaurants, do you expect trends among consumers purchasing restaurant products
to eat at home to continue from next year onward? Please tell us about the outlook.
Takashima: Thank you very much. Basically, looking ahead to the future does not make much sense in itself,and I think it is important to quickly respond to what has happened. However, looking at the current situation,
as I said a little earlier, sales of our home restaurant corner is continuing to grow.
I think the time our customers spend at home is decreasing compared to that in April or May, but still thisbusiness itself continues to grow.
When we look at the customer's comments and usage, they have small children, so they couldn't go torestaurants they wanted to go for a long time, but thanks to this home restaurant corner, they can enjoy itwith their family. Or they eat salads of the Oisix with a pot dish of a different company and it was delicious. I
feel that this is becoming a new lifestyle for our customers. At this point in time I would like to focus on
expanding this service.
The same applies to the meal kit we did with OOTOYA Holdings Co., Ltd. and MOS FOOD SERVICES, INC. I feltthat we were able to provide customers with quite a good surprise that the taste they couldn't enjoy unlessgoing to the restaurant can be reproduced by themselves at home. I think it will probably expand for the time
being, so I intend to continue doing so. Thank you very much.
Umemura: Thank you. This will be the next question: Regarding Purple Carrot, the growth rate has been risingpartly due to the impact of COVID-19, and do you think that it will continue to grow at the current pace?
Takashima: It's about in US, and it's hard to answer because none of us inducing me has been able to go to
the US. To be honest, I think that the current Purple Carrot’s growth is more temporary, so rather than growing,
I think that sales will settle down a little once.
Currently, the number of infected persons with the COVID-19 is increasing in US, so it may change, but evenwhen we look at the order status once calmed down, we felt that the number of customers would be flat orslightly lower, so I think it would be calm. We really don't know what will happen because we really don't
know in what period their living environment change in US. However, I think Purple Carrot is more reliant on
growth due to the COVID-19 than the Oisix and services in Japan.
That's why we have once achieved profitability without negligence, but in reality, we must once create amodel in which even if sales actually decline, we can generate stable surpluses. Regarding this, we are still in

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42the middle of the process as to whether we will proceed firmly in the future. Therefore, we will do our utmost
to improve profitability and reform our business model about Purple Carrot.
Umemura: Thank you very much. Next question: I would like to ask you about your collaboration with Walt
Disney Japan. Could you please explain in more detail the circumstances that led to this talk and the aims ofyour Company?
Takashima: Thank you very much. I don't know much how that led, but Disney Japan is developing various
business in US under the concept of healthy living, and I have heard that it chose us as a partner for the fullscale development of this business in Japan as well.
What we expect from Disney Japan is that, it may overlap with what I have just said, it is very difficult to force
children to do something regarding the problem of children's diet, so we need to nudge them things that aregood for the body, good for health, and good for nutrition. I think that Disney Japan has the power to leadchildren that they do so because it’s fun. I hope that by working with Disney Japan, we can solve the fooddiscipline area a little bit more smartly.
Umemura: Thank you. Then I will move on to the next question: Do you ever feel a shortage of contract
producers? In addition, is there any change in the relationship with existing producers regarding your businessand expansion of procurement routes?
Takashima: Originally, the Oisix brand was faced with a shortage of producers about five years ago, and the
problem of securing producers has been resolved considerably by joining forces with the Daichi-womamorukai and the Radish Boya.
In that sense, the shortage of contract producers is no longer a bottleneck to business growth at this stage,but, of course, it’s not like we will not have the problem forever. In the process of growing a little more in the
future, we must increase the number of producers. I think we need to increase the number of producers who
can make products based on our standards.
In the short term, however, the lack of needs for souvenir shops, restaurants, and other restaurants is causing
a great deal of trouble for producers, who were selling wholesale to them. At the moment, we would rather
sell the products from such producers who were selling wholesale to such places, but we are not able to meettheir needs. Producers have a rather tight need to sell more, so I think we need to build up our sales ability tomeet that need.
There is not so much change in relationship. However, as the scale of business increases, the scale ofproduction also needs to increase. In this sense, producers should actively invest in business and growtogether. We feel that we will continue to conduct business with such producers. This is all.
Umemura: Thank you. Then I will move on to the next question: In the previous answer, there was an
explanation about recruitment for the second half of the fiscal year. For what role do you need to hire? Is that
product development, new businesses, or producer management? This question is about a department thatneeds personnel.
Takashima: I need a lot, but one is for a new business relating to the home restaurant, and the business with
Walt Disney Japan. Our situation is that we have a variety of opportunities, such with COLOWIDE CO., LTD.
and OOTOYA Holdings Co., Ltd. in the future.
In that sense, it could be both that new employees will do new businesses , or the existing employees do it
while new employees do the existing business. I think the point is to seize such new opportunities firmly.

