FY2019/3 3Q Results
Explanatory Materials

Oisix ra daichi Inc.
2019.2.13

Table of contents

1. FY3/2019 3Q Achievements

2. Results Forecast Revisions
3. Topics in Addressing Food-related Issues
4. APPENDIX・DATA SHEET

1

1. FY3/2019 3Q Achievements2

<Special factors of the current term>
1. These figures below include performance of Radish boya for 10
months, March to December, to reflect a change in fiscal year.
2. Net income includes the tax effect of Radish boya's carryforward losses and deferred tax assets.

3Q Highlights
Sales

48.90bn yen(YoYOperating
ProfitEBITDA※1+63.0％)

2.26bn yen

Net income
Attributable toowners of theparent(YoY +227.2％)

2.88bn yen(YoY +124.7％)

2.53bn yen(YoY +653.7％)

Home Delivery Business
Oisix

DWMK

Sales

Sales

22.19bn yen(YoY +20.1％)

8.40bn yen(YoY -1.2％)

Marginal profit

Marginal profit(YoY +39.2％)(YoY -6.9％)

3.37bn yen※2

1.53bn yen

Radish Boya
Sales

14.34bn yen

Other Business
※2

Sales

4.19bn yen(YoY ー ％)(YoY +39.1％)

Marginal profit

Marginal profit(YoY ー ％)(YoY -16.1％)

2.65bn yen

0.47bn yen
3※1 EBITDA stands for earnings before depreciation and amortisation.
※2 Includes amortisation of goodwill (included in each business segment in the financial results & quarterly reports)

<Special factors of the current term>
These figures below include performance of Radishboya for 10
months, March to December, to reflect a change in fiscal year.

Consolidated Results Overview

Sales, operating profit and EBITDA set new records highs
Sales

48.90
（YoY

bn yen+63.0％）

Operating Profit

EBITDA

2.26

2.88

bn yen（YoY +227.2％）

48.90

（YoY
2.26

bn yen+124.7％）

2.88

30.00
1.28

13.57

15.11

17.11

0.63

0.62

0.69

0.78

0.80

0.55

0.41

FY2015/03

FY2016/03

FY2017/03

FY2018/03

FY2019/03

FY2015/03

FY2016/03

FY2017/03

FY2018/03

FY2019/03

FY2015/03

FY2016/03

FY2017/03

FY2018/03

FY2019/03

3Q

3Q

3Q

3Q

3Q

3Q

3Q

3Q

3Q

3Q

3Q

3Q

3Q

3Q

3Q

4

<Special factors of the current term>
These figures below include performance of Radishboya for 10
months, March to December, to reflect a change in fiscal year.

Business segment Results Overview
Sales

48.90
Other
Businessbn yenMarginal profit
margin11.4％

Segment costs

Total segment costs

RadishBoya

DWMK

Marginal profit
marginSegment costs

18.5％

Marginal profit
margin40.86bn yen

Segment costs

18.3％

Marginal profit

8.04
Oisix

Marginal profit
margin15.2％

Segment costs

bn yenCompanywide fixed costs,
Goodwill etc,

5.77bn yen
Operating Profit

2.26

bn yen5Overview of Business Segments
Business segment

Business

Business Unit

Oisix
DWMK

Radish Boya
Other Business

Overseas BusinessHong Kong
China(Shanghai)

Real Retail Business

Shop
Shop in Shop
Kindergarten Wholesale

Solution Business

Alliance
Novelties

Subsidiary

Tokushimaru

…

etc

6

Oisix KPIs
Number of subscribers: Steady growth driven mainly in Kit Oisix course
ARPU: Price/purchase increased, despite Purchase frequency decreasedslightly due to an increase in light users
Number of subscribers

ARPU

197,272

197,272（YoY +21.1％）

11,534yen（YoY -0.5％）

189,352
179,942
169,664

162,891
155,827

12,087
11,955 11,932

147,474

11,833

137,359

11,587 11,602

130,673
124,283

11,586

118,124

11,127

11,057FY2017/3 FY2017/3 FY2017/3 FY2017/3 FY2018/3 FY2018/3 FY2018/3 FY2018/3 FY2019/3 FY2019/3 FY2019/3
1Q

2Q

11,534

11,562

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

FY2017/3 FY2017/3 FY2017/3 FY2017/3 FY2018/3 FY2018/3 FY2018/3 FY2018/3 FY2019/3 FY2019/3 FY2019/3
1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

7

Oisix Topics
The number of meal kit subscribers exceeded 90,000 thanks to accelerated
growth in demand for meal kits.
No. of meal kit course subscribers

Feature of Kit Oisix(Includes Oisix subscribers)

94,841

94,841

１
Delivers volumes/quantities of food87,232

suitable for a given family size. Allows（YoY +43.0％）

79,674preparation of the main dish and sidedish in 20 minutes.

71,1242

66,324

All menus contain five or more

61,831

types of vegetables and reflect
55,489consideration for well-balanced

50,010nutrition.

47,39044,2903

37,827

Uses only safe, reliable ingredientsfrom farmers and manufacturers
under contract to us.
FY2017/3 FY2017/3 FY2017/3 FY2017/3 FY2018/3 FY2018/3 FY2018/3 FY2018/3 FY2019/3 FY2019/3 FY2019/3
1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

8

Oisix Topics
Cumulative shipments of Kit Oisix surpassed 30 million, and we offers avariety of menu proposals, including collaboration with cooking expert.
In addition, the shipping table was revised in February to make it easier touse weekly, such as by lowering reducing the free shipping fee
Kit Oisix
Cumulative shipments of Kit Oisix surpassed

30 million meals!

（as at end December 2018）

Revision of the shipping table
Lowering the free shipping fee and revising the tableto make it easier to use weekly
Lowering the free shipping fee from ¥8,000 to ¥6,000◆Kit Oisix released recently

Change to simple shipping table
Collaboration Kit with Shinpei Kurihara,cooking expert“Cheese Taccarbi" which children can eat

Supporting students!
"Sweet Pig Sotate" with Chinese Yam "Nebari star"Price/purchase

Shipping fee

8,000yen～free

6,000yen～

100yen4,500yen～

150yen3,500yen～

350yen～3,499yen

750yenPrice/purchase

Shipping fee

6,000yen～free

4,000yen～ 200yen～3,999yen 600yen

9

DWMK KPI
Number of subscribers: Stop low-LTV channels and move to attract highquality new customers
ARPU: Bipolarization of purchasing behavior continued,
Price/purchase increased, but decreased Purchase frequency
Number of subscribers

ARPU

48,670（YoY +11.1％）
45,091 45,680

46,438 46,145

47,71045,30043,687 43,864

19,586yen
48,61148,670（YoY -11.8％）
22,20944,993

21,30721,08820,054

19,586

19,88418,991

19,875
19,24019,066

17,973

FY2017/3 FY2017/3 FY2017/3 FY2017/3 FY2018/3 FY2018/3 FY2018/3 FY2018/3 FY2019/3 FY2019/3 FY2019/3
1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

FY2017/3 FY2017/3 FY2017/3 FY2017/3 FY2018/3 FY2018/3 FY2018/3 FY2018/3 FY2019/3 FY2019/3 FY2019/3
1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

10

DWMK Topics
We improved our shopping website. Promoting "Limited Time Sale"and “Website-Only Special Sale“ contributed to Price/purchase add-on
Improvement Measuresof Website Price/purchase◆Limited Time Sale
We hold a 48-hour
limited-time online salefor members twice a week,
and promote guidance
to the Website◆Website-Only
Special Sale
We implemented measures
such as expanding productlineup limited to web sitesthat are not coveredin paper catalogs,
and higher discount rates
than regular products,
contributing to purchase unit add-on
11

Radish Boya KPI
Number of subscribers: Decrease in light users as a result of revision ofshipping fees to reduce deficit orders
ARPU: Increased thanks to successful measures to improve Price/purchaseto current users in line with the revision of shipping fees
Number of subscribers