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43Some departments have simply increased the number of employees, so we have to increase the number ofmanagers. Therefore, we will increase the number of management personnel.
Also, we need engineers and designers. If our distribution centers change due to larger scale and large-scale
investment, we will need to upgrade our inventory system, hatch system, and others more and more.
Therefore, we intend to recruit engineers and designers in a super-aggressive manner.
Umemura: Thank you. Then I will move on to the next question: Please tell us about your future plans for thebusiness with TOKUSHIMARU inc. Regarding the number of 1000 units for operation. By when do you think
you can achieve that?
Takashima: Maybe I haven't decided when it will be, but we are working hard to increase the number to 200
a year, so if we can increase at this pace, I think we will be able to do it in about two to three years.
Although we are making a profit from TOKUSHIMARU inc., but it is not a situation in which we are generating
tremendous profits. But I am thinking that would be fine now. The number of those who are unable to fulfil
their shopping needs continues to increase, particularly in the current situation, but more and more people
are afraid of entering a nursing care facility, so I think there are many people who want to continue living ahealthy life at home even though they cannot go shopping.
Considering these people, it is important to increase the number of units for the time being, rather than toincrease the profit of TOKUSHIMARU inc. The important thing to do this is to increase the number ofsupermarkets that will work with us, and at the same time, the main driver is s ole proprietorships, but I thinkthat we will increasingly hire or contract with such drivers.
In that sense, we are in an environment that is easy to do, so we are currently aiming for 200 units per year,
but we intend to further accelerate this pace in the future.
Umemura: Thank you. Then I will move to this question: First, what is your business's TAM, the largest market
scale envisaged?
Second, what points are you focusing on regarding the retention of members in the three divisions?
Takashima: I would like to answer this question, but I have not assumed the first one at all. In other words, I
think that it will not be finished at 10 times in Japan, but I feel that I will be troubled if I am asked why.
The meal kit is really not known yet at all, and we are not at all known. We were on a TV last week, but the
impact was I really think it just started. It is too soon to see the maximum value. Sorry, I can't answer this.
Regarding retention, rather than thinking for each of the three divisions, we are now working to put theretention marketing that we have been doing at Oisix into Radish Boya , Daichi wo mamorukai or Purple Carrot,
and it is also effective.
Largely speaking, to reduce negative experiences and to increase positive ones. There are many negative
experiences, such as food going bad that, easy to understand, but other than that, there are various negative
experiences such as difficulty in making payment or customers could not receive due to absence. This meansthat we will make it quantitatively visible and improve it.
Regarding positive experiences, it is clear that there is a difference in shopping behavior when comparing
customers with high lifetime values and customers without them. Therefore, we will analyze this and provide
services that facilitate shopping behavior that leads to high lifetime values for many customers.

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44For example, regarding Oisix or other websites, in the first few weeks of joining the site, pages specializing in
those who have begun joining the site are shown, making it easier for them to make purchasing decisions withhigh renewal rates.
By doing so, we increase the number of positive experiences and reduce the number of negative experiences
precisely and quantitative terms across all brands.
Umemura: Thank you very much. Let me introduce the last question: The number of subscribers is rapidly
advancing, and it is expected to grow to more than 50,000 in the current fiscal year in the three divisions.
Regarding new members, are there any changes in the characteristics of users to date?
Takashima: There have been some sudden increases in this, so we thought there was a lot of change, but so
far there has been little change. This means that people who are similar to the customers of each brandultimately buy it. I feel that people who were originally interested was given an opportunity from the COVID19, rather than the need for something different. So far, we have imagined a big difference from ourcustomers, but unlike we imagined, we believe there is no change. This is all.
Umemura: Thank you. Now the time has come to conclude the financial results briefing for the first half ofthe fiscal year. We will disclose answers to questions that we were unable to answer on our website at a laterdate.
Thank you very much for your participation despite your busy schedule.
Takashima: Thank you very much.
[END]______________
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