ARPU

73,364

18,217yen（YoY -17.8 ％）（YoY +6.2％）

91,526 92,190 90,510

18,217

87,987 88,087 87,951 89,224 88,752
84,26980,031
17,44273,364

17,14916,655
16,457

16,32016,322
16,394

16,18815,896
15,608FY2017/3 FY2017/3 FY2017/3 FY2017/3 FY2018/3 FY2018/3 FY2018/3 FY2018/3 FY2019/3 FY2019/3 FY2019/3
1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

FY2017/3

FY2017/3

FY2017/3

FY2017/3

FY2018/3

FY2018/3

FY2018/3

FY2018/3

FY2019/3

FY2019/3

FY2019/3

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

12

Radish Boya Topics
Due to the revision of shipping fees implemented in November, the number of low unit
price deficit orders of less than 3,000 yen decreased.
As a result of concentrating resources on proposal for buying, purchases increased,
improved contract rates for regular delivery products, and increased Price/purchase,finally resulting in improved earnings structures

Revision of the shipping table
Price/purchase

Regular delivery products
Contract
No contract

Regular delivery products
Contract
No contract

5,000yen～

free

free

No change

3,000yen～

180yen300yenNo change～2,999yen

280yen500yen380yen600yenPreferred segment
Users with children
under 3 years oldFree at any time

Users who continue
3 years or more

Free if Regular delivery
is contracted

Revisionof shippingfeesof less than
3,000 yenFree for 3,000 yen
or more13

Data Sheet：Main KPIKPI trend
1Q

FY2017/3
2Q
3Q

4Q

1Q

FY2018/3
2Q
3Q

4Q

1Q

FY2019/3
2Q

3Q

Subscribers
118,124 124,283 130,673 137,359 147,474 155,827 162,891 169,664 179,942 189,352 197,272(number)

Oisix

DWMK

Radish Boya

ARPU
（yen）
Price/
purchase（yen）
Purchase
Frequency(number)

12,087 11,586 11,955 11,932 11,833 11,057 11,587 11,602 11,562 11,127 11,534
5,874

5,799

5,975

5,872

5,817

5,704

5,908

5,925

6,002

5,973

6,150

2.06

2.00

2.00

2.03

2.03

1.94

1.96

1.96

1.93

1.86

1.88

Subscribers(number)

45,091 45,680 46,438 46,145 45,300 43,687 43,864 44,993 47,710 48,611 48,670

ARPU
（yen）

21,088 20,054 21,307 19,066 19,884 19,875 22,209 19,240 18,991 17,973 19,586

Price/
purchase（yen）
Purchase
Frequency(number)

7,605

7,524

7,965

7,525

7,589

7,700

8,336

7,726

7,731

7,786

8,383

2.77

2.67

2.67

2.53

2.60

2.58

2.67

2.49

2.46

2.31

2.34

Subscribers(number)

91,526 92,190 90,510 87,987 88,087 87,951 89,224 88,752 84,269 80,031 73,364

ARPU
（yen）

16,655 16,320 17,442 16,188 16,457 15,896 17,149 15,608 16,322 16,394 18,217

Price/
purchase（yen）
Purchase
Frequency(number)

5,543

5,546

5,751

5,378

5,501

5,518

5,889

5,339

5,542

5,691

6,208

3.00

2.94

3.03

3.01

2.99

2.88

2.91

2.92

2.95

2.88

2.93

14

Other Business：
Overseas Business
Oisix Hong Kong

Oisix Shanghai

Local service launched in 2009.

Service launched in November 2017.

In Q3, in order to refine services forHong Kong people, we interviewed
with Hong Kong users who frequently
use, and conducted market surveys.
We are going to clarify the concept for
the improvement of regular courses toencourage the use of Subscription

In Q3, we expanded its product lineup to
meet the needs of Chinese customers,
stabilized product supply, and built a
Chinese-language e-commerce site andsystem infrastructure

15

Other Business：
Real Retail Business
Shop in Shop
Overall sales decreased due to the withdrawal from unprofitable Shop in 2Q,
but profit structure improved
Sales

No. of shops

138

0.55bn yen
0.59

０.55

0.31
0.23

FY2016/3

FY2017/3

FY2018/3

FY2019/3

3Q

3Q

3Q

3Q

16

Other Business：
Real Retail Business
Shop
The Shin-Koshigaya Shop was renewed in January. Improvement of productdisplay layout and customer flow leads to increasing in-store residence time

17

Other Business：
Real Retail Business
Kindergarten WholesaleContinuing on from 2Q, sales increased due to steady growth in new
customers. Profit structure also improved due to improved distribution
efficiency and review of product costs
Sales

0.56

0.56bn yen

No. of tradingkindergartens

323
0.31

0.08
0.04

FY2016/3

FY2017/3

FY2018/3

FY2019/3

3Q

3Q

3Q

3Q

18

Other Business：
Solution Business
Steady expansion of B2B businesses utilizing our strengths of "Subscription
e-commerce know-how" and "reach to excellent members of
320,000 households"
Alliances
Steady progress on allianceswith Isetan Door, Vitality, and others◆EC support for Isetan Door

Promotional support
Supporting the placement of ads on the website and in paper
media for a total of 320,000 subscribers householdswith 3 brands◆PR support for T-FAL
In addition to our advertising
approach for our members, wehave held a cooking event for apressurized pot recipe that

◆Partnership with Sumitomo Life’s
Vitality

utilizes our kitchen space.

◆PR support for Hirado City “Furusato nozei”
Since two years ago, the Hirado
City “Furusato nozei” has been
publicized on the Oisix website.

19

Tokushimaru
Steady growth in transaction value, no. vehicles in operation, and prefectures
served. Number of vehicles in operation has surpassed 360, and number ofsubscribers of affiliated supermarkets has surpassed 100
Development Scale

Sales

2.17bn yen

2.17
1.89

Number of affiliatedsupermarkets

106

Number of vehicles
in operation

362

1.78

1.52

1.50

1.31
1.22
1.02

1.03

0.85
0.69

FY2017/3 FY2017/3 FY2017/3 FY2017/3 FY2018/3 FY2018/3 FY2018/3 FY2018/3 FY2019/3 FY2019/3 FY2019/3
1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

20

CRAZY KITCHEN
Participated in Inspired by INFOBAR, a new ad campaign for au.
Supervised dining table design expressing the color of "eggplant blue"21

2. Results Forecast Revisions

22

Highlights
of Results Forecast Revisions<Special factors of the current term>
1. These figures below include performance of Radish boya for 10
months, March to December, to reflect a change in fiscal year.
2. Net income includes the tax effect of Radish boya's carryforward losses and deferred tax assets.

Operating Profit were revised up by 22.2% and EBITDA by 15.4%.
Operating Profit and EBITDA are expected to be higher than previously announced
by improvement marginal profit margin in the Oisix blands due to sales growth, andimprovement profit structure in the Radish Boya blands.
Net income is expected to increase due to special factors scheduled to expire thisyear, such as the recording of additional deferred tax assets of Radish Boya.
Initial forecast

Revised forecast

64.00bn yen

Change%Sales

64.00bn yen

Operating
Profit1.80bn yen

2.20bn yen +0.4

+22.2％EBITDA ※2.60bn yen

3.00bn yen +0.4

+15.4％

1.50bn yen

2.30bn yen +0.8

+53.3％Net income
Attributable toowners of theparent ※2

0bn yenbn yenbn yenbn yen0.0％※ EBITDA stands for earnings before depreciation and amortization.

23

3Q Target Achievements<Special factors of the current term>
1. These figures below include performance of Radish boya for 10
months, March to December, to reflect a change in fiscal year.
2. Net income includes the tax effect of Radish boya's carryforward losses and deferred tax assets.

We made steady progress on both sales and EBITDA.
In Q4, we expects to incur expenses the standardization of systems
and the related to integration.
Revised forecast

3Q Results

Achievement Rate

64.00bn yen 48.90bn yen

76.4％

Operating
Profit2.20bn yen

2.26bn yen

103.0％EBITDA ※3.00bn yen

2.88bn yen

96.1％

2.30bn yen

2.53bn yen

110.1％Sales

Net income
Attributable toowners of theparent※ EBITDA stands for earnings before depreciation and amortisation.

24

3. Topics in Addressing Food-related Issues

25

Disaster Aid
Following 2Q, we provided assistance to areas affected by the West Japan
torrential rain and the Hokkaido Iburi eastern Earthquake.
We continue to provide aid in any kind of way.
Support for torrential downpours
We sold the producer rice of Kurashiki
City, where the organic JAS
certification was revoked due to thesubmergence of rice paddies bytorrential downpours as "West Japan
Supporting Rice“

Donation of Hokkaido Iburi
Eastern Earthquake at Shareholder
Benefits
We made the shareholder benefit of this year
donations or our products selectivity.
Approximately 10% of all shareholders selected
donations, and that was greatly exceeded theaverage selectivity.

26

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 the construction of dining facilities for children in developing countries.
TFT-accredited products sold3％
of revenue
donatedLunchesdelivered tochildren indeveloping
countries

To date, Oisix has delivered (as at end December 2018)

Approx. 4.60 million lunches※ lunch = ¥20

27

Radish Boya
Management Integration
After integrating offices, We implemented measures to smoothly integratewith Radish Boya. We declared completion of integration
at the company-wide meeting in December.
From Q4 onwards, we accelerate the creation of integration synergies
by exercising the resources that were being sought for integration outwardly

28

Sales of year-end merchandise
Total sales of three brands exceeded 1 billion yen, achieving 120%
compared to the previous year.
We maximized sales by horizontal expansion sales know-how
and sharing products among brands◆OisixSignificant year-on-year growth in sales
volume thanks to the effects of measures
such as the UI improvement of thewebsite based on the review of theprevious year and the setting of a gradualdiscount schedulehorizontal expansionof sales know-how
Product sharing
among brands◆Radish Boya
Increasing production of affordable
products. Launching a site that sells
products outside the member, andattracting customers with web
advertisement◆DWMK
Changing sales promotion methods
that link customer segments withpurchase status, such as TEL
follow-up for customer purchasedlast year and retargeting ad

29

4. APPENDIX・DATA SHEET30

Farm for Tomorrow, Table for Tomorrow
We provide services that enable a better food life
for more people.
We evolve continuously where good farmers are
rewarded and proud.
We realize a society that 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.
31

Corporate Overview

Name：

Oisix ra daichi Inc.

Location：

Shinagawa-ku, Tokyo

Established：

June 2000

Representative： Kohey Takashima, Representative Director & CEO
Capital：1,282,961,000 yen

Employees：

687 (consolidated), as of the end of December 201832

Overview of Affiliates
Consolidated subsidiaries
Tokushimaru Inc

Develops alliances with supermarkets in the mobile supermarket business;
provides expertise to sales partners.

Fruits Basket

Handles processing, product development, and sales,
for agricultural produce, including fruits and vegetables.

Furari Ltd.

Operates website connecting food producers and consumers.

Karabiner.Inc.

Develops and operates platform systems for EC sites; produces websites.

Crazy Kitchen

Handles catering, event production, and space production businesses.

Oisix Hong Kong Co.,Ltd.

Operates our businesses in Hong Kong under contract.

Oisix Shanghai Co., Ltd.

Operates the food products home delivery business in China.

Affiliates
Nihon Agri Inc.

Exports agricultural products.

33

Trend in Number of Employees
680

687

421

163

FY2013/3

179

FY2014/3

192

FY2015/3

210

FY2016/3

FY2017/3(Consolidated)

FY2019/3-3Q
FY2018/3（ Consolidated ） （ Consolidated ）34

Our Subscription Model
Expanding our business areas to include alliances and marketing support
for other companies based on subscription model strengths in our threehome delivery brands.
consumers

Our Strength

Home delivery

Marketing forhome delivery
subscriptions

Own brand

Alliance
Managing subscriptions
to ensure thoroughmanagement ofrevenue structures
Purchasing
Producers

Subscription networkwith producers

35

What Our Three Brands Deliver
Based on the distribution of safe, reliable food products, each of our threebrands delivers products tailored to the lives and values of our customers.
Working mothers withsmall children

Mothers focusing on
the home and children

Senior women in twoperson households

Meals that can be boasted
without taking time

Self realization
through Cooking

Healthy daily living

Producers36Differences in the assets of thethree brands

How tojoin

How toorder

Logistics
bases

Last OneMile

WEB mainlyWEB/
door-to-door sales

WEB mainly

WEB only

WEB/
Paper catalogs/
TEL

WEB/
Paper catalogs/
TEL

1 placein Kanagawa

6 placesin Hokkaido, Miyagi,
Tokyo, Kanagawa,
Aichi, Osaka,.

1 placein Chiba

Yamato trucks
approximately 99％

Our trucks
approximately 95％（area around
Logistics bases）

Our trucks
approximately 85％（area aroundmetropolitan area）
37

Subscription network
Reducing risks and securing stable transactions through a subscription
network based on 4,000 producers nationwide and procurement undertransaction conditions arranged in advance
Typical distribution of agricultural products

Consumers

Retail store
Wholesale market

Purchase prices vary
widely withproduction
conditions.

Inability to control
volumes purchased
and prices due tomarket conditions

consumers
Purchases at stablepricing regardless ofmarket conditions

Oisix ra daichi

Facilitating demand
control/projections
through sales plans
based on projectedsupply volumes

Advance purchase commitment basedon specified product types,
quantities, timing, and prices

Agricultural cooperative

Producers

Our efforts

Revenue prospects
unclear due to pricevariations resulting
from market
conditions

Producers

Clear revenue
projections to backsound investment
decisions38

International BusinessHong Kong

Oisix Hong Kong
Producers

Regularsubscribers

Hong Kong

RegulardeliveryChinabuyingup

Yamato trucks

Oisix Shanghai
Same standardsof Oisix

Regularsubscribers

Producers

China

Regulardelivery

Our trucks
Yamato trucks

buyingup

45

Shop in Shop
Setting up booths for individual brands in the produce sections of partner supermarkets
to sell produce and products that meet each brand’s standards

40Kindergarten wholesale
The kindergarten wholesale business was launched in FY2015. Based on the Omakase Boya systemthat makes it possible to order ingredients for student meals based on menus,
it provides support for kindergarten operations in both serving meals and nutrition.
Oisix ra daichi

Kindergarten

Omakase Boya system
for receiving orders from kindergartens

Producers

Ordering◆Stable purchases of safe produce andprocessed food meeting strict standards◆A wide-ranging product lineup thateliminates the need for additional purchasing

Deliveryon
Requested
date

Purchase◆Full-time senior nutritionists develop uniquemenus for use by kindergartens; they also
respond to requests for nutritional
consultations.
◆Easy ordering using a simplified Web form
◆Simplified single supplier management41

Business Solutions
We propose B2B business solutions based on our safe, reliable products,
outstanding customer base, and expertise in subscription-based EC.

EC consulting
Solutions support basedon our expertise in repeat marketing,site user interface/user experience
improvements,
food logistics in three temperaturezones, securing new EC customers,
and omni-channel management

Ad Oisix:

Tavelty：

Periodic advertisements
delivered to subscribers

seasonal vegetablenovelty products

In addition to an EC site that boasts 1.2
million unique views per month, thisservice delivers advertising to about
300,000 households, including
subscribers to DWMK and Radish Boya.

We offer novelty products basedon our expertise in service,products, and delivery, establishedthrough more than 3 million
regular deliveries a year.

42Tokushimaru
Offering mobile supermarkets for seniors and “shopping refugees” difficult
to approach via the Internet
Business model
Tokushimaru
Headquarters
Contractual fees
Royalties

Brands, expertise,
information provision

Regional supermarkets
Bases for supply of products

13％
Products

Product gross profits
30％
17％

Sales partners

In-person
sales

Owner-operators＋5 yen＋5 yenCustomers+10 yen rule43

Main Business Risks
Effects of poor weather
Fresh produce accounts for about 30 % of Group sales. We deploy astructure for fresh produce that makes it possible to secure supplies
from other regions if poor weather in specific regions prevents harvests
or results in poor quality. The system distributes transactions and inprinciple allows procurement of key products from multiple producer
regions. Nevertheless, poor weather lasting longer and having more

broad-ranging effects than expected may lead to product shortages andquality issues, with potential consequences for Group businesses andbusiness results.

Effects of concentrationof logistics centers

Issues related to food safety
We have established proprietary standards for the products handled for all our
major brands. Whenever possible, we seek to offer produce grown without
pesticides or chemical fertilizers. Our processed food products are made using the
fewest possible additives. We have also established unique inspection systems for
produce (including inspections of production sites and testing for residual
pesticides) and processed food products (including use of third-party experts andindependent institutions). We also strive to secure appropriate quality and safetythat can be objectively demonstrated and evaluated through health and safety
management guidance provided to suppliers and other means.
Nevertheless, it remains possible that those who produce the products we offer
may provide misleading or fraudulent labels regarding use of pesticides andsimilar matters or provide false quality information. Such cases could well lead torebuke or penalties from regulators, customer complaints, and compensation fordamages, in turn damaging the image of the Group’s brands or leading to a lossof confidence in the Group and potentially affecting Group businesses andbusiness results.

Effects of relationshipwith Yamato Transport Co., Ltd.

We operate our own logistics centers, where logistics functions such as

Most deliveries of the Group’s products to subscribers are handled byinspection, storage, sorting, and packing of our products are

Yamato Transport. While the Group strives to maintain a favorable ties

concentrated. For the most part, products under the Oisix brand areto Yamato while building relationships with alternative delivery services,shipped to customers through our logistics center located in the city of

due to current conditions in the logistics business, if the Yamato Group

Ebina, Kanagawa Prefecture. Those under the DWMK brand are shipped

were to demand a major increase in delivery fees or if transaction

through a center located in the city of Narashino, Chiba Prefecture. If a

volumes between us were to shrink, the resulting changes may affectnatural disaster, fire, or other cause were render either or both logistics

Group businesses and business results.

centers unable to operate, potential consequences include inventory
losses, shipping delay, and temporary suspension of services, which inturn would affect Group businesses and business results.

44

DATA SHEET：Results
Results
FY2017/3

FY2018/3

FY2019/3

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

Sales

5,379

10,718

17,11323,016

9,602

18,93530,00739,987

16,85331,72048,906

Operating
Profit

169

270

625

752

141

237

692

891

610

1,115

2,265

EBITDA

225

391

810

996

320

635

1,282

1,670

808

1,513

2,882

Net income
Attributableto owners of
the parent

119

187

429

515

72

93

336

237

537

893

2,533

（mn yen）

45

DATA SHEET：Business Segment Result
Business Segment Result
FY2018/3（mn yen）

1Q

FY2019/3

2Q

3Q

4Q

1Q

2Q

3Q

Sales

5,790

11,47018,481

24,7996,863

13,76922,190Marginal profit

674

1,392

2,421

3,288

970

1,943

3,371

Sales

2,790

5,487

8,508

11,215

2,769

5,440

8,405

Marginal profit

539

1,078

1,650

2,095

479

960

1,536

Sales

-

-

-

-

5,811

9,926

14,346

Marginal profit

-

-

-

-

1,030

1,765

2,657

Sales

1,109

2,163

3,263

4,250

1,482

2,755

4,198

Marginal profit

185

384

571

760

154

290

479

1,257

2,853

3,951

5,253

2,024

3,844

5,779

Oisix

DWMK

Radish Boya

Other BusinessCompanywide fixed costs,
Goodwill etc

46

Disclaimers◆This material is intended to provide an understanding of Oisix ra daichi activities,

not to solicit investment◆Forecasts of Oisix ra Daichi’s operating results and future performance are based on information

available to Oisix ra daichi at the time this material was drafted and are not guaranteed to beaccurate.
Actual operating results may differ from the future outlooks contained in this material.

The announcement of FY3/2019 results is scheduled to begin at 3:00 pm on May 13, 2019.

47